KUALA LUMPUR (Feb 25): NexG Bhd (KL:NEXG), formerly Datasonic Group Bhd, swung to a net loss of RM130.88 million for its third quarter ended Dec 31, 2025 (3QFY2026), as the group was hit by a massive fair value loss of RM145.6 million on "other investments".
While the group did not provide details of these investments in its quarterly results filing on Wednesday, NexG’s FY2025 annual report and several bourse disclosures from 2025 highlighted a series of acquisitions into volatile penny stocks that have since seen their market values collapse.
In March last year, NexG bought 45 million shares or 1.95% in MMAG for RM18 million. In the same month, the group acquired another 175 million shares or 7.58% stake in MMAG for RM70 million, or 40 sen per share.
MMAG’S share price settled at four sen on Wednesday, about 90% below the 40 sen acquisition price.
Interestingly, Velocity Capital Partner Bhd (KL:VELOCITY) spent RM60 million or 40 sen apiece to acquire 150 million shares or a 6.494% stake in MMAG in March last year, around the same time NexG acquired its stake in MMAG.
Velocity disposed of its entire stake in MMAG in January this year in two tranches — 32.6 million shares on Jan 9 and 117.4 millio shares on Jan 12.
Velocity’s shares price has fallen about 44% over the past one year, closing at 4.5 sen on Wednesday.
In August last year, NexG announced that it had spent RM76.78 million to acquire a 32.61% stake in Classita Holdings Bhd at 15 sen per share, together with 414.31 million Classita warrants, mostly via off-market transactions at four sen apiece and some from the open market at 3.5 sen.
Classita has since been rebranded itself as NexG Bina Bhd. Its shares closed at three sen on Wednesday, about 80% below the 15 sen acquisition price in August 2025.
Meanwhile, NexG owns a 3.99% stake in Harvest Miracle Capital Bhd (KL:HM), whose share price stood at 15 sen on Wednesday, an increase of 11.11% from the previous year.
NexG's loss in 3QFY2025 is in contrast to a net profit of RM26.94 million a year earlier.
The information and communications technology solutions provider posted a loss per share of 3.73 sen for 3QFY2026, versus earnings per share of 0.97 sen previously,
Quarterly revenue declined 19.02% to RM79.29 million from RM97.9 million in 3QFY2025, mainly due to lower demand for smart cards, passports and personalisation services.
For the nine months ended Dec 31, 2025, NexG reported a net loss of RM46.55 million versus a net profit of RM71.74 million in the previous corresponding period, while revenue fell 9% to RM244.84 million from RM269.68 million.
No dividend was declared during the quarter.
Looking ahead, NexG said it remains cautiously optimistic on the operating environment.
The group said it will continue to prioritise the execution of its existing contracts and strengthen efforts in exploring new opportunities.
Towards the end of last year, NexG saw a significant board shake-up following several large government contract wins.
Between September and November, several directors resigned, including executive deputy chairman Tan Sri Mohd Khairul Adib Abd Rahman and executive director Datuk Puvanesan Subenthiran.
Shares in NexG ended half sen or 1.69% lower at 29 sen on Wednesday, valuing the company at RM1.08 billion.
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