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Kumpulan Perangsang Selangor Berhad's Shareholders Approve All Resolutions at the 43rd Annual General Meeting
• Improvement in 2019 financial results with a 49% increase in revenue to RM866.8 million with a turnaround in Profit Attributable to Owners of the Parent of RM26.9 million
• No final dividend for financial year ended 31 December 2019 as Company preserves liquidity and Group safeguards operations, given unprecedented circumstances arising from COVID-19
Shah Alam, Malaysia, 30 June 2020 - Kumpulan Perangsang Selangor Berhad's ("Perangsang Selangor" or "the Company" or "the Group") (KPS, Bursa: 5843; Bloomberg: KUPS:MK; Reuters: KPSB.KL) shareholders approved all resolutions on the agenda at the 43rd Annual General Meeting ("the AGM"). As part of safety measures given COVID-19 pandemic, and in line with the Guidance Note on the conduct of general meeting issued by the Securities Commission Malaysia on 18 April 2020, the AGM was conducted entirely through live streaming, broadcast from KPS' Corporate Office. To this effect, arrangements had been made to allow shareholders to vote electronically and transmit questions or remarks to the Board of Directors on the Remote Participation and Voting (RPV) platform.
At the 43rd AGM, KPS announced the achievements in 2019, having delivered an improvement in financial results and a turnaround in profitability, both of which supported by broader earnings base and higher contribution from the core businesses.
For the 12 months ended 31 December 2019, the Group posted revenue of RM866.8 million, an increase of 49.0%, as compared to RM582.3 million it recorded in the corresponding period in 2018. Of the total revenue, manufacturing businesses grew by 82%, contributing RM650.9 million, or 75.1%. The trading, infrastructure and licensing businesses remained significant, contributing RM117.4 million or 13.5%, RM51.4 million or 5.9%, and RM36.3 million or 4.2% to the Group's revenue, respectively. Property investments contributed to the remaining RM10.8 million or 1.3%.
KPS posted a healthy growth of 48% in operating performance, registering an operating profit of RM76.2 million, as compared to RM51.5 million in the corresponding period last year. This was attributed mainly to the new contribution by Toyoplas Manufacturing (Malaysia) Sdn Bhd ("Toyoplas") as well as full-year contributions from CPI (Penang) Sdn Bhd ("CPI") and King Koil Manufacturing West, LLC ("KKMW"). As opposed to share of loss of RM197.6 million in the previous year, KPS registered a share of profit of RM14.8 million this year. This gave rise to Profit Before Tax of RM55.0 million against Loss Before Tax of RM179.6 million, staging a strong turnaround in Profit Attributable to Owners of the Parent of RM26.9 million from a loss position of RM205.5 million last year.
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KPS' Managing Director/Group Chief Executive Officer, Ahmad Fariz Hassan said:
"2019 was a year of continuing success for KPS. I am pleased with the progress and results that we have delivered thus far, seeing the expansion in both revenue and profitability. Over the years, we have grown our business and made a significant improvement in earnings visibility. The businesses we had acquired in recent years have delivered the results and positioned us for long-term growth. Our 2019 financial results indeed affirm the Group's determination to further solidify our fundamentals despite headwinds in business landscape ahead of us".
KPS started 2020 with three challenges in the operating environment: moderation in global economic growth, ongoing US-China trade tension and escalated risks emerging from COVID-19 pandemic. These challenges caused a subdued outlook, affecting business sentiment globally and locally.
The impact of COVID-19 pandemic on KPS' business and its subsidiary operations was first felt in March this year, with the Group experiencing slow recoverability from the disruption in supply chain and reduced demand from customers in China, Indonesia, Malaysia and the US as manufacturing activities around the world started to decline with less sanguine economic prospect. KPS shall continue to monitor closely the performance of its manufacturing businesses, expecting better clarity of a fuller impact of the pandemic on the Group's profitability in the second quarter this year, when the demand of its products normalises to a new equilibrium.
Taking a far-sighted and independent view towards financial prudence and sustainability amid challenges arising from the pandemic, the Board has resolved to preserve liquidity and safeguard the Group's present operations and business prospects. In view of this, KPS' Board did not recommend to the shareholders any final dividend for the financial year ended 31 December 2019.
"We expect the pandemic to have a material impact to the remainder of the Group's financial performance this year. In managing this expectation, tasks ahead will require levels of responses and depth of resilience, focussing first on the aspects of operations that we can control in protecting the Group's business locally or globally. Whilst maintaining our operational resilience and financial capacity, we shall ensure KPS' business continuity and remain diligent in executing our business plans, striving to maintain the continuance of value creation across all our subsidiary companies," Ahmad Fariz commented on the Group's prospect in 2020 at the conclusion of the 43rd AGM.
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About Kumpulan Perangsang Selangor Berhad (www.perangsangselangor.com)
Incorporated on 11 August 1975, Kumpulan Perangsang Selangor Berhad ("KPS" or "the Company" or "the Group") is a public limited liability company listed on the Main Market of Bursa Malaysia Securities Berhad under the Industrial Products & Services Sector. KPS has core investments in the Manufacturing sector, as well as businesses in the Trading, Licensing, and Infrastructure sectors. While strengthening our business to optimise returns, KPS is committed to providing significant contributions towards sustainable development in the areas of economic, environmental, and social for the benefits of all stakeholders.
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