INTEGRATED ANNUAL REPORT 2025
INSIDE THIS REPORT WE ARE KENANGA 2 Kenanga at a Glance 4 Who We Are 5 Our Notable Recognitions in 2025 7 Corporate Structure 8 Corporate Information 1 LEADERSHIP STATEMENT 10 Chairman’s Message 14 Group Managing Director’s Management Discussion and Analysis 2 OUR VALUE CREATION APPROACH 23 Our Strategy 25 Economic Review 28 Key Risks, Mitigation and Opportunities 34 Value Creation Model 36 Stakeholder Engagement 37 Material Matters 3 COVER RATIONALE The cover presents an aerial view of interconnected roots and dense greenery, symbolising resilience through strong foundations and connectivity. The visible root network beneath the surface reflects Kenanga’s deep-rooted strength—often unseen, yet critical in navigating complexity and volatility. It serves as a reminder that true stability is built not on what is immediately visible, but on the enduring capabilities and principles that anchor the organisation through every market cycle. OUR REPORTS The Integrated Annual Report 2025, Corporate Governance Report 2025 and Sustainability Report 2025 are our primary reports. Supplementary information is available on our website: https://www.kenanga.com.my Integrated Annual Report Provides an overview of Kenanga Group’s financial performance, as well as business highlights of the year. Corporate Governance Report Provides an overview of Kenanga Group’s corporate governance and how it facilitates effective management to deliver long-term value for the Company. Sustainability Report Provides an understanding of Kenanga Group’s sustainability ambitions, initiatives and progress, as well as how it is integrated across the business.
SHAREHOLDERS’ INFORMATION 383 Analysis of Shareholdings 384 List of Thirty (30) Largest Shareholders 385 Substantial Shareholders’, Directors’ and Group Managing Director’s Interest in Securities 8 SHARIAH SCREENING DISCLOSURE 381 Disclosure of Financial Data for Shariah Screening 7 ADDITIONAL INFORMATION 386 Notice of Annual General Meeting 394 Statement Accompanying Notice of 52nd Annual General Meeting 395 Corporate Directory • Proxy Form 9 FINANCIAL STATEMENTS 153 Five (5)-Year Group Financial Summary 153 Five (5)-Year Group Financial Highlights 154 Directors’ Report 161 Statement by Directors 161 Statutory Declaration 162 Independent Auditors’ Report 168 Shariah Committee’s Report 169 Consolidated Statement of Financial Position 170 Statement of Financial Position 171 Statements of Profit or Loss and Other Comprehensive Income 173 Consolidated Statements of Changes in Equity 175 Statements of Changes in Equity 177 Statements of Cash Flow 179 Notes to the Financial Statements 6 OUR SUSTAINABILITY APPROACH 39 Sustainability Statement 4 HOW WE ARE GOVERNED 74 Founder Emeritus and Adviser’s Profile 76 Profiles of Directors 84 Group Managing Director’s Profile 85 Senior Management’s Profiles 94 Corporate Governance Overview Statement 130 Ethics and Compliance Statement 139 Statement on Risk Management and Internal Control 144 Audit Committee Report 5 Tuesday, 26 May 2026 11:00 a.m. The Grand Ballroom, InterContinental Kuala Lumpur 165, Jalan Ampang, 50450 Kuala Lumpur Wilayah Persekutuan, Malaysia 52ND ANNUAL GENERAL MEETING Kenanga is committed to making a difference in the environment. Play your part by opting to download a softcopy of our reports at https:// www.kenanga.com.my/investorrelations/agm2026 or by scanning the QR code above. Reference to pagination Reference to website
2 KENANGA INVESTMENT BANK BERHAD INTEGRATED ANNUAL REPORT 2025 KENANGA AT A GLANCE Today, Kenanga Investment Bank Berhad (“KIBB” or “Kenanga”) is the country’s leading independent investment bank with a continuous commitment towards driving collaboration, innovation, digitalisation and sustainability in the marketplace. Its ambitions include building a robust digital ecosystem that meets the needs of its clients and businesses. Its range of game‑changing products encompasses Malaysia’s fully online digital stockbroking platform, Rakuten Trade and a fully artificial intelligence (“AI”) robo-advisor, Kenanga Digital Investing. The Group has also introduced KDi GO, an all-inone financial SuperApp designed to transform the way individuals manage their finances. 500,000 clients Over 7,200 licensed representatives Over RM26.2 billion in assets under administration
3 01 / WE ARE KENANGA 02 03 04 05 06 07 08 09 Rakuten Joint Venture Kenanga entered into a joint venture with Japanese internet giant, Rakuten Securities, Inc. Launch of Remisier Portal Kenanga launched a new portal to enable remisiers to work remotely. Launch of Rakuten Trade Kenanga and Rakuten Securities, Inc. jointly launched Rakuten Trade, Malaysia’s first fully digital equity broker. In 2024, the joint venture partner of Kenanga has been changed from Rakuten Securities, Inc. to Rakuten Securities Holdings, Inc. Back Office Digitalisation Kenanga completed back office digitalisation to enhance efficiencies. KENANGA AT A GLANCE e-Wallet Launch with Merchantrade Asia Sdn Bhd (“Merchantrade”) Kenanga launched Kenanga Money, Malaysia’s first stockbroker e-wallet, with Merchantrade and later acquired a stake in the company. Partnership with Bay Group Holdings Sdn Bhd (“CapBay”) Kenanga entered into a partnership with CapBay to digitalise first-in-Malaysia factoring solution, unifying both private and public sector’s receivables under one (1) platform. KENANGA’S DIGITAL JOURNEY Launch of Myrra Token Platform Kenanga, in collaboration with the Stellar Development Foundation, launched Myrra, a blockchain-based platform enabling real-world asset tokenisation. 2016 2017 2019 2020 Launch of a Robo-Advisory Platform Kenanga launched a fully AI-driven robo-advisory platform, Kenanga Digital Investing. Signed Memorandum of Understanding with Ant Group Kenanga entered into a collaboration with Ant Group to develop Malaysia’s first Wealth SuperApp, geared to revolutionise wealth generation and management. Launch of KDi GO Kenanga launched KDi GO, an all-in-one Malaysia’s first Wealth SuperApp, aimed at redefining how individuals manage their finances. Strategic Investment in Halogen Capital Sdn Bhd (“Halogen Capital”) Kenanga expanded its footprint in digital asset innovation by becoming the largest institutional shareholder in Halogen Capital, Malaysia’s first and only licensed digital asset fund manager. 2024 2022 2025 2023 2026 A Stake in Kinetic DAX Sdn Bhd (formerly known as Tokenize Technology (M) Sdn Bhd) (“KDX”) Kenanga received approval from the Securities Commission Malaysia to acquire a stake in Digital Asset Exchange Platform, KDX, which subsequently became a subsidiary of KIBB in 2026. 2021
4 KENANGA INVESTMENT BANK BERHAD INTEGRATED ANNUAL REPORT 2025 We are nimble and quick to respond with creative, customised solutions to meet our stakeholders’ needs, both externally and internally. We are supported by an integrated network of colleagues and partners. We believe in consolidating our knowledge and working together for the best solutions. We are fully committed to ethical practices and strive to always maintain credibility in all that we do. Professionalism, integrity and transparency are values we hold dear. We are constantly pushing boundaries. Our pursuit of digital innovations will drive financial inclusion and create opportunities and possibilities for our stakeholders. Future-Facing Trustworthiness Collaboration WHO WE ARE Established for over fifty (50) years, Kenanga is a financial group in Malaysia with extensive experience in equity broking, investment banking, treasury, Islamic banking, listed derivatives, asset and wealth management, money lending, as well as digital financial solutions. OUR BRAND VALUES Agility
5 01 / WE ARE KENANGA 02 03 04 05 06 07 08 09 OUR NOTABLE RECOGNITIONS IN 2025 KENANGA INVESTMENT BANK BERHAD Bursa Excellence Awards 2024 • Best Retail Equities Participating Organisation (Investment Bank) (Champion) • Best Structured Warrants Issuer (Equity Warrants) (Champion) • Best Structured Warrants Issuer (Index Warrants) (Champion) • Chu Yee Seng @ Chew Yee Seng – Best Remisier (Champion) Global Banking & Finance Awards 2025 • Best Investment Bank Malaysia • Best Equity Broker Malaysia • Best Institutional Broker Malaysia • Best Market Maker Malaysia • Best Warrants Issuer Malaysia • Best Research House Malaysia FinanceAsia Awards 2025 • Most Innovative Use of Technology – Banks Asia Integrated Reporting Awards 2025 • Silver – Asia’s Best Integrated Report (First Time) The Edge Malaysia ESG Awards 2025 • Gold – Financial Services United Nations Global Compact Network Malaysia & Brunei ESG Select List 2025 • ESG Breakthrough Innovation SRP Asia Pacific Awards 2025 • Best Educational Initiative The Minority Shareholders Watch Group’s National Corporate Governance and Sustainability Awards 2025 • Top 20 Overall Excellence Award • Niche Cap Excellence Award United Nations Global Compact Network Malaysia & Brunei Forward Faster Sustainability Awards 2026 • Sustainability Governance & Strategy Award for Large Corporate (RM1B – RM5B) Euromoney Awards for Excellence 2025 • Malaysia Best Bank for ESG • Malaysia Best Bank for Diversity & Inclusion The Star ESG Positive Impact Awards 2024 • Silver Award (Large Companies Category) for Governance, Reporting & Transparency ESGBusiness Awards 2025 • Carbon Disclosure Award – Malaysia • Digital Inclusion Award – Malaysia National Annual Corporate Report Awards 2025 • Gold (Excellence Awards – Companies with Less Than RM2 Billion in Market Capitalisation) KENANGA FUTURES SDN BHD Bursa Excellence Awards 2024 • Best Overall Derivatives Trading Participant (Champion) • Best Institutional Derivatives Trading Participant (Champion) • Best Trading Participant: Commodity Derivatives (Champion) • Best Trading Participant: Equity & Financial Derivatives (Champion) CME Group • CME Group Broker Program Key Partner 2025
6 KENANGA INVESTMENT BANK BERHAD INTEGRATED ANNUAL REPORT 2025 OUR NOTABLE RECOGNITIONS IN 2025 Malaysia Best Impact Investing Manager Kenanga Investors Group Malaysia Best Equity Manager Kenanga Investors Group Malaysia Best Alternatives Manager Kenanga Investors Group Best Impact Investing Manager in ASEAN Kenanga Investors Group KENANGA INVESTORS BERHAD EQ8 CAPITAL SDN BHD Asia Asset Management’s 2026 Best of the Best Awards Best Equity Malaysia – Malaysia Provident Funds over 5 Years Kenanga Growth Fund Best Equity Malaysia Diversified – Malaysia Provident Funds over 3 Years Kenanga Growth Fund Series 2 MYR Class Best Equity Malaysia Diversified – Malaysia Provident Funds over 10 Years Kenanga Malaysian Inc Fund Best Mixed Asset MYR Balanced Malaysia – Malaysia Provident Funds over 10 Years Kenanga Managed Growth Fund Platinum Award - Charter Member Category Kenanga Investors Berhad FPAM Financial Planning Leadership Award 2025 Malaysia Best ESG Engagement Initiative Kenanga Investors Group Malaysia CEO of the Year Datuk Wira Ismitz Matthew De Alwis Chief Executive Officer/ Executive Director Malaysia CIO of the Year Lee Sook Yee Chief Investment Officer IFN Investor Best Balanced Mixed Assets Fund in Malaysia – MYR 2025 Kenanga Islamic Balanced Fund Kenanga Investors Berhad IFN Investor Best Balanced Mixed Assets Fund in Asia Pacific 2025 Kenanga Islamic Balanced Fund Kenanga Investors Berhad IFN Investor Best Global Balanced Mixed Assets Fund 2025 Kenanga Islamic Balanced Fund Kenanga Investors Berhad IFN Investor Awards 2025 IFN Investor Best ETF Fund in Malaysia 2025 Eq8 Dow Jones U.S. Titans 50 ETF Eq8 Capital Sdn Bhd IFN Investor Best ETF Fund in Asia Pacific 2025 Eq8 Dow Jones U.S. Titans 50 ETF Eq8 Capital Sdn Bhd IFN Investor Awards 2025 Malaysia ETF Rising Star Umar Alhadad (CEO, Eq8 Capital) Eq8 Capital Sdn Bhd Asia Asset Management ETF Awards 2026 Malaysia Leverage and Inverse ETF of the Year Kenanga KLCI Daily 1x Inverse Kenanga Investors Group Asia Asset Management ETF Awards 2026 LSEG Lipper Fund Awards 2026
7 01 / WE ARE KENANGA 02 03 04 05 06 07 08 09 Kenanga Investment Bank Berhad Registration No. 197301002193 (15678-H) Kenanga Trustees Berhad Registration No. 200301017657 (620077-K) Note: All these companies are incorporated in Malaysia except for Al Wasatah Al Maliah Company and Rakuten Trade Singapore Pte Ltd Kenanga Capital Sdn Bhd Registration No. 199701024604 (440102-V) 100% Kenanga Investors Berhad Registration No. 199501024358 (353563-P) 100% Kenanga Digital Sdn Bhd Registration No. 193801000015 (938-T) 100% ECML Berhad Registration No. 193001000016 (682-X) 100% Rakuten Trade Singapore Pte Ltd (Incorporated in Singapore) Registration No. 201433886E 100% Kenanga Futures Sdn Bhd Registration No. 199501024398 (353603-X) 100% Rakuten Trade Sdn Bhd Registration No. 199301011963 (266701-P) 50% Kinetic DAX Sdn Bhd (formerly known as Tokenize Technology (M) Sdn Bhd) Registration No. 201801010657 (1272672-M) 81.7% Eq8 Capital Sdn Bhd Registration No. 200701034939 (792968-D) 100% KUT Nominees (Tempatan) Sdn Bhd Registration No. 200201001942 (569605-D) 100% KUT Nominees (Asing) Sdn Bhd Registration No. 200201001939 (569602-K) 100% Kenanga Islamic Investors Berhad Registration No. 199701036457 (451957-D) 100% 20% 20% 20% 20% 20% SSSB Management Services Sdn Bhd Registration No. 199101009010 (219322-W) 100% K & N Kenanga Holdings Berhad Registration No. 199401017181 (302859-X) 100% Kenanga Private Equity Sdn Bhd Registration No. 199701007563 (423059-P) 100% Al Wasatah Al Maliah Company (Incorporated in the Kingdom of Saudi Arabia) Registration No. 1010241832 29.6% Kenanga Management & Services Sdn Bhd Registration No. 198001007478 (61262-V) 100% Kenanga Nominees (Tempatan) Sdn Bhd Registration No. 197301003326 (16778-M) 100% Avenue Kestrel Sdn Bhd Registration No. 198301001914 (97150-A) 100% Kenanga Nominees (Asing) Sdn Bhd Registration No. 199301025305 (280043-U) 100% CORPORATE STRUCTURE
8 KENANGA INVESTMENT BANK BERHAD INTEGRATED ANNUAL REPORT 2025 CORPORATE INFORMATION YAM TAN SRI DATO’ SERI SYED ZAINOL ANWAR IBNI SYED PUTRA JAMALULLAIL (“YAM Tan Sri Dato’ Seri Syed Anwar Jamalullail”) Chairman/ Independent Non-Executive Director ISMAIL HARITH MERICAN Non-Independent Non-Executive Director JEREMY NASRULHAQ Senior Independent Non-Executive Director BOARD OF DIRECTORS Chairman Members KANAGARAJ LORENZ • Jeremy Nasrulhaq • Choy Khai Choon • Chin Siew Siew GROUP BOARD DIGITAL INNOVATION & TECHNOLOGY COMMITTEE JEREMY NASRULHAQ • Kanagaraj Lorenz • Norazian Ahmad Tajuddin AUDIT COMMITTEE Chairman Members CHIN SIEW SIEW • Norazian Ahmad Tajuddin • Jeremy Nasrulhaq EMPLOYEES’ SHARE SCHEME COMMITTEE Chairman Members DR. GHAZALI JAAPAR • Dr. Mohammad Firdaus Mohammad Hatta • Dr. Fadillah Mansor SHARIAH COMMITTEE Chairman Members KANAGARAJ LORENZ Independent Non-Executive Director CHOY KHAI CHOON Non-Independent Non-Executive Director CHIN SIEW SIEW Independent Non-Executive Director NORAZIAN AHMAD TAJUDDIN Independent Non-Executive Director ANGELINE-ONG SU MING Independent Non-Executive Director CHIN SIEW SIEW • Jeremy Nasrulhaq • Ismail Harith Merican • Norazian Ahmad Tajuddin • Choy Khai Choon Chairman Members GROUP GOVERNANCE, NOMINATION & COMPENSATION COMMITTEE NORAZIAN AHMAD TAJUDDIN • Kanagaraj Lorenz • Choy Khai Choon • Angeline-Ong Su Ming GROUP BOARD RISK COMMITTEE Chairman Members
9 01 / WE ARE KENANGA 02 03 04 05 06 07 08 09 CORPORATE INFORMATION GROUP EXECUTIVE COMMITTEE JEREMY NASRULHAQ Email : jeremyn@kenanga.com.my SENIOR INDEPENDENT NON-EXECUTIVE DIRECTOR NORLIZA ABD SAMAD (CCM PC NO.: 201908002139) (MAICSA 7011089) GROUP COMPANY SECRETARY KENANGA INVESTMENT BANK BERHAD Registration Number: 197301002193 (15678-H) Level 17, Kenanga Tower 237, Jalan Tun Razak 50400 Kuala Lumpur Wilayah Persekutuan Malaysia Tel : +603-2172 2888 Fax : +603-2172 2999 URL : https://www.kenanga.com.my E-mail : kenanga@kenanga.com.my REGISTERED OFFICE BOARDROOM SHARE REGISTRARS SDN BHD Registration Number: 199601006647 (378993-D) 11th Floor, Menara Symphony No. 5, Jalan Prof. Khoo Kay Kim Seksyen 13 46200 Petaling Jaya Selangor Darul Ehsan Malaysia Tel: +603-7890 4700 Fax: +603-7890 4670 E-mail : BSR.Helpdesk@boardroomlimited.com Website : https://www.boardroomlimited.com SHARE REGISTRAR DATUK CHAY WAI LEONG Group Managing Director Kenanga Investment Bank Berhad CHAN TUCK KIONG Executive Director, Head of Group Equity Business Kenanga Investment Bank Berhad DATUK ROSLAN HJ TIK Executive Director, Head of Group Investment Banking and Islamic Banking Kenanga Investment Bank Berhad DATUK WIRA ISMITZ MATTHEW DE ALWIS Chief Executive Officer/ Executive Director Kenanga Investors Berhad CYNTHIA WOON CHENG YEE Head of Group Treasury Kenanga Investment Bank Berhad AZILA ABDUL AZIZ Chief Executive Officer/ Executive Director and Head of Listed Derivatives Kenanga Futures Sdn Bhd CHEONG BOON KAK Group Chief Financial and Operations Officer Kenanga Investment Bank Berhad CHOO SIEW FUN Group Chief Compliance and Ethics Officer Kenanga Investment Bank Berhad NUZURUL AHMADY BIN SARIFUDIN Group Chief Human Resource Officer Kenanga Investment Bank Berhad TAI YAN FEE Group Chief Risk Officer Kenanga Investment Bank Berhad WOO KING HUAT Chief Credit Officer Kenanga Investment Bank Berhad VAITHIYANATHAN MADAVAN Chief Operations Officer Kenanga Investment Bank Berhad LOW JIA YEE Chief Technology Officer Kenanga Investment Bank Berhad ERNST & YOUNG PLT (202006000003 (LLP0022760-LCA) & AF 0039) Chartered Accountants Level 23A, Menara Milenium Jalan Damanlela Pusat Bandar Damansara 50490 Kuala Lumpur Wilayah Persekutuan Malaysia AUDITORS AmBank (M) Berhad CIMB Bank Berhad Malayan Banking Berhad RHB Bank Berhad Standard Chartered Bank (Malaysia) Berhad Public Bank Berhad Citibank Berhad PRINCIPAL BANKERS BURSA MALAYSIA SECURITIES BERHAD Main Market: Financial Services Stock Name: KENANGA Stock Code: 6483 Listing Date: 2 November 2016 STOCK EXCHANGE LISTING
KENANGA INVESTMENT BANK BERHAD 10 INTEGRATED ANNUAL REPORT 2025 CHAIRMAN’S MESSAGE Dear Shareholders, The year 2025 was characterised by continued uncertainties across global markets, shaped by geopolitical tension and shifting trade and tariff policies. Volatility persisted as rapid economic, technological and regulatory developments continued to redefine how financial institutions operate and compete. Within this context, the ASEAN region demonstrated relative resilience. Structural strengths—including favourable demographics, regional supply chain repositioning and emphasis on sustainability and digitalisation, provided momentum even as global headwinds endured. As Malaysia assumed the ASEAN Chairmanship in 2025, the region advanced several integration priorities, including steps towards the ASEAN Economic Community Strategic Plan 2026–2030, focused on strengthening economic cooperation, improving regulatory alignment and supporting a more interconnected regional marketplace. Underpinned by these dynamics, Malaysia saw steady domestic economic activity supported by policy continuity and targeted reforms, although market participants remained cautious in view of external risks. Against this backdrop, Kenanga Investment Bank Berhad (“Kenanga” or “KIBB” or “the Company”) and its Group of Companies (“Kenanga Group” or “the Group”) navigated the year with a clear emphasis on resilient stewardship and sound governance. Our priorities remained anchored in safeguarding institutional integrity, maintaining strong oversight and ensuring that decisionmaking continues to be guided by discipline rather than short-term sentiment. YAM TAN SRI DATO’ SERI SYED ANWAR JAMALULLAIL Chairman/ Independent Non-Executive Director
02 / LEADERSHIP STATEMENT 01 03 04 05 06 07 08 09 11 Driving Sustainable Impact In 2025, the Board continued to advance sustainability as a driver of strategic strength and long‑term value creation. While sentiments on Environmental, Social and Governance (“ESG”) topics may have appeared polarised globally, ASEAN in particular, has continued to stay the course, resolute in blending scientific rigour with pragmatic transition pathways suited to the region’s diverse economies. The Group continues to maintain this same focus, recognising sustainability as the intersection of growth, inclusion, risk management and decarbonisation. A key development during the year was the introduction of the Kenanga Group Sustainability Risk Management Framework, providing a structured approach to identifying and managing sustainability‑related risks and opportunities. Complementing this, the Decarbonisation Roadmap outlines the Group’s strategy for reducing emissions and addressing transition risks while maintaining operational efficiency. During the year, we initiated installation of solar panels, electrification of company‑owned vehicles and the transition of our headquarters, Kenanga Tower, to green electricity under the TNB Green Energy Scheme. Kenanga Tower now operates 90% on green energy, a significant milestone in lowering the Group’s operational carbon footprint. At the same time, preparations also commenced for the forthcoming National Sustainability Reporting Framework alignment, ensuring disclosures evolve in line with national and global expectations. These efforts reflect the progress that will inevitably lead to higher standards of transparency, comparability and accountability, reinforcing the Group’s long‑standing commitment to reporting excellence. Overview Amid a demanding operating environment, performance for the year reflected the realities faced by the Group. For the financial year ended 31 December 2025 (“FY2025”), the Group recorded Revenue of RM865.3 million, with a Profit Before Tax and Zakat of RM73.6 million and a Net Profit of RM50.0 million. These outcomes were shaped by softer market activity, more selective market participation and cumulative effects of prolonged volatility across capital markets. Despite lower earnings, the Group continued to operate from a position of balance sheet strength. Capital adequacy and liquidity positions were maintained at prudent levels, providing stability through the cycle and flexibility for future opportunities. In line with this performance, the Board is pleased to declare a dividend of 5.0 sen per share for FY2025. Championing Trust and Integrity The Group’s commitment to strong corporate governance remains fundamental to building long‑term resilience and stakeholder confidence. Guided by a robust governance framework and a culture of accountability, the Group continues to uphold highest standards of transparency and ethical conduct. In 2025, Kenanga Group was once again recognised by the Minority Shareholders Watch Group, marking the second consecutive year in which it received top honours—Top 20 Overall Excellence and the Niche Cap Excellence at the prestigious National Corporate Governance and Sustainability Awards. These accolades reflect the outcome of a comprehensive evaluation encompassing governance quality, sustainability practices and Board effectiveness, benchmarked against globally recognised best‑practice standards. While the awards stand as industry recognition, they also affirm the Board’s ongoing commitment to principled stewardship, disciplined governance and thoughtful oversight. During the year, the Group continued to champion integrity and ethical behaviour through awareness and engagement. The annual Fraud Awareness Week and Compliance Awareness Week were rolled out to strengthen internal vigilance while fostering dialogues with industry leaders and practitioners. These programmes deepen organisational understanding of fraud risks, regulatory expectations and compliance responsibilities, further instilling a culture of principled conduct. As the Group continued to elevate the quality and transparency of its corporate reporting, it was honoured with the Gold Award at the National Annual Corporate Report Awards, and the Silver Award for Asia’s Best Integrated Report at the Asia Integrated Reporting Awards. These distinctions affirm the commitment and emphasis we place on delivering clear and meaningful disclosures, with integrity in presenting both financial and sustainability performance. CHAIRMAN’S MESSAGE
KENANGA INVESTMENT BANK BERHAD 12 INTEGRATED ANNUAL REPORT 2025 CHAIRMAN’S MESSAGE Furthermore, 2025 marked the launch of ThinkIMPACT, a sustainability campaign themed “Leading with Purpose, Inspiring Sustainable Impact”. Through interactive panels and workshops, employees developed a deeper understanding of sustainability issues and skills to develop compelling narratives on the Group’s sustainability initiatives and ambitions. Supplier and vendor workshops were also introduced to enhance understanding of supply chain expectations. The campaign further strengthened internal ownership, as well as ensured efforts that inspire action reach across all stakeholders. These strides, which kept us on track, charted not just progress but also recognition for the Group. As in previous years, we frequently found ourselves among industry leaders across various sectors, receiving commendations for the work we continue to build on together. In 2025, we were awarded by esteemed bodies such as The Edge, The Star, the United Nations Global Compact Network Malaysia & Brunei, Euromoney, Asia Asset Management and ESG Business, affirming the Group’s commitment and progress in sustainability. Empowering People and Communities During the year, investment in the Kenanga Emerging Leadership Programme, aimed at deepening management capability and reinforcing succession planning, remained central to our performance management priorities, supporting the organisation’s readiness for future growth. Fostering an engaged and connected workforce also remained a priority. Throughout the year, a range of initiatives— including team-building, festival-themed engagements, wellness‑focused programmes and professional development opportunities—supported collaboration, belonging, and a shared sense of purpose, cultivating a motivated workforce that plays an active role in shaping the Group’s culture and performance. This same commitment to empowerment extends to the communities we serve. The Group’s approach to social impact is rooted in a long‑standing philosophy of supporting social enterprises and marginalised communities through sustained partnerships. Over the past decade, Kenanga Group has delivered meaningful and measurable change, contributing over RM1 million to community‑focused initiatives and positively impacting the lives of over 10,000 individuals through programmes that promote inclusion. The Group continues to support Dialogue Includes All, a social enterprise which advocates for an inclusive society between the abled and disabled. Through this partnership, our employees gain exposure to the lived experiences of persons with disabilities, reinforcing the Group’s commitment to accessibility. Similarly, the Group’s ongoing partnership with Silent Teddies Bakery, a social enterprise operated by hearing‑impaired youth, supports economic participation within underrepresented communities. Our role in enabling the set-up of its expanded facilities, which now includes a learning centre, training workshop and bakery café, illustrate how sustained collaboration can help scale impact and broaden access to skills development and income‑generating opportunities. Employee volunteerism and employee‑led contributions continued to shape the Group’s social impact agenda in 2025. During the year, employees rallied together to support Pertubuhan Rahoma Darul Fakir Malaysia, an all‑female orphanage housing girls aged seven (7) to seventeen (17), through a Back‑to‑School donation drive for essential school supplies and full-year sponsorship of school transportation. The Group also deepened its engagement with Pertiwi Soup Kitchen, where employees helped prepare and distribute meals to the homeless. Together, these initiatives reflect a social responsibility philosophy centred on continuity, collaboration and the development of human potential. Looking Ahead For over five (5) decades, the Group has navigated both strong markets and challenging cycles, each reinforcing our resolve and deepening our understanding of the industry. In a year that tested confidence, our long-held principles of prudence, consistency and practicality have helped sustain trust and keep us committed to value creation over the long run. The operating environment will continue to present both challenges and opportunities. Guided by prudent stewardship, strong governance, and strategic oversight, I am confident, that the Group is well-positioned to navigate evolving dynamics and make the most of emerging opportunities.
02 / LEADERSHIP STATEMENT 01 03 04 05 06 07 08 09 13 CHAIRMAN’S MESSAGE As we shape the course ahead, Kenanga Group will continue to build on its core capabilities, advance digital initiatives, embed sustainability more deeply into the way we work, as well as invest in the development of our people to drive long-term performance. In doing so, the Group remains adaptable, forward-looking, and committed to delivering meaningful outcomes for shareholders and stakeholders alike. Board Movement In November 2025, Mr. Luk Wai Hong, William (“William”) retired from the Board as a Non-Independent Non-Executive Director, concluding more than a decade of dedicated service since his appointment in 2013. During his tenure, William played an integral role on the Group Board Risk Committee and the Group Board Digital Innovation & Technology Committee, providing guidance that strengthened governance and strategic direction. His insights, experience and unwavering commitment have been invaluable in shaping the Group’s approach to risk management, digital innovation, and sustainable growth. On behalf of the Board, we extend our sincere gratitude for his counsel, professionalism and significant contributions. We wish him continued success in his future endeavours. Acknowledgements On behalf of the Board, I extend my sincere appreciation to our Founder Emeritus and Adviser, YM Tan Sri Dato’ Paduka Tengku Noor Zakiah Tengku Ismail, whose vision continues to guide our journey. I also thank my fellow Board members for their guidance and dedication throughout the year. To our Management team and employees, your commitment, professionalism and innovation have been central to the Group’s performance. Your efforts in advancing initiatives that strengthen our foundations are truly appreciated. To our valued clients, business partners, suppliers and shareholders, thank you for your continued trust and support. I also extend my gratitude to our regulators, including Bank Negara Malaysia, Bursa Malaysia Berhad and the Securities Commission Malaysia, for their steady guidance and collaboration. Together, we will build on the foundations laid in 2025, advancing Kenanga Group’s mission of sustainable growth, responsible stewardship and long-term value creation. YAM TAN SRI DATO’ SERI SYED ANWAR JAMALULLAIL Chairman
KENANGA INVESTMENT BANK BERHAD 14 INTEGRATED ANNUAL REPORT 2025 GROUP MANAGING DIRECTOR’S MANAGEMENT DISCUSSION AND ANALYSIS Dear Shareholders, Global financial markets experienced heightened volatility in 2025, driven largely by uncertainties surrounding the United States (“US”) trade tariffs and their potential implications for global growth. During the year, Malaysia’s role as ASEAN Chair reinforced its position as a stable and credible financial and investment hub amid elevated global uncertainty. This supported continued interest in Malaysia as a destination for longer-term capital, particularly in areas aligned with regional supply chain diversification and sustainabilitylinked investments. These longer-term structural positives, however, did not immediately translate into higher levels of domestic equity trading. In Malaysia, equity market conditions stayed subdued for much of the year, although indications of stabilisation emerged in the later half. Total trading volumes on Bursa Malaysia declined by approximately 27% year-on-year, with retail investors particularly affected as estimated trading volumes contracted between 30% and 40%. Against this landscape, Kenanga Investment Bank Berhad (“Kenanga” or “KIBB” or “the Company”) and its Group of Companies (“Kenanga Group” or “the Group”) remained focused on delivering resilient performance and navigating the evolving market environment with prudence and strategic focus. DATUK CHAY WAI LEONG Group Managing Director RM865.3 million Revenue RM73.6 million Profit Before Tax RM69.1 million Operating Profit 5.0 sen Dividend Declared Financial Highlights from 2025
02 / LEADERSHIP STATEMENT 01 03 04 05 06 07 08 09 15 Page 17 Page 18 Page 19 Page 20 Stockbroking Investment Banking Asset and Wealth Management Listed Derivatives Business SEGMENTAL REVIEW GROUP MANAGING DIRECTOR’S MANAGEMENT DISCUSSION AND ANALYSIS Overview For the financial year ended 31 December 2025 (“FY2025”), the Group recorded total Revenue of RM865.3 million and Profit Before Tax and Zakat of RM73.6 million, with Net Profit amounting to RM50.0 million. These results reflect the realities of a challenging market environment, characterised by cautious investor sentiment that softened brokerage and management fee income. Nonetheless, improved trading and investment income, higher net interest income and the recovery of credit provisions supported a stable overall performance, reinforcing our commitment to disciplined execution. Across the Group, key business segments delivered relatively strong operational performance in 2025, demonstrating management agility, market responsiveness and a strong capacity to capitalise on opportunities despite a complex operating landscape. The Investment Banking division achieved a robust performance during the year, underpinned by strong Treasury results and the recovery of credit provisions. The stronger Treasury business was supported by favourable interest rate conditions and active management of foreign exchange exposures within a stable domestic monetary policy environment, enabling the team to deliver risk-adjusted outcomes across trading and liquidity activities. Notably, the Group’s Listed Derivatives business delivered another standout performance, recording its strongest profit in over a decade, driven by sustained market volatility and high participation in key contracts, particularly the Bursa Malaysia Derivatives Crude Palm Oil Futures. This outstanding result is attributable to the ongoing success in broadening market participation through client engagement and efforts to enhance product accessibility and market education, set against a Malaysian derivatives market that achieved a second consecutive year of record volumes, with total annual trading volumes reaching 22.3 million contracts. Our focus on strategic execution is complemented by the ongoing integration of sustainability considerations across operations and decision-making. This approach continues to be recognised externally, with Kenanga Group remaining a constituent of the coveted FTSE4Good Bursa Malaysia Index with an ESG score of 4.3, which placed the Group as the highest scoring financial institution on the Index and in the 94th percentile among Malaysian public listed companies. Among the many accolades we received during the year, we were recognised at the Minority Shareholders Watch Group’s National Corporate Governance & Sustainability Awards, the National Annual Corporate Report Awards and The Edge Malaysia ESG Awards, underscoring our dedication to responsible value creation and building the Group’s long-term resilience. Financial Position As at 31 December 2025, the Group and Company maintained strong Total Capital Ratios of 21.8% and 24.3%, respectively, well above Bank Negara Malaysia (“BNM”)’s minimum regulatory requirement of 10.5%, which includes a capital conservation buffer of 2.5% if imposed. Our liquidity position remained robust, with a Liquidity Coverage Ratio of 201%, exceeding the 100% regulatory threshold, while our Net Stable Funding Ratio stood at 120%, also surpassing the mandatory minimum. The Group sustained its A+ and MARC-1 ratings from the Malaysian Rating Corporation Berhad (“MARC”), with a positive long-term rating outlook, reflecting our ongoing efforts to strengthen financial resilience and maintain our standing in the market. Additionally, our subsidiaries, Kenanga Investors Berhad (“KIB”) and Kenanga Islamic Investors Berhad (“KIIB”), retained their MARC IMR-2 ratings, underscoring our disciplined investment processes and sound risk management practices.
KENANGA INVESTMENT BANK BERHAD 16 INTEGRATED ANNUAL REPORT 2025 Strategic Collaborations and Asset Tokenisation Innovation through collaboration remains a defining feature of how Kenanga Group strengthens its capabilities and delivers differentiated solutions to clients. By working closely with established financial institutions, fintech partners and technology providers such as Rakuten Trade, Merchantrade and Ant Group, the Group continues to extend its reach, enhance offerings and develop forward-looking solutions in digital finance. In 2025, the Group helped shape industry thinking on digital assets through the publication of Project Juara: Malaysia’s Asset Tokenisation Opportunity, a white paper produced through its asset and wealth management arm, KIB, in collaboration with Saison Capital Pte Ltd, Helicap Labs Pte Ltd and Satori Research Ltd. The paper explored how asset tokenisation could reshape Malaysia’s capital markets by broadening access to previously less accessible investment opportunities, reducing minimum investment thresholds, and enhancing transparency, governance and investor protection. Its release garnered attention from industry participants, regulators, and investors alike, highlighting Kenanga Group’s role in shaping the national agenda and providing clients with more flexible, inclusive and transparent solutions that complement traditional investment channels. Further strengthening its capabilities, the Group expanded its digital asset footprint through a strategic investment in Halogen Capital Sdn Bhd, a licensed digital asset management firm, via our private equity arm, Kenanga Private Equity Sdn Bhd. Through this investment, Kenanga Group became the largest institutional shareholder with a 14.9% stake, enhancing our understanding of digital asset structures and operational models while creating a pathway to develop tokenised investment solutions aligned with regulatory expectations and client needs. At the time of this statement, Kenanga Group marked another significant milestone with the launch of Myrra, a dedicated token platform developed in collaboration with Stellar Development Foundation (“Stellar”), a leading global non-profit that supports the Stellar blockchain network. Leveraging Stellar’s proven, compliance‑forward infrastructure—adopted internationally for institutional‑grade asset issuance, cross‑border settlement and large‑scale financial inclusion initiatives—the platform houses the first tokenised unit trust funds in Malaysia, namely the Kenanga Money Market Fund and the Kenanga Islamic Money Market Fund managed by KIB. As the first tokenised funds to go live in the country, this initiative broadens investor accessibility while enhancing transparency, operational efficiency and future scalability. Together, these advances form a core building block of an integrated digital asset ecosystem that positions Kenanga Group at the forefront of Malaysia’s transition towards a more modern and digitally-enabled capital market. Scaling the Digital Ecosystem A key strategic priority for the Group is further refining its digital ecosystem that enhances client experience and complements our core capabilities. At the centre of this effort is KDi GO, the Group’s digital storefront that provides clients with a single, consolidated view of their financial relationships. By giving clients easier access to information and investment tools, the platform supports more informed decision-making and deeper engagement across the Group’s products and services. Throughout the year, enhancements were made to improve onboarding efficiency, platform stability and the overall user experience. These improvements reduce friction for clients and provide a seamless and reliable service as they navigate their wealth and investment options. KDi GO continues to broaden access to investing and wealth solutions, particularly among mass affluent clients. The platform recorded a 45% year-on-year increase in users, marking one of its strongest periods to date, underscoring a rising appeal for more sophisticated, transparent and self-directed wealth solutions. Adoption remains robust, as its user base continues to grow among individuals entering their peak earning and wealth-accumulating years, with more than 50% of its users above the age of 30, and the 30-40 year-old cohort accounting for 38% of the user population. This representation underscores the Group’s commitment to lowering barriers to entry and fostering earlier, more intentional participation in wealth creation among retail investors. In line with this, a blueprint has been developed to steer the expansion into more sophisticated offerings catering to the mass affluent segment and above. GROUP MANAGING DIRECTOR’S MANAGEMENT DISCUSSION AND ANALYSIS
02 / LEADERSHIP STATEMENT 01 03 04 05 06 07 08 09 17 In parallel, to further expand our digital ecosystem, Kenanga Group has taken steps to enhance its investment in Kinetic DAX Sdn Bhd (formerly known as Tokenize Technology (M) Sdn Bhd) (“KDX”), a fully licensed and regulated digital exchange. We have increased our equity stake in KDX to 81.7%, reflecting our long‑term commitment to the development of digital and tokenised assets in Malaysia. We intend for KDX to form a core part of our digital asset journey, serving as a secondary market for listed tokenised assets. Over time, this is expected to facilitate 24/7 trading and fractional ownership of real‑world assets, broadening investor access and supporting our efforts to expand tokenised investment solutions within Malaysia’s capital markets. Alongside these strategic initiatives, the Group continued to emphasise operational efficiency and cost discipline. Key initiatives included optimisation across technology, selective use of offshore support and the centralisation of operational processes. These measures balanced cost control with operational stability, regulatory compliance and readiness to capitalise on strategic opportunities. SEGMENTAL REVIEW In 2025, the Group’s Stockbroking division navigated a year of softer market activity and heightened competition, particularly in the retail segment. It remained focused on sustaining market presence, deepening client relationships, and strengthening operational discipline, while implementing initiatives to enhance engagement and support long-term competitiveness. Amid these challenging conditions, the business broke-even, delivering a profit before tax of RM0.05 million in FY2025 compared with RM15.4 million in the prior year, reflecting the impact of subdued market activity. Despite the softer environment, the division maintained a retail segment market share of 25.1%, reflecting its leadership among active retail investors. Continued emphasis on cost discipline, recovery initiatives, and diversification of income streams also strengthened underlying financial resilience, helping to cushion market pressures and support operational stability. Furthermore, several initiatives contributed to stronger client engagement. The “Wake Up to Gold” campaign successfully reactivated 2,320 dormant accounts, against 670 in 2024, boosting retail activity across the client base. At the same time, branch rationalisation initiatives consolidated key operational processes at our headquarters, leveraging on digital platforms to streamline workflows. These measures allowed client-facing staff to focus more effectively on service delivery, supported by centralised operational resources, improving both efficiency and service quality. Frontline distribution capabilities were also strengthened through the selective hiring of additional remisiers and dealers, expanding client coverage and reinforcing its on-ground presence across key markets. The Equity Derivatives segment continued to be a key growth driver, retaining its position as Malaysia’s largest issuer of structured warrants. It ranked first in both equity and index warrants by traded value (RM127 billion), representing a market share of 52%. During the year, it launched its first Hang Seng China Enterprises Index structured warrants under its flagship brand, NagaWarrants by Kenanga. This marked a strategic expansion of its East Asia footprint, giving Malaysian investors diversified access to two (2) of Hong Kong’s most influential indices and new opportunities to tap into China’s financial and technology sectors. Following these efforts, the Stockbroking business continued to be recognised for its leadership and product excellence. Building on its multi-category wins at the Bursa Excellence Awards 2024, the division further strengthened its reputation through a series of accolades where it was named Best Retail Equities Participating Organisation: Investment Bank (Champion), Best Structured Warrants Issuer: Equity Warrants (Champion), and Best Structured Warrants Issuer: Index Warrants (Champion). At the FinanceAsia Awards 2025, it received the award for Most Innovative Use of Technology (Banks), reflecting its commitment to technology-enabled client solutions. The Global Banking & Finance Awards 2025 recognised the Stockbroking division across multiple categories, including Best Investment Bank Malaysia, Best Equity Broker Malaysia, Best Institutional Broker Malaysia, Best Market Maker Malaysia, Best Warrants Issuer Malaysia, and Best Research House Malaysia. Rounding off the year’s achievements, it was also honoured at the SRP Asia Pacific Awards 2025 with the award for Best Educational Initiative. GROUP MANAGING DIRECTOR’S MANAGEMENT DISCUSSION AND ANALYSIS Stockbroking
KENANGA INVESTMENT BANK BERHAD 18 INTEGRATED ANNUAL REPORT 2025 Kenanga Group’s Investment Banking division delivered a robust performance in 2025, with profit before tax increasing to RM22.4 million from RM6.2 million in the previous year. The growth was anchored by the strong contribution of Group Treasury, benefitting from constructive interest rate dynamics and active management across its trading activities. Beyond Group Treasury, the division’s performance also reflects disciplined execution across its teams, sustained advisory activity and a continued focus on delivering value‑driven solutions for clients. The Corporate Finance and Equity Capital Markets teams successfully executed the listing of PEOPLElogy Berhad, a digital learning and human capital development solutions provider on the ACE Market of Bursa Securities. They also supported several capital market transactions, including joint underwriter, joint placement agent, joint bookrunner and advisory roles across engagements with ICT Zone Asia Berhad, PMCK Berhad, Oxford Innotech Berhad, the MMC Ports Initial Public Offering, and the private placement by MN Holdings, which raised RM89 million to support its working capital requirements. In addition to these capital market transactions, it also acted as the independent adviser for several major corporate exercises. These included the proposed acquisition of Lianson Fleet Group Berhad, proposed regularisation plan undertaken by Vantris Energy Berhad (formerly known as Sapura Energy Berhad), the unconditional voluntary takeover offer for FGV Holdings Berhad, the proposed exemptions pursuant to the rights issue by Parkwood Holdings Berhad, Genting Malaysia Berhad’s conditional voluntary takeover offer, and the privatisation of Apex Healthcare Berhad. In Debt Capital Markets, the team acted as joint lead manager and played a major role in the book building for Federal Land Development Authority (FELDA)’s RM1.0 billion issuance under its existing RM9.9 billion Sukuk Murabahah Programme. For corporate deals, it acted as principal adviser, lead arranger, lead manager and facility agent for transactions such as the RM1.0 billion unrated Sukuk programme for Berjaya Japan Developments Berhad, the RM200.0 million bond programme for Berjaya IPS Equity Sdn Bhd (formerly known as Inter-Pacific Capital Sdn Bhd), the RM150.0 million asset-backed securities bond programme for KLG Capital Berhad, backed by KL Gateway Mall, and KIBB’s RM500.0 million Tier 1 programme, underscoring the division’s ability to structure and execute complex financing solutions. Within Islamic Capital Markets, the Islamic Markets team, supported by the Shariah Committee, continued to act as Shariah Adviser for KIB’s Islamic funds and private mandates. Responding proactively to developments in blockchain and tokenisation, the team also initiated programmes to equip staff with foundational knowledge of real-world asset tokenisation, decentralised finance, and related Shariah considerations, with the aim of offering Shariah Advisory and CPE training courses on these fields in the future. The Corporate Banking loan book remained steady and closed at approximately RM726 million as at end-December 2025. Despite compressed net interest margins due to competitive funding costs, the division remained focused on structuring tailored financial solutions to meet client needs. Our Corporate Banking team continues to work closely with our Corporate & Institutional Coverage team, as well as other business units, to replenish and grow the loan book while maintaining disciplined portfolio management and prudent risk practices. Rakuten Trade Sdn Bhd, the Group’s joint venture with Rakuten Securities Inc., further enhanced digital capabilities and retail investor engagement. Assets under administration reached approximately RM4.3 billion as of December 2025, with client debut activation at 36%. Key initiatives for the year included promotional brokerage rates and the introduction of US trade amalgamation—a new feature that automatically combines buy or sell trades of the same US stock within the same trading day, the first of its kind in Malaysia—improving execution efficiency, trading convenience and cost competitiveness for retail investors. Looking ahead to 2026, the division will continue strengthening its core franchise with a greater focus on retail engagement through the newly established Equity Product Origination (“EPro”) department. EPro will serve as its next engine of innovation, expanding its capabilities beyond traditional equities into a broader suite of accessible and innovative derivative product solutions for the retail market. GROUP MANAGING DIRECTOR’S MANAGEMENT DISCUSSION AND ANALYSIS Investment Banking
RkJQdWJsaXNoZXIy NDgzMzc=