BETAMEK REPORTS STRONG GROWTH IN PBT TO RM26.4 MILLION FOR FY2024 FOLLOWING SUCCESSFUL EXPANSION PLANS

Strategic Acquisitions and New Ventures Position Betamek for Robust Outlook in FY2025

RAWANG, 24 MAY 2024 – Betamek Berhad ("Betamek" or the "Company"), an Original Design Manufacturer ("ODM") and a leading player in electronics manufacturing services ("EMS”) for the automotive industry, is pleased to announce the financial results of the fourth quarter for financial year ended 31 March 2024 (“FY2024 Q4”) highlighting a Profit Before Tax (“PBT”) of RM26.40 million for the year (“FY2024”).

For FY2024 Q4, Betamek achieved revenue of RM56.0 million and a PBT of RM5.6 million. This performance was primarily driven by the vehicle audio and visual products segment, which contributed RM43.5 million or 77.61% of the total revenue, while the balance was contributed by vehicle accessories segment.

On a year-on-year basis, Betamek's revenue for FY2024 totalled RM222.0 million, compared to RM205.7 million in the corresponding financial year (“FY2023”), reflecting an increase of 7.93%. The vehicle audio and visual products segment was the primary driver, contributing RM173.7 million or 78.22% of total revenue, where the Company’s revenue was entirely derived from Malaysian customers. FY2024’s PBT rose to RM26.4 million from RM22.4 million in the previous year, an increase of 17.72%, showcasing strong demand for Betamek’s automotive electronics products and components.

For Q4 FY2024, the Group’s revenue slightly decreased by RM3.2 million or 5.42% compared to the preceding quarter (“Q3 FY2024”), primarily due to the long festive holidays that reduced productive days for vehicle production. The vehicle audio and visual products segment generated RM43.5 million in FY 2024 Q4, down from RM45.9 million in FY2024 Q3, while the vehicle accessories segment saw a slight decrease from RM13.4 million to RM12.5 million.

The Gross Profit (“GP”) margin for Q4 was 14.89%, a slight decrease from 15.51% in the preceding quarter, mainly due to the continued weakness of the Malaysian Ringgit (“MYR”) against the US Dollar (“USD”). The PBT margin correspondingly decreased to 9.98% from 11.72% in Q3, influenced by the reduced GP margin and increased operational expenses.

Looking ahead, the Malaysia Automotive Association (“MAA”) projects a Total Industry Volume (“TIV”) of 740,000 units for 2024, indicating sustained demand despite economic uncertainties. The Malaysian government's support for the electric vehicle sector is expected to drive production and attract investments, fostering industry growth. Betamek anticipates a dynamic FY2025, bolstered by the recent joint venture with Shenzen Zhonghong Technology Co., Ltd., (“Shenzen Zhonghong Technology”) aimed at penetrating new ASEAN markets with advanced driver assistance systems (“ADAS”) and smart cockpit solutions. The strategic acquisition of Sanshin (Malaysia) Sdn. Bhd. (“Sanshin Malaysia”) will diversify the Group’s customer base and expand its international footprint, enhancing Betamek’s product offerings and market reach.

Encik Muhammad Fauzi Bin Abd Ghani, Executive Director of Betamek commented on the results: "Our performance in FY2024 underscores Betamek's resilience and strategic vision amidst market challenges. The acquisition of Sanshin Malaysia and our joint venture with Shenzen Zhonghong Technology mark significant milestones that will drive our growth strategies in FY2025. We remain committed to innovation and excellence, and we are confident that these strategic moves will strengthen our market position and deliver long-term value to our stakeholders."

For FY2024, Betamek declared a total dividend of 3.0 sen per share, totalling RM13.5 million.