Thanks to a higher demand and the optimisation of its fixed cost structure, Grand Venture Technology is seeing a vast improvement in its 3QFY2021 ended September results.
In its business update, the group recorded that its revenue for the third quarter came in at $31.9 million, some 91% higher than $16.7 million a year ago.
Subsequently, gross profit was 88.4% higher y-o-y at $10.0 million, while net profit after tax (NPAT) came in at $5.2 million, a 251% surge from $1.5 million last year.
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However the group’s gross profit margin suffered by 0.5 percentage points y-o-y to 31.4% from 31.9% previously, mainly due to operational and supply chain disruption. Driven by stronger revenue and optimised fixed cost structure, net profit margin in 3QFY2021 improved to 16.2% from 8.8% in the previous year.
Moving forward, the group on Sept 1 has already announced its intention to transfer its listing from the Catalist Board to the Mainboard of SGX. The company had on Oct 27 obtained the approval in-principle from the SGX for the transfer and had on Nov 1 issued the circular and the notice of extraordinary general meeting on SGX.
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The group is working expeditiously to deploy the capital raised from the placement exercises in March and September this year, to maximise shareholder value.
The capital is expected to be deployed into the strategic merger and acquisition of engineering know-how, competencies, operational capabilities, and market share and organic growth in scaling existing competencies and market.
For more stories about where the money flows, click here for our Capital section
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The group also continues its research and development into advanced manufacturing techniques, including mechatronics, and advanced materials such as quartz and ceramics so as to enhance the product and services offerings to existing and prospective customers. Meanwhile, it updates that it is making good progress towards its Industry 4.0 initiatives at its Singapore facilities and had embarked on its technological roadmap to future-proof its operations, improve productivity and in overcoming manpower costs and restrictions.
Shares in Grand Venture closed 2.3% higher on Nov 3 at $1.34.
Photo: The Edge Singapore/ Samuel Chua
