KUALA LUMPUR: Tiles manufacturer and information technology (IT) company YB Ventures Bhd posted a lower net profit of RM2.6 million for the third quarter (Q3) ended 30 September 2021 (FY21), down by 62.8 per cent year-on-year (YoY) from RM7.0 million posted in the same quarter last year.
The lower net profit is in line with the decrease of 70.8 per cent YoY in revenue to RM8.6 million for the quarter from RM29.4 million posted last year.
In a filing to Bursa Malaysia today, the company said it remained profitable in Q3 mainly due to selling old stocks and further operational cost controls.
Chairman Tan Sri Ali Hamsa said despite the weaker earnings in the Q3 FY21, the company is optimistic about the recovery going forward with the reopening of the economy and the company’s operations.
He said in October 2021, the company had resumed operations at full capacity after all operational workers had completed their second dose of vaccine, in line with the guidelines set out by the Health Ministry.
“The resumption of operations will help clear up the backlog orders that have built up since the MCO 3.0, subsequently drive up our company’s earnings in the Q4 FY21,” he said in a statement today.
Executive director Lee Boon Siong said the surge in orders during Q3 FY21 due to the National Recovery Plan (NRP) has led to the increased backlog of orders.
He said the strong demand was mainly driven by the new flagship product Talos Living Tiles, the company’s healthy-driven premium tiles that have received overwhelming responses from the customers and property developers.
“The strong demand for Talos Living Tiles shows that YB Ventures is heading in the right direction.
“The research that we have put in to ensure that our products meet the demand of our customers and property developers who are more health-conscious and aware of the importance of health and sustainability in building materials.
“Based on the increasing orders and demand, we’re confident of a strong recovery going beyond the Q4 FY21,” Lee said.
YB Ventures is completing its private placement exercise for 20 per cent of its total number of issued shares to raise between RM21.1 million and RM145.9 million.
The capital will be used to install the rooftop solar photovoltaic (PV) system at its factory building and warehouse in Kulai, Johor, future viable investments and working capital.
Lee said this is in line with the company’s direction to continue its cost optimisation efforts as installing solar PV systems in the factory and its warehouse will significantly reduce its current electricity consumption of around RM12 million a year.