KUALA LUMPUR (Sept 24): Kronologi Asia Bhd (KL:KRONO) saw its net profit drop nearly 35% in the just-ended quarter amid sharp decline in revenue from Singapore and Philippines.

Net profit for the second quarter ended July 31, 2025 (2QFY2026) totalled RM1.05 million, or 0.14 sen per share, its bourse filing showed on Wednesday. Still, profit from operations nearly doubled due to lower manpower expenses and foreign exchange gain.

Quarterly revenue, however, fell some 27% year-on-year to RM60.89 million, dragged by all major markets even as it more than doubled its billings from China.

“We believe the company has a solid foundation of a Pan Asia market with a tangible business opportunity to improve sales and execution to take the company to the next level,” said chief executive officer Edmond Tay in a statement.

Kronologi expects to announce “partnerships” in due course with “manufacturers and technology companies offering superior supply chain manufacturing capabilities and advanced technology platforms", he said.

For the first half of FY2026, its net profit was RM2.57 million, a 16% decline when compared to the same six months a year earlier, as revenue shrank 15% to RM120.14 million.

The lower profitability during the period was also due to the reversal of deferred tax.

In terms of segment, the enterprise data management (EDM) infrastructure technology segment contributed 71.3% to total revenue, while EDM as-a-service accounted for the rest of the balance.

Looking ahead, Kronologi said the company remains focused on high-priority growth initiatives, particularly around artificial intelligence data platforms and high-performance data workflow.

"We remain steadfast in improving financial performance from its ongoing business transformation and operational efficiency initiatives," Tay added.

No dividends were declared for the quarter under review.

Kronologi's share price rose by half a sen or 2.33% to 22 sen, giving the group a market capitalisation of RM196 million ahead of the results announcement during noon trading break.