Grand Venture Technology (GVT) has reported a lower profit after tax of $3.15 million for the 1HFY2025 ended June 30, down 26.8% y-o-y.
The group says that the lower net profit is due to foreign exchange (FX) losses and corporate expenses for the reporting period.
However, the group’s revenue for the reporting period came in 37.9% y-o-y higher to $94.2 million, while gross profit grew 27.6% y-o-y higher to $23 million.
Increase in revenue for the 1HFY2025 came from a rise in revenue from the group’s semiconductor segment, driven by progressive improvement in demand from key customers for its test equipment-related products.
Meanwhile, revenue from the group’s life sciences segment recorded a 22.2% y-o-y growth due to expanded wallet share with key customers.
Revenue from the electronics, aerospace, medical and other segments grew 10.5% y-o-y due to growth across all sub-segments, offset by some weakness in the electronics sub-segment.
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For the reporting period, the group’s other income decreased to $700,000 driven by the absence of foreign exchange gain recorded in the same period a year ago. GVT reported a foreign exchange loss of $2.2 million in the 1HFY2025, under the general and administrative expenses.
The group’s finance costs increased to $1.9 million in 1HFY2025 driven by a higher level of borrowings in connection to the acquisition of ACP and trade financing.
Income tax increased by $400,00, as in the year before, the group’s operations in Malaysia enjoyed tax incentives after recording higher levels of capital expenditures.
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In 1HFY2025, the net cash flows used in investing activities was $4.8 million, mainly for capital expenditure in relation to the acquisition of machinery and assets for capabilities and capacity expansion. Net cash used in financing activities amounted to $4.5 million, from a net repayment of bank borrowings, $1.5 million payment of principal portion of lease liabilities and $1.0 million in dividends paid to shareholders.
Shares in Grand Venture Technology closed flat at 92.5 cents on Aug 13.
