MQTECH 0070 Share Price

The gross loss amounted to RM1.77 million, in contrast to the gross profit of RM5.50 million in the prior year. This decline is due to a substantial decrease in customer orders, particularly from our major customers in Thailand. As we navigate an era marked by high inflation and uncertainty, we maintain a cautious yet optimistic outlook on future trends. Anticipating that operating costs will persist at elevated levels, we remain committed to optimizing operational efficiency and stringent quality control. In addition to cost management, our strategic focus extends to securing projects and investments vital for sustainable growth. By actively pursuing opportunities and strategic investments, we aim to fortify our position and ensure long-term resilience in the dynamic business landscape.

The group recorded Profit Before Tax of RM1.44 million in FYE2022 from a loss before taxation of RM1.46 million in FPE2021, primarily due to the higher gross profit, higher other income, and fixed cost control. Overall, it is a strong performance, given the impact of the cumulative COVID-19 pandemic and the varying levels of restrictions that were in place during the year. The Group continually focuses on quality control and operational efficiency to lower costs and sustain growth momentum. The Group remains concentrated on high-precision tooling and automation, in addition to our venture into the theme park and property development sector.

The Group recorded profit before tax of RM1.306 million for the quarter under review as compared to loss before tax of RM0.018 million in the immediate preceding quarter (Q2-2022). The increase in profit is mainly due to increase in sales and some costs cutting exercise. The increase of sales was mainly due to increase in customer orders.

MQ Technology has proposed a private placement of up to 182.81 million new shares, representing not more than 20% of its share capital, to raise up to RM10.97mil. The proceeds from the placement will be used to renovate its factory, repay unsecured loan, and for working capital.

Sales increased by RM0.996 million compared to preceding quarter. The increase of sales was mainly due to increase in demand of goods and services from our customers and the efficiency of our sales team. INDIVIDUAL QUARTER The Group recorded profit before tax of RM0.048 million for the quarter under review as compared to loss before tax of RM0.534 million in the immediate preceding quarter (Q1-2021). The increase in profit before tax of RM0.582 million was mainly due to increase in revenue by 77% as compared with previous quarter.

Last month, MQ Technology inked an investment and collaboration joint-venture (JV) agreement with Hong Kong-based JD Resources International Ltd to acquire a company that is involved in the manufacture and marketing of gloves and that owns a glove-making factory. Earlier, MQ Technology, which specialises in high-precision moulds and magnetic coils for hard disk drives, also expressed interest in acquiring Latexx Partners from Semperit Group.