GCEO IN FOCUS NAVIGATING FY2025 PERFORMANCE REALITIES For FY2025, DNeX delivered a resilient operating performance despite challenges posed by the cyclical nature of its industries in which the Group operates. The Group achieved Revenue of RM1.0 billion, down from RM1.2 billion in the previous financial year due to lower production contributions from the Energy segment, operational disruptions affecting semiconductor output and reduced project‑based revenue following the completion of major project cycles within the IT segment. The comparison was also affected by the absence of contributions following the divestment of the Subsea Telco business. The Group recorded a Loss Before Tax (“LBT”) of RM558.9 million and a Loss After Tax (“LAT”) of RM 465.5 million. The results were mainly impacted by a total impairment of RM506.4 million recognised across the Semiconductor and Energy segments, primarily relating to fair value adjustments, alongside operational disruptions during the year. Excluding these adjustments, Loss Attributable to Owners of the Company (“LATAMI”) showed year-on-year (“YoY”) improvement on a normalised basis as core operations performed better. Earnings Before Interest, Taxes, Depreciation and Amortisation (“EBITDA”) remained positive as the Group generated operating cashflow despite accounting impairment. Several operational factors influenced performance during the year. Energy production was affected by lower lifting volumes and fieldlevel operational issues. Temporary power disruptions at the Kulim Hi-Tech Park and softer semiconductor market conditions affected Semiconductor output and shipments while IT revenue declined following the completion of major government projects. These movements were driven by normal business and industry conditions rather than weaknesses in the Group’s core operations. Nevertheless, sustained demand in the Semiconductor segment, continued production in the Energy business and recurring income from the IT segment provided stability throughout the year. FY2025 marked a year of important financial adjustments that improved transparency and provided the Group with an edge to compete more effectively. REINFORCING FINANCIAL DISCIPLINE AND PORTFOLIO FOCUS During FY2025, decisive financial actions were implemented to ensure DNeX operated on a more sustainable and commercially sound foundation. In FY2025, the Group shifted its focus towards tighter cost control, portfolio consolidation and directing capital allocation towards the core Semiconductor, Energy and IT businesses. The Group’s efforts to rationalise its business portfolio included the divestment of the Subsea Telco business, an exit from a non-core capital-intensive activity that allows resources to be concentrated on the Group’s main operations. These actions strengthened income consistency by concentrating the Group’s resources on businesses with stronger operational control and more predictable revenue streams, particularly within the IT segment. Alongside this, we placed strong emphasis on cost efficiency and aligning expenditure more closely with business priorities. As a result, a more robust Group oversight has been established, supported by selective capital deployment to position DNeX with improved financial stability and stronger operating prospects as we move into the next phase. 41 OPERATIONAL REVIEW SUSTAINABILITY STATEMENT GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION INTELLIGENCE POWERING
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