Solar District Cooling Group Bhd’s (SDCG) profit after tax (PAT) plunged 80% year-on-year to RM0.2 million in 1H26 from RM1.1 million, despite revenue surging 83.8% to RM17.84 million, as higher staff costs and professional fees weighed on earnings.
The stronger top line was mainly driven by increased contributions from its Variable Refrigerant Flow (VRF) project, offsetting softer revenue from parts of its Building Management System (BMS) business.
For 2Q26, revenue more than doubled to RM10.63 million from RM4.93 million, while PAT rose 67% to RM0.7 million from RM0.4 million a year earlier. The improvement was supported by lower unrealised foreign exchange losses amid reduced US dollar volatility.
Managing Director Edison Kong said the group continued to see stronger execution momentum from BMS upgrading works and progressive delivery of its VRF project, while expanding beyond project-based engineering income.
SDCG has also begun generating recurring revenue under its 21-year solar photovoltaic Power Purchase Agreement model, following the completion of several installations and commencement of electricity supply to customers.
The group is progressing a VRF contract worth more than RM17 million, which is expected to be substantially completed within FY26, while its partnership with Solarvest Holdings Berhad is expected to broaden access to green energy opportunities.
As at June 30, SDCG held RM33.2 million in cash and cash equivalents against borrowings of just RM0.2 million, providing financial flexibility for ongoing projects and expansion.
