Hextar Industries (former SCH)

[winston]

About Hextar Industries Berhad (“HIB”)

HIB is listed on the ACE Market and is involved in the manufacturing and formulating bulk blend,
mixture and compound fertiliser of fertilisers; trading of various fertilisers while also providing crop management solution.

The Company’s head office is located in Bayuemas Klang, Selangor. It also owned and operates fertiliser manufacturing facilities in Port Klang, Bintulu, Lahad Datu and Pasir Gudang.

Aside fertiliser business, HIB also supplying a wide range of industrial products includes machinery, spare parts, conveyor belts, forklifts, industrial batteries, lighting etc; manufacturing of quarry crusher screens for the use in the quarry industry; and providing equipment rental services for the chillers, tents, power generators.

For more information, please visit our respective websites at www.hextarindustries.com

[winston]

vested

HEXTAR INDUSTRIES BERHAD BREAKS ANOTHER HISTORICAL RECORD WITH THE HIGHEST QUARTERLY NET PROFIT OF RM21.2 MILLION, DECLARES DIVIDEND OF 1 SEN

Kuala Lumpur, 24 August 2023: HEXTAR INDUSTRIES BERHAD (“HIB” or the “Company”) registered
a cumulative consolidated revenue of RM521 million and net profit of RM41.6 million for the 6
months financial period ended 30 June 2023 (“FPE2023”).

In 2022, the Company changed its financial year end from 31 August to 31 December. As such, there is no comparative figures for the corresponding quarter.

For the second quarter ended 30 June 2023 (“2QE2023”), HIB posted a quarterly consolidated
revenue of RM251 million and net profit of RM21.2 million, higher than the net profit reported in
the preceding quarter by 3.9 % (1QE2023: RM20.4 million).

This is the highest net profit recorded in the quarterly reports since HIB was listed on the ACE Market of Bursa Malaysia Securities Bhd (“ACE Market”).

The Company had proposed an interim single tier dividend of one (1) sen per ordinary share in
respect of financial year ending 31 December 2023.

This is the second dividend that the Company has declared in 2023 on the back of its strong financial result.

Commenting on the quarterly results, Mr Benny Ang, the Group Managing Director said that “the
average selling prices of fertilisers have softened in the first half of 2023, after reaching a peak in 2022.

As a result, HIB posted a lower revenue of RM251 million in 2QE2023 by 6.7% as compared to
1QE2023 of RM269 million.

Having said that, profit margins were not affected as raw material prices had also reduced accordingly.

On a whole, our gross profit margins in FPE2023 has improved marginally as compared to last year.”

Mr Benny further added that “the Company is currently in the midst of preparing for the transfer to the Main Market of Bursa Malaysia Securities Berhad. We hope to attract more institutional
investors to invest in our company. We target to submit the application for the transfer once we
have met the necessary requirements by fourth quarter of 2023.”

Mr Alex Sham, the Executive Director, added that “despite the softening in the price of fertilisers, the majority of food commodity prices including Crude Palm Oil (CPO) remain high as compared to pre-pandemic levels.

As such, many planters are not cutting back on fertiliser application this year to maintain their yields. The demand for fertilisers remains robust even during the Hari Raya Aidilfitri
and Gawai Dayak Festivals.

We foresee that demand for fertilisers in the coming months will remain strong particularly from planters who had applied less last year due to high fertiliser prices.

Demand will also be driven by the export market, in particular from countries such as Indonesia and Myanmar where we have been focusing our marketing efforts.”

Aside from the Fertiliser Division, Mr Alex Sham was also excited on the prospects of the Industrial Products Division commenting that “we believe that the domestic economy is gaining momentum which will benefit our heavy equipment, forklift, lighting and rental services business.

We are also actively seeking merger and acquisition opportunities which could potentially provide synergies with our businesses.”

[winston]

vested

Hextar Industries acquires Pacific Office for RM16.5mil

KUALA LUMPUR: Hextar Industries Bhd has proposed to acquire 100% equity interest in Pacific Office (M) Sdn Bhd, a distributor of office supplies for RM16.5mil cash.

Hextar, in a filing with Bursa Malaysia, said it entered into a conditional share sale agreement with the shareholders of Pacific Office for the proposed acquisition.

The acquisition is expected to be completed in the fourth quarter of 2023.

“Pacific Office has 33 years of experience as a leading player in the stationery and office supplies business. It has a very broad customer database nationwide that will bring added value and synergise with our Hextar existing businesses.

“Having a huge database of more than 3,500 active customers which is itself rich in business information for us to tap into and to leverage on to move further ahead in the market,” group managing director Benny Ang said.

Hextar is involved in the manufacturing and formulating bulk blend, mixture and compound fertiliser of fertilisers; trading of various fertilisers while also providing crop management solution.

Source: The Star

https://www.thestar.com.my/business/bus ... r-rm165mil

[winston]

vested

Hextar Industries to acquire industrial solutions unit from parent

KUALA LUMPUR: Hextar Industries Bhd has inked a deal with its major shareholder Hextar Holdings Sdn Bhd, to acquire 70% equity interest in industrial solutions provider Hextar Mitai Sdn Bhd for RM4.55mil cash.

In a statement, Hextar Industries said the related party transaction will give it immediate access to specialised engineering capabilities to complement its existing businesses while also leveraging the wider group's client base to achieve greater synergies.

The founder of Hextar Mitai and holder of the remaining 30% equity, Ke Tung Chen, will continue to serve as managing director of the company to ensure continuity in management, it said.

Apart from providing industrial solutions, Hextar Mitai is actively involved in environmental sustainability and waste management, and was awarded a project from United Nation Industrial Development Organisation (UNIDO) to eliminate Poly Chloribated Biphenlys (PCB) in Indonesia.

According to Hextar Industries executive director Alex Sham, Hextar Mitai partnered with Ecolsir s.r.l from Italy on this project, which destroys PCB as well as rejuvenates treated oil to be used as fresh transformer oil for electrotechnical applications (mineral insulating oils).

"We believe that the acquisition and the related environmental considerations are an essential social responsibility to achieve long-term business success," he added.

Source: The Star

https://www.thestar.com.my/business/bus ... rom-parent

[winston]

vested

4Q Results:-

Revenue: RM 166m
Loss: -RM 13m
NAV: RM 0.12

https://www.bursamalaysia.com/market_in ... id=3423374

[winston]

vested

HEXTAR INDUSTRIES BERHAD RECORDS REVENUE OF RM937 MILLION FOR THE FINANCIAL YEAR
ENDED 31 DECEMBER 2023 WITH NET PROFITS OF RM56.5 MILLION (BEFORE A ONE-OFF GOODWILL
IMPAIRMENT OF RM14.4 MILLION)

Net profits for the year were impacted by an impairment of goodwill of RM14.4 million, resulting
in net profits reducing from RM56.5 million to RM42.1 million.

https://disclosure.bursamalaysia.com/Fi ... TTACHMENTS