01 | ABOUT NEXG 02 | OUR LEADERSHIP 03| OUR PERSPECTIVE 04 | SUSTAINABILITY 05 | GOVERNANCE 06 | FINANCIAL STATEMENTS 07 | OTHER INFORMATION ANNUAL REPORT 2026 OUR PROGRESS In FY2026, NexG posted total revenue of RM348.2 million, continuing to generate and distribute economic value across our stakeholder groups. Notes: The financial information presented in the table is derived from the Audited Financial Statements, which can be referred to on pages 134 to 258 of the Annual Report FY2026. Based on the financial statements, the decline in the Group’s total economic value retained to RM24.9 million in FY2026 (FY2025: RM98.4 million) was primarily attributable to lower revenue generation coupled with higher economic value distributed during the financial year. Economic value distributed increased substantially, mainly driven by higher operating costs, as well as continued commitments towards employee wages, benefits and CSR-related initiatives.. NexG operates in a sector where the quality and security of our products are non-negotiable. The materials, components and services that go into our products must meet stringent standards, and that responsibility extends to the suppliers and partners we work with. At the same time, our procurement decisions carry broader implications. Who we source from, and how, affects local businesses, labour conditions across our value chain, and our environmental impact. Managing these considerations responsibly is part of how we operate. NexG’s procurement practices are guided by the Group’s Procurement Policy, which sets the standards expected of suppliers across our sourcing activities. The Group remains committed to promoting procurement practices that uphold transparency, accountability, operational efficiency, and sound governance. In FY2026, the Group took steps to strengthen its procurement governance and operational processes through the segregation and realignment of the Procurement and Vendor & Contract Management policies and procedures. As part of this, a pre-qualification process for vendors was formally embedded within the framework, and process flows for procurement and contract management were revised for greater clarity and efficiency. The Group maintains an evaluation process of prospective suppliers across a range of criteria, including commercial feasibility, service quality, financial stability, operational efficiency, antibribery and corruption controls, responsiveness, and reputation. (RM million) FY2024 FY2025 FY2026 Economic value generated (revenue) 368.30 373.45 348.16 Economic value distributed 280.90 275.04 323.30 - Operating costs 182.20 163.30 216.45 - Employee wages & benefits 64.40 71.42 72.57 - Payments to providers of capital 3.20 2.47 3.20 - Tax payments to government 30.20 36.06 28.8 - Donations, Sponsorship and Zakat Contributions 0.90 1.80 2.28 Total economic value retained 87.40 98.42 24.86 SUPPLY CHAIN MANAGEMENT OUR APPROACH WHY IS THIS IMPORTANT? PROCUREMENT PRACTICES Supplier and Contractor Assessment Sustainability STATEMENT (Cont’d) 52
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