Annual Financial Report
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19 June 2024
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Steppe Cement Limited
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("Steppe Cement" or the "Company")
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Final Results for the Year Ended 31 December 2023
 Notice of Annual General Meeting
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The Board of Steppe Cement (AIM: STCM) is pleased to announce the Company's final results for the year ended 31 December 2023, which are set out below.
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Highlights:
·   Steppe Cement has focused on maintaining its market share, limiting cost increases and reducing capex to maintain a healthy balance sheet while interest rates remain high
·   The Company operated in a high inflationary environment which led to an increase in cost of production of USD8 million and a fall in net profit to USD4.5 million (2022: USD17.9 million)
·   The Company generated revenue of USD81.8 million (2022: 86.7 million) following increasing competition in the local market due to new capacity and inability to export to neighbouring countries
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The Company's forthcoming Annual General Meeting ("AGM") is expected to take place at its Malaysian Office at Suite 10.1, 10th Floor, West Wing, Rohas Perkasa, 8 Jalan Perak, Kuala Lumpur Malaysia on Friday, 12 July 2024 at 4:00 p.m. (UTC+8).
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The full Annual Report and the formal Notice of AGM will shortly be made available on the Company's website at www.steppecement.com.
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For further information, please contact:
Steppe Cement Limited | www.steppecement.com | Â |
Javier del Ser PĂ©rez, Chief Executive Officer | Tel: +(603) 2166 0361 | Â |
 | ||
 Strand Hanson Limited (Nominated & Financial Adviser and Broker) |  www.strandhanson.co.uk | |
James Spinney / Robert Collins / Ritchie Balmer | Tel: +44 20 7409 3494 | Â |
 |
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The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended by virtue of the Market Abuse (Amendment) (EU Exit) Regulations 2019.
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CEO STATEMENT
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The political environment stabilised in Kazakhstan in 2023 benefiting the country through higher trade and transit of goods. Meanwhile, Kazakhstan's population, primarily concentrated in the southern regions, continues to grow reaching 20 million people by the end of 2023. The growth in the economy and population brought significant inflation across the board and specifically in the transport sector with logistical bottlenecks in the main corridors to Russia and China caused by the overload of the rail transport system.
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In a more stable political environment, the cement market in Kazakhstan decreased slightly in 2023 to 11.5 million tonnes resulting in a per capita consumption of 575 kg/person per year. Looking ahead, significant population growth, lower interest rates and high commodity prices are expected to improve the housing construction sector in 2024.
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Steppe Cement's sales volume decreased by 3% compared with the previous year, due to logistical difficulties in the railway system. Traffic to and from Russia, as well as transit from China, increased significantly in 2023. The Company's domestic sales increased by 4%, but exports were reduced to virtually zero.
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Overall, cement imports into Kazakshtan mostly from Russia to the Aktobe region, decreased by 0.1 million tonnes to 0.5 million tonnes during the period, being equivalent to 4% of the total cement market. Exports from local producers increased slightly by 9% to 1.2 million tonnes during the year, with these being increasingly to Kyrgystan. Uzbekistan has commisioned a lot of new capacity that has brought lower prices such that exports from Kazakhstan are now less profitable. Exports remain concentrated towards the Tashkent and Bishkek areas which are very close to the three main producers in South Kazakhstan.
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The Kazakhstan cement market has balanced demand and production levels, although some new entrants have won market share at the expense of historical players. Seasonal market demand decreased in the first quarter of the year due to weather conditions; and then bounced back in the summer season. The northen regions are more affected by this tendency and we expected this pattern to continue over the course of 2024. We therefore decided to build our stocks of clinker in the first quarter of 2024 in preparation for meeting demand later in the year.
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From early 2023, the Kazakhstan government stated its intention to lower inflation. However, Â at an annualized rate of 9.8% in 2024, it remains similar to 2023. The National Bank has reduced the base interest rate to 14.75% as of April 2024 from a peak of 16.75% in mid 2023. The interbank rate (TONIA) which was hovering at 9% from 2018 to early 2022, peaked at 17.5% in late 2022 and has now come down to 13%. Higher interest rates makes investment in house building as well as new cement capacity more difficult to justify.
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In 2023, Steppe Cement recorded a net profit of USD4.5 million compared to a net profit of USD17.9 million in 2022, while EBITDA fell to USD12.4 million from USD 31 million. This reduction was mostly due to an increase in the cash cost of production of USD8 million due to inflation. The Company could not pass this increased cost to its clients due to strong competition from other cement producers. Other factors contributing to a higher cost of production were the higher transportation costs, despite the focus on markets closer to Karaganda, lower selling prices and lower sales volumes. Steppe Cement's average cement selling prices decreased by 4% in KZT and USD, to USD50 per tonne delivered.
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During 2023, Steppe Cement operated both lines at 82% of their combined capacity. Capacity has been increased by 0.1 million tonnes so far in 2024 after the modification to the preheater tower at line 6, which was completed in late 2023. This was part of a USD3.1 million CAPEX/ refurbishment programme to ensure the ability of our plant and equipment to efficiently meet future production requirements. It is expected that USD2.4 million will be invested in 2024 to continue this work. Further details on CAPEX are set out below.
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Shareholders' funds increased to USD70.7 million at the end of 2023 from USD65.1 million at the end of 2022 as there was no dividend distributed. A capital repayment of approximately USD4.2 million was subsequently paid in June 2024.
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It is also worth noting that our factory receives an allocation of CO2 emissions from the government and it does not trade them, as we need them for production. There is a very small market for alternative fuels and they are so far not competitively priced versus coal. However we have started to use pyrolysis oil in lieu of diesel wherever possible. At the same time, the use of additives in the cement formula is limited by current regulations. Clients tend to prefer cement with a limited amount of additives, particularly in the winter season.
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            Key financials | Year ended | Year ended | Inc/(Dec)% |
Sales (tonnes of cement) | 1,626,268 | 1,670,174 | (3%) |
Consolidated turnover (KZT million) | 37,286 | 40,023 | (7%) |
Consolidated turnover (USD million) | 81.8 | 86.7 | (6%) |
Consolidated profit before tax (USD million) | 5.4 | 21.3 | (75%) |
Consolidated profit after tax (USD million) | 4.5 | 17.4 | (74%) |
Profit per share (US cents) | 2.1 | 8.0 | (74%) |
Shareholders' funds (USD million) | 70.7 | 65.1 | 9% |
Average exchange rate (KZT/USD) | 456 | 461 | (1%) |
Exchange rate as at year end (KZT/USD) | 454 | 462 | (2%) |
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Production and operating costs
Line 5 worked at 80% of its capacity, producing 878,184 tonnes of cement, while Line 6 worked at 83% and produced 748,084 tonnes. As mentioned above, the Company expects higher figures for 2024 as clinker production has already increased by 27% in the first quarter of 2024.
In 2023, cost per tonne of cement increased by 19% in KZT which was a higher rate than the official inflation figure published by the National Bank of Kazakhstan of 9.8%. Electricity tariffs increased by 38%, coal costs by 21%, railway tariffs by 28%, diesel costs by 8%, salary expenses by 20% and wagon rental increased by 90% as our long term rental agreement had to be renewed, but it was partly offset by our higher rental revenue in winter through leasing out the wagons when not in use. These increases were implemented in the first half of 2023 after the official inflation figure for 2022 of 20.3% was published.
The average production cost of clinker increased from USD23/tonne to USD29/tonne, while the cost of cement increased from USD27/tonne to USD33/tonne in 2023.
Selling expenses, reflecting mostly cement delivery costs, inceased to USD8.1/tonne from USD6.7/tonne last year. The inflation in railway transport was much higher but we concentrated our sales in nearby markets by truck delivery, thereby reducing our reliance on the railway lines. General and administrative expenses also increased to USD7.1 million in 2023 from USD6.2 million in 2022 as a consequence of salary increases.
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On 31 March 2024 the Company had 794 employees, a 2% decrease compared with the previous year.
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In 2023, finance costs were USD 0.9 million, 13% lower than in 2022, mostly as a result of decreased interest paid on loans and current banking fees. Other income of USD1.8 million during the period reflects mostly the income from the rental of the Company's railway wagons when they are not being used in winter.
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Capital investment
Capital investment reduced significantly to USD3.1 million during the year following the reduction in margins. The Company managed to complete three major projects in 2023 which were financed by internal cash flow:
-Â Â Â Â the implemation of a new separator for cement mill two, at a cost of USD 2 million, which was finally commissioned in March 2024 and which has so far increased its capacity by 25% since its installation;
-Â Â Â Â the preheater raiser duct's extension by 24 meters to improve the preheater calcination in line 6 which has shown very positive results in terms of capacity and heat consumption; and
-Â Â Â Â the conversion of raw mill 3's separator into a dynamic separator to support the increased production of line 6 by 10% when completed.
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The Company has plans for a further USD2.4 million investment in 2024 including:
-Â Â Â Â the conversion of the raw mill 3 separator, from static to dynamic, at a cost of USD1 million to increase capacity, reliability, quality and to reduce electricity consumption;
-Â Â Â Â the modification of the line 6 cooler extraction system at a cost of USD 0.35 million to improve reliability and reduce heat losses; and
-Â Â Â Â software and hardware upgrades in the control system at a cost of USD0.7 million to allow further automatisation of the factory.
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Financing
Commercial interest rates in Kazakhstan remain high at 14.5% after having reached 20% per annum in 2023. The government has reactivated the subsidised credit lines under certain conditions and the Company intends to apply to obtain them to finance capex whenever possible. At the end of 2023, the Company's total loans outstanding were stable at USD6.5 million versus USD6.7 million in 2022. Long-term loans decreased to USD2.8 million from USD3.9million, while short term loans increased to USD3.6 million from USD2.8 million. All the loans had subsidized interest rates.
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Taking the cash on hand into consideration, the Company ended 2023 with zero net debt, excluding IFRS 16 leases, mostly rental wagons.
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Steppe maintains its short term credit lines as a stand by including:
-Â Â Â Â KZT 1 billion short term in a government subsidized program in KZT at 6% per annum
-Â Â Â Â KZT 2 billion from Halyk Bank at 6% p.a. in USD or 20% in KZT.
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The KZT strenghtened by 1% against the USD with an average exchange rate of 456 KZT/USD in 2023 vs 461 KZT/USD in 2022.
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Javier del Ser Perez
Chief Executive Officer
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STEPPE CEMENT LTD
(Incorported in Labuan FT, Malaysia under Labuan Companies Act, 1990)
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STATEMENTS OF PROFIT OR LOSS
FOR THE YEAR ENDED 31 DECEMBER 2023
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 | The Group | The Company | |||||||
Note | 2023 | 2022 | 2023 | 2022 | |||||
 | USD | USD | USD | USD | |||||
 |  |  |  |  | |||||
Revenue | 81,762,548 | 86,732,039 | 1,401,554 | 14,641,442 | |||||
Cost of sales | (57,563,625) | (49,107,243) | - | - | |||||
Gross profit | 24,198,923 | 37,624,796 | 1,401,554 | 14,641,442 | |||||
Selling expenses | (13,225,616) | (11,260,494) | - | - | |||||
General and   administrative   expenses |   (7,051,216) |   (6,233,171) |   (402,767) |   (369,812) | |||||
Interest income | 452,740 | 573,913 | 17,753 | - | |||||
Finance costs | (910,441) | (1,048,888) | - | - | |||||
Reversal/(impairment) of losses of financial assets | Â 381,377 | Â (159,909) | Â - | Â - | |||||
Net foreign exchange   (loss)/gain |  (300,740) |  (435,204) |  55,437 |  (330,675) | |||||
Other income, net | 1,848,195 | 2,630,033 | - | - | |||||
Profit before income tax | 5,393,222 | 21,691,076 | 1,071,977 | 13,940,955 | |||||
Income tax expense | (867,801) | (3,807,706) | - | - | |||||
Profit for the year | 4,525,421 | 17,883,370 | 1,071,977 | 13,940,955 | |||||
Attributable to | |||||||||
  shareholders of the   Company |  4,525,421 |  17,883,370 |  1,071,977 |  13,940,955 | |||||
Earnings per share: | |||||||||
Basic and diluted (cents) | 2.1 | 8.2 |
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STEPPE CEMENT LTD
(Incorported in Labuan FT, Malaysia under Labuan Companies Act, 1990)
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STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
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 | The Group | The Company | ||||||||
 | 2023 | 2022 | 2023 | 2022 | ||||||
 | USD | USD | USD | USD | ||||||
 |  |  |  |  | ||||||
Profit for the year | 4,525,421 | 17,883,370 | 1,071,977 | 13,940,955 | ||||||
Other comprehensive   income/(loss): | ||||||||||
 | ||||||||||
Items that may be reclassified   subsequently to profit or   loss: | ||||||||||
Exchange differences   arising from translation of   foreign operations |    |   1,089,351 |   (5,829,119) |   - |   - | |||||
Total other comprehensive   income/(loss) |  1,089,351 |   |  (5,829,119) |  - |  - | |||||
Total comprehensive   income for the year |  5,614,772 |  12,054,251 |  1,071,977 |  13,940,955 | ||||||
Attributable to the | ||||||||||
  shareholders of the   Company |  5,614,772 |  12,054,251 |  1,071,977 |  13,940,955 |
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STEPPE CEMENT LTD
(Incorported in Labuan FT, Malaysia under Labuan Companies Act, 1990)
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STATEMENTS OF FINANCIAL POSITION
AS OF 31 DECEMBER 2023
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 | The Group | The Company | |||||||
Note | 2023 | 2022 | 2023 | 2022 | |||||
 | USD | USD | USD | USD | |||||
 |  |  |  |  | |||||
Assets | |||||||||
Non-Current Assets | |||||||||
Property, plant and   equipment |   |  50,543,528 |  49,361,749 |  - |  - | ||||
Right-of-use assets | - | 5,525 | - | - | |||||
Investment in subsidiary   companies |   |  - |  - |  36,199,699 |  36,199,599 | ||||
Loans to subsidiary   company |   |  - |  - |  30,020,000 |  30,050,000 | ||||
Other assets | 222,609 | 1,530,916 | - | - | |||||
Total Non-Current   Assets |  50,766,137 |  50,898,190 |  66,219,699 |  66,249,599 | |||||
Current Assets | |||||||||
Inventories | 28,956,767 | 20,646,156 | - | - | |||||
Trade and other receivables | 1,736,937 | 2,045,004 | - | 2,372,114 | |||||
Other assets | 2,853,142 | 1,081,719 | - | - | |||||
Income tax recoverable | 2,167,844 | 602,734 | - | - | |||||
Loans and advances to   subsidiary companies |   |  - |   |  - |  65,761 |  60,352 | |||
Advances, deposits and prepaid expenses | Â Â | Â 2,903,169 | Â 8,577,714 | Â 10,633 | Â 7,305 | ||||
Cash and cash   equivalents |   |  6,435,437 |  4,143,953 |  4,623,695 |  1,239,827 | ||||
Total Current Assets | 45,053,296 | 37,097,280 | 4,700,089 | 3,679,598 | |||||
Total Assets | 95,819,433 | 87,995,470 | 70,919,788 | 69,929,197 |
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STEPPE CEMENT LTD
(Incorported in Labuan FT, Malaysia under Labuan Companies Act, 1990)
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STATEMENTS OF FINANCIAL POSITION
AS OF 31 DECEMBER 2023 (CONTINUED)
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 | The Group |  | The Company | ||||||
Note | 2023 | Â | 2022 | Â | 2023 | Â | 2022 | ||
 | USD |  | USD |  | USD |  | USD | ||
Equity and Liabilities | |||||||||
Capital and Reserves | |||||||||
Share capital | 73,760,924 | 73,760,924 | 73,760,924 | 73,760,924 | |||||
Revaluation reserve | 1,515,896 | 1,795,426 | - | - | |||||
Translation reserve | (125,177,850) | (126,267,201) | - | - | |||||
Retained earnings/ Â Â (Accumulated losses) | Â Â | Â 120,596,062 | Â 115,791,111 | Â (3,148,214) | Â (4,220,191) | ||||
Net Equity | 70,695,032 | 65,080,260 | 70,612,710 | 69,540,733 | |||||
Non-Current Liabilities | |||||||||
Borrowings | 2,845,655 | 3,913,689 | - | - | |||||
Deferred taxes | 3,168,141 | 3,266,775 | - | - | |||||
Deferred income | 2,350,932 | 2,572,552 | - | - | |||||
Provision for site   restoration |  193,303 |  178,420 |  - |  - | |||||
Total Non-Current   Liabilities |  8,558,031 |  9,931,436 |  - |  - | |||||
Current Liabilities | |||||||||
Trade and other payables | 9,873,140 | 7,348,587 | 118 | - | |||||
Accrued and other   liabilities |   |  2,425,105 |  2,250,689 |  163,386 |   |  143,808 | |||
Amount owing to a   subsidiary company |   |  - |  - |  143,574 |  244,656 | ||||
Borrowings | 3,638,305 | 2,814,525 | - | - | |||||
Lease liabilities | - | 58,960 | - | - | |||||
Deferred income | 194,729 | 140,259 | - | - | |||||
Taxes payable | 435,091 | 370,754 | - | - | |||||
Total Current Liabilities | 16,566,370 | 12,983,774 | 307,078 | 388,464 | |||||
 | |||||||||
Total Liabilities | 25,124,401 | 22,915,210 | 307,078 | 388,464 | |||||
Total Equity and   Liabilities |  95,819,433 |  87,995,470 |  70,919,788 |  69,929,197 |
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STEPPE CEMENT LTD
(Incorported in Labuan FT, Malaysia under Labuan Companies Act, 1990)
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STATEMENTS OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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 |  | Distributable |  | ||||||
 The Group | Share capital | Revaluation reserve | Translation reserve | Retained earnings |  Net* | ||||
USD | USD | USD | USD | USD | |||||
As of 1 January 2023 | 73,760,924 | 1,795,426 | (126,267,201) | 115,791,111 | 65,080,260 | ||||
Profit for the year | - | - | - | 4,525,421 | 4,525,421 | ||||
Other comprehensive income | - | - | 1,089,351 | - | 1,089,351 | ||||
Total comprehensive income for the year | - | - | 1,089,351 | 4,525,421 | 5,614,772 | ||||
Other transactions impacting equity: | |||||||||
  Transfer of revaluation reserve relating to   property, plant and equipment through use |  - |  (279,530) |  - |  279,530 |  - | ||||
As of 31 December 2023 | 73,760,924 | 1,515,896 | (125,177,850) | 120,596,062 | 70,695,032 |
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* Attributable to the shareholders of the Company
STEPPE CEMENT LTD
(Incorported in Labuan FT, Malaysia under Labuan Companies Act, 1990)
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STATEMENTS OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED)
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 |  | Distributable |  | ||||||
 The Group | Share capital | Revaluation reserve | Translation reserve | Retained earnings |  Net* | ||||
USD | USD | USD | USD | USD | |||||
As of 1 January 2022 | 73,760,924 | 2,068,114 | (120,438,082) | 110,190,323 | 65,581,279 | ||||
Profit for the year | - | - | - | 17,883,370 | 17,883,370 | ||||
Other comprehensive loss | - | - | (5,829,119) | - | (5,829,119) | ||||
Total comprehensive income for the year | - | - | (5,829,119) | 17,883,370 | 12,054,251 | ||||
Other transactions impacting equity: | |||||||||
  Dividends paid (Note 19) | - | - | - | (12,555,270) | (12,555,270) | ||||
  Transfer of revaluation reserve relating to   property, plant and equipment through use |  - |  (272,688) |  - |  272,688 |  - | ||||
As of 31 December 2022 | 73,760,924 | 1,795,426 | (126,267,201) | 115,791,111 | 65,080,260 |
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* Attributable to the shareholders of the Company
STEPPE CEMENT LTD
(Incorported in Labuan FT, Malaysia under Labuan Companies Act, 1990)
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STATEMENTS OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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 The Company | Share Capital |  | Accumulated losses |  |  Net |
USD | Â | USD | Â | USD | |
 |  |  |  |  | |
As of 1 January 2023 | 73,760,924 | (4,220,191) | 69,540,733 | ||
Total comprehensive income   for the year |  - |  1,071,977 |  1,071,977 | ||
As of 31 December 2023 | 73,760,924 | (3,148,214) | 70,612,710 | ||
As of 1 January 2022 | 73,760,924 | (5,605,876) | 68,155,048 | ||
Total comprehensive income   for the year |  - |  13,940,955 |  13,940,955 | ||
Dividends paid (Note 19) | - | (12,555,270) | (12,555,270) | ||
As of 31 December 2022 | 73,760,924 | (4,220,191) | 69,540,733 |
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STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
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The Group | The Company | |||||||
2023 | 2022 | 2023 | 2022 | |||||
USD | USD | USD | USD | |||||
 |  |  |  | |||||
CASH FLOWS FROM/Â Â (USED IN) OPERATINGÂ Â ACTIVITIES | ||||||||
Profit before income tax | 5,393,222 | 21,691,076 | 1,071,977 | 13,940,955 | ||||
Adjustments for: | ||||||||
  Depreciation of property,      plant and equipment |  5,781,506 |  6,135,236 |  - |  - | ||||
  Depreciation of right-of-use      assets |  5,600 |  1,587,293 |  - |  - | ||||
  Dividend income | - | - | - | (13,309,140) | ||||
  Gain on disposal of property, plant      and equipment |  (80,057) |  (27,725) |  - |  - | ||||
  Net interest income | - | - | (1,401,554) | (1,332,302) | ||||
Interest income | (452,740) | (573,913) | (17,753) | - | ||||
  Finance costs | 910,441 | 1,048,888 | - | - | ||||
  Net unrealised foreign exchange      loss/(gain) |  296,577 |  538,663 |  (58,142) |  - | ||||
  Provision for obsolete      inventories |  144,373 |  167,628 |  - |  - | ||||
  Credit loss allowance for      doubtful receivables |  268,215 |  174,650 |  - |  - | ||||
  Allowance for advances paid      to third parties |  44,353 |  157,723 |  - |  - | ||||
  Deferred income | (215,430) | (140,259) | - | - | ||||
  Reversal of allowance for trade receivable no longer required |  (628,139) |  (159,072) |  - |  - | ||||
  Reversal of allowance for advances paid to third parties no       longer required |   (65,806) |   (13,392) | ||||||
Operating cash flows before | ||||||||
  movements in working capital | 11,402,115 | 30,586,796 | (405,472) | (700,487) | ||||
Movement in working capital: | ||||||||
(Increase)/Decrease in: | ||||||||
  Inventories | (11,404,636) | (8,501,824) | - | - | ||||
  Trade and other receivables | 703,249 | (427,760) | (793,500) | (865,000) | ||||
  Loans and advances to      subsidiary companies |  - |  - |  24,591 |  19,184 | ||||
  Advances, deposits, prepaid expenses and other assets |  5,229,623 |  (5,608,461) |  (3,328) |  (2,334) | ||||
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STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED)
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The Group | The Company | ||||||||
2023 | 2022 | 2023 | 2022 | ||||||
USD | USD | USD | USD | ||||||
 |  |  |  | ||||||
Increase/(Decrease) in: | |||||||||
  Trade and other payables | 2,088,374 | 2,097,417 | - | - | |||||
  Accrued and other liabilities | 528,710 | 786,440 | 19,578 | (84,089) | |||||
 | |||||||||
Cash Generated From/(Used In) Â Â Operations | Â 8,547,435 | Â 18,932,608 | Â (1,158,131) | Â (1,632,726) | |||||
Interest paid | (404,092) | (551,528) | |||||||
Income tax paid | (2,497,453) | (4,599,594) | - | - | |||||
 | |||||||||
Net Cash From/(Used In) Operating   Activities |  5,645,890 |  13,781,486 |   |  (1,158,131) |  (1,632,726) | ||||
 | |||||||||
CASH FLOWS (USED IN)/ FROM INVESTING ACTIVITIES | |||||||||
Purchase of property, plant and   equipment |  (3,059,748) |  (7,768,695) |  - |  - | |||||
Contribution to site restoration | |||||||||
  fund | 11,664 | (334) | - | - | |||||
Proceeds from disposal of   property, plant and equipment |  515,692 |  85,599 |  - |  - | |||||
Dividends received from   subsidiary |  - |  - |  - |  13,309,140 | |||||
Interest received | 452,740 | 573,913 | 4,585,039 | 1,549,552 | |||||
Additional investment in subsidiary | - | - | (100) | - | |||||
Net Cash (Used In)/From   Investing Activities |  (2,079,652) |  (7,109,517) |  4,584,939 |  14,858,692 | |||||
CASH FLOWS FROM/ Â Â (USED IN) FINANCING Â Â ACTIVITIES | |||||||||
Repayment to a subsidiary company | - | - | (64,389) | (45,094) | |||||
Proceeds from borrowings* | 3,378,349 | 7,299,722 | - | - | |||||
Repayment of borrowings* | (4,131,409) | (4,472,018) | - | - | |||||
Repayment of lease liabilities* | (59,788) | (1,838,949) | - | - | |||||
Dividends paid | - | (12,555,270) | - | (12,555,270) | |||||
Interest paid | (506,349) | (486,807) | - | - | |||||
Net Cash Used In Financing   Activities |  (1,319,197) |  (12,053,322) |  (64,389) |  (12,600,364) | |||||
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STEPPE CEMENT LTD
(Incorported in Labuan FT, Malaysia under Labuan Companies Act, 1990)
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STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED)
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The Group | The Company | ||||||
2023 | 2022 | 2023 | 2022 | ||||
USD | USD | USD | USD | ||||
NET INCREASE/(DECREASE) Â Â IN CASH AND CASH Â Â EQUIVALENTS | Â Â 2,247,041 | Â Â (5,381,353) | Â Â 3,362,419 | Â Â 625,602 | |||
 | |||||||
EFFECTS OF FOREIGN Â Â EXCHANGE RATE Â Â CHANGES | Â Â 44,443 | Â Â (610,716) | Â Â 21,449 | Â Â - | |||
 | |||||||
CASH AND CASH Â Â EQUIVALENTS AT Â Â BEGINNING OF YEAR | Â Â 4,143,953 | Â Â 10,136,022 | Â Â 1,239,827 | Â Â 614,225 | |||
 | |||||||
CASH AND CASH Â Â EQUIVALENTS AT Â Â END OF YEAR (Note 17) | Â Â 6,435,437 | Â Â 4,143,953 | Â Â 4,623,695 | Â Â 1,239,827 |
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