Grand Venture Technology has reported revenue of $32.9 million for 3QFY2022 ended Sept, up 3.2% y-o-y. However, earnings was down by 33.4% y-o-y to $3.45 million, as margins contracted.
For 9MFY2022, earnings was down 22.7% y-o-y to $10.6 million from a range of one-off costs.
They include $0.8 million in fair value adjustment in relation to the inventories and order backlog of newly acquired subsidiaries as well as $0.2 million in fees incurred from the acquisitions.
The company expects the combination of geopolitical and economic factors, including ongoing conflict between Russia and Ukraine, US-China trade tension, and rising interest rates, to continue to cloud the global economic outlook in the ensuing months.
“In light of this, near-term demand in the back-end semiconductor segment is expected to remain volatile,” the company says.
As part of its strategy to ensure the sustainability of its business with semiconductor customers, Grand Venture plans to expand its value chain participation by offering higher-value front-end semiconductor services.
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It says it is making good progress on its engagement with prospective customers in this market.
Amid the uncertain economic conditions, the company says it is proactively mitigating the impact of inflationary and interest rate pressures on its operating and financing costs.
Separately, the company announced that Kong Sang Wah, the managing director of its business in Malaysia, has resigned to "devote more time to his family".
Grand Venture shares closed Nov 8 at 51 cents, unchanged for the day.
