OUR STRATEGIC CONTEXT 36 Overview The financial year ended 31 December 2025 (“FY2025”) presented a more challenging operating environment for MST Golf. Retail conditions across Southeast Asia remained soft amid cautious consumer spending, inflationary pressures and evolving demand patterns within the golf equipment market. For FY2025, the Group recorded revenue of RM298.3 million, representing a 9.0% decline compared with RM327.8 million in FY2024. The Group reported EBITDA of RM34.4 million, while loss after tax amounted to RM10.4 million, compared with a profit after tax of RM4.8 million in the previous financial year. The decline in profitability was primarily attributable to the impairment loss on property, plant and equipment and right of use assets arising from the underperforming outlets in Malaysia and Singapore. In addition, softer retail demand across key markets, margin pressures arising from promotional activities and the continued investments required to support the Group’s regional expansion initiatives also contributed to the decline. Despite these challenges, the Group maintained a strong balance sheet and continued to strengthen its operational foundations in preparation for future growth. As for regional business performance, Malaysia remained the Group’s primary revenue contributor, accounting for RM184.4 million or 61.8% of total revenue in FY2025. This performance MANAGEMENT DISCUSSION & ANALYSIS Revenue RM298.3 million FY2024 : RM327.8 million Gross Profit RM117.0 million FY2024 : RM134.0 million 39.2% Gross Profit Margin Malaysia 61.8% Singapore 25.0% Indonesia 13.2% FY2024: RM202.2 million FY2024: RM93.2 million FY2024: RM32.4 million RM184.4 million RM74.7 million RM39.2 million reflects a moderation compared to FY2024, primarily due to softer retail sentiment and more cautious consumer spending patterns observed throughout the year. Similarly, in Singapore, revenue reached RM74.7 million, representing 25.0% of the Group’s turnover. These results reflect broader macroeconomic headwinds and a contraction in discretionary spending within a highly competitive retail landscape. Conversely, Indonesia continued its upward trajectory, contributing RM39.2 million, representing 13.2% of the Group’s total revenue. Revenue from Indonesia grew by 35.1% in local currency (Indonesian Rupiah “IDR”) to IDR151.6 billion, reflecting the continued strength of the Group’s expansion strategy and underlying business momentum in the market. In Ringgit Malaysia terms, the revenue increased by 21.2%, with the difference mainly attributable to foreign exchange translation. This performance underscores the success of our market entry and ongoing regional expansion strategy. With its large population and accelerating interest in golf, Indonesia remains a key growth pillar for the Group as we continue to scale our presence and capture market share across both retail and indoor golf segments. Group Revenue by Country
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