LEBTECH BERHAD — Interim / Quarterly Report 2026

May 21, 2026

LEBTECH BERHAD (590945-H)
NOTES TO THE UNAUDITED QUARTERLY REPORT
FOR THE FIRST QUARTER ENDED 31 MARCH 2026

EXPLANATORY NOTES

1. Basis of Preparation

The financial statements of the Group and the Company have been prepared in accordance with Malaysian Financial Reporting Standards ("MFRSs"), International Financial Reporting Standards ("IFRSs") and the requirements of the Companies Act, 2016 in Malaysia.

The financial statements have been prepared under the historical cost convention except as disclosed in the respective significant accounting policies.

The preparation of financial statements in conformity with MFRS requires the use of certain critical accounting estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported financial year. It also requires the Directors to exercise their judgement in the process of applying the Group's and the Company's accounting policies.

These financial statements are presented in Ringgit Malaysia.

2. Changes in Accounting Policies

2.0 Changes in Accounting Policy for Investment Properties

The Company has changed its accounting policy from cost method to fair value method for its Investment Properties.

Investment Properties are measured at fair value method with any changes therein recognised in profit or loss during the year.

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LEBTECH BERHAD (590945-H)

NOTES TO THE UNAUDITED QUARTERLY REPORT

FOR THE FIRST QUARTER ENDED 31 MARCH 2026

2.1 Changes in accounting policies arising from adoption of new MFRS, amendments to MFRS and IC Interpretations

The accounting policies adopted are consistent with those of the previous financial year except as follows:

The Group and the Company adopted the following new and amended MFRS and Interpretations Committee ("IC") Interpretations mandatory for annual financial periods beginning on or after 1 January 2026.

Descriptions		Effective for annual periods beginning on or after
MFRS 1	First-time Adoption of Malaysian Financial Reporting Standards (Amendments to MFRS 1)	1 January 2026
MFRS 7	Financial Instruments Disclosures (Amendments to MFRS 7)	1 January 2026
MFRS 9 and MFRS 7	Classification and Measurement of Financial Instruments (Amendments to MFRS 9 and MFRS 7)	1 January 2026
MFRS 9	Financial Instruments Disclosures (Amendments to MFRS 9)	1 January 2026
MFRS 10	Consolidated Financial Statements (Amendments to MFRS 10)	1 January 2026
MFRS 107	Statement Cash Flows (Amendments to MFRS 107)	1 January 2026
MFRS 18	Presentation and Disclosure in Financial Statements (Amendments to MFRS 18)	1 January 2026
MFRS 19	Subsidiaries without Public Accountability: Disclosures (Amendments to MFRS 19)	1 January 2026
MFRS 18	Presentation and Disclosure in Financial Statements	1 January 2027
MFRS 19	Subsidiaries without Public Accountability: Disclosures	1 January 2027
Amendments to MFRS 121	Translation to a Hyperinflationary Presentation Currency	1 January 2027

The Directors expect that the adoption of the above standards and interpretations will have no material impact on the Group's and the Company's financial statement in the year of initial application.

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LEBTECH BERHAD (590945-H)
NOTES TO THE UNAUDITED QUARTERLY REPORT
FOR THE FIRST QUARTER ENDED 31 MARCH 2026

1. Seasonality and Cyclically Factors

The business of the Group was not significantly affected by any seasonal or cyclical factors.

1. Nature and Amount of Unusual Items Affecting Assets, Liabilities, Equity, Net Income or Cash Flow

There were no unusual material items that affect assets, liabilities, equity, net income or cash flows of the Group for the current quarter.

1. Changes in Estimates

There were no changes to the estimates of the amount reported in the prior financial year that have a material effect in the current quarter.

1. Issuances, Cancellations, Repurchases, Resale and Repayment of Debts & Equity Securities

There were no issuances and repayments of debts and equity securities, shares buy-backs, shares cancellations, shares held as treasury shares and/or resale of treasury shares by the Company for the current quarter under review.

1. Dividend Paid

There were no dividends paid during the current quarter and current financial year to-date.

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LEBTECH BERHAD (590945-H)
NOTES TO THE UNAUDITED QUARTERLY REPORT
FOR THE FIRST QUARTER ENDED 31 MARCH 2026

8. Segmental Reporting

The segmental report of the Group for the current year to-date and preceding year corresponding period is as follows: -

	3 months ended 31.03.2026	3 months ended 31.03.2025
	RM'000	RM'000
Segment Revenue
Construction	1,714	2,705
	1,714	2,705
Segment Results (Profit/Loss) before taxation)
Construction	(1033)	162
Rental	227	197
Finance income	4	62
Other income	349	-
	(453)	421

9. Carrying Amount of Revalued Property, Plant and Equipment

There were no valuation of property, plant and equipment in the Group, the amount accounted is the net book value based on the cost of acquisition less accumulated depreciation.

10. Subsequent Material Events

There were no subsequent material events not reflected in the financial statements from the end of 31 March 2026 until 19 May 2026 being a date not earlier than 7 days from the date of issuance of this quarterly report.

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LEBTECH BERHAD (590945-H)

NOTES TO THE UNAUDITED QUARTERLY REPORT

FOR THE FIRST QUARTER ENDED 31 MARCH 2026

11. Key Audit Matters

The Board further informs that the key audit matters as reported by the Independent Auditor's Report for the Financial Year 2025 is as follows:

Key audit matters	How our audit addressed the key audit matters
1. Revenue and cost of sales recognition from construction contract
In accordance with MFRS 15 Revenue from Contracts with Customers, the analysis of whether the contracts comprise one or more performance obligations, allocation of transaction prices to one or more performance obligations and the determination whether the performance obligations are satisfied over time or at a point in time are areas requiring significant management judgement.
There is a risk of error in the measurement and timing of revenue recognition due to either inappropriate assessment of the performance obligations and/or inaccurate allocation of transaction price to various performance obligations.
We identified the revenue and cost of sales from construction contract recognized on the stage of completion of the contract method or over time as matters requiring audit focus as these are areas involved significant management's judgement.	• We have obtained an understanding on policies and procedures applied to revenue as well as compliance therewith, including analysis of the effectiveness of internal controls related to revenue recognition by the Group.
• We read selected contracts entered with customers and sub-contractors to obtain an understanding on the terms of contracts. For subsequent variation in contract works and claims for cost not included in the initial contracts, we agreed the amounts to approved variation order forms and/or correspondences with the customers and sub-contractors.
• We assessed the reasonableness of the estimated total costs by agreeing to supporting documentation, i.e. approved budgets, quotations, correspondences, letters of award and contracts with sub-contractors.
• We examined a sample of actual costs incurred by agreeing to progress claims certificate from sub-contractors and invoices from suppliers.

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LEBTECH BERHAD (590945-H)

NOTES TO THE UNAUDITED QUARTERLY REPORT

FOR THE FIRST QUARTER ENDED 31 MARCH 2026

11. Key Audit Matters (continued)

Key audit matters	How our audit addressed the key audit matters
1. Revenue and cost of sales recognition from construction contract cont'd
Furthermore, significant judgements are required in estimating the cost to complete the performance obligation satisfied over time using the input method.

The Group's accounting policies, significant accounting estimates and judgements and disclosures on revenue recognition based on stage of completion of the contracts method are disclosed in Note 2.18, 3.1 (iii) and 14 to the financial statements respectively. | • We have discussed with management, key project team members and professionals employed by the Group to understand the overall progress claims and physical progress of the construction and corroborate with the stage of completion computed based on extent of costs incurred.

• We recomputed the revenue recognized during the reporting period using the input method by reference to the percentage of the costs incurred over estimated total costs of selected contracts project.

• We reviewed the adequacy of the disclosures included in the notes to the financial statements. |
| 2. Recoverability of amount due from related parties cont'd
As at 31 December 2025, the net carrying values of the amount due from related parties of the Group amounted to RM69,109,169, as discussed in Note 7 to the financial statements.

During the current financial year, the allowance for expected credit losses on trade receivables recognized is amounting to RM60,549.

As a results, as at 31 December 2025, the accumulated allowance for expected credit losses on trade receivables amounted to RM 7,796,813. | • We have an understanding of the Group's internal control over the receivables approval and collection process. We assessed the validity of material long outstanding receivables by obtaining third parties confirmation.

• We have reviewed and verified the collections received during the reporting period and subsequent to the reporting period to bank records.

• We have assessed the adequacy of impairment assessment performed by management on overdue receivables. For a balance where no allowance for impairment was made, we obtained evidence in the form of subsequent receipts, historical payment trends, customer's financial position and customer's correspondences. |

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LEBTECH BERHAD (590945-H)

NOTES TO THE UNAUDITED QUARTERLY REPORT

FOR THE FIRST QUARTER ENDED 31 MARCH 2026

11. Key Audit Matters (continued)

Key audit matters	How our audit addressed the key audit matters
2. Recoverability of amount due from related parties cont'd
The Group assesses at each reporting date whether there is any objective evidence that a financial asset is impaired. To determine whether there is objective evidence of impairment, the Group considers factors such as the Group contractual entitlement to a debt, the probability of insolvency or significant financial difficulties of the debtor and default or significant delay in payments.

The recoverability of receivables from related parties, allowance for expected credit losses are considered to be a significant risk due to the pervasive nature of these balances to the financial statements and affect the working capital management of the business. We focused our testing of the impairment and recoverability of trade receivables on the key assumptions made by the management.

Refer to Note 2.10 on Group's accounting policies, Note 3.1 (iv) on significant accounting estimates and judgements and disclosures in Note 7, 21 (c) and 23 to the financial statements. | • We tested the adequacy of the allowance of expected credit losses made by management through challenging the relevant assumptions and data applied in making the estimates.
• We verified receipts from trade receivables subsequent to year-end; and
• We assessed the completeness and accuracy of disclosures.
• We have reviewed the adequacy of the policy disclosed to determine the accounting estimates for the impairment of receivables as disclosed in Note 3.1(iv). |

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LEBTECH BERHAD (590945-H)

NOTES TO THE UNAUDITED QUARTERLY REPORT

FOR THE FIRST QUARTER ENDED 31 MARCH 2026

11. Key Audit Matters (continued)

Key audit matters	How our audit addressed the key audit matters
3. Impairment of financial asset on trade and other receivables

Under MFRS 9, the Group is required to apply an expected credit loss (ECL) model to measure impairment of trade and other receivables. This represents a significant change from the previous incurred loss model, as recognition of credit losses is now required regardless of whether a credit event has occurred.

The determination of ECL involves significant management judgement in assessing historical credit loss experience, forward-looking information, and the credit risk of individual customers. As at the reporting date, the Group is also required to update its assumptions to reflect current and forecasted economic conditions.

Given the complexity of the ECL model, the level of estimation involved, and the significance of the balances of trade and other receivables to the financial statements, we considered this a key audit matter. Refer to Note 2.9, 3.1 (iv), 7 and Note 21 (c). | • We reviewed the Group's trade and other receivables schedule and the impairment assessment prepared by management.
• We evaluated the reasonableness of the methods, key assumptions, and judgements applied by management in estimating expected credit losses in accordance with MFRS 9.
• We checked outstanding invoices and verified subsequent collections up to the date of our audit procedures to assess the recoverability of balances.
• We performed tests on the accuracy and completeness of the data used by management in their impairment assessment.
• We verified the movement of receivables throughout the year and identified the length of time the entities have remained in the receivables ledger.
• We assessed management's recoverability plans for significant trade and other receivables, including long-outstanding balances. |

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LEBTECH BERHAD (590945-H)
NOTES TO THE UNAUDITED QUARTERLY REPORT
FOR THE FIRST QUARTER ENDED 31 MARCH 2026

1. Changes in The Composition of The Group / Capital Structure

There were no changes in the composition or capital structure of the Group during the current quarter under review.

1. Changes in Contingent Liabilities

There were no contingent liabilities as at the report date.

1. Capital Commitments

There were no capital commitments that have a material effect in the current interim financial period.

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LEBTECH BERHAD (590945-H)

NOTES TO THE UNAUDITED QUARTERLY REPORT

FOR THE FIRST QUARTER ENDED 31 MARCH 2026

15. Significant Related Party Disclosures

Related parties are those defined under FRS 124 (Related Party Disclosures).

The following are the related party transactions of the Group for the current year quarter and current year to-date under review:

Lebtech Bhd & its subsidiary	Transacting Party	Relationship	Nature of Transaction	Current Year Quarter RM'000	Current Year To-date RM '000	Balance Outstanding (Including Retention) As at 31-03-2026 RM'000
Lebtech Construction Sdn Bhd	Lebar Daun Development Sdn Bhd	Company connected with major shareholders and Directors	Construction Revenue Receivable from	-	-	21,021
Lebtech Construction Sdn Bhd	Basco Sdn Bhd	Company connected with major shareholders and Directors	Construction Revenue Receivable from	-	-	43,480
Lebtech Construction Sdn Bhd	Lebar Daun Development Sdn Bhd	Company connected with major shareholders and Directors	Rental Revenue Received from	59	59	1,879

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LEBTECH BERHAD (590945-H)
NOTES TO THE UNAUDITED QUARTERLY REPORT
FOR THE FIRST QUARTER ENDED 31 MARCH 2026

16. Group Performance Review

The revenue for the current financial quarter ended 31 March 2026 decreased by 36.64% to RM1.71 million from RM2.71 million recorded in the preceding corresponding period. Cumulatively, the revenue recorded for the period ended 31 March 2026 decreased by 36.64% to RM1.71 million from RM2.71 million recorded in the preceding corresponding period.

For the current financial quarter, the Group recorded a loss before taxation of RM453 thousand as compared to a profit before taxation of RM421 thousand in the preceding corresponding period. Cumulatively, loss before taxation for the period ended 31 March 2026 stood at RM453 thousand as compared to a profit before taxation of RM421 thousand in the preceding corresponding period. This is mainly due to slow progress in Setia Alam Amare 3 project.

17. Comparison with Preceding Quarter's Results

The Group recorded revenue of RM1.71 million for the current financial quarter as compared to RM5.55 million in the immediate preceding quarter. A loss before taxation of RM453 thousand was recorded for the current financial quarter as compared to a profit before taxation of RM102 thousand in the immediate preceding quarter.

	3 months ended 31.03.2026	3 months ended 31.12.2025
	RM'000	RM'000
Revenue	1,714	5,547
(Loss)/Profit before taxation	(463)	102

18. Prospect for the Financial Year 2026

The Group remains cautious in view of challenging environment of 2026 with the Board foreseeing the Group's operational results to be equally challenging.

The revenue generation mainly comes from the construction contracts of property development projects with significant efforts being given to secure new construction jobs to improve the order book. The Group expects the construction segment to record better growth in year 2026.

The Group intends to diversify on IT system integrator as part of its new business strategy.

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LEBTECH BERHAD (590945-H)

NOTES TO THE UNAUDITED QUARTERLY REPORT

FOR THE FIRST QUARTER ENDED 31 MARCH 2026

1. Variances on Profit Forecast and Profit Guarantee for Financial Year Ending 31 March 2026.

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

1. Taxation

The taxation for the current quarter consists of the followings: -

	Current year quarter	Preceding year corresponding quarter	Current year-to-date	Preceding year corresponding period
	31.03.2026 RM'000	31.03.2025 RM'000	31.03.2026 RM'000	31.03.2025 RM'000
Corporate tax
- current year	-	180	-	180
	-	180	-	180

1. Status of Corporate Proposals

There was no corporate proposal announced that has not been completed as at the date of this report.

1. Borrowings and Debt Securities

The Group borrowings and debts securities as at 31 March 2026 are nil.

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LEBTECH BERHAD (590945-H)

NOTES TO THE UNAUDITED QUARTERLY REPORT

FOR THE FIRST QUARTER ENDED 31 MARCH 2026

23. Notes to the Statement of Comprehensive Income

Additional disclosures of items not disclosed elsewhere in this announcement, which have been included in the condensed consolidated Statement of Comprehensive Income for the first quarter and financial year ended 31 March 2026: -

	Individual Quarter		Cumulative Period
	Current Year Quarter 31.03.2026 RM'000	Preceding Year Corresponding Quarter 31.03.2025 RM'000	Current Year To-date 31.03.2026 RM'000	Preceding Year Corresponding Period 31.03.2025 RM'000
(a) Allowance for doubtful debts	Nil	Nil	Nil	Nil
(b) Provision for and write off of inventories	Nil	Nil	Nil	Nil
(c) Gain on disposal of property, plant and equipment	Nil	Nil	Nil	Nil
(d) Impairment gain on available-for-sale investment	Nil	Nil	Nil	Nil
(e) Reversal of trade payables	349	Nil	349	Nil
(f) Foreign exchange gain or loss	Nil	Nil	Nil	Nil
(g) Gain or loss on derivatives	Nil	Nil	Nil	Nil
(h) Exceptional items	Nil	Nil	Nil	Nil
(i) Gain on disposal of available-for-sale investment	Nil	Nil	Nil	Nil
(k) Reversal of impairment on trade receivables	Nil	Nil	Nil	Nil

24. Off Balance Sheet Financial Instrument

The Group does not have any off balance sheet financial instrument as at the date of this report.

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LEBTECH BERHAD (590945-H)

NOTES TO THE UNAUDITED QUARTERLY REPORT

FOR THE FIRST QUARTER ENDED 31 MARCH 2026

1. Material Litigation

Neither the Company nor its subsidiary is engaged in any material litigation and arbitration, either as plaintiff or defendant, which has a material effect and adversely affect on the financial position of the Group.

1. Dividends

The Board does not recommend any interim dividend in respect of the previous quarter under review.

1. Earnings Per Share

Basic earnings per share

Basic earnings per share are calculated by dividing the net profit/(loss) for the period by the weighted average number of ordinary shares issued during the period.

		Current Year Quarter 31.03.2026	Preceding Year Corresponding Quarter 31.03.2025	Current Year To-date 31.03.2026	Preceding Year Corresponding Period 31.03.2025
Basic earnings per share
- Profit/(Loss) for the period	(RM'000)	(453)	241	(453)	241
- Weighted average number of ordinary shares in issue	('000)	136,484	136,484	136,484	136,484
- Basic earnings/(loss) per share	(sen)	(0.33)	0.18	(0.33)	0.18

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LEBTECH BERHAD (590945-H)

NOTES TO THE UNAUDITED QUARTERLY REPORT

FOR THE FIRST QUARTER ENDED 31 MARCH 2026

28. Realised and Unrealised Retained Earnings

The breakdown as at 31st March 2026 is as follows: -

| | As at
31.03.2026
RM'000 | As at
31.03.2025
RM'000 |
| --- | --- | --- |
| Retained earnings | | |
| - Realised | 38,461 | 38,594 |
| Total group retained earnings | 38,461 | 38,594 |

By Order of the Board,

Norazmi Bin Mohamed Nurdin
Managing Director

Date: 19 May 2026

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