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
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