Pekat Group Berhad (201901011563 (1320891-U))
Interim Financial Report on Consolidated Results
for the Second Quarter Ended 30 June 2024
Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income

Note

Three Months Ended
30.06.2024
30.06.2023
Unaudited
Unaudited
RM’000
RM’000

RevenueSix Months Ended
30.06.2024
30.06.2023
Unaudited
Unaudited
RM’000
RM’000

Cost of sales

56,566(39,826)

59,453(46,529)

114,199(82,656)

106,270(81,303)

Gross profit

16,74012,92431,54324,967416(10,056)-557(8,024)(194)

678(19,367)-694(15,270)(778)

Operating profit

7,100

5,263

12,854

9,613

Finance income
Finance costs
Share of (loss)/profit in associates

197
(169)
(555)

110
(557)
(102)

301
(277)
(649)

274
(910)
53

Profit before tax

6,573

4,714

12,2299,030(1,917)(1,244)(3,768)(2,358)

4,656

3,470

8,461

6,672

-

-

-

-

4,656

3,470

8,461

6,672

Other income
Administrative expenses
Other expenses

Tax expense
Profit for the period¤

B5

Other comprehensive income forthe period, net of tax
Total comprehensive income forthe period1Pekat Group Berhad (201901011563 (1320891-U))
Interim Financial Report on Consolidated Results
for the Second Quarter Ended 30 June 2024
Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income(continued)

Note

Three Months Ended
30.06.2024
30.06.2023
Unaudited
Unaudited
RM’000
RM’000Six Months Ended
30.06.2024
30.06.2023
Unaudited
Unaudited
RM’000
RM’000

Profit attributable to:
Owners of the Company
Non-controlling interests

Total comprehensive income
attributable to:
Owners of the Company
Non-controlling interests

4,639
17

3,477
(7)

8,423
38

6,639
33

4,656

3,470

8,461

6,672

4,639
17

3,477
(7)

8,423
38

6,639
33

4,656

3,470

8,461

6,672

Earnings per share:
Basic (sen)

B10

0.72

0.54

1.31

1.03

Diluted (sen)

B10

N/A

N/A

N/A

N/A

(1)

The Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income
should be read in conjunction with the audited financial statements of the Group for the financial year ended
31 December 2023 and the accompanying explanatory notes attached to these interim financial statements.

*N/A denotes not applicable.

2Pekat Group Berhad (201901011563 (1320891-U))
Interim Financial Report on Consolidated Results
for the Second Quarter Ended 30 June 2024
Condensed Consolidated Statement of Financial Position

Note

30.06.2024
Unaudited
RM’00031.12.2023
Audited
RM’000ASSETS
Non-current assets
Property, plant and equipment
Investment property
Intangible assets

24,513
142
127

23,436
144
183

Investment in associates

10,928

11,177

Amount due from an associate

1,330

1,330

Total non-current assets

37,04036,270Current assets
Other investments

18,657

4,413

Inventories
Trade receivables
Contract assets
Other receivables

27,107
51,11333,252
1,644

24,87447,43329,144
7,434

Amount due from associates

3,879

4,014

Tax recoverable
Fixed deposits with licensed banks
Cash and bank balances

2,152
160
24,4281,760
3,084
23,944

Total current assets

162,392

146,100

TOTAL ASSETS

199,432

182,370

EQUITY AND LIABILITIES
EquityShare capital
Merger reserve

93,516

93,516(50,080)(50,080)

Retained earnings

101,649

93,226

Non-controlling interests

145,085
154

136,662
116

Total equity

145,239

136,7783

Pekat Group Berhad (201901011563 (1320891-U))
Interim Financial Report on Consolidated Results
for the Second Quarter Ended 30 June 2024
Condensed Consolidated Statement of Financial Position (continued)

Note
EQUITY AND LIABILITIES (continued)
Liabilities
Non-current liabilities
Lease liabilities
Borrowings

B7

Deferred tax liabilities
Total non-current liabilities
Current liabilities
Trade payables
Contract liabilities
Other payables

30.06.2024
Unaudited
RM’00031.12.2023
Audited
RM’000

2,336
76

2,589
600

276

276

2,688

3,465

16,52014,36016,972

7,872

12,091
10,059

941

852

8,611

976

Tax payable

3,201

1,177

Total current liabilities

51,50542,127

Total liabilities

54,19345,592TOTAL EQUITY AND LIABILITIES

199,432

182,370

0.22

0.21

Lease liabilities
Borrowings

B7

Net assets per share attributable to owners of theCompany (RM)

(1)

The Unaudited Condensed Consolidated Statement of Financial Position should be read in conjunction
with the audited financial statements of the Group for the financial year ended 31 December 2023 and theaccompanying explanatory notes attached to these interim financial statements.

4Pekat Group Berhad (201901011563 (1320891-U))
Interim Financial Report on Consolidated Results
for the Second Quarter Ended 30 June 2024
Unaudited Condensed Consolidated Statement of Changes in Equity

Period ended 30 June 2024
At 1 January 2024
Total comprehensive income for the period
At 30 June 2024

< -----Non-Distributable----- > Distributable Attributable
NonMerger
Retained
to Owners of Controlling
Share Capital
Reserve
Earnings
the Company Interests
RM'000
RM'000
RM'000
RM'000
RM'00093,516(50,080)
93,226
136,662
116

Total Equity
RM'000136,778

-

-

8,423

8,423

38

8,461

93,516(50,080)

101,649

145,085154

145,239

The Unaudited Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the audited financial statementsof the Group for the financial year ended 31 December 2023 and the accompanying explanatory notes attached to these interim financial
statements.

5

Pekat Group Berhad (201901011563 (1320891-U))
Interim Financial Report on Consolidated Results
for the Second Quarter Ended 30 June 2024
Unaudited Condensed Consolidated Statement of Changes in Equity (continued)

Period ended 30 June 2023
At 1 January 2023
Total comprehensive income for the period
At 30 June 2023

< -----Non-Distributable----- > Distributable Attributable
NonMerger
Retained
to Owners of Controlling
Share Capital
Reserve
Earnings
the Company Interests
RM'000
RM'000
RM'000
RM'000
RM'00093,516(50,080)
85,951
129,387
87

Total Equity
RM'000129,474

-

-

6,639

6,639

33

6,672

93,516(50,080)

92,590136,026

120

136,146

6

Pekat Group Berhad (201901011563 (1320891-U))
Interim Financial Report on Consolidated Results
for the Second Quarter Ended 30 June 2024
Unaudited Condensed Consolidated Statement of Cash FlowsSix Months Ended
30.06.2024
30.06.2023
Unaudited
Unaudited
RM'000
RM'000OPERATING ACTIVITIESProfit before tax
Adjustments for:
Amortisation of intangible assets
Depreciation of investment property
Depreciation of property, plant and equipment
Dividend income
Fair value gain on other investment
Gain on disposal of property, plant and equipment
Impairment loss on inventories
Interest expenses
Interest income
Reversal of provision for foreseeable losses
Share of loss/(profit) in associates
Unrealised (gain)/loss on foreign exchange

12,2299,030
78
2Operating profit before working capital changes

81
2
910
(1)
(123)
(16)
277
(301)
(1)
649
(9)
13,697

Changes in working capital:
Inventories
Receivables
PayablesContract assets or liabilities
Associates
Cash generated from operations
Interest received
Tax paid(2,233)
2,110(2,630)(1,838)
148
9,254
282
(2,136)

4,951(5,327)
15,485(6,187)(472)

Net cash from operating activities

7,400

16,452

7

820
(1)
(73)
(299)
7
910
(274)
(154)
(53)
175
10,16818,618229(2,395)

Pekat Group Berhad (201901011563 (1320891-U))
Interim Financial Report on Consolidated Results
for the Second Quarter Ended 30 June 2024
Unaudited Condensed Consolidated Statement of Cash Flows (continued)
Six Months Ended
30.06.2024
30.06.2023
Unaudited
Unaudited
RM'000
RM'000INVESTING ACTIVITIESAcquisition of intangible assets
Acquisition of property, plant & equipment
Additional investment in an associate
Dividend received
Interest received(Acquisition)/Disposal of other investment
Proceeds from disposal of property, plant and equipment(25)(1,717)(400)
1
6(14,121)
16

(19)
(708)
1
31
399
87

Net cash used in investing activities(16,240)(209)

FINANCING ACTIVITIES
Withdrawal of fixed deposits pledged with licensed banks
Interest paid
Net drawdown/(repayment) of bankers’ acceptances
Net repayment of lease liabilities
Net repayment of term loan

2,924
(277)
7,584
(434)
(473)

8,551
(910)
(17,635)(440)
133

Net cash from/(used) in financing activities

9,324(10,301)

Net increase in cash and cash equivalents

484

5,942

Cash and cash equivalents at beginning of financial period

23,944

14,214

Cash and cash equivalents at end of financial period

24,42820,15624,428160
24,58820,156
6,356
26,512(160)(6,356)24,42820,156

Cash and cash equivalents included in the statement of cash
flows comprise the followings:
Cash and bank balances
Fixed deposits with licensed banks
Less: Fixed deposits with licensed banks pledged as security forbank facilities(1)

The Unaudited Condensed Consolidated Statement of Cash Flows should be read in conjunction with theaudited financial statements of the Group for the financial year ended 31 December 2023 and theaccompanying explanatory notes attached to these interim financial statements.

8

Pekat Group Berhad (201901011563 (1320891-U))
Interim Financial Report on Consolidated Results
for the Second Quarter Ended 30 June 2024
A. EXPLANATORY NOTES PURSUANT TO MFRS 134 INTERIM FINANCIAL REPORTING
A1.

Basis of Preparation
The interim financial report of Pekat Group Berhad (“Pekat” or “the Company”) and its subsidiaries(collectively known as “the Group”) have been prepared in accordance with Malaysian Financial
Reporting Standards (“MFRS”) 134: Interim Financial Reporting issued by the Malaysian
Accounting Standards Board (“MASB”) and Paragraph 9.22 of ACE Market Listing Requirementsof Bursa Malaysia Securities Berhad. This interim financial report also complied with IAS 34: Interim
Financial Reporting issued by the International Accounting Standard Board (“IASB”).
This interim financial report should be read in conjunction with the audited financial statements of
the Group for the financial year ended 31 December 2023 and the accompanying explanatory notes
are an integral part of this interim financial report.

A2.

Significant Accounting Policies
Significant accounting policies and methods of computation adopted by the Group in this interim
financial report are consistent with those as disclosed in the audited financial statements for thefinancial year ended 31 December 2023 of the Group.
Adoption of Amendments to MFRSs and IC Interpretations
On 1 January 2024, the Group adopted the following Amendments to MFRSs which are mandatory
for annual financial periods beginning on or after 1 January 2024:
Effective for annual periods commencing on or after 1 January 2024
- Amendments to MFRS 16: Lease: Lease Liability in a Sale and Leaseback- Amendments to MFRS 101: Presentation of Financial Statements: Non-current Liabilities
with Covenants- Amendments to MFRS 101: Presentation of Financial Statements: Classification of
Liabilities as Current or Non-current- Amendments to MFRS 107 and MFRS 7: Statement of Cash Flows and Financial
Instruments: Disclosures - Supplier Finance Arrangements
The adoption of the above amendments to MFRSs are either not relevant or did not have any
significant effects on the interim financial report upon their initial application.
MFRSs and Amendments to MFRSs issued but not yet effective
At the date of authorisation of this interim financial report, the Group has not applied in advancethe following accounting standards and interpretations that have been issued by the MASB but not
yet effective:Effective for annual periods commencing on or after 1 January 2025
Amendments to MFRS 121: The Effects of Changes in Foreign Exchange Rates - Lack of
Exchangeability

9

Pekat Group Berhad (201901011563 (1320891-U))
Interim Financial Report on Consolidated Results
for the Second Quarter Ended 30 June 2024
A. EXPLANATORY NOTES PURSUANT TO MFRS 134 INTERIM FINANCIAL REPORTING (CONTINUED)
A2.

Significant Accounting Policies (continued)
MFRSs and Amendments to MFRSs issued but not yet effective (continued)
Deferred (date to be determined by MASB)- Amendments to MFRS 10 and MFRS 128: Consolidated Financial Statements andInvestments in Associates and Joint Ventures - Sale or Contribution of Assets between an
Investor and its Associate or Joint Venture
The Group intends to adopt these new standards, amendments to the published standards andinterpretations, if applicable, when they become effective. The initial application of the MFRSs andamendments to the published standards and interpretations is not expected to have any material
impact on the financial statements of the Group and of the Company.

A3.

Auditors’ Report on Preceding Annual Financial Statements
There was no qualification to the audited financial statements of the Company and its subsidiaries
for the financial year ended 31 December 2023.

A4.

Seasonal or Cyclical Factors
Save for certain business activities that were affected by international copper price and solar
photovoltaic module price, the Group does not experience any material seasonality.

A5.

Unusual Items Affecting Assets, Liabilities, Equity, Net Income or Cash Flows
There were no unusual items affecting assets, liabilities, equity, net income or cash flows during
the current financial period under review.

A6.

Changes in Estimates
There were no changes in estimates that have a material effect on the current financial period
under review.

A7.

Debt and Equity Securities
There were no significant issuance and repayment of debt and equity securities, share buy-backs,
share cancellations, shares held as treasury shares and resale of treasury shares during thecurrent financial period under review.

A8.

Dividend Paid
There was no dividend paid during the current financial period under review.

10Pekat Group Berhad (201901011563 (1320891-U))
Interim Financial Report on Consolidated Results
for the Second Quarter Ended 30 June 2024
A. EXPLANATORY NOTES PURSUANT TO MFRS 134 INTERIM FINANCIAL REPORTING (CONTINUED)
A9.

Segmental Reporting
Segmental information in respect of the Group’s business activities is as follow:Period Ended 30 June
2024
Revenue
Sales to externalcustomers
Inter-segment sales

Solar
Photovoltaics
RM'000Earthing andLightning
Protection
RM'00069,8089,690
79,49820,583
7
20,590

Trading
RM'000Adjustments/
eliminations
RM'00023,80819,298
43,106(28,995)(28,995)

Results
Segment profit
Finance income
Finance costs
Share of loss inassociates
Tax expense
Profit after tax

Period Ended 30 June
2023
Revenue
Sales to externalcustomers
Inter-segment sales

Total
RM'000114,199
114,199
RM'00012,854
301
(277)
(649)
(3,768)
8,461

Solar
Photovoltaics
RM'000Earthing andLightning
Protection
RM'00072,541
3,157
75,698

16,27237
16,309Trading
RM'000Adjustments/
eliminations
RM'00017,457
10,44827,905Results
Segment profit
Finance income
Finance costs
Share of profit inassociates
Tax expense
Profit after tax(13,642)(13,642)

Total
RM'000106,270
106,270
RM'000
9,613
274
(910)
53
(2,358)
6,672

A10. Material Events Subsequent to the End of Current Financial Period
There were no other material events subsequent to the end of current financial period under review
that have not been reflected in this interim financial report.

11

Pekat Group Berhad (201901011563 (1320891-U))
Interim Financial Report on Consolidated Results
for the Second Quarter Ended 30 June 2024
A. EXPLANATORY NOTES PURSUANT TO MFRS 134 INTERIM FINANCIAL REPORTING (CONTINUED)
A11. Changes in the Composition of the Group
There were no changes in the composition of the Group for the current financial period underreview.
A12. Changes in Contingent Liabilities and Contingent Assets
There were no contingent assets at the date of this interim financial report. Contingent liabilities of
the Group were as follows:-

Group
Corporate guarantee given to licensed banks for credit facilities
granted to subsidiaries
Bank guarantee for tender bond, performance bond and warranty
bond provided to third parties

30.06.2024
RM'00031.12.2023
RM'000

10,237430

12,566

16,83622,803

17,266

A13. Capital Commitments
There were no capital commitments that are contracted but not provided for as at the date of thisinterim financial report.
A14. Significant Related Party Transactions
The Group has the following significant transactions with the related parties during the financial
period under review:Nature of transactions/Related parties

30.06.2024
RM'00030.06.2023
RM'000486

486

Rental expenses of office buildings charged by:- Startige Corporation Sdn. Bhd.

Startige Corporation Sdn. Bhd. is a related party in which certain Directors of the Company arealso Directors of the related party.
The Directors are of the opinion that all the above transactions have been entered into in the normal
course of business and have been established on terms and conditions that are not materiallydifferent from those obtainable in transactions with unrelated parties.

12

Pekat Group Berhad (201901011563 (1320891-U))
Interim Financial Report on Consolidated Results
for the Second Quarter Ended 30 June 2024
B. ADDITIONAL INFORMATION REQUIRED BY ACE MARKET LISTING REQUIREMENTS OF BURSAMALAYSIA SECURITIES BERHAD
B1.

Review of Group’s Performance
Three Months Ended
30.06.2023
30.06.2024
RM’000
RM’000

Variance
RM’000%

Revenue- Solar photovoltaics- Earthing and lightning protection- Trading
Total revenue

33,15011,558
11,85856,566

42,7987,855
8,800
59,453(9,648)3,703
3,058(2,887)(22.5)
47.1
34.8
(4.9)

Profit after tax

4,656

3,470

1,186

34.2

Comparison with Preceding Year Corresponding Quarter (“Q2 FY24” vs “Q2 FY23”)
In Q2 FY24, the Group generated revenue of RM56.57 million. The solar division led in growth,
contributing RM33.15 million. The earthing and lightning protection (“ELP”) division contributed
RM11.56 million, and the trading division contributed RM11.86 million.
The Group's revenue decreased slightly by RM2.89 million or 4.9% compared to Q2 FY23. Thisdecline was primarily driven by a RM9.65 million decrease in revenue from the solar division to
RM33.15 million, attributed partly to project execution delays that predominantly affected thecommercial and industrial customer segment.
Nevertheless, the ELP and trading divisions experienced significant growth, with increases of
47.1% and 34.8%, respectively. These gains were driven by higher project execution rates andincreased fulfilled sales orders, which offset the revenue decline in the solar division.
Despite the revenue decline in the solar division, the Group achieved a higher profit after tax of
RM4.66 million, representing an increase of RM1.19 million or 34.2%, driven by higher gross profit
margins in both the ELP and trading divisions.

13

Pekat Group Berhad (201901011563 (1320891-U))
Interim Financial Report on Consolidated Results
for the Second Quarter Ended 30 June 2024
B. ADDITIONAL INFORMATION REQUIRED BY ACE MARKET LISTING REQUIREMENTS OF BURSAMALAYSIA SECURITIES BERHAD (CONTINUED)
B1.

Review of Group’s Performance (continued)
Six Months Ended
30.06.2023
30.06.2024
RM’000
RM’000
Revenue- Solar photovoltaics- Earthing and lightning protection- Trading
Total revenue
Profit after tax

Variance
RM’000%69,80820,58323,808114,199

72,541
16,272
17,457106,270(2,733)
4,311
6,351
7,929

(3.8)
26.5
36.4
7.5

8,461

6,672

1,789

26.8

Comparison with Preceding Year Corresponding Period (“6M FY24” vs “6M FY23”)
The Group generated revenue of RM114.20 million in 6M FY24 compared to RM106.27 million ayear ago, representing an increase in revenue of RM7.93 million or a growth of 7.5%. Both the ELP
and trading divisions achieved significant growth, achieving higher revenue by RM4.31 million and
RM6.35 million, representing growth of 26.5% and 36.4%. The increase in revenue in both divisions
mitigated the lower revenue from the solar division, attributable partly to project execution delays.
Driven by higher revenue and higher gross profit margins from the ELP and trading divisions, theGroup's 6M FY24 profit after tax improved to RM8.46 million, representing a growth of RM1.79
million or 26.8%.
B2. Comparison with Immediately Preceding Quarter Results
Quarter Ended
31.03.2024
30.06.2024
RM’000
RM’000

Variance
RM’000%

Revenue- Solar photovoltaics- Earthing and lightning protection- Trading
Total revenue

33,15011,558
11,85856,56636,658
9,025
11,95057,633(3,508)2,533(92)(1,067)

(9.6)
28.1
(0.8)
(1.9)

Profit after tax

4,656

3,805

851

22.4

14

Pekat Group Berhad (201901011563 (1320891-U))
Interim Financial Report on Consolidated Results
for the Second Quarter Ended 30 June 2024
B. ADDITIONAL INFORMATION REQUIRED BY ACE MARKET LISTING REQUIREMENTS OF BURSAMALAYSIA SECURITIES BERHAD (CONTINUED)
B2.

Comparison with Immediately Preceding Quarter Results (continued)
Compared to the immediately preceding quarter (“Q1 FY24”), the Group recorded lower revenue
in Q2 FY24 by RM1.07 million or 1.9% due to lower project revenue from the solar division,
attributable partly to project execution delays. Conversely, the ELP division experienced higher
project execution rates, contributing to higher revenue and offsetting the decline in revenue fromthe solar division.
Despite the revenue decrease in the solar division, the Group achieved a higher profit after tax due
to a higher gross profit margin within the ELP division.

B3. Commentary on Prospects
Malaysia targets net-zero carbon emissions by 2050, aligning with the Paris Agreement's goals.
The 12th Malaysia Plan sets a 45% greenhouse gas reduction target by 2030 for a sustainable
future. Guided by the Malaysia Renewable Energy Roadmap, the nation aims for 31% and 40%
renewable energy (“RE”) share in its energy mix by 2025 and 2035, respectively.
The Malaysian Government introduced a policy enabling renewable energy (“RE”) exports andfostering RE development, now managed by the Ministry of Energy Transition and Water
Transformation (“PETRA”). In April 2024, PETRA established Energy Exchange Malaysia(Enegem) to facilitate green electricity exports to Singapore and Thailand, starting with a 100megawatt (“MW”) pilot auction to Singapore, presenting opportunities to RE players like Pekat.
The Ministry of Economy launched the National Energy Transition Roadmap (“NETR”), outlining asustainable energy future. NETR Phase 1 includes six key levers and ten flagship projects with a
RM60.7 billion investment, exceeding the initial target of RM25 billion. These projects encompass
smart grids, energy efficiency, and storage, demonstrating the government's strong commitment
to promoting sustainable energy, which aligns with Pekat's industry focus on innovative solutionsin these areas.
Following the completion of the large-scale solar (“LSS”) 4 project at Batang Padang, Perak, theGroup is confident in its ability to make a positive contribution to the recently announced 2GW LSS
5 project. The Group is committed to executing its 29.99 MWac solar power plant project under the
Corporate Green Power Programme, expected to boost the Group's recurring income stream by
the end of 2025.
In the domestic market, the Solar for Rakyat Incentive Scheme (SolaRIS) offers rebates up to
RM4,000 for qualifying NEM Rakyat customers, expected to increase demand amidst rising
electricity costs.
The surge in foreign direct investments of data centers in Malaysia is likely to benefit the Group's
ELP division. With a strong track record in ELP solutions for data centers, the Group remains
confident of the ELP division's growth.

15

Pekat Group Berhad (201901011563 (1320891-U))
Interim Financial Report on Consolidated Results
for the Second Quarter Ended 30 June 2024
B. ADDITIONAL INFORMATION REQUIRED BY ACE MARKET LISTING REQUIREMENTS OF BURSAMALAYSIA SECURITIES BERHAD (CONTINUED)
B3. Commentary on Prospects (continued)
While the Board of Directors anticipates more competitive market conditions, the Group is wellpositioned to improve its operational efficiency and grow its order book. Barring any unforeseen
circumstances, the Board of Directors is optimistic of the Group's future prospects.
B4. Profit Forecast
No profit forecast has been issued by the Group previously in any public document.
B5. Tax ExpenseThree Months Ended
30.06.2024
30.06.2023
RM’000
RM’000Six Months Ended
30.06.2024
30.06.2023
RM’000
RM’000Current tax
Deferred tax

1,917
-

1,244
-

3,768
-

2,358
-

Total tax expense

1,917

1,244

3,768

2,358

Effective tax rate (%)

29.2

26.4

30.8

26.1

Notes:(1)The effective tax rate of the Group for the current quarter and period under review was 29.2%
and 30.8% respectively, which were higher than the statutory tax rate of 24% mainly due tolosses of certain subsidiaries which cannot be set off against taxable profits made by othersubsidiaries.

B6. Status of Corporate Proposals
Proposed Employees’ Share Option Scheme
On 9 July 2024, the Company announced its intention to undertake a proposed employees’ shareoption scheme of up to 10% of the Company’s total issued share capital (excluding treasury shares,
if any) for eligible Directors and employees of the Company and its subsidiaries who fulfil theeligibility criteria as set out in the By-Laws governing the proposed employees’ share option
scheme (“Proposed ESOS”).
Bursa Malaysia Securities Berhad (“Bursa Securities”) had granted approval of the Proposed
ESOS on 5 August 2024. An application to seek Bursa Securities' approval for an extension of timeof up to 23 October 2024 to issue the circular to shareholders had been submitted on 19 August
2024.

16

Pekat Group Berhad (201901011563 (1320891-U))
Interim Financial Report on Consolidated Results
for the Second Quarter Ended 30 June 2024
B. ADDITIONAL INFORMATION REQUIRED BY ACE MARKET LISTING REQUIREMENTS OF BURSAMALAYSIA SECURITIES BERHAD (CONTINUED)
B6. Status of Corporate Proposals (continued)
Proposed Acquisition and Proposed Diversification
On 1 August 2024, Pekat Teknologi Sdn. Bhd., a wholly-owned subsidiary of the Company, enteredinto a conditional share sale agreement (“SSA”) with Low Khek Heng @ Low Choon Huat for the
proposed acquisition of 75,000 ordinary shares in Apex Power Industry Sdn. Bhd. (“Apex Power”),
representing a 60% equity interest in Apex Power, for a total cash consideration of RM96.00 million(“Proposed Acquisition”).
In conjunction with the Proposed Acquisition, the Company is also seeking shareholders’ approvalin a general meeting for the proposed diversification into the power distribution equipment businesssegment (“Proposed Diversification”).
The Proposed Acquisition and Proposed Diversification are currently pending the fulfillment of theconditions precedent in the SSA.
Save as disclosed above, there were no other corporate proposals announced but not completed
as at the date of this interim financial report.
B7. Borrowings
The details of the Group’s borrowings are as follow:30.06.2024
RM’000Current liabilities
Secured:Bankers’ acceptances
Term loan

Non-current liabilities
Secured:Term loan
Total borrowings

17

31.12.2023
RM’000

7,584
1,027

976

8,611

976

76

600

8,687

1,576

Pekat Group Berhad (201901011563 (1320891-U))
Interim Financial Report on Consolidated Results
for the Second Quarter Ended 30 June 2024
B. ADDITIONAL INFORMAT ION REQUIRED BY ACE MARKET LISTING REQUIREMENTS OF BURSAMALAYSIA SECURITIES BERHAD (CONTINUED)
B8. Material Litigation
There is no outstanding material litigation as at the date of this interim financial report.
B9. Dividend
The Board of Directors did not declare or recommend any dividend for the current financial period
under review.
B10. Earnings Per Share(a) Basic earnings per share
Basic earnings per share is calculated by dividing profit for the period attributable to ownersof the Company by weighted average number of ordinary shares in issue during the period:Three Months Ended
30.06.2024
30.06.2023
Profit attributable toowners of the Company(RM’000)
Weighted average
number of shares inissue (Unit’000)
Basic earnings per share(sen)

Six Months Ended
30.06.2024
30.06.2023

4,639

3,477

8,423

6,639

644,968

644,968

644,968

644,968

0.72

0.54

1.31

1.03

(b) Diluted earnings per share
Not applicable. The Group does not have any financial instrument which may dilute its earnings
per share.

18

Pekat Group Berhad (201901011563 (1320891-U))
Interim Financial Report on Consolidated Results
for the Second Quarter Ended 30 June 2024
B. ADDITIONAL INFORMATION REQUIRED BY ACE MARKET LISTING REQUIREMENTS OF BURSAMALAYSIA SECURITIES BERHAD (CONTINUED)
B11. Notes to Condensed Consolidated Statement of Profit or Loss and Other Comprehensive
IncomeProfit for the period was derived after taking into consideration of the following:Three Months Ended
30.06.2024
30.06.2023
RM’000
RM’000After charging/(crediting):Amortisation of intangible assets
Depreciation of investment property
Depreciation of property, plant andequipment
Dividend income
Fair value gain on other investment
Gain on disposal of property, plantand equipment
Impairment loss on inventories
Interest expenses
Interest income
Reversal of provision for foreseeable
lossesShare of loss/(profit) in associates
Unrealised loss/(gain) on foreignexchange

Six Months Ended
30.06.2024
30.06.2023
RM’000
RM’000

41
1

39
1

81
2

78
2

458
(1)
(80)

446
(1)
(35)

910
(1)
(123)

820
(1)
(73)

(16)
169
(197)

(299)
7
557
(110)

(16)
277
(301)

(299)
7
910
(274)

(1)
555

(151)
102

(1)
649

(154)
(53)

39

123

(9)

175

B12. Authorisation for Issue
The interim financial report was authorised for issue by the Board of Directors on 21 August 2024.

19