(Extracted from Annual Report 2020)
The Group faced a challenging business environment in FY2020 and the COVID-19 pandemic has caused a disruption to the global economic condition as well as volatile currency movements.
The Group's consolidated revenue decreased by $0.50 million from $4.46 million for the financial year ended 30 June 2019 ("FY2019") to $3.96 million in FY2020. The decrease in revenue was mainly due to lower revenue generated from both trading and NGV related businesses.
A net profit of $0.35 million was recorded by the Group in FY2020 compared to a net loss of $0.25 million in FY2019. The profit was mainly due to decrease in administrative expenses and increase in other operating income.
As at 30 June 2020, the Group's net tangible assets was $1.73 million, compared to $1.89 million as at 30 June 2019.
The Group's businesses are expected to remain challenging for the financial year ending 30 June 2021 ("FY2021") mainly due to the global economic uncertainties as a result of the impact of the COVID-19 outbreak. However, the Group continues to focus on its operational efficiency, cost control, cash conservation and ensuring sustainability of its existing businesses. While the market condition is expected to remain challenging in FY2021 and is likely to impact the Group's existing business performance, Management will continue to focus on its existing businesses, without incurring major capital expenditure.
As announced on 24 August 2020, the Company entered into a conditional novation and debt capitalisation agreement ("Debt Capitalisation Agreement") with certain subsidiaries of the Company and the participating creditors for the (i) novation; and (ii) proposed capitalisation and conversion of the participating debts. The Company agreed to, subject to the shareholders' approval, to allot and issue an aggregate of 493,062,000 new shares by way of conversion shares pursuant to the terms of the Debt Capitalisation Agreement.
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 35 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 2020 and we are looking forward to your strong support to help us to achieve a better 2021 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 2020