KUALA LUMPUR, 26 FEBRUARY 2025 – Flexidynamic Holdings Berhad (“Flexidynamic” or the “Company”), an established solutions provider for the rubber glove manufacturing industry, is pleased to announce its financial results for the fourth quarter ended 31 December 2024 (“Q4 FY2024”).
Flexidynamic recorded revenue of RM20.95 million for Q4 FY2024, a substantial increase of 142.1% from RM8.65 million in Q4 FY2023. This growth was primarily driven by increased demand for system and equipment upgrades, storage and process tanks for existing customers, as well as contributions from the sub-contract for mechanical and electrical (“M&E”) engineering works at Loji Rawatan Air Chupak, Jajahan Gua Musang, Kelantan. The Malaysian market remained the key revenue driver, contributing 93.82% of total revenue.
Despite the strong top-line growth, the Company recorded a loss before tax (“LBT”) of RM0.30 million, compared to a profit before tax (“PBT”) of RM1.21 million in Q4 FY2023. The decline was mainly attributed to lower gross margins in selected projects, provision for expected credit losses on trade receivables amounting to RM0.39 million, and an one-off RM0.42 million loss from the acquisition of a subsidiary’s assets. As a result, the Group registered a loss after tax (“LAT”) of RM0.54 million for the quarter, compared to a profit after tax (“PAT”) of RM1.28 million in the corresponding quarter last year.
For the full financial year ended 31 December 2024 (“FY2024”), the Group achieved revenue of RM52.69 million, marking a 37.7% increase from RM38.26 million recorded in FY2023. Profit after tax surged to RM1.34 million, representing a 254.38% increase compared to RM0.38 million in the previous financial year.
Mr. Tan Kong Leong, Managing Director of Flexidynamic Holdings Berhad, commented, “Despite the challenging operating environment, Flexidynamic has demonstrated resilience and agility, achieving strong revenue growth and a significant improvement in full-year profitability. While the glove industry continues to undergo structural adjustments, we remain optimistic about its long-term potential, particularly with the recent developments in global trade policies. Our commitment to diversification, as reflected in our infrastructure projects and upcoming gamma radiation sterilisation services, positions us for sustained growth in the years ahead. We will continue to focus on operational efficiency, strategic expansion, and innovation to drive long-term shareholder value.”
The Office of the United States Trade Representative’s (“USTR”) recent announcement of increased import tariffs on China-made medical and surgical gloves to 50% effective January 2025, and increased to 100% by January 2026, has created new opportunities for Malaysian glove manufacturers. With the higher import tariffs on China-made gloves, Flexidynamic’s customers are actively preparing to upgrade their existing systems and equipment to meet the anticipated rise in global demand. This development presents a strong growth catalyst for the Group, positioning it to benefit from a renewed focus on local glove production capacity enhancements.
In addition, the Company is progressing well with its plans to offer gamma radiation sterilisation services through Gammatech Sdn Bhd, its 51%-owned subsidiary. This project is currently in the planning stages, with an official announcement to be made on Bursa Securities as updates become available. The provision of sterilisation services is not only targeted at existing customers in the glove industry but also extends to key sectors such as pharmaceuticals, food processing, and packaging. Flexidynamic aims to leverage its strong customer base and industry expertise to expand its gamma radiation sterilisation services, further diversifying its revenue streams and strengthening its market position.
