MAIN Market-listed tiles manufacturer and information technology outfit YB Ventures Bhd (formerly Yi-Lai Bhd) has commenced 2022 on a high note with the group’s manufacturing and trading business segment again propelling earnings growth momentum.
The company posted net profit of RM5.47 mil for its fifth quarter of its financial year ended March 31, 2022 on the back of a revenue of RM26.57 mil.
This marks a seven-fold jump in the group’s quarterly net earnings from a mere RM724,000 in its 4Q ended Dec 31, 2021 while its revenue rose by 23.6% from RRM21.49 mil in its preceding quarter.
For the record, YB Ventures has changed its financial year end from Dec 31 to June 30 due to continuing rising of COVID-19 cases which has significantly impacted the group’s efforts to finalise its financial statements as well as to facilitate better audit planning and allocation of resources while avoiding peak financial reporting period.
Meanwhile, the company has also received resounding approval from its shareholders for its proposed bonus issue of free warrants during its extraordinary general meeting (EGM) held yesterday (May 20) with a 99.99% approval from shareholders who voted on the resolution.
“It has been a great start to 2022 as we have managed to maintain our growth momentum and profitability during the quarter,” commented YB Ventures’ executive director Datuk Au Yee Boon.
“This is despite the challenging operating environment that we are facing amid various uncertainties on the external front. Over the last three months, we have seen how the surge in commodity prices, shortages in supply chain and logistic bottlenecks have driven operating costs higher.”
YB Ventures also expressed concern over price pressure due to the impact of the Russia-Ukraine war on commodity prices as well as the new minimum wage in Malaysia that has been taken effect in May.
According to Au, the management will focus on cost efficiency to maintain its profit margin despite the rising cost pressures.
“The rising cost pressure will affect most businesses in the world and we are no exception. However, our focus on managing our costs as well as the implementation of smart manufacturing will keep our margin at a healthy level,” he justified.
“Another positive takeaway from the recent development is the re-opening of Malaysia’s economy which will boost business sentiments.”
At the close of yesterday’s (May 20) trading, YB Ventures was up 1 sen or 2.35% to 43.5 sen with 828,600 shares traded, thus valuing the company at RM127 mil. – May 21, 2022
