Corporate Overview

The Group’s resilient performance for the financial year ended 31 December 2023 was mainly driven by the steady growth in Solar Photovoltaic (“PV”) industry. Propelled by our desire to grow the renewable energy industry, we seek to expand our operations leveraging on the deeply rooted experience backed by long established track records. The Group is currently operating a total capacity of 11MWac of solar plants in Malaysia and will pursue and commit to increase its investment in the solar renewable energy business with the objective to increase its market share in this industry.

Financial Performance Review

RM’ million 2023 2022
Revenue 46.18 16.27 183.8%
Gross Profit 4.46 4.23 5.4%
Profit/(Loss) Before Taxation 0.75 (1.37) 154.7%

For the current financial year ended 31 December 2023 (“FYE 2023”), the Group posted revenue of RM46.18 million which was 183.8% higher than the revenue of RM16.27 million for the corresponding period in the preceding year (“FYE 2022”) from continuing operations. The higher revenue from the solar energy & related business segment of the Group’s operations in Malaysia is from the effort of the team in securing new solar rooftop projects and other related projects. Gross profit (“GP”) is slightly higher at RM4.46 million, compared to the GP of RM4.23 million in prior year mainly attributed to our projects during current year mainly consist of procurement of Solar PV module which carry a lower GP margin and offset by higher GP margin from construction revenue.

Group’s profit before tax from continuing operation for FYE 2023 was RM0.75 million as compared to RM1.37 million loss recorded in FYE 2022. The net increase of RM2.12 million was mainly due to the following:-

Net increase in profit (inclusive of finance income/cost) 2.18
Increased in value from Investment in Associate 7.42
Decreased in gain from dissolution of a subsidiary (7.49)
Net decrease in profit before tax 2.12
The Group net profit from continuing operations attributable to shareholders for FYE 2023 was RM0.20 million compared to its preceding year profit of RM0.30 million.
The earnings per share decreased to 0.1 sen in FYE 2023 from 0.2 sen in FYE 2022.

Challenges to Operating Activities

One major operational challenge faced by the Group is the increasing competitive market over the recent years and continuous evolution of the industry. The Group faces competition from both local and international competitors, which resulted in competitive pricing in the market. To overcome these challenges by emphasizing on the quality of the solar PV system offered at an attractive price. To achieved that, our Group implement effective procurement system which include bulk purchase of solar PV modules and ensuring availability of sufficient labour to execute projects through regular meetings with customers and contractors to discuss on the project schedule and implement plans accordingly.
Adequate working capital for procurement is essential to prevent any disruption in project progress due to insufficient of funds.

The Group’s internal funds and available banking facilities has enabled the Group to procure the necessary materials required efficiently.

In addition, the Group is actively approaching public and private entities to secure solar energy projects through the Supply Agreement with Renewable Energy to increase its revenue levels in this solar renewable energy business segment.

Business Risks

The Group has charted its growth in solar industry while remains cognisant of its risk factors and continues to closely monitor its financial, business, operational and strategic risks. The Group has identified and put in place mitigation initiatives to mitigate the risks identified.
The business nature of solar industry is subjected to various regulations and policies set by the authorities. As part of the mitigation initiative, the team constantly monitor for updates through local authorities’ official platforms as well as engage with the relevant business associations for latest development.

In addition, the nature of solar PV Engineering, Procurement, Construction and Commissioning (“EPCC”) works is project based and therefore, posing a risk that we may not be able to sustain our continued business growth unless we continue to secure numerous EPCC solar PV projects. To minimize the risk exposure, our Group consistently explores to venture into Power Purchase Agreement projects with the aim to sustain long-term recurring revenue stream.
Moving Forward

The government is working towards variety of national initiatives to reduce greenhouse gases by 45% by 2030 and achieve net-zero by 2050. Furthermore, the government has also revised the country’s 2050 renewable energy mixed target from 40% to 70%.

The slew of renewable energy (“RE”) initiatives and programmes announced by the government on 26 January 2024 has further brightened the outlook of the RE sector in Malaysia. To recap, the Energy Transition and Public Utilities Ministry unveiled a cumulative 2.8-gigawatt (“GW”) of new RE quotas and 400 megawatt-hour of battery energy storage system (BESS) pilot project.
These included the continuation of the net energy metering (NEM) programme with additional quotas of 400-megawatt (“MW”); fifth bidding cycle of the Large-Scale Solar programme with quotas of 2GW; and low carbon energy generation programme
of 400MW to be undertaken for non-solar energy such as wind, mini-hydro, biogas, biomass and hydrogen, among others.
The Group will continue to put in effort to reap the business opportunities in the solar photovoltaics industry in Malaysia toachieve growth in revenue and net profit. At the same, improve sustainability/environmental, social and governance (ESG).

The management would like to express their gratitude to the Board of Directors, shareholders, clients, business partners, contractors and financiers for their support.