KUALA LUMPUR (Aug 28): NexG Bhd (KL:NEXG), Malaysia’s sole supplier of MyKad identity cards and passport booklets, swung to a net loss of RM2.82 million for the quarter ended June 30, 2026 (1QFY2027), from a net profit of RM64.88 million a year earlier.

This was mainly due to a fair value loss on other investments and lesser supply of smart cards and passports.

Other income fell from RM40.18 million to RM577,000 during 1QFY2027. NexG recorded a RM39.94 million fair value gain on other investments in 1QFY2025, against a RM1.45 million fair value loss on the same line this quarter.

Group revenue fell 44.3% to RM49.24 million from RM88.45 million a year earlier.

In an exchange filing, revenue from the supply of smart cards, passports and personalisation services fell to RM29.99 million from RM70.14 million, which the group attributed to lower customer demand.

Operating expenses were broadly flat at RM51.54 million, compared with RM55.49 million a year earlier.

Loss per share came in at 0.06 sen, compared with earnings per share of 2.01 sen a year earlier.

Quarter-on-quarter, the loss narrowed from RM37.7 million in 4QFY2026, which the group attributed mainly to a smaller fair value loss on investments. Revenue, however, was also lower than the RM103.32 million booked in the preceding quarter, again on lower supplies of smart cards and passports.

No dividend was declared for the quarter under review.

The group’s total assets stood at RM612.82 million as at June 30, down RM25.59 million from the previous quarter, mainly due to fair value losses on investments. Total liabilities fell RM21.36 million to RM77.28 million, following repayment of payables.

NexG said it generated RM10.81 million in net cash from operating activities during the quarter, while financing cash flows were mainly affected by repayments of short-term financing.

On its prospects, NexG said it welcomes the government’s decision not to proceed with the proposed acquisition of Datasonic Technologies Sdn Bhd (DTSB), adding that it gave the group greater clarity to focus on its existing operations and strategic plans.

“Looking ahead, the group will prioritise disciplined execution while pursuing new growth avenues and strengthening strategic partnerships,” said the NexG in the filing.

It also plans to selectively explore overseas markets to diversify its geographical exposure, taking into account the associated market and operational risks.

Shares of NexG ended flat at 27 sen on Thursday, giving the group a market capitalisation of RM1 billion. Year to date, the counter has fallen 3.57%.