ENGTEX GROUP BERHAD — Interim / Quarterly Report 2026

May 27, 2026

Engtex Group Berhad
Registration No. 200101000937 (536693-X)

Quarterly Report on consolidated results
For the First Quarter ended 31 March 2026
(The figures have not been audited)

Condensed Consolidated Statement of Financial Position
As at 31 March 2026

	Note	As at 31 March 2026 RM’000	Audited As at 31 December 2025 RM’000
ASSETS
Property, plant and equipment		367,541	366,741
Right-of-use assets		40,176	40,405
Investment properties		99,342	99,805
Investment in an associate		39	40
Deferred tax assets		9,700	9,662
Total non-current assets		516,798	516,653
Inventories		447,068	455,107
Receivables, deposits and prepayments		377,691	411,844
Current tax assets		956	2,217
Cash and cash equivalents		225,706	216,088
Assets classified as held for sale		-	3,383
Total current assets		1,051,421	1,088,639
TOTAL ASSETS		1,568,219	1,605,292
EQUITY AND LIABILITIES
Share capital		296,142	293,949
Reserves		569,244	565,391
Total equity attributable to Owners of the Company		865,386	859,340
Non-controlling interests		20,485	20,160
TOTAL EQUITY		885,871	879,500
LIABILITIES
Loans and borrowings	B7	49,180	46,414
Lease liabilities		210	261
Deferred tax liabilities		13,193	13,111
Total non-current liabilities		62,583	59,786
Payables and accruals		85,071	105,007
Loans and borrowings	B7	528,293	554,072
Lease liabilities		213	215
Current tax liabilities		6,188	6,712
Total current liabilities		619,765	666,006
TOTAL LIABILITIES		682,348	725,792
TOTAL EQUITY AND LIABILITIES		1,568,219	1,605,292
Number of ordinary shares (’000)		838,913	833,633
Net assets per share (RM)		1.06	1.06

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

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Engtex Group Berhad

Registration No. 200101000937 (536693-X)

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the financial period ended 31 March 2026

	Note	Individual quarter 3 months ended 31 March		Cumulative quarter 3 months ended 31 March
		2026 RM'000	2025 RM'000	2026 RM'000	2025 RM'000
Revenue		322,631	310,342	322,631	310,342
Cost of sales		(277,651)	(279,704)	(277,651)	(279,704)
Gross profit		44,980	30,638	44,980	30,638
Administrative expenses		(15,270)	(14,708)	(15,270)	(14,708)
Distribution costs		(14,140)	(11,937)	(14,140)	(11,937)
Net loss on impairment of financial instruments		(25)	(316)	(25)	(316)
Other operating expenses		(109)	(6)	(109)	(6)
Other operating income		1,682	3,924	1,682	3,924
Operating profit		17,118	7,595	17,118	7,595
Finance costs		(6,195)	(6,478)	(6,195)	(6,478)
Finance income		1,574	1,384	1,574	1,384
Share of loss of an equity-accounted associate, net of tax		(1)	(4)	(1)	(4)
Profit before tax	B11	12,496	2,497	12,496	2,497
Tax expense	B5	(3,218)	(2,456)	(3,218)	(2,456)
Profit and total comprehensive income for the financial period		9,278	41	9,278	41
Profit/(Loss) and total comprehensive income/(expense) attributable to:
Owners of the Company		8,953	407	8,953	407
Non-controlling interests		325	(366)	325	(366)
Profit and total comprehensive income for the financial period		9,278	41	9,278	41
Basic earnings per ordinary share (sen)	B10	1.07	0.05	1.07	0.05
Diluted earnings per ordinary share (sen)	B10	1.04	0.05	1.04	0.05

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 31 December 2025 and the accompanying explanatory notes attached to the interim financial statements.

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Engtex Group Berhad

Registration No. 200101000937 (536693-X)

Condensed Consolidated Statement of Changes In Equity

For the financial period ended 31 March 2026

	Note	/---Attributable to owners of the Company---/
		Share capital RM'000	Treasury shares RM'000	Warrants reserve RM'000	Distributable Retained earnings RM'000	Total RM'000	Non-controlling interests RM'000	Total equity RM'000
At 1 January 2026		293,949	(1,238)	2,039	564,590	859,340	20,160	879,500
Profit and total comprehensive income for the financial period		-	-	-	8,953	8,953	325	9,278
Issuance of shares pursuant to exercise of warrants	A6	2,193	-	(81)	-	2,112	-	2,112
Dividend to owners of the Company	A7	-	-	-	(5,019)	(5,019)	-	(5,019)
Total transactions with owners of the Company		2,193	-	(81)	(5,019)	(2,907)	-	(2,907)
At 31 March 2026		296,142	(1,238)	1,958	568,524	865,386	20,485	885,871
At 1 January 2025		277,614	-*	2,641	542,371	822,626	20,088	842,714
Profit/(Loss) and total comprehensive income/(expense) for the financial period		-	-	-	407	407	(366)	41
Own shares acquired		-	(551)	-	-	(551)	-	(551)
Dividend to owners of the Company		-	-	-	(3,967)	(3,967)	-	(3,967)
Total transactions with owners of the Company		-	(551)	-	(3,967)	(4,518)	-	(4,518)
At 31 March 2025		277,614	(551)	2,641	538,811	818,515	19,722	838,237

• Denotes amount less than RM500.

The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the audited financial statements for the financial year ended 31 December 2025 and the accompanying explanatory notes attached to the interim financial statements.

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Engtex Group Berhad

Registration No. 200101000937 (536693-X)

Condensed Consolidated Statement of Cash Flows

For the financial period ended 31 March 2026

| | Note | 3 months ended
31 March | |
| --- | --- | --- | --- |
| | | 2026
RM'000 | 2025
RM'000 |
| Cash flows from operating activities | | | |
| Profit before tax | | 12,496 | 2,497 |
| Adjustments for: | | | |
| Bad debts written off | | 1 | - |
| Depreciation of: | | | |
| - investment properties | | 463 | 237 |
| - property, plant and equipment | | 5,722 | 5,613 |
| - right-of-use assets | | 229 | 300 |
| Finance costs | | 6,195 | 6,478 |
| Finance income | | (1,574) | (1,384) |
| Gain on disposal of: | | | |
| - a quoted investment | | - | (2,066) |
| - assets classified as held for sale | | (517) | - |
| - property, plant and equipment | | (211) | (299) |
| Gain on derecognition of right-of-use assets | | - | (5) |
| Inventories written down | | 1,500 | 188 |
| Net loss on impairment of financial instruments | | 25 | 316 |
| Plant and equipment written off | | 9 | 3 |
| Share of loss of an equity-accounted
associate, net of tax | | 1 | 4 |
| Operating profit before changes in working capital | | 24,339 | 11,882 |
| Changes in: | | | |
| Inventories | | 6,812 | 24,556 |
| Receivables, deposits and prepayments | | 34,127 | 66,484 |
| Payables and accruals | | (19,936) | (43,063) |
| Cash generated from operations | | 45,342 | 59,859 |
| Interest paid | | (172) | (351) |
| Net tax paid | | (2,437) | (2,796) |
| Net cash from operating activities | | 42,733 | 56,712 |
| Cash flows from investing activities | | | |
| Acquisitions of: | | | |
| - a quoted investment | | - | (7,477) |
| - property, plant and equipment | | (5,469) | (9,647) |
| Interest received | | 1,574 | 1,384 |
| Proceeds from disposal of: | | | |
| - assets classified as held for sale | | 3,900 | - |
| - a quoted investment | | - | 9,543 |
| - property, plant and equipment | | 169 | 564 |
| Net cash from/(used in) investing activities | | 174 | (5,633) |

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Engtex Group Berhad

Registration No. 200101000937 (536693-X)

Condensed Consolidated Statement of Cash Flows

For the financial period ended 31 March 2026

| | Note | 3 months ended
31 March | |
| --- | --- | --- | --- |
| | | 2026
RM’000 | 2025
RM’000 |
| Cash flows from financing activities | | | |
| Dividend paid to owners of the Company | A7 | (5,019) | - |
| Interest paid | | (6,364) | (6,806) |
| Net (repayment of)/ proceeds from: | | | |
| - bankers’ acceptances | | (34,331) | (17,422) |
| - revolving credit | | 3,500 | (12,350) |
| Proceeds from: | | | |
| - issuance of shares pursuant to warrants | | 2,112 | - |
| - term loans | | 5,391 | 3,189 |
| Payment of lease liabilities | | (53) | (66) |
| Repayment of: | | | |
| - hire purchase liabilities | | (475) | (643) |
| - term loans | | (1,796) | (2,082) |
| Repurchase of treasury shares | | - | (551) |
| Net cash used in financing activities | | (37,035) | (36,731) |
| Net increase in cash and cash equivalents | | 5,872 | 14,348 |
| Cash and cash equivalents at the beginning of
financial period | | 210,124 | 115,461 |
| Cash and cash equivalents at the end of
financial period | | 215,996 | 129,809 |

Note:
Cash and cash equivalents comprise:

| | As at
31 March | |
| --- | --- | --- |
| | 2026
RM’000 | 2025
RM’000 |
| | | |
| Cash and bank balances | 199,672 | 121,690 |
| Deposits placed with licensed banks | 26,029 | 24,171 |
| Highly liquid investments with other institutions | 5 | 5 |
| | 225,706 | 145,866 |
| Less: | | |
| Deposit pledged | (600) | (600) |
| Bank overdrafts | (9,110) | (15,457) |
| | 215,996 | 129,809 |

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

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Engtex Group Berhad

Registration No. 200101000937 (536693-X)

Notes to the interim financial report for the financial quarter ended 31 March 2026

A. Compliance with Malaysian Financial Reporting Standards ("MFRS") 134, Interim Financial Reporting and Bursa Listing Requirements

A1. Basis of preparation

The interim financial report is unaudited and has been prepared in compliance with MFRS 134 – Interim Financial Reporting and paragraph 9.22 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad ("Bursa Securities").

The interim financial report should be read in conjunction with the audited financial statements of the Group for the financial year ended 31 December 2025. The accounting policies and methods of computation followed by the Group in this interim financial report are consistent with those adopted in the financial statements of the Group for the financial year ended 31 December 2025 except for the following:

Adoption of new and revised MFRSs, Amendments to MFRS and IC Interpretations

In the current financial period ended 31 March 2026, the Group adopted the following standards, amendments and interpretations that are effective for annual periods beginning on or after 1 January 2026 to its financial statement:

• Amendments to MFRS 9, Financial Instruments and MFRS 7, Financial Instruments: Disclosures – Classification and Measurement of Financial Instruments
• Amendments that are part of Annual Improvements – Volume 11:
• Amendments to MFRS 1, First-time Adoption of Malaysian Financial Reporting Standards
• Amendments to MFRS 7, Financial Instruments: Disclosures
• Amendments to MFRS 9, Financial Instruments
• Amendments to MFRS 10, Consolidated Financial Statements
• Amendments to MFRS 107, Statement of Cash Flows
• Amendments to MFRS 9, Financial Instruments and MFRS 7, Financial Instruments: Disclosures – Contracts Referencing Nature-dependent Electricity

The above amendments are expected to have no significant impact to the financial statements of the Group upon their initial application.

A2. Qualification of Audit Report

The audit report of the Group’s preceding annual financial statements was reported without qualification.

A3. Seasonal or cyclical factors

The business of the Group was not affected by any significant seasonal or cyclical factors in the current financial quarter.

A4. Unusual items affecting assets, liabilities, equity, net income or cash flows

The business of the Group was not affected by any significant unusual items affecting assets, liabilities, equity, net income or cash flows in the current financial quarter.

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Engtex Group Berhad

Registration No. 200101000937 (536693-X)

A5. Material changes in estimates

There was no material changes in estimates used in reporting the current financial period as compared to the financial statements of the Group for the financial year ended 31 December 2025.

A6. Debt and Equity Securities

On 28 May 2026, the shareholders of the Company granted their approval for the Company’s plan to repurchase its ordinary shares at the Twenty-Fifth Annual General Meeting held on even-date.

As of 31 March 2026, the Company held a total of 2,367,901 of its own shares. The shares repurchased are being held as treasury shares in accordance with Section 127 of the Companies Act 2016.

There was no other issuance, cancellation, repurchases, resale and repayment of debt and equity securities for the current financial quarter, except as follows:

Issuance of shares pursuant to the exercise of Warrants 2021/2026

During the current financial quarter, a total of 5,280,000 warrants were exercised by the registered warrantholders to subscribe for 5,280,000 new ordinary shares in the Company at the price of RM0.40 per ordinary share for every warrant exercised.

As at 31 March 2026, 127,795,488 Warrants 2021/2026 remained unexercised.

A7. Dividend paid

The final single-tier dividend of 0.6 sen per ordinary share totalling RM5,019,270 in respect of the financial year ended 31 December 2025 was paid on 31 March 2026 to depositors whose names in the Record of Depositors on 12 March 2026.

A8. Operating segment information

The Group has 4 reportable segments, as described below, which are the Group’s strategic business units. For each strategic business units, the Group Managing Director and the Board of Directors review management reports on at least a quarterly basis. The following summary described the operations in each of the Group reportable segments:

Wholesale and distribution	Includes wholesale and distribution of pipes, valves, fittings, plumbing materials, steel related products, general hardware products and construction materials.
Manufacturing	Includes manufacturing and sale of steel and ductile iron pipes and fittings, valves, manhole covers, hydrants, industrial casting products, welded wire mesh, hard-drawn wire, bitumen products and other steel-related products.
Property development	Includes property development and investment activities.
Hospitality	Includes the operation of hotel rooms, food and beverage, meeting and function rooms, and other hospitality services.

Other non-reportable segment comprise operations related to the corporate assets and expenses, and other operations which are not sizeable to be reported separately.

7

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Engtex Group Berhad

Registration No. 200101000937 (536693-X)

The reportable segment information for the financial period ended 31 March 2026 is as follows:

| Business segments | Wholesale & distribution
RM’000 | Manufacturing
RM’000 | Property development
RM’000 | Hospitality
RM’000 | Total
RM’000 |
| --- | --- | --- | --- | --- | --- |
| External revenue | 150,694 | 168,266 | 305 | 3,121 | 322,386 |
| Inter segment revenue | 10,036 | 46,234 | 169 | 43 | 56,482 |
| Total reportable revenue | 160,730 | 214,500 | 474 | 3,164 | 378,868 |
| Reportable segment profit/(loss)* | 8,818 | 15,176 | 172 | (166) | 24,000 |
| Reportable segment assets | 538,241 | 797,452 | 133,934 | 51,552 | 1,521,179 |
| Reportable segment liabilities | (260,769) | (407,618) | (2,002) | (7,442) | (677,831) |

Reconciliation of reportable segment profit or loss for the financial period ended 31 March 2026

	RM’000
Total profit for reportable segments*	24,000
Other non-reportable segment profit	(398)
Elimination of inter-segment transactions	(70)
Depreciation	(6,414)
Finance costs	(6,195)
Finance income	1,574
Share of loss of an equity-accounted associate, net of tax	(1)
Consolidated profit before tax	12,496

• Refer to profit before interest, tax, depreciation and amortisation.

A9. Subsequent events

(i) Issuance of shares pursuant to the exercise of Warrants 2021/2026

A total of 6,155,250 warrants were exercised by the registered warrantholders to subscribe for 6,155,250 new ordinary shares in the Company at RM0.40 per ordinary share for every warrant exercised.

(ii) Repurchase of treasury shares

The Company repurchased 800,000 of its issued share capital from the open market at an average price of RM0.49 per share plus the transactions cost for a total cash consideration of RM395,694.

Other than the above, there were no other material subsequent events since the end of the date of the last annual reporting period until 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 financial period under review.

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Engtex Group Berhad

Registration No. 200101000937 (536693-X)

A10. Changes in the composition of the Group

There is no material change in the composition of the Group for the current financial quarter under review.

A11. Contingent liabilities

As at the end of the current financial quarter, the contingent liabilities of the Company as represented by the outstanding banking and credit facilities of the subsidiaries are as follows:

	31 March 2026 RM’000	31 December 2025 RM’000
Corporate guarantees issued to:
- financial institutions for bank facilities granted to its subsidiaries	576,380	599,972
- suppliers for credit facilities granted to its subsidiaries	1,957	4,152
	578,337	604,124

B. Compliance with Bursa Securities Main Market Listing Requirements (Part A of Appendix 9B)

B1. Review of performance

| | 3 months ended
31 March | |
| --- | --- | --- |
| | 2026 | 2025 |
| | RM’000 | RM’000 |
| Revenue | 322,631 | 310,342 |
| Segmental profit | 23,602 | 13,746 |
| Profit before tax | 12,496 | 2,497 |
| Profit after tax | 9,278 | 41 |
| Profit attributable to Owners of the Company | 8,953 | 407 |

The Group recorded an increase in year-on-year net revenue, segment profit and profit before tax mainly attributable to the recovery in market demand for certain metal-related trading products and manufactured steel products.

On the financial review for the three months ended 31 March 2026, the Group’s equity attributable to owners of the Company increased marginally by 0.71% from RM859.3 million as of 31 December 2025 to RM865.4 million as of 31 March 2026 mainly due to the increased retained earnings and conversion of warrants. Accordingly, the net assets per share of the Group remained at RM1.06 as of 31 December 2025 and 31 March 2026 respectively due to the enlarged capital base. The decrease in net gearing ratio from 0.44 times as of 31 December 2025 to 0.40 times as of 31 March 2026 was mainly due to the decrease in net bank borrowings to procure raw materials and trading inventories, finance the trade receivables and support other working capital requirements.

Wholesale and distribution segment

The wholesale and distribution segment recorded a higher net revenue of RM150.7 million (2025: RM145.5 million) which represented an increase of 3.5% and the segment contributed 46.7% of the Group’s total net revenue. The increase in net revenue was mainly due to the recovery in market demand.

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10

Engtex Group Berhad

Registration No. 200101000937 (536693-X)

This segment recorded a higher segmental profit of RM8.8 million (2025: RM7.7 million) and profit before tax of RM5.7 million (2025: RM4.2 million) which represented a year-on-year increase of 13.8% and 36.0% respectively. This segment accounted for 37.4% (2025: 56.4%) of the Group’s segmental profit and 45.7% (2024: entire) of Group’s profit before tax.

The profit before tax included a gain on disposal of a property located at Bandar Sungai Buloh, Selangor of RM0.5 million (2025: Nil), inventories written down of RM1.5 million (2025: RM0.2 million) and gain on disposal of a quoted investment of RM2.1 million in 2025. Excluding the above, the increase in year-on-year operating profit before tax of RM6.7 million (2025: RM2.3 million) was in tandem with higher revenue.

Manufacturing segment

The manufacturing segment recorded a higher net revenue of RM168.3 million (2025: RM159.2 million) which represented an increase of 5.7% and the segment contributed 52.2% of the Group’s total net revenue. The increase in net revenue was mainly due to the increase in delivery output for certain manufactured steel products. The segment posted a significant increase in segmental profit of RM15.2 million (2025: RM5.7 million) which represented a year-on-year increase of 167.0%, and recorded a profit before tax of RM8.3 million as compared to a loss before tax of RM0.8 million in 2025. This segment accounted for 37.4% (2025: 41.4%) of the Group’s segmental profit and 66.1% of the Group’s profit before tax.

The significant improvement in segment profit and profit before tax was mainly due to lower production cost on the back of higher production and delivery output for certain manufactured steel products.

Property development segment

This segment recorded a lower net revenue of RM0.3 million (2025: RM1.9 million) and contributed 0.1% to the Group’s net revenue. The revenue was mainly derived from the lease income of properties in the Emerald Avenue, Selayang and Amanja project located at Kepong. The residential units for the Amanja project were 98.2% (2025: 96.4%) sold as of 31 March 2026.

There are still 4 unsold residential units at the Amanja project and 26 unsold commercial and residential units at the Emerald Avenue project remaining for sale. This segment recorded a lower loss before tax of RM0.2 million (2025: RM1.0 million) primarily due to the lower selling prices for the sold units at Amanja project in 2025.

Hospitality segment

This segment recorded a lower net revenue of RM3.1 million (2025: RM3.4 million) from its two operating hotels, Ibis Styles and Mercure hotels with an occupancy rate of 60.1%. In 2025, the segment achieved an occupancy rate of 54.4% from 3 operating hotels prior to the closure of Avenue J hotel in the third quarter of 2025.

The segment recorded a marginal increase in operating loss before tax of RM0.7 million (2025: RM0.5 million) primarily due to borrowing cost and depreciation of RM0.8 million (2025: RM0.8 million).

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Engtex Group Berhad

Registration No. 200101000937 (536693-X)

B2. Comparison with preceding financial quarter’s results

	3 months ended
	31/3/26	31/12/25
	RM’000	RM’000
Revenue	322,631	374,454
Profit before tax	12,496	24,299

The decrease in quarter-on-quarter revenue was mainly due to the lower delivery output for certain metal-related trading products and manufactured steel products. The quarter-on-quarter profit before tax included gain on disposal properties of RM0.5 million (Q4 2025: RM10.0 million), inventories written down of RM1.5 million (Q4 2025: RM1.7 million) and net losses on impairment of trade receivables of RM4.9 million in the preceding quarter. Excluding the above, the lower quarter-on-quarter operating profit before tax of RM13.5 million (Q4 2025: RM20.9 million) was due to lower revenue and higher production cost due to lower production and delivery output for certain manufactured steel products.

B3. Prospects

The Malaysian economy expanded by 5.4% in the first quarter of 2026 (4Q 2025: 6.2%), driven mainly by domestic demand. Household spending remained supported by positive labour market conditions, with the unemployment rate staying low alongside targeted policy measures. Investment growth was underpinned by continued implementation of multi-year projects by both the private and public sectors, a high realisation rate of approved investments, and the ongoing rollout of national master plans. On the supply side, growth in services sector moderated while the manufacturing sector performance remained supported by stronger electrical and electronics (“E&E”) performance in line with continued demand for artificial intelligence and data centre-related components. In addition, the growth in the construction sector has normalised from a double-digit growth amid a moderation in residential construction and civil engineering activities. On a quarter-on-quarter, seasonally-adjusted basis, the economy contracted by -0.01% (4Q 2025: 1.4%) given last quarter’s very strong performance.

Malaysia will inevitably face both direct and indirect impact from the ongoing geopolitical conflict in the Middle East. Higher energy prices, supply chain disruptions, and heightened uncertainty are expected to weigh on the external environment. Nevertheless, the Malaysian economy is expected to remain resilient in 2026 with growth expected to come in within the range of 4% to 5%, supported by steady domestic demand and continued expansion in our export performance. The resilient domestic demand will provide a strong buffer against external headwinds. Household spending will be underpinned by firm labour market conditions and continuous policy support. Investment activity will be driven by the continued progress of multi-year projects in both the private and public sectors, as well as the ongoing implementation of national master plans. (Source: BNM: Economic and Financial Developments in Malaysia in the First Quarter of 2026)

The above uncertainties in local and global economic outlook will pose challenges for our existing businesses in all segments. The performance of the Group will rely on factors such as the recovery of domestic demand, the volatility in the international and domestic metal prices and the timely implementation of projects in the construction, utilities, infrastructure and property development sectors. Notwithstanding this, the wholesale and distribution segment will continue to focus on expanding its existing customer network and product range and sourcing for new products locally and abroad. The manufacturing segment will improve, automate, optimise and expand its operating capacity, and continue to look for new business opportunity. The property development segment will focus on selling its remaining unsold residential and commercial properties located at Kepong and Selayang, and explore property development opportunity or sale of its existing landbank. The hospitality segment shall focus on increasing its revenue from the letting of rooms to the local and

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Engtex Group Berhad
Registration No. 200101000937 (536693-X)

foreign tourists, and MICE activities to achieve higher gross operating profits from its 2 operating hotels located at Selayang and Bandar Sri Damansara.

The performance of the Group in the current year remains challenging as it is dependent on the domestic demand and economic activities.

B4. Profit Forecast and/or Profit Guarantee

Not applicable as no profit forecast was published.

B5. Tax expense

	Individual quarter 3 months ended 31/3/26 RM’000	Cumulative quarter 3 months ended 31/3/26 RM’000
Income tax expense
- current financial period	3,112	3,112
Real Property Gains Tax
- current financial year	70	70
Deferred tax expense
- origination and reversal of temporary differences	36	36
	3,218	3,218
Reconciliation of tax expense
Income tax using Malaysian tax rate of 24%	2,999	2,999
Non-deductible expenses	989	989
Income not subject to tax	(124)	(124)
Real Property Gains Tax	70	70
Utilisation of previously unrecognised deferred tax benefits	(716)	(716)
	3,218	3,218

B6. Status of Corporate Proposals Announced

There were no corporate proposals announced but not completed for the financial quarter under review.

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Engtex Group Berhad

Registration No. 200101000937 (536693-X)

B7. Group Borrowings and Debt Securities

The Group’s borrowings as at 31 March 2026 were as follows:

	Secured RM’000	Unsecured RM’000	Total RM’000
Non-current
Denominated in Ringgit Malaysia
Hire purchase liabilities	172	-	172
Term loans	49,008	-	49,008
	49,180	-	49,180
Current
Denominated in Ringgit Malaysia
Bank overdrafts	596	8,514	9,110
Hire purchase liabilities	940	-	940
Revolving credit	-	82,945	82,945
Bankers’ acceptances	109,613	317,707	427,320
Term loans	7,978	-	7,978
	119,127	409,166	528,293

B8. Changes in Material Litigation

There was no impending material litigation as at 21 May 2026, being the date not earlier than 7 days from the date of this announcement.

B9. Dividend declared

The Directors does not recommend any interim dividend for the financial quarter ended 31 March 2026.

B10. Basic and diluted earnings per ordinary share

Basic earnings per share

The calculation of basic earnings per ordinary share for the current financial quarter ended 31 March 2026 are based on the profit attributable to owners of the Company and the weighted average number of ordinary shares in issue as follows:

	Individual quarter 3 months ended 31 March		Cumulative quarter 3 months ended 31 March
	2026 '000	2025 '000	2026 '000	2025 '000
Profit attributable to owners of the Company (RM)	8,953	407	8,953	407
Issued ordinary shares as at 1 January	833,633	794,302	833,633	794,302
Effects of treasury shares held	(2,368)	(550)	(2,368)	(550)
Effect of exercise of warrants	2,172	-	2,172	-
Weighted average number of ordinary shares as at 31 March	833,437	793,752	833,437	793,752
Basic earnings per ordinary share (sen)	1.07	0.05	1.07	0.05

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Engtex Group Berhad

Registration No. 200101000937 (536693-X)

Diluted earnings per ordinary share

The calculation of diluted earnings per ordinary share for the current financial quarter ended 31 March 2026 are based on the profit attributable to owners of the Company and the weighted average number of ordinary shares outstanding after adjusting for the effects of all dilutive potential ordinary shares as calculated below:

	Individual quarter 3 months ended 31 March		Cumulative quarter 3 months ended 31 March
	2026	2025	2026	2025
	'000	'000	'000	'000
Profit attributable to owners of the Company (RM)	8,953	407	8,953	407
Weighted average number of ordinary shares (basic) as at 31 March	833,437	793,752	833,437	793,752
Effects of exercise of warrants	30,209	38,498	30,209	38,498
Weighted average number of ordinary shares (diluted) as at 31 March	863,646	832,250	863,646	832,250
Diluted earnings per ordinary share (sen)	1.04	0.05	1.04	0.05

B11. Profit before tax

	Individual quarter 3 months ended 31/3/26 RM'000	Cumulative quarter 3 months ended 31/3/26 RM'000
Profit before tax is arrived at after charging/(crediting):
Bad debt written off	1	1
Depreciation of:
- investment properties	463	463
- property, plant and equipment	5,722	5,722
- right-of-use assets	229	229
Finance costs	6,195	6,195
Finance income	(1,574)	(1,574)
Gain on disposal of:
- assets classified as held for sale	(517)	(517)
- property, plant and equipment	(211)	(211)
Inventories written down	1,500	1,500
Net loss on impairment of financial instruments
- trade receivables	25	25
Plant and equipment written off	9	9
Realised gain on foreign exchange, net	(51)	(51)
Rental income:
- land and buildings	(619)	(619)
- vehicle	(49)	(49)
Share of loss of an equity-accounted associate, net of tax	1	1

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Engtex Group Berhad

Registration No. 200101000937 (536693-X)

B12. Capital commitment

| | 31 March 2026
RM'000 |
| --- | --- |
| Property, plant and equipment | |
| Authorised but not contracted for | 37,025 |
| Contracted but not provided for | 22,225 |
| | 59,250 |

B13. Related party transactions

Significant related party transactions with companies in which certain Directors have interests for the financial period ended 31 March 2026 were as follows:

	RM'000
Sales	(757)
Purchases	3,531
Rental income	(67)
Expenses relating to short-term leases	362
Consultancy fee expenses	181

These transactions have been entered into in the normal course of business and have been established under negotiated term.

B14. Provision of financial assistance

Pursuant to paragraph 8.23(1) of the Listing Requirements, the amount of financial assistance provided by the Company and its subsidiaries based on the outstanding banking and credit facilities are as follows:

| | 31 March 2026
RM'000 | 31 December 2025
RM'000 |
| --- | --- | --- |
| Corporate guarantees issued to: | | |
| - financial institutions for bank facilities granted to its non-wholly owned subsidiaries | 98,889 | 106,255 |
| - suppliers for credit facilities granted to its non-wholly owned subsidiaries | 51 | 194 |
| | 98,940 | 106,449 |

The above financial assistance does not have a material financial impact on the Group.