Q1 - Quarterly Report for FPE 30 Jun 2026

Registration No. 200601022130 (741883-X)

Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the First Quarter Ended 30 June 2026

(The Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the audited financial statements of the Company for the financial year ended 31 March 2026 and the accompanying notes attached to this interim financial report.)

Registration No. 200601022130 (741883-X)

Unaudited Audited

At 30 June 2026 At 31 Mar 2026 RM'000 RM'000

ASSETS

Non current assets

Property, plant and equipment 2,584,665 2,609,535

Capital work in progress 341,990 338,720

Intangible assets 28,649 30,659

Right-of-use assets 2,780 1,550

Goodwill 2,348 2,348

Deferred tax assets 1,061 1,278

2,961,493 2,984,090

Current assets

Inventories 465,451 326,737

Trade receivables 233,503 275,946

Other receivables 75,946 88,183

Derivative financial assets 953 -

Tax assets 54,665 77,854

Cash, bank balances and short-term investments 1,126,598 1,144,436 1,957,116 1,913,156

TOTAL ASSETS 4,918,609 4,897,246

EQUITY AND LIABILITIES

Share capital 1,692,061 1,692,061

Reserves 2,732,137 2,725,140

Equity attributable to owners of the Company 4,424,198 4,417,201

Non-controlling interests (587) (666)

Total Equity 4,423,611 4,416,535

Non current liabilities

Loans and borrowings 7,478 7,635

Lease liabilities 844 955

Deferred tax liabilities 200,931 183,294

209,253 191,884

Current liabilities

Trade payables 109,419 118,230

Other payables and accruals 167,725 165,666

Loans and borrowings 133 177

Dividend payables - -

Lease liabilities 2,017 677

(The Condensed Consolidated Statement of Financial Position should be read in conjunction with the audited financial statements of the Company for the financial year ended 31 March 2026 and the accompanying notes attached to this interim financial report.)

Registration No. 200601022130 (741883-X)

Unaudited Condensed Consolidated Statement of Changes in Equity For the First Quarter Ended 30 June 2026

Attributable to Owners of the Company

(The Condensed Consolidated Statement of Changes In Equity should be read in conjunction with the audited financial statements of the Company for the financial year ended 31 March 2026 and the accompanying notes attached to this interim financial report.)

AD

83-X)

Statement of Changes in Equity 2026

Attributable to Owners of the Company

Non-distributable Distributable

Share Treasury Share-based Translation Hedge Retained Capital Shares Payment Reserve Reserve Reserve Profits RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

1,692,061 (106,495) 8,257.00 (3,747) - 2,732,203

- - - - 12,610 2,646

- - - (262) -

he period - - - (262) 2,646 12,610

HARTALEGA HOLDINGS BERH

GS - - (488) - -

- - (488) - - -

1,692,061 (106,495) 7,769 (4,009) 2,646 2,744,813

Registration No. 200601022130 (7418 Unaudited Condensed Consolidated For the First Quarter Ended 30 June

(The Condensed Consolidated Statement of Changes In Equity should be read in conjunction with the audited financial statements of the Company for the financial year ended 31 March 2026 and the accompanying notes attached to this interim financial report.)

Interest income (3,457) (

Interest expense 58

Fair value gain on derivatives - (

(Reversal of)/Share-based payment expense 1,164

(Reversal of)/Allowance for inventories (1,392)

Unrealised loss on foreign exchange 2,686 1

Loss/(gain) on disposal of property, plant and equipment 23 (1 Fair value gain on short term investment (2,287) (

Reversal of allowance for doubtful debts - (

Property, plant and equipment written off 78

Impairment loss on assets, net -

Operating profit before changes in working capital 125,569 4

Changes in working capital

Net change in inventories (137,322) 2

Net change in receivables 52,398 2

Net change in payables (6,751) (

Cash generated from operations 33,894 8

Tax refund/(Tax paid) 19,860 (

Net cash generated from operating activities 53,754 8

Cash Flows used in Investing Activities

Proceeds from disposal of property, plant and equipment 79 1

Addition to:

Property, plant and equipment (68) (

Capital work-in-progress (18,090) (2

Intangible assets -

Income received from fixed income fund 3,687

Acquisition of a subsidiary - (

Interest received 3,457

Increase in deposits maturing more than three months (403) (3

Net cash used in investing activities (11,338) (4

Cash Flows used in Financing Activities

Repayment of term loan (200) (

Repayment of lease liabilities (297)

Interest paid (59)

Dividends paid (61,334)

Net cash used in financing activities (61,890) (

Net (decrease)/increase in cash and cash equivalents (19,474) 3

Effect of exchange rate fluctuations on cash and cash equivalents (1,054) (

Fair value change on short-term investments 2,287

Cash and cash equivalents at beginning of period 1,104,834 92

Cash and cash equivalents at end of period 1,086,593 95

(The Condensed Consolidated Statement of Cash Flows should be read in conjunction with the audited financial statements of the Company for the financial year ended 31 March 2026 and the accompanying notes attached to this interim financial report.)

Notes to the Interim Financial Report for the First Quarter Ended 30 June 2026

1. NOTES PURSUANT TO THE MALAYSIAN FINANCIAL REPORTING STANDARD 134 (MFRS 134): INTERIM FINANCIAL REPORTING

   A1. Basis of Preparation

   The interim financial report is unaudited and has been prepared in accordance with requirements of paragraph 9.22 (Appendix 9B part A) of the Main Market Listing Requirements ("Listing Requirements") of the Bursa Malaysia Securities Berhad ("Bursa Securities") and complies with requirements of the Malaysian Financial Reporting Standards 134 (MFRS 134): Interim Financial Reporting issued by the Malaysian Accounting Standards Board ("MASB"), International Accounting Standard ("IAS") 34: Interim Financial Reporting issued by the International Accounting Standards Board ("IASB"), Companies Act 2016 in Malaysia.

   The significant accounting policies and methods of computation adopted in the preparation of this interim financial report are consistent with those adopted in the audited financial statements of the Group for the financial year ended 31 March 2026.

   Standards and Amendments in Issue but Not Yet Effective

   At the date of authorisation for issue of these financial statements, the new MFRSs and Amendments to MFRSs which were in issue but not yet effective and not early adopted by the Group are as listed below:

   MFRS 18 Presentation and Disclosure in Financial Statements1

   MFRS 19 Subsidiaries without Public Accountability: Disclosures1

   Amendments to MFRS 10 and MFRS 128

   Sale or Contribution of Assets between an Investor and its Associate or Joint Venture2

   Amendments to MFRS 19 Subsidiaries without Public Accountability: Disclosures1

   Amendments to MFRS 121 The Effects of Changes in Foreign Exchange Rates:

   Translation to a Hyperinflationary Presentation Currency1

   1 Effective for annual periods beginning on or after 1 January 2027, with earlier application permitted.

   2 Effective date deferred to a date to be announced by MASB.

   The directors anticipate that the abovementioned Standards and Amendments will be adopted in the annual financial statements of the Group and of the Company when they become effective and that the adoption of these Standards and Amendments will have no material impact on the financial statements of the Group and of the Company in the period of initial application other than below:

   MFRS 18 Presentation and Disclosure in Financial Statements

   The MFRS 18 Presentation and Disclosure in Financial Statements replaces MFRS 101, carrying forward many of the requirements in MFRS 101 unchanged and complementing them with new requirements.

   MFRS 18 introduces new requirements to improve companies reporting of financial performance:

   • present specified categories and defined subtotals in the statement of profit or loss

   • provide disclosures on management-defined performance measures in the notes to financial statements

   • improve aggregation and disaggregation

   The adoption of MFRS 18 is expected to have an impact on the financial statements of the Group and of the Company in the period of initial application. However, it is not practicable to provide a reasonable estimate of the effect of the adoption of the said MFRS 18 until the Group and the Company undertake a detailed review.

   The interim financial report should be read in conjunction with the audited financial statements of the Group for the financial year ended 31 March 2026 and the accompanying explanatory notes attached to this interim financial report.

   A2. Auditors' Report

   The auditors' report for the immediate preceding annual financial statements of the Group for the financial year ended 31 March 2026 is not subject to any qualification.

   A3. Seasonal and Cyclical Factors

   The principal business operations of the Group were not affected by any seasonal and cyclical factors.

   A4. Items of Unusual Nature and Amount

   There were no items affecting the assets, liabilities, equity, net income or cash flows of the Group that are unusual because of their nature, size or incidence for the current quarter and financial year-to-date.

   A5. Changes in Estimates of Amount Reported Previously

   There were no changes in the estimates of amounts reported in the prior financial years that have a material effect in the current quarter or financial year-to-date.

   A6. Issuances, Repurchases and Repayments of Debt and Equity Securities

   There were no issuance and repayments of debt and equity securities during current quarter under review.

   At the end of the financial year-to-date under review, there were 20,145,000 ordinary shares which were held as treasury shares in accordance with the requirement of Section 127 of the Companies Act 2016. The number of ordinary shares in issue after deducting treasury shares is 3,407,461,863.

   A7. Dividends Paid

   A final single tier exempt dividend of 1.80 sen per share amounting to RM61,334,314 in respect of the financial year ending 31 March 2027, was declared on 5 May 2026 and paid on 16 June 2026.

   A8. Segment Information

   The Group's business mainly comprises the manufacturing and sale of nitrile and latex gloves and its manufacturing activities are operated solely in Malaysia. On this basis, the Chief Executive Officer reviews the operating results of the Group as a whole. Accordingly, no reportable operating segment is presented.

   A9. Valuation of Property, Plant and Equipment

   The valuations of property, plant and equipment have been brought forward without amendment from financial year ended 31 March 2026 annual audited financial statements.

   A10. Capital Commitments

   Capital commitments in respect of property, plant and equipment as at end of the current quarter and financial year-to-date are as follows: -

   30 June 2026

   RM'000

   Approved and contracted for 146,181

   A11. Material Events Subsequent to the End of Period Reported

   There were no material events after 30 June 2026 and up to the latest practicable date 28 July 2026 that have not been reflected in the financial statements for the current quarter and financial year-to-date.

   A12. Changes in the Composition of the Group

   There were no changes in the composition of the Group during the quarter under review.

   A13. Contingent liabilities and Contingent Assets

   On 4 August 2025, Hartalega NGC Sdn. Bhd., a wholly owned subsidiary of the Company, received Notices of Additional Assessments from the Inland Revenue Board of Malaysia ("IRB") amounting to approximately RM 101.36 million for the Years of Assessment 2017, 2018, 2020 and 2021. The subsidiary has initiated judicial review proceedings against the IRB's decision and the matter is currently pending before the High Court.

   The Directors, based on legal advice, are of view that it is not practicable to determine the likely outcome of the case at this stage. Accordingly, no provision has been made and the matter is disclosed as contingent liability.

2. ADDITIONAL INFORMATION REQUIRED BY BURSA MALAYSIA'S LISTING REQUIREMENTS

B1. Review of Performance of the Company and its Subsidiaries

1st Quarter Ended

/Year-To-Date

Q1 FY2027 vs Q1 FY2026

For the current quarter ended 30 June 2026 (Q1FY27), the Group recorded revenue of RM605.8 million, an increase of RM52.6 million or 9.5%, as compared to the corresponding quarter of the previous financial year (Q1FY26). The revenue growth was primarily driven by higher average selling prices (ASPs), which more than offset the lower sales volumes and helped mitigate the impact of higher raw material costs arising from the Middle East conflict.

The Group recorded an operating profit of RM80.0 million for the quarter, an increase of RM72.3 million compared to Q1FY26. The improvement was mainly driven by higher ASPs and ongoing cost optimisation initiatives, including tighter cost control, improved production efficiency, and lower unit production costs. These measures helped mitigate the impact of lower sales volume and pricing pressure in a highly competitive market.

The Group registered a profit before tax of RM90.5 million, compared with RM14.3 million in Q1FY26. The increase was primarily attributable to higher operating profit, increased investment-related income and significantly lower net foreign exchange losses during the period. While revenue and profitability improved, the operating environment remained challenging. Industry-wide oversupply, intense price competition from Chinese manufacturers, structural overcapacity, and ongoing geopolitical uncertainties continue to weigh on performance.

B2. Material Changes in the Quarterly Results Compared to the Results of the Preceding Quarter

Q1 FY2027 vs Q4 FY2026

The Group recorded revenue of RM605.8 million for the quarter, an increase of RM90.3 million, or 17.5%, compared with the immediate preceding quarter (Q4FY26). The growth was primarily driven by higher ASPs, which more than offset lower sales volumes and helped mitigate the impact of rising raw material costs.

Operating profit rose by RM46.1 million, or 135.8%, to RM80.0 million, supported by higher revenue, improved production efficiency, and lower unit production costs.

Profit before tax increased by RM40.2 million, or 79.9%, to RM90.5 million from RM50.3 million in Q4FY26. This improvement reflected stronger operating performance, partly offset by a decline in net other operating income.

B3. Commentary on Prospects and Targets

The Group remains cautiously optimistic of the long-term prospects of the global glove industry, supported by growing hygiene awareness, expanding healthcare access in emerging markets, and demand that continues to exceed pre-pandemic levels. The clearance of pandemic-era stockpiles has led to healthier customer inventory levels, although ordering patterns remain uneven, and recovery conditions vary across markets.

Against this backdrop, the Group delivered an improved performance during the quarter despite ongoing geopolitical uncertainties and challenging industry conditions. Stronger results were underpinned by higher ASPs, improved production efficiency, lower unit production costs and disciplined cost management, which together helped mitigate the impact of higher input costs and market volatility.

Near-term conditions are expected to remain challenging. Continued uncertainty surrounding U.S. tariff policies is reshaping global trade flows. While China's glove exports to the U.S. have declined significantly, excess capacity has been redirected to non-U.S. markets, intensifying price competition and exerting pressure on volumes and margins across the industry, particularly in Europe, Asia and emerging markets.

Heightened geopolitical tensions, particularly the ongoing Middle East conflict, add further uncertainty to energy markets and global supply chains, with potential knock-on effects on crude oil prices, nitrile butadiene rubber latex costs and logistics expenses. Raw material prices, foreign exchange movements, customer ordering patterns and supply chain conditions are expected to remain volatile.

The Group continues to manage these risks through a diversified supplier base, flexible logistics arrangements and prudent inventory management, while maintaining close collaboration with both suppliers and customers to safeguard supply continuity and enhance supply chain transparency.

Notwithstanding structural challenges facing the industry, including global overcapacity and intensifying competition from Chinese manufacturers, the Group remains well positioned to navigate near-term headwinds. Ongoing investment in automation and technology upgrades, together with disciplined cost optimisation and operational agility, are expected to strengthen the Group's competitiveness, enhance operational resilience and support sustainable margin improvement over the longer term.

The Group remains committed to high standards of social compliance and responsible manufacturing. Its ESG framework, aligned with evolving global expectations, is expected to play an increasing role in reinforcing stakeholder confidence, particularly amid heightened scrutiny on supply chain resilience, ethical sourcing and responsible business practices.

The Group remains confident that these measures will support sustainable growth, reinforce its competitive position and deliver long-term value to its stakeholders.

B4. Variance of Profit Forecast/Profit Guarantee

Not applicable as no profit forecast/profit guarantee was issued.

B5. Profit Before Tax for the Period

Profit before tax for the period is arrived at after crediting/(charging):

1st Quarter Ended Year-To-Date

B6. Taxation

Current Quarter RM'000

Current tax expense 2,533

Deferred tax income 17,808

20,341

The Group's effective tax rate for the quarter is lower than the statutory tax rate, primarily due to the utilisation of unabsorbed capital allowances brought forward from prior years and certain income that is not subject to tax.

B7. Status of Corporate Proposal

As at the latest practicable date, 28 July 2026, there was no corporate proposal announced and not completed in the current quarter and financial year-to-date.

B8. Group Borrowings and Debt Securities

Total Group borrowings as at 30 June 2026 are as follows:

As at 30 June 2026 As at 30 June 2025

Currency Currency

B9. Financial Derivative Instruments

As at 30 June 2026, the outstanding foreign currency forward contracts are as follows:

Contract notional amount Fair value

As at 30

June 2026

As at 30

June 2025

As at 30 June 2026

As at 30

June 2025

RM'000 RM'000 RM'000 RM'000

Derivative Financial Assets Non-hedging derivative at fair value through profit or loss:

- USD denominated 27,773 171,821 953 2,309

Derivative Financial Liabilities

Hedging derivative at fair value through other comprehensive income:

- USD denominated 290,914 21,243 (5,986) (454)

The Group enters into foreign currency forward contracts to hedge its estimated net exposure to movements in exchange rates arising mainly from sales and purchases denominated in foreign currency.

As foreign currency contracts are hedged with creditworthy financial institutions in line with the Group's policy, the Group does not foresee any significant credit risks.

B10. Material Litigation

As at the latest practicable date, 28 July 2026, there were no material litigations against the Group or taken by the Group.

B11. Dividend

No dividend was proposed or declared for the current quarter under review.

B12. Earnings per Share

Basic Earnings Per Share

Profit attributable to owners of

Current Quarter Ended

30 June 2026

Corresponding Quarter Ended 30 June 2025

Current Year-To-

Date 30 June 2026

Corresponding Year-To-Date 30 June 2025

the parent (RM'000) 70,030 12,610 70,030 12,610

Weighted average number of

ordinary shares in issue ('000) 3,407,461 3,414,677 3,407,461 3,414,677

Earnings per share (sen) 2.06 0.37 2.06 0.37

Diluted Earnings Per Share

Profit attributable to owners of

Current Quarter Ended

30 June 2026

Corresponding Quarter Ended 30 June 2025

Current Year-To-

Date 30 June 2026

Corresponding Year-To-Date 30 June 2025

the parent (RM'000) 70,030 12,610 70,030 12,610

Weighted average number of

ordinary shares in issue ('000) 3,407,461 3,413,262 3,407,461 3,413,262

Effect of dilution arising from Employees Share Grant

Scheme ('000) 805 2,325 805 2,325

Adjusted weighted average number of ordinary shares in

issue and issuable ('000) 3,408,266 3,415,587 3,408,266 3,415,587

Earnings per share (sen) 2.05 0.37 2.05 0.37