7 FINANCIAL STATEMENTS 317 15. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES The Group and the Company have lease contracts for leasehold land, office premises and motor vehicles used in its operations. Leases of premises generally have lease terms between 2 and 10 years, while motor vehicles have lease terms between 2 to 3 years. The Group and the Company have several lease contracts that include extension and termination options. These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the Group’s and the Company’s business needs. Management exercises judgement in determining whether these extension and termination options are reasonably certain to be exercised. The Group and the Company also have leases with lease terms of 12 months or less and leases of office equipment with low value. The Group and the Company apply the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases. Set out below are the carrying amounts of right-of-use assets recognised and the movements during the year: Group Leasehold land RM’000 Office premises RM’000 Motor vehicles RM’000 Total RM’000 As at 1 January 2025 4,379 24,960 226 29,565 Additions - 3,309 7,859 11,168 Depreciation (Note 7) (88) (13,530) (1,089) (14,707) Impairment for the year (Note 7)* (1,530) (727) - (2,257) Foreign exchange differences - (294) (173) (467) As at 31 December 2025 2,761 13,718 6,823 23,302 As at 1 January 2024 4,484 31,029 93 35,606 Additions - 9,505 271 9,776 Depreciation (Note 7) (105) (14,947) (138) (15,190) Derecognition - (1,189) - (1,189) Effect of lease modification - 932 - 932 Foreign exchange differences - (370) - (370) As at 31 December 2024 4,379 24,960 226 29,565 * Refer to Note 17(a) for further details on the impairment losses recognised during the year. Company Leasehold land RM’000 Office premises RM’000 Total RM’000 As at 1 January 2025 2,861 10,082 12,943 Depreciation (Note 7) (34) (9,549) (9,583) As at 31 December 2025 2,827 533 3,360 As at 1 January 2024 2,895 18,699 21,594 Depreciation (Note 7) (34) (9,549) (9,583) Effect of lease modification - 932 932 As at 31 December 2024 2,861 10,082 12,943 In the previous financial year, leasehold land of the Group with an aggregate carrying value of RM1.8 million was pledged as securities for banking facilities (Note 35(a)).
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