Corporate Overview

The emergence of the COVID-19 has caused unparalleled disruption to economies and lives around the world. Despite the dismal year, the Group was minimally affected by the pandemic and achieve a healthy financial performance by maintaining our focus in solar renewable energy business. 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.

Review Of Operations

During the financial year, our key priorities were to ensure business sustainability and to create a safe working environment for our team. Surrounded by all the changes to our daily routine, the Group recognised the impact of this unprecedented situation towards the wellbeing of our team. We took proactive measures on additional safety and health SOPs which were implemented across our operating locations such as social distancing policies, regular cleaning, temperature screening and restricting visitors to our office and solar plants.

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.

The Management team who took part in the large scale solar tender bids have gained enormous experience from the bidding process. With this invaluable experience gained which had helped to enhance their skills and expertise, the Group will continue to participate in future large scale solar tender bids.

Financial Performance

RM’ million 2021 2020 Changes
Revenue 14.76 8.33 77.1%
Gross Profit 4.43 2.98 48.6%
Profit / (Loss) Before Tax 13.01 (10.99) 218.4%

For the current financial year ended 31 December 2021 (“FYE 2021”), the Group posted revenue of RM14.76 million which was 77.1% higher than the revenue of RM8.33 million for the financial year ended 31 December 2020 (“FYE 2020”) 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.

Group’s profit before tax from continuing operations for FYE 2021 was RM13.01 million as compared to RM10.99 million loss recorded in FYE 2020. The net increase of RM24.00 million was mainly due to the following:-

Reversal of impairment on interest in an associate 14.86
Revenue contributed from new solar projects 5.85
Gain on dissolution of a subsidiary 3.63
Others (0.34)
Net increase in profit before tax 24.00

The Group net profit from continuing operations attributable to shareholders for FYE 2021 was RM8.32 million compared to its preceding year loss of RM7.69 million.

The earnings per share decreased to 4.4 sen in FYE 2021 from 18.2 sen in FYE 2020.

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 such, the Group is exposed to the risk for changes in government policies and the support mechanism relating to the solar industry. 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.

The market for solar has been increasingly competitive over the recent years and continually evolving. The Group faces competition from both local and international competitors, which resulted in competitive pricing in the market. To stay ahead of the competition, we had registered as an Engineering, Procurement, Construction, Commissioning (“EPCC”) contractor with the aim to provide seamless services to our customers.

Moving Forward

With the Malaysian Government encouragement through positive measures and incentives, the solar photovoltaics industry in Malaysia is on the rise as a result of strengthening government support and growing investor confidence. Solar photovoltaics industry in Malaysia is well poised for more growth given the favourable conditions that are developing.

The Group will continue to put in effort to reap the business opportunities in the solar photovoltaics industry in Malaysia to achieve 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.