DKLS INDUSTRIES BERHAD 199501040269 (369472 - P)

(Incorporated in Malaysia)

Condensed Consolidated Statement of Comprehensive Income

For the quarter and 3 months ended 31 March 2026 - unaudited

| | Note | Current Quarter
3 months ended
31 March | | Cumulative Quarter
3 months ended
31 March | |
| --- | --- | --- | --- | --- | --- |
| | | 2026 | 2025 | 2026 | 2025 |
| | | RM | RM | RM | RM |
| Revenue | | 36,084,260 | 33,646,588 | 36,084,260 | 33,646,588 |
| Interest income | | 246,111 | 308,053 | 246,111 | 308,053 |
| Other income | | 1,534,117 | 1,047,042 | 1,534,117 | 1,047,042 |
| Operating expenses | | (25,377,734) | (23,664,596) | (25,377,734) | (23,664,596) |
| Changes in work-in-progress and finished goods | | 495,883 | 140,226 | 495,883 | 140,226 |
| Employee benefit expenses | | (4,536,643) | (4,347,501) | (4,536,643) | (4,347,501) |
| Administrative expenses | | (3,782,235) | (2,936,053) | (3,782,235) | (2,936,053) |
| Profit from operating activities | A8 | 4,663,759 | 4,193,759 | 4,663,759 | 4,193,759 |
| Interest expense | | (737,255) | (284,514) | (737,255) | (284,514) |
| Net monetary loss | | - | (499) | - | (499) |
| Profit before tax | | 3,926,504 | 3,908,746 | 3,926,504 | 3,908,746 |
| Income tax expense | | (889,394) | (1,057,594) | (889,394) | (1,057,594) |
| Profit for the period, net of tax | | 3,037,110 | 2,851,152 | 3,037,110 | 2,851,152 |
| Other comprehensive income, net of tax | | | | | |
| Items that will be reclassified to profit or loss in the future: | | | | | |
| Foreign currency translation differences for foreign operations | | (809,799) | (34,235) | (809,799) | (34,235) |
| Hyperinflationary adjustments | | - | (15,642) | - | (15,642) |
| Other comprehensive income for the period, net of tax | | (809,799) | (49,877) | (809,799) | (49,877) |
| Total comprehensive income for the period | | 2,227,311 | 2,801,275 | 2,227,311 | 2,801,275 |
| Profit for the period attributable to: | | | | | |
| Owners of the Company | | 2,991,179 | 2,719,134 | 2,991,179 | 2,719,134 |
| Non-controlling interests | | 45,931 | 132,018 | 45,931 | 132,018 |
| Profit for the period | | 3,037,110 | 2,851,152 | 3,037,110 | 2,851,152 |
| Total comprehensive income attributable to: | | | | | |
| Owners of the Company | | 2,378,160 | 2,681,988 | 2,378,160 | 2,681,988 |
| Non-controlling interests | | (150,849) | 119,287 | (150,849) | 119,287 |
| Total comprehensive income for the period | | 2,227,311 | 2,801,275 | 2,227,311 | 2,801,275 |
| Basic/Diluted, earnings per ordinary share (sen) | | 3.23 | 2.93 | 3.23 | 2.93 |

The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the audited Financial Statements for the year ended 31 December 2025 and the accompanying notes attached to the Interim Financial Statements.

DKLS INDUSTRIES BERHAD 199501040269 (369472 - P)

(Incorporated in Malaysia)

Condensed Consolidated Statement of Financial Position

As at 31 March 2026 - unaudited

| | 31 March 2026
RM | 31 December 2025
RM
(Audited) |
| --- | --- | --- |
| ASSETS | | |
| Non-Current Assets | | |
| Property, plant and equipment | 60,890,411 | 62,463,901 |
| Right-of-use assets | 397,151 | 424,583 |
| Inventories | 94,845,293 | 94,669,036 |
| Investment properties | 125,300,000 | 125,435,235 |
| Long term investments | 22,480 | 19,867 |
| Trade and other receivables | 700,049 | 686,070 |
| Deferred tax assets | 11,637,909 | 11,085,722 |
| Total non-current assets | 293,793,293 | 294,784,414 |
| Current Assets | | |
| Inventories | 70,887,280 | 61,150,764 |
| Trade and other receivables | 45,698,906 | 52,197,199 |
| Other assets | 4,073,943 | 4,391,957 |
| Short term investments | 124,164,048 | 118,926,250 |
| Tax recoverable | 889,512 | 764,038 |
| Cash and bank balances | 40,398,513 | 38,575,879 |
| Total current assets | 286,112,202 | 276,006,087 |
| TOTAL ASSETS | 579,905,495 | 570,790,501 |
| EQUITY AND LIABILITIES | | |
| Equity | | |
| Share capital | 101,883,643 | 101,883,643 |
| Retained profits | 403,467,515 | 400,525,370 |
| Reserves | (17,524,530) | (16,960,545) |
| Equity attributable to owners of the Company | 487,826,628 | 485,448,468 |
| Non-controlling interests | 6,423,357 | 6,574,206 |
| Total equity | 494,249,985 | 492,022,674 |
| Non-Current Liabilities | | |
| Loans and borrowings | 15,655,951 | 16,939,520 |
| Other payables | 410,670 | 289,951 |
| Deferred tax liabilities | 6,184,963 | 6,357,242 |
| Total non-current liabilities | 22,251,584 | 23,586,713 |
| Current Liabilities | | |
| Loans and borrowings | 21,737,339 | 15,801,119 |
| Trade and other payables | 27,891,058 | 25,902,365 |
| Other current liabilities | 11,535,047 | 10,122,653 |
| Tax payable | 2,240,482 | 3,354,977 |
| Total current liabilities | 63,403,926 | 55,181,114 |
| Total liabilities | 85,655,510 | 78,767,827 |
| TOTAL EQUITY AND LIABILITIES | 579,905,495 | 570,790,501 |
| Net assets per share attributable to owners of the Company (RM) | 5.26 | 5.24 |

The Condensed Consolidated Statement of Financial Position should be read in conjunction with the audited Financial Statements for the year ended 31 December 2025 and the accompanying notes attached to the Interim Financial Statements.

DKLS INDUSTRIES BERHAD 199501040269 (369472 - P)
(Incorporated in Malaysia)

Condensed Consolidated Statement of Changes in Equity
For the 3 months ended 31 March 2026 - unaudited

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 notes attached to the Interim Financial Statements.

DKLS INDUSTRIES BERHAD 199501040269 (369472 - P)

(Incorporated in Malaysia)

Condensed Consolidated Statement of Cash Flows

For the 3 months ended 31 March 2026 - unaudited

| | 3 months ended
31 March | |
| --- | --- | --- |
| | 2026
RM | 2025
RM |
| CASH FLOWS FROM OPERATING ACTIVITIES | | |
| Profit before tax | 3,926,504 | 3,908,746 |
| Adjustments for :- | | |
| Depreciation | 1,195,707 | 1,237,810 |
| Dividend income from short term investments | (207,394) | (107,708) |
| Fair value gain on long/short term investments | (762,018) | (640,994) |
| Gain on disposal of investment property | (265) | - |
| Interest expense | 737,255 | 284,514 |
| Interest income | (246,111) | (308,053) |
| Property, plant and equipment written off | - | 1,283 |
| Allowance for impairment loss on trade and other receivables | 733,978 | 341,636 |
| Unrealised gain on foreign exchange | 24,391 | 52,206 |
| Net monetary loss | - | 2,208 |
| Operating cash flows before changes in working capital | 5,402,047 | 4,771,648 |
| Changes in working capital:- | | |
| Net changes in current assets | (3,740,693) | (2,699,545) |
| Net changes in current liabilities | 9,627,628 | (2,081,929) |
| Cash flows from/(used in) operations | 11,288,982 | (9,826) |
| Interest paid | (129,122) | (1,914) |
| Interest received | 154,622 | 227,861 |
| Taxes paid | (2,791,440) | (2,576,571) |
| Net cash flows from/(used in) operating activities | 8,523,042 | (2,360,450) |
| CASH FLOWS FROM INVESTING ACTIVITIES | | |
| Dividend received from short term investments | 207,394 | 107,708 |
| Interest received | 99,342 | 41,469 |
| Inventories | (127,849) | (217,180) |
| Placement of deposits with maturity period more than 3 months | (97,238) | (554,196) |
| Proceeds from disposal of: | | |
| - investment properties | 135,500 | - |
| - short term investments | 10,040,000 | 13,650,000 |
| Purchase of: | | |
| - property, plant and equipment | (293,379) | (272,091) |
| - short term investments | (14,518,393) | (18,761,858) |
| Net cash flows used in investing activities | (4,554,623) | (6,006,148) |

5

DKLS INDUSTRIES BERHAD 199501040269 (369472 - P)

(Incorporated in Malaysia)

Condensed Consolidated Statement of Cash Flows (cont'd.)

For the 3 months ended 31 March 2026 - unaudited

| | 3 months ended
31 March | |
| --- | --- | --- |
| | 2026 | 2025 |
| | RM | RM |
| CASH FLOWS FROM FINANCING ACTIVITIES | | |
| Interest paid | (701,154) | (254,531) |
| Proceeds from issuance of shares to non-controlling interest | - | 60,000 |
| Repayment of hire purchase liabilities | (71,549) | (231,104) |
| Repayment of principal portion of lease liability | (25,011) | (23,728) |
| Repayment of term loan | (1,250,001) | (1,250,001) |
| Net cash flows used in financing activities | (2,047,715) | (1,699,364) |
| Net increase/(decrease) in cash and cash equivalents | 1,920,704 | (10,065,962) |
| Effects of exchange rate differences | (64,685) | (7,771) |
| Cash and cash equivalents at beginning of the period | 32,408,409 | 47,393,971 |
| Cash and cash equivalents at end of the period | 34,264,428 | 37,320,238 |
| Cash and cash equivalents included in the condensed consolidated statement of cash flows comprise: | | |
| Cash and bank balances | 20,305,412 | 22,478,040 |
| Deposits with licensed banks | 20,093,101 | 20,730,523 |
| Bank overdrafts | - | (100,580) |
| | 40,398,513 | 43,107,983 |
| Less: | | |
| Deposits with maturity period more than 3 months | (6,134,085) | (5,787,745) |
| | 34,264,428 | 37,320,238 |

The Condensed Consolidated Statement of Cash Flows should be read in conjunction with the audited Financial Statements for the year ended 31 December 2025 and the accompanying notes attached to the Interim Financial Statements.

DKLS INDUSTRIES BERHAD 199501040269 (369472-P)
(Incorporated in Malaysia)

A. Notes to the Interim Financial Statements

A1. Basis of Preparation

These interim financial statements are unaudited and have been prepared in accordance with the requirements of MFRS 134: Interim Financial Reporting and paragraph 9.22 of the Listing Requirements of the Bursa Malaysia Securities Berhad ("BMSB").

The interim financial statements should be read in conjunction with the audited financial statements for the financial year ended 31 December 2025. The explanatory notes attached to the interim financial statements provide an explanation of events and transactions that are significant to an understanding of the changes in the financial position and performance of the Group since the year ended 31 December 2025.

A2. Significant Accounting Policies

The significant accounting policies and presentation adopted by the Group in these interim financial statements are consistent with those of the Group's consolidated financial statements for the year ended 31 December 2025 except as follows:

On 1 January 2026, the Group adopted the following amended MFRSs, if applicable, mandatory for annual financial period beginning on or after the following dates.

Adoption of the above amendments did not have any effect on the financial performance or position of the Group.

A3. Seasonal or Cyclical Factors

The business operations of the Group were not affected by any significant seasonal or cyclical factors.

A4. Unusual Items Affecting Assets, Liabilities, Equity, Net Income or Cash Flows

There were no items affecting assets, liabilities, equity, net income or cash flows that are unusual because of their nature, size or incidence during the current quarter.

A5. Changes in Estimates

There were no changes in estimation that have had any material effect on the current quarter results.

A6. Debt and Equity Securities

There were no issuances, repurchases and repayments of debt and equity securities, share buy-back and share held as treasury shares during the current quarter.

6

DKLS INDUSTRIES BERHAD 199501040269 (369472-P)

(Incorporated in Malaysia)

A. Notes to the Interim Financial Statements (cont'd.)

A7. Dividend Paid

No dividend has been paid during the current quarter.

A8. Profit from operating activities

| | Current quarter
3 months ended
31 March | | Cumulative quarter
3 months ended
31 March | |
| --- | --- | --- | --- | --- |
| | 2026
RM | 2025
RM | 2026
RM | 2025
RM |
| The following items have been included in arriving at profit from operating activities: | | | | |
| Total depreciation | 1,195,707 | 1,237,810 | 1,195,707 | 1,237,810 |
| Depreciation capitalised under construction costs | (31,236) | (41,530) | (31,236) | (41,530) |
| Depreciation charged to profit from operating activities | 1,164,471 | 1,196,280 | 1,164,471 | 1,196,280 |
| Allowance for impairment loss on trade and other receivables | 733,978 | 341,636 | 733,978 | 341,636 |
| Dividend income from short term investments | (207,394) | (107,708) | (207,394) | (107,708) |
| Fair value gain on long/short term investments | (762,018) | (640,994) | (762,018) | (640,994) |
| Loss on foreign exchange : | | | | |
| - realised | 226 | 8,013 | 226 | 8,013 |
| - unrealised | 24,391 | 52,206 | 24,391 | 52,206 |
| Property, plant and equipment written off | - | 1,283 | - | 1,283 |
| Gain on disposal of property, plant and equipment | N/A | N/A | N/A | N/A |
| Inventories - written off/written down to net realisable value | N/A | N/A | N/A | N/A |
| Impairment of property, plant and equipment | N/A | N/A | N/A | N/A |
| Gain on derivatives | N/A | N/A | N/A | N/A |

DKLS INDUSTRIES BERHAD 199501040269 (369472-P)
(Incorporated in Malaysia)

A. Notes to the Interim Financial Statements (cont'd.)

A9. Segmental reporting

Business Segments

The following table provides an analysis of the Group's revenue, results, assets, liabilities and other information by business segment. Current taxes, deferred taxes and certain financial assets not allocated to those segments as they are managed on a group basis.

| | Investment
RM | Construction
RM | Quarry
RM | Property
development
RM | Utilities
RM | Others
RM | Total
RM |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Current quarter 3 months
ended 31 March 2026 | | | | | | | |
| Revenue | | | | | | | |
| Total revenue | 1,778,543 | 4,954,656 | 23,604,951 | 3,752,587 | 2,085,693 | 1,345,091 | 37,521,521 |
| Inter-segment sales | (87,900) | - | (4,270) | - | - | (1,345,091) | (1,437,261) |
| External sales | 1,690,643 | 4,954,656 | 23,600,681 | 3,752,587 | 2,085,693 | - | 36,084,260 |
| Results | | | | | | | |
| Segment results | 680,547 | (1,630,504) | 5,226,913 | (230,040) | 653,328 | (36,485) | 4,663,759 |
| Interest expense | (180,439) | (25,073) | (7,119) | (58,261) | (442,728) | (23,635) | (737,255) |
| Profit/(Loss) before tax | 500,108 | (1,655,577) | 5,219,794 | (288,301) | 210,600 | (60,120) | 3,926,504 |
| Income tax expense | | | | | | | (889,394) |
| Profit for the period | | | | | | | 3,037,110 |
| Total Assets | | | | | | | |
| Segment assets | 129,057,350 | 44,216,985 | 81,476,293 | 151,554,388 | 33,035,181 | 3,851,349 | 443,191,546 |
| Unallocated corporate assets | | | | | | | 136,713,949 |
| Total assets | | | | | | | 579,905,495 |
| Total Liabilities | | | | | | | |
| Segment liabilities | 18,311,838 | 14,415,354 | 9,402,693 | 29,224,776 | 1,950,620 | 3,924,784 | 77,230,065 |
| Unallocated corporate liabilities | | | | | | | 8,425,445 |
| Total liabilities | | | | | | | 85,655,510 |

DKLS INDUSTRIES BERHAD 199501040269 (369472-P)
(Incorporated in Malaysia)

A. Notes to the Interim Financial Statements (cont'd.)

A9. Segmental reporting (cont'd.)

Business Segments (cont'd.)

| | Investment
RM | Construction
RM | Quarry
RM | Property
development
RM | Utilities
RM | Others
RM | Total
RM |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Current quarter 3 months
ended 31 March 2026 (cont'd.) | | | | | | | |
| Type of goods and services | | | | | | | |
| Construction contracts | - | 4,952,690 | - | 990,383 | - | - | 5,943,073 |
| Sale of development properties | - | - | - | 2,740,189 | - | - | 2,740,189 |
| Sale of goods and services | 5,930 | 1,966 | 23,600,681 | 22,015 | 2,085,693 | - | 25,716,285 |
| Revenue from contracts with customers | 5,930 | 4,954,656 | 23,600,681 | 3,752,587 | 2,085,693 | - | 34,399,547 |
| Rental income from investment properties | 1,684,713 | - | - | - | - | - | 1,684,713 |
| | 1,690,643 | 4,954,656 | 23,600,681 | 3,752,587 | 2,085,693 | - | 36,084,260 |
| Geographical markets | | | | | | | |
| Malaysia | 5,930 | 4,954,656 | 23,600,681 | 3,752,587 | - | - | 32,313,854 |
| Lao People's Democratic Republic | - | - | - | - | 2,085,693 | - | 2,085,693 |
| | 5,930 | 4,954,656 | 23,600,681 | 3,752,587 | 2,085,693 | - | 34,399,547 |
| Timing of transfer of goods and services | | | | | | | |
| At a point in time | 5,930 | 1,966 | 23,600,681 | - | 2,085,693 | - | 25,694,270 |
| Over time | - | 4,952,690 | - | 3,752,587 | - | - | 8,705,277 |
| | 5,930 | 4,954,656 | 23,600,681 | 3,752,587 | 2,085,693 | - | 34,399,547 |

DKLS INDUSTRIES BERHAD 199501040269 (369472-P)
(Incorporated in Malaysia)

A. Notes to the Interim Financial Statements (cont'd.)
A9. Segmental reporting (cont'd.)

Business Segments (cont'd.)

| | Investment
RM | Construction
RM | Quarry
RM | Property
development
RM | Utilities
RM | Others
RM | Total
RM |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Current quarter 3 months
ended 31 March 2025 | | | | | | | |
| Revenue | | | | | | | |
| Total revenue | 1,892,390 | 6,673,457 | 22,674,417 | 901,109 | 2,041,711 | 11,485 | 34,194,569 |
| Inter-segment sales | (83,000) | (439,834) | (13,662) | - | - | (11,485) | (547,981) |
| External sales | 1,809,390 | 6,233,623 | 22,660,755 | 901,109 | 2,041,711 | - | 33,646,588 |
| Results | | | | | | | |
| Segment results | 860,671 | (490,636) | 3,882,764 | (585,484) | 589,673 | (63,229) | 4,193,759 |
| Interest expense | (235,992) | (32,360) | (15,563) | - | (599) | - | (284,514) |
| Net monetary loss | - | - | - | - | (499) | - | (499) |
| Profit/(Loss) before tax | 624,679 | (522,996) | 3,867,201 | (585,484) | 588,575 | (63,229) | 3,908,746 |
| Income tax expense | | | | | | | (1,057,594) |
| Profit for the period | | | | | | | 2,851,152 |
| Total Assets | | | | | | | |
| Segment assets | 132,999,633 | 55,778,128 | 82,753,828 | 122,112,203 | 31,514,051 | 279,280 | 425,437,123 |
| Unallocated corporate assets | | | | | | | 100,856,844 |
| Total assets | | | | | | | 526,293,967 |
| Total Liabilities | | | | | | | |
| Segment liabilities | 20,879,662 | 8,644,840 | 8,170,171 | 2,315,129 | 2,239,982 | 9,050 | 42,258,834 |
| Unallocated corporate liabilities | | | | | | | 7,495,233 |
| Total liabilities | | | | | | | 49,754,067 |

DKLS INDUSTRIES BERHAD 199501040269 (369472-P)
(Incorporated in Malaysia)

A. Notes to the Interim Financial Statements (cont'd.)

A9. Segmental reporting (cont'd.)

Business Segments (cont'd.)

| | Investment
RM | Construction
RM | Quarry
RM | Property
development
RM | Utilities
RM | Others
RM | Total
RM |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Current quarter 3 months
ended 31 March 2025 (cont'd.) | | | | | | | |
| Type of goods and services | | | | | | | |
| Construction contracts | - | 6,231,085 | - | 745,069 | - | - | 6,976,154 |
| Sale of development properties | - | - | - | 70,283 | - | - | 70,283 |
| Sale of goods and services | 1,920 | 2,538 | 22,660,755 | 85,757 | 2,041,711 | - | 24,792,681 |
| Revenue from contracts with customers | 1,920 | 6,233,623 | 22,660,755 | 901,109 | 2,041,711 | - | 31,839,118 |
| Rental income from investment properties | 1,807,470 | - | - | - | - | - | 1,807,470 |
| | 1,809,390 | 6,233,623 | 22,660,755 | 901,109 | 2,041,711 | - | 33,646,588 |
| Geographical markets | | | | | | | |
| Malaysia | 1,920 | 6,233,623 | 22,660,755 | 901,109 | - | - | 29,797,407 |
| Lao People's Democratic Republic | - | - | - | - | 2,041,711 | - | 2,041,711 |
| | 1,920 | 6,233,623 | 22,660,755 | 901,109 | 2,041,711 | - | 31,839,118 |
| Timing of transfer of goods and services | | | | | | | |
| At a point in time | 1,920 | 2,538 | 22,660,755 | - | 2,041,711 | - | 24,706,924 |
| Over time | - | 6,231,085 | - | 901,109 | - | - | 7,132,194 |
| | 1,920 | 6,233,623 | 22,660,755 | 901,109 | 2,041,711 | - | 31,839,118 |

DKLS INDUSTRIES BERHAD 199501040269 (369472-P)
(Incorporated in Malaysia)

A. Notes to the Interim Financial Statements (cont'd.)

A10. Material Subsequent Events

There were no material events after the interim period that have not been reflected in the interim financial statements for the current quarter.

A11. Changes in Composition of the Group

There are no changes in composition of the Group for the current quarter.

A12. Changes in Contingent Liabilities and Assets

(a) Contingent Liabilities

The Company monitors the performance of its subsidiaries closely to ensure they meet all their financial obligations. In view that there is minimal risk of default, the Company has not recognised the value of the obligation under the financial guarantee in the statement of financial position.

(b) Contingent Assets

There were no contingent assets since 31 December 2025.

12

DKLS INDUSTRIES BERHAD 199501040269 (369472-P)
(Incorporated in Malaysia)

A. Notes to the Interim Financial Statements (cont'd.)

A13. Related Party Disclosures

Significant related party transactions are as follows:

| | Current quarter
3 months ended
31 March | | Cumulative quarter
3 months ended
31 March | |
| --- | --- | --- | --- | --- |
| | 2026
RM | 2025
RM | 2026
RM | 2025
RM |
| Architect fees paid to Architect Ding Poi Kooi | | | | |
| Purchase of consumables from: | - | (457,118) | - | (457,118) |
| - DKLS Service Station | (477) | (1,058) | (477) | (1,058) |
| - DKLS Service Station (M) Sdn Bhd | (265) | - | (265) | - |
| Rental of car park paid to: | | | | |
| - Aplikasi Budimas Sdn Bhd | - | (3,780) | - | (3,780) |
| - Ipoh Tower Sdn Bhd | (6,420) | - | (6,420) | - |
| Supply of electricity by Ipoh Tower Sdn Bhd | (12,492) | (14,194) | (12,492) | (14,194) |

The Directors are of the opinion that all related party transactions have been entered into in the ordinary course of business at arm's length basis on normal commercial terms.

There were no transactions with key management personnel other than the remuneration package paid to them in accordance with the terms and conditions of their appointment.

A14. Capital Commitments

| | As at
31 March 2026
RM |
| --- | --- |
| Approved and contracted for:
Property, plant and equipment | 1,340,000 |
| Approved but not contracted for:
Property, plant and equipment | - |

A15. Operating lease commitments - as lessor

Future minimum rentals receivables under non-cancellable operating leases are as follows:

| | As at
31 March 2026
RM |
| --- | --- |
| Not later than 1 year | 5,856,199 |
| Later than 1 year but not later than 5 years | 3,148,722 |
| | 9,004,921 |

DKLS INDUSTRIES BERHAD 199501040269 (369472-P)
(Incorporated in Malaysia)

B. Additional information required by BMSB's Listing Requirements

B1. Operating Segment Review

Review of Performance for 1Q26 vs 1Q25

For the first quarter ended 31 March 2026 ("1Q26"), the Group recorded fairly consistent profit before tax of RM3.927 million, compared to RM3.909 million in the previous year corresponding quarter ("1Q25") on a higher revenue of RM36.084 million, an increase of 7% compared to RM33.647 million in 1Q25. The variances in revenue and profit before tax of the Group can be analysed by segment as below:

Investment

The investment segment derived its main income from investment properties.

Revenue decreased to RM1.690 million (1Q25: RM1.809 million), mainly due to a lower occupancy rate of 86% (1Q25: 100%).

Correspondingly, the segment recorded a lower profit before tax of RM0.500 million (1Q25: RM0.625 million). Overhead costs remained relatively stable, with no significant fluctuations, except for an increase in employee benefit costs of RM0.074 million, which were largely offset by a decrease in interest expenses of RM0.056 million.

As a result, the segment recorded a lower profit margin in line with the decrease in revenue.

Construction

The construction segment recorded a lower revenue of RM4.955 million (1Q25: RM6.234 million), mainly attributable to a smaller order book following the completion of certain projects in 2025.

Consequently, the segment recorded a higher loss before tax of RM1.655 million (1Q25: RM0.523 million). The higher loss before tax was also attributable to the higher allowance for impairment losses on receivables of RM1.065 million (1Q25: RM0.327 million).

Quarry

The quarry segment recorded a higher profit before tax of RM5.220 million (1Q25: RM3.867 million) on a higher revenue of RM23.601 million (1Q25: RM22.661 million), mainly driven by increased demand for premix products.

The improved performance was further supported by lower bitumen costs, higher reversal of impairment losses on receivables, higher fair value gain on short term investment and lower depreciation charges. These positive impacts were partially offset by lower interest income and higher upkeep costs during the quarter.

Overall, the segment recorded a higher profit margin in line with the improved operating performance.

14

DKLS INDUSTRIES BERHAD 199501040269 (369472-P)
(Incorporated in Malaysia)

B. Additional information required by BMSB's Listing Requirements (cont'd.)

B1. Operating Segment Review (cont'd.)

Property Development

The property development segment reported higher revenue of RM3.752 million in 1Q26 (1Q25: RM0.901 million) mainly driven by the sales from its newly launched gated and guarded residential project, Amery Taiping.

Despite the stronger revenue, the segment continued to record a loss before tax of RM0.288 million, narrowing from RM0.585 million in 1Q25. The improvement from higher sales was partly offset by lower other operating income, higher administrative expenses, including advertising and marketing expense and bank charges, as well as increased interest expenses.

Utilities

The utilities segment derives its revenue from the supply of treated water and related services to consumers from a water treatment plant located in Lao People's Democratic Republic.

Revenue increased to RM2.086 million (1Q25: RM2.042 million), mainly driven by higher billed water consumption and a 10% tariff increase effective 1 January 2026. However, the increase was partially offset by the depreciation of the Lao Kip against the Malaysian Ringgit.

Despite higher revenue, profit before tax decreased to RM0.210 million (1Q25: RM0.588 million), mainly due to higher interest and maintenance expenses, though this was partly cushioned by lower chemical consumption resulting from reduced raw water turbidity.

As a result, the segment recorded a lower profit margin during the quarter.

B2. Variance of Results Against Preceding Quarter

| | Current quarter
31 March 2026
RM'000 | Immediate preceding quarter
31 December 2025
RM'000 | Changes
amount
RM'000 |
| --- | --- | --- | --- |
| Revenue | 36,084 | 49,372 | (13,288) |
| Profit before tax | 3,927 | 9,256 | (5,329) |

For the current quarter under review ("1Q26"), the Group recorded a lower profit before tax on a lower revenue as compared to the immediate preceding quarter ("4Q25"), primarily due to reduced demand for premix products in the quarry segment.

In addition to lower revenue, the decrease in profit before tax was also attributable to the absence of a reversal of impairment loss on property, plant and equipment (4Q25: RM2.143 million), lower interest income, the non-recurrence of one-off compensation income and fair value gains on investment properties, as well as higher employee benefit costs and interest expenses.

These factors were partially offset by a lower impairment losses on receivables of RM0.734 million (4Q25: RM1.777 million), lower foreign exchange losses, and the absence of inventories written down to net realisable value in 1Q26.

Excluding the above-mentioned items, the Group would still have reported a lower profit before tax, in line with reduced revenue, albeit with a slight improvement in gross margin driven by the quarry segment.

15

DKLS INDUSTRIES BERHAD 199501040269 (369472-P)
(Incorporated in Malaysia)

B. Additional information required by BMSB's Listing Requirements (cont'd.)

B3. Prospects

The 2026 market outlook presents many uncertainties. While Malaysia's macroeconomic outlook for the year points to a domestically driven growth environment, recent geopolitical escalations have placed renewed pressure on global shipping and energy prices. This translates to supply chain disruptions and volatility in construction material costs, which will likely impact project timelines and margins in the industries in which the Group operates.

Domestically, the Construction Division anticipates an increasingly competitive landscape as it faces several downward pressures including tariff structures impacting profitability, evolving regulatory requirements, as well as a more selective project pipeline leading to intensified bidding amongst contractors. To mitigate these cumulative challenges, the Division will focus on accurate cost estimation and pricing strategies in order to remain competitive and profitable, while being prudent with its selection of new tender projects.

The Property Division maintains a moderate outlook for 2026. Although several tax reliefs and affordable housing schemes introduced by the Government are expected to stimulate the property market, their overall effectiveness was offset by several countervailing factors. This included tax rationalisation measures and rising property prices driven by escalating construction costs and evolving regulatory requirements, which weighed on affordability. The Division will focus on its existing inventory while strategically planning product launches based on real-time market trends.

The Quarry Division maintains a moderate outlook for 2026. While regional demand is underpinned by a pipeline of private activities and public infrastructure projects, the industry remains sensitive to geopolitical volatility. These external headwinds have resulted in fluctuations in energy and fuel costs, with potential disruption towards global supply chains. Prolonged instability could lead to raw material scarcity and upward price pressure, specifically impacting high-dependency products such as bitumen. The Division will maintain agility in its business decisions to overcome these challenges while continuing to monitor market demands and its expansion strategy to capture any new opportunities.

The Utilities Division's water treatment plant concession in Lao People's Democratic Republic will continue to remain as a source of recurring income stream into the Group. However, the volatility of the foreign exchange rates will continue to impact the Division's performance.

Amid external global pressures that may contribute to market volatility, the Group holds a cautiously neutral outlook for the year. The Group will focus on balancing financial discipline with readiness to capitalise on emerging opportunities as they arise.

16

DKLS INDUSTRIES BERHAD 199501040269 (369472-P)

(Incorporated in Malaysia)

B. Additional information required by BMSB's Listing Requirements (cont'd.)

B4. Income tax expense

| | Current quarter
3 months ended
31 March | | Cumulative quarter
3 months ended
31 March | |
| --- | --- | --- | --- | --- |
| | 2026
RM | 2025
RM | 2026
RM | 2025
RM |
| Current income tax: | | | | |
| Malaysia income tax | 1,385,916 | 1,392,264 | 1,385,916 | 1,392,264 |
| Foreign tax | 173,761 | 146,503 | 173,761 | 146,503 |
| | 1,559,677 | 1,538,767 | 1,559,677 | 1,538,767 |
| Deferred income tax: | | | | |
| Relating to origination and
reversal of temporary
differences | (673,163) | (530,643) | (673,163) | (530,643) |
| Real Property Gain Tax | 1,905 | - | 1,905 | - |
| Withholding tax | 975 | 49,470 | 975 | 49,470 |
| Income tax expense recognised in
profit or loss | 889,394 | 1,057,594 | 889,394 | 1,057,594 |

Current income tax is calculated at the Malaysian corporate statutory tax rate of 24% of the estimated assessable profit for the period.

Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.

DKLS INDUSTRIES BERHAD 199501040269 (369472-P)
(Incorporated in Malaysia)

B. Additional information required by BMSB's Listing Requirements (cont'd.)

B4. Income tax expense (cont'd.)

A reconciliation of income tax expense applicable to profit before taxation at the statutory income tax rate to income tax expense at the effective income tax rate is as follows:

| | Current quarter
3 months ended
31 March | | Cumulative quarter
3 months ended
31 March | |
| --- | --- | --- | --- | --- |
| | 2026
RM | 2025
RM | 2026
RM | 2025
RM |
| Profit before tax | 3,926,504 | 3,908,746 | 3,926,504 | 3,908,746 |
| Taxation at applicable tax rates | 942,360 | 938,099 | 942,360 | 938,099 |
| Income not subject to tax | (203,445) | (181,747) | (203,445) | (181,747) |
| Expenses not deductible for
tax purposes | 218,523 | 226,830 | 218,523 | 226,830 |
| Expenses for special deduction for
tax purposes | (9,474) | (9,661) | (9,474) | (9,661) |
| Difference in tax rate of foreign
subsidiary | (13,404) | (21,957) | (13,404) | (21,957) |
| Deferred tax assets not
recognised | 12,856 | 324 | 12,856 | 324 |
| Deferred tax on undistributed
earnings from foreign subsidiary | 22,152 | (28,044) | 22,152 | (28,044) |
| Deferred tax on fair value adjustment | (83,054) | 3,466 | (83,054) | 3,466 |
| Hyperinflationary adjustment | - | 7,867 | - | 7,867 |
| Taxable on foreign source income
recognised in prior year | - | 72,947 | - | 72,947 |
| Real Property Gain Tax | 1,905 | - | 1,905 | - |
| Withholding tax | 975 | 49,470 | 975 | 49,470 |
| Income tax expense recognised in
profit or loss | 889,394 | 1,057,594 | 889,394 | 1,057,594 |

B5. Corporate Proposals and Profit Forecast

Not applicable as no profit forecast was published.

There were no corporate proposals announced but not completed as at the reporting date.

18

DKLS INDUSTRIES BERHAD 199501040269 (369472-P)

(Incorporated in Malaysia)

B. Additional information required by BMSB's Listing Requirements (cont'd.)

B6. Borrowing and Debt Securities

| | As at
31 March
2026
RM | As at
31 March
2025
RM |
| --- | --- | --- |
| Short term borrowings | | |
| Hire purchase liabilities (secured) | 135,926 | 491,625 |
| Term loans (secured) | 5,000,004 | 5,000,004 |
| Bank overdrafts (unsecured) | - | 100,580 |
| Lease liabilities (unsecured) | 101,409 | 96,209 |
| Revolving credit (secured) | 9,000,000 | - |
| Revolving credit (unsecured) | 7,500,000 | 500,000 |
| | 21,737,339 | 6,188,418 |
| Long term borrowings | | |
| Hire purchase liabilities (secured) | 28,628 | 110,714 |
| Lease liabilities (unsecured) | 294,043 | 398,755 |
| Term loans (secured) | 15,333,280 | 12,333,284 |
| | 15,655,951 | 12,842,753 |
| Total borrowings | 37,393,290 | 19,031,171 |

Loan and borrowings are denominated in the following currencies:

| | As at
31 March
2026
RM | As at
31 March
2025
RM |
| --- | --- | --- |
| Ringgit Malaysia | 37,367,285 | 19,001,290 |
| Lao Kip | 26,005 | 29,881 |
| | 37,393,290 | 19,031,171 |

The loans and borrowings denominated in Lao Kip was undertaken by a foreign subsidiary in which the repayment is to be settled in the functional currency of the said subsidiary as such no hedging to Ringgit Malaysia is required.

B7. Changes in Material Litigation

There was no material litigation against the Group as at the reporting date.

B8. Proposed Dividend

No dividend has been proposed or declared in respect of the current quarter ended 31 March 2026.

The Board of Directors has recommended a first and final single tier dividend of 3 sen per ordinary share in respect of the financial year ended 31 December 2025. The dividend was approved by the shareholders at the Annual General Meeting held on 28 May 2026. The dividend is payable on 14 August 2026 to shareholders whose name appear in the Record of Depositors on 31 July 2026.

DKLS INDUSTRIES BERHAD 199501040269 (369472-P)
(Incorporated in Malaysia)

B. Additional information required by BMSB's Listing Requirements (cont'd.)

B9. Basic Earnings Per Share

(a) Basic

Basic earnings per share amounts are calculated by dividing profit for the year attributable to ordinary equity holders of the parent by the weighted number of ordinary shares in issue during the financial year:

| | Current quarter
3 months ended
31 March | | Cumulative quarter
3 months ended
31 March | |
| --- | --- | --- | --- | --- |
| | 2026
RM | 2025
RM | 2026
RM | 2025
RM |
| Profit attributable to
owners of the Company | 2,991,179 | 2,719,134 | 2,991,179 | 2,719,134 |
| Weighted average number
of ordinary shares in issue | 92,699,600 | 92,699,600 | 92,699,600 | 92,699,600 |
| | Sen | Sen | Sen | Sen |
| Basic earnings per share | 3.23 | 2.93 | 3.23 | 2.93 |

(b) Diluted

There is no dilutive effect on earnings per share as the Company has no potential issues of ordinary shares.

B10. Auditors' Report on Preceding Annual Financial Statements

The auditors' report on the financial statements for the financial year ended 31 December 2025 was unqualified.

B11. Financial Assistance in the Ordinary Course of Business

As at the end of the reporting period, DKLS Construction Sdn Bhd, a wholly-owned subsidiary of the Company, in the ordinary course of business has caused certain financial institutions to issue Performance Bond guarantees amounting to RM2,147,650 on behalf of the main contractors. The Company monitors the performance of its subsidiaries closely to ensure they meet all their financial obligations. In view that there is minimal risk of default, the company has not recognised the value of the obligation under the Financial Guarantee in its books.

DKLS INDUSTRIES BERHAD 199501040269 (369472-P)
(Incorporated in Malaysia)

B. Additional information required by BMSB's Listing Requirements (cont'd.)

B12. Fair value of non-financial assets and financial instruments

The following table provides the fair value measurement hierarchy of the Group's non-financial assets and financial instruments as at 31 March 2026:

Fair value of financial instruments that are carried at fair value

| | Quoted prices
in active
markets for
identical
assets
Level 1
RM | Significant
other
observable
inputs
Level 2
RM | Significant
unobservable
inputs
Level 3
RM |
| --- | --- | --- | --- |
| Non-financial assets: | | | |
| Investment properties | - | - | 125,300,000 |
| Financial assets: | | | |
| Long term/Short term investments
- Equity instruments (quoted)
- Unit trust fund (quoted) | 22,480 | - | - |
| | - | 124,164,048 | - |

There were no transfers between Level 1, Level 2 and Level 3 fair value measurements during the current quarter.

Level 1

Level 1 fair value is derived from quoted (unadjusted) market prices in active markets for identical assets and liabilities.

Level 2

Level 2 fair value is measured using valuation technique for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

Level 3 fair value

Level 3 fair value is measured using valuation technique for which the lowest level input that is significant to the fair value measurement is unobservable.

21

DKLS INDUSTRIES BERHAD 199501040269 (369472-P)
(Incorporated in Malaysia)

B. Additional information required by BMSB's Listing Requirements (cont'd.)

B12. Fair value of non-financial assets and financial instruments (cont'd.)

Fair value of financial instruments that are carried at fair value (cont'd.)

Determination of fair value

Investment properties

Fair value is determined based on valuations as at 31 December 2025. Valuations are performed by accredited independent valuers with recent experience in the location and category of properties being valued. The valuations are based on the comparison and income capitalisation method that makes reference to the recent transaction value.

Quoted equity instruments

Fair value is determined directly by reference to the published market bid price at the reporting date.

Unit trust fund (quoted)

Fair value is determined directly by reference to the published net asset value at the reporting date.

Dated: 28 May 2026

22