KUALA LUMPUR (Feb 3): Sunview Group Bhd has addressed concerns over a dramatic revision to its FY2025 financial results, clarifying that the swing from profit to loss was driven by conservative audit adjustments rather than weaknesses in project execution or contract security.
The solar solutions and engineering group had earlier reported an unaudited net profit of RM7.86 million for the 18-month period ended Sept 30, 2025. Following the completion of its audit, the figures were restated to a net loss of RM70.29 million, reflecting a substantial variance arising mainly from impairment and provisioning adjustments.
In its latest filing with Bursa Malaysia, Sunview said the revisions were primarily due to loss allowances on trade and other receivables, impairment of goodwill, and other audit-related accounting adjustments undertaken during finalisation of the accounts.
Responding to a commentary published by The Edge Malaysia, the group disclosed that about RM2 million had been written off for costs related to projects that were not eventually awarded. Management said the write-off reflected a prudent accounting approach, given the prolonged uncertainty surrounding those projects.
A key contributor to the adjustment was a RM75 million impairment associated with work performed under the Large Scale Solar 4 (LSS4) project for PKNP Reneuco Suria Sdn Bhd, a subsidiary of Reneuco Bhd. Sunview emphasised that the impairment represents sunk costs incurred over the past two years and does not affect the group’s current cash flow position.
The group explained that these costs had previously been recognised as contract assets, as construction works were carried out and progressive billings were raised and paid before the customer was classified under PN17. The impairment, it said, was driven by accounting prudence and the customer’s subsequent financial difficulties, rather than shortcomings in project delivery or assessment.
Sunview was initially appointed as an EPCC subcontractor in mid-2022, before the full RM179.5 million EPCC contract for the solar photovoltaic plant was novated to the group in July 2023. Construction progressed steadily, with works largely completed by April 2025, although certification of progress claims has yet to be finalised.
Reneuco was classified as a PN17 entity in February 2024 after its auditors issued a disclaimer of opinion on its financial statements. Receivers and managers were later appointed over PKNP Reneuco Suria after it failed to meet creditor obligations.
Looking ahead, Sunview said it has submitted an offer to participate in the tender sale by the receivers to acquire the partially completed solar plant. Management views the move as a strategic initiative to unlock asset value and generate stable, recurring income.
The group noted that this approach aligns with broader market trends, where investors increasingly favour long-term infrastructure-style assets, particularly those supporting energy needs in key commercial property markets in KL and Selangor. Demand remains strong across industrial land in Selangor, factories in Puchong, industrial property in the Subang area, and office space in Bukit Jalil, where reliable energy infrastructure is critical to tenant operations.
Sunview added that it plans to leverage its technical expertise and operational experience to enhance project efficiency, strengthen earnings visibility, and reinforce its long-term position in Malaysia’s renewable energy and infrastructure ecosystem.
Singapore