KUALA LUMPUR (May 30): Steel manufacturer Ann Joo Resources Bhd (KL:ANNJOO) saw its first quarter net loss widen over fivefold from a year earlier, due to weaker selling prices and higher costs stemming from a scheduled plant shutdown.

Its net loss increased to RM78.84 million or a 11.24 sen loss per share for the three months ended March 31, 2025 (1QFY2025), from RM14.96 million or a 2.66 sen loss per share previously, Ann Joo said in a filing on Friday. This marks the group’s fifth straight quarterly loss since 1QFY2024.

The company attributed the larger loss to depressed profit from lower selling prices of steel products, coupled with RM11.86 million in costs incurred during the temporary shutdown.

Revenue for the quarter fell 18.06% year-on-year to RM531.06 million from RM648.08 million, mainly due to lower tonnage and selling prices in the company's upstream and downstream steel divisions.

On a quarter-on-quarter basis, Ann Joo narrowed its net loss from RM149.98 million in 4QFY2024, while revenue fell 12.19% from RM604.81 million.

No dividend was declared for the quarter under review.

Ann Joo said the steel industry remains uncertain amid trade tensions, soft local demand and unlaunched infrastructure projects.

“Major domestic infrastructure projects have yet to kick off in terms of significant steel demand, and overall market conditions remain relatively soft,” it said.

However, the company said it is reducing production costs by sourcing coke — a primary fuel supply for its blast furnace operations — from new suppliers in Sulawesi, Indonesia.

The company is also expanding into the automotive supply chain and electrification infrastructure, while exploring regional demand and redevelopment of industrial assets.

Ann Joo’s shares finished up one sen or 1.46% to 69.5 sen on Friday, giving the company a market capitalisation of RM496.04 million. The counter has dropped over 16% year to date, amid the ongoing downturn in China’s property market and weaker manufacturing activities.