On behalf of the Board of Directors, it is my pleasure to present to you the Annual Report of Kim Hin Industry Berhad
for the financial year ended 31 December 2016.
The Group recorded an improved revenue of RM403.3 million for the financial year ended 31 December 2016 as compared to RM367.4 million for the preceding financial year. The increase in the Group's revenue was contributed by the better performance in all geographical segments, except for its Malaysia operations, particularly the contribution from the recently acquired subsidiary, Outset Holdings Pty Limited.
However, the Group's profit before tax for the current financial year declined from RM45.7 million to RM39.9 million mainly due to the increase in operating expenses.
In addition to an interim dividend of 3% (tax exempt) declared and paid on 23 December 2016, the Board now recommends a final dividend of 3% (tax exempt) to be paid in respect of the financial year ended 31 December 2016.
The recommended final dividend, if approved by the shareholders at the forthcoming Annual General Meeting, will be paid to shareholders in July 2017. The dividend payouts demonstrated that the Group's commitment in rewarding a fair and equitable return of investment to its shareholders.
CORPORATE SOCIAL RESPONSIBILITY
The Group recognises the importance of being a socially responsible corporate entity and endeavours to treat its stakeholders to whom our business has an impact on, be it directly or indirectly, in a responsible manner.
Kim Hin Group focuses on continuous care, responsibility and commitment towards its stakeholders in particularly the employees, the environment and local communities.
Annually, the Group makes cash contributions to various charitable organisations with the hope of making a positive difference to the lives of the less fortunate. Kimgres Marketing Sdn Bhd, a wholly-owned subsidiary, has committed in contributing 1% of its retail sales annually to the following charitable organizations:
- Society of Severely Mentally Handicapped Children;
- Persatuan Kebajikan Kristian Aman, Selangor (Shalom House);
- Little Sisters of the Poor; and
- Pertubuhan Membantu Pesakit Parah Miskin Malaysia.
As part of our efforts to support and give back to the communities, the Group donated ceramic tiles to various schools, charitable and not-for-profit organizations in 2016. Among the beneficiaries are SJK Chung Hua No. 1 Kuching, SJK Chung Hua Sg Lubak, SMK Taman Tuanku Jaafar, SK St. Aidan, SMK Jalan Bukit, SK Seliau, and Church of the Holy Rosary.
HUMAN CAPITAL MANAGEMENT
Being a leading ceramic tiles manufacturer in the state, it is the Group's core value to ensure the provision of a conducive working environment in which talented individuals will be inspired to excel. The Group continues to impart the knowledge and company philosophy by promoting and organizing well-established training programs for its management and employees.
The Group's commitment in embracing and promoting workforce diversity is reflected in its Workforce Diversity Policy. Through workforce diversity, the Group can have access to the benefits of a broader pool of high quality employees, improving employee retention, accessing different perspectives and ideas and benefiting from all available talent, which in turn will result in improved services to its customers and enhancing the returns to its shareholders. Diversity includes, but not limited to, gender, age, ethnicity and cultural background.
Besides, the Group also embraces that employees are its best asset and are able to steer the Group to greater heights. Hence, various learning and development programs have been conducted throughout the year so as to equip and develop our workforce with both technical and soft skills.
In an effort to recognize the valuable services of its resigned senior employees, the management presents service awards to them for their dedicated services and loyalty to the Group for the past two decades.
In addition, the Group also presents achievement awards to our employees' children who excel in government examinations. Sports and other activities were carried out with the full support and commitment of our employees, through Kimgres Club, the Group's sports club, with a view of providing a healthy lifestyle for our employees.
For my fellow directors, I would like to thank them for their invaluable contribution, advice, support and continued commitment in driving the Group forward.
On behalf of the Board, I would like to express my sincere appreciation to our shareholders, the management and staff, our valued customers, vendors and all our stakeholders as well as business partners for their loyalty, perseverance, dedication and trust towards the Group. Together with the management and staff, we will continue to give our full commitment and strive for better performance in this challenging economic environment.
CHUA SENG HUAT
28 April 2017