Tex Cycle Reports Strong First Quarter with Significant Growth in Profits

Tex Cycle Aims for Enhanced Sustainability and Market Expansion

KUALA LUMPUR, 28 MAY 2024 – Tex Cycle Technology (M) Berhad (“Tex Cycle” or the “Group”), an established waste management and recycling solutions provider, is pleased to announce its financial result for the first quarter ended 31 March 2024 (“Q1 FY2024”). The Group reported a profit before taxation (“PBT”) of RM 7.4 million, a substantial increase from RM 2.7 million in the corresponding quarter of the preceding year (“Q1 FY2023”). This growth of 178% is attributed to enhanced operational efficiencies and strategic asset disposals, demonstrating the Group’s strong financial health and commitment to sustainable practices.

In Q1 FY2024, Tex Cycle’s revenue saw a slight decrease to RM8.0 million from RM9.1 million in Q1 FY2023. The drop of the Group’s revenue is mainly due to the decrease in sales demand from recovery and recycling division and trading division of RM1.1 million and RM0.05 million respectively.

On the other hand, the renewable energy division has continued to generate revenue for the Group from the solar Feed-in-Tariff ("FiT") plant and Corporate Renewable Energy Power Purchase Agreement (“CREPPA”) projects. The revenue of the renewable energy division has increased by RM0.3 million as compared to Q1 FY2023 due to the commencement of new solar CREPPA projects, which bring in extra revenue generation to the Group in Q1 FY2024.

Mr. Gary Dass A/L Anthony Francis, Group Chief Executive Officer of Tex Cycle said, "Our positive performance this quarter reflects our dedication to environmental sustainability and operational excellence. The strategic adjustments and innovations we have implemented are not only enhancing our financial performance but are also solidifying our leadership in the waste management sector. Particularly, the launch of Sabah’s first integrated scheduled waste management facility marks a significant expansion of our operations into new regions, further aligning with our commitment to sustainable development and local community engagement."

To recap, Tex Cycle has recently launched Sabah’s first integrated scheduled waste management facility in partnership with Evolusi Bersatu. This facility is set to complement existing waste management services in the region by focusing on local treatment processes that reduce costs and emissions, further aligning with sustainability objectives.

Tex Cycle is well-positioned to support the Malaysian Government's increased emphasis on compliance in waste management and the promotion of renewable energy. This alignment with national sustainability goals is anticipated to spur continued growth and operational excellence in upcoming quarters.