Grand Venture Technology JLB has released its earnings of $1.5 million for the 1QFY2023 ended March 31, a 58.3% drop y-o-y compared to the net profit of $3.6 million it posted in the corresponding period last year.
For the period, revenue also declined to $29.9 million, a 17.0% decrease compared to the revenue of $32.4 million in 1QFY2022.
Gross profit came in at $6.8 million for the period just ended compared to $9.2 million in the preceding year, representing a dip in gross profit margins of 3.2% points to 25.2%.
Grand Venture says the decrease in gross profit for the period came as it is “investing ahead of the curve” in preparation for supporting its customers’ requirements.
The company is working closely with its front-end semiconductor customers to develop strategic partnerships, while making good progress in obtaining first article qualifications for parts from them at the same time.
It is also in the process of onboarding a new back-end semiconductor customer and growing wallet share with its life sciences customers.
See also: Trump wins Republican nomination, setting up rematch with Biden
Meanwhile, Grand Venture is also working actively alongside its medical and aerospace customers to diversify its income stream for long-term resilience. It will continue to pursue talent acquisition and retention, as well as viable inorganic growth opportunities, to reinforce its strategic value-add and long-term competitiveness, says the company in a press statement.
Executive deputy chairman Ricky Lee adds: “We are pleased to turn in a positive performance in 1QFY2023 in spite of geopolitical headwinds, which have clouded the semiconductor industry in particular in the first quarter of 2023. Nevertheless, industry sentiments are expected to improve from the latter half of the year as fundamental demand for semiconductors remains intact.
“Having invested in capacity and competencies ahead of the curve, we will be well-prepared to ride the momentum of the impending upturn, as one of only a few qualified suppliers with a vertical stack of ultra-precision engineering, mechatronics assembly and complex sheet metal capabilities in this region,” says Lee.
As at 12.20pm, shares in Grand Venture were trading 1 cent or 2.04% up at 50 cents.
