PERFORMANCE REVIEW GROUP FINANCIAL PERFORMANCE FY2025 marked a year of strategic consolidation for the Group as it undertook proactive measures to streamline its portfolio, strengthen balance sheet quality and enhance operational discipline amid a challenging operating environment. For the financial year ended 31 December 2025 (“FY2025”), the Group recorded Revenue of RM1.0 billion, compared to RM1.2 billion in the preceding year. The decline was primarily attributable to softer crude oil prices and lower lifting volumes in the Energy segment, as well as the divestment of the loss-making Subsea Telco business within the Information Technology segment. The loss reported in FY2025 was driven largely by impairment charges recognised during the year. Total impairments amounted to RM506.4 million, comprising RM306.2 million in the Energy segment and RM200.2 million in the Semiconductor segment. These charges arose from a reassessment of asset carrying values in light of market conditions, operating performance and future expectations. They relate mainly to fair value adjustments recognised on acquisition rather than a decline in underlying operations. Excluding the impairment provides a clearer view of operating performance. On this basis, the Group reduced its LBT to RM52.5 million compared to LBT of RM78.4 million in FY2024. Margin improvements, cost control measures and a more focused operating structure contributed to this outcome. CASH FLOW AND FINANCIAL POSITION Operating activities generated positive cash flow during the year, underscoring the strong cash-generating capacity of the Group’s core businesses. The Group’s financial position was impacted by impairment charges recognised during the year, which reduced asset values and shareholders’ equity. These non-cash adjustments reflect revised asset valuations in line with current operating and market conditions. Liquidity remains supported by available funding facilities. The RM3.0 billion Sukuk Wakalah programme, lodged in March 2026, is expected to enhance financial flexibility to support ongoing operational requirements and strategic initiatives. CAPITAL MANAGEMENT AND COMMITMENTS The Group maintained a disciplined approach to capital management throughout the year, focusing on preserving financial flexibility, supporting core operations, and aligning capital deployment with strategic priorities. Capital commitments were primarily directed towards sustaining and enhancing operational capabilities, particularly within the Semiconductor segment and the development of energy assets in Malaysia. Investments were also made to strengthen AI capabilities within the IT segment, positioning the Group to play a pivotal role in Malaysia’s digital transformation by delivering high-impact solutions across key sectors of the economy. Overall, the steps taken during the year have positioned the Group on a more resilient footing, with improved financial discipline and a stronger foundation to support sustainable long-term growth. 53 OPERATIONAL REVIEW SUSTAINABILITY STATEMENT GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION INTELLIGENCE POWERING
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