ECONPILE HOLDINGS BERHAD — Interim / Quarterly Report 2026

May 27, 2026

1

ECONPILE HOLDINGS BERHAD

(Registration No. 201201032676)(1017164-M)

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE THIRD QUARTER ENDED 31 MARCH 2026

(The figures have not been audited)

| | Note | Individual Quarter
Preceding Year
Corresponding Year
Period | | Cumulative Quarter
Preceding Year
Corresponding Year
Period | |
| --- | --- | --- | --- | --- | --- |
| | | Current Year
31.03.26
RM'000 | Current Year
31.03.2025
RM'000 | Current Year
31.03.26
RM'000 | Period
31.03.2025
RM'000 |
| Revenue | | 89,596 | 60,279 | 274,207 | 209,410 |
| Cost of sales | | (80,403) | (54,469) | (248,193) | (189,476) |
| Gross Profit | | 9,193 | 5,810 | 26,014 | 19,934 |
| Other income | | 50 | 294 | 322 | 1,388 |
| Administrative expenses | | (7,644) | (4,410) | (17,763) | (14,409) |
| Results from operating activities | | 1,599 | 1,694 | 8,573 | 6,913 |
| Foreign exchange gain/(loss) | | 4 | (193) | (111) | (2,216) |
| Finance income | | 395 | 370 | 861 | 1,306 |
| Finance costs | | (1,405) | (1,816) | (4,276) | (5,323) |
| Profit/(Loss) before tax | B5 | 593 | 55 | 5,047 | 680 |
| Tax expense | B6 | (145) | (257) | (1,493) | (572) |
| Profit/(Loss) for the period | | 448 | (202) | 3,554 | 108 |
| Other comprehensive income/(expense), net of tax | | | | | |
| Item that is or may be reclassified subsequently to profit or loss | | | | | |
| Foreign currency translation differences for foreign operation | | (93) | (157) | (814) | (1,572) |
| Profit/(Loss) and total comprehensive income/(expense) for the period | | 355 | (359) | 2,740 | (1,464) |
| Basic Earning/(Loss) per ordinary share
- Basic | B13 | 0.03 | (0.01) | 0.25 | 0.01 |

Notes:

The Unaudited Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the Annual Financial Report for the year ended 30 June 2025 and the accompanying explanatory notes as attached to this interim financial report.

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2

ECONPILE HOLDINGS BERHAD

(Registration No. 201201032676)(1017164-M)

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MAARCH 2026

(The figures have not been audited)

	Note	(Unaudited) As At 31.03.26	(Audited) As At 30.06.25
		RM'000	RM'000
ASSETS
Non-current assets
Property, plant and equipment		19,378	22,023
Right-of-use assets		738	915
Investment properties		20,559	15,664
Deferred tax assets		2,273	2,273
Land held for property development		545	545
		43,493	41,420
Current assets
Other investments		1,102	3,934
Trade and other receivables	B9	354,096	371,186
Contract assets		118,686	114,069
Prepayments		2,217	6,560
Current tax assets		5,810	22,283
Cash and cash equivalents		99,287	51,121
		581,198	569,153
TOTAL ASSETS		624,691	610,573
EQUITY AND LIABILITIES
Equity
Share capital		177,206	177,206
Reserves		185,109	182,371
Equity attributable to equity holders of the Company		362,315	359,577
Non-current liabilities
Loans and borrowings	B8	4,602	9,021
Lease liabilities		-	161
Employees benefits		6,447	6,447
Total non-current liabilities		11,049	15,629
Current liabilities
Loans and borrowings	B8	96,429	99,254
Lease liabilities		429	792
Trade and other payables		118,279	102,020
Contract liabilities		35,097	32,908
Current tax liabilities		999	311
Provisions		94	82
Total current liabilities		251,327	235,367
TOTAL EQUITY AND LIABILITIES		624,691	610,573
Net assets per share (RM)		0.26	0.25

The Unaudited Condensed Consolidated Statement of Financial Position should be read in conjunction with the Annual Financial Report for the year ended 30 June 2025 and the accompanying explanatory notes as attached to this interim financial report.

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3

ECONPILE HOLDINGS BERHAD

(Registration No. 201201032676)(1017164-M)

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE THIRD QUARTER ENDED 31 MARCH 2026

(The figures have not been audited)

	/--- Non-distributable ---/ Distributable
	Share capital	Deficit in business combination	Translation reserve	Retained earnings	Total equity
	RM'000	RM'000	RM'000	RM'000	RM'000
(Unaudited)
At 1 July 2024	177,206	(87,000)	(179)	271,153	361,180
Profit for the period	-	-	-	108	108
Foreign currency translation differences for foreign operation	-	-	(1,572)	-	(1,572)
Profit/(Loss) and total comprehensive income/(expenses) for the period	-	-	(1,572)	108	(1,464)
At 31 March 2025	177,206	(87,000)	(1,751)	271,261	359,716
(Unaudited)
At 1 July 2025	177,206	(87,000)	(3,024)	272,395	359,577
Profit for the period	-	-	-	3,554	3,554
Foreign currency translation differences for foreign operation	-	-	(816)	-	(816)
Profit/(Loss) and total comprehensive income/(expenses) for the period	-	-	(816)	3,554	2,738
At 31 March 2026	177,206	(87,000)	(3,840)	275,949	362,315

The Unaudited Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the Annual Financial Report for the year ended 30 June 2025 and the accompanying explanatory notes as attached to this interim financial report.

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4

ECONPILE HOLDINGS BERHAD
(Registration No. 201201032676)(1017164-M)

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE THIRD QUARTER ENDED 31 MARCH 2026
(The figures have not been audited)

| | Current Financial Period
31.03.26
RM'000 | Preceding Year Corresponding Period
31.03.2025
RM'000 |
| --- | --- | --- |
| CASH FLOWS FROM OPERATING ACTIVITIES | | |
| Profit before tax | 5,047 | 680 |
| Depreciation of investment properties | 167 | 54 |
| Depreciation of property, plant and equipment | 2,731 | 3,035 |
| Depreciation of right-of-use assets | 419 | 431 |
| Fair value gain from other investments | (14) | (14) |
| Finance costs | 4,276 | 5,323 |
| Finance income | (861) | (1,306) |
| Gain on disposal of property, plant and equipment | (32) | (135) |
| (Gain)/Loss on unrealised foreign exchange | 3 | (291) |
| Gain on lease modification | (1) | (1) |
| Operating profit before working capital changes | 11,735 | 7,776 |
| Change in trade and other receivables and prepayments | 21,536 | 44,412 |
| Change in trade and other payables | 16,260 | (31,215) |
| Change in contract assets | (4,617) | (10,338) |
| Change in contract liabilities | 2,190 | 4,054 |
| Change in provision | (44) | 70 |
| Cash generated from operations | 47,060 | 14,759 |
| Interest paid | (4,220) | (5,323) |
| Tax refunded/(paid) | 15,667 | (5,812) |
| NET CASH GENERATED FROM OPERATING ACTIVITIES | 58,507 | 3,624 |
| CASH FLOWS USED IN INVESTING ACTIVITIES | | |
| Acquisition of property, plant and equipment | (86) | 89 |
| Acquisition of right-of-use assets | (602) | (430) |
| Acquisition of investment properties | (5,063) | (1,710) |
| Interest received from fixed deposit | 860 | 1,306 |
| Proceeds from disposal of property, plant and equipment | 32 | (58) |
| NET CASH USED IN INVESTING ACTIVITIES | (4,859) | (803) |
| CASH FLOWS USED IN FINANCING ACTIVITIES | | |
| Change in pledged deposits | - | 32 |
| Interest paid on loans and borrowings | (4,220) | (5,323) |
| Net repayment of loans and borrowings | (3,025) | (17,021) |
| Payment of lease liabilities | (164) | - |
| NET CASH USED IN FINANCING ACTIVITIES | (7,409) | (22,312) |
| Net increase/(decrease) in cash and cash equivalents | 46,239 | (19,491) |
| Cash and cash equivalents at beginning of the financial period | 49,490 | 72,844 |
| Effect of exchange rate fluctuations on cash held | (919) | (1,851) |
| CASH AND CASH EQUIVALENTS AT END OF THE FINANCIAL PERIOD | 94,810 | 51,502 |

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ECONPILE HOLDINGS BERHAD
(Registration No. 201201032676)(1017164-M)

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE THIRD QUARTER ENDED 31 MARCH 2026

(The figures have not been audited)

| | Current Financial Period
31.03.26
RM'000 | Preceding Year Corresponding Period
31.03.2025
RM'000 |
| --- | --- | --- |
| Cash and cash equivalents included in the statements of cash flows comprise the following statements of financial position amounts:- | | |
| Cash and bank balances | 63,426 | 33,162 |
| Deposit placed with licensed banks | 35,861 | 22,759 |
| | 99,287 | 55,921 |
| Less: Deposits pledged to licensed banks | (4,477) | (4,419) |
| | 94,810 | 51,502 |

The Unaudited Condensed Consolidated Statement of Cash Flows should be read in conjunction with the Annual Financial Report for the year ended 30 June 2025 and the accompanying explanatory notes as attached to this interim financial report.

5

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ECONPILE HOLDINGS BERHAD
(Registration No. 201201032676)(1017164-M)

NOTES TO THE INTERIM FINANCIAL STATEMENTS - THIRD QUARTER ENDED 31 MARCH 2026

A1. Basis of preparation

The condensed consolidated interim financial statements of the Econpile Holdings Berhad ("EHB" or Company") and its subsidiaries ("Group") are unaudited and have been prepared in accordance with the requirements of Paragraph 9.22 of the Main Market Listing Requirements ("MMLR") of Bursa Malaysia Securities Berhad ("Bursa Securities") and the Malaysian Financial Reporting Standards ("MFRS") 134: Interim Financial Reporting. This unaudited interim financial report should be read in conjunction with the Group's most recent audited financial statements for the financial year ended 30 June 2025.

The accounting policies and method of computation adopted by the Group in this interim financial report are consistent with those adopted in the annual financial statements for the financial year ended 30 June 2025 except for the following new/revised MFRSs and amendments to MFRSs:-

Amendments to MFRS 121	The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability	Effective for annual periods beginning on or after
		1 January 2025

The adoption of the amendments did not have any impact on the Group.

A2. Significant Accounting Policies

At the date of authorisation of these interim financial statements, the following MFRSs and amendments to MFRSs were issued but not yet effective :-

Amendments to MFRS 9	Amendments to MFRS 9, Financial Instruments and MFRS 7, Financial Instruments: Disclosures – Classification and Measurement of Financial Instruments	1 January 2026
Amendments to MFRS 1	Amendments to MFRS 1, First-time Adoption of Malaysian Financial Reporting Standards	1 January 2026
Amendments to MFRS 7	Contracts Referencing Nature-dependent Electricity	1 January 2026
Amendments to MFRS 9	Contracts Referencing Nature-dependent Electricity	1 January 2026
Amendments to MFRS 10	Amendments to MFRS 10, Consolidated Financial Statements	1 January 2026
Amendments to MFRS 107	Amendments to MFRS 107, Statement of Cash Flows	1 January 2026
Amendments to MFRS 9	Amendments to MFRS 9, Financial Instruments and MFRS 7, Financial Instruments: Disclosures – Contract Referencing Nature-dependent Electricity	1 January 2026
MFRS 18	Presentation and Disclosure in Financial Statements	1 January 2027
MFRS 19	Subsidiaries without Public Accountability: Disclosures	1 January 2027
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 Associate or Joint Venture	Yet to be determined

The initial application of the applicable accounting standards, amendments and interpretations are not expected to have any material financial impact to the current period and prior period financial statements of the Group and the Company.

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ECONPILE HOLDINGS BERHAD
(Registration No. 201201032676)(1017164-M)
NOTES TO THE INTERIM FINANCIAL STATEMENTS - THIRD QUARTER ENDED 31 MARCH 2026

A3. Auditors' Report

The reports of the auditors to the members of EHB and its subsidiary companies on the financial statements for the financial year ended 30 June 2025 were not subject to any qualification and did not include any adverse comments made under subsection (3) of Section 266 of the Companies Act 2016.

A4. Seasonality or Cyclicality of Interim Operations

The Group's results are not materially affected by any seasonal or cyclical factors.

A5. Unusual Items Affecting Assets, Liabilities, Equity, Net Income or Cash Flows

There were no items affecting assets, liabilities, equity, net income or cash flows that were unusual in nature, size or incidence during the current quarter, save for those disclosed in notes B1 and B2 herein.

A6. Material Effect of Changes in Estimates of Amounts Reported in Prior Interim Periods or Prior Financial Years

There were no changes in estimates of amounts reported in prior interim periods or prior financial years that have a material effect on results for the current quarter under review.

A7. Debt and Equity Securities

There were no issuance, cancellation, repurchase, resale and repayment of debts and equity securities during the current quarter under review.

A8. Dividends Paid

No dividend was paid in the current period ended 31 March 2026

A9. Segmental Reporting

The Group is predominantly involved in general construction and piling works, which is the only reportable segment. Other non-reportable segments comprise investment holding and operations related to rental of investment properties and machinery and related accessories.

A10. Significant Post Balance

There were no material events as at 21 May 2026, being the date not earlier than 7 days from the date of this announcement, that will affect the financial results of the current financial quarter under review.

A11. Changes in Composition of the Group

There were no material changes in the composition of the Group including business combinations, acquisition or disposal of subsidiaries and long term investments, restructuring and discontinuing operations during the current quarter.

7

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ECONPILE HOLDINGS BERHAD
(Registration No. 201201032676)(1017164-M)
NOTES TO THE INTERIM FINANCIAL STATEMENTS - THIRD QUARTER ENDED 31 MARCH 2026

A12. Contingent Liabilities and Contingent Assets

There were no material changes in contingent liabilities and contingent assets since the last audited financial statements for the financial year ended 30 June 2025 to 21 May 2026, being a date not earlier than 7 days from the date of this announcement, save for the following:

| | As at
31.03.2026
RM'000 | As at
30.06.2025
RM'000 |
| --- | --- | --- |
| Contingent Liabilities (Unsecured) | | |
| Group | | |
| - Guarantees given to contract customers in relation to construction contracts | 27,887 | 50,718 |

A13. Capital Commitments

| | As at
31.03.2026
RM'000 | As at
30.06.2025
RM'000 |
| --- | --- | --- |
| Capital expenditure | | |
| Authorised and contracted for | 1,365 | 420 |

A14. Significant Related Party Transactions

There were no significant related party transactions for the current quarter.

8

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ECONPILE HOLDINGS BERHAD
(Registration No. 201201032676)(1017164-M)
NOTES TO THE INTERIM FINANCIAL STATEMENTS - THIRD QUARTER ENDED 31 MARCH 2026

PART B : EXPLANATORY NOTES PURSUANT TO THE LISTING REQUIREMENTS OF BURSA MALAYSIA SECURITIES BERHAD

B1. Review of the Performance of the Group

	3 Months ended		Changes		Cumulative Period		RM'000 / %
	31.03.26
RM'000	31.03.2025
RM'000	RM'000 / %		31.03.26
RM'000	31.03.2025
RM'000
Revenue	89,596	60,279	29,317	48.6%	274,207	209,410	64,797	30.9%
Gross Profit	9,193	5,810	3,383	58.2%	26,014	19,934	6,080	30.5%
Profit before tax	593	55	538	978.2%	5,047	680	4,367	642.2%
Profit for the period	448	(202)	650	-321.8%	3,554	108	3,446	3190.7%

Group's Financial Performance

The Group recorded a Revenue of RM89.6 million for the financial quarter ended 31 March 2026 which is 48.6% higher compared to RM60.3 million in the preceding year corresponding quarter. The higher revenue was mainly due to improved project execution and site progress, as project activities largely normalised in the current quarter after being affected by delays in authority approvals on certain projects in the preceding year corresponding quarter.

In line with the higher revenue, the Group recorded a higher Gross Profit of RM9.2 million for the current quarter compared to a Gross Profit of RM5.8 million in the preceding year corresponding quarter.

Despite the higher Gross Profit, the Group achieved a marginal profit for the quarter of RM0.4 million compared to a marginal loss of RM0.2 million in the corresponding quarter in the preceding year due to higher administration expenses mainly due to the recognition of staff bonus expenses.

Project Updates and Order Book

As at 31 March 2026, there are 25 on-going projects at various stages of completion and order book stood at approximately RM576 million. Concentration of credit risk with respect to trade receivables is limited except for six (6) customers which accounted for 48.6% (including retention sum) of trade receivables as at 31 March 2026.

B2. Comparison with Preceding Quarter's Results

	3 Months ended		Changes
	31.03.26
RM'000	31.12.2025
RM'000
Revenue	89,596	96,642	(7,046)	-7.3%
Gross Profit	9,193	8,953	240	2.7%
Profit before tax	593	2,571	(1,978)	-76.9%
Profit for the period	448	1,807	(1,359)	-75.2%

In the current quarter, the Group recorded a 7.3% lower Revenue at RM89.6 million compared to the preceding quarter of RM96.6 million. The decrease was primarily due to the festive Chinese New Year and Hari Raya holidays.

The Gross Profit margin was marginally higher at 10.3% in the current quarter compared to the preceding quarter's margin of 9.3% mainly attributable to normal quarter to quarter variations in project mix, cost recognition and site execution.

A higher administration expenses mainly from staff bonus recognised this quarter resulting in the Group recording a lower Profit for the current quarter of RM0.4 million compared to the RM1.8 million in the preceding quarter.

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ECONPILE HOLDINGS BERHAD
(Registration No. 201201032676)(1017164-M)

NOTES TO THE INTERIM FINANCIAL STATEMENTS - THIRD QUARTER ENDED 31 MARCH 2026

B3. Prospects

Malaysia’s economy in 2026 is expected to remain resilient, maintaining a moderate growth trajectory of approximately 4.0% to 4.5%. This outlook is underpinned by robust domestic demand, improving fiscal discipline, and ongoing structural reforms, notwithstanding the recent conflict in the Middle East.

Nevertheless, the economic outlook continues to be weighed down by external risks, particularly the ongoing war in the Middle East, which has disrupted global supply chains and contributed to higher oil prices. These developments could materially weaken global economic growth, intensify inflationary pressures, and heighten the risk of a global recession.

On the domestic front, the construction industry is expected to be among the key beneficiaries of the 13th Malaysia Plan (RMK-13), supported by a post-pandemic infrastructure expansion, substantial capital inflows, and clear policy commitment towards sectoral development. However, the extent of the positive impact will largely depend on effective project execution, strong coordination within public-private partnership initiatives, and the industry’s ability to adapt to labour shortages, rising cost pressures, and technology-driven productivity shifts.

At the same time, Malaysia’s construction sector continues to operate in a challenging environment. Key concerns include the risk of rising material costs, particularly for diesel and concrete, potential supply shortages, and the implementation of the Service Tax on the construction sector effective from July 2025.

The Group’s outstanding construction order book stood at approximately RM576 million as at 31 March 2026, which is expected to support its operations for the remainder of the financial year ending 30 June 2026. Nevertheless, the ongoing conflict in the Middle East has created near-term cost pressures, as the Group remains exposed to rising diesel prices, as well as higher concrete and logistics costs arising from energy market volatility and supply chain disruptions.

B4. Profit Forecast or Profit Guarantee

Not applicable as there was no profit forecast or profit guarantee issued.

B5. Profit before tax

Profit for the current period is stated after charging/(crediting):-

	Current Quarter ended 31.03.26 RM'000	Current Year ended 31.03.26 RM'000
Depreciation of investment properties	56	167
Depreciation of property, plant and equipment	836	2,731
Depreciation of right-of-use assets	131	419
Fair value gain from other investments	(14)	(14)
Finance income	(395)	(861)
Finance costs	1,405	4,276
Gain on disposal of property, plant and equipment	-	(32)
Loss/(Gain) on lease modification	1	(1)
Net loss on unrealised foreign exchange	80	3

10

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ECONPILE HOLDINGS BERHAD

(Registration No. 201201032676)(1017164-M)

NOTES TO THE INTERIM FINANCIAL STATEMENTS - THIRD QUARTER ENDED 31 MARCH 2026

| B6. Tax Expense | Current
Quarter ended
31.03.26
RM'000 | Current
Year ended
31.03.26
RM'000 |
| --- | --- | --- |
| Current tax:- | | |
| - Current year | 138 | 1,486 |
| Withholding tax | 7 | 7 |
| | 145 | 1,493 |

The Group’s effective tax rate for the nine months ended 31 March 2026 was higher than the Malaysian statutory tax rate of 24% mainly due to effects of certain disallowed deductions for tax purposes.

B7. Status of Corporate Proposal

There were no pending corporate proposals up to 21 May 2026, being the date not earlier than 7 days from the date of this announcement.

B8. Group Borrowings and Debt Securities

The Group's borrowings as at 31 March 2026 are as follows:

| | Current
RM'000 | Non-Current
RM'000 | Total
RM'000 |
| --- | --- | --- | --- |
| Secured | | | |
| Revolving credit | 44,000 | - | 44,000 |
| Bank loans | 4,838 | 1,245 | 6,083 |
| | 48,838 | 1,245 | 50,083 |
| Unsecured | | | |
| Hire purchase liabilities | 1,758 | 3,357 | 5,115 |
| Bankers' acceptances | 45,833 | - | 45,833 |
| | 47,591 | 3,357 | 50,948 |
| | 96,429 | 4,602 | 101,031 |

All borrowings of the Group are denominated in Ringgit Malaysia.

B9. Ageing Analysis of Trade Receivables

| | As at
31.03.26
RM'000 | As at
30.06.2025
RM'000 |
| --- | --- | --- |
| Not past due | 158,824 | 212,902 |
| Past due 1 - 60 days | 20,690 | 26,002 |
| Past due 61 to 120 days | 36,591 | 20,595 |
| Past due more than 120 days | 144,358 | 116,496 |
| | 201,639 | 163,093 |
| Total Trade Receivables | 360,463 | 375,995 |
| Less: Impairment losses | (15,507) | (15,507) |
| Net Trade Receivables | 344,956 | 360,488 |
| Other receivables and deposits | 9,140 | 10,698 |
| | 354,096 | 371,186 |

B10. Financial Instruments

Save for below, there were no financial instruments with off balance sheet risks as at 31 March 2026.

| | As at
31.03.2026
RM'000 | As at
30.06.2025
RM'000 |
| --- | --- | --- |
| Company | | |
| - Financial guarantees given to suppliers and banks for facilities | 108,101 | 106,496 |

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ECONPILE HOLDINGS BERHAD
(Registration No. 201201032676)(1017164-M)
NOTES TO THE INTERIM FINANCIAL STATEMENTS - THIRD QUARTER ENDED 31 MARCH 2026

B11. Material Litigation

a. The legal actions initiated against ASM Development (KL) Sdn. Bhd. (“ASMKL”) for the recovery of the value of work performed include the adjudication proceedings pursuant to Construction Industry Payment and Adjudication Act (“CIPAA”) 2012 and arbitration proceeding at the Asian International Arbitration Centre (“AIAC”).

Econpile (M) Sdn Bhd (“EMSB”) has obtained 2 Adjudication Decisions in its favour and has thereafter successfully enforced the 2 Adjudication Decisions as Orders/Judgments of High Court in 2019 and in 2020, respectively (“HC Decisions”). ASMKL has then appealed against the HC Decisions. The Federal Court had on 3 October 2023 upheld and/or affirmed the HC Decisions.

As no payment was forthcoming from ASMKL, EMSB obtained a Writ of Seizure and Sale proceedings (“WSS”) and a prohibitory orders (“PO”) against a piece of land owned by ASMKL (“Land”), for the purposes of selling the Land by way of a public auction. The first and second public auction of the Land took place on 6 December 2023 and on 24 July 2024. (“Public Auctions”). However, there was no bidder.

On 13 May 2024, a creditor of ASMKL filed a Winding up Petition against ASMKL. On 17 October 2024, another creditor of ASMKL filed a Winding Up Petition against ASMKL. EMSB applied for Judicial Management ("JM") pursuant to Section 404 and 405 of the Companies Act 2016 on 9 December 2024. A Judicial Manager was appointed on 19 January 2026. The JM Order provides ASMKL an automatic moratorium from legal proceedings without leave of court. EMSB has however on the same date, obtained leave to resume the arbitration proceeding pending instruction from the Judicial Manager. In the interim, EMSB has filed a preliminary proof of debt with the JM while concurrently proceeding with the arbitration on its claims.

b. An external party issued a letter of demand against the developer, the main contractor and EMSB (as sub-contractor) for loss and damages amounting to RM4.08 million due to the ongoing construction work at the project site which is adjacent to the tuition centre operated by the external party. In April 2022, the external party filed an application to amend the Writ of Summons and Statement of Claim to delete sum claimed of RM4.08 million and amend it to ‘damages to be assessed by the honourable Court’ which was allowed by the Court. The external party had filed an application to amend the Amended Statement of Claim (Encl.107) on 30 June 2024. The case is fixed for Trial on 7 to 9 September 2026. In the Directors’ opinion, as the case is still in the initial stage, the Group is unable to estimate and determine the potential outcome of the case at this juncture and will continue to monitor the case closely.

c. In December 2016, Gabungan Strategik Sdn Bhd (GSSB) had awarded to China Communication Construction Company (M) Sdn Bhd (“CCCC”) and EMSB the Sub-Contract for the foundation and substructure works for Sungai Besi-Ulu Kelang Elevated Expressway Package CA3 (“the Sub-Contract”). A joint venture agreement was entered into by CCCC and EMSB defining each party’s roles and responsibilities for the purpose of undertaking the works for the Sub-Contract. On 7 January 2022, CCCC has issued a Notice of Termination to GSSB for GSSB’s breach and refusal to perform their obligations under the Sub-Contract resulting in CCCC terminating the sub-contract work.

GSSB issued a Notice of Arbitration on 22 December 2023 against CCCC and EMSB for damages of RM89.74 million for alleged wrongful termination of the Sub-Contract. The Arbitral Tribunal has issued the Procedural Order No. 1 on 27 June 2024. The decision for the arbitration is expected to be delivered at the end of 2026.

d. On 14 July 2023, EMSB commented legal action against IRDK Ventures Sdn Bhd (“IRDK”) and its former directors, Tan Sri Dato Sri Dr. Ramasamy A/L Muthusamy (“TSR”) and Puan Sri Datin Sri Dr. Indra Gandi A/P Elayappan (“DSI”) for the value of construction work performed for IRDK. On 24 April 2026, the High Court held the IRDK and TSR were jointly and severally liable for RM 4,102,751.61 with interest at $5\%$ and RM500,000 in exemplary damages, RM100,000 in costs and RM4,000 in allocatur fees. TSR has filed for an appeal which is set for Case Management on 22 June 2026.

12

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ECONPILE HOLDINGS BERHAD
(Registration No. 201201032676)(1017164-M)
NOTES TO THE INTERIM FINANCIAL STATEMENTS - THIRD QUARTER ENDED 31 MARCH 2026

B12. Dividend

No dividend was declared for the current quarter.

B13. Basic Earning Per Ordinary Share

The calculation of basic earning per ordinary share was based on the loss attributable to ordinary shareholders and a weighted average number of ordinary shares outstanding, calculated as follows:-

| | Current Year
ended
31.03.26 | Preceding Year
ended
31.03.2025 |
| --- | --- | --- |
| Profit attributable to ordinary shareholders of the Company for the financial year (RM'000) | 3,554 | 108 |
| Weighted average number of ordinary shares in issue ('000) | 1,417,500 | 1,417,500 |
| Basic earning per ordinary share (sen) | 0.25 | 0.01 |

B14 Authorised for issue

The interim financial report was authorised for issue by the Board of Directors.

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