MANAGEMENT DISCUSSION AND ANALYSIS Financial Position Shareholders’ equity increased from RM713.84 million as at 31 December 2023 to RM761.60 million as at 31 December 2024, mainly contributed by total comprehensive income attributable to owners of the Company of RM51.29 million, partly offset by dividend of RM3.53 million paid during FY2024. Non-current assets increased from RM508.29 million as at 31 December 2023 to RM651.59 million as at 31 December 2024, mainly due to the acquisition of properties, plant and equipment (“PPE”) to meet the requirements of higher scale of operation. Current assets increased from RM1.02 billion as at 31 December 2023 to RM1.41 billion as at 31 December 2024, mainly due to the increase in trade and other receivables and contract assets, in line with higher scale of operation. Current liabilities increased from RM587.32 million as at 31 December 2023 to RM997.58 million as at 31 December 2024, mainly due to higher trade and other payables, and loans and borrowings, in line with higher scale of operation. Non-current liabilities increased from RM205.12 million as at 31 December 2023 to RM280.14 million as at 31 December 2024 mainly due to loan of the New Subsidiary. Net gearing ratio as at 31 December 2024 was at a manageable level of 0.43 times. Cash Flow For FY2024, net cash of RM29.59 million was used in operating activities, in line with higher scale of operation. Net cash of RM152.82 million was used in investing activities, mainly for the purchase of PPE. Net cash of RM181.69 million was generated from financing activities, mainly from drawdown of bank facilities and issuance of Sukuk to part finance the purchase of PPE and land held for property development, and working capital requirements. With the overall net decrease in cash and cash equivalents of RM0.72 million during FY2024, the Group’s cash and cash equivalents was RM57.91 million as at 31 December 2024. PROSPECTS AND OUTLOOK The Group has an estimated construction and manufacturing balance order book of approximately RM3.1 billion and RM0.3 billion respectively as at 31 December 2024, contributed by numerous construction contracts and manufacturing orders. The balance order book is expected to keep the Group busy for the next 2 to 3 years. As in any business, the Group is subject to various challenges and risks. Please refer to pages 70 to 72 of this Annual Report for nature of the key risks and the Group’s control measures to mitigate the risks. 023 ANNUAL REPORT 2024
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