Vizione said that the termination of the contract is not expected to have any material impact on the company’s earnings or net assets in the near term.
KUALA LUMPUR (April 30): Vizione Holdings Bhd (KL:VIZIONE) said on Wednesday that a RM750 million construction contract awarded by a related party has been terminated, effective immediately.
The decision to call off the deal was mutual, said the construction outfit in a bourse filing, without disclosing the reason.
Vizione was awarded the contract by property developer Fields of Forest Sdn Bhd on May 30, 2024, to undertake the construction of serviced apartment blocks, shoplots and a parking complex in Gombak, Selangor.
Vizione’s managing director Datuk Ng Aun Hooi and executive director Bee Jian Ming are indirect shareholders of Fields of Forrest.
Vizione said that the termination of the contract is not expected to have any material impact on the company’s earnings or net assets in the near term.
The company’s net profit dropped 92% to RM39,000 for the third quarter ended Feb 28, 2025 from RM504,000 a year earlier, in the absence of new project launches and prolonged timelines for ongoing developments, which led to higher operating costs. Quarterly revenue increased 5% to RM54.11 million from RM51.15 million, supported mainly by the sale of completed units within the property development division.
For the nine-month period, Vizione reported a net loss of RM79.42 million, versus a net profit of RM828,000 previously, while revenue rose to RM192.66 million from RM186.78 million. The revenue growth was driven by the construction segment, which accounted for 97% of total revenue.
As of the close of trading on Wednesday, shares of Vizione were up half a sen or 6.3% at 8.5 sen, valuing the company at RM46.9 million.
Year-to-date, the stock has retreated by 22.73%. It had risen to 20 sen on May 30 last year, climbing to 25 sen by June 4, and further increasing to 27.5 sen by June 10. However, the upward momentum tapered off by August, with the stock entering a downward trend.
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Source: EdgeProp.my
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