JBB BUILDERS (01903) Fa Profit Alert expects annual shareholders' losses to be no more than 1 million ringgit, year-on-year profit and loss

According to Zhitong Finance App, JBB BUILDERS (01903) issued an announcement. The Group expects to obtain no more than 1 million ringgit in losses attributable to the Company's owners for the year ending June 30, 2026, while the Group will obtain about 1.3 million ringgit in profit attributable to the Company's owners for the year ending June 30, 2025.

According to the information currently available to the Company, the Board believes that the above anticipated losses are mainly attributable to the combined effects of the following factors:

Revenue for the year ended June 30, 2026 decreased compared to the year ended June 30, 2025 due to: (i) operational challenges caused by the depth of the construction site and extreme space limitations, and the suspension of a contract for about 1.5 months due to an investigation by the competent authorities in response to an external incident, which reduced the total amount of gravel transportation generated by the Singapore maritime transport contract, which in turn led to a decrease in overall delivery volume; (ii) due to rising fuel prices and shortages in fuel supply, the progress of the project slowed down, leading to a slowdown in project progress reduction; and (iii) a number of contracts have been completed, which contributed part of the revenue for the year ended June 30, 2025, but this impact was partially offset by an increase in the amount of work completed in building and infrastructure engineering contracts;

The gross profit for the year ended June 30, 2026 decreased compared to the year ended June 30, 2025, mainly due to the aforementioned reduction in revenue and additional extrabudgetary costs for ongoing projects;

Other income for the year ended June 30, 2026 decreased compared to the year ended June 30, 2025, mainly due to: (i) a decrease in the number of voyages and unit prices in the year ended June 30, 2026, which led to a decrease in the revenue of subcontractors and suppliers in arranging maritime transport related activities in the site area; (ii) a decrease in time deposits held in banks led to a decrease in interest income from the Group's deposits in banks in Malaysia for the year ended June 30, 2026; and (iii) a decrease in interest income from a customer's trade receivables ;

Expected credit loss provisions for trade accounts receivable and contract assets have been reduced for the year ended June 30, 2026, mainly due to reduced trade receivables and contract asset balances due to reduced earnings and improved receipt conditions compared to the year ended June 30, 2025, and the net impact of the inability of some customers to fulfill installment repayment plans. As a result, impairment losses on trade accounts receivable and contract assets were confirmed for the year ended June 30, 2025 impairment losses on assets; and

General and administrative expenses for the year ended June 30, 2026 increased compared to the year ended June 30, 2025, mainly due to: (i) increased professional fees paid in connection with the potential acquisition of a company incorporated under the laws of the People's Republic of China; (ii) increased bank fees; (iii) increased employee salaries and related retirement benefits; and (iv) reduced stamp duty and commissions from the sale of deposits paid in connection with the acquisition of investment properties.