- Turnaround expected by Q3, 2022 as the Group is positive on the outlook of ICT & Healthcare divisions
Artificial Intelligence specialist G3 Global Berhad (G3 Global or Group) completed its financial year ended 31 December 2021 (FY2021) on a positive note as the Group’s quarterly revenue surged to the highest level in over 4 years. The stellar performance of its new Healthcare division, where revenue increased by more than 700% quarter-on-quarter (q-o-q) due to stronger sales of COVID-19 antigen kits, propelled G3 Global closer to its turnaround target.
G3 Global, which also supplies Internet-of-Things (IoT) connected objects and deliver cloud-based data solutions, recorded a revenue of RM18.79 million in the fourth quarter of FY2021, representing a strong growth of more than eight-fold year-on-year (“y-o-y”). The Group had posted a revenue of RM2.29 million in the previous year corresponding quarter.
In terms of bottom-line performance, G3 Global registered a loss before tax of RM7.27 million in the fourth quarter of FY2021 as compared to a loss before tax of RM6.97 million a year earlier. The higher amount was due to the ongoing kitchen-sinking exercise undertaken by G3 Global for its Information, Communications and Technology (“ICT”) division, especially with regards to items related to past collaborations with Green Packet Berhad. This involved an impairment of RM2.9 million made on the amount owed by Green Packet Berhad for ICT products purchased from G3 Global as well as a write-off of inventories worth RM2.2 million relating to telematics and Internet of Things. Excluding the impairment and write-off, G3 Global would have reported a loss before tax of only RM2.2 million in the fourth quarter of FY2021.
As for the 12-month period ended 31 December 2021, G3 Global recorded a 57% jump in revenue to RM23.6 million compared to RM15.03 million previously, mainly driven by the Healthcare division. Meanwhile, the Group’s loss before tax has been successfully reduced to RM9.22 million in FY2021, down by 31% y-o-y from RM13.39 million.
It is noteworthy that the ICT division’s loss from operations in FY2021 declined by 13% y-o-y to RM11.69 million, following the cost-rationalisation exercise undertaken by G3 Global and its subsidiaries. On the other hand, the Healthcare division contributed a profit of RM2.48 million for the financial year ended 2021.
Mr. Dirk Quinten, Managing Director G3 Global Berhad said “G3 Global’s financial turnaround has picked up steam, especially after the diversification into the healthcare sector through the acquisition of a 51% stake in Bestinet Healthcare Sdn Bhd. The outlook for Bestinet Healthcare remains promising, with orders for 2 million test kits in hand. If the current momentum continues, the Group is on track to return to profitability by Q3, 2022. Given our involvement in COVID-19 antigen kit distribution solutions, G3 Global is a beneficiary of the robust demand for such self-testing kits amidst the spike in coronavirus cases in Malaysia.
In addition, with the expected recovery in the Malaysian economy this year, we are also positive that our ICT division will benefit from greater flow of projects. We are already receiving increased queries from existing and prospective clients, and this should translate into an improved performance for the ICT division.
Notwithstanding the impact from the current pandemic, the Group will continue to focus on (1) expanding the involvement in the healthcare sector and pursue key ICT projects, (2) increasing business development efforts to boost revenue and (3) corporate exercise to raise funds.
Moving forward, G3 Global will be spearheaded by a fresh board of directors, especially with new major shareholder Datuk Seri Aminul Islam Abdul Nor (better known as Datuk Seri Mohd Amin) on board.
In November 2021, Datuk Seri Mohd Amin had emerged as a major shareholder of G3 Global with a 25% stake, and was subsequently made an executive director of the Group. He is the founder and chairman of technology firm Bestinet Sdn Bhd, which provides information technology solutions for managing foreign labour for all stakeholders.
On 4 January 2022, former secretary-general of the Ministry of Education Dato’ Sri Alias bin Ahmad was appointed as Independent Non-Executive Director and Chairman. He succeeded Datuk Wan Khalik Bin Wan Muhammad, who served as G3 Global’s Executive Chairman previously.
It is important to note that Green Packet Bhd and Mr. Puan Chan Cheong are no longer related to G3 Global, as both parties have ceased to be substantial shareholders of the Group. G3 Global will be driven by a fresh mandate, with improved aspirations for further growth.
G3 Global is shifting its focus to artificial intelligence and other information technology-based healthcare solutions. Beyond the sales of COVID-19 test kits, the Group’s healthcare business will also explore the vast potential of artificial intelligence in healthcare, especially in the area of healthcare diagnosis.