KUALA LUMPUR: AHB Holdings Bhd (AHB) is exploring new business opportunities to provide an alternative source of revenue as the ongoing armed conflict in Ukraine, the Covid-19 pandemic, US-China-Taiwan tensions, rising interest rates, and volatility of currency exchanges have impacted the company's earnings.
AHB, which manufactures and trades drafting equipment, office furniture, and specialised computer furniture, is planning to venture into property development activities to reduce dependence on its single business segment.
"We believe the new venture will enable us to contribute positively to our company's future earnings and improve its financial position.
"In addition, AHB is planning to organise various marketing functions and events to promote new furniture products in the coming year," AHB said in its annual report filed to Bursa Malaysia.
Further, AHB believes that the venture into property development will improve the company's core business as there is potential to be synergised by furnishing units of projects the group develops.
"We are optimistic that the above strategies will improve results in the coming financial years," it said.
AHB recorded a revenue of RM10.20 million and a loss of RM9.09 million for the 12 months of the financial year 2022 (FY22) ended September 30, 2022, compared to RM7.95 million and a loss of RM5.53 million in FY21.
The increase in loss was mainly attributable to the increase in the cost of sales, administrative expenses, depreciation and other operating costs.
For the fourth quarter (Q4), AHB recorded a revenue of RM3.78 million compared to RM0.71 million recorded in the same quarter last year.
The higher revenue was due to the increase in revenue of RM3.03 million.
For Q4, AHB recorded a loss before tax of RM4.71 million compared to a loss before tax of RM2.63 million in Q4 last year.
On its existing business, AHB will continue to focus on research and development of office interior markets and products and outsourcing and contract manufacturing of office interior products.
"This business model and our flexible workforce strategy prove to be effective and resilient during these challenging pandemic times.
"AHB does not have the burden of fixed overheads in manufacturing and facilities when the office furniture industry globally is experiencing unprecedented disruptions in demand," the company noted.
AHB, in a Bursa Malaysia filing, said it would continue to strategise, adapt, and navigate the challenging business environment and take appropriate actions to minimise operating risks and optimise resources to ensure the business operations remain resilient.