Minetech Resources which is involved in civil engineering and gold mine business is looking to focus more on its financial service product in coming months.
This comes on the back of its subsidiary, Uniqa Malaysia which provides financial technology support to clients and partners offering remittance services to South Asian markets of India, Bangladesh and Nepal did pretty under the circumstances. These activities are expected to generate RM144 million in annual sales with 10,000 new transactions every month.
“We are currently working with Bank Simpanan Nasional in expanding our remittance corridor to the Philippines, India, Bangladesh and Nepal. The provision of remittance corridor support services is a major milestone in our financial technology push. The request by clients for financial technology support to these countries reflects the belief and trust in our products and services”, expressed Dato’ (Dr). Ts. Awang Daud Executive Chairman of Minetech.
Minetech owns a 60% stake in Uniqa which it acquired earlier this year through its wholly-owned subsidiary, Techmile Resources Sdn Bhd. The entity provides financial technology solutions and its operations fall under the Money Service Business Act 2011.
The Chairman added that the group plans to shift focus to the financial technology sector this year as part of its strategy to expand into areas with huge growth opportunities. Minetech aims to be a full stack financial technology solutions provider in Malaysia offering a variety of financial products including simplifying product purchasing processes digitally.
On reporting its quarterly earnings, the group registered a revenue of RM16.81 million for the first quarter an increase of 74.6% when compared with the corresponding period last year. The increase in revenue was largely derived from its civil engineering business which contributed 52% or RM10.18 million to the Group’s total revenue while its gold mining business rose 22.9% to RM4.31million compared to RM3.50 million over the same period last year. As for the Cheras-Kajang Expressway project, it contributed RM2.50 million.
Despite the increase in revenue overall the group registered loses of RM4.43 million compared to RM2.91 million recorded in the same quarter last year. This was also inclusive of a one-off impairment loss on receivables amounting to RM2.20 million for this quarter.
Dato’ Awang expressed that Minetech will likely continue to face challenging business landscape which it expects to disrupt its operations for the quarter.
