Catalist-listed Jubilee Industries Holdings has posted a net loss after tax of $4.8 million for the 2HFY2022 ended March 31, as compared to a net loss after tax of $1.9 million on 2HFY2021.

 

This is mainly due to the fair value loss of the company&rsquo s investment in shares of Malaysian electronic manufacturing services company EG Industries Bhd, the company said in a results statement.

 

In FY2022, Jubilee incurred a loss of $2.2 million against a loss of $1.6 million in FY2021, arising from a fair valuation gain of $2.7 million netted off by losses on partial disposal and deemed disposal of its investments in shares of EG Industries amounting to $4.3 million.

 

This brings its FY2022 net loss to $3.8 million.

 

Loss per share stood at 1.44 cents and 1.26 cents for 2HFY2022 and FY2022 respectively, compared to loss per share of 0.80 cents and 0.72 cents for 2HFY2021 and FY2021 respectively.

Jubilee recorded revenue of $115 million for 2HFY2022, an 32.4% growth compared to the $87.4 million recorded in 2HFY2021.

 

For FY2022, the company recorded revenue of $231 million, an 59.3% or $86 million increase from $145 million recorded in the same period last year.

 

Revenue for its Mechanical Business Unit (MBU) increased by $5.3 million to $30.4 million for FY2022. This was due to higher sales of consumer and construction products, as well as tool fabrication across the company&rsquo s manufacturing operations in Malaysia and Indonesia.

 

Amidst higher global demand for semiconductors, particularly in Jubilee&rsquo s key market of China, revenue for its Electronics Business Unit (EBU) increased to $200.7 million for FY2022.

 

&ldquo The ongoing global chip shortage and supply chain disruptions have led to a rush to stockpile high demand chips amidst limited factory capacity and longer lead times. These circumstances continue to benefit the EBU given its extensive product portfolio and strong presence across Asia,&rdquo the company said.

 

The MBU&rsquo s gross profit was flat at $2.2 million for FY2022 while the EBU&rsquo s gross profit increased by $1.1 million to $6.4 million.

 

Overall, Jubilee recorded a 15.9% increase in gross profit from $7.5 million for FY2021 to $8.7 million in FY2022.

 

Jubilee&rsquo s executive chairman and CEO Datuk Terence Tea said the company expects to face continued headwinds including rising logistics and raw material costs, as well as continued lockdowns in its key market of China. &ldquo The company&rsquo s MBU has embarked on several initiatives to better manage cost and operational efficiency to mitigate higher raw material cost.&rdquo

JUBILEE Industries Holdings has entered a memorandum of understanding (MOU) to sell its fully-owned electronics unit, WE Components, for an indicative consideration of US$11 million, the Catalist-listed company said in a Saturday (Nov 27) bourse filing.

 

The purchaser is Hangzhou Yu Ye Technology, a distributor of semiconductor products and solutions. The China-based company is set to acquire WE for US$4 million, as well as its inventory, which was valued at US$7 million as of end-September.

 

The deal will expand Hangzhou Yu Ye' s overseas chip agency business through WE' s product portfolio. " The proposed disposal reflects the deep value of Jubilee' s electronics business unit that we have built over the years," said the company' s executive chairman and chief, Terence Tea.

 

Jubilee is 53.07 per cent-owned by Catalist-listed Accrelist, where Tea is also executive chairman and managing director.

 

Post-transaction, Jubilee' s growth will be driven by its mechanical business unit (MBU). There are new revenue opportunities for the MBU, as customers shift their source of purchase to Asean amid US-China tensions, said Jubilee.

 

Since acquiring Honfoong Plastic Industries in 2018, the MBU' s revenue has more than tripled, from S$8.1 million for FY2018 ended March to S$25.1 million for FY2021.

 

" We are confident that the long-term prospects of the group' s MBU and other investments are positive, and will be able to build sustainable value for shareholders post-transaction," said Tea.

CATALIST-LISTED Jubilee Industries Holdings plans to use proceeds from a proposed S$3 million fund-raising exercise for working capital, the company reiterated on Wednesday, after questions from the bourse operator.

 

But the electronics solutions provider could not state exactly how the net proceeds would be allocated across its mechanical business unit and electronics business unit operations, citing both the recency of the revenue recovery in these segments, as well as their recent diversification into new markets.

 

" It is therefore the case that the group would still need to monitor the trends and to thereafter assess the precise allocations that it should or has to make for each working capital needs for each segment," Jubilee said.

 

Still, it cited production ramp-ups securing more inventory or investments in new equipment or higher-margin products as some potential uses.

 

Jubilee expects that it would need a strong capital base to accomplish such activities " in order to remain competitive" , it said in a bourse filing.

 

The Singapore Exchange (SGX) had asked Jubilee to elaborate on how it would use the proceeds, after its announcement on July 24 that it had agreed to place out new shares and warrants to seven individuals.

 

While the SGX noted that the group had cash balances of S$7.7 million as at March 31, Jubilee said almost all of that has been earmarked for specific uses, such as payments for materials and machines, or to secure banking facilities. Just S$300,000 has been set aside for general working capital, it added.

 

Separately, the unrelated third party who introduced the seven placees had earlier been introduced to the company " through a common acquaintance" , according to Jubilee' s statement.

 

That' s as the SGX asked how the company got to know introducer Lye Won Fui, who will be paid 3 per cent for each placement share - that is, 900,000 shares at S$45,000.

 

Jubilee called the introducer fee " in line with prevailing market rates and practices" for such a transaction, and added that it was on commercial terms reached at arm' s length.

 

The proposed placement will be done at an issue price of five Singapore cents a share, or a discount of about 5.7 per cent to the volume-weighted average price on July 19.

JUBILEE Industries Holdings has entered conditional placement letters with seven individuals to raise up to S$3 million via the issue of shares and warrants, the Catalist-listed company announced on Saturday.

 

The seven placees will subscribe to 30 million shares of Jubilee at S$0.05 each, a 5.66 per cent discount to the counter' s volume weighted average price on July 19. In addition, Jubilee will issue 30 million warrants to the placees, each at an exercise price of S$0.05.

 

The placees are: Levin Lee Keng Weng Koh Leena Marie Ng Eng Tiong Ng Chuen Guan Chew Leok Chuan Ong Eric and Lee Bee Seng. Mr Ng Chuen Guan will be subscribing to 14 million placement shares, the largest portion among the placees.

 

Jubilee intends to use all the net proceeds for general working capital purposes. Its chief executive Terence Tea said that the placement will " strengthen the group' s financial position and enable Jubilee to capitalise on growth opportunities as demand picks up in line with the global recovery from Covid-19" .