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XIN SYNERGY GROUP BERHAD: Navigating Challenges with Strategic Shifts in Q4 FY2025
As Malaysian retail investors, understanding the pulse of our local companies is crucial. Today, we delve into the latest quarterly report from XIN SYNERGY GROUP BERHAD (formerly Jade Marvel Group Berhad) for the fourth quarter ended March 31, 2025. This report offers a comprehensive look at the Group’s financial health and strategic direction, revealing a period of significant shifts and a determined effort to navigate a challenging economic landscape.
While the Group faced a notable decline in revenue for the full financial year, it’s impressive to note a significant reduction in its overall loss for the period, largely driven by strategic adjustments and substantial gains from fair value changes on equity investments. Let’s unpack the details and see what this means for XIN SYNERGY’s future.
Unpacking the Numbers: A Deep Dive into Performance
Quarterly Financial Performance (Q4 FY2025 vs Q4 FY2024)
The fourth quarter of the financial year 2025 (FY2025) saw XIN SYNERGY GROUP BERHAD facing a substantial drop in revenue compared to the same period last year, primarily due to reduced contributions from its property development and financing divisions. However, the Group managed to significantly reduce its net loss for the quarter.
Current Quarter (Q4 FY2025)
Revenue: RM1,996,000
Gross Profit: RM1,515,000
Loss Before Tax: RM(715,000)
Loss for the Period: RM(2,141,000)
Basic Losses per Share: (0.42) sen
Same Period Last Year (Q4 FY2024)
Revenue: RM29,958,000
Gross Profit: RM12,593,000
Loss Before Tax: RM(790,000)
Loss for the Period: RM(3,725,000)
Basic Losses per Share: (0.61) sen
While revenue declined by a significant 93% and gross profit by 88% quarter-on-quarter, it’s noteworthy that the Group’s loss before tax improved by 9% (from RM790,000 to RM715,000). More importantly, the loss for the period decreased by 43%, and basic losses per share improved by 31%, indicating a better control over costs and other comprehensive income factors despite the revenue challenges.
Full-Year Financial Performance (FY2025 vs FY2024)
For the full financial year, XIN SYNERGY GROUP BERHAD saw its revenue more than halve, but managed to significantly reduce its overall net loss. This was largely aided by substantial “Gain on fair value changes on equity investments at fair value through other comprehensive income.”
| Metric | FY2025 (RM’000) | FY2024 (RM’000) | Change (%) |
|---|---|---|---|
| Revenue | 30,750 | 70,582 | -56% |
| Gross Profit | 6,463 | 28,414 | -77% |
| (Loss)/Profit Before Tax | (361) | 4,456 | >-100% (Swung to Loss) |
| Loss for the Period | (1,850) | (10,991) | 83% (Loss Reduced) |
| Basic Losses per Share (sen) | (0.33) | (2.02) | >100% (Loss Reduced) |
| Total Comprehensive Income/(Loss) Attributable to Owners of the Parent | 34,708 | (4,520) | >100% (Swung to Income) |
The significant improvement in the loss for the period and basic losses per share, despite a swing to loss before tax, highlights the impact of other comprehensive income, particularly the gain on fair value changes in equity investments. This indicates a strong performance in their investment portfolio.
Business Unit Performance (Full Year FY2025 vs FY2024)
Let’s break down the performance by segment:
- Manufacturing Division: Reported RM Nil revenue (down from RM0.26 million) due to the disposal of both manufacturing plants. The operating loss significantly improved, from RM0.43 million to RM0.13 million, indicating a strategic shift and reduced operational burden.
- Property Development Division: Revenue decreased by 56% to RM28.54 million (from RM64.49 million). This was attributed to the transition of phases and higher inventory sales in the preceding year. Operating profit also saw a substantial decline, from RM14.00 million to RM2.35 million.
- Financing Division: Revenue dropped by 69% to RM1.64 million (from RM5.32 million). The division swung from an operating profit of RM3.07 million to an operating loss of RM0.24 million.
- Other Divisions (IT, Construction, Wellness, Retail): Showed a slight increase in revenue to RM0.58 million (from RM0.51 million). Crucially, the operating loss for these segments improved significantly, from RM2.81 million to RM0.17 million.
Financial Health: Balance Sheet and Cash Flow
XIN SYNERGY’s balance sheet as of March 31, 2025, shows a stronger position with increased total assets and equity. This reflects growth in their investment portfolio and successful capital raising activities.
Total Assets: Increased by 16% to RM252,727,000 (from RM217,834,000 last year).
Total Equity: Grew by 23% to RM235,345,000 (from RM191,860,000).
Net Assets per Share: Improved to RM0.47 (from RM0.42).
Cash & Bank Balances: Rose by 53.9% to RM26,971,000 (from RM17,522,000).
A notable increase in “Other investments” (non-current) to RM57,040,000 from RM13,682,000 (a 317% increase) underscores the significant fair value gains mentioned earlier.
In terms of cash flow, the Group saw a decrease in net cash from operating activities but a significant boost from financing activities, primarily due to the issuance of new shares.
- Net cash from operating activities: RM6,053,000 (down from RM14,611,000 in FY2024).
- Net cash from financing activities: RM8,134,000 (up from RM4,105,000 in FY2024), driven by proceeds from share issuance.
- Cash & cash equivalents at end of period: Increased by 77.6% to RM27,784,000 (from RM15,645,000).
Navigating the Future: Risks and Prospects
XIN SYNERGY GROUP BERHAD acknowledges the challenging environment ahead, particularly for the property sector in Malaysia. The Board of Directors, however, remains cautiously optimistic for the financial year ending March 31, 2026.
Key Challenges Identified:
- Softening Property Sales: Anticipated due to a challenging global economic outlook in 2026.
- Rising Costs: Increased construction and compliance costs are expected to impact the property market.
- Stringent Lending Policies: Strict requirements from licensed financial institutions may affect property demand.
- Cautious Business Sentiment: Overall business sentiment in the country remains cautious.
- Intense Competition: The property industry continues to face fierce competition.
Strategic Outlook and Mitigation:
To counter these challenges and drive future growth, XIN SYNERGY is focusing on several key initiatives:
- Property Development: The Group plans to commence project planning for property development at Taman Paloh, Johor, and will focus on developing the remaining SA65 at Simpang Ampat. Management aims to improve efficiency and maintain competitiveness within the property industry.
- Money Lending Business: The Group believes in the growth potential of its money lending business, especially given the long approval processes and strict requirements of traditional financial institutions. They will focus on lending to specific customer segments, including investment holding companies, SMEs, and start-up entrepreneurs, for various purposes like personal financing, seed capital, working capital, investment, new business, expansion, and project financing.
The strategic shift away from manufacturing and a renewed focus on property development and the money lending business, coupled with efforts to improve efficiency, are key to the Group’s resilience in the coming year.
Summary and
XIN SYNERGY GROUP BERHAD’s fourth-quarter and full-year results for FY2025 paint a picture of a company undergoing significant transition. While top-line revenue faced headwinds, especially in its core property and financing segments, the Group managed to substantially reduce its overall net loss for the year, largely thanks to a strong performance in its investment portfolio and improved cost management in other segments. The balance sheet has also strengthened, reflecting increased equity and cash reserves from recent corporate exercises.
The Group is clearly aware of the macro challenges, particularly in the property sector, and is strategically pivoting by focusing on new property projects and expanding its money lending business. This forward-looking approach, combined with efforts to enhance operational efficiency, positions XIN SYNERGY to navigate the anticipated softness in the market.
Key points from this report:
- Significant reduction in full-year net loss, driven by fair value gains on equity investments.
- Property and financing divisions experienced revenue decline, but other segments showed improved loss reduction.
- Stronger balance sheet with increased total assets and equity, and healthy cash reserves.
- Strategic focus on new property developments and expansion of the money lending business.
- No dividend was declared for the current financial period.
Looking ahead, the Group’s ability to execute its new strategies and adapt to market conditions will be crucial. The cautious optimism expressed by the Board suggests a realistic yet determined outlook for FY2026.
What are your thoughts on XIN SYNERGY GROUP BERHAD’s strategic adjustments? Do you believe their focus on new property projects and the money lending business will yield positive results in the challenging economic climate? Share your insights in the comments below!
