On behalf of the Board of Inch Kenneth Kajang Rubber Public Limited Company, I present herewith the One Hundred and Twelfth Annual Report and Financial Statements of the Company and the Group for the financial year ended 31 December 2021.
DIVIDENDS
Due to the downturn in business amidst the pandemic, the Board has decided that no dividend be proposed for the financial year ending 31 December 2021.
PERFORMANCE REVIEW
During the financial year under review, the Group recorded a revenue of RM32.660 million and a loss after tax of RM12.296 million compared to a revenue of RM10.061 million and a post-tax loss of RM15.890 million for the previous year. The increase in Group’s turnover by RM22.599 million is mainly due to the high demand for our rubber blocks during the financial year under review.
The plantation division recorded a lower revenue at RM0.013 million (2020: RM0.144 million) due to the lower fresh fruit bunches collected. Revenue from the Group’s tourism division also decreased by 80% to RM0.947 million from RM4.852 million in 2020 due to the prolong Movement Control Order (“MCO”) due to the pandemic.
Included in the above results for the financial year under review was a share of loss after taxation of RM2.887 million versus share of loss after taxation of RM4.313 million in 2020 from the Group’s associate - Concrete Engineering Products Berhad (“CEPCO”), a manufacturer and distributor of prestressed spun concrete piles and poles. The increased in sales volume was attributable to the restart of the construction industry after the MCO.
Overall, the total loss after taxation for the Group was RM12.30 million as compared to RM15.89 million in 2020.
CORPORATE DEVELOPMENT
As at 31 December 2021, the Company has 42,075,000 ordinary shares held as treasury shares and the issued and paid-up share capital of the Company remained at 420,750,000 ordinary shares of £0.10.
FUTURE OUTLOOK
The Master Plan to develop the land bank in Kajang, totalling approximately 140 hectares has been submitted to the One Stop Centre of Majlis Perbandaran Kajang. It is currently pending clearance of a few technical matters. We envisage that the approval would be obtained by second half 2022. Once approved, we shall prioritise our submission for some of the residential area, as we feel that the commercial centre can only be done after a few years.
As the Covid-19 pandemic is just subsiding in 2022, it will continue to have an impact on the tourism division. We are hoping that more tourist, local and overseas, will start to travel again and this can help the division. The manufacturing division is expected to perform as good as in 2021. The Group will continue to take steps to ensure that our expenses are maintained at current level.
2021 will still be a challenging year.
APPRECIATION
On behalf of the Board, I wish to express my appreciation to all our customers, shareholders, business partners, bankers and government authorities for their continued support and encouragement during the year.
Special thanks also goes to the management and staff. Their invaluable efforts and firm dedication to the Group are truly appreciated. We are confident that success is in the pipeline.
I would also like to take this opportunity to offer my personal gratitude to the current and past fellow Board members for their commitment and guidance. To Dato’ Muda bin Mohamad and Dr. Radzuan bin A. Rahman, thank you for having served the Board with diligence and dignity. You both have contributed so much during your tenure as Board members and the various committees. To Datuk Che Md Nawawi bin Ismail, welcome aboard and we hope that you will be able to bring new perspective to the Group.
DATO’ ADNAN BIN MAARUF
Chairman
13 April 2022