Frontken Corporation Berhad 200401012517 (651020-T) • A N N U A L R E P O R T 2 0 2 1 8 CHAIRMAN’S MESSAGE MANAGEMENT DISCUSSION AND ANALYSIS A RECORD-BREAKING YEAR Frontken achieved another record-breaking year with a revenue of RM450.2 million, a double-digit growth of 22.2% compared to the same period a year ago due to improved contributions from nearly all our subsidiaries as a result of strong demand from the Group’s global customers in the semiconductor and oil & gas industries. The Group’s profit after tax (“PAT”) of RM114.2 million was also our highest, with 29.3% increase compared to RM88.3 million a year ago. Profit before tax for the year was at RM149.9 million, a 31.2% increase from the preceding financial year. The improved bottom line was attributable to the Group’s higher revenue, strict cost management and continual enhancement of processes leading to better production efficiency. The Group continued to generate a positive cash flow of RM138.8 million from its business operations. As at 31 December 2021, the Group’s cash and cash equivalents remained strong at RM302.4 million despite the higher capital investment. The Group’s capital expenditure for the year for property, plant and equipment was at RM82.8 million, all of which were internally funded. Dear Valued Shareholders, On behalf of the Board of Directors, I’m pleased to present to you the Annual Report and Audited Financial Statements of the Group for the financial year 2021 (“FY2021”). As part of this Annual Report, we have also included the Management Discussion and Analysis to provide our shareholders with a more insightful and informative details of the Group’s operation and performance. The year 2021 was both challenging and rewarding at the same time. Despite various challenges, the Group’s revenue and earnings were at an all-time high with growth across all our businesses. This speaks volume about the strength and resilience of the Group and the continuous extraordinary efforts we have put in over the years. REVENUE (RM’000) 600,000 500,000 400,000 300,000 200,000 100,000 - 181,035 190,611 261,844 339,911 222,717 296,580 368,319 250,543 327,218 450,222 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Revenue and Revenue CAGR chart from FY2012 to FY2021 CAGR +11%
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