KUCHING: Subur Tiasa Holdings Bhd’s independent auditors, Messrs Crowe Malaysia Plt, have issued an unqualified audit opinion with a material uncertainty related to the going concern as the company’s liabilities have far exceeded its assets.
Based on Subur Tiasa’s financial statement as at December 31, 2025, the group’s current liabilities exceeded its current assets by RM355.8 million (2024:RM393 million).
This indicates the existence of a material uncertainty that may cast significant doubt on the group’s ability to continue as a going concern. Accordingly, the group may be unable to realise its assets and discharge its liabilities in the normal course of business and at amounts which could differ significantly from those currently recorded in the statements of financial position, the independent auditors said.
In responding to the auditors’ statement, Subur Tiasa said the group recorded pre-tax profit of RM10.2 million for financial year 2025 after recognising impairment loss of RM25.6 million on certain non-productive assets.
“The group registered a profit after tax of RM2.7 million, demonstrating resilience in its operating performance despite the one-off impairment adjustment. The group’s financial position was further supported by strong net operating cash inflows of RM108.1 million (2024:RM74.4 million), reflecting improved operational discipline and cost optimisation initiatives implemented during the financial year.
“In spite of the challenging operating environment, the group achieved earnings before interest, tax, depreciation and amortisation (EBITA) of RM96.2 million for FY2025, reflecting sustained operational efficiency and the group’s ability to generate stable earnings and cash flows,” added the Sibu-based timber and plantation company.
Subur Tiasa said the group continues to focus on strengthening its oil palm plantation operations, which remain the primary contributor to profitability and cash flows.
As at December 31, 2025, the group maintained a total oil palm planted area of 24,039 hectares, of which about 73 per cent fall within the prime maturity age of eight to 18 years, while a further 12 per cent are within the three-to-seven years age bracket, which are expected to contribute positively to future yields and cash flows.
For FY2025, the plantation segment recorded pre-tax profit of RM15.6 million (2024:RM38.1 million) and generated net operating cash inflows of RM92.9 million (2024:RM86.7 million), reflecting the continued strength and stability of the segment, said the company.
“Fresh fruit bunches (FFB) production in FY2025 remained stable at 318,537 metric tonnes, with average yields maintained at approximately 16 MT per hectare. The group continues to emphasise disciplined estate management practices, adoption of mechanisation and cost optimisation initiatives, which are expected to further enhance productivity and operational efficiency.
“With its favourable maturity profile and ongoing agronomic improvements, the group expects the plantation segment to continue generating strong and recurring cash flows to support working capital requirements and debt servicing obligations.”
On the group’s timber business, Subur Tiasa said it continues to undertake a targeted rationalisation of its timber logging and manufacturing operations to improve cost efficiency and reduce losses. During the financial year, the group’s rationalisation measures undertaken include the cessation of certain non-viable operations and the scaling down of selected underperforming activities, following a comprehensive review of operational performance and cost structure.
In FY2025, the group posted a reduced pre-tax loss of RM16.6 million (2024:-RM26.2 million) from the timber segment, with cash outflows reduced by about 35 per cent from 2024.
In addition, Subur Tiasa said the group has progressively disposed of non-productive and idle assets amounting to RM24.2 million during FY29025. The ongoing rationalisation and asset disposal programme is expected to continue over a period of 10 to 16 months into FY2026, with the objective of further reducing operating losses and cash outflows.
Throughout FY2025, Subur Tiasa said the group had consistently met all its debt obligations, ensuring timely repayment of its financial facilities. These facilities, which are subject to periodic review, have continued to be renewed, reflecting the group’s disciplined financial management and the continued support of its banking partners.
As at December 31, 2025, the group’s total borrowing stood at RM520.5 million (2024:RM610.2 million), of which RM340.8 million (2024:RM398 million) were classified as current liabilities.
“The group expects that cash flows generated from its oil palm plantation segment will be sufficient to service its fixed-term borrowings, including those relating to its timber operations,”
Subur Tiasa said the group has maintained a consistent track record in meeting its repayment obligations without default, and its banking partners have continued to renew credit facilities under annual review without significant modifications.
To support its working capital requirement, the group has access to approved but unutilised credit facilities amounting to RM78.5 million.
Subur Tiasa said the company’s debt-to-equity ratio improved from 0.93 in FY2024 to 0.79 in FY2025, reflecting ongoing deleveraging and strengthening of its balance sheet. The company expects this improving trend to be sustained.
“Based on the above considerations, the board (of directors) is of the strong view that the group’s business remains fundamentally relevant and resilient, particularly in light of the positive outlook for the plantation sector.
“Management remains confident in the group’s ability to deliver improved operational performance and profitability, supported by steady cash flow generation for the financial year ending 31 December 2026,” added the company in a filing with Bursa Malaysia.
Meanwhile, Subur Tiasa had resold its treasury shares totalling 73,400 shares at prices between 63.5sen and 79sen from April 2 to 8, 2026.
