KUALA LUMPUR (May 28): Hextar Technologies Solutions Bhd (HexTech) (KL: HEXTECH) continued to be in the red for a fourth consecutive quarter, as the company posted a net loss of RM8.49 million for its fourth financial quarter ended March 31, 2023 (4QFY2024).

This was mainly due to impairment loss on trade receivables and ageing trucks, as well as marketing and operating expenses incurred for its fintech app MoneyX launched in October 2023.

The 4QFY2024 net loss is almost 10 times its net loss of RM862,000 incurred a year ago. Quarterly revenue declined 13% to RM48.85 million from RM56.23 million in 4QFY2023, attributed to lower revenue contribution from its trading segment, Hextech said in a filing with Bursa Malaysia.

To recap, HexTech incurred a net loss of RM4.52 million in the immediate preceding quarter, a net loss of RM1.20 million in 2QFY2024, and a net loss of RM750,000 in 1QFY2024.

Consequently, the group recorded an annual net loss of RM14.97 million for the financial year ended March 31, 2024 (FY2024), compared with a net profit of RM4.12 million in the previous financial year, despite revenue rising 16.6% to RM189.35 million from RM162.39 million previously.

HexTech said the net loss for the year was due to compressed profit margins, loss of rental income in earlier quarters, impairment loss on trade receivables and ageing trucks, marketing and operating expenses incurred for MoneyX, as well as the absence of a one-off disposal gain on quoted investment of RM3.7 million in FY2023.

The company did not declare any dividend for the year.

Looking ahead, HexTech is still betting on its "financial super app" MoneyX, which it said has been gaining encouraging traction with a steady increase in the number of registered users.

HexTech added that it has entered into partnerships with close to 50 leading partners from various key industries to participate in the MoneyX business ecosystem by providing a variety of products and services to users.

"The group will continue to seek out new business opportunities as well as rationalise the existing businesses in line with our sustainable business goals," the group said.

HexTech’s share price has been on a decline since mid-August last year. It has fallen from the RM1.77-level to RM1.13 on Tuesday, down roughly 36%. Its market capitalisation stood at RM2.33 billion, based on the closing price of RM1.13.