This year, the Hong Kong-listed company expects to expand its global footprint by securing tenders to supply electric buses across Singapore, Dubai, Australia and Hong Kong.
“We are currently working on a new tender submission for Australia, apart from potential tenders for Malaysia, Singapore, and the United Arab Emirates (UAE). We also see great potential in the US market,” Gemilang chairman and CEO Pang Chong Yong told The Malaysian Reserve (TMR) in an interview.
Currently, Gemilang’s core markets consist of Singapore and Malaysia, which accounts for 16% and 13% respectively of its revenue. Its developed markets comprise Uzbekistan with a 25% revenue contribution, Australia at 14%, Hong Kong (12%), the US (10%) and others (7%).
As more countries are transitioning to electric vehicles (EV), Gemilang — one of the pioneering manufacturers of aluminium and electric buses using Swissbased technology in Asia Pacific — believes it is well-positioned and equipped with the capabilities to fulfil demand.
“We have exported to Singapore, Hong Kong, the US, Australia and Uzbekistan in 2022, and it is exciting to relook into those that we have exported to, such as New Zealand and the UAE, as the governments are driving the transition to zero-emission vehicles,” Pang said.
Last year, the group secured numerous projects, namely partnering GreenPower Motor Co Inc to develop right-hand drive electric trucks, purchasing 200 electric buses from Energy Absolute pcl, supplying electric buses for a pilot project in Sabah, delivering 140 fully-electric school buses to California in the US, as well as securing its single largest order from Uzbekistan to supply 190 bus body.
“2022 was a productive year for Gemilang, although the market was still slow compared to the years before the pandemic.
“Besides the major contracts from the US and Uzbekistan, we are handling an increasing number of enquiries and tender preparation works, mainly for electric buses,” he noted.
As part of its expansion, the group also purchased an additional 10 acres (4ha) of land to explore different business development opportunities and provide additional sources of income.
“While we do practise the principle of having the leanest production possible, Gemilang sees opportunities to diversify our revenue base during the transition to renewable energy and zero-emission vehicles, and will carefully assess them while ensuring the readiness of the capacity,” he said.
In its financial year ended Oct 31, 2022 (FY22), Gemilang recorded a net loss of US$1.38 million (RM5.95 million) versus a net profit of US$0.82 million (RM3.54 million) in the previous year, due to lower revenue from its sales of bus bodies and kits.
Its revenue dropped 18% to US$27.47 million (RM118.59 million) in FY22 from US$33.53 million (RM144.75 million) previously.
Despite the positive outlook for this year, the chairman remains cautious as he expects the group’s activities to slow down in the first half of 2023 (1H23) due to the festive seasons.
“In the 1H23, I believe almost all sorts of holidays are happening — so we will be affected by the slow down,” he added.
