• Groupwide-Level Strategic Direction - Positioning DNeX Across the AI Infrastructure Stack DNeX’s three core businesses are often viewed as three disconnected segments operating through separate industry cycles. However, when seen through the lens of the AI infrastructure buildout, they form a coherent portfolio positioned at three of the most capitalconstrained layers of the global AI value chain: compute, power and sovereign deployment. The FY2025 results reflect near-term cyclical pressure in the Semiconductor and Energy segments, partly offset by a profit turnaround in IT. Yet the strategic significance of the portfolio lies in its cross-layer exposure to a structural demand wave expected to persist well beyond current industry cycles. The underlying evidence from FY2025 already points in this direction. Emerging Technology products rose to approximately 43% of Semiconductor segment revenue, up from 23% in FY2024, while the blended average selling price increased by 33%. The IT segment delivered a turnaround to a PBT of RM58.2 million, driven by recurring revenue from the NSW and iGFMAS platforms, alongside the formation of Gamuda DNeX Cloud Sdn. Bhd. (“Gamuda DNeX Cloud”) as a sovereign cloud joint venture. The repositioning of the Energy segment toward Malaysian upstream assets such as Abu, Beta and Meranti, aligns production capacity with a domestic gas and power demand curve increasingly shaped by data centre offtake in Johor, Cyberjaya and Kulim. STRATEGIC REVIEW The reported FY2025 LBT of RM558.9 million includes RM506.4 million in impairments, comprising RM200.2 million from the Semiconductor segment and RM306.2 million from the Energy segment. Excluding these items, the underlying LBT narrowed to RM52.5 million. These impairments reflect a reassessment of fair values recognised on acquisition and do not alter the forward economics of the Group’s AI-adjacent positioning. Layer 1: Compute: SilTerra as a Specialty Foundry for AI-Adjacent Silicon The global semiconductor industry is becoming increasingly interdependent across advanced and specialty domains. Lagging-edge or mature logic nodes supporting AI accelerators remain concentrated in a handful of foundries and geographies. At the same time, specialty silicon including power management ICs, analog and mixed-signal, RF, highvoltage BCD, MEMS and sensors is experiencing sustained structural demand growth, driven by systemlevel expansion rather than wafer volume alone. This reflects a fundamental system requirement: every AI server, optical transceiver, data-centre cooling node and edge device requires multiple specialty components per unit of compute, reinforcing the dependence between advanced and specialty technologies. SilTerra’s 200 mm Specialty Platform Sits Precisely in this Layer of the Value Chain FY2025 performance data supports the thesis. The blended average selling price rose 33%, and Emerging Technology products reached approximately 43% of revenue even as shipment volumes declined during a cyclical adjustment phase and a disruption following the May 2025 power outage at Kulim Hi-Tech Park. The underlying product mix is improving in value faster than shipment volume, and the shift is toward applications tied directly to the AI buildout: peripheral silicon for AI servers, power delivery components for data center infrastructure, industrial automation solutions for hyperscale deployment and power semiconductors for electric mobility. 47 OPERATIONAL REVIEW SUSTAINABILITY STATEMENT GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION INTELLIGENCE POWERING
RkJQdWJsaXNoZXIy NDgzMzc=