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SORENTO CAPITAL BERHAD — Interim / Quarterly Report 2026
May 20, 2026
71522_rns_2026-05-20_b45aacfb-c3f3-4a3a-ab44-97c8a47985dd.pdf
Interim / Quarterly Report
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Sorento
CAPITAL BERHAD
SORENTO CAPITAL BERHAD
(Registration No.: 202301018305 (1512227-W))
(Incorporated in Malaysia under the Companies Act 2016)
UNAUDITED INTERIM FINANCIAL REPORT
FOR THE THIRD QUARTER ENDED
31 MARCH 2026
SORENTO CAPITAL BERHAD
(Registration No.: 202301018305 (1512227-W))
(Incorporated in Malaysia under the Companies Act 2016)
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (1)
| INDIVIDUAL QUARTER | CUMULATIVE QUARTER | |||
|---|---|---|---|---|
| 31.03.2026 | ||||
| RM'000 | 31.03.2025 | |||
| RM'000 | 31.03.2026 | |||
| RM'000 | 31.03.2025 | |||
| RM'000 | ||||
| Revenue | 43,380 | 41,125 | 134,709 | 135,879 |
| Cost of sales | (24,512) | (22,682) | (74,649) | (78,351) |
| Gross profit | 18,868 | 18,443 | 60,060 | 57,528 |
| Other income | 672 | 394 | 1,908 | 904 |
| Administrative expenses | (8,313) | (7,234) | (21,823) | (23,687) |
| Selling and distribution expenses | (3,391) | (3,085) | (9,186) | (8,048) |
| Other expenses | * | - | (11) | - |
| Net gain on impairment of financial assets | - | * | * | 9 |
| Profit from operations | 7,836 | 8,518 | 30,948 | 26,706 |
| Finance costs | (402) | (427) | (1,225) | (1,533) |
| Profit before tax | 7,434 | 8,091 | 29,723 | 25,173 |
| Taxation | (1,657) | (1,777) | (7,240) | (6,833) |
| Profit after tax | 5,777 | 6,314 | 22,483 | 18,340 |
| Other comprehensive income | - | - | - | - |
| Total comprehensive income for the financial period | 5,777 | 6,314 | 22,483 | 18,340 |
| Total comprehensive income for the financial period attributable to: | ||||
| Owners of the Company | 5,777 | 6,314 | 22,483 | 18,340 |
| Non-controlling interest | - | - | - | - |
| 5,777 | 6,314 | 22,483 | 18,340 | |
| Basic earnings per share (sen) (2) | 0.67 | 0.95 | 2.61 | 2.75 |
| Diluted earnings per share (sen) (3) | 0.67 | 0.95 | 2.61 | 2.75 |
Notes:
- Amount less than RM1,000.
(1) 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 30 June 2025 and the accompanying explanatory notes attached to this interim financial report.
(2) The basic earnings per share for the current financial quarter and financial year-to-date period ended 31 March 2026 is computed based on the respective profit attributable to owners of the Company for each period divided by the number of ordinary shares in issue of 860,000,000. For the corresponding quarter and year-to-date period ended 31 March 2025, they are calculated based on the weighted average number of ordinary shares in issue of 666,606,018 as at the end of the financial period.
(3) The diluted earnings per share of the Company is equivalent to the basic earnings per share as the Company does not have convertible securities at the end of the reporting period.
2
SORENTO CAPITAL BERHAD
(Registration No.: 202301018305 (1512227-W))
(Incorporated in Malaysia under the Companies Act 2016)
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (1)
| | UNAUDITED
31.03.2026
RM'000 | AUDITED
30.06.2025
RM'000 |
| --- | --- | --- |
| ASSETS | | |
| Non-current assets | | |
| Property, plant and equipment | 42,860 | 43,822 |
| Investment properties | 1,273 | 873 |
| Intangible asset | 1,727 | 1,476 |
| Deferred tax assets | 168 | 168 |
| | 46,028 | 46,339 |
| Current assets | | |
| Inventories | 34,749 | 32,063 |
| Trade receivables | 38,839 | 43,307 |
| Other receivables | 4,543 | 13,747 |
| Tax recoverable | 1,136 | 1,997 |
| Other investment | 25,633 | 15,141 |
| Fixed deposits with licensed banks | - | 26,251 |
| Cash and bank balances | 50,641 | 17,006 |
| | 155,541 | 149,512 |
| TOTAL ASSETS | 201,569 | 195,851 |
| EQUITY AND LIABILITIES | | |
| EQUITY | | |
| Share capital | 97,767 | 97,767 |
| Merger deficit | (41,919) | (41,919) |
| Retained earnings | 101,170 | 87,287 |
| TOTAL EQUITY | 157,018 | 143,135 |
| LIABILITIES | | |
| Non-current liabilities | | |
| Loans and borrowings | 582 | 262 |
| Lease liabilities | 36,235 | 38,010 |
| Deferred tax liabilities | 186 | 186 |
| | 37,003 | 38,458 |
| Current liabilities | | |
| Loans and borrowings | 15 | 2,451 |
| Lease liabilities | 3,164 | 2,972 |
| Trade payables | 461 | 274 |
| Other payables | 3,221 | 7,005 |
| Tax payable | 687 | 1,556 |
| | 7,548 | 14,258 |
| TOTAL LIABILITIES | 44,551 | 52,716 |
| TOTAL EQUITY AND LIABILITIES | 201,569 | 195,851 |
| Net assets per share (RM) (2) | 0.18 | 0.17 |
3
SORENTO CAPITAL BERHAD
(Registration No.: 202301018305 (1512227-W))
(Incorporated in Malaysia under the Companies Act 2016)
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONT'D) (1)
Notes:
(1) The condensed consolidated statement of financial position should be read in conjunction with the audited financial statements for the financial year ended 30 June 2025 and the accompanying explanatory notes attached to this interim financial report.
(2) Computed based on respective period's total equity attributable to owners of the Company divided by 860,000,000 shares in issue.
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4
SORENTO CAPITAL BERHAD
(Registration No.: 202301018305 (1512227-W))
(Incorporated in Malaysia under the Companies Act 2016)
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (1)
| SHARE CAPITAL RM'000 | INVESTED EQUITY RM'000 | MERGER DEFICIT RM'000 | RETAINED EARNINGS RM'000 | TOTAL EQUITY RM'000 | |
|---|---|---|---|---|---|
| At 1 July 2024 (Audited) | 1 | 381 | - | 65,350 | 65,732 |
| Total comprehensive income for the financial period | - | - | - | 26,237 | 26,237 |
| Transactions with owners: | |||||
| - Effect of restructuring exercise | 42,300 | (381) | (41,919) | - | - |
| - Issuance of share capital | 57,350 | - | - | - | 57,350 |
| - Share issuance expenses | (1,884) | - | - | - | (1,884) |
| - Dividend to owners of the Company | - | - | - | (4,300) | (4,300) |
| At 30 June 2025 (Audited) | 97,767 | - | (41,919) | 87,287 | 143,135 |
| At 1 July 2025 (Audited) | 97,767 | - | (41,919) | 87,287 | 143,135 |
| Total comprehensive income for the financial period | - | - | - | 22,483 | 22,483 |
| Transaction with owners: | |||||
| - Dividend to owners of the Company | - | - | - | (8,600) | (8,600) |
| At 31 March 2026 (Unaudited) | 97,767 | - | (41,919) | 101,170 | 157,018 |
Note:
(1) The condensed consolidated statement of changes in equity should be read in conjunction with the audited financial statements for the financial year ended 30 June 2025 and the accompanying explanatory notes attached to this interim financial report.
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5
SORENTO CAPITAL BERHAD
(Registration No.: 202301018305 (1512227-W))
(Incorporated in Malaysia under the Companies Act 2016)
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (1)
| CUMULATIVE QUARTER | ||
|---|---|---|
| 31.03.2026 RM'000 | 31.03.2025 RM'000 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Profit before tax | 29,723 | 25,173 |
| Adjustments for: | ||
| Depreciation of property, plant and equipment | 3,511 | 3,357 |
| Gain on disposal of property, plant and equipment | * | (11) |
| Property, plant and equipment written off | * | - |
| Depreciation of investment properties | 7 | 8 |
| Gain on disposal of investment properties | (3) | (30) |
| Amortisation of intangible asset | 230 | 215 |
| Loss on early termination of lease contracts | 2 | - |
| Interest expenses | 1,225 | 1,533 |
| Interest income | (910) | (74) |
| Dividend income | (500) | - |
| Reversal of expected credit losses (“ECLs”) on trade receivables | * | (9) |
| Unrealised gain on foreign exchange | (159) | (18) |
| Fair value loss on other investment | 8 | - |
| Operating profit before working capital changes | 33,134 | 30,144 |
| Changes in working capital: | ||
| Inventories | (2,686) | (1,172) |
| Receivables | 13,732 | 2,730 |
| Payables | (3,615) | (8,005) |
| Cash generated from operations | 40,565 | 23,697 |
| Interest received | 559 | 34 |
| Tax paid | (9,090) | (6,965) |
| Tax refund | 1,842 | - |
| Net cash from operating activities | 33,876 | 16,766 |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Acquisition of property, plant and equipment | (1,879) | (939) |
| Proceed from disposal of property, plant and equipment | - | 38 |
| Acquisition of investment properties | (754) | - |
| Proceeds from disposal of investment properties | 350 | 395 |
| Acquisition of intangible asset | (481) | - |
| Placement of other investment | (10,500) | - |
| Interest received | 351 | 40 |
| Dividend received | 500 | - |
| Withdrawal of fixed deposits with maturity more than 3 months | 10,198 | - |
| Net cash used in investing activities | (2,215) | (466) |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Dividend paid | (8,600) | (7,299) |
| Interest paid | (1,225) | (1,537) |
| Drawdown of term loans | 600 | - |
| Repayments of term loans | (272) | (2,367) |
| Drawdown of bankers’ acceptance | - | 7,401 |
| Repayments of bankers’ acceptance | (2,444) | (21,201) |
| Drawdown of invoice financing | - | 7,068 |
| Repayment of invoice financing | - | (7,307) |
| Repayments of lease liabilities | (2,255) | (2,051) |
| Proceed from issuance of share capital | - | 57,350 |
| Payment of listing expense | - | (1,884) |
| Net cash (used in)/from financing activities | (14,196) | 28,173 |
6
SORENTO CAPITAL BERHAD
(Registration No.: 202301018305 (1512227-W))
(Incorporated in Malaysia under the Companies Act 2016)
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (CONT'D) (1)
| CUMULATIVE QUARTER | ||
|---|---|---|
| 31.03.2026 | 31.03.2025 | |
| RM'000 | RM'000 | |
| NET CHANGES IN CASH AND CASH EQUIVALENTS | 17,465 | 44,473 |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF THE FINANCIAL PERIOD | 33,059 | 12,184 |
| Effect of exchange translation differences on cash and cash equivalents | 117 | 4 |
| CASH AND CASH EQUIVALENTS AT END OF THE FINANCIAL PERIOD | 50,641 | 56,661 |
| CASH AND CASH EQUIVALENTS AT END OF THE FINANCIAL PERIOD COMPRISES: | ||
| Cash and bank balances | 50,641 | 24,972 |
| Fixed deposits with licensed banks | - | 31,689 |
| 50,641 | 56,661 |
Notes:
- Amount less than RM1,000.
(1) The condensed consolidated statement of cash flows should be read in conjunction with the audited financial statements for the financial year ended 30 June 2025 and the accompanying explanatory notes attached to this interim financial report.
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7
SORENTO CAPITAL BERHAD
(Registration No.: 202301018305 (1512227-W))
(Incorporated in Malaysia under the Companies Act 2016)
A. EXPLANATORY NOTES PURSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS ("MFRS") 134: INTERIM FINANCIAL REPORTING
A1. Basis of preparation
The interim financial report of Sorento Capital and its subsidiaries (the "Group") is unaudited and has been prepared in accordance with the requirements of the MFRS 134: Interim Financial Reporting and Appendix 9B of the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad ("Listing Requirements").
This interim financial report should be read in conjunction with the Company's audited financial statements for the financial year ended 30 June 2025 and the accompanying explanatory notes attached to this interim financial report.
A2. Material accounting policies
The accounting policies adopted by the Group in this interim financial report are consistent with those adopted in the preparation of the Company's audited financial statements for the financial year ended 30 June 2025, save for the following:
MFRSs and amendments to MFRSs in issue and effective
The Group has adopted the following Standards and Amendments to MFRS effective for annual periods beginning on or after 1 January 2025:
- Amendments to MFRS 121 – Lack of Exchangeability
MFRSs and amendments to MFRSs in issue but not yet effective
The Group has not adopted the following MFRSs and amendments to MFRSs effective for financial periods beginning on or after the following:
| Amendments to MFRS 9 and MFRS 7 | Amendments to the Classification and Measurement of Financial Instruments | Effective dates for financial periods beginning on or after |
|---|---|---|
| Amendments to MFRS 1 | Annual Improvements – Volume 11 | 1 January 2026 |
| Amendments to MFRS 7 | ||
| Amendments to MFRS 9 | ||
| Amendments to MFRS 10 | ||
| Amendments to MFRS 107 | ||
| Amendments to MFRS 9 and MFRS 7 | Contracts Referencing Nature-dependent Electricity | 1 January 2026 |
| MFRS 18 | Presentation and Disclosure in Financial Statements | 1 January 2027 |
8
SORENTO CAPITAL BERHAD
(Registration No.: 202301018305 (1512227-W))
(Incorporated in Malaysia under the Companies Act 2016)
A. EXPLANATORY NOTES PURSUANT TO MFRS 134: INTERIM FINANCIAL REPORTING (CONT'D)
A2. Material accounting policies (Cont'd)
MFRSs and amendments to MFRSs in issue but not yet effective (Cont'd)
The Group has not adopted the following MFRSs and amendments to MFRSs effective for financial periods beginning on or after the following: (Cont'd)
| Amendments to MFRS 19 | Subsidiaries without Public Accountability: Disclosures | Effective dates for financial periods beginning on or after |
|---|---|---|
| Amendments to MFRS 121 | Translation to a Hyperinflationary Presentation Currency | 1 January 2027 |
| Amendments to MFRS 10 and MFRS 128 | Sale or Contribution of Assets between an Investor and its Associate or Joint Venture | Deferred until further notice |
The Group will adopt the above pronouncements when they become effective in the respective financial periods. These pronouncements are not expected to have any material effect on the financial statements of the Group upon their initial application.
A3. Auditors' report on preceding annual financial statements
There was no qualification on the audited financial statements of the Company and its subsidiaries for the financial year ended 30 June 2025.
A4. Seasonal or cyclical factors
The Group's business operations were not affected by any seasonal or cyclical factors.
A5. Unusual items affecting assets, liabilities, equity, net income or cash flows
There were no items or events that arose, which affected the assets, liabilities, equity, net income or cash flows of the Group, that are unusual by reason of their nature, size or incidence for the financial quarter under review.
A6. Material changes in estimates
There were no material changes in estimates which have a material effect on the results for the financial quarter under review.
A7. Debt and equity securities
There were no issuance, cancellation, repurchase, resale and repayment of debt and equity securities during the financial quarter under review.
9
SORENTO CAPITAL BERHAD
(Registration No.: 202301018305 (1512227-W))
(Incorporated in Malaysia under the Companies Act 2016)
A. EXPLANATORY NOTES PURSUANT TO MFRS 134: INTERIM FINANCIAL REPORTING (CONT'D)
A8. Dividend paid
RM'000
In respect of the financial year ending 30 June 2026:
| Interim single-tier dividend of RM0.005 per ordinary share, paid on 19 September 2025 | 4,300 |
|---|---|
| Interim single-tier dividend of RM0.005 per ordinary share, paid on 13 March 2026 | 4,300 |
| Total | 8,600 |
A9. Segment information
Information about operating segment has not been reported separately as the Group's revenue, profit or loss, assets and liabilities are mainly confined to a single operating segment, namely marketing, distribution and sale of bathroom and kitchen sanitary wares.
A10. Valuation of property, plant and equipment, and investment properties
There was no valuation of property, plant and equipment, and investment properties undertaken during the financial quarter under review.
A11. Material events subsequent to the end of the interim financial period
There were no material events subsequent to the end of the current financial quarter under review that have not been reflected in this interim financial report.
A12. Changes in the composition of the Group
There were no changes in the composition of the Group during the financial quarter under review.
A13. Fair value of financial instruments
The carrying amounts of current financial assets and liabilities are reasonable approximation of fair values, either due to their short-term nature or that they are floating rate instruments that are re-priced to market interest rates on or near the reporting date.
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10
SORENTO CAPITAL BERHAD
(Registration No.: 202301018305 (1512227-W))
(Incorporated in Malaysia under the Companies Act 2016)
A. EXPLANATORY NOTES PURSUANT TO MFRS 134: INTERIM FINANCIAL REPORTING (CONT'D)
A14. Capital commitments
The Group's capital expenditure commitments for property, plant and equipment and investment properties are set out below:
| | Unaudited
31.03.2026
RM'000 | Audited
30.06.2025
RM'000 |
| --- | --- | --- |
| Capital expenditure | | |
| Authorised and contracted for: | | |
| - Computers and software | - | 130 |
| - Investment properties | 3,964 | 4,706 |
| - Renovations | 333 | - |
| - Motor vehicles | 927 | - |
| Total | 5,224 | 4,836 |
A15. Contingent assets and contingent liabilities
There were no material contingent assets or contingent liabilities as at the end of the financial quarter under review.
A16. Significant related party transactions
The related party transactions of the Group have been entered into in the normal course of business. Listed below are the significant transactions with related parties of the Group during the current financial quarter under review:
| INDIVIDUAL QUARTER | CUMULATIVE QUARTER | |||
|---|---|---|---|---|
| Unaudited | ||||
| 31.03.2026 | ||||
| RM'000 | Unaudited | |||
| 31.03.2025 | ||||
| RM'000 | Unaudited | |||
| 31.03.2026 | ||||
| RM'000 | Unaudited | |||
| 31.03.2025 | ||||
| RM'000 | ||||
| Transactions with related parties | ||||
| Sales of goods | 48 | 42 | 86 | 162 |
| Purchase of hardware for product maintenance | - | * | - | * |
| Rental paid to (MFRS 16) | 900 | 900 | 2,700 | 2,700 |
| Acquisition of property, plant and equipment from | - | - | - | 1 |
| Upkeep of warehouse paid to | * | * | * | * |
Note:
- Amount less than RM1,000.
11
SORENTO CAPITAL BERHAD
(Registration No.: 202301018305 (1512227-W))
(Incorporated in Malaysia under the Companies Act 2016)
B. EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF THE LISTING REQUIREMENTS
B1. Review of performance
| INDIVIDUAL QUARTER | CUMULATIVE QUARTER | |||
|---|---|---|---|---|
| Unaudited 31.03.2026 | Unaudited 31.03.2025 | Unaudited 31.03.2026 | Unaudited 31.03.2025 | |
| RM'000 | RM'000 | RM'000 | RM'000 | |
| Revenue | 43,380 | 41,125 | 134,709 | 135,879 |
| Gross profit | 18,868 | 18,443 | 60,060 | 57,528 |
| Profit before tax (“PBT”) | 7,434 | 8,091 | 29,723 | 25,173 |
| Profit after tax (“PAT”) | 5,777 | 6,314 | 22,483 | 18,340 |
(a) Comparison of the current quarter with preceding year's corresponding quarter (Q3 FY2026 vs Q3 FY2025)
For the Q3 FY2026, the Group recorded revenue of RM43.38 million representing an increase of RM2.25 million or 5.47% as compared to RM41.13 million in the Q3 FY2025. The increase was primarily attributable to higher contribution from project-based sales, which increased by RM3.61 million or 24.79% from RM14.56 million in Q3 FY2025 to RM18.17 million. This was partially offset by a decline in sales to dealers of RM1.31 million or 4.98% to RM24.97 million compared to RM26.28 million in Q3 FY2025.
Gross profit increased by RM0.43 million or 2.33% to RM18.87 million in line with higher revenue. However, the gross profit margin decreased slightly from 44.83% in Q3 FY2025 to 43.50% in Q3 FY2026, mainly due to changes in sales mix, with higher contribution from lower-margin products and project sales.
PBT decreased marginally by RM0.66 million or 8.16% to RM7.43 million as compared to RM8.09 million in Q3 FY2025, mainly due to higher operating expenses incurred during the current quarter. Accordingly, PAT decreased by RM0.53 million or 8.40% to RM5.78 million from RM6.31 million in Q3 FY2025.
(b) Comparison of current year-to-date with preceding year's corresponding year-to-date (9M FY2026 vs 9M FY2025)
For the nine (9)-month financial period ended 31 March 2026, the Group recorded revenue of RM134.71 million, representing a slight decrease of RM1.17 million or 0.86% as compared to RM135.88 million recorded in the 9M FY2025. The marginal decline was mainly attributable to lower revenue contribution from sales to dealers, which decreased by RM2.35 million from RM87.08 million in 9M FY2025 to RM84.73 million in 9M FY2026. This was partially offset by higher contribution from project-based sales, which increased by RM1.39 million from RM47.69 million to RM49.08 million in 9M FY2026.
Despite the lower revenue, gross profit increased by RM2.53 million or 4.40% to RM60.06 million attributable to improved cost management and operational efficiency.
The Group registered PBT of RM29.72 million for the 9M FY2026, representing an increase of RM4.55 million or 18.08% as compared to RM25.17 million recorded in 9M FY2025. The PAT also increased by RM4.14 million or 22.57% to RM22.48 million as compared to RM18.34 million in the 9M FY2025.
In summary, although revenue was marginally lower on a year-to-date basis, the Group delivered stronger overall financial performance driven by improved cost management and the absence of non-recurring initial public offering ('IPO') related expenses incurred in the prior financial year.
12
SORENTO CAPITAL BERHAD
(Registration No.: 202301018305 (1512227-W))
(Incorporated in Malaysia under the Companies Act 2016)
B. EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF THE LISTING REQUIREMENTS (CONT'D)
B2. Comparison with immediate preceding quarter's results (Q3 FY2026 vs Q2 FY2026)
| INDIVIDUAL QUARTER | ||||
|---|---|---|---|---|
| CURRENT QUARTER 31.03.2026 RM'000 | PRECEDING QUARTER 31.12.2025 RM'000 | VARIANCE | ||
| RM'000 | % | |||
| Revenue | 43,380 | 47,238 | (3,858) | (8.17) |
| Gross profit | 18,868 | 21,419 | (2,551) | (11.91) |
| PBT | 7,434 | 11,577 | (4,143) | (35.79) |
| PAT | 5,777 | 8,672 | (2,895) | (33.38) |
For Q3 FY2026, the Group recorded revenue of RM43.38 million representing a decrease of RM3.86 million or 8.17% as compared to RM47.24 million in Q2 FY2026. The lower revenue was primarily due to reduced sales volume during the quarter, mainly impacted by prolonged business closures during the Chinese New Year and Hari Raya festive periods. Delays in the commencement of construction and renovation projects during these holiday periods also contributed to the decline.
Correspondingly, gross profit decreased by RM2.55 million or 11.91% to RM18.87 million as compared to RM21.42 million in Q2 FY2026. This reflects the lower revenue and a slight compression in gross profit margin arising from a shift in sales mix, with a higher proportion of lower-margin products and project-based sales.
The Group's PBT decreased by RM4.14 million or 35.79% to RM7.43 million, mainly attributable to the lower gross profit and higher operating expenses incurred during the quarter. Consequently, PAT declined by RM2.90 million or 33.38% to RM5.78 million.
B3. Prospects
In 2026, Malaysia's economy is projected to expand between 4% and 4.5%, supported by resilient domestic demand and a steady external sector. Growth will be anchored by private consumption, boosted by the implementation of the salary adjustment under Phase 2 of the Public Service Remuneration System, continuation of targeted assistance programmes and robust tourism activities in conjunction with Visit Malaysia 2026. In addition, strong investment performance will be supported by higher capital expenditures, particularly in high-impact strategic sectors. The services and manufacturing will remain key drivers of growth, complemented by sustained construction and agriculture sectors.
The construction sector is expected to remain stable in 2026 by recording a growth of 6.1%, underpinned by positive performance across all subsectors. The residential buildings subsector is expected to benefit from government-led affordable housing programmes and targeted home ownership initiatives supported by policy measures under the Thirteenth Plan as well as new projects by private sectors.
(Source: Economic Outlook 2026, Ministry of Finance)
13
SORENTO CAPITAL BERHAD
(Registration No.: 202301018305 (1512227-W))
(Incorporated in Malaysia under the Companies Act 2016)
B. EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF THE LISTING REQUIREMENTS (CONT'D)
B3. Prospects (Cont'd)
On the other hand, developments in the Middle East have added another layer of uncertainty with potentially far-reaching spillovers, given implications on commodity prices and financial market conditions. The extent of impact on growth and inflation is highly contingent on the duration, intensity and severity of the conflict.
(Source: Annual report 2025, Bank Negara Malaysia)
Against the external backdrop, the Group is expanding its presence in the hardware retail segment through its "Sorento Lite" product range which is distributed via hardware stores and targets the large and relatively underpenetrated replacement market for plumbing and fitting products. This initiative enables the Group to broaden its distribution reach beyond its traditional dealer network.
Looking ahead, the Group will continue to focus on enhancing its product offerings, maintaining cost discipline, and capitalising on market opportunities to sustain its competitive advantages and deliver long-term value to shareholders.
B4. Profit forecast
The Group did not issue any profit forecast or guarantee during current financial quarter under review.
B5. Taxation
| INDIVIDUAL QUARTER | CUMULATIVE QUARTER | |||
|---|---|---|---|---|
| Unaudited 31.03.2026 RM'000 | Unaudited 31.03.2025 RM'000 | Unaudited 31.03.2026 RM'000 | Unaudited 31.03.2025 RM'000 | |
| Current period income tax | 1,657 | 1,777 | 7,240 | 6,833 |
| Total | 1,657 | 1,777 | 7,240 | 6,833 |
| Effective tax rate (%)^{(1)} | 22.29 | 21.96 | 24.36 | 27.14 |
Note:
(1) The effective tax rate for the current year-to-date period ended 31 March 2026 was slightly higher than the statutory tax rate of 24% mainly due to expenses including, amongst others, depreciation and amortisation, which are not deductible for tax purposes.
14
SORENTO CAPITAL BERHAD
(Registration No.: 202301018305 (1512227-W))
(Incorporated in Malaysia under the Companies Act 2016)
B. EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF THE LISTING REQUIREMENTS (CONT'D)
B6. Status of corporate proposals
Save as disclosed below, there are no other corporate proposals announced but not yet completed as at the date of this interim financial report:
(i) On 19 March 2026, the Company announced its intention to undertake the proposed transfer of the listing of and quotation for its entire issued share capital from the ACE Market to the Main Market of Bursa Malaysia Securities Berhad ("Proposed Transfer").
The application for the Proposed Transfer was submitted to the Securities Commission Malaysia on 30 March 2026.
B7. Utilisation of proceeds raised from the public issue
The status of the utilisation of proceeds from the IPO as at 31 March 2026 is set out below:
| DETAILS OF THE USE OF PROCEEDS | PROPOSED UTILISATION | ACTUAL UTILISATION RM'000 | BALANCE UNUTILISED RM'000 | ESTIMATED TIMEFRAME FOR UTILISATION FROM THE DATE OF LISTING | |
|---|---|---|---|---|---|
| RM'000 | % | ||||
| Branding and promotional marketing | 6,000 | 10.46 | 3,032 | 2,968 | Within 36 months |
| Expansion of dealer network and enhancement of distribution reach | 6,000 | 10.46 | 3,279 | 2,721 | Within 36 months |
| Repayment of bank borrowings | 9,000 | 15.69 | 9,000 | - | Within 12 months |
| Working capital for purchase of inventories | 31,350 | 54.67 | 31,350 | - | Within 24 months |
| Listing expenses | 5,000 | 8.72 | 5,000 | - | Within one month |
| Total | 57,350 | 100.00 | 51,661 | 5,689 |
The utilisation of the proceeds as disclosed above should be read in conjunction with the Prospectus of the Company dated 7 October 2024 in relation to its IPO.
15
SORENTO CAPITAL BERHAD
(Registration No.: 202301018305 (1512227-W))
(Incorporated in Malaysia under the Companies Act 2016)
B. EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF THE LISTING REQUIREMENTS (CONT'D)
B8. Loans and borrowings
The Group's loans and borrowings are as follows:
| | Unaudited
31.03.2026
RM'000 | Audited
30.06.2025
RM'000 |
| --- | --- | --- |
| Non-current liabilities | | |
| Secured | | |
| Term loans | 582 | 262 |
| Lease liabilities (1) | 1,874 | 2,477 |
| | 2,456 | 2,739 |
| Current liabilities | | |
| Secured | | |
| Bankers' acceptance | - | 2,444 |
| Term loans | 15 | 7 |
| Lease liabilities (1) | 798 | 763 |
| | 813 | 3,214 |
| | 3,269 | 5,953 |
The loans and borrowings are secured by way of corporate guarantee by the Company and a subsidiary.
The loans and borrowings and other facilities are denoted in local currency.
Note:
(1) Refer to finance lease liabilities under hire purchase contracts owing to financial institution.
B9. Material litigation
As at the date of this report, the Group is not engaged in any material litigation.
B10. Proposed dividend
On 21 May 2026, the Board has declared and approved an interim single-tier dividend of 0.25 sen per ordinary share in respect of the financial year ending 30 June 2026, to be paid on 26 June 2026 to shareholders whose name appeared on the Record of Depositors of the Company on 12 June 2026.
16
SORENTO CAPITAL BERHAD
(Registration No.: 202301018305 (1512227-W))
(Incorporated in Malaysia under the Companies Act 2016)
B. EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF THE LISTING REQUIREMENTS (CONT'D)
B11. Basic and diluted earnings per share
| INDIVIDUAL QUARTER | CUMULATIVE QUARTER | |||
|---|---|---|---|---|
| Unaudited 31.03.2026 RM'000 | Unaudited 31.03.2025 RM'000 | Unaudited 31.03.2026 RM'000 | Unaudited 31.03.2025 RM'000 | |
| Profit attributable to owners of the Company (RM'000) | 5,777 | 6,314 | 22,483 | 18,340 |
| Number of shares in issue ('000) | 860,000 | 666,606 | 860,000 | 666,606 |
| Basic earnings per share (sen)(1) | 0.67 | 0.95 | 2.61 | 2.75 |
| Diluted earnings per share (sen)(2) | 0.67 | 0.95 | 2.61 | 2.75 |
Notes:
(1) The basic earnings per share for the current financial quarter and financial year-to-date period ended 31 March 2026 is computed based on the respective profit attributable to owners of the Company for each period divided by the number of ordinary shares in issue of 860,000,000. For the corresponding quarter and year-to-date period ended 31 March 2025, they are calculated based on the weighted average number of ordinary shares in issue of 666,606,018 as at the end of the financial period.
(2) The diluted earnings per share of the Company is equivalent to the basic earnings per share as the Company does not have convertible securities at the end of the reporting period.
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17
SORENTO CAPITAL BERHAD
(Registration No.: 202301018305 (1512227-W))
(Incorporated in Malaysia under the Companies Act 2016)
B. EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF THE LISTING REQUIREMENTS (CONT'D)
B12. Notes to the unaudited condensed consolidated statement of profit or loss and other comprehensive income
| | INDIVIDUAL QUARTER
Unaudited
31.03.2026
RM'000 | QUARTER
Unaudited
31.03.2025
RM'000 | CUMULATIVE QUARTER
Unaudited
31.03.2026
RM'000 | QUARTER
Unaudited
31.03.2025
RM'000 |
| --- | --- | --- | --- | --- |
| The following amounts have been included in arriving at profit before tax: | | | | |
| Depreciation of property, plant and equipment | 1,176 | 1,154 | 3,511 | 3,357 |
| Depreciation of investment properties | 5 | 2 | 7 | 8 |
| Amortisation of intangible asset | 87 | 72 | 230 | 215 |
| Property, plant and equipment written off | - | - | * | - |
| Fair value loss on other investment | - | - | 8 | - |
| Loss on early termination of lease contracts | - | - | 2 | - |
| Short-term leases | (44) | 122 | 535 | 780 |
| and after crediting: | | | | |
| Dividend income | 201 | - | 500 | - |
| Gain on disposal of property, plant and equipment | - | - | * | 11 |
| Gain on disposal of investment properties | - | - | 3 | 30 |
| Interest income | | | | |
| - Fixed deposits with licensed banks | - | 13 | 351 | 40 |
| - Cash and cash equivalents | 267 | 19 | 559 | 34 |
| Realised gain on foreign exchange | 57 | 145 | 275 | 407 |
| Reversal of ECLs on trade receivables | - | * | * | 9 |
| Fair value gain on other investment | * | - | - | - |
| Unrealised gain on foreign exchange | 141 | 24 | 159 | 18 |
Note:
- Amount less than RM1,000.
By Order of the Board
Date: 21 May 2026