SHIN YANG GROUP BERHAD (formerly known as Shin Yang Shipping Corporation Berhad) Registration No: 200401027554 (666062-A)

| ANNUAL REPORT 2023

SHIN YANG GROUP BERHAD
(Formerly known as Shin Yang Shipping Corporation Berhad)
Registration No. 200401027554 (666062-A)

Step by Step To Excellence

SHIN YANG GROUP BERHAD
(Formerly known as Shin Yang Shipping Corporation Berhad)
Registration No: 200401027554 (666062-A)
Sub Lot 153 (Parent Lot 70),
Jalan Kuala Baram,
Kuala Baram, 98100 Miri,
Sarawak, Malaysia

ANNUAL 20
REPORT 23
TABLE OF
CONTENTS
2 Vision and Corporate Mission 58 Corporate Governance Overview
Statement
2 Core Businesses
71 Statement on Risk Management and
4 Corporate Information Internal Control

6 Financial Calendar 75 Audit & Risk Management Committee

Report
7 10-years Statistic Highlights
79 Statement on Director’s Responsibility
9 Corporate Structure
80 Financial Statements
10 Profile of Board of Directors
202 Analysis of Shareholdings
15 Key Management Profile
205 Properties of The Group
17 Chairman’s Statement
207 Notice of Annual General Meeting
21 Management’s Discussion and Analysis
Proxy Form
26 Sustainability Report
2 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

SHIN YANG GROUP BERHAD

OUR VISION
One-stop Quality Shipping, Logistics Services
Provider and Marine Engineering in South
East Asia and Beyond.
And
To be the Premier Shipbuilder & Integrated
Marine Structural Fabricators

OUR CORPORATE MISSION

To operate in a Modern Integrated shipping
and shipbuilding world as a benchmark in
providing Comprehensive, Innovative and
efficient Quality services.

Adaptability to changes, and retention of

sustainable success and steadfast in Health,
Safety, Environment and Quality Value.

Committed to achieving Quality Assurance

and Management through quality planning,
improvement and control.

Full concern for preserving and conserving

the Environment, Health and Safety of our
community and employees, neighbouring
communities and our valued customers.

CORE BUSINESSES

Our business is focused on shipping and shipbuilding, which represent our main core revenue streams. Our
two core businesses are synergistic as we construct vessels and also utilise them in our shipping operations.
In supporting our core business areas, we also undertake shipping agency & forwarding services, door to door
shipments, third party logistics transportation solutions, ship repairs, ship repowering & refitting, ship modification
& conversion and maintenance works, barrage and shiplock management, manufacturing, distributing and
marketing of industrial gas, provision of maintenance and trading in welding equipment and machinery and many
other specialised services and works.

Being an integrated shipping and shipbuilding operator provides us with the competitive advantage to react
quickly to favourable market conditions and to quickly undertake modification of existing vessels to meet new
business opportunities and reinforce our fleet robustness for our shipping operation requirements.
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 3
(Formerly known as Shin Yang Shipping Corporation Berhad)

SHIN YANG GROUP BERHAD

(Cont’d)

INTERNATIONAL AND
DOMESTIC SHIPPING

Our shipping operations

cover both Malaysian
and International waters;
ranging from South East
Asia, East Asia and the Far
East region. Currently, we
are supported by our own
fleet of 199 vessels with a
total Gross Tonnage (GT)
of approximately 326,000
Tonnage.

SHIPBUILDING, SHIP REPAIR

AND METAL FABRICATION

Our shipbuilding facilities are supported by

three shipbuilding yards located in Kuala
Baram, Miri and one in Bintulu, Sarawak
with a total land area of approximately 280
acres and an annual capacity to construct
40 vessels based on a hundred meter
length vessel. In addition, we also have one
shipbuilding yard in Tanjung Manis, Sarawak
for future business expansion with a total
land area of approximately 214 acres.

TRANSPORT AND LOGISTICS BARRAGE AND SHIPLOCK GAS

MANAGEMENT
Our transport and logistics Our gas operation operates 2
operations are supported by its Our Barrage and Shiplock production plants for Dissolved
current fleet of 249 prime movers Management operation is solely Acetylene and Air Separation unit,
with attached 626 trailers, 138 for the operation management 2 refilling gas industrial facilities in
dump & cargo trucks and 26 diesel and maintenance of the Barrage Miri and 2 refilling gas industrial
& crude palm oil tankers for the and Shiplock in particular facilities in Bintulu. The principal
transportation of a wide variety of for Lembaga Sungai Sungai market of our gas products and
goods from source to destination Sarawak/ Sarawak Rivers Board services are Malaysia and Brunei.
within East Malaysia. under the Sungai Sarawak
Regulation Scheme since 1997.
Currently, we have fifty (50) staff in
its team with the vast experience
and qualification which operates
on a 24 hours basis every day.
4 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

CORPORATE INFORMATION

1 2 3

4 5 6

7 8 9

BOARD OF DIRECTORS

1. Tan Sri Datuk Ling Chiong Ho 5. Ling Siu Chuo

Group Executive Chairman
6. Vincent Ling Lu Yew
2. Datuk Ling Lu Kiong
Group Executive Vice Chairman 7. Arshad Bin Zainuddin

3. Ling Chiong Sing 8. Yong Nyet Yun

Group Managing Director
9. Jack Willien @ William Anak Jinep
4. Ling Chiong Pin
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 5
(Formerly known as Shin Yang Shipping Corporation Berhad)

CORPORATE INFORMATION
(Cont’d)

PRINCIPAL BANKERS AUDITORS

AmBank (M) Berhad Crowe Malaysia PLT (AF: 1018)

AUDIT AND RISK Affin Bank Berhad Lot 2395, Block 4, Bulatan Business
MANAGEMENT COMMITTEE CIMB Bank Berhad Park, Jalan Bulatan Park, 98000 Miri,
Hong Leong Bank Berhad Sarawak, Malaysia
Yong Nyet Yun Malayan Banking Berhad Telephone No. : [6085]-658 835
Chairman and Independent RHB Bank Berhad Facsimile No. : [6085]-655 001
Non -Executive United Overseas Bank (Malaysia) Bhd
REGISTERED OFFICE
Arshad Bin Zainuddin CHIEF EXECUTIVE OFFICER
Independent Non -Executive Sublot 153 (Parent Lot 70)
Captain Ting Hien Liong Jalan Kuala Baram, Kuala Baram
Ling Siu Chuo 98100 Miri, Sarawak, Malaysia
Non-Independent Non-Executive CHIEF OPERATING OFFICER Telephone No. : [6085]-428399
CUM COMPANY SECRETARY Facsimile No. : [6085]-421428
Jack Willien @ William Anak Jinep E-mail: [email protected]
Independent Non -Executive Richard Ling Peng Liing Website: www.shinyanggroup.com.my

CHIEF FINANCIAL OFFICER STOCK EXCHANGE LISTING

JOINT NOMINATION &
REMUNERATION COMMITTEE Teh Zi Qin The Main Board Bursa Malaysia

Jack Willien @ William Anak Jinep SHARE REGISTRARS STOCK NAME

Chairman and Independent
Non -Executive Boardroom Share SYGROUP
Registrars Sdn Bhd
Arshad Bin Zainuddin (199601006647 / 378993-D) STOCK CODE
Independent Non –Executive 11th Floor, Menara Symphony
No.5, Jalan Prof. Khoo Kay Kim 5173 (Transportation and Logistics)
Ling Siu Chuo Seksyen 13, 46200 Petaling Jaya
Non-Independent Non Executive Selangor Darul Ehsan, Malaysia DOMICILE
Telephone No. : [603]-7890 4700
Facsimile No. : [603]-7890 4670 Malaysia

Berthing of Danum 173

6 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

FINANCIAL CALENDAR

FINANCIAL YEAR END 30 JUNE 2023

Announcement of results
First Quarter 29 November 2022
Second Quarter 24 February 2023
Third Quarter 30 May 2023
Fourth Quarter 30 August 2023
Published Annual Report And Financial Statements
Notice of Annual General Meeting 27 October 2023
18th Annual General Meeting 24 November 2023

Container handling at Samalaju Industrial Park, Sarawak

Floating dock in operation Construction for conversion of crude palm oil barge to
container vessel
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 7
(Formerly known as Shin Yang Shipping Corporation Berhad)

10- YEARS STATISTIC HIGHLIGHTS

Revenue (RM'000)
1,200,000 1,137,072
939,604
1,000,000 882,870 893,458

800,000
641,567 645,201
589,675 619,054 596,496 601,521
600,000

400,000

200,000

0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Gross Profit (RM'000)

250,000
208,413
190,607
200,000

150,000
101,329
100,000 79,187 80,254
40,842 46,353 35,881
50,000
1,114 2020
0
2014 2015 2016 2017 2018 2019 2021 2022 2023
-50,000
(52,867)
-100,000

PAT (RM'000)
200,000 182,605
142,842
150,000
100,000
50,000 30,515 17,750
6,153 5,226 6,512 5,423
2019 2020
0
(50,000) 2014 2015 2016 2017 2018 2021 2022 2023
(100,000)
(89,158)
(150,000) (145,910)

NTA (RM per share)

1.2 1.07
0.93 0.95 0.96 0.96 0.98
1 0.91 0.92
0.78 0.79
0.8
0.6
0.4
0.2
0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
8 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

10- YEARS STATISTIC HIGHLIGHTS

(Cont’d)

Vessel fleet (no)

350
297 295 284
300 277 268
250 240
250 229 225
199
200
150
100
50
0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Vessel fleet (GT'000)

500 464
432
378 380 393 376
400 370 357 349
326
300

200

100

0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

No. of Vessels completed & WIP

35 31 30
30
25
20 16
15 13
11 10 10
10 8 8
5
5
0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

No. of Employee
4000 3537 3463
3500 3063
2961 2825
3000
2441 2445 2304
2500 2192 2063
2000
1500
1000
500
0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 9
(Formerly known as Shin Yang Shipping Corporation Berhad)

CORPORATE STRUCTURE

SHIN YANG GROUP BERHAD

DANUM SHIPPING SDN BHD SHIN YANG SHIPPING SDN BHD

100% 100%

SINAR ASIAMAS SDN BHD SHIN YANG FZC PT SHINLINE

49% 49%
100%

DEENA SHIPPING LLC PT BARUNA ADIPRASETYA

49% 49%
THAILINE SDN BHD

100%
KUCHING BARRAGE
MANAGEMENT SDN BHD

100%
SHINLINE SDN BHD

100%
MELINAU CONTAINER
SERVICES SDN BHD

50.5%
PIASAU SLIPWAYS SDN BHD

100%
PIASAU GAS SDN BHD
(acquired on 6 July 2022)
100%
SHIN YANG
SHIPYARD SDN BHD
100%
MEWAH EXIM SDN BHD
(acquired on 15 September 2023)
60%
DYNASYS TECHNOLOGY &
ENGINEERING SDN BHD
100%
MEWAHTRANS LOGISCTIC SEATRADE AGENCY
SDN BHD SERVICES SDN BHD
100% 100%
MELINAU TRANSPORT
SDN BHD
MEWAH AUTOWORKS MEWAH LOGISTIK
100% SDN BHD SDN BHD
100% 49%

HOCK LEONG SHIPPING MELINAU SHIPPING SDN BHD

SDN BHD
70% 39%

Subsidiaries of Shin Yang Group Berhad

Associates of Shin Yang Group Berhad
10 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

PROFILE OF BOARD OF DIRECTORS

TAN SRI DATUK LING CHIONG HO

Group Executive Chairman

Male Malaysian

Date Of Appointment
15 September 2004 (Director)
71 years 31 March 2010 (Non-Executive Chairman)
28 February 2022 (Group Executive Chairman)

Tan Sri Datuk Ling Chiong Ho has been re-designated as Tan Sri Datuk Ling is the brother of Ling Chiong Sing,
the Group Executive Chairman on 28 February 2022. He has Ling Chiong Pin and Mdm Ling Siu Chuo, directors of the
extensive experience and technical know-how towards new Company. Tan Sri Datuk Ling is deemed connected to Shin
development and design & full construction of vessels and Yang Holding Sdn Bhd, one of the substantial shareholders
repair of vessels. He has been instrumental in the growth and of the Company. He is deemed interested in various
development of the Group and had led our Group to become transactions between the Group and certain companies
an established shipping operator and leading shipbuilder in carried out in the ordinary course of business by virtue of
Malaysia. Tan Sri Datuk Ling is the founder and Chairman of his common directorship and/or shareholdings in these
the well diversified Shin Yang Holding Group of Companies companies.
involved in reforestation, wood based downstream activities,
property development, infrastructure projects and public Tan Sri Datuk Ling had attended all four Board Meetings held
toll concession, oil palm plantation, public transportation, during the financial year ended 30 June 2023. He has not
hypermarkets and hotel businesses. Tan Sri Datuk Ling been convicted of any offence within the past 5 years and
is also the Group Business Advisor of Sarawak Oil Palms has not been imposed with any public sanction or penalty
Berhad, a company listed on Bursa Malaysia Securities by any of the relevant regulatory bodies during the financial
Berhad. year.
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 11
(Formerly known as Shin Yang Shipping Corporation Berhad)

PROFILE OF BOARD OF DIRECTORS

(Cont’d)

Male Malaysian Male Malaysian

67 years 42 years

LING CHIONG SING DATUK LING LU KIONG

Group Managing Director GROUP EXECUTIVE VICE CHAIRMAN

Date Of Appointment Date Of Appointment

15 September 2004 (Director) 8 April 2022 (Group Executive Vice Chairman)
13 May 2010 (Group Managing Director)

Ling Chiong Sing graduated from Taiwan in Accountancy Datuk Ling Lu Kiong graduated with a Bachelor of Marketing
and is responsible for the overall operational and financial from Curtin University of Technology, Malaysia in 2002. He
management of our Group. As one of the founding members started his career with Shin Yang Holding Group’s timber
of our Group, Mr. Ling brings with him over thirty (30) years downstream division in year 2003. He is responsible for
of extensive and hands-on knowledge on all aspects of our the overall corporate strategic planning, management and
business activities ranging from international and coastal operation of the well diversified Shin Yang Holding Group.
shipping, shipbuilding and ship repairs. Mr. Ling was also a He brings with him twenty (20) years of extensive working
pioneer to our projects planning and business development, experience and hands-on knowledge on all aspects of Shin
especially the expansion of new shipping routes. Mr Ling Yang Holding Group’s business activities, which include
is also the Non-Executive Director and a member of MRGF timber downstream processing, forest reforestation and oil
Committee of Sarawak Oil Palms Berhad, a company listed palm plantation, shipping and shipbuilding activities, quarry
on Bursa Malaysia Securities Berhad. operation, public servicing section, property development
and construction, hypermarket & department store business,
Mr. Ling also served as Chairman to Miri Chinese Chamber hotel management and general trading. Datuk Ling Lu Kiong
of Commerce and Industry for the 2021 to 2023 term. He has is currently the Group Managing Director of the well diversified
been appointed as a permanent council member of Sarawak Shin Yang Holding Group of Companies, based in Sarawak.
Timber Association since March 2010.
He was conferred the award of Darjah Panglima Gemilang
He is the brother of Tan Sri Datuk Ling, Ling Chiong Pin and Bintang Kenyalang (PGBK) by Yang Dipertua Negeri Sarawak
Mdm Ling Siu Chuo who are Group Executive Chairman, on 9 October 2021.
Executive Director and Non-Executive Director of the
Company respectively. He is deemed connected to Shin Yang He is the son of Tan Sri Datuk Ling Chiong Ho, the Group
Holding Sdn Bhd, one of the substantial shareholders of the Executive Chairman, and nephew of Ling Chiong Pin and
Company. He is deemed interested in various transactions Ling Chiong Sing, who are the Executive Director and Group
between the Group and certain companies carried out in Managing Director of the Company respectively. He is an
the ordinary course of business by virtue of his common appointed representative of Shin Yang Holding Sdn Bhd,
directorship and/or shareholdings in these companies. one of the substantial shareholders of the Company. He is
deemed interested in certain transactions between the Group
He has attended all four Board Meetings held during and certain companies carried out in the ordinary course of
the financial year ended 30 June 2023. He has not been business by virtue of his common deemed shareholdings in
convicted of any offence within the past 5 years and has not these companies.
been imposed with any public sanction or penalty by any of
the relevant regulatory bodies during the financial year. He has attended all four Board Meetings held during the financial
year ended 30 June 2023. He has not been convicted of any
offence within the past 5 years and has not been imposed with
any public sanction or penalty by any of the relevant regulatory
bodies during the financial year.
12 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

PROFILE OF BOARD OF DIRECTORS

(Cont’d)

Male Malaysian Female Malaysian

69 years 60 years

LING CHIONG PIN LING SIU CHUO

Executive Director Non-Independent Non-Executive Director

Date Of Appointment Date Of Appointment

30 November 2009 (Executive Director) 30 November 2009 (Non-Independent Non-Executive Director)

Ling Chiong Pin had served as a Coastal Master of Ling Siu Chuo started her career with Shin Yang Holding
domestic tugboats for over ten (10) years during the 1970s. Group in the 1980s and was later promoted to be the Manager
He is currently the Director of Piasau Slipways Sdn Bhd and in charge of the administration and human resources of Shin
is responsible for all aspects of our shipbuilding and ship Yang Holding Group in 1990. She has hands-on experience
repair operations. He brings with him extensive hands-on and knowledge of the business activities of the Shin Yang
experience and knowledge in shipping and shipbuilding Holding Group and related business and administrative
operations. matters involving shipping and shipbuilding activities.
Presently she serves as a member of the Audit and Risk
He is the brother of Tan Sri Datuk Ling, Ling Chiong Sing and Management Committee and as a member of the Joint
Mdm Ling Siu Chuo, who are Group Executive Chairman, Remuneration and Nomination Committees.
Group Managing Director and Non-Executive Director of the
Company respectively. He is deemed connected to Shin Yang She is the sister of Tan Sri Datuk Ling, Ling Chiong Sing and
Holding Sdn Bhd, one of the substantial shareholders of the Ling Chiong Pin who are Group Executive Chairman, Group
Company. He is deemed interested in various transactions Managing Director and Executive Directors of the Company
between the Group and certain companies carried out in respectively. She is an appointed representative of Shin Yang
the ordinary course of business by virtue of his common Holding Sdn Bhd, one of the substantial shareholders of the
directorship and/or shareholdings in these companies. Company. She is deemed interested in certain transactions
between the Group and certain companies carried out in
He has attended all four Board Meetings held during the ordinary course of business by virtue of her common
the financial year ended 30 June 2023. He has not been directorship in these companies.
convicted of any offence within the past 5 years and has not
been imposed with any public sanction or penalty by any of She has attended all four Board Meetings held during
the relevant regulatory bodies during the financial year. the financial year ended 30 June 2023. She has not been
convicted of any offence within the past 5 years and has not
been imposed with any public sanction or penalty by any of
the relevant regulatory bodies during the financial year.
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 13
(Formerly known as Shin Yang Shipping Corporation Berhad)

PROFILE OF BOARD OF DIRECTORS

(Cont’d)

Male Malaysian Male Malaysian

39 years 60 years

VINCENT LING LU YEW ARSHAD BIN ZAINUDDIN

Non-Independent Executive Director Independent Non-Executive Director

Date Of Appointment Date Of Appointment

2 September 2016 (Non-Independent Executive Director) 2 September 2016 (Independent Non-Executive Director)

Vincent Ling Lu Yew graduated with a Bachelor of Civil Arshad Bin Zainuddin has extensive experience in Quality
and Construction Engineering from Curtin University of Assurance and Health Safety and Environmental activities.
Technology, Australia in 2006. In 2007, he joined Shin Yang He started work as an assistant administrator for the
Shipyard as Operation Manager and was appointed as Sarawak region with Bintulu Industrial Gas Sdn Bhd in 1989.
Director of Shin Yang Shipyard in March 2010. Mr. Vincent He was a HSE Manager for the Sarawak Region in Citra Alti
Ling oversees the day-to-day operations of our Shipbuilding Sdn Bhd, who was in charge of HSE activities for all project
and ship repair & metal fabrication operations and actively sites including new projects in Malaysia.
implementing continual improvements to our shipbuilding
and ship repair & metal fabrication operations. He is He was awarded the National General Certificate in
gradually overseeing the international shipping sector within Occupational Safety and Health in July 1994 by The National
the Group and will gradually contribute to the strategic Examination Board in Occupational Safety and Health,
planning and evaluation of the overall shipping sector. England. He was also awarded the Chartered Member and
Chartered Advanced Diploma in Logistics Management by
He is the son of Ling Chiong Pin, the Executive Director The Chartered Institute of Logistics and Transport, United
and nephew of Tan Sri Datuk Ling Chiong Ho and Ling Kingdom in December 2006.
Chiong Sing who are Group Executive Chairman and Group
Managing Director of the Company respectively. He is an Encik Arshad is also a member of the Audit and Risk
appointed representative of Shin Yang Holding Sdn Bhd, Management Committee and Joint Remuneration and
one of the substantial shareholders of the Company. He is Nomination Committees. He is not related to any director
deemed interested in certain transactions between the Group and /or substantial shareholders of the Company and does
and certain companies carried out in the ordinary course of not have any conflict of interest with the Group.
business by virtue of his common deemed shareholdings in
these companies. He has attended all four Board Meetings held during
the financial year ended 30 June 2023. He has not been
He has attended all four Board Meetings held during convicted of any offence within the past 5 years and has not
the financial year ended 30 June 2023. He has not been been imposed with any public sanction or penalty by any of
convicted of any offence within the past 5 years and has not the relevant regulatory bodies during the financial year.
been imposed with any public sanction or penalty by any of
the relevant regulatory bodies during the financial year.
14 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

PROFILE OF BOARD OF DIRECTORS

(Cont’d)

Female Malaysian Male Malaysian

64 years 70 years

YONG NYET YUN JACK WILLIEN @ WILLIAM ANAK JINEP

Independent Non-Executive Director Independent Non-Executive Director

Date Of Appointment Date Of Appointment

31 May 2022 (Independent Non-Executive Director) 14 April 2022 (Independent Non-Executive Director)

Mdm Yong Nyet Yun graduated with a Bachelor of Jack Willien @ William Anak Jinep holds a Degree in Maritime
Commerce degree from the University of New South Wales, Transport from Institute of Transport, Portland Place, London
Sydney, Australia in 1983. She is a member of the Malaysian and a Post Graduate Diploma in Shipping Management from
Institute of Accountants, a Fellow member of CPA Australia Plymouth Polytechnic, England. He is also a Chartered Member
and a member of the Chartered Tax Institute of Malaysia. of the Chartered Institute of Logistics and Transport, Malaysia. He
has nearly 50 years of extensive experience in maritime transport.
She joined Ernst & Young Malaysia in 1984. She was the
partner in charge of Ernst & Young Miri and Bintulu Offices Mr. William Jinep held various positions in the Marine Department,
until she retired from the partnership in 2019. She has Sarawak until he left in year 1990 and joined Bintulu Container
intensive experience in assurance, taxation and corporate Services Sdn Bhd, a subsidiary of the Bintulu Development
finance services. Authority as the General Manager. He joined Sarawak Rivers
Board in 1993 and was appointed as the Chief Executive Officer
Mdm Yong is also the Chairman of the Audit and Risk from November 2011 until October 2017. In May 2019, he was
Management Committee and the director of Mewah Exim appointed as Port Advisor to the Ministry of Infrastructure and
Sdn Bhd, a subsidiary of Shin Yang Group Berhad. She is Port Development, Sarawak until May 2021. He had served as
not related to any director and/or substantial shareholders a Board member of Miri Port Authority, Sarawak Rivers Board,
of the Company and does not have any conflict of interest Magna Focus Sdn Bhd and the Sarawak Buoys and Lights Board.
with the Group.
In recognition of his excellent services, Mr. William Jinep
She has attended all four Board Meetings held during has been awarded the Ahli Mangku Negara (2008), Kesatria
the financial year ended 30 June 2023. She has not been Mangku Negara (2022) from the Yang DiPertuan Agong, Pingat
convicted of any offence within the past 5 years and has not Perkhidmatan Bakti (2008) Pingat Terpuji Jubli Emas, Malaysia
been imposed with any public sanction or penalty by any of (2014) and Pegawai Bintang Kenyalang (2013) from Tuan Yang
the relevant regulatory bodies during the financial year. Dipertua Negeri Sarawak.

Mr. William Jinep is also the Chairman of the Joint Remuneration

and Nomination Committees and a member of the Audit and
Risk Management Committee. He is not related to any director
and/or substantial shareholders of the Company and does not
have any conflict of interest with the Group.

He has attended all four Board Meetings held during the financial
year ended 30 June 2023. He has not been convicted of any
offence within the past 5 years and has not been imposed with
any public sanction or penalty by any of the relevant regulatory
bodies during the financial year.
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 15
(Formerly known as Shin Yang Shipping Corporation Berhad)

KEY MANAGEMENT PROFILE

Male Malaysian Male Malaysian

CAPTAIN TING HIEN LIONG RICHARD LING PENG LIING

Chief Executive Officer Chief Operating Officer cum Company Secretary

Captain Ting is responsible for the overall daily operation Richard Ling holds a Master in Business Administration
of the Group. Captain Ting graduated with a Bachelor of from Curtin University of Technology, Australia and is a
Science in Marine Navigation and Shipping Management from Fellow member of the Association of Chartered Certified
Keelung, Taiwan, and also holds a Class 1 Master Certificate Accountants (ACCA), Malaysian Institute of Accountants and
(Captain). Captain Ting joined Shinline Sdn. Bhd. as the the Chartered Tax Institute of Malaysia. He began his career
General Manager in 1997. Since 2000, he oversees the overall as an Auditor with TNAC & Partner, United Kingdom in 1991.
operations of our shipping, shipbuilding and ship repair & Later, he joined Arthur Andersen & Co. in 1993 where he was
metal fabrication operations and subsequently redesignated involved in financial audits including statutory bodies and
as the Chief Executive Officer of the group. He over thirty financial due diligence exercises.
(30) years of hand-on experience in shipping operations
including Class Marine Surveyor for Bureau Veritas, Owner He joined the Shin Yang Holding Group in 1997 as an
Representative of shipping companies, Ship Captain for Accountant in Forescom Plywood Berhad and later assumed
Ocean going vessels, Docking Master and Charging Engineer responsibility as the Senior Accountant in charge of financial
for companies in Sabah and Sarawak, Master, Chief Officer, reporting in the headquarters of Shin Yang Sdn Bhd in 1998.
and Deck Cadet on board of various cargo vessels operated Since 2008, he has been in charge of our treasury function
by Mitsui O.S.K Lines, Japan and OOCL Hong Kong. and corporate finance and was promoted to Financial
Controller and Company Secretary in 2009 and subsequently
Captain Ting is a Director of Hock Leong Shipping Sdn Bhd redesignated as Chief Financial Officer. His professional
and Mewah Exim Sdn Bhd, both the subsidiaries of the experience includes accounting, secretarial, management
Group. He also a Director of Sarawak Maritime Academy Sdn consultancy, taxation, banking and finance. At present, he is
Bhd, maritime higher learning institute which is a member of currently the Chief Operating Officer and Company Secretary
Shin Yang Holding Group. of the Group.

He is not related to any director and/or substantial Richard Ling is also a director of Mewah Exim Sdn Bhd, a
shareholders of the Company and does not have any conflict subsidiary of Shin Yang Group Berhad
of interest with the Group.
He is not related to any director and/or substantial
He has not been convicted of any offence within the past 5 shareholders of the Company and does not have any conflict
years and has not been imposed with any public sanction or of interest with the Group.
penalty by any of the relevant regulatory bodies during the
financial year. He has not been convicted of any offence within the past 5
years and has not been imposed with any public sanction or
penalty by any of the relevant regulatory bodies during the
financial year.
16 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

KEY MANAGEMENT PROFILE

(Cont’d)

Mr. Teh possesses over 13 years of diverse industry

accounting related experiences, including role as internal
audit consultant, in-house internal auditor and external
auditor. He is actively involved in examine and review the
financial records and processes, operational and financial
controls enhancement, internal controls review of IPO (initial
public offering) exercises, business process improvement,
compliances and enterprise risk management with both
public listed companies and private enterprises. His
exposures of industries are including logistics, manufacturing,
plantation, trading, construction & development, hotel, retail,
Male Malaysian Information Technology, medical services, financial services
and e-commerce.

Before joining the Group, he served as Head of Internal

Audit, Compliances, and Risk Management function at
various public and private companies, specializes in logistics
and manufacturing.
TEH ZI QIN
Chief Financial Officer
He is not related to any director and/or substantial
shareholders of the Company and does not have any conflict
Mr. Teh was appointed on 1 July 2023. He holds a Bachelor of interest with the Group.
of Accounting (hons) degree from Multimedia University
Malaysia. He is a Chartered Accountant with the Malaysia He has not been convicted of any offence within the past 5
Institute of Accountants, an Associate Member of the years and has not been imposed with any public sanction or
Institute of Internal Auditors Malaysia, and the Malaysian penalty by any of the relevant regulatory bodies during the
Association of Certified Fraud Examiners. financial year.

Attended EGM on 30/6/2023 on change of company name

Keel Lay Ceremony on Yard 466

ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 17
(Formerly known as Shin Yang Shipping Corporation Berhad)

CHAIRMAN’S STATEMENT

“ It is my privilege to present on behalf of the Board of

Directors of Shin Yang Group Berhad and its subsidiaries (“the
Group”), the Annual Report and Audited Financial Statements of

”
the Group for the financial year ended 30 June 2023.

As part of the Group’s move to integrated expansion, the Group

rebrands itself as Shin Yang Group Berhad with effect from
4 July 2023. The change of name of the Company from Shin
Yang Shipping Corporation Berhad is in line with the Company’s
rebranding, restructuring and recapitalisation exercise with an
aim to better reflect the Group’s new corporate identity and entity.
The Group is marking its mark and moving forward, expanding
into more diversified business activities and establishing brand
building of the Group.

REVIEW OF RESULT PERFORMANCE

In the financial year ended 30 June 2023 under review (FYE2023),

the Group reported a group revenue of RM 939.6 million,
representing a 5.2% growth compared to RM 893.5 million
achieved in the preceding year (FYE2022). The Group also
achieved a profit after tax of RM 182.6 million, an uptrend moving
of 27.8% achieved as compared to RM 142.8 million recorded
in FYE2022. This achievement resulted from a combination of
factors, coupled with a high utilisation of shipping spaces for
the container vessels and bulk carriers as well as the improved
sales volume and high demand for transportation and logistics
services.

Our financial position is commendable and we take courage in

our improved surplus cash position and net current asset level.

During the year, the Group had maintained its vessel fleet of 199
vessels with a Gross Tonnage (GT) of approximately 326,000
tonnages compared to 225 vessels with an approximate GT of
349,000 tonnages in year 2022.

We had analysed that domestic and coastal shipping were the

major growth contributors covering the local demand from both
the infrastructure and resource-based sectors. Furthermore, the
Group’s shipbuilding sector has also showed signs of a stable
recovery path from the operating expenditures by the oil and gas
industry players, coupled with improvement in crude oil prices.
The order books for ship repair and docking effect maintenance
has shown a gradual recovery with a few new built vessels being
ordered as the industry recovers over the year. In order to sustain
in the maritime industry, the Group must be able to stand firm and
consolidate its business activities and we are as committed and
dedicated to fulfil the Group’s commitments and responsibilities
to the stakeholders.
18 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

CHAIRMAN’S STATEMENT
(Cont’d)

The vessel fleet age profiles of the Group is as follows:

Vessel Fleet Age profiles

10 years and below ,

3.5%

11-20 years,
Over 20 years, 52.3%
44.2%

With the continuous improvement in terms of fleet efficiency, routes enhancement

and plying speed of our vessel fleets, the Group is expected to increase its
containers shipping scope by establishing strategic alliance with business
partners to provide efficient and effective port services while the partners will aim
to achieve economies of scale to increase shipping service frequency routes from
our sixteen (16) units of container vessels. The shipment of liquid bulk from the
tankers has also shown its earnings stability.

As part of our strategic growth plan, we embark to leverage our expertise in

warehousing and third party logistics to solidify our position as a one stop service
provider. We have dedicated to expand our network of warehousing deliberately,
allowing us to better serve our clients and to meet the ever evolving market
demands. Container handling at Port designation area

DIVIDEND

The Board is mindful of the continuous support and loyalty of its shareholders. FYE2022, a final Single-tier tax exempt
dividend of 1.25 sen per ordinary share was declared and paid on 15 December 2022. Nonetheless, the Board has proposed
a final single-tier dividend of 3.00 sen per ordinary share in respect of the FYE 2023 for the shareholders’ approval at the
forthcoming Annual General Meeting.

REVIEW OF OPERATIONS

For the year under review, we have shipped 0.437 million cubic metres of downstream timber products, a decrease of 34.2%
from 0.664 million cubic metres in FYE2022 from our five (5) units of Twin Decker cargo vessels to the Far East regions.

Our container vessels had transported 196,354 TEUs lifting capacity for the FYE2023 (FYE2022: 212,500 TEUs). The Group
currently operates a fleet of 16 container ships, plying between Sarawak and Singapore, serving ports between Peninsular
Malaysia, Sarawak and Sabah.

For the shipbuilding sector, we had successfully completed and delivered one (1) vessel to the ship owner in FYE2023.
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 19
(Formerly known as Shin Yang Shipping Corporation Berhad)

CHAIRMAN’S STATEMENT
(Cont’d)

Our major business operation activities at Kuala Baram Industrial Estate, Miri, Sarawak

Shipping Operation Utilisation Rates (%): Shipbuilding Operation Utilisation Rates (%):

100% 95%
92% 70%
90% 85% 85% 83%
80% 79% 60% 58%

70% 65%
50%
58%
60% 54%
50% 40%
41%
40%
30%
30%

20% 20% 15%

10% 10%
10% 8%
0%
0% 0%
lk

0%
k

oe l

l
rg ra
l

a
bu

er
bu

ng n
ca ene

in

pi tio
d
y

ta
i
Dr

ip na
qu

on

Piasau Slipways Shipyard 1 Shipyard 2

sh ter
Li

(Miri)
In

Utilisation Rate 2022 (%) Utilisation Rate 2023 (%) Utilisation Rate 2022 (%) Utilisation Rate 2023 (%)
20 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

CHAIRMAN’S STATEMENT
(Cont’d)

CORPORATE DEVELOPMENT

The Group had acquired the entire equity interest in Piasau

Gas Sdn Bhd (“PGSB’) during the financial year. In September
2023, the Group had also completed an acquisition of
60% owned subsidiary, Mewah Exim Sdn Bhd (“Mewah
Exim”). With the anticipation of the corporate growth in the
business network and potential external customer base,
the Board believes that these acquisitions represent a good
opportunity to further strengthen the future earnings of the
Group. Further details of the acquisition are outlined in the
Management’s Discussion and Analysis on page 21.

CORPORATE SOCIAL RESPONSIBILITY

Further information can be found in our Sustainability Report
The Group has always been mindful of its Corporate Social from pages 26 to 57.
Responsibility (‘CSR”) and its care towards the community,
its shareholders and its employees. Our community activities PROSPECT
focus mainly on improving the living standard of local
communities and promoting education among the younger We continue to equip ourselves to build a greater resilience
generation especially in the maritime sector. in our business portfolio. Our strength on the balanced
consolidation of our business activities would continue to
In the area of promoting education, the Group has granted guide us to higher revenue earning and greater business
sponsorship for thirty five (35) students cumulatively for a achievements.
three year academic education in the Maritime Cadetship
programme for Diploma in Nautical Studies and Diploma The continuous infrastructure development which is
in Marine Engineering at the Sarawak Maritime Academy prioritised by the Sarawak State Government creates
School in Sarawak. Out of the total member of students numerous supporting spin-off shipping business activities
sponsored, some of the student graduates are now in our including the requirement for shipping and third party
employment on our ocean going vessels and our shipyards. logistics for the resource based projects.

In the shipbuilding sector, the emphasis is on taking

CORPORATE GOVERNANCE aggressive steps to build valued new vessels and to
strengthen our floating dock facility, which would enable us
The Group believes in the maintenance of the highest to carry out improved vessel maintenance works and also
standards of corporate governance practice within the group effectively carry out docking essential empowering works to
as a fundamental part of discharging our responsibility to meet the niche requirement markets.
safeguard and maximize shareholder values and to enhance
the continued business prosperity of the Group. The The challenge for the Group is to further improve its
steps implemented have been reported in the Corporate efficiency and productivity in the fleet efficiency, shipbuilding
Governance Overview Statement from pages 58 to 70. & ship repair activities and third party logistic activities. The
Group shall continue to work on achieving and realising its
potential through the full use of its resources. Barring any
SUSTAINABILITY unforeseen developments, the Board remains positive yet
cautious that the Group will continue to sustain their resilient
The Group has dedicated its time and effort to incorporate performances in FYE2024.
Economic, Environmental, Social and Governance (EESG)
best practices across the organisation. We are steadfast
in our commitment to good governance, transparency, APPRECIATIONS
high standards of occupational safety, health and welfare
of our workforce and fulfilment of our corporate social Together with my fellow Board members, we would like
responsibilities to the local communities. to extend our sincere gratitude and appreciation to our
employees, customers, business associates, and other
We are committed to minimising our environmental impact stakeholders for their continued support and confidence in
by implementing eco-friendly practices throughout our the Group.
operations. From improving fuel efficiency to practising the
4Rs (Reduce, Reuse, Recycle and Recovery), we actively
promote sustainable business culture to balance the needs Tan Sri Datuk Ling Chiong Ho
of People, Planet and Profit. Group Executive Chairman
 ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 21
(Formerly known as Shin Yang Shipping Corporation Berhad)

MANAGEMENT’S DISCUSSION AND ANALYSIS

The purpose of this review is to highlight and provide further details on the financial and operating information of the Group.

1. Overview of the Group’s Business and Operations:-

The Group’s core businesses are shipping, shipbuilding, ship repair as well as shipping and forwarding agency.
The shipping sector is further classified as dry bulk, liquid bulk, containers and coastal shipping, barges and tug,
international shipping and logistic segments of door-to-door services. Our shipping operations cover both Malaysian
and International waters; ranging from South East Asia, East Asia and the Far East regions. Currently, we are
supported by our own fleet of 199 vessels with Gross Tonnage (GT) of approximately 326,000 tonnages.

The ship repair sector is taking aggressive steps to move towards high quality repair works such as docking for
essential defect works with our floating dock facilities to meet the niche markets. Our shipbuilding facilities are
supported by three shipbuilding yards located in Kuala Baram, Miri and one in Bintulu, Sarawak with a total land area
of approximately 280 acres.

2. Corporate Development

Acquisition of 60% equity interest in Mewah Exim Sdn Bhd.

On 31 May 2023, the Company entered into a conditional Share Sale and Purchase Agreement to acquire 600,000
ordinary shares in Mewah Exim Sdn. Bhd (“Mewah Exim”), representing 60% equity interest in Mewah Exim.

The acquisition was completed on 15 September 2023. Mewah Exim is now the subsidiary of the Company. Mewah
Exim is culminated as a holding company with 3 subsidiaries namely Seatrade Agency Services Sdn Bhd, Mewahtrans
Logistic Sdn Bhd, Mewah Autoworks Sdn Bhd and an associate namely Mewah Logistik Sdn Bhd.

Mewah Exim is a well established shipping freight and forwarding agent in the Johor region. The acquisition would
increase the presence of the Group especially for transhipment cargoes from the international routes to Malaysia as
well as to enhance timely and reliable delivery services to the Group’s overall operations.

In addition, Mewah Exim is also able to provide an integrated total logistics solution and door to door delivery
service using a single entry point. The Board also believes that the acquisition would provide the Group with more
opportunities to build its presence in Peninsular Malaysia and participate through a wider network of office for a more
efficient management and coordination of transportation shipments and scheduling as a whole.

Signing of Share Sales and Purchase Agreement Periodic agency meeting

22 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

MANAGEMENT’S DISCUSSION AND ANALYSIS

(Cont’d)

3. Financial Results

The Group recorded a gross revenue of RM939.6million, representing of 5.2% increase from the previous financial
year ended 30 June 2022. The increase was due to the higher charter activities and utilisation rates from the shipping
segments as well as the improved sales volume and high demand for transportation and logistics services.

The Group achieved a net profit after tax of RM182.6million for the financial year ended 30 June 2023 (“FYE2023”),
an increase of 27.8% as compared to a net profit after tax of RM 142.8million for the financial year ended 30 June
2022 (“FYE2022”)

(i) Group Income Statement:

FYE 2023 FYE 2022

RM’million RM’million
Revenue 939.6 893.5
Gross Profit 208.4 190.6
Profit after tax 182.6 142.8
Profit per share:
Basic (sen) 15.83 12.24
Diluted (sen) 15.83 12.24

(ii) Group Cash Flow Statement:

FYE 2023 FYE 2022

RM’million RM’million
Cash flows from operating activities 272.2 218.1
Cash flows for investing activities (54.9) (21.4)
Cash flows for financing activities (191.7) (179.5)
Net increase in cash and cash equivalent 25.6 17.2
Cash and cash equivalent at beginning of financial year 76.3 59.1
Cash and cash equivalent at end of financial year 101.9 76.3
Fixed and treasury deposits with maturity more than 3 291.2 189.1
months and overdraft banks
Bank overdraft 5.8 17.8
Cash and cash equivalent at end of financial year 398.9 283.2
(inclusive fixed and treasure deposits with maturity
more than 3 months and exclusive of bank overdraft)

160m floating dock in empowering marine works

ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 23
(Formerly known as Shin Yang Shipping Corporation Berhad)

MANAGEMENT’S DISCUSSION AND ANALYSIS

(Cont’d)

(iii) Group Statement of Financial Position:

As at 30 June 2023 As at 30 June 2022

RM’000 RM’000
Non-current assets 938,679 964,111
Current Assets 621,530 524,102
Non- Current assets held for sale 11,185 -
Total Assets 1,571,394 1,488,213

Total equity fund 1,225,487 1,066,902

Current liabilities 258,282 327,855

Non-current liabilities 87,625 93,456
Total liabilities 345,907 421,311
Total equity and liabilities 1,571,394 1,488,213

(iv) Dividend

In respect of FYE2023, the Board proposes payment of a final single-tier dividend of 3.00 sen per share. This
gives a dividend yield of 4.96% based on the Company’s closing share price of RM0.605 as at 30 June 2023.
The proposed final single-tier dividend is subject to the Company’s shareholders’ approval at the upcoming
18th Annual General Meeting. Our goal remains to deliver a long-term sustainable dividend upward trend to
reward our supportive shareholders.

4. Review of Operation:

(i) Shipping Operation

a) Dry Bulk

The Group’s vessels transport dry bulk such as timber products, quarry, aggregate, sands, equipment
& machinery and many more plying Miri, Bintulu, Sibu, Kuching, Kota Kinabalu, Sandakan, Port Klang,
Brunei, Singapore, Thailand and Indonesia on a regular basis.

The Group has sufficient vessels for voyage and time charters to sustain the demands of both international
and domestic charterers. Our current major charterers are from oil and gas, timber downstream, oil palm
industries and other resource based industries The Group is actively participating in sand extraction and
reclamation of land with its fleet of tugs and barges and managing total logistic service providers.

b) Liquid Bulk

The demand for liquid shipment for East Asia regions is stable and seasonal with freight rates ranging
from USD26 to USD60 per metric ton.

The Group has signed an on-going five year contract of affreightment with Petronas Chemical Marketing
(Labuan) LTD. to ship methanol products from Labuan via vessel with parcel size below 1,500MT.
24 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

MANAGEMENT’S DISCUSSION AND ANALYSIS

(Cont’d)

c) Containers and coastal

The Group is expected to improve its container shipping service by establishing strategic alliance with
business partners to provide efficient and effective port services while the partners aim to achieve
economies of scale to increase shipping service frequency routes from our existing sixteen (16) units of
container vessels.

The Group has two (2) units of container vessels with carrying capacities of 800-1,000 TEU per trip plying
between Sarawak and Singapore to strengthen the container shipping activities. The other container
vessels serve ports between Peninsular Malaysia, Sarawak and Sabah. The Group has converted two (2)
tug-and-barges to transport containers for shorter routes to ensure that there is no shortage of shipping
spaces. The Group has leased out two container vessels for container shipment between China, Vietnam
and Philippine.

Daily Depot’s container handling

d) International Shipping

Our five (5) double decker cargo vessels consistently ply routes to the far east regions and have shipped
0.467 million cubic meters of cargo with freight rates of USD42 – USD 54 per cubic meter. For the returning
inbound routes, they were mainly on time charter for shipments of general cargo from far east regions to
the Philippines and other Asean countries, enroute to home region.

With the foreseen stable demand toward the international shipping due to supply uncertainty in term of
freight rates and utilisation, our emphasis is on time charter of vessels for international shipping.

(ii) Shipbuilding Operation

There are signs of recovery in shipbuilding due to capital expenditures by the oil and gas industry players.
During the year, we have constructed and delivered one (1) vessel. Our current book order stands at RM 175.7
million with five (5) new build contracts secured.

(iii) Ship Repair and fabrication

The ship repair sector satisfactorily repaired a total of 585 units (FYE 2022: 518) of vessels including minor
and major repairs. Our 160 meter length and 80 meter length floating docks enable us to effectively carry out
improved vessel repair and maintenance works. Our current book order stands at RM 89.3 million with seven
(7) major ship repair contracts secured.
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 25
(Formerly known as Shin Yang Shipping Corporation Berhad)

MANAGEMENT’S DISCUSSION AND ANALYSIS

(Cont’d)

Docking of own container vessel at own shipyard

5. Outlook and Prospects:

The performance of the Group is largely dependent on the volatility of the world’s fuel market price, the standard
of skills and experience of ship crews, domestic and regional demand for transportation of dry bulk and general
cargoes, movement of the Malaysian Ringgit and the world economic situation, all of which may significantly disrupt
business operations.

The prospects for the shipping industry continue to remain challenging, with the recent hike in crude oil price and
increase in the Baltic Dry Index. The Group is prepared to weather this challenge with the selective market driven
routes based on fleet load utilization. The Group is confident in the stability of the domestic, coastal and container
shipping operations given the stable container volume. The Group is actively strengthening the business in terms
of operational and cost efficiency, fleet efficiency and routes enhancement to ensure the readiness to capture
opportunities as when they arise.

Other factors contributing to the prospects of the shipbuilding and ship repair operations include the price movements
of marine mild steel plates, other heavy equipment and machinery and the global trend of demand for newly
constructed vessels especially from the niche market segments in the oil and gas industry. In order to improve the
performance and manage the operating expenditures, the Group is taking initiatives such as focusing on improving
the ship repair operations to meet the requirements of the niche market segments in the oil and gas industry which
has showed signs of higher utilisation rate of offshore supply vessels and also to satisfy the requirements of other
potential markets from the resource-based sectors.

With the ever growing popularity of online purchases, the Group recognises a higher demand for logistic and haulage
services and hence has viewed the potential in container depots, haulage services including trucking and warehouse
services as another opportunity for the Group.

The Group remains prudent to further improve its efficiency and productivity in both the fleets efficiency and
shipbuilding activities and cost control, coupled with the expected sustainable fleet utilisation, the performance of
the Group is anticipated to be satisfactory and is expected to only improve as the Group progresses through the
years.
26 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT

About this Sustainability Report

The Board of Directors (“BOD”) of Shin Yang Group Berhad (“SYGROUP”) is pleased to present the Sustainability Report for
the year 2023.

The Group Sustainability Report emphasises on the corporate commitment to a balanced integration of economic,
environmental, social and governance factors into its business practices to ensure long term success for a sustainable future.

This Report forms an integral part of the Group’s Annual Report for the year 2023, which would then jointly provide a more
comprehensive description of the Group from the economics, environmental, social and governance perspectives.

Scope of the Report

SCOPE OF REPORT
REPORTING PERIOD 1st July 2022 to 30th June 2023, unless otherwise specified
DATE OF RECENT REPORT This is the 5th Sustainability Report
REPORTING CYCLE Annually
COVERAGE This Sustainability Report 2023 covers the entire operational and
management activities in Malaysia of Shin Yang Group Berhad Group of
Companies (“Group”), which comprises the parent company and her
subsidiary companies.
REPORTING FRAMEWORK • Bursa Malaysia Sustainability Reporting Guide (3rd Edition)
• United Nations Sustainable Development Goals (“UNSDGs”).
DISTRIBUTION OF AND FEEDBACK ON This report is available to all stakeholders in hard copy upon request.
THE REPORT For further information and comments, please contact:-
Shin Yang Group Berhad
Contact Person: Richard Ling
Telephone: +6 085 428 399
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 27
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

Data Validation

Details presented in this Report has been sourced internally and validated by the respective business entities or information
owners. The Group continually improves data collection and analysis to provide further comprehensive and transparent
perspective of its sustainability performance.

With a continuous commitment from the Board of Directors and active participation of all our stakeholders, we will work hard
to ensure that the notion of sustainability becomes embedded within our working culture in a more prominent manner.

First Steel Cutting Ceremony for YD466

Docking of chemical tanker at own shipyard

28 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

CHIEF EXECUTIVE OFFICER’S STATEMENT TO STAKEHOLDERS

Dear stakeholders,

We are pleased to present our Sustainability Report for the financial year ended 30 June 2023 which is prepared in accordance
with the Bursa Malaysia Sustainability Reporting Guide and the United Nations Sustainable Development Goals (“UNSDGs”).

This Report outlines our framework to drive sustainable strategies and practices in addressing material sustainability
challenges and opportunities along our journey towards sustainable long-term growth within the context of Economic,
Environment, Social and Governance (“EESG”).

The Group strive to ensure that our business strategies and daily operations incorporate the EESG agenda. The Group is
committed to promote sustainability and believes that propelling our business operations towards sustainability enables us
to balance our business opportunities and the sustainable risk that we face globally today.

The Group’s sustainability commitment encompasses our shareholders as well as our community and we are fully committed
to our approach to environmental, social and economic responsibility. The Group seeks to engage with our employees and
stakeholders in our effort to build a more sustainable world through consistent mutual support and comprehensive dedication
from all the stakeholders.

The Group has established and embedded policies and procedures in its operations to guide our employees and seafarers
to discharge their roles and responsibilities in an ethical manner. The Group’s existing policies includes Environmental Policy,
Safety & Health Policy, Smoking Policy, Waste Management Policy, Whistleblowing Policy, Anti-Bribery and Anti-Corruption
Policy and Director Fit & Proper Policy.

Thereupon, the Group has made progress towards transparency and traceability and is determined to achieve higher
sustainability milestones.

The Group is mindful that the environment is a sensitive aspect within the group operation and the Group is committed to
operate in compliance with environmental regulations and to minimise adverse impact on the environment. The Group is
committed to safeguarding the environment by optimizing water and energy consumption, efficient management of waste
and reducing greenhouse gases emissions. Ashore and at sea, the Group complies with the mandatory ISM code, MARPOL
regulation and other relevant regulations that prescribe system controls, procedural safeguards and training to prevent and
respond to oil spillage and oil/water discharge.

The Group remains committed to nurturing future leaders for the industry and providing equitable opportunities to young
people. We have sponsored 36 students through the Sarawak Maritime Academy School cadet’s sponsorship programme.

Moving forward, the Group will continue to strive for improvement in the Group business strategy with embedding EESG
and sustainability considerations. With continuous exposure to various challenges, the Group’s strategic integration of
sustainability and transparency into our business operations enhanced our agility in responding to unexpected events. The
Group always encourages feedbacks from all stakeholders while continuing its sustainability journey as part of the Group’s
growth.

On behalf of the Group, I would like to extend my sincere appreciation to our stakeholders for their true spirit of collaboration
and engagement which has enabled the Group to effectively contribute to sustainable earnings and in meeting the
stakeholder’s expectations.
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 29
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

1. SUSTAINABILITY GOVERNANCE

1.1 Sustainability governance structure

The Board of Directors continues to determine, monitor and manage the economic, environmental and social
factors that are material to the Group. The Board approves the overall strategic direction and oversees the
standards, management processes and strategies for all fundamental initiatives.

The Key Senior Management personnel led by Group Executive Chairman and comprises the Key Senior
Management personnel formulate strategies and set procedures for implementation. The Key Senior
Management personnel also deliberate on the current sustainability challenges and manages the Group’s
sustainability performance and reporting.

The Head of Departments implements the established sustainability procedures which are embedded into the
Group’s operational activities. The Head of Departments also helps to raise awareness among the employees
and encourage improved performance to ensure that sustainability standards are consistently upheld across
the Group.

BOARD OF DIRECTORS
(Oversight Role)

- Approve of sustainability policies

- Oversee the Group’s sustainability performance
- Approve Sustainability Report

KEY SENIOR MANAGEMENT

- Formulating sustainability strategies, goals and implementation

procedures and practices
- Deliberate sustainability issues
- Group’s sustainability performance

HEAD OF DEPARTMENTS

- Maintaining sustainability performance across the Group

- Stakeholders engagement
- Rising awareness among employees
- Assisting management to ensure that sustainability standards
are consistent across the Group
30 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

1. SUSTAINABILITY GOVERNANCE (CONTINUED)

1.2 Sustainability Commitments and Sustainable Development Goals

In 2015, the United Nations (“UN”) General Assembly has set up the Sustainable Development Goals (“SDGs”)
which comprise of a set of 17 goals as per below with the respective targets to be achieved by the year
2030. These SDGs establish a clear pathway and framework to help businesses work towards creating a more
positive future. In our sustainability drive, we have also aligned our sustainability strategy and framework with
the following SDGs, which are most relevant to its operations.

Container handling at Port designation area

1. SUSTAINABILITY GOVERNANCE (CONTINUED)

1.2 Sustainability Commitments and Sustainable Development Goals (continued)

SDGs
Pillar Material Matter Why is it material Our Response Progress in 2023 contribution
Economic • Business Achieve sustainable business i) Incorporate and promote i) The Group has established
Performance growth to maintain long term ESG across all business policies, procedures and
shareholder value activities relevant code of conduct
ii) Expanding our market to guide all business
presence through activities towards achieving
acquisitions, joint-ventures economic resilience with
and organic growth integrity
ii) Acquisition of subsidiaries
engaged in shipping freight
and forwarding agent
industry to strengthen
its existing business
operations
• Product safety To deliver quality products and i) Improving the quality, i) The Group has invested in
and quality services to meet customers’ reliability and efficiency of equipment necessary to
satisfaction products and services improve the safety features
of our shipyard
ii) Compliance with globally
ANNUAL REPORT 2023

recognised standards,
namely the ISO 9001:2015
Quality Management
System
ii) Compliance with the
mandatory ISM code,
MARPOL regulation and
other relevant regulations.
Environmental • 4Rs of To ensure sustainable i) To promote the continual i) The 4Rs Practice -Reduce,
sustainability consumption by promoting use of resources Reuse, Recycle and
• Effluent and circular economy ii) Efficient utilisation and Recover (Waste-to-Value
waste To mitigate the depletion of upkeep of motor vehicles concept)
• Energy natural resource and reduce and vessels ii) Acquisition of new vehicles
• Carbon greenhouse gases emissions iii) To reduce energy to replace the existing
footprint consumption and emission disposed fleet.
• Environmental iv) Complying with iii) Usage of low sulphur fuel
compliance environmental protection oil to reduce emissions
regulations iv) All of the Group’s ships
engaged in international
trade carry a ballast
water record book and an
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD

International Ballast Water

(Cont’d)
SUSTAINABILITY REPORT

Management Certificate.
31
 32
1. SUSTAINABILITY GOVERNANCE (CONTINUED)

1.2 Sustainability Commitments and Sustainable Development Goals (continued)

(Cont’d)
SDGs
Pillar Material Matter Why is it material Our Response Progress in 2023 contribution
Social • Occupational, To create a conductive workplace i) work without exposure to i) Conduct internal and
Safety and and nourishing community the risk of accidents or external training to increase
Health occupational disease safety awareness to
SHIN YANG GROUP BERHAD

achieve minimal injuries

and zero fatalities.

• Training and Future-proof talent and building a i) To provide employment i) Spent a total of RM
SUSTAINABILITY REPORT

education sustainable and robust leadership with development and 173,429.95 on training for
at all level of decision making talent retention career development of our
(Formerly known as Shin Yang Shipping Corporation Berhad)

employees

• Diversity and Attract, develop and retain high- i) Adheres to the principles i) To provide equal
equality performance employees and of fairness, equality and employment and career
crews, creating an inclusive and diversified employment. growth opportunities for all
diverse culture irrespective of gender, age,
race and religion

• Community Crucial to support the local i) Improving the living i) Provided sponsorship of
engagement community for long term mutual standard of local thirty-six (36) students
sustainable growth communities and cumulatively for a three-
promoting education year academic education
among the younger in Maritime Cadetship
generation especially in the programme for Diploma
maritime sector in Nautical Studies
and Diploma in Marine
Engineering at the Sarawak
Maritime Academy School
in Sarawak.
ANNUAL REPORT 2023
1. SUSTAINABILITY GOVERNANCE (CONTINUED)

1.2 Sustainability Commitments and Sustainable Development Goals (continued)

SDGs
Pillar Material Matter Why is it material Our Response Progress in 2023 contribution
Governance • Sustainability Uphold high standard of ethics and i) To maintain good corporate i) Embeded the best
policy conduct business with integrity is governance to establish corporate governance
• Governance fundamental for business success investor confident and practices with in line
and ethic sharpening shareholder with all applicable laws,
value. regulations, compliance
acts and code of corporate
governance practices
ii) Engaged independent
adviser to perform
Corporate Governance
heath check on the Group.
Scope of engagement
covers:-
a) Awareness briefing
on corporate
governance, risk
management &
internal audit,
ANNUAL REPORT 2023

sustainability
reporting and
Malaysian Anti-
Corruption
Commission
b) To review and
validate the corporate
governance
disclosure and
ensure compliance
with relevant listing
requirement and
guides of Bursa
Malaysia.
c) To report the
findings and action
plans to Audit and
Risk Management
Committee
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD

(Cont’d)
SUSTAINABILITY REPORT
33
34 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

1. SUSTAINABILITY GOVERNANCE (CONTINUED)

1.3 Sustainability Certificates

LAW /ACT DESCRIPTION OF COMPLIANCE CERTIFICATES

THE ACT STATUS
International Adopt universal tonnage Complied • International Tonnage Certificate
Convention on measurement system to ensure (1969)
Tonnage Measurement that ships were given reasonable
of Ships, 1969 economic safeguards, since
port and other dues are charged
according to ship tonnage.
International Marine treaty which sets the Complied • Cargo Ship Safety Equipment
Convention for the minimum safety standards in Certificate
Safety of Life at Sea, the construction, equipment and • Cargo Ship Safety Construction
1974 (SOLAS) operation of merchant ships Certificate
• Cargo Ship Safety Radio Certificate
• Document of Compliance Special
Requirements for Ship Carrying
Dangerous Goods
• Safe Manning Document
• Safety Management Certificate
International Uniform principles and rules with Complied • International Load Line Certificate
Convention on Load respect to the limits in which
Lines, 1966 ships on international voyages
may be loaded having regard to
the need for safeguarding life
and property at sea
International International convention covering Complied • International Oil Pollution Prevention
Convention for the prevention of pollution of the Certificate
Prevention of Pollution marine environment by ships • International Air Pollution Prevention
from Ships, 1973 from operational or accidental Certificate
/1978 (MARPOL) causes • International Sewage Pollution
Prevention Certificate
• International Energy Efficiency
Certificate
• Statement of Compliance – Fuel
oil Consumption Reporting and
Operational Carbon Intensity Rating
• Confirmation of Compliance – Ship
Energy Efficiency Management Plan
(SEEMP) Part III
• Report of Preliminary Verification of
Energy Efficiency Existing Ship Index
(EEXI)
International Code for A set of measures to enhance Complied • International Ship Security Certificate
the Security of Ships the security of ships and port
and of Port Facilities facilities
(ISPS Code)
Maritime Labour Provides a broad perspective Complied • Maritime Labour Certificate
Convention, 2006 to the seafarer’s rights and
fortification at work
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 35
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

1. SUSTAINABILITY GOVERNANCE (CONTINUED)

1.3 Sustainability Certificates (continued)

LAW /ACT DESCRIPTION OF COMPLIANCE CERTIFICATES

THE ACT STATUS
International Prohibits the use of harmful Complied • International Anti-Fouling System
Convention on the organotin compounds in anti- Certificate
Control of Harmful fouling paints used on ships
Anti-Fouling Systems and establishes a mechanism to
on Ships prevent the potential future use
of other harmful substances in
anti-fouling systems
International Treaty adopted by the Complied • International Ballast Water
Convention for International Maritime Management Certificate
the Control and Organization (IMO) in order
Management of Ships to help prevent the spread of
Ballast Water and potentially harmful aquatic
Sediments organisms and pathogens in
ships’ ballast water.
International Sets qualification standards Complied • All crew certificates
Convention on for masters, officers and watch
Standards of Training personnel on seagoing merchant
Certification and ships
Watchkeeping for
Seafarers 1978
(STCW)
Prosedur ISO Specific integrated management Complied • ISO 9001:2015
procedure

2. STAKEHOLDERS ENGAGEMENT

The Group recognises that stakeholders engagement and their feedback are an integral part of its sustainability
strategy and initiatives. The Group believe that through active engagement with the stakeholders, the Group would
be able to stay updated with the issues and concerns of the stakeholders.

The stakeholders engagement process involves both formal and informal approaches. The following provides an
overview of the efforts involved in the Group’s focus on stakeholders’ engagement.

Employees

Communities Customers

Shareholders
Suppliers
/ Investors

Government
and regulators
36 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

2. STAKEHOLDERS ENGAGEMENT (CONTINUED)

Modes of
Stakeholder Group Frequency Key areas of interest Material matters Outcomes
engagement
Employees • Scheduled • On-going • Company direction • Economic • Improves
Meeting/ • Ad-hoc and strategy sustainability employees’
Discussion • Ad-hoc • Health and Safety • Occupational understanding
• Electronic • Ad-hoc Career Health and on sustainability
communication • Annually • development and Safety policies &
• Events and Training • Training and practices, vision
functions • Talent acquisition Development and direction,
• In-house and and retention culture & values
external training • Diversity and of the Group
• Performance inclusivity • Enhance
Review employees’
competency

Customers • Meeting/ • On-going • Product/service • Market place • To better meet

Discussion • Annually quality, pricing and • Product safety customers’
• Agency Meeting • On-going delivery and quality satisfaction
• Customer • On-going • Business • To better
Feedback • Ad-hoc sustainability for understand
via Company total business customers’
website & email solutions requirements.
• Press release
/Announcement
• Customer
visitation
Suppliers/ • Business review • Annually • Procurement • Economic • To achieve
Business partners Vendor • Ad-hoc practice sustainability transparent
• registration and • On-going • Anti corruption • Corporate procurement
credit review • On-going practice governance process and
• Meeting/ • Supply chain and ethics strengthen
Discussion management supply chain.
• Contract bidding with total supply • To achieve
and tendering solution & constant supply
requirement and delivery of
products

Government and • Official visits & • Ad-hoc • Compliance • Economic • Continuous

Regulators dialogue • Ad-hoc of regulatory Sustainability compliance with
• Events and • Ad-hoc/ requirements • Environmental the relevant
seminars Annually • Alignment in management laws, rules and
• Regular • Monthly sustainability • Corporate regulations
reporting & initiatives Governance
• Scheduled quarterly and Ethics
Meeting
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 37
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

2. STAKEHOLDERS ENGAGEMENT (CONTINUED)

Modes of
Stakeholder Group Frequency Key areas of interest Material matters Outcomes
engagement
Shareholders / • Annual General • Annually • Company • Economic • Better
Investors & Banks Meeting • Annually/ performance sustainability understanding
• Annual report quarterly • Profitability/Growth of the Group’s
and quarterly • On-going • Business sustainability
announcements • Ad-hoc performance and progress
of financial • Ad-hoc prospects
results • Career talk with
• Company local college
website university
• Site visits
• Briefing and
visiting
• Investor relation
Communities • Internship • Ad-hoc • Job opportunities • Communities • Create
opportunities • Ad-hoc • Communities’ Engagement awareness
for students and engagement on working
study tours • Corporate Social life, career
• Official launches Responsibility development
and corporate • Better
events understanding
of the Group as
a responsible
corporate citizen
amongst local
communities at
large

Given the swiftly changing business environment and the repetitively shifting of the stakeholders’ expectations, the Group will
continuously work to meet the stakeholders’ expectations by widening the scope towards a broader group of stakeholders.

Piasau Shipways’ own yards

38 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

3. MATERIALITY

In year 2023, a materiality analysis exercise was conducted by taking into consideration the view and responses
from all the Group’s stakeholders on significant environmental, economic and social aspects, impacts, risks and
opportunities which are crucial for the success and continued growth of the Group.

Thirteen (13) key material matters were identified as being of high concern to the stakeholders and of high significance
for the Group.
1 Business Performance
The Group Materiality Matrix Product Safety
2
and Quality
High
3 4Rs of Sustainability

2 4
assessments and decisions

4 5 Energy
6 1
6 Environmental Compliance
3
9 7 7
Occupational safety
5 and Health
8 8 Training and Education
10 9 Diversity and Equality

12 13 10 Community Engagement
11
11 Governance and Ethics
High
12 Carbon Footprint
High High
sustainabilit impacts 13 Sustainability Policy

Thirteen (13) key material matters are categorised into four (4) main pillars, as follows:-

Economic Social
Pillar Pillar

Environmental Governance
Pillar Pillar
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 39
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

3. MATERIALITY (CONTINUED)

ECONOMIC PILLAR

• Business Performance To achieve long term shareholder value

• Product Safety and Quality

ENVIRONMENTAL PILLAR

• 4Rs of Sustainability
• Effluents and Waste To ensure a positive impact on environment
• Energy and natural resources
• Carbon Footprint
• Environmental Compliance

SOCIAL PILLAR

• Occupational, Safety and Health

• Training and Education To ensure a positive impact on community it
• Diversity and Equality operates in the communities
• Community Engagement

GOVERNANCE PILLAR

To establish investor confident and improve

• Sustainability Policy shareholder value
• Governance and Ethics
40 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

4. SUSTAINABILITY PILLAR: ECONOMIC

4.1 Business Performance

Economic sustainability is the ability of the Group to continue operating at an effective and sustainable
economic level over a longer term. The Group is committed in increasing sustainable and responsible
corporate performance, creating the conditions for development that ensures the needs and expectations of all
stakeholders are met

We are delighted to announce that we have achieved a financial improvement with a 5.2% revenue growth
in FYE 2023 as compared to FYE 2022.The table below shows the growth of the Group’s overall financial
performance in comparison to the last financial year:-

FYE 30 June 2023 FYE 30 June 2022

Revenue (RM’000) 939,604 893,458
Profit before tax (RM’000) 180,260 151,108
Earnings per share (sen) 15.83 12.24

For further information, please refer to the Management Discussion and Analysis section of this Annual Report.

The Board continues to support the management through sourcing for business opportunities to ensure
business continuity. During the year, the Group has acquired:-

a) A wholly owned subsidiary, Piasau Gas Sdn Bhd (“PGSB”) which is engaged in the business of
manufacturing, distribution and marketing of industrial gases, provision of services and maintenance
and trading in welding equipment and machinery. PGSB is currently in the midst of obtaining the ISO
certificate in trading of medical gas which allows the company to further propel in the Liquid Nitrogen
market and in the medical manufacturing and pharmaceutical industries.

The acquisition is expected to strengthen and complement the shipbuilding activities of the Group.

4.1.1 Indirect Economic impact

The Group has provided employment opportunities for those from local communities, local universities
and educational institutions. The priority placed on local hiring has helped boost the economic value and
livelihood of these communities.

Furthermore, the Group supports local suppliers through purchasing mostly from local suppliers. This
contributes to the economic wellbeing and inward cash flow of local industries.

4.1.2 Procurement practices

Project sub-contractors are selected via tender and selection process. The Group has in place formalised
standard operating procedures for tender processes, priorities for local business wherever appropriate
etc., satisfactory quality of goods and services and competitive prices. A tender committee was set
up to govern the evaluation and selection of sub-contractors, incorporating a combination of technical,
financial and pricing criteria.

4.1.3 Anti – Corruption

The Group’s Code of Conduct contains detailed procedures on dealing with improper solicitation, bribery
and corruption. The consequences of breaching the Code of Conduct are clearly set out and subject to
the requirements of applicable laws, and action will be taken against any employee for non-compliance.
The Group has also adopted a Whistle-Blowing Policy with the aim of providing a structured mechanism
for employees and other stakeholders to raise genuine and legitimate concerns on any suspected
wrongful activities or wrongdoings. The Whistle-Blowing Policy is implemented to emphasize the Group’s
commitment to the highest standards of quality, honesty, openness and accountability in ensuring that
discrepancies are reported and dealt with promptly to ensure ethical business practices, and to protect
the employees.
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 41
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

4. SUSTAINABILITY PILLAR: ECONOMIC (CONTINUED)

4.2 Product safety and quality

Over the years, we have invested in equipment necessary to improve the safety features of our shipyard. We
have also upgraded our communication systems and technology to increase our capacity and efficiency. These
investments have enabled us to provide better service to our customers and to better meet the needs of our
other stakeholders now and in the future. We are pleased to state that our business processes continue to
comply with globally recognised standards, namely the ISO 9001:2015 Quality Management System, which
stands as a testament to our commitment to quality.

We also pleased to notable the improved product innovation and quality as follow:-

a) Fleet enhancement plans with the conversion of 2 units of crude palm oil barges to commercial container
vessel with capacity of 350 Tues loading factor;
b) Construction of new category of shipbuilding vessel of a 42-meter fast crew boat in provision of Offshore
Support Vessel (OSV) for Petroleum Arrangement Contractors (PACS) operations; and
c) Construction of high value quality vessels of 1 unit of shallow water Diesel Electrical Anchor Handling
Tug and Supply Vessel, complying to ABS’S ENVIRO notation and 2 units of DP2 Diesel Electrical Anchor
Handling Tug and Supply Vessel, complying not only to ENVIRO notation as well as SMART notation for
(INF, SHM(Tier 1), MHM(Tier 1)), which continuously collect, transmit, manage, analyze and report data for
enhance health and condition awareness, operational assistance, operational optimisation and decision-
making support.

5. SUSTAINABILITY PILLAR: ENVIRONMENTAL

The Group is aware of its industry’s impact on the environment which includes generating of industrial wastes, water
and air pollution and depletion of natural resource, such as energy and water.

In raising awareness on the key environmental issues, the Group is committed in operating in a manner that does
not compromise on the health of ecosystems in which it operates in the long term. The Group continuously improves
on its resource management and environmental management to ensure that natural resources are conserved for the
next generation.

5.1 4Rs of sustainability

The Group is committed to the 4Rs principles (Reduce, Reuse, Recycle and Recover) to reduce wastage.

For onshore office, all staff has been instilled with the culture of computer data storage whenever possible to
reduce paper consumption.

The shipbuilding and ship repairing operations such as welding and cutting generate solid wastes, especially
scrap metal. Such scraps, which have economic value are recycled and reused for other sub projects and to
rebuild aged vessels for example our conversion vessel of CPO barge to commercial container vessel. This
helps to increase our resource efficiency for materials consumption.

Waste management plans are implemented on all of our vessels. Waste separation is carried out on board
and recyclable items such as plastic, paper and glass are sent to shore recycling facilities. Other types of
waste are collected for treatment, recovery or disposal at shore, while waste which are permitted for on-board
incineration are disposed of in the shipboard incinerator. The only waste that is allowed to be disposed at sea
is food waste, without packaging or container. This disposal is carried out in compliance with MARPOL (The
International Convention for Prevention of Marine Pollution For Ships).
42 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

5. SUSTAINABILITY PILLAR : ENVIRONMENTAL (CONTINUED)

5.2 Effluent and waste

Waste management and pollution implemented on-board vessels are governed by the International Convention
For The Prevention of Pollution from Ships 1973/1978 (“MARPOL”) with the objective of minimising pollution of
the oceans and seas, including dumping, oil and air pollution.

We take pro-active initiatives in the management of our environment including emission mitigation. The Group
embarked on IMO’s Data Collection System (DCS) that is developed in the context of reduction of greenhouse
gases (GHG)/carbon dioxide emissions and with the target of measuring and potentially reducing the CO2
emissions in the maritime industry.

Preventive actions are identified and controls are established to prevent any pollution and environmental
hazards. All garbage accumulated is compressed to its possible minimum size prior to disposal to shore
facilities.

All of our ships engaged in international trade carry a ballast water record book and an International Ballast
Water Management Certificate. The Group manage the ballast water and sediments, according to a ship-
specific ballast water management plan to avoid the introduction of alien species into coastal areas, including
exchanging the ballast water or treating it using an approved ballast water management system.

We have Zero incidents of significant oil spills in 2023 and have maintained a 100% vessel-compliance rate for
oil spill regulations. We aim to maintain this target and outcome in 2024.

Waste
Shipping Operations Unit 2023
Ship oil sludge m3 2,021
Ship garbage
Ship garbage disposed to reception facility m3 963
Ship garbage discharged to sea - Category B m3 730

5.3 Energy

5.3.1 Water & Electricity

Measures have been taken to reduce energy consumption and conserve water.

The Group encourages to switch off any equipment or lights that are not in use for energy conservation.

The Group embraces water saving behaviour, such as collecting rainwater for cleaning our prime movers,
cranes and shovels.

In FYE2023, the Group’s water & electricity consumption increased by 12.6%, RM5.507million (FYE2022:
RM4.893million).

Water Consumption Unit 2023

Water Consumption (from vessels’ freshwater generator) m3 2,021
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 43
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

5. SUSTAINABILITY PILLAR : ENVIRONMENTAL (CONTINUED)

5.3 Energy (continued)

5.3.2 Fuel management

Fuel is our prime resource. The Group continuously monitors and controls its fuel consumption to ensure
optimal use on its operations.

IMO 2020 mandates a maximum sulphur content of 0.5% in marine fuels globally. As of last quarter of
2019, the Group has complied with the new emission standards of instituted low sulphur Fuel Oil with a
sulphur content of 0.5% or less instead of using the cheaper high sulphur HFO. In Emission control areas
(ECAs), the Group has complied to use the 0.1% sulphur content fuel oil to minimize airborne emissions
from ships. This subsequently reduces the air pollution created in the shipping industry by reducing the
sulphur content of the fuels that ships use. The fuel consumption of the Group is as follows:-

2023 2022
Fuel consumption (MT) LSFO MDO/MGO LSFO MDO/MGO
19,135.35 27,125.76 19,377.41 29,173.87

5.4 Carbon footprint initiatives

Climate change poses a significant threat to the environment, societies and the economy. The Group recognises
the importance of quantifying carbon footprint or greenhouse gases emissions.

Total energy consumption is illustrated as below:-

Description FYE 2023 FYE 2022

Petrol consumption (litre) 22,541,439 22,826,590
Diesel consumption (litre) 31,954,144 34,366,820
Purchase Electricity consumption (kwh) 21,572,991 18,563,838

The Group disclose these measurements as part of our Scope 1 and Scope 2 as below:-

Description FYE 2023 FYE 2022

Scope 1 (tCO2e) ¹ 139,674.0 146,928.9
Scope 2 (tCO2e) ² 16,826.9 14,479.8
Total (tCO2e) 156,500.9 161,408.7
Carbon emission intensity
0.17 0.18
(total carbon emission over revenue in RM’000)

Note:
Scope 1 emissions are defined as emissions based on petrol and diesel claimed

Scope 2 emissions are based on quantity consumed according to electricity bill

¹ The Scope 1 emissions were calculated by multiplying the fuel consumption (in litre) by the Malaysian Green
Technology and Climate Change Corporation (MGTC) emission factor.

² The Scope 2 emissions were calculated by multiplying the electricity consumption (in kWh) by the Malaysian
Green Technology and Climate Change Corporation (MGTC) emission factor.
Source: https://www.mgtc.gov.my/lcos-sme-calculator/
44 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

5. SUSTAINABILITY PILLAR : ENVIRONMENTAL (CONTINUED)

5.5 Environmental Compliance

The Group endeavours to comply with all applicable laws, regulations and statutory obligations relating to
environmental issues.

The Group has complied with all the relevant Laws and Standards including the following:-

• Employment Act 1955

• Minimun Wages Order 2022
• Personal Data Protection Act 2010
Labour • Workmen Compensation Act 1952
• Employees’ Social Security Act 1969
• Employees Provident Fund Act 1991
• Income Tax Act 1967

Safety, • Occupational Safety & Health Act, 1994

Health and • Fire Service Act, 1988
Environment • Environmental Quality Act, 1974

• International Safety Management Code (“ISM Code”)

• Ship Management System (“SMS”)
• Marine Transport Regulations Act
Marine
• CLASS marine
• Maritime Labour Convention, 2006
• Custom Act 1967

• Road Transport Act 1987 (“RTA 1987)

• Weight and Measures Act 1972
Transportation
• Weight Restriction Order (Federal Road)
• Commercial Vehicles Licensing Board Act 1987

Our vessel environmental certificates are kept up to date. Some of these certifications include the International
Energy Efficiency Certificate, International Sewage Pollution Prevention Certificate, International Oil Pollution
Prevention Certificate, International Air Pollution Prevention Certificate and Ballast Water Management
Certificate.

In alignment with the amendments to MARPOL Annex VI of the IMO, we are also obtaining the Energy Efficiency
Existing Ship Index (EEXI) value and Operational Carbon Intensity Indicator (CII) certification of all existing
vessels. The EEXI value is to measure the energy efficiency of vessels and initiating the collection of data for the
reporting of the annual operational carbon intensity indicator (CII) and CII rating. We have installed overridable
power limitation (OPL) system to our existing vessels to reduce carbon emissions by restricting the maximum
power and thus reducing fuel consumption.

Compliance No of vessels eligible to comply No of vessels complied

EEXI 13 13
CII 13 13
OPL system 9 9
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 45
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

6. SUSTAINABILITY PILLAR: SOCIAL

6.1 Occupational Health & Safety

Safety at work is a vital condition for the performance of work without exposure to the risk of accidents or
occupational disease. Historically the Group has dedicated significant effort to the protection of health and
safety; over the years it has promoted a profound change in safety culture, as a first step towards further
development. The key element is personnel training as a tool for risk prevention.

The Group is committed to constantly develope an active role in the field of occupational health and safety
through the following actions:

• Always acting in full compliance with mandatory laws and reference standards;
• Managing the hazards and risks identified in relation to activities and duties, constantly updating
knowledge and keeping abreast on the subject in order to prevent accidents and injuries;
• Periodically reviewing the Health & Safety Policy and targets;
• Raising the skills and awareness of all personnel involved in its activities by means of adequate information
and training, with the belief that more knowledge brings better safety and ensures the cultural change
necessary to improve results;
• Cooperating with stakeholders on policy making and continuous improvement, so as to build a grounded
structure between the Company’s top management and all employees.

All of our vessels are certified under the Maritime Labour Convention (“MLC”) and are crew accommodation
certified, which strives to provide favourable labour conditions for maritime crew in compliance with all MLC
requirements. The requirements include minimum age limits, adequate hours of rest, accommodation and on-
board facilities, food and catering, payment of wages, and the qualification of medical practitioners.

We continue to remain vigilant and socially responsible and maintain good hygiene practices at our workplace
in upholding the highest occupational health and safety standard in the Group.

INCIDENT REPORT
Total Reported / Cases
Category
Jul'22 - Jun'23 Jul'21 - Jun'22
Unsafe Act 22 2
Unsafe Conditions 98 130
Environmental Spillage 2 8
Fire Outbreak 2 2
Property Damage 1 1
First Aid 6 15
Medical Treatment 27 35
Restricted Work 0 0
Lost Time Injury (LTI) Frequency rate 0 3
Fatality 1 1
46 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

6. SUSTAINABILITY PILLAR : SOCIAL (CONTINUED)

6.2 Training and education

We offer to our employees training programme and opportunities to attend seminars, workshops and
conferences covering a wide range of economic, environmental, financial and social matters that are integral to
the successful running of the Group’s operations and for career advancement of our employees.

During the financial year, the following training courses were attended by our employees:-

No Training Month & Year No. of Employee

1 In House Training - Project Management Essentials Jul-22 12
Workshop: The Study of Economic Impacts on Malaysian-
2 Flagged Ships under MARPOL Annex VI Requirements (EEXI Jul-22 1
& CII)
3 The Definitive Guide To Warehouse Operations, Health & Safety Jul-22 5
4 Proficiency in Survival Craft & Rescue Boats Refresher Aug-22 1
5 HRD Corp Insights for Newly Registered Employers- Sarawak Aug-22 3
Strategically Advanced Company Law and Secretarial Practice
6 Aug-22 2
for Accountants
7 Kursus Mate Domestic <500 GT (Open) Aug-22 1
8 Advance Fire Fighting (Refresher) Aug-22 1
9 Twin Disc Product Seminar 2022 Aug-22 9
Inaugural Sarawak Occupational Safety & Health Conference
10 Sep-22 2
(ISOSH)
11 Labour Ordinance of Sarawak (With Latest Amended Act) Sep-22 1
12 Authorised Gas Tester & Entry Supervisor for Confined Space Sep-22 2
13 Coaching Skills for Leaders : LEDA Level 3 Sep-22 1
14 Basic Training Sep-22 1
Taklimat Pengimportan Makanan dan Garis Panduan Penlabelan
15 Sep-22 3
Makanan KKM
16 New E-Permit Roadshow & Engagement Session Oct-22 6
17 User E-In Out Training Oct-22 28
18 Permit to Work for Managing Safety at Industries Nov-22 1
19 Occupational Safety & Health Coordinator (OSH-C) Nov-22 4
20 Internal Training - Scaffolding Nov-22 22
International Maritime Dangerous Goods IMDG Code - General
21 Nov-22 1
Awareness (Online)
International Maritime Dangerous Goods IMDG Code - General
22 Nov-22 5
Awareness (Physical)
23 Key Income Tax Updates in 2022 Dec-22 8
24 ESG - Role of the Accountant and Financial Reporting Dec-22 8
25 Import Docs Training Jan-23 3
26 Online Seminar on Advanced Service by RMCD Jan-23 1
27 Shipping Operations and Container Management Jan-23 1
28 Program Workplace Safety Improvement Jan-23 1
29 Authorised Entrant & Standby Person for Confined Space Jan-23 2
30 Shipping Documents, Procedure & Incoterms 2020 Feb-23 5
31 Basic Fire Fighting Training Feb-23 15
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 47
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

6. SUSTAINABILITY PILLAR : SOCIAL (CONTINUED)

6.2 Training and education (continued)

No Training Month & Year No. of Employee

International Maritime Dangerous Goods IMDG Code: Function
32 Feb-23 5
Specific (Physical)
33 Combined ISM & ISPS Code Internal Auditor Course Feb-23 2
Certified Environmental Professional in Scheduled Wastes
34 Mar-23 1
Management (CePSWaM)
Corporate Tax Strategy : Capitalising the Right Tax Opportunities
35 Mar-23 1
for your Bussiness
36 Inventory Control Management Training Mar-23 10
37 Labour Law Workshop Mar-23 3
Program Handholding Authorized Economic Operator (AEO) &
38 Mar-23 6
Pengikraran Borang Kastam Borang Berkualiti
39 Basic Training (Refresher) Mar-23 1
Budget 2023 - Key Updates and Changes for Corporate
40 Mar-23 10
Accountants
41 Proficiency in Survival Craft & Rescue Boats (Refresher) Mar-23 1
42 Search & Rescue Training Mar-23 25
In House Training : ISO 9001:2015 Awareness & Internal Quality
43 Mar-23 31
Auditor Training
44 Impactful HR Auditing Mar-23 1
International Maritime Dangerous Goods : IMDG Code
45 Apr-23 1
“Function Specific” (Online)
46 Advance Fire Fighting Apr-23 1
47 Kursus Proses Pengurusan Tender Pembinaan Apr-23 2
48 HRD Corp Meet & Greet 2023 Miri Session Apr-23 2
49 ESG Sustainability Reporting Workshop Apr-23 5
50 Effective Occupational Safety & Health Management System Apr-23 2
51 Kursus Industri Pembinaan Moden (IBS) Apr-23 2
52 Team Dynamics-Transformation Towards Excellence Apr-23 32
53 Maritime Law & Business Conference 2023 May-23 2
54 Global Board of Directors Transformation Masterclass May-23 2
55 Briefing on E-Permit Jun-23 2
56 MIA Conference 2023 Jun-23 5
57 OSHA Compliance & Amendment Jun-23 2
58 E-Vetting 2.0 Training for Vendors, Contractors & Port Users Jun-23 1
Skop& Konsep Cukai Jualan Termasuk Kemudahan
59 Jun-23 1
Pengecualian & Pelupusan

The Group has incurred a total training cost of RM 168,062.03 (FY 2022: RM 37,419.55) during the financial year
2023.

Total Training Cost (RM)

Jul’22 – Jun’23 Jul’21 – Jun’22
168,062.03 37,419.55
48 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

6. SUSTAINABILITY PILLAR : SOCIAL (CONTINUED)

6.2 Training and education (continued)

Total training hours

Total Training hours

Jul’22 – Jun’23 Jul’21 – Jun’22
2,520 576

6.3 Diversity and equality

Employee diversity is of significant importance to the Group, as we believe a diverse workforce promotes a
respectful culture that is open-minded and unserstanding, and encourages new ways of thinking and thriving,
that is especially significant for a global minded corporation. The diversity of our employees is evidenced by the
profile of our 2,072 onshore employees working for the Group, from over fifteen nationalities across numerous
regions. This number encompasses permanent and contract employees. We practise a non-discriminatory
hiring policy and all of our employees are hired based on qualification, capability and expertise.

Below is the Group’s Employee Demographic Highlights FYE 2023 and FYE 2022:-

NO NO
TOTAL NUMBER OF EMPLOYEES
FYE 2023 FYE 2022
PERMANENT Female 425 367
Male 955 834
CONTRACT Female 12 27
Male 680 655
2,072 1,883

NO NO
TOTAL NUMBER OF EMPLOYEES BY AGE GROUP
FYE 2023 FYE 2022
30, and under Female 177 156
Male 437 404
31-40 Female 175 162
Male 454 406
41-50 Female 65 57
Male 388 364
51 and above Female 20 18
Male 356 316
2,072 1,883

NO NO
TOTAL NUMBER OF EMPLOYEES BY NATIONALITY
FYE 2023 FYE 2022
Malaysian 1,698 1,539
Non- Malaysian 374 344
2,072 1,883
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 49
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

6. SUSTAINABILITY PILLAR : SOCIAL (CONTINUED)

6.3 Diversity and equality (continued)

NO NO
TOTAL NUMBER OF EMPLOYEES BY EMPLOYMENT LEVELS
FYE 2023 FYE 2022
MANAGEMENT Female 3 0
Male 36 31
EXECUTIVE Female 114 101
Male 150 145
NON- EXECUTIVE Female 280 263
Male 126 122
GENERAL WORKER Female 28 18
Male 1,335 1,203
2,072 1,883

Across the Group, the male outnumbered female employees considering the business nature and models
of logistics and marine working environment. Male employees accounted for 79% (2022: 79%), while the
remaining 21% (2022: 21%) are female employees.

2023: Gender Diversity 2022: Gender Diversity

21% 21%

79% 79%

Female Male Female Male

The Group encourages diversity, approximately 82% (2022: 82%) of our employees are Malaysians, and the
remaining 18% (2022: 18%) are foreigners and from other ethnicities. Whenever possible, the Group hires local
employees at our operations.

Ship repair briefing session Site visit to the ship repair yard
50 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

6. SUSTAINABILITY PILLAR : SOCIAL (CONTINUED)

6.3 Diversity and equality (continued)

2023: Malaysian vs Foreign Employees 2022: Malaysian vs Foreign Employees

18% 18%

82% 82%

IN MALAYSIA Malayisian IN MALAYSIA Malayisian

IN MALAYSIA Non-Malayisian IN MALAYSIA Non-Malayisian

The Group has a young employee profile where almost 30% (2022: 30%) of the employees are under 30 years
old, while 30% (2022: 30%) of the employees are between the age band of 31-40 years old, 22% (2022: 22%)
of the employees are between the age band of 41 -50. The remaining 18% (2022: 18%) of employees aged
above 50, which comprise of the senior employees who share their experience and focusing their roles in
providing guidance and mentorship to our young employees. The Group continues to engage effectively with
our employees and employs more graduates and trainees to be a part of our workforce through nurturing career
development prospects.

2023: Age Diversity 2022: Age Diversity

35% 35%
30% 30% 30% 30%
30% 30%
22% 22%
25% 25%
18% 18%
20% 20%
15% 15%
10% 10%
5% 5%
0% 0%
30, and 31-40 41-50 51 and 30, and 31-40 41-50 51 and
under above under above

New employees hired for the Group

a) The total number of new employees hired during the reporting period, by age group and gender, as below.
The rate shows the distribution of new hires across different age group.

Year Gender
Total
Jul 2022 – Jun 2023 Male Rate Female Rate
477 85% 82 15% 559
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 51
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

6. SUSTAINABILITY PILLAR : SOCIAL (CONTINUED)

6.3 Diversity and equality (continued)

New employees hired for the Group (Continued)

a) The total number of new employees hired during the reporting period, by age group and gender, as below.
The rate shows the distribution of new hires across different age group. (Cont’d)

Year Age Group

Total
Jul 2022 – Jun 2023 Below 30 Rate 30-50 Rate Above 50 Rate
290 52% 231 41% 38 7% 559

Total employees’ turnover

a) The total number of employees’ turnover during the reporting period, by gender and age group, as below.
The rate shows the distribution of turnover across different age group.

Year Gender
Total
Jul 2022 – Jun 2023 Male Rate Female Rate
428 85% 74 15% 502

Year Age Group

Total
Jul 2022 – Jun 2023 Below 30 Rate 30-50 Rate Above 50 Rate
229 46% 216 43% 57 11% 502

b) By Function:

Function Turnover (%)

Operations 23%
Non – operations 77%

6.4 Employee welfare and engagement

We understand that our employees need meaningful career development and skills improvement as well as
competitive compensation and benefits to cope with the rising cost of living.

The Group complies with the local statutory requirements on wages and benefits such as the Minimum Wages
Order, Employees’ Provident Fund, Social Security Protection and bonus payment in line with performance
indicators and annual leave provision.

In year 2023, the Group had conducted various activities including an appreciation lunch and sports events to
encourage employee interaction and foster spirit de corps while promoting work-life balance.
52 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

6. SUSTAINABILITY PILLAR: SOCIAL (CONTINUED)

6.4 Employee welfare and engagement (Continued)

Table Tennis Tournament Basketball Tournament

Futsal Tournament Sarawak Independence Day Parade

6.5 Community Engagement

The Group recognises its vital role to play in promoting sustainable development and enhancing the well-being
of the local community. The Group has always been mindful of Corporate Social Responsibility (“CSR”) to
create a positive impact on the local community.

i) Education Sponsorship Program - Sarawak Maritime Academy School

In the area of promoting education, the Group has provided a complete sponsorship of thirty six (36)
students cumulatively for a three year academic education in the Maritime Cadetship programme for
the Diploma in Nautical Studies and Diploma in Marine Engineering at the Sarawak Maritime Academy
School in Sarawak. Out of the total students sponsored, some of the student graduates have been in our
employment on our ocean going vessels and our shipyards.
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 53
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

6. SUSTAINABILITY PILLAR: SOCIAL (CONTINUED)

6.5 Community Engagement (continued)

ii) Social Contributions

The Group has made cash contribution to charity bodies as follow:-

Charity Bodies RM
Persatuan Ibu Bapa Kanak-kanak Istimewa Miri (PIBAKIS) 2,500.00
Palliative Care Association of Miri (PCAM) 2,500.00
Wishesland Miri 2,500.00
Morsjaya Community-Based Rehabilitation Centre (PDK) 2,500.00

The Group’s representative handing over The Group’s representative handing over
cash contribution to PCAM cash contribution to PIBAKIS

The Group’s representative handing over The Group’s representative handing over cash
cash contribution to PDK contribution to Wishesland

iii) Blood Donation Drive

The Group’s Blood Donation Drive in collaboration with Miri General Hospital’s Blood Transition Unit,
Malaysian Red Crescent and Permaisuri Imperial City Mall is part of the Group’s initiative and effort
to contribute to the betterment of our community’s health by donating blood for those in need. It aims
to create awareness on the importance of blood donation to save lives abd improve knowledge of the
community on safe voluntary blood donation and transfusion. The program is held four times a year to
assist the Blood Transfusion Unit of Miri General Hospital in blood supply during critical periods.
54 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

6. SUSTAINABILITY PILLAR: SOCIAL (CONTINUED)

6.5 Community Engagement (continued)

iii) Blood Donation Drive (continued)

Date Venue Number of Pints of Blood

16.07.2022 Malaysian Red Crescent Training Institute Miri 90
15.10.2022 Malaysian Red Crescent Training Institute Miri 74
11.02.2023 Permaisuri Imperial City Mall 114
13.05.2023 Permaisuri Imperial City Mall 121

iv) Membership of Associations

In the effort of dissemination of agenda and integration of goals into our business and industry, we
actively continue engaging with various local and national associations to ensure that we understand the
needs of the industry and hence are able to make necessary contribution to the industry.

Associations Membership/ Representative

Sarawak Association of Maritime Industries (SAMIN) Deputy Chairman
Malaysia Shipowner’s Association (MASA) EXCO member of Sarawak Representative
International Malaysia Society of Maritime Law Corporate Member
(IMSML)
Association of Marine Industries of Malaysia (AMIM) Vice Chairman and Sarawak Representative
Miri Chinese Chamber of Commerce and Industry Chairman
(ACCCIS)
Sarawak Timber Association (STA) Permanent Council Members & Elected Council
Member
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 55
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

7. SUSTAINABILITY PILLAR: GOVERNANCE

We are committed to valuing and upholding the business integrity, transparency and honesty across all our operations.
As we adhere to these important standards, we strive to cultivate strong levels of trust and loyalty among our
stakeholders.

7.1 Sustainability Policies

[a] Environmental Policy (Established in 2016)

• Aims to prevent and control pollution by using energy, water and other resources efficiently.
• Using environment technologies to achieve a Clean and Green Production Environment.
• Enhancing environmental education and training to all employees to improve environmental
consciousness and social responsibility to create and maintain a pleasant work environment.

[b] Safety and Health Policy (Established in 2012)

• To maintain prominent safety culture to create an intact business reputation; to reduce medical cost,
training and turnover costs; providing a conducive working environment, and to instill confidence in
customers and vendors and the self-esteem of employees and contractors.

[c] Smoking Policy (Established in 2012)

• Aims to reduce numerous fire accidents or smoking related incidents at workplace.

[d] Waste Management Policy (Established in 2016)

• To comply with the Environmental Quality (Scheduled Wastes) Regulations 2005 of Environmental
Quality Act 1974, to minimize waste production throughout the Group

7.2 Governance and Ethics

The Group recognises good corporate governance is more than just complying with existing standards and
regulations. It is also about ethics, trust and values which shape the Group’s business conduct. This enhances
the stakeholders’ confidence and sets the standard of the conducts for the Group.

a. Code of Ethics and Conduct

The Group has an established Business Ethics and Code of Conduct that describe the expected action
and behaviour from the employees and business associates. The Ethics and Code of Conduct emphasises
legal, equitable and unbiased standards in relation to conflict of interest, entertainment and gifts, misuse
of position, insider trading and misconduct. The employees of the Group are required to retain the highest
standard of ethics and professional conduct during their employment with the Group. The employees are
kept abreast of updates via web posts, email and face-to-face/virtual briefings.

b. Whistle-blowing Policy

This Policy was established with the aim to provide a structured mechanism for employees and
other stakeholders to raise genuine and legitimate concerns on any suspected wrongful activities or
wrongdoings. The Group intends to embed a culture across the Group where wrongdoing is not tolerated
and when reported, it will be quickly and efficaciously addressed. The Group also commits to provide
protection for those who make such disclosures.
56 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

7. SUSTAINABILITY PILLAR: GOVERNANCE (CONTINUED)

7.2 Governance and Ethics (Continued)

b. Whistle-blowing Policy (Continued)

This Policy covers, though it is not limited to, the following instances of improper conduct (actual or
suspected):

i. bribery and corruption;

ii. theft or embezzlement;
iii. violation of laws and regulations;
iv. misuse of Company’s funds and resources;
v. abuse of power of authority;
vi. conflict of interest without due disclosure;
vii. misstatement arising from misappropriation of assets

Employees can confidently raise their concerns and/or file their report to the Chairman of Central
Committee.

In FYE2023, no reports of whistleblowing were received.

c. Anti-Bribery and Anti-Corruption Policy (“ABC Policy”)

As part of its commitment to ethical business practices, the Group had implemented an Anti- Bribery
and Anti-Corruption Policy (“ABC Policy”), wherein the Group adopts a zero-tolerance policy against
all forms of bribery and corruption. The ABC Policy ensures that the directors, employees and business
associates of the Group are committed to complying with the Malaysian Anti-Corruption Commission Act
2009 (including all Amendments, in particular the Malaysian Anti-Corruption Commission Act 2018) and
other applicable anti-bribery and anti-corruption laws.

In FYE2023, no reports of bribery or corruption were received.

d. Directors' Fit and Proper Policy

In compliance with the relevant provisions of the Main Market Listing Requirements (“MMLR”) of Bursa
Malaysia Securities Berhad (“Bursa Malaysia”) and the Malaysian Code on Corporate Governance 2021
(“MCCG”), the Group had implemented the Directors’ Fit and Proper Policy to achieve a Board composition
with appropriate balance, diversity and mix of skills, business experience, background, industry and
geographic knowledge, professional qualifications and other relevant qualities.

In pursuing a culture free from corruption, we believe this endeavour should emanate from the top
management. In alignment with this, the Board adheres to the Code of Ethics for Company Directors issued
by the Companies Commission of Malaysia, which is grounded in principles centred on transparency,
integrity, accountability and corporate social responsibility.
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 57
(Formerly known as Shin Yang Shipping Corporation Berhad)

SUSTAINABILITY REPORT
(Cont’d)

8. BURSA COMMON SUSTAINABILITY MATTERS – PERFORMANCE DATA TABLE

Common Sustainability Common indicators Reference

Matters
1) Anti - corruption 1(a) Percentage of employees who have Only elected facilitators have
received training on anti-corruption by attended training as part of training
employee category programme
1(b) Percentage of operations assessed for Year 2023: 0%
corruption-related risks
1(c) Confirmed incidents of corruption and Year 2023: Nil
action taken
2) Community / 2(a) Total amount invested in the community Sustainability Report – Community
Society where the target beneficiaries are Engagement, Pages 52 to 54
external to listed issuer
2(b) Total number of beneficiaries of the Sustainability Report – Community
investment in communities Engagement, Pages 52 to 54
3) Diversity 3(a) Percentage of employees by gender and Sustainability Report – Diversity and
age group, for each employee category equality, Pages 48 to 51
3(b) Percentage of directors by gender and Corporate Governance Overview
age group Statement – Board composition and
balance, Pages 59 to 60
4) Energy 4(a) Total Energy Consumption Sustainability Report -Energy, Pages
Management 42 to 43
5) Health and safety 5(a) Number of work-related fatalities Sustainability Report – Occupational
Health & Safety, Page 45
5(b) Lost time injury frequency rate Sustainability Report – Occupational
Health & Safety, Page 45
6) Labour practices 6(a) Total hours of training by employee Sustainability Report – Training and
and standards category education, Page 48
6(b) Percentage of employees that are Sustainability Report – Diversity and
contractors or temporary staff equality, Page 48
6(c) Total number of employee turnover by Sustainability Report – Diversity and
employee category equality, Page 51
6(d) Number of substantiated complaints Year 2023 : Nil
concerning human rights violations
7) Supply chain 7(a) Proportion of spending on local suppliers Year 2023 : 84.2%
management
8) Data privacy and 8(a) Number of substantiated complaints Year 2023: Nil
security concerning breaches of customer privacy
and losses of customer data
9) Water 9(a) Total volume of water used Sustainability Report – Energy, Page
42
10) Waste management 10(a) Total waste generated, and breakdown of Sustainability Report -Effluent and
the following: waste, Page 42
a) Total waste diverted from disposal
iii) Total waste directed to disposal
11) Emissions 11(a) Scope 1 emissions in tonnes of CO2e Sustainability Report -Carbon
management footprint initiative, Page 43
11(b) Scope 2 emissions in tonnes of CO2e Sustainability Report -Carbon
footprint initiative, Page 43
58 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

CORPORATE GOVERNANCE OVERVIEW STATEMENT

The Board remains committed in ensuring the high standards of corporate governance are practised throughout the Group
in discharging its responsibilities to protect and enhance all of the shareholders’ value.

The Board believes that good corporate governance displays integrity of the Group and adds value to the business of the
Group and will ensure that this practice continues. The Board of Directors believes in playing an active role in guiding the
Management through its oversight review while at the same time steering the Group’s business directions and strategies.

The statement outlines how the Group has applied the principles of corporate governance and the extent of compliance with
the principles, recommendations and best practices set out in the Malaysian Code on Corporate Governance 2021 (“MCCG”)
and is to be read in conjunction with the Corporate Governance Report (CG Report) which is available on the Group’s website.

The three (3) principles of corporate governance as set out in MCCG are:-

Principle A Principle B Principle C

Board leadership and Effective audit and risk Integrity in corporate reporting
effectiveness management and meaningful relationship
with stakeholders

PRINCIPLE A – BOARD LEADERSHIP AND EFFECTIVENESS

Roles and responsibilities

Stakeholders

Board of Directors

Audit & Risk Management Joint Remuneration &

Committee Nomination Committee

Internal Audit External Audit Risk

Management

The Board of Directors (“Board”) has the overall responsibility for the performance of the Group by maintaining full and
effective control over strategic, financial, operational, compliance and governance issues. The Board is guided by the
prevailing legal and regulatory requirements as well as the Company’s policies and Board Charter in discharging its fiduciary
duties and responsibilities at all times in the best interest of the Company and the Group.

The Board delegates the day-to-day management of the Company’s business to the management team, reserving its
consideration for significant matters such as the following: -

• Formulation of corporate policies and strategies;

• Overseeing and evaluating the conduct of the Group’s businesses;
• Identifying principal risks and ensuring the implementation of appropriate systems to manage those risks; and
• Reviewing and approving key matters such as financial results, structures and policies, investments and divestments,
acquisitions and disposals and major capital expenditure.
• Ensuring full compliance with Listing Requirements of Bursa Securities and all other applicable laws, regulations and
statutory requirements
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 59
(Formerly known as Shin Yang Shipping Corporation Berhad)

CORPORATE GOVERNANCE OVERVIEW STATEMENT

(Cont’d)

Board Composition and Balance

The Group is led and managed by a competent Board which sets the policies to enable them to lead and guide the Group
to achieve its goals. The Board currently has nine (9) board members, headed by the Group Executive Chairman. The nine
(9) members of the Board comprise of five (5) Executive Directors and one (1) Non-Independent Non-Executive Director and
three (3) Independent Non-Executive Directors. This has met the Bursa Malaysia Securities Berhad’s Main Market Listing
Requirements which require at least two (2) Directors or nearest of one third (1/3) of the Board, whichever is higher, to be
Independent Directors.

The profile of each director is presented from page 10 to page 14 in the Annual Report.

Together, the Directors bring with them a broad range of hands-on extensive experience and expertise in the areas such
as finance, corporate affairs, marine law, business acumen, logistic management and shipping and shipbuilding technical
operations, which are all vital to the success of the Group.

The Board believes that the appointment of board members, regardless of gender, should be based on experience, expertise,
character, integrity and competence as these are the essential criteria for an effective Board.

Details view of the current Board Composition illustrated as below:-

Directorship

Independent
Directors 33%

Non-Independent
Directors 67%
Tenure of Independent Directors

Less than 3 years

2 Directors

More than 3 years but less than 9 years

1 Director

Gender

Female Male
22% 78%
60 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

CORPORATE GOVERNANCE OVERVIEW STATEMENT

(Cont’d)

Board Composition and Balance (Continued)

Age profile

11%

11%

56%

22%

31-40 years 41-50 years 51-60 years 61-70 years

Experience and Expertise

Business
Audit/Tax Acumen

Board’s
Experience
and Expertise
Marine
Law

Time Commitment

Directors are expected to give sufficient time to carry out their duties and responsibilities. In line with paragraph 15.06 of the
Listing Requirements of Bursa Malaysia Securities Berhad in relation to the restriction on directorship in listed companies,
none of the Board members holds more than five (5) directorships in public listed companies to ensure that they are able to
devote sufficient time to carry out their responsibilities.

Roles of the Chairman and Chief Executive Officer

The Board is led by Tan Sri Datuk Ling Chiong Ho, the Group Executive Chairman while the position of the Chief Executive
Officer is helmed by Captain Ting Hien Liong.

The distinct and separate roles of the Group Executive Chairman and Chief Executive Officer, with a clear division of
responsibilities, ensure a balance of power and authority, such that no one individual has unfettered powers of decision-
making. The Group Executive chairman is responsible for leadership, orderly conduct and the workings of the Board, whereas
the Chief Executive Officer is responsible for the day-to-day management and operations of the Group’s business.
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 61
(Formerly known as Shin Yang Shipping Corporation Berhad)

CORPORATE GOVERNANCE OVERVIEW STATEMENT

(Cont’d)

Company Secretary

The Board is supported by a qualified, experienced and competent Company Secretary. The Company Secretary plays an
important role in supporting the Board by ensuring adherence to Board policies and procedures. The Board is updated by
the Company Secretary on new statutes and directives issued by the regulatory authorities from time to time. The Company
Secretary attends the Board and Committee meetings and ensured that all procedures are adhered to. He also facilitates the
communication of key decisions and policies between the Board, Board Committees and Senior Management and updates
the Board on the Follow-up or implementation of its decisions or recommendations.

Board Charter

The roles and functions of the Board are delineated in the Board Charter, which is available on the Group’s website.

The Charter shall is reviewed periodically as stipulated to ensure its relevance in assisting the Board to execute its duties with
changes in corporate laws and regulations that may arise from time to time.

Board Committee

The Board has delegated certain functions to the committees to assist in the execution of its responsibilities:

• Audit and Risk Management Committee

The Audit and Risk Management Committee comprises of three (3) Independent Non-Executive Directors and one
(1) Non- Independent Non-Executive Director. The composition, responsibilities, detailed terms of reference and
the activities of the Committee during the financial year are set out separately in the Audit and Risk Management
Committee Report on page 75 to 78 of the Annual Report.

• Joint Remuneration and Nomination Committee

The Committee is responsible for recommending the remuneration framework for Directors as well as the remuneration
packages of Executive Directors to the Board for approval and also recommending the right candidates with the
necessary skills, knowledge, expertise and experience including his/her professionalism and integrity to fill the Board.
The Committee is also responsible to assess the effectiveness of the Board, its Committee and the performance of
individual Director annually. The members of the Joint Remuneration and Nomination Committee are as follow:

Jack Willien @ William Anak Jinep– Chairman, Independent Non –Executive Director

Arshad Bin Zainuddin - Independent Non –Executive Director

Ling Siu Chuo – Non-Independent Non-Executive Director.

The Committee meets as and when necessary. For the financial year ended 30 June 2023, the Committee has held
two (2) meetings.

The respective Committees operate under clearly defined terms of reference and the Chairman of the respective Committees
report to the Board on the outcome of the Committee Meetings.

Supply and Access of Information

All Directors have full access to information concerning the Company and the Group. The Directors are provided with the
relevant agenda and a set of Board papers in sufficient time prior to every Board meeting to enable them to understand
the matter and seek further explanation where necessary, in order to be properly informed before the meeting. The Board
papers circulated include quarterly and annual financial statements, minutes of meeting of all Committees of the Board,
report on recurrent related party transactions, internal audit reports and reports on the Group’s financial, operational and
corporate developments. All matters requiring the Board’s approvals have been duly circulated prior to the Board Meeting.
All proceedings of the Board Meeting are minuted and signed as correct record by the Chairman of the Meeting.

At all times, the Directors have direct access to the advice and the services of the Company Secretary, Key Senior Management
Staff as well as independent professional advisers including the external auditors. Directors, especially newly appointed ones
are encouraged to visit the Group’s operating locations to familiarize themselves with the various operations of the Group.
62 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

CORPORATE GOVERNANCE OVERVIEW STATEMENT

(Cont’d)

Board Meeting

Board meetings are scheduled in advance to enable all directors to plan ahead. The Board meets at least four times a year
with additional meetings to be convened as and when the Board’s approval and guidance is required.

During the financial year ended 30 June 2023, the Board met a total of four times.
Details of the attendance are as follows:

No Directors Status of Directorship No. of Meeting attended

1 Tan Sri Datuk Ling Chiong Ho Group Executive Chairman 4/4
2 Ling Chiong Sing Group Managing Director 4/4
3 Datuk Ling Lu Kiong Group Executive Vice Chairman 4/4
4 Ling Chiong Pin Executive Director 4/4
5 Vincent Ling Lu Yew Executive Director 4/4
6 Ling Siu Chuo Non-Independent Non-Executive Director 4/4
7 Arshad Bin Zainuddin Independent Non-Executive Director 4/4
8 Jack Willien @ William Anak Jinep Independent Non-Executive Director 4/4
9 Yong Nyet Yun Independent Non-Executive Director 4/4

The Board meetings may be conducted via electronic means and for convenience, circular resolutions of the Directors will
be prepared for the Directors’ execution in order to facilitate efficient implementation of the Board’s decision. Any Director
who is unable to be present physically at meetings is encouraged to participate through electronic means of communication.

At the Board Meeting, the Board deliberates and considers matters relating to the Group’s financial performance, major
capital expenditure, budgets, investment, corporate development, strategic issues and business plan. Although all of the
Directors have an equal responsibility for the Group’s operation and performance, the roles played by the Independent
Non-Executive Directors are vital to ensure that strategies formulated or transactions proposed by the Management are
thoroughly discussed in an unbiased and independent manner, taking into account the interest of not only the Group but also
the shareholders, employees, customers, suppliers, business associates, environment and community at large.

Code of Ethics and Conduct

The Board is committed to maintaining a corporate culture with good ethical conduct. This is formalised through the Company’s
Code of Ethics and Code of Conduct. This Code of Ethics and Conduct intends to serve as a guide to the daily professional
and ethical attitudes of all the employees of the Group. It covers matters in relation to office rules and regulations, conflict of
interest, supply chain code, security and confidential information, harassment, abusing assets/office facilities, drugs/liquors
and breaches and offenses. The directors and employees of the Group are expected to adhere to the standard of ethics and
conduct set out therein.

Whistle-Blowing Policy

The Board is committed to the highest standards of integrity, accountability and ethical behavior in its business conduct
and operations, consistent with the Group’s corporate values. All the employees and third parties employed or engaged are
provided with the mechanism to report wrongdoing or improper conduct without fear of retaliation or being victimised.

Anti-Bribery and Corruption Policy

The Board is committed to conduct business in compliance with all the applicable provisions set out in the Malaysian Anti-
Corruption Commission (“MACC”) Act 2009. The Group adopts a zero-tolerance policy against all forms of bribery and
corruption. The Anti-Bribery and Corruption Policy has been developed to provide information and guidance to the Group on
standards of behaviour, and to ensure that the Group recognises and upholds its responsibilities when dealing with bribery
and corruption
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 63
(Formerly known as Shin Yang Shipping Corporation Berhad)

CORPORATE GOVERNANCE OVERVIEW STATEMENT

(Cont’d)

Sustainability

The Board recognises the importance of incorporating sustainability considerations into the Company’s business and
corporate activities, and how sustainability is essential to successful business strategies that could deliver sustainable value
to all stakeholders and ultimately boosts the business performance of the Company.

The Board and the Key Senior Management proactively govern the Company’s materiality processes, including setting the
Company’s sustainability strategies, priorities and targets. Any action against these clearly set out strategies, priorities and
targets are communicated to the Company’s internal and external stakeholders.

The Board and the Key Senior Management integrate Economic, Environmental, Social and Governance (EESG) factors into
their investment decision-making process and the Group’s overall strategy and operations in paving the path for a more
sustainable future.

Appointment and Retirement of Directors

The appointment of any additional director(s) is made as and when it is deemed necessary by the Board of Directors with
due consideration given to a good mix of knowledge, skills and experiences required for the Board to discharge its duties
effectively. The appointment of new Director(s) by the Board is following the recommendation of the Joint Remuneration
and Nomination Committee. Any proposal to appoint new director(s) will be discussed among the Board members and
appointment to the Board will be documented in the Board resolutions.

The Company’s Constitution provides that one third of the Board shall retire from office and be eligible for re-election at every
Annual General Meeting (“AGM”). The Directors who shall retire in each year are the Directors who have been longest in office
since their last appointment or re-appointment. A retiring Director is eligible for re-appointment. This accords an opportunity
to the shareholders to renew their mandates. The election of each Director is voted on separately.

Tenure of Independent Directors

The Board complies with the recommendation of the MCCG 2021 that the tenure of an independent Director should not
exceed a cumulative term of nine (9) years. Upon the completion of the nine years, the Board may, at its absolute discretion,
consider re-designating the independent director as a non-independent director if it is so determined that the expertise and
experience of the independent director is still relevant. Currently, none of the existing Independent Directors of the Company
has exceeded the tenure of a cumulative term of nine (9) years in the Company.

Annual Assessment of Director

The Board, through the Joint Remuneration and Nominee Committee, assesses the independence of Independent Directors
annually. The criteria for assessing the independence of an Independent Director include the relationship between the
Independent Director and the Company and his/her involvement in any significant transaction with the Company.

The evaluation is conducted internally via written questionnaires and the Board views that the current evaluation process
is adequate to provide an objective assessment on the effectiveness of the Board, Board Committees and each individual
Director.

The Board and Board Committees are satisfied with their existing composition and are of the view that, with the current mix
of skills, experience, expertise, and competency of the existing Directors, the Board and respective Board Committees are
able to discharge their duties effectively. The Board is also satisfied that the Board’s composition in terms of size, and the
balance between Executive, Non-Executive and Independent Directors and mix of skills is adequate.

Gender Diversity

The Board yet not adopt a gender diversity policy for the Board and Key Senior Management. The Board believes that the
Company’s existing selection criteria of a director based on an effective mix of experience, skills, competency and knowledge
in areas identified by the Board are sufficient.

Steps have been taken to ensure that the selection and recruitment practices at all levels (from the Board downwards) are
appropriately structured so that a diverse range of candidates are considered and that there are no conscious or unconscious
bias that might discriminate against female candidates.
64 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

CORPORATE GOVERNANCE OVERVIEW STATEMENT

(Cont’d)

Directors’ Training

All of the Directors have attended and completed the Mandatory Accreditation Programme (“MAP”) prescribed by the Bursa
Malaysia Training Sdn Bhd. The Directors are also encouraged to attend the Continuing Education Programme (“CEP”)
organized by accredited organisations as and when necessary to keep abreast with the latest development that are relevant
to the Group.

The Directors having during the financial year ended 30 June 2023, attended the necessary training which covered a range of
topics to provide the Directors with updates on business trends and management, risk management, corporate governance,
financial and audit. This training regarded as essential in providing the Directors with continuous education and enhancement
of their knowledge and skills in discharging their responsibilities as directors of the Company

Training programmes Duration of training per

programme, day(s)
SSM National Conference 2022 2
The Definitive Guide To Warehouse Operations, Health & Safety 3
Twin Disc Product Seminar 2022 1
Coaching Skills for Leaders : LEDA Level 3 5
Global Board of Directors Transformation Masterclass 3
Practical Secretarial Issues and Challenges 2 – Case studies on Shares 1
Managing Challenging Communication 2
Removal of Director – Step by Step 1
Corporate Governance Case Studies 1
Employment Act with Latest Updates 1
AGM, Accounts, Annual Returns under Companies Act 2016 1
Employer Statutory Obligation 23 1
Sustainability Reporting 1

The Joint Remuneration and Nomination Committee reviews the annual salaries, incentive programmes, service arrangements
and other employment conditions of the Executive Directors. They shall ensure that the Company’s Directors are fairly
rewarded for their individual contributions to the Company’s overall performance and the levels of remuneration shall be
sufficient to incentivize and retain Directors to run the Company and Group successfully. Where applicable, the Board who
takes into consideration information sourced by independent consultants or survey information on comparable companies in
determining the remuneration package.

The Group pays its Non-Executive Directors annual fees, which are approved annually by the shareholders. The Directors are
also reimbursed for reasonable expenses incurred by them in the course of carrying out their duties on behalf of the Group.

The determination of remuneration packages of Directors are determined by the Board as a whole and individuals are required
to abstain from discussion of their own remuneration.
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 65
(Formerly known as Shin Yang Shipping Corporation Berhad)

CORPORATE GOVERNANCE OVERVIEW STATEMENT

(Cont’d)

The details of the remuneration of the directors of the Company and Group for the financial year ended 30 June 2023 are as
follows:
Company Subsidiaries Group
Salaries Company Salaries
Fees and Bonus Others Total and Bonus Others Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
EXECUTIVE
Tan Sri Datuk Ling Chiong Ho 2,400 96 2,496 195 9 2,700
Ling Chiong Sing - 750 31 781 880 37 1,698
Ling Chiong Pin - 225 10 235 65 3 303
Vincent Ling Lu Yew - 780 95 875 67 11 953
Datuk Ling Lu Kiong - 30 4 34 - - 34
NON-EXECUTIVE
Ling Siu Chuo 24 - - 24 - - 24
Arshad Bin Zainuddin 24 - - 24 2 - 26
Jack William @ William Anak 28 - - 28 - - 28
Jinep
Yong Nyet Yun 48 - - 48 - - 48
Total 124 4,185 236 4,545 1,209 60 5,814

PRINCIPLES B – EFFECTIVE AUDIT AND RISK MANAGEMENT

Audit and Risk Management Committee

The Board acknowledges that it is responsible for maintaining a sound risk management practice and internal control system
to safeguard the Shareholders’ investments and the Group’s assets.

The Board, through its Audit and Risk Management Committee, has established an ongoing process for identifying, evaluating,
and managing the significant risks faced by the Group and this process includes enhancing the risk management and internal
control system as and when there are changes to the business environment and regulatory requirements. The above activities
are monitored by the Management with the assistance of the Internal Auditor.

The Audit and Risk Management Committee Report is set out on page 75 to 78 of the annual report.

Chairman of Audit and Risk Management Committee

The Chairman of Audit and Risk Management Committee and that of the Board are held by different persons as below:-

Chairman of the Audit and Risk Management Committee – Mdm Yong Nyet Yun
Chairman of the Board – Tan Sri Datuk Ling Chiong Ho

Having the positions of Chairman of the Board and that of the Audit and Risk Management Committee respectively assumed
by different persons allows the Board to objectively review the Audit and Risk Management Committee’s findings and
recommendations.

Risk Management and Internal Control

The Statement on Risk Management and Internal Control is set out on page 71 to 74 of the Annual Report.
66 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

CORPORATE GOVERNANCE OVERVIEW STATEMENT

(Cont’d)

Former Key Audit Partner

The Group recognises the importance of the independence of its External Auditors and that no possible conflict of interest
whatsoever should arise.

The Terms of Reference of the Audit and Risk Management Committee of the Group had included a cooling off period of least
three (3) years before a former audit partner is being appointed as a member of the Audit Committee.

The Terms of Reference of the Audit and Risk Management Committee is available on the Group’s website at www.
shinyanggroup.com.my.

Currently, none of the members of the Audit and Risk Management Committee is a former key audit partner of the Company.

Relationship with Auditors

Through the Audit and Risk Management Committee, the Group maintains a formal and transparent professional relationship
with the internal and external auditors in seeking professional advice and ensuring compliance with the accounting standards
in Malaysia. The Audit and Risk Management Committee meets with the external auditors at least once a year to review audit
plans and memorandum and to facilitate exchange of view on issues requiring attention. Key features of the Audit and Risk
Management Committee’s Term of Reference are set out from page 75 to 78 of the Annual Report.

As required by Paragraph 15.23 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the External
Auditors have reviewed this Statement and reported to the Board that nothing has come to their attention that cause them to
believe that the statement intended to be included in the Annual Report of the Group, in all material respects: has not been
prepared in accordance with the disclosures required by paragraphs 41 and 42 of the Statement on Risk Management and
Internal Control: Guidelines for Directors of Listed Issuers, or is factually inaccurate.

PRINCIPLES C – INTERGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP WITH STAKEHOLDERS

Financial Reporting

The Board aims to present a balanced, meaningful assessment of the Group’s financial position and prospects primarily
through its Annual Report and quarterly interim financial results. In the process of preparing these financial statements,
the Board, with the assistance of the Audit and Risk Management Committee, has reviewed the accounting policies and
practices to ensure that they are consistently applied throughout the financial year. In cases where judgment and estimates
were made, they were based on reasonableness and prudence. The financial statements have been prepared in conformity
with the applicable approved accounting standards. The Company announces its quarterly and full year results within the
mandatory period.

The Statement by Directors pursuant to the Companies Act 2016 is set out on page 79 of this Report.

Ensure timely and high quality disclosure

The Board recognises the importance of timely dissemination of accurate information pertaining to the Group’s business
activities and financial performance to its shareholders, investors and other stakeholders.

The Group’s financial results, announcements, annual report and circulars can be accessed from the Bursa Malaysia Securities
Berhad’s website at www.bursamalaysia.com. In addition, shareholders and investors may also access other information
about the Group via the Company’s corporate website at www.shinyanggroup.com.my.

Communication with Shareholders and Investors

The Group recognizes the importance of effective and timely communication with shareholders and investors to keep them
informed on the Group’s latest business and corporate developments. Such information is disseminated via the Company’s
quarterly financial results, the various announcements, annual reports, circulars to shareholders made from time to time and
notices of general meeting. The policy of the Group is to maintain an active dialogue with its shareholders with the intention
of giving shareholders at clear and precise picture of the Group’s performance and position.

The Group Managing Director and Chief Operating Officer cum Company Secretary hold dialogues with the institutional
investors and presentations to analysts to keep them updated on the Group’s performance, business expansion plans and
other matters related to the shareholders’ interest.
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 67
(Formerly known as Shin Yang Shipping Corporation Berhad)

CORPORATE GOVERNANCE OVERVIEW STATEMENT

(Cont’d)

The Group’s Annual General Meeting (“AGM”) is the principal avenue for dialogue and interaction with the shareholders.
At the AGM, the shareholders are encouraged to ask questions both about the resolutions being proposed and about the
Group’s operations in general. Where it is not possible to provide immediate answers, the Chairman will undertake to furnish
the shareholders with a written answer after the AGM. The Chairman of the Board also addresses the shareholders on the
review of the Group’s operation for the financial year and outlines the prospect of the Group for the subsequent financial year
in the Chairman’s statement on page 17 to 20. Resolutions tabled and passed at the AGM are released to Bursa Malaysia on
the same day to enable the public to be promptly informed of the outcome.

All resolutions put forth for the shareholders’ approval at AGM are voted by poll. A scrutineer is engaged to facilitate counting
and independent verification of votes.

The Group’s website, www.shinyanggroup.com.my allows all of the shareholders and investors to gain access to information
about the Group.

At all times, investors and shareholders may contact the Company Secretary for more information on the Group.

Corporate Governance Report

Pursuant to paragraph 15.25(2) of the Listing Requirement, the Corporate Governance Report which discloses the application
of each Practice of the MCCG by the Group in the format prescribed by Bursa Malaysia is available at the Group’s website,
www.shinyanggrouop.com.my

This Corporate Governance Overview Statement is made in accordance with a resolution of the Board dated 20 October
2023.

ADDITIONAL COMPLIANCE INFORMATION

i) Shares Buy-back

During the financial year ended 30 June 2023, the Company bought back 12,715,000 shares from the open market as
follows:

Month of Purchase Total number Total Purchase Highest Price Lowest Price Average Price
Of Shares Consideration Paid (RM) Paid (RM) Paid (RM)
Purchased (RM)
July 2022 580,000 231,250.00 0.420 0.380 0.399
August 2022 550,000 251,550.00 0.520 0.410 0.457
September 2022 700,000 500,750.00 0.775 0.630 0.715
October 2022 530,000 381,300.00 0.800 0.680 0.719
November 2022 510,000 379,850.00 0.760 0.735 0.745
December 2022 1,990,000 1,523,700.00 0.835 0.740 0.332
January 2023 1,350,000 986,950.00 0.765 0.710 0.731
February 2023 1,505,000 1,010,225.00 0.735 0.650 0.671
March 2023 1,740,000 1,009,750.00 0.660 0.525 0.580
April 2023 1,230,000 740,750.00 0.680 0.545 0.602
May 2023 1,110,000 617,900.00 0.600 0.530 0.557
June 2023 920,000 569,850.00 0.645 0.605 0.619
TOTAL 12,715,000 8,203,825.00 0.835 0.380 0.645

All of the shares purchased by the Company were retained as treasury shares. There were no treasury shares resold
or cancelled during the financial year. As at 30 June 2023, a total of 64,169,700 shares were held as treasury shares.
68 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

CORPORATE GOVERNANCE OVERVIEW STATEMENT

(Cont’d)

ii) Imposition of Sanction and / or Penalties

There were no sanctions and/or penalties on the Company or its subsidiaries, directors or management by the relevant
regulatory bodies during the financial year ended 30 June 2023.

iii) Non-Audit Fees

The amount of non-audit fees paid to the external auditor by the Company and its subsidiaries during the financial
year ended 30 June 2023 amounted to RM83,100 for the professional services rendered as follows:

Company Review of Internal Tax Fee (RM) Total (RM)

Control System (RM)
Shin Yang Group Berhad 5,000 4,000 9,000
Its subsidiaries - 74,100 74,100
Total (RM) 5,000 78,100 83,100

iv) Variation of Results

There were no material variances between the audited results of the financial year ended 30 June 2023 and the
announced unaudited results.

v) Profit Guarantee

There were no profit guarantees given by the Company and its subsidiaries.

vi) Revaluation Policy

The Group does not adopt a policy of regular revaluation.

vii) Share Options Offered to Non-Executive Directors

There were no share options granted during the financial year ended 30 June 2023.

viii) Utilisation of Rights Issue Proceeds

There were no rights issue proceeds during the financial year ended 30 June 2023.

ix) Recurrent Related Party Transactions of a Revenue or Trading Nature (“RRPT”)

The RRPT entered into by the Group during the financial year ended 30 June 2023 were as follows:

Manner of relationship in Financial

the Related Parties Year Ended
Nature of Director Major 30 June
transaction with Shareholder 2023
Name of Related the Related Business Activities of Related Actual
Parties Parties Parties (RM’000)
Shin Yang Holding Sdn Bhd and Companies related to Shin Yang Holding Sdn Bhd
1. Shin Yang Provision of Hypermarket and departmental store, Yes Yes 147,323
Holding shipping services hotel business, property developing,
Group (1) by the Group wood-based products manufacturing,
research & development of wood
products, reforestation and oil
palm operations, quarry operation,
construction and engineering,
transportation services and
logistics, parts & hardware supplies,
agriculture, glue manufacturing,
plastic manufacturing, sales of marine
equipment and electrical engineering
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 69
(Formerly known as Shin Yang Shipping Corporation Berhad)

CORPORATE GOVERNANCE OVERVIEW STATEMENT

(Cont’d)

Manner of relationship in Financial

the Related Parties Year Ended
Nature of Director Major 30 June
transaction with Shareholder 2023
Name of Related the Related Business Activities of Related Actual
Parties Parties Parties (RM’000)
2. Shin Yang Provision of Reforestation and wood-based Yes Yes 2,435
Holding fabrication products manufacturing, quarry
Group (1) services by the operation, construction and
Group engineering, transportation services
and logistics, and parts & hardware
supplies.
3. Shin Yang Provision of Reforestation and wood-based Yes Yes 2,435
Holding fabrication products manufacturing, quarry
Group (1) services by the operation, construction and
Group engineering, transportation services
and logistics, and parts & hardware
supplies.
4. Shin Yang Purchase of Trading house, construction and Yes Yes 17,534
Holding marine hardware engineering, and transportation and
Group (1) supplies and haulage service
spare parts by
the Group
5. Shin Yang Rental of Investment and properties holding, Yes Yes 1,062
Holding properties by the wood based products manufacturing,
Group (1) Group quarry operation and construction &
engineering
6. Shin Yang Purchase of Investment holding, transportation Yes Yes 1,694
Holding transportation and haulage services, provision of bus
Group (1) services services for the Group’s employees as
and hotel well as ticketing agents and provision
accommodation of hotel accommodation
by the Group
7. Shin Yang Purchase of trading house Yes Yes 9,525
Holding diesel and
Group (1) and bunker by the
Shin Yang Group
Services Sdn
Bhd (2)
Companies connected to the Directors or Person Connected to the Directors
8. Ling Family Provision of Equipment and machinery supplies, Yes Yes 14,236
Group (3) shipping services tyre retreading, oil palm plantation,
by the Group wet market supply in hypermarket,
construction and engineering, trading
of scrap metal and hydraulic hose
supplies
9. Ling Family Provision of Equipment and machinery supplies, Yes Yes 209
Group (3) fabrication tyre retreading and trading of scrap
services by the metal
Group
10. Ling Family Provision of gas Equipment and machinery supplies, Yes Yes 312
Group (3) services by the tyre retreading, oil palm plantation and
Group trading of scrap metal
70 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

CORPORATE GOVERNANCE OVERVIEW STATEMENT

(Cont’d)

Manner of relationship in Financial

the Related Parties Year Ended
Nature of Director Major 30 June
transaction with Shareholder 2023
Name of Related the Related Business Activities of Related Actual
Parties Parties Parties (RM’000)
11. Ling Family Purchase of Ration supplier, trading house, Yes Yes 4,933
Group (3) marine hardware workshop operation and trading of
supplies and scrap metal.
spare parts by
the Group
12. Ling Family Rental of Provision of berthing facilities and Yes Yes 42
Group (3) property by the letting of properties
Group
13. Ling Family Purchase of Public transportation and provision Yes Yes 11
Group (3) transportation of hotel accommoanddation.
services and
accommodation
services by the
Group

Notes:-

(1)
Subsidiary companies of Shin Yang Holding Sdn Bhd, which Tan Sri Datuk Ling Chiong Ho, Ling Chiong Sing
and Ling Chiong Pin who are the Directors and Major Shareholders. Shin Yang Holding Sdn. Bhd. is the holding
company of Shin Yang Group Berhad.

(2)
Associated companies of Shin Yang Holding Group

(3)
Companies in which Tan Sri Datuk Ling Chiong Ho, Ling Chiong Sing, Ling Chiong Pin, Ling Siu Chuo, Datuk
Ling Lu Kiong and Vincent Ling Lu Yew have substantial interests and / or directorships.

Oxygen & Acetylene plants under Piasau Gas

ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 71
(Formerly known as Shin Yang Shipping Corporation Berhad)

STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL

The Board affirms its commitment to maintain sound risk management practices and internal control system in the Group
to safeguard the shareholders’ investment and the assets of the Group. Pursuant to Paragraph 15.26 (b) of the Bursa
Malaysia Securities Berhad (“Bursa Securities”) Main Market Listing Requirements and guided by the “Statement on Risk
Management and Internal Control: Guidelines for Directors of Listed Issuers” (“the Guidelines”) as well as Practice 10.1 and
10.2 of the MCCG 2021, the Board is pleased to provide the following statement on risk management and internal control,
which outlines the nature and scope of internal controls of the Group during the financial year, ended 30 June 2023.

BOARD RESPONSIBILITY AND ACCOUNTABILITY

The Board acknowledges its responsibilities and are fully committed to maintaining a sound risk management practices and
internal control environment to safeguard the Shareholders’ investments and the Group’s assets. The Board has an overall
responsibility for the Group’s system of risk management and internal control and its effectiveness, as well as reviewing its
adequacy and integrity. The Group’s risk management process and system of internal control consists of financial controls,
operational and compliance controls and risk management to safeguard the shareholders’ investment and assets of the
Group.

In view of the limitations that are inherent in any system of risk management and internal control, our system is designed
to manage rather than eliminate the risk of failure to achieve corporate objectives. Therefore, the system can only provide
reasonable, but not absolute, assurance against any material misstatements, financial losses, defalcations or fraud. The
Board continuously evaluates appropriate measures to strengthen the transparency and efficiency of its operations taking
into account of the requirements for sound and appropriate internal control and management information system of the
Group.

The Board is of the view that the risk management and internal control system in place for the year under review and up to
the date of issuance of the financial statements is adequate and effective to safeguard the shareholders’ investment, the
interests of customers, regulators, employees and the Group’s assets.

The Board, through its Audit and Risk Management Committee (“ARMC”) has established an ongoing process for identifying,
evaluating, and managing the significant risks faced by the Group and this process includes enhancing the risk management
and internal control system as and when there are changes to the business environment and regulatory requirements. The
process is reviewed by the Board and the ARMC on a periodic basis.

The Management assists the Board in the implementation of the Board’s policies and procedures on risk and control by
identifying and assessing the risks faced by the Group, and also in the design and operation of suitable internal controls to
mitigate these risks identified.

The effectiveness of internal controls was reviewed by the ARMC in relation to the audits conducted by the internal auditors
(“IA”) during the financial year. Audit issues and actions taken by the Management to address the issues tabled by IA were
deliberated during the ARMC meetings. Minutes of the ARMC meetings which recorded these deliberations were presented
to the Board.

Internal control and risk-related matters which warranted the attention of the Board were recommended by the ARMC to the
Board for its deliberation and approval and matters or decisions made within the ARMC’s purview were referred to the Board
for its notation.

MANAGEMENT RESPONSIBILITY

The Management assists the Board in the implementation of the Board’s policies and procedures on risk and control by
identifying, assessing, monitoring and reporting risk and internal control, as well as taking proper actions to address such
risks. The Management has further assured the Board that the Group’s risk management and internal control system is
operating adequately and effectively in all material aspects.
72 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL

(Cont’d)

KEY COMPONENTS OF INTERNAL CONTROL ENVIRONMENT

Risk Management Framework

The Board has made risk assessments an on-going exercise to effectively identify, evaluate, manage and review any
changes in the risks faced by the businesses in the Group. The significant risks encountered by the Company are managed
in accordance to the Guidance for Directors of Public Listed Companies on Statement on Risk Management and Internal
Control. The risk management process involves all business and functional units of the Group identifying significant risks
which impact the achievement of business objectives of the Group. The Group has established procedures for reporting and
monitoring of risks and controls. Regular reviews are conducted with additional procedures to be carried out as and when
required.

The Audit and Risk Management Committee has been delegated to oversee the risk management activities and to approve
appropriate risk management procedures and measurement methodologies for the Group.

The Group’s risk management framework is set out in the diagram below:-

- Oversee the overall risk management and internal control framework

- Review the adequacy and effectiveness of the system
Board

Audit - Monitoring the discharge of roles and responsibilities of the Risk

and Risk Management Team
Management - Evaluating the adequacy of the Group’s risk management and internal
Committee control framework

- Assessment and consolidation of department risk registry prior to

Risk
update Group’s Risk Register.
Management
-Monitoring risk profile and risk tolerance of the Group
Team
- Developing appropriate strategies and plans to mitigate material risks

- Day to day risk management decisions

Head of
- Adoption of the risk and specialist risk frameworks
Department(s)
- Coordinate with Risk Management Team on implementation of risk
manageement policy and practices

Risk Management Process

Establish the Context

Risk Iden�fica�on
Communica�on and Consulta�on

Risk Assessment

Monitor and Review

Risk Analysis

Risk Evalua�on

Risk Treatment
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 73
(Formerly known as Shin Yang Shipping Corporation Berhad)

STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL

(Cont’d)

A summary of the risk management procedures undertaken under the structure of the Group’s Risk Management Framework
is summarised as follows:

i) Risk Identification
ii) Risk Evaluation
iii) Risk Mitigation and
iv) Risk Monitoring and Reporting

The Board recognises the importance of Enterprise Risk Management (“ERM”) in enhancing shareholder value while
upholding a high standard of corporate governance. Combining a strong and sustained commitment from the Board and
Senior Management with a clear direction and oversight from all levels of leadership, the Group embraces a holistic risk
management approach to achieve its business targets with minimal surprises.

The Board continues to ensure that risk management is effectively institutionalised and its risk maturity level is elevated. This
is achieved via a multitude of ERM initiatives clustered into key strategic areas as part of the Group’s efforts to ensure smooth
ERM practice on the ground coupled with continuous tracking and monitoring of risks and controls. It also strengthens its risk
culture and practice, harmonise its risks and risk appetites at the operational level wherever possible.

OTHER KEY COMPONENTS OF INTERNAL CONTROL ENVIRONMENT

Review of the Statement by External Auditors

The external auditors have reviewed this Statement on Risk Management and Internal Control pursuant to the scope set
out in Audit and Assurance Practice Guide 3, Guidance for Auditors on Engagements to Report on the Statement on Risk
Management and Internal Control included in the Annual Report (“AAPG3”) issued by the Malaysian Institute of Accountants
(“MIA”) for inclusion in the Annual Report of the Group for the year ended 30 June 2023, and reported to the Board that
nothing has come to their attention that cause them to believe that the statement intended to be included in the Annual Report
of the Group, in all material respects: has not been prepared in accordance with the disclosures required by paragraphs 41
and 42 of the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers, or is factually
inaccurate.

AAPG3 does not require the external auditors to consider whether the Directors’ Statement on Risk Management and Internal
Control covers all risks and controls, or to form an opinion on the adequacy and effectiveness of the Group’s risk management
and internal control system including the assessment and opinion by the Directors and Management thereon. The report from
the external auditor was made solely for, and directed solely to the Board in connection with their compliance with the listing
requirements of Bursa Malaysia Securities Berhad and for no other purposes or parties. The external auditors do not assume
responsibility to any person other than the Board of Directors in respect of any aspect of this report.

Board Meeting

The Board meets at least quarterly and has a formal agenda on matters for discussion and approval. Presentation of board
papers, comprehensive explanation and feedback from the board members are the prerequisites to arriving at an informed
decision. In addition, the Board is kept updated on the Group’s activities and operations on a regular basis.

Organisational Structure with Defined Responsibility and Authority

We have in place an organisational structure with defined responsibility lines and authority to facilitate response to changes
in the business environment and accountability for operational performance. Capital and non-capital expenditures and
acquisition and disposal of investment interests are subject to appropriate approval processes and evaluations.

Performance Management Framework

We generate comprehensive management reports on a regular and consistent basis and present to the Board for its review.
The review encompasses financial and non-financial key performance indicators, operation progress and performance report.

We also have business planning and a budgetary system in place to manage performance of the business activities and
measure actual performance against set targets on a periodic basis.
74 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL

(Cont’d)

Operational Policies and Procedures

The documented policies and procedures form an integral control system to safeguard the Group’s assets against material
losses and to ensure completeness and accuracy of financial information. The documents consist of memorandum, circulars
and letters, which are continuously being revised and updated to meet operational needs.

Internal Control

The Internal Audit (“IA”) provides independent assessment on the effectiveness and efficiency of internal controls to support
the corporate governance framework and to assist the Group in enhancing its existing risk management framework.

The IA reports regularly on the internal control system and the effectiveness of the risk management system of the Group in
its quarterly reports to Audit and Risk Management Committee (“ARMC”)

The IA reviews compliance with policies and procedures and advises executive and operational management areas for
improvement and subsequently reviews the extent to which its recommendations have been implemented. The IA also
conducts a follow up review on the implementations status of action plans agreed by the Management.

The IA focuses on high priority activities determined by the risk assessment and in accordance with the audit planning
memorandum approved by the ARMC.

The IA is free from any relationships or conflict of interest, which could impair its objectivity and independence.

Quality Assurance

The IA develops and maintains a quality assurance and improvement programme that covers all aspects of internal audit
activities. The quality assurance programme assesses the effectiveness of IA processes and identifies opportunities for
improvement via both internal and external assessments. It has its own peer reviewer mechanism to ensure consistently good
quality output of every audit engagement. The team leader is well experienced to manage the internal audit assignments.

Information and Communication

While the Management has full responsibility in ensuring the effectiveness of internal control, which it establishes, the Board
of Directors has the authority to assess the state of internal control as it deems necessary. In doing so, the Board has the right
to enquire information and clarification from the Management as well as to seek inputs from the ARMC, external and internal
auditors, and other experts at the expense of the Company.

Assurance from the Management

The Board has received assurance from the Group Managing Director and Chief Executive Officer that the Group’s risk
management and internal control system is operating adequately and effectively, in all material aspects, based on the risk
management practices and internal control system of the Group.

Audit and Risk Management Committee

The Audit and Risk Management Committee reviews the adequacy and effectiveness of the Group’s systems of internal
control as well as reviews issues identified by the internal auditors. The ARMC also ensures that there is a continuous effort
by the Management to address and resolve areas where weaknesses exist.

All audit findings, recommendations and management actions are rigorously deliberated upon during ARMC meetings before
reporting to the Board. Quarterly reports to the ARMC track the progress towards completion of all corrective actions taken
on issues highlighted by the Group Internal Audit.

The ARMC reviews the quarterly results of the Group and if satisfied, recommends adoption of such results to the Board.

Conclusion

The Board is also cognisant of the fact that the Group’s system of internal control and risk management practices must
continuously evolve to meet the changing and challenging business environment. Continuous management efforts are in
place to further enhance the Group’s system of internal control and risk management framework. There was no major internal
control weakness identified during the year under review that may result in any material loss or uncertainty to the Group.

This Statement on Risk Management and Internal Control was made in accordance with a resolution of the Board on 20
October 2023.
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 75
(Formerly known as Shin Yang Shipping Corporation Berhad)

AUDIT AND RISK MANAGEMENT COMMITTEE REPORT

MEMBERS Yong Nyet Yun

Chairman and Independent Non –Executive Director

Jack Willien @ William Anak Jinep

Independent Non –Executive Director

Ling Siu Chuo

Non-Independent Non-Executive Director

Arshad Bin Zainuddin

Independent Non –Executive Director

TERMS OF REFERENCE The Committee was established in year 2010 and with effect from year 2020, it was renamed
as Audit and Risk Management Committee, to serve as a Committee of the Board, with the
terms of reference as set out below:

COMPOSITION OF THE • The Committee shall comprise of not less than three (3) members.
COMMITTEE • All members of the Committee must be Non-Executive Directors, with a majority of
independent Directors
• All members of the Committee should be financially literate and at least one member
of the Committee must be a member of Malaysian Institute of Accountants (‘MIA”).
The Chairman of Audit & Risk Management Committee is a member of Malaysian
Institute of Accountants, a Fellow member of CPA Australia and a member of
Chartered Tax Institute of Malaysia.
• No alternate director shall be appointed as a member of the Committee
• The Chairman who shall be elected by the members of the Committee must be an
Independent Non-Executive Director
• Any vacancy in the Committee resulting in non-compliance of the said requirements
must be filled within three (3) months
• No former key audit partner shall be appointed as a member of the Audit and Risk
Management Committee, unless he/she has observed a cooling-off period of at least
three (3) years before for such appointment.
• All members must possess sound judgement, objectivity, management experience,
integrity and knowledge of the industry.
• The term of office and performance of the Committee members shall be reviewed by
the Board at least once every three (3) years

DUTIES AND
RESPONSIBILITIES • Provide assistance to the Board of Directors in fulfilling its fiduciary responsibilities
relating to the corporate accounting practices for the Company and Group.
• Maintain a direct line of communication between the Board and the external and
internal auditors.
• Review and monitor to ensure that an adequate system of risk management for the
management to safeguard the Group’s assets and operations.
• Prepare reports, if the circumstances arise or at least once a year, to the Board
summarising the work performed in fulfilling the Committee’s primary responsibilities.
• Any other activities, as authorised by the Board.
• Act upon the Board’s request to direct and where appropriate supervise any special
projects or investigation considered necessary and review investigation reports on
any major issues with regard to the management of the Group.
• Report promptly to Bursa Securities Malaysia Berhad on any matter reported to
the Board, which has not been satisfactorily resolved resulting in a breach of Bursa
Malaysia Main Market Listing Requirement.
76 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

AUDIT AND RISK MANAGEMENT COMMITTEE REPORT

(Cont’d)

AUTHORITY • The Committee is authorised to seek any information it requires from employees,
who are required to co-operate with any request made by the Committee.
• The Committee shall have full and unlimited access to any information pertaining to
the Group as well as direct communication to the internal and external auditors and
with some senior management of the Group.
• The Committee shall have the resources that are required to perform its duties.
The Committee can obtain, at the expense of the Group, outside legal or other
independent professional advice, if it considers necessary.
• The Committee shall be able to convene meetings with external auditors, the internal
auditors or both, excluding the attendance of other directors and employees of the
Company, whenever deemed necessary.
• Where the Committee is of the view that the matter reported by it to the Board has
not been satisfactorily resolved resulting in breach of the Listing Requirements, the
Committee shall promptly report such matter to Bursa Securities.
the Board meeting to uphold an objective and independent discussion during the
meeting;
• The Secretary shall send notice to all Committee members prior to the meeting.
Minutes of each meeting shall be kept at the registered office of the Company and
circulated to all members in a timely manner;
• Minutes shall be confirmed at the following meeting of the Committee;
• No Director or employee shall attend any meeting of the Committee except at the
Audit and Risk Management Committee’s invitation, specific to the relevant meeting;
and
• Decisions of the Committee shall as far as possible be by consensus, failing which
the decision will be by a simple majority.

FINANCIAL PROCEDURE Review the quarterly results and the year end financial statements, prior to the approval of
AND FINANCIAL the Board, focusing particularly on:-
REPORTING • Any significant changes to accounting policies and practices;
• Significant adjustments arising from the audits;
• Compliance with accounting standards and other legal requirements; and
• Going concern assumption.

RELATED PARTY • Review the recurrent related party transactions of a revenue or trading nature
TRANSACTIONS (“RRPT”) entered into by the Company and the Group on a quarterly basis.
• Review the thresholds of the RRPTs to ensure compliance with the Main Listing
Requirements of Bursa Securities. Significant adjustments arising from the audits;
• Review the draft proposal to seek shareholders’ mandate for the Company and the
Group to enter into RRPTs.

AUDIT REPORTS • Prepare the annual Audit and Risk Management Committee report to the Board which
includes the composition of the Audit and Risk Management Committee, its terms
of reference, number of meetings held, a summary of its activities and the existence
of an Internal Audit unit and summary of the activities of that unit for inclusion in the
Annual Report; and
• Review the Board’s statements on compliance with the Malaysian Code of Corporate
Governance for inclusion in the Annual Report.

INTERNAL CONTROL • To consider annually the internal control system and risk management framework
adopted within the Group and to be satisfied that the methodology employed allows
identification, analysis, assessment, monitoring and communication of risks in a
regular and timely manner that will allow the Group to minimise losses and maximize
opportunities;
• To ensure that the system of internal control is soundly conceived and in place,
effectively administered and regularly monitored;
• To cause reviews to be made of the extent of compliance with established internal
policies, standards, plans and procedures;
• To obtain assurance that proper plans for control have been developed prior to the
commencement of major areas of change within the Group; and
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 77
(Formerly known as Shin Yang Shipping Corporation Berhad)

AUDIT AND RISK MANAGEMENT COMMITTEE REPORT

(Cont’d)

• To recommend to the Board steps to improve the system of internal control derived
from the findings of the internal and external auditors and from the consultations of
the Audit & Risk Management Committee itself.

INTERNAL AUDIT • Review and approve the yearly internal audit plan and audit programmes.
• Review the adequacy of the internal audit scope, functions, and resources of the
internal audit and that it has the necessary authority to carry out its works.
• Review the results of the internal audit and ensure that appropriate action is taken by
the management on the recommendations of the internal audits.
• Review the performance of the internal audit to ensure that they are able to exercise
independence in discharging their duties.
• Approve any appointment or termination of the staff members of the internal audit
functions.

EXTERNAL AUDIT • Review with the external auditors and approve the yearly external audit scope and
plan.
• Review the independence and objectivity of the external auditors and their services,
including non-audit services and professional fees, so as to ensure a proper balance
between objectivity and value for money.
• Review the external audit reports and to evaluate their findings and recommendations
for actions to be taken.
• Review the appointment and performance of external auditors, the audit fee and any
question of resignation or dismissal before making recommendation to the Board.

MEETING During the financial year ended 30 June 2023, five (5) committee meetings were held. A
record of the attendance to these meetings is as follows:

No of Meeting attended

Yong Nyet Yun 5/5

Arshad Bin Zainuddin 5/5

Jack Willien @ William Anak Jinep 5/5

Ling Siu Chuo 5/5

The Committee also met with the external auditors twice in the financial year without the
presence of the Management. Other directors and employees were invited to attend the
Committee meeting on a needed basis at the Committee’s invitation and specific to the
relevant meeting. Chairman of the Committee will report on key issues discussed at each
meeting to the Board.

INTERNAL AUDIT FUNCTION The Group formed its own Internal Audit Department. The Group Internal Audit Department
(“IAD”) is led by Ms Leh Sheng Sheng, the internal audit manager. She has extensive
knowledge and working experience in the internal audit filed with exposure to various
industries and Corporate Risk Management. She is supported by three (3) internal audit
assistants. The internal audit activities were reported

The Group formed its own Internal Audit Department. The Group Internal Audit Department
(“IAD”) is led by Ms Leh Sheng Sheng, the internal audit manager. She has extensive
knowledge and working experience in the internal audit filed with exposure to various
industries and Corporate Risk Management. She is supported by three (3) internal audit
assistants. The internal audit activities were reported directly to the Audit and Risk
Management Committee (“ARMC”) based on the approved annual Internal Audit Plan.
The approved annual Internal Audit Plan is designed to cover entities across all levels of
operations within the Group. In addition, the Internal Audit also conducts investigations
and special reviews at the request of management. Follow-up audits are then carried out
to determine whether corrective actions have been taken by the management.
78 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

AUDIT AND RISK MANAGEMENT COMMITTEE REPORT

(Cont’d)

During the year, The Internal Audit carried out audits and reviews covering the Group’s
operations as below:

1. Review effectiveness of Inventory Management

2. Review effectiveness of Purchasing and Procurement of Shinline Sdn Bhd
3. Review the internal control of account payable of Melinau Shipping Sdn Bhd
4. Special review on Profit margin analysis report for Cargo Handling Charge of Melinau
Shipping Sdn Bhd
5. Special review on Expenditure Analysis Report of Shin Yang Shipping Sdn Bhd
6. Review of workflow, process and policy procedures on Property, Plant and Equipment
Management
7. Follow up review on control & monitoring class, certificate, visa, permit, license on
shipping operation.

The Group incurred a total cost of RM 213,583.91 for its internal audit function for financial
year ended 30 June 2023.

ACTIVITIES The Committee carried out its duties in accordance with its terms and reference during the
year.

A summary of activities of the Committee during the year under review were as follows:
• Reviewed the quarterly financial results announcements before recommending for
the Board’s approval, focusing particularly on;
o The changes in or implementation of major accounting policy;
o The significant or unusual events;
o Compliance with accounting standards;
o Disclosure and other legal requirements
• Reviewed the related party transactions entered into by the Group and conflict of
interest situation that may arise.
• Reviewed the internal auditors’ scope of works and audit planning memorandum for
the year.
• Reviewed the internal auditors’ reports, which highlighted audit issues,
recommendations and management response.
• Reviewed the appointment of external auditors and their independence and
effectiveness.
• Reviewed the external auditors’ scope of works and audit plans for the year.
• Reviewed the audited financial statements of the Group with external auditor prior
submission to the Board for their consideration and approval, including issues and
findings noted in the course of the audit of the Group’s financial statement.
• Considered and recommended to the Board for approval the audit fees payable to
the external auditors.
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 79
(Formerly known as Shin Yang Shipping Corporation Berhad)

STATEMENT ON DIRECTORS’ RESPONSIBILITY

The Main Market Listing Requirements of Bursa Malaysia Securities Berhad requires the Directors to issue a statement
explaining their responsibility for preparing the Financial Statements.

The Directors are required by the Company Act 2016 to prepare financial statements which give a true and fair view of the
state of affairs of the Group and the Company as at the end of each financial year and of their results and their cash flows
for that year then ended.

In preparing the financial statements, the Directors have:-

• used appropriate accounting policies and are consistently applied;

• made reasonable and prudent judgments and estimates;
• ensured all applicable approved accounting standards in Malaysia, the provision of the Company Act 2016 and the
Listing Requirements of the Bursa Malaysia Securities Berhad have been followed; and
• prepared the financial statements on a going concern basis.

The Directors are responsible for ensuring that proper accounting records are maintained which disclose, with reasonable
accuracy the financial position of the Group and the Company, and which enable them to ensure that the financial statements
comply with the Act. The Directors have general responsibilities for taking such steps that are reasonably available to them to
safeguard the assets of the Group and the Company and to prevent and detect fraud and other irregularities.

This statement is made in accordance with the resolution of the Board of Directors dated 20 October 2023

Career Talk with students from Curtin University, jointly with CPA Australia

Container Department teambuilding gathering 2022

FINANCIAL
STATEMENT
81 Directors’ Report

88 Statement by Directors

88 Statutory Declaration

89 Independent Auditors’ Report

97 Statements of Financial Position

99 Statements of Profit or Loss and Other

Comprehensive Income

101 Statements of Changes in Equity

104 Statements of Cash Flows

108 Notes to the Financial Statements

Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 81
(Formerly known as Shin Yang Shipping Corporation Berhad)

SHIN YANG GROUP BERHAD

(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) DIRECTORS’ REPORT
DIRECTORS’ REPORT

The directors hereby submit their report and the audited financial statements of the Group and of the
Company for the financial year ended 30 June 2023.

PRINCIPAL ACTIVITIES

The Company is principally engaged in the business of investment holding and property holding. The
principal activities of the subsidiaries are set out in Note 7 to the financial statements. There have been no
significant changes in the nature of these activities during the financial year.

CHANGE OF NAME

On 4 July 2023, the Company changed its name from Shin Yang Shipping Corporation Berhad to Shin Yang
Group Berhad.

RESULTS

The Group The Company

RM RM

Profit after taxation for the financial year 182,604,669 35,865,321

----------------------------------- ----------------------------------------

Attributable to:-
Owners of the Company 180,922,574 35,865,321
Non-controlling interests 1,682,095 -
----------------------------------- ----------------------------------------
182,604,669 35,865,321
----------------------------------- ----------------------------------------

DIVIDENDS

The Company paid an interim dividend of 1.25 sen per ordinary share amounting to RM14,315,191 for the
financial year ended 30 June 2022 on 15 December 2022.

At the forthcoming Annual General Meeting, an interim dividend of 3.00 sen per ordinary share in respect of
the current financial year will be proposed for shareholders' approval. The financial statements for the current
financial year do not reflect this proposed dividend. Such dividend, if approved by the shareholders, will be
accounted for in the shareholders’ equity as appropriation of retained earnings in the financial year ending
30 June 2024.

Page 1
82 Registration No: 200401027554
SHIN YANG GROUP BERHAD (666062 – A) ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

SHIN YANG GROUP BERHAD

(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
DIRECTORS’
(Incorporated REPORT
in Malaysia)
(Cont’d)
DIRECTORS’ REPORT (CONT’D)

RESERVES AND PROVISIONS

There were no material transfers to or from reserves or provisions during the financial year other than those
disclosed in the financial statements.

ISSUES OF SHARES AND DEBENTURES

During the financial year:-

(a) there were no changes in the issued and paid-up share capital of the Company; and

(b) there were no issues of debentures by the Company.

TREASURY SHARES

During the financial year, the Company repurchased a total of 12,715,000 of its issued ordinary shares from
the open market for a total cost of RM8,204,425. The average cost paid for the shares repurchased during
the year was RM0.65 per share.

The shares repurchased are held as treasury shares in accordance with Section 127 of the Companies Act
2016. Of the total 1,200,000,000 issued and fully paid ordinary shares as at 30 June 2023, 64,169,700 are
held as treasury shares by the Company. As at 30 June 2023, the number of outstanding shares in issue
after the set-off is therefore 1,135,830,300 ordinary shares.

OPTIONS GRANTED OVER UNISSUED SHARES

During the financial year, no options were granted by the Company to any person to take up any unissued
shares in the Company.

BAD AND DOUBTFUL DEBTS

Before the financial statements of the Group and of the Company were made out, the directors took reasonable
steps to ascertain that action had been taken in relation to the writing off of bad debts and the making of
allowance for impairment losses on receivables and satisfied themselves that there are no known bad debts and
that adequate allowance had been made for impairment losses on receivables.

At the date of this report, the directors are not aware of any circumstances that would require the writing off of
bad debts, or the additional allowance for impairment losses on receivables in the financial statements of the
Group and of the Company.

Page 2
Registration
ANNUAL REPORTNo: 200401027554
2023 (666062 – A) SHIN YANG GROUP BERHAD 83
(Formerly known as Shin Yang Shipping Corporation Berhad)

SHIN YANG GROUP BERHAD

(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) DIRECTORS’ REPORT
(Cont’d)
DIRECTORS’ REPORT (CONT’D)

CURRENT ASSETS

Before the financial statements of the Group and of the Company were made out, the directors took reasonable
steps to ensure that any current assets, which were unlikely to be realised in the ordinary course of business,
including their value as shown in the accounting records of the Group and of the Company, have been written
down to an amount which they might be expected so to realise.

At the date of this report, the directors are not aware of any circumstances which would render the values
attributed to the current assets in the financial statements misleading.

VALUATION METHODS

At the date of this report, the directors are not aware of any circumstances which have arisen which render
adherence to the existing methods of valuation of assets or liabilities of the Group and of the Company
misleading or inappropriate.

CONTINGENT AND OTHER LIABILITIES

At the date of this report, there does not exist:-

(a) any charge on the assets of the Group and of the Company that has arisen since the end of the financial
year which secures the liabilities of any other person; or

(b) any contingent liability of the Group and of the Company which has arisen since the end of the financial
year.

No contingent or other liability of the Group and of the Company has become enforceable or is likely to become
enforceable within the period of twelve months after the end of the financial year which, in the opinion of the
directors, will or may substantially affect the ability of the Group and of the Company to meet their obligations
when they fall due.

CHANGE OF CIRCUMSTANCES

At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report
or the financial statements of the Group and of the Company which would render any amount stated in the
financial statements misleading.

Page 3
84 Registration No: 200401027554
SHIN YANG GROUP BERHAD (666062 – A) ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

SHIN YANG GROUP BERHAD

(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
DIRECTORS’ REPORT
(Incorporated in Malaysia)
(Cont’d)
DIRECTORS’ REPORT (CONT’D)

ITEMS OF AN UNUSUAL NATURE

The results of the operations of the Group and of the Company during the financial year were not, in the opinion
of the directors, substantially affected by any item, transaction or event of a material and unusual nature.

There has not arisen in the interval between the end of the financial year and the date of this report any item,
transaction or event of a material and unusual nature likely, in the opinion of the directors, to affect substantially
the results of the operations of the Group and of the Company for the financial year in which this report is made.

DIRECTORS

The names of directors of the Company who served during the financial year and up to the date of this report
are as follows:-

Tan Sri Datuk Ling Chiong Ho **

Ling Chiong Sing **
Ling Chiong Pin **
Ling Siu Chuo
Vincent Ling Lu Yew **
Arshad Bin Zainuddin
Datuk Ling Lu Kiong **
Jack Willien @ William Anak Jinep **
Yong Nyet Yun

** These Directors are also Directors of the Company’s subsidiaries.

The names of directors of the Company’s subsidiaries who served during the financial year and up to the
date of this report, not including those directors mentioned above, are as follows:-

Dennis Ling Lu Jing

Ling Lu Kuang
Tan Yeow Cheok
Tang Tiong Ing
Hou Siu Kee
Hong King Siang (Deceased on 11.1.2023)
Gary Tan Yow Hoo
Ting Hien Liong
Hou Su Ee (Alternate Director to Hou Siu Kee)
Hong Kwang Meng (Appointed on 11.1.2023)
Lau Sie Ping
Alfred Ling Lu Khiing (Resigned on 9.6.2023)
Ngu Chee Sing
Loretta Jane Lau Mei Nah
Lawrence Bin Ara
Azman Bin Sulaiman
Kong Lee Luang (Resigned on 1.8.2022)
Pui Voon Poh (Resigned on 1.8.2022)

Page 4
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 85
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) DIRECTORS’ REPORT
(Cont’d)
DIRECTORS’ REPORT (CONT’D)

DIRECTORS’ INTERESTS

According to the register of directors’ shareholdings, the interests of directors holding office at the end of the
financial year in shares of the Company and its related corporations during the financial year are as follows:-

Number of Ordinary Shares

At At
1.7.2022 Bought Sold 30.6.2023
Ordinary Shares in the Holding Company,
Shin Yang Holding Sendirian Berhad
Direct Interests
Tan Sri Datuk Ling Chiong Ho 6,250,000 - - 6,250,000
Ling Chiong Sing 6,250,000 - - 6,250,000
Ling Chiong Pin 6,250,000 - - 6,250,000

Ordinary Shares in the Company

Direct Interests
Tan Sri Datuk Ling Chiong Ho 34,802,669 - - 34,802,669
Ling Chiong Sing 34,802,669 - - 34,802,669
Ling Chiong Pin 34,802,668 - - 34,802,668
Vincent Ling Lu Yew 100,000 - - 100,000
Ling Siu Chuo 36,000,009 - - 36,000,009
Datuk Ling Lu Kiong 100,000 - - 100,000
Yong Nyet Yun 100,000 - - 100,000
Jack Willien @ William Anak Jinep - 87,000 - 87,000
Arshad Bin Zainuddin - 5,000 - 5,000

Deemed interest through Holding Company

Direct Interests
Tan Sri Datuk Ling Chiong Ho 660,412,796 - - 660,412,796
Ling Chiong Sing 660,412,796 - - 660,412,796
Ling Chiong Pin 660,412,796 - - 660,412,796

By virtue of their shareholdings in the holding company and the Company, Tan Sri Datuk Ling Chiong Ho,
Ling Chiong Sing and Ling Chiong Pin are deemed to have interests in shares in its related corporations
during the financial year to the extent the holding company and the Company have interests, in accordance
with Section 8 of the Companies Act 2016.

The Company has been granted exemption by the Companies Commission of Malaysia from having to
disclose the direct interests of Tan Sri Datuk Ling Chiong Ho, Ling Chiong Sing and Ling Chiong Pin in
subsidiaries of Shin Yang Holding Sendirian Berhad other than Shin Yang Group Berhad (formerly known
as Shin Yang Shipping Coporation Berhad) and its subsidiaries.

Page 5
86 Registration No: 200401027554
SHIN YANG GROUP BERHAD (666062 – A) ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
DIRECTORS’ REPORT
(Incorporated in Malaysia)
(Cont’d)
DIRECTORS’ REPORT (CONT’D)

DIRECTORS’ BENEFITS
Since the end of the previous financial year, no director has received or become entitled to receive any benefit
(other than directors’ remuneration as disclosed in the “Directors’ Remuneration” of this report) by reason of a
contract made by the Company or a related corporation with the director or with a firm of which the director is a
member, or with a company in which the director has a substantial financial interest except for any benefits
which may be deemed to arise from transactions entered into in the ordinary course of business with companies
in which certain directors have substantial financial interests as disclosed in Note 41(b) to the financial
statements.

Neither during nor at the end of the financial year was the Group or the Company a party to any arrangements
whose object is to enable the directors to acquire benefits by means of the acquisition of shares in or debentures
of the Company or any other body corporate.

DIRECTORS’ REMUNERATION

The details of the directors’ remuneration paid or payable to the directors of the Company during the financial
year are as follows:-

The The
Group Company
RM RM

Fees 124,000 124,000

Salaries, bonuses and other benefits 5,403,560 4,187,594
Defined contribution benefits 286,035 232,200
----------------------------------- -----------------------------------
5,813,595 4,543,794
----------------------------------- -----------------------------------

INDEMNITY AND INSURANCE COST

During the financial year, there is no indemnity given to or professional indemnity insurance effected for directors,
officers or auditors of the Company.

SUBSIDIARIES
The details of the Company’s subsidiaries are disclosed in Note 7 to the financial statements.

SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR

The significant events during the financial year are disclosed in Note 37.1 to the financial statements.

SIGNIFICANT EVENTS OCCURRING AFTER THE REPORTING PERIOD

The significant events occurring after the reporting period are disclosed in Note 37.2 to the financial
statements.

Page 6
Registration
ANNUAL REPORTNo: 200401027554
2023 (666062 – A) SHIN YANG GROUP BERHAD 87
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) DIRECTORS’ REPORT
(Cont’d)
DIRECTORS’ REPORT (CONT’D)

HOLDING COMPANY

The immediate and ultimate holding company is Shin Yang Holding Sendirian Berhad, a company
incorporated in Malaysia.

AUDITORS

The auditors, Crowe Malaysia PLT, have expressed their willingness to continue in office.

The details of the auditors’ remuneration for the financial year are as follows :-

The The
Group Company
RM RM

Audit fees 254,000 85,000

----------------------------------- -----------------------------------

Signed in accordance with a resolution of the directors dated 27 October 2023

Yong Nyet Yun

Director

Ling Siu Chuo

Director

Page 7
 Registration No: 200401027554 (666062 – A)

88 SHIN YANG GROUP BERHAD

SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia)

STATEMENT BY DIRECTORS
PURSUANT TO SECTION 251(2) OF THE COMPANIES ACT 2016

STATEMENT BY DIRECTORS
PURSUANT TO SECTION 251(2) OF THE COMPANIES ACT 2016

We, Yong Nyet Yun and Ling Siu Chuo, being two of the directors of Shin Yang Group Berhad (formerly
known as Shin Yang Shipping Corporation Berhad), state that, in the opinion of the directors, the financial
statements set out on pages 97 to 201 are drawn up in accordance with Malaysian Financial Reporting
Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in
Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as of
30 June 2023 and of their financial performance and cash flows for the financial year ended on that date.

Signed in accordance with a resolution of the directors dated 27 October 2023

Yong Nyet Yun Ling Siu Chuo

Director Director

STATUTORY DECLARATION
PURSUANT
STATUTORYTO DECLARATION
SECTION 251(1)(b) OF THE COMPANIES ACT 2016
PURSUANT TO SECTION 251(1)(b) OF THE COMPANIES ACT 2016

I, Richard Ling Peng Liing, MIA Membership Number: 9688, being the officer primarily responsible for the
financial management of Shin Yang Group Berhad (formerly known as Shin Yang Shipping Corporation
Berhad), do solemnly and sincerely declare that the financial statements set out on pages 97 to 201 are, to
the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing
the declaration to be true, and by virtue of the Statutory Declarations Act 1960.

Subscribed and solemnly declared by the above mentioned

Richard Ling Peng Liing
at Miri in the State of Sarawak
on 27 October 2023

Richard Ling Peng Liing

Before me
Datuk Lawrence Lai Yew Son
Commissioner For Oaths (No. Q025)
Lot 1155, 1st Floor,
Miri Waterfront Commercial Centre, Jalan Sri Dagang,
98000 Miri, Sarawak.

Page 8
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 89
(Formerly known as Shin Yang Shipping Corporation Berhad)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

OF SHIN YANG GROUP BERHAD INDEPENDENT AUDITORS’ REPORT
(FORMERLY KNOWN ASTOSHIN
THEYANG SHIPPING
MEMBERS CORPORATION
OF SHIN BERHAD)
YANG GROUP BERHAD (FORMERLY KNOWN AS
(Incorporated in Malaysia) SHIN YANG SHIPPING CORPORATION BERHAD)
Registration No: 200401027554 (666062-A) – 200401027554 (666062-A) (INCORPORATED IN MALAYSIA)

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Opinion

We have audited the financial statements of Shin Yang Group Berhad (formerly known as Shin Yang
Shipping Corporation Berhad), which comprise the statements of financial position as at 30 June 2023 of the
Group and of the Company, and the statements of profit or loss and other comprehensive income,
statements of changes in equity and statements of cash flows of the Group and of the Company for the
financial year then ended, and notes to the financial statements, including a summary of significant
accounting policies, as set out on pages 97 to 201.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of
the Group and of the Company as at 30 June 2023, and of their financial performance and their cash flows
for the financial year then ended in accordance with Malaysian Financial Reporting Standards, International
Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia.

Basis for Opinion

We conducted our audit in accordance with approved standards on auditing in Malaysia and International
Standards on Auditing. Our responsibilities under those standards are further described in the Auditors’
Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence and Other Ethical Responsibilities

We are independent of the Group and of the Company in accordance with the By-Laws (on Professional
Ethics, Conduct and Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International
Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including
International Independence Standards) (“IESBA Code”), and we have fulfilled our other ethical
responsibilities in accordance with the By-Laws and the IESBA Code.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial statements of the Group and of the Company for the current financial year. These
matters were addressed in the context of our audit of the financial statements of the Group and of the
Company as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.

Page 9
90 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

INDEPENDENT
OF SHIN YANG GROUPAUDITORS’
BERHAD REPORT
(FORMERLY KNOWN
TO THE MEMBERS OF SHINAS SHIN
YANG YANG
GROUP SHIPPING
BERHAD CORPORATION
(FORMERLY KNOWN AS BERHAD) (CONT’D)
SHIN YANG SHIPPING
(Incorporated CORPORATION BERHAD)
in Malaysia)
– 200401027554
Registration No:(666062-A) (666062-A)IN MALAYSIA) (Cont’d)
(INCORPORATED
200401027554

Key Audit Matters

Revenue Recognition
Refer to Note 32 in the financial statements
How our audit addressed the Key Audit
Key Audit Matter
Matter
(a) Revenue from freight, lighterage, charterage, Our procedures included, amongst others:-
hiring charges and transportation charges
▪ Checked the effectiveness of internal control
by performing walkthrough tests and test of
The Group’s revenue from freight, lighterage,
controls on revenue cycle with samples
charterage, hiring charges and transportation
documented on identified key controls.
charges is derived from a large volume of
transactions. During the financial year, the Group
▪ Tested samples of revenue and verified
recognised revenue of RM859.2 million from
them to underlying supporting documents to
freight, lighterage, charterage, hiring charges
ascertain whether revenue has been
and transportation charges, representing 91.4%
appropriately recognised.
of the Group’s revenue.
▪ Assessed whether revenue transactions
We identified revenue recognition of freight,
either side of the balance sheet date are
lighterage, charterage, hiring charges and
recognised in the correct period.
transportation charges as a key audit matter
because of the significance of revenue in the
▪ Assessed to material credit notes issued to
financial statements in amount.
the customers subsequent to reporting date.

Page 10
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 91
(Formerly known as Shin Yang Shipping Corporation Berhad)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

OF SHIN YANG GROUP BERAHD INDEPENDENT AUDITORS’ REPORT
(FORMERLY KNOWN AS SHIN YANG SHIPPING
TO THE MEMBERSCORPORATION BERHAD)
OF SHIN YANG GROUP BERHAD(CONT’D)
(FORMERLY KNOWN AS
(Incorporated in Malaysia) SHIN YANG SHIPPING CORPORATION BERHAD)
Registration No: 200401027554 (666062-A) – 200401027554 (666062-A) (INCORPORATED IN MALAYSIA) (Cont’d)

Key Audit Matters (Cont’d)

Impairment on Trade Receivables

Refer to Note 15 in the financial statements
How our audit addressed the Key Audit
Key Audit Matter
Matter
Our procedures included, amongst others:-
As at 30 June 2023, the Group’s trade
receivables were recorded at a gross amount of ▪ Reviewed the ageing analysis of receivables
RM192.4 million with an impairment allowance of and testing the reliability thereof.
RM35.0 million.
▪ Assessed the reasonableness of historical
The management has assessed the loss rate applied and understand and
recoverability of trade receivables by reviewing discussed the forward looking information
customers’ ageing profile, credit history and gathered by the management in relation to
trends, including status of subsequent the provision matrix and the application
settlement, and determine whether an thereof.
impairment allowance is required.
▪ Reviewed subsequent cash collections for
We identified impairment on trade receivables as major receivables and overdue amounts.
a key audit matter because of the significance of
trade receivables in the financial statements both ▪ Reviewed collections and sales trend during
in amount and nature, and the significant the financial year for major receivables.
judgement required for assessing the
recoverability of trade receivables. ▪ Evaluated the reasonableness and
adequacy of the allowance for impairment
recognised.

▪ Assessed the completeness, accuracy and

relevance of disclosure required by MFRS 7.

Page 11
92 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

INDEPENDENT
OF SHIN YANG GROUPAUDITORS’
BERHAD REPORT
(FORMERLY KNOWN
TO THE MEMBERS OF SHINAS SHIN
YANG YANG
GROUP SHIPPING
BERHAD CORPORATION
(FORMERLY KNOWN AS BERHAD) (CONT’D)
SHIN YANG SHIPPING
(Incorporated CORPORATION BERHAD)
in Malaysia)
– 200401027554
Registration No:(666062-A) (666062-A)IN MALAYSIA) (Cont’d)
(INCORPORATED
200401027554

Key Audit Matters (Cont’d)

Impairment Assessment on Investment in Subsidiaries (Separate financial statement of the

Company)
Refer to Note 7 in the financial statements
How our audit addressed the Key Audit
Key Audit Matter
Matter
Our procedures included, amongst others:-
As at 30 June 2023, the carrying amount of the
Company’s investment in subsidiaries amounted ▪ Evaluated the assessment of the indication
to RM1,096.6 million, being 88.8% of the of impairment loss.
Company’s total assets. With its significance in
value, the management is required to perform ▪ Evaluated the appropriateness of the
impairment assessment of its investment in impairment assessment methodology.
subsidiaries whenever there is an indication that
the investments may be impaired. ▪ Evaluated the assumptions applied in the
impairment assessment.
The management determined the recoverable
amounts of investments using the higher of value ▪ Assessed the objectivity, independence,
in use (“VIU”) and fair value less costs to sell reputation, experience and expertise of the
(“FV”) for the relevant investment. The fair value internal expert.
less costs to sell was determined by
management based on adjusted net tangible ▪ Checked the mathematical accuracy of
assets of the subsidiary. management’s computation of the fair value
less costs of disposal.
Given the significant risks and complexity
involved in estimating the recoverable amounts
of the investments, we have identified the above
requiring audit consideration.

Page 12
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 93
(Formerly known as Shin Yang Shipping Corporation Berhad)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

OF SHIN YANG GROUP BERHAD INDEPENDENT AUDITORS’ REPORT
(FORMERLY KNOWN AS SHIN YANG SHIPPING
TO THE MEMBERSCORPORATION BERHAD)
OF SHIN YANG GROUP BERHAD(CONT’D)
(FORMERLY KNOWN AS
(Incorporated in Malaysia) SHIN YANG SHIPPING CORPORATION BERHAD)
Registration No: 200401027554 (666062-A) – 200401027554 (666062-A) (INCORPORATED IN MALAYSIA) (Cont’d)

Key Audit Matters (Cont’d)

Purchase Price Allocation (“PPA”)

Refer to Note 37 in the financial statements
How our audit addressed the Key Audit
Key Audit Matter
Matter
Our procedures included, amongst others:-
On 6 July 2022, the Company acquired 100%
equity interests in Piasau Gas Sdn. Bhd. for a ▪ Assessed the competence, capabilities and
purchase consideration of RM22.8 million. The objectivity of management’s valuation
Company performed a PPA exercise for the expert.
acquisition, where the purchase consideration
was allocated to the fair value of the identifiable ▪ Obtained and received Share Sale
assets acquired and the liabilities assumed, Agreement; and identified critical terms with
resulting in a gain on bargain purchase of accounting impact, including the purchase
RM14.8 million on the business combination. consideration.

In the PPA exercise, management engaged ▪ Discussed with management and

independent valuers to perform the valuation of management’s valuation experts to obtain
the assets of Piasau Gas Sdn. Bhd. an understanding of the PPA exercise.

We focused on this area as the determination of ▪ Assessed the methodology applied in the
fair value of the identifiable assets acquired and PPA exercise, the key assumptions used
liabilities assumed, including the identification of and the appropriateness of the fair value in
intangible assets, required significant determining the valuation of intangible
management judgement in estimating the assets.
underlying assumptions applied.
▪ Evaluated the adequacy of the disclosures in
the financial statements.

Page 13
94 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

INDEPENDENT
OF SHIN YANG GROUP AUDITORS’
BERHAD REPORT
(FORMERLY KNOWN
TO THE MEMBERS OF SHINAS SHIN
YANG YANG
GROUP SHIPPING
BERHAD CORPORATION
(FORMERLY KNOWN AS BERHAD) (CONT’D)
SHIN YANG SHIPPING
(Incorporated CORPORATION BERHAD)
in Malaysia)
– 200401027554
Registration No:(666062-A) (666062-A)IN MALAYSIA) (Cont’d)
(INCORPORATED
200401027554

Information Other than the Financial Statements and Auditors’ Report Thereon

The directors of the Company are responsible for the other information. The other information comprises
the information included in the annual report, but does not include the financial statements of the Group
and of the Company and our auditors’ report thereon.

Our opinion on the financial statements of the Group and of the Company does not cover the other
information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements of the Group and of the Company, our
responsibility is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the financial statements of the Group and of the Company or our
knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Statements

The directors of the Company are responsible for the preparation of the financial statements of the
Group and of the Company that give a true and fair view in accordance with Malaysian Financial
Reporting Standards, International Financial Reporting Standards and the requirements of the
Companies Act 2016 in Malaysia. The directors are also responsible for such internal control as the
directors determine is necessary to enable the preparation of financial statements of the Group and of
the Company that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements of the Group and of the Company, the directors are responsible
for assessing the Group’s and the Company’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting unless
the directors either intend to liquidate the Group or the Company or to cease operations, or have no
realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements of the Group
and of the Company as a whole are free from material misstatement, whether due to fraud or error, and
to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with approved standards on auditing in
Malaysia and International Standards on Auditing will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.

Page 14
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 95
(Formerly known as Shin Yang Shipping Corporation Berhad)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

OF SHIN YANG GROUP BERHAD INDEPENDENT AUDITORS’ REPORT
(FORMERLY KNOWN AS SHIN YANG SHIPPING
TO THE MEMBERSCORPORATION BERHAD)
OF SHIN YANG GROUP BERHAD(CONT’D)
(FORMERLY KNOWN AS
(Incorporated in Malaysia) SHIN YANG SHIPPING CORPORATION BERHAD)
Registration No: 200401027554 (666062-A) – 200401027554 (666062-A) (INCORPORATED IN MALAYSIA) (Cont’d)

Auditor’s Responsibilities for the Audit of the Financial Statements (Cont’d)

As part of an audit in accordance with approved standards on auditing in Malaysia and International
Standards on Auditing, we exercise professional judgement and maintain professional scepticism
throughout the audit. We also:-

• Identify and assess the risks of material misstatement of the financial statements of the Group
and of the Company, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provid e
a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s and the Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.

• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Group’s or the Company’s ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditors’ report to the related disclosures in the financial statements of the Group
and of the Company or, if such disclosures are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of our auditors’ report. However, future
events or conditions may cause the Group or the Company to cease to continue as a go ing
concern.

• Evaluate the overall presentation, structure and content of the financial statements of the Group
and of the Company, including the disclosures, and whether the financial statements of the Group
and of the Company represent the underlying transactions and events in a manner that achieves
fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial statements of the Group.
We are responsible for the direction, supervision and performance of the group audit. We remain
solely responsible for our audit opinion.

We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.

Page 15
96 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

INDEPENDENT
OF SHIN YANG GROUPAUDITORS’
BERHAD REPORT
(FORMERLY KNOWN
TO THE MEMBERS OF SHINAS SHIPPING
YANG CORPORATION
GROUP BERHAD BERHAD)
(FORMERLY KNOWN AS (CONT’D)
(Incorporated in Malaysia)
SHIN YANG SHIPPING CORPORATION BERHAD)
Registration No:(666062-A)
– 200401027554 200401027554 (666062-A)IN MALAYSIA) (Cont’d)
(INCORPORATED

Auditor’s Responsibilities for the Audit of the Financial Statements (Cont’d)

We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate
threats or safeguards applied.

From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial statements of the Group and of the Company for the current
financial year and are therefore the key audit matters. We describe these matters in our auditors’ report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

In accordance with the requirements of the Companies Act 2016 in Malaysia, we report that the
subsidiaries of which we have not acted as auditors, are disclosed in Note 7 to the financial statements.

OTHER MATTERS

This report is made solely to the members of the Company, as a body, in accordance with Section 266
of the Companies Act 2016 in Malaysia and for no other purpose. We do not assume responsibility to
any other person for the content of this report.

Crowe Malaysia PLT Wong Chie Bin

201906000005 (LLP0018817-LCA) & AF 1018 00950/01/2024 J
Chartered Accountants Chartered Accountant

Miri, Sarawak
27 October 2023

Page 16
ANNUAL REPORT 2023
Registration No: 200401027554 (666062 – A)
SHIN YANG GROUP BERHAD 97
(Formerly known as Shin Yang Shipping Corporation Berhad)

SHIN YANG GROUP BERHAD

(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION
STATEMENTS OF FINANCIALBERHAD)
POSITION
(Incorporated in Malaysia)
AS AT 30 JUNE 2023
STATEMENTS OF FINANCIAL POSITION AS AT 30 JUNE 2023

The Group The Company

2023 2022 2023 2022
Note RM RM RM RM

ASSETS

NON-CURRENT ASSETS
Investment in subsidiaries 7 - - 1,096,570,082 1,073,773,582
Investment in associates 8 3,401,309 5,004,832 682,500 682,500
Property and equipment 9 931,364,581 953,682,808 48,211,051 48,951,121
Amount owing by subsidiaries 10 - - - 38,565,138
Other receivables 16 953,820 2,279,650 953,820 2,279,650
Other investments 11 58,800 58,800 - -
Goodwill 12 2,063,893 2,063,893 - -
Deferred tax assets 13 836,028 1,021,430 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
938,678,431 964,111,413 1,146,417,453 1,164,251,991
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

CURRENT ASSETS

Inventories 14 33,901,292 34,132,104 - -

Amount owing by subsidiaries 10 - - 3,582,158 -
Dividend receivable - - 36,155,000 -
Trade receivables 15 157,354,570 181,564,018 - -
Other receivables and deposits 16 25,714,420 19,125,351 682,643 1,825,500
Contract assets 17 2,089,683 2,455,328 - -
Current tax assets 3,565,404 3,651,202 - 87,964
Cash and bank balances 39 398,904,483 283,173,425 48,458,529 59,167,993
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
621,529,852 524,101,428 88,878,330 61,081,457
Non-current assets classified
as held for sale 19 11,185,276 - - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
632,715,128 524,101,428 88,878,330 61,081,457
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
TOTAL ASSETS 1,571,393,559 1,488,212,841 1,235,295,783 1,225,333,448
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

The annexed notes form an integral part of these financial statements. Page 17

The annexed notes form an integral part of these financial statements.

98 Registration
SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly knownNo: 200401027554
as Shin (666062
Yang Shipping Corporation – A)
Berhad)

SHIN YANG GROUP BERHAD

(FORMERLY KNOWN
STATEMENTS AS SHIN YANG
OF FINANCIAL SHIPPING CORPORATION BERHAD)
POSITION
(Incorporated
AS AT 30 JUNEin 2023
Malaysia)
(Cont’d)

STATEMENTS OF FINANCIAL POSITION AS AT 30 JUNE 2023 (CONT’D)

The Group The Company

2023 2022 2023 2022
Note RM RM RM RM

EQUITY AND LIABILITIES

EQUITY
Share capital 20 1,216,972,062 1,216,972,062 1,216,972,062 1,216,972,062
Treasury shares 21 (24,775,956) (16,571,531) (24,775,956) (16,571,531)
Retained profits 326,592,091 159,984,708 34,979,194 13,429,064
Other reserves 22 (297,861,069) (297,861,069) - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
Equity attributable to owners of
the Company 1,220,927,128 1,062,524,170 1,227,175,300 1,213,829,595
Non-controlling interests 4,560,128 4,378,033 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
TOTAL EQUITY 1,225,487,256 1,066,902,203 1,227,175,300 1,213,829,595
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

NON-CURRENT LIABILITIES
Lease liabilities 23 111,036 138,924 - -
Bank borrowings 24 36,449,748 50,296,503 4,119,644 5,554,141
Deferred tax liabilities 13 51,063,897 43,020,772 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
87,624,681 93,456,199 4,119,644 5,554,141
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

CURRENT LIABILITIES
Trade payables 29 107,902,587 128,323,886 - -
Contract liabilities 17 20,349,713 8,050,065 - -
Other payables and accruals 30 24,733,613 21,225,035 1,363,502 1,290,340
Amount owing to a subsidiary 10 - - 53,625 109,368
Provision for onerous contract 31 - 470,996 - -
Lease liabilities 23 238,521 286,879 - -
Bank borrowings 24 102,590,157 155,882,153 1,644,757 4,550,004
Current tax liabilities 2,094,551 12,713,287 938,955 -
Derivative liabilities 18 372,480 902,138 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
258,281,622 327,854,439 4,000,839 5,949,712
----------------------------------- ---------------------------------- ----------------------------------- -----------------------------------
TOTAL LIABILITIES 345,906,303 421,310,638 8,120,483 11,503,853
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
TOTAL EQUITY AND
LIABILITIES 1,571,393,559 1,488,212,841 1,235,295,783 1,225,333,448
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

The annexed notes form an integral part of these financial statements. Page 18

The annexed notes form an integral part of these financial statements.

Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 99
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) STATEMENTS OF PROFIT OR LOSS
AND
STATEMENTS OF PROFIT OR LOSS OTHER
AND OTHER COMPREHENSIVE
COMPREHENSIVE INCOME INCOME
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023 FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

The Group The Company

2023 2022 2023 2022
Note RM RM RM RM

REVENUE 32 939,604,368 893,457,583 45,277,530 25,574,210

COST OF SALES (731,191,095) (702,850,995) (1,915,723) (1,921,990)

----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
GROSS PROFIT 208,413,273 190,606,588 43,361,807 23,652,220

OTHER INCOME 34,524,060 9,355,595 21,920 364

FINANCE INCOME 7,985,882 3,587,142 1,546,780 944,445

ADMINISTRATIVE
EXPENSES (47,561,665) (33,617,568) (7,487,430) (3,614,759)

NET IMPAIRMENT LOSS

ON FINANCIAL ASSETS 33 (13,171,658) (9,961,505) - -

FINANCE COSTS (8,336,173) (9,083,720) (431,153) (497,993)

SHARE OF PROFITS OF
EQUITY ACCOUNTED
ASSOCIATES (1,593,773) 221,144 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
PROFIT BEFORE
TAXATION 34 180,259,946 151,107,676 37,011,924 20,484,277

INCOME TAX EXPENSE 35 2,344,723 (8,265,735) (1,146,603) (75,041)

----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
PROFIT AFTER
TAXATION, RE-PRESENTING
TOTAL COMPREHENSIVE
INCOME FOR THE FINANCIAL
YEAR 182,604,669 142,841,941 35,865,321 20,409,236
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

The annexed notes form an integral part of these financial statements. Page 19

The annexed notes form an integral part of these financial statements.

 Registration No: 200401027554 (666062 – A)
100 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia)
STATEMENTS OF PROFIT OR LOSS
AND OTHEROFCOMPREHENSIVE
STATEMENTS PROFIT OR LOSS ANDINCOME
OTHER COMPREHENSIVE INCOME (CONT’D)
FORTHE
FOR THEFINANCIAL
FINANCIAL YEAR
YEAR ENDED
ENDED 30 JUNE
30 JUNE 2023
2023 (Cont’d)

The Group The Company

2023 2022 2023 2022
Note RM RM RM RM

PROFIT AFTER
TAXATION
ATTRIBUTABLE TO:-
Owners of the Company: 180,922,574 141,922,475 35,865,321 20,409,236
Non-controlling interests 1,682,095 919,466 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
182,604,669 142,841,941 35,865,321 20,409,236
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

TOTAL COMPREHENSIVE
INCOME
ATTRIBUTABLE TO:-
Owners of the Company: 180,922,574 141,922,475 35,865,321 20,409,236
Non-controlling interests 1,682,095 919,466 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
182,604,669 142,841,941 35,865,321 20,409,236
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

EARNINGS PER
SHARE (SEN)
Basic 36 15.83 12.24
----------------------------------- -----------------------------------

The annexed notes form an integral part of these financial statements. Page 20

The annexed notes form an integral part of these financial statements.

STATEMENTS OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

Attributable
to Owners Non-
Share Treasury Other Retained of the controlling Total
Capital Shares Reserves Profits Company Interests Equity
Note RM RM RM RM RM RM RM
The Group

Balance at 1.7.2021 1,216,972,062 (8,983,427) (297,861,069) 18,062,233 928,189,799 6,399,339 934,589,138

Profit after taxation for the

financial year - - - 141,922,475 141,922,475 919,466 142,841,941
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1,216,972,062 (8,983,427) (297,861,069) 159,984,708 1,070,112,274 7,318,805 1,077,431,079
Acquisition of non-controlling
interests - - - - - 59,228 59,228
Contributions by and distributions
to owners of the Company:
- Purchase of treasury shares 21 - (7,588,104) - - (7,588,104) - (7,588,104)
- Dividends:
- by subsidiaries to non-
controlling interests - - - - - (3,000,000) (3,000,000)

Total transactions with owners - (7,588,104) - - (7,588,104) (3,000,000) (10,588,104)

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
ANNUAL REPORT 2023

Balance at 30.6.2022 1,216,972,062 (16,571,531) (297,861,069) 159,984,708 1,062,524,170 4,378,033 1,066,902,203

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The annexed notes form an integral part of these financial statements. Page 21
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD

The annexed notes form an integral part of these financial statements.

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023
STATEMENTS OF CHANGES IN EQUITY
101
STATEMENTS OF CHANGES IN EQUITY (CONT’D)
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023
102
Attributable
to Owners Non-
Share Treasury Other Retained of the controlling Total
Capital Shares Reserves Profits Company Interests Equity
Note RM RM RM RM RM RM RM
The Group
Balance at 1.7.2022 1,216,972,062 (16,571,531) (297,861,069) 159,984,708 1,062,524,170 4,378,033 1,066,902,203
SHIN YANG GROUP BERHAD

Profit after taxation for the

financial year - - - 180,922,574 180,922,574 1,682,095 182,604,669
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1,216,972,062 (16,571,531) (297,861,069) 340,907,282 1,243,446,744 6,060,128 1,249,506,872
Contributions by and
distributions to owners of
the Company:
- Purchase of treasury shares 21 - (8,204,425) - - (8,204,425) - (8,204,425)
(Formerly known as Shin Yang Shipping Corporation Berhad)

- Dividends:
- by the Company 38 - - - (14,315,191) (14,315,191) - (14,315,191)
- by subsidiaries to non-
controlling interests - - - - - (1,500,000) (1,500,000)

Total transactions with owners - (8,204,425) - (14,315,191) (22,519,616) (1,500,000) (24,019,616)

STATEMENTS OF CHANGES IN EQUITY

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023 (Cont’d)

Balance at 30.6.2023 1,216,972,062 (24,775,956) (297,861,069) 326,592,091 1,220,927,128 4,560,128 1,225,487,256

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The annexed notes form an integral part of these financial statements. Page 22

The annexed notes form an integral part of these financial statements.

ANNUAL REPORT 2023
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 103
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) STATEMENTS OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023 (Cont’d)
STATEMENTS OF CHANGES IN EQUITY (CONT’D)
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

(Accumulated
Losses)/
Share Treasury Retained Total
Capital Shares Profits Equity
Note RM RM RM RM
The Company

Balance at 1.7.2021 1,216,972,062 (8,983,427) (6,980,172) 1,201,008,463

Profit after taxation

for the financial year - - 20,409,236 20,409,236

Transactions with owners

Purchase of treasury shares 21 - (7,588,104) - (7,588,104)

------------------------------------------------------------------------------------------------------------------------------------------------------------
Balance at 30.6.2022/
1.7.2022 1,216,972,062 (16,571,531) 13,429,064 1,213,829,595

Profit after taxation

for the financial year - - 35,865,321 35,865,321

Transactions with owners

Purchase of treasury shares 21 - (8,204,425) - (8,204,425)

Dividend on ordinary shares 38 - - (14,315,191) (14,315,191)

Total transaction with owners - (8,204,425) (14,315,191) (22,519,616)

------------------------------------------------------------------------------------------------------------------------------------------------------------
Balance at 30.6.2023 1,216,972,062 (24,775,956) 34,979,194 1,227,175,300
------------------------------------------------------------------------------------------------------------------------------------------------------------

The annexed notes form an integral part of these financial statements. Page 23

The annexed notes form an integral part of these financial statements.

 Registration No: 200401027554 (666062 – A)
104 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia)
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH
FOR THE FINANCIAL FLOWS30 JUNE 2023
YEAR ENDED
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

The Group The Company

2023 2022 2023 2022
Note RM RM RM RM

CASH FLOWS FROM/(FOR)

OPERATING ACTIVITIES
Profit before taxation 180,259,946 151,107,676 37,011,924 20,484,277
Adjustments for:-
Depreciation:
- property and equipment 9 92,707,259 88,918,417 1,267,699 1,360,960
- right-of-use assets 9 2,143,579 1,859,448 - -
Dividend income (1,800) (1,200) (39,664,750) (21,993,250)
Fair value changes on
forward contracts (529,658) 800,213 - -
Fair value loss on investment
securities - 9,600 - -
Net gain on disposal of
property and equipment (12,878,121) (1,465,980) (20,000) (364)
Gain on lease modification - (176) - -
Gain on disposal of non-current
asset held for sale - (471,243) - -
Impairment loss:
- trade and other receivables 15,334,622 10,448,952 - -
- property and equipment 3,182,914 - - -
Interest expenses 8,336,173 9,083,720 431,153 497,993
Interest income (7,985,882) (3,587,142) (1,546,780) (944,445)
Gain on bargain purchase (14,819,789) (61,723) - -
Net changes in provision for
onerous contract (470,996) 109,547 -
Property and equipment written off 1,230 - - -
Reversal of impairment loss on
trade receivables (2,162,964) (487,447) - -
Reversal of inventories written off - - - -
Profit retained in associates 1,593,773 (221,144) - -
Unrealised loss/(gain) on foreign
exchange 2,237,674 (207,833) - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
Operating profit/(loss) before working
capital changes 266,947,960 255,833,685 (2,520,754) (594,829)

The annexed notes form an integral part of these financial statements. Page 24

The annexed notes form an integral part of these financial statements.

Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 105
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) STATEMENTS OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023 (Cont’d)
STATEMENTS OF CASH FLOWS (CONT’D)
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

The Group The Company

2023 2022 2023 2022
Note RM RM RM RM

Decrease in inventories 1,826,128 6,753,625 - -

Decrease/(Increase) in trade
and other receivables 19,462,303 (26,132,891) 2,478,437 (2,383,359)
(Decrease)/increase in trade
and other payables (19,305,264) (742,431) 73,162 247,035
Decrease in contract assets 365,645 1,051,131 - -
Increase/(decrease) in contract
liabilities 12,299,648 (3,584,660) - -
Increase in amount owing by
subsidiaries - - 34,982,980 17,453,285
(Decrease)/increase in amount owing to
a subsidiary - - (55,743) 109,368
Net change in related companies
balances (3,942,655) (6,202,290) - -
Net change in holding company
balances (85,684) 319,615 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
CASH FROM OPERATIONS 277,568,081 227,295,784 34,958,082 14,831,500
Interest income received 7,985,882 3,587,142 1,546,780 944,445
Interest expenses paid (8,336,173) (9,083,720) (431,153) (497,993)
Income tax paid (5,038,221) (3,704,180) (119,684) (238,413)
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
NET CASH FROM
OPERATING ACTIVITIES 272,179,569 218,095,026 35,954,025 15,039,539
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

The annexed notes form an integral part of these financial statements. Page 25

The annexed notes form an integral part of these financial statements.

 Registration No: 200401027554 (666062 – A)
106 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia)
STATEMENTS OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023 (Cont’d)
STATEMENTS OF CASH FLOWS (CONT’D)
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

The Group The Company

2023 2022 2023 2022
Note RM RM RM RM

CASH FLOWS (FOR)/FROM

INVESTING ACTIVITIES
Acquisition of subsidiaries 37 (20,031,977) (7,119,002) (22,796,500) (9,400,002)
Dividend received from
associates - 68,250 - 68,250
Dividend received from
subsidiaries - - 3,500,000 21,925,000
Dividend received from
others 1,800 1,200 - -
Purchase of property and
equipment 39 (65,653,776) (25,181,294) (241,429) (760,749)
Proceeds from disposal of
property and equipment 30,788,685 5,402,460 20,000 450
Proceeds from disposal of
non-current assets held for sale - 5,408,000 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
NET CASH (FOR)/FROM
INVESTING ACTIVITIES (54,895,268) (21,420,386) (19,517,929) 11,832,949
----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------

The annexed notes form an integral part of these financial statements. Page 26

The annexed notes form an integral part of these financial statements.

Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 107
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) STATEMENTS OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023 (Cont’d)
STATEMENTS OF CASH FLOWS (CONT’D)
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

The Group The Company

2023 2022 2023 2022
Note RM RM RM RM

CASH FLOWS FOR

FINANCING ACTIVITIES
Acquisition of treasury shares (8,204,425) (7,588,104) (8,204,425) (7,588,104)
Dividend paid on ordinary shares (14,315,191) - (14,315,191) -
Dividend paid to non-controlling
interests in subsidiaries (1,500,000) (3,000,000) - -
Repayment of principal portion
of hire purchase 39 (10,763,892) (5,090,036) (75,940) -
Repayment of principal portion
of lease liabilities 23 (290,213) (241,527) - -
Proceeds from term loan 39 - 10,000,000 - -
Repayment of term loans 39 (16,968,582) (17,637,001) (1,550,004) (1,550,004)
Net movement in fixed and
treasury deposit with maturity
dates more than 3 months (102,148,349) (112,500,000) (4,000,000) (16,900,000)
Net movement in trade financing (37,526,418) (43,398,891) (3,000,000) (1,000,000)
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
NET CASH FOR
FINANCING ACTIVITIES (191,717,070) (179,455,559) (31,145,560) (27,038,108)
----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------

NET INCREASE/(DECREASE)
IN CASH AND CASH
EQUIVALENTS 25,567,231 17,219,081 (14,709,464) (165,620)

EFFECTS OF FOREIGN EXCHANGE

TRANSLATION 11,500 - - -

CASH AND CASH EQUIVALENTS

AT BEGINNING OF THE
FINANCIAL YEAR 76,290,977 59,071,896 15,167,993 15,333,613
----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------
CASH AND CASH EQUIVALENTS
AT END OF THE FINANCIAL
YEAR 39 101,869,708 76,290,977 458,529 15,167,993
----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------

The annexed notes form an integral part of these financial statements. Page 27

The annexed notes form an integral part of these financial statements.

 Registration No: 200401027554 (666062 – A)
108 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia)
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE TO
NOTES 2023
THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

1. GENERAL INFORMATION

The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is
listed on the Main Market of Bursa Malaysia Securities Berhad. The registered office which is also the
principal place of business is Sublot 153 (Parent Lot 70), Jalan Kuala Baram, Kuala Baram 98100 Miri,
Sarawak, Malaysia.

The financial statements were authorised for issue by the Board of Directors in accordance with a
resolution of the directors dated 27 October 2023.

2. CHANGE OF NAME

On 4 July 2023, the Company changes its name from Shin Yang Shipping Corporation Berhad to Shin
Yang Group Berhad.

3. HOLDING COMPANY

The immediate and ultimate holding company is Shin Yang Holding Sendirian Berhad, a company
incorporated in Malaysia.

4. PRINCIPAL ACTIVITIES

The Company is principally engaged in the business of investment holding and property holding. The
principal activities of the subsidiaries are set out in Note 7 to the financial statements. There have
been no significant changes in the nature of these activities during the financial year.

Page 28
Registration No: 200401027554 (666062 – A)

ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 109

SHIN YANG GROUP BERHAD (Formerly known as Shin Yang Shipping Corporation Berhad)
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia)
NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023 (Cont’d)
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

5. BASIS OF PREPARATION

The financial statements of the Group are prepared under the historical cost convention and modified
to include other bases of valuation as disclosed in other sections under significant accounting policies,
and in compliance with Malaysian Financial Reporting Standards (“MFRSs”), International Financial
Reporting Standards and the requirements of the Companies Act 2016 in Malaysia.

5.1 During the current financial year, the Group has adopted the following new accounting
standards and/or interpretations (including the consequential amendments, if any):-

MFRSs and/or IC Interpretations (Including The Consequential Amendments)

Amendments to MFRS 3: Reference to the Conceptual Framework
Amendments to MFRS 116: Property, Plant and Equipment – Proceeds before Intended
Use
Amendments to MFRS 137: Onerous Contracts – Cost of Fulfilling a Contract
Annual Improvements to MFRS Standards 2018 - 2020
The adoption of the above accounting standard(s) and/or interpretations(s) (including the
consequential amendments, if any) did not have any material impact on the Group’s financial
statements.

Page 29
 Registration No: 200401027554 (666062 – A)
110 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated
NOTES TO in Malaysia)
THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

5. BASIS OF PREPARATION (CONT’D)

5.2 The Group has not applied in advance the following accounting standards and/or interpretations
(including the consequential amendments, if any) that have been issued by the Malaysian
Accounting Standards Board (MASB) but are not yet effective for the current financial year:-

MFRSs and/or IC Interpretations (Including The Consequential

Amendments) Effective Date
MFRS 17 Insurance Contracts 1 January 2023
Amendments to MFRS 10 and MFRS 128: Sale or Contribution of
Assets between an Investor and its Associate or Joint Venture Deferred
Amendments to MFRS 16: Lease Liability in a Sale and Leaseback 1 January 2024
Amendments to MFRS 17 Insurance Contracts 1 January 2023
Amendment to MFRS 17: Initial Application of MFRS 17 and MFRS 9 –
Comparative Information 1 January 2023
Amendments to MFRS 101: Disclosure of Accounting Policies 1 January 2023
Amendment to MFRS 101: Classification of Liabilities as Current or Non-
current 1 January 2024
Amendments to MFRS 101: Non-current Liabilities with Covenants 1 January 2024
Amendments to MFRS 107 and MFRS 7: Supplier Finance
Arrangements 1 January 2024
Amendments to MFRS 108: Definition of Accounting Estimates 1 January 2023
Amendments to MFRS 112: Deferred Tax related to Assets and
Liabilities arising from a Single Transaction 1 January 2023
Amendments to MFRS 112: International Tax Reform – Pillar Two Model
Rules 1 January 2023
Amendments to MFRS 121: Lack of Exchangeability 1 January 2025

The adoption of the above accounting standards and/or interpretations (including the
consequential amendments, if any) is expected to have no material impact on the financial
statements of the Group upon their initial application.

Page 30
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 111
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES

6.1 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Key Sources of Estimation Uncertainty

Management believes that there are no key assumptions made concerning the future, and other
key sources of estimation uncertainty at the reporting date, that have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities within the next financial
year other than as disclosed below:-

(a) Depreciation of Property and Equipment

The estimates for the residual values, useful lives and related depreciation charges for the
property and equipment are based on commercial factors which could change significantly
as a result of technical innovations and competitors’ actions in response to the market
conditions. Changes in the expected level of usage and technological development could
impact the economic useful lives and the residual values of these assets, therefore future
depreciation charges could be revised. The carrying amount of property and equipment as
at the reporting date is disclosed in Note 9 to the financial statements.

(b) Revenue Recognition for Construction Contracts

The Group recognises construction revenue by reference to the construction progress

based on the physical proportion of contract work completed to date. Significant judgement
is required in determining the progress towards complete satisfaction of the performance
obligation based on actual costs incurred to date over the estimated total contract costs.
The total estimated costs are based on approved budgets, which require assessment and
judgement to be made on changes in, for example, work scope, changes in costs and costs
to completion. In making the judgement, management relies on past experience and the
work of specialists. The carrying amounts of contract assets and contract liabilities as at
the reporting date are disclosed in Note 17 to the financial statements.

Page 31
 Registration No: 200401027554 (666062 – A)
112 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated
NOTES TO in Malaysia)
THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

6.1 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONT’D)

Key Sources of Estimation Uncertainty (Cont’d)

(c) Impairment of Trade Receivables and Contract Assets

The Group uses the simplified approach to estimate a lifetime expected credit loss
allowance for all trade receivables and contract assets. The contract assets are grouped
with trade receivables for impairment assessment because they have substantially the
same risk characteristics as the trade receivables for the same types of contracts. The
Group develops the expected loss rates based on the payment profiles of past sales and
the corresponding historical credit losses, and adjusts for qualitative and quantitative
reasonable and supportable forward-looking information. If the expectation is different from
the estimation, such difference will impact the carrying values of trade receivables and
contract assets. The carrying amounts of trade receivables and contract assets as at the
reporting date are disclosed in Notes 15 and 17 to the financial statements respectively.

(d) Impairment of Non-Trade Receivables

The loss allowances for non-trade financial assets are based on assumptions about risk of
default (probability of default) and expected loss if a default happens (loss given default).
It also requires the Group to assess whether there is a significant increase in credit risk of
the non-trade financial asset at the reporting date. The Group uses judgement in making
these assumptions and selecting appropriate inputs to the impairment calculation, based
on the past payment trends, existing market conditions and forward-looking information.
The carrying amounts of other receivables and amounts owing by subsidiaries as at the
reporting date are disclosed in Notes 16 and 10 to the financial statements respectively.

(e) Impairment of Property and Equipment and Investment in Subsidiaries

The Group determines whether an item of its property and equipment and investment in
subsidiaries are impaired by evaluating the extent to which the recoverable amount of the
asset is less than its carrying amount. This evaluation is subject to changes such as market
performance, economic and political situation of the country. A variety of methods is used
to determine the recoverable amount, such as valuation reports and discounted cash flows.
For discounted cash flows, significant judgement is required in the estimation of the present
value of future cash flows generated by the assets, which involve uncertainties and are
significantly affected by assumptions used and judgements made regarding estimates of
future cash flows and discount rates. The carrying amounts of property and equipment and
investment in subsidiaries as at the reporting date are disclosed in Notes 9 and 7 to the
financial statements respectively.

Page 32
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 113
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

6.1 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONT’D)

Key Sources of Estimation Uncertainty (Cont’d)

(f) Purchase Price Allocation

Purchase prices related to business combinations are allocated to the underlying acquired
assets and liabilities based on their estimated fair value at the time of acquisition. The
determination of fair value required the Group to make assumptions, estimates and
judgements regarding future events. The allocation process is inherently subjective and
impacts the amount assigned to individually identifiable assets and liabilities. As a result,
the purchase price allocation impacts the Group’s reported assets (including goodwill) and
liabilities, future net earnings due to the impact on future depreciation and amortisation
expense and impairment tests. The fair value of the assets acquired and liabilities assumed
under the business combinations made during the current financial year are disclosed in
Note 37 to the financial statements.

Critical Judgements Made in Applying Accounting Policies

Management believes that there are no instances of application of critical judgement in applying
the Group’s accounting policies which will have a significant effect on the amounts recognised
in the financial statements other than as disclosed below:-

Lease Terms

Some leases contain extension options exercisable by the Group before the end of the non -
cancellable contract period. In determining the lease term, management considers all facts and
circumstances including the past practice and any cost that will be incurred to change the asset
if an option to extend is not taken. An extension option is only included in the lease term if the
lease is reasonably certain to be extended (or not terminated).

6.2 BASIS OF CONSOLIDATION

The consolidated financial statements include the financial statements of the Company and its
subsidiaries made up to the end of the reporting period.

Subsidiaries are entities controlled by the Group. The Group controls an entity when the Group
is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power over the entity. Potential voting rights are
considered when assessing control only when such rights are substantive. The Group also
considers it has de facto power over an investee when, despite not having the majority of voting
rights, it has the current ability to direct the activities of the investee that significantly affect the
investee’s return.

Page 33
 Registration No: 200401027554 (666062 – A)
114 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated
NOTES TO in Malaysia)
THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

6.2 BASIS OF CONSOLIDATION (CONT’D)

Subsidiaries are consolidated from the date on which control is transferred to the Group up to
the effective date on which control ceases, as appropriate.

Intragroup transactions, balances, income and expenses are eliminated on consolidation.

Intragroup losses may indicate an impairment that requires recognition in the consolidated
financial statements. Where necessary, adjustments are made to the financial statements of
subsidiaries to ensure consistency of accounting policies with those of the Group.

(a) Business Combinations

Acquisitions of businesses are accounted for using the acquisition method. Under the
acquisition method, the consideration transferred for acquisition of a subsidiary is the fair value
of the assets transferred, liabilities incurred and the equity interests issued by the Group at
the acquisition date. The consideration transferred includes the fair value of any asset or
liability resulting from a contingent consideration arrangement. Acquisition-related costs, other
than the costs to issue debt or equity securities, are recognised in profit or loss when incurred.

In a business combination achieved in stages, previously held equity interests in the acquiree
are remeasured to fair value at the acquisition date and any corresponding gain or loss is
recognised in profit or loss.

Non-controlling interests in the acquiree may be initially measured either at fair value or at the
non-controlling interests’ proportionate share of the fair value of the acquiree’s identifiable net
assets at the date of acquisition. The choice of measurement basis is made on a transaction-
by-transaction basis.

(b) Business combinations involving entities under common control

Business combinations involving entities under common control are accounted for by
applying the pooling of interest method. The assets and liabilities of the combining entities
are reflected at their carrying amounts reported in the consolidated financial statements of
the controlling holding company. Any difference between the consideration paid and the
share capital of the “acquired” entity is reflected within equity as merger reserve. The
statement of comprehensive income reflects the results of the combining entities for the
full year, irrespective of when the combination takes place. Comparatives are presented
as if the entities have always been combined since the date the entities had come under
common control.

Page 34
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 115
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

6.2 BASIS OF CONSOLIDATION (CONT’D)

(c) Non-controlling interests

Non-controlling interests are presented within equity in the consolidated statement of financial
position, separately from the equity attributable to owners of the Company. Profit or loss and
each component of other comprehensive income are attributed to the owners of the Company
and to the non-controlling interests. Total comprehensive income is attributed to non-
controlling interests even if this results in the non-controlling interests having a deficit balance.

(d) Changes in Ownership Interests in Subsidiaries Without Change of Control

All changes in the parent’s ownership interest in a subsidiary that do not result in a loss of
control are accounted for as equity transactions. Any difference between the amount by
which the non-controlling interest is adjusted and the fair value of consideration paid or
received is recognised directly in equity of the Group.

(e) Loss of Control

Upon the loss of control of a subsidiary, the Group recognises any gain or loss on disposal in
profit or loss which is calculated as the difference between:-

(i) the aggregate of the fair value of the consideration received and the fair value of any
retained interest in the former subsidiary; and

(ii) the previous carrying amount of the assets (including goodwill), and liabilities of the former
subsidiary and any non-controlling interests.

Amounts previously recognised in other comprehensive income in relation to the former

subsidiary are accounted for in the same manner as would be required if the relevant assets
or liabilities were disposed of (i.e. reclassified to profit or loss or transferred directly to retained
profits). The fair value of any investments retained in the former subsidiary at the date when
control is lost is regarded as the fair value on initial recognition for subsequent accounting
under MFRS 9 or, when applicable, the cost on initial recognition of an investment in an
associate or a joint venture.

Page 35
 Registration No: 200401027554 (666062 – A)
116 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated
NOTES TO in Malaysia)
THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

6.3 GOODWILL

Goodwill is measured at cost less accumulated impairment losses, if any. The carrying value of
goodwill is reviewed for impairment annually or more frequently if events or changes in
circumstances indicate that the carrying amount may be impaired. The impairment value of
goodwill is recognised immediately in profit or loss. An impairment loss recognised for goodwill
is not reversed in a subsequent period.

Under the acquisition method, any excess of the sum of the fair value of the consideration
transferred in the business combination, the amount of non-controlling interests recognised and
the fair value of the Group’s previously held equity interest in the acquiree (if any), over the net
fair value of the acquiree’s identifiable assets and liabilities at the date of acquisition is recorded
as goodwill.

Where the latter amount exceeds the former, after reassessment, the excess represents a
bargain purchase gain and is recognised in profit or loss immediately.

In respect of equity-accounted associates, the carrying amount of goodwill is included in the

carrying amount of the investment and an impairment loss on such an investment is not
allocated to any asset, including goodwill, that forms part of the carrying amount of the equity-
accounted associates.

6.4 FUNCTIONAL AND FOREIGN CURRENCIES

(a) Functional and Presentation Currency

The individual financial statements of each entity in the Group are presented in the
currency of the primary economic environment in which the entity operates, which is the
functional currency.

The consolidated financial statements are presented in Ringgit Malaysia (“RM”), which is
the Company’s functional and presentation currency.

(b) Foreign Currency Transactions and Balances

Transactions in foreign currencies are converted on initial recognition, using the exchange
rates at the transaction dates. Monetary assets and liabilities at the end of the reporting period
are translated at the exchange rates ruling as of that date. Non-monetary assets and liabilities
are translated using exchange rates that existed when the values were determined. All
exchange differences are recognised in profit or loss.

Page 36
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 117
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

6.5 FINANCIAL INSTRUMENTS

Financial assets and financial liabilities are recognised in the statements of financial position
when the Group has become a party to the contractual provisions of the instruments.

Financial instruments are classified as financial assets, financial liabilities or equity instruments
in accordance with the substance of the contractual arrangement and their definitions in MFRS
132. Interest, dividends, gains and losses relating to a financial instrument classified as a liability
are reported as an expense or income. Distributions to holders of financial instruments classified
as equity are charged directly to equity.

Financial instruments are offset when the Group has a legally enforceable right to offset and intends
to settle either on a net basis or to realise the asset and settle the liability simultaneously.

A financial instrument is recognised initially at its fair value (other than trade receivables without
significant financing component which are measured at transaction price as defined in MFRS
15 – Revenue from Contracts with Customers at inception). Transaction costs that are directly
attributable to the acquisition or issue of the financial instrument (other than a financial
instrument at fair value through profit or loss) are added to/deducted from the fair value on initial
recognition, as appropriate. Transaction costs on the financial instrument at fair value through
profit or loss are recognised immediately in profit or loss.

Financial instruments recognised in the statements of financial position are disclosed in the
individual policy statement associated with each item.

(a) Financial Assets

All recognised financial assets are measured subsequently in their entirely at either
amortised cost or fair value (through profit or loss, or other comprehensive income),
depending on the classification of the financial assets.

Page 37
 Registration No: 200401027554 (666062 – A)
118 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
NOTES TO
(Incorporated THE FINANCIAL STATEMENTS
in Malaysia)
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

6.5 FINANCIAL INSTRUMENTS (CONT’D)

(a) Financial Assets (Cont’d)

Debt Instruments

(i) Amortised Cost

The financial asset is held for collection of contractual cash flows where those cash
flows represent solely payments of principal and interest. Interest income is
recognised by applying the effective interest rate to the gross carrying amount of the
financial asset. When the asset has subsequently become credit-impaired, the interest
income is recognised by applying the effective interest rate to the amortised cost of
the financial asset.

The effective interest method is a method of calculating the amortised cost of a

financial asset and of allocating interest income over the relevant period. The effective
interest rate is the rate that discounts estimated future cash receipts (including all fees
and points paid or received that form an integral part of the effective interest rate,
transaction costs and other premiums or discounts), excluding expected credit losses,
through the expected life of the financial asset or a shorter period (where appropriate).

(ii) Fair Value through Other Comprehensive Income

The financial asset is held for both collecting contractual cash flows and selling the
financial asset, where the asset’s cash flows represent solely payments of principal
and interest. Movements in the carrying amount are taken through other
comprehensive income and accumulated in the fair value reserve, except for the
recognition of impairment, interest income and foreign exchange difference which are
recognised directly in profit or loss. Interest income is calculated using the effective
interest rate method.

(iii) Fair Value through Profit or Loss

All other financial assets that do not meet the criteria for amortised cost or fair value
through other comprehensive income are measured at fair value through profit or loss.

The Group reclassifies debt instruments when and only when its business model for
managing those assets change.

Page 38
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 119
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

6.5 FINANCIAL INSTRUMENTS (CONT’D)

(a) Financial Assets (Cont’d)

Equity Instruments

All equity investments are subsequently measured at fair value with gains and losses
recognised in profit or loss except where the Group has elected to present the subsequent
changes in fair value in other comprehensive income and accumulated in the fair value
reserve at initial recognition.

The designation at fair value through other comprehensive income is not permitted if the
equity investment is either held for trading or is designated to eliminate or significantly
reduce a measurement or recognition inconsistency that would otherwise arise.

Dividend income from this category of financial assets is recognised in profit or loss when
the Group’s right to receive payment is established unless the dividends clearly represent
a recovery of part of the cost of the equity investments.

(b) Financial Liabilities

(i) Financial Liabilities at Fair Value through Profit or Loss

Fair value through profit or loss category comprises financial liabilities that are either
held for trading or are designated to eliminate or significantly reduce a measurement
or recognition inconsistency that would otherwise arise. The changes in fair value of
these financial liabilities are recognised in profit or loss.

(ii) Other Financial Liabilities

Other financial liabilities are subsequently measured at amortised cost using the
effective interest method.

The effective interest method is a method of calculating the amortised cost of a

financial liability and of allocating interest expense over the relevant period. The
effective interest rate is the rate that exactly discounts estimated future cash payments
(including all fees and points paid or received that form an integral part of the effective
interest rate, transaction costs and other premiums or discounts), through the
expected life of the financial liability or a shorter period (where appropriate).

Page 39
 Registration No: 200401027554 (666062 – A)
120 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
NOTES TOin Malaysia)
(Incorporated THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

6.5 FINANCIAL INSTRUMENTS (CONT’D)

(c) Equity Instruments

Equity instruments classified as equity are measured initially at cost and are not
remeasured subsequently.

(i) Ordinary Shares

Ordinary shares are classified as equity and recorded at the proceeds received, net
of directly attributable transaction costs.

Dividends on ordinary shares are recognised as liabilities when approved for

appropriation.

(ii) Treasury Shares

When the Company’s own shares recognised as equity are bought back, the amount
of the consideration paid, including all costs directly attributable, are recognised as a
deduction from equity. Own shares purchased that are not subsequently cancelled
are classified as treasury shares and are presented as a deduction from total equity.
No gain or loss is recognised in profit or loss on the purchase, sale, issue or
cancellation of treasury shares.

Where treasury shares are reissued by resale, the difference between the sales
consideration received and the carrying amount of the treasury shares is recognised
in equity.

Where treasury shares are cancelled, their costs are transferred to retained profits.

Page 40
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 121
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

6.5 FINANCIAL INSTRUMENTS (CONT’D)

(d) Derecognition

A financial asset or part of it is derecognised when, and only when, the contractual rights
to the cash flows from the financial asset expire or when it transfers the financial asset and
substantially all the risks and rewards of ownership of the asset to another entity. On
derecognition of a financial asset measured at amortised cost, the difference between the
carrying amount of the asset and the sum of the consideration received and receivable is
recognised in profit or loss. In addition, on derecognition of a debt instrument classified as
fair value through other comprehensive income, the cumulative gain or loss previously
accumulated in the fair value reserve is reclassified from equity to profit or loss. In contrast,
there is no subsequent reclassification of the fair value reserve to profit or loss following the
derecognition of an equity investment.

A financial liability or a part of it is derecognised when, and only when, the obligation
specified in the contract is discharged or cancelled or expires. On derecognition of a
financial liability, the difference between the carrying amount of the financial liability
extinguished or transferred to another party and the consideration paid, including any non-
cash assets transferred or liabilities assumed, is recognised in profit or loss.

(e) Derivative Financial Instruments

Derivative financial instruments are initially recognised at fair value on the date on which a
derivative contract is entered into and are subsequently remeasured at fair value.
Derivatives are carried as financial assets when the fair value is positive and as financial
liabilities when the fair value is negative. Any gains or losses arising from changes in fair
value on derivatives during the reporting period, other than those accounted for under
hedge accounting, are recognised directly in profit or loss.

Any derivative embedded in a financial asset is not accounted for separately. Instead, the
entire hybrid contract is classified and subsequently measured as either amortised cost or
fair value as appropriate.

An embedded derivative is recognised separately from the host contract which is a financial
liability as a derivative if, and only if, its risks and characteristics are not closely related to
those of the host contract and the host contract is not measured at fair value through profit
or loss.

Page 41
 Registration No: 200401027554 (666062 – A)
122 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated
NOTES TO in Malaysia)
THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

6.5 FINANCIAL INSTRUMENTS (CONT’D)

(f) Financial Guarantee Contracts

A financial guarantee contract is a contract that requires the issuer to make specified
payments to reimburse the holder for a loss it incurs because a specified debtor fails to
make payment when due in accordance with the original or modified terms of a debt
instrument.

Financial guarantee contracts are recognised initially as liabilities at fair value, net of
transaction costs. Subsequent to initial recognition, financial guarantee contracts are
recognised as income in profit or loss over the period of the guarantee or, when there is no
specific contractual period, recognised in profit or loss upon discharge of the guarantee. If
the debtor fails to make payment relating to a financial guarantee contract when it is due
and the Company or the Group, as the issuer, is required to reimburse the holder for the
associated loss, the liability is measured at the higher of the amount of the credit loss
determined in accordance with the expected credit loss model and the amount initially
recognised less cumulative amortisation.

6.6 INVESTMENTS IN SUBSIDIARIES

Investment in subsidiaries are stated at cost in the statement of financial position of the
Company, and are reviewed for impairment at the end of the reporting period if events or
changes in circumstances indicate that the carrying values may not be recoverable. The cost of
the investments includes transaction costs.

On the disposal of the investments in subsidiaries, the difference between the net disposal
proceeds and the carrying amount of the investments is recognised in profit or loss.

Page 42
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 123
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

6.7 INVESTMENTS IN ASSOCIATES

An associate is an entity in which the Group and the Company has a long-term equity interest
and where it exercises significant influence over the financial and operating policies.

Investments in associates are stated at cost in the statement of financial position of the
Company, and are reviewed for impairment at the end of the reporting period if events or
changes in circumstances indicate that the carrying values may not be recoverable. The cost of
the investment includes transaction costs.

The investment in an associate is accounted for in the consolidated financial statements using
the equity method based on the financial statements of the associate made up to 30 June 2023.
The Group's share of the post acquisition profits and other comprehensive income of the
associate is included in the consolidated statement of profit or loss and other comprehensive
income, after adjustment if any, to align the accounting policies with those of the Group, from
the date that significant influence commences up to the effective date on which significant
influence ceases or when the investment is classified as held for sale. The Group's investment
in the associate is carried in the consolidated statement of financial position at cost plus the
Group’s share of the post acquisition retained profits and reserves. The cost of investment
includes transaction costs.

When the Group’s share of losses exceeds its interest in an associate, the carrying amount of
that interest is reduced to zero, and the recognition of further losses is discontinued except to
the extent that the Group has an obligation. The interest in the associate is the carrying amount
of the investment in the associate determined using the equity method together with any long-
term interests that, in substance, form part of the Group’s net investment in the associate.

Unrealised gains or losses on transactions between the Group and the associate are eliminated
to the extent of the Group's interest in the associate. Unrealised losses are eliminated unless
cost cannot be recovered.

When the Group ceases to have significant influence over an associate and the retained interest
in the former associate is a financial asset, the Group measures the retained interest at fair
value at that date and the fair value is regarded as the initial carrying amount of the financial
asset in accordance with MFRS 9. Furthermore, the Group also reclassifies its share of the gain
or loss previously recognised in other comprehensive income of that associate to profit or loss
when the equity method is discontinued.

6.8 PROPERTY AND EQUIPMENT

All items of property and equipment are initially measured at cost. Cost includes expenditure
that are directly attributable to the acquisition of the asset and other costs directly attributable
to bringing the asset to working condition for its intended use.

Page 43
 Registration No: 200401027554 (666062 – A)
124 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
NOTES TO
(Incorporated THE FINANCIAL
in Malaysia) STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

6.8 PROPERTY AND EQUIPMENT (CONT’D)

Subsequent to initial recognition, property and equipment are stated at cost less accumulated
depreciation and any impairment losses.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset,
as appropriate, only when the cost is incurred and it is probable that the future economic benefits
associated with the asset will flow to the Group and the cost of the asset can be measured
reliably. The carrying amount of parts that are replaced is derecognised. The cost of the day-
to-day servicing of property and equipment are recognised in profit or loss as incurred.

Depreciation on property and equipment is charged to profit or loss (unless it is included in the
carrying amount of another asset) on a straight-line method to write off the depreciable amount
of the assets over their estimated useful lives. Depreciation of an asset does not cease when
the asset becomes idle or is retired from active use unless the asset is fully depreciated. The
principal annual rates used for this purpose are:-

Dry docking expenses 5 years

Land, buildings, jetty, wharfs and slipways 20 – 50 years
Motor vehicles 5 – 10 years
Office equipment, furniture and fittings 20 years
Plant and machinery 6.7 – 10 years
Shipping equipment and machinery 3 – 20 years
Vessels 8 – 20 years

Capital work-in-progress included in property and equipment are not depreciated as these assets
are not yet available for use.

The depreciation method, useful lives and residual values are reviewed, and adjusted if appropriate,
at the end of each reporting period to ensure that the amounts, method and periods of depreciation
are consistent with previous estimates and the expected pattern of consumption of the future
economic benefits embodied in the items of the property and equipment. Any changes are
accounted for as a change in estimate.

When significant parts of an item of property and equipment have different useful lives, they are
accounted for as separate items (major components) of property and equipment.

An item of property and equipment is derecognised upon disposal or when no future economic
benefits are expected from its use. Any gain or loss arising from derecognition of the asset, being
the difference between the net disposal proceeds and the carrying amount, is recognised in
profit or loss.

Page 44
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 125
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

6.9 LEASES

The Group assesses whether a contract is or contains a lease, at the inception of the contract. The
Group recognises a right-of-use asset and corresponding lease liability with respect to all lease
arrangements in which it is the lessee, except for low-value assets and short-term leases with 12
months or less. For these leases, the Group recognises the lease payments as an operating
expense on a straight-line method over the term of the lease unless another systematic basis is
more representative of the time pattern in which economic benefits from the leased assets are
consumed.

The Group recognises a right-of-use asset and a lease liability at the lease commencement date.
The right-of-use assets and the associated lease liabilities are presented as a separate line item in
the statement of financial position.

The right-of-use asset is initially measured at cost. Cost includes the initial amount of the
corresponding lease liability adjusted for any lease payments made at or before the
commencement date, plus any initial direct costs incurred, less any incentives received.

The right-of-use asset is subsequently measured at cost less accumulated depreciation and any
impairment losses, and adjusted for any remeasurement of the lease liability. The depreciation
starts from the commencement date of the lease. If the lease transfers ownership of the underlying
asset to the Group or the cost of the right-of-use asset reflects that the Group expects to exercise
a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying
asset. Otherwise, the Group depreciates the right-of-use asset to the earlier of the end of the useful
life of the right-of-use asset or the end of the lease term. The estimated useful lives of the right-of-
use assets are as follows:

Land and buildings 2 – 94 years

Motor vehicles 5 – 10 years

The lease liability is initially measured at the present value of the lease payments that are not paid
at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be
readily determined, the Group uses its incremental borrowing rate.

The lease liability is subsequently measured at amortised cost using the effective interest method.
It is remeasured when there is a change in the future lease payments (other than lease modification
that is not accounted for as a separate lease) with the corresponding adjustment is made to the
carrying amount of the right-of-use asset or is recognised in profit or loss if the carrying amount has
been reduced to zero.

Page 45
 Registration No: 200401027554 (666062 – A)
126 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated
NOTES TO in Malaysia)
THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

6.10 INVENTORIES

Inventories are stated at the lower of cost and net realisable value. Cost is determined on the first-
in, first-out method and comprises the purchase price and incidentals incurred in bringing the
inventories to their present location and condition. The cost of finished goods and work-in-progress
comprise cost of raw materials, direct labour, other direct costs and appropriate proportions of
manufacturing overheads based on the normal operating capacity.

Net realisable value represents the estimated selling price less the estimated costs of completion
and the estimated costs necessary to make the sale.

6.11 CONTRACT COST ASSETS

(a) Incremental Costs of Obtaining Contracts

The Group recognises incremental costs of obtaining contracts with customers as an asset
when the Group expects to recover these costs. When the amortisation period of the asset is
one year or less, such costs are recognised as an expense immediately when incurred.

(b) Costs to Fulfil A Contract

The Group recognises costs that relate directly to a contract (or an anticipated contract) with
customer as an asset when the costs generate or enhance resources of the Group, will be
used in satisfying performance obligation in the future and are recovered.

The contract cost assets are initially measured at cost and amortised on a systematic basis that is
consistent with the pattern of revenue recognition to which the asset relates.

An impairment loss is recognised in the profit or loss when the carrying amount of the contract cost
assets exceeds the expected revenue less expected cost that will be incurred. Any impairment loss
recovered shall be reversed to the extent of the carrying amount of the contract cost assets does
not exceed the amount that would have been recognised had there been no impairment loss
recognised previously.

6.12 CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise cash in hand, bank balances, demand deposits, and short-
term, highly liquid investments that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value with original maturity periods of three months
or less. For the purpose of the statement of cash flows, cash and cash equivalents are presented
net of bank overdrafts.

Page 46
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 127
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

6.13 CONTRACT ASSET AND CONTRACT LIABILITY

A contract asset is recognised when the Group’s right to consideration is conditional on

something other than the passage of time. A contract asset is subject to impairment
requirements of MFRS 9 - Financial Instruments.

A contract liability is stated at cost and represents the obligation of the Group to transfer goods
or services to a customer for which consideration has been received (or the amount is due) from
the customers.

6.14 PROVISIONS

Provisions are recognised when the Group has a present obligation (legal or constructive) as a
result of past events, when it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation, and when a reliable estimate of the amount can
be made. Provisions are reviewed at the end of each reporting period and adjusted to reflect
the current best estimate. Where the effect of the time value of money is material, the provision
is the present value of the estimated expenditure required to settle the obligation. The discount
rate shall be a pre-tax rate that reflects current market assessments of the time value of money
and the risks specific to the liability. The unwinding of the discount is recognised as interest
expense in profit or loss.

6.15 IMPAIRMENT

(a) Impairment of Financial Assets

The Group recognises a loss allowance for expected credit losses on investments in debt
instruments that are measured at amortised cost or at fair value through other comprehensive
income, trade receivables and contract assets, as well as on financial guarantee contracts.

The expected credit loss is estimated as the difference between all contractual cash flows that
are due to the Group in accordance with the contract and all the cash flows that the Group
expects to receive, discounted at the original effective interest rate.

The amount of expected credit losses is updated at each reporting date to reflect changes in
credit risk since initial recognition of the respective financial instrument. The Group always
recognises lifetime expected credit losses for trade receivables and contract assets using the
simplified approach. The expected credit losses on these financial assets are estimated using
a provision matrix based on the Group’s historical credit loss experience and are adjusted for
forward-looking information (including time value of money where appropriate).

Page 47
 Registration No: 200401027554 (666062 – A)
128 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated
NOTES TO in Malaysia)
THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

6.15 IMPAIRMENT (CONT’D)

(a) Impairment of Financial Assets (Cont’d)

For all other financial instruments, the Group recognises lifetime expected credit losses when
there has been a significant increase in credit risk since initial recognition. However, if the
credit risk on the financial instrument has not increased significantly since initial recognition,
the Group measures the loss allowance for that financial instrument at an amount equal to 12
‑month expected credit losses.

The Group recognises an impairment gain or loss in profit or loss for all financial instruments
with a corresponding adjustment to their carrying amount through a loss allowance account,
except for investments in debt instruments that are measured at fair value through other
comprehensive income, for which the loss allowance is recognised in other comprehensive
income and accumulated in the fair value reserve, and does not reduce the carrying amount
of the financial asset in the statement of financial position.

(b) Impairment of Non-financial Assets

The carrying values of assets, other than those to which MFRS 136 - Impairment of Assets
does not apply, are reviewed at the end of each reporting period for impairment when there
is an indication that the assets might be impaired. Impairment is measured by comparing
the carrying values of the assets with their recoverable amounts. When the carrying
amount of an asset exceeds its recoverable amount, the asset is written down to its
recoverable amount and an impairment loss shall be recognised. The recoverable amount
of an asset is the higher of the asset’s fair value less costs to sell and its value in use,
which is measured by reference to discounted future cash flows using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks
specific to the asset. Where it is not possible to estimate the recoverable amount of an
individual asset, the Group estimates the recoverable amount of the cash-generating unit
to which the asset belongs.

An impairment loss is recognised in profit or loss immediately. Any impairment loss recognised
in respect of a cash-generating unit is allocated first to reduce the carrying amount of any
goodwill allocated to the cash-generating unit and then to reduce the carrying amounts of the
other assets in the cash-generating unit on a pro rata basis.

Page 48
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 129
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

6.15 IMPAIRMENT (CONT’D)

(b) Impairment of Non-financial Assets (Cont’d)

In respect of assets other than goodwill, and when there is a change in the estimates used to
determine the recoverable amount, a subsequent increase in the recoverable amount of an
asset is treated as a reversal of the previous impairment loss and is recognised to the extent
of the carrying amount of the asset that would have been determined (net of amortisation and
depreciation) had no impairment loss been recognised. The reversal is recognised in profit or
loss immediately unless the asset is carried at its revalued amount, in which case the reversal
of the impairment loss is treated as a revaluation increase.

6.16 EMPLOYEE BENEFITS

(a) Short-term Benefits

Wages, salaries, paid annual leave and bonuses are measured on an undiscounted basis and
are recognised in profit or loss in the period in which the associated services are rendered by
employees of the Group.

(b) Defined Contribution Plans

The Group’s contributions to defined contribution plans are recognised in profit or loss in the
period to which they relate. Once the contributions have been paid, the Group has no further
liability in respect of the defined contribution plans.

6.17 INCOME TAXES

(a) Current Tax

Current tax assets and liabilities are expected amount of income tax recoverable or payable
to the taxation authorities.

Current taxes are measured using tax rates and tax laws that have been enacted or
substantively enacted at the end of the reporting period and are recognised in profit or loss
except to the extent that the tax relates to items recognised outside profit or loss (either in
other comprehensive income or directly in equity).

Page 49
 Registration No: 200401027554 (666062 – A)
130 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated
NOTES TO in Malaysia)
THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

6.17 INCOME TAXES (CONT’D)

(b) Deferred Tax

Deferred tax are recognised using the liability method for all temporary differences other than
those that arise from goodwill or from the initial recognition of an asset or liability in a
transaction which is not a business combination and at the time of the transaction, affects
neither accounting profit nor taxable profit.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in
the period when the asset is realised or the liability is settled, based on the tax rates that have
been enacted or substantively enacted at the end of the reporting period.

Deferred tax assets are recognised for all deductible temporary differences, unused tax losses
and unused tax credits to the extent that it is probable that future taxable profits will be
available against which the deductible temporary differences, unused tax losses and unused
tax credits can be utilised. The carrying amounts of deferred tax assets are reviewed at the
end of each reporting period and reduced to the extent that it is no longer probable that related
tax benefits will be realised.

Current and deferred tax items are recognised in correlation to the underlying transactions either
in profit or loss, other comprehensive income or directly in equity. Deferred tax arising from a
business combination is adjusted against goodwill or negative goodwill.

Current tax assets and liabilities or deferred tax assets and liabilities are offset when there is a
legally enforceable right to set off current tax assets against current tax liabilities and when the
deferred taxes relate to the same taxable entity (or on different tax entities but they intend to settle
current tax assets and liabilities on a net basis) and the same taxation authority.

6.18 BORROWING COSTS

Borrowing costs that are directly attributable to the acquisition, construction or production of a
qualifying asset are capitalised as part of the cost of those assets, until such time as the assets
are ready for their intended use or sale. The capitalisation of borrowing costs is suspended
during extended periods in which active development is interrupted. The capitalisation rate used
to determine the amount of borrowing costs eligible for capitalisation is the weighted average of
the borrowing costs applicable to borrowings that are outstanding during the financial year, other
than borrowings made specifically for the purpose of financing a specific project-in-progress, in
which case the actual borrowing costs incurred on that borrowings less any investment income
on temporary investment of that borrowings will be capitalised.

All other borrowing costs are recognised in profit or loss as expenses in the period in which they
are incurred.

Page 50
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 131
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

6.19 FAIR VALUE MEASUREMENT

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date, regardless of whether
that price is directly observable or estimated using a valuation technique. In estimating the fair value
of an asset or a liability, the Group take into account the characteristics of the asset or liability if
market participants would take those characteristics into account when pricing the asset or liability
at the measurement date. The measurement assumes that the transaction takes place either in the
principal market or in the absence of a principal market, in the most advantageous market. For
non-financial asset, the fair value measurement takes into account a market participant’s ability to
generate economic benefits by using the asset in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use.

For financial reporting purposes, the fair value measurements are analysed into level 1 to level 3
as follows:-

Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liability that
the entity can access at the measurement date;
Level 2: Inputs are inputs, other than quoted prices included within level 1, that are observable for
the asset or liability, either directly or indirectly; and
Level 3: Inputs are unobservable inputs for the asset or liability.

The transfer of fair value between levels is determined as of the date of the event or change in
circumstances that caused the transfer.

The fair value for measurement and disclosure purposes in these financial statements is
determined on such a basis, except for share-based payment transactions (MFRS 2), leasing
transactions (MFRS 16) and measurement that have some similarities to fair value but not are fair
value, such as net realisable value (MFRS 102) or value in use (MFRS 136).

Page 51
 Registration No: 200401027554 (666062 – A)
132 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
NOTES TO
(Incorporated THE FINANCIAL STATEMENTS
in Malaysia)
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

6.20 NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

Non-current assets (or disposal group comprising assets and liabilities) that are expected to be
recovered primarily through sale rather than through continuing use are classified as held for
sale. Immediately before classification as held for sale, the non-current assets (or the disposal
group) are remeasured in accordance with the Group’s accounting policies. Upon classification
as held for sale, the non-current assets (or non-current assets of the disposal group) are not
depreciated and are measured at the lower of their previous carrying amount and fair value less
cost to sell. Any differences are recognised in profit or loss. In addition, equity accounting of
equity-accounted associates and joint ventures ceases once classified as held for sale or
distribution.

A discontinued operation is a component of the Group’s business that represents a separate

major line of business or geographical area of operations that has been disposed of or is held
for sale, or is a subsidiary acquired exclusively with a view to resale. Classification as a
discontinued operation occurs upon disposal or when the operation meets the criteria to be
classified as held for sale, if earlier. When an operation is classified as a discontinued operation,
the comparative statement of profit or loss and other comprehensive income is restated as if
the operation had been discontinued from the start of the comparative period.

6.21 CONTINGENT LIABILITIES

A contingent liability is a possible obligation that arises from past events and whose existence will
only be confirmed by the occurrence of one or more uncertain future events not wholly within the
control of the Group. It can also be a present obligation arising from past events that is not
recognised because it is not probable that an outflow of economic resources will be required or the
amount of obligation cannot be measured reliably.

A contingent liability is not recognised but is disclosed in the notes to the financial statements,
unless the probability of outflow of economic benefits is remote. When a change in the probability
of an outflow occurs so that the outflow is probable, it will then be recognised as a provision.

6.22 OPERATING SEGMENTS

An operating segment is a component of the Group that engages in business activities from
which it may earn revenues and incur expenses, including revenues and expenses that relate
to transactions with any of the Group’s other components. An operating segment’s operating
results are reviewed regularly by the chief operating decision maker to make decisions about
resources to be allocated to the segment and assess its performance, and for which discrete
financial information is available.

Page 52
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 133
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

6.23 EARNINGS PER ORDINARY SHARE

Basic earnings per ordinary share is calculated by dividing the consolidated profit or loss
attributable to ordinary shareholders of the Company by the weighted average number of
ordinary shares outstanding during the reporting period, adjusted for own shares held.

Diluted earnings per ordinary share is determined by adjusting the consolidated profit or loss
attributable to ordinary shareholders of the Company and the weighted average number of
ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential
ordinary shares, which comprise convertible preference shares and share options granted to
employees.

6.24 REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenue from contracts with customers is recognised by reference to each distinct performance
obligation in the contract with customer. Revenue from contracts with customers is measured
at its transaction price, being the amount of consideration which the Group expects to be entitled
in exchange for transferring promised goods or services to a customer, net of sales and service
tax, returns, rebates and discounts.

The Group recognises revenue when (or as) it transfers control over a product or service to
customer. An asset is transferred when (or as) the customer obtains control of that asset.

Depending on the substance of the contract, revenue is recognised when the performance
obligation is satisfied, which may be at a point in time or over time. The Group transfers control
of a good or service at a point in time unless one of the following overtime criteria is met:-

• The customer simultaneously receives and consumes the benefits provided as the Group
performs.

• The Group’s performance creates or enhances an asset that the customer controls as the
asset is created or enhanced.

• The Group’s performance does not create an asset with an alternative use and the Group
has an enforceable right to payment for performance completed to date.

Page 53
 Registration No: 200401027554 (666062 – A)
134 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
SHIN YANG
(Formerly known as GROUP BERHAD
Shin Yang Shipping Corporation Berhad)
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia)
NOTES TO THE FINANCIAL STATEMENTS
NOTES
30 JUNE TO THE
2023 FINANCIAL STATEMENTS
(Cont’d)
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

6.24 REVENUE FROM CONTRACTS WITH CUSTOMERS (CONT’D)

(a) Construction Services - Shipbuilding

Revenue from construction services is recognised over time in the period in which the
services are rendered using the input method, determined based the proportion of
construction costs incurred for work performed to date over the estimated total construction
costs. Transaction price is computed based on the price specified in the contract and
adjusted for any variable consideration such as incentives and penalties. Past experience
is used to estimate and provide for the variable consideration, using expected value
method and revenue is only recognised to the extent that it is highly probable that a
significant reversal will not occur.

A receivable is recognised when the construction services are rendered as this is the point
in time that the consideration is unconditional because only the passage of time is required
before the payment is due. If the construction services rendered exceed the payment
received, a contract asset is recognised. If the payments exceed the construction services
rendered, a contract liability is recognised.

(b) Revenue from freight and lighterage services – sea and land transport

Freight services for sea and land transport are recognised over time in the period the freight
services are rendered. The customer is able to benefit from the Group's performance as it
occurs and the other entity would not need to substantially reperform the Group's
performance (e.g. distance travelled) to date. The Group has selected the output measure
(days travelled) which can most appropriately depicts the transfer of control of the service
to the customer.

(c) Revenue from freight forwarding services

These revenues comprise mainly agency commission, custom clearance, import and
export documentation, port related services and etc. These services are considered to
represent one single performance obligation satisfied at a point in time.

(d) Ship repairs, repairs works, metal fabrication and barrage maintenance fee

Revenue from ship repair, repair works, metal fabrication and barrage maintenance fee is
recognised over time in the period in which the services are rendered. For fixed-price
contracts, revenue is recognised based on the actual service provided to the end of the
reporting period as a proportion of the total services to be provided because the customer
receives and uses the benefits simultaneously.

Page 54
Registration No: 200401027554 (666062 – A)

ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 135

SHIN YANG GROUP BERHAD (Formerly known as Shin Yang Shipping Corporation Berhad)
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia)
NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023 (Cont’d)
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

6. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

6.24 REVENUE FROM CONTRACTS WITH CUSTOMERS (CONT’D)

(e) Sales of goods and services

Revenue from sale of goods and services is recognised at the point in time when control
of the assets is transferred to the customers, generally on delivery of the goods and
services.

6.25 REVENUE FROM OTHER SOURCES AND OTHER OPERATING INCOME

(a) Dividend Income

Dividend income from investment is recognised when the right to receive dividend payment
is established.

(b) Rental Income

Rental income from investment properties is accounted for on a straight-line method over
the lease term.

(c) Hire income and vessel charter fee

The Group enters as a lessor into lease agreements that fall within the scope of MFRS 16.
Rental income arising from operating leases is accounted for on a straight-line basis over
the lease term and is included in revenue in the statement of profit or loss due to its
operating nature.

7. INVESTMENT IN SUBSIDIARIES

2023 2022
RM RM

Unquoted share, at cost 1,111,647,678 1,088,851,178

Less: Impairment loss (15,077,596) (15,077,596)
----------------------------------- -----------------------------------
1,096,570,082 1,073,773,582
----------------------------------- -----------------------------------

Page 55
 Registration No: 200401027554 (666062 – A)

136 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023

SHIN YANG
(Formerly GROUP
known as Shin BERHAD
Yang Shipping Corporation Berhad)
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia)
NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

7. INVESTMENT IN SUBSIDIARIES (CONT’D)

The details of the subsidiaries are as follows:-

Principal Place
of Business/ Percentage of Issued Share Principal
Country of Capital Held by Parent Activities
Name Of Subsidiaries Incorporation 2023 2022
% %

Danum Shipping Malaysia 100% 100% International shipping

Sdn. Bhd. operations for liquid
chemical products

Piasau Slipways Malaysia 100% 100% Shipbuilding and

Sdn. Bhd. ship repairing, and
fabrication of metal
structures

Shinline Sdn. Bhd. Malaysia 100% 100% International shipping

operations

Shin Yang Shipping Malaysia 100% 100% Domestic and

Sdn. Bhd. regional shipping
operations

Shin Yang Shipyard Malaysia 100% 100% Shipbuilding and ship

Sdn. Bhd. repairing, and
fabrication of metal
structures

Thailine Sdn. Bhd. Malaysia 100% 100% International shipping

operations

Hock Leong Shipping Malaysia 70% 70% Shipping and

Sdn. Bhd. forwarding agency

Dynasys Technology & Malaysia 100% 100% Engineering

Engineering Sdn. Bhd. consultation, trading

Melinau Transport Malaysia 100% 100% Transportation and

Sdn. Bhd. hiring services

Melinau Container Malaysia 50.50% 50.50% Transportation and

Services Sdn. Bhd. hiring services

Page 56
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 137
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

7. INVESTMENT IN SUBSIDIARIES (CONT’D)

Principal Place
of Business/ Percentage of Issued Share Principal
Country of Capital Held by Parent Activities
Name Of Subsidiaries Incorporation 2023 2022
% %

Kuching Barrage Malaysia 100% 100% Operations and

Management Sdn. Bhd. maintenance of a
barrage

Piasau Gas Sdn. Bhd. Malaysia 100% - Manufacturing,

distribution and
marketing of industrial
gases, provision of
services and
maintenance and
trading in welding
equipment and
machinery
Subsidiary of Danum
Shipping Sdn. Bhd.
Sinar Asiamas Malaysia 100% 100% International shipping
Sdn. Bhd. operations

Subsidiary of Shin Yang

Shipping Sdn. Bhd.
Gemilang Raya Maritime Malaysia - - Wound up by the
Sdn. Bhd.* Court under the
provisions of Section
465(1)(c) and/or (h) of
the Companies Act
2016
*The subsidiary was audited by other firms of chartered accountants.

(a) During the current financial year, the Company has acquired 100% equity interests in Piasau
Gas Sdn. Bhd. The details of the acquisition are disclosed in Note 37 to the financial statements.

(b) During the previous financial year, the Company has acquired 50.50% equity interests in
Melinau Container Services Sdn. Bhd. and 100% equity interests in Kuching Barrage
Management Sdn. Bhd. The details of the acquisition are disclosed in Note 37 to the financial
statements.

(c) Non-controlling interests

None of the subsidiaries with non-controlling interests are material to the Group. Accordingly,
the disclosure requirements of MFRS 12. Disclosure of Interests in Other Entities, are not
presented.

Page 57
 Registration No: 200401027554 (666062 – A)
138 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
NOTES TO
(Incorporated THE FINANCIAL STATEMENTS
in Malaysia)
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

8. INVESTMENT IN ASSOCIATES

The Group The Company

2023 2022 2023 2022
RM RM RM RM

Unquoted share, at cost 3,968,946 3,968,946 682,500 682,500

Share of post acquisition reserves (567,637) 1,035,886 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
3,401,309 5,004,832 682,500 682,500
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

(a) The details of the associates are as follows:-

Principal Place
of Business/ Principal
Country of Percentage of Ownership Activities
Name Of Associates Incorporation 2023 2022
% %

Melinau Shipping Malaysia 39% 39% Shipping and

Sdn. Bhd.* forwarding agency

Associate of Shin Yang

Shipping Sdn. Bhd.

PT Shinline* Indonesia 49% 49% Investment holding

Shin Yang FZC* United Arab 49% 49% Investment holding

Emirates

Associate of PT Shinline

PT Baruna Adiprasetya* Indonesia 49% 49% Inactive

Associate of Shin Yang FZC

Deena Shipping L.L.C.* United Arab 49% 49% Offshore and

Emirates marine related
shipping business,
cargo services and
chartering

* These associates were audited by other firms of chartered accountants.

Page 58
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 139
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

8. INVESTMENT IN ASSOCIATES (CONT’D)

The Group has not recognised losses relating to PT Shinline where its share of losses exceeds the
Group’s interest in these associates. The Group’s cumulative share of unrecognised losses at the
reporting date was RM1,229,219 (2022: RM1,191,506) of which RM37,713 (2022: RM35,673) was
the share of the current year’s loss. The Group has no obligation in respect of these losses.

(b) Summarised financial information in respect of the Group's material associates is set out below.
The summarised financial information represents the amount in the MFRS financial statements
of the associates and not the Group's share of those amounts.
Melinau Shipping Sdn. Bhd.
2023 2022
RM RM

Non-current assets 476,719 584,408

Current assets 15,015,172 16,187,921
Non-current liabilities (36,562) (60,839)
Current liabilities (1,896,529) (3,200,753)
----------------------------------- -----------------------------------
13,558,800 13,510,737
----------------------------------- -----------------------------------

Revenue 4,754,817 4,681,677

Profit for the financial year 72,607 599,993
----------------------------------- -----------------------------------

Group’s share of profit for the financial year 28,317 233,997

Dividend received 9,750 68,250
----------------------------------- -----------------------------------

Reconciliation of Net Assets to Carrying Amount

Group’s share of net assets 2,830,979 2,812,234

----------------------------------- -----------------------------------

Carrying amount of the Group’s interests

in this associate 2,830,979 2,812,234
----------------------------------- -----------------------------------

Page 59
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023
140

9. PROPERTY AND EQUIPMENT

Acquisition Disposals/ Reassessment Classified Depreciation

At of De- of lease as held for Charges At
1.7.2022 Additions Subsidiaries recognition Transfer liabilities sale Impairment (Note 34) 30.6.2023
The Group RM RM RM RM RM RM RM RM RM RM

2023
30 JUNE 2023 (Cont’d)

Carrying amount
SHIN YANG GROUP BERHAD

Owned assets
Dry docking
expenses 3,814,837 2,867,878 - - - - - - (1,616,413) 5,066,302
Land, buildings,
jetty, wharfs
and slipways 196,380,536 7,597,267 11,106,708 - 3,919,000 - - - (7,959,127) 211,044,384
(Formerly known as Shin Yang Shipping Corporation Berhad)

Motor vehicles 4,022,389 1,278,381 16 (5) - - - - (863,325) 4,437,456

Office equipment,
furniture and
fittings 3,401,585 1,083,292 108,800 (2,480) 27,500 - - - (1,053,129) 3,565,568
Plant and
machinery 73,381,998 11,928,872 9,906,573 (21,051) 11,297 - - - (11,522,791) 83,684,898
Shipping equipment
NOTES TO THE FINANCIAL STATEMENTS

and machinery 39,681,949 14,929,038 - (13,051) 3,668,927 - (113,609) (1,998) (8,790,278) 49,360,978
Vessels 538,166,810 - - (17,875,207) 17,680,687 - (11,071,667) (3,180,916) (60,902,196) 462,817,511

Page 60
ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

9. PROPERTY AND EQUIPMENT (CONT’D)

Acquisition Disposals/ Reassessment Classified Depreciation

At of De- of lease as held for Charges At
1.7.2022 Additions Subsidiaries recognition Transfer liabilities sale Impairment (Note 34) 30.6.2023
The Group RM RM RM RM RM RM RM RM RM RM

2023

Carrying amount (Cont’d)

Owned assets

Capital work-in-
progress 15,082,833 34,616,848 264,485 - (24,045,943) - - - - 25,918,223
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
873,932,937 74,301,576 21,386,582 (17,911,794) 1,261,468 - (11,185,276) (3,182,914) (92,707,259) 845,895,320

Right-of-use assets
Land and buildings 79,749,871 132,485 8,910,470 - (1,261,468) 81,482 - - (2,143,579) 85,469,261

79,749,871 132,485 8,910,470 - (1,261,468) 81,482 - - (2,143,579) 85,469,261

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
953,682,808 74,434,061 30,297,052 (17,911,794) - 81,482 (11,185,276) (3,182,914) (94,850,838) 931,364,581
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
ANNUAL REPORT 2023

Page 61
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD

30 JUNE 2023 (Cont’d)

NOTES TO THE FINANCIAL STATEMENTS
141
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023
142
9. PROPERTY AND EQUIPMENT (CONT’D)

Acquisition Disposals/ Reassessment Depreciation

At of De- of lease Charges At
1.7.2021 Additions Subsidiaries recognition Transfer liabilities (Note 34) 30.6.2022
The Group RM RM RM RM RM RM RM RM

2022
30 JUNE 2023 (Cont’d)

Carrying amount
SHIN YANG GROUP BERHAD

Owned assets
Dry docking
expenses 3,789,058 1,388,142 - - - - (1,362,363) 3,814,837
Land, buildings,
jetty, wharfs
and slipways 201,614,098 562,947 391,320 (41,739) 963,702 - (7,109,792) 196,380,536
(Formerly known as Shin Yang Shipping Corporation Berhad)

Motor vehicles 4,515,092 312,000 113,213 (2,627) - - (915,289) 4,022,389

Office equipment,
furniture and
fittings 3,798,680 440,943 307,143 (17,795) - - (1,127,386) 3,401,585
Plant and
machinery 66,079,896 6,048,530 9,409,725 (88,009) - - (8,068,144) 73,381,998
Shipping equipment
and machinery 30,637,977 17,055,382 - (17) 776,079 - (8,787,472) 39,681,949
NOTES TO THE FINANCIAL STATEMENTS

Vessels 601,771,948 - - (2,057,167) - - (61,547,971) 538,166,810

Page 62
ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

9. PROPERTY AND EQUIPMENT (CONT’D)

Acquisition Disposals/ Reassessment Depreciation

At of De- of lease Charges At
1.7.2021 Additions Subsidiaries recognition Transfer liabilities (Note 34) 30.6.2022
The Group RM RM RM RM RM RM RM RM

2022

Carrying amount (Cont’d)

Owned assets

Capital work-in-
progress 7,883,756 10,642,352 38,332 (1,729,126) (1,752,481) - - 15,082,833
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
920,090,505 36,450,296 10,259,733 (3,936,480) (12,700) - (88,918,417) 873,932,937

Right-of-use assets
Land and buildings 80,005,644 1,503,722 21,791 (23,691) 12,700 89,153 (1,859,448) 79,749,871

80,005,644 1,503,722 21,791 (23,691) 12,700 89,153 (1,859,448) 79,749,871

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1,000,096,149 37,954,018 10,281,524 (3,960,171) - 89,153 (90,777,865) 953,682,808
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
ANNUAL REPORT 2023

Page 63
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD

30 JUNE 2023 (Cont’d)

NOTES TO THE FINANCIAL STATEMENTS
143
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023
144

9. PROPERTY AND EQUIPMENT (CONT’D)

Depreciation
At Charges At
1.7.2022 Additions (Note 34) 30.6.2023
The Company RM RM RM RM

2023
30 JUNE 2023 (Cont’d)
SHIN YANG GROUP BERHAD

Carrying amount

Owned assets
Land and buildings 48,284,678 99,882 (837,764) 47,546,796
Office equipment, furniture and fittings 624,141 109,747 (339,935) 393,953
Motor vehicles 42,302 318,000 (90,000) 270,302
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
48,951,121 527,629 (1,267,699) 48,211,051
(Formerly known as Shin Yang Shipping Corporation Berhad)

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS

Page 64
ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

9. PROPERTY AND EQUIPMENT (CONT’D)

Depreciation
At Charges At
1.7.2021 Additions Disposals Reclassification (Note 34) 30.6.2022
The Company RM RM RM RM RM RM

2022

Carrying amount

Owned assets
Land and buildings 48,301,414 - - 780,144 (796,880) 48,284,678
Office equipment, furniture and fittings 991,300 140,605 (86) - (507,678) 624,141
Capital work-in-progress 160,000 620,144 - (780,144) - -
Motor vehicles 98,704 - - - (56,402) 42,302
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
49,551,418 760,749 (86) - (1,360,960) 48,951,121
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
ANNUAL REPORT 2023

Page 65
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD

30 JUNE 2023 (Cont’d)

NOTES TO THE FINANCIAL STATEMENTS
145
 Registration No: 200401027554 (666062 – A)
146 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
NOTES TO
(Incorporated THE FINANCIAL STATEMENTS
in Malaysia)
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

9. PROPERTY AND EQUIPMENT (CONT’D)

Accumulated Carrying
At Cost Depreciation Amount
The Group RM RM RM

30.6.2023

Owned assets

Dry docking expenses 16,006,790 (10,940,488) 5,066,302

Land, buildings, jetty, wharfs and
slipways 324,715,910 (113,671,526) 211,044,384
Motor vehicles 18,519,225 (14,081,769) 4,437,456
Office equipment, furniture and fittings 22,353,860 (18,788,292) 3,565,568
Plant and machinery 422,642,726 (338,957,828) 83,684,898
Shipping equipment and machinery 193,826,047 (144,465,069) 49,360,978
Vessels 1,203,537,103 (740,719,592) 462,817,511
Capital work-in-progress 25,918,223 - 25,918,223
----------------------------------------------------------------------------------------------------------------------------------
2,227,519,884 (1,381,624,564) 845,895,320
----------------------------------------------------------------------------------------------------------------------------------

Right-of-use assets

Land and buildings 101,911,348 (16,442,087) 85,469,261

----------------------------------------------------------------------------------------------------------------------------------
2,329,431,232 (1,398,066,651) 931,364,581
----------------------------------------------------------------------------------------------------------------------------------

Page 66
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 147
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

9. PROPERTY AND EQUIPMENT (CONT’D)

Accumulated Carrying
At Cost Depreciation Amount
The Group RM RM RM

30.6.2022

Owned assets

Dry docking expenses 13,138,912 (9,324,075) 3,814,837

Land, buildings, jetty, wharfs and
slipways 299,464,840 (103,084,304) 196,380,536
Motor vehicles 16,596,879 (12,574,490) 4,022,389
Office equipment, furniture and fittings 20,707,667 (17,306,082) 3,401,585
Plant and machinery 389,865,802 (316,483,804) 73,381,998
Shipping equipment and machinery 176,445,522 (136,763,573) 39,681,949
Vessels 1,274,133,895 (735,967,085) 538,166,810
Capital work-in-progress 15,082,833 - 15,082,833
----------------------------------------------------------------------------------------------------------------------------------
2,205,436,350 (1,331,503,413) 873,932,937
----------------------------------------------------------------------------------------------------------------------------------

Right-of-use assets

Land and buildings 94,152,026 (14,402,155) 79,749,871

----------------------------------------------------------------------------------------------------------------------------------
2,299,588,376 (1,345,905,568) 953,682,808
----------------------------------------------------------------------------------------------------------------------------------

Page 67
 Registration No: 200401027554 (666062 – A)
148 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
NOTES TO
(Incorporated THE FINANCIAL STATEMENTS
in Malaysia)
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

9. PROPERTY AND EQUIPMENT (CONT’D)

Accumulated Carrying
At Cost Depreciation Amount
The Company RM RM RM

30.6.2023

Owned assets

Land and buildings 54,432,620 (6,885,824) 47,546,796

Office equipment, furniture and fittings 5,885,862 (5,491,909) 393,953
Motor vehicles 600,011 (329,709) 270,302
----------------------------------------------------------------------------------------------------------------------------------
60,918,493 (12,707,442) 48,211,051
----------------------------------------------------------------------------------------------------------------------------------

30.6.2022

Owned assets

Land and buildings 54,332,738 (6,048,060) 48,284,678

Office equipment, furniture and fittings 5,806,115 (5,181,974) 624,141
Motor vehicles 282,011 (239,709) 42,302
----------------------------------------------------------------------------------------------------------------------------------
60,420,864 (11,469,743) 48,951,121
----------------------------------------------------------------------------------------------------------------------------------

(a) Included in the property and equipment of the Group and the Company were motor vehicles
with a total carrying amount of RM8,206,724 (2022 – RM27,648,170) and RM270,300 (2022 –
Nil) held under hire purchase arrangements. These assets have been pledged as security for
the hire purchase payables of the Group and the Company as disclosed in Note 24 to the
financial statements.

(b) Titles of the certain leasehold land of the Group with the carrying value of RM14,257,580 (2022
– RM14,440,239) have yet to be issued by the authority.

Page 68
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 149
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

9. PROPERTY AND EQUIPMENT (CONT’D)

Asset pledged as security

The net carrying amount of property and equipment pledged for borrowing as referred in Notes 25
to 28 are as follows:

The Group The Company

2023 2022 2023 2022
RM RM RM RM

Land and buildings 85,388,436 99,229,182 35,142,498 35,564,824

Plant and machinery 37,734,000 40,650,000 - -
Vessels 50,870,140 80,813,763 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
173,992,576 220,692,945 35,142,498 35,564,824
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

Right-of-use assets

The Group has lease contracts for land and buildings used in its operations.

There are several lease contracts that include extension and termination options. These options
are negotiated by management to provide flexibility in managing the leased-asset portfolio and
align with the Group’s business needs. Management exercises significant judgement in
determining whether these extensions and termination options are reasonably certain to be
exercised.

10. AMOUNTS OWING BY/(TO) SUBSIDIARIES

The amounts owing by/(to) subsidiaries represent non-trade transactions which are unsecured,
interest-free and repayable on demand.

11. OTHER INVESTMENTS

The Group
2023 2022
RM RM

Equity instruments (quoted in Malaysia), at fair value 58,800 58,800

----------------------------------- -----------------------------------

Market value of quoted shares in Malaysia 58,800 58,800

----------------------------------- -----------------------------------

The fair value of equity investments were directly measured using their unadjusted closing prices
in active markets (i.e. Level 1).

Page 69
 Registration No: 200401027554 (666062 – A)
150 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
NOTES TO
(Incorporated THE FINANCIAL
in Malaysia) STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

12. GOODWILL

The Group
2023 2022
RM RM

Cost:

At 30 June 2023/2022 2,063,893 2,063,893

----------------------------------- -----------------------------------

Carrying amount of goodwill on business acquisition is related to the acquisition of a shipping

agency in prior years. The Group performed its annual impairment test in June 2023 and 2022.

The recoverable amounts of the CGUs have been determined based on value in use calculations
using cash flow projections approved by management. The pre-tax discount rate applied to the
cash flow projections is 11.18% (2022 – 11.45%).

Management determined budgeted profit margin based on past performance and its expectations
of the market conditions. The pre-tax discount rates used reflected specific risks relating to the
shipping industry. The forecasted growth rates were based on management's estimate which did
not exceed the long term average growth rate for the industry.

13. DEFERRED TAX ASSETS/(LIABILITIES)

Acquisition Recognised in
As of Profit or Loss At
1.7.2022 Subsidiaries (Note 35) 30.6.2023
The Group RM RM RM RM

2023

Deferred Tax Liabilities

Property and equipment (87,499,437) (5,243,467) 6,989,914 (85,752,990)

-----------------------------------------------------------------------------------------------------------------------------------------------------

Deferred Tax Assets

Unabsorbed capital allowances 32,231,273 - (13,505,867) 18,725,406

Others 2,604,196 1,001,157 3,605,353
Unused tax losses 2,259,584 - 2,529,736 4,789,320
Unutilised reinvestment
allowances 8,405,042 - - 8,405,042
45,500,095 - (9,974,974) 35,525,121
-----------------------------------------------------------------------------------------------------------------------------------------------------
(41,999,342) (5,243,467) (2,985,060) (50,227,869)
-----------------------------------------------------------------------------------------------------------------------------------------------------

Page 70
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 151
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

13. DEFERRED TAX ASSETS/(LIABILITIES) (CONT’D)

Acquisition Recognised in
As of Profit or Loss At
1.7.2021 Subsidiaries (Note 35) 30.6.2022
The Group RM RM RM RM

2022

Deferred Tax Liabilities

Property and equipment (91,607,007) (1,311,766) 5,419,336 (87,499,437)

-----------------------------------------------------------------------------------------------------------------------------------------------------

Deferred Tax Assets

Unabsorbed capital allowances 41,035,719 654,800 (9,459,246) 32,231,273

Others 1,746,124 858,072 2,604,196
Unused tax losses 46,724 - 2,212,860 2,259,584
Unutilised reinvestment
allowances 3,939,144 - 4,465,898 8,405,042
46,767,711 654,800 (1,922,416) 45,500,095
-----------------------------------------------------------------------------------------------------------------------------------------------------
(44,839,296) (656,966) 3,496,920 (41,999,342)
----------------------------------------------------------------------------------------------------------------------------------------------------

The Group The Company

2023 2022 2023 2022
RM RM RM RM

Analysed as:-

Deferred tax assets 836,028 1,021,430 - -

Deferred tax liabilities (51,063,897) (43,020,772) - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
(50,227,869) (41,999,342) - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
Deferred tax assets have not
been recognised in respect
of the following items:-

Unabsorbed capital allowances 7,251,084 11,922,005 3,051,301 3,206,612

Unutilised tax losses 60,750,315 48,120,206 1,035,413 1,035,413
Other deductible temporary
differences 7,565,451 8,590,061 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
75,566,850 68,632,272 4,086,714 4,242,025
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

Page 71
 Registration No: 200401027554 (666062 – A)
152 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated
NOTES TO in Malaysia)
THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

13. DEFERRED TAX ASSETS/(LIABILITIES) (CONT’D)

At the end of the reporting period, the Group and the Company have unutilised tax losses and
unabsorbed capital allowances available for offset against future taxable profits in which the losses
arose, as follows:
The Group The Company
2023 2022 2023 2022
RM RM RM RM

Unutilised tax losses 63,660,120 57,535,139 1,035,413 1,035,413

Unabsorbed capital allowances 134,628,207 118,183,245 3,051,301 3,206,612
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
198,288,327 175,718,384 4,086,714 4,242,025
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

Based on the current legislation, the unutilised tax losses are allowed to be utilised for 10
consecutive years of assessment immediately following that year of assessment while the
unabsorbed capital allowances are allowed to be carried forward indefinitely.

14. INVENTORIES

The Group
2023 2022
RM RM

Consumables 28,693,322 28,941,892

Petrol, oil and lubricants on board 5,056,507 5,190,212
Work-in-progress 151,463 -
----------------------------------- -----------------------------------
33,901,292 34,132,104
----------------------------------- -----------------------------------

Page 72
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 153
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

15. TRADE RECEIVABLES

The Group The Company

2023 2022 2023 2022
RM RM RM RM

Third parties 150,307,753 141,140,517 - -

Related companies 40,799,166 37,187,234 - -
Associates 1,245,493 27,147,847 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
192,352,412 205,475,598 - -
Allowance for impairment losses:-
- third parties (32,854,346) (21,114,820) - -
- related companies (1,731,494) (2,384,758) - -
- associates (412,002) (412,002) - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
157,354,570 181,564,018 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

Allowance for impairment losses:-

At 1 July 23,911,580 13,912,515 - -
Additions during the financial year 13,489,084 10,448,952 - -
Reversal during the financial year (2,162,964) (487,447) - -
Written off during the
financial year (239,858) - - -
Acquisition of subsidiaries
during the financial year - 37,560 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
At 30 June 34,997,842 23,911,580 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

Related companies are companies within Shin Yang Holding Sendirian Berhad Group.

(a) The Group’s and the Company’s normal trade credit terms range from 7 to 90 (2022 - 7 to 90)
days.

(b) Included in trade receivables of the Group is an amount of RM6,905,019 (2022 –

RM33,186,084) owing by companies in which certain directors have substantial financial
interests.

Page 73
 Registration No: 200401027554 (666062 – A)
154 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
NOTES TO
(Incorporated THE FINANCIAL
in Malaysia) STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

16. OTHER RECEIVABLES AND DEPOSITS

The Group The Company

2023 2022 2023 2022
RM RM RM RM
Current:
Other receivables:-
Third parties 13,397,086 13,685,373 514,337 266,083
Related companies 3,919 3,553 - -
Associates 6,582,187 7,924,673 70,376 1,465,876
19,983,192 21,613,599 584,713 1,731,959
Allowance for impairment losses:-
- third parties (12,433,014) (10,587,476) - -
- associates (6,458,798) (6,458,798) - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
1,091,380 4,567,325 584,713 1,731,959
Deposits 11,839,539 2,851,169 97,930 92,530
Prepayments 12,783,501 11,706,857 - 1,011
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
25,714,420 19,125,351 682,643 1,825,500
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
Non-current:
Deposits 953,820 2,279,650 953,820 2,279,650
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
26,668,240 21,405,001 1,636,463 4,105,150
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

Allowance for impairment losses:-

At 1 July 17,046,274 17,046,274 - -
Additions during the financial year 1,845,538 - - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
At 30 June 18,891,812 17,046,274 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

Related companies are companies within Shin Yang Holding Sendirian Berhad Group.

Included in other receivables of the Group is amount of RM90,231 (2022 – RM86,912) owing by
companies in which certain directors have substantial financial interest.

The amounts owing by related companies and associates are unsecured, interest-free and
repayable on demand.

Page 74
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 155
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

17. CONTRACT ASSETS/(LIABILITIES)

The Group
2023 2022
RM RM

Contract Assets

Contract assets relating to service contracts 2,089,683 2,455,328

----------------------------------- -----------------------------------

Contract Liabilities

Contract liabilities relating to service contracts (20,349,713) (8,050,065)

----------------------------------- -----------------------------------

(a) The contract assets primarily relate to the Group’s rights to consideration for work performed
but not billed at the reporting date. The contract assets are transferred to receivables when
the rights become unconditional. This usually occurs when the Group issues an invoice to the
customer.

(b) The contract liabilities primarily relate to the advance consideration received from customers
for freight services and construction contracts, for which revenue is recognised over time.

(c) The changes to contract asset and contract liability balances during the financial year are
summarised below:-

The Group
2023 2022
RM RM

At 1 July (5,594,737) (8,128,266)

Revenue recognised in profit or loss during
the financial year 55,207,654 128,137,289
Billings to customers during the financial year (67,872,947) (125,603,760)
----------------------------------- -----------------------------------
At 30 June (18,260,030) (5,594,737)
----------------------------------- -----------------------------------

Analysed as follows:
Contract assets 2,089,683 2,455,328
Contract liabilities (20,349,713) (8,050,065)
----------------------------------- -----------------------------------
(18,260,030) (5,594,737)
----------------------------------- -----------------------------------

Page 75
 Registration No: 200401027554 (666062 – A)
156 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
NOTES TO
(Incorporated THE FINANCIAL STATEMENTS
in Malaysia)
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

17. CONTRACT ASSETS/(LIABILITIES) (CONT’D)

(d) The following table includes revenue expected to be recognised in the future related to
performance obligations that are unsatisfied or partially unsatisfied at the reporting date.

The Group
2023 2022
RM RM

Within one year

- Freight and lighterage charges 4,462,426 8,050,065
- Shipbuilding 57,740,257 -
- Ship repairs 64,648,501 809,677
----------------------------------- -----------------------------------
126,851,184 8,859,742
----------------------------------- -----------------------------------

18. DERIVATIVE LIABILITIES

Contract/Notional
Amount The Group
2023 2022 2023 2022
USD USD RM RM

Derivative liabilities

Forward currency contract 2,150,000 5,414,186 372,480 902,138

----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

The Group does not apply hedge accounting.

(a) Forward currency contracts are used to hedge the Group's sales denominated in United States
Dollar (USD) for which firm commitments exists at the end of the reporting period. The
settlement dates of the forward currency contracts range between 4 to 6 (2022 - 1 to 4) months
after the end of reporting period.

(b) The fair value of equity investments were directly measured using their unadjusted closing
prices in active markets (i.e. Level 1).

19. NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE

Non-current assets held for sale comprised of vessels which the Group expected to sell within the
next 12 months from the reporting date.

Page 76
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 157
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

20. SHARE CAPITAL

The Group and The Company

2023 2022 2023 2022
Number of Shares RM RM

Issued and Fully Paid-Up

Ordinary Shares

At 1 July and 30 June 1,200,000,000 1,200,000,000 1,216,972,062 1,216,972,062

----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

The holders of ordinary shares are entitled to receive dividends as and when declared by the
Company, and are entitled to one vote per ordinary share at meetings of the Company.

21. TREASURY SHARES

During the financial year, the Company has purchased 12,715,000 (2022 – 19,428,400) of its
issued ordinary shares from Bursa Malaysia Securities Berhad at a average price of RM0.65 (2022
- RM0.39) per share. The total consideration paid for the purchase was RM8,204,425 (2022 –
RM7,588,104) including transaction costs. The ordinary shares purchased are held as treasury
shares in accordance with Section 127(6) of the Companies Act 2016.

Of the total 1,200,000,000 (2022 - 1,200,000,000) issued and fully paid-up ordinary shares at the
end of the reporting period, 64,169,700 (2022 – 51,454,700) ordinary shares are held as treasury
shares by the Company. None (2022 - none) of the treasury shares were resold during the financial
year.

22. OTHER RESERVES

Merger
Deficits
Group RM

At 1 July 2022 and 30 June 2023 (297,861,069)

-----------------------------------

Merger deficits

The merger deficits reserve represents the difference between the value of the considerations paid
and the reserves of the two “acquired” entities, Shin Yang Shipping Sdn. Bhd. and Danum Shipping
Sdn. Bhd. as a consequent of applying the pooling of interest method.

Page 77
 Registration No: 200401027554 (666062 – A)
158 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
NOTES TOin Malaysia)
(Incorporated THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

23. LEASE LIABILITIES

The Group
2023 2022
RM RM

At 1 July 425,803 463,494

Acquisition of subsidiaries - 22,810
Additions 132,485 115,739
Interest expense recognised
in profit or loss 14,020 19,393
Changes due to reassessment
of lease term 81,482 89,153
Derecognition due to lease
modification - (23,866)
Repayment of principal (290,213) (241,527)
Repayment of interest expenses (14,020) (19,393)
----------------------------------- -----------------------------------
At 30 June 349,557 425,803
----------------------------------- -----------------------------------

Analysed by:-
Current liabilities 238,521 286,879
Non-current liabilities 111,036 138,924
----------------------------------- -----------------------------------
349,557 425,803
----------------------------------- -----------------------------------

The effective interest rates as at reporting date is 6.70% (2022 – 4.06% to 6.70%) per annum.

Page 78
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 159
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

24. BANK BORROWINGS

The Group The Company

2023 2022 2023 2022
RM RM RM RM

Non-current
Secured:
Term loans (Note 25) 28,979,897 41,319,917 4,004,137 5,554,141
Hire purchase payables 7,469,851 8,976,586 115,507 -

36,449,748 50,296,503 4,119,644 5,554,141

----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
Current
Unsecured:
Bank overdrafts (Note 26) 4,784,767 9,646,683 - -
Bankers acceptances (Note 27) 37,535,999 68,857,000 - -
Revolving credits (Note 28) 16,844,400 24,082,600 - -
Flexi financing trade loan
(Note 27) 6,749,582 - - -
65,914,748 102,586,283 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

Secured:
Bank overdrafts (Note 26) 1,001,659 8,135,765 - -
Bankers acceptances (Note 27) 6,831,001 1,556,000 - -
Revolving credits (Note 28) 8,000,000 18,000,000 - 3,000,000
Term loans (Note 25) 12,340,019 16,968,581 1,550,004 1,550,004
Hire purchase payables 8,502,730 8,635,524 94,753 -
36,675,409 53,295,870 1,644,757 4,550,004
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
102,590,157 155,882,153 1,644,757 4,550,004
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
139,039,905 206,178,656 5,764,401 10,104,145
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

The ranges of interest rates for bank borrowings are as follow:

The Group The Company

2023 2022 2023 2022
% % % %

Bank overdrafts 7.43 - 8.18 6.48 – 7.45 - -

Floating rates - loans 5.34 - 5.76 3,99 – 4.41 5.60 4.41
Revolving credits 5.36 – 7.56 2.53 – 4.17 - 3.64
Bankers acceptances/
Flexi financing trade loan 3.85 – 5.29 2.58 – 3.78 - -
Hire purchase payables 4.06 – 6.01 4.06 – 5.32 4.06 -

Page 79
 Registration No: 200401027554 (666062 – A)
160 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated
NOTES TOin THE
Malaysia)
FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

25. TERM LOANS (SECURED)

The Group The Company

2023 2022 2023 2022
RM RM RM RM

Current liabilities 12,340,019 16,968,581 1,550,004 1,550,004

Non-current liabilities 28,979,897 41,319,917 4,004,137 5,554,141
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
41,319,916 58,288,498 5,554,141 7,104,145
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

(a) The term loans are secured by a first party legal charge over the Group's and the Company's
property and equipment, and jointly and severally guaranteed by certain Directors of the
Company.

(b) The fair values of long-term loans were measured using present value technique by
discounting the expected future cash flows using observable current market interest rates for
similar liabilities (i.e. Level 2). The fair values measured were considered to be reasonably
close to the carrying amounts reported as the observable current market interest rates also
approximated to the effective interest rates of term loans.

26. BANK OVERDRAFTS

Bank overdrafts are secured by charges over leasehold land and buildings of the Group, and joint
and several guaranteed by certain Directors of the Company.

27. BANKERS ACCEPTANCE/FLEXI FINANCING TRADE LOAN

Bankers’ acceptances are secured by charges over leasehold land and buildings of the Group and
guaranteed by certain directors of the Company.

The flexi financing trade loan is secured by joint and several guarantee by certain directors of the
Group and a third party, and corporate guarantee provided by the Company.

28. REVOLVING CREDITS

Revolving credits are secured by charges over leasehold land and buildings of the Group and of
the Company and guaranteed by certain Directors of the Company.

Page 80
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 161
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

29. TRADE PAYABLES

The Group
2023 2022
RM RM

Third parties 83,388,170 102,893,548

Related companies 12,612,383 12,850,860
Associates 11,902,034 12,579,478
----------------------------------- -----------------------------------
107,902,587 128,323,886
----------------------------------- -----------------------------------

Related companies are companies within Shin Yang Holding Sendirian Berhad Group.

(a) The normal trade credit terms granted to the Group range from 30 to 180 (2022 - 30 to 180)
days.

(b) Included in trade payables of the Group is an amount of RM16,302,909 (2022 –

RM12,429,651) owing to the companies in which certain directors have substantial financial
interests.

30. OTHER PAYABLES AND ACCRUALS

The Group The Company
2023 2022 2023 2022
RM RM RM RM
Other payables:-
Third parties 7,006,501 4,151,360 470,627 412,865
Related companies 610,721 702,601 61,811 98,165
Holding company 244,574 330,258 - -
Associates 17,137 - - -
7,878,933 5,184,219 532,438 511,030

Accruals 9,486,107 9,857,407 223,224 171,970

Deposits:-
- Third parties 7,337,573 6,152,409 134,340 134,340
- Subsidiaries - - 442,500 442,000
- Associates 31,000 31,000 31,000 31,000
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
24,733,613 21,225,035 1,363,502 1,290,340
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

Included in other payables of the Group is an amount of RM187,600 (2022: RM188,468) owing to
companies in which certain Directors of the Company have substantial financial interests. These
amounts are non-interest bearing and are repayable on demand.

The amounts owing to related companies, holding company and associates are unsecured,
interest-free and repayable on demand.

Page 81
 Registration No: 200401027554 (666062 – A)
162 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
NOTES TO
(Incorporated THE FINANCIAL
in Malaysia) STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

31. PROVISION FOR ONEROUS CONTRACTS

The Group
2023 2022
RM RM

At 1 July 470,996 361,449

Provision made during the year - 470,996
Provision utilised during the year (470,996) (361,449)
----------------------------------- -----------------------------------
- 470,996
----------------------------------- -----------------------------------

Analysed by:-
Current liabilities - 470,996
----------------------------------- -----------------------------------

32. REVENUE

The Group The Company

2023 2022 2023 2022
RM RM RM RM

Revenue from Contracts with

Customers

Recognised over time

Freight and lighterage charge 692,674,119 604,811,239 - -
Land transportation 47,462,415 46,743,016 - -
Shipbuilding 4,279,820 67,409,897 - -
Ship repairs and metal fabrication 44,555,201 56,993,493 - -
Repair services 2,267,429 909,539 - -
Barrage maintenance fee - 690,615 - -
791,238,984 777,557,799 - -

Recognised at a point in time

Freight forwarding charges 7,123,629 6,036,056 - -
Sales of goods and services 19,551,419 10,331,336 - -
26,675,048 16,367,392 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
817,914,032 793,925,191 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

Page 82
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 163
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

32. REVENUE (CONT’D)

The Group The Company

2023 2022 2023 2022
RM RM RM RM

Revenue from Other Sources

Vessel charter fee 120,826,576 98,378,946 - -

Dividend income from:
- subsidiaries - - 39,655,000 21,925,000
- associates - - 9,750 68,250
Hiring income - 305,686 - -
Rental income 863,760 847,760 5,612,780 3,580,960
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
121,690,336 99,532,392 45,277,530 25,574,210
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
939,604,368 893,457,583 45,277,530 25,574,210
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

33. NET IMPAIRMENT LOSS ON FINANCIAL ASSETS

The Group The Company

2023 2022 2023 2022
RM RM RM RM

Impairment losses:
- trade receivables 13,489,084 10,448,952 - -
- other receivables 1,845,538 - - -
Reversal of impairment losses:
- trade receivables (2,162,964) (487,447) - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
13,171,658 9,961,505 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

Page 83
 Registration No: 200401027554 (666062 – A)
164 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated
NOTES TO in Malaysia)
THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

34. PROFIT BEFORE TAXATION

The Group The Company

2023 2022 2023 2022
RM RM RM RM

Profit before taxation is

arrived at after
charging/(crediting):-

Auditors' remuneration:
- current financial year 254,000 225,500 85,000 75,000
- overprovision in
previous financial years (4,650) (20,800) - (10,000)
Depreciation:
- property and equipment (Note 9) 92,707,259 88,918,417 1,267,699 1,360,960
- right-of-use assets (Note 9) 2,143,579 1,859,448 - -
Directors' fees (Note 40(a)) 124,000 527,000 124,000 527,000
Directors' non-fee emoluments
(Note 40(a))
- salaries, bonus and allowances 6,729,856 3,229,052 4,187,594 1,162,729
- defined contribution benefits 484,014 330,983 232,200 46,440
Fair value loss on investment
securities - 9,600 - -
Fair value changes on forward
contracts (529,658) 800,213 - -
Interest expenses on financial
liabilities that are not fair value
through profit or loss:
- bank overdrafts 668,344 1,239,589 2,479 3,374
- bankers acceptances 2,309,979 2,494,475 - -
- term loans 2,475,211 2,562,015 317,455 333,751
- revolving credits 1,796,217 2,230,189 102,569 160,868
- flexi loans 110,574 19,307 - -
- hire purchase payables 961,828 518,752 8,650 -
Lease interest (Note 23) 14,020 19,393 - -
Hiring charges – short term leases 9,021,617 5,123,395 - -
Impairment loss:
- property and equipment 3,182,914 - - -
(Gain)/loss on foreign
exchange:
- realised 652,599 284,559 - -
- unrealised 2,237,674 (207,833) - -
Property and equipment
written off 1,230 - - -

Page 84
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 165
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

34. PROFIT BEFORE TAXATION (CONT’D)

The Group The Company

2023 2022 2023 2022
RM RM RM RM

Profit before taxation is

arrived at after
charging/(crediting):- (cont’d)

Net change in provision for

onerous contract (470,996) 109,547 - -
Staff costs (including other key
management personnel):
(Note 40(b))
- short-term employee benefits 129,382,952 99,005,001 2,098,907 1,038,325
- defined contribution benefits 6,933,901 4,884,901 174,898 79,741
Rental expenses 1,289,523 596,392 706 -
Interest income on financial
assets that are not fair value
through profit or loss:
- short term deposits (6,048,788) (2,700,540) (1,507,702) (925,548)
- current account (1,937,094) (886,602) (39,078) (18,897)
Net gain on disposal of
property and equipment (12,878,121) (1,465,980) (20,000) (364)
Gain on disposal of non-current
asset held for sale - (471,243) - -
Gain on lease modification - (176) - -
Gain on bargain purchase (14,819,789) (61,723) - -
Rental income (495,820) (167,068) - -
Dividend income:
- associates - - (9,750) (68,250)
- subsidiaries - - (39,655,000) (21,925,000)
- investment securities (1,800) (1,200) - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

35. INCOME TAX EXPENSE

The Group The Company
2023 2022 2023 2022
RM RM RM RM

Current tax expense:

- for the financial year 6,707,996 10,415,783 1,146,603 60,536
- (over)/underprovision in
previous financial years (12,037,779) 1,346,872 - 14,505
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
(5,329,783) 11,762,655 1,146,603 75,041
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

Page 85
 Registration No: 200401027554 (666062 – A)
166 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated
NOTES TO in Malaysia)
THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

35. INCOME TAX EXPENSE (CONT’D)

The Group The Company

2023 2022 2023 2022
RM RM RM RM

Deferred tax (Note 13)

- origination and reversal of
temporary differences 2,942,712 (4,248,704) - -
- underprovision in
previous financial years 42,348 751,784 - -
---------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
2,985,060 (3,496,920) - -
---------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
(2,344,723) 8,265,735 1,146,603 75,041
---------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

A reconciliation of income tax expense applicable to the profit before taxation at the statutory tax
rate to income tax expense at the effective tax rate of the Group and of the Company is as follows:-

The Group The Company

2023 2022 2023 2022
RM RM RM RM

Profit before taxation 180,259,946 151,107,676 37,011,924 20,484,277

----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
Tax at the statutory tax rate of
24% (2022 - 24%) 43,262,387 36,265,842 8,882,862 4,916,226

Tax effects of:

Non-taxable income (43,242,965) (27,766,228) (9,522,000) (5,278,467)
Non-deductible expenses 8,342,948 9,690,187 1,769,274 423,105
Deferred tax assets not
recognised during the
financial year 1,123,860 58,305 16,467 679
Share of results in associates 382,505 (56,159) - -
(Over)/underprovision in
previous financial years:
- current tax expense (12,037,779) 1,346,872 - 14,505
- deferred taxation 42,348 751,784 - -
Others (154,791) 37,232 - (1,007)
Utilisation of deferred tax
assets previously not
recognised (63,236) (12,062,100) - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
Income tax expense for the
financial year (2,344,723) 8,265,735 1,146,603 75,041
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

Page 86
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 167
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

35. INCOME TAX EXPENSE (CONT’D)

The corporate tax rate of the Group and of the Company is 24% (2022 - 24%).

Certain subsidiaries enjoy tax exempt profits arising from its operations of seagoing vessels, under
Section 54A of the Income Tax Act, 1967.

36. EARNINGS PER SHARE

Basic earnings per share amounts are calculated by dividing profit for the year, net of tax,
attributable to owners of the parent by the weighted average number of ordinary shares in issue
during the financial year, excluding treasury shares held by the Company.

The following reflect the profit and share data used in the computation of basic earnings per share
for the years ended 30 June:

The Group
2023 2022
RM RM

Profit attributable to ordinary equity holders of the Company 180,922,574 141,922,475

Weighted average number of ordinary shares in issue 1,142,874,883 1,159,790,392
Basic earnings per share (sen) 15.83 12.24
----------------------------------- -----------------------------------

The Company has not issued any dilutive potential ordinary shares and hence, the diluted earnings
per share is equal to the basic earnings per share.

37. ACQUISITION OF SUBSIDIARIES

37.1 ACQUISITION OF SUBSIDIARIES

On 6 July 2022, the Company acquired 100% equity interests in Piasau Gas Sdn. Bhd. from
its holding company, Shin Yang Corporation Sdn. Bhd. and third parties for a cash
consideration of RM22,796,500.

Page 87
 Registration No: 200401027554 (666062 – A)
168 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated
NOTES TO in Malaysia)
THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

37. ACQUISITION OF SUBSIDIARIES (CONT’D)

37.1 ACQUISITION OF SUBSIDIARIES (CONT’D)

The following summarises the major classes of consideration transferred, and the
recognised amounts of assets acquired and liabilities assumed at the date of acquisition.

The Group
2023
RM

Property and equipment 30,297,052

Trade and other receivables 11,323,078
Inventories 1,595,316
Cash and cash equivalents 2,764,523
Trade and other payables (2,808,584)
Current tax assets 164,934
Hire purchase payable (476,563)
Deferred tax liabilities (5,243,467)
-----------------------------------
Fair value of net identifiable assets acquired 37,616,289
Less: Gain on bargain purchase (14,819,789)
-----------------------------------
Total purchase consideration 22,796,500
Less: Cash and bank balances of subsidiary acquired (2,764,523)
-----------------------------------
Net cash outflow from the acquisition of subsidiaries 20,031,977
-----------------------------------

Impact of Acquisition on the Group’s Results

The acquired subsidiaries have contributed the following results to the Group:-

The Group
2023
RM

Revenue 12,370,701
Profit after taxation 1,900,700
-----------------------------------

If the acquisition had taken place at the beginning of the current financial year, the Group’s
revenue and profit after taxation from continuing operations would have been
RM939,604,368 and RM182,604,669 respectively.

On 27 May 2022, the Company acquired 50.50% equity interests in Melinau Container
Services Sdn. Bhd. from its holding company, Shin Yang Holding Sendirian Berhad and a
third party for a cash consideration of RM2 and 8,800,000 of 5% redeemable preference
shares for a cash consideration of RM8,800,002 from its holding company, Shin Yang
Holding Sendirian Berhad. On 6 May 2022, the Company also acquired 100% equity
interests in Kuching Barrage Management Sdn. Bhd. for a cash consideration of RM600,000.

Page 88
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 169
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

37. ACQUISITION OF SUBSIDIARIES (CONT’D)

37.1 ACQUISITION OF SUBSIDIARIES (CONT’D)

The Group
2022
RM

Property and equipment 10,281,524

Trade and other receivables 6,569,290
Cash and cash equivalents 2,281,000
Trade and other payables (6,645,124)
Current tax assets 46,951
Hire purchase payables (2,332,741)
Lease liabilities (22,810)
Current tax liabilities (171)
Deferred tax liabilities (656,966)
Redeemable preference shares (8,800,000)
-----------------------------------
Fair value of net identifiable assets acquired 720,953
Less: Non-controlling interests (59,228)
Less: Gain on bargain purchase (61,723)
Add: Redeemable preference shares 8,800,000
-----------------------------------
Total purchase consideration 9,400,002
Less: Cash and bank balances of subsidiary acquired (2,281,000)
-----------------------------------
Net cash outflow from the acquisition of subsidiaries 7,119,002
-----------------------------------

Impact of Acquisition on the Group’s Results

The acquired subsidiaries have contributed the following results to the Group:-

The Group
2022
RM

Revenue 2,041,263
Loss after taxation (84,742)
-----------------------------------

If the acquisition had taken place at the beginning of the current financial year, the Group’s
revenue and profit after taxation from continuing operations would have been
RM901,653,887 and RM142,991,332 respectively.

37.2 ACQUISITION OF A SUBSIDIARY SUBSEQUENT TO THE FINANCIAL YEAR END

During next financial year, the Company acquired 60% equity interests in Mewah Exim Sdn.
Bhd. from third parties for a cash consideration of RM9,538,200.

Page 89
 Registration No: 200401027554 (666062 – A)
170 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
SHIN
(FormerlyYANG GROUP
known as Shin BERHAD
Yang Shipping Corporation Berhad)

(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)

(Incorporated in Malaysia)
NOTES TO THE FINANCIAL STATEMENTS
NOTES
30 TO THE
JUNE 2023 FINANCIAL STATEMENTS
(Cont’d)
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

38. DIVIDENDS

The Company
2023 2022
RM RM
Ordinary Shares

Final dividend of 1.25 (2022 – Nil) sen per ordinary share in

respect of the previous financial year 14,315,191 -
----------------------------------- -----------------------------------

At the forthcoming Annual General Meeting, an interim dividend of 3.00 sen per ordinary share in
respect of the current financial year will be proposed for shareholders' approval. The financial
statements for the current financial year do not reflect this proposed dividend. Such dividend, if
approved by the shareholders, will be accounted for in the shareholders’ equity as appropriation of
retained earnings in the financial year ending 30 June 2024.

39. CASH FLOW INFORMATION

(a) The cash disbursed for the purchase of property and equipment and the addition of right-of-
use assets is as follows:-

The Group
2023 2022
RM RM

Property and equipment and right-of-use assets

Cost of property and equipment purchased and

right-of-use assets acquired (Note 9) 74,434,061 37,954,018
Less: Acquired through hire purchase arrangements (8,647,800) (12,656,985)
Less: Additions of new lease liabilities
- right-of-use assets (132,485) (115,739)
----------------------------------- -----------------------------------
65,653,776 25,181,294
----------------------------------- -----------------------------------

The Company
2023 2022
RM RM

Property and equipment

Cost of property and equipment purchased 527,629 760,749

Less: Acquired through hire purchase arrangements (286,200) -
----------------------------------- -----------------------------------
241,429 760,749
----------------------------------- ---------------------------------

Page 90
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

39. CASH FLOW INFORMATION (CONT’D)

(b) The reconciliations of liabilities arising from financing activities are as follows:-

Revolving Bankers’ Flexi Bank Hire Purchase Lease

Term Loans Credits Acceptance Financing Overdrafts Payables Liabilities Total
The Group RM RM RM RM RM RM RM RM

2023

At 1 July 58,288,498 42,082,600 70,413,000 - 17,782,448 17,612,110 425,803 206,604,459

Changes in Financial
Cash Flows

New hire purchase - - - - - 8,647,800 - 8,647,800

New leases (Note 23) - - - - - 132,485 132,485
Proceeds from drawdown - - - 6,749,582 - - - 6,749,582
Repayment of principals (16,968,582) (18,230,000) (26,046,000) - (11,996,022) (10,763,892) (290,213) (84,294,709)
Repayment of interests (2,475,211) (1,796,217) (2,309,979) (110,574) (668,344) (961,828) (14,020) (8,336,173)

(19,443,793) (20,026,217) (28,355,979) 6,639,008 (12,664,366) (3,077,920) (171,748) (77,101,015)

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
ANNUAL REPORT 2023

Page 91
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD

30 JUNE 2023 (Cont’d)

NOTES TO THE FINANCIAL STATEMENTS
171
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

172

39. CASH FLOW INFORMATION (CONT’D)

(b) The reconciliations of liabilities arising from financing activities are as follows:- (Cont’d)
Revolving Bankers’ Flexi Bank Hire Purchase Lease
Term Loans Credits Acceptance Financing Overdrafts Payables Liabilities Total
The Group RM RM RM RM RM RM RM RM
2023
30 JUNE 2023 (Cont’d)
SHIN YANG GROUP BERHAD

Non-cash Changes

Acquisition of new
subsidiaries - - - - - 476,563 - 476,563
Reassessment/
modification of leases
(Note 23) - - - - - - 81,482 81,482
(Formerly known as Shin Yang Shipping Corporation Berhad)

Interest expense recognised

in profit or loss 2,475,211 1,796,217 2,309,979 110,574 668,344 961,828 14,020 8,336,173
Unrealised gain on foreign
exchange - 991,800 - - - - - 991,800

2,475,211 2,788,017 2,309,979 110,574 668,344 1,438,391 95,502 9,886,018

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS

At 30 June 41,319,916 24,844,400 44,367,000 6,749,582 5,786,426 15,972,581 349,557 139,389,462

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Page 92
ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

39. CASH FLOW INFORMATION (CONT’D)

(b) The reconciliations of liabilities arising from financing activities are as follows:- (Cont’d)

Revolving Bankers’ Flexi Bank Hire Purchase Lease

Term Loans Credits Acceptance Financing Overdrafts Payables Liabilities Total
The Group RM RM RM RM RM RM RM RM

2022

At 1 July 65,925,499 74,743,200 79,350,000 895,891 19,768,680 7,712,420 463,494 248,859,184

Changes in Financial
Cash Flows

New hire purchase - - - - - 12,656,985 - 12,656,985

Proceeds from drawdown 10,000,000 - - - - - - 10,000,000
Repayment of principals (17,637,001) (33,566,000) (8,937,000) (895,891) (1,986,232) (5,090,036) (241,527) (68,353,687)
Repayment of interests (2,562,015) (2,230,189) (2,494,475) (19,307) (1,239,589) (518,752) (19,393) (9,083,720)

(10,199,016) (35,796,189) (11,431,475) (915,198) (3,225,821) 7,048,197 (260,920) (54,780,422)

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
-
ANNUAL REPORT 2023

Page 93
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD

30 JUNE 2023 (Cont’d)

NOTES TO THE FINANCIAL STATEMENTS
173
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023
174

39. CASH FLOW INFORMATION (CONT’D)

(b) The reconciliations of liabilities arising from financing activities are as follows:- (Cont’d)

Revolving Bankers’ Flexi Bank Hire Purchase Lease

Term Loans Credits Acceptance Financing Overdrafts Payables Liabilities Total
The Group RM RM RM RM RM RM RM RM
30 JUNE 2023 (Cont’d)

2022
SHIN YANG GROUP BERHAD

Non-cash Changes

Acquisition of
subsidiaries (Note 37) - - - - - 2,332,741 22,810 2,355,551
Acquisition of new leases
(Note 23) - - - - - - 115,739 115,739
Reassessment/
(Formerly known as Shin Yang Shipping Corporation Berhad)

modification of leases
(Note 23) - - - - - - 65,287 65,287
Interest expense recognised
in profit or loss 2,562,015 2,230,189 2,494,475 19,307 1,239,589 518,752 19,393 9,083,720
Unrealised gain on foreign
exchange - 905,400 - - - - - 905,400
NOTES TO THE FINANCIAL STATEMENTS

2,562,015 3,135,589 2,494,475 19,307 1,239,589 2,851,493 223,229 12,525,697

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
At 30 June 58,288,498 42,082,600 70,413,000 - 17,782,448 17,612,110 425,803 206,604,459
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Page 94
ANNUAL REPORT 2023
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 175
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

39. CASH FLOW INFORMATION (CONT’D)

(b) The reconciliations of liabilities arising from financing activities are as follows:- (Cont'd)

Revolving Hire Purchase

Term Loans Credits Payables Total
The Company RM RM RM RM

2023

At 1 July 7,104,145 3,000,000 - 10,104,145

Addition - - 286,200 286,200
-----------------------------------------------------------------------------------------------------------------------------------------------------
7,104,145 3,000,000 286,200 10,390,345
Changes in Financial
Cash Flows

Repayment of principal (1,550,004) (3,000,000) (75,940) (4,625,944)

Repayment of interests (317,455) (102,569) (8,650) (428,674)
(1,867,459) (3,102,569) (84,590) (5,054,618)
-----------------------------------------------------------------------------------------------------------------------------------------------------

Non-cash Changes

Repayment of interests 317,455 102,569 8,650 428,674

-----------------------------------------------------------------------------------------------------------------------------------------------------
At 30 June 5,554,141 - 210,260 5,764,401
-----------------------------------------------------------------------------------------------------------------------------------------------------

Revolving
Term Loans Credits Total
The Company RM RM RM

2022

At 1 July 8,654,149 4,000,000 12,654,149

Changes in Financial
Cash Flows

Repayment of principal (1,550,004) (1,000,000) (2,550,004)

Repayment of interests (333,751) (160,868) (494,619)
(1,883,755) (1,160,868) (3,044,623)
--------------------------------------------------------------------------------------------------------
Non-cash Changes

Repayment of interests 333,751 160,868 494,619

---------------------------------------------------------------------------------------------------------
At 30 June 7,104,145 3,000,000 10,104,145
---------------------------------------------------------------------------------------------------------

Page 95
 Registration No: 200401027554 (666062 – A)
176 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
NOTES TOin Malaysia)
(Incorporated THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

39. CASH FLOW INFORMATION (CONT’D)

(c) For the purpose of the statements of cash flows, cash and cash equivalents comprise the
followings:-

The Group The Company

2023 2022 2023 2022
RM RM RM RM

Fixed and treasury deposits

with licensed banks 291,248,349 189,450,000 48,000,000 44,000,000
Cash and bank balances 107,656,134 93,723,425 458,529 15,167,993
----------------------------------- ----------------------------------- ----------------------------------- ---------------------------------
398,904,483 283,173,425 48,458,529 59,167,993
Bank overdrafts (Note 24) (5,786,426) (17,782,448) - -
----------------------------------- ----------------------------------- ----------------------------------- ---------------------------------
393,118,057 265,390,977 48,458,529 59,167,993
Less: Fixed and treasury
deposits with maturity
more than 3 months (291,248,349) (189,100,000) (48,000,000) (44,000,000)
----------------------------------- ----------------------------------- ----------------------------------- ---------------------------------
101,869,708 76,290,977 458,529 15,167,993
----------------------------------- ----------------------------------- ----------------------------------- ---------------------------------

The fixed deposits with licensed banks of the Group and of the Company at the end of the reporting
period bore effective interest rates ranging from 2.22% to 4.11% (2022 – 2.05% to 2.63%) per annum
and 3.85% to 4.07% (2022 – 2.22% to 2.63%) per annum respectively. The fixed deposits have
maturity periods ranging from 180 to 190 (2022 - 29 to 194) days and 180 (2022 – 180) days for the
Group and the Company respectively.

Page 96
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 177
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

40. KEY MANAGEMENT PERSONNEL COMPENSATION

The key management personnel of the Group and of the Company include executive directors and non-
executive directors of the Company and certain members of senior management of the Group and of
the Company.

The key management personnel compensation during the financial year are as follows:-

The Group The Company

2023 2022 2023 2022
RM RM RM RM
(a) Directors

Directors of the Company

Short-term employee
benefits:-
- fees 124,000 527,000 124,000 527,000
- salaries, bonus and
other benefits 5,403,560 1,863,104 4,187,594 1,162,729
5,527,560 2,390,104 4,311,594 1,689,729
Defined contribution
benefits 286,035 106,780 232,200 46,440
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
5,813,595 2,496,884 4,543,794 1,736,169
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

Directors of the Subsidiaries

Short-term employee
benefits:-
- salaries, bonus and
other benefits 1,326,296 1,365,948 - -
1,326,296 1,365,948 - -
Defined contribution
benefits 197,979 224,203 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
1,524,275 1,590,151 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
Total directors’ remuneration
(Note 34) 7,337,870 4,087,035 4,543,794 1,736,169
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

Page 97
 Registration No: 200401027554 (666062 – A)
178 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated
NOTES TO in Malaysia)
THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

40. KEY MANAGEMENT PERSONNEL COMPENSATION (CONT’D)

The Group The Company

2023 2022 2023 2022
RM RM RM RM
(b) Other Key Management
Personnel
Short-term employee
benefits:- 1,496,837 759,516 1,496,837 759,516
Defined contribution
benefits 116,600 31,600 116,600 31,600
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
1,613,437 791,116 1,613,437 791,116
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

41. RELATED PARTY DISCLOSURES

(a) Identities of Related Parties

Parties are considered to be related to the Group if the Group or the Company has the ability,
directly or indirectly, to control or jointly control the party or exercise significant influence over the
party in making financial and operating decisions, or vice versa, or where the Group or the
Company and the party are subject to common control.

In addition to the information detailed elsewhere in the financial statements, the Company has
related party relationships with holding company, entities within the same group of companies and
companies in which Directors of the Company have substantial financial interests.

(b) Significant Related Party Transactions and Balances

Other than those disclosed elsewhere in the financial statements, the Group and the Company also
carried out the following significant transactions with the related parties during the financial year:-

The Group
2023 2022
RM RM

Sales of goods and services to

- Related companies (149,190,930) (147,233,866)
- Holding company (4,520.00) (20,575)
- Associates (1,431,206) (40,823,611)
Purchase of goods and services from
- Related companies 22,199,832 15,880,620
- Holding company 1,447 4,961
- Associates 3,202,673 2,886,559

Page 98
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 179
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

41. RELATED PARTY DISCLOSURES (CONT’D)

(b) Significant Related Party Transactions and Balances (Cont’d)

Other than those disclosed elsewhere in the financial statements, the Group and the Company also
carried out the following significant transactions with the related parties during the financial year:-
(cont’d)
The Group
2023 2022
RM RM

Sales of property and equipment

- Related companies (1,510,400) (329,421)
Purchase of property and equipment
- Related companies 3,912,547 2,627,641
- Associates 2,014,225 1,288
Rental income from
- Related companies (30,176) (195,976)
- Associates (324,000) (300,000)
Rental expenses charged by
- Related companies 1,073,582 523,407
- Associates - 580
- Holding company 38,500 46,000
----------------------------------- -----------------------------------

The Group
2023 2022
RM RM

Transactions with companies in which certain Directors

have substantial financial interests:
Sales of goods and services (15,395,409) (22,270,213)
Purchase of goods and services 10,780,139 25,889,145
Sales of property and equipment (1,597,836) (95,000)
Purchase of property and equipment 5,519,080 93,877
Rental income - (19,800)
Rental expenses 48,000 69,874
----------------------------------- -----------------------------------

Page 99
 Registration No: 200401027554 (666062 – A)
180 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated
NOTES TOin THE
Malaysia)
FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

41. RELATED PARTY DISCLOSURES (CONT’D)

(b) Significant Related Party Transactions and Balances (Cont’d)

Other than those disclosed elsewhere in the financial statements, the Group and the Company also
carried out the following significant transactions with the related parties during the financial year:-
(cont’d)
The Company
2023 2022
RM RM

Sales of property and equipment to

- Subsidiaries (20,000) (450)
Other income
- Related companies (1,920) -
Purchase of goods and services from
- Subsidiaries 49,970 179,713
- Associate - 19
- Related companies 144,946 126,623
Purchase of property and equipment
- Subsidiaries 870 484,229
- Related companies 65,740 77,661
Rental income from
- Associates (324,000) (300,000)
- Subsidiaries (4,749,020) (2,733,200)
----------------------------------- -----------------------------------

The Company
2023 2022
RM RM

Transactions with companies in which certain Directors

have substantial financial interests:
Purchase of goods and services 38,006 -
Purchase of property and equipment 318,000 -
----------------------------------- -----------------------------------

Related companies

Related companies are companies within Shin Yang Holding Sendirian Berhad Group.

The significant outstanding balances of the related parties (including the allowance for impairment
loss made) together with their terms and conditions are disclosed in the respective notes to the
financial statements.

Page 100
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 181
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

42. OPERATING SEGMENTS

Operating segments are prepared in a manner consistent with the internal reporting provided to the
Group Managing Director as its chief operating decision maker in order to allocate resources to
segments and to assess their performance. For management purposes, the Group is organised into
business units based on their products and services provided.

The Group is organised into 4 main reportable segments as follows:-

(i) Shipbuilding, ship repair and fabrication of metal structures.

(ii) Domestic and regional shipping segment which carries out shipping business in coastal and
regional routes within Malaysia and ASEAN region.

(iii) International shipping segment which carries out international routes to Japan, Korea, China,
Philippines and ASEAN region.

(iv) Land transportation and hiring services.

(v) Manufacturing, distribution and marketing of industrial gases, provision of services and
maintenance and trading in welding equipment and machinery.

(vi) Others consist of the business of shipping agency and operations and maintenance of barrage.

Except as indicated above, no operating segments have been aggregated to form the above reportable
operating segments.

(a) The Group Managing Director assesses the performance of the reportable segments based on
their profit before interest expense and taxation. The accounting policies of the reportable
segments are the same as the Group’s accounting policies.

(b) Each reportable segment assets (including goodwill) is measured based on all assets of the
segment other than investment in an associate and tax-related assets.

(c) Assets and expenses which are common and cannot be meaningfully allocated to the reportable
segments are presented under unallocated items. Unallocated items comprise mainly corporate
assets (primarily the Company’s headquarters) and head office expenses.

(d) Transactions between reportable segments are carried out on agreed terms between both parties.
The effects of such inter-segment transactions are eliminated on consolidation.

Page 101
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023
182
42. OPERATING SEGMENTS (CONT’D)

Shipbuilding Domestic Consolidation Per

Ship Repair and and Adjustments Consolidated
Fabrication of Regional International Land and Financial
Metal Structures Shipping Shipping Transportation Gas Others Eliminations Statements
RM RM RM RM RM RM RM Notes RM
30 June 2023
30 JUNE 2023 (Cont’d)

Revenue:
SHIN YANG GROUP BERHAD

External customers 55,967,622 688,284,621 120,886,495 49,729,844 12,370,701 12,365,085 - 939,604,368

Inter-segment 55,885,384 6,491,358 1,992,047 23,897,527 3,768,203 50,251,750 (142,286,269) A -
----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
Total revenue 111,853,006 694,775,979 122,878,542 73,627,371 16,138,904 62,616,835 (142,286,269) 939,604,368
----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
Results:
Finance income (31,323) (3,583,460) (2,300,330) (54,600) (108,603) (1,907,566) - (7,985,882)
Finance costs 4,986,865 2,471,057 - 470,521 13,531 431,153 (36,954) 8,336,173
(Formerly known as Shin Yang Shipping Corporation Berhad)

Dividend income - - (1,800) - - (39,664,750) 39,664,750 (1,800)

Depreciation and
amortisation 10,424,267 53,782,779 19,816,400 6,075,366 1,201,412 1,597,070 1,953,544 94,850,838
Share of results of
associates - - - - - - (1,593,773) (1,593,773)
Other non-cash expenses/
(income) 775,091 17,352,680 (226,511) - - (74,683) (14,583,778) B 3,242,799
NOTES TO THE FINANCIAL STATEMENTS

Segment (loss)/ profits (3,715,844) 141,164,767 19,723,297 5,859,152 2,562,311 45,494,458 (30,828,195) C 180,259,946
----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

Page 102
ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

42. OPERATING SEGMENTS (CONT’D)

Shipbuilding Domestic Consolidation Per

Ship Repair and and Adjustments Consolidated
Fabrication of Regional International Land and Financial
Metal Structures Shipping Shipping Transportation Gas Others Eliminations Statements
RM RM RM RM RM RM RM Notes RM

30 June 2023 (Cont’d)

Assets:
Investment in associates - 2,629,642 - - - 682,500 89,167 3,401,309
Additions to non-
current assets 1,748,560 39,348,075 7,021,616 24,875,518 224,410 627,359 588,523 D 74,434,061
Segment assets 338,874,341 745,368,191 391,769,550 93,852,936 46,548,466 188,602,993 (233,622,918) E 1,571,393,559
----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

Liabilities:
Segment liabilities 149,958,586 198,649,580 124,891,566 29,019,525 4,302,554 41,790,047 (202,705,555) F 345,906,303
----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
ANNUAL REPORT 2023

Page 103
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD

30 JUNE 2023 (Cont’d)

NOTES TO THE FINANCIAL STATEMENTS
183
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023
184

42. OPERATING SEGMENTS (CONT’D)

Shipbuilding Domestic Consolidation Per

Ship Repair and and Adjustments Consolidated
Fabrication of Regional International Land and Financial
Metal Structures Shipping Shipping Transportation Others Eliminations Statements
RM RM RM RM RM RM Notes RM
30 JUNE 2023 (Cont’d)

30 June 2022
SHIN YANG GROUP BERHAD

Revenue:
External customers 135,026,722 570,620,169 132,535,667 47,652,555 7,622,470 - 893,457,583
Inter-segment 29,035,040 6,406,493 44,619 28,938,179 6,291,357 (70,715,688) A -
----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
Total revenue 164,061,762 577,026,662 132,580,286 76,590,734 13,913,827 (70,715,688) 893,457,583
----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
Results:
Finance income (28,671) (1,324,663) (1,027,994) (38,944) (1,166,870) - (3,587,142)
(Formerly known as Shin Yang Shipping Corporation Berhad)

Finance costs 6,473,532 1,993,769 - 153,012 497,993 (34,586) 9,083,720

Dividend income - - (1,200) (21,993,250) 21,993,250 (1,200)
Depreciation and
amortisation 10,300,845 54,817,099 19,271,242 3,970,085 1,710,236 708,358 90,777,865
Share of results of associates - - - - 221,144 221,144
Other non-cash expenses/
(income) 2,044,029 8,410,649 224,611 99,207 - (276,734) B 10,501,762
NOTES TO THE FINANCIAL STATEMENTS

Segment profits 34,338,490 73,339,394 43,850,735 3,777,713 24,546,644 (28,745,300) C 151,107,676

----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

Page 104
ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

42. OPERATING SEGMENTS (CONT’D)

Shipbuilding Domestic Consolidation Per

Ship Repair and and Adjustments Consolidated
Fabrication of Regional International Land and Financial
Metal Structures Shipping Shipping Transportation Others Eliminations Statements
RM RM RM RM RM RM Notes RM

30 June 2022 (Cont’d)

Assets:
Investment in associates - 2,629,641 - - 682,500 1,692,691 5,004,832
Additions to non-current assets 3,633,902 24,309,708 2,636,682 6,662,428 808,341 (97,043) D 37,954,018
Segment assets 393,211,062 670,190,591 412,354,649 82,219,711 218,404,866 (288,168,038) E 1,488,212,841
----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

Liabilities:
Segment liabilities 197,785,807 241,066,891 161,793,280 21,013,684 63,628,300 (263,977,324) F 421,310,638
----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
ANNUAL REPORT 2023

Page 105
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD

30 JUNE 2023 (Cont’d)

NOTES TO THE FINANCIAL STATEMENTS
185
 Registration No: 200401027554 (666062 – A)
186 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated
NOTES TO in Malaysia)
THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

42. OPERATING SEGMENTS (CONT’D)

A Inter-segment revenues are eliminated on consolidated.

B Other material non-cash expenses/(income) consist of the following items as presented in the
respective notes to the financial statements:

2023 2022
RM RM

Fair value loss on other investments - 9,600

Fair value changes on forward contracts (529,658) 800,213
Unrealised loss/(gain) on foreign exchange 2,237,674 (207,833)
Impairment loss on trade and other receivables 15,334,622 10,448,952
Gain on bargain purchase (14,819,789) (61,723)
Impairment loss on property and equipment 3,182,914 -
Reversal of impairment loss on trade and other receivables (2,162,964) (487,447)
----------------------------------- -----------------------------------
3,242,799 10,501,762
----------------------------------- -----------------------------------

C The following items are added to/(deducted from) segment profit to arrive at "Profit before tax"
presented in the consolidated statement of profit or loss and other comprehensive income:

2023 2022
RM RM

Share of result of associates (1,593,773) 221,144

Dividend from subsidiaries (39,655,000) (21,925,000)
Dividend from associates (9,750) (68,250)
Profit from inter-segment sales (2,435,917) (6,326,559)
Depreciation (1,953,544) (708,358)
Gain on bargain purchase 14,819,789 61,723
----------------------------------- -----------------------------------
(30,828,195) (28,745,300)
----------------------------------- -----------------------------------

D Additions to non-current assets consists of:

2023 2022
RM RM

Property and equipment 74,434,061 37,954,018

----------------------------------- -----------------------------------

Page 106
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 187
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

42. OPERATING SEGMENTS (CONT’D)

E The following items are added to/(deducted from) segment assets to arrive at total assets
reported in the consolidated statement of financial position:

2023 2022
RM RM

Property and equipment (1,807,824) (4,972,081)

Investment in associates 89,167 1,692,691
Inter-segment assets (233,968,154) (286,952,541)
Intangible assets 2,063,893 2,063,893
----------------------------------- -----------------------------------
(233,622,918) (288,168,038)
----------------------------------- -----------------------------------

F The following items are added to/(deducted from) segment liabilities to arrive at total liabilities
reported in the consolidated statement of financial position:

2023 2022
RM RM

Cumulative preference shares (100,000) (100,000)

Inter-segment liabilities (202,605,555) (263,877,324)
----------------------------------- -----------------------------------
(202,705,555) (263,977,324)
----------------------------------- -----------------------------------

Page 107
 Registration No: 200401027554 (666062 – A)
188 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated
NOTES TO in Malaysia)
THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

42. OPERATING SEGMENTS (CONT’D)

F The following items are added to/(deducted from) segment liabilities to arrive at total liabilities
reported in the consolidated statement of financial position (Cont’d):

Geographical information

Revenue is based on the country in which the customers are located.

Revenue
2023 2022
RM RM

Malaysia 783,520,033 747,906,557

China 73,623,122 50,993,859
Singapore 28,400,950 50,955,375
United Arab Emirates - 43,574,880
Japan 11,106,450 26,912
Brunei 11,717,351 -
India 2,102,260 -
Philippines 23,336,271 -
Korea 908,432 -
Australia 8,886 -
Solomon Islands 9,431 -
Denmark 452,597 -
Papua New Guinea 2,636,585 -
Indonesia 1,782,000 -
----------------------------------- -----------------------------------
939,604,368 893,457,583
----------------------------------- -----------------------------------

43. CAPITAL COMMITMENTS

The Group The Company

2023 2022 2023 2022
RM RM RM RM

Approved and not contracted for:

Purchase of property and

equipment 7,500,000 9,738,000 - -
Construction of workshop - 6,603,464 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
7,500,000 16,341,464 - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

Page 108
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 189
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

44. CONTINGENT LIABILITIES

No provisions are recognised on the following matters as it is not probable that a future sacrifice
of economic benefits will be required or the amount is not capable of reliable measurement:-

The Group
2023 2022
RM RM

Performance guarantee extended by subsidiaries

to third parties 8,976,014 16,971,765
----------------------------------- -----------------------------------

45. FINANCIAL INSTRUMENTS

The Group’s activities are exposed to a variety of market risk (including foreign currency risk and
interest rate risk), credit risk and liquidity risk. The Group’s overall financial risk management policy
focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects
on the Group’s financial performance.

45.1 FINANCIAL RISK MANAGEMENT POLICIES

Financial risk management policies are periodically reviewed and approved by the Board of
Directors and executed by the management. The audit committee of Shin Yang Shipping
Corporation Berhad provides independent oversight to the effectiveness of the risk
management process.

The Group's policies in respect of the major areas of treasury activity are as follows:-

(a) Market Risk

(i) Foreign currency risk

The Group is exposed to foreign currency risk on transactions and balances that
are denominated in currencies other than the respective functional currencies of
entities within the Group. The currencies giving rise to this risk are primarily United
States Dollar (“USD”), United Arab Emirates Dirham (AED), Renminbi Yuan (RMB),
Japanese Yen (JPY), Brunei Dollar (BND) and Singapore Dollar (“SGD”). Foreign
currency risk is monitored closely on an ongoing basis to ensure that the net
exposure is at an acceptable level. On occasion, the Group enters into forward
foreign currency contracts to hedge against its foreign currency risk. The Group
also holds cash and cash equivalents denominated in foreign currencies for
working capital purposes.

Page 109
 Registration No: 200401027554 (666062 – A)
190 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated
NOTES TO in Malaysia)
THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

45. FINANCIAL INSTRUMENTS (CONT’D)

45.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)

(a) Market Risk (Cont’d)

(i) Foreign currency risk (Cont’d)

Foreign Currency Risk Sensitivity Analysis

The following table details the sensitivity analysis to a reasonably possible change
in the foreign currencies at the end of the reporting period, with all other variables
held constant:-

The Group
2023 2022
RM RM

Effects on Profit/(Loss) After Taxation

USD/RM - strengthen by 5% (463,557) (99,654)

USD/RM - weaken by 5% 463,557 99,654
----------------------------------- -----------------------------------

SGD/RM - strengthen by 5% (33,273) (16,797)

SGD/RM - weaken by 5% 33,273 16,797
----------------------------------- -----------------------------------

AED/RM - strengthen by 5% - 2,315

AED/RM - weaken by 5% - (2,315)
----------------------------------- -----------------------------------

JPY/RM - strengthen by 5% (26,588) (16,773)

JPY/RM - weaken by 5% 26,588 16,773
----------------------------------- -----------------------------------

RMB/RM - strengthen by 5% (250,312) (257,457)

RMB/RM - weaken by 5% 250,312 257,457
----------------------------------- -----------------------------------

BND/RM - strengthen by 5% 134,684 -

BND/RM - weaken by 5% (134,684) -
----------------------------------- -----------------------------------

Page 110
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 191
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

45. FINANCIAL INSTRUMENTS (CONT’D)

45.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)

(a) Market Risk (Cont’d)

(ii) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market interest rates. The Group’s
exposure to interest rate risk arises mainly from long-term borrowings with variable
rates. The Group’s policy is to obtain the most favourable interest rates available
and by maintaining a balanced portfolio mix of fixed and floating rate borrowings.

The Group’s fixed rate receivables and borrowings are carried at amortised cost.
Therefore, they are not subject to interest rate risk as in defined MFRS 7 since
neither carrying amounts nor the future cash flows will fluctuate because of a
change in market interest rates.

The Group’s exposure to interest rate risk based on the carrying amounts of the
financial instruments at the end of the reporting period is disclosed in Note 24 to
the financial statements.

Interest Rate Risk Sensitivity Analysis

The following table details the sensitivity analysis to a reasonably possible change
in the interest rates at the end of the reporting period, with all other variables held
constant:-

The Group
2023 2022
RM RM

Effects on Profit/(Loss) After Taxation

Increase of 10 basis points (54,683) (89,797)

Decrease of 10 basis points 54,683 89,797
----------------------------------- -----------------------------------

Page 111
 Registration No: 200401027554 (666062 – A)
192 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
NOTES TO
(Incorporated THE FINANCIAL
in Malaysia) STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

45. FINANCIAL INSTRUMENTS (CONT’D)

45.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)

(a) Market Risk (Cont’d)

(ii) Interest Rate Risk (Cont’d)

Interest Rate Risk Sensitivity Analysis (Cont’d)

The following table details the sensitivity analysis to a reasonably possible change
in the interest rates at the end of the reporting period, with all other variables held
constant:-

The Company
2023 2022
RM RM

Effects on Profit/(Loss) After Taxation

Increase of 10 basis points (4,221) (7,679)

Decrease of 10 basis points 4,221 7,679
----------------------------------- -----------------------------------

(b) Credit Risk

The Group's exposure to credit risk, or the risk of counterparties defaulting, arises
mainly from trade and other receivables. The Group manages its exposure to credit risk
by the application of credit approvals, credit limits and monitoring procedures on an
ongoing basis. For other financial assets (including cash and bank balances), the Group
minimises credit risk by dealing exclusively with high credit rating counterparties.

The Company’s exposure to credit risk arises principally from loans and advances to
subsidiaries, and corporate guarantee given to financial institutions for credit facilities
granted to certain subsidiaries. The Company monitors the results of these subsidiaries
regularly and repayments made by the subsidiaries.

Page 112
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 193
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

45. FINANCIAL INSTRUMENTS (CONT’D)

45.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)

(b) Credit Risk (Cont’d)

(i) Credit Risk Concentration profile

The Group determines concentration of credit risk by monitoring the trade and
other receivables on an ongoing basis.

(ii) Exposure to Credit Risk

At the end of the reporting period, the maximum exposure to credit risk is
represented by the carrying amount of each class of financial assets recognised
in the statements of financial position of the Group and of the Company after
deducting any allowance for impairment losses (where applicable).

In addition, the Company’s maximum exposure to credit risk also includes

corporate guarantees provided to its subsidiaries as disclosed under the ‘Maturity
Analysis’ of item (c) below, representing the outstanding banking facilities of the
subsidiaries as at the end of the reporting period.

(iii) Assessment of Impairment Losses

At each reporting date, the Group assesses whether any of the financial assets at
amortised cost, contract assets are credit impaired.

The gross carrying amounts of financial assets are written off when there is no
reasonable expectation of recovery (i.e. the debtor does not have assets or
sources of income to generate sufficient cash flows to repay the debt) despite the
fact that they are still subject to enforcement activities.

Trade Receivables and Contract Assets

The Group applies the simplified approach to measure expected credit losses
using a lifetime expected credit loss allowance for all trade receivables and
contract assets.

To measure the expected credit losses, trade receivables including related parties
and contract assets have been grouped based on shared credit risk characteristics
and the days past due. The contract assets relate to unbilled work in progress and
have substantially the same risk characteristics as the trade receivables for the
same types of contracts. Therefore, the Group concluded that the expected loss
rates for trade receivables are a reasonable approximation of the loss rates for the
contract assets.
Page 113
 Registration No: 200401027554 (666062 – A)
194 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
NOTES TO
(Incorporated THE FINANCIAL
in Malaysia) STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

45. FINANCIAL INSTRUMENTS (CONT’D)

45.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)

(b) Credit Risk (Cont’d)

(iii) Assessment of Impairment Losses (Cont’d)

For certain large customers or customers with a high risk of default, the Group
assesses the risk of loss of each customer individually based on their financial
information, past trends of payments and external credit rating, where applicable.

The information about the exposure to credit risk and the loss allowances
calculated under MFRS 9 for both trade receivables and contract assets are
summarised below:-

Gross carrying Individual Collective Carrying

Amount Impairment Impairment Amount
RM RM RM RM

The Group

2023

Current (not past

due) 65,177,972 - (1,155,179) 64,022,793
Past due
1-30 days 37,962,070 - (951,058) 37,011,012
31-60 days 20,467,287 - (904,030) 19,563,257
61-90 days 11,915,252 - (1,201,740) 10,713,512
91-120 days 13,913,693 - (1,250,232) 12,663,461
More than 121
days 33,191,488 - (19,810,953) 13,380,535
Credit
impaired 9,724,650 (9,724,650) - -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
Trade
receivables 192,352,412 (9,724,650) (25,273,192) 157,354,570
Contract assets 2,089,683 - - 2,089,683
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
194,442,095 (9,724,650) (25,273,192) 159,444,253
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

Page 114
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 195
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

45. FINANCIAL INSTRUMENTS (CONT’D)

45.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)

(b) Credit Risk (Cont’d)

(iii) Assessment of Impairment Losses (Cont’d)

Gross carrying Individual Collective Carrying

Amount Impairment Impairment Amount
RM RM RM RM

The Group

2022

Current (not past

due) 62,605,006 - (1,034,751) 61,570,255
Past due
1-30 days 46,997,022 - (809,474) 46,187,548
31-60 days 23,144,725 - (639,112) 22,505,613
61-90 days 9,256,284 - (399,974) 8,856,310
91-120 days 5,355,785 - (542,693) 4,813,092
More than 121
days 46,881,444 - (10,493,760) 36,387,684
Credit
impaired 11,235,332 (9,991,816) - 1,243,516
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
Trade
receivables 205,475,598 (9,991,816) (13,919,764) 181,564,018
Contract assets 2,455,328 - - 2,455,328
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
207,930,926 (9,991,816) (13,919,764) 184,019,346
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

Other Receivables and Related Parties

The Group considers a receivable is credit impaired when the receivable is in

significant financial difficulty, for instances, the receivable is in breach of financial
covenants or insolvent. Receivables that are credit impaired are assessed
individually while other receivables are assessed on a collective basis.

Page 115
 Registration No: 200401027554 (666062 – A)
196 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated
NOTES TO in Malaysia)
THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

45. FINANCIAL INSTRUMENTS (CONT’D)

45.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)

(b) Credit Risk (Cont’d)

(iii) Assessment of Impairment Losses (Cont’d)

The information about the exposure to credit risk and the loss allowances
calculated for other receivables and related parties is summarised below:-

Gross Lifetime Loss Carrying

Amount Allowances Amount
RM RM RM

The Group

2023

Low credit risk 1,091,380 - 1,091,380

Credit impaired 18,891,812 (18,891,812) -
----------------------------------- ----------------------------------- -----------------------------------
19,983,192 (18,891,812) 1,091,380
----------------------------------- ----------------------------------- -----------------------------------

2022

Low credit risk 4,567,325 - 4,567,325

Credit impaired 17,046,274 (17,046,274) -
----------------------------------- ----------------------------------- -----------------------------------
21,613,599 (17,046,274) 4,567,325
----------------------------------- ----------------------------------- -----------------------------------

Fixed and Treasury Deposits with Licensed Banks, Cash and Bank Balances

The Group considers these banks and financial institutions have low credit risks.
In addition, some of the bank balances are insured by Government agencies.
Therefore, the Group is of the view that the loss allowance is immaterial and hence,
it is not provided for.

Financial Guarantee Contracts

All of the financial guarantee contracts are considered to be performing, have low
risks of default and historically there were no instances where these financial
guarantee contracts were called upon by the parties of which the financial
guarantee contracts were issued to. Accordingly, no loss allowances were
identified based on 12-month expected credit losses.

Page 116
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 197
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

45. FINANCIAL INSTRUMENTS (CONT’D)

45.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)

(c) Liquidity Risk

Liquidity risk arises mainly from general funding and business activities. The Group
practises prudent risk management by maintaining sufficient cash balances and the
availability of funding through certain committed credit facilities.

Maturity Analysis

The following table sets out the maturity profile of the financial liabilities at the end of
the reporting period based on contractual undiscounted cash flows (including interest
payments computed using contractual rates or, if floating, based on the rates at the end
of the reporting period):-

Contractual On demand Over

Carrying Undiscounted or within 1 2-5 5
Amount Cash Flows Year Years Years
RM RM RM RM RM
The Group

2023

Non-
derivative
Financial
liabilities:
Trade and
other
payables 132,636,200 132,636,200 132,636,200 - -
Lease
liabilities 349,557 352,654 287,238 65,416 -
Loans and
borrowings 139,039,905 145,292,493 105,962,718 38,320,771 1,009,004
------------------------------ ---------------------------------- ------------------------------ ------------------------------ ------------------------------
272,025,662 278,281,347 238,886,156 38,386,187 1,009,004
------------------------------ ---------------------------------- ------------------------------ ------------------------------ ------------------------------

Derivative
Financial
liabilities:
Forward
currency
contract 372,480 372,480 372,480 - -
------------------------------ ---------------------------------- ------------------------------ ------------------------------ ------------------------------

Page 117
 Registration No: 200401027554 (666062 – A)
198 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated
NOTES TO in Malaysia)
THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

45. FINANCIAL INSTRUMENTS (CONT’D)

45.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)

(c) Liquidity Risk (Cont’d)

Maturity Analysis (Cont’d)

Contractual On demand Over

Carrying Undiscounted or within 1 2-5 5
Amount Cash Flows Year Years Years
RM RM RM RM RM
The Group

2022

Non-
derivative
Financial
liabilities:
Trade and
other
payables 149,548,921 149,548,921 149,548,921 - -
Lease
liabilities 425,803 432,113 292,610 139,503 -
Loans and
borrowings 206,178,656 214,432,391 160,295,864 49,003,601 5,132,926
------------------------------ ---------------------------------- ------------------------------ ------------------------------ ------------------------------
356,153,380 364,413,425 310,137,395 49,143,104 5,132,926
------------------------------ ---------------------------------- ------------------------------ ------------------------------ ------------------------------

Derivative
Financial
liabilities:
Forward
currency
contract 902,138 902,138 902,138 - -
------------------------------ ---------------------------------- ------------------------------ ------------------------------ ------------------------------

Page 118
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 199
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

45. FINANCIAL INSTRUMENTS (CONT’D)

45.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)

(c) Liquidity Risk (Cont’d)

Maturity Analysis (Cont’d)

Contractual On demand
Carrying Undiscounted or within 1 2-5
Amount Cash Flows Year Years
RM RM RM RM

The Company

2023

Non-derivative
Financial liabilities:

Other payables 1,363,502 1,363,502 1,363,502 -

Loans and borrowings 5,764,401 6,209,561 1,865,004 4,344,557
Financial guarantee
contracts in relation
to corporate
guarantee given to
certain subsidiaries 91,659,770 91,659,770 91,659,770 -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
98,787,673 99,232,833 94,888,276 4,344,557
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

2022

Non-derivative
Financial liabilities:

Other payables 1,290,340 1,290,340 1,290,340 -

Loans and borrowings 10,104,145 10,848,970 4,859,307 5,989,663
Financial guarantee
contracts in relation
to corporate
guarantee given to
certain subsidiaries 118,844,660 118,844,660 118,844,660 -
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
130,239,145 130,983,970 124,994,307 5,989,663
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------

Page 119
 Registration No: 200401027554 (666062 – A)
200 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated
NOTES TO in Malaysia)
THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

45. FINANCIAL INSTRUMENTS (CONT’D)

45.2 CAPITAL RISK MANAGEMENT

The Group manages its capital to ensure that entities within the Group will be able to
maintain an optimal capital structure so as to support its businesses and maximise
shareholder(s) value. To achieve this objective, the Group may make adjustments to the
capital structure in view of changes in economic conditions, such as adjusting the amount
of dividend payment, returning of capital to shareholders or issuing new shares.

The Group manages its capital based on debt-to-equity ratio. The debt-to-equity ratio of the
Group at the end of the reporting period is not presented as its cash and cash equivalents
exceeded the total external borrowings.

45.3 CLASSIFICATION OF FINANCIAL INSTRUMENTS

2023 2022
RM RM

The Group

Financial Assets

Fair Value Through Profit or Loss

Other investments 58,800 58,800
----------------------------------- -----------------------------------

Amortised Cost
Trade receivables (Note 15) 157,354,570 181,564,018
Other receivables (Note 16) 12,930,919 7,418,494
Fixed and treasury deposits with licensed banks (Note 39) 291,248,349 189,450,000
Cash and bank balances (Note 39) 107,656,134 93,723,425
----------------------------------- -----------------------------------
569,189,972 472,155,937
----------------------------------- -----------------------------------

Financial Liabilities

Fair Value Through Profit or Loss

Derivative liabilities 372,480 902,138
----------------------------------- -----------------------------------

Amortised Cost
Trade payables (Note 29) 107,902,587 128,323,886
Other payables and accruals (Note 30) 24,733,613 21,225,035
Lease liabilities (Note 23) 349,557 425,803
Bank borrowings (Note 24) 139,039,905 206,178,656
----------------------------------- -----------------------------------
272,025,662 356,153,380
----------------------------------------------------------------------

Page 120
Registration No: 200401027554 (666062 – A)
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 201
(Formerly known as Shin Yang Shipping Corporation Berhad)
SHIN YANG GROUP BERHAD
(FORMERLY KNOWN AS SHIN YANG SHIPPING CORPORATION BERHAD)
(Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2023 (Cont’d)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023

45. FINANCIAL INSTRUMENTS (CONT’D)

45.3 CLASSIFICATION OF FINANCIAL INSTRUMENTS (CONT’D)

2023 2022
RM RM

The Company

Financial Assets

Amortised Cost
Other receivables (Note 16) 682,643 1,824,489
Amount owing by subsidiaries (Note 10) 3,582,158 38,565,138
Dividend receivable 36,155,000 -
Fixed and treasury deposits with licensed banks (Note 39) 48,000,000 44,000,000
Cash and bank balances (Note 39) 458,529 15,167,993
----------------------------------- -----------------------------------
88,878,330 99,557,620
----------------------------------- -----------------------------------

Financial Liabilities

Amortised Cost
Other payables and accruals (Note 30) 1,363,502 1,290,340
Bank borrowings (Note 24) 5,764,401 10,104,145
----------------------------------- -----------------------------------
7,127,903 11,394,485
----------------------------------- -----------------------------------

45.4 FAIR VALUE INFORMATION

The fair values of the financial assets and financial liabilities of the Company which are
maturing within the next 12 months approximated their carrying amounts due to the relatively
short-term maturity of the financial instruments or repayable on demand terms.

The quantitative disclosures fair value measurement hierarchy for assets and liabilities are
disclosed in Notes 11, 18 and 25 to the financial statements respectively.

Page 121
202 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

ANALYSIS OF SHAREHOLDINGS
As at 19 October 2023

Analysis by Size Shareholdings

As at 19 October 2023

No. of No. of
Size of Shareholdings Holders % Securities %

1 - 99 8 0.257 251 0.000

100 - 1,000 374 11.995 227,982 0.020
1,001 - 10,000 1,491 47.819 8,733,508 0.771
10,001 - 100,000 1,015 32.553 35,788,200 3.159
100,001 - 56,650,764 ( * ) 229 7.344 427,852,563 37.762
56,650,765 and above ( ** ) 1 0.032 660,412,796 58.288

TOTAL : 3,118 100 1,133,015,300 100

Remark : * less than 5% of issued shares

** 5% and above of issued shares

Directors’ Shareholdings
As at 19 October 2023

No. of No. of
Shares Shares
held through held through Total
No Name of Director Nominees own name Shareholdings %

1 TAN SRI DATUK LING CHIONG HO - 34,802,669 34,802,669 3.07

2 LING CHIONG SING - 34,802,669 34,802,669 3.07
3 DATUK LING LU KIONG - 100,000 100,000 0.01
4 LING CHIONG PIN - 34,802,668 34,802,668 3.07
5 LING SIU CHUO - 36,000,009 36,000,009 3.18
6 VINCENT LING LU YEW - 100,000 100,000 0.01
7 ARSHAD BIN ZAINUDDIN - 5,000 5,000 0.00
8 YONG NYET YUN - 100,000 100,000 0.01
9 JACK WILLIEN @ WILLIAM ANAK JINEP - 87,000 87,000 0.01

TOTAL - 140,800,015 140,800,015 12.43

1. Total Paid-Up Capital as at 19 October 2023 1,133,015,300

2. All information of shareholdings disclosed excludes 66,984,700 treasury shares held by the Company

Information on Substantial Shareholders

As at 19 October 2023

Names NRIC / Total

Registration No. Shareholdings %

1 SHIN YANG HOLDING SENDIRIAN BERHAD 184468H 660,412,796 58.288

TOTAL 660,412,796 58.288

1. Total Paid-Up Capital as at 19 October 2023 1,133,015,300

2. All information of shareholdings disclosed excludes 66,984,700 treasury shares held by the Company
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 203
(Formerly known as Shin Yang Shipping Corporation Berhad)

ANALYSIS OF SHAREHOLDINGS
as at 19 October 2023 (Cont’d)

Distribution Table According To Category of Shareholders Held In Respect of Ordinary Shares

As at 19 October 2023

Category of Holders No. of Holders No. of Securities %

Malaysian Foreign Malaysian Foreign Malaysian Foreign
Non- Non- Non-
Bumi Bumi Bumi Bumi Bumi Bumi

1 Individual 383 1,971 18 5,255,800 248,150,422 7,512,600 0.464 21.902 0.663

2. Body Corporate
a. Banks/Finance
Companies 4 1 0 87,808 6,000 0 0.008 0.001 0.000
b. Investment Trusts
/ Foundation /
Charities 0 0 0 0 0 0 0.000 0.000 0.000
c. Industrial And
Commercial
Companies 9 16 2 1,212,100 737,337,311 189,700 0.107 65.077 0.017
3. Government
Agencies
/ Institutions 0 0 0 0 0 0 0.000 0.000 0.000
4. Nominees 458 223 33 59,267,200 14,986,100 59,010,259 5.231 1.323 5.208
5 Others 0 0 0 0 0 0 0.000 0.000 0.000

TOTAL 854 2,211 53 65,822,908 1,000,479,833 66,712,559 5.810 88.303 5.888

All information of shareholdings disclosed excludes 1,133,015,300 treasury shares held by the Company

List of Thirty (30) Largest Shareholders

As at 19 October 2023

Names Shareholding %

1 SHIN YANG HOLDING SENDIRIAN BERHAD 660,412,796 58.288

2 CIMB GROUP NOMINEES (ASING) SDN. BHD. 46,284,000 4.085
EXEMPT AN FOR DBS BANK LTD (SFS-PB)
3 LING SIU CHUO 36,000,009 3.177
4 LING CHIONG HO 34,802,669 3.072
5 LING CHIONG SING 34,802,669 3.072
6 LING CHIONG PIN 34,802,668 3.072
7 AMSEC NOMINEES (TEMPATAN) SDN BHD 30,311,500 2.675
PLEDGED SECURITIES ACCOUNT FOR BUMIMAS WANGI SDN. BHD.
8 LING SIEW TING 24,000,006 2.118
9 S.K. UNIMAS SDN. BHD. 20,520,200 1.811
10 MAJU BUMIRAYA SDN BHD 19,813,500 1.749
11 CAHAYA SURIAMAJU SDN. BHD. 18,665,600 1.647
12 KONG EIK MING 12,461,800 1.100
13 CAHAYA SURIAMAJU SDN. BHD. 7,500,000 0.662
14 ADINAMAJU SDN BHD 6,461,400 0.570
15 WONG TIING SONG 4,496,800 0.397
16 LING CHIONG SIENG 3,765,168 0.332
204 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

ANALYSIS OF SHAREHOLDINGS
as at 19 October 2023 (Cont’d)

List of Thirty (30) Largest Shareholders (Cont’d)

As at 19 October 2023

Names Shareholding %

17 JUMA KHALIFA OBAID ABUSHIBS 3,554,000 0.314

18 SHINLINE CORPORATION SDN. BHD. 3,290,515 0.290
19 UOBM NOMINEES (ASING) SDN BHD 2,800,000 0.247
UNITED OVERSEAS BANK NOMINEES (PTE) LTD FOR PERRA GROUP LIMITED
20 CARTABAN NOMINEES (ASING) SDN BHD 2,596,800 0.229
THE BANK OF NEW YORK MELLON FOR ACADIAN EMERGING MARKETS SMALL
CAP EQUITY FUND, LLC
21 HLB NOMINEES (TEMPATAN) SDN BHD 2,487,300 0.220
PLEDGED SECURITIES ACCOUNT FOR GARY TAN YOW HOO
22 CGS-CIMB NOMINEES (TEMPATAN) SDN BHD 2,297,000 0.203
PLEDGED SECURITIES ACCOUNT FOR HONG KEN CHOON (KUCHING-CL)
23 MAYBANK NOMINEES (TEMPATAN) SDN BHD 2,008,000 0.177
PLEDGED SECURITIES ACCOUNT FOR LOOI CHIN BOON
24 TIE TEK TIONG @ TIE TECK TIONG 1,727,000 0.152
25 TAN LYE BENG 1,608,000 0.142
26 JULIAN JAMES ARMSTRONG 1,601,000 0.141
27 PM NOMINEES (TEMPATAN) SDN BHD 1,400,000 0.124
PLEDGED SECURITIES ACCOUNT FOR KONG KOK CHOY (B)
28 YU HUNG WEN 1,380,900 0.122
29 CIMSEC NOMINEES (TEMPATAN) SDN BHD
CIMB FOR WONG TIING SONG (PB) 1,350,000 0.119
30 AFFIN HWANG NOMINEES (TEMPATAN) SDN. BHD. 1,300,000 0.115
HOU SIU KEE

TOTAL 1,024,501,300 90.423

Paid-up Capital as at 19 October 2023 1,133,015,300

ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 205
(Formerly known as Shin Yang Shipping Corporation Berhad)

PROPERTIES OF THE GROUP

A summary of the land and buildings owned by our Group is as follows:-

Date of Expiry of
Name of Registered Owner Lease / Tenure / NBV
and Postal Address/Title Description and Approximate Age Date of Approximate as at 30 June
No. Identification existing Use of Building/ Valuation land area 2023
(RM’000)

1. Piasau Slipways Sdn Bhd

Lot 1528 -1530, Block 12, Buan Vacant sand filled industrial land. Leasehold of 60 5th October 2009 25.2542 Ha 6,920
Land District, Tanjung Manis, years expiring
Sarawak 02.06.2081
/ Aged 14- 16 years

2. Shin Yang Shipyard Sdn Bhd

Lot 1531 -1536, and Plot 100(1) Industrial land erected with Leasehold of 60 5th October 2009 61.9774 Ha 27,920
under Lot 659, Block 12, Buan warehouse and workshop, road years expiring
Land District, Tanjung Manis, and jetty. 02.06.2081
Sarawak / Aged 4- 16 years

3. Piasau Slipways Sdn Bhd

Lot No. 1098, Block 37, Kemena Industrial land erected with the Leasehold of 60 16th November 7.006 Ha 8,237
Land District, Sarawak warehouses, winch & slipways years expiring 2009
used as shipping fabrication yard 15.08.2070
and dockyard. / Aged 13-19 years

4. Shin Yang Shipyard Sdn Bhd Industrial land erected with the
Lot 263, Block 1, Kuala Baram workshops cum office buildings, Leasehold of 60 2nd November 13.02 Ha 9,006
Land District, Miri, Sarawak winch house, warehouse, years expiring 2009
slipways, jetty, whaft and 14.07.2055
(formerly known as Lot 211, Block launching ways buildings used / Aged 10-23 years
1, Kuala Baram Land District, Miri, as shipping fabrication yard &
Sarawak) dockyard.

5. Piasau Slipways Sdn Bhd

Lot 208, Block 1 and Lot 523, Two contiguous parcels of Lot 208 - leasehold Lot 208 7,567
Kuala Baram Land District, Miri, industrial lands erected with the of 60 years expiring 2.273 Ha
Sarawak double storey office cum stores, 17.09.2055
workshops, winch house, 4-rail / Aged 10-15 years
slipways, shipyard buildings
used as shipping fabrication Lot 523 - leasehold 11th May 2023 Lot 523
yard, dockyard and office. of 60 years expiring 5.119 Ha
07.01.2048
/ Aged 0-22 years

6. Shin Yang Shipyard Sdn Bhd

Lot 80, Block 3, Kuala Baram A collective parcel of thirteen Leasehold for 99 21st August 2009 72.3 Ha 39,372
Land District, Miri, Sarawak industrial land erected with years expiring on
the double storey offices, 4 20.02.2102
shipyard buildings, workshops, / Aged 6-16 years
& launching ways buildings used
as shipping fabrication yard,
dockyard and office

7. Shin Yang Shipyard Sdn Bhd

Sublot 153 under Lot 83, Block 3, Industrial land erected with the Parent lot title under 11th May 2023 1.81 Ha 14,384
Kuala Baram Land District, Miri, office building. leasehold for 99
Sarawak years expiring on
20.02.2102 (1)
/ Aged 2-15 years

8. Shin Yang Group Berhad

Lot No.25, Kota Kinabalu Industrial Industrial land erected with Leasehold of 99 N/A 1.648 Ha 8,222
Park, Off Jalan Sepangar Bay, the office building & factory, years expiring
Kota Kinabalu , Sabah warehouse and container yards. 31.12.2098
/ Aged 7-10 years

9. Shin Yang Group Berhad

KM10.9, Jalan Batu Sapi-Lintas Residential Zoned land erected Leasehold of 999 N/A 1.607 Ha 2,164
Sibuga Sandakan , Sabah with the front office with open years expiring on
sided store. 12.01.2901
/ Aged 10 years

10. Shin Yang Group Berhad

Lot 31, Lebuh Sultan Mohamed 1, Industrial land erected with Leasehold of 99 N/A 2.947 Ha 21,517
Kawasan Perusahaan Bandar 2-storey office building & factory, years expiring on
Sultan Suleiman, 42000 Port warehouses and container yards. 30.06.2105
Klang, Selangor Darul Ehsan / Aged 4-7 years

11. Melinau Transport Sdn Bhd

Lot 3354, Block 20, Kemena Land Vacant sand filled industrial land Leasehold of 60 N/A 25.69Ha 21,418
District, Sarawak. years expiring on
09.01.2079
/ Aged 5-9 years
206 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

PROPERTIES OF THE GROUP

(Cont’d)

A summary of the land and buildings owned by our Group is as follows:- (Cont’d)
Date of Expiry of
Name of Registered Owner Lease / Tenure / NBV
and Postal Address/Title Description and Approximate Age Date of Approximate as at 30 June
No. Identification existing Use of Building/ Valuation land area 2023
(RM’000)

12. Melinau Transport Sdn Bhd

Lot 576, Block 1, Kuala Baram Industrial land erected with Leasehold of 99 N/A 5.506Ha 761
Land District, Miri, Sarawak. workshop years expiring on
20.02.2102
/ Aged 2-13 years

13. Piasau Gas Sdn Bhd

Lot 314, Block 1 Kuala Baram Industrial land erected with 1 Leasehold of 60 3rd May 2023 4.502 Ha 7,640
Land District, Miri, Sarawak. unit of 3 storey office building, 3 years expiring on
units of single storey open shed 02.01.2060
warehouses, 2 production plants / Aged 4-23 years
and 2 refilling gas industrial
facility

Notes:- (1) Titles awaiting for subdivision and amalgamation.

ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 207
(Formerly known as Shin Yang Shipping Corporation Berhad)

NOTICE OF ANNUAL GENERAL MEETING

NOTICE IS HEREBY GIVEN that the 18th Annual General Meeting of the Company will be held at Conference Room, Level
5, Imperial Hotel, Jalan Pos, 98000 Miri, Sarawak, Malaysia on Friday, 24th November 2023 at 11:00 a.m. for the following
purposes:-

AGENDA

As Ordinary Businesses:
1. To table the Audited Financial Statements for the financial year ended 30 June 2023 together (Please refer to
with the Reports of the Directors and Auditors thereon. Note A)

2. To approve the declaration of a single-tier final dividend of 3.00 sen per ordinary share for the (Resolution 1)
financial year ended 30 June 2023.

3. To approve the payment of Directors’ fees and benefits for the financial year ended 30 June (Resolution 2)
2024.

4. To re-elect the following Directors who are retiring in accordance with clause 90 of the Company’s
Constitution, and being eligible, have offered themselves for re-election:-

i) Tan Sri Datuk Ling Chiong Ho (Resolution 3)

ii) Mr. Vincent Ling Lu Yew (Resolution 4)
iii) En. Arshad Bin Zainuddin (Resolution 5)

5. To re-appoint Messrs Crowe Malaysia PLT as Auditors of the Company and to authorise the (Resolution 6)
Directors to fix their remuneration.

As Special Businesses

To consider and, if thought fit, to pass the following Ordinary Resolutions:-

6. Proposed Renewal of Shareholders’ Mandate for Recurrent Related Party Transactions of (Resolution 7)
a Revenue or Trading Nature (“Proposed RRPT Mandate”)

“THAT subject always to the Companies Act 2016 (“Act”), the Constitution of the Company, the
Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”),
other applicable laws, guidelines, rules and regulations, and the approval of the relevant
governmental/regulator authorities (where applicable), approval be and is hereby given to
the Company and/or its subsidiary companies (“Group”) to enter into recurrent related party
transactions of a revenue or trading nature with those related parties as stated in Section 2.2 of
the Circular to Shareholders dated 31st October 2023 (“Circular”), which are necessary for the
day-to-day operations of the Group (“RRPT”) subject further to the following:

a. That the RRPT are in the ordinary course of business and are made on an arm’s length basis
and on normal commercial terms which are not more favourable to the related parties than
those available to the public and not to the detriment of the minority shareholders;

b. That disclosure will be made in the annual report of the Company of the breakdown of the
aggregate value of transactions conducted pursuant to the Proposed RRPT Mandate during
the financial year based on information such as the types of the RRPT made and names of
the related parties involved in each type of the RRPT made and their relationship with the
Company; and
208 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

NOTICE OF ANNUAL GENERAL MEETING

(Cont’d)

c. That such approval shall continue to be in force until: -

o the conclusion of the next Annual General Meeting (“AGM”) of the Company, at which
time it will lapse, unless by a resolution passed at the meeting, the authority is renewed;
o the expiration of the period within which the next AGM of the Company after the date
it is required to be held pursuant to Section 340 (2) of the Act but shall not extend to
such extension as may be allowed pursuant to Section 340 (4) of the Act; or
o revoked or varied by resolution passed by the shareholders in a general meeting,
whichever is the earlier;

AND THAT the Directors of the Company be hereby authorised to complete and do all such
acts and things as they may consider expedient or necessary to give effect to the Proposed
RRPT Mandate.

AND THAT the estimated value given on the RRPT as outlined in Section 2.2 of the Circular
being provisional in nature, the Directors of the Company be hereby authorised to agree
to the actual amount or amounts thereof provided always that such amount or amounts
comply with the review methods or procedures outlined in Section 2.5 of the Circular.”

7. Proposed Renewal of Authority On Shares Buy-Back. (Resolution 8)

“THAT subject to the Company’s compliance with all the applicable rules, regulations, orders and
guidelines made pursuant to the Companies Act, 2016 (“the Act’), the Company’s Constitution
and Bursa Malaysia Securities Berhad’s (“Bursa Securities”) Main Market Listing Requirements
(“Listing Requirements”), the Directors of the Company be and are hereby authorized
to purchase shares at any time such amount of ordinary shares in the Company as may be
determined by the Directors of the Company from time to time through Bursa Securities upon
such terms and conditions as the Directors in their absolute discretion deem and expedient in
the interest of the Company provided that:

a. the aggregate number of ordinary shares which may be purchased and retained by the
Company at any point of time pursuant to this resolution shall not exceed approximately
seven point two five per centum (7.25%) of the total issued and paid up share capital of the
Company;

b. the amount of funds to be allocated by the Company pursuant to this resolution not exceed
the retained earnings and/or share premium of the Company as at 30 June 2023; and

c. the shares so purchased by the Company pursuant to this resolution may at the discretion
of the Directors be: -
o retained as treasury shares; and/or cancelled; and/or
o resold on the market of Bursa Securities in accordance to the Listing Requirements;
and/or
o distributed as dividends to the shareholders; and/or
o dealt in any other manners prescribed by the applicable rules, regulations and orders
made pursuant to the Act, the Listing Requirements and any other relevant authority
for the time being in force;

AND THAT such authority conferred by the shareholders of the Company upon passing of the
resolution will continue to be in force until the conclusion of the next Annual General Meeting
of the Company, unless by a resolution passed at that meeting, the authority is renewed; or the
expiration of the period within which the next Annual General Meeting is required to be held
pursuant to Section 340(2) of the Act but must not extended to such extensions as may be
allowed pursuant to Section 340(4) of the Act; or until the authority is revoked or varied by a
resolution passed by the shareholders in a general meeting, whichever occurs first;

AND THAT the Directors of the Company be hereby authorised to complete and do all such acts
and things as they may consider expedient or necessary to give effect to the resolution.
ANNUAL REPORT 2023 SHIN YANG GROUP BERHAD 209
(Formerly known as Shin Yang Shipping Corporation Berhad)

NOTICE OF ANNUAL GENERAL MEETING

(Cont’d)

8. To transact any other business for which due notice shall have been given in accordance with the Company’s
Constitution and the Companies Act 2016.

NOTICE OF ENTITLEMENT AND PAYMENT OF SINGLE-TIER FINAL DIVIDEND

NOTICE IS HEREBY GIVEN THAT the Single-Tier Final Divided of 3.00 sen per ordinary share for the financial year ended
30 June 2023, if approved at 18th Annual General Meeting will be paid on 15th December 2023 to Shareholders whose name
appear in the Records of Depositors and Register of Members at the close of business on 1st December 2023.

Depositor shall qualify for entitlement only respect of:

(a) Shares deposited into Depositor’s Securities Account before 12.30pm on 29th November 2023. (in respect of shares
which are exempted from mandatory deposit)
(b) Shares transferred into the Depositor’s Securities Account before 4.30pm on 1st December 2023 in respect of transfers;
and
(c) Shares bought on the Bursa Malaysia Securities Berhad on a cum entitlement basis according to the Rules of the
Bursa Malaysia Securities Berhad.

By Order of the Board of Directors

RICHARD LING PENG LIING

SSM Practising Certificate No. 201908000676
Company Secretary
Miri, Sarawak

27th October 2023

Explanatory Notes:

1. Item 1 of the Agenda

This Agenda is meant for discussion only as the provision of Section 340(1)(a) of the Companies Act, 2016 does not
require a formal approval of Shareholders of the Company and hence, is not put forward for voting.

2. Ordinary Resolutions 3 to 5 – Re-election of Directors

Pursuant to Clause 90 of the Company’s Constitution, one third (1/3) of the Directors shall retire from office at least
once in every three (3) years at each AGM of the Company and the retiring Directors can offer themselves for re-
election.

Accordingly, Tan Sri Datuk Ling Chiong Ho, Mr. Vincent Ling Lu Yew and En. Arshad Bin Zainuddin shall retire by
rotation at the 18th AGM pursuant to Clause 90 of the Company’s Constitution. Tan Sri Datuk Ling Chiong Ho, Mr.
Vincent Ling Lu Yew and En. Arshad Bin Zainuddin, being eligible, have offered themselves for re-election.

3. Ordinary Resolution 7 – Proposed Renewal of Shareholders’ Mandate on Recurrent Related Party Transactions

The proposed Ordinary Resolution 7, if passed, will authorize the Company and its subsidiaries to enter into recurrent
related party transactions of a revenue or trading nature. This authority, unless revoked or varied by the Company at
the general meeting, will expire at the conclusion of the next AGM of the Company.
Please refer to the Circular to Shareholders dated 31 October 2023 for further information.

4. Ordinary Resolution 8 – Proposed Renewal of Authority on Share Buy-Back

The proposed Ordinary Resolution 8, if passed, will empower the Company to purchase the Company’s shares up to
approximately seven point two five per centum (7.25%) of the issued and paid up share capital of the Company. This
authority, unless revoked or varied by the Company at the general meeting, will expire at the conclusion of the next
AGM of the Company.
Please refer to the Statement on Shares Buy-Back dated 31 October 2023 for further information.
210 SHIN YANG GROUP BERHAD ANNUAL REPORT 2023
(Formerly known as Shin Yang Shipping Corporation Berhad)

NOTICE OF ANNUAL GENERAL MEETING

(Cont’d)

Notes:-

(1) Pursuant to Section 334 of the Companies Act 2016, a member shall be entitled to appoint another person as his
proxy to exercise all or any of his rights to attend, participate, speak and vote in his stead.
(2) A proxy may but need not be a member of the Company. There shall be no restriction as to the qualification of the
proxy. A proxy appointed to attend and vote at a General Meeting of the Company shall have the same rights as the
member to speak at the General Meeting.
(3) Where a Member of the Company is an Exempt authorised nominee as defined under the Securities Industry [Central
Depositories] Act, 1991, which holds ordinary shares in the Company for multiple beneficial owners in one securities
account [“omnibus account”], there shall be no limit to the number of proxies which the exempt authorised nominee
may appoint in respect of each omnibus account it holds.
(4) Where a member appoints more than one (1) proxy, the appointment shall be invalid unless he specifies the proportions
of his holdings to be represented by each proxy.
(5) If the appointor is a corporation, this form must be executed under its Common Seal or under the hand of an officer
or attorney duly authorised.
(6) To be valid, this form, duly completed must be deposited at the Registered Office of the Company not less than forty-
eight (48) hours before the time for holding the General Meeting.
The Registered office of the Company at Sublot 153 (Parent Lot 70), Jalan Kuala Baram, Kuala Baram, 98100 Miri,
Sarawak, Malaysia.
(7) Pursuant to Paragraph 8.29(a)(1) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, all the
resolutions set out in this Notice shall be put to by poll.
(8) In respect of deposited securities, only members whose names appear on the Record of Depositors on 17 November
2023, shall be eligible to attend the General Meeting or appoint proxy(ies) to attend and/or vote on his behalf.

Personal Data Privacy

By submitting the proxy form, the shareholder accepts and agrees to the collection, use and disclosure of the shareholder’s
personal data by the Company (or its agents or services providers) for the purpose of preparation and compilation of
documents relating to AGM (including adjournment thereof)
 PROXY FORM

SHIN YANG GROUP BERHAD

No of ordinary shares held CDS Account No
(Formerly known as Shin Yang Shipping Corporation Berhad)
Registration No: 200401027554 (666062-A)
(Incorporated in Malaysia)

I/We ,
FULL NAME NRIC NO/ PASSPORT NO/ COMPANY NO

of
FULL ADDRESS

being a member/members of Shin Yang Group Berhad, hereby appoint:

Name of Proxy NRIC / Passport No. Proportion of Shareholdings (%)

and/or failing him/her

or **Chairman of the Meeting as *my/our proxy to vote for* me/us and on* my/our behalf at the Eighteenth (18th) Annual General Meeting of
the Company to be held at the Conference Room, Level 5, Imperial Hotel, Jalan Pos, 98000 Miri, Sarawak, Malaysia on Friday, 24th November
2023 at 11.00 am and, at any adjournment thereof.

A To table the Audited Financial Statements for the financial year ended 30 June 2023 together with the Reports of the
Directors and Auditors thereon.
RESOLUTIONS DESCRIPTION FOR AGAINST
Ordinary Business
1 Declaration of Single-Tier Final Dividend of 3.00 sen per ordinary share
2 Approval of Directors’ fees and benefits for financial year ended 30 June 2024
3 Re-election of retiring director: Tan Sri Datuk Ling Chiong Ho pursuant to Clause 90 of
the Company’s Constitution.
4 Re-election of retiring director: Mr. Vincent Ling Lu Yew pursuant to Clause 90 of the
Company’s Constitution.
5 Re-election of retiring director: En. Arshad Bin Zainuddin pursuant to Clause 90 of the
Company’s Constitution.
6 To re-appoint Crowe Malaysia PLT as the auditor of the Company and to authorise the
Directors to determine their remuneration.
Special Business
7 Proposed Renewal of Shareholders’ Mandate for Recurrent Related Party Transactions
of a Revenue or Trading Nature
8 Proposed Renewal of Authority on Shares Buy-Back

(Please indicate with an “X’ in the space provided above on how you wish your proxy to vote. If no instruction is given this form will be taken
to authorise the proxy to vote at his/her discretion)

Dated this …………………day of …………………… 2023

………………………………………………….…….
Signature and/or Common Seal of Shareholders

Notes:
(1) Pursuant to Section 334 of the Companies Act 2016, a member shall be entitled to appoint another person as his proxy to exercise all or any of his rights to attend, participate,
speak and vote in his stead.
(2) A proxy may but need not be a member of the Company. There shall be no restriction as to the qualification of the proxy. A proxy appointed to attend and vote at a General
Meeting of the Company shall have the same rights as the member to speak at the General Meeting.
(3) Where a Member of the Company is an Exempt authorised nominee as defined under the Securities Industry [Central Depositories] Act, 1991, which holds ordinary shares in the
Company for multiple beneficial owners in one securities account [“omnibus account”], there shall be no limit to the number of proxies which the exempt authorised nominee
may appoint in respect of each omnibus account it holds.
(4) Where a member appoints more than one (1) proxy, the appointment shall be invalid unless he specifies the proportions of his holdings to be represented by each proxy.
(5) If the appointor is a corporation, this form must be executed under its Common Seal or under the hand of an officer or attorney duly authorised.
(6) To be valid, this form, duly completed must be deposited at the Registered Office of the Company not less than forty-eight (48) hours before the time for holding the General
Meeting.
The Registered office of the Company at Sublot 153 (Parent Lot 70), Jalan Kuala Baram, Kuala Baram, 98100 Miri, Sarawak, Malaysia.
(7) Pursuant to Paragraph 8.29(a)(1) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, all the resolutions set out in this Notice shall be put to by poll.
(8) In respect of deposited securities, only members whose names appear on the Record of Depositors on 17 November 2023, shall be eligible to attend the General Meeting or
appoint proxy(ies) to attend and/or vote on his behalf.
Please fold here

Stamp

SHIN YANG GROUP BERHAD

(Formerly known as Shin Yang Shipping Corporation Berhad)
Registration No: 200401027554 (666062-A)
Sublot 153 (Parent Lot 70),
Jalan Kuala Baram, Kuala Baram,
98100 Miri, Sarawak,
Malaysia.

Please fold here

 SHIN YANG GROUP BERHAD (formerly known as Shin Yang Shipping Corporation Berhad) Registration No: 200401027554 (666062-A) | ANNUAL REPORT 2023
SHIN YANG GROUP BERHAD
(Formerly known as Shin Yang Shipping Corporation Berhad)
Registration No. 200401027554 (666062-A)

Step by Step To Excellence

SHIN YANG GROUP BERHAD
(Formerly known as Shin Yang Shipping Corporation Berhad)
Registration No: 200401027554 (666062-A)
Sub Lot 153 (Parent Lot 70),
Jalan Kuala Baram,
Kuala Baram, 98100 Miri,
Sarawak, Malaysia

ANNUAL 20
REPORT 23