OUR BUSINESS PERFORMANCE Our revenue increased from RM756.13 million in FY2022 to RM852.57 million in FY2023, mainly attributable to higher revenue generated by the construction division. Despite of higher revenue, our gross profit (“GP”) declined from RM86.54 million in FY2022 to RM61.58 million in FY2023, due to a lower GP margin of 7.22% in FY2023 against 11.45% of FY2022. The decline in the GP margin was due to lower profitability achieved by the manufacturing and trading division. Administration expenses declined from RM82.74 million in FY2022 to RM38.18 million in FY2023. Administration expenses were higher in FY2022 due to the impairment of trade receivable and contract asset totaling RM43.52 million in relation to a completed hospital project. On overall, we generated profit before tax of RM13.06 million and profit after tax of RM6.88 million in FY2023 against loss before tax of RM3.70 million and loss after tax of RM7.29 million in FY2022. Please refer to the Financial Review section under the Management Discussion And Analysis for further details on our performance. OUTLOOK We have an estimated construction and manufacturing balance order book of approximately RM2.0 billion and RM0.3 billion respectively as at 31 December 2023, from a list of diversified clientele. The balance order book is expected to keep us busy for the next 2 to 3 years. We are cautiously optimistic that the construction sector of Malaysia and Singapore will remain positive in 2024, thus offer order book replenishment prospects. We will continue to bid for projects and sales orders in order to replenish our order book and contribute positively to our result in 2024 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. 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 FY2023, 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 always mindful to reward our loyal shareholders who 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 team and employees for their hard work and dedication. Pang Tin @ Pang Yon Tin Chairman CHAIRMAN’S STATEMENT 013 Annual Report 2023
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