PETALING JAYA: VS Industry Bhd
closed its financial year ended July 31, 2026 (FY26) with a net loss of RM55.3mil versus a net profit of RM33mil recorded in FY25.
The loss underscores the operating challenges faced by the electronics manufacturing services or EMS provider amid weak global consumer sentiment and cost optimisation measures imposed by its major customers.
The loss also includes a one-off non-cash impairment on plant and equipment of RM39.7mil in the final quarter.
Revenue for FY26 slipped 3.6% year-on-year (y-o-y) to RM3.65bil despite sales in the final quarter rising by 16.3% y‑o‑y to RM998.6mil, its filing with the exchange revealed.
Gross profit halved to RM115.9mil, reflecting lower utilisation rates and margin pressure.
VS Industry’s Malaysia business segment, which contributes the bulk of revenue, saw sales fall 12.3% to RM3.02bil and slipped into losses due to impairments and reduced orders.
The Indonesia segment delivered a modest profit of RM3.1mil, supported by steady demand.
Losses widened in the Philippines segment to RM38mil despite higher output, as operations remained below breakeven scale.
The group’s cash reserves declined to RM662.9mil from RM858.7mil, reflecting weaker operating inflows and continued capital expenditure.
Managing director of VS Industry, Datuk S. Y. Gan, said, “Persistent global trade uncertainties and weak consumer demand characterised much of the financial year.
“However, as the year-end festive season approaches, the group is seeing a steady uptick in customer orders, and we expect this momentum to sustain into the coming quarter. Moreover, our customers are planning to roll out new models in the coming fiscal year to maintain market competitiveness.
“The group also continues to actively explore opportunities beyond its core consumer electronics exposure to diversify its revenue base, and discussions are ongoing with prospective customers.
“Our technical know-how, available production space and ready capacity make us a compelling partner for prospects seeking a proven, reliable and scalable manufacturer that can respond swiftly to their specific requirements.”
He added the group’s strong liquidity provides flexibility to navigate demand volatility and invest in new opportunities.
