KUALA LUMPUR (March 15): Artroniq Bhd has accepted a letter of award from Cambodian-based Panda Commercial Bank PLC for a research and development (R&D) blockchain based financial services contract valued at US$10 million (RM44.8 million). The contract is for a period of two years, starting from March 15 this year to March 31, 2025

The award pertains to the development of basic blockchains, functional API, web and mobile related solutions applicable for Panda Bank, according to an Artroniq bourse filing.

“The contract will not have any effect on the issued share capital and the substantial shareholders’ shareholdings in Artroniq as the contract does not involve any issuance of new shares of Artroniq,” said the group.

The contract is also not expected to have any material effect on its net assets and gearing for the financial year ending Dec 31, 2023.

“Nevertheless, the contract is expected to contribute positively towards the future earnings of the Artroniq group for the duration of the contract.”

The group made a net profit of RM1.04 million in its fourth quarter ended Dec 31, 2022 from a net loss of RM293, 000 in the same quarter a year earlier (4QFY2021).

Quarterly revenue, however, fell by 75.3% to RM19.45 million from RM78.71 million due to lower contribution from its Information and Computer Technology (ICT) segment.

For 2022, its net profit decreased 76.56% to RM1.13 million from RM4.82 million in 2021, on the back of lower revenue by 46.47% to RM143.22 from RM267.57 million.

Artroniq’s share price closed six sen or 8.96% higher to 73 sen on Wednesday (March 15), giving it a market capitalisation of RM239.66 million.