OUR BUSINESS PERFORMANCE Our revenue decreased from RM794.71 million in FY2020 to RM691.09 million in FY2021 on lower business operations. Our profit before tax decreased from RM15.52 million in FY2020 to RM0.97 million in FY2021, mainly due to: (i) lower revenue in FY2021; and (ii) the incurrence of substantially the same amount of fixed and recurring expenses such as depreciation, payroll expenses, rental and interest expenses during the period in which our business operat ions were substantially halted. We implemented the following measures to mitigate the impact of the COVID-19 pandemic to the Group’s business: (i) take necessary precautionarymeasures at our businesspremisesandworksites in accordance with guidelines fromhealth authorities and government bodies; (ii) frequent seniormanagement operation meetings to strategize and identify operational issues; (iii) communicate with suppliers as to their stocks readiness and procure alternative suppliers/supplies to improve supply chain lead times where necessary; (iv) placement of advance bulk purchase orders to lock in rawmaterials supply at a better bulk purchase price; (v) focus in onlinemarketing campaigns on our property development projects and reach out to potential purchasers via Facebook, video calls and virtual tours; and (vi) closely monitor the working capital requirements of the Group and secure additional working capital credit facilities, where necessary. ACHIEVEMENTS AND OUTLOOK During the year, the Group successfully completed the Serian Section of the Pan Borneo Highway Sarawak project (“PBH”). The PBH project is the single largest construction project which the Group secured thus far. As at 31 December 2021, the estimated construction andmanufacturing balance order book of approximately RM1.69 billion and RM0.4 billion respectively, from a diversified clientele, will contribute to our revenue for about 2 years. We will continue to bid for projects and sales orders in order to replenish our order book and contribute positively to our result in 2022 and beyond. Our track record in the industries we operate in, and extensive experience in our businesses, coupled with the support from bankers, are good supporting factors for the Group to bid for and execute future projects. RECENT CORPORATE DEVELOPMENT During the year, the Company established an Islamic commercial papers programme for the issuance of Islamic commercial papers (“ICP”) based on the Shariah principle of Murabahah (via Tawarruq arrangement); and (ii) an Islamicmedium termnotes programme for the issuance of Islamicmediumtermnotes (“IMTN”) based on the Shariah principle of Murabahah (via Tawarruq arrangement), which have a combined limit of up to RM800 million in nominal value. The Company issued in total four tranches of IMTN and ICP with a total nominal value of RM78 million during the year. The proceeds raised from such issuance were used for general corporate purposes of the Group and to meet the Group’s working capital requirements and capital expenditures. BOARD RENEWAL During the year, three of our Independent Non-Executive Directors, namely Dato’ Paduka (Dr.) Ir. Hj. Keizrul Bin Abdullah (“Dato Keizrul”), Mr. Kek Chin Wu (“Mr. Kek”) and Mr. Chua Kee Yat @ Koo Kee Yat (“Mr. Chua”) having served 12-year tenure, had resigned to make way for new Independent Non-Executive Directors to be appointed. The Board was highly appreciative of the valuable contributions of Dato Keizrul, Mr. Kek and Mr. Chua during their tenure as Independent Non-Executive Directors. On behalf of the Board, I would like to extend a warm welcome to Dato’ Ir. Fong Tian Yong, Ms. Anita Chew Cheng Im, Mr. Johar SalimBin Yahaya andMr. Bhupendar Singh A/L Sewa Singh, who have joined us as Independent Non-Executive Directors on 1 December 2021. REWARD TO SHAREHOLDERS – DIVIDEND While we do not adopt a formal dividend policy, our Company has been declaring dividends every year since its listing on the Main Market of Bursa Malaysia Securities Berhad in 2010. In respect of FY2021, the Board recommends a single tier final dividend of 1.0 sen per share. The recommended final dividend is subject to the approval of the shareholders at the forthcoming Annual General Meeting. Our Company is alwaysmindful to reward our loyal shareholderswho have supported our growth over the years while trying to strike a balance with the funding needs at our different development phases. ACKNOWLEDGEMENT On behalf of the Board, I would like to extend my heartfelt gratitude to our shareholders, bankers, customers, business partners and regulatory authorities for their continued support, guidance and assistance. The Board would like to express our appreciation to our management teamand employees for their hard work and dedication. Pang Tin@Pang Yon Tin Chairman CHAIRMAN’S STATEMENT Annual Repor t 2021 12
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