The Board believes this decision allows the Group to conserve management and financial resources during the pandemic and to reallocate the resources to those businesses that have a better long term demand trajectory. For FY2021, the revenue of the retail division was approximately RM2.2 million (2020: RM2.7 million), decreased by RM0.5 million as compared to FY2020, mainly due to closure of retail store in Singapore in the second quarter of 2021. CORPORATE DEVELOPMENT (a) Disposal of Rich Day Global Limited (“Rich Day”) On 23 March 2021, our 54.19% owned subsidiary Furniweb Holdings Limited (FHL) disposed our stockbroking business Rich Day to two independent third party purchasers for a total consideration of HKD8.5 million (equivalent to approximately RM4.4 million). The Board believes the disposal allows the Group to focus on its existing businesses and conserve the funds and resources amid the economic uncertainties. (b) Acquisition of ESGL On 13 December 2021, FHL completed the acquisition of 37.25% of issued share capital of ESGL, whose two wholly-owned operating subsidiaries are principally engaging in provision of smart energy solution business, at the total consideration of HKD9.6 million (equivalent to approximately RM5.2 million). The results of operation and financial position of ESGL and its subsidiaries will be accounted for in the financial statements of the Group on an equity basis. RISK MANAGEMENT & APPROACHES All of our group’s operating assets are spread across Malaysia, Vietnam, Hong Kong and PRC. As such, our business, financial conditions and operations relies on the political and regulatory developments of local governments and authorities. On the external front although the Omicron coronavirus variant is now having less impact but the Russia-Ukraine crisis can easily derail the recovery engine as it jolted market with high oil prices, disrupted supply-chain and inflated raw material prices across the industries. The sanctions over Russia also caused volatility in the currency market and made our operating environment challenging. Internally, we continue our business rationalisation of our unsustainable business by closing our retail and disposedoff the stock broking business and efforts have been made on cost-optimisation and process efficiency enhancement. The Group constantly reassesses its risk exposure and seeks to optimise the balance between opportunities and risks both in operations and strategic direction. FUTURE PROSPECTS The pandemic has changed our life profoundly, reshaped the economy and changed the way we conduct our business. In this post lockdown transition period, we remain cautious on the near term prospects as the road to recovery in 2022 still has its uncertainties. We believe 2022 should be on the recovery track with the resumption of full economic activities, lifting of interstate and international travel bans and the high vaccination rate of Malaysians. In addition, the rolling out of the national recovery plan will further pave the road to recovery for the Malaysian economy. With the recent Government announcing the endemic phase in April 2022, every economic sector should be boosted by a stronger consumer spending. Finally, the fear over the impact of the COVID-19 pandemic on the economy and oversupply situation should subside. However, our manufacturing division remains cautious on the geopolitical risks resulted to supply chain disruptions as well as rising commodity and energy prices to ensure business continuity and long-term sustainability. P R G H O L D I N G S B E R H A D A N N U A L R E P O R T 2 0 2 1 18 (cont’d) FHL completed the acquisition of smart energy solution business On 13 December 2021 37.25% Management Discussion and Analysis
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