Link: https://links.sgx.com/1.0.0/corporate-announcements/DMWD120LX89FUFVC/55eaca36520e328b5bdfb67ee7cd06f05b7bfe1b279240e4f8b215dbf77c157e

Summary:

• Group revenue for the nine months ended 30 September 2025 slipped 8% year-on-year to RMB 55.7 million due to softer demand in China, Korea, and Japan.

• Gross profit margin improved to 19.6% (from 18.7%), reflecting tighter cost control and better production efficiency; gross profit held at RMB 10.9 million.

• Net loss narrowed by 36% to RMB 3.1 million (from RMB 4.8 million last year); basic loss per share at 10.07 RMB cents (vs 15.85 RMB cents).

• Operating cash flow negative RMB 9.6 million; cash and bank balance at RMB 10.1 million, with working capital supported by increased borrowings (RMB 62.5 million current, 11.8 million long-term).

• Inventories more than doubled to RMB 31.6 million as group stockpiled raw materials and finished orders awaiting shipment.

• Trade receivables stable, mostly with state-owned enterprises; collection risk deemed low despite slow payments.

• No dividend declared; group remains in cumulative loss position since 2017, prioritizing cash conservation.

• Industry outlook: upbeat on recovery in China’s steam turbine sector and “around 5%” annual sales growth target for FY2025, but acknowledges persistent operating challenges and continued audit disclaimer on going concern.