Solution Group Berhad recorded a revenue of RM258.36 million for the fourth quarter ended 2021, this is a robust surge of more than 4,000% growth compared to the RM5.87 million recorded in the previous corresponding quarter in 2020.
SGB’s financial performance has swung back to profitability, with profit before tax and profit after tax at RM41.96 million and RM30.03 million, compared to a loss before tax of RM0.84 million and loss after tax of RM1.13 million for the same quarter of the preceding year.
During the quarter under review, the noteworthy increase in revenue was mainly derived from higher sales of its bio-pharmaceutical division supplying CanSino Biologics Inc.’s Convidecia vaccine for COVID-19, which contributed approximately 90% or RM252.0 million.
For the financial year, SGB registered total revenue of RM304.27 million, a notable increase of approximately 1,580.88% compared with RM18.10 million for the preceding financial year ended 2020, which is also the highest annual revenue achieved on record for the Company. SGB also returned to the black on a full-year basis for FYE21, with PBT of RM44.68 million and PAT of RM31.59 million, compared with LBT and LAT of RM0.52 million and RM0.79 million recorded for FYE20.
Mr. Barry Lim, Group Managing Director of SGB expressed: “We are delighted that the Group’s financial performance on a quarterly and full-year basis has shown significant improvements reflecting the amazing increase in revenue when compared with FYE20. Moving into 2022, we are determined to continue strengthening our financial position and scale new heights for the business”.
SGB obtained approval from the Ministry of Health (“MOH”) to begin private sales of CanSino’s Convidecia COVID-19 vaccine in November 2021 following conditional approval allowing the vaccine to be used as a booster shot.
In addition, SGB will commence the formulation as well as the fill and finish (“F&F”) for the vaccine at the Company’s F&F facility, the first such facility to have local formulation capabilities with a production capacity of 3 million vials of vaccine per month that will generate significant sales.
At the same time, SGB is applying to register its F&F facility with the World Health Organisation (“WHO”) to enable the Company to broaden its market to other parts of the world outside of ASEAN.
In respect of FYE21, the Board of Directors has declared an interim dividend of 2.0 sen per ordinary share amounting RM8,827,236. The entitlement and payment date would be on 11 March 2022 and 23 March 2022 respectively.
