Dagang NeXchange Bhd (DNeX) reported a net loss of RM79 million for the first quarter ended March 31, 2025 (1Q25), a sharp reversal from the RM14.5 million net profit recorded in the same quarter last year.
The loss marks a 644.83% decline year-on-year (YoY) was due to higher tax expense of RM115.65 million in 1Q25, due to deferred tax of RM107.56 million. Deferred tax liabilities rose to RM868.16 million from RM766.10 million.
The increase in deferred tax liabilities was mainly due to the UK Energy Profits Levy (EPL), after a bill extending the levy from March 31, 2028, to March 31, 2030, was effectively passed on March 3, DNeX said in its bourse filing on May 29.
The company's quarterly revenue, meanwhile, fell 4.19% to RM296.83 million from RM309.82 million in 1Q24.
The weaker bottom line was offset by a strong performance in the Technology segment, which saw revenue surge 30% YoY to RM178.7 million, up from RM138 million in 1Q24. The IT segment also contributed positively, with revenue inching up to RM39.3 million, driven by continued progress in existing projects and steady contributions from the National Single Window for Trade Facilitation.
Commenting on the financial results, DNeX Group Chief Financial Officer Vinie Chong Pui Ling said the company is undergoing a strategic evolution, expanding from traditional digital transformation into becoming a leading provider of artificial intelligence (AI)-enabled sovereign cloud infrastructure.
"These initiatives reflect DNeX's push to deliver cloud-first, AI-driven digital solutions across both public and private sectors," she added.
Meanwhile, Chong also revealed that its 60%-owned unit Silterra Malaysia Sdn Bhd is expanding its capabilities in silicon photonics, an enabling technology for high-speed, energy-efficient data transmission in hyperscale data centres.
"This innovation is crucial for next-generation AI and cloud computing applications, providing faster data processing with significantly lower power consumption," she said.
Despite the quarterly loss, Chong said DNeX remains on solid financial footing, with a net cash position of RM541.9 million, total assets of RM4.2 billion, and total equity of RM2.1 billion as of March 31, 2025.
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