Cheng-from the RM212 mil PP in 2021, by right these money should be use for Plant 3. Now, management diverted RM86mil to upgrade existing machines (OMG, new machines in 2021 almost lost the capability to produce high quality products and need to upgrade/convert to other product package). Worst thing, balance RM127mil use for repayment borrowing. Really bad in situation.

indeed its not good, green. Mgmt should have used the money to pay royalties to Nichia so that D&O can keep using their design. Unfortunately, its too late now. Nichia and Osram have signed a deal to cross-license their patents.

RM250 mil written off old stock, then using RM83 mil to upgrade old machines and RM127 mil to pay short term borrowing. It means, company won’t be able to growth in near future. UNLESS, issue another PP, then dilute the market share.

Makes sense for EPF to manage their positions and avoid unnecessary risk. It's mind boggling that mgmt is keeping quiet on the patents infringement case when Nichia has published the verdict by the court. Inventory written off, capex funds redirected and the next natural course will be lower revenue as D&O cannot produce the affected products using Nichia's patented technology.

Signs & red flags already there based on previous quarters stock impairment and huge losses since early this year. Stock impairment still required for QR1 2026 based on latest results announced today & doesn’t augurs well going forward. EPF certainly took a long time to cease as Substantial Shareholders on 20 MAY 2026 !

High impairment for the last 3 QRs since QR3 ended 30/9/2025. Technically, complete impairment testings on inventories should have been duly completed and recognised as at Financial Year Ended 31/12/2025. Impairment required to ensure financial statements accurately reflect an asset's true economic value. This will ensure a realistic picture of a company's financial health and true earning potential and to avoid sudden, massive write-offs as happened during QR3 ended 30/9/2025.

Becoming a defensive industry with big players protecting their IPs. That's how D&O being sued by Nichia and Nichia won. Such defensive industry is making it tough for smaller players without IPs to move up the value chain; limited to packaging and mfg.

I meant if D&O distinctive they are EV automotive factory, the employee should drive EV car, parking lots should have EV charger, unfortunately they don’t. There is no differentiation between the company and normal light bulb company. After many years of production, the technology also outdated, product quality deteriorating, RnD cut and paste competitive pattern design. Private Placement fund being used for loan payment and product impairment….so easy to predict the company future prospects.

competition is stiff now and its gonna be challenging for D&O to recover back to its glory days without IPs cross-licensing. lets not forget capex for plant 3 has been redirected to other purposes. Which means excess capacity / fixed cost at the back of lower volume; margin will be stressed for some time.