Swang Chai Chuan Limited Announces FY2022 Annual Results

Performance Highlights

• Revenue increased by 25.0% to approximately RM835.91 million.
• Gross profit increased by 18.1% to approximately RM111.62 million.
• Profit for the Reporting Period, excluding listing expenses, increased by 18.4% to approximately RM33.8 million
• Basic earnings per share was RM3.25 sen

Financial Highlights:

For the year ended 31 Dec
RM'000	2022	2021	Change
Revenue	835,906	668,738	+25.0%
Gross profit	111,621	94,508	+18.1%
Profit for the Reporting Period	26,787	23,588	+13.6%
Profit for the Reporting Period, excluding listing expenses	33,813	28,562	+18.4%
Earnings per share (sen)	3.25	3.26	Stable

HONG KONG SAR - Media OutReach - 31 March 2023 - Swang Chai Chuan Limited ("Swang Chai Chuan" or the "Company", together with its subsidiaries, the "Group"; stock code: 2321.HK), an established distributor of food & beverage and other products located in Malaysia, announced its annual results for the year ended 31 December 2022 (the "Reporting Period"). During the Reporting Period, the Group's revenue increased by approximately 25.0% to approximately RM835.9 million mainly due to the increase in the distribution revenue from third party brands and white label products amounting to approximately RM143.0 million and RM16.2 million respectively.

The Group recorded a profit for the year of approximately RM26.8 million for the year ended 31 December 2022 compared to RM23.6 million in 31 December 2021 (the "Preceding Year"). The adjusted profit for year, excluding listing expenses, have increased by approximately 18.4% from RM28.6 million to RM33.8 million for the year ended 31 December 2021 and 2022 respectively. Basic earnings per share was 3.25 sen (2021: 3.26 sen) during the year.

During the Reporting Period, gross profit for the year ended 31 December 2022 was approximately RM111.6 million (2021: approximately RM94.5 million). Gross profit margin of the Group decreased to approximately 13.4% in the Reporting Period as compared to approximately 14.1% in the Preceding Year. The decrease in the gross profit margin was due to the result of competitive price strategy to capture market share, inflationary price increase of products that the Group were not yet able to fully pass on to the customers in the second half of the year and the lower margins from securing two new distribution rights.

BUSINESS REVIEW AND PROSPECTS

The COVID-19 pandemic led to an increase of demand of F&B products, the Group was actively accelerating its business by leasing warehouses to satisfy increased demand. By the end of 2022, the Group has a total of 9 self-owned and 3 leased warehouses strategically located all over Malaysia which contributed to an aggregate designated storage capacity of 30,900m³. In addition, the Company also owns a fleet with more than 150 self-operated logistics vehicles.

Looking forward, the Group will continue to utilize its existing industry knowledge to expand the core strengths and target to explore more business opportunities, and also exercise a careful cost control measures under high inflation business environment to enhance profit margin and maintain its competitiveness.

Mr. Soon See Beng, Chairman and Chief Executive Officer of the Group, said, "Under the influence of the COVID-19 pandemic, demand of F&B remained strong last year, which driving double-digit revenue and profit growth for the year. The Group was successfully listed on the Main Board of the HKEX last year which represented an important milestone for the Group and laid the foundation for overseas development plans. The Group will continue to actively expand our business by increasing seeking new suppliers, investing in product development, enhancing warehouses capacity in the future. Also, we plan to expand our own brand into different markets like Indonesia and China".

Hashtag: #SwangChaiChuan

The issuer is solely responsible for the content of this announcement.