MANAGEMENT DISCUSSION AND ANALYSIS Segmental Revenue and Gross Profit* * : The segmental revenue and gross profit stated in the commentary in relation to the respective segment were inclusive of inter-segment transactions. FY2021 FY2020 Changes RM’000 RM’000 RM’000 % Revenue Construction 510,129 625,856 (115,727) -18.5% Manufacturing & Trading (“M&T”) 227,054 250,259 (23,205) -9.3% Property Development (“PD”) 44,282 2,306 41,976 1,820.3% Investment 14,986 17,966 (2,980) -16.6% Elimination (105,364) (101,678) (3,686) 3.6% Consolidated revenue 691,087 794,709 (103,622) -13.0% GP Construction 16,690 41,946 (25,256) -60.2% M&T 25,434 31,762 (6,328) -19.9% PD 5,408 487 4,921 1,010.5% Investment 14,986 17,966 (2,980) -16.6% Elimination (12,413) (17,625) 5,212 -29.6% Consolidated GP 50,105 74,536 (24,431) -32.8% GP margin Construction 3.27% 6.70% M&T 11.20% 12.69% PD 12.21% 21.12% Investment 100.0% 100.0% Consolidated GP margin 7.25% 9.38% The decline in construction and M&T revenue in FY2021 was due to the substantial curtailment of the Group’s operations, especially the construction division’s operations, during the nationwide FMCO, and lower sales to Singapore. In addition, some sizable contracts were at tail-end while contribution from new contracts secured were minimum as some of the larger size new contracts were secured toward the end of FY2021. The Malaysia Government implemented the FMCO effective from 1 June 2021, where economic and social activities were not allowed except for prescribed essential services. Effective from 16 August 2021, nonessential activities in the manufacturing, construction, mining and quarrying industries were allowed to resume operations but the operating capacity of such activities was subject to the level of the workforce that had been fully vaccinated. Almost all of our construction work sites were shut down from 1 June 2021 to 15 August 2021, as only critical projects were allowed to operate, subject to MITI’s approval. For the remaining period of FY2021, our compliance to the prescribed caps on workforce capacity allowed to attend to work at the Group’s business premises and the applicable SOPs had resulted in lower productivity of our business operations. Singapore banned all long-term pass holders and short-term visitors with recent travel history to India, Bangladesh, Nepal, Pakistan and Sri Lanka from entering Singapore effective from 24 April 2021 and 2 May 2021 respectively. The entry ban had impacted labour supply in Singapore’s construction sector which employs many Indian and Bangladeshi workers, resulted in slower execution of our customers’ projects in Singapore and thus deferments in their taking delivery of our goods. PD division recorded a higher revenue of RM44.28 million in FY2021, which was multi folds higher against FY2020, attributable to sales achieved from the Bukit Bayu, Seksyen U10, Shah Alam project. Annual Repor t 2021 20
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