EPB GROUP BERHAD — Interim / Quarterly Report 2026

May 17, 2026

EPB

GROUP BERHAD

EPB GROUP BERHAD

Registration No.: 202201007128 (1452825-U)

(Incorporated in Malaysia under the Companies Act, 2016)

INTERIM FINANCIAL REPORT

FOR THE FIRST QUARTER ENDED 31 MARCH 2026

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EPB GROUP BERHAD

Registration No.: 202201007128 (1452825-U)

(Incorporated in Malaysia under the Companies Act, 2016)

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UNAUDITED) $^{(1)}$

	Notes	Individual quarter		Cumulative quarter
		Current quarter ended 31-Mar-26 RM'000	Comparative quarter ended 31-Mar-25 RM'000	Current period-to-date ended 31-Mar-26 RM'000	Comparative period-to-date ended 31-Mar-25 RM'000
Revenue	A13	21,107	27,249	21,107	27,249
Cost of sales		(14,382)	(18,256)	(14,382)	(18,256)
Gross profit		6,725	8,993	6,725	8,993
Other income		653	849	653	849
Selling and distribution expenses		(2,055)	(2,363)	(2,055)	(2,363)
Administration and other operating expenses		(4,644)	(3,838)	(4,644)	(3,838)
Operating profit		679	3,641	679	3,641
Finance costs		(8)	(30)	(8)	(30)
Profit before taxation ("PBT")	B11	671	3,611	671	3,611
Taxation	B5	(170)	(979)	(170)	(979)
Profit for the financial period ("PAT")		501	2,632	501	2,632
Other comprehensive income, net of tax
Item that will be reclassified subsequently to profit or loss, net of tax effects
- Exchange loss on translation of foreign operations		(62)	(223)	(62)	(223)
Total comprehensive income for the financial period		439	2,409	439	2,409
PAT for the financial period attributable to: -
Owners of the Company		502	2,632	502	2,632
Non-controlling interests ("NCI")		(1)	-	(1)	-
		501	2,632	501	2,632
Total comprehensive income for the financial period attributable to: -
Owners of the Company		440	2,409	440	2,409
NCI		(1)	-	(1)	-
		439	2,409	439	2,409

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EPB GROUP BERHAD

Registration No.: 202201007128 (1452825-U)

(Incorporated in Malaysia under the Companies Act, 2016)

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UNAUDITED)(1) (CONT'D)

	Notes	Individual quarter		Cumulative quarter
		Current quarter ended 31-Mar-26 RM'000	Comparative quarter ended 31-Mar-25 RM'000	Current period-to-date ended 31-Mar-26 RM'000	Comparative period-to-date ended 31-Mar-25 RM'000
Earnings per share (“EPS”) attributable to owners of the Company: -
Basic EPS(2) (sen)	B9	0.13	0.71	0.13	0.71
Diluted EPS(2) (sen)	B9	0.13	0.71	0.13	0.71

Notes: -
(1) The basis of preparation of the Unaudited Consolidated Statement of Profit or Loss and Other Comprehensive Income is disclosed in Note A1 and should be read in conjunction with the audited consolidated financial statements of EPB Group Berhad ("EPB" or "Company") for the financial year ended 31 December 2025 ("FYE 2025"), as disclosed in the annual report for the FYE 2025 ("Annual Report") and the accompanying explanatory notes attached to this interim financial report.
(2) Please refer to Note B9 for further details.

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EPB GROUP BERHAD

Registration No.: 202201007128 (1452825-U)

(Incorporated in Malaysia under the Companies Act, 2016)

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(UNAUDITED)⁽¹⁾

| | As at
31-Mar-26
(unaudited)
RM'000 | As at
31-Dec-25
(audited)
RM'000 |
| --- | --- | --- |
| ASSETS | | |
| Non-current Assets | | |
| Property, plant and equipment | 17,948 | 15,398 |
| Intangible assets | 818 | 846 |
| Right-of-use assets | 28,544 | 28,684 |
| | 47,310 | 44,928 |
| Current Assets | | |
| Inventories | 13,885 | 13,634 |
| Trade receivables | 15,462 | 15,856 |
| Other receivables, deposits and prepayments | 10,210 | 7,340 |
| Fixed deposits with licensed banks | 25,840 | 29,219 |
| Cash and bank balances | 31,986 | 34,465 |
| Tax recoverable | 1,548 | 551 |
| | 98,931 | 101,065 |
| TOTAL ASSETS | 146,241 | 145,993 |
| EQUITY AND LIABILITIES | | |
| Equity | | |
| Share capital | 68,878 | 68,878 |
| Merger deficit | (24,491) | (24,491) |
| Exchange translation reserve | (1,722) | (1,660) |
| Retained profits | 68,278 | 67,776 |
| Equity attributable to owners of the Company | 110,943 | 110,503 |
| NCI | (4) | (3) |
| Total Equity | 110,939 | 110,500 |
| Non-current Liabilities | | |
| Lease liabilities | 331 | 403 |
| Bank borrowings | 8,782 | 8,939 |
| Deferred tax liabilities | 104 | 317 |
| | 9,217 | 9,659 |
| Current Liabilities | | |
| Trade payables | 4,364 | 5,680 |
| Other payables, deposits and accrued liabilities | 20,748 | 19,133 |
| Lease liabilities | 290 | 328 |
| Bank borrowings | 485 | 436 |
| Tax payable | 198 | 257 |
| | 26,085 | 25,834 |
| Total Liabilities | 35,302 | 35,493 |
| TOTAL EQUITY AND LIABILITIES | 146,241 | 145,993 |
| Number of ordinary shares ('000) | 372,000 | 372,000 |
| Net assets per share (RM) | 0.30 | 0.30 |

Note: -
(1) The basis of preparation of the Unaudited Consolidated Statement of Financial Position is disclosed in Note A1 and should be read in conjunction with the audited consolidated financial statements of the Company for the FYE 2025, as disclosed in the Annual Report and the accompanying explanatory notes attached to this interim financial report.

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EPB GROUP BERHAD

Registration No.: 202201007128 (1452825-U)

(Incorporated in Malaysia under the Companies Act, 2016)

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(UNAUDITED)⁽¹⁾

	Non-Distributable			Distributable
	Ordinary shares RM'000	Merger deficit RM'000	Exchange translation reserve RM'000	Retained profits RM'000	Total RM'000	NCI RM'000	Total Equity RM'000
Balance at 1 January 2025	68,878	(24,491)	420	57,823	102,630	-	102,630
Profit for the financial period	-	-	-	2,632	2,632	-	2,632
Exchange loss on translation of foreign operations	-	-	(223)	-	(223)	-	(223)
Total comprehensive income for the financial period	-	-	(223)	2,632	2,409	-	2,409
Balance at 31 March 2025	68,878	(24,491)	197	60,455	105,039	-	105,039
Balance at 1 January 2026	68,878	(24,491)	(1,660)	67,776	110,503	(3)	110,500
Profit for the financial period	-	-	-	502	502	(1)	501
Exchange loss on translation of foreign operations	-	-	(62)	-	(62)	-	(62)
Total comprehensive income for the financial period	-	-	(62)	502	440	(1)	439
Balance at 31 March 2026	68,878	(24,491)	(1,722)	68,278	110,943	(4)	110,939

Note: -
⁽¹⁾ The basis of preparation of the Unaudited Consolidated Statement of Changes in Equity is disclosed in Note A1 and should be read in conjunction with the audited consolidated financial statements of the Company for the FYE 2025, as disclosed in the Annual Report and the accompanying explanatory notes attached to this interim financial report.

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EPB GROUP BERHAD

Registration No.: 202201007128 (1452825-U)

(Incorporated in Malaysia under the Companies Act, 2016)

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)⁽¹⁾

| | Current
period-to-date
ended
31-Mar-26
RM'000 | Comparative
period-to-date
ended
31-Mar-25
RM'000 |
| --- | --- | --- |
| CASH FLOWS FROM OPERATING ACTIVITIES | | |
| Profit before taxation | 671 | 3,611 |
| Adjustments for: - | | |
| Amortisation of intangible assets | 34 | 2 |
| Deposits received forfeited | (64) | * |
| Depreciation of property, plant and equipment | 257 | 263 |
| Depreciation of rights-of-use assets | 231 | 131 |
| (Gain)/Loss on disposal of property, plant and equipment | (9) | 1 |
| Interest expenses | 8 | 30 |
| Interest income | (268) | (238) |
| Net additional allowance for impairment loss on trade receivables | 1,224 | 504 |
| Property, plant and equipment written off | - | * |
| Unrealised gain on foreign exchange - net | (244) | (89) |
| Write-down in value of inventories - net | 48 | 48 |
| Operating profit before working capital changes | 1,888 | 4,263 |
| Increase in inventories | (149) | (1,012) |
| Increase in trade and other receivables | (1,341) | (7,613) |
| (Decrease)/Increase in trade and other payables | (1,808) | 7,396 |
| | (1,410) | 3,034 |
| Interest paid | (8) | (30) |
| Tax paid | (1,438) | (655) |
| Net cash (used in)/from operating activities | (2,856) | 2,349 |
| CASH FLOWS FROM INVESTING ACTIVITIES | | |
| Acquisition of intangible asset | (7) | - |
| Acquisition of property, plant and equipment | (2,807) | (128) |
| Acquisition of right-of-use assets | (91) | - |
| Deposit paid for property, plant and equipment | - | (17,996) |
| Interest received | 268 | 238 |
| Proceeds received from disposal of property, plant and equipment | 9 | 8 |
| (Placement)/Withdrawal of fixed deposits with maturity periods exceeding 3 months | (50) | 25,306 |
| Net cash (used in)/from investing activities | (2,678) | 7,428 |
| CASH FLOWS FROM FINANCING ACTIVITIES | | |
| Net (repayment)/drawdown of term loans | (109) | 8,456 |
| Net repayment of lease liabilities | (110) | (101) |
| Net cash (used in)/from financing activities | (219) | 8,355 |

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EPB GROUP BERHAD

Registration No.: 202201007128 (1452825-U)

(Incorporated in Malaysia under the Companies Act, 2016)

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)(1) (CONT'D)

	Current period-to-date ended 31-Mar-26 RM'000	Comparative period-to-date ended 31-Mar-25 RM'000
Net (decrease)/increase in cash and cash equivalents	(5,753)	18,132
Exchange difference on cash and cash equivalents	(155)	(66)
Cash and cash equivalents at beginning of financial period	63,134	46,833
Cash and cash equivalents at end of the financial period	57,226	64,899
Cash and cash equivalents comprise: -
Cash and bank balances	31,986	43,815
Fixed deposits with licensed banks with maturity periods not exceeding 3 months	25,240	21,084
Cash and cash equivalents in the consolidated statement of cash flows	57,226	64,899
Add: -
Fixed deposits with licensed bank with maturity periods exceeding 3 months	600	-
Cash and cash equivalents in the consolidated statement of financial position	57,826	64,899

Notes: -
(1) The basis of preparation of the Unaudited Consolidated Statement of Cash Flows is disclosed in Note A1 and should be read in conjunction with the audited consolidated financial statements of the Company for the FYE 2025, as disclosed in the Annual Report and the accompanying explanatory notes attached to the interim financial report.

• Less than RM1,000.

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EPB GROUP BERHAD
Registration No.: 202201007128 (1452825-U)
(Incorporated in Malaysia under the Companies Act, 2016)

EXPLANATORY NOTES PURSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARD ("MFRS") 134

A1. BASIS OF PREPARATION

The interim financial report has been prepared in accordance with MFRS 134 Interim Financial Reporting issued by the Malaysian Accounting Standards Board ("MASB") and Rule 9.22 and Appendix 9B of the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad ("Bursa Securities").

This interim financial report should be read in conjunction with audited consolidated financial statements of the Company for the FYE 2025, as disclosed in the Annual Report and the accompanying explanatory notes attached to this interim financial report. Any discrepancies in the tables between the amounts listed and the totals in this interim financial report are due to rounding.

A2. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

The material accounting policy information and methods of computation adopted by EPB and its subsidiaries ("Group") in this interim financial report are consistent with those adopted in the audited consolidated financial statements for the FYE 2025 except for the adoption of the following MFRSs and amendments to MFRSs: -

Effective for annual periods beginning on or after 1 January 2026

• Amendments to MFRS 9 and MFRS 7 - Amendments to the Classification and Measurement of Financial Instruments
• Amendments to MFRS 9 and MFRS 7 - Contracts Referencing Nature-dependent Electricity
• Annual Improvements to MFRS Accounting Standards – 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

The adoption of the above amendments to MFRS did not have any significant financial impact to the Group upon their initial application.

The following MFRSs and amendments to the MFRSs have been issued by the MASB but are not early adopted by the Group: -

Effective for annual periods beginning on or after 1 January 2027

• Amendments to MFRS 121 – Translation to a Hyperinflationary Presentation Currency
• MFRS 18 - Presentation and Disclosure in Financial Statements
• MFRS 19 - Subsidiaries without Public Accountability: Disclosures
• Amendments to MFRS 19 – Subsidiaries without Public Accountability: Disclosures

Effective for annual periods beginning on or after a date to be determined by the MASB

• Amendments to MFRS 10 and MFRS 128 - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

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EPB GROUP BERHAD
Registration No.: 202201007128 (1452825-U)
(Incorporated in Malaysia under the Companies Act, 2016)

A2. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION (CONT'D)

The Group will apply the above new MFRSs and amendments to MFRSs that are applicable once they become effective and the adoption is not expected to have any material impact on the Group's financial statements in the period of initial application, save as disclosed below: -

MFRS 18 – Presentation and Disclosure in Financial Statement

The new MFRS 18 will replace MFRS 101 - Presentation of Financial Statements while retaining many of the requirements in MFRS 101 with limited changes. MFRS 18 introduces new specified categories and defined subtotals in the statement of profit or loss, disclosures on management-defined performance measures that are reported outside an entity's financial statements in the notes to the financial statements, and enhanced principles on aggregation and disaggregation of information in the financial statements.

The new standard will redefine financial performance reporting by an entity through a new structure of the statement of profit or loss and additional disclosures for performance measures, but it will not impact the recognition and measurement of items in the financial statements of the entity.

A3. AUDITORS' REPORT ON PRECEDING ANNUAL FINANCIAL STATEMENTS

The auditors' report on the Group's most recent annual audited financial statements for the FYE 2025 were not subject to any qualification.

A4. SEASONALITY OR CYCLICALITY OF OPERATION

The business operations of the Group were not affected by any notable seasonal or cyclical trend during the current quarter and period-to-date under review.

A5. UNUSUAL ITEMS

There were no unusual items affecting the assets, liabilities, equity, net income or cash flows of the Group during the current quarter and period-to-date under review.

A6. MATERIAL CHANGES IN ESTIMATES

There were no significant changes in estimates of amounts reported in prior financial years that have a material impact on the current quarter and period-to-date under review.

A7. DEBTS AND EQUITY SECURITIES

There was no issuance, cancellation, repurchase, resale and repayment of debts and equity securities during the current quarter and period-to-date under review.

A8. DIVIDEND PAID/DECLARED

No dividends were paid/declared during the current quarter and period-to-date under review.

A9. MATERIAL EVENTS SUBSEQUENT TO THE END OF THE CURRENT QUARTER AND PERIOD-TO-DATE UNDER REVIEW

There were no material events subsequent to the end of the current quarter and period-to-date under review that have not been reflected in this interim financial report.

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EPB GROUP BERHAD

Registration No.: 202201007128 (1452825-U)

(Incorporated in Malaysia under the Companies Act, 2016)

A10. CHANGES IN THE COMPOSITION OF THE GROUP

(a) On 12 January 2026, EPB Capital Limited (a wholly-owned subsidiary of the Company), subscribed for 9,599,998 units of share representing approximately 80.00% equity interest in Bestworld Services Solution Inc at the subscription price of Philippines Peso ("PHP") 1 per share. The name of the company was subsequently changed to Best Solution Services Inc on 20 February 2026 ("BW Philippines"). BW Philippines is intended to be principally involved in: -

(i) providing installation, repair and maintenance services; and
(ii) wholesale trading, including the import and export of goods.

BW Philippines is a company incorporated in the Philippines under the Revised Corporation Code of the Philippines (Republic Act No. 11232) and the Foreign Investments Act of 1991 (Republic Act No. 7042) with a registered capital of PHP12,000,000, comprising 12,000,000 shares. The directors of BW Philippines as at the date of incorporation are Liew Meng Hooi, Yeow Song You and Meinrad David Reyes.

The shareholders of BW Philippines and their respective shareholdings as at the date of incorporation are as follows: -

Name	No. of shares	%
EPB Capital Limited	9,599,998	80.00
Liew Meng Hooi	1	*
Yeow Song You	1	*
Meinrad David Reyes	2,400,000	20.00
	12,000,000	100.00

Note: -
* Less than 0.01%.

(b) On 20 January 2026, EPB Capital Limited (a wholly-owned subsidiary of the Company), subscribed for 6,000 units of share representing approximately 60.00% equity interest in Bestworld Services Solution Limited at the subscription price of Hong Kong Dollar (HKD) 1 per share. The name of the company was subsequently changed to Best Solution Corporation Limited on 4 February 2026 ("Best Solution HK"). Best Solution HK is intended to be principally involved in import and export trade.

Best Solution HK is a company incorporated in Hong Kong under the Companies Ordinance (Chapter 622 of the Laws of Hong Kong) with a registered capital of Hong Kong Dollar ("HKD") 10,000 comprising 10,000 shares. The directors of Best Solution HK as at the date of incorporation are Liew Meng Hooi, Yeow Song You, Meinrad David Reyes and Joselito Pagtalunan Adriano.

The shareholders of Best Solution HK and their respective shareholdings as at the date of incorporation are as follows: -

Name	No. of shares	%
EPB Capital Limited	6,000	60.00
Meinrad David Reyes	2,000	20.00
Joselito Pagtalunan Adriano	2,000	20.00
	10,000	100.00

A11. CHANGES IN MATERIAL CONTINGENT ASSETS AND CONTINGENT LIABILITIES

There were no material contingent assets and contingent liabilities during the current quarter and period-to-date under review.

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EPB GROUP BERHAD
Registration No.: 202201007128 (1452825-U)
(Incorporated in Malaysia under the Companies Act, 2016)

A12. MATERIAL CAPITAL COMMITMENTS

Save as disclosed below, there is no material commitment for capital expenditure, which upon becoming enforceable, may have a material effect on the Group's financial position during the current quarter and period-to-date under review: -

As at
31 Mar 2026
RM'000

Property, plant and equipment:
Approved and contracted for
6,269

A13. SEGMENT INFORMATION

The Group's operations consist of provision of food processing and packaging machinery solutions, trading of cellulose casings and manufacturing and trading of flexible packaging materials; which are collectively considered as single reportable segment. Accordingly, the operating revenue and results of the single reportable segment are as reflected in the Group's consolidated statement of profit or loss and other comprehensive income. The segment assets and liabilities are as presented in the Group's consolidated statement of financial position. Entity-wide disclosures as required by MFRS 8 for the current quarter and period-to-date under review were as follows: -

Products and services information

	Individual quarter		Cumulative quarter
	Current quarter ended 31-Mar-26 RM'000	Comparative quarter ended 31-Mar-25 RM'000	Current period-to-date ended 31-Mar-26 RM'000	Comparative period-to-date ended 31-Mar-25 RM'000
Revenue from: -
• Food processing and packaging machinery solutions	11,492	22,288	11,492	22,288
• Trading of cellulose casings	5,116	2,759	5,116	2,759
• Manufacturing and trading of flexible packaging materials	4,499	2,202	4,499	2,202
	21,107	27,249	21,107	27,249

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EPB GROUP BERHAD

Registration No.: 202201007128 (1452825-U)

(Incorporated in Malaysia under the Companies Act, 2016)

A13. SEGMENT INFORMATION (CONT'D)

Geographical information

In determining geographical information of the Group, "Revenue" is based on the geographical location of customers, and "Non-current Assets" are based on the geographical location of the assets.

	Individual quarter		Cumulative quarter
	Current quarter ended 31-Mar-26 RM'000	Comparative quarter ended 31-Mar-25 RM'000	Current period-to-date ended 31-Mar-26 RM'000	Comparative period-to-date ended 31-Mar-25 RM'000
Revenue from: -
• Malaysian customers	3,458	10,242	3,458	10,242
• Overseas customers
- Indonesia	11,185	5,756	11,185	5,756
- Philippines	2,342	9,238	2,342	9,238
- Others	4,122	2,013	4,122	2,013
	21,107	27,249	21,107	27,249
			As at 31-Mar-26 RM'000	As at 31-Mar-25 RM'000
Non-current assets located in Malaysia			47,223	15,695
Non-current assets located outside Malaysia			87	88
			47,310	15,783

A14. RELATED PARTY TRANSACTIONS ("RPTs")

	Individual quarter		Cumulative quarter
	Current quarter ended 31-Mar-26 RM'000	Comparative quarter ended 31-Mar-25 RM'000	Current period-to-date ended 31-Mar-26 RM'000	Comparative period-to-date ended 31-Mar-25 RM'000
Recurrent RPTs
(i) PT Bestworld Perkasa
• Marketing fees	250	241	250	241
• Project incentive	343	-	343	-
(ii) Director and/or person connected
• Rental of premises	14	24	14	24
Other RPTs
(i) PT Bestworld Perkasa
• Other expenses	-	48	-	48
• Sub-contract fees	-	5	-	5
(ii) Wong & Loh
• Legal fee	1	-	1	-

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EPB GROUP BERHAD

Registration No.: 202201007128 (1452825-U)

(Incorporated in Malaysia under the Companies Act, 2016)

ADDITIONAL INFORMATION REQUIRED BY THE ACE MARKET LISTING REQUIREMENTS OF BURSA SECURITIES

B1. REVIEW OF PERFORMANCE

Financial review for Current Quarter (Q1'26) vs Comparative Quarter (Q1'25) and Current Period-To-Date (3M YTD'26) vs Comparative Period-To-Date (3M YTD'25)

	Individual quarter				Cumulative quarter
	Current quarter ended 31-Mar-26 RM'000	Comparative quarter ended 31-Mar-25 RM'000	Variance RM'000	%	Current period-to-date ended 31-Mar-26 RM'000	Comparative period-to-date ended 31-Mar-25 RM'000	Variance RM'000	%
Revenue	21,107	27,249	(6,142)	(22.54)	21,107	27,249	(6,142)	(22.54)
Gross Profit ("GP")	6,725	8,993	(2,268)	(25.22)	6,725	8,993	(2,268)	(25.22)
PBT	671	3,611	(2,940)	(81.42)	671	3,611	(2,940)	(81.42)
PAT	501	2,632	(2,131)	(80.97)	501	2,632	(2,131)	(80.97)

The Group's revenue decreased by approximately RM6.14 million or 22.54% from RM27.25 million in the corresponding quarter of the preceding period ("Q1'25") to RM21.11 million in the current quarter under review ("Q1'26"), mainly attributable to decrease in revenue from provision of food processing and packaging machinery solutions business segment amounting to RM10.80 million or 48.45% from RM22.29 million for Q1'25 to RM11.49 million for Q1'26; which was primarily resulting from lower sales to the Group's overseas customers based in the Philippines and other foreign countries as well as local customers, partially offset by higher sales to the Group's overseas customers based in Indonesia.

The abovementioned decrease was, however, partially offset by the increase in revenue from trading of cellulose casings business segment and manufacturing and trading of flexible packaging materials business segment amounting to RM2.36 million and RM2.30 million respectively, as a result of higher orders received and delivered to the Group's customers.

The Group's GP decreased by RM2.27 million or 25.22% to RM6.73 million for Q1'26 (Q1'25: RM8.99 million), mainly due to lower revenue from provision of food processing and packaging machinery solutions business segment as explained above.

The Group's PBT and PAT decreased by RM2.94 million or 81.42% and RM2.13 million or 80.97% for Q1'26 respectively mainly due to lower GP recorded as explained above and overall increase in administration and other operating expenses.

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EPB GROUP BERHAD

Registration No.: 202201007128 (1452825-U)

(Incorporated in Malaysia under the Companies Act, 2016)

B2. CURRENT QUARTER (Q1'26) vs IMMEDIATELY PRECEDING QUARTER (Q4'25)

| | 31-Mar-26
RM'000 | 31-Dec-25
RM'000 | Variance
RM'000 | Changes
% |
| --- | --- | --- | --- | --- |
| Revenue | 21,107 | 32,687 | (11,580) | (35.43) |
| GP | 6,725 | 10,082 | (3,357) | (33.30) |
| PBT | 671 | 2,570 | (1,899) | (73.89) |
| PAT | 501 | 4,823 | (4,322) | (89.61) |

The Group recorded revenue of approximately RM21.11 million during Q1'26, as compared to revenue of approximately RM32.69 million recorded in the immediately preceding quarter ended 31 December 2025 ("Q4'25"). The decrease was mainly attributable to the following: -

(a) decrease in revenue from provision of food processing and packaging machinery solutions business segment amounting to RM12.95 million; as a result of lower sales to the Group's local customers and overseas customers; and
(b) decrease in revenue from manufacturing and trading of flexible packaging materials business segment amounting to RM0.47 million, resulting from lower sales to an overseas customer based in Myanmar, which was partially offset by higher sales to the Group's local customers.

The abovementioned decrease was, however, partially offset by the increase in revenue from trading of cellulose casings business segment amounting to RM1.84 million; as a result of higher orders received and delivered to the Group's overseas customers based in Indonesia during Q1'26.

The Group recorded lower GP during Q1'26, decreased by RM3.36 million or 33.30% as compared to Q4'25, mainly due to lower revenue from provision of food processing and packaging machinery solutions business segment and manufacturing and trading of flexible packaging materials business segment as explained above.

The Group's PBT decreased by RM1.90 million or 73.89%, mainly due to lower GP recorded as explained above, which was partially offset by the decrease in selling and distribution expenses as well as administration and other operating expenses; whilst the Group's PAT decreased by RM4.32 million or 89.61%, mainly due to non-recurrence of tax income (resulting from the reversal of deferred tax liabilities provided for in the prior years) recorded in Q4'25.

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EPB GROUP BERHAD

Registration No.: 202201007128 (1452825-U)

(Incorporated in Malaysia under the Companies Act, 2016)

B3. PROSPECTS

In Malaysia, economic conditions remain broadly supportive, with Gross Domestic Product growth projected at approximately 4% to 5% in 2026, underpinned by domestic consumption and investment activity. (Source: Outlook and Policy in 2026, Bank Negara Malaysia) Policy initiatives aimed at strengthening food security and enhancing industrial productivity, including incentives for automation and high-value manufacturing, (Source: Economic Outlook 2026, Ministry of Finance, October 2025) are expected to continue supporting capital expenditure within the sector, albeit at a more measured pace in light of current uncertainties.

Resilient domestic demand, stable employment conditions and wage growth, together with income-related policy measures, are expected to continue supporting economic activity. Investment activity is projected to remain healthy, supported by the ongoing implementation of multi-year public and private sector projects, strong realisation rates of approved investments, and the rollout of national master plans. Under Budget 2026, policy measures aimed at enhancing food security, productivity and automation, along with long-term tax incentives of up to 10 years of 100.00% tax exemption for qualifying food industry investments, are expected to continue supporting capital expenditure within Malaysia's food manufacturing ecosystem. (Source: Budget 2026 Highlights, The Edge, February 2026) These incentives are anticipated to accelerate machinery replacement cycles and capacity expansion, particularly among mid-to-large-scale food processors upgrading to automated and energy-efficient production lines.

According to independent market research, Malaysia's food processing and packaging machinery market is projected to expand a compound annual growth rate of 10.4% from 2024 to 2028, with the market size potentially reaching approximately RM2.84 billion by the end of the period. The anticipated growth is mainly driven by the increasing adoption of automation, growing demand for ready-to-consume food products, and the continued expansion of regional food exports, which are expected to collectively support sustained demand for processing, packaging and automation solutions. (Source: Protégé's Independent Market Research Report, EPB's Prospectus dated 27 June 2024)

In addition, EPB is progressing with the development of its new manufacturing facility at Penang Science North Park, which is expected to enhance its production capacity and operational efficiency upon completion. The first phase of approximately 70,000 square feet ("sq ft") out of the total planned 90,000 sq ft facility is targeted for completion in the second half of 2026, positioning the Group to better support future demand growth.

Separately, EPB has submitted the application to the Securities Commission Malaysia for the transfer of its listing from the ACE Market to the Main Market of Bursa Securities ("Proposed Transfer") on 12 March 2026, marking an important step in its next phase of growth. In conjunction with the Proposed Transfer, EPB has also undertaken proposed amendments to its constitution to align with the Main Market Listing Requirements. The Proposed Transfer, together with these governance enhancements, is expected to strengthen the Group's corporate profile, enhance investor accessibility and broaden its appeal to a wider base of institutional investors. This reflects EPB's commitment to aligning with higher regulatory standards while supporting its long-term business expansion and regional growth strategy. (Source: Announcement dated 13 March 2026, Bursa Securities)

As at 30 April 2026, being the latest practicable date prior to the announcement of this interim report, the Group's order book stood at RM107.80 million; which are expected to be fulfilled and billed progressively in the remaining quarters of the financial year ending 31 December 2026 ("FYE 2026") and the financial year ending 31 December 2027 ("FYE 2027"). The breakdown of order book by business segments are as follows: -

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EPB GROUP BERHAD

Registration No.: 202201007128 (1452825-U)

(Incorporated in Malaysia under the Companies Act, 2016)

B3. PROSPECTS (CONT'D)

	Expected to be fulfilled and billed in
	FYE 2026	FYE 2027	Total
Order book by business segment	RM'000	RM'000	RM'000
Food processing and packaging machinery solutions	84,120	2,396	86,516
Trading of cellulose casings	6,807	6,324	13,131
Manufacturing and trading of flexible packaging materials	8,154	-	8,154
Total	99,081	8,720	107,801

Overall, while the near-term outlook remains cautious given prevailing uncertainties, EPB believes that its established capabilities, strategic positioning and continued focus on execution will enable the Group to navigate the current environment and deliver sustainable value to its shareholders over the longer term.

B4. PROFIT FORECAST OR PROFIT GUARANTEE

The Group did not provide any profit forecast or profit guarantee in any public documents or any announcements made.

B5. TAXATION

	Individual quarter		Cumulative quarter
	Current quarter ended 31-Mar-26 RM'000	Comparative quarter ended 31-Mar-25 RM'000	Current period-to-date ended 31-Mar-26 RM'000	Comparative period-to-date ended 31-Mar-25 RM'000
Current income tax	383	1,003	383	1,003
Deferred tax	(213)	(24)	(213)	(24)
Taxation	170	979	170	979
Effective tax rate	25.34%	27.11%	25.34%	27.11%
Applicable statutory tax rate: Malaysia	24.00%	24.00%	24.00%	24.00%
Labuan	3.00%	3.00%	3.00%	3.00%
United Arab Emirates(1) (“UAE”)	9.00%	9.00%	9.00%	9.00%

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EPB GROUP BERHAD

Registration No.: 202201007128 (1452825-U)

(Incorporated in Malaysia under the Companies Act, 2016)

B5. TAXATION (CONT'D)

Note: -

(1) Pursuant to the amendment of paragraph 28 of Schedule 6, Income Tax Act 1967, the dividend received from BW Perkasa UAE is subject to prevailing income tax rate on remittance to Malaysia, with tax credit allowed for foreign tax charged in UAE effective from year of assessment 2024.

The Group's effective tax rate stood at 25.34% for the current quarter and period-to-date under review respectively, higher as compared to the statutory tax rate; mainly attributable to non-allowable expenses added back in the estimation of income tax expenses for the current quarter and period-to-date under review.

B6. STATUS OF CORPORATE PROPOSALS

Save as disclosed below, there is no corporate proposal announced but not completed as at the date of this interim financial report: -

(i) Proposed transfer of the listing and quotation of the entire issued share capital of EPB from the ACE Market to the Main Market of Bursa Securities and proposed amendments to the constitution of EPB. Please refer to the Company's announcement to Bursa Securities dated 5 March 2026.

The application for the Proposed Transfer has been submitted to Securities Commission Malaysia on 12 March 2026. Please refer to the Company's announcement to Bursa Securities dated 13 March 2026.

B7. UTILISATION OF PROCEEDS

As at 31 March 2026, the status of utilisation for the gross proceeds of approximately RM40.08 million from the Initial Public Offering ("IPO") (further details as disclosed in EPB's Prospectus dated 27 June 2024 which is available on Bursa Securities) is as follows: -

Details of utilisation(1)	Proposed utilisation		Actual utilisation	Deviation	Balance sum to be utilised	Estimated timeframe for utilisation from the date of listing
	RM'000	%	RM'000	RM'000	RM'000
Factory expansion: -
(a) Acquisition of land	13,000	32.43	13,000	-	-	Within 12 months
(b) Construction of factory	10,500	26.20	7,500	-	3,000	Within 36 months
(c) Purchase of machinery	1,100	2.74	248	-	852	Within 36 months
Repayment of bank borrowings	3,000	7.49	3,000	-	-	Within 6 months
Working capital	8,479	21.16	8,479	-	-	Within 12 months
Estimated listing expenses	4,000	9.98	4,000	-	-	Within 3 months
Total	40,079	100.00	36,227	-	3,852

Note: -

(1) The utilisation of the proceeds as disclosed above should be read in conjunction with EPB's Prospectus dated 27 June 2024.

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EPB GROUP BERHAD
Registration No.: 202201007128 (1452825-U)
(Incorporated in Malaysia under the Companies Act, 2016)

B8. BANK BORROWINGS

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

| | Short Term
(within 12 months)
RM'000 | Long Term
(over 12 months)
RM'000 | Total
RM'000 |
| --- | --- | --- | --- |
| Term loans:
– secured and guaranteed | 485 | 8,782 | 9,267 |

All the bank borrowings are denominated in Ringgit Malaysia (RM), and obtained from financial institutions based in Malaysia.

B9. EARNINGS PER SHARE ("EPS")

Basic and Diluted EPS
	Individual quarter
Current quarter ended
31-Mar-26	Comparative quarter ended
31-Mar-25	Cumulative quarter
Current period-to-date ended
31-Mar-26	Comparative period-to-date ended
31-Mar-25
PAT attributable to owners of the Company (RM'000)	502	2,632	502	2,632
Weighted average number of ordinary shares in issue ('000)	372,000	372,000	372,000	372,000
Basic/Diluted EPS^{(1)(2)} (sen)	0.13	0.71	0.13	0.71

Notes: -
(1) Basic EPS are computed based on PAT attributable to owners of the Company divided by the weighted average number of ordinary shares in issue during the financial period under review.
(2) Diluted EPS is equivalent to basic EPS as the Group does not have any convertible securities as at the end of the 31 March 2026/31 March 2025.

B10. CHANGES IN MATERIAL LITIGATION

As at the date of this interim report, there is no litigation or arbitration which has a material effect on the financial position of the Group; and the Board of Directors of the Company is not aware of any proceedings pending or threatened or of any fact likely to give rise to any proceedings.

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EPB GROUP BERHAD

Registration No.: 202201007128 (1452825-U)

(Incorporated in Malaysia under the Companies Act, 2016)

B11. DISCLOSURE ON SELECTED (INCOME)/EXPENSE ITEMS

Included in PBT comprised the following (income)/expense items: -

	Individual quarter		Cumulative period
	Current quarter ended 31-Mar-26 RM'000	Comparative quarter ended 31-Mar-25 RM'000	Current period-to-date ended 31-Mar-26 RM'000	Comparative period-to-date ended 31-Mar-25 RM'000
Profit before taxation is stated after charging/(crediting): -
Amortisation of intangible assets	34	2	34	2
Deposits received forfeited	(64)	*	(64)	*
Depreciation of: -
• Property, plant and equipment	257	263	257	263
• Rights-of-use assets	231	131	231	131
Directors' salaries and allowances	566	489	566	489
(Gain)/Loss on disposal of property, plant and equipment	(9)	1	(9)	1
Interest expenses	8	30	8	30
Interest income	(268)	(238)	(268)	(238)
Loss/(Gain) on foreign exchange: -
• Realised - net	218	156	218	156
• Unrealised - net	(244)	(89)	(244)	(89)
Net additional of allowance for impairment loss on trade receivables	1,224	504	1,224	504
Property, plant and equipment written off	-	*	-	*
Rental income	(2)	(1)	(2)	(1)
Short term and low value leases: -
• Rental of premises	38	47	38	47
• Rental of plant, machinery and equipment	28	37	28	37
• Rental of office equipment	5	*	5	*
• Rental of motor vehicle	1	-	1	-
• Write-down in value of inventories - net	48	48	48	48

Note: -
* Less than RM1,000.

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EPB GROUP BERHAD
Registration No.: 202201007128 (1452825-U)
(Incorporated in Malaysia under the Companies Act, 2016)

B12. FINANCIAL INSTRUMENTS

Derivatives

The Group does not have any derivative financial instruments for the current quarter and period-to-date under review.

Disclosures of Gain/Losses arising from Fair Value Changes of Financial Liabilities

There were no gains/losses arising from fair value changes of the financial liabilities reported by the Group for the current quarter and period-to-date under review.

By Order of the Board

18 May 2026

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