Grand Venture Technology has reported earnings of $5.5 million for the FY2023 ended Dec 31, 2023, 58.4% lower y-o-y. Earnings for the 2HFY2023 fell by 65.4% y-o-y to $2.1 million.
Earnings per share (EPS) for the FY2023 and 2HFY2023 stood at 1.63 cents and 0.63 cents respectively.
The earnings drop was attributable to the softer demand for semiconductor and electronics services during the year, compared to that of the year before.
FY2023 revenue fell by 15.1% y-o-y to $111.3 million as revenue from the semiconductor segment fell due to lowered demand for the company’s back-end semicon services. At the same time, contribution from its life sciences segment as well as the electronics, aerospace, medical and others segments stood relatively stable y-o-y.
Gross profit fell by 22.3% y-o-y to $27.8 million; gross profit margin fell by 2.3 percentage points y-o-y to 25.0%.
Profit before tax fell by 56.2% y-o-y to $6.1 million.
A final dividend of 0.1 cents per share has been declared for the year, down from the dividend of 0.3 cents per share declared in the year before.
As at Dec 31, 2023, cash and cash equivalents stood at $19.1 million.
“There were headwinds in FY2023, mainly in the form of the general slowdown in the back-end semiconductor and electronics sectors, but these were mitigated by sustained demand from customers in the life sciences, aerospace and medical sectors. On the back of our operational resilience, we were able to continue investing in capability and capacity enhancements to support the requirements of the new customers that we are currently onboarding,” says Ricky Lee, executive deputy chairman of Grand Venture Technology JLB .
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Looking ahead, the company expects conditions in the wider operating environment to remain “challenging” with headwinds from the geopolitical tensions and macroeconomic risks.
As such, it has guided for its revenue to come between $58 million and $64 million for the 1HFY2024 ending June 30.
Shares in Grand Venture closed flat at 48.5 cents on Feb 26.
