Kuala Lumpur, 20 February 2017 – Dagang NeXchange Berhad (“DNeX”) has announced a compelling set of results for the financial year ended 31 December 2016 (“FY2016”) that also strengthened the foundation of its long-term prospects.
The Group posted record high revenue and net profit of RM178.5 million and RM132.2 million, respectively compared to RM95.6 million and RM15.8 million in the financial year ended 31 December 2015 (“FY2015”).
A large portion of the revenue growth is attributed to an increase in the Group’s IT and e-Services business namely Trade Facilitation, contribution from the progress billing of the Vehicle Entry Permit (“VEP”) & Road Charges (“RC”) System Project and also revenue from newly acquired Energy subsidiary, OGPC Group.
The IT and e-Services segment contributed 84 per cent to the Group’s full year revenue, while the significant jump in net profit was attributed to the share of result in associate company, Ping Petroleum Limited which amounted to RM123.5 million.
Balance sheet remains strong as the Group continues to be in a net cash position with a cash balance of RM72.3 million and no borrowings.
In the fourth quarter ended 31 December 2016 (“4Q 2016”), DNeX entered a key phase in its transformation as its revenue more than doubled to RM67.3 million while net profit recorded a growth of six times to RM31.0 million as compared to the corresponding period in 2015.
“I am pleased with what we have accomplished as a team in 2016. We have placed DNeX on a much stronger position delivering financial results that mirror the success of its strategic transformation and with solid growth momentum, Today we are a business with two core revenue pillars namely IT and e-Services as well as Energy, anchored by a strong balance sheet,” said Encik Zainal Abidin Jalil, Group Managing Director of DNeX.
“The Group expects both segments of its business to provide sustainable growth moving forward. The initial building blocks that are in place will raise earnings, improve our resiliency across markets and position us for sustainable growth. We are especially pleased that we have reduced the dependence on the National Single Window for Trade Facilitation concession as revenue driver for the Group,” he said.
In FY2016, the Group also recorded a foreign currency translation gain of RM11.9 million, which was reported as Other Comprehensive Income (“OCI”). This OCI gain brings the Group’s total comprehensive income to RM144.1 million.
DNeX’s recent achievements include being appointed as exclusive Project Consultant by TIFFA EDI Services Co Ltd for the Road Charge Vehicle Entry Permit (“RC VEP”) System for the Thailand-Malaysia border and any other borders to Thailand. The Group has also recently been appointed as the Service Provider by Bukti Megah Sdn Bhd for the provision of eWork Permit System for the rehiring programme of illegal foreign workers undertaken by Bukti Megah involving foreign workers without permits from 15 countries.