Kronologi posts lower Q1 profit on China operational costs, tax rate

PETALING JAYA: Kronologi Asia Bhd’s net profit for the first quarter ended April 30, 2022 fell 44.92% to RM2.21 million from RM4.02 million a year ago because operational costs had increased due to consolidation of Quantum China’s operations, a higher marginal tax rate during the quarter under review.

“On-going stringent lockdowns experienced in the group’s key markets in China during the quarter resulted in commercial and production delays, which coupled with macroeconomic and geopolitical uncertainties, also negatively impacted the group’s country markets in Asean,” the group said in a statement.

Kronologi, a provider of hybrid and cloud enterprise data management technology and solutions, recorded revenue of RM57.33 million, a slight decrease from RM58.82 million in the preceding year corresponding quarter. Majority of the group’s revenue was recognised from Singapore, amounting to RM24.424 million (42.60% of total revenue), followed by Philippines and China which recorded RM13.434 million and RM10.734 million (23.43% and 18.72% of total revenue) respectively.

By product category, the Enterprise Data Management (EDM) Infrastructure Technology segment continued to dominate the group’s revenue, amounting to RM43.623 million or 76.09% of total revenue, with EDM As-A-Service making up the balance.

“The business challenges have increased as we recover from the Covid-19 pandemic. Lengthening supply chain disruptions which together with macroeconomic and geopolitical issues, have led to endemic inflation and lower business confidence. This has resulted in a slowdown of technology investments by some of our clients. Despite project deferrals, our group revenue during the quarter has been largely maintained. Our healthy balance sheet and cash reserves provide us with the ability to capture opportunities as they arise,” Kronologi CEO Edmond Tay said.

Commensurate with the current business environment and how it develops, Tay said it continues to strive towards achieving reasonable growth for the rest of this financial year.