UEM EDGENTA BERHAD Integrated Annual Report 2025 374 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2025 44. SIGNIFICANT EVENTS (CONTD.) In February 2026, further progress was made when the Principal and Independent Advisers submitted an application to the Securities Commission on 11 February 2026 seeking an extension of time to despatch the scheme documents; from 13 February 2026 to 6 March 2026. The Securities Commission approved this request on 13 February 2026, granting the revised deadline to provide additional time for the issuance of the scheme documents, including the independent advice letter. On 5 March 2026, the Principal Adviser announced that the Securities Commission Malaysia had, via its letters dated 4 March 2026, notified that it had no further comments on the circular and independent advice letter in relation to the Proposed SCR. On 6 March 2026, the Company issued a circular to shareholders in relation to the Proposed SCR, which included, among others, the Independent Advice Letter and the Notice of Extraordinary General Meeting (“EGM”). The EGM has been scheduled to be held on 2 April 2026 for the purpose of seeking approval from the Non-Interested Shareholders for the Proposed SCR. The Proposed SCR represents a non‑adjusting event after the reporting period, as the proposal and related approvals were not completed as at 31 December 2025. Accordingly, no adjustment has been made to the financial statements for the financial year ended 31 December 2025. The disclosure is provided to inform users of the financial statements of the nature of the event and its potential implications. As at the date of these financial statements, the Proposed SCR remains pending the outcome of the EGM and the completion of the relevant regulatory and shareholders’ approvals. 45. SUBSEQUENT EVENTS On 28 February 2026, military actions were reported between the United States, Israel and Iran, marking a significant escalation of hostilities in the Middle East region. Subsequent developments have included retaliatory measures and related military activities across parts of the region, contributing to heightened geopolitical uncertainty. In light of the above developments, there may be potential operational and commercial risks to the UEM Edgenta Group’s operations in the Middle East region, including, amongst others, possible disruptions to project execution, limitations on workforce mobility and heightened counterparty and country risks. The Group has business operations in United Arab Emirates and Saudi Arabia under its Property and Facility Solutions segment and Others segment. As at 31 December 2025, the revenue generated and loss after tax (“LAT”) incurred from these countries had collectively contributed approximately 8.00% and 4.10% to the Group’s total revenue and LAT respectively. Nevertheless, as at the date of these financial statements, the UEM Edgenta Group continues to operate its business in the Middle East region as usual. As the conflict has just began and given the fluid and rapidly evolving nature of the situation, it is presently premature to determine whether the ongoing hostilities will have a material impact on the future financial performance of the UEM Edgenta Group. 46. PRIOR YEAR ADJUSTMENTS (“PYAs”) During the current financial year, the Group undertook a detailed review of contract related assets and accrual balances relating to prior financial periods. The review identified that certain amounts had remained recognised in the statement of financial position and were not fully charged to profit or loss in the appropriate reporting periods. Upon reassessment, it was determined that these balances no longer met the recognition criteria under the applicable MFRS at the respective reporting dates. Accordingly, the amounts were considered to have been overstated in prior financial periods.
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