(Extracted from Annual Report 2018)
The Group faced a challenging business environment in FY2018 with weak global economic condition as well as volatile currency movements.
During the year, the Company had entered into an assignment agreement relating to the acquisition of four commercial units at Gurney Tower, Penang, Malaysia. The Company had issued an aggregate of 9,817,035 new shares by way of assignment shares as settlement of prepayments and fixed fee pursuant to the terms of the assignment agreement. The Company had also entered into a debt capitalisation agreement with the Company's subsidiaries and the participating creditors for the capitalisation and conversion of certain debts. In this respect, the Company had issued an aggregate of 45,233,700 new shares by way of settlement shares pursuant to the terms of the debt capitalisation agreement. The Company further awarded bonus to certain employees through the issuance of an aggregate of 5,875,000 new shares by way of employee bonus shares.
The Group's consolidated revenue from continuing operations increased slightly by $0.44 million from $4.15 million for the financial year ended 30 June 2017 (“FY2017”) to $4.59 million in FY2018 while the Group's gross profit margin decreased due to lower gross profit margin contributed from the NGV business.
The Group has recorded a net loss from continuing operations of $0.65 million in FY2018 compared to the net profit from continuing operations of $0.19 million in FY2017.
The Group has net tangible assets of $1.71 million as at 30 June 2018 compared to net tangible assets of $1.96 million as at 30 June 2017.
The Group's businesses are expected to remain challenging for the financial year ending 30 June 2019 (“FY2019”) 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 FY2019 and likely to impact the Group's existing business performance, management will continue to focus on restructuring and consolidating 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 27 for detailed disclosure on the Company's corporate governance practices.
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 2018 and we are looking forward to your strong support to help us to achieve a better 2019 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
Executive Chairman, CEO and
Group Managing Director
28 September 2018