PERFORMANCE ASSETS AND LIABILITIES, CASH AND BANK BORROWINGS The Group’s balance sheet remained strong, with total cash and bank balances as at 31 December 2025 increasing by 42% to RM533.06 million compared with the previous year’s position (FY2024: RM374.19 million). This has continued to allow the Group’s access to potential investment opportunities and better navigate market challenges. Total borrowings from term loans, Islamic MTN and revolving credits were at RM1.68 billion for FY2025 (FY2024: RM1.26 billion). Zetrix AI maintains a manageable net gearing ratio of 0.31 times in FY2025 (FY2024: 0.32 times). On total assets, both current and non-current assets contributed to an increase in Zetrix AI’s total asset position at RM5.56 billion, 31% higher year-on-year (FY2024: RM4.25 billion). Property, plant and equipment was recorded at RM332.51 million (FY2024: RM356.69 million), while trade receivables decreased to RM323.71 million (FY2024: RM350.45 million). Development costs registered an increase to RM2.85 billion (FY2024: RM1.85 billion). Zetrix AI remains on track in pursuing its growth and expansion objectives, particularly in the Web3 + AI space, supported by a strong balance sheet, which enables the Group to access additional capital, should the need arise. HIGHLIGHTS AND ACHIEVEMENTS Zetrix AI marked FY2025 with another year of record financial results through notable achievements, underpinned by an accelerated demand for its Web3-powered platforms and services. Growth was especially evident in the continued monetisation of its blockchain ecosystem, where adoption extended steadily across trade facilitation, digital identity and tokenisation usage. Unlike conventional blockchain deployments in the Western world that are heavily centred on decentralised finance and cryptocurrency, Zetrix AI’s approach has consistently focused on real-world applications—particularly the digitalisation of cross-border government processes where transparency, security and efficiency are paramount. FY2025 saw further progress in this direction, driven by the Group’s strategic engagement with both Malaysian and Chinese authorities to expand the scope of blockchainenabled trade and regulatory services. With a proven legacy of innovation and a track record of forging forward-looking alliances, Zetrix AI reinforced its ecosystem in 2025 through continued collaboration with government-linked institutions and global partners. These included its partnerships with MIMOS Berhad, CAICT as well as the World Bank Group in early 2026. Such collaborations not only strengthened the pipeline of pioneering decentralised applications, but also cemented Zetrix AI’s standing as the region’s leading Web3 ecosystem. In this respect, the adoption of the Zetrix AI name in mid-2025 was more than a rebranding exercise. It signalled the Group’s sharpened ambition to be recognised as a global leader in blockchain, AI and digital governance solutions. The new corporate identity more accurately reflects the Group’s current business reality and ambitions. With the improved financial performance in FY2025 largely driven by the strong uptake of the Zetrix blockchainpowered services, the Group continues to strategically capitalise on the ever-growing mainstream adoption of AI and blockchain applications, underscoring the potential for continued upside as more government agencies and enterprises embrace new technologies for trade facilitation, digital identity and secure transactions. Beyond AI, Web3 and blockchain, the Group’s long-established e-Government concession services in Malaysia continued to provide a solid foundation of recurring income. Offerings tied to the Immigration Department and the Road Transport Department (“JPJ”) remained resilient, with digital transactions retaining their role as a core channel for millions of Malaysians. Zetrix AI remains committed to working with the relevant government partners to ensure uninterrupted access to e-government services for users while also reinforcing Zetrix AI’s reputation as a trusted partner in the nation’s digital governance. In fact, the Group’s enduring collaborations with Government entities further highlighted its alignment with Malaysia’s ongoing national digitalisation agenda. Providing secure, user-friendly platforms that reduce fraud risks is part of Zetrix AI’s contribution to Malaysia’s ambitions to modernise and digitalise safe public service delivery. MANAGEMENT DISCUSSION AND ANALYSIS (cont’d) PEORFVOERVMIAEWNCE 23
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