ARKA BERHAD — Interim / Quarterly Report 2026

May 19, 2026

BERHAD

Company No.: 197701005709 (36747-U)

(Incorporated in Malaysia)

UNAUDITED INTERIM FINANCIAL REPORT FOR THE FIRST QUARTER ENDED MARCH 31, 2026

Dated May 20, 2026

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CONTENTS

	PAGE
1) CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME	3
2) CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION	4–5
3) CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	6
4) CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS	7–8
5) NOTES TO THE INTERIM FINANCIAL REPORT
SECTION A : DISCLOSURE NOTES AS REQUIRED UNDER MFRS 134	9–12
SECTION B : DISCLOSURE NOTES AS REQUIRED UNDER BURSA MALAYSIA LISTING REQUIREMENTS	13–16

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Q r k a

BERHAD

Registration No.: 197701005709 (36747-U)

INTERIM FINANCIAL REPORT

For the First Quarter ended March 31, 2026

The Board of Directors is pleased to announce the Interim Financial Report on consolidated results of the Group for the first quarter ended March 31, 2026.

The figures have not been audited.

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

	INDIVIDUAL QUARTER		Changes (Amount/%)		CUMULATIVE QUARTER		Changes (Amount/%)
	Current Year Quarter Ended 31/3/26 RM'000	Preceding Year Quarter Ended 31/3/25 RM'000	RM'000	Change (Amount/%)	Current Year-To-Date Ended 31/3/26 RM'000	Preceding Year-To-Date Ended 31/3/25 RM'000	RM'000
Revenue	6,587	7,354	(767)	(10%)	6,587	7,354	(767)	(10%)
Operation loss before depreciation and finance cost	(364)	(853)	489	57%	(364)	(853)	489	57%
Depreciation & amortisation	(1,010)	(2,065)	1,055	51%	(1,010)	(2,065)	1,055	51%
Loss from operations	(1,374)	(2,918)	1,544	53%	(1,374)	(2,918)	1,544	53%
Finance cost	(70)	(317)	247	78%	(70)	(317)	247	78%
Share of profit of an associate	803	960	(157)	(16%)	803	960	(157)	(16%)
Loss before taxation	(641)	(2,275)	1,634	72%	(641)	(2,275)	1,634	72%
Income tax expense	-	-	-	NA	-	-	-	NA
Loss for the period	(641)	(2,275)	1,634	72%	(641)	(2,275)	1,634	72%
Other comprehensive (loss)/income: - Items that may be reclassified subsequently to profit or loss
- Exchange differences arising from translation of foreign operation	(11)	-	(11)	>(100%)	(11)	-	(11)	>(100%)
Total comprehensive loss for the financial period	(652)	(2,275)	1,623	71%	(652)	(2,275)	1,623	71%
Loss for the period attributable to:
Owners of the parent	(632)	(1,943)	1,311	67%	(632)	(1,943)	1,311	67%
Non-controlling interest	(9)	(332)	323	97%	(9)	(332)	323	97%
	(641)	(2,275)	1,634	72%	(641)	(2,275)	1,634	72%
Total comprehensive loss attributable to :
Owners of the Company	(643)	(1,943)	1,300	67%	(643)	(1,943)	1,300	67%
Non-controlling interest	(9)	(332)	323	97%	(9)	(332)	323	97%
	(652)	(2,275)	1,623	71%	(652)	(2,275)	1,623	71%
Loss per share attributable to owners of the parent:
- Basic (sen)	(0.96)	(2.97)	2.01	68%	(0.96)	(2.97)	2.01	68%
- Diluted (sen)	(0.96)	(2.95)	1.99	67%	(0.96)	(2.95)	1.99	67%

(The Condensed Consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the audited financial statements for the financial year ended December 31, 2025 and the accompanying explanatory notes attached to the Interim Financial Report)

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Qrka

BERHAD

Registration No.: 197701005709 (36747-U)

INTERIM FINANCIAL REPORT

For the First Quarter ended March 31, 2026

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

| | Unaudited
As At
31/3/26
RM'000 | Audited
As At
31/12/25
RM'000 |
| --- | --- | --- |
| ASSETS | | |
| Non-Current Assets | | |
| Property, plant and equipment | 3,827 | 4,048 |
| Right-of-use assets | 4,267 | 4,962 |
| Investment in associate | 40,022 | 39,219 |
| Deferred tax assets | 79 | 102 |
| | 48,195 | 48,331 |
| Current Assets | | |
| Inventories | 978 | 783 |
| Trade receivables | 6,596 | 7,774 |
| Contract assets | 455 | 154 |
| Other receivables | 2,563 | 2,555 |
| Tax recoverable | 125 | 235 |
| Fixed deposits with licensed banks | 5,785 | 5,785 |
| Cash and bank balances | 1,058 | 1,204 |
| | 17,560 | 18,490 |
| TOTAL ASSETS | 65,755 | 66,821 |
| EQUITY AND LIABILITIES | | |
| Share capital | 66,403 | 66,403 |
| Other Reserves | 578 | 589 |
| Accumulated Losses | (9,557) | (8,925) |
| Equity attributable to Owners of the Company | 57,424 | 58,067 |
| Non-Controlling Interest | (2,830) | (2,821) |
| Total Equity | 54,594 | 55,246 |

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Qrka

BERHAD

Registration No.: 197701005709 (36747-U)

INTERIM FINANCIAL REPORT

For the First Quarter ended March 31, 2026

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONT'D)

| | Unaudited
As At
31/3/26
RM'000 | Audited
As At
31/12/25
RM'000 |
| --- | --- | --- |
| Non-Current Liabilities | | |
| Lease liabilities | 1,050 | 1,181 |
| Borrowings | 762 | 927 |
| | 1,812 | 2,108 |
| Current Liabilities | | |
| Trade payables | 4,040 | 2,985 |
| Other payables | 2,404 | 3,062 |
| Lease liabilities | 2,091 | 2,696 |
| Borrowings | 814 | 724 |
| Tax payable | - | - |
| | 9,349 | 9,467 |
| Total Liabilities | 11,161 | 11,575 |
| TOTAL EQUITY AND LIABILITIES | 65,755 | 66,821 |
| Net assets per share attributable to Owners of the Company (RM) | 0.87 | 0.88 |

(The Condensed Consolidated Statement of Financial Position should be read in conjunction with the audited financial statements for the financial year ended December 31, 2025 and the accompanying explanatory notes attached to the Interim Financial Report)

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Q rka BERHAD

Registration No.: 197701005709 (36747-U)

INTERIM FINANCIAL REPORT

For the First Quarter ended March 31, 2026

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
---Attributable to Owners of the Company---

	Non-distributable Other Reserves	Accumulated Losses	Total	Non-controlling Interests	Total Equity
Share Capital	RM'000	RM'000	RM'000	RM'000	RM'000
2026
At January 1, 2026	66,403	589	(8,925)	58,067	(2,821)
Total comprehensive loss for the financial period	-	(11)	(632)	(643)	(9)
At March 31, 2026	66,403	578	(9,557)	57,454	(2,830)
2025
At January 1, 2025	65,551	1,153	(9,621)	57,083	(1,986)
Issuance of shares pursuant to the ESGP	852	(852)	-	-	-
Employee share grant expenses	-	355	-	355	-
Total transactions with owners	852	(497)	-	355	-
Total comprehensive (loss)/profit for the financial year	-	(67)	696	629	(835)
At December 31, 2025	66,403	589	(8,925)	58,067	(2,821)

(The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the audited financial statements for the financial year ended December 31, 2025 and the accompanying explanatory notes attached to the Interim Financial Report)

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Q rka

BERHAD

Registration No.: 197701005709 (36747-U)

INTERIM FINANCIAL REPORT

For the First Quarter ended March 31, 2026

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

	Current Year-To-Date Ended 31/3/26 RM'000	Preceding Year 12 Months Ended 31/12/25 RM'000
CASH FLOWS FROM OPERATING ACTIVITIES
(Loss)/Profit before taxation	(641)	1,056
Adjustment for: -
Non-cash items	1,054	4,237
Interest expense	70	498
Interest income	(35)	(308)
Share of profit of an associate	(803)	(7,971)
Operating loss before working capital change	(355)	(2,488)
Changes in working capital: -
Net change in assets	674	(508)
Net change in liabilities	397	(1,190)
Cash generated from/(used in) operations	716	(4,186)
Income tax paid	-	(1,503)
Income tax refunded	-	208
Interest paid	-	(145)
Net cash generated from/(used in) operating activities	716	(5,626)
CASH FLOWS FROM INVESTING ACTIVITIES
Advances to a related party	-	(23)
Net change in fixed deposits pledged with licensed bank	-	678
Interest received	35	308
Purchase of property, plant and equipment	(16)	(140)
Proceeds from disposal of property, plant and equipment	-	416
Net cash generated from investing activities	19	1,239
CASH FLOWS FROM FINANCING ACTIVITIES
Advances from related parties	-	4
Repayment of lease liabilities	(736)	(2,803)
Interest paid	(70)	(353)
Repayment of borrowings	(75)	(875)
Net cash used in financing activities	(881)	(4,027)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(146)	(8,414)
Effects of currency translation differences	-	(5)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD/YEAR	6,207	14,626
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD/YEAR	6,061	6,207

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Qrka

BERHAD

Registration No.: 197701005709 (36747-U)

INTERIM FINANCIAL REPORT

For the First Quarter ended March 31, 2026

Current Period	Preceding Year 12 Month Ended
To-Date Ended	31/3/26 RMB'000
31/3/26 RMB'000	31/12/25 RMB'000

Represented by:

Fixed deposits with licensed banks
5,785 5,785

Cash and bank balances
1,058 1,204

Less: Fixed deposits pledged with a licensed bank
6,843 6,989
(782) (782)

6,061 6,207

The Condensed Consolidated Statement of Cash Flows should be read in conjunction with the audited financial statements for the financial year ended December 31, 2025 and the accompanying explanatory notes attached to the Interim Financial Report)

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rka

BERHAD

Registration No.: 197701005709 (36747-U)

INTERIM FINANCIAL REPORT

For the First Quarter ended March 31, 2026

NOTES TO THE INTERIM FINANCIAL REPORT

SECTION A

Selected Explanatory Notes: MFRS 134

1. Basis of preparation

The condensed consolidated interim financial statements have been prepared under the historical cost convention.

These condensed consolidated interim financial statements, have been prepared in accordance with Malaysian Financial Reporting Standard (“MFRS”) 134: Interim Financial Reporting issued by the Malaysian Accounting Standards Board (“MASB”) and Paragraph 9.22 of the Listing Requirements of the Bursa Malaysia Securities Berhad.

The condensed financial report should be read in conjunction with the audited financial statements of the Group for the financial year ended December 31, 2025. The explanatory notes attached to the Interim Financial Report provide an explanation of events and transactions that are significant to an understanding of the changes in the financial position and performance of the Group.

The significant accounting policies and methods of computation adopted for the interim financial report are consistent with those of the audited financial statements for the financial year ended 31 December 2025.

Accounting standards and amendments to accounting standards that are applicable and effective for the Group are as follows:

Annual periods beginning on/after 1 January 2018
- MFRS 2: Classification and Measurement of Share-based Payment Transactions
- MFRS 140: Transfer of Investment Property
- MFRS 9: Financial Instruments
- MFRS 15: Revenue from Contracts with Customers
- Annual Improvements to MFRS Standards 2014-2016 Cycle (except for Amendments to MFRS 12 Disclosure of Interests in Other Entities)
- IC Interpretation 22: Foreign Currency Transactions and Advance Consideration
- Amendments to MFRS 4: Applying MFRS 9 Financial Instruments with MFRS 4 Insurance Contracts

Annual periods beginning on/after 1 January 2019
- MFRS 16: Leases
- MFRS 128: Investment in Associates and Joint Ventures
- MFRS 9: Financial Instruments: Prepayment Features with Negative Compensation
- MFRS 119: Employee Benefits: Plan Amendment, Curtailment or Settlement
- IC Interpretation 23 Uncertainty over Income Tax Treatments
- Annual Improvements to MFRS Standards 2015-2017 Cycle

The initial application of the accounting standards, amendments or interpretations are not expected to have any material financial impacts to the current period financial statements of the Group.

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rka

BERHAD

Registration No.: 197701005709 (36747-U)

INTERIM FINANCIAL REPORT

For the First Quarter ended March 31, 2026

2. Significant Accounting Estimates and Judgments

(1) Critical Judgments Made in Applying Accounting Policies

There are no critical judgments made by management in the process of applying the Group’s accounting policies that have significant effect on the amounts recognised in the financial statements.

(2) Key Sources of Estimation Uncertainty

The key assumptions concerning the future and other key sources of estimation uncertainty on the statement of financial position, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as discussed below:

(i) Depreciation of motor vehicles

The cost of motor vehicles for operation and administrative purposes is depreciated on a straight-line basis over the asset’s useful lives. Management estimates that the useful lives of these motor vehicles range from 5 to 10 years. These are common life expectancies applied in the industry. Changes in the expected level of usage could impact the economic useful lives and the residual value of these assets, therefore depreciation charges could be revised.

(ii) Impairment loss for receivables

The policy on impairment loss for receivables of the Group is based on the evaluation of collectability and ageing analysis of the receivables and on management’s judgement. A considerable amount of judgement is required in assessing the ultimate realisation of these receivables, including the current credit worthiness and the past collection history of each customer. If the financial conditions of customers of the Group are to deteriorate, additional allowances may be required.

(iii) Deferred tax assets

Deferred tax assets are recognised for unutilised tax losses, unabsorbed capital allowances and other deductible temporary differences to the extent that it is probable that taxable profit will be available against which the losses, capital allowances and other deductible temporary differences can be utilised. Significant management decision is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with tax planning strategies.

3. Auditors’ Report on preceding annual financial statements

The auditors’ report on the financial statements for the financial year ended December 31, 2025 was not subject to any qualification.

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rka

BERHAD

Registration No.: 197701005709 (36747-U)

INTERIM FINANCIAL REPORT

For the First Quarter ended March 31, 2026

4. Unusual items affecting assets, liabilities, equity, net income or cash flows

There were no unusual items affecting assets, liabilities, equity, net income or cash flows for the current quarter under review and/or financial year-to-date.

5. Segmental information

a. Business segments

The segmental results for the 3 months ended 31 March 2026 are as follows:

Business segment:	Holding Company	Trading of Tyres	Logistics Solution	Logistics Singapore
	"Holding"	"Tyres"	"Logistics"		Total RM'000
	RM'000	RM'000	RM'000	RM'000
Revenue	-	1,767	4,356	464	6,587
Profit/(Loss) before taxation	308	6	(938)	(17)	(641)
Assets	46,362	4,958	12,521	1,914	65,755
Liabilities	592	850	7,648	2,071	11,161

b. Geographical segments

The results for the 3 months ended 31 March 2026 by geographical segments, are as follows:

	Malaysia	Singapore	Elimination	Total
	RM'000	RM'000	RM'000	RM'000
Revenue
External	6,123	464	-	6,587
Inter-segment	604	537	(1,141)	-
Total revenue	6,727	1,001	(1,141)	6,587
Loss from operations	(1,360)	(14)	-	(1,374)
Finance costs	(67)	(3)	-	(70)
Loss before taxation	(624)	(17)	-	(641)
Other Information
Segment assets	63,841	1,914	-	65,755

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rka

BERHAD

Registration No.: 197701005709 (36747-U)

INTERIM FINANCIAL REPORT

For the First Quarter ended March 31, 2026

6. Changes in estimates

There were no changes in estimates that have had a material effect on the current quarter financial results.

7. Comments about seasonal or cyclical factors

The business operations of the Group are not materially affected by any seasonal or cyclical factors.

8. Dividends

No dividend has been paid or declared by the Group since the end of the previous financial year.

9. Debt and equity securities

The Company has not issued or repaid any debt and equity securities for the current quarter and financial year to date.

10. Changes in the composition of the Group

There were no changes in the composition of the Group for the quarter under review.

11. Capital commitments

There was no commitment for the purchase of property, plant and equipment and/or other capital commitments for the quarter under review.

12. Changes in contingent liabilities and contingent assets

Contingent liabilities of the Company as at March 31, 2026 since the last annual statement of financial position date comprise:-

| | As at
31/3/2026
RM'000 | As at
31/12/2025
RM'000 |
| --- | --- | --- |
| Guarantees in favour of financial institutions for securing borrowings granted to subsidiaries | 1,576 | 1,651 |

13. Subsequent events

There were no events of a material nature which have arisen between the end of the current quarter and the date of this report that have not been reflected in the financial statements.

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rka

BERHAD

Registration No.: 197701005709 (36747-U)

INTERIM FINANCIAL REPORT

For the First Quarter ended March 31, 2026

NOTES TO THE INTERIM FINANCIAL REPORT

SECTION B

Additional information required by the Bursa Securities Listing Requirements

14. Performance Review

Comparison with previous year corresponding quarter

The Group recorded revenue of RM6.59 million and loss before taxation of RM0.64 million (Last Year: revenue of RM7.35 million and loss before taxation of RM2.28 million). The movement in the revenue is mainly due to lower revenue contributed by logistics division. The decrease in loss is mainly due to lower operating costs for the Group.

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) loss from the Group has decreased to RM0.36 million (Last Year: Loss of RM0.85 million) is mainly due to lower operating cost in current quarter.

Comparison with preceding quarter

	Current Quarter 31/3/26 RM'000	Preceding Quarter 31/12/25 RM'000	Changes (Amount/%) RM'000
Gross revenue	6,587	8,968	(2,381)	(27%)
Operating loss before depreciation and finance cost	(364)	(3,315)	2,951	89%
Share of profit of an associate	803	2,353	(1,550)	(66%)
(Loss)/Profit before taxation	(641)	1,678	(2,319)	>(100%)

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rka

BERHAD

Registration No.: 197701005709 (36747-U)

INTERIM FINANCIAL REPORT

For the First Quarter ended March 31, 2026

15. Commentary on prospects

According to the Advance Gross Domestic Product (“GDP”) Estimates published by the Department of Statistics Malaysia (DOSM) on 17 April 2026, Malaysia’s economy grew by 5.3% in the first quarter of 2026 (Q1 2026) year-on-year. This growth, though slower than the 6.3% recorded in Q4 2025, was driven by services and a 7.8% expansion in the construction sector.

The Group’s business outlook for 2026 will be challenging and competitive. Nevertheless, the Group will continue its focus on optimising capacity, assets utilisation and improving cost efficiency in every division.

16. Profit forecast or profit guarantee

The Group is not involved in any profit guarantee arrangement and has not provided any profit forecast.

17. Loss before taxation is derived after charging:

	Current Quarter 31/3/2026 RM'000	Current Year-to-date 31/3/2026 RM'000
Interest income	35	35
Interest expense	(70)	(70)
Depreciation and amortisation	(1,010)	(1,010)

18. Income tax expense

	Current Quarter 31/3/2026 RM'000	Current Year-to-date 31/3/2026 RM'000
Provision	-	-

19. Corporate proposal

Save for the Proposed Disposal, the Board is not aware of any outstanding proposals which have been announced but not yet completed.

Utilisation of proceeds

As at the end of the period under review, the summary of the utilisation of proceeds received by the Company from the disposal of property, plant and equipment are as follows:

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fka

BERHAD

Registration No.: 197701005709 (36747-U)

INTERIM FINANCIAL REPORT

For the First Quarter ended March 31, 2026

	As at 31 Mar 2026	Intended timeframe for utilisation	Proposed utilisation RM'000	Actual utilisation RM'000	Reallocate to RM'000	Balance proceeds unutilised RM'000
(i)	Working capital for our Group	Within 24 months	28,467	(22,994)	77	5,550
(ii)	Payment of RPGT	Within 2 months	1,043	(1,043)	-	-
(iii)	Estimated expenses related to Disposal	Within 2 months	640	(563)	(77)	-
		Total	30,150	(24,600)	-	5,550

20. Borrowings

Details of borrowings are as follows:

	As at 31/3/2026
	Long Term RM'000	Short Term RM'000	Total borrowing RM'000
Secured Finance lease liabilities	762	814	1,576
	As at 31/12/2025
	Long Term RM'000	Short Term RM'000	Total borrowing RM'000
Secured Finance lease liabilities	927	724	1,651

21. Off balance sheet financial instruments

There were no financial instruments with off balance sheet risks at the date of issue of the report.

22. Changes in material litigation

There was no material litigation as at March 31, 2026.

23. Dividend payable

The Directors do not recommend payment of any dividend for the current quarter.

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rka

BERHAD

Registration No.: 197701005709 (36747-U)

INTERIM FINANCIAL REPORT

For the First Quarter ended March 31, 2026

24. Earnings per share

(a) Basic loss per share

	Current Year Quarter Ended 31/3/26	Preceding Year Quarter Ended 31/3/25	Current Year- To-Date Ended 31/3/26	Preceding Year-To-Date Ended 31/3/25
Loss attributable to owners of the parent (RM'000)	(632)	(1,943)	(632)	(1,943)
Weighted average number of issued ordinary shares ('000)	65,909	65,499	65,909	65,499
Basic loss per share (sen)	(0.96)	(2.97)	(0.96)	(2.97)

(b) Diluted loss per share

	Current Year Quarter Ended 31/3/26	Preceding Year Quarter Ended 31/3/25	Current Year- To-Date Ended 31/3/26	Preceding Year-To-Date Ended 31/3/25
Loss attributable to owners of the parent (RM'000)	(632)	(1,943)	(632)	(1,943)
Weighted average number of issued ordinary shares ('000)	65,909	65,499	65,909	65,499
Effect of outstanding ESGP ('000)	-	410	-	410
Adjusted weighted average number of ordinary shares ('000)	65,909	65,909	65,909	65,909
Diluted loss per share (sen)	(0.96)	(2.95)	(0.96)	(2.95)

25. Authorisation for issue

The Interim Financial Report was authorised for issue by the Board of Directors.

By order of the Board

Dated 20 May 2026