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performance
Annual Report 2017
21
CHAIRMAN’S STATEMENT
Dato’ Adnan bin Shamsuddin
•
Chairman
•
Independent Non-Executive Director
Dear
Shareholders,
On behalf of the Board of Directors,
it is my pleasure to present the
Annual Report and Audited
Financial Statements of Fima
Corporation Berhad (“FimaCorp”)
for the financial year ended
31 March 2017.
FINANCIAL RESULTS AND PERFORMANCE
I am pleased to report that the Group has once again delivered
satisfactory performance for the financial year ended 31 March
2017 (“FYE2016/17”) despite the demands of a changing
marketplace and persistently challenging economic backdrop.
The Group posted a revenue of RM372.1 million for FYE2016/17
which was 0.8% lower than last year’s revenue of RM375.2
million. Despite the improvement in gross profit from RM117.7
million to RM142.5 million, the Group’s PBT for FYE2016/17
decreased by 20.8% to RM61.3 million compared to RM77.3
million recorded last year. The reduction in PBT was mainly due
to RM29.4 million net impairment losses on property, plant and
equipment and biological assets of subsidiary, PT Nunukan Jaya
Lestari. Without the impairment losses, PBT improved by 17.2%
compared to last year.
Earnings per share decreased by 26.4% to 15.64 sen, and
net assets stood at RM2.33 per share. As at 31 March 2017,
FimaCorp’s market capitalisation was RM549.4 million.
Further information on the Group’s financial performance can be
found on pages 89 to 163 of this Annual Report.
DIVIDEND
The Board is recommending the payment of a final dividend for the
year of 12.5 sen per share (FYE2015/16: 7.5 sen) and a special
dividend of 5.0 sen per share. If approved at the forthcoming
Annual General Meeting, the dividend will be paid on 18 September
2017 to shareholders whose names appear on the register as at
5 September 2017. This would bring the total dividend for the full
year to 17.5 sen per share (FYE2015/16: 12.5 sen).
MATERIAL EVENTS
I cannot reflect on FYE2016/17 without acknowledging the
events involving our Indonesian subsidiary PT Nunukan Jaya
Lestari (“PTNJL”). On 26 August 2016, we announced that vide
a letter dated 25 July 2016 to PTNJL (which PTNJL received on
23 August 2016) the Menteri Agraria dan Tata Ruang/Kepala
Badan Pertanahan Nasional issued an order to revoke PTNJL’s
land title Hak Guna Usaha No. 01/Nunukan Barat (“HGU”)
(“Ministerial Order”) with immediate effect, on the basis that the
HGU was improperly issued due to administrative irregularities
performed by certain officers of the Badan Pertanahan Nasional
Provinsi Kalimantan Timur at the time of the issuance of the
HGU in 2003; resulting in parts of the area within the HGU to
overlap with forestry zones. Subsequently on 21 October 2016,
we announced that PTNJL filed an application in the Pengadilan
Tata Usaha Negara (“State Administrative Court”) in Jakarta,
Indonesia seeking an order to annul the Ministerial Order.