CHAIRMAN’S STATEMENT
Dear Shareholders,
On behalf of the Board of Directors, I am pleased to present the Annual Report and the Audited Financial Statements of the Group and the Company for the financial year ended 31 December 2023.
BUSINESS REVIEW
The Group’s operating segment is solar energy and related businesses.
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.
The Group’s gearing ratio has also improved as compared to year 2022. The lower gearing will act as an enabler for the Group to implement its strategic expansion plans in solar renewable energy projects.
Despite the challenging economic situation, the Group’s solar energy business, both the installed 11MWac capacity solar plants in Penang and Kedah, owned and operated by the Group were minimally affected.
MOVING FORWARD
Moving ahead, the Group will actively invest and implement projects which complement the government’s initiatives to reduce carbon footprint.
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 nonsolar energy such as wind, mini-hydro, biogas, biomass and hydrogen, among others.
Globally, we are witnessing an ongoing worldwide energy shortage, environmental crisis and rising energy costs. Along with this, we see rising concern for climate change and sustainability, and increased ESG considerations.
In a rapid evolving and competitive environment, we remain highly committed to continuously strengthening synergies on our focus in renewable energy industry. With the Group’s proven track record in implementing and operating solar projects coupled with the improved cashflow, we are well positioned to scale up our solar businesses to generate higher sustainable earnings for the Group.
APPRECIATION AND ACKNOWLEDGEMENTS
On behalf of the Board of Directors, I wish to thank and express our deepest appreciation to the management
team and our employees, for their tremendous efforts and contribution during this challenging time. Last but certainly not least, I would like to express our appreciation to our valued customers, business partners, bankers, government departments and agencies, shareholders & stakeholders for their continuing support to the Group. With this continuous support from all parties, we will dedicate our efforts to improve profitability and enhance shareholders’ value.
TANG MING YNG
…………………………………………………..
Chairman
TANG MING YNG
Chairman
Dear Shareholders,
On behalf of the Board of Directors, I am pleased to present the Annual Report and the Audited Financial Statements of the Group and the Company for the financial year ended 31 December 2023.
BUSINESS REVIEW
The Group’s operating segment is solar energy and related businesses.
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.
The Group’s gearing ratio has also improved as compared to year 2022. The lower gearing will act as an enabler for the Group to implement its strategic expansion plans in solar renewable energy projects.
Despite the challenging economic situation, the Group’s solar energy business, both the installed 11MWac capacity solar plants in Penang and Kedah, owned and operated by the Group were minimally affected.
MOVING FORWARD
Moving ahead, the Group will actively invest and implement projects which complement the government’s initiatives to reduce carbon footprint.
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 nonsolar energy such as wind, mini-hydro, biogas, biomass and hydrogen, among others.
Globally, we are witnessing an ongoing worldwide energy shortage, environmental crisis and rising energy costs. Along with this, we see rising concern for climate change and sustainability, and increased ESG considerations.
In a rapid evolving and competitive environment, we remain highly committed to continuously strengthening synergies on our focus in renewable energy industry. With the Group’s proven track record in implementing and operating solar projects coupled with the improved cashflow, we are well positioned to scale up our solar businesses to generate higher sustainable earnings for the Group.
APPRECIATION AND ACKNOWLEDGEMENTS
On behalf of the Board of Directors, I wish to thank and express our deepest appreciation to the management
team and our employees, for their tremendous efforts and contribution during this challenging time. Last but certainly not least, I would like to express our appreciation to our valued customers, business partners, bankers, government departments and agencies, shareholders & stakeholders for their continuing support to the Group. With this continuous support from all parties, we will dedicate our efforts to improve profitability and enhance shareholders’ value.
TANG MING YNG
…………………………………………………..
Chairman