KUALA LUMPUR: Techna-X Bhd returned to profitability in the first quarter (Q1) ended March 31, 2022, recording a net profit of RM14.64 million from a net loss of RM23.92 million in the same quarter last year.

This included a one-off profit of approximately RM7.3 million as a result of the disposal of some scrap metal following the discontinued metallurgical coke business.

Techna-X's profitability from its main technology business streams recorded a profit of RM6.4 million.

Revenue for the quarter came in at RM21.24 million, up by 120.8 per cent year-on-year (YoY) against RM9.62 million in Q1 2021, boosted by a rise in revenue across its main business streams namely the technology-driven food and beverage as well as the digital  and technology businesses.

The company in a statement said that the performance for the quarter was  attributable to its relevant business entities' continued implementation and servicing of existing contracts as well as new project wins, coupled with the stemming of losses from the industrial business as a result of the discontinuation of the metallurgical coke operations as at December 31, 2021.

Executive director Datuk Jared Lim said the company is operating in an ever-changing digital environment that has never been more challenging.

"However, our positive results have reaffirmed our decision to abort the coke business and refocus the company's resources to grow our technology business streams moving forward.

"Our businesses acquired since 2019 have gained traction and yielded positive outcomes with several project wins in Malaysia and in other countries.

"Some of our recent key projects include a two-year technology development and support contract from SHT Engineering Sdn. Bhd, to design and deliver an analytics-enabled public safety and security command system; a five-year exclusive technology partnership agreement with Pesappas Limited, to develop the revenue management system for Kenya Wildlife Service and a five-year partnership with Borneo ECO Star, to digitise aquaculture farming in Malaysia," he said.

Techna-X has decided to reduce equity participation in Electric Revolution Expert d.o.o. (E-Rex), the joint venture company set up in Croatia together with experienced industry experts, from 51 per cent to 10 per cent in order to facilitate participation of other European strategic partners to accelerate product development and expansion of the subsidiary.

It noted work has begun on the electric vehicle prototype which is expected to be completed by mid of this year.

For the energy storage division, Techna-X seeks to unlock the value of this division and tap into the capital market via a US$500m reverse takeover (RTO) exercise of its subsidiary, HK Aerospace Beidou New Energy Technology Co Ltd (HKAB).

The company has proposed to list HKAB on the Singapore Exchange (SGX) by the first half of next year.

"There is a genuine need for energy storage across industries and our patented battery technologies have attracted significant interest from government, energy, transport and automotive sectors.

"There are a few major projects in development within our energy storage operations in Malaysia as well as in China and we will be making the appropriate announcements in due course," said Lim.