Key Highlights:

• Healthy order book: Maintained an order book value of RM277 million as of 30 September 2024, ensuring strong revenue visibility.

• Renewable energy milestone: Successfully achieved commercial operation of the 37.7MWp large-scale solar farm in Kuala Langat, Selangor on 8 November 2024, now contributing to both revenue and profit generation.

• Growing demand for CLQs: Anticipates a surge in demand for high-quality Centralised Labour Quarters driven by increasing pressure on companies to comply with the Employees' Minimum Standards of Housing, Accommodations, and Amenities Act 1990 (Act 446).

KUALA LUMPUR, 27 November 2024 – Earthworks and civil engineering services specialist, Advancecon Holdings Berhad (前进控股有限公司) (“ADVCON” or “the Group”) today announced its third-quarter results for the financial year ending 31 December 2024 (“Q3 FYE2024”).

For Q3 FYE2024, ADVCON recorded a Profit Attributable to Owners of the Company of RM0.004 million, marking a significant turnaround from the RM0.61 million loss in the same quarter last year, representing an impressive 101% increase year-on-year. Concurrently, its Profit Before Tax also grew by RM0.09 million or approximately 26% to RM0.45 million. Despite this improvement, the Group reported revenue of RM95.81 million, a decline of RM26.84 million or 22% compared to last year.

Commenting on its performance, Group Chief Executive Officer Dato’ Phum Ang Kia (“拿督潘红仔”) said, “Our revenue for the quarter reflected a temporary dip due to the completion of several key projects, leading to fewer ongoing projects during this period. However, our Construction business segment remains a robust growth driver, contributing RM40.2 million, or 41.9% of the Group's revenue, for the quarter under review.”

“At the same time, we are excited about the growth potential of our other business segments, particularly the green energy sector. The recent commercial operation of our large-scale solar photovoltaic farm on 8 November marks a significant milestone, as it is now actively generating both revenue and profit for the Group. Looking ahead, we aim to expand our renewable energy portfolio to 50MWp in the coming year and are exploring other green energy opportunities, including hydro projects, to further solidify our position in the sustainable energy space,” added Dato’ Phum.

The Group’s Development business segment which focuses on the construction of centralised labour quarters (“CLQs”) continues to advance steadily. Following the successful completion of Blocks A and B at Asrama Murni Jelapang, Ipoh, the Group is set to refurbish two additional blocks, C and D, to meet the growing demand. With increasing pressure on companies to comply with the Employees' Minimum Standards of Housing, Accommodations, and Amenities Act 1990 (Act 446), the Group anticipates a surge in demand for high-quality CLQs, further strengthening its position as a key provider in this essential market.

For the nine months ended 30 September 2024 (“9M FYE 2024”), the Group recorded revenue of RM282.71 million, reflecting a decline of approximately RM70.40 million or 20% compared to the previous year. This performance is attributable to the timing of project completions and fewer ongoing projects during the period. Consequently, the Group reported a Loss After Taxation of RM19.06 million and a Loss Before Taxation of RM18.81 million.

Despite these challenges, the Group remains focused on strengthening its core business segments while seizing opportunities in the renewable energy and development sectors. By leveraging its expertise and prioritising sustainable growth initiatives, the Group is confident in its ability to drive long-term value creation and profitability for its stakeholders.