MKH Annual Report 2020

CORPORATE INFORMATION 24 ANNUAL REPORT 2020 Management Discussion and Analysis Report Further details of the Group’s financial performance are discussed in the segments below. LIQUIDITY AND CAPITAL RESOURCES During FY2020, the cash and cash equivalents of the Group decreased slightly by RM9.4 million to RM359.5 million as at 30 September 2020 (FY2019: increased by RM178.8 million to RM374.1 million as at 30 September 2019), which was culminated from the following cash flows activities: Net cash generated from/ (used in) 2020 RM’000 2019 RM’000 Changes (%) Operating activities 119,502 250,579 (52.3) Investing activities (57,733) (58,431) 1.2 Financing activities (71,214) (13,308) (435.1) Increase/ (Decrease) in cash and cash equivalents (9,445) 178,840 (105.3) Operating Activities Cash and Cash Equivalents Term Deposits Fixed Income Funds Available Lines of Credit The Group’s capital resources For FY2020, the Group recorded lower cashflows generated from operating activities following the suspension and disruption of the physical construction work on ongoing property development projects during the MCO and CMCO period. The cashflows used in financing activities increased significantly following a net repayment of bank borrowings totalling RM41.5 million in FY2020 via surplus funds from completed property development projects as compared to a net drawdown of bank borrowings totalling RM11.8 million in FY2019. The Group’s capital resources comprise primarily of cash flows generated from operating activities, cash and cash equivalents, term deposits, fixed income funds and available lines of credit. As at 30 September 2020, the Group’s net gearing improved to 0.16 times (FY2019: 0.17 times). The Group continues to maintain a prudent approach towards managing its capital resources to ensure adequacy in meeting operational requirements and capital expenditure from time to time.