Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.
The Group's revenue for the current quarter three (3) months ended 30 June 2018 ("2Q2018") was higher as compared to 30 June 2017 ("2Q2017") by RM4.75 million, an increase of 54.84%. This was mainly due to the increase in sales of the recycled petroleum products by 78.75%; scheduled waste collection services by 94.41% and recycled paints and solvent products by 5.88% while witnessing decreased in sales from recycled petro chemical by 59.79%, recycled drums and containers by 71.43% respectively as compared to 2Q2017.
The Group's gross profit margin was 15.06% in 2Q2018, a decrease of 13.80% as compared to 2Q2017. The decrease in gross profit margin was mainly due to lower margin achieved in the recycled petroleum products which contributed 75.52% of the total revenue in the 2Q2018.
The other income has increased by RM0.75 million as compared to 2Q2017 mainly due to the reversal of impairment loss in the current quarter arising from the recovery of payment from a customer.
The administrative expenses has decreased by 16.98% as compared to 2Q2017 mainly due to the lower impairment of trade receivables in 2Q2018. This was partly offset by the increase in professional fees incurred in 2Q2018 pertaining to the corporate proposals as mentioned in Section A17 above.
The selling and distribution cost has increased by 25.68% as compared to 2Q2017 and was mainly due to higher commission and agent fees which has increased by 68.57% as compared to 2Q2017.
The finance cost has reduced by 25.74% as compared to 2Q2017 mainly due to loan settlement in the quarters subsequent to the 2Q2017.
Resulting from the above, the Group has recorded a higher profit before taxation of RM0.94 million for the current quarter as compared to RM0.29 million in the 2Q2017.
The outlook for the financial year ending 31 December 2018 remains challenging due to uncertainty of the oil prices and global economy. This in turn may affect the demand for the Group's products and services and correspondingly assert a downward pressure on the Group's revenue and margins. Nevertheless, the Group is constantly undertaking continuous enhancements in production efficiencies, overhead and production cost management. In addition, the Group intends to enhance its product offerings to overseas market, which is expected to generate better sales and profitability.