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
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