Express delivery company GDEX Bhd is venturing into the IT sector to counter financial losses, with plans to diversify its revenue streams through investments in IT services and solutions. Despite experiencing losses in its express delivery business, GDEX remains optimistic about the growth potential of its IT segment.
17 April 2024 – Express delivery firm GDEX Bhd has announced its strategic move into the information technology (IT) sector as part of a plan to diversify its revenue streams after experiencing losses for the past two financial years. The company’s acquisition of stakes in three IT companies in 2022 marks the beginning of its transformation journey, aimed at revitalizing its financial performance, according to a recent filing with the bourse.
GDEX’s foray into the IT domain involves investments in Web Bytes Sdn Bhd (38% stake), Sweetmag Solutions Sdn Bhd (51%), and Anon Security Sdn Bhd (60%). These acquisitions serve as the cornerstone of its plan to venture into IT services and solutions, including e-commerce and website development, business software solutions, and cybersecurity consulting.
While the IT segment contributed RM33.4 million in revenue for FY2023, accounting for 8.4% of the group’s total revenue, it incurred a net loss of RM1 million due to increased staff costs. Despite this, GDEX remains optimistic about the segment’s long-term growth potential and expects it to contribute significantly to the group’s net profit in the future.
Despite facing challenges in its core express delivery business, including stiff competition and operational obstacles, GDEX remains committed to its diversification strategy, with plans to explore additional ventures and collaborations in the IT sector to enhance its prospects in the evolving market landscape. – ref: The Edge
