On behalf of the Board of Directors, I am pleased to present the Annual Report of Melewar Industrial Group Berhad and its group of companies ("the Group") for the financial year ended 30 June 2026 ("FY2026"). OUR BUSINESS AND OPERATIONS The Group's core operations remain anchored in the steel industry, principally through its 74.13% stake in its listed subsidiary, Mycron Steel Berhad ("Mycron"). Mycron's principal activities comprise the manufacturing of Cold Rolled Coil ("CRC") steel sheets and Steel Tubes and Pipes ("Steel Tube"), serving customers across domestic and export markets. Beyond steel, the Group continues to develop selected non-steel businesses through its two wholly owned subsidiaries: FINANCIAL PERFORMANCE FY2026 was characterised by a challenging operating environment, with geopolitical tensions, commodity price volatility and persistent cost pressures affecting businesses globally. In Malaysia, the expansion of the Sales and Services Tax ("SST"), stricter enforcement of commercial vehicle weight regulations and electricity tariff adjustments added to the cost of doing business. Against this backdrop, the Group delivered a significant turnaround, recording a net profit of RM5.8 million compared with a net loss of RM8.4 million in FY2025. Group revenue increased by 6% to RM769.0 million from RM728.9 million, driven principally by stronger domestic steel sales. Steel sales volume grew by 19% year-on-year, while unit margins remained broadly stable. Resilient domestic demand, particularly from the electrical and electronics, automotive and metal fabrication segments, helped offset weaker export demand, especially for CRC products. STEEL DIVISION The Steel Division remains the principal contributor to the Group and operates through three subsidiaries within Mycron: Mycron Steel CRC Sdn Bhd ("MCRC"), which operates in the midstream segment, converting Hot Rolled Coil ("HRC") into thinner-gauge CRC steel sheets; Melewar Steel Tube Sdn Bhd ("MST"), which operates in the downstream segment, manufacturing Steel Tubes from HRC or CRC; and Silver Victory Sdn Bhd ("SV"), which is principally engaged in the trading of steel-related products. The Steel Division navigated fluctuating demand, steel prices and input costs throughout FY2026. Despite these challenges, the Division maintained operational resilience and ended the year on a stronger footing, supported by robust domestic demand and improved activity in the final quarter. STEEL DIVISION (CONT'D) The Division recorded revenue of RM203.1 million and Profit Before Tax ("PBT") of RM5.6 million in the first quarter, supported by strong domestic order intake and higher plant utilisation. Domestic demand helped cushion the impact of weaker CRC exports, although increasing trade barriers and tariff uncertainties in the United States continued to exert pressure on margins. In the second quarter, revenue moderated by approximately 8% quarter-on-quarter to RM187.4 million, mainly due to a 16% decline in CRC sales volume, partly offset by a 9% increase in Steel Tube volume. Selling prices also softened modestly across both segments. Despite the lower revenue, operating profit remained broadly stable at RM5.7 million. PBT and net profit were RM5.0 million and RM3.8 million respectively, with the quarter also affected by a mark-to market loss on investment holdings compared with a gain in the preceding quarter. The third quarter proved more challenging, with revenue declining by 16% to RM157.6 million, partly due to the shorter operating period arising from the festive holiday calendar. Sales volumes across both CRC and Steel Tube declined by double digits, while selling prices remained under pressure. Operating profit consequently declined to RM0.4 million, resulting in a marginal Loss Before Tax ("LBT") of RM0.1 million. The Division subsequently staged a strong recovery in the fourth quarter, with revenue increasing by 37% quarter-on-quarter to RM215.9 million. CRC and Steel Tube sales volumes increased by 46% and 24%, respectively, supported by the normalisation of operating days and stronger market activity. Operating profit correspondingly improved to RM6.1 million from RM0.4 million in the preceding quarter. Throughout the year, the Division also continued to address import competition and evolving trade conditions through engagement with the Ministry of Investment, Trade and Industry ("MITI"), including pursuing anti-dumping proceedings and other appropriate trade remedy measures. Overall, the Steel Division demonstrated resilience amid a challenging operating environment, with the strong fourth-quarter recovery providing positive momentum heading into FY2027. FOOD DIVISION The Food Division, managed under 3Bumi, remains a relatively new and small component of the Group's overall portfolio. The division's main activities involve: the importation of food products including beef, lamb and turkey meat, value-added processing and packaging, and their subsequent sale to Malaysian supermarkets and retail outlets; the bottling of palm oil and its domestic and export sales, as cooking oil; and the manufacturing and sale of pet food domestically. During FY2026, the Division faced subdued market conditions amid higher input and logistics costs, increased price volatility and cautious purchasing behaviour. Geopolitical developments and disruptions to international trade added to supply chain pressures, while higher energy, transportation and raw material costs continued to weigh on operating conditions. Against this backdrop, revenue declined by 29% year-on-year to RM4.8 million. Despite the lower revenue, LBT improved modestly from RM4.9 million in FY2025 to RM4.6 million in FY2026, reflecting continued efforts to manage costs, improve operational efficiency and exercise greater discipline in the prevailing market conditions. COMMITMENT TO GOOD CORPORATE GOVERNANCE The Board of Directors recognises that strong corporate governance is fundamental to maintaining stakeholder confidence and supporting the long-term sustainability of the Group. We remain committed to conducting our business with integrity, accountability and transparency, in line with established corporate governance principles and best practices. The Board and senior management are committed to upholding high standards of corporate governance and business ethics across the Group's operations. Our governance framework is supported by, among others, the Board Charter, Terms of Reference for Board Committees, Anti-Fraud and Anti-Corruption Policy, Fit and Proper Policy, Communication Policy, Conflict of Interest Policy, and Corporate Disclosure Policies and Procedures. SUSTAINABILITY STRATEGY AND PROGRESS Sustainability remains integral to the Group's long-term strategy, supporting business resilience and competitiveness amid evolving climate-related risks, regulatory requirements and stakeholder expectations. The Board retains ultimate responsibility for the Group's sustainability and climate related risks and opportunities, supported by the Risk and Sustainability Committee. In FY2026, the Steel Division established a climate transition pathway towards Net Zero carbon emissions by FY2050, supported by interim emissions reduction targets. This commitment reflects the Division's efforts to contribute to the objectives of the Paris Agreement and applicable national net-zero ambitions. The Group's sustainability priorities also take into account Malaysia's broader transition towards a more sustainable and competitive economy, including the National Energy Transition Roadmap ("NETR"), the New Industrial Master Plan 2030 ("NIMP 2030") and the Circular Economy Policy Framework. During the year, the Steel Division further strengthened its environmental transparency through the completion and verification of Life Cycle Assessments ("LCA") and Environmental Product Declarations ("EPD") for MCRC and MST. These assessments provide independently verified information on the environmental impacts of steel products throughout their life cycles, enhancing the Group's ability to respond to growing customer and supply-chain expectations for greater transparency on product-level environmental performance. This progress is particularly relevant as regulatory developments, including the European Union's Carbon Border Adjustment Mechanism ("CBAM"), place increasing emphasis on the carbon intensity of steel products. Strengthening carbon transparency and environmental performance will therefore remain important to the Group's market access and long-term competitiveness. Further details on the Group's sustainability strategy, performance, targets and governance are set out in the Sustainability Statement. PROSPECTS FOR THE NEW FINANCIAL YEAR As the Group enters FY2027, the global economic environment is expected to remain challenging. Geopolitical tensions, evolving US trade measures, monetary policy uncertainty, trade fragmentation and energy security concerns may continue to influence commodity prices, supply chains and business costs, while weather-related disruptions could add further volatility. In Malaysia, domestic demand, exports and investment are expected to remain important drivers of economic activity, supported by relatively moderate inflation and interest rates. The country also continues to benefit from the China+1 strategy, particularly in the electrical and electronics sector. Nevertheless, external uncertainties and rising business costs underscore the importance of strengthening domestic manufacturing capabilities, technological capacity and participation in higher-value segments of global supply chains. PROSPECTS FOR THE NEW FINANCIAL YEAR (CONT'D) Steel Outlook The domestic steel sector entered the second half of 2026 on a relatively stable footing, supported by resilient manufacturing activity and improving new orders. The Malaysia's Manufacturing Purchasing Managers' Index ("PMI") stood at 50.2 points in August 2026, signalling a return to expansion, while new orders recorded their fastest growth in eight months. However, subdued business confidence, geopolitical uncertainties and persistent cost pressures continue to temper the outlook. Domestic steel demand is expected to benefit from infrastructure and industrial development under the 13th Malaysia Plan ("13MP") and the Johor-Singapore Special Economic Zone ("JS-SEZ"). The continued expansion of hyperscale data centres and advanced manufacturing facilities, particularly in the southern and central regions, may also create opportunities for the Group. However, regional steel oversupply and potential trade diversion remain key challenges, with competition from foreign producers likely to exert further pressure on domestic steel prices and operating margins. Globally, measures to address steel overcapacity and protect domestic manufacturing are reshaping trade flows. In Europe, the implementation of the CBAM and the strengthened tariff rate quota ("TRQ") framework from July 2026 have added to the challenges facing the Group's exports to the region. Against this backdrop, the Group will focus on strengthening its market diversification, operational efficiency and cost competitiveness to navigate changing trade conditions and mitigate its exposure to external market risks. Food Outlook The Food Division is expected to continue facing challenges from elevated food and operating costs, adverse weather conditions and supply chain disruptions. The Group will focus on diversifying sourcing channels, strengthening supply resilience and enhancing domestic supply capabilities to better manage these pressures. TUNKU DATO' YAACOB KHYRA Executive Chairman