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 the Annual Report and Audited Financial Statements for the financial period ended 31 December 2022 ("FYE2022") .
For FYE2022, the Group recorded a net profit of RM32.33 million (FYE2021: RM5.44 million) mainly due to the recording of RM29.06 million bargain purchase arising from the acquisition of 65% equity stake in Greenyield Rubber Holdings (M) Ltd ("GRHM"). The bargain purchase was mainly due to the difference in the market value of the share price which were issued as part of the purchase consideration. The market value was RM0.20 per share as at acquisition date compared to the share price of RM0.29 per share included in the Share Sale Agreement. The business environment continues to be challenging due to continuing geopolitical risks and high inflationary environment impacting consumer demand. Nevertheless, the Group will continue to monitor the situation and take necessary measures to reduce any adverse impact to the Group
For FYE2022, the Group recorded a revenue of RM56.92 million over 12 months compared to FYE2021 of RM45.38 million. The profit before tax in FYE2022 was RM34.31 million (FYE2021: RM7.50 million).
The revenue from the plantation inputs segment in FYE2022 was RM30.82 million (FYE2021: RM18.63 million), rubber estate segment RM1.12 million (FYE2021: RMI .41 million), and household goods segment RM24.99 million (FYE2021: RM25.34 million).
BUSINESS OUTLOOK AND PROSPECTS
The Board is cautiously optimistic of growth prospects in 2023 due to the end of the ZERO Covid strategy by China and its subsequent reopening which is expected to boost business and consumer sentiment and demand. However, the continuing Russia-Ukraine conflict and high global inflationary environment create uncertainties and volatilities for economic growth.
The Board is hopeful that the reopening of China provides opportunities for better commodity prices and improved 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.
The Board of Directors do not recommend a dividend payment for FYE2022 in order to conserve funds for working capital and potential investments in viable assets which are expected to generate future revenue streams.
On 26 October 2022, the Group announced the completion of the acquisition of a 65% equity interest in GRHM Group for a purchase consideration of up to RM61,489,415. With the completion of the acquisition, the Group has significantly expanded its plantation business and will focus efforts on managing operations to obtain a stable source of recurring income.
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.
Dr Zainol Bin Md Eusof