Frontken Corporation Berhad 200401012517 (651020-T) • A N N U A L R E P O R T 2 0 2 1 18 FINANCIAL REVIEW REVENUE The Group reported higher revenue of RM450.2 million against RM368.3 million of last year, an increment of 22% mainly due to better contributions from nearly all our subsidiaries attributable to the robust growth in our semiconductor business derived from our customers’ ramp up of production and improvement in our oil and gas business. An analysis of revenue by customer location showed growth in our business particularly in Taiwan, Malaysia and Singapore. Our Taiwan business continues to show significant growth of 29% in the financial year 2021 (“FY2021”) due to its customers’ increased production to meet the high demand for their advanced nodes chips. Our Malaysia business benefitted from the improved capital expenditure allocation by their oil & gas customers which partly was attributable to the strong Brent crude oil price. The Singapore business revenue improved due to the robust semi-conductor industry and positive growth of the oil & gas business. EARNINGS The Group’s earnings before interest, tax, depreciation and amortisation (“EBITDA”) for FY2021 was RM34.8 million or 26% higher than that achieved in the preceding year mainly due to improved revenue, strict cost management and continual enhancement of our processes leading to better production efficiency and profit margin. Against the same period last year, the profit after tax increased by RM25.9 million or 29%. The consolidated net profit attributable to shareholders of the Company for FY2021 increased by RM22.5 million or 27% compared to the preceding year. This translated to basic earnings per share of 6.65 sen in FY2021 compared to basic earnings per share of 5.21 sen in the preceding year. RESULTS OF OPERATIONS in RM’000 368,319 450,222 REVENUE 22% 2020 2021 81,968 104,504 NET PROFIT 27% 2020 2021 133,343 168,156 EBITDA 26% 2020 2021 36.2 37.3 EBITDA MARGIN as a % of revenue 1% 2020 2021 REVENUE 2021 2020 % change (by customer location) RM’000 % RM’000 % in revenue Taiwan 303,561 67 235,121 64 29 Malaysia 63,227 14 51,417 14 23 Singapore 48,278 11 46,586 13 4 Philippines 15,335 3 15,397 4 - Others 19,821 5 19,798 5 - Total 450,222 100 368,319 100 22
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