Jadi Imaging : Annual Report 2023

JADI IMAGING HOLDINGS BERHAD

Registration No.:200001023711 (526319-P)

ANNUAL REPORT 2023

Table of

Contents

1. Corporate Structure
2. Corporate Information
3. Management Discussion and Analysis

7 Directors' Profile

1. Profile of Key Senior Management
2. Statement to Shareholders

20 Sustainability Statement

27 Corporate Governance Overview Statement

42 Audit Committee Report

47 Statement on Risk Management and Internal Control

1. Additional Compliance Information
2. Statement of Directors' Responsibility

in Relation to The Audited Financial Statements

53 Financial Statements

1. List of Properties
2. Analysis of Shareholdings

128 Notice of Twenty-Second Annual General Meeting

Proxy Form

2	JADI IMAGING HOLDINGS BERHAD
	ANNUAL REPORT 2023

CORPORATE

STRUCTURE

Jadi Chemicals

Sdn. Bhd.

100%

Jadi Imaging

Technologies

Sdn. Bhd.

100%

Jadi Life

Solutions

Sdn. Bhd.

100%

Zhuhai

Jadi Imaging

Jadi Imaging Holdings BerhadTechnologies

Co., Ltd.

100%

OUROUR

VISION MISSION

To be an integrated company which provides	Customer satisfaction in every decision.
solutions for the global imaging supplies
industry.

JADI IMAGING HOLDINGS BERHAD	3
ANNUAL REPORT 2023

CORPORATE

INFORMATION

Board Of Directors

Ong Gim Hai

Executive Director

Ling Chi Hoong

Independent Non-Executive Director

Leow Wey Seng

Independent Non-Executive Director

Tan Su Ning

Independent Non-Executive Director

Dai ShuChun

Non-IndependentNon-Executive Director

(retired on 21 September 2022)

Principal Bankers

Hong Leong Bank Berhad

Level 9, Menara Hong Leong

6, Jalan Damanlela

Bukit Damansara

50490 Kuala Lumpur

United Overseas Bank (Malaysia) Bhd

2A Ground Floor

Wisma SunwayMas

Jalan Tengku Ampuan Zabedah

C9/C, Section 9

40100 Shah Alam, Selangor

Auditors

Audit Committee

Leow Wey Seng

Chairman

Ling Chi Hoong

Member

Tan Su Ning

Member

Remuneration Committee

Leow Wey Seng

Chairman

Ling Chi Hoong

Member

Tan Su Ning

Member

Nomination Committee

Ling Chi Hoong

Chairman

Leow Wey Seng

Member

Company Secretaries

Wong Yuet Chyn

(MAICSA 7047163)

(SSM PC No. 202008002451)

AdelineTang Koon Ling

(LS0009611)

(SSM PC No. 202008002271)

Registered Office

No. 1, Jalan Peguam U1/25A

Seksyen U1

Hicom-Glenmarie Industrial Park

40150 Shah Alam

Selangor Darul Ehsan

Telephone No : (603) 7804 0333

Facsimile No. : (603) 7804 3211

Share Registrar

Workshire Share Registration Sdn Bhd

A3-3-8 Solaris Dutamas

No. 1, Jalan Dutamas 1 50480 Kuala Lumpur Wilayah Persekutuan

Telephone No. : (603) 6413 3271

Facsimile No. : (603) 6413 3270

Email : [e-mail]

HLB Ler Lum Chew PLT

A-23-1, Level 23

Hampshire Place Office

157 Hampshire

No. 1 Jalan Mayang Sari

Off Jalan Tun Razak

50450 Kuala Lumpur

Malaysia

Telephone No. : (603) 7890 5588

Stock Exchange

Main Market of Bursa Malaysia Securities Berhad

Stock Code

7223

4	JADI IMAGING HOLDINGS BERHAD
	ANNUAL REPORT 2023

MANAGEMENT

DISCUSSION AND ANALYSIS

CORPORATE PROFILE

Jadi Imaging Holdings Berhad, through its wholly owned subsidiaries, is a world-class independent toner manufacturer. The Group is principally involved in the development, formulation, and manufacturing of toners for laser printers, photocopiers, facsimile machines, and multi-function office equipment.

Founded in 1993, the Group is headquartered in Hicom-Glenmarie Industrial Park, Shah Alam, and has another factory in Klang, Selangor, Malaysia, where its main manufacturing and R&D facilities are located. It also has an overseas sales office and distribution centre located at Zhuhai, China.

OVERVIEW

FY2023 continues a trend of a weakening economy after the COVID lockdowns were lifted. With global inflation running amok in most countries, coupled with the war in Ukraine, it has caused significant stress in the worldwide economy. Countries are increasing interest rates, which has a direct impact on the cost of doing business as a whole. All these issues have left the world economy in a weakened state, and the signs of a recession loom large on the horizon.

FINANCIAL REVIEW

Financial Indicators

Revenue

Loss before tax

Loss, net of tax

Net assets per share

Total borrowings

Debt equity ratio

Revenue

RM'000

RM'000

RM'000

RM

RM'000

%

31 March 2023

32,767

(11,122)

(11,028)

0.09

9,677

9.9

31 March 2022 (Restated)

43,060

(7,890)

(7,874)

0.10

16,806

16.0

Variance

-23.90%

40.96%

40.06%

-7.44%

-42.42%

-37.79%

For the financial year under review, there was a decline of 23.9% in the Group's revenue from RM43.1 million in the preceding year to RM32.8 million. The sharp fall in sales was underpinned by the lower demand from China. Although the Chinese market has fully opened after the long Covid lockdowns, unfortunately the anticipated recovery has not taken place directly contributing to low sales.

Loss before taxation

The Group has recorded a loss before taxation of RM11.1 million as compared to the loss before taxation in the preceding year of RM7.9 million.

Higher operating costs, resulting from the implementation of minimum wages by the Malaysian government in 2022 and the increase in energy costs, have further taxed the profitability of the company.

Gearing

The Group has recorded a total borrowing of RM9.7 million as of 31 March 2023 with gearing ratio of 9.9% as compared to 16% in the previous financial year. It's in line with the managements' direction to reduce the overall borrowings.