(Extracted from Annual Report 2019)
The Group faced a challenging business environment in FY2019 with weak global economic condition as well as volatile currency movements.
During the year, the Company entered into a conditional novation and debt capitalisation agreement ("NDCA") with certain subsidiaries of the Company and the participating creditors for the (i) novation; and (ii) capitalisation and conversion of certain debts and company salaries. In this respect, the Company had issued an aggregate of 376,873,999 new shares by way of conversion shares pursuant to the terms of the NDCA.
The Group's consolidated revenue decreased slightly by $0.13 million from $4.59 million for the financial year ended 30 June 2018 ("FY2018") to $4.46 million in FY2019. The slight decrease of the Group's gross profit margin from 31% to 29% was due to the lower gross profit margin from both trading and NGV related business.
A net loss of $0.25 million was recorded by the Group in FY2019 compared to the net loss of $0.65 million in FY2018.
As at 30 June 2019, the Group's net tangible assets was $1.89 million, compared to $1.71 million as at 30 June 2018.
The Group's businesses are expected to remain challenging for the financial year ending 30 June 2020 ("FY2020") mainly due to pricing pressure from customers and rising operational costs. However, the Group remains focused in enhancing its operational efficiency and monitoring its operating expenses in the face of economic uncertainties, to enhance the profitability of its existing businesses. While the market condition is expected to remain challenging in FY2020 and likely to impact the Group's existing business performance, management will continue to focus on its existing businesses, without incurring major capital expenditure.
The Group remains committed to maintain its regime of high standards of corporate governance. It pledges to provide timely and accurate information through announcements and investor relations activities for the benefits of all stakeholders. Please refer to the Report on Corporate Governance set out on pages 13 to 29 for detailed disclosure on the Company's corporate governance practices.
I would like to extend the Board's appreciation to the Independent Director, Mr. Teo Kio Choon @ Chang Chiaw Choon, who had retired on 26 October 2018 for his guidance and invaluable contributions to the Company.
On behalf of the Board, I would like to thank all shareholders for their continued loyalty and support to the Company.
We also acknowledge the strong support of our customers, bankers and business associates of our Company in 2019 and we are looking forward to your strong support to help us to achieve a better 2020 and beyond.
Last, but not least, I would like to thank all staff and management for their dedicated services and support and we will strive to improve further.
Mr. Lim Kee Liew @ Victor Lim
CEO and Group Managing Director
26 September 2019