KUALA LUMPUR: Dagang Nexchange Bhd's (DNeX) second quarter net profit ended June 30 2015 rose 11.4 per cent to RM3.9 million from RM3.5 million a year ago.
The second quarter revenue similarly improved 10.2 per cent to RM22.6 million from RM20.5 million previously.
DNeX’s sustained growth was attributed to a strong performance of its trade facilitation business, where the group is committed to provide end-to-end, comprehensive e-commerce services for business-to-government (B2G) to business-to-business (B2B) segments locally as well as regionally.
The group, through subsidiary company Dagang Net Technologies Sdn Bhd, was recently appointed by the Royal Malaysian Customs Department as the uCustoms Service Provider that will front the trade community by providing access to Trade Facilitation services.
In the quarter under review, DNeX’s diversification into oil, gas and energy has also borne early achievements by starting to register revenue in less than a year after the group announced its diversification plan.
“We are confident that we are on the right track in our diversification into oil, gas and energy as we strive to achieve more milestones in months to come thus setting our journey as a serious player in this sector,” said group managing director Zainal Abidin Jalil.
“During this current market downturn, oil and gas sector presents attractive opportunities to build scale as cost of entry is lower,” Zainal said in a statement today.
The completion of the group’s proposed acquisition of OGPC Group is expected in fourth quarter 2015, and is projected to contribute positively to its future earnings and enhance shareholders' value in the medium to long term.
The group will continue to leverage on its existing client-base and established presence in the trade facilitation (B2G) business.
At the same time, the group is also firming up its services and broadening its product range in B2B segment of its e-commerce services both domestically and regionally to complement the group’s position in delivering B2G services.