Dagang NeXchange Berhad reported a net profit of RM47.5 million against RM275 million in revenue for Q4 2023, in terms of revenue breakdown, the Technology division contributed 47 percent to total revenue, while the Energy and Information Technology (“IT”) divisions contributed 33 percent and 20 percent respectively to revenue.
The global semiconductor industry market affected the Group’s Technology division where it recorded RM128.1 million in revenue compared to RM254.1 million in 4Q FY2022. Revenue from the Energy division stood at RM91.7 million as compared to RM135.7 million in the same quarter last year, affected by lower average oil prices of USD74.7 per barrel, from USD115 per barrel earlier. Revenue from the Information Technology (“IT”) division stood at RM55.3 million from RM60.8 million in the same quarter last year due to conclusion of several IT projects in the previous year.
According to Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, Executive Chairman of DNeX, rising interest rates globally have led to recessionary fears and global slowdown in consumer spending resulting in lower demand for semiconductors in consumer electronics like PCs, smartphones and tablets.
As announced on 17 August 2023, the financial year end of the Group has been changed from 30 June to 31 December. The next audited financial statements shall be for a period of 18 months from 1 July 2022 to 31 December 2023, and thereafter, the financial year end shall be 31 December for each subsequent year.
For the 12-month period ended 30 June 2023, revenue stood at RM1.301 billion from RM1.457 billion in the corresponding period of the previous year.
In 12M FY 2023, DNeX reported a net loss of RM118.7 million. This was mainly due to one-off non-operational adjustments incurred during the year such as deferred tax liability expenses due to enactment of the EPL by the UK Government, impairment of assets and reversal of deferred tax assets. After adjusting for these items, the Group’s “normalised” net profit stood at RM106.1 million in 12M FY2023.
The Group generated a net cashflow from operating activities of RM186.3 million in 12M FY2023. DNeX remains in a positive net cash position with total cash of RM760.6 million exceeding total borrowings of RM288.9 million as at 30 June 2023.
