ANNUAL REPORT 2025 Frontken Corporation Berhad 200401012517 (651020-T)
IN§DE THIS REPORT 02 Corporate Information 03 Group Corporate Structure 04 Our Vision, Mission and Profile 05 Our Services 06 Financial Highlights 08 Chairman’s Message 16 Financial Review 18 Board of Directors’ Profile 21 Senior Management’s Profile 23 Sustainability Report 50 Statement of Directors’ Responsibilities 51 Corporate Governance Overview Statement 59 Statement on Risk Management and Internal Control 63 Audit Committee Report 66 Additional Disclosure 68 Financial Statements 149 List of Properties 152 Shareholdings Statistics (as at 31 March 2026) 154 Warrant Holdings Statistics (as at 31 March 2026) 156 Notice of Annual General Meeting - Proxy Form
FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 02 CORPORATE INFORMATION AUDIT COMMITTEE Ng Chee Whye (Chairman) Koh Huey Min Raja Jastina Adlina Binti Raja Arshad NOMINATION COMMITTEE Raja Jastina Adlina Binti Raja Arshad (Chairman) Ng Chee Whye Gerald Chiu Yoong Chian Koh Huey Min REMUNERATION COMMITTEE Ng Chee Whye (Chairman) Koh Huey Min Raja Jastina Adlina Binti Raja Arshad COMPANY SECRETARY Mah Li Chen MAICSA 7022751 PC No. 202008002006 REGISTERED OFFICE B-11-10 Level 11 Megan Avenue II Jalan Yap Kwan Seng 50450 Kuala Lumpur Tel: (03) 2203 3388 Fax: (03) 2203 3399 Email: lichen@secretariesinc.com HEAD OFFICE 601D, Level 6, Tower D, Uptown 5 No. 5, Jalan SS21/39 Damansara Uptown 47400 Petaling Jaya, Selangor Tel: (03) 7625 1381 / (03) 7625 1598 Email: ir@frontken.com Website: www.frontken.com BOARD OF DIRECTORS NG WAI PIN Chairman / Chief Executive Officer DR TAY KIANG MENG Executive Director / Chief Scientist / Chief Sustainability Officer NG CHEE WHYE Independent Non-Executive Director GERALD CHIU YOONG CHIAN Non-Independent Non-Executive Director KOH HUEY MIN Independent Non-Executive Director RAJA JASTINA ADLINA BINTI RAJA ARSHAD Independent Non-Executive Director INVESTOR RELATIONS Tel: (03) 7625 1381 / (03) 7625 1598 Email: ir@frontken.com SHARE REGISTRAR Tricor Investor & Issuing House Services Sdn Bhd Unit 32-01, Level 32, Tower A Vertical Business Suite Avenue 3, Bangsar South No. 8, Jalan Kerinchi 59200 Kuala Lumpur Tel: (03) 2783 9299 Email: is.enquiry@vistra.com AUDITORS Crowe Malaysia PLT 201906000005 (LLP0018817-LCA) & AF 1018 Chartered Accountants Level 16 Tower C Megan Avenue II 12 Jalan Yap Kwan Seng 50450 Kuala Lumpur Tel: (03) 2788 9999 Fax: (03) 2788 9998 STOCK EXCHANGE LISTING Main Market of Bursa Malaysia Securities Berhad Stock Name: FRONTKN Stock Code: 0128 Reuters Code: FRKN.KL Bloomberg Code: FRCB MK
FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 03 GROUP CORPORATE STRUCTURE AS AT 24 MARCH 2026 Frontken Corporation Berhad 200401012517 (651020-T) 100% 100% 99.9% 100% 100% Frontken Malaysia Sdn Bhd Frontken (East Malaysia) Sdn Bhd Frontken (Johor) Sdn Bhd Frontken (Singapore) Pte Ltd 95% 5% PT Frontken Indonesia 93.4% Ares Green Technology Corporation 45% TTES Frontken Integrated Services Sdn Bhd Frontken Philippines Inc.
FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 04 OUR VISION, MISSION AND PROFILE OUR PROFILE Frontken Corporation Berhad, listed on the Main Market of Bursa Malaysia Securities Berhad, has since its inception in 1996, established itself as a world leading service provider of advanced precision cleaning and surface treatment for semiconductor process chamber parts and repair and maintenance services for the oil and gas industry. The Group uses cutting edge technology including advanced precision cleaning, advanced surface treatment and specialty spray coating to extend the lifespan of the high precision tools/equipment used in the fabrication of wafers, while significantly improving its customer’s process efficiency, operating and maintenance costs. The Group’s continuous focus on research and development helped to improve our customers’ process tool part optimisation. As a result, we were able to constantly exceed customers expectation by re-designing some of the tools to further increase the parts’ shelf life and at the same time reducing impact on the environment. The Group’s customer portfolio comprises key players in the semiconductor, optoelectronics, oil and gas and petrochemical industries around the world. To date, the Group has facilities in Singapore, Malaysia, Taiwan, and the Philippines, with 1430 employees. OUR VISION To be the leading service provider in the industry we serve. OUR MISSION To serve our customers with complete satisfaction which includes not only the most competitive price and fastest delivery time but also the highest technical performance and reliability for all our services and products.
FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 05 OUR SERVICES Advanced Surface treatment services include thermal spray coatings, arc spray coatings, precision anodisation and precision texturing and polishing. Protection, lifetime extension, performance and efficiency improvements via advance surface treatment technology such as cold build up treatment, plating, plating & conversion coating, and specialised plasma transferred arc welding. Advanced Precision Cleaning Advanced Precision cleaning and surface treatment of vacuum processes equipment parts in the semiconductors and TFT industries. Decontamination of newly manufactured parts and routine maintenance. Kit management of semiconductor manufacturing components. Rotating Equipment Equipment maintenance and overhaul, mechanical fitting & assembly, dynamic balancing, heat treatment, on site machining, metal stitching, and laser alignment. Advanced Surface Treatment & Specialty Coating Semiconductor Engineering
FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 06 FINANCIAL HIGHLIGHTS 2021 2022 2023 2024 2025 SEGMENTAL REVENUE – BY LOCATION (RM’000) Taiwan 310,419 347,368 327,758 383,372 449,064 Malaysia 63,856 88,848 93,133 102,456 87,832 Singapore 60,000 66,509 64,064 65,935 53,875 Others 15,947 14,458 15,194 17,442 16,989 450,222 517,183 500,149 569,205 607,760 SEGMENTAL REVENUE – BY INDUSTRY (RM’000) Semiconductor 378,685 413,322 383,174 437,213 500,534 Oil & Gas 50,419 82,500 97,459 106,319 83,960 General* 21,118 21,361 19,516 25,673 23,266 450,222 517,183 500,149 569,205 607,760 * Comprises power generation, marine, steel, cement, wood processing, pulp & paper, printing, agriculture, industrial manufacturing, food, construction and other sectors. 2021 2022 2023 2024 2025 REVENUE (RM’000) 450,222 517,183 500,149 569,205 607,760 0 100,000 200,000 300,000 400,000 500,000 700,000 600,000 2021 2022 2023 2024 2025 Earning before interest, tax, depreciation and amortisation (RM’000) 168,156 193,212 188,358 219,907 245,944 0 50,000 100,000 150,000 250,000 200,000 300,000 2021 2022 2023 2024 2025 Profit before tax (RM’000) 149,866 174,790 167,066 198,430 223,737 0 50,000 100,000 150,000 200,000 250,000 2021 2022 2023 2024 2025 Net profit (RM’000) 104,504 123,292 111,951 136,806 154,228 0 20,000 40,000 80,000 60,000 100,000 140,000 120,000 160,000
FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 07 FINANCIAL HIGHLIGHTS (CONT’D) 2021 2022 2023 2024 2025 SUMMARISED GROUP FINANCIAL POSITION AS AT 31 DECEMBER (RM’000) Non-Current Assets 257,937 300,195 307,538 293,582 306,784 Current Assets 460,699 505,626 577,887 694,961 994,880 Total Assets 718,636 805,821 885,425 988,543 1,301,664 Share Capital 118,441 118,441 118,441 155,607 449,666 Treasury shares (4,747) (4,747) (3,739) (3,739) (9,661) Share application money - - - 16,108 - Reserves 387,162 434,775 526,465 552,588 596,075 Shareholders’ Equity 500,856 548,469 641,167 720,564 1,036,080 Non-Controlling Interests 34,225 39,454 46,735 52,343 53,907 Total Equity 535,081 587,923 687,902 772,907 1,089,987 Non-Current Liabilities 22,295 31,999 31,109 27,829 27,770 Current Liabilities 161,260 185,899 166,414 187,807 183,907 Total Liabilities 183,555 217,898 197,523 215,636 211,677 Total Equity and Liabilities 718,636 805,821 885,425 988,543 1,301,664 2021 2022 2023 2024 2025 SUMMARISED GROUP CASH FLOWS YEAR ENDED 31 DECEMBER (RM’000) Net Cash Flows From Operating Activities 138,773 142,868 143,999 166,626 202,909 Net Cash Flows For Investing Activities^ (129,618) (16,030) (29,617) (21,260) (300,147) Net Cash Flows (For)/From Financing Activities (61,084) (50,629) (71,801) (19,974) 200,749 Net Increase/(Decrease) in Cash and Cash Equivalents^ (51,929) 76,209 42,581 125,392 103,511 Effect of exchange differences ^ 11,082 (8,471) 13,440 (30,660) (38,418) Cash and Cash Equivalents at Beginning of Year^ 291,468 250,621 318,359 374,380 469,112 Cash and Cash Equivalents at End of Year^ 250,621 318,359 374,380 469,112 534,205 ^ The comparative figures have been reclassified to conform with the presentation of current financial year. 2021 2022 2023 2024 2025 FINANCIAL ANALYSIS Turnover growth 22.2% 14.9% -3.3% 13.8% 6.8% Profit Before Tax Growth 31.2% 16.6% -4.4% 18.8% 12.8% Net Profit Growth 27.5% 18.0% -9.2% 22.2% 12.7% Pre-tax Profit Margin 33.3% 33.8% 33.4% 34.9% 36.8% Net Profit Margin 23.2% 23.8% 22.4% 24.0% 25.4% Return on Average Shareholders’ Equity 22.2% 23.5% 18.8% 20.1% 17.6% Return on Average Total Assets 15.6% 16.2% 13.2% 14.6% 13.5% Earnings Per Share (Sen) - Basic 6.7 7.8 7.1 8.7 9.7 - Diluted # 6.7 # 7.8 # 7.1 8.6 9.6 # The potential conversion of warrants is anti-dilutive as its exercise price is higher than the average market price of the Company’s ordinary shares during the current financial period and hence, the diluted earnings per share is equal to the basic earnings per share.
FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 08 CHAIRMAN’S MESSAGE REVENUE RM607.8 million NET INCOME RM154.2 million CAPEX RM42.7 million 7% 13% DEAR SHAREHOLDERS, Welcome to our Annual Report 2025. On behalf of the Board of Directors, I present to you the Annual Report and Audited Financial Statements of the Frontken Group (the “Group”) for the financial year 2025 (“FY2025”). As part of this Annual Report, we have also included the Management Discussion and Analysis to provide our shareholders with clearer insight into the Group’s operations and performance. I am pleased to report that for FY2025, the Group continued to deliver a resilient and commendable set of results despite a dynamic and evolving global landscape. Our focus on disciplined execution, operational efficiency and continuous improvement enabled us to achieve stable financial performance while strengthening our position across the industries we serve. MANAGEMENT DISCUSSION AND ANALYSIS In FY2025, we recorded a revenue of RM607.8 million, representing a 7% increase from last year. Net income improved by 13% to RM154.2 million with profit margin expanding to 25%, an increase of 1.4 percentage points year-on-year. The improved performance was primarily attributable to higher volumes from our semiconductor customers, improved capacity utilisation across our facilities and a sustained focus on cost discipline and operational improvements. In recognition of our performance and commitment to delivering value to shareholders, the Board declared a dividend of 2.0 sen per share for FY2025. The Board remains committed to maintaining a sustainable dividend policy while balancing the Group’s reinvestment needs and long-term growth objectives. During the year, the Group generated positive cash flow of RM202.9 million from its operations. Capital expenditures (“CAPEX”) for property, plant and equipment amounted to RM42.7 million were primarily for capacity expansion, efficiency improvements and growth-related investments to support anticipated future demand. Despite dividend distributions and CAPEX outflows, the Group’s cash balance remained strong at RM833 million as at 31 December 2025, providing greater financial flexibility for ongoing operations and investment needs.
FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 09 CHAIRMAN’S MESSAGE (CONT’D) 191 223 251 262 297 327 340 368 450 517 500 569 608 CAGR +10% REVENUE FY2013 - FY2025 (RM, in million) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 19 20 27 36 57 74 88 114 135 124 151 169 CAGR +63% 2013 *2014 *2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 PAT FY2013 – FY2025 (RM, in million) and PAT margin 0.2% 8% 10% 12% 17% 22% 24% 25% 26% 25% 27% 28% 8% * Note: Excluded the one-off ATB project for a like-for-like comparison. FY2025 marked another year of steady progress for the Group. The semiconductor segment remained a key earnings contributor. As semiconductor manufacturing processes advance toward lower technology nodes, demand for highprecision cleaning services continues to intensify. Customer production activity held steady throughout the year, supporting overall performance across our facilities. During the year, the Group expanded its capacity and refined operational processes to meet evolving customer requirements; reinforcing its position as a trusted long-term partner. Innovation and research and development (“R&D”) remained central to our strategy with continued investment in automation, process improvements and new technologies to enhance productivity, quality and turnaround time. Sustainability initiatives were further enhanced in line with customers’ growing emphasis on environmentally responsible manufacturing and services. The engineering segment delivered a satisfactory overall performance. Although activity levels were below those of the prior year and fell short of initial expectations, the segment drew on its deep expertise in repair, maintenance and engineering services across the oil and gas, energy and general industries to remain profitable and competitive.
FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 10 CHAIRMAN’S MESSAGE (CONT’D) ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (“ESG”) AND SUSTAINABILITY Strong ESG practices are fundamental to sustainable growth and remain embedded in the Group’s strategy and day-to-day operations. We recognise that our long-term success is linked to how responsibly we manage our environmental impact, support our people and uphold the highest standards of governance. Progress against our ESG commitments is monitored regularly by the Board and forms an integral part of our operational planning and reporting. Environmental – Protecting the environment is a core responsibility particularly given the nature of our business. Chemicals, water and energy are fundamental resources to our processes and thus managing their consumption responsibly is an operational priority. We continued to implement programmes across all facilities to reduce our environmental footprint with progress measured against targets. Energy management remained a key focus. To that end, the Group invested in solar energy systems integrating approximately 6.2 million kWh of solar-generated electricity between 2018 and 2025. Water is an essential resource and given the volumes involved and the criticality of water to our operations, responsible water management has been a priority for the Group. Since 2018, the Group has implemented deionised-water (“DI-water”) recycling system, resulting in cumulative savings of approximately 577,500 tonnes of recycled DI-water. The Group’s operations generate a range of waste streams including chemicals and general industrial waste. Managing these responsibly through reduction, recovery and compliant disposal is an integral part of our environmental commitment. Since 2018, the Group has also achieved cumulative recycling of approximately 585,500 kilograms of waste through ongoing initiatives. Social – Our people are the foundation of our business. The Group employs a skilled and diverse workforce across all our facilities and we are committed to providing a workplace where every individual is safe, valued and supported to grow. The safety of our workforce is non-negotiable. Our health and safety management system is built on proactive risk identification and regular training. Additionally, developing workforce capabilities is essential to maintaining the high technical standards expected by our customers. During the year, training programmes covered technical skills, safety procedures, leadership development and cross-functional competencies. Beyond our operations, we recognise our responsibility to contribute positively to the communities around us. In FY2025, the Group continued its community engagement initiatives across all our facilities focusing on education support, environmental awareness and charitable works. These efforts reflect our ongoing commitment to fostering a culture of giving back across the Group. Beach clean-up activities by employees
FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 11 CHAIRMAN’S MESSAGE (CONT’D) Governance – Good governance practices underpins everything the Group does. The Board remains steadfast in upholding robust corporate governance practices consistent with the Malaysian Code on Corporate Governance (“MCCG”) and regularly reviews it to ensure alignment with evolving regulatory expectations and best practice standards. Transparency and accountability are central to our governance culture. The Group maintains clear policies including anti-bribery and corruption, conflicts of interest, whistleblowing and data privacy. Our Code of Business Conduct sets out the standards expected of all employees, directors and business partners and is reinforced through periodic training, management oversight and a confidential reporting mechanism available to all staff. The Group also continues to engage constructively with regulators, industry bodies and shareholders to foster transparency, build and support long-term sustainability. For a more comprehensive overview of the Group's sustainability strategy, performance data and targets, please refer to the Sustainability Report on page 23 of this Annual Report. The full Sustainability Report along with related policies and governance documents are available on the Group's website at www.frontken.com. AWARDS AND RECOGNITION During the year, the Group received various awards and recognitions in acknowledgement of its operational excellence, performance and commitment to sustainability. These accolades reflect the continued dedication of our people and the trust placed in us by our customers and partners. Forbes Asia Best Under A Billion Award 2025 Awarded by customer for Best Quality, Grade A Parts Cleaning Supplier Awarded the Environmental Friendly Enterprise by Hsinchu County Environmental Protection Bureau, Taiwan
FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 12 CHAIRMAN’S MESSAGE (CONT’D) BUSINESS OVERVIEW Revenue in (%) in FY2025 Semiconductor 17% 83% Engineering Semiconductor The global semiconductor industry maintained its growth trajectory in 2025 with customers progressively increasing utilisation rates and investing in advanced manufacturing capabilities. According to the Semiconductor Industry Association, global semiconductor sales rose approximately 25.6% year-on-year to a record US$791.7 billion, driven by robust demand across artificial intelligence, highperformance computing, automotive electronics and data centre applications. Against this backdrop, the Group’s semiconductor segment delivered a solid performance driven by its advanced precision cleaning and refurbishment services. As wafer fabrication continues to advance toward smaller and more complex technology nodes, contamination tolerance has become increasingly stringent, increasing the importance of high-reliability surface treatment solutions for equipment uptime, yield optimisation and process stability. Our ability to meet these evolving requirements remains a core competitive strength. With established operations in Malaysia, Singapore and Taiwan, the Group is well positioned to serve customers across key semiconductor manufacturing hubs. While we remain focused on deepening our presence in these core markets, selective opportunities beyond our current footprint will continue to be evaluated in line with our disciplined growth approach. The semiconductor segment will remain the Group’s principal earnings driver, underpinned by the recurring nature of its services and the increasing technical complexity of semiconductor manufacturing. Coating process being performed under controlled cleanroom environment RFID scanning process for real-time parts monitoring Ares Green Technology Corporation (“AGTC”) AGTC delivered another strong year in FY2025, with revenue growing 17% and operating profit rising 21% year-on-year. Performance was driven by higher volumes, improved capacity utilisation and stronger operating leverage resulting in margin expansion. Its results were partially offset by a one-off foreign exchange loss for a proposed transaction that did not happen as well as the appreciation of the Ringgit against the New Taiwan Dollar which resulted in a negative translation effects at Group level. Despite these currency headwinds, the underlying business remained solid. The improvement reflected increased activity from key customers in advanced manufacturing technologies. During the year, AGTC worked closely with customers across the R&D and production ramp-up cycles, delivering tailored technical solutions to meet their evolving requirements.
FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 13 CHAIRMAN’S MESSAGE (CONT’D) Operational improvements remain a priority. Following the acquisition of a new facility that will house its Plant 3, AGTC will be relocating its flat panel display cleaning operations from Plant 1 to Plant 3, freeing up capacity in Plant 1 to further expand its semiconductor cleaning capacity. The relocation is expected to enhance workflow efficiency and improve utilisation across facilities. New cleaning lines were also installed in Plant 2 to support a specialised tool platform with qualification and production ramp-up expected to happen around the second and third quarters of 2026. In parallel, AGTC is evaluating opportunities to acquire additional land to accommodate longer-term growth. With expanded capacity and enhanced operational capabilities, AGTC is well positioned to support customers’ technology migration and production growth and continue to provide cleaning solutions and specialised surface treatment that are critical to equipment reliability and process stability in advanced manufacturing. Frontken (Singapore) Pte Ltd (Semiconductor) The Singapore semiconductor division recorded marginally lower revenue in FY2025 primarily due to reduced volume from some of its customers. That said, the operating environment is expected to improve gradually through 2026 supported by a broader recovery in semiconductor end-markets and ongoing industry advancements. With our customers expected to expand and increase their production capacities including the setting up of new plants, we believe that the demand for our services in the coming years will increase substantially. During the year, facility upgrades were undertaken to meet the requirements of a new customer. These enhancements position this division to support the process requirements and incremental service volumes as the customer progresses through R&D and production ramp-up phases. This is expected to provide a potential new revenue stream as soon as the second half of 2026 and increasing in the coming years. Attracting and retaining skilled technical personnel remains a key challenge. We continue to address this through proactive workforce planning and retention initiatives alongside ongoing productivity improvements. Greater emphasis will be placed on broadening our customer base, deepening technical competencies and maintaining margin discipline. Looking ahead, performance is expected to improve in the coming year, supported by recovering demand, contributions from the new customer and continued operational enhancements. Frontken Malaysia - Semiconductor (“FMSB”) FMSB operates precision cleaning facilities in Kulim, Kuching and Melaka, serving as an integral part of the wafer fabrication equipment component cleaning ecosystem within Malaysia’s semiconductor industry. Its performance improved in FY2025, driven by higher volumes from wafer fabrication customers and equipment manufacturers supported by better capacity utilisation and ongoing operational enhancements. This division also continued to support wide bandgap semiconductor production. During the year, capital investment focused on selective equipment upgrades to enhance operational stability and production efficiency while workflow optimisation and process consistency were strengthened across facilities. The competition for skilled labour remained an industrywide challenge and was managed through proactive retention initiatives and ongoing efforts to improve productivity at every level of the operation. Malaysia's semiconductor industry is well positioned for continued growth supported by sustained demand from advanced electronics, emerging technologies and the broader digitalisation of key industries. Ongoing fab expansions and production ramp-ups across the country are expected to translate into increased cleaning and refurbishment requirements, providing a favourable demand environment for FMSB's services. Pricing adjustments secured during the year are expected to support performance in the coming year while the division’s continued focus on operational discipline and close customer engagement provides a strong foundation for sustained performance going forward. Engineering The engineering segment delivered a satisfactory performance despite a softer operating environment. Deep technical expertise built over decades across the oil and gas, energy and general industries provided the segment with solid foundation, cushioning the impact of reduced project activity. According to the International Energy Agency (“IEA”), global upstream oil and gas investment is expected to reach approximately US$570 billion in 2025, reflecting sustained spending to maintain production and existing field infrastructure. This level of industry activity continues to underpin demand for our specialised maintenance, repair and engineering services. Amid market fluctuations and cost pressures, the segment maintained strict operational discipline, pursuing productivity improvements and cost management measures that enabled it to remain profitable while preserving long-standing customer relationships.
FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 14 CHAIRMAN’S MESSAGE (CONT’D) The outlook for engineering support services remains cautious given ongoing geopolitical uncertainties and market volatility. While maintenance requirements are expected to sustain baseline demand, activity levels may vary depending on developments in the broader operating environment. Just like what we are doing for our other business segment, we will continue to focus on operational efficiency, cost optimisation and selective project opportunities to maintain performance. TTES Frontken Integrated Services (“TTES”) TTES recorded lower revenue and reduced profitability in FY2025, primarily due to the deferment of several major project deliveries to 2026. Projects that commenced during the year are on track for completion in 2026 and are expected to support a revenue recovery. Despite the temporary slowdown, TTES continued to strengthen its service capabilities and broaden its offerings. Strategic collaboration with local and international partners was deepened, complementing in-house technical expertise and expanding the range of solutions available to customers. These partnerships are expected to open new work categories and reinforce long-term competitiveness. Capital investment during the year was measured and targeted at growth-related initiatives and efficiency upgrades. For FY2026, planned investments include improvements to existing service centres and the establishment of a new service centre in East Malaysia to strengthen coverage and enhance responsiveness. The oil and gas sector remains inherently volatile, facing pressures from global economic conditions, competition and supply chain uncertainties. In response, TTES will continue to diversify its market exposure, strengthen execution discipline and focus on productivity improvements to protect margins. For FY2026, priorities include accelerating delivery of existing work orders, maximising utilisation of current and newly enhanced assets and expanding participation in new project categories. Frontken (Singapore) Pte Ltd (Engineering) The Singapore engineering division experienced a softer year in FY2025, with revenue declining from the prior year and falling below expectations mainly due to reduced work scopes from several key oil and gas customers as well as lower service and repair activities. Operationally, manpower availability remained a persistent challenge. Replacing skilled technical personnel particularly in specialised roles requires time and remuneration expectations remain elevated in a competitive labour market. Higher raw material prices for certain jobs also affected cost structures, although these were mitigated through pricing adjustments. Entering FY2026, this business unit is encouraged by early signs of recovery in the oil and gas sector with stronger activity at the start of the year. Contract renewal discussions and expanded service scope negotiations are ongoing. Beyond its traditional oil and gas base, the unit continues to pursue opportunities in marine, electronics and other industrial segments with several potential longterm projects. This division remains focused on restoring momentum by strengthening core customer relationships, broadening its industry exposure and enhancing operational efficiency to support sustainable performance. Frontken Philippines Inc. (“FPI”) FPI delivered stable financial performance in FY2025, broadly in line with expectations. Revenue in local currency term improved year-on-year supported by increased participation in maintenance and specialised engineering works while profitability was sustained through disciplined cost management and operational efficiency. Business activity in FY2025 was primarily driven by power generation and oil and gas industries where FPI executed critical works including turbine and generator overhauls, diaphragm and valve servicing and precision machining across geothermal, gas-powered and upstream energy facilities. Fabrication, machining and specialised maintenance activities within the oil and gas sector contributed to revenue stability with early customer engagement enabling it to align resources and capabilities ahead of drilling and production-related requirements. Looking ahead, FPI expects the power generation and oil and gas sectors to remain the primary drivers of activity in FY2026. Development opportunities in coal-fired and hydroelectric power plants, ongoing drilling activities, gas field developments and the transition of LNG facilities into steady-state operations are anticipated to support a pipeline of larger and more technically demanding scopes. FPI will continue to strengthen its execution capabilities, deepen customer and technology partner relationship and invest in workforce development to position itself for higher-value opportunities. As the Philippines economy grows, demand for electricity, fuel and water is expected to sustain service and maintenance requirements across critical infrastructure.
FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 15 CHAIRMAN’S MESSAGE (CONT’D) LOOKING AHEAD As we enter 2026, Frontken marks its 30th anniversary of establishment. Over the past three decades, the Group has evolved from a specialised surface treatment provider into a trusted partner within the global semiconductor manufacturing supply chain – a testament to the dedication of our people, the trust of our customers and the continued support of our shareholders. The Group remains focused on strengthening its position as a provider of advanced precision cleaning and surface treatment solutions. The structural drivers of semiconductor demand including digitalisation, electrification, artificial intelligence and advanced manufacturing continue to support long-term industry growth. At the same time, increasing process complexity and tighter contamination standards further reinforce the value of our services within the ecosystem. The Group will continue to prioritise operational efficiency, automation and selective capacity expansion to support customer ramp-ups while maintaining margin discipline. Investment decisions will remain measured and aligned with demand visibility to support sustainable growth. We will continue to evaluate opportunities that complement our technical capabilities and strengthen our long-term positioning with a disciplined approach to risk, capital allocation and value creation. While global economic uncertainties and geopolitical developments remain factors to monitor, the Group’s strong balance sheet, recurring business model and long-standing customer relationships provide a resilient foundation. We remain cautiously optimistic about the year ahead and are confident in our ability to navigate evolving market conditions. APPRECIATION I would like to extend my sincere appreciation to our Board of Directors for their continued guidance, counsel and unwavering support throughout the year. To our management team and employees, thank you for your dedication, professionalism and commitment to operational excellence. Your perseverance and discipline have enabled the Group to deliver resilient and better results and build a stronger foundation for the future. To our valued customers, thank you for your partnership and continued trust in us. We remain committed to delivering consistent quality, reliability and technical excellence in support of your operations. To our business partners, regulators and government authorities across our operating jurisdictions, we are grateful for your continued cooperation and support. To our shareholders and stakeholders, we appreciate your confidence in us. We remain committed to disciplined growth, prudent capital management and sustainable value creation as we move forward together. Lastly, I would like to express our sincere appreciation to all our stakeholders for your unwavering support and trust in us. Your contributions play a vital role in our journey toward sustainable growth. As we move forward, we remain committed to building on our achievements, embracing new opportunities and delivering excellence in everything we do. Thank you for being part of our journey, and we look forward to achieving greater milestones together.
FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 16 FINANCIAL REVIEW REVENUE REVENUE (by location) 2025 RM’000 % 2024 RM’000 % % change in revenue Taiwan 449,064 74 383,372 67 17 Malaysia 87,832 14 102,456 18 -14 Singapore 53,875 9 65,935 12 -18 Others 16,989 3 17,442 3 -3 Total 607,760 100 569,205 100 7 The Group achieved a revenue of RM607.8 million for FY2025 representing a 7% increase over the previous year. This growth was primarily driven by our subsidiary in Taiwan which reported a 17% increase in revenue due to robust order intake and higher customer demand. Taiwan continued to be the largest contributor, contributing 74% of the Group’s total revenue. Conversely, revenue in Malaysia, Singapore and the Philippines experienced a decline. This was mainly due to slowdown in our customers’ business in the oil and gas industry, impacting our subsidiaries operating within that sector. RESULTS OF OPERATIONS in RM’000 2024 2025 Revenue 569,205 607,760 7% 2024 2025 Net Profit 136,806 154,228 13% 2024 2025 Profit Before Tax 198,430 223,737 13% 2024 2025 EBITDA 219,907 245,944 12% 2024 2025 Profit After Tax 151,081 168,508 12% 2024 2025 EBITDA Margin 38.6% 40.5% 1.9%
FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 17 FINANCIAL REVIEW (CONT’D) 2024 2025 Net Cash 486,144 804,206 65% 2024 2025 Free Cash Flow 141,820 160,200 13% 2024 2025 Working Capital 507,154 810,973 60% 2024 2025 Capital Expenditure 26,155 42,761 63% CASH FLOWS in RM’000 EARNINGS Following a strong performance in FY2024, the Group achieved new historical highs in both top-line and bottomline results in FY2025. The Group’s earnings before interest, tax, depreciation and amortisation (“EBITDA”) for FY2025 increased to RM246 million, a 12% increase from the preceding financial year. The Group’s profit after tax reached a record RM168 million, an increase of 12% compared to last year. This growth is a result of increased revenue from semiconductor segment and continual efforts to improve efficiency across the Group. Additionally, the Group’s profit attributable to shareholders also grew by 13% to RM154 million compared to last year. Consequently, the Group’s basic earnings per share increased from 8.67 sen to 9.65 sen, demonstrating consistent value creation for shareholders. The free cash flow increased from RM141.8 million to RM160.2 million in FY2025 mainly due to higher cash generated from operations. The net cash generated from operating activities in FY2025 increased to RM202.9 million compared with RM166.6 million in FY2024; tracking the Group’s profit growth. The net cash inflow for financing activities increased to RM200.7 million in year 2025 mainly due to the RM278.0 million in proceeds from the exercise of warrants, partially offset by RM63.6 million in dividend payments. Net cash used for investing activities increased to RM300.1 million in FY2025 mainly comprising RM248.9 million investment in money market funds and RM42.7 million in capital expenditure. FINANCIAL POSITION The Group’s financial position continues to strengthened with its shareholders’ fund increased by 44% to RM1,036.1 million as of 31 December 2025. The Group’s total assets increased by 32% to RM1,301.7 million primarily due to RM318.2 million increase in cash and bank balances, fixed deposits with licensed banks and money market fund investments. The Group’s liabilities decreased by RM4.0 million to RM211.7 million, driven by a reduction in trade and other payables.
FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 18 BOARD OF DIRECTORS’ PROFILE NG WAI PIN Chairman / Chief Executive Officer DR TAY KIANG MENG Executive Director / Chief Scientist / Chief Sustainability Officer Ng Wai Pin, formerly a Senior Independent Non-Executive Director of Frontken Corporation Berhad (“FCB”), was re-designated as the Chairman / Chief Executive Officer / Managing Director of the Company on 19 January 2012. He holds a Bachelor of Laws degree from University of Auckland and was admitted to the roll of barristers and solicitors of the High Court of New Zealand in 1989. He then practised as a barrister and solicitor in a leading legal firm in Auckland for a number of years before returning to Malaysia where he was admitted as an Advocate and Solicitor of the High Court of Malaya in 1993. He later became a Director and Chief Executive Officer of an oil and gas services company listed on Bursa Malaysia Securities Berhad with regional operations. From September 2005 to February 2009, he was the Chief Operating Officer of a company listed on the Singapore Exchange Limited and was seconded as the Chief Executive Officer of a company listed on the Australian Stock Exchange. He is also the Executive Chairman of Ares Green Technology Corporation, a public company in Taiwan, R.O.C., a subsidiary of FCB. In addition, he is also a non-executive director of GNS Tech Berhad. He has no family relationship with any other Directors or major shareholders of the Company. He has not been convicted of any offences within the past five years. He has no conflict of interest with the Company. Dr Tay Kiang Meng holds a Bachelor of Engineering (First Class Honours) in Manufacturing Systems Engineering from University of Portsmouth, and a Master of Science in Advanced Manufacturing Systems and a PhD in Engineering from Brunel University, United Kingdom. He is responsible for research and development (“R&D”) leading the Group’s technology roadmap, spearheading R&D activities, formalising the Group’s quality systems, developing critical manufacturing technologies for FCB’s semiconductor technology and advanced materials engineering, and exploring new technology opportunities for the Group. He has more than 20 years of professional experiences in technology development, R&D, and has led some of the most significant technology innovations in semiconductor-related manufacturing technology and advanced materials engineering. An engineer and scientist by training, Dr Tay began his professional R&D experience with research think tank, Gintic Institute of Manufacturing Technology, Singapore. Dr Tay has received honours and awards in many of his academic, research and technology development work. Dr Tay also sits on the board of the FCB’s subsidiary, Ares Green Technology Corporation. He has no family relationship with any other Directors or major shareholders of the Company. He has not been convicted of any offences within the past five years. He has no conflict of interest with the Company. Appointed to the Board on 10 April 2006 Appointed to the Board on 10 April 2006 Malaysian Singaporean Male Male Aged 60 Aged 61
FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 19 BOARD OF DIRECTORS’ PROFILE (CONT’D) NG CHEE WHYE Independent Non-Executive Director Chairman of Audit Committee and Remuneration Committee, Member of Nomination Committee Ng Chee Whye is a Chartered Accountant with the Chartered Accountants Australia and New Zealand and holds a Bachelor of Commerce degree from the University of Canterbury, New Zealand. He began his professional career with KPMG Peat Marwick in Auckland, New Zealand, gaining experience with clients from varied industries. Following which, he relocated closer to home to assume varied Senior Finance roles with various IT related entities in Singapore and Malaysia, namely Hewlett-Packard Singapore (Pte) Ltd, Creative Technology Ltd and Electronic Data Systems IT Services (M) Sdn Bhd. He subsequently moved on to assume Chief Financial Officer roles with various Wealth Advisory and Fund Management entities at Prudential Fund Management Bhd, AXA Financial Services and Nexus Financial Services Pte Ltd. He has no family relationship with any other Directors or major shareholders of the Company. He has not been convicted of any offences within the past five years. He has no conflict of interest with the Company. Appointed to the Board on 31 July 2019 Malaysian Male Aged 60 GERALD CHIU YOONG CHIAN Non-Independent Non-Executive Director Member of Nomination Committee Gerald Chiu Yoong Chian holds a BA (First Class Honours) in Engineering and Master’s in Engineering (with distinction), both from the University of Cambridge, United Kingdom. He joined Dymon Asia Capital in 2012, helped establish Dymon Asia Private Equity (“DAPE”), and is a member of DAPE’s investment committee. DAPE is focused on making private equity investments in Small and Medium Enterprises in South East Asia, and aims to contribute both capital and expertise to the companies it invests in. DAPE’s current funds are Fund II (USD450 million) and Fund III (USD650 million). DAPE has offices in Singapore, Malaysia and Thailand, and has invested in 36 companies and exited 18 companies in the region across these geographies. He has no family relationship with any other Directors or major shareholders of the Company. He has not been convicted of any offences within the past five years. He has no conflict of interest with the Company. Appointed to the Board on 31 July 2019 Singaporean Male Aged 52
FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 20 BOARD OF DIRECTORS’ PROFILE (CONT’D) KOH HUEY MIN Independent Non-Executive Director Member of Audit Committee, Nomination Committee and Remuneration Committee Koh Huey Min is a Fellow Member of the Chartered Institute of Management Accountants and a member of the Malaysian Institute of Accountants. She has more than 30 years of experience in finance, accounting, tax, treasury fields, marketing, business development, property investment and development and shopping complex operations. She was an Executive Director of Berjaya Assets Berhad (“BAssets”) from 23 June 2017 to 31 August 2021. Prior to that, she was attached to PricewaterhouseCoopers and subsequent to that, she worked in Hong Leong Group of Companies as an Accountant. She joined Berjaya Times Square (“BTSSB”), a wholly-owned subsidiary of BAssets in March 1994 as the Head of Finance and Admin. She was appointed as an Executive Director of BTSSB from 8 January 2013 to 31 August 2021. She anchored the overall property development and investment division and also managed the overall operations of Berjaya Times Square Group. She also held directorships in various subsidiaries of BAssets. Currently she is an Independent Non-Executive Director of Scientex Packaging (Air Keroh) Berhad and Paragon Union Berhad. She is the Chairman of the Audit Committee of Paragon Union Berhad and a member of the various board committees. She has no family relationship with any other Directors or major shareholders of the Company. She has not been convicted of any offences within the past five years. She has no conflict of interest with the Company. Appointed to the Board on 1 December 2021 Malaysian Female Aged 60 RAJA JASTINA ADLINA BINTI RAJA ARSHAD Independent Non-Executive Director Chairman of Nomination Committee, Member of Audit Committee and Remuneration Committee Raja Jastina holds an Economics degree from Liverpool University, England and a Masters in Marketing Communications from Westminster University, England. She is currently the Head of Astro Shaw and Vice President of Malay Nusantara Business at Astro. She spearheads Malaysia’s leading film studio which is behind the highest grossing local movies of all-time. Apart from championing local movie production, her all rounded portfolio includes heading strategy for Astro’s digital brand, driving revenue growth for Astro’s pay per view business, managing’s Astro’s on – air Talent Management business and Astro’s movie distribution division where she looks into IP exportation to regional and international market. She has close to 20 years of business management, media, marketing and branding experience where she has driven Astro’s Malay content strategy and built a strong business network both locally and internationally. She has no family relationship with any other Directors or major shareholders of the Company. She has not been convicted of any offences within the past five years. She has no conflict of interest with the Company. Appointed to the Board on 15 August 2023 Malaysian Female Aged 44
FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 21 SENIOR MANAGEMENT’S PROFILE MOHD SHUKRI BIN HITAM Managing Director of TTES Frontken Integrated Services Sdn Bhd (“TFIS”) TSAI YU MIN General Manager, Ares Green Technology Corporation (“AGTC”) Mohd Shukri Bin Hitam holds a Bachelor of Science in Aerospace Engineering, Bachelor of Science in Aeronautics (specialised in Aircraft Maintenance Engineering), Associate Science (Diploma) in Aircraft Maintenance Management Technology and Certificate in Airframe and Power Plant Mechanic. He has extensive working experience in engineering related fields. Prior to the incorporation of TFIS, he worked in various organisations as engineer and consulting specialist in rotating equipment and turbomachinery engineering and technical services. He is the Managing Director of TFIS and is responsible to oversee the overall operations of TFIS, engineering and technical services and directs various engineering and technical consultancy services at joint-service and consultancy companies. He has no family relationship with any other Directors or major shareholders of the Company. He has not been convicted of any offences within the past five years. He has no conflict of interest with the Company. Tsai Yu Min holds a Degree in Chemical Engineering from Taiwan Taichung Feng Chia University. He has extensive working experience in sales and marketing and general management and has been working with AGTC, a subsidiary of FCB, since 2000. Before his appointment as General Manager in 2013, he was the sales manager, responsible for formulation of sales and marketing strategies for AGTC. He has no family relationship with any other Directors or major shareholders of the Company. He has not been convicted of any offences within the past five years. He has no conflict of interest with the Company. Appointed in 2000 Appointed in 2013 Malaysian Taiwanese Male Male Aged 59 Aged 49
FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 22 SENIOR MANAGEMENT’S PROFILE (CONT’D) Save as disclosed on pages 18 to 22, none of the Directors and members of Key Senior Management hold any other directorship in any public company and/or listed issuer in Malaysia. WONG CHEE WAI Chief Financial Officer Wong Chee Wai is an associate member of Chartered Institute of Management Accountants and Chartered Accountant of Malaysian Institute of Accountants. He has more than 30 years of experience in audit, accounting, financial, tax, treasury and budget management in audit firm and various organisations. He joined Frontken Corporation Berhad in 2009 as senior finance manager and, subsequently, he was promoted to Financial Controller and Senior Financial Controller. He serves on the boards of several subsidiaries of Frontken Corporation Berhad. He has no family relationship with any other Directors or major shareholders of the Company. He has not been convicted of any offences within the past five years. He has no conflict of interest with the Company. Appointed in 2022 Malaysian Male Aged 55
FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 23 SUSTAINABILITY REPORT Message From Sustainability Committee DEAR STAKEHOLDERS, INTRODUCTION Since 1996, for nearly three decades, Frontken Group has been committed to building technology and providing services that empower our customers to embrace sustainability, fostering a positive impact on our environment, communities, and society at large. Our mission is anchored in integrating innovation, best practices, strategic partnerships, and streamlined processes — all united by a singular goal: advancing sustainability through actionable technology. Together with our customers, employees, and stakeholders, we strive to create measurable contributions that safeguard the planet and strengthen society. At Frontken Group, sustainability is not an afterthought — it is embedded in everything we do. Our unwavering commitment extends to: (a) Health and Safety: Protecting people and communities; (b) Environmental Responsibility: Reducing carbon footprints and conserving resources; (c) Corporate Accountability: Operating with transparency and integrity; (d) Sustainable Development: Aligning our efforts with the United Nations Sustainable Development Goals. We deliver products, services, and technologies that not only enhance sustainable business practices but also directly address global challenges such as climate change, resource efficiency, and social equity. We believe in the power of collaboration and collective action. By working hand‑in‑hand with our partners, we continue to drive innovation that supports a greener economy and a more resilient society. Our journey is ongoing, and our vision remains steadfast: to make a lasting, positive difference for generations to come. In fiscal year 2025 (“FY2025”), our journey was defined by both formidable challenges and meaningful opportunities. The global economy faced persistent fluctuations, with inflationary pressures, recessionary risks, and volatile interest rates shaping the business landscape. Supply chain disruptions — intensified by geopolitical tensions, natural disasters, and the imposition of sweeping tariffs that disrupted global trade — continued to test resilience across industries. At the same time, a tight labour market made attracting and retaining top talent increasingly difficult. Businesses also grappled with evolving regulatory frameworks, particularly those operating across multiple jurisdictions, while rising expectations for sustainability and climate action demanded significant investment and innovation.
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