Dear Stakeholders,
On behalf of the Board of Directors of CB Industrial Product Holding Berhad (“CBIPH” or “the Company”) [199701013434 (428930-H)], I am pleased to present the Annual Report and Audited Financial Statements of the Company and the Group for the financial year ended 31 December 2022.
For the financial year under review, the Group registered a revenue of RM881.3 million with a profit before tax (“PBT”) of RM4.7 million, representing an increase of 45.3% and decrease of 95.1% as compared to the preceding financial year’s revenue of RM606.0 million and PBT of RM104.4 million, respectively.
The detailed analysis of the performance for the financial year ended 31 December 2022 is disclosed in the enclosed Management Discussion and Analysis Report.
The Group’s operating environment became significantly more challenging in 2022. Global economic factors have not been favourable to the Group. The tight labour market, supply chain disruptions and Russia-Ukraine war have resulted in a significant cost inflation, which exerted pressures on the day to day operation of the Group. Thus, the Group will adopt a cautionary stance against the challenges faced.
The Equipment and Engineering Segment anticipates stable demand in the near future, whereas the Special Purpose Vehicle Segment expects the market environment to remain challenging in 2023 due to stiff competition on open market tendering.
The Plantation and Milling Segment has experienced a myriad of challenges in 2022, which is mainly due to the uncertain economic environment caused by the export restriction policies of Indonesia, in which consequently resulted in the weakening of the CPO prices in the second half of 2022 as CPO inventory expanded in Indonesia.
Heading into 2023, despite the discovery the new variants of COVID-19 which may once again create a macroeconomic downswing, it was noted that countries around the world were expected to gradually move into an endemic stage and reopen their economies. Thus, CBIPH Group is cautiously optimistic of the Group’s financial performance in the coming financial year 2023.
The Company has consistently paid dividends each year while allocating funds for business growth and investment. The Company paid a first interim single tier dividend of 2.0 sen per share for the financial year ended 31 December 2022 on 15 February 2023.
The Company will endeavour to reward our shareholders with a good dividend pay-out each year, despite the current challenging market conditions.
The Board and I would like to take this opportunity to express our sincere thanks and appreciation to the Management and staff for their continuous valuable contributions, loyalty and dedication to the Group. We also wish to record our heartfelt gratitude to our shareholders, customers, partners, bankers, business associates, and all the respected government authorities for their invaluable support and assistance, continuous trust and understanding during the year.
Tengku Dato’ Ardy Esfandiari Bin Tengku Abdul Hamid Shah
Chairman/Executive Director