Kuala Lumpur, 6 June 2018 – Dagang NeXchange Berhad ("DNeX") is set to continue expanding on its business through executing planned initiatives, and exploring opportunities that leverage on existing business building blocks.
The company's business is firmly anchored on two business divisions namely IT & e-Services, and Energy, which diversification has been successfully executed, and business model has been established and results have been positive.
DNeX's performance is motivated from the company's determination to create long term value for shareholders through translating its core competencies into business opportunities.
The company registered a strong set of results in the financial year ending 31 December 2017 ("FY2017") where it recorded RM204.0 million in revenue, an increase of 14 per cent from RM178.4 million in the financial year ended 31 December 2016 ("FY2016").
Trade Facilitation and Business-to-Business ("B2B") segments continue to serve as core revenue drivers of DNeX. In addition, the company made good progress during the year as it ventured into new business revenue streams across both its core business divisions
Its growth in revenue is also attributable to higher contribution from the Energy segment, which more than doubled to RM63.7 million from RM28.9 million in FY2016, mainly due to the full year consolidation of OGPC Group ("OGPC").
DNeX’s FY2017 core profit after tax ("PAT") grew by 76 per cent to RM55.2 million from the core PAT of RM31.3 million in FY2016, excluding the one-off recognition of negative goodwill of RM88.9 million arising from the acquisition of Ping Petroleum Limited ("Ping") in FY 2016.
"We are well positioned for profitable growth and with our two core business divisions namely IT & e-Services as well as Energy, we have a sustainable business model. DNeX is committed to create and capture new opportunities by leveraging on the company's core competencies as well as pursue strategic investments," said En Zainal Abidin Jalil, Group Managing Director of DNeX.
He said in Energy, DNeX has reaped returns from its acquisitions in OGPC Group and investment in Ping Petroleum Limited ("Ping"), which have also contributed positively to the company's financial results.
In IT & e-Services, meanwhile, Trade Facilitation continues to be a significant segment with the extension of the National Single Window ("NSW") concession to August 2019, and plans to expand similar services abroad.
According to Datuk Samsul Husin, Executive Deputy Chairman of DNeX, under Trade Facilitation, DNeX is expanding its services to Business-to-Business ("B2B") e-Services namely through SEALNET, a Web-based one-stop portal for total cargo and trade management services.
In the Halal segment, he said, DNeX has hit key milestones recently with the launch of AIIVA, a Web-based Halal Logistics Management System ("HLMS"), and two memoranda of understanding to work together in the development of a Halal Park in the Philippines.
The company is also building its competency in accounting and financial services with the acquisitions of two leading consulting and accounting system services companies, Genaxis Sdn Bhd ("Genaxis") and Innovation Associates Consulting Sdn Bhd ("IAC"), he added.