KUALA LUMPUR: Eco World Development Group Berhad (EcoWorld Malaysia) announced its results for 1Q 2025 (from 1 Nov 2024 to 31 Jan 2025) today. Key highlights include the following:

• EcoWorld Malaysia achieved 93 billion sales in the first 4 months of FY2025, representing 55% of the Group’s FY2025 full year sales target.
• Projects in Iskandar Malaysia contributed RM1.14 billion or 59% of the Group’s total sales, followed by 34% from the Klang Valley and 7% from Penang.
• A breakdown of YTD sales achieved by revenue pillars as at 28 February 2025 is set out below:

• The industrial segment was the largest contributor to the Group’s YTD sales for the first time, with close to RM1 billion recorded.
• Revenue and gross profit for 1Q 2025 increased by 0.3% and 19.3%, respectively, compared to 1Q Gross profit margin improved to 28.4% in 1Q 2025 compared to 23.9% in 1Q 2024.
• Profit after Tax (PAT) of 3 million for 1Q 2025 was 15.4% higher than 1Q 2024.
• EcoWorld Malaysia’s future revenue has grown to RM5 billion as at 28 February 2025, providing both near-term earnings and cashflow visibility for the Group.
• Premised on strong performance achieved, for the first time ever, an interim dividend of 1 sen per share was declared in 1Q of a financial year.

Comments on EcoWorld Malaysia’s performance by Dato’ Chang Khim Wah, President & CEO

EcoWorld Malaysia is off to a strong start in FY2025, with RM1.93 billion sales secured in the first four months of the financial year, making up 55% of the Group’s full year sales target. Our projects in Iskandar Malaysia continue to be the largest contributor by region, bringing in 59% of total year-to-date sales.

The industrial segment under our QUANTUM pillar continues to power ahead with two sizeable industrial land deals inked in February 2025 with global technology leaders. On 17 February 2025, we sold 138.532 acres in Eco Business Park I in Iskandar Malaysia to Microsoft Payments (Malaysia) Sdn. Bhd., our second such sale to them. This was followed by 58.187 acres sold to Pearl Computing Malaysia Sdn. Bhd. (“Pearl Computing”) in Eco Business Park V in the Klang Valley. On a combined basis, these two deals

contributed RM960 million to FY2025 sales, resulting in the industrial segment taking the lead as the Group’s highest contributor to sales for the first time.

More notably, within a relatively short span of only 9 months from June 2024 to February 2025, we have successfully entered into four deals to sell industrial lands to market leading data centre players, generating total sales value of RM1.59 billion. This attests to the suitability of our business parks, whether in Iskandar Malaysia or the Klang Valley, as ideal sites for digital and high-tech operations and it also speaks of Malaysia’s continued attractiveness to hyperscalers for data centre operations.

Residential products were the 2^nd highest contributor with RM673 million sales achieved in the first four months of FY2025. Our Eco Townships pillar recorded RM420 million sales of landed homes, of which 91% were priced above RM650,000. Sales under Eco Rise were RM253 million, with our duduk apartments making up 72% of these sales. This includes sales from our latest project, Se.duduk D’ Kajang, which is our first series of duduk apartments developed outside our own townships. The Group’s ability to cater to a broad market range is evident through the sustained demand for both our upgrader homes as well as affordably priced apartments, with all our residential products being well-equipped with ample amenities to meet the lifestyle needs and aspirations of our homeowners.

The commercial segment under the Eco Hubs pillar recorded RM267 million YTD sales, making up 14% of total Group sales. We recently launched the new Maya office suites as part of our first corporate office tower in Eco Ardence in the Klang Valley. This is the second office tower to be developed by the Group following Menara EcoWorld (formerly known as The Stride) in Bukit Bintang City Centre (BBCC). The focus on placemaking and value creation that have proven successful at BBCC will be adapted to suit a suburban office environment, to ensure that occupants have access to a wide range of F&B, retail and other conveniences available, within short walking distances from their place of work.

EcoWorld Malaysia’s strong sales performance has increased future revenue to a record high of RM5 billion as at 28 February 2025, providing both near-term earnings and cashflow visibility to the Group. This has substantially increased our headroom to reinvest for future growth which we have been actively pursuing, with some very good outcomes already secured to date that will transform our business and revenue generation model going forward.

In 1Q 2025, we entered into an agreement to purchase and completed the acquisition of 847.249 acres land in the Semenyih corridor. This new mixed development project, to be known as Eco Radiance, is planned for launch at the end of 2025 / start of 2026. Its location immediately adjacent to our established Eco Forest project will enable us to build upon the strong track record we have established with purchasers from the vicinity, as well as Cheras and Kajang to the north and Negeri Sembilan to the south, who form a large component of our existing customer base. We will also be able to ride off the substantial investments in infrastructure and amenities that we have already invested at Eco Forest as well as our larger Eco Majestic matured township which is located nearby, to enhance all our new product offerings at Eco Radiance, without incurring much extra cost. This will enable us to positively differentiate Eco Radiance to prospective purchasers when it is launched.

Our plans to build up our recurring income portfolio also received a significant boost when we signed an agreement with Pearl Computing on 25 February 2025 to build and lease the shell and core of data centres and associated structures on a 92.44-acre land in Eco Business Park V. The lease is for an initial term of 20 years with a renewal option of up to 10 additional years. The total value of rent over the initial 20-year lease term is estimated to be up to RM4.8 billion which will provide the Group with substantial fixed rental income to anchor our recurring income ambitions.

Over the next 3-5 years, we are looking to continue expanding our portfolio of investment assets, with the aim that approximately 20% – 30% of the Group’s future earnings will eventually be from recurring income sources. This will further enhance EcoWorld’s earnings stability and cashflow certainty going forward, giving us increased capacity to reward shareholders with continued growth and good dividends.