KUALA LUMPUR: One Glove Group Bhd
's external auditor has issued an unqualified audit opinion with a material uncertainty related to the group's ability to continue as a going concern for the financial year ended March 31, 2026.
In a filing with Bursa Malaysia, the glove manufacturer said its external auditor, Messrs Deloitte Malaysia PLT, highlighted that the group incurred a net loss of RM39.1mil during the financial year ended March 31, 2026 (FY26), while the company posted a net loss of RM131mil.
The group also recorded net operating cash outflows of RM12.3mil and ended the financial year with net current liabilities of RM23.9mil.
“The group continues to operate in a challenging operating environment. The glove manufacturing activity faces persistent global oversupply, subdued selling prices, and rising production costs,” Deloitte said.
The auditor said the group's ability to continue as a going concern depends on the successful implementation of its financial and operational restructuring plans, including the disposal of all or part of land owned by an indirect associate, or the disposal of the associate itself.
It also depends on continued financial support from substantial shareholder ADA Capital Investments Ltd.
Despite the material uncertainty, Deloitte's audit opinion was not modified.
Separately, the auditor identified two key audit matters involving impairment assessments.
At the group level, One Glove recognised an impairment loss of RM5.63mil on plant and machinery, including capital work-in-progress, following operating losses at subsidiary Onetexx Sdn Bhd.
At the company level, it recognised an impairment loss of RM128.67mil on its investment in Onetexx.
To address the going concern uncertainty, One Glove said its 38%-owned associate, One Glove Venture Sdn Bhd, is pursuing the disposal of all or part of about 322 acres of land valued at approximately RM520mil, or an indirect disposal through the sale of the landholding company.
The proceeds attributable to One Glove are intended to support Onetexx's operations and repay borrowings.
The group also said it has secured a repayment moratorium from a lender after the financial year-end and will continue discussions with lenders to obtain further repayment relief.
The company expects to complete the proposed measures by March 31, 2027, barring unforeseen circumstances.
