GCCP Resources Limited: Q3 2025 Financial Analysis and Investor Insights

GCCP Resources Limited, a Cayman Islands-incorporated company listed on the Singapore Exchange Catalist board, has released its unaudited financial results for the third quarter and nine-month period ended 30 September 2025. The company is primarily engaged in the quarrying, processing, and sale of limestone and marble in Malaysia. This review provides a comprehensive analysis of the key financials, performance trends, and notable events for investors.

Key Financial Metrics & Performance Comparison

Historical Performance Trends

• Revenue: The group saw a YoY increase of 41% in revenue for the nine-month period, driven by increased sales of marble blocks and ongoing business transformation efforts.
• Profitability: Although still loss-making, net loss narrowed by 43% YoY for the nine-month period, indicating improving cost management and operational discipline.
• Gross Margin: Gross loss margin improved both quarter-on-quarter and year-on-year, attributed to more active management of production costs and alignment of fixed costs with production needs.

Balance Sheet and Cash Flow Highlights

• Net Asset Value: Group NAV per share remained flat at MYR 0.03 as at 30 September 2025, with company NAV per share at MYR 0.06, reflecting a stable equity base despite continued losses.
• Liquidity Position: The group reduced its net current liabilities from MYR 12.5 million at end-2024 to MYR 5.8 million, mainly due to new share placement proceeds and increased receivables. Cash and short-term deposits stood at MYR 590,000, a significant improvement from MYR 90,000 at end-2024.
• Cash Flow: Net operating cash outflow for 9M 2025 was MYR 2.9 million, mainly due to increased receivables and inventories. Investing activities generated a small net inflow due to asset sales, while financing activities brought in MYR 3.2 million, primarily from a private placement and director advances.

Share Capital Movements and Dilution

• A placement of 176.4 million new shares was completed in Q1 2025, increasing the issued share base (excluding treasury shares) from 1.36 billion to 1.53 billion shares. This resulted in dilution for existing shareholders, though the placement improved the group’s liquidity and reduced net current liabilities.
• The company continues to hold 23.99 million treasury shares, representing 1.56% of share capital.

Dividends

• No dividend has been declared or recommended for Q3 2025 or the nine months to 30 September 2025, consistent with the prior periods. The company remains loss-making and is prioritizing liquidity and business transformation.

Directors’ Remuneration

• For Q3 2025, directors received a total of MYR 197,000 (salaries and fees), down from MYR 312,000 in Q3 2024, reflecting tighter cost controls.

Exceptional Items & Asset Valuation

• The group booked a MYR 1.045 million gain on disposal of property, plant, and equipment in 9M 2025, boosting other income.
• Impairment reviews were conducted for both property, plant, and equipment and investments in subsidiaries. No further impairments were deemed necessary as recoverable amounts exceeded carrying values.

Outstanding Audit Issues and Going Concern

• The company’s FY2024 audit received a disclaimer of opinion due to uncertainties over going concern and asset valuations. The board asserts that ongoing revenue, stakeholder support, and cost control should maintain the group’s viability for at least the next 12 months. However, the audit issues remain unresolved and are tied to the appropriateness of going concern assumptions.

Business Developments and Outlook

• The group is expanding its marble business and launching a new pink marble product, which has attracted market attention. It is also exploring the commercialization of marble waste for use in the plantation industry, potentially opening up a new revenue stream.
• No major new developments, acquisitions, or divestments occurred in Q3 2025. Mining activities continued at existing quarry faces with limited new capital expenditure.

Chairman’s Statement

“In 3QFY2025, the Group continued to expand its marble supply to the domestic market in Malaysia through collaborating with several renowned designers and contractors. The Group’s introduction of its pink-colored marble has gradually gained market attention and is expected to commence supply in the coming quarters. Further updates will be provided as and when material developments occur…
The Board is of the opinion that the Group is able to operate as a going concern and able to meet its obligations as they fall due and the Group’s working capital is sufficient to meet its present requirements and for the next twelve months.”

The tone is cautiously optimistic, with management highlighting ongoing transformation and new business opportunities while acknowledging the challenges and financial constraints.

Conclusion and Investor Recommendations

Overall Assessment: GCCP Resources Limited continues to face operating losses, but there has been significant YoY improvement in both revenue and net loss, indicating that cost management and business transformation initiatives are starting to take effect. The company’s liquidity position has improved due to share placement, but net current liabilities remain high, and the audit disclaimer on going concern is a material red flag. The industry outlook is modestly positive, with new marble products and potential expansion into plantation-related products.

• If you currently hold GCCP shares: Caution is advised. While the company is demonstrating improved financial discipline and seeking new revenue streams, the going concern risk and continued operating losses mean that the stock remains speculative. Consider maintaining a small position only if you have high risk tolerance and a long-term view, but reassess your holding if there is no further progress on profitability or audit resolution in the coming quarters.
• If you are not currently holding GCCP shares: Wait-and-see. The stock does not presently offer an attractive risk-reward profile for new investors, given unresolved audit issues and lack of profitability. Monitor for sustained revenue growth, successful product launches, and resolution of audit concerns before considering entry.

Disclaimer: This analysis is strictly for informational purposes and does not constitute investment advice. All recommendations are based solely on publicly reported financial data as of 30 September 2025. Investors should conduct their own due diligence and consider their own risk profile before making any investment decisions.

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