Cyberjaya, 28 August 2025 - Dagang NeXchange Berhad (“DNeX” or “the Group”) has announced improved financial results for the second quarter ended 30 June 2025 (“2QFY2025”), with net profit attributable to shareholders rising to RM19.9 million from RM5.0 million in the same period last year.

The Group recorded a profit before tax (“PBT”) of RM9.0 million, a turnaround from a loss before tax (“LBT”) of RM16.4 million in 2QFY2024. This recovery was underpinned by stronger contributions from the Information Technology (“IT”) and Energy segments.

The IT segment delivered a strong turnaround with PBT of RM15.5 million compared to just RM0.2 million in 2QFY2024, primarily driven by lower operating expenses arising from effective cost optimisation. Revenue for the segment was RM40.4 million compared with RM49.9 million in the same period last year, reflecting the divestment of the Subsea Telco business earlier this year.

The Energy segment also posted a robust performance, more than doubling its PBT to RM24.9 million from RM12.0 million in the same period last year. This was supported by unrealised foreign exchange gains and lower finance costs following the full settlement of secured bonds. Revenue came in at RM66.9 million compared with RM91.9 million previously, due mainly to lower crude oil prices and reduced lifting volumes ahead of planned maintenance. Production volume, however, rose 14%, with the excess to be lifted in the following quarter.

Meanwhile, the Semiconductor segment reported widened LBT of RM28.9 million compared to RM18.7 million a year earlier. The weaker performance was largely due to an unexpected power outage in May 2025 impacting Kulim Hi-Tech Park that temporarily disrupted SilTerra’s operations. Segment revenue was stable at RM155.3 million against RM156.2 million in 2QFY2024, as lower shipment volume were offset by higher average selling prices. The segment also saw strong momentum in emerging technologies, which contributed 45% of the revenue mix, up from 20% in the prior year.

During the quarter, the Group reported a RM7.1 million reversal of deferred tax liabilities related to the UK Energy Profits Levy Scheme (“EPL”). For the six months ended 30 June 2025, cumulative deferred tax liabilities amounted to RM100.7 million were recognised following the UK government’s extension of the EPL by two years to March 2030. These non-cash accounting adjustments are expected to unwind over time, resulting in future tax credits.

Commenting on the results, Vinie Chong Pui Ling, Group Chief Financial Officer of DNeX, said “We are sustaining profitability momentum by leveraging a leaner capital structure and maximising operational performance. Our strategic priorities are focused on strengthening long-term profitability and creating sustainable value across all business segments.”

“Looking ahead, DNeX remains focused on enhancing production capacity, maintaining high utilisation rates, and improving operational efficiency in its semiconductor business segment. Demand remains supported by rapid adoption of generative artificial intelligence, electric vehicles, renewable energy and other high-growth sectors. At the same time, the Group is actively pursuing strategic partnerships to capture opportunities arising from supply chain realignments and to navigate the evolving trade and geopolitical landscape.”

“The Energy segment will continue to prioritise operational efficiency, cost discipline, and portfolio optimisation. In the UK, Ping Petroleum Limited remains focused on maximising production from the Anasuria Cluster, while in Malaysia, the Group is progressing towards first oil from the Abu Cluster. Our downstream subsidiary, OGPC Group Sdn Bhd, continues to support Malaysia’s energy value chain by delivering integrated solutions across the oil and gas, petrochemical and retail downstream segments,” said Vinie Chong.

In the IT segment, DNeX aims to play a pivotal role in Malaysia's digital transformation. The five-year extension of the integrated Government Financial and Management System (“iGFMAS”) contract, combined with strategic partnerships such as Google Cloud, will strengthen DNeX’s position as a leading provider of AI-enabled sovereign cloud infrastructure, targeting high-trust industries such as government, financial services and national security.

As at 30 June 2025, the Group maintains a strong net cash position with a total cash balance of RM533.1 million, total asset of RM4.1 billion and total equity of RM2.1 billion.