Furniweb Holdings Limited reported unaudited results for the six months ended 30 June 2026:

1. Earnings • Revenue fell 20.9% year on year to RM89.46 million, driven by downturns in both core segments. • Gross profit declined 29.7% to RM21.55 million; gross margin narrowed to 24.0% from 27.1% a year earlier. • Profit before tax dropped to RM5.51 million (H1 2025: RM15.80 million). • Net profit attributable to shareholders slipped 70.7% to RM3.42 million; basic EPS decreased to 0.37 sen from 1.36 sen.

2. Segment Performance • Manufacturing revenue decreased 14.9% to RM37.04 million, reflecting softer demand for elastic yarn and furniture webbing and an unfavourable USD/RM exchange rate; segment profit contracted to RM3.52 million (H1 2025: RM5.03 million). • Energy efficiency revenue slid 24.7% to RM52.45 million due to reduced project income in Malaysia; segment profit fell to RM4.90 million (H1 2025: RM12.05 million). • Property investment recorded a RM1.00 million loss, with no tenancy secured for the 50 Picasso Residence condominium units acquired in February 2025.

3. Balance Sheet and Cash Flow • Cash and cash equivalents stood at RM62.96 million; the group remained in a net cash position with borrowings of RM12.27 million. • Net current assets totalled RM88.41 million; current ratio remained stable at 2.3 times. • Operating activities generated RM11.14 million of net cash; overall cash decreased by RM5.79 million after RM7.15 million of investing outflow and RM9.77 million of financing outflow, including a special dividend of approximately RM7.58 million (HK$0.015 per share) paid in April 2026.

4. Impairment • A RM1.61 million impairment was recognised on a specific loan receivable during the period.

5. Subsequent Events • PRG Holdings Berhad, Furniweb’s controlling shareholder, became subject to a winding-up petition and filed for a judicial management order in Malaysia (announcements dated 24 July and 3 August 2026). • Board changes effective 12–13 August 2026: Er. Kang Boon Lian appointed as authorised representative and committee member; Andrew Chan Lim-Fai re-designated from executive to non-executive director.

6. Outlook Management expects continued pressure on manufacturing margins from USD/RM volatility, geopolitical uncertainties and freight costs, while the project-based nature of the energy efficiency segment may lead to earnings fluctuations. The group intends to focus on cost optimisation, product-mix enhancement and market diversification to support sustainable growth.

No interim dividend was declared for H1 2026.