Frontken Corporation Berhad 200401012517 (651020-T) • A N N U A L R E P O R T 2 0 2 1 19 FINANCIAL REVIEW (CONT’D) The free cash flow decreased from RM114.0 million to RM56.0 million in FY2021 mainly due to capital expenditure of RM82.8 million, an increase of RM74.9 million compared to the preceding year. The net cash inflow from operating activities for FY2021 increased by RM19.0 million to RM138.8 million. The net cash outflow for financing activities was RM27.1 million higher than last year mainly due to higher dividend payment, an increase of 87%, to reward our shareholders. Net cash used for investing activities increased from RM12.0 million in the preceding year to RM86.2 million in FY2021 attributable to capital expenditure to expand our production capacity. The Group has cash and cash equivalents of RM302.4 million as at the end of year 2021 compared to RM299.8 million at the end of year 2020. Amid the challenging business conditions, the Group will continue to exercise prudence in cash flow management while conserving the cash for dividend payment, potential future expansion and investing activities. FINANCIAL POSITION The Group’s shareholders’ fund improved from RM440.0 million as at 31 December 2020 to RM500.9 million as at 31 December 2021, an increase of RM60.9 million or 14%. Total assets of the Group increased from RM618.3 million as at 31 December 2020 to RM718.6 million as at 31 December 2021. This is mainly due to higher receivables from increase revenue and capital investment in property, plant and equipment. The Group has purchased a new facility in Kaohsiung, Taiwan to expand its production capacity to meet our key customer’s projected increase in demand for its services. The Group’s liabilities of RM183.6 million as at 31 December 2021 were higher by RM32.3 million or 21% compared to last year. The increase in lease liabilities and other payables is mainly due to the expansion of production facility in Kaohsiung, Taiwan which is expected to be commissioned sometimes during the second half of 2022. CASH FLOWS in RM’000 291,530 242,321 NET CASH 17% 2020 2021 113,997 55,971 FREE CASH FLOW 51% 2020 2021 7,890 82,830 CAPITAL EXPENDITURE 950% 2020 2021 304,500 299,439 WORKING CAPITAL 2020 2021 2%
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