Frontken Berhad Annual Report 2020

Annual Report 2020 14 FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) FINANCIAL REVIEW RESULTS OF OPERATIONS in RM’000 REVENUE EBITDA 2019 339,911 8% 2019 114,835 16% 2020 368,319 2020 133,343 NET PROFIT EBITDA MARGIN as a % of revenue 2019 69,170 19% 2019 33.8 2% 2020 81,968 2020 36.2 REVENUE During the financial year ended 31 December 2020 (“FYE2020”), the Group reported a higher revenue of RM368.3 million against RM339.9 million for the previous financial year, represented a growth of 8% mainly due to positive growth of the Group’s semiconductor business. REVENUE (by customer location) 2020 RM’000 % 2019 RM’000 % % change in revenue Taiwan 235,121 64 186,018 55 26 Malaysia 51,417 14 65,873 19 -22 Singapore 46,586 13 53,866 16 -14 Philippines 15,397 4 15,102 4 2 Others 19,798 5 19,052 6 4 Total 368,319 100 339,911 100 8 An analysis of revenue by customer location showed growth in our business particularly in Taiwan, the Philippines and China. The revenue in Taiwan increased from RM186.0 million to RM235.1 million in FYE2020 or a 26% increase compared to the preceding financial year. Our subsidiary in Taiwan benefited from the pick-up in volume in the semiconductor space due to higher demand and strong orders from one of its customers’ advanced nodes chips. The decline in revenue from Malaysia and Singapore was mainly due to the indirect impact from the pandemic that hit our oil and gas division. EARNINGS Earnings before interest, tax, depreciation and amortisation (“EBITDA”) of the Group for FYE2020 increased to RM133.3 million from RM114.8 million or a 16% increase compared to the preceding financial year attributable to higher revenue and better profit margin resulting from the continual efforts to improve efficiency across the Group. The profit after tax increased by 19% to RM88.3 million from RM74.2 million in the previous financial year mainly contributed by the strong performance by our subsidiary in Taiwan.