FLEXIDYNAMIC ACHIEVES RM4.75 MILLION IN REVENUE FOR Q1 FY2024, SEES IMPROVING PROSPECTS FROM GLOVE INDUSTRY

Company Expands into Infrastructure Projects and Remains Buoyant with Profitability

KUALA LUMPUR, 23 MAY 2024 – Flexidynamic Holdings Berhad ("Flexidynamic" or the "Company"), an established solutions provider for the rubber glove manufacturing industry, is pleased to announce the financial results for the first quarter ended 31 March 2024 ("Q1 FY2024").

The Group recorded revenue of RM4.75 million, a decrease from RM10.80 million in the corresponding quarter of the previous year ("Q1 FY2023"). The reduction in revenue is attributed to customers prioritising repair and maintenance over expansion plans amidst the recent resurgence of Covid-19, which has affected market dynamics.

Profit before taxation (“PBT”) for Q1 FY2024 was RM0.15 million, down from RM0.78 million in Q1 FY2023. The decline in PBT is primarily due to the drop in revenue, which was offset by effective cost management strategies.

The comparison with the immediate preceding quarter (“Q4 FY2023”) highlights a strategic shift. While revenue decreased from RM8.66 million in Q4 FY2023 to RM4.75 million in Q1 FY2024, and PBT reduced from RM1.21 million to RM0.15 million, this sequential change reflects the completion of high-margin projects in the previous quarter and positions the Company for new growth opportunities.

Mr. Tan Kong Leong, Managing Director of Flexidynamic, commented on the results: “Despite challenging market conditions, our emphasis on cost management and operational efficiency has enabled us to maintain profitability. Securing the RM12.4 million contract for the water treatment plant and water intake at Loji Rawatan Air Chupak, Jajahan Gua Musang, Kelantan, marks a significant milestone in our strategic expansion into renewable energy and infrastructure projects. This contract not only paves the way for future growth but also reinforces our market position in the critical rubber glove industry, especially highlighted by the recent resurgence of Covid-19 and the increase of import tariff to 25.0% on China made gloves by US has driven increased enquiries for our engineering solutions.”

Since its inception in 2021, Flexidynamic has firmly established its roots in the rubber glove manufacturing industry. The strategic acquisition of Flexidynamic Engineering Co. Ltd. in Thailand in 2018 has significantly bolstered its presence in Southeast Asia, with operational offices in Malaysia and Thailand, and a manufacturing facility in Banting, Malaysia. This latest contract marks another significant milestone in Flexidynamic's journey towards diversification and growth, opening new avenues within the infrastructure sector and beyond.