WILLOWGLEN MSC BERHAD — Interim / Quarterly Report 2026

May 19, 2026

WILLOWGLEN MSC BERHAD (Registration No. 199801006521 (462648-V))

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

For the period ended 31 March 2026

| | 3 months ended
31 March | | 3 months ended
31 March | |
| --- | --- | --- | --- | --- |
| | Unaudited
2026
RM'000 | Unaudited
2025
RM'000 | Unaudited
2026
RM'000 | Unaudited
2025
RM'000 |
| Revenue | 77,847 | 40,383 | 77,847 | 40,383 |
| Cost of sales | (60,753) | (27,403) | (60,753) | (27,403) |
| Gross profit | 17,094 | 12,980 | 17,094 | 12,980 |
| Other income | 126 | 255 | 126 | 255 |
| Administrative expenses | (8,825) | (8,902) | (8,825) | (8,902) |
| Operating profit | 8,395 | 4,333 | 8,395 | 4,333 |
| Finance cost | (65) | (95) | (65) | (95) |
| Share of results of associates, net of tax | - | - | - | - |
| Profit before tax | 8,330 | 4,238 | 8,330 | 4,238 |
| Income tax expense | (2,154) | (1,217) | (2,154) | (1,217) |
| Profit for the financial period | 6,176 | 3,021 | 6,176 | 3,021 |
| Other comprehensive income,
net of tax: | | | | |
| Exchange differences on translation of
foreign operations | (641) | 756 | (641) | 756 |
| Total comprehensive income
for the period | 5,535 | 3,777 | 5,535 | 3,777 |
| Profit attributable to: | | | | |
| - Owners of the Company | 6,176 | 3,021 | 6,176 | 3,021 |
| Total comprehensive income attributable to: | | | | |
| - Owners of the Company | 5,535 | 3,777 | 5,535 | 3,777 |
| Earnings per ordinary share (sen): | | | | |
| - Basic | 1.27 | 0.62 | 1.27 | 0.62 |
| - Diluted | 1.27 | 0.62 | 1.27 | 0.62 |

The condensed consolidated income statements should be read in conjunction with the audited financial statements for the year ended 31 December 2025 and the accompanying explanatory notes attached to the interim financial statements.

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2

WILLOWGLEN MSC BERHAD (Registration No. 199801006521 (462648-V))

As at 31 March 2026

CONDENSED STATEMENTS OF FINANCIAL POSITION

| | Unaudited
31 March 2026
RM'000 | Audited
31 December 2025
RM'000 |
| --- | --- | --- |
| ASSETS | | |
| Non-current assets | | |
| Property, plant and equipment | 6,837 | 6,612 |
| Right-of-use assets | 10,356 | 10,811 |
| Intangible assets | 3,209 | 3,395 |
| Investment in associates | 178 | 178 |
| Other investments | 2,757 | 2,757 |
| | 23,337 | 23,753 |
| Current assets | | |
| Inventories | 6,543 | 6,987 |
| Trade and other receivables | 60,143 | 37,291 |
| Contract assets | 65,190 | 102,472 |
| Prepayment | 1,114 | 1,501 |
| Tax recoverable | 103 | 89 |
| Deposits, cash and bank balances | 92,063 | 41,476 |
| | 225,156 | 189,816 |
| TOTAL ASSETS | 248,493 | 213,569 |
| EQUITY & LIABILITIES | | |
| Equity and reserves | | |
| Share capital | 29,240 | 29,240 |
| Treasury shares, at cost | (2,442) | (2,442) |
| Reserves | 145,050 | 139,515 |
| Total equity attributable to owners of the Company | 171,848 | 166,313 |
| Non-current liabilities | | |
| Loans and borrowings | 5,934 | 6,351 |
| Provision for reinstatement cost | 784 | 789 |
| | 6,718 | 7,140 |
| Current liabilities | | |
| Loans and borrowings | 1,670 | 1,680 |
| Contract liabilities | 2,902 | 6,449 |
| Provisions | 1,035 | 2,683 |
| Trade and other payables | 58,775 | 25,063 |
| Tax payable | 5,545 | 4,241 |
| | 69,927 | 40,116 |
| Total liabilities | 76,645 | 47,256 |
| TOTAL EQUITY AND LIABILITIES | 248,493 | 213,569 |
| Net assets per share (RM) | 0.35 | 0.34 |
| Number of ordinary shares in issue ('000) | 484,736 | 484,736 |

The condensed consolidated balance sheet should be read in conjunction with the audited financial statements for the year ended 31 December 2025 and the accompanying explanatory notes attached to the interim financial statements.

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3

WILLOWGLEN MSC BERHAD (Registration No. 199801006521 (462648-V))

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the period ended 31 March 2026

| | Share Capital
RM'000 | Treasury Shares
RM'000 | Merger deficit
RM'000 | Translation reserve
RM'000 | Retained profits
RM'000 | Total
RM'000 |
| --- | --- | --- | --- | --- | --- | --- |
| At 1 January 2026 | 29,240 | (2,442) | (7,585) | 16,119 | 130,981 | 166,313 |
| Total comprehensive income | - | - | - | (641) | 6,176 | 5,535 |
| At 31 March 2026 | 29,240 | (2,442) | (7,585) | 15,478 | 137,157 | 171,848 |
| At 1 January 2025 | 29,240 | (2,442) | (7,585) | 22,244 | 133,707 | 175,164 |
| Total comprehensive income | - | - | - | 756 | 3,021 | 3,777 |
| At 31 March 2025 | 29,240 | (2,442) | (7,585) | 23,000 | 136,728 | 178,941 |

The condensed consolidated statement of changes in equity should be read in conjunction with the audited financial statements for the year ended 31 December 2025 and the accompanying explanatory notes attached to the interim financial statements.

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WILLOWGLEN MSC BERHAD (Registration No. 199801006521 (462648-V))

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the period ended 31 March 2026

| | Unaudited
31 March 2026
RM'000 | Unaudited
31 March 2025
RM'000 |
| --- | --- | --- |
| Operating activities | | |
| Profit before tax | 8,330 | 4,238 |
| Adjustments for non-cash items | 942 | 870 |
| Operating profit before changes in working capital | 9,272 | 5,108 |
| Changes in working capital: | | |
| Net changes in inventories | 444 | 149 |
| Net changes in contract customers | 33,735 | 6,645 |
| Net changes in trade and other receivables | (22,464) | 10,385 |
| Net changes in trade and other payables | 32,061 | (7,678) |
| Cash flows from operations | 53,048 | 14,609 |
| Interest received | 43 | 81 |
| Interest paid | (65) | (95) |
| Income tax paid | (864) | (822) |
| Net cash flows from operations | 52,162 | 13,773 |
| Cash flows used in investing activities | | |
| Purchase of property, plant and equipment | (572) | (120) |
| Changes in pledged deposits | (25) | (26) |
| Development cost of intangible assets | - | (210) |
| Net cash flows used in investing activities | (597) | (356) |
| Cash flows used in financing activities | | |
| Repayment of lease liability | (427) | (357) |
| Drawdown of borrowings | - | 1,440 |
| Net cash flows from / (used in) financing activities | (427) | 1,083 |
| Net changes in cash and cash equivalents | 51,138 | 14,500 |
| Cash and cash equivalents at 1 January | 38,870 | 47,822 |
| Effect of exchange rate changes | (576) | 722 |
| Cash and cash equivalents at 31 March | 89,432 | 63,044 |
| Analysis of cash and cash equivalents: | | |
| Fixed deposits placed with licensed banks | 18,319 | 9,198 |
| Short term investments | 37 | 36 |
| Cash and bank balances | 73,707 | 56,391 |
| | 92,063 | 65,625 |
| Less: Pledged deposits | (2,631) | (2,581) |
| | 89,432 | 63,044 |

The condensed consolidated cash flow statement should be read in conjunction with the audited financial statements for the year ended 31 December 2025 and the accompanying explanatory notes attached to the interim financial statements.

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5

WILLOWGLEN MSC BERHAD (Registration No. 199801006521 (462648-V))

NOTES TO THE INTERIM FINANCIAL REPORT

A1 Basis of preparation

The interim financial report is unaudited and has been prepared in compliance with the Malaysian Financial Reporting Standards (“MFRS”) 134: Interim Financial Reporting and paragraph 9.22 of the Listing Requirements of Bursa Malaysia Securities Berhad. The interim financial statements should be read in conjunction with the audited financial statements of the Group for the year ended 31 December 2025.

The accounting policies and methods of computation adopted by the Group in this interim financial report are consistent with those adopted in the audited financial statements for the year ended 31 December 2025 except for the adoption of the amendments to MFRSs that are applicable to the Group effective 1 January 2026. The adoption of these MFRSs does not have any material impact on the Group’s results and financial position.

A2 Audit report on preceding annual financial statement

The auditor’s report of the Group’s annual audited financial statements for the year ended 31 December 2025 was not subject to any qualification.

A3 Seasonal or cyclical factors

The Group’s operations were not materially affected by any seasonal or cyclical changes.

A4 Changes in estimates of amounts reported in prior interim reports or prior financial years which have a material effect in the current quarter

There were no changes in estimates of amounts reported in the prior interim reports or changes in estimates of amounts reported in prior financial years that have a material effect in the current quarter.

A5 Issuance, cancellations, repurchases, resale and repayments of debt and equity securities

There were no issuance, cancellations, repurchases, resale and repayments of debt and equity securities during the current quarter.

As at the end of the current quarter, a total of 11,263,600 shares were held as treasury shares.

A6 Dividends paid

No dividend was paid during the current quarter.

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WILLOWGLEN MSC BERHAD (Registration No. 199801006521 (462648-V))

A7 Segmental reporting

The Group operates in two (2) principal geographical areas for the sales, implementation and maintenance of computer based control systems.

| Current Year To Date | Malaysia
RM'000 | Singapore
RM'000 | Others
RM'000 | Adjustments & Eliminations
RM'000 | Consolidated
RM'000 |
| --- | --- | --- | --- | --- | --- |
| Revenue: | | | | | |
| External customers | 2,001 | 75,846 | - | - | 77,847 |
| Inter-segment | 453 | - | - | (453) | - |
| Total revenue | 2,454 | 75,846 | - | (453) | 77,847 |
| Results: | | | | | |
| Interest income | 24 | 19 | - | - | 43 |
| Interest expense | (2) | (63) | - | - | (65) |
| Depreciation | (180) | (557) | - | - | (737) |
| Income tax expense | - | (2,154) | - | - | (2,154) |
| Share of results of associate | - | - | - | - | - |
| Segment profit/(loss) | (4,658) | 12,988 | - | - | 8,330 |

A8 Valuation of property, plant and equipment

No revaluation of property, plant and equipment has been performed since the preceding financial year ended 31 December 2025.

A9 Material events subsequent to the end of the interim period

There were no material events subsequent to the end of the interim period.

A10 Changes in composition of the Group

There were no changes in the composition of the Group during the current quarter.

A11 Changes in contingent liabilities or contingent assets

There were no contingent liabilities or contingent assets arising since the last audited financial statements for the year ended 31 December 2025.

A12 Capital commitments

There were no material capital commitments as at 31 March 2026.

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7

WILLOWGLEN MSC BERHAD (Registration No. 199801006521 (462648-V))

ADDITIONAL INFORMATION REQUIRED BY BURSA MALAYSIA'S LISTING REQUIREMENTS

B1 Review of performance

Revenue for the current quarter increased by 92.77% to RM77.85 million from RM40.38 million recorded in the corresponding quarter of 2025. Profit before tax increased to RM8.33 million from RM4.24 million recorded in the corresponding quarter of previous financial year. The increase in profit before tax was mainly attributable to the higher revenue recorded during the quarter.

The Group’s principal markets continue to be Malaysia and Singapore. Revenue from Singapore operations increased by 139.60% compared to corresponding quarter of previous financial year, while revenue from Malaysia operations decreased by 77.07% due to a depleting order book and competitive business environment in Malaysia.

B2 Material change in results against preceding quarter

| | Current Quarter
31/03/2026
RM’000 | Preceding Quarter
31/12/2025
RM’000 |
| --- | --- | --- |
| Revenue | 77,847 | 48,921 |
| Profit before tax | 8,330 | 541 |

For the current quarter, the Group recorded higher revenue of RM77.85 million compared to RM48.92 million in the preceding quarter. The profit before tax increased to RM8.33 million from RM0.54 million recorded in the previous quarter mainly due to higher revenue, improved margins and lower overheads.

B3 Current year prospects

The Group will continue to pursue growth opportunities in its core markets and focus on improving operational efficiency and disciplined project execution despite a competitive operating environment and persistent cost pressures. The Group’s financial performance is expected to improve, supported by its current order book and ongoing tender activities in both Malaysia and Singapore.

B4 Progress and steps to achieve financial estimate, forecast, projection and internal targets previously announced

There was no financial forecast previously announced by the Group.

B5 Statement of the Board of Directors’ opinion on achievability of financial estimate, forecast, projection and internal targets previously announced

Not applicable.

B6 Variance of actual profit from financial estimate, forecast profit or shortfall of profit guarantee

Not applicable.

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WILLOWGLEN MSC BERHAD (Registration No. 199801006521 (462648-V))

B7 Income tax expense

| | 3 months ended
31/03/2026
RM’000 | 3 months ended
31/03/2026
RM’000 |
| --- | --- | --- |
| Current Taxation | 2,154 | 2,154 |
| Adjustment for under/(over) provisions in previous years | - | - |
| Transfer to/(from) deferred taxation | - | - |
| | 2,154 | 2,154 |

B8 Status of corporate proposal announced

There were no corporate proposals announced but not completed at the date of this announcement, except that the Company had on 1 April 2026 entered into the following:

(i) a conditional share purchase agreement with Elixir II Pte Ltd (“Elixir II”) for the proposed disposal of its 25% equity interest in Willowglen (Malaysia) Sdn Bhd (“WMSB”) for a cash consideration of RM10.00 million;

(ii) a conditional call and put option agreement with Elixir II for the grant of a call option by the Company to Elixir II to require the Company to sell the remaining 75% equity interest in WMSB and a put option by Elixir II to the Company to require Elixir II to acquire the remaining 75% equity interest in WMSB, both at an exercise price of RM30.00 million to be satisfied entirely in cash;

(iii) a conditional share purchase agreement with Elixir I Pte Ltd and Elixir II for the proposed disposal of its 100% equity interest in Willowglen Services Pte Ltd for a consideration of RM175.20 million to be satisfied via a combination of cash of RM72.00 million and issuance of new ordinary shares in Elixir II of RM103.20 million;

(iv) proposed provision of financial assistance to Elixir II, which will be an associated company of the Company upon completion of the proposed disposals; and

(v) proposed change of name of the Company to Willownex Berhad, pursuant to the post-closing obligation.

B9 Loans and borrowings

| | 31/03/2026
RM’000 | 31/03/2025
RM’000 |
| --- | --- | --- |
| Non-current | | |
| Lease liabilities | 5,934 | 1,457 |
| Current | | |
| Lease liabilities | 1,670 | 2,607 |
| Revolving credit | - | 7,000 |
| | 7,604 | 11,064 |

B10 Changes in Material Litigation

The Group does not have any outstanding material litigation as at the date of this announcement.

B11 Proposed Dividend

A final single-tier dividend of 1.50 sen per ordinary share has been proposed for the financial year ended 31 December 2025. The entitlement and payment date for the dividend are on 30 April 2026 and 20 May 2026, respectively.

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WILLOWGLEN MSC BERHAD (Registration No. 199801006521 (462648-V))

B12 Basic earnings per ordinary share

The calculation of basic earnings per ordinary share is based on the net profit attributable to shareholders divided by the weighted average number of ordinary shares outstanding during the period, calculated as follows:

| | 3 months ended
31 March | | 3 months ended
31 March | |
| --- | --- | --- | --- | --- |
| | 2026 | 2025 | 2026 | 2025 |
| Net profit attributable to equity holders of the Company (RM'000) | 6,176 | 3,021 | 6,176 | 3,021 |
| Weighted average number of ordinary shares in issue during the period ('000) | 484,736 | 484,736 | 484,736 | 484,736 |
| Basic earnings per ordinary share (sen) | 1.27 | 0.62 | 1.27 | 0.62 |
| Diluted earnings per ordinary share (sen) | 1.27 | 0.62 | 1.27 | 0.62 |

The Group does not have in issue any financial instrument or other contract that may entitle its shareholders to ordinary shares, and therefore dilute its basic earnings per share.

B13 Operating profit

| | 3 months ended
31/03/2026
RM'000 | 3 months ended
31/03/2026
RM'000 |
| --- | --- | --- |
| Operating profit has been arrived at after charging: | | |
| Depreciation of property, plant and equipment | 336 | 336 |
| Depreciation of right-of-use assets | 401 | 401 |
| Amortisation of development cost | 185 | 185 |
| Provision for and write off of inventories | - | - |
| Foreign exchange loss | 143 | 143 |
| Loss on disposal of quoted or unquoted investments or properties | - | - |
| Interest expense | 65 | 65 |
| Exceptional items | N/A | N/A |
| And crediting: | | |
| Interest income | 43 | 43 |
| Government grants | 66 | 66 |
| Other income including investment income | - | - |
| Gain on disposal of quoted or unquoted investments or properties | - | - |
| Gain on fair value adjustment on investment property | N/A | N/A |
| Gain or loss on derivatives | N/A | N/A |