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 2020 ("FYE2020")
For FYE2020, the Group recorded a net profit of RM5.39 million mainly due to the recognition of the gain on disposal of the land use right by Givnflow Co. Ltd (subsidiary in Vietnam) and gain on disposal of land by Greenyield (Cambodia) Pte. Ltd. (subsidiary in Cambodia). For the financial period ended 31 December 2019 ("FPE2019"), seventeen months period due to change in financial year, the net profit was RM4.26 million. The business environment remains challenging due to continued disruptions arising from the COVID-19 pandemic. Nevertheless, the Directors, Management team and staff will remain vigilant and are working hard towards resolving and mitigating negative factors.
For FYE2020, the Group recorded a revenue of RM33.34 million over 12 months compared to FPE2019 of RM47.34 million. The profit before tax in FYE2020 was RM6.89 million (FPE2019: RM4.54 million).
The revenue from the plantation inputs segment in FYE2020 was RM9.39 million (FPE2019: RMI 8.93 million), rubber estate segment RMI.O million (FPE2019: RM0.33 million), and household goods segment RM22.95 million (FPE2019: RM28.08 million).
BUSINESS OUTLOOK AND PROSPECTS
The Board is cautiously optimistic of growth prospects in 2021 due to the roll out of the COVID-19 vaccines which is expected to boost business and consumer sentiment and demand. The recent strengthening of commodity prices including natural rubber prices provides opportunities to improve plantation inputs sales. The rubber estate segment is also expected to benefit from progressive opening of rubber trees for tapping and higher cup lump prices.
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 FYE2020 in order to conserve funds for working capital and potential investments in viable assets which are expected to generate future revenue streams. Going forward, the Board of Directors will review the Group's cash flow affordability in recommending dividends to shareholders.
On 17 September 2020, the Board of Directors announced that the proposed disposal of assets attached to the land and transfer of land use right by Givnflow Co. Ltd. (subsidiary in Vietnam) to SNP Co. Ltd. had been completed. The asset disposal will not impact the operations of the Group as the manufacturing and marketing of agricultural related systems and products including plastic related products are being undertaken by other subsidiaries in Malaysia.
The Group has not implemented any new corporate proposals during the financial year. The Group will explore any related and viable investment opportunities to improve the Group's financial performance.
I wish to acknowledge the employees whose dedication and perseverance have contributed to the sustained operations of the Group during the COVID-19 pandemic, 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