KBES Berhad (KBES), an investment holding company which operates express bus services and fabrication of buses, announced that the company effectively managed to improve its overall financial performance in 2016.
For the financial year ended 31 December 2016, the Group posted relatively higher revenue of RM39.2 million compared to RM35 million in the previous financial year.
Apart from the encouraging revenue of the express bus service segment, the higher revenue was also contributed by sales of buses.
Loss for the financial year under review was lower at RM2.9 million as compared to RM11.7 million in the previous financial year, mainly due to higher gross margin of RM4.2 million posted in 2016 against gross loss of RM1.4 million in the previous year.
According to the Managing Director of KBES, Datuk Che Azizuddin Che Ismail, the Group managed to sustain its core business through continuous improvement on the current operation.
“We strive to achieve better position to register favourable financial performance in 2017 by underlining strategic growth plans including revamping the business model, renewing the express bus fleet and developing the assembly operations in Malaysia and South East Asia”, he added.
Through its express bus subsidiary, Konsortium Bas Ekspres Semenanjung (M) Sdn Bhd, the Group shall focus in improving its service level by increasing its fleet, routes and sales channels.
“The Group is also preparing for the highly anticipated deregulation of the express bus industry with the policies are currently under review by the authorities. Currently, the express bus services landscape in the country is represented with nearly 200 operators of various fleet sizes competing in the industry,” added Che Azizuddin.
In August 2016, Santero Sdn Bhd, a wholly owned subsidiary of the Group, has been appointed as the sole distributor of Foton buses by Beiqi Foton Motor Co. Ltd. Beiqi Foton is the largest commercial vehicle manufacturer in China and in the world in terms of volume, having exported its products including electric buses to various countries.
Another subsidiary and the assembly arm of the Group, Super Coach Assembly Plant Sdn. Bhd., has been recently appointed by Beiqi Foton to assemble Foton buses capitalizing its assembly facility in Kamunting, Perak.
“We are extremely excited with this collaboration as we will undertake the import, assembly, distribution and sales of Foton brand buses for the domestic market with the opportunity to expand within the ASEAN region,” he added.
With the appointment by Beiqi Foton, the Group expects the business of new bus sales to be realised in 2017. The demand of new buses is expected to grow in tandem with the development of the public transport sector.
Moving forward, the Group will also be looking at expanding its business further through Mergers and Acquisitions initiatives, M&A. In the meantime, the Group will undergo a major rebranding exercise to rejuvenate its image within the current financial year.
The Group aims to be a leading express bus company which operates in Malaysia and with presence in Singapore and Thailand. For bus sales and distribution, the Group is exploring the opportunity to penetrate into new markets in South East Asia including Indonesia for the Group’s market expansion.
“We will be involved in importing, distributing, retailing and providing after-sales service for Beiqi Foton bus in Malaysia and in the region with the newly launched models that are projected to contribute positively to the Group’s revenue. We will continue to capture new market segments by leveraging on the support given by the Beiqi Foton in China.”
Che Azizuddin also added that the Group will expand its sales and service network to cover all major cities in Malaysia and in South East Asia, in order to provide better customer service.
“Most importantly, we are accelerating beyond the border to serve our clients and customers with new bus ride experience in the journey.”