# EDGAR Filing Document

**Accession Number:** 0002009233
**File Stem:** 0001213900-25-127237
**Filing Date:** 2026-1
**Character Count:** 173636
**Document Hash:** 6b4f4ebf5a5bc571b7b08a309785ac38
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-25-127237.hdr.sgml**: 20260102

**ACCESSION NUMBER**: 0001213900-25-127237

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 130

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20260102

**DATE AS OF CHANGE**: 20251231

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Agroz Inc.
- **CENTRAL INDEX KEY:** 0002009233
- **STANDARD INDUSTRIAL CLASSIFICATION:** AGRICULTURE PRODUCTION - CROPS [0100]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 000000000
- **STATE OF INCORPORATION:** E9
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42885
- **FILM NUMBER:** 251618422

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** NO. 2, LORONG TEKNOLOGI 3/4A
- **STREET 2:** TAMAN SAINS SELANGOR
- **CITY:** PETALING JAYA
- **PROVINCE COUNTRY:** N8
- **BUSINESS PHONE:** 60182182300

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** NO. 2, LORONG TEKNOLOGI 3/4A
- **STREET 2:** TAMAN SAINS SELANGOR
- **CITY:** PETALING JAYA
- **PROVINCE COUNTRY:** N8

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 6-K**

**REPORT OF FOREIGN PRIVATE ISSUER**

**PURSUANT TO RULE 13a-16 OR 15d-16**

**UNDER THE SECURITIES EXCHANGE ACT OF 1934**

Commission File Number <u>001-42885</u>

**<u>Agroz Inc.</u>**

(Translation of registrant's name into English)

No. 2, Lorong Teknologi 3/4A, Taman Sains Selangor, Kota Damansara,

47810 Petaling Jaya, Selangor, Malaysia

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

**INFORMATION CONTAINED IN THIS FORM 6-K REPORT**

The unaudited interim condensed consolidated financial statements for Agroz Inc. ("Angkasa-X", "the Company", "we", "our" or "us"), for the six months ended June 30, 2025 and 2024, are furnished herewith as Exhibit 99.1 to this Form 6-K.

**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS**

Statements in this current report with respect to the Company's current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of the Company. Forward-looking statements include, but are not limited to, those statements using words such as "believe," "expect," "plans," "strategy," "prospects," "forecast," "estimate," "project," "anticipate," "aim," "intend," "seek," "may," "might," "could" or "should," and words of similar meaning in connection with a discussion of future operations, financial performance, events or conditions. From time to time, oral or written forward-looking statements may also be included in other materials released to the public. These statements are based on management's assumptions, judgments and beliefs in light of the information currently available to it. The Company cautions investors that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, including but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the Company with the U.S. Securities and Exchange Commission ("SEC"). Therefore, investors should not place undue reliance on such forward-looking statements. Actual results may differ significantly from those set forth in the forward-looking statements.

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

You should read the following "Management's Discussion and Analysis" in conjunction with the section inclusive of our financial statements and the related notes provided elsewhere in this Form 6-K. ***As used in this "Management's Discussion and Analysis of Financial Condition and Results of Operation" section, the terms "the Group," "we," "our" and "us" refer to Agroz Inc. and Agroz Group, collectively. "Agroz Group" refers solely to Agroz Group Sdn. Bhd., a Malaysian private limited company, our operating subsidiary.***

**OVERVIEW**

We are a vertically integrated agricultural technology company applying technology solutions, innovative business models, processes, and systems to design, build, manage, and operate indoor CEA vertical farms. We also operate CEA vertical farms which produce clean, pesticide free, fresh and nutritious rich vegetables directly to consumers and businesses. Our EduFarm at AEON Alpha Angle was also aimed to educate the public on how our vegetables are grown. Our CEA practices are a combination of various digital technologies, including IoT, data analytics, artificial learning, machine learning, automation, cloud and edge computing, and 5G communications. We use 5G communications primarily to enhance internet connectivity within our CEA practices, which is essential for real-time monitoring and control of our agricultural operations.

Our mission is to improve food safety, food security, and sustainability for society by creating a reliable, accessible food supply through our agricultural technology ("AgTech") products and services. We believe we are revolutionizing and transforming agricultural production through our CEA technology and methods. We believe our technology enables us to grow more food in less space safely without the use of pesticides, herbicides and other dangerous chemicals, while reducing the need for storage and refrigeration. We aim to improve food security and deliver freshness by growing food locally, nearer to where it is consumed, which reduces transportation and therefore lowers the food miles generated and our carbon emissions impact, leading to more environmentally friendly outcomes for food production.

We believe there is vast market potential for the AgTech and CEA vertical farming markets globally and in the Southeast Asian region. Starting with Malaysia, we aim to match the top-grade products we have available to the markets in which they are the most highly demanded.

***Principal activities***

 

We primarily derive our revenue from:

&nbsp;&nbsp;&nbsp;&nbsp;(i) designing and/or constructing indoor CEA vertical farms;

&nbsp;&nbsp;&nbsp;&nbsp;(ii) operating and managing indoor CEA vertical farms;

&nbsp;&nbsp;&nbsp;&nbsp;(iii) selling CEA vertical farms; and

&nbsp;&nbsp;&nbsp;&nbsp;(iv) selling fresh produce.

1. *<u>Designing and/or Constructing Indoor Vertical Farms</u>* 

Our goal is to create efficient, sustainable, and environmentally controlled vertical farms which maximize crop yield and crop quality and allow for precise management of temperature, humidity, light and nutrients.

We design and/or construct indoor CEA vertical farms for our clients according to their specific needs. This involves planning each CEA vertical farm's layout, designing its infrastructure, building the farm's structural framework, setting up equipment, and implementing the Agroz OS within the farm. The Agroz OS, at its most current stage of development, integrates certain hardware and software solutions detailed below. Through Agroz OS, we aim to improve productivity, boost yield, and improve the quality of produce generated within CEA vertical farms.

Agroz OS is currently comprised of digitally automated hardware systems capable of: (i) managing various environmental conditions within the CEA vertical farms and water quality and volume, (ii) providing irrigation and nutrient fertigation; (iii) providing light to crops; (iv) managing energy use; and (v) collecting data to enable management of temperature and lighting within the farms, as well as nutrient provision, irrigation and fertigation.

As of the date of this Form 6-K, we have implemented in Agroz OS the above digitally automated hardware systems. We have also integrated in Agroz OS software solutions enabling email and communication systems for farm organization. Agroz OS also includes Agroz ERP, a software system that tracks every aspect of the vertical farm's business activities, including: (1) farm input materials (*i.e.*, seeds, nutrients, growth media, packaging, consumables, carbon dioxide); (2) growth of produce at different stages; (3) farm personnel activity; (4) harvest inventory; (5) sales orders, invoices, and deliveries, and (6) accounting records. Agroz ERP is also accessible as a mobile application. These software solutions are supported by Microsoft Azure and Microsoft AI, which solutions are possible pursuant to being Microsoft ISV and Microsoft AI Cloud Partner under the Microsoft Publisher Agreement and Microsoft AI Cloud Partner Program Agreement filed as Exhibits 10.7 and 10.8, respectively, in the Company's [Form F-1](http://www.sec.gov/Archives/edgar/data/2009233/000121390025087990/ea0257437-posam6_agroz.htm) filed with the SEC on September 16, 2025 and incorporated by reference herein.

We have integrated an AI agent system into Agroz OS, which system is supported by Microsoft AI and capable of presenting complex agricultural decisions to farm managers and farm owners and autonomously executing such decisions after human approval is received. The AI system's agents can undertake complex multi-step autonomous actions within vertical farms and result in vertical farms which can be independently and automatically operated. Investors should be aware that such AI agent system is distinct from the Agroz Copilot; by contrast, Agroz Copilot is a GenAI application separate from Agroz OS, which enables human farmers to input queries and instructions into an application to receive recommendations for assistance with daily tasks, not a system for autonomous functioning of vertical farms. Although we have launched a pilot rollout for Agroz Copilot, this application is still under development and we do not currently have a date certain for the official launch of Agroz Copilot to the public.

Agroz OS additionally includes Intuit QuickBooks to aid in financial reporting and bookkeeping, with such accounting software stored on cloud servers and financial information protected by encryption technology and firewall.

&nbsp;&nbsp;&nbsp;&nbsp;2. *<u>Operating and Managing Indoor CEA Vertical Farms</u>* 

Following the successful design and/or construction of CEA vertical farms, our clients may also receive, at their option, farm operation and management services. The services we offer in this respect include the overseeing of day-to-day CEA vertical farm operations and performing regular maintenance of our clients' CEA vertical farm systems, using all of the intellectual property we have developed, including Agroz OS and the standard operating procedure supporting CEA vertical farm operations. We began generating revenue from the operation and management services for our clients' CEA vertical farms in fiscal year 2024.

Currently, the CEA vertical farms we operate and manage include: (i) a 10,021 square foot indoor vertical farm in Kota Damansara and (ii) a 5,239 square foot educational vertical farm ("EduFarm") at the AEON Mall Alpha Angle, a shopping center in Wangsa Maju, Kuala Lumpur, Malaysia ("AEON Alpha Angle"). The Malaysia Book of Records, a publication of record setting achievements, recognizes the vertical farm we operate and manage at AEON Alpha Angle as the largest indoor vertical farm located inside a shopping mall in Malaysia. Additionally, in June of 2024, the Malaysian government, through the Ministry of Agriculture and Food Security, recognized the EduFarm for meeting Malaysian Good Agricultural Practices ("myGAP.PF") requirements in being pesticide free. MyGAP.PF is a certification scheme recognizing farms which adopt agricultural practices with an environmentally friendly concept, safeguarding the welfare and safety of workers and do not use synthetic pesticides to produce quality, safe and edible products. This certification covers 20 types of vegetables grown in the CEA vertical farms we manage and operate, including green butterhead, red butterhead, green coral, red coral, wild rocket, green kale, and arugula, to name a few.

Through the EduFarm, we also supply fresh produce sold at AEON Alpha Angle and at certain supermarkets operated by AEON Co. (M) Berhad ("AEON"). 

&nbsp;&nbsp;&nbsp;&nbsp;3. *<u>Sale of CEA Vertical Farms</u>* 

 

We sell CEA vertical farms to potential buyers separate from the services that comprise the first and second revenue streams identified in the "Principal activities" subsection above. Our completed CEA vertical farms are fully operational and optimized. Each CEA vertical farm includes Agroz OS. We aim to achieve high-yield crop production and resource management through the CEA vertical farms.

&nbsp;&nbsp;&nbsp;&nbsp;4. *<u>Sale of Fresh Produce</u>* 

We also generate revenue from sales of fresh produce, which produce consist of (i) produce grown in the leased CEA vertical farms we operate and (ii) produce outsourced from our clients' CEA vertical farms and other suppliers. To date, we have successfully grown 50 different crops and are currently offering 21 varieties of crops for sale. Our key distribution avenue is the direct distribution of fresh produce to Malaysian-based wholesale distributors, and large supermarket brand retailers, such as AEON, and recently we have expanded our distribution to Village Grocer.

**RESULTS OF OPERATIONS**

**Financial information in U.S. dollars**

Our financial statements contain translations of certain foreign currency amounts into U.S. dollars for the convenience of the reader. The conversion of Malaysian Ringgit into U.S. dollars in the financial statements is based on the exchange rates set forth in the statistical release of The Federal Reserve, the central bank of the United States. Unless otherwise noted, all translations from Malaysian Ringgit to U.S. dollars and from U.S. dollars to Malaysian Ringgit for the six months period ending on June 30, 2025 (the "2025 Interim Period") were made at a month-end spot rate of MYR4.2257 to US$1.00 or an average spot rate of MYR4.3794 to US$1.00.

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2024** | **2025** | **2025** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
|  | MYR | MYR | USD |
| Revenue |  |  |  |
| - from third parties | 5730636 | 28632549 | 6538007 |
| - from related parties | 1082923 |  |  |
| Total revenue | 6813559 | 28632549 | 6538007 |
| Cost of revenue | (5398795) | (21898821) | (5000416) |
| **Gross profit** | **1414764** | **6733728** | **1537591** |
| Selling and promotion expenses | (95265) | (20271) | (4629) |
| General and administrative expenses | (2901428) | (3543387) | (809103) |
| Other income | 1093 | 1102754 | 251805 |
| (Provision)/reversal of credit loss on trade receivables | (4085) | 342284 | 78158 |
| **Operating (loss)/profit** | **(1584921)** | **4615108** | **1053822** |
| Finance costs | (764254) | (792213) | (180895) |
| (Loss)/profit before taxation | (2349175) | 3822895 | 872927 |
| Income tax expenses | (225946) | (1578290) | (360390) |
| **(Loss)/profit for the period** | **(2575121)** | **2244605** | **512537** |

---

*Revenue*

 

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2024** | **2025** | **2025** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
|  | MYR | MYR | USD |
| **Offering farm solutions** | **3050000** |  |  |
| -Design services | 1050000 |  |  |
| -Construction services | 2000000 |  |  |
| **Management fees** | **81** |  |  |
| **Sale of fresh produce from the CEA vertical farms** | **3763478** | 28632549 | 6538007 |
|  | **6813559** | **28632549** | **6538007** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2024** | **2025** | **2025** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
|  | MYR | MYR | USD |
| **Offering farm solutions** | **3050000** |  |  |
| -from third parties | 2000000 |  |  |
| -from related parties | 1050000 |  |  |
| **Sale of fresh produce from the CEA vertical farms** | **3763478** | **28632549** | **6538007** |
| -from third parties | 3730636 | 28632549 | 6538007 |
| -from related parties | 32842 |  |  |
| **Management fees** | **81** |  |  |
| -from related parties | 81 |  |  |
|  | **6813559** | **28632549** | **6538007** |

---

Revenue generated for the 2025 Interim Period was MYR28,632,549 ($6,538,007), representing an increase of 320.23% from revenue in the 2024 Interim Period. This increase in revenue was due to increased sales of vegetables in the 2025 Interim Period, from MYR 3,763,478 to MYR 28,632,549 ($6,538,007), representing an increase of MYR24,869,071.

*Costs of revenue*

 

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2024** | **2025** | **2025** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
|  | MYR | MYR | USD |
| Costs of revenue |  |  |  |
| &nbsp;&nbsp;&nbsp;- Construction cost | 1925000 |  |  |
| &nbsp;&nbsp;&nbsp;- Consulting fees | 66076 |  |  |
| &nbsp;&nbsp;&nbsp;- Vegetable costs | 3367657 | 21705653 | 4956308 |
| &nbsp;&nbsp;&nbsp;- Planting related costs |  | 55589 | 12693 |
| &nbsp;&nbsp;&nbsp;- Wages and benefits | 40062 | 137579 | 31415 |
|  | **5398795** | **21898821** | **5000416** |

---

Our costs of revenue include costs incurred directly from CEA vertical farm construction, employee wages and benefits, consulting fees, vegetable costs, as well as costs related to CEA vertical farm operations, such as seed and fertilizer expenses, utilities and packaging fees. For the 2024 Interim Period, our costs of revenue amounted to MYR5,398,795, of which MYR3,367,657 were vegetable costs. Our costs of revenue amount increased from MYR5,398,795 in the 2024 Interim Period to MYR21,898,821 ($5,000,416) in the 2025 Interim Period. The reason for this increase was additional costs incurred in tandem with the increase in the vegetable costs.

*Selling and promotion expenses* 

 

The following table sets forth a breakdown of our selling and promotion expenses for the periods indicated:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2024** | **2025** | **2025** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
|  | MYR | MYR | USD |
| Selling and promotion expenses |  |  |  |
| &nbsp;&nbsp;&nbsp;- Entertainment expenses | 4054 |  |  |
| &nbsp;&nbsp;&nbsp;- Marketing fees | 91211 | 20271 | 4629 |
|  | **95265** | **20271** | **4629** |

---

The Group's selling and promotion expenses are derived from marketing fees and entertainment expenses. We incurred marketing and advertising expenses on popular media platforms, with the intention of boosting our media presence and brand awareness and generating more visitors (and potentially customers) to our website.

Marketing fees for the 2025 Interim Period MYR20,271 ($4,629) were significantly lower than marketing expenses for the 2024 Interim Period MYR91,211, due to the Group's one-off engagement of an agency to develop the Group's marketing solutions in the 2024 Interim Period to build brand awareness but does not recur in 2025 Interim Period.

*General and administrative expenses*

 

The following table sets forth a breakdown of our general and administrative expenses for the interim periods indicated:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2024** | **2025** | **2025** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
|  | MYR | MYR | USD |
| General and administrative expenses |  |  |  |
| &nbsp;&nbsp;&nbsp;- Director fee | 880000 | 770000 | 175823 |
| &nbsp;&nbsp;&nbsp;- Professional fees | 939645 | 1161646 | 265252 |
| &nbsp;&nbsp;&nbsp;- Wages and benefits | 573420 | 754973 | 172392 |
| &nbsp;&nbsp;&nbsp;- Depreciation and amortization | 277536 | 534878 | 122135 |
| &nbsp;&nbsp;&nbsp;- Commission paid | 101417 | 6000 | 1370 |
| &nbsp;&nbsp;&nbsp;- Office expenses | 122922 | 306648 | 70021 |
| &nbsp;&nbsp;&nbsp;- Others | 6488 | 9242 | 2110 |
|  | 2901428 | 3543387 | 809103 |

---

The following table sets forth a breakdown of our administrative expenses for the fiscal years indicated:

*Director fee*

 

During the 2025 Interim Period and the 2024 Interim Period, Gerard Kim Meng Lim, the Chief Executive Officer and director of Agroz Inc. ("Agroz") and also one of its shareholders, was entitled to director's fee of MYR770,000 ($175,823) and MYR880,000, respectively for his services to Agroz.

*Professional fees*

Our legal and professional fees for the 2024 Interim Period totaled MYR939,645, which increased to MYR1,161,646 ($265,252) in the 2025 Interim Period. This increase is mainly attributed to audit fees and other professional fees in preparation for our prospective IPO incurred in the 2025 Interim Period.

*Wages and benefits*

Wages and benefits mainly included staff salaries, Employees Provident Fund, Social Security Organization, Employment Insurance System and allowances. Staff costs increased by MYR181,553 from MYR573,420 in the 2024 Interim Period to MYR754,973 ($172,392) in the 2025 Interim Period due to our recruitment of new staff increase from 14 staffs to 16 staffs in the 2025 Interim Period.

*Depreciation and amortization*

Depreciation and amortization charges for the 2024 Interim Period in general and administrative expenses amounted to MYR277,536. These charges mainly include depreciation charges on Agroz Group's fixed assets, such as furniture and fittings, fire system, computer and equipment, motor vehicle, computer software and websites. For the 2025 Interim Period, our depreciation and amortization charges were MYR534,878 ($122,135), representing an increase of MYR257,342 from the 2024 Interim Period. This significant increase was due to the Group's newly leased office premises for operations.

*Other (expense)/income*

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2024** | **2025** | **2025** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
|  | MYR | MYR | USD |
| Interest income | 109 | 4 | 1 |
| Foreign exchange loss | (131364) | 141614 | 32336 |
| Rental income | 132348 |  |  |
| Reversal of provision |  | 870739 | 198826 |
| Other income |  | 90397 | 20642 |
| Total other income | 1093 | 1102754 | 251805 |

---

*Expected credit losses on trade receivables*

 

The following table sets forth a breakdown of our expected credit losses ("ECL") on trade receivables for the periods indicated:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2024** | **2025** | **2025** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
|  | MYR | MYR | USD |
| (Reversal of allowances)/loss allowances for ECL on third party retail outlet customers | 6357 | 4319 | 986 |
| Loss allowances for ECL on third industrial business customers | 26825 | (16616) | (3794) |
| Loss allowances/(reversal of allowances) for ECL on related party customers | (29097) | (329987) | (75350) |
| Total credit loss on trade receivables | 4085 | (342284) | (78158) |

---

The Group recognizes loss allowances for ECL on financial assets measured at amortized cost. For the periods ended June 30, 2025 and 2024, the Group measures the loss allowance for a financial instrument in an amount equal to the ECL which result from all possible default events over the expected life of such financial instrument ("lifetime expected credit losses") for trade receivable or if the credit risk on such financial instrument has significant increase since initial recognition. For the 2024 Interim Period, ECL amounted to MYR4,085. ECL further decreased to (MYR342,284) ($78,158) in the 2025 Interim Period due to the decrease in trade receivables.

Loss allowances for trade receivables are always measured in an amount equal to lifetime ECLs. ECLs on these financial assets are estimated using a provision matrix based on the Group's historical credit loss experience, adjusted for factors that are specific to the debtors and an assessment of both the current and forecast general economic conditions at the reporting date.

For all other financial instruments, the Group recognizes a loss allowance equal to 12-month ECLs unless there has been a significant increase in credit risk of the financial instrument since initial recognition, in which case the loss allowance is measured at an amount equal to lifetime ECLs.

*Finance costs*

 

The following table sets forth a breakdown of our financial expenses for the years indicated:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2024** | **2025** | **2025** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
|  | MYR | MYR | USD |
| Finance costs |  |  |  |
| &nbsp;&nbsp;&nbsp;- Bank charges | 2207 | 4011 | 915 |
| &nbsp;&nbsp;&nbsp;- Interest on lease liabilities | 123305 | 120665 | 27553 |
| &nbsp;&nbsp;&nbsp;- Interest on redeemable convertible preference shares ("RCPS") | 622964 | 652240 | 148934 |
| &nbsp;&nbsp;&nbsp;- Interest of HWG Cash Berhad | 13630 | 13630 | 3112 |
| &nbsp;&nbsp;&nbsp;- Interest on bank borrowing | 2148 | 1667 | 381 |
| Total finance costs | 764254 | 792213 | 180895 |

---

Our finance costs include bank charges and interest charges, primarily attributable to interest on redeemable convertible preference shares ("RCPS"). From the 2024 Interim Period to the 2025 Interim Period, our finance costs increased from MYR764,254 to MYR792,213 ($180,895).

 

*Income tax expenses - Malaysia profits tax*

 

For the 2025 Interim Period and the 2024 Interim Period, the tax rate was 24% for companies incorporated in Malaysia with paid-in capital of MYR2.5 million or more. The Company is subject to income taxes on entities based on profit arising in or derived from the jurisdiction in which the Company and its subsidiaries are domiciled or operate in.

For the 2025 Interim Period, Agroz Group incurred an income tax expense amounted to MYR970,724 ($221,657). For the 2024 Interim Period, Agroz Group did not incur any income tax expenses due to the loss incurred during this six month period but there is under provision of tax in prior years.

The Company is subject to income taxes on entities based on profit arising in or derived from the jurisdiction in which the Company and its subsidiaries are domiciled or operate in.

**LIQUIDITY AND CAPITAL RESOURCES**

The following table sets forth our non-current assets, current assets, equity, non-current liabilities and current liabilities as of the dates indicated:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, <br> 2024** | **As of June 30, <br> 2025** | **As of June 30, <br> 2025** |
|  | **(Audited)** | **(Unaudited)** | **(Unaudited)** |
|  | MYR | MYR | USD |
| **Assets** |  |  |  |
| Property, plant and equipment | 225316 | 243294 | 57575 |
| Intangible assets | 2096815 | 1861291 | 440469 |
| Deferred tax assets | 30023 |  |  |
| Prepayments - to a related party | 5517306 | 5751779 | 1361142 |
| Prepayments and deposits - to third parties | 1684351 | 1788127 | 423156 |
| Total prepayments and deposits | 7201657 | 7539906 | 1784298 |
| Right-of-use assets | 2277208 | 2022484 | 478615 |
| Deferred offering costs | 1738900 | 1703414 | 403108 |
| **Non-current assets** | **13569919** | 13370389 | 3164065 |
| Trade receivables - from third parties | 35596841 | 35643051 | 8434827 |
| Trade receivables - from related parties | 720013 | – | – |
| Total trade receivables | 36316854 | 35643051 | 8434827 |
| Prepayments and other receivables | 30915 | 49064 | 11612 |
| Amounts due from related parties | 751695 | 1071069 | 253465 |
| Cash | 390500 | 3625690 | 858009 |
| **Current assets** | **37489964** | 40388874 | 9557913 |
| **Total assets** | **51059883** | 53759263 | 12721978 |
| **Equity** |  |  |  |
| Share capital | 8540 | 8540 | 2021 |
| Additional paid-in capital | 6903616 | 6903616 | 1633721 |
| Other reserves | 633029 | 997651 | 228519 |
| Retained earnings | 6189752 | 8434357 | 1995967 |
| **Total equity** | **13734937** | 16312164 | 3860228 |
| **Liabilities** |  |  |  |
| Lease liabilities, non-current | 2095605 | 1872935 | 443225 |
| Bank borrowing, non-current | 39774 | 32828 | 7769 |
| Deferred tax liabilities |  | 96130 | 22749 |
| Redeemable convertible preference shares | 6213040 | 3746569 | 886615 |
| **Non-current liabilities** | **8348419** | 5748462 | 1360358 |
| Trade payables | 14089238 | 9730696 | 2302741 |
| Other payables, current | 3105476 | 2119398 | 501550 |
| Tax payables | 3991673 | 5372593 | 1271409 |
| Bank borrowing, current | 13255 | 13738 | 3251 |
| Lease liabilities, current | 397705 | 426472 | 100923 |
| Amount due to related parties, current | 4001850 | 8734750 | 2067054 |
| Redeemable convertible preference shares, current | 3377330 | 5300990 | 1254464 |
| **Current liabilities** | **28976527** | 31698637 | 7501392 |
| **Total liabilities** | **37324946** | 37447099 | 8861750 |
| **Total equity and liabilities** | **51059883** | 53759263 | 12721978 |

---

 

*Trade receivables*

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, <br> 2024** | **As of June 30,<br> 2025** | **As of June 30,<br> 2025** |
|  | **(Audited)** | **(Unaudited)** | **(Unaudited)** |
|  | MYR | MYR | USD |
| Receivables from offering farm solutions |  |  |  |
| - from third parties | 19234500 | 5239775 | 1239978 |
| - from related parties | 1100000 | 50000 | 11832 |
| Receivables from selling of fresh vegetables |  |  |  |
| - from third parties | 16693373 | 30722011 | 7270277 |
| - from related parties | 32841 | 32841 | 7772 |
| Total trade receivables, gross | 37060714 | 36044627 | 8529859 |
| Less: allowances for doubtful debts | (743860) | (401576) | (95032) |
| Total trade receivables, net | 36316854 | 35643051 | 8434827 |

---

Aging analysis of gross trade receivables, based on tax invoice dates, as of December 31, 2024 and June 30, 2025 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, <br> 2024** | **As of June 30, <br> 2025** | **As of June 30, <br> 2025** |
|  | **(Audited)** | **(Unaudited)** | **(Unaudited)** |
|  | MYR | MYR | USD |
| Within 3 months | 30278889 | 16275319 | 3851508 |
| More than 3 months but within 6 months | 3010069 | 10407107 | 2462813 |
| More than 6 months but within 1 year | 2470419 | 9277008 | 2195377 |
| More than 1 year | 1301337 | 85193 | 20161 |
| Total trade receivables, gross | 37060714 | 36044627 | 8529859 |

---

Our trade receivables encompass amounts owed to us for offering controlled environment agriculture ("CEA") vertical farm solutions and selling fresh produce. All of our trade receivables are expected to be recovered within one year. We invoice our clients on a milestone basis following our service agreement or upon completion of transactions. Our trade receivable balance decreased from MYR37,060,714 in 2024 Fiscal Year to MYR36,044,627 ($8,529,859) in the 2025 Interim Period. This decrease was mainly due to the farm solutions outstanding amount received from related party. As of June 30, 2025, more than 78% of outstanding trade receivables as of 2024 Fiscal Year have been collected.

 ****

In determining the recoverability of a trade receivable, we consider any changes in the credit quality of the trade receivables from the date credit was initially granted up to the reporting date. There was no significant change in credit quality for our trade receivable balances which were past due and partially impaired. Accordingly, management believes that no further credit provision is required.

Management closely reviews the Group's trade receivables balances to proactively detect any known trends or uncertainties, and no trends or uncertainties have been identified which might affect the collectability of our customer receivables balances. An ECL amount to MYR743,860 was provided in the 2024 Fiscal Year and decreased to MYR401,576 ($95,032) in the 2025 Interim Period. This is because management believes there is a decrease in the risk of not being able to recover these trade receivables and thus lesser loss allowances were made in the 2025 Interim Period.

*Prepayments, deposits and other receivables*

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, <br> 2024** | **As of June 30, <br> 2025** | **As of June 30, <br> 2025** |
|  | **(Audited)** | **(Unaudited)** | **(Unaudited)** |
|  | MYR | MYR | USD |
| **Non-current:** |  |  |  |
| Prepayments for intangible assets |  |  |  |
| - to a third party (note (a)) | 5517306 | 5751779 | 1361142 |
| - to a related party (note (b)) | 1406508 | 1510284 | 357405 |
|  | 6923814 | 7262063 | 1718547 |
| Deposits | 277843 | 277843 | 65751 |
| Subtotal | **7201657** | 7539906 | 1784298 |
| **Current:** |  |  |  |
| Prepayments |  |  |  |
| Other receivables | 30915 | 49064 | 11612 |
| Subtotal | **30915** | **49064** | **11612** |
| Total prepayments, deposits and other receivables | **7232572** | **7588970** | **1795910** |

---

Other prepayments, deposits and other receivables mainly consisted of prepayments for intangible assets, rental deposits, prepayments of our office premises, and utility deposits. Prepayments, deposits and other receivables increased from MYR7,232,572 in the 2024 Fiscal Year to MYR7,588,970 ($1,795,910) in the 2025 Interim Period, mainly due to the prepayments for intangible assets. During the 2024 Interim Period, we had prepaid $1,691,307 (MYR7,975,697) for intangible assets and IPO-related professional fees of MYR1,703,414 ($403,108) for the engagement of all relevant professionals, including but not limited to fees for legal counsel and initial public offering consultants.

*Trade and other payables*

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, <br> 2024** | **As of June 30, <br> 2025** | **As of June 30, <br> 2025** |
|  | **(Audited)** | **(Unaudited)** | **(Unaudited)** |
|  | | MYR | USD |
| Trade payables (note (a)) | 14089238 | 9730696 | 2302741 |
| Other payable and accruals | 1832975 | 805327 | 190578 |
| Wages payable | 200235 | 322740 | 76376 |
| Interest payable of RCPS | 1072266 | 991331 | 234596 |
| Total trade and other payables | 17194714 | 11850094 | 2804291 |

---

Note:

(a) An aging analysis of the trade
payables as of December 31, 2024 and June 30, 2025 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, <br> 2024** | **As of June 30, <br> 2025** | **As of June 30, <br> 2025** |
|  | **(Audited)** | **(Unaudited)** | **(Unaudited)** |
|  | MYR | MYR | USD |
| Within 3 months | 13892154 | 3488221 | 825477 |
| More than 3 months but within 6 months | 1226 | 3775862 | 893547 |
| More than 6 months but within 1 year | 139580 | 2390336 | 565666 |
| More than 1 year | 56278 | 76277 | 18051 |
| Total trade receivables, gross | 14089238 | 9730696 | 2302741 |

---

All trade and other payables classified as current are expected to be settled within one year or are repayable on demand. In the 2024 Fiscal Year, our trade payables amounted to MYR14,089,238 had decreased to MYR9,730,696 ($2,302,741) in the 2025 Interim Period, representing a decrease of MYR4,358,542. This decrease was mainly due to repayment of the cost of design services contractors, which amounted to MYR4,355,000. The cost of vegetables made up of 72% of total trade payables in 2025 Interim Period.

*Other payables and accruals*

 

Other payables and accruals consisted of accrued operating expenses and sundry payables. Other payables and accruals decreased from MYR1,832,975 in the 2024 Fiscal Year to MYR805,327 ($190,578) in the 2025 Interim Period. This decrease was mainly due to a decrease in sundry payables in 2025 Interim Period which have been settled at the end of the 2025 Interim Period. Wages payable increased from MYR200,235 in the 2024 Fiscal Year to MYR322,740 ($76,376) in the 2025 Interim Period, mainly due to the increase in monthly tax deduction payable to Inland Revenue Board and statutory contributions.

**CASH FLOWS STATEMENTS**

 

The following table sets forth a summary of our cash flows for the periods indicated.

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2024** | **2025** | **2025** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
|  | MYR | MYR | USD |
| Net cash (used in)/generated from operating activities | 3834274 | 39404 | 8998 |
| Net cash used in investing activities | (5578861) | (62608) | (14296) |
| Net cash generated from financing activities | 2299096 | 3468583 | 792023 |
| Effect of foreign currency exchange rate |  | (210189) | (17882) |
| Net change in cash | 554509 | 3235190 | 768843 |
| Cash at beginning of the period | 109161 | 390500 | 89166 |
| Cash at end of the period | 663670 | 3625690 | 858009 |

---

*Operating activities*

For the 2025 Interim Period, net cash generated from operating activities was MYR39,404 ($8,998), which primarily reflected our net profit of MYR3,822,895 ($872,927), as adjusted for (i) increase in trade receivables which amounted to MYR 1,016,187 ($232,015), (ii) decrease in trade payables which amounted to MYR4,358,542 ($995,237), (iii) increase in amounts due from related companies which amounted to MYR929,344 ($219,927), and (iv) reversal of provision which amounted to MYR870,737 ($212,208). For the 2024 Interim Period, net cash generated from operating activities was MYR3,834,274, which primarily reflected our net loss of MYR2,349,175, as adjusted for (i) decrease in trade receivables which amounted to MYR 2,450,218, (ii) increase in trade payables which amounted to MYR2,513,215, (iii) decrease in amounts due from related companies which amounted to MYR353,692, and (iv) finance cost for the six months ended June 30, 2024 which amounted to MYR762,047.

*Investing activities*

For the 2025 Interim Period, net cash used in investing activities was MYR62,608 ($14,296), which primarily consisted of purchases of property, plant and equipment amounted to MYR62,608 ($14,296). For the 2024 Interim Period, net cash used in investing activities was MYR5,578,861, primarily consisting of purchase of intangible assets - IT software from related parties and third parties amounted to MYR5,311,711 and MYR169,600 respectively.

*Financing activities*

For the 2025 Interim Period, net cash generated from financing activities was MYR3,468,583 ($792,023), primarily consisting of cash advances received from related parties amounted to MYR3,839,926 ($876,816) and repayment of lease liabilities totaling MYR314,568 ($71,829). For the 2024 Interim Period, net cash generated from financing activities was MYR2,299,096, primarily consisting of proceeds from the issuance of AI RCPS totaling MYR3,134,350 and payment for IPO listing related costs amounted to MYR471,570.

**Capital expenditures**

Our capital expenditures mainly include contract purchase of property, plant and equipment and intangible assets. Our capital expenditures commitment were amounted to MYR13,313,961 and MYR12,493,108 ($2,956,459), in the 2024 Fiscal Year and 2025 Interim Period, respectively. Our capital expenditures mainly arise from certain purchase contracts providing for IT software such as E-commerce website design, Internet of Things (IoT) management platforms, system integration platforms and Enterprise Resource Planning (ERP) systems entered into with suppliers and the developments of comprehensive Robotics AI Platform designed to facilitate the creation, deployment, and management of intelligent robotic systems . The majority of these contractual commitments are due within two years and upon the project progress. Other than as shown above, the Group did not have any significant capital and other commitments, long-term obligations or guarantees in the 2024 Fiscal Year and 2025 Interim Period.

Other than purchases of property, plant and equipment and intangible assets stated under investing activities, there were no other significant capital expenditures incurred in either the 2024 Fiscal Year or the 2025 Interim Period.

**OFF-BALANCE SHEET ARRANGEMENTS**

The Group currently has no off-balance sheet arrangements, including arrangements that would affect its liquidity, capital resources, market risk support, and credit risk support or other benefits.

**QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK**

*Credit risk*

Assets that potentially subject the Group to a significant concentration of credit risk primarily consist of cash, trade and other receivables and amounts due from related parties.

*Cash holdings risk*

The Group maintains the position that the cash held within its portfolio are exposed to minimal credit risk. This belief stems from the fact that these assets are managed by esteemed financial institutions located within the jurisdictions of operation of both Agroz Inc. and its subsidiaries. We believe that the rigorous standards and reputations of these institutions significantly mitigate potential risks associated with our cash holdings.

*Interest rate risk*

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group does not account for any fixed rate financial instruments at fair value through profit or loss at the end of each reporting period. Therefore, interest-bearing financial instruments at fixed rates do not expose the Group to fair value interest rate risk. The Group's interest rate risk arises primarily from cash at bank at variable rates, for which the amount is immaterial. Therefore, the Group's interest rate risk exposure was insignificant.

The Group's risk management objective for interest rate risk is to reduce its exposure to variability of cash flows arising from changes in interest rates. Interest rates on the Group's lease contracts and bank borrowing are fixed and thus are not sensitive to fluctuation in market interest rates.

*Foreign currency risk*

Our exposure to foreign currency risk arose primarily through service income or expenses denominated in a currency other than the functional currency of the operations to which the currency relates. The currencies giving rise to this risk are primarily US$. As MYR converts to US$ the exchange rate becomes larger, but foreign exchange fluctuations remain stable, refer from these few years even the exchange rate will increase but its increase gradually at a stable rate.

**CRITICAL JUDGEMENTS AND KEY ESTIMATES**

Under International Financial Reporting Standards ("IFRS"), we are required to make estimates and assumptions in presentation and preparation of the financial statements for the 2023 Fiscal Year and 2024 Fiscal Year.

We prepared our consolidated financial statements in accordance with IFRS, which requires us to make judgments, estimates and assumptions that affect (i) the reported amounts of our assets and liabilities; (ii) the disclosure of our contingent assets and liabilities at the end of each reporting period; and (iii) the reported amounts of revenues and expenses during each reporting period. We continually evaluate these judgments, estimates and assumptions based on our own historical experience, knowledge and assessment of current business and other conditions and our expectations regarding the future based on available information, which together form our basis for making judgments about matters that are not readily apparent from other sources. Since the use of estimates is an integral component of the financial reporting process, our actual results could differ from those estimates.

We consider an accounting estimate to be critical if: (1) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made, and (2) changes in the estimate that are reasonably likely to occur from period to period or use of different estimates that we reasonably could have used in the current period, would have a material impact on our results of operations or financials condition.

When reading our consolidated financial statements, you should consider our selection of critical accounting policies, the judgment and other uncertainties affecting the application of such policies and the sensitivity of reported results to changes in conditions and assumptions. Our critical accounting policies and practices include the following: (i) expected credit loss of trade receivables; (ii) operating leases and right of use asset; (iii) redeemable convertible preference shares and (iv) revenue recognition. See Note 3 — Significant Accounting Policies to our consolidated financial statements for a disclosure of these accounting policies. We believe that provision for expected credit losses on trade receivables involve the most significant judgements in the preparation of our consolidated financial statements.

(i) Provision for expected credit losses on trade receivables

The Group estimates the loss allowances for trade receivables by assessing the ECLs in accordance IFRS 9 Financial Instruments. This requires the use of estimates and judgements due to the inherent uncertainty in estimating the expected loss rate over the life of trade receivables.

For trade receivables related to third-party retail outlet customers, the Group measures loss allowances at an amount equal to lifetime ECLs, which is calculated using a provision matrix. Expected loss rates are based on actual loss experience over the past 2 years. These rates are adjusted to reflect differences between economic conditions during the period over which the historical data has been collected, current conditions and the Group's view of economic conditions over the expected lives of the receivables.

For trade receivables related to third-party industrial business customers and related parties, the Group measures loss allowances at an amount equal to lifetime ECLs, which is calculated using a behavioral scoring system taking into consideration current and historical credit worthiness, aging analysis, operating history in the relevant industry, reputation in the market and paid-in capital scale. Customers with positive behavior in all scoring areas, would be assigned a low-risk grading. Customers with positive behavior in most of the scoring areas, would be assigned a fair-risk grading. Customers with lesser positive behavior in scoring areas, would be assigned a substantial grading. The Group keeps assessing the expected credit loss of trade receivables during their expected lives.

Additionally, the Group makes specific bad debt provisions based on any specific knowledge the Group has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Group to use substantial judgment in assessing its collectability. After the reporting date and up to the date of this report, there have been no significant changes in macroeconomic indicators or customer credit risk that would materially impact the assumptions used in the ECL model. Management continues to monitor forward-looking indicators, including industry-specific developments and credit performance, to assess whether adjustments are required in future reporting periods.

**RECENT ACCOUNTING PRONOUNCEMENTS**

See the discussion of the recent accounting pronouncements contained in Note 2.3 of the unaudited condensed consolidated financial statements and consolidated financial statements entitled "**Basis of preparation**."

**Financial Statements and Exhibits**

**Exhibits**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | [Unaudited Condensed Consolidated Interim Financial Statements as of and for the six-month periods ended June 30, 2025 and June 30, 2024](ea027113701ex99-1_agroz.htm) |

---

**<u>SIGNATURES</u>**

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **Agroz Inc.** | **Agroz Inc.** |
| Date: January 2, 2026 | By: | /s/ Gerard Kim Meng Lim |
|  | Name: | Gerard Kim Meng Lim |
|  | Title: | Chief Executive Officer |

---

## Exhibit 99.1

?xml version='1.0' encoding='ASCII'?

**Exhibit 99.1**

**AGROZ INC.**

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
| **CONTENTS** | **PAGE** |
| [Unaudited Interim Condensed Consolidated Statements of Financial Position as of December 31, 2024 and June 30, 2025](#f_001) | F-2 |
| [Unaudited Interim Condensed Consolidated Statements of Profit or Loss and Other Comprehensive Income for the period ended June 30, 2024 and 2025](#f_002) | F-3 |
| [Unaudited Interim Condensed Consolidated Statements of Changes in Equity for the period ended June 30, 2024 and 2025](#f_003) | F-4 |
| [Unaudited Interim Condensed Consolidated Statements of Cash Flows for the period ended June 30, 2024 and 2025](#f_004) | F-5 |
| [Notes to Unaudited Interim Condensed Consolidated Financial Statements](#f_005) | F-6 - F-47 |

---

**Agroz Inc.**

**UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION**

**AS OF DECEMBER 31, 2024 AND JUNE 30, 2025**

**(Stated in Malaysian Ringgit)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Note** | **As of December 31,<br> 2024** | **As of<br> June 30,<br> 2025** | **As of<br> June 30,<br> 2025** |
|  |  | **MYR** | **MYR** | **USD** |
| **Assets** |  | | | |
| Property, plant and equipment | 5 | 225316 | 243294 | 57575 |
| Intangible assets | 6 | 2096815 | 1861291 | 440469 |
| Deferred tax assets | 16 | 30023 | – | – |
| Prepayment - to a related party | 21 | 5517306 | 5751779 | 1361142 |
| Prepayment and deposits – to third parties |  | 1684351 | 1788127 | 423156 |
| Total prepayments and deposits | 9 | 7201657 | 7539906 | 1784298 |
| Right-of-use assets | 7(a) | 2277208 | 2022484 | 478615 |
| Deferred offering costs |  | 1738900 | 1703414 | 403108 |
| **Non-current assets** |  | 13569919 | 13370389 | 3164065 |
| Trade receivables - from third parties |  | 35596841 | 35643051 | 8434827 |
| Trade receivables - from related parties | 21 | 720013 | – | – |
| Total trade receivables | 8 | 36316854 | 35643051 | 8434827 |
| Prepayments and other receivables | 9 | 30915 | 49064 | 11612 |
| Amounts due from a related party | 21 | 751695 | 1071069 | 253465 |
| Cash | 10 | 390500 | 3625690 | 858009 |
| **Current assets** |  | 37489964 | 40388874 | 9557913 |
| **Total assets** |  | 51059883 | 53759263 | 12721978 |
| **<u>Equity</u>** |  |  |  |  |
| Share capital | 11(a) | 8540 | 8540 | 2021 |
| Additional paid-in capital | 11(a) | 6903616 | 6739496 | 1594883 |
| Other reserves | 11(b) | 633029 | 1129771 | 267357 |
| Retained earnings |  | 6189752 | 8434357 | 1995967 |
| **Total equity** |  | 13734937 | 16312164 | 3860228 |
| **<u>Liabilities</u>** |  |  |  |  |
| Lease liabilities, non-current | 7(b) | 2095605 | 1872935 | 443225 |
| Bank borrowing, non-current | 13 | 39774 | 32828 | 7769 |
| Deferred tax liabilities | 16 | – | 96130 | 22749 |
| Redeemable convertible preference shares, non-current | 12 | 6213040 | 3746569 | 886615 |
| **Non-current liabilities** |  | 8348419 | 5748462 | 1360358 |
| Trade payables | 15 | 14089238 | 9730696 | 2302741 |
| Other payables, current | 15 | 3105476 | 2119398 | 501550 |
| Tax payables | 16 | 3991673 | 5372593 | 1271409 |
| Bank borrowing, current | 13 | 13255 | 13738 | 3251 |
| Lease liabilities, current | 7(b) | 397705 | 426472 | 100923 |
| Amounts due to related parties, current | 21 | 4001850 | 8734750 | 2067054 |
| Redeemable convertible preference shares, current | 12 | 3377330 | 5300990 | 1254464 |
| **Current liabilities** |  | 28976527 | 31698637 | 7501392 |
| **Total liabilities** |  | 37324946 | 37447099 | 8861750 |
| **Total equity and liabilities** |  | 51059883 | 53759263 | 12721978 |

---

The accompanying notes form an integral part of these consolidated financial statements.

**Agroz Inc.**

**UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME**

**FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2025**

**(Stated in Malaysian Ringgit)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | **For the period ended June 30,** | **For the period ended June 30,** | **For the period ended June 30,** |
|  | <br>**Note** | **2024** | **2025** | **2025** |
|  |  | **MYR** | **MYR** | **USD** |
| Revenue - third parties |  | 5730636 | 28632549 | 6538007 |
| Revenue - related parties | 21 | 1082923 | – | – |
| Total revenue | 17 | 6813559 | 28632549 | 6538007 |
| Cost of revenue | 19 | (5398795) | (21898821) | (5000416) |
| **Gross profit** |  | **1414764** | **6733728** | **1537591** |
| Selling and promotion expenses | 19 | (95265) | (20271) | (4629) |
| General and administrative expenses | 19 | (2901428) | (3543387) | (809103) |
| Other income | 18 | 1093 | 1102754 | 251805 |
| (Provision)/reversal of credit loss on trade receivables | 14(a) | (4085) | 342284 | 78158 |
| **Operating (loss)/profit** |  | **(1584921)** | **4615108** | **1053822** |
| Finance costs | 20 | (764254) | (792213) | (180895) |
| **Profit before taxation** |  | **(2349175)** | **3822895** | **872927** |
| Income tax expenses | 16 | (225946) | (1578290) | (360390) |
| **(Loss)/profit for the period** |  | **(2575121)** | **2244605** | **512537** |
| **Other comprehensive income:** |  |  |  |  |
| *Items that may be reclassified subsequently to profit or loss:* |  |  |  |  |
| Exchange differences on translation of financial statements of foreign operations |  | 39081 | 496742 | 113427 |
| **Other comprehensive income for the period** |  | **39081** | **496742** | **113427** |
| **Total comprehensive (loss)/income for the period** |  | **(2536040)** | **2741347** | **625964** |
| Earnings per share |  |  |  |  |
| - Basic | 22(a) | 0.13 | 0.14 | 0.03 |
| - Diluted | 22(b) | 0.13 | 0.14 | 0.03 |

---

The accompanying notes form an integral part of these consolidated financial statements.

**Agroz Inc.**

**UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY**

**FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2025**

**(Stated in Malaysian Ringgit)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Share capital** | **Share capital** | **Share capital** | **Share capital** | **Other reserves** | **Other reserves** | | |
|  | **Shares** | **Amount** | **Subscription <br> receivable** | **Additional <br> paid-in <br> capital** | **Foreign <br> currency <br> translation reserve** | **Equity component <br> of redeemable <br> convertible <br> preference shares** |<br>**Retained earnings** |<br>**Total<br> shareholders'<br> equity** |
| **Balance as of January 1, 2024** | 20000000 | 8351 | – | 2171649 | 49030 | 459417 | 2677584 | 5366031 |
| Loss for the period |  | – | – | – | – | – | (2575121) | (2575121) |
| Other comprehensive income | – | – | – | – | 39081 | – | – | 39081 |
| Total comprehensive income/(loss) for the period |  | – | – | – | 39081 | – | (2575121) | (2536040) |
| Issuance of new shares (note 11(a)) |  | 430 | (430) | – | – | – | – | – |
| Issuance of redeemable convertible preference shares (note 12) | – | – | – | – | – | 267397 | – | 267397 |
| **Balance as of June 30, 2024** | 20000000 | 8781 | (430) | 2171649 | 88111 | 726814 | 102463 | 3097388 |
| **Balance as of January 1, 2025** | 20423485 | 8540 | – | 6903616 | 154650 | 478379 | 6189752 | 13734937 |
| Profit for the period |  | – | – | – | – | – | 2244605 | 2244605 |
| Other comprehensive income | – | – | – | – | 496742 | – | – | 496742 |
| Total comprehensive income for the period |  | – | – | – | 496742 | – | 2244605 | 2741347 |
| Foreign exchange loss | – | – | – | (164120) | – | – | – | (164120) |
| **Balance as of June 30, 2025** | 20423485 | 8540 | – | 6739496 | 651392 | 478379 | 8434357 | 16312164 |
| **Balance as of June 30, 2025 (USD)** | 20423485 | 2021 | – | 1594883 | 154150 | 113207 | 1995967 | 3860228 |

---

The accompanying notes form an integral part of these consolidated financial statements.

**Agroz Inc.**

**UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2025**

**(Stated in Malaysian Ringgit)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | **For the period ended June 30,** | **For the period ended June 30,** | **For the period ended June 30,** |
|  | <br>**Note** | **2024** | **2025** | **2025** |
|  |  | **MYR** | **MYR** | **USD** |
| **Cash flows from operating activities** |  |  |  |  |
| (Loss) profit before tax |  | (2349175) | 3822895 | 872927 |
| Adjustments for: |  |  |  |  |
| Finance costs | 20 | 762047 | 788202 | 179980 |
| Depreciation charge of property, plant and equipment | 19(ii) | 44487 | 44630 | 10191 |
| Depreciation of right-of-use assets | 19(ii) | 225390 | 254724 | 58164 |
| Amortization of intangible assets | 19(ii) | 7659 | 235524 | 53780 |
| Reversal of accruals | 18 |  | (870739) | (198826) |
| Provision/(reversal) of credit loss on trade receivables | 14(a) | 4085 | (342284) | (78158) |
| **Changes in assets and liabilities** |  |  |  |  |
| Decrease in trade receivables |  | 2450218 | 1016087 | 232015 |
| Decrease/(increase) in prepayments, deposits and other receivables |  | 236108 | (320912) | (73278) |
| Decrease/(increase) in amounts due from a related company |  | 353692 | (319374) | (72926) |
| Increase/(decrease) in other payables |  | 149084 | (768934) | (175580) |
| (Decrease)/ increase in amounts due to related companies |  | (562536) | 929344 | 212208 |
| Increase/(decrease) in trade payables |  | 2513215 | (4358542) | (995237) |
| Income tax paid |  | – | (71217) | (16262) |
| **Net cash generated from operating activities** |  | 3834274 | 39404 | 8998 |
| **Cash flows from investing activities** |  |  |  |  |
| Payments for purchases of property, plant and equipment |  | (97550) | (62608) | (14296) |
| Payments for purchases of intangible assets-related parties |  | (5311711) |  |  |
| Payments for purchases of intangible assets-third parties |  | (169600) | – | – |
| **Net cash used in investing activities** |  | (5578861) | (62608) | (14296) |
| **Cash flows from financing activities** |  |  |  |  |
| Payment of IPO related costs |  | (471570) |  |  |
| (Repayment to)/advances received from a related party | 10(a) | (4123) | 3839926 | 876816 |
| Repayment of shareholder's loan | 10(a) | (70925) | (50000) | (11417) |
| Payment of principal element of bank borrowing | 10(a) | (7921) | (5370) | (1226) |
| Payment of interest element of bank borrowing | 10(a) | (2148) | (1405) | (321) |
| Proceeds from the issue of redeemable convertible preference shares | 10(a) | 3134350 |  |  |
| Payment of capital element of lease liabilities | 10(a) | (155262) | (193903) | (44276) |
| Payment of interest element of lease liabilities | 10(a) | (123305) | (120665) | (27553) |
| **Net cash generated from financing activities** |  | 2299096 | 3468583 | 792023 |
| Effect of foreign currency exchange rate |  |  | (210189) | (17882) |
| Net increase in cash |  | 554509 | 3235190 | 768842 |
| Cash – beginning of the period |  | 109161 | 390500 | 89166 |
| Cash – end of the period |  | 663670 | 3625690 | 858009 |

---

The accompanying notes form an integral part of these consolidated financial statements.

**Agroz Inc.**

**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**For the period ended June 30, 2024 and 2025**

**1. General information**

Agroz Inc. (the "Company") was incorporated in the Cayman Islands on August 8, 2023, as an exempted company with limited liability under the Companies Law, Cap.22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands.

The Company is an investment holding company and has not carried on any business since the date of its incorporation except for the group reorganization mentioned in note 2.1 below. The Company and its subsidiary (collectively, the "Group") are principally engaged in offering farm solutions and selling fresh produce from the controlled environment agriculture vertical farms operated (the "CEA vertical farms"). The principal activities aforementioned are defined as the Relevant Business of the Group.

2. Reorganization, basis of presentation and going concern

**2.1 Reorganization**

Prior to the incorporation of the Company, the above mentioned Relevant Business was carried out through Agroz Group Sdn. Bhd. ("Agroz Group"), a company established in Malaysia on November 20, 2020. In anticipation of an initial public offering ("IPO"), the Company was incorporated on August 8, 2023; and acquired 100.0% of equity interests of Agroz Group and became the holding company of the Group on December 14, 2023 (the "Reorganization"). Immediately before and after the Reorganization, the Company and Agroz Group are with identical shareholdings structures, which were effectively under common control; therefore, the Reorganization was accounted for as a recapitalization of the operating entity. The consolidated financial statements have been prepared in a manner as if the Relevant Businesses had been always operated by the companies now comprising the Group and the Reorganization had been completed at the beginning of the reporting periods. The assets and liabilities included in the consolidated financial statements are recognized and measured at the historical costs prior to the Reorganization.

The consolidated statements of profit or loss and other comprehensive income, cash flows and changes in shareholders' equity for the period ended June 30, 2024 and 2025, included the results and operations of the companies now comprising the Group. The consolidated statements of financial position as of December 31, 2024 and June 30, 2024 included the financial position of the companies now comprising the Group, except for their capital structure which is retrospectively adjusted to reflect the legal capital structure of the Company. The registered capital of the companies now comprising the Group were included in additional paid-in capital in the consolidated statements of financial position as of December 31, 2024 and June 30, 2025.

2.2 Subsidiary

Upon completion of the Reorganization and as of the date of issue of these consolidated financial statements, the Company only has one subsidiary as follow:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | | **Percentage of <br> shareholding %** | **Percentage of <br> shareholding %** |
| <br>**Company** | **Date and <br> place of<br> incorporation**<br>**and operation** | **Issued**<br>**share**<br>**capital** | **Principal**<br>**activities** | **Direct** | **Indirect** |
| Agroz Group Sdn. Bhd. ("Agroz Group") | November 20, 2020 Malaysia | 1000 | Offering farm solutions, and selling fresh produce from the CEA vertical farms | 100% |  |

---

**2.3 Basis of preparation**

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRSs") as issued by the International Accounting Standards Board ("IASB"). IFRSs also comprise International Accounting Standards ("IAS"); and Interpretations.

These financial statements were authorized for issue by the Group's board of directors on December 29, 2025.

The IASB has issued a number of new and revised IFRSs. For the purpose of preparing these financial statements, the Group has adopted all applicable new and revised IFRSs that are effective. The accounting policies set out below have been applied consistently to the reporting periods presented in these consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;a. New
 and revised IFRSs that are adopted and are effective for the annual accounting periods beginning
 on or after January 1, 2024

● Amendments to IAS 1 - Classification of Liabilities as Current or Non-Current

● Amendments to IAS 1 - Non-current Liabilities with Covenants

● Amendments to IAS 7 and IFRS 7 – Supplier Finance Arrangements

● Amendments to IAS 16 - Lease Liability in a Sale and Leaseback

&nbsp;&nbsp;&nbsp;&nbsp;b. New and revised IFRSs that are not yet effective and have not been early adopted

---

| | |
|:---|:---|
|  | **Effective for<br> accounting<br> periods<br> beginning on or after**  |
| Amendment to IAS 21 - Lack of Exchangeability | January 1, 2025 |
| Amendments to IFRS 7 and IFRS 9 - Classification and Measurements of Financial Instruments | January 1, 2026 |
| IFRS 18 Presentation and Disclosure in Financial Statements | January 1, 2027 |
| IFRS 19 - Subsidiaries without Public Accountability Disclosures | January 1, 2027 |
| Amendments to IFRS 10 and IAS 28 - Sale or contribution of assets between an investor and its associate or joint venture | will be determined at a future date |

---

The Group is in the process of making an assessment of what the impact of these developments is expected to be in the period of initial application. So far it has concluded that the adoption of them is unlikely to have a material impact on the consolidated financial statements.

3. Significant accounting policies

**3.1 Basis of consolidation**

The consolidated financial statements include the financial statements of the Group and its subsidiary on a consolidated basis. Subsidiary is an entity over which the Group has control. The Group controls an entity when it is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The Group has power over an entity when the Group has existing rights that give it the current ability to direct the relevant activities, i.e. activities that significantly affect the entity's returns.

When assessing control, the Group considers its potential voting rights as well as potential voting rights held by other parties, to determine whether it has control. A potential voting right is considered only if the holder has the practical ability to exercise that right.

A subsidiary is consolidated from the date on which control is transferred to the Group. It is deconsolidated from the date the control ceases.

Intra-group transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. When necessary, amounts reported by a subsidiary has been adjusted to conform with the Group's accounting policies.

3.2 Translation of foreign currencies

(i) Functional
 and presentation currency

Items included in the financial statements of each entity in the Group are measured using the currency that best reflects the economic substance of the underlying events and circumstances relevant to the entity (the "functional currency"). The functional currency of the Company is United States dollars ("USD"). As major operations of the Group are within Malaysia, the Group presents its consolidated financial statements in Ringgit Malaysia (MYR), unless otherwise stated.

(ii) Convenience
 translation

Translations of amounts in the consolidated statements of financial position, consolidated statements of profit or loss and other comprehensive income and consolidated statements of cash flows from MYR into USD as of and for the period ended June 30, 2025 are solely for the convenience of the reader and were calculated at the noon buying rate of USD 1= MYR 4.2257 on June 30, 2025 as published in H.10 statistical release of the United States Federal Reserve Board or an average rate of USD 1 = MYR 4.3794. No representation is made that the MYR amounts could have been, or could be, converted, realized or settled into USD at such rate or at any other rate.

(iii) Transactions
 and balances

Foreign currency transactions during the period are translated into the respective functional currencies of group companies at the exchange rates at the dates of the transactions.

Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the end of each reporting period. Exchange gains and losses are recognized in profit or loss and presented within other income.

Non-monetary assets and liabilities that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction.

(iv) Foreign
 operations

The results of foreign operations are translated into MYR at the exchange rates approximating the exchange rates at the dates of the transactions. Statements of financial position items are translated into USD at the exchange rates at the end of each reporting period. The resulting exchange differences are recognized in other comprehensive income and accumulated separately in equity in the translation reserve.

3.3 Trade and other receivables

A receivable is recognized when the Group has an unconditional right to receive consideration. A right to receive consideration is unconditional if only the passage of time is required before payment of that consideration is due.

The Group does not have any receivables that contain significant financing component at the end of each reporting period. Receivables are initially measured at their transaction price. All receivables are subsequently stated at amortized cost and including an allowance for credit losses (see note 3.5).

3.4 Trade and other payables

Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. Trade and other payables are initially recognized at fair value and subsequently stated at amortized cost unless the effect of discounting would be immaterial, in which case they are stated at cost.

3.5 Credit losses from financial instruments

The Group recognizes a loss allowance for expected credit loss ("ECL") on financial assets which are subject to impairment under IFRS 9 (including trade and other receivables, amounts due from a related party, bank deposits and bank balances).

*Measurement of ECLs*

 

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all expected cash shortfalls (i.e. the difference between the cash flows due to the Group in accordance with the contract and the cash flows that the Group expects to receive). The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk. In measuring ECLs, the Group takes into account reasonable and supportable information that is available without undue cost or effort. This includes information about past events, current conditions and forecasts of future economic conditions.

ECLs are measured on either of the following bases:

● 12-month ECLs: these are losses that are expected to result from possible default events within the 12 months after the reporting date; and

● lifetime ECLs: these are losses that are expected to result from all possible default events over the expected lives of the items to which the ECL model applies.

Loss allowances for trade receivables are always measured at an amount equal to lifetime ECLs. ECLs on these financial assets are estimated using a provision matrix based on the Group's historical credit loss experience, adjusted for factors that are specific to the debtors and an assessment of both the current and forecast general economic conditions at the reporting date.

For all other financial instruments, the Group recognizes a loss allowance equal to 12-month ECLs unless there has been a significant increase in credit risk of the financial instrument since initial recognition, in which case the loss allowance is measured at an amount equal to lifetime ECLs.

*Significant increases in credit risk*

 

In assessing whether the credit risk of a financial instrument has increased significantly since initial recognition, the Group compares the risk of default occurring on the financial instrument assessed at the reporting date with that assessed at the date of initial recognition. In particular, the following information is taken into account when assessing whether credit risk has increased significantly since initial recognition:

● failure to make payments of principal or interest on their contractually due dates;

● an actual or expected significant deterioration in a financial instrument's external or internal credit rating (if available);

● an actual or expected significant deterioration in the operating results of the debtor; and

● existing or forecast changes in the technological, market, economic or legal environment that have a significant adverse effect on the debtor's ability to meet its obligation to the Group.

Depending on the nature of the financial instruments, the assessment of a significant increase in credit risk is performed on either an individual basis or a collective basis. When the assessment is performed on a collective basis, the financial instruments are grouped based on shared credit risk characteristics, such as past due status and credit risk ratings.

ECLs are remeasured at each reporting date to reflect changes in the financial instrument's credit risk since initial recognition. Any change in the ECL amount is recognized as an impairment gain or loss in profit or loss. The Group recognizes an impairment gain or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account.

3.6 Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses (see note 3.9). The cost of an item of property, plant and equipment comprises its purchase price and any directly attributable costs of bringing the asset to its working condition and location for its intended use.

Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values if any, over their estimated useful lives and is generally recognized in profit or loss. The useful lives used for this purpose are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;● Computer and equipment 3 years

● Furniture and fittings 3 years

● Fire system 5 years

● Motor vehicle 5 years

● Renovation shorter of expected lives of office renovation and lease terms

Depreciation methods, useful lives and residual values are reviewed at the end of each reporting period and adjusted if appropriate.

Gains or losses arising from the retirement or disposal of an item of property and equipment are determined as the difference between the net disposal proceeds and the carrying amount of the item and are recognized in profit or loss on the date of retirement or disposal.

3.7 Intangible assets

Intangible assets that are acquired by the Group are stated at cost less accumulated amortization (where the estimated useful life is finite) and accumulated impairment losses (see note 3.9).

Intangible assets with finite lives are subsequently amortized on a straight-line basis over the useful life and is recognized in profit or loss. The useful life and the amortization method for an intangible asset with a finite useful life are reviewed, and adjusted if appropriate, at least at each year end. The useful lives used for this purpose are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;● Website 3 years

● Software 5 years

3.8 Lease

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control is conveyed where the customer has both the right to direct the use of the identified asset and to obtain substantially all of the economic benefits from that use.

(i) As
 a lessee

At the lease commencement date, the Group recognizes a right-of-use asset and a lease liability, except for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The lease payments associated with those leases which are not capitalized are recognized as an expense on a systematic basis over the lease term.

Where the lease is capitalized, the lease liability is initially recognized at the present value of the lease payments payable over the lease term, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, using a relevant incremental borrowing rate. The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased. After initial recognition, the lease liability is measured at amortized cost and interest expense is calculated using the effective interest method. Variable lease payments that do not depend on an index or rate are not included in the measurement of the lease liability and hence are charged to profit or loss in the accounting period in which they are incurred.

The right-of-use asset recognized when a lease is capitalized is initially measured at cost, which comprises the initial amount of the lease liability plus any lease payments made at or before the commencement date, and any initial direct costs incurred. Where applicable, the cost of the right-of-use assets also includes an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, discounted to their present value, less any lease incentives received. The right-of-use asset is subsequently stated at cost less accumulated depreciation and impairment losses (see note 3.9). Depreciation is calculated to write off the cost of items of right-of-use assets, using the straight-line method over the unexpired lease term.

(ii) Sales
 and leaseback transactions

The Group applies IFRS 15 for determining if the transfer of an asset to the buyer (lessor) is to be accounted for as a sale of assets. After the sale of assets is concluded, the Group measures the right-of-use assets arising from the leaseback at the proportion of the previous carrying value of the asset that relates to the right of use retained by the Group. Accordingly, the Group recognizes only the amount of any gain or loss that relates to the rights transferred to the buyer (lessor).

3.9 Impairment on property, plant and equipment, right-of-use assets and intangible assets

At the end of the reporting period, the Group reviews the carrying amounts of its property, plant and equipment, right-of-use assets and intangible assets with finite useful lives to determine whether there is any indication that these assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the relevant asset is estimated in order to determine the extent of the impairment loss (if any).

The recoverable amount of property, plant and equipment, right-of-use assets and intangible assets are estimated individually. When it is not possible to estimate the recoverable amount individually, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs of disposal and value in use. The fair value less cost to sell is the estimated amount obtainable from the sale of an asset in an arm's length transaction less disposal costs, while value in use is the present value of estimated future cash flows from the continuing use of an asset and from its disposal at the end of its useful life.

A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognized. If that is the case, the carrying amount of the asset is increased to its recoverable amount. The increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior periods.

3.10 Cash

The Group maintains all of its bank accounts in Malaysia and no cash equivalents. Cash are assessed for ECL (see note 3.5).

3.11 Development costs

CEA vertical farms under development is stated at the lower of cost and net realizable value. Net realizable value takes into account the price ultimately expected to be realized, less applicable variable selling expenses and anticipated cost to completion. Development cost of CEA vertical farms comprises mainly construction cost and equipment installation work incurred during the development period. On completion, the CEA vertical farms are transferred to completed project held for sale.

CEA vertical farms under development is classified as a current asset unless it will not be realized in one normal operating cycle.

3.12 Redeemable convertible preference shares

Redeemable convertible preference shares ("RCPS") are with a fixed dividend rate and redeemable at the request of the holders upon the occurrence of a certain redemption event or on the maturity date as agreed in the corresponding shareholders' agreement. The conversion option embedded, if any, is with a conversion ratio of one RCPSs to one common share of the Company.

The Group reviews the term and conditions of the RCPS to conclude whether the RCPSs have the characteristics of:

A financial liability – when the financial instruments are with contractual obligation to deliver cash or other financial assets, including to pay a fixed rate or dividend and/or have a mandatory redemption feature at a future date;

An equity instrument – when the financial instruments do not have a fixed maturity and the issuer does not have a contractual obligation to make any payment, which represent a residual interest in the assets of an entity after deducting all of its liabilities.

RCPSs without conversion option have been classified as financial liabilities, which are measured initially at fair value and subsequently at amortized cost.

RCPSs with conversion option have been classified as a compound financial instrument, with liability and equity components. When the initial carrying amount of a compound financial instrument is allocated to its equity and liability components, the equity component is assigned the residual amount after deducting from the fair value of the instrument as a whole the amount separately determined for the liability component. The sum of the carrying amounts assigned to the liability and equity components on initial recognition is always equal to the fair value to the instrument as a whole. No gain or loss arises from initially recognizing the components of the instrument separately.

Any transaction costs are recognized as finance costs in the consolidated statements of profit or loss.

3.13 Revenue and other income

Income is classified by the Group as revenue when it arises from the sale of products and the provision of services.

Revenue is recognized when control over the product or service is transferred to the customer, at the amount of promised consideration to which the Group is expected to be entitled in exchange for the satisfaction of a specific performance obligation, excluding those amounts collected on behalf of third parties.

The Group takes advantage of the practical expedient in paragraph 63 of IFRS 15 and does not adjust the consideration for the effects of any significant financing component if the expected period of financing is 12 months or less.

Further details of the Group's revenue and other income recognition policies are as follows:

(i) Farm
 solutions

The Group offers a comprehensive set of farm solutions to the customers, which include to sell CEA vertical farm as an integrated project or to provide CEA vertical farms design and construction service separately according to the specific demands from the customers.

*Designing service of CEA vertical farms*

 

Revenue from farm design services, as a single promise, is recognized at a point in time when the relevant services are rendered, generally upon acceptance of the farm layout plan for the customer and the Group has a present right to receive payment. The contract payment is not subject to any variable consideration, refund, cancellation or termination provision.

 

*CEA vertical farms related construction services*

 

Revenue from farm related construction service is recognized over time as the customer simultaneously receives and consumes the benefits provided by the Group's performance as it occurs, and the customer controls the related asset as it is created or enhanced.

Under the construction contract, the Group is responsible for providing the overall management of the construction project and identifies goods and services to be provided including procurement, construction, engineering and finishing. The Group identifies only one performance obligation in farm construction service as the goods and services to be provided under the contract are not separately identifiable within the context of the agreement to be distinct performance obligations.

The construction revenue is recognized according to the stage of completion of the works. The contract payment is not subject to any variable consideration, refund, cancellation or termination provision.

*Farm sales*

For CEA vertical farms sales contract for which the control of the farm is transferred at a point in time, revenue is recognized upon acceptance of the farm for the customer and the Group has a present right to receive payment. The contract payment is not subject to any variable consideration, refund or return provision.

(ii) Management
 fees

The Group earns management fees by providing professional skills and knowledge to operate and manage CEA vertical farms. Management fee is recognized over the period in which the services are rendered.

(iii) Sale
 of fresh produce

Revenue from sale of fresh produce is measured based on the consideration specified in a contract with customers from both retailers and distributors, regardless of the customer being a third party or a related party, in exchange for goods delivered. Agroz Group fulfills its sales obligation to its customers by purchasing fresh produce from the farms that it operates and manages, which are owned by related parties. For both sales to retailer and distributor customers, Agroz Group recognized revenue at a point in time when the control is transferred to the customer, generally on delivery of the vegetables. Agroz Group ensures the quality of its products to meet customers' requirements and manages delivery of fresh produce to customers. Management determines the transaction price of fresh produce and is responsible for quality of products and customer returns to take the inventory risk. Hence, revenue recognized and billings to customers are at gross.

Revenue from the sale of fresh produce is recognized at a point in time when control of the produce is transferred to the customer, generally on delivery of the vegetables.

Management also collaborates with third parties who provide platforms for sale of fresh produce. Agroz Group will deliver vegetables to third parties and determine selling price of fresh produce. The Group holds inventory risk before the fresh produce sold to end customers. As Agroz Group acts as principal and determines transaction price of fresh produce, revenue generated from fresh produce is recognized at gross.

(iv) Interest
 income

For financial assets measured at amortized cost, interest income is measured using the effective interest method and recognized in profit or loss.

(v) Government
 grants

Government grants initially when there is reasonable assurance that they will be received and that the Group will comply with the conditions attached to them. Grants that compensate the Group for expenses incurred are recognized as other income in profit or loss based on the timing of when the related costs for which the grants are intended to compensate are incurred.

3.14 Bank borrowing

Bank borrowing was initially recognized at fair value, net of transaction costs incurred, and subsequently measured at amortized cost using the effective interest method.

Bank borrowing was classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

3.15 Finance costs

Finance costs are expensed in the period in which they are incurred, comprising fixed-rate dividend of mandatorily redeemable convertible preference shares, interest of lease liabilities, bank and related party borrowing.

3.16 Income tax

Income tax expense comprises current tax and movements in deferred tax assets and liabilities. Current tax and movements in deferred tax are recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the period, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous periods. The amount of current tax payable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any.

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes, deferred tax assets also arise from unused tax losses and unused tax credits.

A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

The measurement of deferred taxes reflects the tax consequences that would follow the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date.

3.17 Employee benefits

(i) Short-term
 employee benefits

Short-term employee benefits are recognized at the undiscounted amount of the benefits expected to be paid as and when employee rendered the services. All short-term employee benefits are recognized as an expense unless IFRSs requires to permit the inclusion of the benefit in the cost of an asset. A liability is recognized for benefits accruing to employees (such as wages and salaries, annual leaves and sick leave) after deducting any amount already paid.

(ii) Retirement
 benefit costs

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered services entitling them to the contributions.

(iii) Termination
 benefits

Termination benefits are recognized at the earlier of the dates when the Group can no longer withdraw the offer of those benefits and when the Group recognizes restructuring costs and involves the payment of termination benefits.

3.18 Related parties

A related party is a person or entity that is related to the Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) A
 person or a close member of that person's family is related to the Group if that person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) has
 control or joint control over the Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) has
 significant influence over the Group; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) is
 a member of the key management personnel of the Group or of a parent of the Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) An
entity is related to the Group if any of the following conditions applies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The
 entity and the Group are members of the same group (which means that each parent, subsidiary
 and fellow subsidiary is related to the others);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) One
 entity is an associate or joint venture of the other entity (or an associate or joint venture
 of a member of a group of which the other entity is a member);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Both
 entities are joint ventures of the same third party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) One
 entity is a joint venture of a third entity and the other entity is an associate of the third
 entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The
 entity is a post-employment benefit plan for the benefit of employees of either the Group
 or an entity related to the Group. If the Group is itself such a plan, the sponsoring employers
 are also related to the Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The
 entity is controlled or jointly controlled by a person identified in (A);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) A
 person identified in (A)(i) has significant influence over the entity or is a member of the
 key management personnel of the entity (or of a parent of the entity); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) The
 entity, or any member of a group of which it is a part, provides key management personnel
 services to the Group or to a parent of the Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Close
 members of the family of a person are those family members who may be expected to influence,
 or be influenced by, that person in their dealings with the entity.

3.19 Provisions and contingent liabilities

Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognized for future operating losses.

Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote.

The Group does not recognize contingent liabilities, but discloses their existence in the notes to the financial statements. A contingent liability is a possible obligation that arises from past events which existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Group or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation.

3.20 Share capital

(i) Ordinary
 shares

Proceeds from ordinary shares issued are accounted for in equity. Cost directly attributable to the issuance of new equity shares are deducted from equity.

(ii) Earnings
 Per Share

Basic earnings per share is calculated by dividing net income attributable to shareholders by the weighted average number of ordinary shares outstanding during the period.

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of financing costs associated with dilutive potential ordinary shares and the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares.

3.21 Classification of current and non-current items

An asset is classified as current when:

&nbsp;&nbsp;&nbsp;&nbsp;(a) it
 expects to realize the asset, or intends to sell or consume it, in its normal operating cycle;

&nbsp;&nbsp;&nbsp;&nbsp;(b) it
 holds the asset primarily for the purpose of trading;

&nbsp;&nbsp;&nbsp;&nbsp;(c) it
 expects to realize the asset within twelve months after the reporting period; or

&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 asset is cash or a cash equivalent unless the asset is restricted from being exchanged or
 used to settle a liability for at least twelve months after the reporting period

All other assets as are classified as non-current.

A liability is classified as current when:

&nbsp;&nbsp;&nbsp;&nbsp;(i) it
 expects to settle the liability in its normal operating cycle;

&nbsp;&nbsp;&nbsp;&nbsp;(ii) it
 holds the liability primarily for the purpose of trading;

&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 liability is due to be settled within twelve months after the reporting period; or

&nbsp;&nbsp;&nbsp;&nbsp;(iv) it
 does not have the right at the end of the reporting period to defer settlement of the liability
 for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

3.22 Segment reporting

Identification of segments is based on internal reporting to the chief operating decision maker ("CODM"). The CODM for the Group is identified as the Group's Chief Executive Officer. The Group does not divide its operations into different segments and the CODM operates and manages the Group's entire operations as one segment, which is consistent with the Group's internal organization and reporting system. As the Group's operation and long-lived assets are substantially located in Malaysia, no geographical segments are presented.

4. Accounting judgments and estimates

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

(i) Provision
 for expected credit losses on trade receivables

The Group estimates the loss allowances for trade receivables by assessing the ECLs. This requires the use of estimates and judgements. ECLs are based on the Group's historical credit loss experience, adjusted for factors that are specific to the debtors, and an assessment of both the current and forecast general economic conditions at the end of the reporting period. Where the estimation is different from the original estimate, such difference will affect the carrying amounts of trade receivables and thus the impairment loss in the period in which such estimate is changed. The Group keeps assessing the expected credit loss of trade receivables during their expected lives.

(ii) Interest
 rate used to determine the present value of lease liabilities

The interest rate used to determine the present value of the future lease payments is the Group's incremental borrowing rate based on the information available at the lease commencement date. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located.

(iii) Determining
 the lease term of a lease

The lease liability is initially recognized at the present value of the lease payments payable over the lease term. In determining the lease term at the commencement date for leases that include renewal options exercisable by the Group, the Group evaluates the likelihood of exercising the renewal options taking into account all relevant facts and circumstances that create an economic incentive for the Group to exercise the option, including favorable terms, leasehold improvements undertaken and the importance of that underlying asset to the Group's operation. The lease term is reassessed when there is a significant event or significant change in circumstance that is within the Group's control. Any increase or decrease in the lease term would affect the amount of lease liabilities and right-of-use assets recognized in future years.

(iv) Redeemable
 convertible preference shares ("RCPS")

As disclosed in note 3.12, redeemable preference shares without conversion option and carried at a fixed dividend rate, are recognized as financial liabilities measured initially at fair value and subsequently at amortized cost. Also, redeemable convertible preference shares with a fixed-to-fixed conversion option and carried at a fixed dividend rate, are classified as compound financial instruments with a debt host and equity conversion option. The accounting treatment of RCPS involves significant judgement.

On the issuance dates of the RCPS, the Group determined the carrying amount of the financial liabilities by measuring the fair value of a similar liability that does not have an associated equity component using valuation technique. It involves a number of valuation assumptions relating to market risks and the Company's specific risk premium. The valuation technique used to derive the liability component of the RCPS, as disclosed in note 13, involves significant estimates. Any change in such assumptions and judgement would affect the carrying amounts of the liability component to be recognized and hence the net profit in future years.

(v) Revenue
 recognition for construction service in progress at period end

Revenue from farm related construction service is recognized over contract period by reference to construction progress, which is determined on the stage of completion method. The stage of completion of a construction contract is determined based on the proportion that the contract costs incurred for work performed to-date bear to the total costs for the contract by referring to construction budgets and sub-contractors' quotations.

5. Property, plant and equipment

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Computer<br> and<br> equipment** | **Furniture<br> and<br> fittings** | **Fire <br> system** | **Motor<br> vehicle** | <br>**Renovation** | <br>**Total** |
|  | **MYR** | **MYR** | **MYR** | **MYR** | **MYR** | **MYR** |
| Cost |  |  |  |  |  |  |
| As of January 1, 2024 | 157787 | 9631 | 29310 | 87000 |  | 283728 |
| Additions | 23000 | – | – | – | 74550 | 97550 |
| As of December 31, 2024 and January 1, 2025 | 180787 | 9631 | 29310 | 87000 | 74550 | 381278 |
| Additions | 62608 | – | – | – | – | 62608 |
| As of June 30, 2025 | 243395 | 9631 | 29310 | 87000 | 74550 | 443886 |
| As of June 30, 2025 (USD) | 57599 | 2279 | 6936 | 20588 | 17642 | 105044 |
| <u>Accumulated depreciation</u> |  |  |  |  |  |  |
| As of January 1, 2024 | 46727 | 5068 | 6350 | 8700 |  | 66845 |
| Charge for the year | 51518 | 1912 | 5862 | 17400 | 12425 | 89117 |
| As of December 31, 2024 and January 1, 2025 | 98245 | 6980 | 12212 | 26100 | 12425 | 155962 |
| Charge for the period | 24776 | 768 | 2931 | 8700 | 7455 | 44630 |
| As of June 30, 2025 | 123021 | 7748 | 15143 | 34800 | 19880 | 200592 |
| As of June 30, 2025 (USD) | 29113 | 1833 | 3583 | 8235 | 4705 | 47469 |
| <u>Carrying values</u> |  |  |  |  |  |  |
| As of January 1, 2024 | 111060 | 4563 | 22960 | 78300 | – | 216883 |
| As of December 31, 2024 and January 1, 2025 | 82542 | 2651 | 17098 | 60900 | 62125 | 225316 |
| As of June 30, 2025 | 120374 | 1883 | 14167 | 52200 | 54670 | 243294 |
| As of June 30, 2025 (USD) | 28486 | 446 | 3353 | 12353 | 12937 | 57575 |

---

As of June 30, 2025, a motor vehicle with carrying amount of MYR 52,200 (USD 12,353) (December 31, 2024: MYR 60,900) was pledged to secure a bank borrowing of MYR 46,566 (USD 11,020) (December 31, 2024: MYR 53,029) (note 13).

6. Intangible assets

---

| | | | |
|:---|:---|:---|:---|
|  | **Website** | **Software** | **Total** |
|  | **MYR** | **MYR** | **MYR** |
| Cost |  |  |  |
| As of January 1, 2024 | 10954 | 60000 | 70954 |
| Additions | – | 2293650 | 2293650 |
| As of December 31, 2024 and January 1, 2025 | 10954 | 2353650 | 2364604 |
| Additions | – | – | – |
| As of June 30, 2025 | 10954 | 2353650 | 2364604 |
| As of June 30, 2025 (USD) | 2592 | 556985 | 559577 |
| <u>Accumulated amortization</u> |  |  |  |
| As of January 1, 2024 | 8606 | 16000 | 24606 |
| Charge for the period | 1818 | 241365 | 243183 |
| As of December 31, 2024 and January 1, 2025 | 10424 | 257365 | 267789 |
| Charge for the period | 159 | 235365 | 235524 |
| As of June 30, 2025 | 10583 | 492730 | 503313 |
| As of June 30, 2025 (USD) | 2504 | 116604 | 119108 |
| <u>Carrying values</u> |  |  |  |
| As of January 1, 2024 | 2348 | 44000 | 46348 |
| As of December 31, 2024 and January 1, 2025 | 530 | 2096285 | 2096815 |
| As of June 30, 2025 | 371 | 1860920 | 1861291 |
| As of June 30, 2025 (USD) | 88 | 440381 | 440469 |

---

**7. Leases**

Amounts recognized in the consolidated statements of financial position:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of<br> December 31, <br> 2024** | **As of <br> June 30,<br> 2025** | **As of <br> June 30,<br> 2025** |
|  | **MYR** | **MYR** | **USD** |
| Right-of-use assets |  |  |  |
| - Non-current | 2277208 | 2022484 | 478615 |
| Lease liabilities |  |  |  |
| - Non-current | 2095605 | 1872935 | 443225 |
| - Current | 397705 | 426472 | 100923 |
|  | 2493310 | 2299407 | 544148 |

---

(a) Right-of-use
 assets

The analysis of the net book value of right-of-use assets by class of underlying assets are as follows:

---

| | |
|:---|:---|
|  | **Property** |
|  | **MYR** |
|  | **(note (i))** |
| Cost |  |
| As of January 1, 2024 | 2352677 |
| Additions | 616029 |
| As of December 31, 2024 and January 1, 2025 | 2968706 |
| Additions |  |
| As of June 30, 2025 | 2968706 |
| As of June 30, 2025 (USD) | 702535 |
| <u>Accumulated depreciation</u> |  |
| As of January 1, 2024 | 211384 |
| Charge for the period | 480114 |
| As of December 31, 2024 and January 1, 2025 | 691498 |
| Charge for the period | 254724 |
| As of June 30, 2025 | 946222 |
| As of June 30, 2025 (USD) | 223920 |
| <u>Net book value</u> |  |
| As of January 1, 2024 | 2141293 |
| As of December 31, 2024 and January 1, 2025 | 2277208 |
| As of June 30, 2025 | 2022484 |
| As of June 30, 2025 (USD) | 478615 |

---

Notes:

(i) Property - right-of-use assets

The Group leases three properties (December 31, 2024: three) to place CEA vertical farms and office with two of the leases with lease term of three years and a lease with a lease term of two years (December 31, 2024: two years). For all three leases, the Company has the option to renew the lease for another three years.

The analysis of expense items in relation to leases recognized in profit or loss is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the period ended June 30,** | **For the period ended June 30,** | **For the period ended June 30,** |
|  | **2024** | **2025** | **2025** |
|  | **MYR** | **MYR** | **USD** |
| Depreciation charge on property right-of-use assets | 225390 | 254724 | 58164 |
| Interest on lease liabilities (note 20) | 123305 | 120665 | 27553 |

---

(b) Lease
 liabilities

The following tables show the remaining contractual maturities of the Group's lease liabilities at the end of the reporting periods:

---

| | | |
|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **Present value <br> of the minimum lease<br> payment** | **Total<br> minimum<br> lease<br> payments** |
|  | **MYR** | **MYR** |
| Within 1 year | 397705 | 629136 |
| More than 1 year but within 2 years | 501018 | 689248 |
| More than 2 years but within 5 years | 1594587 | 1805975 |
|  | 2493310 | 3124359 |
| Less: total future interest expenses |  | (631049) |
| Present value of lease liabilities |  | 2493310 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
|  | **Present value<br> of the<br> minimum<br> lease<br> payments** | **Present value <br> of the<br> minimum<br> lease<br> payments** | **Total<br> minimum<br> lease<br> payments** | **Total<br> minimum<br> lease<br> payments** |
|  | **MYR** | **USD** | **MYR** | **USD** |
| Within 1 year | 426473 | 100924 | 637564 | 150878 |
| More than 1 year but within 2 years | 570907 | 135103 | 732504 | 173345 |
| More than 2 years but within 5 years | 1302027 | 308121 | 1439724 | 340706 |
|  | 2299407 | 544148 | 2809792 | 664929 |
| Less: total future interest expenses |  |  | (510385) | (120781) |
| Present value of lease liabilities |  |  | 2299407 | 544148 |

---

Details of total cash outflow for leases and the future cash outflows arising from leases are set out in note 10(b) and note 14(c) respectively.

**8. Trade receivables**

---

| | | | |
|:---|:---|:---|:---|
|  | | **As of** | **As of** |
|  | | **June 30,** | **June 30,** |
|  | **As of**<br>**December 31,**<br>**2024** | **2025** | **2025** |
|  | **MYR** | **MYR** | **USD** |
| Receivables from farm solutions sales |  |  |  |
| - from third parties | &nbsp;&nbsp;&nbsp;&nbsp; 19234500 | 5239775 | 1239978 |
| - from related parties | 1100000 | 50000 | 11832 |
| Receivables from vegetable sales |  |  |  |
| - from third parties | 16693373 | 30722011 | 7270277 |
| - from related parties | 32841 | 32841 | 7772 |
| Total trade receivables, gross | 37060714 | 36044627 | 8529859 |
| Less: loss allowances for expected credit loss | (743860) | (401576) | (95032) |
| Total trade receivables, net | 36316854 | 35643051 | 8434827 |

---

Aging analysis of gross trade receivables, based on the date of revenue recognition, as of December 31, 2024 and June 30, 2025 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of**<br> **December 31,<br> 2024** | **As of**<br> **June 30,<br> 2025** | **As of**<br> **June 30,<br> 2025** |
|  | **MYR** | **MYR** | **USD** |
| Within 3 months | 30278889 | 16275319 | 3851508 |
| More than 3 months but within 6 months | 3010069 | 10407107 | 2462813 |
| More than 6 months but within 1 year | 2470419 | 9277008 | 2195377 |
| More than 1 year | 1301337 | 85193 | 20161 |
| Total trade receivables, gross | 37060714 | 36044627 | 8529859 |

---

All trade receivables classified as current are expected to be recovered within one year based on historical collection and experience. Generally, as of June 30, 2025, credit terms for retail outlet customers are due within 30 to 60 days (December 31, 2024: 30 to 60 days), while credit terms for industrial business customers are due within 30 to 104 days (December 31, 2024: 30 days to 104 days), from the date of revenue recognition. Further details on the Group's credit policy and credit risk arising from trade debtors are set out in note 15(a)(i).

9. Prepayments, deposits and other receivables

---

| | | | |
|:---|:---|:---|:---|
|  | **As of<br> December 31, <br> 2024** | **As of <br> June 30, <br> 2025** | **As of <br> June 30, <br> 2025** |
|  | **MYR** | **MYR** | **USD** |
| **Non–current:** | | | |
| Prepayments for intangible assets |  |  |  |
| – to a related party (note (a)) | 5517306 | 5751779 | 1361142 |
| – to a third party (note (b)) | 1406508 | 1510284 | 357405 |
|  | 6923814 | 7262063 | 1718547 |
| Deposits | 277843 | 277843 | 65751 |
| Subtotal | 7201657 | 7539906 | 1784298 |
| **Current:** |  |  |  |
| Other receivables | 30915 | 49064 | 11612 |
| Subtotal | 30915 | 49064 | 11612 |
| Total prepayments, deposits and other receivables (note (c)) | 7232572 | 7588970 | 1795910 |

---

Notes:

(a) As of June 30, 2025, the Group has prepaid MYR 5,751,779 (USD 1,361,142) (December 31, 2024: MYR 5,517,306) for the development of comprehensive Robotics AI Platform designed to facilitate the creation, deployment, and management of intelligent robotic systems to Braiven Co., Ltd., who is a related party (note 21).

(b) As of June 30, 2025, the Group has prepaid MYR 1,510,284 (USD 357,405) (December 31, 2024: MYR 1,406,508) for certain purchase contracts of IT software such as E-commerce website design, system integration platform and Enterprise Resource Planning (ERP) system to a third party.

(c) Save as prepayments for intangible assets and deposits for property leases and office equipment, all prepayments and other receivables are expected to be recovered/consumed within one year.

**10. Cash**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **As of<br> December 31, <br> 2024** | **As of<br> December 31, <br> 2024** | **As of<br> June 30, <br> 2025** | **As of<br> June 30, <br> 2025** | **As of<br> June 30, <br> 2025** | **As of<br> June 30, <br> 2025** |
|  | **MYR** | **MYR** | **MYR** | **MYR** | **USD** | **USD** |
| Cash at bank | | 390,500 | | 3,625,690 | | 858,009 |

---

(a) Reconciliation
of liabilities arising from financing activities

The table below details changes in the Group's liabilities from financing activities, including both cash and non-cash changes. Liabilities arising from financing activities are liabilities for which cash flows were, or future cash flows will be, classified in the Group's consolidated statements of cash flow as cash flows from financing activities.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Bank borrowing** | **Lease liabilities** | **Redeemable convertible preference shares** | **Amounts due to related parties** | **Total** |
|  | **MYR** | **MYR** | **MYR** | **MYR** | **MYR** |
| As of January 1, 2024 | 67086 | 2217028 | 6483536 | 3404046 | 12171696 |
| **Changes from financing cash flows:** |  |  |  |  |  |
| Payment of capital element of lease liabilities |  | (155262) |  |  | (155262) |
| Payment of interest element of lease liabilities |  | (123305) |  |  | (123305) |
| Repayment to related parties |  |  |  | (4123) | (4123) |
| Payment of principal element of bank borrowing | (7921) |  |  |  | (7921) |
| Payment of interest element of bank borrowing | (2148) |  |  |  | (2148) |
| Repayment of shareholder's loan |  |  |  | (70925) | (70925) |
| Proceeds from the issue of redeemable convertible preference shares | – | – | 3134350 | – | 3134350 |
| **Total changes from financing cash flows** | (10069) | (278567) | 3134350 | (75048) | 2770666 |
| **Other changes:** |  |  |  |  |  |
| Increase in lease liabilities from entering into new leases during the period |  | 616029 |  |  | 616029 |
| Finance costs (note 21) | 2148 | 123305 |  | 13630 | 139083 |
| Conversion of redeemable convertible preference shares |  |  | 918274 |  | 918274 |
| Equity component of redeemable convertible preference shares |  |  | (267397) |  | (267397) |
| Change arising from operating activities | – | – | – | (562536) | (562536) |
| **Total other changes** | 2148 | 739334 | 650877) | (548906) | 843453 |
| As of June 30, 2024 | 59165 | 2677795 | 10268763 | 2780092 | 15785815 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Bank borrowing** | **Lease liabilities** | **Redeemable convertible preference shares** | **Amounts due to related parties** | **Total** |
|  | **MYR** | **MYR** | **MYR5** | **MYR** | **MYR** |
| As of January 1, 2025 | 53029 | 2493310 | 9590370 | 4001850 | 16138559 |
| **Changes from financing cash flows:** |  |  |  |  |  |
| Payment of capital element of lease liabilities |  | (193903) |  |  | (193903) |
| Payment of interest element of lease liabilities |  | (120665) |  |  | (120665) |
| Advance received from a related party |  |  |  | 3839926 | 3839926 |
| Payment of principal element of bank borrowing | (5370) |  |  |  | (5370) |
| Payment of interest element of bank borrowing | (1405) |  |  |  | (1405) |
| Repayment of shareholder's loan | – | – | – | (50000) | (50000) |
| **Total changes from financing cash flows** | (6775) | (314568) | – | 3789926 | 3468583 |
| **Other changes:** |  |  |  |  |  |
| Finance costs (note 21) | 1667 | 120665 |  | 13630 | 135962 |
| Reclass to other payables | (1355) |  |  |  | (1355) |
| Effect of foreign exchange rate |  |  | (542811) |  | (542811) |
| Change arising from operating activities | – | – | – | 1029344 | 1029344 |
| **Total other changes** | 312 | 120665 | (542811) | 1042974 | 621140 |
| As of June 30, 2025 | 45566 | 2299407 | 9047559 | 8834750 | 22863896 |
| As of June 30, 2025 (USD) | 11020 | 544148 | 2141079 | 2090720 | 5410678 |

---

(b) Total cash outflow for lease

---

| | | | |
|:---|:---|:---|:---|
|  | **As of<br> June 30, <br> 2024** | **As of <br> June 30,<br> 2025** | **As of <br> June 30,<br> 2025** |
|  | **MYR** | **MYR** | **USD** |
| Within financing cash flows | (278567) | (314568) | (71829) |

---

**11. Capital and reserves**

(a) Share
 capital and additional paid-in capital

The Company was incorporated under the laws of Cayman Islands on August 8, 2023. The authorized share capital is USD 10,000, divided into 100,000,000 ordinary shares with a par value of USD 0.0001. As of December 31, 2023, 20,000,000 ordinary shares were issued with an aggregated par value of USD 2,000 (equivalent to MYR 8,351) and was recognized as share capital of the Company. The excess of capital injections made by the equity shareholders over the par value was credited to the additional paid-in capital.

During the year ended December 31, 2023, Agroz Group further issued 820,000 ordinary shares, amounted to MYR 820,000. As discussed in note 2.1, since the Company did not exist prior to August 8, 2023, the registered capital of the companies now comprising the Group are included in additional paid-in capital in the consolidated statements of financial position as of December 31, 2023 and 2024.

On March 15, 2024, the Company issued 1,030,494 ordinary shares amounted to USD 103 (equivalent to MYR 461) to a Director of the Company and such shares have been further cancelled on November 18, 2024. On December 5, 2024, 419,929 units of redeemable convertible preference shareholders have opted to convert into ordinary shares. The Company further issued 3,556 ordinary shares amounted to USD 8,827 (MYR 39,450) on December 23, 2024 to an existing shareholder.

(b) Other
 reserves

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Foreign
 currency translation reserve

The foreign currency translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign operations. The reserve is dealt with in accordance with the accounting policies set out in note 3.2 to the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Equity
 component of redeemable convertible preference shares

The equity component of redeemable convertible preference shares represents the value of the option related to the redeemable convertible preference shares issued by the Company, which is with a conversion ratio of one RCPSs to one common share of the Company (note 12).

12. Redeemable convertible preference shares

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,<br> 2024** | **As of <br> June 30,<br> 2025** | **As of <br> June 30,<br> 2025** |
|  | **MYR** | **MYR** | **USD** |
| - Non-current | 6213040 | 3746569 | 886615 |
| - Current | 3377330 | 5300990 | 1254464 |
|  | 9590370 | 9047559 | 2141079 |

---

The Group's preference shares activities for the period ended December 31, 2024 and June 30, 2025 are summarized below:

---

| | | |
|:---|:---|:---|
|  | **Agroz Inc. RCPS** | **Agroz Inc. RCPS** |
|  | **(note (a))** | **(note (a))** |
|  | **No. of<br> shares** | **Amount** |
| As of January 1, 2024 | 604870 | 6483536 |
| Issuance | 714979 | 7989890 |
| Conversion | (419929) | (4389989) |
| Equity component |  | (321679) |
| Foreign exchange loss | – | (171388) |
| As of December 31, 2024 and January 1, 2025 | 899920 | 9590370 |
| Issuance |  |  |
| Conversion |  |  |
| Equity component |  |  |
| Foreign exchange loss | – | (542811) |
| As of December 31, 2025 | 899920 | 9047559 |
| As of December 31, 2025 (USD) | 899920 | 2141079 |

---

**(a) Agroz Inc. RCPS ("AI RCPS")**

Between August 12, 2023 and December 31, 2023, the Company sold 268,504 shares AI RCPS at USD 2.50 a share for USD 671,260 or MYR 3,109,483.

Taking into consideration the conversion described above, as of December 31, 2023, the Company had issued a total of 604,870 AI RCPS with a fair value of MYR 6,942,953.

To expand the capital structure of Agroz Inc., the management had successfully issued 714,979 units of AI RCPS at USD 2.50 per share for MYR 7,989,890 (USD 1,787,647) during the year ended December 31, 2024. Certain shareholders have opted to convert 419,929 units of AI RCPS to 419,929 units of ordinary shares which amounted to MYR 4,389,989 (USD 982,210).

On the issuance dates, the Group first determined the carrying amount of the liability component by measuring the fair value of a similar liability that does not have an associated equity component. The carrying amount of the equity instrument represented by the option to convert the instrument into ordinary shares is then determined by deducting the fair value of the financial liability from the fair value of the compound financial instrument as a whole.

The key valuation assumptions used to determine the fair value of a similar liability on initial recognition are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 22, <br> 2023**<br>**(date of issuance)** | **January 10,<br> 2024**<br>**(date of issuance)** | **March 20,<br> 2024**<br>**(date of issuance)** | **June 6,<br> 2024**<br>**(date of issuance)** | **September 18,<br> 2024**<br>**(date of issuance)** | **October 23,<br> 2024**<br>**(date of issuance)** |
| Credit spread | 7.60% | 7.84% | 7.86% | 7.22% | 6.58% | 5.63% |
| Risk free rate | 4.32% | 4.38% | 4.64% | 4.74% | 3.62% | 4.07% |
| Country risk premium | 1.31% | 1.31% | 1.31% | 1.31% | 1.19% | 1.19% |
| Liquidity premium | 0.68% | 0.68% | 0.68% | 0.68% | 0.68% | 0.68% |
| Credit rating | B to below CCC | B to below CCC | B to below CCC | B to below CCC | B to below CCC | B to below CCC |

---

As of June 30, 2025, the net book value of the liability and equity components of AI RCPS amounted to MYR 9,047,559 (USD 2,141,079) (December 31, 2024: MYR 9,590,370) and MYR 478,379 (USD 113,207) (December 31, 2024: MYR 478,379), respectively.

All transactions involving the issuance of AI RCPS were with identical agreement terms, as presented below:

**Subscription Price**

Each AI RCPS value is USD 2.50.

**Tenure and Maturity Date**

 ****

The tenure is 2 years from the subscription date. The maturity date shall fall on the second anniversary of the subscription date.

**Dividend**

 ****

The AI RCPS shall carry preferential cumulative dividend of 10.0% per annum on the period during which the AI RCPS is outstanding by the subscriber.

**Redemption**

 ****

All AI RCPS outstanding on the maturity date or did not convert to common share shall be fully redeemed at the subscription price.

**Conversion Option**

 ****

At the option and right of the subscriber, the subscriber may elect to convert the AI RCPS to the common share of the Company on or before the maturity date of the AI RCPS. The conversion ratio shall be one AI RCPS to convert one common share of the Company.

13. Bank borrowing

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **As of<br> December 31,<br> 2024** | **As of<br> December 31,<br> 2024** | **As of <br> June 30,<br> 2025** | **As of <br> June 30,<br> 2025** | **As of <br> June 30,<br> 2025** | **As of <br> June 30,<br> 2025** |
|  | **MYR** | **MYR** | **MYR** | **MYR** | **USD** | **USD** |
| - Non-current |  | 39774 |  | 32828 |  | 7769 |
| - Current | | 13,255 | | 13,738 | | 3,251 |
|  | | 53,029 | | 46,566 | | 11,020 |

---

On August 29, 2023, the Group entered into a borrowing agreement with a financial institution in Malaysia to borrow MYR 69,000 (USD 15,032), which bears a fixed rate of 3.55% per annum and with maturity date on August 29, 2028. As of June 30, 2025, the secured bank borrowing amounted to MYR 46,566 (USD 11,020) (December 31, 2024: MYR 53,029) was secured by charge over a motor vehicle of the Group (note 5).

For the period ended June 30, 2025, interest related to the bank borrowing amounted to MYR 1,667 (USD 381) (December 31, 2024: MYR 4,056).

14. Financial risk management and fair values of financial instruments

Exposure to credit, liquidity, currency and interest rate risks arises in the normal course of the Group's business. The Group's exposure to these risks and the financial risk management policies and practices used by the Group to manage these risks are described below.

(a) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. The Group's credit risk is primarily attributable to trade receivables, prepayments, other receivables and amounts due from a related party. The Group's exposure to credit risk arising from cash is limited due to cash deposit with financial institutions in Malaysia is subject to certain protection under the requirement of the deposit insurance system. These financial institutions are banks with high-credit-quality, for which the Group considers to have low credit risk.

(i) Trade receivables

Individual credit evaluations are performed on all customers requiring credit over a certain amount. These evaluations focus on the customer's past history of making payments when due and current ability to pay and take into account information specific to the customer as well as pertaining to the economic environment in which the customer operates. Trade receivables are due within 30 to 180 days from the date of billing. Normally, the Group does not obtain collateral from customers.

The Group's trade receivables mainly derive from farm solution sales and fresh vegetable sales. When assessing credit risk exposure, the Group classifies its customers into three categories upon their credit characteristics, including whether they are related parties, and, for third party customers, whether they are retail outlet customers or industrial business customers.

The following table provides a breakdown of trade receivables before ECL by customer groups:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of <br> December 31,<br> 2024** | **As of <br> June 30, <br> 2025** | **As of <br> June 30, <br> 2025** |
|  | **MYR** | **MYR** | **USD** |
| Third-party retail outlet customers | 32716 | 64121 | 15174 |
| Third-party industrial business customers | 35895157 | 35897665 | 8495081 |
| Related party customers | 1132841 | 82841 | 19604 |
| Total trade receivables, gross | 37060714 | 36044627 | 8529859 |

---

*(1) Third-party retail outlet customers*

For trade receivables related to third-party retail outlet customers, the Group measures loss allowances at an amount equal to lifetime ECLs, which is calculated using a provision matrix. Expected loss rates are based on actual loss experience over the past 2 years. These rates are adjusted to reflect differences between economic conditions during the period over which the historical data has been collected, current conditions and the Group's view of economic conditions over the expected lives of the receivables.

Based on the historical collection and experience, the Group is able to collect all its outstanding receivables for June 30, 2025 within one year from third-party retail outlet customers.

The following tables provide information about the Group's exposure to credit risk and ECL for trade receivables related to third-party retail outlet customers as of December 31, 2024 and June 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **Gross<br> carrying<br> amount** | **Loss<br> allowance** | **Expected<br> loss rate** | **Net <br> balance** |
|  | **MYR** | **MYR** | | **MYR** |
| 0 - 90 days | 28372 | (2433) | 8.6% | 25939 |
| 91 – 180 days | 747 | (453) | 60.6% | 294 |
| 181 - 270 days | 1114 | (918) | 82.4% | 196 |
| 271 - 365 days | 1146 | (1146) | 100.0% |  |
| Over 1 year | 1337 | (1337) | 100.0% | – |
|  | 32716 | (6287) |  | 26429 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
|  | **Gross carrying amount** | **Loss allowance** | **Expected<br> loss rate** | **Net balance** | **Net balance** |
|  | **MYR** | **MYR** | | **MYR** | **USD** |
| 0 - 90 days | 55858 | (2987) | 5.3% | 52871 | 12512 |
| 91 – 180 days | 2630 | (2198) | 83.6% | 432 | 102 |
| 181 - 270 days | 1289 | (1077) | 83.6% | 212 | 50 |
| 271 - 365 days | 747 | (747) | 100.0% |  |  |
| Over 1 year | 3597 | (3597) | 100.0% | – | – |
|  | 64121 | (10606) |  | 53515 | 12664 |

---

*(2) Third-party industrial business customers*

 

For trade receivables related to third-party industrial business customers, the Group measures loss allowances at an amount equal to lifetime ECLs, which is calculated using a behavioral scoring system taking into consideration current and historical credit worthiness, aging analysis, operating history in the relevant industry, reputation in the market and paid-in capital scale. Customers with positive behavior in all scoring areas, would be assigned a low-risk grading. Customers with positive behavior in most of the scoring areas, would be assigned a fair-risk grading. Customers with lesser positive behavior in scoring areas, would be assigned a substantial grading. Management conducts the review periodically or updates assessments promptly upon significant changes in customers' credit risk. Based on the historical collection and experience, the Group is able to collect all its outstanding receivables for June 30, 2025 within one year from third party industrial business customers.

The following tables provide information about the Group's exposure to credit risk and ECL for trade receivables related to third-party industrial business customers as of December 31, 2024 and June 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **Gross <br> carrying <br> amount** | **Loss <br> allowance** | **Expected <br> loss rate** | **Net<br> balance** |
|  | **MYR** | **MYR** | | **MYR** |
| Grade - low risk | 11732969 | (58485) | 0.5% | 11674484 |
| Grade - fair risk | 24162188 | (266260) | 1.1% | 23895928 |
|  | 35895157 | (324745) |  | 35570412 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
|  | **Gross <br> carrying <br> amount** | **Loss<br> allowance** | **Expected<br> loss rate** | **Net balance** | **Net balance** |
|  | **MYR** | **MYR** | | **MYR** | **USD** |
| Grade - low risk | **18530074** | **(92326)** | 0.5% | **18437748** | **4363241** |
| Grade - fair risk | **17367591** | **(215803)** | 1.2% | **17151788** | **4058922** |
|  | **35897665** | **(308129)** |  | **35589536** | **8422163** |

---

*(3) Related party customers*

For trade receivables from related parties, the Group measures loss allowances at an amount equal to lifetime ECLs, which is calculated using a behavioral scoring system similar to the one applied to third-party industrial business customers.

Based on the historical collection and experience, the Group is able to collect all its outstanding receivables for June 30, 2025 within one year from related party customers.

The following tables provide information about the Group's exposure to credit risk and ECL for trade receivables from related parties as of December 31, 2024 and June 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **Gross<br> carrying<br> amount** | **Loss<br> allowance** | **Expected<br> loss rate** | **Net <br> balance** |
|  | **MYR** | **MYR** | | **MYR** |
| Grade - low risk | 100000 | (500) | 0.5% | 99500 |
| Grade - fair risk | 32841 | (328) | 1.0% | 32513 |
| Grade - substantial | 1000000 | (412000) | 41.2% | 588000 |
|  | 1132841 | (412828) |  | 720013 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
|  | **Gross<br> carrying<br> amount** | **Loss<br> allowance** | **Expected<br> loss rate** | **Net balance** | **Net balance** |
|  | **MYR** | **MYR** | | **MYR** | **USD** |
| Grade - low risk | 32841 | (32841) | 100.0% |  |  |
| Grade - fair risk | 50000 | (50000) | 100.0% |  |  |
|  | 82841 | (82841) |  |  |  |

---

*(4) Movement of ECL*

---

| | |
|:---|:---|
|  | **MYR** |
| As of January 1, 2024 | 82597 |
| Provision for expected credit loss on trade receivables | 4085 |
| As of June 30, 2024 | 86682 |
| Provision for expected credit loss on trade receivables | 657178 |
| As of December 31, 2024 and January 1, 2025 | 743860 |
| Reversal of expected credit loss on trade receivables | (342284) |
| As of June 30, 2025 | 401576 |
| As of June 30, 2025 (USD) | 95032 |

---

In addition, the Group's exposure to credit risk is also influenced by the individual characteristics of each customer and therefore significant concentrations of credit risk arise when the Group has significant exposure to individual customers. At June 30, 2025, 96.20% (December 31, 2024: 95.92%) of the total trade receivables were due from the Group's five largest debtors, respectively.

(ii) Prepayments, deposits and other receivables and amounts due from a related party

Prepayments, deposits and other receivables and amounts due from a related party are reviewed regularly, for which the Group considers to have low credit risk.

(b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group does not account for any fixed-rate financial instruments at fair value through profit or loss at the end of each reporting periods. Therefore, interest-bearing financial instruments at fixed rates do not expose the Group to fair value interest rate risk. The Group's interest rate risk arises primarily from cash at bank at variable rates. If interest rates on cash at bank had been 50 basis points higher/lower and all other variables were held constant, the Group's profit for the year would increase/decrease by approximately MYR 18,128 (USD 4,290) (December 31, 2024: MYR 1,953).

The Group's risk management objective for interest rate risk is to reduce the exposure to variability of cash flows arising from changes in interest rates. Interest rates on the Groups lease contracts and bank borrowing are fixed and thus not sensitive to fluctuation in market interest rates.

(c) Liquidity risk

The Group manages its risk to a shortage of funds by monitoring the projected cash flows from operations. Risk management includes maintaining sufficient cash balances. The Group generates cash flow through offering farm solutions and selling fresh produce from the CEA vertical farms. Changes in market acceptance of CEA vertical farms could have a material adverse impact on the Group's liquidity position. Due to the dynamic of the underlying business, the cash required to maintain the daily operation of the Group mainly via funding from shareholders.

The following tables show the remaining contractual maturities at the end of the years presented of the Group's financial liabilities, which are based on contractual undiscounted cash flows (including interest payments computed using contracted rates) and the earliest date the Group can be required to pay.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Within <br> 1 year or<br> on demand** | **More<br> than<br> 1 year but <br> less than<br> 2 years** | **More<br> than<br> 2 years<br> but<br> less than<br> 5 years** | **More than<br> 5 years** | **Total** | **Carrying<br> amount <br> as of December 31, <br> 2024** |
|  | **MYR** | **MYR** | **MYR** | **MYR** | **MYR** | **MYR** |
| Trade payables | 14089238 |  |  |  | 14089238 | 14089238 |
| Other payables | 3105476 |  |  |  | 3105476 | 3105476 |
| Amounts due to related parties | 4010937 |  |  |  | 4010937 | 4001850 |
| Bank borrowing | 16347 | 16260 | 27048 |  | 59655 | 53029 |
| Redeemable convertible preference shares | 4622304 | 7083959 |  |  | 11706263 | 9912049 |
| Lease liabilities | 629136 | 689248 | 1805975 |  | 3124359 | 2493310 |
|  | 26473438 | 7789467 | 1833023 |  | 36095928 | 33654952 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Within <br> 1 year or<br> on demand** | **More than<br> 1 year but<br> less than<br> 2 years** | **More than <br> 2 years<br> but <br> less than<br> 5 years** | **More than<br> 5 years** | **Total** | **Carrying<br> amount<br> as of <br> June 30, <br> 2025** | **Carrying<br> amount<br> as of <br> June 30, <br> 2025** |
|  | **MYR** | **MYR** | **MYR** | **MYR** | **MYR** | **MYR** | **USD** |
| Trade payables | 9730696 |  |  |  | 9730696 | 9730696 | 2302741 |
| Other payables | 2119398 |  |  |  | 2119398 | 2119398 | 501550 |
| Amounts due to related parties | 8762010 |  |  |  | 8762010 | 8734750 | 2067054 |
| Bank borrowing | 16347 | 16260 | 18918 |  | 51525 | 46566 | 11020 |
| Redeemable convertible preference shares | 4360684 | 6683010 |  |  | 11043694 | 9047559 | 2141079 |
| Lease liabilities | 637564 | 732504 | 1439724 |  | 2809792 | 2299407 | 544148 |
|  | 25626699 | 7431774 | 1458642 |  | 35517115 | 31978376 | 7567592 |

---

(d) Currency Risk

The principal activities of the Group were carried out by Agroz Group with most of the transactions originally denominated and settled in Malaysian Ringgit. AG RCPS issued by Agroz Group were denominated in Malaysian Ringgit, and AI RCPS issued by the Company were denominated in United States dollars. Given financial instruments of the Group were all denominated in functional currency, the Group's currency risk exposure was insignificant.

(e) Fair value measurement

The fair value of the Group's financial instruments was measured at the end of the reporting period on a recurring basis. IFRS 13 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

● Level 1 valuations: Fair value measured using observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

● Level 2 valuations: Fair value measured using inputs that are directly or indirectly observable in the marketplace.

● Level 3 valuations: Fair value measured using significant unobservable inputs.

Financial assets and liabilities of the Group primarily consisted of cash, trade receivables, prepayments and other receivables, amounts due from a related party, trade payables, other payables, bank borrowings, amounts due to related parties and redeemable convertible preference shares. As of December 31, 2024 and June 30, 2025, the carrying amounts of financial instruments approximated to their fair values due to the short-term maturities of these instruments or repayable on demand, or that they are interest-bearing at market rates or approximants.

15. Trade and other payables

---

| | | | |
|:---|:---|:---|:---|
|  | **As of<br> December 31,<br> 2024** | **As of <br> June 30,<br> 2025** | **As of <br> June 30,<br> 2025** |
|  | **MYR** | **MYR** | **USD** |
| Trade payables (note (a)) | 14089238 | 9730696 | 2302741 |
| Other payable and accruals | 1832975 | 805327 | 190578 |
| Wages payable | 200235 | 322740 | 76376 |
| Interest payable of RCPS (note (b)) | 1072266 | 991331 | 234596 |
| Total trade and other payables (note (c)) | 17194714 | 11850094 | 2804291 |

---

Notes:

(a) An aging analysis of the trade payables as of December 31, 2024 and June 30, 2025 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of<br> December 31, <br> 2024** | **As of <br> June 30, <br> 2025** | **As of <br> June 30, <br> 2025** |
|  | **MYR** | **MYR** | **USD** |
| Within 3 months | 13892154 | 3488221 | 825477 |
| More than 3 months but within 6 months | 1226 | 3775862 | 893547 |
| More than 6 months but within 1 year | 139580 | 2390336 | 565666 |
| More than 1 year | 56278 | 76277 | 18051 |
| Total trade payables | 14089238 | 9730696 | 2302741 |

---

(b) The interest payable of RCPS is calculated based on the weighted average principal of RCPS and the related effective interest rate. AI RCPS bear an effective interest rate of 14.0% (note 12).

(c) Except for advances received for redeemable convertible preference shares, all the trade and other payables classified as current are expected to be settled within one year or are repayable on demand.

16. Income taxes

(a) Income taxes recognized in consolidated statements of profit or loss:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six<br> months<br> period ended <br> June 30,<br> 2024** | **For the six months<br> period ended <br> June 30, <br> 2025** | **For the six months<br> period ended <br> June 30, <br> 2025** |
|  | **MYR** | **MYR** | **USD** |
| *Current tax* |  |  |  |
| Provision for the period |  | 970724 | 221657 |
| Under provision in prior years | 225946 | 481413 | 109927 |
| *Deferred tax* | – | 126153 | 28806 |
|  | 225946 | 1578290 | 360390 |

---

Notes:

*1)* *Cayman Islands*

Under the current tax laws of the Cayman Islands, the Group is not subject to any income tax in the Cayman Islands.

*2)* *Malaysia*

Under the Income Tax Act of Malaysia, enterprises incorporated in Malaysia are usually subject to a unified 24% enterprise income tax rate while preferential tax rates, tax holidays, and tax exemptions may be granted on a case-by-case basis.

For the six months period ended June 30, 2025 and 2024, the tax rate is 24% for companies incorporated in Malaysia with paid-in capital of MYR 2.5 million or more.

(b) Reconciliation between tax expenses and accounting profit at applicable tax rates:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six<br> months<br> period ended <br> June 30,<br> 2024** | **For the six months<br> period ended <br> June 30,<br> 2025** | **For the six months<br> period ended <br> June 30,<br> 2025** |
|  | **MYR** | **MYR** | **USD** |
| Profit before income taxes | (2349175) | 3822895 | 872927 |
| Notional tax on profit before taxation, calculated at the rates applicable to the respective tax jurisdictions | (563802) | 917495 | 209502 |
| Effect of tax rates in foreign jurisdictions | 421061 | 159255 | 36365 |
| Non-deductible expenses | 3900 | 20127 | 4596 |
| Tax effect on capital allowance | 15515 | – | – |
| Unrecognized cost | 126326 | – | – |
| Under provision of tax in prior years | 225946 | 481413 | 109927 |
| Tax expenses for the period | 225946 | 1578290 | 360390 |

---

(c) Deferred tax recognized in the consolidated statement of financial position

The significant components of deferred taxes recognized in the consolidated statement of financial position and the movements during the period presented are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of<br> December 31,<br> 2024** | **As of<br> June 30, <br> 2025** | **As of<br> June 30, <br> 2025** |
|  | **MYR** | **MYR** | **USD** |
| **Deferred tax assets:** | | | |
| - Allowance for credit losses | 178526 | 96378 | 22808 |
| - Lease liability | 598394 | 551858 | 130596 |
| **Total deferred tax assets** | 776920 | 648236 | 153404 |
| Net off against deferred tax liabilities | (746897) | (648236) | (153404) |
| **Net deferred tax assets** | 30023 | – | – |
| **Deferred tax liabilities:** |  |  |  |
| - Right-of-use asset | (546530) | (485396) | (114868) |
| - Depreciation and amortization | (200367) | (258970) | (61285) |
| **Total deferred tax liabilities** | (746897) | (744366) | (176153) |
| Net off against deferred tax assets | 746897 | 648236 | 153404 |
| **Net deferred tax liabilities** | – | (96130) | (22749) |

---

(d) Uncertain tax position

The following table illustrates the movement of tax payable during the six months ended June 30, 2024.

---

| | |
|:---|:---|
|  | **As of**<br>**June 30,<br> 2024** |
|  | **MYR** |
| Tax payable as of December 31, 2023 | 1448723 |
| **Under provision of tax** | 225946 |
| - Penalties- Late payment | 95933 |
| - Penalties- Underestimation | 143522 |
| - Tax payable true up | (13509) |
| Tax payable as of June 30, 2024 | 1674669 |

---

The Group evaluates whether it is probable that tax authority will accept the tax treatment for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions.

As of June 30, 2024, the Group faced total penalties amounting to MYR 239,455 due to discrepancies identified in the tax filings. This total includes a penalty of MYR 143,522 caused by the understatement of estimated tax payable and MYR 95,933 accordingly for late payments as the Group did not meet the required payment deadlines. The understatement of estimated tax payable penalty is calculated as 10% of the actual tax payable, of which was originally estimated at MYR 1,435,215. Consequently, the Company's total tax payable has further increased to MYR 1,674,669 due to governmental assessments and the failure to settle the outstanding tax payable within the required timeframe.

According to the Income Tax Act (ITA) 1967, all income tax payments must be made by the specified due date to avoid penalties. If payments are not settled by this deadline, the Act stipulates that penalties will be imposed on any outstanding amounts. For the year ended December 31, 2023, the Group has not fulfilled its obligation to pay the income taxes for the Year of Assessment 2022 and 2023.

17. Revenue and segment information

*Segment information*

 

The Group's primary business activities include offering farm solutions, as well as selling fresh produce cultivated from the CEA vertical farms. For management purposes, the Group operates in one business unit based on its products and has one reportable segment which is offering of farm solutions and selling fresh produce.

Since most of the Group's revenue was generated from offering of farm solutions as well as selling fresh produce from the CEA vertical farms in Malaysia, no geographical segment information is presented.

*Revenue*

 

The Group's revenue is primarily derived from offering CEA vertical farm solutions and selling fresh produce from CEA vertical farms operated.

(a) Disaggregation of revenue

The Group disaggregates its revenue from contracts by service types, as the Group believes it best depicts how the nature, amount, timing, and uncertainty of the revenue and cash flows are affected by economic factors. The summary of the Group's disaggregation of revenue by service types for the period ended June 30, 2024 and 2025 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the<br> six months<br> ended <br> June 30,<br> 2024** | **For the <br> six months <br> ended <br> June 30, <br> 2025** | **For the <br> six months <br> ended <br> June 30, <br> 2025** |
|  | **MYR** | **MYR** | **USD** |
| Offering farm solutions |  |  |  |
| - from third parties | 2000000 |  |  |
| - from related parties | 1050081 | - | - |
|  | 3050081 |  |  |
| Sales of fresh produce |  |  |  |
| - from third parties | 3730636 | 28632549 | 6538007 |
| - from related parties | 32842 | - | - |
|  | 3763478 | 28632549 | 6538007 |
| Total revenue | 6813559 | 28632549 | 6538007 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **For the<br> six months<br> ended<br> June 30, <br> 2024** | **For the<br> six months <br> ended<br> June 30, <br> 2025** | **For the<br> six months <br> ended<br> June 30, <br> 2025** |
|  | **MYR** | **MYR** | **USD** |
| Timing of revenue recognition |  |  |  |
| - Point in time | 3763559 | 28632549 | 6538007 |
| - Over time | 3050000 | - | - |
| Revenue from contracts with customers | 6813559 | 28632549 | 6538007 |

---

(b) Revenue expected to be recognized in the future arising from contracts with customers in existence at the reporting dates

---

| | | | |
|:---|:---|:---|:---|
|  | **For the<br> period ended <br> June 30,<br> 2024** | **For the<br> period ended <br> June 30,<br> 2025** | **For the<br> period ended <br> June 30,<br> 2025** |
|  | **MYR** | **MYR** | **USD** |
| Transaction price allocated to partially unsatisfied performance obligations as of period end and expected to be recognized as revenue in: |  |  |  |
| - 2024H2 | 350000 |  |  |

---

(c) Revenue from major customers

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**For the<br> period ended <br> June 30,<br> 2024**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**For the<br> period ended <br> June 30,<br> 2024**  | **For the<br> period ended<br> June 30,**<br>**2025** |
| **Offering of farm solutions** | | | |
| Customer A\*\* | 15.4 | 15.4% | –<br> \* |
| Customer B |  | 29.4% | –<br> \* |
| **Sales of fresh produce** |  |  |  |
| Customer C |  | 53.0% | –<br> \* |
| Customer D |  | –<br> \* | 31.2% |
| Customer E |  | –<br> \* | 32.9% |
| Customer F |  | –<br> \* | 27.7% |

---

\* The corresponding revenue did not contribute over 10.0% of the total revenue of the Group in the particular period.

\*\* Customer A is a related party of the Group.

**18. Other income**

---

| | | | |
|:---|:---|:---|:---|
|  | **For the <br> period ended <br> June 30, <br> 2024** | **For the<br> period ended<br> June 30, <br> 2025** | **For the<br> period ended<br> June 30, <br> 2025** |
|  | **MYR** | **MYR** | **USD** |
| Government grants (note (a)) | 109 |  |  |
| Interest income | (131364) | 4 | 1 |
| Foreign exchange loss | 132348 | 141614 | 32336 |
| Reversal of provision |  | 870739 | 198826 |
| Other income | - | 90397 | 20642 |
| Total other income | 1093 | 1102754 | 251805 |

---

Note:

(a) The Group obtained bioagrotech and biopharmaceutical employability grants of MYR 28,000 during the year ended December 31, 2022. Government grant represented conditional cash subsidies received from the local government for the purpose of enhancing the employability of graduates by employing them for internship. There are no unfulfilled conditions or contingencies relating to such government grant income recognized. The government grant is not guaranteed to be available on an ongoing basis.

19. Expenses by nature

---

| | | | |
|:---|:---|:---|:---|
|  | **For the <br> period ended<br> June 30,<br> 2024** | **For the <br> period ended <br> June 30, <br> 2025** | **For the <br> period ended <br> June 30, <br> 2025** |
|  | **MYR** | **MYR** | **USD** |
| Cost of revenue |  |  |  |
| - Construction cost | 1925000 |  |  |
| - Consulting fees (iii) | 66076 |  |  |
| - Vegetable costs | 3367657 | 21705653 | 4956308 |
| - Planting related costs |  | 55589 | 126936 |
| - Wages and benefits (i) | 40062 | 137579 | 31415 |
|  | 5398795 | 21898821 | 5000416 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **For the<br> period ended<br> June 30,<br> 2024** | **For the <br> period ended <br> June 30, <br> 2025** | **For the <br> period ended <br> June 30, <br> 2025** |
|  | **MYR** | **MYR** | **USD** |
| Selling and promotion expenses |  |  |  |
| - Entertainment expenses | 4054 |  |  |
| - Marketing fees | 91211 | 20271 | 4629 |
|  | 95265 | 20271 | 4629 |
| General and administrative expenses |  |  |  |
| - Director fee &nbsp;&nbsp;&nbsp;(i) | 880000 | 770000 | 175823 |
| - Professional fees | 939645 | 1161646 | 265252 |
| - Wages and benefits &nbsp;&nbsp;&nbsp;(i) | 573420 | 754973 | 172392 |
| - Depreciation and amortization &nbsp;&nbsp;&nbsp;(ii) | 277536 | 534878 | 122135 |
| - Commission paid | 101417 | 6000 | 1370 |
| - Office expenses | 122922 | 306648 | 70021 |
| - Others | 6488 | 9242 | 2110 |
|  | 2901428 | 3543387 | 809103 |
| Total of cost of revenue, selling and promotion, and general and administrative expenses | 8395488 | 25462479 | 5814148 |

---

(i) Staff costs

---

| | | | |
|:---|:---|:---|:---|
|  | **For the <br> period ended<br> June 30, <br> 2024** | **For the<br> period ended <br> June 30, <br> 2025** | **For the<br> period ended <br> June 30, <br> 2025** |
|  | **MYR** | **MYR** | **USD** |
| Director fee | 880000 | 770000 | 175823 |
| Salaries and wages | 549675 | 826334 | 188687 |
| Contributions to social security contribution plan | 52431 | 65218 | 14892 |
| Welfare expenses | 11376 | 1000 | 228 |
|  | 1493482 | 1662552 | 379630 |

---

(ii) Depreciation
and amortization

---

| | | | |
|:---|:---|:---|:---|
|  | **For the <br> period ended<br> June 30, <br> 2024** | **For the<br> period ended <br> June 30, <br> 2025** | **For the<br> period ended <br> June 30, <br> 2025** |
|  | **MYR** | **MYR** | **USD** |
| Property, plant and equipment | 44487 | 44630 | 10191 |
| Intangible assets | 7659 | 235524 | 53780 |
| Right-of-use assets | 225390 | 254724 | 58164 |
|  | 277536 | 534878 | 122135 |

---

(iii) The
consulting fees mainly comprise design fees of CEA vertical farms, and consultation service fees on operating and managing the CEA vertical
farms.

**20. Finance costs**

---

| | | | |
|:---|:---|:---|:---|
|  | **For the<br> period ended <br> June 30,<br> 2024** | **For the<br> period ended<br> June 30,<br> 2025** | **For the<br> period ended<br> June 30,<br> 2025** |
|  | **MYR** | **MYR** | **USD** |
| Bank charges | 2207 | 4011 | 915 |
| Interest on lease liabilities | 123305 | 120665 | 27553 |
| Interest on redeemable convertible preference shares | 622964 | 652240 | 148934 |
| Interest on a related party loan (note(a)) | 13630 | 13630 | 3112 |
| Interest on bank borrowing (note 13) | 2148 | 1667 | 381 |
| Total finance costs | 764254 | 792213 | 180895 |

---

Note:

(a) On May 1, 2023, Agroz Group entered into a borrowing agreement with HWG Cash Berhad ("HWG Cash"), a related party, who is also a minority shareholder of the Group (the "Borrowing Agreement"). Pursuant to the Borrowing Agreement, Agroz Group borrowed MYR 1,363,000 from HWG Cash, at an interest rate of two percent (2.0%) per annum and a maturity of 24 months, or on such other extended date mutually agreed between Agroz Group and the related party. In January 2024, HWG Cash ceased to be a shareholder of Agroz Group. In April 2025, both parties agreed to extend the loan repayment period to June 30, 2026.

21. Related party balances and transactions

(a) The following is a list of related parties which the Group has balances and transactions with:

---

| | |
|:---|:---|
| Name of entity or individual | Relationship |
| Mr. Gerard Kim Meng Lim ("Gerard Lim") (b)(ii)(ii) | Chief Executive Officer and controlling shareholder |
| Ms. Khoo Kwai Fun ("Ms Khoo") (b)(ii)(vi) | Spouse of the controlling shareholder and became a shareholder of the Company in January 2024 |
| Isa Wellness Marketing (b)(ii)(vii) | An entity controlled by a close family member of the controlling shareholder |
| Isa Farm Sdn. Bhd. | Under common control of the controlling shareholder |
| Braiven Co., Ltd. (b)(ii)(iv) | Significantly influenced by key management of the Group\* |
| HWG Cash (b)(ii)(v) | Under common control of Mr. Lim Chun Hoo and ceased to be a shareholder in January 2024 |
| Agroz Ventures Sdn. Bhd. (b)(ii)(i) | Significantly influenced by Agroz Group\*\* |
| Agroz Vertical Farms Sdn. Bhd. (b)(ii)(iii) | Significantly influenced by Agroz Group\*\* |
| Agroz Asia Sdn. Bhd. | Under common control of the controlling shareholder |

---

\* Mr. Gerard Kim Meng Lim or key management of the Group holds a voting interest of 10% or more and has the right to participate in the financial and operating policy decisions of the applicable company, but does not have control.

\*\* Agroz Group's shareholdings of 19% in each of Agroz Ventures and Agroz Vertical Farms are proxy holdings, with such shares held in trust. While shareholders holding 10% or more of the voting power in an entity are presumed to have a significant influence on the entity under Item 7B of Form 20-F, under International Accounting Standards ("IAS") 28 and International Financial Reporting Standards ("IFRS") 9, significant influence requires a holding of 20% or more in voting power. Agroz Group does not possess any Director nomination rights, voting power, or decision-making influence on the Board of Directors of either Agroz Ventures or Agroz Vertical Farms. Although Agroz Group meets the significant influence presumption under Item 7B of Form 20-F, it does not meet the criteria under IAS 28 and IFRS 9 for significant influence. Therefore, Agroz Group does not believe these proxy holdings should be accounted under equity method. These proxy holdings additionally do not meet the criteria of assets under IASB Framework. The Company, through its wholly owned subsidiary, Agroz Group Sdn Bhd, pursuant to agreements with each of these entities, agreed to operate vertical farms based on guidelines and instructions from Agroz Ventures and Agroz Vertical Farms' management teams, in return for a share of such vertical farms' revenue. Such revenue is received by Agroz Group in consideration of the services Agroz Group provides and the license it grants to use its technology. Agroz Group does not make management decisions on behalf of Agroz Ventures and Agroz Vertical Farms in the operation of such vertical farms, and in such capacity, Agroz Group exercises no control over Agroz Ventures and Agroz Vertical Farms in accordance to IFRS 10. This is because Agroz Group does not have the power or ability to direct such related parties' activities, which activities would affect investee's return. Agroz Group also has no purchase or funding obligations to Agroz Ventures and Agroz Vertical Farms. While IFRS 15 Revenue from Contracts with Customers will be applied for Agroz Group's performance obligations under such agreements (i.e., operating Agroz Ventures and Agroz Vertical Farms' vertical farms), the transaction price for Agroz Group's performance obligations is share of revenue on inhouse produced vegetable sales revenue to other parties except Agroz as management fee. During the six months ended June 30, 2024, the management fee earned on vegetable sales revenue is insignificant. There was no management fee earned for the six months ended June 30, 2025.

(b) Transactions with related parties

(i) Key management personnel compensation

---

| | | | |
|:---|:---|:---|:---|
|  | **For the<br> period ended<br> June 30,<br> 2024** | **For the<br> period ended<br> June 30,<br> 2025** | **For the<br> period ended<br> June 30,<br> 2025** |
|  | **MYR** | **MYR** | **USD** |
| Salaries | 1086602 | 970753 | 221663 |
| Contribution to social security contribution plan | 14979 | 14979 | 3420 |
|  | 1101581 | 985732 | 225083 |

---

(ii) Other
transactions with related parties

---

| | | | |
|:---|:---|:---|:---|
|  | **For the <br> period ended<br> June 30, <br> 2024** | **For the <br> period ended <br> June 30,<br> 2025** | **For the <br> period ended <br> June 30,<br> 2025** |
|  | **MYR** | **MYR** | **USD** |
| **Farm solution sales to** | | | |
| Agroz Vertical Farms Sdn. Bhd. (iii) | 1050081 |  |  |
| **Fresh vegetable sales to** |  |  |  |
| Isa Wellness Marketing (vii) | 32842 |  |  |
| **Purchases of fresh produce from** |  |  |  |
| Agroz Vertical Farms Sdn. Bhd. (iii) | 1939894 | 1873313 | 427756 |
| Agroz Ventures Sdn. Bhd. (i) | 160538 | 96636 | 22066 |
| **Purchase of IT software from** |  |  |  |
| Braiven Co., Ltd. (iv) | 5316710 | 235643 | 53807 |
| **Expenses paid by the Group on behalf of** |  |  |  |
| Agroz Ventures Sdn. Bhd. (i) | 331504 | 319374 | 72926 |
| **Interest on a loan from** |  |  |  |
| HWG Cash (v) | 13630 | 13630 | 3112 |
| **Expenses paid on behalf of the Group by** |  |  |  |
| Gerard Lim (ii) | 240 | 3838681 | 876531 |
| Khoo Kwai Fun (vi) | 51533 |  |  |
| **Payments to** |  |  |  |
| Gerard Lim (ii) | 2400 | 50000 | 11417 |
| Khoo Kwai Fun (vi) | 53496 |  |  |
| Braiven Co., Ltd. (iv) | 6055380 | 162010 | 36994 |
| Agroz Vertical Farms Sdn. Bhd. (iii) | 1239021 | 966293 | 220645 |
| HWG Cash (v) | 70925 |  |  |
| **Payments from** |  |  |  |
| Agroz Ventures Sdn. Bhd. (i) | 2430000 | 996700 | 227588 |
| ISA Wellness Marketing (vii) | 551351 |  |  |
| Agroz Vertical Farms Sdn. Bhd. (iii) | 1000000 |  |  |

---

Notes:

(i) During the six months period ended June 30, 2024 and 2025, Agroz Group paid expenses on behalf of Agroz Ventures Sdn. Bhd. amounted to MYR 331,504 and MYR 319,374 (USD 72,926) and received payments amounted to MYR 2,430,000 and MYR 996,700 (USD 227,588) respectively. During the six months period ended June 30, 2024 and 2025, Agroz Group also purchased fresh produce from Agroz Ventures Sdn. Bhd. amounted to MYR 160,538 and MYR 96,636 (USD 22,066) respectively.

(ii) During the six months period ended June 30, 2024 and 2025, certain operating expenses of Agroz Group amounted to MYR 240 and MYR 3,838,681 (USD 876,531) respectively was paid by Mr. Gerard Lim. Agroz Group has repaid MYR 2,400 and MYR 50,000 (USD 11,417) to Mr. Gerard Lim during the six months period ended June 30, 2024 and 2025 respectively.

(iii) During the six months period ended June 30, 2024 and 2025, Agroz Group purchased fresh produce from Agroz Vertical Farm Sdn. Bhd. amounted to MYR 1,939,894 and MYR 1,873,313 (USD 427,756) respectively. During the six months period ended June 30, 2024, Agroz Group sold its farm solutions to Agroz Vertical Farm Sdn. Bhd. amounted to MYR 1,050,081 and received payments amounted to MYR 1,000,000. Agroz Group repaid MYR 1,239,021 and 966,293 (USD 220,645) during the six months period ended June 30, 2024 and 2025 respectively.

(iv) Agroz Group purchased IT software from Braiven Co., Ltd. amounted to MYR 5,316,710 and paid MYR 6,055,380 during the six months period ended June 30, 2024. During the six months period ended June 30, 2025, Agroz Group endured the investment in IT software from Braiven Co., Ltd. amounted to MYR 235,643 (USD 53,807) and paid MYR 162,010 (USD 36,994).

(v) During the six months period ended June 30, 2024 and 2025, Agroz Group incurred additional interest amounted to MYR 13,630 and MYR 13,630 (USD 3,112) (note 21) respectively to HWG Cash. Agroz Group has repaid MYR 70,925 to HWG Cash during the six months period ended June 30, 2024.

(vi) During the six months period ended June 30, 2024, Khoo Kwai Fun paid on behalf of Agroz Group on certain expenses amounted to MYR 51,533 and Agroz Group has repaid MYR 53,496 in the same period.

(vii) During the six months period ended June 30, 2024, Agroz Group sold fresh produce to ISA Wellness Marketing amounted to MYR 32,842 and received payments amounted to MYR 551,351.

(c) Balances with related parties

---

| | | | |
|:---|:---|:---|:---|
|  | **As of<br> December 31,<br> 2024**  | **As of <br> June 30,**<br>**2025** | **As of <br> June 30,**<br>**2025** |
|  | **MYR** | **MYR** | **USD** |
| **Included in trade receivables from related parties, net** | **Included in trade receivables from related parties, net** | **Included in trade receivables from related parties, net** | **Included in trade receivables from related parties, net** |
| Agroz Ventures Sdn. Bhd. | 588000 |  |  |
| Isa Wellness Marketing | 32513 |  |  |
| Agroz Vertical Farm Sdn. Bhd. | 99500 |  |  |
| Total trade receivables from related parties, net | 720013 |  |  |
| **Included in amounts due from a related party** |  |  |  |
| Agroz Ventures Sdn. Bhd. | 751695 | 1071069 | 253465 |
| **Included in prepayments to a related party** |  |  |  |
| Braiven Co., Ltd. | 5517306 | 5751779 | 1361142 |
| **Included in amounts due to related parties** |  |  |  |
| HWG Cash | 2514691 | 2528321 | 598320 |
| Gerard Lim | 33691 | 3822372 | 904554 |
| Braiven Co., Ltd. | 40226 | 113859 | 26944 |
| Khoo Kwai Fun | 35898 | 35898 | 8495 |
| Agroz Ventures Sdn. Bhd. | 274733 | 324669 | 76832 |
| Agroz Vertical Farm Sdn. Bhd. | 1102611 | 1909631 | 451909 |
| Total amounts due to related parties | 4001850 | 8734750 | 2067054 |

---

23. Basic and diluted earnings per share

(a) Basic earnings per share

The calculation of basic earnings per share is based on the profit attributable to ordinary shareholders of the Company and the weighted average number of ordinary shares outstanding, which is calculated as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the<br> six months<br> period ended <br> June 30,<br> 2024** | **For the <br> six months <br> period ended<br> June 30, <br> 2025** | **For the <br> six months <br> period ended<br> June 30, <br> 2025** |
|  | **MYR** | **MYR** | **USD** |
| Profit for the year | (2575121) | 2244605 | 512537 |
| Weighted average number of ordinary shares | 20304913 | 20241155 | 20241155 |
| Basic earnings per share | 0.13 | 0.11 | 0.03 |

---

(b) Diluted earnings per share

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of redeemable convertible preference shares. The potentially dilutive securities that were not included in the calculation of above dilutive net profit per share in the years presented where their inclusion would be anti-diluted include weighted average number of RCPS of 474,614 and 801,501 shares for the period ended June 30, 2024 and 2025.

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**For the<br> six months<br> period ended**<br>**June 30,<br> 2024** | <br>**For the <br> period ended<br> June 30,**<br> **2025**  | <br>**For the <br> period ended<br> June 30,**<br> **2025**  |
|  | **MYR** | **MYR** | **USD** |
| Net earnings allocated to ordinary share | (2575121) | 2244605 | 512537 |
| Add: Effect on interest expenses of AI RCPS |  |  |  |
| Net earnings used in the computation of diluted earnings per share | (2575121) | 2244605 | 512537 |
| Weighted average number of ordinary shares | 20304913 | 20241155 | 20241155 |
| Effect of redeemable convertible preference shares |  |  |  |
| Weighted average number of ordinary shares in the computation of diluted earnings per share | 20304913 | 20241155 | 20241155 |
| Diluted earnings per share | 0.13 | 0.11 | 0.03 |

---

24. Commitments and contingencies

(a) Commitments

Capital expenditure contracted for but not provided in the unaudited condensed consolidated financial statements:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **As of <br> December 31,<br> 2024** | **As of <br> December 31,<br> 2024** | **As of <br> June 30, <br> 2025** | **As of <br> June 30, <br> 2025** | **As of <br> June 30, <br> 2025** | **As of <br> June 30, <br> 2025** | **As of <br> June 30, <br> 2025** |
|  | **MYR** | **MYR** |  | **MYR** | **MYR** | **USD** | **USD** |
| Software and AI Platform Development | | 13,313,961 | | | 12,493,108 | | 2,956,459 |

---

As of June 30, 2025, the Group has remaining contractual commitment amounted to MYR12,493,108 (USD2,956,459) (December 31, 2024: MYR13,313,961), mainly arising from certain purchase contracts of IT software such as E-commerce website design, Internet of Things (IoT) management platform, system integration platform and Enterprise Resource Planning (ERP) system signed with suppliers. Significant increase in capital commitment was due to the developments of comprehensive Robotics AI Platform designed to facilitate the creation, deployment, and management of intelligent robotic systems that would enable autonomous and robotic decision making. Significant increase in capital commitment was due to the developments of comprehensive Robotics AI Platform designed to facilitate the creation, deployment, and management of intelligent robotic systems that would enable autonomous and robotic decision making. The majority of this contractual commitment is due within five years and upon the project progress. Other than as shown above, the Group did not have any significant capital and other commitments, long- term obligations or guarantees as of December 31, 2024 and June 30, 2025.

(b) Contingencies

In the ordinary course of business, the Group may be subject to legal proceedings regarding contractual and employment relationships and a variety of other matters. The Group records contingent liabilities resulting from such claims, when a loss is assessed to be probable and the amount of the loss is reasonably estimable. In the opinion of management, there were no pending or threatened claims and litigation as of December 31, 2024 and June 30, 2025, and through the issuance date of these unaudited condensed consolidated financial statements.

**25. Event after reporting period**

Subsequent to the end of the reporting period, on 31 December 2025, the company received a formal notice from the Company's IPO financial advisor, on an outstanding payable amount by the company to the financial advisor of an amount of US$924k, which had not been settled since the date of listing of the Company on Oct 1, 2025. Such amount had not been reflected in the financial statements of the Company for the period ended 30 June 2025 as the IPO was only successful on October 1, 2025. The Management is currently seeking legal advise and recourse on the amount being demanded.