KUALA LUMPUR: Artificial intelligence (AI) specialist G3 Global Bhd recorded a revenue of RM18.79 million in the fourth quarter (Q4) ended 31 December 2021 (FY21), an eight-fold growth year-on-year (YoY) from RM2.29 million posted in the same quarter last year.
G3 Global moved closer to its turnaround target thanks to the success of its new healthcare segment, which saw revenue climb by more than 700 per cent quarter over quarter (QoQ) due to better sales of Covid-19 antigen kits.
Regarding bottom-line performance, G3 Global registered a loss before tax of RM7.27 million in the fourth quarter of FY2021 compared to a loss before tax of RM6.97 million a year earlier.
The higher figure was attributable to G3 Global's ongoing kitchen-sinking exercise for its information, communications, and technology (ICT) business, including items linked to previous collaborations with Green Packet Bhd.
This involved impairment of RM2.9 million made on the amount owed by Green Packet for ICT products purchased from G3 Global as well as a write-off of inventories worth RM2.2 million relating to telematics and the Internet of Things.
As for the 12 months, G3 Global recorded a 57 per cent jump in revenue to RM23.6 million compared to RM15.03 million previously, mainly driven by the healthcare division.
Meanwhile, the company's loss before tax has been successfully reduced to RM9.22 million in FY21, down by 31 per cent YoY from RM13.39 million.
Notably, the ICT division's loss from operations in FY21 declined by 13 per cent YoY to RM11.69 million, following the cost-rationalisation exercise undertaken by G3 Global and its subsidiaries.
The healthcare division contributed a profit of RM2.48 million for FY21.
Managing director Dirk Quinten said the company's financial turnaround has picked up steam, especially after the diversification into the healthcare sector through the acquisition of a 51 per cent stake in Bestinet Healthcare Sdn Bhd (BHSB).
"The outlook for BHSB remains promising, with orders for two million test kits in hand.
"If the current momentum continues, the company is on track to return to profitability by the third quarter (Q3) of 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," Dirk said.
He said that with the expected recovery in the Malaysian economy this year, the company is optimistic that its ICT division will benefit from a greater flow of projects.
"We are already receiving increased queries from existing and prospective clients, and this should translate into improved performance for the ICT division," Dirk said.
Notwithstanding the impact of the current pandemic, G3 Global will continue to focus on expanding its involvement in the healthcare sector and pursue key ICT projects, increasing business development efforts to boost revenue and corporate exercise to raise funds.
Moving forward, G3 Global will be spearheaded by a new board of directors, especially with new major shareholder Datuk Seri Aminul Islam Abdul Nor on board.
In November 2021, Aminul emerged as a major shareholder of G3 Global with a 25 per cent stake and was subsequently made an executive director of the company.
He is the founder and chairman of Bestinet Sdn Bhd, which provides information technology solutions for managing foreign labour for all stakeholders.
On 4 January 2022, the former secretary-general of the Ministry of Education Datuk Sri Alias Ahmad was appointed as the independent non-executive director and chairman.
He succeeded Datuk Wan Khalik Wan Muhammad, who previously served as G3 Global's executive chairman.
It is important to note that Green Packet Bhd and Puan Chan Cheong are no longer related to G3 Global, as both parties have ceased to be substantial shareholders of the company.
Moving ahead, G3 Global is shifting its focus to AI and other information technology-based healthcare solutions.
Beyond the sales of Covid-19 test kits, the company's healthcare business will also explore the vast potential of AI in healthcare, especially in healthcare diagnosis.
