NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025 1. CORPORATE INFORMATION Tropicana Corporation Berhad (“the Company”) is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Main Market of Bursa Malaysia Securities Berhad. The registered office and principal place of business of the Company are located at Unit 1301, Level 13, Tropicana Gardens Office Tower, No. 2A, Persiaran Surian, Tropicana Indah, 47810 Petaling Jaya, Selangor Darul Ehsan. The principal activities of the Company are investment holding and provision of management services. The principal activities of the subsidiaries and joint ventures are disclosed in Note 18 and Note 20 respectively. There have been no significant changes in the nature of these principal activities during the financial year. The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the directors on 30 April 2026. 2. MATERIAL ACCOUNTING POLICY INFORMATION 2.1 Basis of preparation The financial statements of the Group and of the Company have been prepared in accordance with the MFRS Accounting Standards, IFRS Accounting Standards and the requirements of the Companies Act 2016 in Malaysia. The financial statements have been prepared on the historical cost basis except as disclosed in the accounting policies below. The financial statements are presented in Ringgit Malaysia (“RM”) and all values are rounded to the nearest thousand (RM’000) except when otherwise indicated. For the financial year ended 31 December 2025, while the Company recorded a profit before tax of RM41,587,000, the Group recorded a loss before tax of RM12,858,000. As disclosed in Note 32 to the financial statements, the Group and the Company have obligations to repay the short-term borrowings amounting to RM1,106,109,000 and RM169,850,000, respectively, that are due for repayment during the financial year ending 31 December 2026. These conditions may affect the ability of the Group and of the Company to meet their financial obligations as and when they fall due. In response to the aforementioned, the Group and the Company have executed several actions to address the cash flow requirements. The directors have prepared a cash flow forecast as part of the assessment on whether the Group and the Company will be able to meet their loan repayment obligations for the next twelve months after the reporting date and to continue as a going concern. Critical to the going concern assessment are the directors' expectations to achieve the following: - Estimated net cash inflow forecasted to be generated from its operating activities and disposal of identified assets during the financial year ending 31 December 2026; - Issuance of the Sukuk Wakalah Programme 2 amounting to RM200 million which was completed on 31 March 2026; and - Drawdown of secured financing facilities from financial institutions amounting to RM477 million. 259
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