Cyberjaya, 27 February 2026 - Dagang NeXchange Berhad (“DNeX” or “the Group”) today announced its financial results for the full year ended 31 December 2025 (“FY2025”), marking a pivotal year of strategic consolidation. While the Group reported a headline Loss Before Tax (“LBT”) of RM479.4 million, the result was largely driven by a one-off, non-cash impairment of RM429.5 million. This strategic reset strengthens and streamlines the balance sheet, positioning the Group on a more resilient foundation for future growth.

Excluding these non-cash adjustments, the Group’s underlying operational performance reflects clear resilience and disciplined execution. Underlying LBT narrowed significantly by 36% to RM49.9 million, compared to RM78.4 million in the year ended 31 December 2024 (“FY2024”), demonstrating the tangible benefits of the Group’s ongoing cost optimisation and portfolio rationalisation initiatives.

Revenue for the year stood at RM1.0 billion, compared to RM1.2 billion in FY2024, primarily due to softer crude oil prices, lower lifting volumes in the Energy segment and the strategic disposal of the loss-making Subsea Telco business within the Information Technology (“IT”) segment.

Segmental Performance FY2025

Semiconductor: Despite a temporary power disruption at the Kulim Hi-Tech Park, the Semiconductor segment delivered an overall revenue growth, supported by a 33% increase in average selling prices (“ASP”) to USD701 per wafer (FY2024: USD527 per wafer). Revenue contribution from Emerging Technology products nearly doubled to 43% of the revenue mix (FY2024: 23%), highlighting the successful strategic pivot toward higher-value, differentiated markets. The segment reported an LBT of RM286.4 million, which includes a non-cash impairment of RM200.2 million. Excluding this impairment, the underlying operational LBT of RM86.2 million primarily reflects the impact of the power disruption, partially mitigated by stronger margins from the Emerging Technology product portfolio.

Energy: The Energy segment navigated a challenging year marked by softer crude oil prices and reduced lifting volumes, recording an LBT of RM236.4 million. This headline figure includes a RM229.3 million non-cash impairment. Excluding impairment adjustment, the segment recorded an underlying LBT of RM7.1 million, compared to the RM25.7 million Profit Before Tax (“PBT”) in FY2024. Performance was further supported by lower finance costs following the full settlement of a secured bond in July 2024.

Information Technology (“IT”): The IT segment emerged as the Group’s standout performer, delivering a strong turnaround with a PBT of RM58.8 million, compared with an LBT of RM7.2 million in FY2024. This improvement was driven by the Group’s strategic divestment of the loss-making Subsea Telco business in February. Core PBT excluding the divested business rose to RM66.8 million from RM44.7 million in FY2024, driven by improved project margins and enhanced operational efficiency. Revenue for FY2025 stood at RM162.5 million in FY2025 (FY2024: RM225.2 million) reflecting the divestment of the Subsea Telco business and the completion of a major project lifecycle.

Performance Highlights 4QFY2025

In the final quarter (“4QFY2025”), the Group recorded revenue of RM214.9 million. The reported LBT of RM509.2 million was primarily attributable to the recognition of the full-year RM429.5 million non-cash impairments during the quarter. Excluding these one-off adjustments, the underlying LBT for the quarter was RM79.7 million, reflecting temporarily softer performance in the Semiconductor and Energy segments, arising from the power disruption and deferred oil liftings.

Management Commentary

Commenting on the results, Vinie Chong Pui Ling, Group Chief Financial Officer of DNeX said, "The headline LBT of RM479.4 million include RM429.5 million asset impairments relate to the fair value uplift recognised upon acquisition of assets within the Semiconductor and Energy segments, and are non-cash accounting adjustments. The impairments do not reflect any deterioration in the underlying operational performance of the assets. We remain confident that the revised carrying values are appropriate and continue to have confidence in the business prospects of both segments."

Looking ahead, the Group remains firmly focused on driving sustainable, long-term profitability in the Semiconductor segment through targeted capacity expansion and the cultivation of strategic partnerships within the Emerging Technology space.

In Energy, the Group continues to balance its upstream growth ambitions with disciplined capital allocation. Steady progress is being made towards achieving first oil at the Abu Cluster in Malaysia, while efforts remain ongoing to optimise production and maximise value from its UK assets.

The IT segment is well-positioned to play a leadership role in Malaysia’s ongoing digital transformation. The recent extensions of key government contracts, including iGFMAS and the National Single Window, underscore strong institutional confidence in DNeX’s capabilities and delivery track record.

“Moving into 2026, we are evolving into a comprehensive, cloud-enabled and AI-driven solutions provider. Our strategic partnership with Google Cloud to deliver sovereign cloud infrastructure places us at the forefront of high-growth, high-trust sectors such as financial services and national security.” Vinie Chong added.

As of 31 December 2025, the Group maintains a robust balance sheet, remaining in a net cash position with a total cash balance of RM624.2 million, total assets of RM3.5 billion, and total equity of RM1.7 billion. This solid financial foundation provides DNeX with substantial flexibility and capabilities to execute its strategic priorities and pursue long-term growth opportunities.