PETALING JAYA: Maxland Bhd is proposing to diversify into the automotive, utility infrastructures and services business.
In a filing with Bursa Malaysia, the logging, manufacturing and shipyard firm said the proposed diversifications are in line with the board's strategy to provide additional income to the group, as well as to reduce the reliance of its financial performance on its existing business segments.
“With the diversification into the automotive business and utility infrastructures and services as new business segments, the group is able to expand its revenue stream to improve the financial performance of the group, contribute to the future growth of the group and enhance shareholders' value in the long run.
Maxland said its manufacturing business has been the group's largest revenue contributor in recent financial years.
“The group had incurred losses for three consecutive financial years up to the 18-month financial period ended Dec 31, 2021.
“However, the group achieved a turnaround during the 12-month financial year ended Dec 31, 2022, recording a net profit of RM21.56mil, mainly attributable to the increase in sales of plywood to the Japanese market in particular, paired with an improved cost management as the group utilised existing modern equipment, machinery and skilled labours.”
“In an effort to improve its financial results, the group has undertaken initiatives to improve its efficiency by enhancing productivity and implementing cost rationalisation exercises in its existing segments to review and address recurring administrative and other operating expenses in the group's business.”
