Flexidynamic Holdings Berhad (“Flexidynamic” or the “Company”), an established solutions provider for the rubber glove manufacturing industry, today announced its unaudited financial results for the second quarter ended 30 June 2025 (“Q2 FY2025”), registering an 85.2% year-on-year increase in revenue to RM14.37 million compared to RM7.76 million in the same quarter last year.
The growth in topline was primarily supported by continued upgrades to glove production systems by existing customers and contributions from sub-contracting works under the Group’s mechanical and electrical (“M&E”) engineering segment. Local projects accounted for 94.3% of revenue in the quarter, underscoring the strengthening domestic demand following recent policy interventions to boost local glove production.
However, the Group recorded a loss before tax (“LBT”) of RM2.29 million in Q2 FY2025, compared to a profit before tax of RM0.92 million in the previous year’s corresponding quarter. The decline was mainly attributable to margin compression in sub-contracting projects, higher finance costs, professional fees, foreign exchange losses, and an allowance for expected credit losses.
On a cumulative basis, the Group achieved revenue of RM31.84 million for the first half of FY2025 (“1H FY2025”), more than doubling the RM12.50 million recorded in 1H FY2024. The loss before tax for the six-month period stood at RM1.98 million, compared to a profit before tax of RM1.07 million in the corresponding period last year.
Mr. Tan Kong Leong, Managing Director of Flexidynamic Holdings Berhad, commented, “While we are pleased with the revenue momentum, the profitability was affected by weaker margins in specific project scopes and foreign exchange volatility. We remain focused on cost discipline and operational efficiencies, while advancing our long-term growth agenda.”
On 1 August 2025, Flexidynamic completed the acquisition of Formtech Engineering (M) Sdn. Bhd., a glove former manufacturing company, for a total purchase consideration of RM10.39 million. This strategic move marks Flexidynamic’s foray into upstream manufacturing and strengthens its ability to offer integrated solutions across the glove production value chain.
Mr. Tan added, “The acquisition of Formtech expands our product portfolio and enables us to offer bundled solutions to glove manufacturers, enhancing client stickiness and unlocking new cross-selling opportunities. This upstream integration aligns with our long-term vision of becoming a comprehensive solutions provider for the glove industry.”
In tandem with this development, the Group is progressing towards the commercialisation of gamma radiation sterilisation services via its 51%-owned subsidiary, Gammatech Sdn. Bhd. This upcoming launch represents a strategic extension of Flexidynamic’s capabilities into a new, value-added service vertical that is expected to capture demand from the wider medical and manufacturing sectors.
Beyond the glove industry, Flexidynamic is also actively exploring infrastructure-related projects to further diversify its earnings base. Coupled with a focus on enhancing operational efficiencies, strengthening cost controls, and maintaining disciplined capital management, the Group is positioning itself to navigate current market headwinds and capitalise on emerging recovery trends. Despite the near-term challenges, the Board remains confident in the Group’s long-term prospects and its ability to deliver sustainable value to shareholders and stakeholders alike.
