Quarterly Report For The Financial Period Ended 31 March 2025

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Unaudited Condensed Consolidated Statements Of Profit Or Loss For The Quarter And Year-To-Date
Ended 31 March 2025

Unaudited Condensed Consolidated Statements of Financial Position
As at 31 March 2025

Group's Financial Performance Review

For the first quarter ended 31 March 2025 ("Q1 2025"), the Group recorded a more than twofold increase in profit after tax attributable to owners of the Company (PATAMI), rising to RM7.14 million from RM3.03 million in Q1 2024. This improved profitability was mainly driven by higher gross margins from cost-efficient liquid fertiliser production under the Manufacturing Division, which remained the key earnings contributor. The Group's other divisions, including Property & Construction and Printing & Publishing, recorded weaker results, with the former remaining in the investment phase and the latter impacted by revenue contraction and absence of one-off income. Overall, the Group's earnings growth reflects enhanced operational efficiency and margin expansion, anchored by its core manufacturing operations.

The Group reported operating revenue of RM14.08 million for Q1 2025, compared to RM13.32 million in Q1 2024, representing a 9% yearon-year increase. This was mainly attributable to the continued strong contribution from the liquid fertiliser segment, which remained the Group's largest revenue source. While the segment experienced a slight decline due to seasonal delivery timing and temporary softening in sales volume, it continued to underpin the Group's top-line performance. Additionally, the pulp and paper product segment recorded a 60% increase in revenue to RM3.77 million (Q1 2024: RM2.36 million), supported by improved market demand and higher sales volume. Revenue from printing services and book sales dropped significantly as the Group continued rationalization of its printing division.

Cost of sales decreased by 26%, from RM7.55 million to RM5.57 million, supported by operational efficiencies and improved production cost control. In particular, the cost efficiencies achieved in the manufacturing of liquid fertiliser-driven by the utilisation of in-house byproducts such as black liquor-contributed significantly to overall margin improvement.

As a result, gross profit increased by 54% year-on-year to RM8.52 million (Q1 2024: RM5.77 million). Gross profit margin strengthened significantly, supported by higher contribution from lower-cost inputs and improved scale efficiency.

Other income more than doubled to RM3.33 million (Q1 2024: RM1.46 million), supported by higher black liquor sales, disposal of equipment, and minor recurring income from rental and government grants.

Operating expenses remained tightly managed. Selling, distribution and promotional expenses declined by 60% to RM15,000. Employee salaries and benefits increased by 4% to RM1.53 million, while administrative expenses rose by 30% to RM1.10 million, primarily due to corporate exercise-related professional fees. Depreciation, impairment, and amortization increased by 22% to RM825,000, in line with recent capital investments.

Profit from operations more than doubled to RM8.37 million, compared to RM4.20 million in Q1 2024. Net finance cost remained relatively stable at RM1.24 million. As a result, profit before tax (PBT) surged to RM7.14 million, up from RM3.02 million in the corresponding quarter.

There was no income tax expense reported for the quarter under review, consistent with Q1 2024, as the profit-generating entities are currently enjoying a tax incentive period and are also utilising unabsorbed capital allowances and carried-forward business losses to offset taxable income.

Commentary on Prospects and Targets

The Group remains focused on strengthening its core manufacturing operations and enhancing long-term value through the continued development of its flagship Green Technology Park (GTP) in Pekan, Pahang. With various projects advancing across the pulp and paper, fertilizer, animal feed, and biomass sectors, the Group anticipates sustained growth in revenue and profitability over the coming quarters.

A key milestone was achieved on 16 April 2025 with the signing of a Joint Venture Agreement (JVA) between the Group's subsidiary, Nextgreen IOI Pulp Sdn Bhd, and Hong Kong Paper Source Co., Limited, a wholly owned subsidiary of Xiamen C&D Paper & Pulp Group Co., Limited. Pursuant to the agreement, a joint venture company, Neuwhite Paper Pulp Sdn Bhd ("NWPP"), was incorporated on 29 April 2025. NWPP will be responsible for the development and operation of a bleached chemical empty fruit bunch (EFB) pulp mill with an annual production capacity of 150,000 metric tons, to be implemented under Phase 2A of the Green Technology Park (GTP).

In the Fertilizer segment, the Group's wholly owned subsidiary, Nextgreen Fertilizer Sdn Bhd (NGF), is currently constructing a solid fertilizer manufacturing facility with an annual production capacity of 30,000 metric tons, targeted for completion by the third quarter of 2025. Concurrently, NGF is also producing liquid fertilizer by converting black liquor-a by-product from the Group's pulp and paper operations- into a high-performance organic input, with an expected annual output of approximately 30,000 metric tons. To support this initiative, an automated liquid fertilizer facility is under development and is scheduled for completion alongside the solid fertilizer plant. Both facilities are expected to commence commercial production within the third quarter of 2025, and are anticipated to contribute positively to the Group's revenue and profitability going forward. In addition, NGF has signed a distribution agreement to penetrate the Libyan fertilizer market, with an expected annual supply of up to 25,000 metric tons, comprising both solid and liquid fertilizer products.

In the animal feed segment, preliminary works have commenced under Nextgreen Agrofeed Sdn Bhd for a facility with a projected annual capacity of 10,000 metric tons, which is now targeted for completion in the fourth quarter of 2025. This facility will strengthen the Group's product offerings in the agro-industrial sector and is expected to contribute positively to the Group's future revenue streams.

Meanwhile, GTC Biomass Berhad, a 65%-owned special-purpose vehicle, is leading the development of a nationwide network of 20 Collection and Processing Centers (CPCs) for oil palm biomass waste. The first CPC is currently being developed within the GTP, with additional locations identified in Gua Musang, Kelantan, and Sandakan, Sabah.

In parallel, the Group is undertaking a strategic land optimization study within the GTP to identify subdivided plots suitable for future joint venture developments, which will support long-term tenancy growth and infrastructure investments within the park.

While the Group's legacy printing operations continue to serve niche external customers and internal needs, the segment has faced increasing challenges-particularly due to the accelerated shift toward digital platforms and the limitations of aging printing infrastructure, which have impacted its competitiveness.

Acknowledging these market dynamics, the Group has repositioned its strategic focus toward higher-margin, sustainable sectors, such as green manufacturing, zero-waste innovation, and the circular economy, all of which are anchored within the Green Technology Park (GTP).

While the Group's legacy printing operations continue to support internal needs and a small group of long-standing loyal customers, the segment is no longer a key growth driver. In line with the Group's strategic direction, priority has been placed on strengthening and expanding the manufacturing segment within the Green Technology Park (GTP), which is expected to deliver long-term value and sustainable growth.

The Group remains committed to delivering long-term stakeholder value through its expanding portfolio of green manufacturing and industrial development projects, in line with its sustainability-led growth strategy

In summary, the Group's prospects remain positive, supported by the ongoing commercialisation of new facilities, execution of strategic partnerships, and Malaysia's broader shift toward sustainable development. These initiatives are expected to strengthen the Group's position as a key player in the green technology and circular economy ecosystem, while generating sustainable earnings and long-term shareholder value