17. SHARE CAPITAL, TREASURY SHARES AND RESERVES (continued) (a) Share capital (continued) i) The holders of ordinary shares are entitled to receive dividends as declared from time to time, and are entitled to one (1) vote per share at meetings of the Company. All ordinary shares rank pari passu with regard to the residual assets of the Company. ii) In the previous financial year, the issued and fully paid-up ordinary shares of the Company was increased from 433,354,500 to 436,134,500 by way of issuance of 2,780,000 new ordinary shares pursuant to options exercised under the Employee’s Share Option Scheme (“ESOS”) at an exercise price of RM0.10 per ordinary share for cash. (b) Treasury shares The shareholders of the Company, by an ordinary resolution passed at the annual general meeting held on 18 February 2025, renewed their approval for the Company’s plan to purchase up to ten percent (10%) of the total number of issued shares at any point of time. During the financial year, the Company purchased 10,687,100 of its own shares from the open market at prices ranging from RM0.160 to RM0.175 per share, which was financed by internally generated funds. As at 31 August 2025, a total of 10,688,100 (2024: 1,000) treasury shares at a total cost of RM1,829,191 (2024: RM1,155) are held by the Company. The shares repurchased are being held as treasury shares in accordance with Section 127(4)(b) of the Companies Act 2016 and the Main Market Listing Requirements and applicable guideline of Bursa Malaysia Securities Berhad (“Bursa Securities”). (c) Merger deficit The merger deficit comprises the differences between the cost of acquisition and the nominal value of shares acquired during the acquisition of Sasbadi Sdn. Bhd. in 2014. (d) Fair value reserve The fair value reserve comprises the cumulative net change in the fair value of equity instruments designated at fair value through other comprehensive income until the investments are derecognised or impaired. (e) Revaluation reserve The revaluation reserve relates to the revaluation of leasehold land, buildings and condominiums. SASBADI HOLDINGS BERHAD Financial Statements (conঞ nued) 128
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