Yen Global sees 30%-40% revenue from ICT

GEORGE TOWN: Yen Global Bhd expects its information and communications technology (ICT) segment to generate between 30% and 40% of its revenue for the financial year ending July 31, 2017, compared to about 20% in 2016.

Group executive director Lim Boon Hong told StarBiz after an AGM that the group had allocated about RM10mil to further expand the ICT business division for 2017.

“This is an initial amount that would cover setting up long range low power wireless platform (LoRa) infrastructure in some 30 locations in the Klang Valley in 2017 to support LoRa customers.

“We expect to roll out the infrastructure in March,” Lim said.

Yen Global is one of the two solutions and services provider for LoRa in Malaysia, one of the leading technologies used for building Internet of things (IOT) networks worldwide.

Lim said the LoRa infrastructure enables IOT devices to transmit data and communicate with one another at a very low cost.

“LoRa is specifically designed for low power consumption that would prolong the battery lifetime of an IOT device up to 20 years,” he said.

Lim said the company was currently negotiating with more than 10 well-known automobile brands in the country and in Indonesia to provide smart connectivity for connected cars, so that their performance can be diagnosed on realtime.

“Some of the automobile manufacturers in the country are expected to make announcements soon on their collaboration with us,” Lim said.

The group plans to raise about RM55mil via an ongoing rights issue exercise to support the expansion of the group’s apparel and ICT business.

On its apparel business, the group has implemented several measures to lower its operating costs, including reducing headcount to support current levels of operation and its procurement process.

“These measures are expected to improve the efficiency of the group to obtain a competitive edge in the market,” he said.

Lim added that additional funds would be allocated for advertising and promotion activities to increase market awareness of its brands.

“More outlets will be opened at strategic locations to increase our revenue base,” he said.