CHAIRMAN'S STATEMENT
Dear Valued Shareholders,
On behalf of the Board of Directors of Greenyield Berhad and its subsidiaries (“Greenyield” or the “Group”), it gives me pleasure to present to you with the Annual Report and Audited Financial Statements for the financial year ended 31 December 2023 (“FYE2023”).
ECONOMIC REVIEW AND FINANCIAL PERFORMANCE
For FYE2023, the Group recorded a net loss of RM12.19 million (financial year ended 31 December 2023 (“FYE2022”): net profit of RM32.33 million) mainly due to lower export sales from household goods operating segment arising from lower demand from export markets while the performance of the plantation inputs and rubber estate segments were impacted by lower average rubber price.
For FYE2023, the Group recorded a revenue of RM38.86 million over 12 months compared to FYE2022 of RM56.92 million. The loss before tax in FYE2023 was RM12.66 million (FYE2022: profit before tax of RM34.31 million).
The revenue from the plantation inputs segment in FYE2023 was RM16.08 million (FYE2022: RM30.82 million), rubber estate segment was RM13.98 million (FYE2022: RM1.12 million), and household goods segment was RM9.33 million (FYE2022: RM24.99 million).
BUSINESS OUTLOOK AND PROSPECTS
The Board is cautiously optimistic of growth prospects in 2024 with the high inflationary environment stabilising and with lower interest rates being projected by the markets. Rubber price in early 2024 has also stabilised and is moving upwards. However, the continuing Russia-Ukraine conflict and Gaza conflict in the Middle East region has created uncertainties and volatilities for economic growth which may impact the consumers’ demand. Nevertheless, the Group will continue to navigate through the challenging environment with resilience and adaptability to position ourselves for sustainable growth and value creation.
The Board is hopeful that the better commodity prices especially for rubber will improve plantation inputs sales. Our rubber estate segment is also expected to benefit from the progressive opening of rubber trees for tapping and higher cup lump prices as well as better availability of foreign workers.
The Group will continue to look for growth opportunities while managing costs to ensure the viability of the business.
CORPORATE GOVERNANCE AND SUSTAINABILITY
At Greenyield, we recognise the importance of upholding the highest standards of corporate governance and sustainability. Throughout FYE2023, we have remained dedicated towards fostering a culture of transparency, accountability, and ethical conduct across all levels of the organisation.
Furthermore, sustainability continues to be integral to our business strategy. We are actively pursuing initiatives to minimise our environmental footprint, promote social responsibility, and create long-term value for all stakeholders.
DIVIDEND
The Board of Directors do not recommend any dividend payment for FYE2023 in order to conserve funds for working capital and potential investments in viable assets which are expected to generate future revenue streams.
ACKNOWLEDGEMENT
I wish to acknowledge the employees whose dedication and perseverance have contributed to the sustained operations of the Group during the challenging period, hence ensuring the Group's reputation as a trusted and reliable partner to the companies we serve globally. On behalf of the Board, I would like to express our thanks and appreciation to our shareholders, customers, business associates, financiers, suppliers, and regulatory authorities for their continued support and understanding extended to us during the financial year.
Tham Foo Keong
Executive Chairman