NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 122 23. RESERVES The Group The Company 2025 2024 2025 2024 RM RM RM RM Non-distributable: Foreign currency translation reserve (27,049,201) 12,327,555 - - Statutory reserve 68,608,040 56,140,782 - - Distributable: Retained earnings 554,516,595 484,120,107 2,798,343 33,651,943 596,075,434 552,588,444 2,798,343 33,651,943 Foreign currency translation reserve The foreign currency translation reserve arose from the translation of the financial statements of foreign subsidiaries whose functional currencies are different from the Group’s presentation currency. Statutory reserve The statutory reserve is maintained by the Group’s subsidiary in Taiwan in accordance with the regulations in that country. Warrants On 4 May 2021, the Company issued 524,137,195 warrants pursuant to bonus issue of warrants to all the entitled shareholders of the Company on the basis of one (1) warrant for every two (2) existing ordinary shares held in the Company. The warrants are constituted under a Deed Poll dated 14 April 2021 and each warrant entitles the registered holder the right at any time during the exercise period from 4 May 2021 to 3 May 2026 to subscribe in cash for one new ordinary share of the Company at an exercise price of RM4 each. These warrants were listed on the Bursa Malaysia Securities Berhad on 7 May 2021. The details in the movement of the Warrant 2021/2026 are as follows: The Group/The Company 2025 2024 Unit Unit At 1 January 514,845,745 524,137,195 Exercised (73,514,850) (9,291,450) At 31 December 441,330,895 514,845,745 Salient features of the Warrants 2021/2026 are as follows: (i) Each warrant will entitle the registered holder to subscribe for 1 new ordinary share in the Company at an exercise price of RM4 each subject to adjustment in accordance with the conditions stipulated in the Deed Poll; (ii) The warrants may be exercised at any time on or before the maturity date falling five years (2021/2026) from the date of issue of the warrants on 4 May 2021. Warrants not exercised after the exercise period will thereafter lapse and cease to be valid;
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