Capital Investment and Wealth Distribution Policies
With a view to contributing towards containment of greenhouse effect regionally, the well-being of workforce and an economically progressive society, the Group adopts and adapts relevant policies aimed at maintaining sustainably those contributions with solid support of financially lucrative business undertakings in milling extractions of CPO, PK, PKO and PKE operated under reliable management of qualified people.
Robust Return on Employed Capital
The returns on investment in properties, plant and equipment, on employment of tangible assets and on shareholders’ fund are consistently optimised to an extent that they are capable of withstanding any inflationary spiral, demand shrinkage or contractionary measures of market economy without compromising the resilient capacity for generating a profitability level of strength, stability and satisfaction.
Protection of Functionality and Security of Capital Assets
The sustainability of income generating capabilities of properties, plant and equipment installed in CPO and PKO mills is strengthened by comprehensive programmes of capital asset refurbishment and replacement which are reinforced periodically with repairs, maintenance, quality control inspection and incessant insurance against fire or insurable perils.
Efficient Management of Working Capital
Working capital is adequately maintained and well-managed by composition of low trading or processing stocks, high liquid assets and moderate finance from creditors repayable on short terms such that the cash operating cycle has short duration optimally with negligible costs of stockout, of bad or doubtful debts and of impairment in creditworthiness.
Leverage of Debt Capital for Amplifying Equity Value
A financially sound and beneficial proportion of debt capital in the form of bank borrowings and credit facilities is maintained for gearing up capital structure to a level which is not only cushioned safely against interest rate risk and liquidity risk but is also leveraged for amplifying retained earnings available to shareholders, thereby optimising rewardingly the return on shareholders’ equity.
Income Distribution of Dividend
A favourable balance of dividend distribution and earnings retention is pursued to maximize dividend income for shareholders whilst retaining sufficient earnings for use in capital asset reinvestment, in business expansion and in serving other attractive investment purposes.
Management by Rewarding Meritocracy
A merit-based employee share option scheme (ESOS) and a profit related pay system (PRP) will in due course be implemented by linking equitably work performance to profit achievement in such a way that could reassuringly enhance job loyalty, behavioural motivation and output productivity as much as it could potentially foster recruitment and sustain retention of people of good calibre with decent character.