Cscstel 202209 Q3
Cscstel 202209 Q3
Cscstel 202209 Q3
(Loss)/Profit after tax attributable to equity holders of the parent (14,183) 9,965 14,939 47,225
Total comprehensive (loss)/income attributable to equity holders of the parent (14,346) 9,624 13,960 48,167
Notes:
The condensed financial statements should be read in conjunction with the accompanying explanatory notes attached to the financial statements and the audited financial statements for the financial
year ended 31 December 2021.
CSC STEEL HOLDINGS BERHAD
Registration No.: 200401001854 (640357-X)
As at End As at Preceding
of Current Financial
Quarter Year Ended
30-Sep-22 31-Dec-21
RM'000 RM'000
Assets
Non-current assets
Property, plant and equipment 147,858 158,343
Investment 3,165 4,143
Prepaid operating lease 16,429 16,606
Staff loans receivables 451 395
167,903 179,487
Current assets
Inventories 364,757 401,328
Receivables 172,533 203,255
Cash and cash equivalents 234,700 233,523
Tax expense - 41,000
771,990 879,106
Non-current liabilities
Deferred tax liabilities 11,543 16,669
11,543 16,669
Current liabilities
Payables 66,424 69,324
Short term borrowings - 71,300
Taxation 2 1,634
66,426 142,258
Notes:
The condensed financial statements should be read in conjunction with the accompanying explanatory notes attached to the financial
statements and the audited financial statements for the financial year ended 31 December 2021.
CSC STEEL HOLDINGS BERHAD
Registration No.: 200401001854 (640357-X)
Cumulative Quarter
Current Preceding Year
Year Corresponding
To Date Period
30-Sep-22 30-Sep-21
RM'000 RM'000
OPERATING ACTIVITIES
Profit before tax 18,984 63,492
Adjustments for:
Non-cash items 14,584 17,599
Non-operating items (2,600) (3,664)
Tax expense
Cash Generated from/(Used In) Operations 95,849 (8,767)
Tax paid (11,378) (5,424)
Interest paid (493) -
INVESTING ACTIVITIES
Purchase of property, plant and equipment (6,474) (6,032)
Proceeds on winding up of investment in subsidiary 2,678 -
Interest received 3,028 3,610
Dividend received from investment 66 54
Proceeds from disposal of investment 43,500 126
Proceeds from disposal of property, plant and equipment 68 -
Net Cash From / (Used in) Investing Activities 42,866 (2,242)
FINANCING ACTIVITIES
234,700 269,302
Notes:
The condensed financial statements should be read in conjunction with the accompanying explanatory notes attached to the financial
statements and the audited financial statements for the financial year ended 31 December 2021.
CSC STEEL HOLDINGS BERHAD
Registration No.: 200401001854 (640357-X)
Rounding difference - - - 1 1
Tax expense
Balance as at 30 Sept 2021 413,163 (11,614) 2,959 456,523 861,031
Notes:
The condensed financial statements should be read in conjunction with the accompanying explanatory notes attached to the financial statements and the audited financial statements for the financial year ended 31 December 2021.
CSC STEEL HOLDINGS BERHAD
Registration No.: 200401001854 (640357-X)
The interim financial statements are unaudited and have been prepared in accordance with the
requirements of MFRS 134: Interim Financial Reporting and Paragraph 9.22 and Part A of
Appendix 9B of the Listing Requirements of Bursa Malaysia Securities Berhad ("Bursa
Securities").
The interim financial statements have been prepared on the basis of consolidating the results
of the subsidiary companies during the nine months period under review using the acquisition
method of accounting. The interim financial statements are to be read in conjunction with the
Company audited annual financial statements for the financial year ended 31 December 2021.
The explanatory notes attached to the interim financial statements provide an explanation of
events and transactions that are significant to an understanding of the changes in the financial
position and performance of the Group.
In the current financial year, the Group and the Company have adopted a number of
amendments to MFRSs issued by the Malaysian Accounting Standards Board (“MASB”) that
are effective for annual periods beginning on or after January 1, 2021 as follows:
The adoption of the above amendments to MFRSs did not have any material impact on the
amounts reported in the financial statements of the Group and of the Company upon its initial
application.
At the date of authorisation for issue of these financial statements, the new and amendments
to MFRSs which were in issue but not yet effective and not early adopted by the Group and
by the Company are as listed below:
Amendments to MFRS COVID-19 Related Rent Concessions beyond June 30, 20212
16
MFRS 17/Amendments Insurance contracts3
to MFRS 17
Amendments to MFRS 3 Reference to the Conceptual Framework1
Amendments to MFRS 4 Extension of the Temporary Exemption from applying MFRS 93
Amendments to MFRS Sale or Contribution of Assets between an Investor and its
10 and MFRS 128 Associate or Joint Venture4
Amendments to MFRS Initial Application of MFRS 9 and MFRS 17 - Comparative
17 Information3
1
CSC STEEL HOLDINGS BERHAD
Registration No.: 200401001854 (640357-X)
1 Effective for annual periods beginning on or after January 1, 2022 with earlier application
permitted.
2 Effective for annual periods beginning on or after April 1, 2021 with earlier application
permitted.
3 Effective for annual periods beginning on or after January 1, 2023 with earlier application
permitted.
4 Effective date deferred to a date to be determined and announced, with earlier application
permitted.
There has not been any qualification made by the auditors on the annual financial statements
of the Group for the financial year ended 31 December 2021.
The Group’s business operation results are not materially affected by any major seasonal or
cyclical factors.
A4. Unusual nature and amounts of items affecting assets, liabilities, equity, net income or
cash flows
There is no item of unusual nature and amounts affecting assets, liabilities, equity, net income
or cash flows.
There are no material changes in estimates of amounts reported in the current quarter under
review.
2
CSC STEEL HOLDINGS BERHAD
Registration No.: 200401001854 (640357-X)
There is no issuance and repayment of debt and equity securities during the quarter under
review.
During the quarter under review, a final single-tier system of dividend of 14 Sen per share for
the financial year ended 2021 was paid on 07 July 2022 to the Company’s shareholders whose
names appeared on the Record of Depositors at the close of business on 24 June 2022.
Consolidation
Steel coils Others adjustment Total
RM’000 RM’000 RM’000 RM’000
Revenue from external
customers 1,337,827 - - 1,337,827
Inter-segment revenue - 51,474 (51,388) 86
Total revenue 1,337,827 51,474 (51,388) 1,337,913
*Steel coils– cold rolled, galvanized & pre-painted galvanized steel coils
Property, plant, and equipment are stated at cost less accumulated depreciation and
impairment losses except for freehold land which is stated at cost. There is no revaluation of
property, plant, and equipment for the current quarter and fiscal year to date.
There is no material event subsequent to the end of the quarter under review
There are no changes in the composition of the Group during the quarter under review.
3
CSC STEEL HOLDINGS BERHAD
Registration No.: 200401001854 (640357-X)
On August 13, 2018, CSC Steel Sdn. Bhd., a wholly-owned subsidiary company of the
Company, entered into a contract with a contractor for the project on gas insulation
switchgear.
The Company received a variation order of RM496,335 on January 20, 2021 with regard to
the following claims:
The parties are in the midst of negotiating a settlement and the outcome is not concluded as
of the reporting date. Hence, no provision has been made in the financial statements.
RM
Approved and contracted for 6,975,268
Approved but not contracted for 13,597,256
20,572,524
4
CSC STEEL HOLDINGS BERHAD
Registration No.: 200401001854 (640357-X)
A revenue of RM363.2 million was achieved during the third quarter ended 30 September
2022 (3QFY22) representing an increase of 80% in comparison to the same quarter in the
preceding year. This was primarily due to a significant increase in sales volumes and a slight
increase in the overall selling price. However, the Group suffered a loss before taxes of RM
14.1 million for the quarter mainly due to higher raw material prices, the implementation of a
higher minimum wage, high inflation as well as increase in inventory impairment.
For the ninth month under review (9MFY2022), revenue increased by 42% to RM1,337.9
million in comparison to the preceding year. This was also primarily due to an increase in the
sales volume and selling price. Notwithstanding that, higher raw material prices, the
implementation of a higher minimum wage, and high inflation, increase in inventory
impairment and hence resulted in a decrease in profit before tax of RM 44.5 million.
B2. Variance of results for the current quarter ended 30 September 2022 against the
immediately preceding quarter
3 MONTHS ENDED
30.9.2022 30.6.2022 Variance %
RM’000
Revenue 363,256 519,598 (156,342) (30%)
Operating profit (19,572) 20,791 (40,363) (194%)
Profit before tax (18,549) 21,714 (40,263) (185%)
Profit after tax (14,183) 17,069 (31,252) (183%)
5
CSC STEEL HOLDINGS BERHAD
Registration No.: 200401001854 (640357-X)
The performance for most of the Asian steel mills in the third quarter were apparently weak,
affected by a significant sales decline and the loss of inventory prices. After experiencing a
low order volume in the third quarter, Malaysia's domestic sales volume and price have shown
a slight recovery at the beginning of the fourth quarter mainly due to the Ringgit's depreciation,
the high import cost and the improvement of labor supply.
The exchange rate of the Ringgit unprecedentedly fell against the US dollar from 4.50 in mid-
September to 4.73 at the end of October. In the fourth quarter, it is expected that the US will
continue to raise interest rates, therefore, strong USD against weak RM will continue, and the
import cost will likely increase. It is uncertain whether the downstream and the steel market
are able to absorb the cost of the exchange rate.
As Europe's energy crisis forces the manufacturing industry across the continent including the
steel mills to close down and the steel prices and demand are unlikely to see any favorable
improvement, the bearish view for the global steel market will probably be prolonged. In
addition, the outcomes of the 20th National Congress of China appears not focusing on
economic advancement, thus the China’s Yuan (Renminbi) is likely to continue depreciating
which stimulates exports and consequently affect the local steel prices as weaker Yuan make
it goods cheaper in the global market place.
Following the depreciation of Asian currencies and the sturdy coal prices in winter, the steel
mills appear to have no room for any price adjustment under the pressure of high raw material
costs. Thus, steel prices are bound to be supported, but market demand is the key to recovery.
Therefore, the Group will remain cautious of market volatility and continue to remain resilient
amid the current and upcoming uncertainties.
Not applicable as the Group does not make any profit forecast for the current financial year.
Current:
- Income Tax (1,269) 9,220
- Deferred Tax (48) (977)
(1,317) 8,243
Prior Year:
- Income Tax (3,049) (3,049)
- Deferred Tax - (1,149)
(3,049) (4,198)
6
CSC STEEL HOLDINGS BERHAD
Registration No.: 200401001854 (640357-X)
As at the end of the reporting quarter, the status of the share buy-back is as follows: -
Neither CHB nor any of its subsidiaries is engaged in any litigation or arbitration, either as
plaintiff or defendant, which has a material effect on the financial position of the Company or
any of its subsidiaries.
The basic earnings per share and diluted earnings per share for the current quarter and
cumulative year to date are computed as follows: -
7
CSC STEEL HOLDINGS BERHAD
Registration No.: 200401001854 (640357-X)