Leon Fuat Berhad (“Leon Fuat” or the “Group”), a manufacturer and trader of steel products, specialising in rolled long and flat products today released the Group’s financial results for the fourth quarter ended 31 December 2021 (“Q4FY2021”) recording 61.8% growth in profit after tax (“PAT”) to RM29.09 million compared with RM17.98 million in the corresponding quarter of the preceding year (“Q4FY2020”).
Calvin Ooi Shang How, Executive Director of Leon Fuat
The Group is pleased to note that for the quarter under review, revenue increased by 27.8% to RM254.21 million compared with RM198.96 million in Q4FY2020 while profit before tax (“PBT”) recorded a 106.5% increase to RM38.61 million compared with RM18.70 million.
On a segmental basis, revenue from trading of steel products registered a 26.5% increase to RM81.95 million while revenue from processing of steel products recorded a 28.4% rise to RM172.18 million. The trading segment’s contribution to revenue stood at 32.2% in Q4FY2021 compared with 32.6% in the corresponding quarter of FY2020 while the processing segment’s contribution stood at 67.7% compared with 67.4% in Q4FY2020.
For the financial year ended 31 December 2021 (“FY2021”), PAT grew 377.6% to RM135.98 million compared with RM28.47 million in the preceding financial year. PBT increased 418.1% to RM172.85 million compared with RM33.36 million while revenue gained 50.4% to RM886.58 million compared with RM589.58 million registered in FY2020.
Calvin Ooi Shang How, Executive Director of Leon Fuat said, “The Group’s financial performance for the quarter under review was supported by higher revenue and better gross profit margin from the rise in average selling prices in both the trading and processing of steel products. For the financial year as a whole, revenue was also supported by higher overall average selling prices that also resulting in better overall gross profit margin”.
“We are maintaining our cautious outlook for 2022 on downside risks arising from decelerating economic growth amid continued COVID-19 flareups across the world, diminishing policy support and lingering supply bottlenecks. While the Malaysian economy is expected to grow by 5.5% to 6.5% this year on continued external demand and private sector expenditure, we note concerns over new virus variants, inflation and financial stress that could weigh on economic recovery too”.
“We will continue to monitor the movement of steel prices as we anticipate commodity price volatility due to global factors. Our monitoring will also continue for foreign currencies while negotiating forward contracts where necessary and having prudent inventory management. The Group will continue to actively address COVID-19 concerns by adhering strictly to standard operating procedures and having in place emergency response teams in three of our major subsidiaries”.
The Manganese Ore (India) Limited (MOIL), a schedule ‘A’ CPSE under Ministry of Steel reported 305% jump in its net profit at Rs 245.91 crore for nine months ended December 31, 2021, as against Rs 60.59 crore in previous year. Meeting of the Board of Directors of MOIL Limited approved financial results of the company for the quarter and nine months ended December 31, 2021.
In the said meeting, they also recommended payment of interim dividend @ 30 % (i.e., Rs. 3.00 per share) for the year 2021-22. The company had paid interim dividend of Rs. 2.50 each previous year.
Despite adverse impact of second and third wave of Covid19 affecting the operational activities of the company, MOIL has been able to record excellent performance with better product planning and marketing strategy. During the said nine months period, the company recorded Revenue from operations at Rs. 968.41 crores as against Rs. 727.26 crores during corresponding period last year. The company also registered growth of 16% in production as production of manganese ore increased from 7.41 lakh tonnes to 8.57 lakh tonnes during the said period.
The company has achieved highest Q3 turnover and total income in last four financial years. The net profit of the company at Rs. 123.88 crores isthe highest quarterly profitsince FY2019-20.
ZEAL, an award-winning software consultancy, today announced the commitment to invest 1% of its overall profit into the next generation of technical talent and bridging the digital divide. 50% of the investment went to LEARN academy, who is teaching a new generation of daring and diverse students to be compassionate, curious, and professional web developers. LEARN academy’s guaranteed internship and career services for life are helping to create more career pathways so anyone can enter and excel in the tech industry.
“This investment and donation from ZEAL helps career changers in our community to become software engineers and designers, and addresses the talent gap and lacking representation in tech. We are so happy to partner with ZEAL and what’s possible for the next generation of tech talent.” – Chelsea Kaufman, LEARN academy CEO & Co-Founder
Since 2013, ZEAL has committed a percentage of their profits to organizations like LEARN. This year in addition to LEARN, ZEAL invested in the New Technical Fund which supports organizations like One Digital World and Women in Tech. One Digital World connects refugees worldwide with technical education that is essential to community integration. Women in Tech supports over 70.000 members in 6 continents. They’re on a mission to empower 5M women and girls by 2030 through advocacy, education, and access.
“As leaders, we believe it’s more important than ever to model our values. ZEAL is a principle driven company and bridging the gap is a part of our company’s mission. Through our donations, we are helping to support an ecosystem of change through job seekers looking to upskill, women and girls getting access to technology, digital literacy for asylum seekers and refugees and beyond. I’m honored to work with organizations committed to this work and hope that ZEAL can do more next year.” – Adam Cuppy, ZEAL Co-founder and COO
ZEAL was founded in 2013 to bring integrity and innovation to web and mobile app consulting. The company works with some of the best leaders and companies in technology and in 2021 held their first Virtual Reality Summit, encouraging connection and engagement amongst their distributed teams. They work to bridge the gap through additional programs and initiatives like their software residency program, in partnership with LEARN academy.
About ZEAL: ZEAL is an award-winning software consultancy that specializes in web and mobile application design and development. Their specialty lies in delivering creative solutions, innovative products, and modernized optimizations, while helping to level up client teams and the overall business. ZEAL has a decade of best practices and processes, developed across industries with their client roster that includes startups to Fortune 500s. Founded in 2013, the company works at the intersection of cutting-edge technology, applications, and human-centric experiences. Learn more at codingzeal.com.
ZEAL Jennifer Tacheff 510-809-6906 https://www.codingzeal.com/
IBO Technology Company Limited (stock code: 2708.HK) has announced a positive profit alert that the profit attributable to the owners of the Company of not less than RMB3 million for the six months ended 30 September 2021 (Loss attributable to the owners of the Company of RMB15.45 million for the six months ended 30 September 2020), which was mainly attributable to:
— the substantial increase in revenue and gross profit during the Reporting Period as compared to the Corresponding Period of 2020, as driven by significant increase in revenue from intelligent terminal products sales;
— gain on change in fair value of convertible bonds was recorded during the Reporting Period, while loss on change in fair value of convertible bonds was recorded for the Corresponding Period of 2020;
— gain on change in fair value of consideration payables was recorded during the Reporting Period, while loss on change in fair value of consideration payables was recorded for the Corresponding Period of 2020.
The Board expects that the announcement of the interim results of the Company for the six months ended 30 September 2021 will be published by the end of November 2021.
For more information, please refer to the announcement: https://www1.hkexnews.hk/listedco/listconews/sehk/2021/1110/2021111000473.pdf
Apex Ace Holding Limited (“Apex Ace” or the “Company”; Stock Code: 6036) and its subsidiaries (collectively referred as the “Group”), a Hong Kong-based supplier of digital storage products and electronics components along with relevant technical support, has posted a revenue of approximately HK$1,423.9 million, representing a year-on-year leap of approximately 97.6% for the six months ended 30 June 2021 (“1H2021” or the “Review Period”). Profit attributable to owners of the Company rocketed to approximately HK$26.6 million from the HK$1.0 million recorded for the six months ended 30 June 2020 (“1H2020” or the “Last Corresponding Period”).
During the Review Period, the semiconductor market saw a strong surge in demand and increasing number of customers sought to build more resilient local supply chains or self-sufficiency in competitive technologies in lieu of a reliance on imported chips in anticipation of post-coronavirus disease 2019 (the “COVID-19”) economic recovery. The global shortage of semiconductors has led to an increase in the average selling price of electronics products, and consequently contributed to the Group’s expansion. Coupled with the Group’s strong ties with major local manufacturers, Apex Ace acted as a stable supplier of digital storage products and general electronics components and achieved an outstanding performance during the unprecedented market situation.
Business Review
The Group’s two major product segments, namely digital storage products and general components, contributed 79.7% and 20.3% of the Group’s total revenue during the Review Period, respectively.
Revenue generated from the Group’s digital storage products was approximately HK$1,135.5 million (1H2020: HK$487.3 million). Gross profit of the segment increased to approximately HK$109.2 million (1H2020: HK$30.4 million), up by 259.4% when compared with the Last Corresponding Period. Gross profit margin increased to 9.6% (1H2020: 6.2%), which was mainly attributable to a further broadening of the customer base and a higher average selling price driven by an industry-wide semiconductor shortage and supply chain constraints.
The Group’s another business segment, general components, achieved stable growth, with revenue having increased by 23.5% year-on-year to approximately HK$288.4 million for the Review Period from approximately HK$233.5 million for the Last Corresponding Period. Gross profit of this segment grew by 15.0% to approximately HK$31.9 million (1H2020: HK$27.7 million) and gross profit margin decreased to 11.1% (1H2020: 11.9%)
Prospects
Looking forward, the Group is optimistic about the overall electronics market over the next couple of years on the back of heavy demand for electronics products and the rapid increase in the use of emerging technologies in automotive and industrial electronics. Furthermore, the supply of semiconductors has not kept up with the demand and the chip drought is rippling through supply chains worldwide. The shortage is further complicated by geopolitical tensions, as the US government’s decision to restrict technology exports to China has prompted the end customers of the semiconductor industry to move away from a just-in-time inventory system to a just-in-case system. Stockpiling has been a priority in the manufacturing sector in anticipation of further restrictions.
Many multinational corporations are reviewing their global supply chains in order to ensure a more stable supply of key components. Thanks to the local availability of chips and other components, on top of the ease of securing skilled labor, the majority of companies are likely to remain in China. Indeed, those who have faced shuttered production lines in Southeast Asian countries due to the continued pandemic situation in the region are moving back to China.
In view of the industry trends, the Group will continue its diversification strategy and take measures to expand its business in the telecommunications, automotive and consumer electronics end markets. It will serve its customers with a wider product portfolio in the rapidly changing and advancing electronics components distribution market. The Group will establish a more resilient supply chain and expand ties with local electronics manufacturers, while strengthening its ability to respond to supply chain risks or opportunities at pace. The Group believes that its enhanced and broadened product portfolio will not only drive business momentum and improve customer engagement, but also add significant value to its future operations.
Mr. Lee Bing Kwong, Chairman and Chief Executive Officer of Apex Ace, said, “The Group remains cautiously optimistic about market developments as it has worked to maximize the potential of its product portfolio and operating model. We believe that its growing portfolio addresses emerging and disruptive automotive, industrial and cloud-based applications and it will position itself as a future leader in the microelectronics distribution industry. The Group will continue to diversify its product portfolio and customer base in order to maintain its resilience against economic headwinds and industrial challenges and enhance its competitiveness to stride forward in a prosperous manner”.
About Apex Ace Holding Limited (Stock Code: 6036) Apex Ace principally engages in the supply of digital storage products including memory and data & cloud products and general electronic components as well as technical supports. The Group’s customers are primarily market players in the TMT sector in the PRC and Hong Kong. The Group’s products are classified into two major segments including digital storage products and general components.
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