Hextar Global : OTHERS HEXTAR GLOBAL BERHAD REPORTS CONTINUED EARNINGS GROWTH IN THIRD QUARTER OF THE FINANCIAL YEAR 2020, DECLARES THIRD INTERIM DIVIDEND

FOR IMMEDIATE RELEASE

HEXTAR GLOBAL BERHAD REPORTS CONTINUED EARNINGS GROWTH IN THIRD QUARTER OF THE FINANCIAL YEAR 2020, DECLARES THIRD INTERIM DIVIDEND.

Kuala Lumpur, November 23, 2020 - Hextar Global Berhad ("Hextar" or "The Group") today reported a 24.5% growth in revenue to RM316.85 million for the nine months period ended 30 September 2020. The revenue growth was driven by efficient local market penetration and continual growth in overseas market.

The gross profit margin improved to 22.2% in comparison to 18.8% for the corresponding period of preceding year due to additional operational efficiencies and economies of scale. The Group expects the percentage of fixed costs over revenue will continue to decrease with the Company's continuous growth, which would further increase the gross margin in the future.

Nevertheless, the Group's profit after taxation for the same period reported a significant jump to RM33.03 million as compared to a loss of RM5.35 million recorded in the preceding corresponding period. This was achieved against the backdrop of the current Coronavirus Disease ("COVID-19") pandemic. However, had the one-off goodwill impairment of RM23.99 million be excluded from last year's results, the Group would still have achieved an astonishing of 77.2% growth in net profits.

On quarterly performance, the Group posted a net profit of RM12.47 million for the third quarter of financial year ended 30 September 2020, representing a surge of 42.7% from RM8.74 million recorded in the preceding corresponding quarter.

In light of the improved performance, the Board of Directors had approved a third interim dividend of 1.0 sen per share which amounted to approximately RM8.21 million, payable on 28 December 2020 as a gesture to thank its existing shareholders for their continued confidence and support in the Group. To date, the Group had declared a total dividend of 3.2 sen per ordinary share, which represents 79.1% payout ratio of current year's earnings.

"Thanks to the strong performance in Agricultural Segment and its higher earnings contribution. Our performance for this quarter is an extension of the solid results we have been delivering throughout the year. We are seeing strength in the market and I expect our businesses to continue on the positive growth track we had established this year," Executive Director, Dato' Eddie Ong Choo Meng commented.

The Proposed Acquisition of 55% equity interest in Biogas Engineering (BEE) Sdn. Bhd. together with its subsidiary, Biogas Environmental Engineering Sdn. Bhd. has been completed recently. The transaction is expected to have a positive impact on the Group's revenue and earnings in the near future.

"Crude palm oil climbed to an eight-year high recently driven by recovered strong demand from India and China and we are on track to benefit from that price. Taking into account of all aforesaid, we are very positive on our outlook underpinned by our existing area of businesses and the expansion plans we have in place to grow our recurring income base. We are open to explore consolidations or joint ventures that provide operational efficiencies while being financially sound," Dato' Eddie Ong further added.

About Hextar Global Berhad

Established in 1990, Hextar Global Berhad ("Hextar" or "the Company") is the largest agrochemical company in Malaysia and it is listed on the Main Market of the stock exchange operated by Bursa Malaysia Securities Berhad. Hextar core competencies is in the agrochemical industry which include manufacturing, research & development, and commercialization & marketing of over 500 product registrations. The Company is also diversified into the health care consumer products, specialty chemicals and Internet of Things.

The Company's headquarters is based in Klang, Malaysia. It also owns and operates three manufacturing plants located in Port Klang (Selangor), Bandar Tenggara (Johor) and Tampoi (Johor).

For more information, please visit our website at www.hextarglobal.com