KUALA LUMPUR (Sept 29): VS Industry Bhd (KL:VS) posted its first full-year loss since it was listed in 1998, dragged down by lower orders placed by key customers amid weak global consumer sentiment.

The electronic manufacturing services provider registered a net loss of RM53.8 million for its financial year ended July 31, 2026 (FY2026), compared with a net profit of RM36.7 million in the previous year, as revenue fell 3.62% to RM3.65 billion from RM3.79 billion.

Revenue contribution from the Malaysia and Indonesia operations was lower, though partly offset by improved performance from the Philippines, the group said in a bourse filing on Tuesday.

For the fourth quarter, VS Industry's net loss narrowed to RM21.96 million from RM33.04 million a year earlier, with revenue increasing 16.3% to RM998.64 million from RM858.79 million thanks to higher sales orders, despite higher impairment loss on plant and equipment amounting to RM39.7 million.

No dividend was declared for the quarter.

In a press release, managing director Datuk S Y Gan said the group expects customer orders to remain steady in the coming quarter, supported by festive-season demand and new model roll-outs, while ongoing cost controls and efficiency measures are aimed at sustaining margins.

“The group continues to actively explore opportunities beyond its core consumer electronics exposure to diversify its revenue base,” Gan added.

In the Philippines, VS Industry said its operations continued to make progress with higher utilisation rate as additional models entered production.

Nonetheless, the group remains focused on lean production, stringent cost control and improving operational efficiency, supported by a solid balance sheet and healthy cash position.

As at end-July, the group has cash and cash equivalents of RM662.9 million against loans and borrowings of RM621.2 million.

Founded in 1982, VS Industry was listed on the Main Market of Bursa Malaysia in 1998. The group provides end-to-end manufacturing solutions to prominent global brands. These brands span household appliances, consumer electronics and computing sectors.

Shares of VS Industry closed half a sen, or 2.08% lower, at 23.5 sen on Tuesday, valuing the group at RM927.7 million. The counter has declined more than 59% over the past one year.