Dear Valued Shareholders, Ladies & Gentlemen,
Following the visionary Message from the Chairman, I am pleased to submit to you at this Annual General Meeting an analytical review of the performance by the Management under the supervision and direction of the Board of Directors for the year 2021-2022. After passing through a horrific period of over two years of Covid-19 and ongoing Russia-Ukraine war, we are pleased to hold the 20th AGM of the Company with nevertheless, a better performance in all aspects.
The Annual Report containing the Statutory Financial Statements for the year 2021-2022 along with the Directors' Report outlines in detail the quantitative and qualitative achievements attained. An examination would reveal that the operating assets/capacity of output/revenue earnings have increased leading to the significant augmentation in Turnover, Gross profits, Profit from Operations, Net Profit (After Tax), Earning Per Share (EPS), Net Asset Value (NAV) etc. both on standalone and consolidated positions.
The Shareholders will also be happy to find that while the production output and export quantity remain often the same during 2021-2022 considering the last year, the export revenue increased by 34.04% over the previous year.
This outstanding increase could be achieved primarily due to higher selling prices over the earlier year. This increased level of export prices earned was possible due to strategic change in the product mix with increased production of higher valued items with a lower rate of increase in cost of goods sold which rose only by 0.35% against the Sales Revenue of 34.04%. As a result, Gross Profit, Operating Profit and Net Profit (AT) increased by 30.22%, 29.71% and 43.62%, respectively.
Ladies and Gentlemen, considering the current global crises, I would like to express word of hope based on some statistics from different sources. QSTML is engaged in dyeing of different types of yarn to the 100% export-oriented sweater industry as deemed exporter. Yes, we will be cautious while making any investment decisions and try our best to safeguard in every possible way so that the company and its shareholders remain protected. On the other hand, I would like to take your eyes on a news headline, "Bangladesh Becoming a Key Sweater Sourcing Hub" published in The Daily Star dated April 10, 2022. This headline helps to keep our eyes open and enlighten ourselves to take brave decision to lead the future. Bangladesh is turning into a major sourcing hub for sweaters for international clothing retailers and brands as work orders are shifting from china and global fashion trends are changing. Nowadays, Chinese manufacturers are no longer interested in making sweaters because of the complexities in the manufacturing process, higher cost of production, and shortage of skilled workers, according to industry insiders.
As a result, exports of the item are rising from Bangladesh, the world's second-largest garment supplier after China. Earning from sweater exports reached $5.64 billion in the fiscal year of 2021-22, up 39.21 percent year-on-year, data from the Export Promotion Bureau showed. In FY 2020-21, the receipts stood at $4.05 billion, an increase of 12.62 percent from the previous year's $3.59 billion.
Based of these data we can forecast that sweater emerges as next big bet in Bangladesh as China exit the markets.
While on the subject of an overview analysis of the world's existing political order, which is likely to continue, it is a matter of high concern that fuel price rises and supply channel break-down impact badly in production. However, Government policies provide some preference in the supply of utilities like electricity, gas, fuel, etc. for the Export Processing Zone. QSTML is operating its business in DEPZ, and the production has not yet been hampered for a single moment.
As I would like to conclude my observations, I would thank you all for staying with the company as it grows and glows.
With best wishes for a bright and safe life.
Thanking you all.
Wong Jammy Kwok Chan
Managing Director