HeiTech chairman Mohd Hilmey Mohd Taib said this was against the RM362.6 million recorded for the same period in 2016.
Speaking at the group’s annual general meeting yesterday, he said the IT segment remained the biggest contributor to HeiTech’s revenue at RM322 million or 75% in 2017.
This was followed by revenue from the engineering segment, which increased by RM60.1 million or 290.6% from RM20.7 million in 2016 to RM80.7 million in 2017.
In tandem with the increase in revenue, HeiTech’s total operating expenses increased from RM359.8 million in 2016 to RM449.8 million in 2017.
Personnel expenses accounted for RM100.6 million or 22.4% of the group’s total operating expenses. This was compared to RM91.2 million or 25.3% in 2016.
HeiTech also recorded higher impairment losses at RM9.2 million in 2017 against RM4.7 million in 2016. This followed continuous assessment carried out on the recoverability of investment-related accounts.
In a statement, HeiTech said the group had fared reasonably well in net results since the previous two financial years.
“Unfortunately, the good performance stalled in 2017 when the group recorded a loss after tax of RM15.3 million.
“Despite higher revenue, the newer contracts secured during the year with lower margins and conclusion of a major contract with significant margin from the IT segment have significantly reduced the overall performance of the group,” it said.
Hilmey said 2017 had been “another challenging year” for HeiTech and its group of companies. However, he added that HeiTech remained determined to face the challenges to deliver quality service to customers while working to expand its revenue base.
The group managed to secure contracts worth RM222.1 million in 2017, of which about RM127.7 million related to information technology. The remaining RM94.4 million was related to engineering works for the energy sector.
Among the contracts secured from the public sector were the maintenance of the MyIMMS system for the Immigration Department worth RM42.4 million, and another contract with the health ministry worth RM10.1 million for the development of the clinical documentation module in its Patient Management System.
In the private sector, the group managed to secure a four-year contract for security infrastructure services of RM33.3 million for the Companies Commission of Malaysia, and a maintenance of managed wide area network infrastructure services contract of RM41.9 million from Malaysia’s largest unit trust house.