Investor Relations


Unaudited Financial Statements And Dividend Announcement For The Financial Year Ended 31 December 2017

Financials Archive

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For the financial year ended 31 December 2017 ("FY2017") and financial year ended 31 December 2016 ("FY2016")

Consolidated Statement of Comprehensive Income

Comprehensive Income Statement

Balance Sheet

Balance Sheet

Review of Performance


Review of Group's performance for FY2017 as compared to FY2016


The Group’s revenue increased by approximately RM63.3 million, or 22.0% mainly due to the following:

  1. an increase in the number of containers loaded with products ("40-ft containers") sold from 5,637 40-ft containers in FY2016 to 6,620 40-ft containers in FY2017 due to the increase in the demand from its customers mainly from the United States of America; and
  2. an increase in average selling price per 40-ft container from RM51,000 in FY2016 to RM53,000 in FY2017 due to the increase in the selling prices of certain furniture models.
Cost of sales and gross profits

The cost of sales increased by approximately RM50.4 million, or 23.7% mainly due to the increase in raw materials purchased, labour costs and subcontractors’ costs. The increase in these costs was mainly due to the higher level of production during the year to cater for the production to meet the demand in FY2017.

The gross profit increased by approximately RM12.8 million, or 17.1% as a result of the increase in the revenue. The overall gross profit margin decreased from 26.1% in FY2016 to 25.0% in FY2017 mainly due to the increase in the purchase price of most of the raw materials.

Interest income

Interest income increased by approximately RM0.3 million, or 48.1% mainly due to more cash being placed under short term deposits.

Other income

Other income increased by approximately RM1.1 million, or 21.9% mainly due to the increase in the sale of materials by approximately RM2.9 million in FY2017 as a result of the Company selling more boards to LP Global Resources Sdn Bhd ("LP Global") to manufacture front drawer for most of our models (including lamination services) as compared to previously whereby LP Global only provided lamination services. The increase in the other income was partly set-off by the decrease in the gain on disposal of property, plant and equipment.

Selling and administrative expenses

Selling and administrative expenses increased by approximately RM3.4 million, or 15.3% mainly due to the increase in depreciation of property, plant and equipment, freight and handling charges, staff costs (including, but not limited to salary, EPF, Social Security Contribution, staff welfare and training) and Directors’ bonus. The increase in depreciation of property, plant and equipment by approximately RM0.2 million was due to the acquisition of office equipment, furniture and fittings.

Finance Cost

Finance costs decreased by approximately RM0.5 million, or 70.7% mainly due to settlement of our term loans in FY2016.

Other expense

Other expense increased by approximately RM3.2 million mainly due to net foreign exchange loss recorded in the books of the Company in FY2017 as compared to FY2016 due to the appreciation of the RM against US$ as the Company holds some of their cash in US$ for daily operating purposes.

Profit for the year

As a result of the foregoing, profit for the year increased by approximately RM7.7 million, or 17.8%.


Review of the Group’s financial position as at 31 December 2017 as compared to 31 December 2016.

Non-current assets

Property, plant and equipment increased by approximately RM11.1 million, or 10.8% mainly due to the purchase of machinery and equipment as well as office equipment, furniture and fittings.

Leasehold land decreased by approximately RM0.3 million, or 2.4% due to the amortisation of the leasehold land.

Current assets

Inventories increased by approximately RM0.5 million, or 1.3% mainly due to the Group stocking up raw materials towards the end of FY2017 to fulfil sales orders due for delivery in the financial year ending 31 December 2018 ("FY2018").

Trade and other receivables of approximately RM29.5 million comprised trade receivables, receivables from related parties, deposit and other receivables. The increased in trade and other receivables by approximately RM10.9 million, or 58.4% was in line with the increase in sales.

Prepaid operating expense of approximately RM5.8 million comprised mainly of the expenses related to the IPO of the Company which will only be either expensed off to the income statement or capitalised in FY2018.

Current liabilities

Loans and borrowings comprised obligations under finance leases and short term trade financing. The increased of loans and borrowings by approximately RM3.7 million, or 78.5% was mainly due to the increase in the usage of short term trade financing towards the end of FY2017.

Trade and other payables of approximately RM30.6 million comprised trade payables, amount due to related parties and sundry payables. The increased in trade payable and other payable of RM6.3 million, or 26.0% was mainly due to the increase in purchase of raw materials to cater for the sales orders.

There were no derivative liabilities recorded as there were no outstanding forward currency contracts and cross currency swap as at the end of FY2017.


The Group recorded net cash flows from operating activities of approximately RM45.0 million in FY2017 which was lower as compared to approximately RM43.1 million in FY2016 mainly due to the increase in the requirement for working capital.

The Group recorded net cash flows used in investing activities of approximately RM15.4 million mainly due to the purchase of new machineries with better features.

The Group recorded net cash flows used in financing activities of approximately RM47.5 million mainly due to the payment of dividends of RM55.0 million, net proceeds from loan and borrowings of RM3.5 million, and proceeds from issuance of ordinary shares of RM4.5 million.


  1. In view that the Malaysian Ringgit has strengthened against United States Dollar recently, the Group has constantly engaged with its customers where the majority of its products will be based on new prices which reflect the latest exchange rates for the coming new orders. While the Group acknowledges that the unfavorable exchange rate may affect its financial results, the Group expects the impact, if any, of such exchange rate to be short term given the Group’s ability to adjust the products’ selling prices. In addition, the Group will continue to review its hedging policy from time to time.

  2. Raw material prices have continued to increase since its IPO, albeit at a lower rate of increase for most of the raw materials that are currently in use by the Group. The Group are cautiously optimistic that the situation will continue to improve over the next few months. Nevertheless, the Group will continue to strategise its position which includes (but not limited to) various negotiation techniques such as bulk purchases, early cash payment and etc.

  3. The Group has received the approval from Ministry of Home Affairs (Foreign Workers Management Division) on 4 January 2018 for the hiring of 486 foreign workers to work at its factories and warehouses. The Group has a time frame of one and a half years to hire these foreign workers over time to suit and plan its hiring needs in view of our expansion plans, taking into consideration also its improved production efficiencies which is expected in time to come.