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Quarterly Results

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Quarterly Report For The Financial Period Ended 31 December 2017

Condensed Consolidated Statement Of Profit Or Loss For The Quarter Ended 31 December 2017

Statement Of Profit Or Loss For The Quarter Ended 30 September 2017

Condensed Consolidated Statement Of Financial Position As At 31 December 2017

Financial Position Quarter Ended 31 March 2017

Analysis Of Performance Of All Operating Segments

The Group's revenue decreased by 20.5% with loss before taxation (LBT) of RM72.8 million for the year ended 31 December 2017 (-69.0% YoY). The financial position of the Group continue to show improvement as the inventory level has been reduced to RM1,186 million (-32.2% YoY).The corresponding Group net cash inflow generated from operating activities recorded RM264 million as a result of the Group's on-going effort to maintain an optimum carrying value of stock by rationalising the inventory level. Receivables have also improved with better management of receivables collection with RM131.9 million (+285.7% YoY). Further analysis on the segments are explained as follows:

  1. Vehicles Assembly, Manufacturing, Distribution & After Sales Services (automotive)

    The automotive division recorded lower revenue of RM4,257.7 million (-20.9% YoY) with segment EBITDA of RM96.5 million (-5.0% YoY). The lower revenue and EBITDA was due to stiff competition from other market players which has affected new vehicles sales. However, the sustainable performance from the after sales services and spare parts business have mitigated this segment's results. Although the inventory cost was affected by the unfavourable foreign exchange rates and continue to impact the profit margin, the strengthening of the Ringgit, favourable sales mix and cost optimisation strategies have mitigated the results.

  2. Financial Services (hire purchase and insurance)

    The financial services division recorded higher revenue of RM75.9 million (+15.3% YoY) and EBITDA of RM20.9 million (+10.4% YoY). The increase in revenue was due to higher loan book size sustained as of 31 December 2017 compared to previous year. The hire purchase financing segment has provided higher yield to the Group. The insurance commissions from motor insurance business continue to sustain the financial services segment after the motor insurance premiums were liberalised by Bank Negara Malaysia from 1 July 2017.

  3. Other Operations (investments and properties)

    Revenue from other operations was lower at RM7.6 million compared to RM11.4 million in the previous year and LBITDA was at RM2.8 million compared to EBITDA of RM34.0 million in the previous year. The lower revenue recorded was due to reduction of revenue from the provision of information technology services, trading business and education services. The LBITDA included net foreign exchange loss of RM22.5 million arising from financing overseas entities upon the strengthening of Ringgit.

Current Year Prospects

The domestic automotive industry outlook is expected to remain subdued in 2018 as new vehicles sales continue to face a competitive business environment with the continuing strict financing approval guidelines and recent interest rate hike.

The Group is taking active measures to improve its competitiveness in the domestic market with the expected launch of new models in the coming quarters. We will continue to expand the sales operations in the overseas market to sustain the sales momentum.

The Group remains committed to our roots in Malaysia while strengthening our foundation in the emerging markets such as Cambodia, Laos, Vietnam and Myanmar to reap the future benefits of economic growth in these countries. The Group continues to remain focused on ensuring sustainable financial position going forward by leveraging on our core competencies.