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 2025 ("FY2025"). OUR BUSINESS AND OPERATIONS The Group's core operations remain anchored in the steel industry, primarily through its 74.13% stake in the listed subsidiary, Mycron Steel Berhad ("Mycron"), which is engaged in the manufacturing of Cold Rolled Coil ("CRC") steel sheets and Steel Tubes and Pipes ("Steel Tube"). In addition to steel, the Group also manages other businesses through its two wholly-owned subsidiaries: Ausgard Quick Assembly Systems Sdn Bhd ("AQAS"), which develops commercial and residential structures for niche property markets using the Industrialised Building System ("IBS"); and Bumi Sdn Bhd ("3Bumi"), which is involved in the trading and distribution of food products. FINANCIAL PERFORMANCE FY2025 proved to be a particularly challenging year, as the Group contended with a volatile operating landscape characterised by persistently weak global steel prices, rising competition from imports, and trade headwinds triggered by geopolitical tensions. The year was further weighed down by the imposition of US tariffs and the removal of Malaysian and Vietnamese steel mills from Mexico's approved exporter list, which collectively disrupted external trade flows. Against this backdrop, the Group's revenue declined by 10% to RM728.8 million, from RM810.2 million in FY2024. The reduction was mainly attributable to weaker overseas demand, which drove a 31% contraction in CRC segment export sales and a 28% decline in the Steel Tube segment. In addition, average unit selling prices for both CRC and Steel Tube products fell by 11%, reflecting the sustained downtrend in global steel prices. FINANCIAL PERFORMANCE (CONT'D) As a result, the Group posted a net loss of RM8.4 million for FY2025, compared with a net profit of RM9.6 million in the preceding year. This translated into a loss per share of 2.24 sen, versus earnings per share of 1.43 sen in FY2024. Despite the weaker earnings, the Group continues to maintain a sound financial position. As of 30 June 2025, Group shareholders' equity stood at RM419.0 million, representing a net asset value per share of RM1.17. Net debt was reduced significantly to RM23.3 million, from RM64.2 million a year earlier, resulting in a lower net gearing ratio of 4% (FY2024: 12%), which remains well within the Group's debt capacity. STEEL DIVISION Mycron's steel operations are carried out through three subsidiaries: Mycron Steel CRC Sdn Bhd ("MCRC"), which operates in the midstream segment by converting Hot Rolled Coil ("HRC") into thinner gauge CRC steel sheets; Melewar Steel Tube Sdn Bhd ("MST"), which is in the downstream segment, manufacturing Steel Tubes from HRC or CRC; and Silver Victory Sdn Bhd ("SV"), a smaller unit engaged in trading steel-related products. STEEL DIVISION (CONT'D) Steel Operation Review In the first financial quarter of FY2025, the Steel Division reported revenue of RM198.4 million and a Loss Before Tax ("LBT") of RM2.6 million. Performance was adversely affected by the steepest and longest steel price downtrend since the pandemic, with prices falling below USD490/tonne in September 2024. Competitive pressures intensified from both legal and illegal imports, particularly from China. Export demand was softer, HRC-CRC price spreads narrowed, and a sharp Ringgit appreciation further eroded margins. Nevertheless, the division sustained export sales, which contributed 20% of total revenue for the quarter. In the second financial quarter, revenue rose 3% quarter-on-quarter to RM204.1 million, supported by stronger sales volumes in the CRC segment (up 13% mainly from exports) and the Steel Tube segment (up 6%). However, the positive volume effect was tempered by lower average selling prices, in line with the ongoing steel price downtrend. The division also benefited from a net foreign exchange gain of RM1.3 million, compared with a net loss of RM2.9 million in the preceding quarter, as the Ringgit depreciated against both the USD and SGD after its sharp appreciation in Quarter 1. Consequently, the division returned to profitability with a Profit Before Tax ("PBT") of RM1.9 million. In the third financial quarter, revenue fell sharply by 26% to RM151.6 million, driven by lower sales volumes in both CRC segment (down 28% due to weaker exports) and the Steel Tube segment (down 22% due to heavier Chinese pipe imports). Seasonal factors, including fewer working days during the Chinese New Year and Ramadan, further reduced sales. Although steel prices stabilised during the quarter, external conditions worsened: the US proposed heavy levies on Chinese-owned or flagged vessels (on 21 February 2025), a 25% tariff was imposed on all imports from Mexico and Canada (effective 4 March 2025) and the US extended a blanket 25% tariff on all steel and aluminium imports under Section 232 of the Trade Expansion Act 1962, removing all prior exemptions (effective 12 March 2025). These measures disrupted regional supply chains and severely curtailed the Steel Division's export orders, margins, and deliveries to the US and related markets. In the fourth financial quarter, the Steel Division's performance rebounded, with revenue rising 11% quarter-on-quarter to RM167.8 million. CRC segment sales volumes grew 11%, while Steel Tube segment volumes surged 39%, partly reflecting recovery from the shorter working period in Quarter 3. However, margins remained under pressure as diverted Chinese steel exports flooded the region, compounding the impact of US tariffs. Gross profit fell 29%, further weighed down by a RM0.7 million impairment on property, plant, and equipment. FOOD DIVISION The Food Division, managed under 3Bumi, continues to represent a relatively small share of the Group's overall business portfolio. In FY2025, performance remained underwhelming, largely reflecting subdued consumer sentiment. Rising food price inflation and affordability concerns dampened household spending, including during festive periods when demand would typically strengthen. Domestic sales were weaker than expected, and overall market conditions remained lacklustre. As a result, divisional revenue declined by 17% year-on-year to RM6.8 million. The division maintained a stable LBT of RM4.9 million, broadly unchanged from the previous year. COMMITMENT TO GOOD CORPORATE GOVERNANCE The Board has continued to exercise clear oversight and provide strategic guidance in navigating an increasingly complex regulatory and risk landscape. The Group remains committed to upholding strong governance practices, with the Board actively engaging management on matters of strategy, risk management, and stakeholder expectations. The Board firmly believes that sound governance is essential to sustaining the Company's long-term performance and its ability to deliver consistent value to shareholders. SUSTAINABILITY INTEGRATION & DIRECTION In FY2025, the Group made notable progress in advancing its environmental and social agenda, with ESG (Environmental, Social, and Governance) considerations increasingly embedded into operations. The adoption of IFRS S1 and S2 standards has strengthened climate-related disclosures and integrated risk management into business decisions-an important step toward building long-term resilience. Aligning ESG with enterprise risk management has further enhanced the Group's ability to anticipate and respond to emerging challenges, including supply chain disruptions, regulatory developments, and climate-related risks. The Group remains mindful of its responsibility to society and the environment. Ongoing sustainability initiatives focus on improving the social and economic wellbeing of local communities, while advancing environmental commitments such as reducing carbon emissions and water usage, enhancing waste management, and embedding sustainable practices across operations. These initiatives are central to creating long-term value and delivering on the Group's ESG priorities. Consistent with the previous year, the Group has undertaken limited assurance on selected sustainability information, underscoring its commitment to transparency and accountability. Further details are set out in the Sustainability Statement. PROSPECTS FOR THE NEW FINANCIAL YEAR As the Group enters FY2026, the operating landscape is expected to remain challenging and volatile against a backdrop of persistent global uncertainties. Domestically, the new financial year has already seen cost escalations, including higher sales and service taxes, port tariffs, electricity tariff adjustments, rising wages and logistics costs. These increases will substantially impact production and operating expenses, most of which cannot be passed on to customers due to the pricing inelasticity of steel and food products and the availability of lower-priced import alternatives. This rising cost of doing business, seen in recent years, continues to erode the competitiveness of Malaysia's steel manufacturers and food traders. Steel Division Outlook Global steel dynamics remain pressured. Although China's announced production cuts may help partially rebalance supply, they are unlikely to fully offset the short-term oversupply caused by aggressive export activity. At the same time, stimulus measures in China have yet to deliver meaningful demand recovery. With global demand subdued and competition intensifying, Malaysia's steel sector continues to face significant import pressure. On the domestic front, the S&P Global Manufacturing PMI rose to 49.9 in August 2025, the highest since February 2025, though it remained below the neutral 50 mark for the 12th consecutive month, signalling continued contraction. Encouragingly, the Government has taken measures to cushion external pressures by accelerating National Plan projects and easing banking reserve requirements to boost liquidity. Recent enforcement actions against smuggled and mis-declared steel imports have also helped curb unfair trade, while local steel associations are actively promoting greater localisation of steel usage among foreign-owned businesses. These measures have supported a gradual recovery in domestic demand, particularly for Cold Rolled Coils. PROSPECTS FOR THE NEW FINANCIAL YEAR (CONT'D) Food Division Outlook Globally, the meat market (fresh and processed) is expected to record steady growth in developing economies, though demand in advanced markets may moderate as consumers shift toward healthier and more sustainable diets. Geopolitical risks, including armed conflicts and political instability, continue to drive volatility in staple food markets, complicating global trading strategies. Price fluctuations and supply disruptions from key exporters remain significant challenges for food traders. In Malaysia, higher business costs are putting additional pressure on food prices. With wholesale and retail margins already compressed, statutory cost increases risk undermining affordability and competitiveness. Businesses remain cautious about raising prices, given signs of consumer pullback. Recognising these headwinds, the Group intends to reposition the Food Division through a more strategic approach. Key initiatives under review include: Product portfolio realignment - focusing on higher margin or niche categories with more resilient demand; Cost optimisation - improving operational efficiency to narrow losses; New sales channels - expanding into e-commerce and forming partnerships with established retailers to expand market reach; and Selective export expansion - leveraging overseas demand for Malaysian food products. These initiatives will be critical in determining whether the Food Division can deliver sustainable growth and meaningful contributions, or whether its role should be reshaped within the Group's broader portfolio strategy. CONCLUSION In conclusion, the Group acknowledges that FY2026 will remain a demanding year, with rising costs and global headwinds weighing on performance. Nevertheless, opportunities exist through resilience, efficiency, and strategic adaptation. Key initiatives-including pursuing anti-dumping measures, expanding into new markets, and strengthening stakeholder engagement are expected to enhance competitiveness and support the Group's long-term growth trajectory. ACKNOWLEDGEMENTS On behalf of the Board, I would like to express my profound appreciation and thanks to all our people across the Group for their dedication, hard work and contributions throughout FY2025. Their commitment and perseverance remain central to the Group's continued progress and resilience. I would also like to convey my sincere thanks to my fellow Board members for their steadfast support, strategic input and guidance during the past year. To our valued business partners, customers, suppliers, and shareholders; we deeply appreciate your trust and unwavering support. TUNKU DATO' YAACOB KHYRA Executive Chairman