Fiamma property division swings to loss in 1Q, shareholders greenlight RM106.87m financing for KLCC 2 Residence project

PETALING JAYA (May 19): Fiamma Holdings Bhd's property development segment slipped into a loss before tax of RM1.02 million in the first quarter ended March 31, reversing from a profit of RM0.80 million in the corresponding period a year earlier, as segment revenue declined to RM16.02 million from RM19.25 million previously.

According to its Bursa announcement, the segment's revenue was supported by progressive billings from the Amberwood mixed development project in Johor Bahru, alongside ongoing contributions from the East Parc and Vida Heights projects.

At the group level, Fiamma posted revenue of RM104.36 million for the quarter, up 5.9% from RM98.51 million a year earlier, driven by an 11.6% increase in its core trading and services segment to RM87.00 million. 

Group profit before tax declined to RM13.41 million from RM41.19 million in the year-ago quarter, largely due to the absence of a one-off RM23.22 million gain from the equity dilution of subsidiaries Aricia Sdn Bhd and Dawn Land Sdn Bhd recorded in the first quarter of 2025. 

Net profit attributable to shareholders fell to RM10.75 million from RM36.19 million.

On its property strategy, Fiamma is advancing a capital-light model by transitioning property subsidiaries from wholly-owned entities into 30%-held associates. 

The proposed joint venture involving Sinaran Urusjuta Sdn Bhd, under which BKG Development Sdn Bhd — a wholly-owned subsidiary of Chin Hin Group Property Bhd — will subscribe for a 70% stake, marks the third such transition within the group. 

Sinaran Urusjuta owns a 1.88-acre leasehold commercial land parcel near Kuala Lumpur City Centre earmarked for KLCC 2 Residence, a mixed-use development with a gross development value of RM1.03 billion comprising 924 serviced apartment units, five retail units and a three-storey facility podium. The project is targeted for completion by the first quarter of 2032.

At an EGM held today, shareholders approved four resolutions advancing Fiamma's property restructuring strategy. 

These included the ratification of financial assistance provided to Dawn Land Sdn Bhd amounting to RM45.96 million and Aricia Sdn Bhd amounting to RM39.56 million, the proposed variation to the utilisation of proceeds from the RM153.48 million repayment sum, the proposed joint venture with BKG Development involving Sinaran Urusjuta for the KLCC 2 Residence development, and the proposed provision of financial assistance of up to RM106.87 million to Sinaran Urusjuta for the project. All four resolutions were passed with approximately 99.99% of votes in favour.

The group is also channelling RM13 million — reallocated from office renovation costs — into funding the Amberwood mixed development project. 

Separately, Fiamma's associates Dawn Land and Aricia, which are developing projects in KL, are expected to contribute to group profitability going forward through the associate earnings line.

As at March 31,, the group held cash and cash equivalents of RM139.55 million against total borrowings of RM90.66 million, translating to a net cash position of approximately RM48.9 million. Net assets per share rose to RM1.49 from RM1.47 at end-2025. 

At the group's 43rd AGM also held today, all resolutions were passed, including the renewal of the recurrent related party transactions mandate and the share buy-back authority.

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