SOLUTION GROUP BERHAD

(Company No : 200401016072 (654575-P)

(Incorporated in Malaysia)

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE QUARTER
ENDED 31 MARCH 2024
(The figures have not been audited)

INDIVIDUAL QUARTER CUMULATIVE QUARTER

Current Year Preceding Year Current Year Preceding Year
Quarter ended Corresponding Quarter To-Date Corresponding Period
31 Mar 2024 31 Mar 2023 31 Mar 2024 31 Mar 2023
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
RM'000 RM'000 RM'000 RM'000

Revenue 49,961 28,793 49,961 28,793

Cost of sale (46,653) (25,879) (46,653) (25,879)

Gross profit 3,308 2,914 3,308 2,914

Other Operating Income 208 374 208 374

Administrative and distribution expenses (1,533) (1,852) (1,533) (1,852)

Other Operating Expenses (1,004) (944) (1,004) (944)

Profit/(loss) before tax 979 492 979 492

Income tax expense B5 (534) (679) (534) (679)

Profit/(loss) after tax 445 (187) 445 (187)

Attributable to :

Equity holders of the parent 12 (838) 12 (838)

Non-controlling Interest 433 651 433 651
445 (187) 445 (187)

Earnings per share attributable to

equity holders of parent :
Basic (sen) B13 0.003 (0.191) 0.003 (0.191)
Diluted (sen) B13 0.003 (0.191) 0.003 (0.191)

EBITDA(1) 1,763 1,310 1,763 1,310

Note:-

(1)
Profit before interest income, finance cost, tax, depreciation, amortisation and allowances.

(The unaudited Condensed Consolidated Income Statements should be read in conjunction with the accompanying explanatory notes
attached to the interim financial statements)
SOLUTION GROUP BERHAD
(Company No : 200401016072 (654575-P)
(Incorporated in Malaysia)

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2024

(The figures have not been audited)

Unaudited Audited
31 Mar 2024 31 Dec 2023
RM'000 RM'000

ASSETS
Non-current assets
Property, plant and equipment 25,524 26,153
Right-of-use assets 4,408 3,842
Goodwill 33 33
29,965 30,028

Current Assets
Inventories 3,196 3,483
Trade receivables 17,016 15,837
Other receivables 3,928 3,848
Contract Assets 49,549 36,182
Tax recoverable 1,773 1,720
Deposit, cash and bank balances 17,664 22,860
93,126 83,930
TOTAL ASSETS 123,091 113,958

EQUITY AND LIABILITIES

Equity attributable to equity holders of the parent
Share capital 89,442 89,323
Treasury shares (280) (280)
Reserves (9,050) (9,012)
80,112 80,031
Non-controlling interest 5,110 4,677
Total equity 85,222 84,708

Non-Current Liabilities
Term Loan B7 3,997 4,374
Lease liabilities B7 1,757 1,083
Contract Liabilities - 1,104
Deferred taxation 36 36
5,790 6,597

Current Liabilities
Trade payables 19,387 10,456
Other payable & accruals 2,027 2,377
Amount due to director 16 16
Contract Liabilities 2,698 4,964
Bills payable 5,914 2,606
Term Loan B7 582 347
Lease liabilities B7 570 789
Taxation 885 1,098
32,079 22,653
Total liabilities 37,869 29,250
TOTAL EQUITY AND LIABILITIES 123,091 113,958

Number of ordinary shares in issue ('000) 485,977 485,587

Net assets value per share (RM) 0.1754 0.1744

(The unaudited Condensed Consolidated Balance Sheet should be read in conjunction with the accompanying
explanatory notes attached to the interim financial statements)
SOLUTION GROUP BERHAD
(Company No : 200401016072 (654575-P)
(Incorporated in Malaysia)

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31 MARCH 2024
(The figures have not been audited)

3 months 3 months
Ended 31 Mar 2024 Ended 31 Mar 2023
(Unaudited) (Unaudited)
RM'000 RM'000
CASHFLOWS FROM OPERATING ACTIVITIES
Profit before taxation 979 492
Adjustment for :
Depreciation of property, plant and equipment 647 645
Depreciation of right-of-use assets 168 165
Interest income (67) (54)
Bad debts written off - 18
Interest expense - others 36 63
Net impairment (gain)/losses for financial instruments and contract
assets - (137)
(Gain)/loss on termination of lease contracts (128) -
Operating profit before working capital changes 1,635 1,192
Working capital changes :
(Increase)/ Decrease in inventories 288 140
(Increase)/ Decrease in contract assets (13,367) (9,986)
(Increase)/ Decrease in trade and other receivables (1,261) 2,324
Increase/ (Decrease) in contract liabilities (3,369) 140
Increase/ (Decrease) in trade and other payables 8,580 9,005
Cash (used in)/generated from operating activities (7,494) 2,815
Tax paid (799) (596)
Net cash (used in)/generated from operating activities (8,293) 2,219

CASH FLOWS FROM INVESTING ACTIVITIES

Net withdrawal/(placements) of short term investments - 35
Interest received 67 54
Purchase of right-of-use assets (42) -
Purchase of property, plant and equipment (include PPE WIP) (17) (2)
Net (placement)/withdrawal of deposits under lien (1,079) -
Net cash (used in)/generated from investing activities (1,071) 87
CASHFLOWS FROM FINANCING ACTIVITIES
Interest paid (36) (63)
Net repayment of term loans (142) (110)
Proceeds from issuance of shares pursuant to exercise of share options 69 -
Net addition/(repayments) of bill payables 3,307 -
Net repayments of principal portion of lease liabilities (109) (144)
Net cash generated from/(used in) financing activities 3,089 (317)

Net (decrease in)/increase from cash and cash equivalents (6,275) 1,989

Cash and cash equivalents at beginning period 14,054 6,153

Cash and cash equivalents at end of period 7,779 8,142

Cash and cash equivalents as at 31 Mar 2024 and 31 Mar 2023 comprise the following :

2024 2023
RM'000 RM'000

Deposit, cash and bank balances 17,664 16,496

Less: Fixed deposits with licensed banks (pledged with bank for banking facilities) (9,885) (8,354)
Cash and cash equivalents 7,779 8,142

(The unaudited Condensed Consolidated Cashflow Statements should be read in conjunction with the accompanying
explanatory notes attached to the interim financial statements.)
SOLUTION GROUP BERHAD
(Company No : 200401016072 (654575-P)
(Incorporated in Malaysia)

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE QUARTER ENDED 31 MARCH 2024
(The figures have not been audited)

<-----------------------Non-distributable---------------------->Distributable
Retained
Earnings/
(Accumulated Non-controlling
Share Capital Option Reserve Treasury Shares Losses) Total Interests Total
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

As at 1 January 2023 (audited) 80,749 1,848 (280) (11,024) 71,293 2,344 73,637
Issuance of ordinary shares pursuant to:-
- Private placement 8,574 - - - 8,574 - 8,574

Profit for the financial year and total - - - 164 164 2,333 2,497
comprehensive profit for the financial year
At 31 Dec 2023 (audited) 89,323 1,848 (280) (10,860) 80,031 4,677 84,708

As at 1 January 2024 89,323 1,848 (280) (10,860) 80,031 4,677 84,708

Issuance of ordinary shares pursuant to:-

- Exercise of Share Options 119 (50) - - 69 - 69

Loss for the financial year and total - - - 12 12 433 445

comprehensive loss for the financial year

At 31 Mar 2024 (unaudited) 89,442 1,798 (280) (10,848) 80,112 5,110 85,222

1 Effective from 31st January 2017, the new Companies Act 2016 ("the Act") abolished the concept of authorised share capital and par value of share capital. Consequently, the credit balance of the share
premium becomes part of the Company's share capital pursuant to the transitional provision set out in Section 618(2) of the Act. Notwithstanding this provision, the Company may within 24 months
from the commencement of the Act, use this amount for purpose set out in Section 618 (3) of the Act. There is no impact on the number of ordinary shares in issue or the relative entitlement of any
members as a result of this transition.

(The unaudited Condensed Consolidated Changes In Equity should be read in conjunction with the accompanying explanatory notes attached to the interim financial statements.)
SOLUTION GROUP BERHAD ("Company" or "SGB")
(Company No : 200401016072 (654575-P)
(Incorporated in Malaysia)

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE QUARTER
ENDED 31 MARCH 2024

A. EXPLANATORY NOTES PURSUANT TO MFRS 134 INTERIM FINANCIAL REPORTING

A1. Basis of preparation

The interim financial report of the Company and its subsidiaries ("Group") is unaudited and is prepared in accordance with MFRS 134 “Interim
Financial Reporting” and Paragraph 9.22 of the Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”) for the ACE Market and
should be read in conjunction with the audited consolidated financial statements of the Group for the financial year ended 31 December 2023.

A2. Changes in accounting policies

At the beginning of the current financial year, the Group and the Company adopted new amendments and improvements to MFRSs which are mandatory
for the financial years beginning on or after 1 January 2024.

The adoption of the above did not have any significant impact on the financial statements of the Group.

Standards issued but Not Yet Effective

The Group and the Company have not early adopted the following new MFRS and amendments to MFRSs that have been issued by the Malaysian
Accounting Standards Board ("MASB") but are not yet effective :-

Effective for annual periods beginning on or after 1 January 2025

MFRS 121 The Effects of Changes in Foreign Exchange Rates - Lack of Exchangeability

Effective for annual periods beginning on or after a date to be determined by the MASB

Amendments to MFRS 10 and MFRS 128 - Consolidated Financial Statements and Investments in Associates and Joint Ventures
- Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

The Group and the Company will apply the above new MFRS and amendments to MFRSs that are applicable once they become effective.
The initial application of the new MFRS and amendments to MFRSs is not expected to have any significant impact on the Group's and the
Company's financial statements.

A3. Auditors' report on preceding annual financial statements

The auditors' report on the financial statements for the financial year ended 31 December 2023 was not subject to any qualification.

A4. Seasonality or cyclicality factors

The Group's operations were not affected by seasonal or cyclical changes.

A5. Unusual items affecting assets, liabilities, equity, net income or cash flows

There were no unusual items or events affecting assets, liabilities, equity, net income or cash flows of the Group during the quarter
under review.

A6. Material changes in estimates

There were no material changes in estimates that have a material effect in the current quarter results.

A7. Debts and equity securities

There were no other issuance, cancellation, resale, repurchase and repayment of debt and equity securities.

A8. Dividends Paid

There was no dividend paid during the quarter under review.

SOLUTION GROUP BERHAD ("Company" or "SGB")
(Company No : 200401016072 (654575-P)
(Incorporated in Malaysia)
A. EXPLANATORY NOTES PURSUANT TO MFRS 134 INTERIM FINANCIAL REPORTING (CONTD.)

A9. Segmental information

During the financial period, the Group revenue was contributed mainly from the following business segments:

i) Engineering Equipment Design and development of equipment and software for engineering education, research and Technical and Vocational
Education and Training (“TVET”) in chemical, mechanical, electrical, civil, control engineering and renewable energy.

ii) Metal Fabrication Provision of fabrication for pressurised vessels, heat exchangers, storage tanks, structures and process skids assembly.
and Assembly Works

iii) Industrial Automation and Provision of industrial automation and system integration solutions for telemetry, Supervisory Control and Data
Plant Construction Acquisition (SCADA), instrumentation and control systems.

iv) Green and Renewal Energy Promotion of business relating to green and renewal energy including supply and installation of photovoltaic system.

v) Biopharmaceuticals & Sales and manufacture of pharmaceutical, medical and botanical products and medicinal chemical and
Biotechnology provision of laboratory and industrial biotechnology solutions

vi) Industrial Lubricants Production and distribution of industrial lubricants under SOLMAX brand and OEM brand.

Segmental financial information for 3 months period ended 31 Mar 2024 and 31 Mar 2023 are as follows:

2024
Metal Industrial
Fabrication Automation Biopharma- Green and
Engineering and Assembly and Plant Industrial ceuticals & Renewal
Equipment Works Construction Lubricants Biotechnology Energy Others Elimination Total
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

Segment revenue
External 2,313 1,428 44,347 336 470 1,067 - - 49,961
Inter-segment 22 362 282 1 - - (667) -
Total revenue 2,335 1,790 44,629 337 470 1,067 - (667) 49,961

Results
Segment results 441 195 2,398 (139) (998) (589) (151) (142) 1,015
Interest expense (36)
Profit before taxation ("PBT") 979
Income tax expense (534)
Profit after taxation ("PAT) 445
Non-controlling Interest (433)
Profit attributable to equity
holders of the company 12

2023
Metal Industrial
Fabrication Automation Biopharma- Green and
Engineering and Assembly and Plant Industrial ceuticals & Renewal
Equipment Works Construction Lubricants Biotechnology Energy Others Elimination Total
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
Segment revenue
External 810 497 26,018 360 154 954 - - 28,793
Inter-segment - 207 30 1 - - 4 (242) -
Total revenue 810 704 26,048 361 154 954 4 (242) 28,793

Results
Segment results (67) 13 2,910 (28) (1,849) 76 29 (529) 555
Interest expense (63)
Profit before taxation ("PBT") 492
Income tax expense (679)
Loss after taxation ("LAT) (187)
Non-controlling Interest (651)
Loss attributable to equity
holders of the company (838)
SOLUTION GROUP BERHAD ("Company" or "SGB")
(Company No : 200401016072 (654575-P)
(Incorporated in Malaysia)

A. EXPLANATORY NOTES PURSUANT TO MFRS 134 INTERIM FINANCIAL REPORTING (CONTD.)

A10. Valuation of property, plant and equipment

The Group did not revalue any of its property, plant and equipment during the quarter under review.

A11. Material events subsequent to the end of the quarter

There were no material events occurring subsequent to the end of the reporting period to the date of announcement.

A12. Changes in the composition of the Group

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

A13. Contingent liabilities

There were no material contingent liabilities as at the date of this announcement.

A14. Capital commitment

There were no material capital commitment as at the date of this announcement.

A15. Significant Related Party Transaction

There was no significant related party transaction as at the date of this announcement.
SOLUTION GROUP BERHAD ("Company" or "SGB")
(Company No : 200401016072 (654575-P)
(Incorporated in Malaysia)
B. ADDITIONAL INFORMATION REQUIRED BY BURSA MALAYSIA SECURITIES BERHAD
LISTING REQUIREMENTS FOR THE ACE MARKET

B1. Review of Performance

Comparison with corresponding quarter in previous financial year

During the quarter, the Group achieved substantial revenue of RM49.96 million, marking a noteworthy increase of RM21.17 million compared to the
RM28.79 million revenue from the corresponding quarter in the previous fiscal year. This significant surge in revenue was primarily driven by
heightened sales within the industrial automation and plant construction business segment.

For the quarter ended 31 Mar 2024, the Group recorded a profit after tax ("PAT") of RM0.45 million. In contrast, during the same period in the prior
year, ended 31 Mar 2023, the Group had reported a loss after tax ("LAT") of RM0.19 million. The profit margin in the current quarter was relatively low
due to increased project costs, driven by rising material prices and higher manpower expenses.

B2. Comparison with Preceding Quarter's Results

The Group's revenue for the quarter under review totalled RM49.96 million, reflecting an increase of RM15.32 million compared to the RM34.64
million reported in the preceding quarter.

During the quarter, the Group realized a profit after tax of RM0.45 million, primarily contributed by the industrial automation and plant construction
business segment.

B3. Prospects for the financial year 2024

The Group is proactively expanding its operations with a forward-thinking strategy that promises substantial success and long-term stability.

The industrial automation and plant construction segment remains the primary revenue driver, demonstrating strong performance. Additionally, other
segments within the Group are improving, having secured significant orders throughout the quarter.

Furthermore, the Group is actively exploring mergers and acquisitions to broaden its business scope, with the aim of achieving greater success and
stability over the long term.

On 25th May 2022, SOLBIO, the National Institute of Biotechnology Malaysia ("NIBM"), and CanSino signed a Memorandum of Understanding (MOU)
regarding collaboration in human vaccine research and development. As of today, the parties are still in the process of finalizing a definitive agreement.

B4. Profit guarantee

The Group has not issued any profit forecast nor guarantee in respect of any corporate proposal.

B5. Taxation
Quarter ended Year-to-date
31 Mar 2024 31 Mar 2023 31 Mar 2024 31 Mar 2023
RM'000 RM'000 RM'000 RM'000
Current taxation
-Provision for taxation (534) (679) (534) (679)

Deferred taxation - - - -
(534) (679) (534) (679)

B6. Profit on sale of unquoted investments and/or properties

There were no disposal of unquoted investment and/or properties for the quarter under review.
SOLUTION GROUP BERHAD ("Company" or "SGB")
(Company No : 200401016072 (654575-P)
(Incorporated in Malaysia)
B7. Group borrowings and debt securities

Details of the Group's borrowings as at 31 Mar 2024 are as follows :

Current Non-current Total
RM'000 RM'000 RM'000

Secured :
Hire purchase (included in lease liabilities) 172 607 779
Term loan 582 3,997 4,579
Total 754 4,604 5,358

B. ADDITIONAL INFORMATION REQUIRED BY BURSA MALAYSIA SECURITIES BERHAD

LISTING REQUIREMENTS FOR THE ACE MARKET (CONTD.)

B8. Status of Corporate Proposals

A) Update on Employees' Share Option Scheme (ESOS) as at 31 Mar 2024

The Company had obtained its shareholders approval for the establishment of the ESOS of up to 30% of the total issued and paid-up share capital for the
eligible employees and directors and its subsidiaries at the EGM dated 16 January 2014.

Below are the details of the shares that had been granted and exercised under the ESOS as at 31 Mar 2024:
No. of Share
No. of Share Exercised and No. of Share
ESOS Option Grant Date Expiry Date Exercise Price Granted Listed Lapsed Status

22 July 2014 29 Jan 2019 RM0.135 11,134,000 11,103,000 31,000 Completed

8 January 2015 29 Jan 2019 RM0.185 6,000,000 6,000,000 - Completed
28 September 2016 29 Jan 2024 RM0.220 6,000,000 4,473,000 422,000 Expired
8 August 2020 29 Jan 2024 RM0.175 2,605,000 2,540,000 - Expired
9 February 2022 29 Jan 2024 RM0.470 6,000,000 257,000 - Expired

The Company's existing ESOS, which commenced on 30 January 2014, expired on 29 January 2024.

B) Proposed Renewal of Authority for the Company to Purchase Its Own Shares

The Renewal of Authority for Share Buy Back had been approved by shareholders at the Seventeenth Annual General Meeting of the Company. As at to
date, the total number of treasury shares is 1,932,700.

C) Utilisation of proceeds

On 3 October 2023, M&A Securities, on behalf of the Board, formally announced the successful completion of the Private Placement. The listing of
43,968,600 Placement Shares on the ACE Market of Bursa Malaysia Securities Berhad resulted in total proceeds amounting to RM8,573,877. The
proceeds will be utilised by the Group for research and development of human vaccines and working capital, the breakdown of the utilisation are as
follows:
Purpose Timeframe for Proposed Actual
Utilisation of Utilisation Utilisation
Proceeds
RM’000 RM’000
Research and development of human vaccines Within 24 months 4,500 -
Working capital requirements Within 24 months 3,934 854
Expenses for The Proposed Private Placement Immediate 140 140

B9. Realised/ Unrealised Profits

As at
31 Mar 2024
RM'000
Total accumulated losses of the Company and its subsidiaries
- realised (23,672)
- unrealised 1
(23,671)
Less: Consolidated adjustments 12,823
Accumulated losses as per financial statement (10,848)

B10. Profit Before Tax

Quarter ended Quarter ended
31 Mar 2024 31 Mar 2023
RM'000 RM'000
Profit before tax is derived after charging:

Depreciation of property, plant & equipment 646 645

Depreciation of right-of-use assets 169 165
Interest expense 36 63
Loss on foreign exchange:
-Realised 7 10
Bad debts written off - 18

and crediting:
Interest income (67) (54)
Reversal of impairment on trade receivables and contract asset - (137)
Gain on foreign exchange:
Unrealised (1) (16)
SOLUTION GROUP BERHAD ("Company" or "SGB")
(Company No : 200401016072 (654575-P)
(Incorporated in Malaysia)
B. ADDITIONAL INFORMATION REQUIRED BY BURSA MALAYSIA SECURITIES BERHAD
LISTING REQUIREMENTS FOR THE ACE MARKET (CONTD.)

B11. Off balance sheet financial instruments

There were no financial instruments with off-balance sheet risk as at the date of this announcement applicable to the Group.

B12. Dividends

The Board of Directors did not recommend other payment of dividend in respect of the quarter under review.

B13. Earnings per share

Current Comparative Current year Preceding year
Quarter Quarter to date to date
ended ended ended ended
31 Mar 2024 31 Mar 2023 31 Mar 2024 31 Mar 2023

Net profit/(loss) for the period attributable to equity holders (RM'000) 12 (838) 12 (838)
Basic
Weighted average number of ordinary shares in issue ('000) 450,901 437,710 450,901 437,710
Basic EPS (sen) 0.003 (0.191) 0.003 (0.191)

Diluted
Weighted average number of ordinary shares in issue ('000) 450,901 437,710 450,901 437,710
Effect of dilution: share options and convertible warrants ('000) 35 370 35 370
Adjusted weighted average number of ordinary shares
in issue and issuable ('000) 450,936 438,080 450,936 438,080
Diluted EPS (sen) 0.003 (0.191) 0.003 (0.191)

BY ORDER OF THE BOARD

SOLUTION GROUP BERHAD