In a filing with Bursa Malaysia today, K-One said that the group has progressively obtained appointments from foreign manufacturers as authorised representative to distribute healthcare products in Malaysia.

“The group intends to scale up its healthcare products business and expects this venture to contribute 25% or more of the net profits of the group and/or result in a diversion of more than 25% of the net assets of the group,” it said.

K-One said that it has primarily relied on its core automotive, industrial and consumer electronic industries (EMS) business, which consistently contributed approximately 55% of total revenue for the three years up to the financial year 2023 (FY2023), while the remaining 45% was derived from the Cloud Business.

“The group’s loss-making position was mainly attributed to the EMS business being impacted by weak consumer demand following the Covid-19 pandemic, and by the higher cost of logistics and electronic chips due to supply chain disruptions caused by the Russia-Ukraine conflict.

“Notwithstanding the above, the group turned around its business and recorded a profit in FY2023, mainly contributed by the Cloud Business,” the group said.

At the close of trading, K-One’s share price was down by 0.5 sen or 3.33% at 14.5 sen, giving it a market capitalisation of RM120.6 million.