APB ACHIEVES RM20.5 MILLION IN REVENUE FOR LATEST QUARTER, WHILE GEARING UP FOR NEXT STAGE OF GROWTH

Globetronics Acquisition Catalyses Strategic Business Diversification into Semiconductor Space

SHAH ALAM, 23 FEBRUARY 2024 – APB Resources Berhad ("APB" or the "Group"), a leading fabricator of design engineering equipment, today shared strategic updates and the Group’s financial performance for the fifteen-month period ended 31 December 2023.

In a strategic move to align APB’s operations with long-term growth objectives, the Board of Directors approved the extension of the current financial year, transitioning the year-end from 30 September to 31 March. This adjustment results in the forthcoming audited financial statements covering an 18-month period from 1 October 2022 to 31 March 2024, setting subsequent financial year-ends to 31 March annually.

On 18 December 2023, APB made a pivotal stride by entering into a Share Sale Agreement (“SSA”) with General Produce Agency Sdn. Berhad and Ng Kweng Chong Holdings Sdn.  Bhd. for the acquisition of 70.0 million ordinary shares in Globetronics Technology Bhd ("Globetronics"), amounting to approximately 10.41% equity interest, for a total consideration of RM140.0 million cash. This acquisition, supported by shareholders at the Extraordinary General Meeting (“EGM”) on 6 February 2024 and concluded on 16 February 2024, signifies APB's strategic entry into the semiconductor and electronic components manufacturing sector as part of the Group’s business diversification efforts.

For the quarter ended 31 December 2023, APB reported a revenue of RM20.5 million, an 8.1% increase from the immediate previous quarter, reflecting the Group’s resilient operational capabilities amidst strategic transitions. Despite a shift in product mix leading to a gross profit margin adjustment to 30.3%, and the incurrence of professional fees related to recent acquisitions, the Company recorded a profit after tax of RM0.6 million. These figures represent a period of strategic investment and realignment, as APB is positioning the Group for the next stage of growth.

The management team of APB commented: "In reflecting upon this quarter's financial outcomes, we acknowledge the strategic investments we've undertaken, particularly our acquisition of Globetronics, as pivotal moves towards APB's diversification and long-term growth. Though our profit after tax experienced a temporary adjustment, primarily due to acquisition-related expenditures, we view these steps as foundational to solidifying our footprint in the semiconductor industry. Our commitment remains firm on leveraging these strategic initiatives to enhance our market position and deliver sustained value to our stakeholders."

To conclude, APB remains positive about the outlook, not only within the core fabrication sector but also in the burgeoning semiconductor space. The industry's renewed capital investment, especially in fields where APB has deep-seated expertise like oleo-chemical, oil & gas, energy, and petrochemical sectors, combined with the strategic entry into the semiconductor domain through the acquisition of Globetronics, positions the Group to seize a spectrum of emerging opportunities. This dual focus underscores APB's readiness to leverage the Group’s established strengths while embracing new growth avenues.