Malaysia’s Dagang NexChange Q2 results up on Makkah Road haj pre-clearance tech system
Malaysian tech and energy group Dagang NexChange posted a 9.2 per cent rise in profit after zakat and tax for the three months to end-June versus the same period last year.
DNex’s net profit reached 12.63 million ringgit ($3 million) for Q2 versus 11.56 million ringgit for the same quarter in 2018, it reported in a filing with Bursa Malaysia on Thursday.
Its revenue surged 41.1 per cent to 72.2 million ringgit but was met with a 76.1 per cent increase in cost of sales to 42.24 million ringgit.
The Group attributed the revenue growth mainly to its contract for the Integrated Government Financial and Management Accounting System (iGFMAS) that earned it 14.4 million ringgit and the Road to Makkah project that brought in 4.7 million ringgit.
The haj pre-clearance system initiated by Saudi authorities started in 2017 with a test case of pilgrims from Malaysia, Indonesia and India. It was fully launched in 2018.
The system allows haj pilgrims to clear immigration procedures in their own countries and bypassing them upon arrival in Saudi Arabia. The procedures include checks of passports, visas, health requirements, and codifying and sorting luggage.
81.8 per cent of DNex’s Q2 revenue was generated from its tech services, and energy earned the remaining 13.1 million ringgit. The company’s tech services include trade facilitation, e-commerce, system integration and consultancy.
($1 = 4.19 Malaysian ringgit)
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