Assalamualaikum Warahmatullahi Wabarakatuh and Salam Sejahtera.

Dear Esteemed Shareholders,

On behalf of the Board of Directors, I am pleased to present the Annual Report of Golden Pharos Berhad (GPB or the Group) for the financial year ended 31 December 2025 (FY2025). This year marked a significant turning point for the Group, as we successfully returned to profitability following a period of operational variability. This recovery reflects the initial success of our measures to stabilise operations, strengthen financial discipline, and adapt to the evolving forestry and timber landscape.

FY2025 saw a recorded increase in revenue and a return to profit, supported by improved cost control and the absence of impairment charges recognised in the preceding year. To sustain this momentum, we have recalibrated our operating model to reduce exposure to external factors such as weather-related disruptions and labour constraints. By adopting a more selective approach to downstream operations, we have rationalised inefficient manufacturing activities, focusing on commercially viable areas and ensuring our capital and resources are allocated where they can generate the most value.

Our strategic direction now emphasises a gradual transition towards environmental and carbon-related value streams. By leveraging our forest concession assets, we are exploring new opportunities in carbon initiatives, which remain in the early stages but represent a resilient future for GPB. This shift is supported by enhanced governance and oversight; during the year, we upgraded our internal controls, inventory management practices, and financial monitoring tools to ensure every decision is grounded in accountability and long-term sustainability.

I am also proud to share that our commitment to innovation and ESG excellence has gained regional recognition. Our subsidiary, Kumpulan Pengurusan Kayu Kayan Trengganu Sdn Bhd (KPKKT), was awarded the Gold Medal & Special Industry Award at UniSZA’s 2025 Research and Innovation Week for its ‘e-Balak’ initiative. Furthermore, GPB’s status on the FTSE4Good Bursa Malaysia (F4GBM) Index improved from a 2-star to a 3-star rating, highlighting our progressive advancement in environmental and social governance.

As we look ahead, we remain mindful of the market pressures and regulatory requirements inherent to our industry. Our near-term focus is on maintaining operational stability and the efficient monetisation of our concessions. On behalf of the Board, I wish to express my deepest gratitude to our management and employees for their dedication, and to our shareholders, business partners, and the State Government of Terengganu for their unwavering support. Together, we are building a firmer foundation for a sustainable and prosperous future.

Thank you and wassalam.