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D Interim / Quarterly Report 2026

May 28, 2026

70473_rns_2026-05-28_7dc10d1e-c291-4537-8df6-c5a25432c8f3.pdf

Interim / Quarterly Report

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D'NONCE TECHNOLOGY BHD
20000110000077.50329218

D'NONCE GROUP OF COMPANIES

INTERIM FINANCIAL RESULTS

FOURTH QUARTER ENDED 31 MARCH 2026


D'ONCE TECHNOLOGY BHD

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2026

| | Note | As At
31/03/2026
(Unaudited)
RM'000 | As At
31/03/2025
(Audited)
RM'000 |
| --- | --- | --- | --- |
| ASSETS | | | |
| Non-current assets | | | |
| Property, plant and equipment | | 171,514 | 161,878 |
| Investment properties | | 35,059 | 30,330 |
| Intangible assets | | 2,099 | 2,099 |
| Deferred tax assets | | 40 | 40 |
| Right-of-use assets | | 1,623 | 1,907 |
| | | 210,335 | 196,254 |
| Currents assets | | | |
| Inventories | | 29,532 | 24,421 |
| Trade and other receivables | | 51,652 | 44,643 |
| Contract assets | | - | 638 |
| Other investments | | 25,707 | 31,036 |
| Current tax assets | | 1,305 | 2,306 |
| Cash and bank balances | | 16,909 | 24,406 |
| | | 125,105 | 127,450 |
| TOTAL ASSETS | | 335,440 | 323,704 |
| EQUITY AND LIABILITIES | | | |
| Equity attributable to equity holders of the parent | | | |
| Share capital | | 135,404 | 135,404 |
| Reserves | | 72,218 | 69,623 |
| Retained earnings | | (4,292) | 4,173 |
| | | 203,330 | 209,200 |
| Non-controlling interests | | 6,574 | 5,439 |
| Total equity | | 209,904 | 214,639 |


D'ONCE TECHNOLOGY BHD

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2026 (Continued)

| | Note | As At
31/03/2026
(Unaudited)
RM'000 | As At
31/03/2025
(Audited)
RM'000 |
| --- | --- | --- | --- |
| Non-current liabilities | | | |
| Retirement benefit obligations | | 3,167 | 3,028 |
| Borrowings | 20 | 19,839 | 40,528 |
| Lease liabilities | | 1,298 | 1,385 |
| Deferred tax liabilities | | 14,982 | 12,941 |
| | | 39,286 | 57,882 |
| Current liabilities | | | |
| Borrowings | 20 | 51,526 | 26,018 |
| Lease liabilities | | 377 | 640 |
| Trade and other payables | | 33,619 | 24,525 |
| Current tax payable | | 728 | - |
| | | 86,250 | 51,183 |
| Total liabilities | | 125,536 | 109,065 |
| TOTAL EQUITY AND LIABILITIES | | 335,440 | 323,704 |
| Net assets per share attributable to owners
of the Company (RM) | | 0.23 | 0.24 |

The Condensed Consolidated Statement of Financial Position should be read in conjunction with the Audited Financial Statements for the financial year ended 31 March 2025 and the accompanying notes are an integral part of this statement.


Diconce TECHNOLOGY BHD

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 31 MARCH 2026

INDIVIDUAL QUARTER CUMULATIVE QUARTER
3 months ended 12 months ended
Note 31/03/2026 RM'000 31/03/2025 RM'000 31/03/2026 RM'000 31/03/2025 RM'000
Revenue 51,491 49,003 199,066 198,257
Operating expenses (48,968) (45,645) (186,611) (193,883)
Other income including investment income 1,162 (648) 4,236 3,373
Profit from operations 3,685 2,710 16,691 7,747
Depreciation (2,975) (2,581) (10,307) (10,578)
Fair value changes in derivatives - - - -
Fair value loss on other investments (17,034) (4,577) (7,572) (15,014)
Foreign exchange losses (197) (144) (862) (257)
Fair value gain on investment properties 4,730 219 4,730 219
Gain on disposal of property, plant and equipment - - 176 39
Impairment loss on property, plant and equipment (3,657) - (3,657) -
Gain/(Loss) on disposal of quoted or unquoted investments or properties 9,043 - (101) 2
Impairment of assets - - - -
Interest expense (1,002) (702) (3,887) (2,976)
Interest income 68 119 123 216
Property, plant and equipment written off - (5) - (5)
Provision for and written back / (written off) of inventories (120) (329) (123) 270
Provision for and (written off) / written back of receivables (520) (2,491) (890) (2,469)
Loss before taxation (7,979) (7,781) (5,679) (22,806)
Taxation (1,193) (1,590) (1,718) (1,664)
Loss for the period (9,172) (9,371) (7,397) (24,470)
Attributable to:
Owner of the company (9,232) (9,071) (7,246) (24,105)
Non-controlling interests 60 (300) (151) (365)
(9,172) (9,371) (7,397) (24,470)
Earnings /(Loss) per share: 23
(a) Basic (sen) (1.06) (1.04) (0.83) (2.78)
(b) Fully Diluted (sen) (1.06) (1.04) (0.83) (2.78)

The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the Audited Financial Statements for the financial year ended 31 March 2025 and the accompanying notes are an integral part of this statement.


D'ONCE TECHNOLOGY BHD

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 31 MARCH 2026 (Continued)

INDIVIDUAL QUARTER CUMULATIVE QUARTER
3 months ended 12 months ended
31/03/2026 RM'000 31/03/2025 RM'000 31/03/2026 RM'000 31/03/2025 RM'000
Note
Loss for the period (9,172) (9,371) (7,397) (24,470)
Other comprehensive loss:
Foreign currency translation differences for foreign operations - 321 (3,245) 647
Revaluation of property, plant and equipment 5,895 - 5,895 -
Transfer of revaluation surplus to retained profits 186 363 186 363
Realisation of revaluation surplus upon depreciation (186) (363) (186) (363)
Realisation of revaluation surplus upon disposal -
Remeasurement gain on retirement benefit obligations - -
Total comprehensive loss for the period (3,277) (9,050) (4,747) (23,823)
Attributable to:
Owner of the Company (3,337) (8,750) (4,596) (23,458)
Non-controlling interests 60 (300) (151) (365)
(3,277) (9,050) (4,747) (23,823)

The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the Audited Financial Statements for the financial year ended 31 March 2025 and the accompanying notes are an integral part of this statement.


D'ONCE TECHNOLOGY BHD

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31 MARCH 2026

Attributable to equity holders of the Company
Non-distributable Distributable
Share Capital RM'000 Other Capital Reserve RM'000 Foreign Currency Translation Reserve RM'000 Legal Reserve RM'000 Warrant Reserve RM'000 Revaluation Reserve RM'000 Retained Earnings RM'000 Total RM'000 Non-controlling Interests RM'000 Total Equity RM'000
At 1 April 2025 135,404 5,120 7,705 33 20,520 36,245 4,173 209,200 5,439 214,639
Loss for the period - - - - - - (7,246) (7,246) (151) (7,397)
Transfer of revaluation surplus to retained profits - - - - - (55) 186 131 - 131
Other comprehensive loss - - (3,245) - - 5,895 2,650 - 2,650
Total comprehensive loss for the period - - (3,245) - - 5,840 (7,060) (4,465) (151) (4,616)
Arising from changes in equity interest in subsidiary company - - - - - - (1,405) (1,405) 1,386 (19)
Dividend paid by subsidiary - - - - - - - - (100) (100)
At 31 March 2026 135,404 5,120 4,460 33 20,520 42,085 (4,292) 203,330 6,574 209,904

The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the Audited Financial Statements for the financial year ended 31 March 2025 and the accompanying notes are an integral part of this statement.


Diconce TECHNOLOGY BHD

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31 MARCH 2026 (Continued)

←——Attributable to equity holders of the Company→
Share Capital RM'000 Other Capital Reserve RM'000 Foreign Currency Translation Reserve RM'000 Legal Reserve RM'000 Warrant Reserve RM'000 Revaluation Reserve RM'000 Retained Earnings RM'000 Total RM'000 Non-controlling Interests RM'000 Total Equity RM'000
At 1 April 2024 135,404 5,120 7,058 33 20,520 36,608 27,915 232,658 5,804 238,462
Loss for the period - - - - - - (24,105) (24,105) (365) (24,470)
Other comprehensive income - - 647 - - (363) 363 647 - 647
Total comprehensive loss for the period - - 647 - - (363) (23,742) (23,458) (365) (23,823)
At 31 March 2025 135,404 5,120 7,705 33 20,520 36,245 4,173 209,200 5,439 214,639

The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the Audited Financial Statements for the financial year ended 31 March 2025 and the accompanying notes are an integral part of this statement.


Diconce TECHNOLOGY BHD

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2026

12 months ended
31/03/2026 RM'000 31/03/2025 RM'000
Cash Flows From Operating Activities
Loss before taxation (5,679) (22,806)
Adjustments for:
Depreciation 10,307 10,578
Fair value gain on investment properties (4,730) (219)
Fair value loss on other investments 7,572 15,014
Gain on disposal of property, plant and equipment (176) (39)
Impairment loss on property, plant and equipment 3,657 -
Interest expense 3,887 2,766
Interest income (123) (266)
Provision for written off/(written back) of inventories 123 (274)
Provision for written off/(written back) of receivables 890 2,398
Non-operating items 1,127 478
Operating profit before working capital changes 16,855 7,635
Changes in Working Capital:
Trade and other receivables (5,157) (1,989)
Contract assets (127)
Inventories (5,533) (93)
Inventory properties - 11,377
Trade and other payables 7,279 731
Cash generated from operations 13,444 17,534
Net tax refund 1,751 (35)
Interest paid (3,887) (2,766)
Retirement benefit obligations paid - (584)
Net cash generated from operating activities 11,308 14,149
Cash Flows From Investing Activities
Interest income 122 266
Net purchase of property, plant and equipment (19,148) (30,602)
Subsequent expenditures on investment properties - (71)
Net changes in deposits pledged with licensed banks 3,672 (880)
Net changes in other investments (2,344) (13,519)
Acquisition of additional interest in subsidiary company (20) -
Net cash used in investing activities (17,718) (44,806)
Cash Flows From Financing Activities
Dividends paid to non-controllig interests of subsidiary company (100) -
Net changes in short term borrowings (2,219) 3,054
Repayment of lease liabilities (987) (1,192)
Repayment of hire purchase and lease financing (649) (1,188)
Net drawdown of term loans 2,420 11,599
Net cash (used in)/generated from financing activities (1,535) 12,273

Diconce TECHNOLOGY BHD

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2026 (Continued)

12 months ended
31/03/2026 RM'000 31/03/2025 RM'000
Net changes in cash and cash equivalents (7,945) (18,384)
Effect of exchange rate changes (1,149) 877
Cash and cash equivalents at beginning of the year 13,685 31,192
Cash and cash equivalents at end of the year 4,591 13,685
Cash and cash equivalents comprise:
Deposit placed with licensed banks 5,672 9,165
Short term money market deposit 60
Cash and bank balances 11,237 15,181
Bank overdraft - secured (6,825) (1,556)
10,084 22,850
Less: Deposits pledged with licensed banks (5,493) (9,165)
4,591 13,685

Reconciliation of liabilities arising from financing activities:

Carrying amount as at 1 April 2025 Non-cash changes Carrying amount as at 31 March 2026
RM'000 Cash flows RM'000 Others RM'000 RM'000
Short term borrowings 20,381 (2,219) - 18,162
Hire purchase and lease financing 3,314 (649) - 2,665
Term loans 41,295 2,420 - 43,715
Lease liability 2,025 (453) 104 1,676
67,015 (901) 104 66,215

The Condensed Consolidated Statement of Cash Flows should be read in conjunction with the Audited Financial Statements for the financial year ended 31 March 2025 and the accompanying notes are an integral part of this statement.


D'ONCE TECHNOLOGY BHD

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS OF THE GROUP FOR THE FOURTH QUARTER ENDED 31 MARCH 2026

PART A: EXPLANATORY NOTES PURSUANT TO MFRS 134

1 Basis of Preparation

The interim financial statement is unaudited and are prepared in accordance with the requirements of MFRS 134: Interim Financial Reporting and paragraph 9.22 of the Main Market Listing Requirements ("MMLR") of Bursa Malaysia Securities Berhad, ("Bursa Malaysia") and should be read in conjunction with the Group's audited financial statements for the financial period ended 31 March 2025 ("FY2025").

2 Significant Accounting Policies

The significant accounting policies adopted in preparing the unaudited interim consolidated financial statements are consistent with those as disclosed in the Group's audited financial statements for FY2025.

The Group has adopted the following amendments to MFRSs which are effective for the financial periods beginning on or after 1 April 2025:

Amendments to MFRS 121: The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability

The adoption of the above amendments to MFRSs does not have any significant impact to the Group.

At the date of the unaudited interim consolidated financial statements, the new and revised standards and amendments which were in issue but not yet effective and not early adopted by the Group and the Company are as listed below:

Effective for financial periods beginning on or after 1 January 2026

Amendments to MFRS 9 Financial Instruments and MFRS 7 Financial Instruments: Disclosures - Classification and Measurement of Financial Instruments and Contracts Referencing Nature-dependent Annual Improvements to MFRS Accounting Standards - Volume 11:

  • Amendments to MFRS 1: First Time Adoption of Malaysia Financial Reporting Standards
  • Amendments to MFRS 9 Financial Instruments and MFRS 7 Financial Instruments
  • Amendments to MFRS 10 Consolidated Financial Statements
  • Amendments to MFRS 107 Statement of Cash Flows

Effective for financial periods beginning on or after 1 January 2027

  • MFRS 18: Presentation and Disclosure in Financial Statements
  • MFRS 19: Subsidiaries without Public Accountability: Disclosures
  • Amendments to MFRS 19: Subsidiaries without Public Accountability: Disclosures
  • Amendments to MFRS 121: The Effects of Changes in Foreign Exchange Rates - Translation to a Hyperinflationary Presentation Currency

D'ONCE TECHNOLOGY BHD

2 Significant Accounting Policies (Continued)

Deferred

Amendments to MFRS 10 Consolidated Financial Statements and MFRS 128 Investments in Associates and Joint Ventures - Sale or Contribution of Assets between an Investor and its Associates or Joint Venture

The Directors expect that the adoption of these new MFRSs and Interpretations and Amendments will have no material impact on the Group's financial statements in the period of initial application.

3 Audit Report of the Preceding Annual Financial Statements

The Group's audited financial statements for the year ended 31 March 2025 was not subjected to any qualification.

4 Seasonality and Cyclical Operations

The Group were subjected to the cyclical effects of the electronic industries as a result of the volatility of demand.

5 Significant Unusual Items

There were no unusual items affecting assets, liabilities, equity, net income or cash flows during the current quarter under review.

6 Material Changes in Accounting Estimates

There were no changes in accounting estimates that have had any material effect on the amounts reported for the current quarter under review.

7 Debt and Equity Securities

There were no other issuances, cancellations, repurchases, resale or repayments of debts and equity securities during the current quarter under review.

8 Dividend Paid

No dividend was paid or declared during the current quarter under review.

9 Related Party Transactions

All related party transaction and balance within the Group has been entered into the normal course of business and were carried out on normal commercial terms during the year-to-date ended 31 March 2026.

11


D'ONCE TECHNOLOGY BHD

10 Segmental Reporting

The Group’s segmental analysis is as follows:

By customer segments

Period ended 31-Mar-26 Healthcare Electrical and Electronics Other Industries* Others ^ Elimination Total
REVENUE RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
External revenue 62,107 88,734 48,225 - 199,066
Inter-segment revenue 3,434 17,860 4,403 1,555 (27,252) -
Total segment revenue 65,541 106,594 52,628 1,555 (27,252) 199,066
RESULTS
Segment results 4,585 4,240 2,961 (1,703) - 10,083
Unallocated expenses (11,875)
Operating loss (1,792)
Finance costs, net (3,887)
Loss before taxation (5,679)
Taxation (1,718)
Loss after taxation (7,397)
Segment assets 90,193 173,877 42,439 26,009 332,518
Unallocated assets 2,922
Total assets 335,440
Segment liabilities 26,316 70,982 27,775 194 - 125,267
Unallocated liabilities 269
Total liabilities 125,536
  • Other industries is pertaining to automotive, furniture, food and beverage and other manufacturing industries.
    ^ Others is pertaining to dormant companies.

[The remainder of this page is intentionally left blank]


D'ONCE TECHNOLOGY BHD

10 Segmental Reporting (Continued)

The Group’s segmental analysis is as follows (continued):

By customer segments

Period ended 31-Mar-25 Healthcare Electrical and Electronics Other Industries* Others ^ Elimination Total
REVENUE RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
External revenue 63,277 79,732 45,748 9,500 - 198,257
Inter-segment revenue 3,860 11,232 3,555 - (18,647) -
Total segment revenue 67,137 90,964 49,303 9,500 (18,647) 198,257
RESULTS
Segment results 4,958 (178) 911 (3,587) - 2,104
Unallocated expenses (21,934)
Operating loss (19,830)
Finance costs, net (2,976)
Loss before taxation (22,806)
Taxation (1,664)
Loss after taxation (24,470)
Segment assets 90,057 159,655 36,998 3,612 - 290,322
Unallocated assets 33,382
Total assets 323,704
Segment liabilities 13,216 63,821 18,730 357 - 96,124
Unallocated liabilities 12,941
Total liabilities 109,065
  • Other industries is pertaining to automotive, furniture, food and beverage and other manufacturing industries.
    ^ Others is pertaining to dormant companies.

Diconce TECHNOLOGY BHD

11 Material Subsequent Events

There were no material events after this quarter.

12 Changes in the Composition of the Group

There were no significant changes in the composition of the Group for the current financial quarter and financial year to date.

13 Changes in Contingent Liabilities and Assets

The Company provided corporate guarantees amounting to RM69.78 million (31 March 2025: RM66.55 million) for the banking facilities granted to certain subsidiary companies.

14 Capital Commitments

The capital commitments for the purchase of property, plant and equipment not provided for in the interim financial statements as at the end of the financial period are as follows:

RM’000
Approved and contracted for:
- Land and building 3,870
- Plant and Machinery 1,777
- Construction and renovation 3,128
Total Capital Commitments 8,775

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D'NONCE TECHNOLOGY BHD

PART B: EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF THE BURSA SECURITIES LISTING REQUIREMENTS

15 Analysis of performance for current quarter and financial period-to-date

A comparison of D' Nonce Technology Bhd's performance for the fourth quarter ended 31 March 2026 ("Q4'26") with the corresponding period last financial year ("Q4'25") is as follows:

Quarter 4 Year-To-Date
FY2026 RM'000 FY2025 RM'000 Variance % FY2026 RM'000 FY2025 RM'000 Variance %
Revenue 51,491 49,003 5.1% 199,066 198,257 0.4%
Operating profit 3,685 2,710 36.0% 16,691 7,747 115.5%
Loss before interest and tax (6,977) (7,079) 1.4% (1,792) (19,830) 91.0%
Loss before tax (7,979) (7,781) -2.5% (5,679) (22,806) 75.1%
Loss after tax (9,172) (9,371) 2.1% (7,397) (24,470) 69.8%
Loss attributable to ordinary equity holders of the Company (9,232) (9,071) -1.8% (7,246) (24,105) 69.9%

(A) Performance of the current quarter against the preceding year corresponding quarter (Q4'26 vs Q4'25)

The Group achieved revenue of RM51.5 million in the current quarter, compared to RM49.0 million in Q4'25, representing an increase of RM2.5 million or 5.1%. The Group recorded segment results of RM1.7 million gain in the current quarter as compared with RM1.5 million gain in the corresponding quarter last year. The improvement was mainly attributable to stronger contribution from the Electrical and Electronics ("E&E") and other industries segments.

Revenue for the healthcare customer segment was RM12.9 million in the current quarter, a decrease of RM2.9 million or 19%, compared to RM15.8 million for the corresponding quarter last year. Segment results for the current quarter were RM1.1 million, an increase of RM0.2 million or 23% compared to RM0.9 million in segment results last year.

The Electrical and Electronics ("E&E") customer segment generated RM26.0 million in revenue for the current quarter, compared to RM22.3 million in the same period last year, reflecting an increase of RM3.7 million or 17%. This segment recorded a loss of RM1.5 million for the current quarter, representing an improvement of RM0.3 million or 16% compared to a loss of RM1.8 million recorded in the corresponding quarter last year. The improvement was mainly attributable to higher demand from existing customers, coupled with contributions from newly acquired customers in the Group's Southern Malaysia and Thailand subsidiaries.

Revenue from the other industries segment during the quarter was RM15.9 million, compared to RM10.9 million in the same quarter last year, reflecting an increase of RM5.0 million or 46%. This segment recorded a profit of RM0.4 million for the current quarter, compared to a profit of RM0.8 million recorded in the corresponding quarter last year. The lower profit was mainly attributable to increased production overhead costs incurred by one of the Thailand subsidiaries during the current quarter, despite higher segment revenue.

As a result, the Group recorded a loss before tax of RM7.9 million in the current quarter compared to a loss before tax of RM7.8 million in the corresponding quarter last year, representing an increase of RM0.1 million in operating performance during the quarter.

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D'ONCE TECHNOLOGY BHD

15 Analysis of performance for current quarter and financial period-to-date (continued)

| | Q4'26
31 March 2026
RM'000 | Q3'26
31 December 2025
RM'000 | Variance
% |
| --- | --- | --- | --- |
| Revenue | 51,491 | 49,261 | 4.5% |
| Operating profit | 3,685 | 4,462 | -17.4% |
| (Loss)/Profit before interest and tax | (6,977) | 8,201 | -185.1% |
| (Loss)/Profit before tax | (7,979) | 7,212 | -210.6% |
| (Loss)/Profit after tax | (9,172) | 6,749 | -235.9% |
| (Loss)/Profit attributable to ordinary equity holders of the parent | (9,232) | 6,792 | -235.9% |

(B) Performance of the current quarter against the preceding quarter (Q4'26 vs Q3'26)

The Group achieved revenue of RM51.5 million in the current quarter, compared to RM49.3 million in the preceding quarter, representing an increase of RM2.2 million or 4.5%, mainly driven by stronger contributions from the E&E and other industries segments.

Healthcare revenue decreased in the current quarter due to lower demand from certain major customers, while the E&E and other industries segments recorded higher revenue supported by stronger customer demand and contributions from newly acquired customers.

Despite the higher revenue, the Group recorded a loss before tax of RM7.9 million in the current quarter compared to a profit before tax of RM7.2 million in the preceding quarter, mainly due to fair value loss on other investments and impairment loss on property, plant and equipment in the current quarter.

16 Prospects

The Group expects its performance to remain resilient in the near term, underpinned by its diversified business operations across multiple segments and continued support from existing customers. The Group will continue to prioritise operational efficiency, productivity enhancement, and prudent cost management measures to mitigate ongoing market challenges and cost pressures.

17 Profit forecast or Profit Guarantee

No profit forecast or profit guarantee was issued by the Group for the financial year.


D'NONCE TECHNOLOGY BHD

18 Taxation

Individual Quarter Cumulative Quarter
31 March 2026
RM'000 31 March 2025
RM'000 31 March 2026
RM'000 31 March 2025
RM'000
Current tax:
Current period (705) (342) (1,229) (361)
Prior period 68 150 69 83
Deferred tax:
Current period (555) (1,380) (530) (270)
Prior period (0) (18) (27) (1,116)
Tax expenses (1,193) (1,590) (1,718) (1,664)

The Group's effective tax rate for the financial period was higher than the statutory tax rate of 24% mainly due to certain expenses were not deductible for tax purposes and non-recognition of deferred tax assets arising from certain loss-making entities

17


Dronce TECHNOLOGY BHD

19 Status of Corporate Proposal

On 15 March 2024, the corporate proposal for Right Issue with Warrants has been completed.

The Company has raised RM39.044 million following the completion of Right Issue with Warrants.

The status of the utilisation of amount raised as at 30 April 2026 are as follows:

| Purpose | Proposed Utilisation
RM'000 | Actual Utilisation
RM'000 | Balance to be Utilised
RM'000 | Expected time frame for the utilisation of proceeds (from the date of listing of the Rights Shares) | Deviation | |
| --- | --- | --- | --- | --- | --- | --- |
| | | | | | Amount
RM'000 | % |
| Construction of a new warehouse and additional production area | 2,000 | - | 1,000 | Within 24 months | (1,000) | -2.56% |
| Capital expenditure for purchase of machinery and equipment and installation of enterprise resource planning system | 4,200 | 1,097 | 2,203 | Within 24 months | (900) | -2.31% |
| Repayment of bank borrowings | 16,000 | 16,000 | - | Within 12 months | - | 0.00% |
| Working capital | 7,352 | 9,252 | - | Within 24 months | 1,900 | 4.87% |
| Construction of new factory building in Thailand | 8,000 | 4,909 | 3,091 | Within 24 months | | 0.00% |
| Estimated expenses in relation to the Corporate Exercises | 1,492 | 1,492 | - | Within 1 month | - | 0.00% |
| Total | 39,044 | 32,750 | 6,294 | | - | |

For further details, please refer to Bursa website for the announcement made by the Company.

Other than the above, there are no other corporate proposals announced as at the date of this report.

18


D'ONCE TECHNOLOGY BHD

20 Group Borrowings and Debt Securities

The Group Borrowings as at 31 March 2026 were as follows:

| | As at
31 March 2026
RM'000 | As at
31 March 2025
RM'000 |
| --- | --- | --- |
| Secured: | | |
| Short Term (Denominated in THB) | | |
| Bank overdrafts | 1,049 | - |
| Trust receipts | 5,542 | 4,433 |
| Promissory note | 1,462 | 2,957 |
| Term loans | 4,131 | 580 |
| Hire purchases and lease creditors | 39 | 28 |
| | 12,223 | 7,998 |
| Short Term (Denominated in RM) | | |
| Bank overdrafts | 5,776 | 1,556 |
| Bankers' acceptance | 9,158 | 5,991 |
| Revolving credit | 2,000 | 7,000 |
| Term loans | 21,209 | 2,365 |
| Hire purchases and lease creditors | 1,160 | 1,108 |
| | 39,303 | 18,020 |
| Total Short Term | 51,526 | 26,018 |
| Long Term (Denominated in THB) | | |
| Term loans | 2,909 | 1,934 |
| Hire purchases and lease creditors | 66 | 102 |
| | 2,975 | 2,036 |
| Long Term (Denominated in RM) | | |
| Term loans | 15,466 | 36,416 |
| Hire purchases and lease creditors | 1,398 | 2,076 |
| | 16,864 | 38,492 |
| Total Long Term | 19,839 | 40,528 |
| | | |
| Total | 71,365 | 66,546 |

The weighted average interest rate per annum of borrowings were as follows:

31 March 2026 31 March 2025
Fixed rates 2.65% - 5.65% 2.65% - 5.65%
Floating rates 4.47% - 7.58% 4.47% - 7.58%

There is no hedging against RM on borrowings denominated in Thai Baht as they are utilised by Thailand subsidiaries for their operational needs.

19


D'ONCE TECHNOLOGY BHD

21 Material Litigation

There is no material litigation against the Group as at the reporting date.

22 Dividend

There are no dividends proposed for the current quarter under review.

23 Earnings/ (loss) Per Share

Individual Quarter Cumulative Quarter
3 months ended 12 months ended
Basic 31 March 2026 31 March 2025 31 March 2026 31 March 2025
Profit /(Loss) attributable to ordinary equity holders of the Company (RM’000) (9,232) (9,071) (7,246) (24,105)
Weighted average number of ordinary shares in issue (‘000) 868,281 868,281 868,281 868,281
Basic/ diluted earnings / (loss) per share (sen) (1.06) (1.04) (0.83) (2.78)

24 Loss before Tax

The following amounts have been included in arriving at loss before tax:

Current year Quarter Year to date
31 March 2026 31 March 2026
RM’000 RM’000
Depreciation 2,975 10,307
Fair value adjustment on other investment 17,034 7,572
Interest income (68) (123)
Interest expense 1,002 3,887

25 Authorisation For Issue

The current unaudited interim financial statements were authorised for issue by the Board of Directors in accordance with the resolution on 25 May 2026.