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.
RkJQdWJsaXNoZXIy NDgzMzc=