On behalf of the Board of Inch Kenneth Kajang Rubber Public Limited Company, I present herewith the One Hundred and Thirteenth Annual Report and Financial Statements of the Company and the Group for the financial year ended 31 December 2022.
DIVIDENDS
Due to the downturn in business amidst the pandemic, the Board has decided that no dividend is proposed for the financial year ended 31 December 2022.
PERFORMANCE REVIEW
During the financial year under review, the Group recorded a revenue of RM21.018 million compared to a revenue of RM32.660 million for the previous year. The decrease in Group’s turnover by RM11.642 million is mainly due to the lower demand for our rubber blocks during the financial year under review.
Revenue from the Group’s tourism division however has increased to RM9.873 million from RM0.947 million in 2021 as borders have reopened after the pandemic.
In this financial year, the result of the Group’s associate - Concrete Engineering Products Berhad (“CEPCO”), a manufacturer and distributor of prestressed spun concrete piles and poles, was not taken into account as the net book value has been fully written off. It was to be noted that their sales volume has increased due to the restart of the construction industry after the MCO.
Overall, the total loss after taxation for the Group was RM10.575 million as compared to RM12.296 million in 2021.
CORPORATE DEVELOPMENT
As at 31 December 2022, 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 before submission to the State level. We envisage that the approval would be obtained by second half of 2023. Once approved, we shall submit our building plan based on our phasing beginning in 2024. Our target Gross Development Value (“GDV”) for the whole project is about RM4.5 billion.
Our tourism division has picked up back to almost pre-pandemic level. We are hoping that in 2023, there will be even more tourist travelling, both local and overseas. The manufacturing division is expected to perform better in 2023 as demand has started to pick up again.
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 Datuk Mohamed Salleh bin Bajuri, we thank you for having served the Board with diligence and dignity. You have contributed so much during your tenure as a Board member and the various committees.
DATO’ ADNAN BIN MAARUF
Chairman
18 April 2023