47th

ANNUAL GENERAL MEETING

27 MAY 2022

BORNEO CONVENTION CENTRE KUCHING

REPLY TO MINORITY

SHAREHOLDER WATCHDOG

GROUP (MSWG)

OPERATIONAL & FINANCIAL MATTERS

1. The Group recorded a turnaround bottom-line result from its continuing operations with a profit after tax of RM204,748,000 in FY2021 compared to a loss after tax of RM17,250,000 in FY2020 (Page 103 of the Annual Report 2021).

  1. Is the good performance sustainable?

We are holding a positive view as market activities gradually recover from COVID-19 pandemic. The increase in development expenditure from both the Federal government and Sarawak state government will propel the construction job outflows. CMS is well-poised to support the ongoing and upcoming development projects as key contractor or materials supplier in the State.

1b. What is the outlook for all CMS' business Divisions in FY2022?

Cement

CMS continues to strengthen and improve clinker production to lower reliance on imported clinker, reduce operation costs and improve long-term profit margins.

The Group intends to increase the use of new cement products that use less clinker, thus lowering its carbon footprint significantly.

Construction Materials & Trading

CMS is set to benefit from various infrastructure projects in the State and to supply premixes to the Coastal Road and Second Trunk Road developments.

The Group is also looking to increase our quarry assets by optimising production output and seeking new sites across Sarawak.

We would like to tap into supply opportunities from the Pan Borneo Highway, PRIMA Housing and PPR Sarawak Low-Cost Housing projects.

1b. What is the outlook for all CMS' business Divisions in FY2022? (cont'd)

Road Maintenance

Besides leveraging proprietary software "CREAM", CMS has launched a pilot project for the State's zero pothole initiative using Artificial Intelligence. This is to further strengthen our value proposition to customers by enhancing our services to improve quality delivery.

We will be capitalising on our proven track record, cost advantage and new innovative ways to work more efficiently.

Construction

Currently, we have an orderbook of RM570 million.

We are bidding for new projects related to the Autonomous Rapid Transit, Petchem Earthworks, Proposed Upgrading of Jalan Sultan Tengah and the E-Mart Underpass projects amongst others.

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CMSB - Cahya Mata Sarawak Berhad published this content on 27 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 May 2022 08:18:34 UTC.