Core Data Highlights: A Closer Look at Q1 FY2026

JADI IMAGING’s financial results for Q1 FY2026 show a mixed picture, with a significant decline in revenue but an improvement in gross profit margin. However, this was overshadowed by a substantial pre-tax loss.

Financial Performance Overview (Q1 FY2026 vs. Q1 FY2025)

Here’s a snapshot of the key financial figures for the quarter ended 30 June 2025, compared to the same period last year:

The Group’s revenue for the quarter stood at RM1.35 million, marking a 32% decrease compared to RM1.99 million in the corresponding quarter last year. This decline is attributed to soft demand for existing products amidst a global economic slowdown and intense competition, coupled with new product launches still being in their early growth phase.

Despite the revenue dip, JADI IMAGING achieved a positive gross profit of RM0.26 million this quarter, a significant turnaround from a gross loss of RM0.22 million in the prior year’s corresponding quarter. This improvement is a positive sign, driven by contributions from higher-margin products and better cost management, especially with the launch of a new consumer electronics product line.

The most striking figure is the substantial widening of loss before taxation (LBT) to RM16.97 million, a staggering 1663% increase from an LBT of RM0.96 million in the same quarter last year. Similarly, net loss after taxation mirrored this at RM16.97 million. This significant increase in losses is primarily due to a fair value loss of RM16.58 million on investment in quoted shares, reflecting increased global market volatility and persistent trade tensions impacting the investment portfolio.

Reflecting the overall financial performance, basic loss per share widened to (1.21) sen from (0.07) sen in the previous corresponding quarter.

Segmental Performance: A Shifting Landscape

JADI IMAGING’s business operations are undergoing a notable transformation:

• Product Distribution: For Q1 FY2026, revenue was generated solely from the product distribution segment through Jadi Life Solutions (JLS). This follows the disposal of its wholly-owned subsidiary, Jadi Imaging Technologies Sdn. Bhd. (JIT), which was completed on 1 March 2025. The new consumer electronics product line under JLS is seen as a key growth driver, supported by improved cost management.
• Investment Holding: This segment, which commenced activities in the previous year, incurred significant losses during the quarter. The substantial fair value loss on share investments was a direct result of increased global market volatility and persistent trade tensions, highlighting the risks associated with such ventures.

Balance Sheet and Cash Flow Insights

From the balance sheet, we observe a decrease in total assets from RM48.02 million at 31 March 2025 to RM30.91 million at 30 June 2025. Key changes include a significant reduction in cash and bank balances from RM8.08 million to RM0.79 million, and a decline in investment in quoted shares from RM34.28 million to RM24.56 million.

Accumulated losses widened considerably from (RM5.78 million) to (RM22.75 million), reflecting the quarterly loss. Net assets per ordinary share consequently decreased from RM0.03 to RM0.02.

In terms of cash flow, the Group saw net cash used in operating activities of RM0.40 million. Investing activities utilized RM6.86 million, mainly due to the acquisition of investment in quoted shares. Net change in cash and cash equivalents for the quarter was a negative RM7.29 million.

Navigating Challenges and Charting Future Directions

JADI IMAGING is undoubtedly operating in a challenging environment, but the company is actively implementing strategies to adapt and grow.

Market Outlook and Risks

The global economic landscape continues to present challenges, with soft consumer demand impacting sales. The “Investment Holding” segment is particularly susceptible to external factors such as:

• Global Market Volatility: Fluctuations in international markets can directly impact the fair value of its share investments, as evidenced by the significant loss this quarter.
• Trade Tensions: Ongoing geopolitical and trade disputes contribute to market uncertainty, affecting investment sentiment and performance.
• Competition: The product distribution segment faces stiff competition, necessitating continuous innovation and effective cost management.

Strategic Responses and Prospects

JADI IMAGING is not standing still. The company’s strategic initiatives include:

1. Portfolio Diversification: The Group is expanding its product offerings beyond traditional imaging supplies to include consumer electronics and personal care products under its Jadi Life Solutions (JLS) brand. This diversification aims to reduce reliance on any single product line and capture opportunities in new, growing markets.
2. Streamlining Operations: The disposal of Jadi Imaging Technologies Sdn. Bhd. (JIT) earlier this year is a clear move to rationalize its corporate structure and mitigate ongoing losses from its manufacturing operations, allowing for a more focused approach on product distribution and investment holding.
3. Leveraging Established Networks: With its existing reseller network and an experienced team, the Group is positioned to support the growth of its new product lines and potentially deliver long-term value.

The company believes its diversified portfolio and established network will allow it to capture positive industry trends and deliver long-term growth, despite current headwinds.