Chemical Company of Malaysia Berhad Annual Report 2019

| GROUP MANAGING DIRECTOR’S | MANAGEMENT DISCUSSION AND ANALYSIS Dear Shareholders, I am pleased to present the financial and operational performance of Chemical Company of Malaysia Berhad (CCM or the Group) for the financial year ended 31 December 2019 (FY 2019). The year in review was a mixed one for CCM. It was characterised by numerous achievements on several fronts and lower-than-expected results stemming from lacklustre economic conditions and several unforeseen events. Nevertheless, I am pleased to share that despite the host of market and operational challenges that affected our FY 2019 results, CCM maintained a resilient performance, albeit with a lower net financial return. OUR FINANCIAL PERFORMANCE IN FY 2019 In FY 2019, the Group registered revenue of RM385.2 million, a marginal 2.7% decrease over the preceding year’s revenue of RM395.9 million. This decrease was attributable to a 5.3% decline in revenue generated by the Chemicals Division. Nonetheless, this was cushioned by 6% rise in revenue from the Polymers Division. The Group’s profit before tax (PBT) declined by some 48.8% to RM26.4 million in FY 2019 from RM51.6 million previously. Included in the PBT and PAT were several non-recurring items which are summarised at the following page: 18 CHEMICAL COMPANY OF MALAYSIA BERHAD