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KUALA LUMPUR (Feb 3): Sunview Group Bhd has clarified that there was no discrepancy in its contract cost position, following a sharp reversal in its financial position, which saw a massive swing between its unaudited and audited figures.
The solar solutions provider reported an unaudited net profit of RM7.86 million for the 18 months ended Sept 30, 2025 (FY2025), but this was subsequently revised to an audited net loss of RM70.29 million — a whopping deviation of 994%.
In a filing with the stock exchange last Friday, the group said the significant variance was primarily attributed to various adjustments made during the audit process to account for the loss allowance on trade and other receivables, impairment loss on goodwill as well as other adjustments.
Responding to a “Frankly Speaking” column titled “Sunview swings from black to red” published in The Edge Malaysia over the weekend, Sunview said RM2 million had been expensed for various projects that were ultimately not awarded.
“Management adopted a prudent approach in expensing it off, given the absence of certainty of award over a period of more than one year,” it said in a statement on Monday.
Sunview also highlighted that the RM75 million impairment recognised in FY2025 relates to works completed under the Large Scale Solar 4 (LSS4) project for PKNP Reneuco Suria Sdn Bhd, a 95%-owned subsidiary of energy and utilities construction outfit Reneuco Bhd.
“As the impairment reflects sunk costs incurred over the past two years, it does not impact the group’s current cash flow position. These costs were previously capitalised as contract assets as the underlying works had been performed, with progressive billings raised and payments received from the customer up to the point when they were classified under PN17 [Practice Note 17].
“Accordingly, these were driven by prudence in accounting measures and subsequent customer financial conditions, and were not attributable to projects being unsecured, deficiencies in project execution or weak project assessments,” it explained.
In June 2022, Sunview was initially awarded an engineering, procurement, construction and commissioning (EPCC) subcontract by Reneuco’s unit Reneuco Engineering Sdn Bhd. In July 2023, the full EPCC contract for the development of a solar photovoltaic plant, valued at RM179.5 million, was novated to Sunview.
While Sunview successfully executed the EPCC works and achieved progressive completion of the project as at April 2025, certification for progress claims has not been completed.
Reneuco fell into PN17 status in February 2024 after its auditors issued a disclaimer of opinion on the company's unaudited consolidated financial statements for the period ended Sept 30, 2023. Receivers and managers were subsequently appointed to take control of the assets of PKNP Reneuco Suria, which had failed to meet its obligations to its creditors.
Sunview said it has opted to submit an offer to participate in the tender sale by the receivers and managers of PKNP Reneuco Suria to buy over the partially completed solar plant to unlock its value.
“Management views this as a highly strategic initiative that will expand the group’s solar asset portfolio and generate recurring, predictable income. The group will leverage existing expertise and operational experience to maximise project efficiency and returns and strengthen the group’s long-term sustainability and earnings visibility, reinforcing its market position in the renewable energy sector,” it added.
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