FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2024 08 CHAIRMAN’S MESSAGE Dear Shareholders, Welcome to our Annual Report 2024. On behalf of the Board of Directors, I am pleased to present to you the Annual Report and Audited Financial Statements of the Frontken’s group (the “Group”) for the financial year 2024 (“FY2024”). As part of this Annual Report, we have also included the Management Discussion and Analysis to provide our shareholders with a more insightful and informative details of the Group’s operation and performance. I am pleased to report that for FY2024 Frontken managed to deliver a strong set of numbers despite a dynamic and challenging global landscape. Our commitment to excellence has enabled us to achieve robust financial results and at the same time further strengthened our position in the industry. MANAGEMENT DISCUSSION AND ANALYSIS A YEAR OF GROWTH Financial performance In FY2024, we achieved a record revenue of RM569.2 million, marking a 14% increase from the previous year. Our net income rose by 22% to RM136.8 million, resulting in an improved profit margin of 24%, up from 22% in FY2023. The improved bottom line was attributable to the Group’s higher revenue, prudent cost management and continual enhancement of processes leading to better production efficiency. In recognition of our strong performance and commitment to delivering shareholders value, the Board declared a second single tier dividend of 2.0 sen per share for FY2024. The entitlement and payment dates were set for 27 March 2025 and 21 April 2025 respectively. This brings the total dividend payment of 3.7 sen per share for the whole year and total payout amounting to approximately RM58.6 million, representing 43% of the Group’s total net earnings. The Board is committed to maintaining a sustainable dividend payment after taking into account its other business obligations. During the year, the Group continued to generate a positive cash flow of RM166.6 million from its business operations. The Group’s capital expenditure (“CAPEX”) for the year for property, plant and equipment was at RM24.8 million. Despite the additional cash outflows from dividend and CAPEX, the Group’s total cash balance as at 31 December 2024 remained strong at RM514.9 million.
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