Registration No. 200301030845 (633265-K) - 74 - 5. Right-of-Use Assets (Cont’d) 2026 2025 RM RM Leasehold land At cost At 1 July - 842,459 Disposal - (842,459) At 30 June - - Accumulated depreciation At 1 July - 122,982 Charge for the financial year - 5,673 Disposal - (128,655) At 30 June - - Carrying amount At 30 June - - Company The Group leases machinery and equipment, motor vehicles, office and apartment, leasehold land and properties. Leasehold properties and industrial land are pledged as securities for bank borrowings as disclosed in Note 22. The aggregate additional costs for the right-of-use assets of the Group during the financial year acquired under the lease liabilities are RM6,197,294 (2025: RM1,498,501) of which RM5,692,775 (2025: RM1,498,501) was financed by lease liabilities (Note 21) and RM504,519 (2025: nil) was paid in cash. As at 30 June 2026, the remaining lease periods of the leasehold properties and industrial land of the Group are 47 years and 79 years, which will expire in 2073 and 2105 respectively. The Group has land use right over a plot of state-owned land in the People’s Republic of China (“PRC”) where the Group’s PRC manufacturing and storage reside. The land use right is not transferrable and has a remaining tenure of 32 years (2025: 33 years). The Group’s land use right had been pledged as securities for bank borrowings as disclosed in Note 22. DESTINI BERHAD 187 ANNUAL REPORT 2026
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