Printed in Malaysia by: Kuan Press Sdn. Bhd. (200301019520 (621940-X)) No 1, Jalan Perindustrian PP7, Taman Perindustrian Putra Permai, 43300 Seri Kembangan, Selangor Darul Ehsan Download the Sasbadi Super App Education Solutions Provider since 1985
SASBADI HOLDINGS BERHAD 2 Contents Form of Proxy Corporate Information 03 Sasbadi At A Glance 04 Our Significant Milestones 06 Our Core Competencies 08 Group of Companies 10 Financial Highlights 11 Message to Shareholders 12 Management Discussion and Analysis 16 Board of Directors 30 Directors’ Profiles 32 Profile of Key Senior Management 40 Sustainability Statement 42 Audit Committee Report 66 Statement on Risk Management and Internal Control 69 Additional Compliance Information 72 Statement on Directors’ Responsibility 73 Financial Statements 74 List of Properties 149 Analysis of Shareholdings 150 Notice of Thirteenth Annual General Meeting 153 Statement Accompanying Notice of Annual General Meeting 156 Corporate Governance Overview Statement 57
ANNUAL REPORT 2025 3 REGISTERED OFFICE Lot 5, Level 10 Menara Great Eastern 2 No. 50, Jalan Ampang 50450 Kuala Lumpur Tel: (603) 2031 1988 Fax: (603) 2031 9788 Email: archer@archer.com.my [Note: The Registered Office will be changed to Suite 12.02, Level 12, The Gardens South Tower, Mid Valley City, Lingkaran Syed Putra, 59200 Kuala Lumpur, effective 1 January 2026] HEAD OFFICE Lot 12, Jalan Teknologi 3/4 Taman Sains Selangor 1 Kota Damansara 47810 Petaling Jaya Selangor Darul Ehsan Tel: (603) 6145 1188 Fax: (603) 6145 1199 Website: www.sasbadiholdings.com SHARE REGISTRAR Boardroom Share Registrars Sdn Bhd 11th Floor, Menara Symphony No. 5, Jalan Professor Khoo Kay Kim Seksyen 13 46200 Petaling Jaya Selangor Darul Ehsan Tel: (603) 7890 4700 Fax: (603) 7890 4670 Email : BSR.Helpdesk@boardroomlimited.com PRINCIPAL BANKERS Alliance Bank Malaysia Berhad Alliance Islamic Bank Malaysia Berhad AmBank Islamic Berhad Malayan Banking Berhad Corporate Information BOARD OF DIRECTORS Datuk Dr Amin Bin Senin Independent Non-Executive Chairman Law King Hui Group Managing Director Lee Swee Hang Executive Director Law Yi Chian Executive Director Datu Dr Rashidah Binti Bolhassan Senior Independent Non-Executive Director Tang Yuen Kin Independent Non-Executive Director Datuk Dr Habibah Binti Abdul Rahim Independent Non-Executive Director AUDIT COMMITTEE Tang Yuen Kin (Chairman) Datu Dr Rashidah Binti Bolhassan Datuk Dr Habibah Binti Abdul Rahim NOMINATION COMMITTEE Datu Dr Rashidah Binti Bolhassan (Chairman) Tang Yuen Kin Datuk Dr Habibah Binti Abdul Rahim REMUNERATION COMMITTEE Tang Yuen Kin (Chairman) Datu Dr Rashidah Binti Bolhassan Datuk Dr Habibah Binti Abdul Rahim COMPANY SECRETARY Lee Pion Moon (SSM PC No. 202508000346) (MAICSA 7062849) Lim Fei Chia (SSM PC No. 202008000515) (MAICSA 7036158) AUDITORS BDO PLT (201906000013(LLP0018825-LCA & AF 0206)) Level 8, BDO @ Menara CenTARa 360, Jalan Tuanku Abdul Rahman 50100 Kuala Lumpur Federal Territory of Kuala Lumpur Tel: (603) 2616 2888 Fax: (603) 2616 3191 STOCK EXCHANGE LISTING Main Market of Bursa Malaysia Securities Berhad Sector: Telecommunications & Media Stock Name: SASBADI Stock Code: 5252
SASBADI HOLDINGS BERHAD Sasbadi At A Glance 4 MISSION 1. To create value through product innovations 2. To be the top education solutions provider 3. To be a high-impact strategic partner in education 40 years of creation, innovation, and staying ahead of the curve. 2025 VISION To be a total education solutions provider by evolving to meet the dynamic demands of the 21st century. OUR CORE VALUES Excellence & Innovation Creating Contents Developing Technologies Nurturing Skills Enriching Life Forging Connections Accountable Partnership Integrity & Honesty Responsible Corporate Citizenship OUR CORE COMPETENCIES OPERATING SEGMENTS SASBADI HOLDINGS BERHAD A provider of diverse education solutions that nurture 21st century skills. Sasbadi Group’s 40th Anniversary Academic Books Non-academic Books Early Childhood Education Digital Education Solutions and Services Network Marketing STEM Solutions Robotics Competitions Stationery Products Digital Solutions & Network Marketing ALP & STEM Education Paper-based Stationery Print Publishing
ANNUAL REPORT 2025 5 Sasbadi At A Glance Nurturing Students for Tomorrow, Today NOTABLE AWARDS Revenue Profit After Tax And Non-controlling Interest Earnings Per Share Total Assets Gross Profit Margin Dividend Per Share FYE 2025 FINANCIAL SNAPSHOT HIGHLIGHTS OF FYE 2025 & FYE 2026 RM117.062 million RM11.050 million 2.57 sen RM216.314 million 38.63% 0.75 sen Acquired the intellectual property rights of Kohwai & Young Publications (Malaysia) Sdn Bhd and a 60% equity stake in Edu Paper and Stationery Sdn Bhd Achieved the highest quarterly revenue and profit after tax since the Group’s inception in Q2 FYE 2025 Entered into a Joint Venture with Agmo Capital Sdn Bhd, a wholly-owned subsidiary of Agmo Holdings Berhad to develop a localised Large Language Model specifically for education Invited to participate in the Ministry of Education’s AI-Powered Classroom Pilot Project, which involves the integration of AI technologies in handpicked schools nationwide Perbadanan Kota Buku Anugerah Jualan Tertinggi: Penerbit (Pertama) and Anugerah Judul Paling Laris: Pendidikan (Pakej UASA Tingkatan 3) Awarded to Sasbadi Online Sdn Bhd and Sasbadi Holdings Berhad respectively Anugerah Buku Malaysia Ke-2 2023 and Anugerah Buku Malaysia 2020 by the Malaysian Book Publishers Association Awarded to Sasbadi Sdn Bhd, Big Tree Publications Sdn Bhd, Maya Press Sdn Bhd, The Malaya Press Sdn Bhd Best Under Billion Awards 2017 by Focus Malaysia: Best in Online Presence Awarded to Sasbadi Holdings Berhad The BrandLaureate Great Entrepreneur Brand Icon Leadership Award 2016 Awarded to Mr Law King Hui, Group Managing Director of Sasbadi Holdings Berhad MDDA Awards 2024: Product of The Year, CSR Excellence of The Year and Most Innovative Product of The Year Awarded to Mindtech Education Sdn Bhd Brand Legend Award (2024) by the Branding Association of Malaysia Awarded to Sasbadi Holdings Berhad
ANNUAL REPORT 2025 SASBADI HOLDINGS BERHAD 6 7 Our Significant Milestones Incorporation of Sasbadi Sdn Bhd (“Sasbadi”) and commencement of operations Publication of our first textbook, ‘Bahasa Malaysia KBSM Tingkatan 1’ Incorporation of Maya Press Sdn Bhd as an imprint for general titles for Sasbadi 1985 • Launched ‘Total eDictionary’, our first generation electronic dictionary • Secured the rights as sole distributor and partner of LEGO® Education for Brunei and Malaysia • Organised our first Malaysia Robot Olympiad (now known as National Robotics Competition) • Incorporation of Sasbadi Online Sdn Bhd (“Sasbadi Online”) and launched the first online teaching product, Penjana Pentaksiran Instan • Launched our digital learning platform, i-LEARN Ace 2005 2011 • Co-organised the World Robot Olympiad 2012 with the Government of Malaysia in Kuala Lumpur • Incorporation of Sasbadi Holdings Berhad (“Sasbadi Holdings”) • Signed a Memorandum of Collaboration (“MoC”) with Huawei Technologies (Malaysia) Sdn Bhd (“Huawei”) to develop intelligent solutions to empower teachers and students • Obtained the official endorsement from the Ministry of Higher Learning to accept Linguaskill as a CEFR English entrance assessment for diploma and degree courses in Private Higher Education Institutions (“IPTS”) in Malaysia • Partnered with HarperCollins Publishers Limited to co-develop audio reading technology for a series of readers for young learners, and lead its distribution in Malaysia, Singapore and Brunei • Debuted on the Main Market of Bursa Malaysia as a Public Listed Company • Sasbadi Online was appointed as the National Science Challenge (“NSC”) preliminary level online system developer and smart partner • Incorporation of MBP Publications Sdn Bhd (“MBP”) and Sasbadi Learning Solutions Sdn Bhd (“Sasbadi Learning”) • Acquired Intellectual Property (“IP”) for the teacher’s education segment from Penerbitan Multimedia Sdn Bhd • Collaborated with the Ministry of Education to provide free i-LEARN Ace access to all SPM 2022 candidates • Partnered with Shopee to help students purchase Sasbadi educational materials through up to RM50 million cash equivalent Shopee vouchers • Became an exclusive partner of BOOKR Kids, an award-winning Edtech company from Europe, to market the BOOKR Class digital library in Malaysia • i-LEARN Ace accepted on the DELIMa platform under the “Rakan DELIMa” program on 17 January 2024 • Secured two (2) digital solutions contracts and two (2) textbook supply contracts from the Ministry of Education Malaysia • Mindtech Education Sdn Bhd awarded Product of The Year, CSR Excellence of The Year, and Most Innovative Product of The Year at the MDDA Awards 2024 • Acquired the intellectual property rights of Kohwai & Young Publications (Malaysia) Sdn Bhd and a 60% equity stake in Edu Paper and Stationery Sdn Bhd • Secured an English language proficiency testing contract and an interactive digital storybooks for preschools contract from the Ministry of Education Malaysia • Entered into a Joint Venture with Agmo Capital Sdn Bhd to develop a localised Large Language Model (LLM) for the education sector • Invited by the Ministry of Education Malaysia to participate in the AI-Powered Classroom Pilot Project (Projek Rintis Bilik Darjah Dikuasakan AI) • Acquired 70% of Sanjung Unggul Sdn Bhd and its subsidiaries (“Sanjung Unggul Group”) • Celebrated Sasbadi’s 30th Anniversary • Incorporation of MindTech Education Sdn Bhd (“MindTech Education”) • Obtained a direct sales licence from the Ministry of Domestic Trade, Co-operatives and Consumerism for MindTech Education • Acquired United Publishing House (M) Sdn Bhd (“UPH”), Distinct Motion Sdn Bhd, and their respective subsidiaries • Signed a Memorandum of Agreement (“MoA”) with the University of Malaya to collaborate on research and product development of robotics in Science, Technology, Engineering and Mathematics (“STEM”) education • Acquired the remaining 30% of Sanjung Unggul Group • Launched the Professional Robotics Skills Certificate with the University of Malaya during the National Robotics Competition 2017 • Signed an agreement with Marshall Cavendish Education Pte for the exclusive right to promote, market, advertise, sell and distribute MCE-published titles in Malaysia • Acquired Pinko Creative Sdn Bhd as a wholly-owned subsidiary of UPH • Launched our digital learning platform for young learners, i-LEARN Ace Junior • Signed an agreement with Cambridge Assessment English as the Preferred Partner for Linguaskill in Malaysia • Signed an agreement with NYC English as the Exclusive Partner for NYC English products in Malaysia 2012 • Corporate Social Responsibility Initiatives: - Collaborated with Huawei and TM ONE to provide SPM 2020 candidates free access to i-LEARN Ace from December 2020 until March 2021 - Hosted a series of 21 webinars named BONGKAR SPM which covered 13 SPM subjects for Form 4 and 5 students to attend free of charge 2021 2023 2024 2025 2014 2015 2016 2017 2018 2019 2020 1987 2002 SPM 2020 CANDIDATES i-LEARN Ace USERS Content and Platform Provider Cloud Service Provider Technology Provider Our Significant Milestones
SASBADI HOLDINGS BERHAD 8 Our Core Competencies The strengths of Sasbadi Group are anchored on these five strategic competencies which drive the Group’s missions and vision. Creating Contents Developing Technologies At Sasbadi, our central focus is on creating exceptional educational content. We engage exhaustively with experienced writers and teachers for our academic publications, striving to provide top-notch content that supports the academic journey of primary and secondary school students in Malaysia. Beyond academic publications, our content caters to diverse interests and age groups. For children, our supplementary materials encompass a rich variety, including fiction and non-fiction titles, comics, illustrated storybooks, and globally recognised works by award-winning authors. Similarly, in the realm of adult literature, we contribute to the local literary scene by publishing novels, short stories, poems, biographies, and young adult literature by Malaysian writers. Our pride lies in the adaptability of our content, shaped over the years to meet evolving educational needs, including the production of digital education solutions and technology-enabled blended learning products. At Sasbadi, we aspire to lead in education technology, recognising the opportunities presented by the Malaysia Digital Economy Blueprint. We strategically allocate significant resources to continuously develop cutting-edge technologies and digital classroom solutions. Our in-house team, comprising programmers, designers, and engineers, collaborate to create a suite of digital solutions, including mobile applications and cloud-based platforms. Striving to enhance the learning experience, we integrate innovations such as Augmented Reality (“AR”) and gamified features into our publications. i-LEARN Ace, our mobile-learning platform for Year 1 to Form 5 students, represents our commitment to providing accessible and effective digital learning solutions. Our printed publications are also enhanced with desirable digital elements (known as hybrid publications) that deliver a teaching and learning experience beyond the traditional print approach. In this digital era, we leverage technology as a powerful enabler to facilitate dynamic and ubiquitous learning.
ANNUAL REPORT 2025 9 Nurturing Skills Enriching Life Forging Connections Since 2005, Sasbadi has been a strategic partner to the Ministry of Education Malaysia (“MOE”) in advocating for Science, Technology, Engineering, and Mathematics (“STEM”) education. Our commitment involves nurturing the younger generation to become future thinkers, creators, and innovators. We actively encourage the development of critical skills such as critical thinking, creative thinking, communication, and collaboration. In partnership with LEGO® Education, a global brand, we provide engaging tools and platforms for hands-on learning through robotics and programming. In collaboration with the MOE, Sasbadi organises annual robotics competitions including the National Robotics Competition (“NRC”), National Robotics Open Competition (“NROC”), FIRST LEGO League (“FLL”) Malaysia, and FIRST LEGO League Junior (“FLL Jr.”) Malaysia, creating platforms for showcasing talent and fostering innovation. Sasbadi is committed to facilitating lifelong learning for individuals of all ages, recognising the crucial role continuous learning plays in today’s knowledge-based economy. Our diverse offerings cater to both young learners and adults. In 2019, we expanded our portfolio to include personal upskilling products, offering practical and effective English learning solutions tailored for job seekers and working adults. Recognising the pivotal role of English proficiency, we collaborated with global experts in language education to provide unique and effective English learning programs. Sasbadi is a Preferred Partner for Linguaskill by Cambridge Assessment English and an exclusive partner for NYC English products in Malaysia. Collaboration stands as a cornerstone in Sasbadi’s strategy to deliver value to customers and stakeholders. To enhance personal engagement, we founded MindTech Education, our network marketing division, providing a personal touch in delivering educational solutions across Malaysia. Recognising the diversity in cultural backgrounds, accessibility levels, and experiences, we understand that education solutions should be customisable and personalised. MindTech Education actively works to close gaps in education by making our digital education solution, i-LEARN Ace, highly accessible and affordable for all. Our ethos centers around fostering innovation, inclusiveness, and equity to make learning happen, reflecting our commitment to forging meaningful connections in education. Our Core Competencies
SASBADI HOLDINGS BERHAD 10 Group of Companies Sasbadi Holdings Berhad Sasbadi Sdn Bhd Sasbadi Online Sdn Bhd MindTech Education Sdn Bhd 100% 100% Penerbitan Minda Sdn Bhd 55% 100% Malaysian Book Promotions Sdn Bhd Orbit Buku Sdn Bhd Maya Press Sdn Bhd MBP Publications Sdn Bhd Media Distribution Sdn Bhd Edu Paper and Stationery Sdn Bhd United Publishing House (M) Sdn Bhd Sanjung Unggul Sdn Bhd Sasbadi Learning Solutions Sdn Bhd 100% 100% 100% Sanjung Unggul Sdn Bhd Big Tree Publications Sdn Bhd Distinct Element Sdn Bhd Distinct Element Sdn Bhd Jinbang Publication Sdn Bhd Malaya Publishing and Printing Company Sdn Bhd Malaya Publishing and Printing Company Sdn Bhd The Malaya Press Sdn Bhd Distinct Motion Sdn Bhd UPH Distributor Sdn Bhd G-Apple Studio Sdn Bhd Penerbitan Daya Sdn Bhd Pinko Creative Sdn Bhd 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 60% 100% Investment Holding Print Publishing Paper-based Stationery Applied Learning Products and STEM Education Services Digital Solutions and Network Marketing
ANNUAL REPORT 2025 11 Financial Highlights 0 20000 40000 60000 80000 100000 120000 0 10000 20000 30000 40000 50000 Revenue Profit/(Loss) Before Tax ("PBT/(LBT)") Gross Profit (“GP”) FYE 31 AUG 2025 2024 2023 2022 2021 117,062 90,054 96,142 69,034 62,902 -15000 -10000 -5000 0 5000 10000 15000 20000 -15.00% -10.00% -5.00% 0.00% 5.00% 10.00% 15.00% 20.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% FYE 31 AUG PBT/(LBT) Margin (%) FYE 31 AUG PATNCI/(LATNCI) Margin (%) FYE 31 AUG GP Margin (%) 2025 2024 2023 2022 2021 38.63% 45,224 32.28% 38.03% 33.38% 17.92% -14.71% (9,251) 1.22% 841 10.58% 10,168 2.45% 2,207 9.44% 11,050 11,273 23,043 29,065 36,560 Profit/(Loss) After Tax And Non-controlling Interest ("PATNCI/(LATNCI)") Assets as at 31 August 2025 (RM'000) Equity and Liabilities as at 31 August 2025 (RM'000) Property, plant and equipment RM51,220 (23.68%) Investment properties RM2,162 (1.00%) Intangible assets RM21,069 (9.74%) Inventories RM63,868 (29.53%) Trade and other receivables RM34,310 (15.86%) Cash and cash equivalents RM27,672 (12.79%) Other assets RM16,013 (7.40%) Shareholders' equity RM158,350 (73.20%) Loans and borrowings RM18,065 (8.35%) Trade and other payables RM23,182 (10.72%) Deferred tax liabilities RM8,138 (3.76%) Other liabilities RM7,891 (3.65%) Non-controlling interest RM688 (0.32%) -20000 -15000 -10000 -5000 0 5000 10000 15000 20000 -20.00% -15.00% -10.00% -5.00% 0.00% 5.00% 10.00% 15.00% 20.00% 2025 2024 2023 2022 2021 2025 2024 2023 2022 2021 (10,456) 1,971 2.86% 13.68% 12.65% 3.30% 2,979 14,807 13,150 -16.62% 29.53% 15.86% 0.32% 12.79% 8.35% 10.72% 23.68% 9.74% 73.20% 1.00% 7.40% 3.76% 3.65% RM’000 RM’000 RM’000 RM’000
SASBADI HOLDINGS BERHAD Sasbadi At A Glance 12 Message to Shareholders Dear shareholders, Sasbadi Group achieved significant milestones in the FYE 2025, with annual revenue exceeding RM100 million for the first time and the Group recording its second-highest full-year profit since the FYE 2016, despite a softer-than-expected performance in the fourth quarter. Notably, the second financial quarter was the strongest quarterly performance in the Group’s history, underscoring its competitiveness and resilience as it celebrates its 40th anniversary. Datuk Dr Amin Bin Senin Independent Non-Executive Chairman Law King Hui Group Managing Director
ANNUAL REPORT 2025 13 On behalf of the Board of Directors ("the Board") of Sasbadi Holdings Berhad ("Sasbadi Holdings", "Sasbadi", or "Group"), it is our pleasure to present to you Sasbadi's Annual Report for the financial year ended ("FYE") 31 August 2025 (“FYE 2025”). Overview For the FYE 2025, the Group achieved a record-breaking feat, delivering the highest full-year revenue in our history. This strong performance was primarily driven by robust sales of our print publications during the first and second financial quarters which were significantly boosted by the MADANI Book Voucher Initiative (30 May 2024 – 31 December 2024). The surge in demand for high-quality educational materials from teachers and students propelled our second financial quarter to record the highest quarterly revenue and profit after tax since the Group’s establishment. On the whole, print publishing segment performance was also well supported by healthy school orders for the 2025 academic year beginning February 2025 and continues to anchor the Group’s financial performance, underpinned by a highly experienced and diverse editorial team that continues to produce market-leading titles in our 40th year of operations. Our team remains attentive to evolving education needs and market trends, ensuring that our products remain relevant in an increasingly digital landscape. Today, our print publications are widely recognised for their integration of digital enhancements, including supplementary materials, interactive media, videos, and audio that enrich the teaching and learning experience beyond the National Curriculum. Furthermore, in an effort to expand our print portfolio, the FYE 2025 also saw two strategic acquisitions including the Intellectual Property (“IP”) and inventory of Kohwai & Young Publications (Malaysia) Sdn Bhd, a respected early childhood publisher, and a 60% equity stake in Edu Paper and Stationery Sdn Bhd, producer of notebooks, exercise books, and other paper-based products, thereby broadening the Group’s revenue base. On the digital front, the Group made notable strides in the realm of Artificial Intelligence (“AI”) for education. Notably, we entered into a Joint Venture (“JV”) with Agmo Capital Sdn Bhd, a wholly-owned subsidiary of Agmo Holdings Berhad, to jointly develop Malaysia’s first localised Large Language Model (“LLM”) specifically trained for education. Through this partnership, Sasbadi is leveraging its extensive archive of high-quality educational data and digital IP to drive the development of next generation learning technologies tailored for Malaysian students and educators. As a reflection of the MOE’s confidence in Sasbadi’s AI capabilities, the AI-enhanced version of our flagship digital platform, known as Ace-it, was showcased at the Ministry of Education Malaysia’s (“MOE”) Super Booth during the ASEAN AI Malaysia Summit 2025 (12– 13 August 2025). In addition, the Group was also appointed by the MOE to be a Strategic Partner for the AI-Powered Classroom Pilot Project (Projek Rintis Bilik Darjah Dikuasakan AI), a national initiative involving selected Primary and Secondary schools from August 2025 to March 2026. Under this pilot, Sasbadi will serve as the content provider via the AI-powered Ace-it platform, granting full access to both teachers and students to drive the MOE’s aspirations towards a more adaptive and inclusive learning environment. Finally, we are pleased to report that through the longstanding strategic partnership between MOE and Sasbadi in the areas of Science, Technology, Engineering, and Mathematics (“STEM”) education (dating back to 2005), Malaysia’s contingent at the 22nd World Robot Olympiad International Final 2025 in Singapore (26–28 November 2025) delivered an exceptional performance. Our 16 national teams captured 50% of the available gold medals by winning four gold medals, four silver medals, and two excellence awards, thereby securing Malaysia’s position as overall champion for the 13th time and outperforming participants from 91 countries. This remarkable achievement demonstrates the global competitiveness of our Malaysian youths in STEM disciplines and critical 21st century skills. Message to Shareholders 2.57sen 37.22sen 0.75sen 5.17% EARNINGS PER SHARE NET ASSETS PER SHARE DIVIDEND PER SHARE DIVIDEND YIELD FYE 2025
SASBADI HOLDINGS BERHAD 14 Prospects For the financial year ending 31 August 2026 (“FYE 2026”) and beyond, the Group remains firmly committed to defending and strengthening its leadership position in the print publishing segment, particularly in the area of syllabus-based publishing. In this regard, the Group is actively participating in textbook tenders announced in October 2025 by the Ministry of Education (“MOE”) for the new 2027 school curriculum. These tenders cover all subjects for Primary 1 and Secondary 1, signalling the beginning of a new cycle where textbook tenders are expected to be announced yearly over the next six years for primary schools and five years for secondary schools. The implementation of the new 2027 school curriculum represents a significant growth opportunity for the Group. Besides participating in the textbook tenders, Sasbadi will also allocate substantial resources and place strategic focus towards publishing many new products to meet the needs created by the new curriculum. Beyond that, the Group will continue to leverage its four decades of publishing expertise to innovate across both academic and non-academic print titles, ensuring continued relevance and competitiveness amid the increasing adoption of AI tools in the education sector. In digital education, the Group will further accelerate the development and enhancement of its AI-driven solutions. Key among these initiatives is the development of the proprietary education-focused Large Language Model (“LLM”) in collaboration with Agmo Capital Sdn Bhd. The Group believes that this LLM will serve as a strategic differentiator, positioning Sasbadi at the forefront of AI-powered education solutions by supporting teachers and students in their daily teaching and learning activities. Upon completion, the LLM will be integrated into the Group’s flagship Ace-it platform (currently powered by third-party LLMs), thereby enabling the generation of safe, curriculum-aligned content that is culturally appropriate and ethically grounded. In parallel, and building on Sasbadi’s participation in the AI-Powered Classroom Pilot Project, the Group is also exploring avenues to develop an on-premise AI solution that may be adopted by all schools nationwide, including rural schools with no internet access, to address challenges being faced in the areas of equitable access and digital sovereignty. Potentially, the Group’s AI solutions (both cloud-based and on-premise) may be bundled with devices such as tablets and smartboards to offer schools a comprehensive, end-to-end AI-Powered classroom solution. Looking ahead, the FYE 2026 may be a pivotal year in the Group’s new growth phase, marked by both structural opportunities and strategic inflection points. While remaining mindful of prevailing uncertainties, the Group is well positioned to capitalise on new opportunities and emerging prospects through leveraging, disciplined execution, sustained innovation, and strategic partnerships. We enter the new financial year with measured confidence, fully prepared to navigate the evolving education landscape and to deliver long-term value for our stakeholders. Appreciation We extend our deepest appreciation to the Board of Directors for their principled leadership, strategic foresight, and unwavering stewardship, which have been instrumental in guiding the Group through periods of change and complexity. Their sound judgment and long-term vision continue to anchor Sasbadi’s growth and resilience. We would also like to express our heartfelt thanks to Dato’ Salleh Bin Mohd Husein and Dato’ Noor Rezan Binti Bapoo Hashim, who have retired from the Board after close to 12 years of dedicated and distinguished service. Their leadership, experience, and steadfast commitment have played a pivotal role in shaping the Group’s strategic direction and long-term growth, guiding Sasbadi through various phases of transformation and development. We are deeply grateful for their invaluable contributions and wish them every success in their future endeavours. Our sincere gratitude also goes to the management team and all employees across the Group, whose professionalism, commitment, and collective effort remain the driving force behind our continued progress and operational excellence. In addition, we acknowledge and thank the MOE, strategic partners and all business associates for their confidence, cooperation, and shared commitment to excellence. Their ongoing support has been integral to our success, and as we move forward together, we are confident in our ability to build on these strong foundations to achieve new heights and create lasting value for all stakeholders. Message to Shareholders
ANNUAL REPORT 2025 15 Highlights of FYE 2025 and FYE 2026 Message to Shareholders November 2025 October 2025 May 2025 December 2024 March 2025 August 2025 October 2025 The acquisition of the Intellectual Property Rights and inventory of Kohwai & Young Publications (Malaysia) Sdn Bhd was successfully completed Sasbadi celebrated its 40th anniversary, marking 40 vibrant years of growth, resilience, and innovation in the field of education Secured a contract from the Ministry of Education for the provision of English language proficiency testing services for English Option Teachers at a contract value of RM500,000 Secured a contract from the Ministry of Education for the supply and delivery of interactive digital storybooks for preschools at a contract value of RM432,000 Invited to participate in the Ministry of Education’s AI-Powered Classroom Pilot Project running from August 2025 to March 2026. Sasbadi will serve as a digital content provider for the Project Entered into a Joint Venture with Agmo Capital Sdn Bhd, a wholly-owned subsidiary of Agmo Holdings Berhad, to jointly develop Malaysia’s localised Large Language Model (LLM) tailored for education The acquisition of Edu Paper And Stationery Sdn Bhd was completed, with the company successfully becoming a 60%-owned subsidiary of Sasbadi Group
16 SASBADI HOLDINGS BERHAD Chan Yuet Leng Group Chief Financial Officer Law King Hui Group Managing Director Management Discussion and Analysis FYE 2025 has been a notable financial year for Sasbadi Group as we achieved the highest full-year revenue in our history, underpinned by sustained and robust demand for our quality, trusted print publications. Concurrently, the Group made meaningful strides in advancing AI-driven education solutions, laying a solid foundation for innovation-led growth. These initiatives are expected to translate into tangible outcomes for the FYE 2026 and onwards as our digital and AI solutions move closer to commercialisation and wider adoption.
17 ANNUAL REPORT 2025 Overview of Operations Sasbadi Holdings Berhad ("Sasbadi Holdings", "Sasbadi", or "the Company") is an investment holding company while the Group (i.e. Sasbadi Holdings and its subsidiaries) is an education solutions provider. Further details on the Group's subsidiaries are disclosed in Note 8 to the Financial Statements section in this Annual Report. The Group's history began with the incorporation of Sasbadi Sdn Bhd ("SSB") in 1985, which commenced its operations as a publisher of printed educational materials within the same year. In order to meet the teaching and learning needs of the 21st century, the Group evolved from being mainly an educational print publisher to a provider of diverse education solutions which include digital technology that enables effective and efficient teaching and learning, applied learning tools that facilitate Science, Technology, Engineering, and Mathematics ("STEM") education, education services, English language learning cum assessment solutions and a direct selling business. On 23 July 2014, the Company was successfully listed on the Main Market of Bursa Malaysia Securities Berhad. Management Discussion and Analysis Revenue (RM million) Revenue (RM million) Gross Profit (RM million) Profit Before Tax (RM million) Gross Profit Margin FYE 2023 FYE 2024 FYE 2025 29.065 45.224 32.28% 38.63% 36.560 38.03% 2.979 FYE 2023 FYE 2024 FYE 2025 13.150 14.807 Cash And Cash Equivalents (RM million) FYE 2023 FYE 2024 FYE 2025 Profit After Tax And Non-controlling Interest (RM million) Total Assets (RM million) FYE 2023 FYE 2024 11.050 FYE 2025 2.207 10.168 187.340 FYE 2023 FYE 2024 FYE 2025 193.019 216.314 11.640 27.672 10.980 13.68% 3.30% 12.65% 10.58% 2.45% 9.44% FYE 2024 FYE 2023 FYE 2025 117.062 90.054 96.142 Profit Before Tax Margin Profit After Tax And Noncontrolling Interest Margin The Group's premises include our Head Office in Kota Damansara, Petaling Jaya, Selangor; an office in Sri Petaling, Kuala Lumpur where United Publishing House (M) Sdn Bhd ("UPH") and its subsidiaries ("UPH Group") and Sanjung Unggul Sdn Bhd ("SUSB") and its subsidiaries ("SUSB Group") operate; an office in Cova Square, Kota Damansara, Petaling Jaya, Selangor where MindTech Education Sdn Bhd ("MindTech Education") operates and an office in Rawang, Selangor where Edu Paper And Stationery Sdn Bhd operates. The Group's operations are divided into the following segments: i. Print publishing, which is further divided into the following: a. Academic print publishing focusing on both national and national-type (Chinese) schools and also early childhood education; and b. Non-academic print publishing which includes comic books, novels, dictionaries and other general titles. ii. Digital education solutions and services, and network marketing; iii. Applied learning products ("ALP") and STEM education; and iv. Paper-based stationery.
SASBADI HOLDINGS BERHAD 18 Management Discussion and Analysis 27.672 Print Publishing Segment Revenue (RM million) FYE 2023 FYE 2024 FYE 2025 87.547 81.128 109.233 Digital Solutions & Network Marketing Segment Revenue (RM million) FYE 2023 FYE 2024 FYE 2025 5.584 3.403 2.599 ALP & STEM Education Segment Revenue (RM million) FYE 2023 FYE 2024 FYE 2025 3.011 5.523 3.115 Paper-based Stationery Segment Revenue (RM million) FYE 2023 FYE 2024 FYE 2025 2.115 Financial Review For the financial year ended ("FYE") 31 August 2025, the Group recorded a revenue of RM117.062 million and profit after tax and non-controlling interest (“PATNCI”) of RM11.050 million as compared to a revenue of RM90.054 million and PATNCI of RM2.207 million for the preceding financial year, representing an increase of RM27.008 million (equivalent to 29.99%) in revenue and RM8.843 million (equivalent to 400.68%) in PATNCI. Across the Group's segments, the Print Publishing segment recorded a revenue of RM109.233 million in the current financial year as compared to RM81.128 million in the preceding financial year, representing an increase of RM28.105 million (equivalent to 34.64%). The Digital Solutions & Network Marketing segment recorded a revenue of RM2.599 million for the current financial year as compared to RM3.403 million for the preceding financial year, representing a decrease of RM0.804 million (equivalent to 23.63%). The ALP & STEM segment recorded a revenue of RM3.115 million for the current financial year as compared to RM5.523 million for the preceding financial year, representing a decrease of RM2.408 million (equivalent to 43.60%). Lastly, our newly established Paper-based Stationery segment recorded a revenue of RM2.115 million for the current financial year. With the increase in overall revenue, the Group recorded a profit before tax ("PBT") of RM14.807 million for the current financial year vis-à-vis a PBT of RM2.979 million for the preceding financial year. This represents an increase of RM11.828 million (equivalent to 397.05%) primarily due to the higher revenue achieved and lower provision of inventories write-down being recognised in the current financial year as compared to the previous financial year. This is partly offset by higher operating costs amid prevailing general market conditions and losses incurred by our newly acquired subsidiary. The equity attributable to owners of the company increased to RM158.350 million as of 31 August 2025 from RM152.346 million as of 31 August 2024. The increase in equity was mainly attributed to current year profits offset by the purchase of treasury shares and the payment of dividends totalling RM1.828 million and RM3.218 million respectively.
ANNUAL REPORT 2025 19 Management Discussion and Analysis Shareholders’ Equity (RM million) FYE 2023 FYE 2024 FYE 2025 153.126 152.346 158.350 Total Loans & Borrowings (RM million) FYE 2023 FYE 2024 FYE 2025 8.626 7.437 18.065 Dividend Yield FYE 2023 FYE 2024 FYE 2025 3.95% 5.00% 5.17% Current Ratio FYE 2023 FYE 2024 FYE 2025 5.01 4.06 3.20 The Group recorded an earnings per share ("EPS") of 2.57 sen for the FYE 31 August 2025 as compared to an EPS of 0.51 sen for the FYE 31 August 2024 resulting from the higher profit achieved during the financial year. The Group's debt-to-equity ratio was 0.11 times as of 31 August 2025 visà-vis 0.05 times as of 31 August 2024. The increase in the Group's debt-to-equity ratio was mainly due to higher loan and borrowings, which increased from RM7.437 million to RM18.065 million as of 31 August 2024 and 31 August 2025 respectively. However, the Group is in net cash position for the current and preceding financial years as it has cash and cash equivalents of RM27.672 million and RM10.980 million as of 31 August 2025 and 31 August 2024 respectively. Current ratio has decreased to 3.20 times as of FYE 31 August 2025 as compared to the previous financial year at 4.06 times as of 31 August 2024, resulting from the increase in trade payables to purchase raw materials to meet our customers’ demands and the increase in accrued royalty and sales commission. Dividend The Board of Directors declared and approved the payment of an interim single-tier dividend of RM0.005 per ordinary share on 29 April 2025 and a second interim single-tier dividend of RM0.0025 per ordinary share on 28 October 2025 in respect of the financial year ended 31 August 2025.
SASBADI HOLDINGS BERHAD 20 Review of Operating Segments Management Discussion and Analysis As we mark our 40th year of establishment, Sasbadi Group’s mission remains crystal clear: to deliver effective and impactful learning solutions that empower students, teachers, and young adults to achieve their aspirations. Building upon this strong foundation, we are expanding our role in digital education through the development of innovative, AI-enabled solutions that enhance teaching effectiveness and personalise learning. By integrating print, digital, and AI-driven platforms, we aim to create meaningful, future-ready learning environments that equip learners to thrive in an increasingly technology-driven world. Print Publishing Digital Solutions & Network Marketing ALP & STEM Education Paper-based Stationery
ANNUAL REPORT 2025 21 Print Publishing The Group's Print Publishing segment's revenue increased from RM81.128 million for the preceding financial year to RM109.233 million for the current financial year, representing an increase of RM28.105 million (equivalent to 34.64%). Year-on-year, the Group’s academic print publishing segment recorded a substantial increase in revenue, driven by strong demand for our print publications and significantly supported by the MADANI Book Voucher Initiative (30 May 2024 – 31 December 2024) launched by Prime Minister Datuk Seri Anwar Ibrahim. During this period, the Group effectively leveraged its extensive sales network and long-standing partnerships with booksellers to promote Sasbadi publications to students, delivering encouraging results. Performance within the print segment was further reinforced by healthy school orders for the 2025 academic year commencing February 2025, with sustained demand underpinned by the innovative features of Sasbadi’s products, including hybrid print-digital elements that enhance the teaching and learning experience. In the FYE 2025, the Group also introduced several new titles, such as Rahsia Karangan Cemerlang SPM, Masterclass STPM, and WOW Komik, which broadened our footprint in the academic publishing market, alongside Komik STEM Why?, marking the Group’s inaugural entry into the educational comics segment. On the textbook tender front, the Group managed to secure two (2) contracts (Package 15 and Package 18) from the Ministry of Education ("MOE") on 5 August 2024 to supply reprinted textbooks ("BCS") to schools under the MOE for the period from 5 August 2024 to 4 August 2026 with a total contract value of RM11.707 million. This has resulted in the increase in overall revenue contribution from textbook contracts from RM3.845 million in the FYE 31 August 2024 to RM10.262 million for the current financial year. Digital Solutions and Network Marketing The Group's Digital Solutions and Network Marketing segment's revenue decreased from RM3.403 million for the preceding financial year to RM2.599 million for the current financial year, representing a decrease of RM0.804 million (equivalent to 23.63%). Despite macroeconomic challenges in the FYE 2025, strategic initiatives by the government like the MADANI Book Voucher has driven positive momentum. Our focus on product innovation will drive growth as we continue to inspire learning and deliver value in the evolving education landscape. Management Discussion and Analysis Sasbadi Group’s Popular Academic Book Series in the FYE 2025 Nota GALUS Series Concise study notes that use simple text and visual graphics to convey key facts in a clear and structured way WOW Grafik Series Attractive graphic visuals and colourful illustrations to help students remember important facts and concepts Gerak Gempur Series Workbooks published according to textbook topics and assessment aspects based on the Curriculum and Assessment Standard Document (DSKP)
SASBADI HOLDINGS BERHAD 22 Management Discussion and Analysis Despite the softer performance recorded during the financial year, the Group made meaningful progress in the development of its flagship digital platform, Ace-it. Key enhancements included the integration of AI-enabled functionalities designed to support teachers and students by providing AI-generated content aligned to the National Curriculum through a seamless and integrated digital experience. While these product research and development (“R&D”) initiatives have yet to generate direct revenue, they have delivered encouraging strategic outcomes. Notably, the Group was invited by the MOE to showcase Ace-it at the ASEAN AI Malaysia Summit 2025 (12–13 August 2025) under the MOE’s Super Booth, underscoring institutional confidence in Sasbadi’s capability to deliver next-generation education solutions. In parallel, the Group was also invited to participate in the AI-Powered Classroom Pilot Project, a nationwide initiative running from August 2025 to March 2026 that focuses on the strategic integration of hardware, software, and AI technologies to deliver a more adaptive and inclusive learning environment across selected schools. Under this initiative, Sasbadi will serve as a strategic partner for content, collaborating with numerous appointed infrastructure strategic partners. Subsequent to the financial year end, the Group also signed two (2) Letters of Acceptance from the MOE. These include a contract valued at RM500,000 for the provision of English language proficiency testing services for English option teachers, as well as a contract valued at RM432,000 for the supply and delivery of interactive digital storybooks for preschool education. Together, these contracts reflect the Group’s continued relevance and growing footprint in both digital education services and content delivery. Applied Learning Products (“ALP”) and STEM Education The Group's ALP and STEM segment's revenue decreased from RM5.523 million for the preceding financial year to RM3.115 million for the current financial year, representing a decrease of RM2.408 million (equivalent to 43.60%). The softer performance during the current financial year was primarily attributable to the MOE’s moderation in fund allocation to schools, as compared to the preceding financial year, to promote Science, Technology, Engineering, and Mathematics (“STEM”) education. Notwithstanding this, the Group remains encouraged by the sustained relevance and long-term impact of its STEM initiatives. Through Sasbadi’s long-standing partnership with the MOE, which began in 2005, the Malaysian contingent once again achieved outstanding success at the World Robot Olympiad International Final 2025 held in Singapore from 26 to 28 November 2025. The team emerged as Overall Champion for the 13th time, reaffirming Malaysia’s position on the global stage. This remarkable accomplishment not only reflects the effectiveness of Malaysia’s STEM education ecosystem, but also highlights the creativity, technical proficiency, and 21st century competencies of Malaysian youths, reinforcing the Group’s commitment to nurturing future-ready talent. Paper-based Stationery The Group’s Paper-based Stationery segment’s revenue stood at RM2.115 million for the current financial year. As this is a newly established segment in the FYE 2025, no year-on-year comparison can be made. During the FYE 2025, Edu Paper and Stationery Sdn Bhd focused primarily on the production of exercise books for the school market, including the manufacture of school-branded exercise books for nationwide distribution to support daily teaching and learning activities. Furthermore, the Company continued to serve several international customers and has, during the current financial year, implemented initiatives aimed at expanding its international customer base.
ANNUAL REPORT 2025 23 Management Discussion and Analysis Our students have showcased their incredible ability to think critically and solve complex problems, as well as innovate and adapt in the face of great challenges. This shows that our robotics programmes are apt in nurturing effective individuals in the 21st Century landscape, where technology such as artificial intelligence is becoming more prevalent. Malaysian Contingent Comes Out On Top Again at the World Robot Olympiad (WRO) International Final 2025 Held in Singapore from 26-28 November 2025, Malaysia bested over 1,571 students from 91 countries in WRO 2025, bringing home four golds, four silvers, and two Excellence Awards. This outstanding performance marks Malaysia’s 13th overall champion title since 2005, strengthening the nation’s legacy as one of the most successful countries in the history of WRO.
SASBADI HOLDINGS BERHAD 24 Risks & How We Mitigate Them Anticipated or Known Risks Competition We face competition from existing competitors as well as potential new entrants to the educational publishing industry. Barriers to entry in the industry are relatively low based on capital requirements, as many functions in the publishing processes may be outsourced to third parties. However, product development and operating costs can be high, given the long lead time from conceptualisation to completion in product development. Our competitive strengths such as our established track record of 40 years in the industry, strong brand awareness among students, teachers and parents, extensive distribution network, large customer base, diverse product range, in-house content development, experienced management and editorial teams, economies of scale and, in particular, our in-house digital technology and AI capabilities put us in a strong position to fend off competition. Seasonality The Group's business operations are exposed to seasonality patterns as the Group generally experiences significantly higher quarterly sales in months approaching the beginning of a new school academic year. As a result, the seasonal sales patterns may adversely impact the Group's quarterly revenues, profit and cash flow. The Group takes seasonality patterns into consideration for our cash flow planning. In addition, the Group is consistently seeking ways to reduce the impact of seasonality patterns such as stepping up our efforts to grow our non-academic and digital solutions segments, which are less prone to seasonality, and the private and international school segment which follows a different academic year period from that of our national schools. To smoothen out the effects of seasonality, the Group will also use strategic Mergers & Acquisitions such as the acquisition of a 60% stake in Edu Paper and Stationery Sdn Bhd to tap into new revenue streams. Fluctuations in the Price of Paper Paper is a major raw material used in our business. As paper is a commodity, it is subject to global paper price fluctuations. In the event that the increase in paper prices is too steep or prolonged, there is a risk that we may be unable to pass the entire cost increase to our consumers for fear of pricing our products beyond their affordability. This may then adversely affect our financial performance. Management Discussion and Analysis
ANNUAL REPORT 2025 25 Management Discussion and Analysis To mitigate this risk, we maintain a buffer inventory of paper which can serve our purposes for up to six (6) months while we source for alternative supplies that are more favourable. Infringement of Intellectual Properties (“IPs”) The Group develops and uses various IPs in connection with our business. In this regard, we are susceptible to claims by third parties for copyright infringements and, similarly, we are also susceptible to the copyright of our IPs being infringed by third parties. As such, in defending our legal rights, the Group may be exposed to suits and counter suits by third parties. Such disputes and the resolution of such disputes may be time consuming and costly. Therefore, the Group requires our authors to indemnify us for any losses and damages that arise should their works be found to have infringed on any copyright. We also own the copyrights to all published versions of our titles, which are protected under the Copyright Act 1987. Changes in Educational Curriculum and Policies As the Group is principally an education solutions provider, any changes in education curriculum and policies may have an impact on our operations and would require us to react quickly. Nevertheless, such changes are usually announced ahead of time which provides us sufficient time to align our business activities with the anticipated changes. In addition, having a pool of experienced editors puts us in a good position to respond in a timely manner. Stock Returns and Obsolescence The Group typically publishes new editions of educational materials every year. Some of the educational materials that we sell may be returned to us (subject to compliance with our return policy and stocks are returned in good condition) for either a full refund or an offset against future purchases. Such returned stocks are commonly resold to other customers. Returned stocks that are not resold after a period of time, as with all other slow-moving stocks will become obsolete and may need to be written off and sold as scrap. This may adversely affect our profitability if the volume of obsolete stocks is large. To mitigate this risk, the Group relies on data analytics to monitor the sales and distribution of stocks. This includes analysing historical and current trends of demand for our titles which enables us to manage our supply chain efficiently to reduce the risk of overproduction and sales returns. Foreign Exchange Transaction Risk Our purchases of paper and LEGO® Education robotics products are denominated in United States Dollar ("USD") while purchases of our English upskilling product, Linguaskill, are denominated in Great British Pound (“GBP”). Accordingly, we are exposed to foreign exchange transaction risks and any unfavourable movements in USD and GBP against RM will have an adverse impact on our profitability. For the FYE 31 August 2025, we did not suffer any material losses arising from foreign exchange transactions. Our Group will use forward exchange contracts to hedge against this risk if necessary. Dependency on Key Management Personnel and Experienced Editors The Group's continued success will depend, to a significant extent, on the abilities, skills, experience, competency and continuous efforts of our key management personnel (which include our Executive Directors) and experienced editors. As such, the loss of any of our key management personnel and experienced editors, without a suitable and timely replacement, may have a material adverse impact on our business and our continuing ability to compete effectively. The Group recognises the importance of attracting and retaining our key management personnel and experienced editors, and has put in place competitive compensation packages. In addition, the Group provides a healthy working environment, practices a conducive work culture, upholds good work ethics, and fosters good working relationships among our employees. The Group has also put in place succession planning and provides training and career development opportunities to our employees. Compliance Management During the course of business, the Group is subject to the risk of legal or regulatory sanctions, financial loss or damage to reputation resulting from failure to comply with laws, regulations, rules, other regulatory requirements or codes of conducts. To mitigate this risk, the Group actively identifies and assesses all applicable laws, regulations, rules and policies (including internal policies) applicable to all our operating activities to ensure compliance. Furthermore, we take active steps in implementing good corporate governance in compliance with the Malaysian Code on Corporate Governance ("MCCG") to promote corporate accountability and to build sustainable value.
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