VSING FY2025: Revenue Surges 44%, RM54 Million Goodwill Impairment Drives Deeper Loss

Bulletin Express03-30

VSING Limited released its audited results for the year ended 31 December 2025, reporting strong top-line growth offset by a sizeable non-cash impairment that pushed the Group into a steep loss.

Revenue and Profitability • Group revenue expanded 44.20% year on year to RM123.23 million (2024: RM85.47 million), lifted by all operating segments. • Gross profit more than doubled to RM16.72 million, raising the gross margin to 13.6% from 9.0% a year earlier. • A one-off goodwill impairment of RM54.00 million—linked to the July 2025 acquisition of the interactive entertainment technology platform—drove other income and net gains to a RM53.38 million loss (2024: RM4.00 million gain). • After factoring in RM5.93 million of fair-value losses on financial assets and higher administrative expenses, the Group recorded a pre-tax loss of RM69.50 million (2024: RM7.45 million loss). • Net loss attributable to shareholders widened to RM69.77 million, translating into a basic and diluted loss per share of 7.93 sen (2024: 0.98 sen).

Segment Performance • Trading of used mobile phones remained the largest contributor, generating RM45.41 million revenue (+52.6% YoY) but posted a segment loss of RM3.18 million following higher impairment on receivables. • Freight forwarding and related services delivered RM43.13 million in revenue (+17.4%) with a marginal segment loss of RM0.30 million; gross margin for logistics improved to 12.5% (2024: 10.6%). • Manufacturing and sale of plastic products grew 58.6% to RM30.09 million and turned profitable, posting a segment profit of RM0.56 million versus a loss of RM1.74 million last year. • Newly acquired interactive entertainment technology operations contributed RM4.61 million revenue and a RM2.69 million segment loss during the five months post-acquisition.

Balance Sheet and Liquidity • Total assets rose to RM99.32 million (2024: RM47.33 million) following consolidation of the new subsidiary; goodwill stood at RM26.24 million. • Cash and bank balances closed at RM6.00 million (2024: RM7.43 million). • Net current assets improved to RM22.04 million (2024: RM14.36 million), while the gearing ratio eased to 17.7% (2024: 25.4%). • Total equity attributable to shareholders increased to RM65.17 million, reflecting the issuance of 318.00 million consideration shares for the acquisition.

Capital and Corporate Actions • The Group completed a HK$50.00 million share-for-share acquisition of V Sing Global Limited in July 2025, adding the interactive entertainment platform to its portfolio. • A February 2025 share placement raised net proceeds of HK$12.30 million, fully deployed by year-end—40% to expand plastic-product manufacturing in Vietnam and 60% for general working capital. • A planned placement of up to 150 million new shares lapsed in January 2026 after conditions precedent were not met.

Dividend The Board has recommended no dividend for FY2025 (FY2024: nil).

Outlook Management highlighted ongoing efforts to scale the AI-driven entertainment platform internationally, strengthen integrated logistics in Malaysia and Hong Kong, and deepen diversification through plastics manufacturing and used-mobile-phone trading. The Group will continue to monitor currency exposure and maintain prudence in capital deployment.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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