Navigating the Headwinds: A Look at THRIVEN GLOBAL BERHAD’s Q1 2025 Performance
Greetings, fellow investors and market enthusiasts! Today, we’re diving into the latest financial disclosures from THRIVEN GLOBAL BERHAD for the first quarter ended 31 March 2025. This report offers a glimpse into the company’s strategic adjustments and resilience amidst a dynamic market environment.
While the company experienced a notable decline in revenue compared to the same period last year, there’s a silver lining: a significant reduction in its pre-tax loss. This quarter showcases the company’s efforts to streamline operations and enhance recurring income streams. Let’s break down the key figures and strategic moves that are shaping THRIVEN GLOBAL BERHAD’s trajectory.
Core Financial Highlights: A Mixed Bag of Results
THRIVEN GLOBAL BERHAD’s first quarter of 2025 presents a nuanced picture. While revenue saw a dip, the company managed to significantly reduce its losses, signaling effective cost management and strategic shifts.
Quarter-on-Quarter Performance (Q1 2025 vs Q1 2024)
The latest quarter’s revenue stood at RM4.41 million, a substantial decrease from RM9.16 million in the corresponding period last year. This was primarily attributed to lower sales of remaining inventory and the completion of projects in the preceding year, which meant an absence of new progress recognition.
Q1 2025
Revenue: RM4.41 million
Loss Before Taxation: RM(2.71) million
Loss for the Period: RM(3.07) million
Loss Per Share: (0.53) sen
Q1 2024
Revenue: RM9.16 million
Loss Before Taxation: RM(5.26) million
Loss for the Period: RM(5.46) million
Loss Per Share: (0.94) sen
Despite the revenue challenge, the company demonstrated a commendable improvement in its bottom line. The pre-tax loss for the quarter was reduced to RM2.71 million, a significant improvement from the RM5.26 million loss recorded in the same period last year. This improvement was largely driven by increased recurring rental income and the forfeiture of a deposit received in the preceding year related to a land sale in Kedah.
Sequential Quarter Comparison (Q1 2025 vs Q4 2024)
Comparing the current quarter to the immediate preceding quarter (Q4 2024) reveals an even more dramatic improvement in profitability, showcasing the impact of specific financial adjustments made previously.
Q1 2025
Revenue: RM4.41 million
Loss Before Taxation: RM(2.71) million
Q4 2024
Revenue: RM6.80 million
Loss Before Taxation: RM(17.50) million
While revenue declined by 35.1% from RM6.80 million in Q4 2024, the pre-tax loss saw a remarkable 84.5% improvement, shrinking from RM17.50 million to RM2.71 million. This significant reduction in loss was mainly due to the absence of a goodwill impairment and provision for interest expenses that were recorded in the preceding quarter.
Business Unit Performance: Shifting Gears
THRIVEN GLOBAL BERHAD’s diversified business units are adapting to market conditions:
- **Property Development:** Revenue was primarily from property sales (RM2.11 million) and the completion of a development land sale in Kedah (RM1.07 million). The final 70 titles out of 450 for the terrace house development land in Desa Aman, Kedah, were successfully sold, aligning with the strategy to reduce borrowings. The Enesta Avenue project in Desa Aman, Kedah, has achieved an impressive 98.85% sales rate, with only 3 units remaining.
- **Property Investment & Hospitality:** This segment is becoming a key contributor to recurring income. Increased rental revenue from investment properties, particularly the Lumi Tropicana Lifestyle Tower, played a positive role. The hospitality division, focusing on short-term accommodation and management services, improved performance with the completion of its first batch of renovations and a second batch currently underway.
- **Food and Beverages (F&B):** The F&B division also contributed positively to revenue. The Lumi Market Place (LMP) within Lumi Tropicana is being revitalized with new F&B operators starting June 2025 and the introduction of trending pickleball activities to boost traffic and car park occupancy.
Financial Health: Prudent Management
As of 31 March 2025, the company’s financial position shows slight adjustments:
| Metric | 31 March 2025 (RM’000) | 31 December 2024 (RM’000) |
|---|---|---|
| Total Assets | 194,980 | 200,664 |
| Total Equity | 79,603 | 82,668 |
| Total Liabilities | 115,377 | 117,996 |
| Net Assets Per Share (RM) | 0.15 | 0.16 |
The group’s total assets saw a marginal decrease, primarily due to the reduction in inventories and receivables. Total borrowings were also slightly reduced from RM70.11 million to RM68.86 million, indicating efforts to pare down debt, which aligns with the strategy from the land sale.
Cash flows from operating activities decreased to RM1.83 million from RM5.33 million in the corresponding period last year. However, the net decrease in cash and cash equivalents was less severe this quarter compared to the same period last year, reflecting improved overall cash management.
Risks and Prospects: Building for the Future
THRIVEN GLOBAL BERHAD is actively strategizing to overcome current challenges and capitalize on future opportunities:
- **Property Development Outlook:** The focus for the remainder of the year will be on selling the remaining 3 units of completed semi-detached homes in Kedah and prime units at Lumi Tropicana, especially those with views of the Tropicana Golf & Country Club. The balance of retail units at Suite eNESTa Kepong, which offer attractive rental yields, will also be a key focus.
- **Recurring Income Growth:** The company is committed to increasing recurring income through its investment properties, hospitality, and F&B segments. The ongoing renovations at Lumi Tropicana and strategic enhancements at Lumi Market Place, including new F&B operators and pickleball courts, are expected to boost foot traffic and property value.
- **Strategic Landbank Management:** The sale of the Desa Aman land demonstrates a move to reduce borrowings and finance costs. The group continues to seek new landbanks for quick-turnaround projects and joint development ventures.
- **Infrastructure Impact:** The re-implementation of the LRT 3 Tropicana Station, announced in Budget 2024, is anticipated to significantly increase interest in the Lumi Tropicana units, potentially leading to an upside in their values.
While the immediate challenge lies in lower revenue due to completed projects and remaining inventory, the company’s strategic shift towards recurring income, asset enhancement, and prudent debt management positions it for potential future growth. The management expresses confidence in continued performance improvement for the second half of the year.
Summary and
THRIVEN GLOBAL BERHAD’s Q1 2025 report highlights a challenging revenue environment, primarily due to the natural cycle of property development where project completions lead to reduced recognition of progress. However, the significant reduction in loss before taxation, both compared to the previous year and the immediate preceding quarter, is a testament to the company’s efforts in managing costs and leveraging other income streams like rental and strategic asset sales.
The company is actively pursuing strategies to build a more sustainable income base through its investment properties, hospitality, and F&B divisions. Initiatives like the renovation of Lumi Tropicana units, the revitalization of Lumi Market Place with new F&B concepts and recreational activities, and the strategic reduction of borrowings through land sales are all positive steps.
Key points to consider moving forward include:
- The success of selling the remaining inventory units, particularly the prime units at Lumi Tropicana and Desa Aman.
- The effectiveness of new initiatives like the pickleball courts and new F&B operators at Lumi Market Place in boosting traffic and recurring income.
- The impact of improved infrastructure, such as the LRT 3 Tropicana Station, on the value and demand for Lumi Tropicana properties.
- The company’s ability to identify and secure new landbanks for future quick-turnaround projects.
Overall, while the property development segment faces a temporary lull in revenue recognition, THRIVEN GLOBAL BERHAD is strategically diversifying its income streams and enhancing its existing assets to ensure long-term sustainability. It will be interesting to observe how these strategies unfold in the coming quarters.
From a professional standpoint, THRIVEN GLOBAL BERHAD appears to be undergoing a necessary transition, shifting its focus from purely development-driven revenue to a more balanced approach that incorporates recurring income. This strategy, while impacting immediate top-line growth, could provide greater stability in the long run.
What are your thoughts on THRIVEN GLOBAL BERHAD’s strategic pivot? Do you believe the focus on recurring income and asset enhancement will be sufficient to drive future growth? Share your insights in the comments below!
