... ANNU EPOR ˛˝ CORPORATE STRUCTURE 3 Ableway Sdn. Bhd. (92584-T) 100% Ataskota Sdn. Bhd....

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Transcript of ... ANNU EPOR ˛˝ CORPORATE STRUCTURE 3 Ableway Sdn. Bhd. (92584-T) 100% Ataskota Sdn. Bhd....

  • Corporate Information 2

    Corporate Structure 3

    Management Discussion & Analysis 4

    Directors’ Profile 9

    Corporate Governance Overview Statement 15

    Sustainability Statement 18

    Statement on Risk Management and Internal Control 25

    Audit Committee Report 28

    Statement of Directors’ Responsibility 30

    FINANCIAL STATEMENTS:

    Directors’ Report 32

    Statement by Directors 37

    Statutory Declaration 37

    Independent Auditors’ Report 38

    Statements of Financial Position 43

    Statements of Profit or Loss and Other Comprehensive Income 46

    Statements of Changes in Equity 48

    Statements of Cash Flows 51

    Notes to the Financial Statements 54

    Additional Compliance Information 125

    List of Top 10 Properties 126

    Analysis of Shareholdings 128

    Analysis of Warrant Holdings 131

    Notice of Annual General Meeting 133

    Notice of Dividend Entitlement and Payment 135

    Form of Proxy

    CONTENTS VISION

    The Food People of Choice

    MISSION The provision of quality food

    ensuring customer satisfaction, financial sustainability and

    responsible social and environment interaction. Achieved

    through integrated solutions involving innovative, integrous

    teams of committed people

  • CCK CONSOLIDATED HOLDINGS BERHAD

    2 CORPORATE INFORMATION

    BOARD OF DIRECTORS

    TAN SRI DATUK TIONG SU KOUK Non-Independent Non-Executive Chairman

    CHONG SHAW FUI Executive Vice Chairman

    TIONG CHIONG HIIUNG Group Managing Director

    TIONG CHIONG SOON Executive Director

    KUEH CHUNG PENG Executive Director

    LAU LIONG KII Executive Director

    LING TING LEONG @ LING CHONG SENG Non-Independent Non-Executive Director

    DATUK PEMANCA JANGGU ANAK BANYANG Independent Director

    DATU HAJI PUTIT BIN MATZEN Independent Director

    BONG WEI LEONG Independent Director

    REGISTERED OFFICE

    Lot 999, Section 66, Jalan Keluli Bintawa Industrial Estate 93450 Kuching, Sarawak, Malaysia

    Tel : 082-336520 Fax : 082-331479

    COMPANY SECRETARIES

    Voon Jan Moi (MAICSA 7021367)

    Yap Hui Yih (MAICSA 7048748)

    PRINCIPAL BANKERS

    AmBank (M) Berhad Hong Leong Bank Berhad RHB Bank Berhad United Overseas Bank (Malaysia) Berhad

    SHARE REGISTRAR

    Boardroom Share Registrars Sdn. Bhd. (formerly known as Symphony Share Registrars Sdn. Bhd.) Level 6, Symphony House Pusat Dagangan Dana 1 Jalan PJU 1A/46 47301 Petaling Jaya Selangor Darul Ehsan, Malaysia

    Tel : 03-7849 0777 Fax : 03-7841 8151 / 03-7841 8152

    AUDITORS

    Crowe Malaysia PLT (converted from Crowe Malaysia AF1018 which was formerly known as Crowe Horwath) Chartered Accountants 1st Floor, No.1, Lorong Pahlawan 7A2 Jalan Pahlawan 96000 Sibu, Sarawak, Malaysia

    STOCK EXCHANGE LISTING

    Main Market of Bursa Malaysia Securities Berhad

    Stock Name : CCK Stock Code : 7035

    WEBSITE

    www.cck.com.my

  • A N N U A L R E P O R T 2 0 1 8

    3CORPORATE STRUCTURE

    Ableway Sdn. Bhd.

    (92584-T)

    100%

    Ataskota Sdn. Bhd.

    (99524-K)

    100%

    Angkutan Golden Plan

    Sdn. Bhd. (209869-T)

    100%

    CCK Fresh Mart Sdn. Bhd.

    (237719-T)

    100%

    CCK Fresh Mart (West Malaysia) Sdn. Bhd.

    (432898-W)

    100%

    Mukah Seafoods Industries Sdn. Bhd.

    (34915-W)

    78.07%

    CCK Sea Products Industries Sdn. Bhd.

    (540016-X)

    100%

    CCK Properties Sdn. Bhd.

    (1297188-K)

    100% C. S.

    Choice Food Industries Sdn. Bhd.

    (645333-X)

    100%

    Central Coldstorage

    Kuching Sdn. Bhd.

    (68650-V)

    100%

    Farm Land Supplies & Veterinary Services Sdn. Bhd.

    (406838-V)

    100%

    Poultry Industry (S) Sdn. Bhd.

    (100247-X)

    100%

    Zhang Agriculture

    Development Sdn. Bhd.

    (171859-A)

    100%

    Kuok Sui Sea Products Industries (S)

    Sdn. Bhd. (158334-D)

    100%

    Hawker Time Food Hall

    Sdn. Bhd. (1277665-X)

    100%

    Pt. Adilmart (Foreign

    Company)

    100% (3.75% is held by

    CCK Fresh Mart Sdn. Bhd.)

    Kin Eastern Frozen Food

    Sdn. Bhd. (87382-M)

    100%

    Pt. Central Coldstorage Khatulistiwa

    (Foreign Company)

    90%

    Zhang Agriculture

    Development (Sabah)

    Sdn. Bhd. (907960-A)

    100%

    CCK CONSOLIDATED HOLDINGS BERHAD (396692-T)

  • CCK CONSOLIDATED HOLDINGS BERHAD

    4 MANAGEMENT DISCUSSION & ANALYSIS

    5 YEARS FINANCIAL SUMMARY

    2014 RM

    ‘000

    2015 RM

    ‘000

    2016 RM

    ‘000

    2017 RM

    ‘000

    2018 RM

    ‘000

    Revenue 451,282 494,095 559,049 615,789 639,490

    Profit before tax (PBT) 12,947 16,028 25,375 39,367 34,365

    Earnings before interest, tax, depreciation and amortisation (EBITDA)

    28,736 34,191 47,892 57,475 53,344

    Profit attributable to owners of the company

    8,281 13,510 18,854 29,063 25,817

    Earnings per share (Basic) 5.33 4.32 6.01 4.61 4.09

    DEC 2018

    DEC 2017

    DEC 2016

    DEC 2015

    DEC 2014

    800,000600,000400,000200,0000

    | Revenue (RM’000)

    DEC 2018

    DEC 2017

    DEC 2016

    DEC 2015

    DEC 2014

    70,00030,000 40,000 50,000 60,00020,00010,0000

    | EBITDA (RM’000)

    DEC 2018

    DEC 2017

    DEC 2016

    DEC 2015

    DEC 2014

    40,00030,00020,00010,0000

    | Profit before tax (RM’000)

    | Profit attributable to owners of the company (RM’000)

    DEC 2018

    DEC 2017

    DEC 2016

    DEC 2015

    DEC 2014

    40,00030,00020,00010,0000

  • A N N U A L R E P O R T 2 0 1 8

    5MANAGEMENT DISCUSSION & ANALYSIS (CONT’D)

    Dear valued shareholders,

    The Management Discussion and Analysis (“MD&A”) is intended to provide the reader with operational and financial highlights of CCK Consolidated Holdings Berhad (“CCK” or “The Group”) for the financial year ended 31st December 2018. The MD&A should be read together with the audited financial statements of the Group and Company.

    INTRODUCTION

    CCK is principally involved in retailing and poultry farming. Our fully integrated supply chain consists of feed mill, breeder farms, hatchery, broiler farms, layer farm, abattoirs and retail stores. The businesses are carried out primarily in Sarawak, Sabah and Indonesia (Jakarta and Pontianak).

    Since the opening of the first retail store in Sibu in 1970, our network of more than 50 retail stores now spans across Sarawak and Sabah. Fresh dressed chicken and chicken parts make up approximately 60% of our stores products. The remaining 40% of our stores’ products comprise frozen products, table eggs and fresh fruits and vegetables.

    As Sarawak’s largest integrated poultry supplier, our retail network is strongly supported by the poultry segment. CCK’s farm operations are also located in Sarawak and Sabah.

    FINANCIAL REVIEW

    Key Financial Indicators

    FY 2018 RM’000

    FY 2017 RM’000

    VARIANCE %

    Revenue 639,490 615,789 3.85% Indonesian operations revenue 124,819 110,641 12.81% Cost of sales 530,599 500,126 6.09% Gross profit 108,892 115,662 -5.85% Other income 7,725 4,635 66.67% Share of results in associate 4,100 4,632 -11.48% Profit before tax 34,365 39,367 -12.71% Property plant and equipment 173,431 163,373 6.16% Inventories 55,221 58,850 -6.16% Cash & cash equivalents 30,081 35,494 -15.25%

    Financial Highlights

    ❖ For financial year ended 31st December 2018, the Group recorded a total revenue of RM639.490m, an increase of 3.85% when compared to financial year ended 31st December 2017. The revenue contribution from our Indonesian operations improved with increased production and sales of sausages in Jakarta and Pontianak. We ended the year with 57 outlets (2017 : 55 outlets).

    ❖ Despite the growth in revenue, the Group recorded a lower profit before taxation of RM34.365m, a decrease of 12.71% over 2017. This was mainly due to the weaker USD/MYR in 2018 which increased the price of feed and imported frozen products. This is also evidenced in our increasing cost of sales and lower gross profit.

    ❖ Other income increased by 66.67% over 2017 mainly due to insurance compensation received for a fire that occurred at one of our subsidiary’s plant in 2017.

  • CCK CONSOLIDATED HOLDINGS BERHAD

    6 MANAGEMENT DISCUSSION & ANALYSIS (CONT’D)

    ❖ Share of results in associate declined by 11.48% over 2017 as our associate company, Gold Coin Sarawak Sdn. Bhd. recorded a decline in performance in 2018.

    ❖ The Group’s property, plant and equipment increased in 2018 by 6.16% when compared to 2017. This was mainly due to –

    • Construction of one new breeder farm in Lundu, Sarawak

    • Installation of a nugget line in Jakarta

    • Extension of chicken abattoir line in Kuching

    ❖ Inventories decreased by 6.16% over 2017 mainly due to a decrease in stocks of frozen beef and lamb.

    ❖ Cash and cash equivalents declined by 15.25% over 2017. Additions to property, plant and equipment amounted to RM32.1m.