KOBAY TECHNOLOGY BHD — Interim / Quarterly Report 2026

May 17, 2026

KOBAY TECHNOLOGY BERHAD
Registration No. 199401022600 (308279-A)
(Incorporated in Malaysia)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE THIRD QUARTER ENDED 31 MARCH 2026

	Quarter Ended			Year-To-Date Ended (9 Months)
	Unaudited		Increase/(Decrease)%	Unaudited		Increase/(Decrease)%
	31.3.2026	31.3.2025		31.3.2026	31.3.2025
	RM '000	RM '000		RM '000	%
Revenue	144,997	81,436	78%	400,887	257,344	56%
Cost of sales	(102,336)	(64,056)	37%	(282,946)	(192,552)	32%
Gross profit	42,661	17,380	145%	117,941	64,792	82%
Operating expenses	(25,616)	(16,740)	35%	(72,027)	(53,088)	26%
Finance cost	(2,642)	(2,085)	21%	(5,761)	(4,638)	19%
Other income	2,658	1,692	57%	8,050	6,509	24%
Profit before tax	17,061	247	6807%	48,203	13,575	255%
Tax expense	(2,846)	(2,039)	28%	(10,100)	(7,141)	29%
Profit/(loss) for the period	14,215	(1,792)	893%	38,103	6,434	492%
Other comprehensive income	-	-	0%	-	-	0%
Total comprehensive income/(loss) for the period	14,215	(1,792)	893%	38,103	6,434	492%
Profit for the period attributable to:
Owners of the Company	14,078	705	1897%	36,554	10,171	259%
Non-controlling interest	137	(2,497)	105%	1,549	(3,737)	141%
	14,215	(1,792)	893%	38,103	6,434	492%
Total comprehensive income attributable to:
Owners of the Company	14,078	705	1897%	36,554	10,171	259%
Non-controlling interest	137	(2,497)	105%	1,549	(3,737)	141%
	14,215	(1,792)	893%	38,103	6,434	492%
Basic earnings per share (sen)	4.40	0.22	1897%	11.42	3.18	259%

(The Unaudited Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the Audited Financial Statements for the financial year ended 30.6.2025 and the accompanying explanatory notes attached to these interim financial statements.)

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KOBAY TECHNOLOGY BERHAD

Registration No. 199401022600 (308279-A)

(Incorporated in Malaysia)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2026

| | As at
31.3.2026
RM '000
Unaudited | As at
30.6.2025
RM '000
Audited |
| --- | --- | --- |
| Assets | | |
| Non-Current Assets | | |
| Property, plant and equipment | 171,323 | 155,326 |
| Investment properties | 10,664 | 10,868 |
| Right-of-use assets | 41,797 | 45,296 |
| Intangible assets | 23,909 | 24,362 |
| Other investments | 12,791 | 2,830 |
| Land held for property development | 65,211 | 64,408 |
| Loan receivables | 6,037 | 6,666 |
| Total Non-Current Assets | 331,732 | 309,756 |
| Current Assets | | |
| Inventories (property development) | 115,062 | 103,349 |
| Inventories (other than property development) | 52,573 | 52,276 |
| Receivables | 133,025 | 74,023 |
| Contract costs | 222 | 222 |
| Contract assets | - | 10,870 |
| Derivatives | 1,013 | 1,039 |
| Prepayments | 14,703 | 7,028 |
| Loan receivables | 747 | 387 |
| Current tax assets | 3,813 | 9,370 |
| Cash and cash equivalents | 56,981 | 53,488 |
| Total Current Assets | 378,139 | 312,052 |
| | | |
| Total Assets | 709,871 | 621,808 |

(The Unaudited Condensed Consolidated Statements of Financial Position should be read in conjunction with the Annual Statutory Financial Statements for the year ended 30 June 2025 and the accompanying explanatory notes attached to the interim financial statements.)

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KOBAY TECHNOLOGY BERHAD

Registration No. 199401022600 (308279-A)

(Incorporated in Malaysia)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2026 (CONT'D)

| | As at
31.3.2026
RM '000
Unaudited | As at
30.6.2025
RM '000
Audited |
| --- | --- | --- |
| Equity and Liabilities | | |
| Equity | | |
| Share capital | 210,918 | 210,918 |
| Treasury shares | (9,523) | (9,523) |
| Capital reserve | 1,550 | 1,550 |
| Put option reserve | (4,834) | (4,834) |
| Retained profits | 197,796 | 161,242 |
| Equity attributable to owners of the Company | 395,907 | 359,353 |
| Non-controlling interests | 9,320 | 9,571 |
| Total Equity | 405,227 | 368,924 |
| Non-Current Liabilities | | |
| Landowners' entitlements | 14,285 | 13,426 |
| Loans and borrowings | 28,109 | 30,637 |
| Hire purchase payables | 34 | 88 |
| Lease liabilities | 7,668 | 10,312 |
| Government grants | 108 | 108 |
| Deferred tax liabilities | 12,103 | 11,812 |
| Total Non-Current Liabilities | 62,307 | 66,383 |
| Current Liabilities | | |
| Contract liabilities | 3,316 | 384 |
| Derivatives | 91 | 56 |
| Payables | 130,238 | 64,446 |
| Put option liability | 4,978 | 4,978 |
| Loans and borrowings | 95,279 | 110,573 |
| Hire purchase payables | 71 | 66 |
| Lease liabilities | 4,474 | 3,971 |
| Government grants | 8 | 32 |
| Current tax liabilities | 3,882 | 1,995 |
| Total Current Liabilities | 242,337 | 186,501 |
| | | |
| Total Liabilities | 304,644 | 252,884 |
| | | |
| Total Equity and Liabilities | 709,871 | 621,808 |
| Net assets per share attributable to owners of the Company (RM) | 1.24 | 1.12 |

(The Unaudited Condensed Consolidated Statements of Financial Position should be read in conjunction with the Annual Statutory Financial Statements for the year ended 30 June 2025 and the accompanying explanatory notes attached to the interim financial statements.)

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KOBAY TECHNOLOGY BERHAD

Registration No. 199401022600 (308279-A)

(Incorporated in Malaysia)

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE THIRD QUARTER ENDED 31 MARCH 2026

	Attributable to owners of the Company						Non-controlling interests RM'000	Total equity RM'000
	Non-distributable			Distributable
	Share capital RM'000	Treasury shares RM'000	Capital reserve RM'000	Put option reserve RM'000	Retained profits RM'000	Equity attributable to owners of the Company RM'000
PERIOD ENDED 31 MARCH 2026
As at 1 July 2025	210,918	(9,523)	1,550	(4,834)	161,242	359,353	9,571	368,924
Profit (representing comprehensive income) for the period	-	-	-	-	36,554	36,554	1,549	38,103
Transactions with owners:
Dividends paid to non-controlling interest	-	-	-	-	-	-	(1,800)	(1,800)
As at 31 March 2026	210,918	(9,523)	1,550	(4,834)	197,796	395,907	9,320	405,227
PERIOD ENDED 31 MARCH 2025
As at 1 July 2024	210,918	(9,523)	1,550	(4,833)	182,736	380,848	15,880	396,728
Profit (representing comprehensive income) for the period	-	-	-	-	10,171	10,171	(3,737)	6,434
Transactions with owners:
Dividends paid to non-controlling interest	-	-	-	-	-	-	(1,005)	(1,005)
Acquisition of subsidiary	-	-	-	-	-	-	28	28
As at 31 March 2025	210,918	(9,523)	1,550	(4,833)	192,907	391,019	11,166	402,185

(The Unaudited Condensed Consolidated Statements of Changes in Equity should be read in conjunction with the Annual Statutory Financial Statements for the year ended 30 June 2025 and the accompanying explanatory notes attached to the interim financial statements.)

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KOBAY TECHNOLOGY BERHAD
Registration No. 199401022600 (308279-A)
(Incorporated in Malaysia)

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

	Year-To-Date Ended
	Unaudited
	31.3.2026	31.3.2025
	RM '000	RM '000
Cash flows from operating activities
Profit before tax:	48,203	13,575
Adjustments for:
- Non-cash items	17,690	11,637
- Non-operating items	4,773	3,645
Operating profit before changes in working capital	70,666	28,857
Changes in working capital:
- Net change in current/non-current assets	(67,643)	(18,296)
- Net change in current/non-current liabilities	68,984	(9,232)
Net cash from operating activities	72,007	1,329
Cash flows from investing activities
Acquisition of other investments	(9,961)	(2,200)
Acquisition of subsidiary	-	(20)
Interest received	862	993
Contingent consideration paid	(1,800)	(1,650)
Proceeds from disposal of property, plant and equipment	246	156
Purchase of property, plant and equipment	(32,432)	(7,668)
Net cash used in investing activities	(43,085)	(10,389)
Cash flows from financing activities
Changes in term deposits pledged as security	(497)	(54)
Dividend paid to non-controlling interest	(1,100)	(1,005)
Payment of lease liabilities	(2,537)	(1,090)
Increase/(decrease) in loans and borrowings	(21,692)	7,938
Interest paid	(5,433)	(4,561)
Net cash (used in)/from financing activities	(31,259)	1,228
Net change in cash & cash equivalents	(2,337)	(7,832)
Cash & cash equivalents at beginning of the period	37,239	51,422
Cash & cash equivalents as at end of the period	34,902	43,590
Cash & cash equivalents as at end of the period
Highly Liquid Investments	21,642	24,068
Deposits not pledged	-	-
Cash & bank balances	13,260	19,522
	34,902	43,590

Deposits amounting to RM3.75 million (30.6.2025: RM3.25 million) have been pledged to local banks for bank guarantee facilities obtained by the Group as at 31 March 2026. As such, these amounts are not included as cash and cash equivalents as at the aforementioned

(The Unaudited Condensed Consolidated Statements of Cash Flows should be read in conjunction with the Annual Statutory Financial Statements for the year ended 30 June 2025 and the accompanying explanatory notes attached to the interim financial statements.)

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KOBAY TECHNOLOGY BERHAD

Registration No. 199401022600 (308279-A)

(Incorporated in Malaysia)

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

1. BASIS OF PREPARATION

The unaudited condensed consolidated interim financial statements "interim financial report" of the Group has been prepared in accordance with the Malaysian Financial Reporting Standards ("MFRS") 134, Interim Financial Reporting and Paragraph 9.22 and Appendix 9B of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.

The interim financial report should be read in conjunction with the audited financial statements of the Group for the financial year ended 30 June 2025 and the accompanying explanatory notes attached to this interim financial report.

The accounting policies and presentation adopted for this interim financial report are consistent with those adopted in the audited annual financial statements for the financial year ended 30 June 2025.

Except for the MFRS 121 Lack of Exchangeability (Amendments to MFRS 121) which have been effective from 1 January 2025. The adoption of this MFRS does not have any material impact to the Group for the financial period ended 31 March 2026.

1. AUDIT REPORT OF PRECEDING ANNUAL FINANCIAL STATEMENTS

The Group audited financial statements for the financial year ended 30 June 2025 was not subject to any qualification.

1. SEASONAL OR CYCLICAL OPERATIONS

The business operations of the Group are subject to cyclical effects of the global electronics industries and volatility of real estate markets.

1. UNUSUAL ITEMS DUE TO THEIR NATURE, SIZE OR INCIDENCE

There were no unusual items affecting assets, liabilities, equity, net income or cash flows during the year-to-date ended 31 March 2026.

1. SIGNIFICANT ESTIMATES AND CHANGES IN ESTIMATES

There were no changes in estimates that have had any material effect during the year-to-date ended 31 March 2026.

1. DEBT AND EQUITY SECURITIES

There were no issuances, repurchases and repayments of debt and equity securities during the year-to-date ended 31 March 2026.

1. DIVIDENDS PAID

No dividends were recommended, declared or paid during the year-to-date ended 31 March 2026 and its preceding year corresponding quarter ended 31 March 2025.

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KOBAY TECHNOLOGY BERHAD

Registration No. 199401022600 (308279-A)

(Incorporated in Malaysia)

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

8. SEGMENTAL REPORTING

The Group has arrived at reportable segments that are organised and managed separately according to the products and services, which requires different business and marketing strategies. The reportable segments are summarised as follows:

Operating Segments	Descriptions
Manufacturing	Manufacture of precision machined components, precision metal stamping, sheet metal parts, surface treatment, precision moulds and parts, tooling and form dies, semiconductor assembly and testing equipment, metal works and structures, modules and parts for oil and gas production and extraction equipment and components and sub-assemblies for aerospace parts
Property development	Property development and property management
Pharmaceutical and healthcare	Wholesale and retail sale of pharmaceutical and healthcare products
Asset management and investment holding	Property letting, operation of dormitory, hotel operators and investment holding
Others	Money lending and management services

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KOBAY TECHNOLOGY BERHAD
Registration No. 199401022600 (308279-A)
(Incorporated in Malaysia)

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

1. SEGMENTAL REPORTING (CONT'D)

Quarter Ended	Manufacturing RM'000	Property Development RM'000	Pharmaceutical and Healthcare RM'000	Asset Management and Investment Holding RM'000	Others RM'000	Consolidation Adjustments and Eliminations RM'000	Total RM'000
Revenue from external customer	269,714	39,635	60,902	30,343	293	-	400,887
Intersegment revenue	16,728	1,156	8,186	46,208	7,851	(80,129)	-
Interest income	503	100	170	2,646	5	(2,562)	862
Interest expense	3,877	2,796	474	1,454	-	(2,840)	5,761
Depreciation and amortisation	19,788	103	650	982	50	(1,029)	20,544
Tax expense	5,708	1,412	1,037	1,888	164	(109)	10,100
Profit after taxation	27,223	3,208	3,775	3,637	387	(127)	38,103
Segment assets	420,543	201,528	88,947	442,344	18,783	(462,274)	709,871
Expenditure for non-current assets	35,988	868	323	10,282	8	(4,067)	43,403
Segment liabilities	250,068	94,358	26,168	64,695	667	(131,312)	304,644
Quarter Ended	Manufacturing RM'000	Property Development RM'000	Pharmaceutical and Healthcare RM'000	Asset Management and Investment Holding RM'000	Others RM'000	Consolidation Adjustments and Eliminations RM'000	Total RM'000
---	---	---	---	---	---	---	---
Revenue from external customer	164,235	14,925	57,559	20,302	323	-	257,344
Intersegment revenue	16,236	1,029	-	26,863	6,961	(51,089)	-
Interest income	675	78	187	1,362	8	(1,317)	993
Interest expense	1,909	2,125	592	1,899	6	(1,893)	4,638
Depreciation and amortisation	14,762	136	1,023	2,632	153	(3,540)	15,166
Tax expense	5,005	1	782	1,376	1	(24)	7,141
Profit after taxation	6,647	(1,548)	1,661	(702)	502	(126)	6,434
Segment assets	268,841	188,270	58,455	437,525	19,591	(355,087)	617,596
Expenditure for non-current assets	7,856	27	66	569	80	(125)	8,473
Segment liabilities	123,564	77,954	30,634	69,291	594	(86,627)	215,410

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KOBAY TECHNOLOGY BERHAD

Registration No. 199401022600 (308279-A)

(Incorporated in Malaysia)

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

8. SEGMENTAL REPORTING (CONT'D)

GEOGRAPHICAL INFORMATION

REVENUE BY GEOGRAPHICAL SEGMENTS	31.3.2026	31.3.2025
Malaysia	291,229	202,666
United States of America	20,232	15,789
Singapore	11,205	22,652
Others	78,221	16,237
Total	400,887	257,344

MAJOR CUSTOMERS

There was one customer who contributed more than 10% of the Group's total revenues for the period under review (31.3.2025: Nil).

9. VALUATION OF PROPERTY, PLANT AND EQUIPMENT

The valuation of property, plant and equipment has been brought forward without any amendment from the previous annual report.

10. SUBSEQUENT EVENTS

There was no material event subsequent to the year-to-date ended 31 March 2026.

11. CHANGES IN THE COMPOSITION OF THE GROUP

There were no other major changes in the composition of the Group for the year-to-date ended 31 March 2026.

12. CONTINGENT ASSETS AND CONTINGENT LIABILITIES

The Group has issued corporate guarantees to financial institutions for banking facilities granted to certain subsidiaries up to a limit of RM214 million of which RM92 million has been utilised as at 31 March 2026.

13. RELATED PARTY TRANSACTION

All related party transactions within the Group had been entered into in the normal course of business, carried out on normal commercial terms, and were all within the threshold prescribed under Chapter 10.08 during the current quarter ended 31 March 2026.

14. CAPITAL COMMITMENTS

Authorised capital commitments not recognised in the interim financial statement as at 31 March 2026 were as follows:

| | 31.3.2026
RM'000 | 31.3.2025
RM'000 |
| --- | --- | --- |
| Contracted but not provided for:
Property, Plant and Equipment | 2,560 | 522 |

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KOBAY TECHNOLOGY BERHAD
Registration No. 199401022600 (308279-A)
(Incorporated in Malaysia)

B. Additional information required by the Listing Requirements of Bursa Securities

1. REVIEW OF PERFORMANCE

Operating Segments	Quarter Ended			Year-To-Date Ended (9 Months)
	Unaudited		Increase/(Decrease)%	Unaudited		Increase/(Decrease)%
	31.3.2026	31.3.2025		31.3.2026	31.3.2025
	RM '000	RM '000		RM '000	RM '000
Revenue:
Manufacturing	97,499	51,637	89%	269,714	164,235	64%
Property development	15,764	6,472	144%	39,635	14,925	166%
Pharmaceutical and healthcare	20,470	16,769	22%	60,902	57,559	6%
Asset management and investment holding	11,169	6,454	73%	30,343	20,302	49%
Others	95	104	-9%	293	323	-9%
Total revenue	144,997	81,436	78%	400,887	257,344	56%
Profit before tax:
Manufacturing	9,823	1,752	461%	32,931	11,652	183%
Property development	2,121	(314)	775%	4,620	(1,547)	399%
Pharmaceutical and healthcare	1,818	(1,490)	222%	4,812	2,443	97%
Asset management and investment holding	1,944	196	892%	5,525	674	720%
Others	163	(53)	208%	551	503	10%
Total profit before tax	15,869	91	17338%	48,439	13,725	253%
Consolidation Adjustments and Eliminations	1,192	156	664%	(236)	(150)	57%
Consolidated profit before tax	17,061	247	6807%	48,203	13,575	255%

THIRD QUARTER FY2026 VS. THIRD QUARTER FY2025

Quarterly, the Group reported revenue of RM 145.00 million and consolidated profit before tax ("PBT") of RM17.06 million, showing an increase of 78% and 6807% respectively compared to the corresponding quarter of the previous financial year.

9 MONTHS YEAR-TO-DATE FY2026 VS. 9 MONTHS YEAR-TO-DATE FY2025

For current year-to-date 9 months ended 31 March 2026, the Group reported revenue of RM 400.89 million and consolidated profit before tax ("PBT") of RM48.20 million, showing an increase of 56% and 255% respectively compared to the corresponding 9 months period ended 31 March 2025.

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KOBAY TECHNOLOGY BERHAD

Registration No. 199401022600 (308279-A)

(Incorporated in Malaysia)

B. Additional information required by the Listing Requirements of Bursa Securities

1. REVIEW OF PERFORMANCE (CONT'D)

SEGMENTAL ANALYSIS

A. MANUFACTURING

THIRD QUARTER FY2026 VS. THIRD QUARTER FY2025

The manufacturing division has delivered a better result in both revenue and PBT by 89% and 461%. The improvement primarily resulted from increasing sales orders.

9 MONTHS YEAR-TO-DATE FY2026 VS. 9 MONTHS YEAR-TO-DATE FY2025

The manufacturing division has delivered a better result in both revenue and PBT by 64% and 183%. The improvement primarily resulted from increasing sales orders.

B. PROPERTY DEVELOPMENT

THIRD QUARTER FY2026 VS. THIRD QUARTER FY2025

The property development division has delivered a better result in both revenue and PBT by 144% and 775%. The improvement primarily supported by progress billing from the ongoing affordable housing project and the sale of completed unit.

9 MONTHS YEAR-TO-DATE FY2026 VS. 9 MONTHS YEAR-TO-DATE FY2025

The property development division has delivered a better result in both revenue and PBT by 166% and 399%. The improvement primarily supported by progress billing from the ongoing affordable housing project and the sale of completed unit.

C. PHARMACEUTICAL AND HEALTHCARE

THIRD QUARTER FY2026 VS. THIRD QUARTER FY2025

The pharmaceutical and healthcare division has delivered a better result in both revenue and PBT by 22% and 222%. The improvement primarily resulted from higher sales on higher margin products and newly introduced medical device that further strengthened the Division's performance.

9 MONTHS YEAR-TO-DATE FY2026 VS. 9 MONTHS YEAR-TO-DATE FY2025

The pharmaceutical and healthcare division has delivered a better result in both revenue and PBT by 6% and 97%. The improvement primarily resulted from higher sales on higher margin products and newly introduced medical device that further strengthened the Division's performance.

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KOBAY TECHNOLOGY BERHAD

Registration No. 199401022600 (308279-A)

(Incorporated in Malaysia)

B. Additional information required by the Listing Requirements of Bursa Securities

1. REVIEW OF PERFORMANCE (CONT'D)

SEGMENTAL ANALYSIS

D. ASSET MANAGEMENT AND INVESTMENT HOLDING

THIRD QUARTER FY2026 VS. THIRD QUARTER FY2025

The asset and investment management division recorded increase in both revenue and PBT by 73% and 892% respectively primarily supported by higher hotel revenue during the holiday peak season.

The investment holding division is primarily involved in generating income through dividends paid by subsidiary companies to the holding company.

9 MONTHS YEAR-TO-DATE FY2026 VS. 9 MONTHS YEAR-TO-DATE FY2025

The asset and investment management division has delivered a better result in both revenue and PBT by 49% and 720%. The improvement was primarily supported by higher hotel revenue during the holiday peak season.

The investment holding division is primarily involved in generating income through dividends paid by subsidiary companies to the holding company.

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KOBAY TECHNOLOGY BERHAD

Registration No. 199401022600 (308279-A)

(Incorporated in Malaysia)

B. Additional information required by the Listing Requirements of Bursa Securities

1. MATERIAL CHANGE IN THE PERFORMANCE FOR THE CURRENT QUARTER COMPARED WITH THE IMMEDIATE PRECEDING QUARTER

Operating Segments	Current Year Quarter Ended	Preceding Quarter Ended	Increase/ (Decrease)
	Unaudited	Unaudited
	31.3.2026	31.12.2025
	RM '000	RM '000	%
Revenue:
Manufacturing	97,499	100,242	-3%
Property development	15,764	13,783	14%
Pharmaceutical and healthcare	20,470	20,599	-1%
Asset management and investment holding	11,169	10,330	8%
Others	95	53	79%
Total revenue	144,997	145,007	0%
Profit before tax:
Manufacturing	9,823	10,770	-9%
Property development	2,121	1,769	20%
Pharmaceutical and healthcare	1,818	1,748 *	4%
Asset management and investment holding	1,944	1,114	75%
Others	163	187	-13%
Total profit before tax	15,869	15,588	2%
Consolidation Adjustments and Eliminations	1,192	1,342	-11%
Consolidated profit before tax	17,061	16,930	1%

• Reclass of inter-company dividend of RM 2.33 million.

The Group's reported revenue of RM145.00 million and PBT of RM17.06 million, representing a stagnant in revenue and 1% in PBT as compared to Q2 FY2026.

A. MANUFACTURING

Both revenue and PBT in manufacturing division are impacted by 3% and 9% respectively, primarily due to a reduction in project-based sales orders with lower margins arising from higher material costs.

B. PROPERTY DEVELOPMENT

The property development division recorded a increase in both revenue and PBT for the current quarter by 14% and 20%, primarily supported by progress billing from the ongoing affordable housing project and the sale of completed unit.

C. PHARMACEUTICAL AND HEALTHCARE

The pharmaceutical and healthcare division recorded a decrease in revenue by 1% while PBT increase by 4%, primarily resulted from higher sales on higher margin products and newly introduced medical device that further strengthened the Division's performance.

D. ASSET MANAGEMENT AND INVESTMENT HOLDING

The division's revenue and PBT has improved by 8% and 75% respectively. The improvement was primarily supported by higher hotel revenue during the holiday peak season.

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KOBAY TECHNOLOGY BERHAD

Registration No. 199401022600 (308279-A)

(Incorporated in Malaysia)

B. Additional information required by the Listing Requirements of Bursa Securities

3. COMMENTARY ON PROSPECTS AND TARGETS

A. MANUFACTURING

Management anticipates that the manufacturing division will continue its gradual rebound, contributing to an increase in sales orders compared to FY2025. This improvement is expected to be primarily driven by the resurgence of demand in the global economy.

In addition to sustaining our current customer base within the E&E industry, the division plans to strategically expand into the Electronics Manufacturing Services (EMS) sector. This growth will be further supported by a comprehensive evaluation of our manufacturing operations, aimed at improving efficiency and optimizing cost structures.

B. PROPERTY DEVELOPMENT

The Group anticipates that the division's contribution to remain marginally positive in the upcoming quarters, given that the ongoing affordable projects are approaching completion by 2026.

Acknowledging the rising costs of building materials and higher borrowing expenses, management is committed to closely monitoring and refining our risk management strategies. Additionally, new product launches will be strategically timed in line with market conditions and prevailing home buyer sentiment amid geopolitical uncertainties, balancing growth opportunities with prudent risk management.

C. PHARMACEUTICAL AND HEALTHCARE

Management expects steady demand for pharmaceutical and healthcare products, supported by rising health awareness and a stronger focus on preventive care. However, higher living costs may pose challenges to growth. To mitigate this, the division will broaden its product range, explore overseas markets, and continue to enforce strict cost controls.

While the outlook for FY2026 remains cautiously optimistic, management remains mindful of rising costs and potential recessionary risks. The division will continue to monitor market conditions and adjust its strategies to stay competitive and maintain sustainable profitability.

4. VARIANCE ON FORECAST PROFIT/PROFIT GUARANTEE

The Group did not issue any profit forecast or profit guarantee during the current year under review.

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KOBAY TECHNOLOGY BERHAD

Registration No. 199401022600 (308279-A)

(Incorporated in Malaysia)

B. Additional information required by the Listing Requirements of Bursa Securities

5. PROFIT BEFORE TAX

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

	Quarter Ended
	31.3.2026 RM'000	31.3.2026 RM'000
Depreciation of property, plant and equipment	5,392	16,315
Depreciation of right-of-use assets	1,183	3,572
Depreciation of investment properties	68	204
Amortisation of intangible assets	151	453
Interest expenses	2,642	5,761
Lease expenses	60	283
Gain on foreign exchange	(314)	(478)
Amortisation of deferred income on government grants	(8)	(24)
Property, plant and equipment written off	17	18
Gain on disposal of property, plant and equipment	-	(144)
Interest income	(269)	(862)

Save as disclosed above, other items as required under Appendix 9B, Part A(16) of the Bursa Listing Requirements are not applicable.

6. TAXATION

Taxation comprises the following:

	Quarter Ended		Year-To-Date Ended
	31.3.2026 RM'000	31.3.2025 RM'000	31.3.2026 RM'000	31.3.2025 RM'000
Current tax	(2,324)	(3,278)	(9,810)	(7,334)
Deferred tax	(522)	1,239	(290)	193
	(2,846)	(2,039)	(10,100)	(7,141)

The effective tax rates for the current quarter are higher than the statutory tax rate mainly due to the losses of certain subsidiaries cannot be set off against taxable profits made by other subsidiaries.

7. STATUS OF CORPORATE PROPOSALS

There were no other corporate proposals announced as at the date of this interim report but pending completion.

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KOBAY TECHNOLOGY BERHAD

Registration No. 199401022600 (308279-A)

(Incorporated in Malaysia)

B. Additional information required by the Listing Requirements of Bursa Securities

1. GROUP BORROWINGS AND DEBTS SECURITIES

| | 31.3.2026
RM'000 | 31.3.2025
RM'000 |
| --- | --- | --- |
| Secured | | |
| Term loans | 32,882 | 40,191 |
| Revolving credit | 57,188 | 65,141 |
| Banker's acceptance | 650 | - |
| Bank overdraft | 18,331 | 10,690 |
| Unsecured | | |
| Revolving credit | 10,220 | 6,536 |
| Banker's acceptance | 4,117 | 8,480 |
| | 123,388 | 131,038 |
| Disclosed as | | |
| Current liabilities | 95,279 | 96,187 |
| Non-current liabilities | 28,109 | 34,851 |
| | 123,388 | 131,038 |
| Currency profile | | |
| Ringgit Malaysia | 110,415 | 103,380 |
| US Dollar | 12,973 | 27,658 |
| | 123,388 | 131,038 |

Secured term loans are secured against certain freehold and leasehold land, property and plant and equipment of the Group. The effective interest rate of loans and borrowings as at 31 March 2026 ranged from 3.99% to 8.35% per annum (31.3.2025: 3.30% to 6.80%).

1. FAIR VALUE CHANGES OF FINANCIAL LIABILITIES

There were no gain and losses arising from fair value changes of financial liabilities for current quarter.

1. MATERIAL LITIGATION

As at the date of this report, there are no material litigations or claims required to be disclosed pursuant to Paragraph 9.03 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.

1. DIVIDEND

The Board of Directors does not recommend any dividend for the financial quarter ended 31 March 2026 (31.3.2025: Nil).

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KOBAY TECHNOLOGY BERHAD
Registration No. 199401022600 (308279-A)
(Incorporated in Malaysia)

B. Additional information required by the Listing Requirements of Bursa Securities

1. EARNINGS PER SHARE ("EPS")

	Quarter Ended		Year-To-Date Ended
	31.3.2026
RM '000	31.3.2025
RM '000	31.3.2026
RM '000	31.3.2025
RM '000
Profit attributable to owners of the Company	14,078	705	36,554	10,171
Weighted average number of ordinary shares in issue ('000)	320,181	320,181	320,181	320,181
Basic and diluted EPS (sen)	4.40	0.22	11.42	3.18

Diluted earnings per share are not disclosed herein as it is not applicable to the Group.