Frontken Berhad Annual Report 2017

12 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2017 Financial Review RESULTS OF OPERATIONS in RM’000 REVENUE EBITDA 2016 261,844 13% 2016 51,685 27% 2017 296,580 2017 65,550 NET PROFIT EBITDA MARGIN as a % of revenue 2016 20,040 49% 2016 19.7 2% 2017 29,858 2017 22.1 REVENUE The revenue for the Group for the financial year ended 31 December 2017 (“FYE2017”) was RM296.6 million against RM261.8 million in the previous financial year. Overall, the Group revenue increased by RM34.7 million or 13.3% compared to the preceding financial year mainly due to the positive growth of the semi-conductor business. REVENUE (by customer location) 2017 RM’000 % 2016 RM’000 % % change in revenue Taiwan 168,479 57 125,893 48 34 Singapore 46,616 16 38,408 15 21 Malaysia 51,054 17 71,166 27 -28 Philippines 17,462 6 18,061 7 -3 Others 12,969 4 8,316 3 56 Total 296,580 100 261,844 100 13 An analysis of revenue by customer location showed growth in our business across the Group particularly in Taiwan and Singapore. The revenue in Malaysia decreased from RM71.2 million to RM51.1 million mainly due to slowdown in our customers’ business in the oil and gas industry had resulted in a drop of business for the Group’s subsidiaries engaged in that industry in Malaysia. Slowdown in our customers’ business in solar industry also resulted in a drop of business in the Philippines. The revenue in Taiwan increased from RM125.9 million to RM168.5 million in FYE2017 or a 34% increase compared to the preceding financial year. Our subsidiary in Taiwan continue to enjoy better business performance due to the positive growth of the semi-conductor business. The better performance for our subsidiaries in Singapore was attributable to semiconductor related business in Singapore remained stable, with strong support from its customers. EARNINGS Earnings before interest, tax, depreciation and amortization (“EBITDA”) of the Group for FYE2017 increased to RM65.6 million from RM51.7 million the year before. As a percentage of revenue, EBIDTA increased by 2% which was mainly due to higher revenue. The profit after tax increased by 33% to RM36.4 million from RM27.3 million in the previous financial year mainly because of our semiconductor division in Taiwan and Singapore performed better this year.