Dear Valued Shareholders,
On behalf of the Board of Directors, it is our privilege to present the Annual Report and Audited Financial Statements of the Zelan Group (“the Group”) for the financial year ended 31 December 2025 (“FYE2025”).
We would like to begin by expressing our deepest appreciation for your continued trust, patience and support. While FYE 2025 presented its share of challenges, it has also been a year of meaningful progress, renewed focus and important milestones that are shaping a stronger and more resilient future for the Group.
BUILDING ON RESILIENCE
The Group recorded revenue of RM28.9 million for FYE2025, compared to RM40.2 million in the previous year, primarily due to lower asset replacement activities under our concession project at the Centre for Foundation Studies, International Islamic University Malaysia, Gambang Campus.
Despite this decline, our core asset and facilities management segment remained resilient, contributing approximately RM26.4 million in revenue and continuing to provide a stable and recurring income base. This consistency underscores the strength of our concession-driven business model, which remains the cornerstone of the Group’s operations. Other segments, including rental and car park operations, contributed modestly, while construction activities remained limited as we adopted a cautious approach.
Encouragingly, gross profit remained steady at approximately RM19.0 million, reflecting disciplined cost management and operational efficiency across the Group.
The Group recorded a loss before tax and zakat of RM59.6 million, a substantial improvement from RM247.9 million in the previous year. This result was largely impacted by non-recurring items, namely the impairment of trade receivables amounting to RM38.2 million and the recognition of a liability arising from a final arbitration award of RM24.1 million. Excluding these, the Group would have achieved a profit before tax and zakat of approximately RM3.9 million, clear evidence that our core operations are not only stable, but capable of generating sustainable returns.