Link: https://links.sgx.com/1.0.0/corporate-announcements/3KCPVXCJ7341T1RH/2490fc3a233aca8f586d886e4fb499b065789a36a0bb626088108be5fdaa4dfe

Summary:

• Revenue surged 16.6% year-over-year to $71.1 million driven by higher customer demand in both contract manufacturing ($62.9M, +17.9%) and trading segments ($8.2M, +7.5%)

• Net profit plunged 59.3% to $0.5 million as gross margin contracted sharply to 14.5% from 18.6%, squeezed by unfavorable product mix and competitive pricing concessions to customers

• Earnings per share declined 60% to 0.6 cents from 1.5 cents, while net asset value per share slipped to 79.0 cents from 82.1 cents

• Contract manufacturing segment swung to an $86,000 profit from $710,000 previously, reflecting intense margin pressure despite 18% revenue growth

• Directors propose maintaining final dividend at 2.0 cents per share (one-tier tax exempt), payable February 13, 2026, consistent with prior year payout

• Operating environment remains challenging with rising statutory minimum wages in Malaysia and China, foreign exchange volatility from weaker Malaysian Ringgit, and indirect exposure to U.S. tariff uncertainties

• Cash position declined $7.2 million to $17.5 million due to higher working capital requirements from increased inventories ($28.3M vs $25.3M) and capital expenditures, with zero bank borrowings maintained

• Management outlook cautious, citing persistent cost pressures, intense competition, geopolitical tensions and supply chain disruptions, while focusing on automation investments and engineering differentiation