KUCHING: Sarawak Consolidated Industries Bhd (SCIB) has slipped into the red with group net loss of about RM1.89 million in financial year ended June 30, 2025 (FY2025) as compared to profit of RM4.48 million in FY2024 despite increase in revenue to about RM176 million from RM166.6 million year-on-year.
This resulted in company to incur loss per share of 0.28sen from earnings per share of 0.7sen.
In FY2025, the manufacturing segment reported a 2.2 per cent drop in revenue to RM112.85 million (FY2024:RM115.43 million) due to reduced sales of products to external customers. This dragged down the segment’s pre-tax profit sharply lower to RM9.7 million (RM15.29 million).
The construction/engineering, procurement, construction and commissioning (EPCC) segment contributed higher revenue of RM63.15 million (RM51.2 million) to group turnover, thanks to stable construction progress on existing projects, and cost efficiency. The higher revenue pushed the segment back to profitability, with pre-tax profit of RM1.16 million, a reversal from pre-tax loss of RM0.15 million in FY2024.
In 4Q2025, SCIB sank into the red with group net loss of RM1.82 million (4Q2024:+RM1.96 million) as revenue fell to RM42.33 million (RM44.83 million). The manufacturing, and construction/EPCC segments posted revenue of RM24.71 million (RM27.34 million) and RM17.62 million (RM17.49 million) respectively.
The performance of the manufacturing segment in the current quarter was affected by decreased sales of industrialised building system (IBS) products.
SCIB’s executive chairman Datuk Chong Loong Men said FY2025 was a year of recalibration for the company as it focused on operational stability while laying the groundwork for the next phase of growth.
He said despite market headwinds, both the group’s core segments remained profitable and this performance reflects the group’s fundamental strength and resilience.
“Our capital investments and land acquisitions in strategic locations in Bintulu position us well to expand our value chain and participate in Sarawak’s growing development pipeline,” he added in a media release.
Chong said SCIB is highly encouraged by the strong infrastructure push under the Federal government 2025 Budget and the upcoming 13th Malaysia Plan.
“Projects, such as the Pan Borneo Highway, the Kuching Autonomous Rapid Transit (ART) and the expansion of renewable energy initiatives across Sarawak, present meaningful opportunities for SCIB. Our integrated construction and manufacturing capabilities allow us to play a key supporting role in these nation-building efforts,” he said.
To support the group growth, SCIB has proposed a renounceable rights issue with free detachable warrants that could potentially raise up to RM53.5 million, alongside a proposed share capital reduction of RM110 million.
These exercises, according to Chong, are expected to enhance SCIB’s financial flexibility, optimise its capital structure and fund working capital and project mobilisation needs for upcoming opportunities in the region.
SCIB is undertaking the development of a new precast concrete manufacturing facility in Demak Laut Industrial Park here, which is expected to raise production capacity by about 30 per cent upon operational.
Looking ahead, SCIB said it remains committed to building a sustainable and scalable business model, anchored on prudent financial management, strategic expansion and strong governance.
“With a growing landbank, a pipeline of high-impact projects, and an increased focus on East Malaysia as its core market, the group is confident in its ability to deliver long-term value to shareholders,” added the company.
Meanwhile, SCIB has appointed lawyer Ling Chi Hoong, 42, as an independent director. Ling is also an independent director of LKL International Bhd, Vizone Holdings Bhd and Jadi Imaging Holdings Bhd.
He is a partner in a Legal 500 Law firm, specialises in areas of capital market and corporate commercial.
