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Frontken Corporation Berhad (651020-T)
ANNUAL REPORT
2016
Financial
Review
(cont’d)
The consolidated net profit attributable to shareholders of the Company for FYE2016 was RM20.0 million, an increase of
RM16.0 million or 400% compared to the net profit attributable to shareholders of RM4.0 million for the preceding financial
year was mainly due to better performances by our non-wholly owned subsidiary. This translated to basic earnings per share
in FYE2016 of 1.91 sen compared to basic earnings per share of 0.39 sen in the previous financial year.
CASH FLOWS
in RM’000
NET DEBT
WORKING CAPITAL
2015
(66,482)
2%
2015
130,727
0.4%
2016
(65,287)
2016
130,255
FREE CASH FLOW
CAPITAL EXPENDITURE
2015
37,381
55%
2015
7,197
288%
2016
16,882
2016
27,901
The free cash flow reduced from RM37.4 million to RM16.9 million in FYE2016 mainly due to higher capital expenditure in
relation to the plant expansion of our subsidiary in Taiwan compared to the preceding financial year.
The net cash from operating activities was RM44.4 million and RM44.5 million in year 2016 and 2015 respectively. The net
cash inflow from financing activities of RM6.2 million in year 2015 as compared to net cash outflow for financing activities
of RM18.5 million in year 2016 was resulted from issuance of shares in year 2015 following conversion of the warrants and
higher loan repayment in year 2016.
Net cash used for investing activities increased from RM7.4 million in the preceding financial year to RM35.0 million in year
2016. The increase in cash outflow for investing activities was mainly due to higher capital expenditure, investment in cash
management fund and lower withdrawal of fixed deposits in year 2016.
Our Group has cash and cash equivalents of RM98.1 million as at the end of year 2016 compared to RM105.1 million at the
end of year 2015. The Group will continue to exercise prudence in cash flow management while conserving the cash for
potential future expansion and investing activities.
FINANCIAL POSITION
The Group’s shareholders’ fund improved from RM236.6 million as at 31 December 2015 to RM261.6 million as at 31
December 2016 due to increase in retained earnings.
Total assets of the Group increased from RM389.9 million as at 31 December 2015 to RM407.8 million as at 31 December
2016. Total Group’s liabilities of RM112.4 million as at 31 December 2016 were lower by RM6.2 million or 5% compared to
the previous year. The Group’s borrowings decreased from RM43.3 million in year 2015 to RM29.3 million in year 2016 due
to the repayment of borrowings via Group’s surplus fund during the financial year.
The total Group’s borrowings as at 31 December 2016 that is repayable within one year is 30%. Singapore Dollar borrowings
represented 37% of the total borrowings whilst borrowings denominated in Taiwan Dollars and Ringgit Malaysia made up
48% and 15% of the total borrowings respectively. Foreign currency borrowings were drawn to hedge against our Group’s
overseas investments and receivables which were denominated in foreign currencies.