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.
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