Annual financial statement
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MICRO-MECHANICS (HOLDINGS) LTD Condensed Interim Financial Statements For Fourth Quarter and Financial Year Ended 30 June 2026
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MICRO-MECHANICS (HOLDINGS) LTD Condensed Interim Financial Statements for Fourth Quarter and Financial Year Ended 30 June 2026 2 TABLE OF CONTENTS A. Condensed interim consolidated statement of profit or loss and other comprehensive income…………………… 3 B. Condensed interim statements of financial position (Group and Company)…………………………………….. 4 C. Condensed interim statements of changes in equity (Group and Company)……………………………………… 5 D. Condensed interim consolidated statement of cash flows……………………………………………………….. 7 E. Selected notes to the condensed interim consolidated financial statements…………………………………….. 9 F. Other information required by Listing Rule Appendix 7.2…………………………………………………… ….. 17
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MICRO-MECHANICS (HOLDINGS) LTD Condensed Interim Financial Statements for Fourth Quarter and Financial Year Ended 30 June 2026 3 A. CONDENSED INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE FOURTH QUARTER AND FINANCIAL YEAR ENDED 30 JUNE 2026 Group Q4 Year-to-date Note Apr to Jun 2026 S$ Apr to Jun 2025 S$ Change FY2026 S$ FY2025 S$ Change Revenue E4 21,598,967 16,715,483 29.2% 75,524,012 65,210,675 15.8% Cost of sales (10,375,145) (8,519,571) 21.8% (36,588,900) (32,992,161) 10.9% Gross profit 11,223,822 8,195,912 36.9% 38,935,112 32,218,514 20.8% Other income E5 147,186 77,371 90.2% 371,451 326,821 13.7% Distribution expenses (921,354) (688,020) 33.9% (3,462,499) (3,008,726) 15.1% Administrative expenses (2,426,844) (2,399,993) 1.1% (10,207,539) (9,531,672) 7.1% Other operating expenses (1,074,245) (881,245) 21.9% (3,851,570) (3,438,028) 12.0% Results from operating activities 6,948,565 4,304,025 61.4% 21,784,955 16,566,909 31.5% Finance income E5 48,306 55,714 (13.3%) 204,923 228,460 (10.3%) Finance expense E5 (101,823) (183,989) (44.7%) (439,276) (442,588) (0.7%) Net finance expense (53,517) (128,275) (58.3%) (234,353) (214,128) 9.4% Profit before tax E5 6,895,048 4,175,750 65.1% 21,550,602 16,352,781 31.8% Tax expense E6 (1,625,335) (995,199) 63.3% (5,641,726) (3,957,313) 42.6% Profit after tax 5,269,713 3,180,551 65.7% 15,908,876 12,395,468 28.3% Non-controlling interests – – – – – – Profit for the period/year 5,269,713 3,180,551 65.7% 15,908,876 12,395,468 28.3% Statement of Comprehensive Income Profit for the period/year 5,269,713 3,180,551 65.7% 15,908,876 12,395,468 28.3% Other comprehensive income: Item that is or may be reclassified subsequently to profit or loss: Foreign currency translation differences from foreign operations 232,381 (1,005,807) n.m. 1,254,576 (911,556) n.m. Item that will not be reclassified to profit or loss: Remeasurement on retirement benefits 47,167 (746) n.m. 47,167 (746) n.m. Related tax (1,118) 388 n.m. (1,118) 388 n.m. Other comprehensive income for the period/year, net of tax 278,430 (1,006,165) n.m. 1,300,625 (911,914) n.m. Total comprehensive income for the period/year 5,548,143 2,174,386 155.2% 17,209,501 11,483,554 49.9% Earnings per share: E7 Basic (SGD in cent) 3.79 2.29 65.5% 11.44 8.92 28.3% Diluted (SGD in cent) 3.79 2.29 65.5% 11.44 8.92 28.3% n.m. not meaningful
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MICRO-MECHANICS (HOLDINGS) LTD Condensed Interim Financial Statements for Fourth Quarter and Financial Year Ended 30 June 2026 4 B. CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION Note Group 30 Jun 26 S$ Group 30 Jun 25 S$ Company 30 Jun 26 S$ Company 30 Jun 25 S$ Non-current assets Property, plant and equipment E9 18,499,816 18,723,133 – – Right-of-use assets 2,475,660 2,023,633 – – Subsidiaries – – 29,095,544 29,095,544 Trade and other receivables E10 672,661 390,038 – – Deferred tax asset 13,676 13,636 – – 21,661,813 21,150,440 29,095,544 29,095,544 Current assets Inventories 4,889,283 3,135,468 – – Trade and other receivables E10 17,134,609 13,275,453 41,788 503,347 Cash and cash equivalents 30,137,938 23,283,594 9,729,657 9,354,448 52,161,830 39,694,515 9,771,445 9,857,795 Total assets 73,823,643 60,844,955 38,866,989 38,953,339 Shareholders’ equity Share capital E11 14,782,931 14,782,931 14,782,931 14,782,931 Reserves 42,661,268 34,430,260 22,876,576 23,276,494 57,444,199 49,213,191 37,659,507 38,059,425 Non-current liabilities Deferred tax liabilities 1,605,099 1,434,528 711,350 357,938 Provisions E13 829,287 865,399 – – Lease liabilities 1,045,142 923,763 – – 3,479,528 3,223,690 711,350 357,938 Current liabilities Trade and other payables E12 9,259,698 5,791,767 487,207 527,525 Lease liabilities 1,510,918 1,139,053 – – Current tax payable 2,129,300 1,477,254 8,925 8,451 12,899,916 8,408,074 496,132 535,976 Total liabilities 16,379,444 11,631,764 1,207,482 893,914 Total equity and liabilities 73,823,643 60,844,955 38,866,989 38,953,339
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MICRO-MECHANICS (HOLDINGS) LTD Condensed Interim Financial Statements for Fourth Quarter and Financial Year Ended 30 June 2026 5 C. CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY Share Capital Treasury Shares Foreign Currency Translation Reserve Accumulated remeasurement on retirement benefits Statutory Reserve Accumulated Profits Total S$ S$ S$ S$ S$ S$ S$ The Group As at 1 July 2024 14,782,931 – (2,096,610) 33,553 1,263,008 32,088,665 46,071,547 Total comprehensive income for the year: Profit for the year – – – – – 12,395,468 12,395,468 Other comprehensive income: Foreign currency translation differences – – (910,745) (811) – – (911,556) Remeasurement on retirement benefits, net of tax – – – (358) – – (358) Total other comprehensive income – – (910,745) (1,169) – – (911,914) Total comprehensive income for the year – – (910,745) (1,169) – 12,395,468 11,483,554 Transactions with owners, recognised directly in equity Final dividend of 3.0 cents per share (one-tier tax exempt) in respect of previous financial year – – – – – (4,170,955) (4,170,955) Interim dividend of 3.0 cents per share (one-tier tax exempt) in respect of current financial year – – – – – (4,170,955) (4,170,955) Total transactions with owners – – – – – (8,341,910) (8,341,910) As at 30 June 2025 14,782,931 – (3,007,355) 32,384 1,263,008 36,142,223 49,213,191 As at 1 July 2025 14,782,931 – (3,007,355) 32,384 1,263,008 36,142,223 49,213,191 Total comprehensive income for the year: Profit for the year – – – – – 15,908,876 15,908,876 Other comprehensive income: Foreign currency translation differences – – 1,257,753 (3,177) – – 1,254,576 Remeasurement on retirement benefits, net of tax – – – 46,049 – – 46,049 Total other comprehensive income – – 1,257,753 42,872 – – 1,300,625 Total comprehensive income for the year – – 1,257,753 42,872 – 15,908,876 17,209,501 Transactions with owners, recognised directly in equity Treasury shares acquired – (636,583) – – – – (636,583) Final dividend of 3.0 cents per share (one-tier tax exempt) in respect of previous financial year – – – – – (4,170,955) (4,170,955) Interim dividend of 3.0 cents per share (one-tier tax exempt) in respect of current financial year – – – – – (4,170,955) (4,170,955) Total transactions with owners – (636,583) – – – (8,341,910) (8,978,493) As at 30 June 2026 14,782,931 (636,583) (1,749,602) 75,256 1,263,008 43,709,189 57,444,199
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MICRO-MECHANICS (HOLDINGS) LTD Condensed Interim Financial Statements for Fourth Quarter and Financial Year Ended 30 June 2026 6 Share Capital S$ Treasury Shares S$ Accumulated Profits S$ Total S$ The Company As at 1 July 2024 14,782,931 – 20,728,191 35,511,122 Total comprehensive income for the year: Profit for the year – – 10,890,213 10,890,213 Total comprehensive income for the year – – 10,890,213 10,890,213 Transactions with owners, recognised directly in equity Final dividend of 3.0 cents per share (one-tier tax exempt) in respect of previous financial year – – (4,170,955) (4,170,955) Interim dividend of 3.0 cents per share (one-tier tax exempt) in respect of current financial year – – (4,170,955) (4,170,955) Total transactions with owners – – (8,341,910) (8,341,910) As at 30 June 2025 14,782,931 – 23,276,494 38,059,425 As at 1 July 2025 14,782,931 – 23,276,494 38,059,425 Total comprehensive income for the year: Profit for the year – – 8,578,575 8,578,575 Total comprehensive income for the year – – 8,578,575 8,578,575 Transactions with owners, recognised directly in equity Treasury shares acquired – (636,583) – (636,583) Final dividend of 3.0 cents per share (one-tier tax exempt) in respect of previous financial year – – (4,170,955) (4,170,955) Interim dividend of 3.0 cents per share (one-tier tax exempt) in respect of current financial year – – (4,170,955) (4,170,955) Total transactions with owners – (636,583) (8,341,910) (8,978,493) As at 30 June 2026 14,782,931 (636,583) 23,513,159 37,659,507
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MICRO-MECHANICS (HOLDINGS) LTD Condensed Interim Financial Statements for Fourth Quarter and Financial Year Ended 30 June 2026 7 D. CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASHFLOW FOR THE FINANCIAL YEAR ENDED 30 JUNE 2026 GROUP FY2026 S$ FY2025 S$ Cash flows from operating activities Profit for the year 15,908,876 12,395,468 Adjustments for: Depreciation of property, plant and equipment 5,835,041 6,162,677 Depreciation of investment property – 3,446 Gain on disposal of property, plant and equipment (3,999) (5,598) Property, plant and equipment written off 8,085 23,286 Doubtful debts written off 2,698 – Interest income (204,923) (228,460) Interest expense on lease liabilities 166,119 84,170 Inventories written off 73,452 165,655 Service cost from retirement benefits 28,663 29,827 Interest cost from retirement benefits 31,981 33,204 Unwind of discount on reinstatement costs 20,591 19,491 Tax expense 5,641,726 3,957,313 27,508,310 22,640,479 Changes in: Inventories (1,706,953) 545,282 Trade and other receivables (3,618,250) (1,862,307) Trade and other payables 1,650,461 657,786 Cash generated from operations 23,833,568 21,981,240 Retirement benefits paid (40,762) (40,127) Income tax paid (4,879,435) (3,660,202) Net cash from operating activities 18,913,371 18,280,911 Cash flows from investing activities Interest received 210,587 211,628 Purchase of property, plant and equipment (2,139,965) (1,445,912) Proceeds from disposal of property, plant and equipment 4,000 5,605 Net cash used in investing activities (1,925,378) (1,228,679) Cash flows from financing activities Deposits released – 14,578 Dividends paid (8,341,910) (8,341,910) Interest paid (166,119) (84,170) Payment of lease liabilities (1,472,017) (1,484,344) Treasury shares acquired (636,583) – Net cash used in financing activities (10,616,629) (9,895,846) Net increase in cash and cash equivalents 6,371,364 7,156,386 Cash and cash equivalents at beginning of year 23,132,344 16,409,971 Effect of exchange rate fluctuations on cash held 475,230 (434,013) Cash and cash equivalents at the end of year 29,978,938 23,132,344
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MICRO-MECHANICS (HOLDINGS) LTD Condensed Interim Financial Statements for Fourth Quarter and Financial Year Ended 30 June 2026 8 Note: (i) Cash and cash equivalent is derived from: Group 30 Jun 26 S$ Group 30 Jun 25 S$ Cash and cash equivalent balances 30,137,938 23,283,594 Less: Pledged cash placed with bank (159,000) (151,250) 29,978,938 23,132,344
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MICRO-MECHANICS (HOLDINGS) LTD Condensed Interim Financial Statements for Fourth Quarter and Financial Year Ended 30 June 2026 9 E. SELECTED NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS E1 Corporate information Micro-Mechanics (Holdings) Ltd. (the Company) is incorporated and domiciled in Singapore and its s hares are publicly traded on the Mainboard of the Singapore Exchange. These condensed interim statements show the consolidated financial results of the Company and its subsidiaries (the Group) for the fourth quarter and full year ended 3 0 June 2026. The Group primarily manufactures precision consumable tools and parts used in critical processing applications for the semiconductor industry. E2 Basis of preparation These statements have been prepared according to SFRS(I) 1 -34 Interim Financial Reporting issued by the Accounting Standards Council Singapore. The statements do not include all the information required for a complete set of financial statements. However, selected notes help explain events and transactions affecting the Group’s financial position and performance since the last audited statements for the year ended 30 June 2025. Other than the adoption of the amended standards in E2.2, there were no changes in accounting policies and methods of computation adopted in the statements for the current reporting period. The condensed financial statements are prepared on the historical cost basis, except for certain financial instruments, which are s tated at fair value. These statements are presented in Singapore dollars, the Company’s functional currency. E2.1 Use of estimates and judgements The preparation of condensed financial statements in conformity with SFRS(I) requires management to make judgements, estimates and assumptions about the future, including climate -related risks and opportunities, that affect the application of accounting po licies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively. E2.2 Changes in accounting policies New accounting standards and amendments The Group has applied Amendments to SFRS(I) 1 -21: Lack of Exchangeability for the first time f or the annual period beginning 1 July 2025: The application of the amendments to accounting standards does not have a material financial effect on the financial statements of the Group and of the Company for the financial year ended 30 June 2026. E3 Seasonal operations Seasonal/cyclical factors did not significantly affect the Group’s businesses during the financial year . E4 Revenue Group revenue reflects the sales of precision tools and parts and represents the value of goods invoiced to third parties. Revenue by segment Group Segment 4QFY2026 4QFY2025 % change FY2026 FY2025 % change S$ % S$ % S$ % S$ % Consumable tools 17,376,963 80.5% 13,057,879 78.1% 33.1% 60,397,896 80.0% 50,425,069 77.3% 19.8% Wafer Fabrication Equipment Parts 4,222,004 19.5% 3,657,604 21.9% 15.4% 15,126,116 20.0% 14,785,606 22.7% 2.3% Total 21,598,967 100.0% 16,715,483 100.0% 29.2% 75,524,012 100.0% 65,210,675 100.0% 15.8%
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MICRO-MECHANICS (HOLDINGS) LTD Condensed Interim Financial Statements for Fourth Quarter and Financial Year Ended 30 June 2026 10 A breakdown of sales and operating profit before tax Group Increase FY2026 FY2025 S$ S$ Sales reported for first half year 35,374,139 32,536,481 8.7% Operating profit after tax before deducting non- controlling interest reported for first half year 6,857,173 6,031,345 13.7% Sales reported for second half year 40,149,873 32,674,194 22.9% Operating profit after tax before deducting non- controlling interest reported for second half year 9,051,703 6,364,123 42.2% E5 Profit before tax The following items are included in the Group’s profit before tax: Group Q4 Year-to-date Apr to Jun 2026 S$ Apr to Jun 2025 S$ Change FY2026 S$ FY2025 S$ Change Income: Gain on disposal of property, plant and equipment – 3,384 (100.0%) 3,999 5,598 (28.6%) Rental income – 12 (100.0%) – 32,811 (100.0%) Government grant – Skill Redevelopment, Wage Credit and Capability Development Scheme etc 12,248 5,332 129.7% 19,216 29,171 (34.1%) Others 134,938 68,643 96.6% 348,236 259,241 34.3% Expenses: Depreciation of property, plant and equipment 1,055,441 1,184,958 (10.9%) 4,321,654 4,738,350 (8.8%) Depreciation of investment property – – – – 3,446 (100.0%) Depreciation of right-of-use assets 380,221 351,399 8.2% 1,513,387 1,424,327 6.3% Inventories written off 20,403 26,891 (24.1%) 73,452 165,655 (55.7%) Property, plant and equipment written off – 7,734 (100.0%) 8,085 23,286 (65.3%) Doubtful debts written off – – – 2,698 – n.m. Finance income: Interest income from banks and others 48,306 55,714 (13.3%) 204,923 228,460 (10.3%) Finance expense: Bank charges 23,728 22,974 3.3% 90,964 92,326 (1.5%) Unwind of discount on restoration cost provision 5,254 4,974 5.6% 20,591 19,491 5.6% Interest expense on lease liabilities 42,949 15,347 179.9% 166,119 84,170 97.4% Foreign currency exchange losses, net 29,892 140,694 (78.8%) 161,602 246,601 (34.5%) n.m. not meaningful
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MICRO-MECHANICS (HOLDINGS) LTD Condensed Interim Financial Statements for Fourth Quarter and Financial Year Ended 30 June 2026 11 E6 Tax expense Q4 Year-to-date Apr to Jun 2026 S$ Apr to Jun 2025 S$ FY2026 S$ FY2025 S$ Current tax expense Current period/year 1,703,065 1,181,863 5,431,642 4,047,340 Changes in estimates related to prior years 24,613 (67,986) 64,077 (79,679) 1,727,678 1,113,877 5,495,719 3,967,661 Deferred tax expense Origination and reversal of temporary differences (96,142) (146,624) 139,292 (41,018) Changes in estimates related to prior years (6,201) 27,946 6,715 30,670 (102,343) (118,678) 146,007 (10,348) Tax expense 1,625,335 995,199 5,641,726 3,957,313 E7 Earnings per share The calculation of the basic earnings per share is based on: Group Q4 Year-to-date 30 Jun 2026 30 Jun 2025 30 Jun 2026 30 Jun 2025 Profit for the period/year 5,269,713 3,180,551 15,908,876 12,395,468 Weighted average number of ordinary shares (excluding treasury shares) in issue for calculation of basic and diluted earnings per share during the period1 138,928,315 139,031,881 139,005,629 139,031,881 Basic earnings per share (cents) 3.79 2.29 11.44 8.92 1The weighted average number of ordinary shares outstanding during the period/year is the number of ordinary shares outstanding at the beginning of the period/year , adjusted by the number of ordinary shares bought back or issued during the period multiplied by a time-weighting factor. There is no difference between the basic earnings per ordinary share and the diluted earnings per ordinary share, because there are no potentially dilutive ordinary shares at the end of either period/year . E8 Net Asset Value Group Company 30 Jun 26 30 Jun 25 30 Jun 26 30 Jun 25 Net Asset Value per ordinary share (cents) 41.38 35.40 27.13 27.37 The net asset value per ordinary share is calculated on net assets of S$ 57.4 million (30 June 2025: S$49.2 million) and 138,816,881 (30 June 2025: 139,031,881) shares in issue excluding treasury shares at the end of the current financial year reported on/immediately preceding financial year.
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MICRO-MECHANICS (HOLDINGS) LTD Condensed Interim Financial Statements for Fourth Quarter and Financial Year Ended 30 June 2026 12 E9 Property, plant and equipment During the financial year ended 30 June 2026, the Group acquired property, plant and equipment at an aggregate cost of S$3,759,181 (30 June 2025: S$1,222,709). The amount of property, plant and equipment disposed for the financial year ended 30 June 2026 was S$8,086 (30 June 2025: S$23,293). E10 Trade and other receivables Group Company 30 Jun 26 S$ 30 Jun 25 S$ 30 Jun 26 S$ 30 Jun 25 S$ Trade receivables 16,182,547 12,454,636 – – Other receivables 33,170 29,057 8,400 23,477 Deposits 413,627 390,038 – – Amount due from a subsidiary – – – 460,311 Financial assets at amortised cost 16,629,344 12,873,731 8,400 483,788 Advances to suppliers 400,921 32,974 – – Prepayments 678,144 681,414 33,388 19,559 GST receivables 94,371 72,937 – – Forward exchange contracts 4,490 4,435 – – Trade and other receivables 17,807,270 13,665,491 41,788 503,347 Comprise of: Non-current 672,661 390,038 – – Current 17,134,609 13,275,453 41,788 503,347 17,807,270 13,665,491 41,788 503,347 The Group provides customers with credit terms ranging between 30 and 90 days. The Group’s business activities and credit terms did not change during the financial year. There were no trade receivables classified under non-current assets as at 30 June 2026. The S$672,661 (30 June 2025: S$390,038) classified as non-current assets generally represented deposits for factory rental, utilities and advances to suppliers to buy equipment. The aging profile of the Group’s trade receivables and the Company’s amount due from a subsidiary as at 30 June 2026 and 30 June 2025 were: Group Company 30 Jun 26 S$ 30 Jun 25 S$ 30 Jun 26 S$ 30 Jun 25 S$ Current 13,054,383 9,729,689 – – Past due 1-30 days 2,748,412 2,283,355 – – Past due 31-60 days 309,357 406,081 – – Past due more than 60 days 70,395 35,511 – 460,311 16,182,547 12,454,636 – 460,311 During the financial year ended 30 June 2026, the Group wrote off S$2 .7k (30 June 2025: Nil) in bad debts. The outstanding amounts over 60 days increased because of late customer buy-offs. Historically, the outstanding amount over 90 days has been minimal. The Board has no immediate concerns on the recoverability of trade and other receivables as at 30 June 2026.
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MICRO-MECHANICS (HOLDINGS) LTD Condensed Interim Financial Statements for Fourth Quarter and Financial Year Ended 30 June 2026 13 E11 Share Capital Group and Company 30 Jun 2026 30 Jun 2025 Group and Company Number of shares S$ Number of shares S$ Fully paid ordinary shares with no par value At 1 July and 30 June 139,031,881 14,782,931 139,031,881 14,782,931 There was no movement in the issued and paid-up capital of the Company since 30 June 2025. There were no outstanding convertibles as at 30 June 2026 (30 June 2025: Nil). The Company held 215,000 treasury shares as at 3 0 June 2026 (30 June 2025: Nil). There was no sale, transfer, disposal, cancellation and use of treasury shares during the financial year ended 30 June 2026. E12 Trade and other payables Group Company 30 Jun 26 S$ 30 Jun 25 S$ 30 Jun 26 S$ 30 Jun 25 S$ Current Trade payables 1,461,720 797,405 – – Other payables 2,542,858 623,992 52,507 55,572 Amount owing to a subsidiary – – – 878 Accrued expenses 5,073,203 4,252,881 434,700 471,075 Advances from customers 148,922 116,996 – – Forward exchange contracts 32,995 493 – – 9,259,698 5,791,767 487,207 527,525 E13 Provisions Group 30 Jun 26 S$ 30 Jun 25 S$ Non-current Reinstatement costs 385,623 365,032 Retirement benefits 443,664 500,367 829,287 865,399 The Group has made a provision to reinstate the right-of-use assets to the original condition at end of the lease term. The provision is due within 1 to 3 years (30 June 2025: 1 to 2 years) and is classified as non- current liabilities. E14 Borrowings The Group does not have any bank borrowings as at 30 June 2026 and 30 June 2025.
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MICRO-MECHANICS (HOLDINGS) LTD Condensed Interim Financial Statements for Fourth Quarter and Financial Year Ended 30 June 2026 14 E15 Financial assets and financial liabilities Measurement of fair values Some of the Group’s accounting policies and disclosures require the measurement of fair values, for financial and non-financial assets and liabilities. In measuring the fair value of an asset or a liability, the Group uses observable market data as far as possible. Fair values are categorised into different levels, based on the inputs in the following valuation techniques: Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). Accounting classifications and fair values The carrying amounts and fair values of financial assets and financial liabilities are as follows. It does not include fair value information for financial assets and financial liabilities not measured at fair value as the carrying amount is a reasonable approximation of fair value. Group Company 30 Jun 2026 30 Jun 2025 30 Jun 2026 30 Jun 2025 S$ S$ S$ S$ Financial assets measured at amortised cost Trade and other receivables ** 16,629,344 12,873,731 8,400 483,788 Cash and bank balances 30,137,938 23,283,594 9,729,657 9,354,448 46,767,282 36,157,325 9,738,057 9,838,236 Financial assets measured at fair value Forward exchange contracts – asset 4,490 4,435 – – Financial liabilities measured at amortised cost Trade and other payables * (4,825,998) (2,047,200) (145,207) (134,525) Financial liabilities measured at fair value Forward exchange contracts – liability (32,995) (493) – – * Excluding advances from customers, payroll-related accruals, withholding tax payables and forward exchange contracts ** Excluding advances to suppliers, prepayments, GST receivables and forward exchange contracts. Valuation techniques The fair values of forward exchange contracts are based on financial institutions quotes. Similar contracts are traded in an active market and the quotes reflect the actual transactions in similar instruments. This instrument is categorised under Level 2 of the fair value hierarchy.
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MICRO-MECHANICS (HOLDINGS) LTD Condensed Interim Financial Statements for Fourth Quarter and Financial Year Ended 30 June 2026 15 E16 Segment reporting The Group has three reportable segments (30 June 2025: three). These strategic business units are managed separately because of different marketing and management requirements. For each of the strategic business units, the Group’s Executive Directors review internal management reports regularly. The following describes the operations in each of the Group’s reportable segments: • Consumable tools – focus on the design and manufacturing of miniature consumable tools for the assembly and testing of semiconductors; • Wafer fabrication equipment (“WFE”) parts – focus primarily on making parts for semiconductor wafer fabrication equipment and • Corporate and others – pertaining to corporate functions and others. For FY2027, the Group will refine the description of the “Consumable Tools” segment to better reflect its focus on advanced semiconductor packaging, assembly and testing processes, and to rename the “Wafer Fabrication Equipment (“WFE”) Parts” segment to “Build-to-Print Precision Components” to better reflect the Group’s growing focus on precision components for WFE and other high-tech industries. • Consumable Tools – focus on the design and manufacturing of consumable tools that reduce defects and improve yields in advanced semiconductor packaging, assembly and testing processes; • Build-to-Print Precision Components – focus on the manufacturing of precision components for critical production processes in the wafer-fabrication equipment (“WFE”) and other high-tech industries and • Corporate and others – pertaining to corporate functions and others. The change is intended to better reflect how the Group creates value for its c ustomers, aligning segment reporting with its competitive positioning and strategic direction rather than the end-market served. There is no change to the underlying operations, management structure or reportable segments. The change relates only to the segment descriptions and naming convention. Comparative information will be restated accordingly if the change is adopted. Information regarding the results of each reportable segment is included below. Performance is measured on segment profit before tax, as included in the internal management reports. Operating Segments Financial year ended 30 June 2026 Consumable tools S$ WFE parts S$ Corporate & Others S$ Total S$ External revenue 60,397,896 15,126,116 – 75,524,012 Inter-segment revenue 22,767 975 (23,742) – Total revenue 60,420,663 15,127,091 (23,742) 75,524,012 Results from operating activities 22,119,310 653,527 (987,882) 21,784,955 Finance income 59,212 91,020 54,691 204,923 Finance expense (321,724) (94,800) (22,752) (439,276) Tax expense (5,111,358) (4,495) (525,873) (5,641,726) Profit/(loss) for the year 16,745,440 645,252 (1,481,816) 15,908,876 Segment assets 49,841,601 14,210,597 9,771,445 73,823,643 Segment liabilities 11,287,859 3,884,102 1,207,483 16,379,444 Other segment information: Capital expenditure 1,496,821 2,262,360 – 3,759,181 Depreciation 3,936,014 1,899,027 – 5,835,041 Non-current assets 15,606,059 6,055,754 – 21,661,813
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MICRO-MECHANICS (HOLDINGS) LTD Condensed Interim Financial Statements for Fourth Quarter and Financial Year Ended 30 June 2026 16 Financial year ended 30 June 2025 Consumable tools S$ WFE parts S$ Corporate & Others S$ Total S$ External revenue 50,425,069 14,785,606 – 65,210,675 Inter-segment revenue 2,239 734 (2,973) – Total revenue 50,427,308 14,786,340 (2,973) 65,210,675 Results from operating activities 16,364,728 1,130,991 (928,810) 16,566,909 Finance income 53,342 80,707 94,411 228,460 Finance expense (373,217) (36,987) (32,384) (442,588) Tax expense (3,659,466) (1,506) (296,341) (3,957,313) Profit/(loss) for the year 12,385,387 1,173,205 (1,163,124) 12,395,468 Segment assets 38,936,026 12,511,445 9,397,484 60,844,955 Segment liabilities 8,349,382 2,389,346 893,036 11,631,764 Other segment information: Capital expenditure 1,172,269 50,440 – 1,222,709 Depreciation 4,218,306 1,947,817 – 6,166,123 Non-current assets 15,536,195 5,614,245 – 21,150,440 Geographical information Revenue comes from customers in each geographical location. Segment non- current assets are based on the geographical location of the assets. Group FY2026 FY2025 S$ S$ Revenue Singapore 5,987,704 5,724,953 Malaysia 13,967,862 12,138,393 Philippines 4,142,735 3,196,138 People’s Republic of China 25,827,987 20,400,917 Taiwan 4,128,387 3,949,062 United States of America 16,037,473 14,578,365 Others 5,431,864 5,222,847 75,524,012 65,210,675 Group 30 Jun 26 30 Jun 25 S$ S$ Non-current assets Singapore 8,178,616 7,783,625 Malaysia 3,346,270 3,718,544 Philippines 995,652 1,389,137 People’s Republic of China 3,085,521 2,644,889 United States of America 6,055,754 5,614,245 21,661,813 21,150,440 Major customers No customers contribute to more than 10% to Group revenue . in the current financial year. In the previous financial year, revenues from one customer from the Group’s Wafer Fabrication Equipment Parts segments amounting to S$6. 3 million of the Group’s total revenue. E17 Subsequent events No subsequent events led to adjustments for this set of statements.
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MICRO-MECHANICS (HOLDINGS) LTD Condensed Interim Financial Statements for Fourth Quarter and Financial Year Ended 30 June 2026 17 F. OTHER INFORMATION REQUIRED BY LISTING RULE APPENDIX 7.2 F1 Review The condensed interim consolidated statement of financial position of Micro- Mechanics (Holdings) Ltd and its subsidiaries at 30 June 2026 and the related condensed interim consolidated profit or loss and other comprehensive income, condensed interim consolidated statement of changes in equity and condensed interim consolidated statement of cash flows for the period then ended and certain explanatory notes have not been audited or reviewed. F1.1 Where the figures have been audited or reviewed, the auditors’ report (including any qualifications or emphasis of a matter). Not applicable. F1.2 Where the latest financial statements are subject to an adverse opinion, qualified opinion or disclaimer of opinion:— (a) Updates on the efforts taken to resolve each outstanding audit issue. The audited financial statements for the year ended 30 June 2025 were not subjected to an adverse opinion, qualified opinion or disclaimer of opinion. (b) Confirmation from the Board that the impact of all outstanding audit issues on the financial statements have been adequately disclosed. Not applicable. F2 Review of Group Performance REVIEW OF PROFIT AND LOSS Group Revenue REVENUE 1Q 2Q 3Q 4Q Full Year FY2026 S$16,715,346 S$18,658,793 S$18,550,906 S$21,598,967 S$75,524,012 FY2025 S$16,241,899 S$16,294,582 S$15,958,711 S$16,715,483 S$65,210,675 % growth 2.9% 14.5% 16.2% 29.2% 15.8% Group revenue for the three months ended 30 June 2026 (“4QFY2026”) increased 29.2% year-on-year (“yoy”) to S$21.6 million from S$16.7 million for 4QFY2025. On a quarter-on-quarter (“qoq”) basis, Group revenue increased by 16.4% from S$18.6 million in 3QFY2026. For the financial year ended 30 June 2026 (“FY2026”), Group revenue grew 15.8% yoy to S$75.5 million (FY2025: S$65.2 million). Revenue by segment Group Segment 4QFY2026 4QFY2025 % change FY2026 FY2025 % change S$ % S$ % S$ % S$ % Consumable tools 17,376,963 80.5% 13,057,879 78.1% 33.1% 60,397,896 80.0% 50,425,069 77.3% 19.8% Wafer Fabrication Equipment Parts 4,222,004 19.5% 3,657,604 21.9% 15.4% 15,126,116 20.0% 14,785,606 22.7% 2.3% Total 21,598,967 100.0% 16,715,483 100.0% 29.2% 75,524,012 100.0% 65,210,675 100.0% 15.8% For 4QFY2026, sales from the consumable tools segment increased 33 .1% yoy to S$17.4 million. On a qoq basis, sales increased by 20.7% from S$14.4 million for 3QFY2026 driven by stronger customer demand.
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MICRO-MECHANICS (HOLDINGS) LTD Condensed Interim Financial Statements for Fourth Quarter and Financial Year Ended 30 June 2026 18 Wafer Fabrication Equipment (“WFE”) sales grew 15.4% yoy and 1.7% qoq to S$4.2 million for 4QFY2026, supported by higher bookings and continued recovery from material delays and shortages during 1QFY2026. The WFE segment primarily serves customers in the USA and Singapore. For FY2026, consumable tools sales grew 19 .8% yoy to S$60.4 million, while the WFE segment sales grew 2.3% yoy to S$15.1 million. Consumable tools remained the main business segment, accounting for 80.5% of revenue for 4QFY2026 and 80.0% for FY2026. By geographical segments, China remained the Group’s largest market, contributing 34. 2% to Group revenue for FY2026. Sales in China rose 26.6% yoy to S$25.8 million for FY2026. Sales from the USA grew 10.0% yoy to S$16.0 million for FY2026, representing 21.2% of Group revenue. In Malaysia, sales grew 15. 1% yoy to S$14 .0 million for FY2026, representing 18. 5% of Group revenue, while sales in Singapore increased 4.6% yoy to S$6.0 million, accounting for 7.9% of Group revenue. Sales in the Philippines rose 2 9.6% yoy to S$ 4.1 million for FY2026, while sales in Taiwan rose 4.5% to S$4.1 million for FY2026. Gross Profit (GP) Margin Group GP Margin 1Q 2Q 3Q 4Q Full Year FY2026 51.5% 51.1% 51.6% 52.0% 51.6% FY2025 50.7% 47.5% 50.5% 49.0% 49.4% Gross profit for 4QFY2026 grew 36.9% yoy to S$11.2 million. Gross profit margin improved to a 17-quarter high of 52.0% for 4QFY2026 compared to 49.0% for 4QFY2025. Gross profit margin for FY2026 rose to 51. 6% from 49.4% in the prior corresponding period. M argin expansion was driven by operating leverage, stronger customer engagement, continued development of new products, and enhanced manufacturing processes for existing products. Other income, Distribution Expenses, Administrative Expenses, Other Operating Expenses and Net Finance Expense Other income, Distribution Expenses, Administrative Expenses, Other Operating Expenses and Net Finance Expense 1Q 2Q 3Q 4Q Full Year FY2026 S$4,190,746 25.1% S$4,438,449 23.8% S$4,426,541 23.9% S$4,328,774 20.0% S$17,384,510 23.0% % of sales FY2025 % of sales S$4,080,841 25.1% S$3,836,686 23.5% S$3,928,044 24.6% S$4,020,162 24.1% S$15,865,733 24.3% Other income increased by 90.2% yoy to S$147k for 4QFY2026 (4QFY2025: S$77k) and 13.7% yoy to S$371k for FY2026 (FY2025: S$327k) mainly due to higher scrap sales. Distribution expenses increased by 33.9% yoy to S$921k for 4QFY2026 (4QFY2025: S$688k) and 15. 1% yoy to S$3.5 million for FY2026 (FY2025: S$3.0 million) primarily attributable to higher sales incentives programme payouts and more engagement with customers. Administrative expenses increased by 1.1% yoy to S$2. 4 million for 4QFY2026 (4QFY2025: S$2.4 million) and 7.1% yoy to S$10.2 million for FY2026 (FY2025: S$9.5 million). Excluding a one-off reversal of prior years’ bonus accruals of approximately S$0.4 million, administrative expenses would have increased by 19. 4% yoy for 4QFY2026, primarily due to increased bonus payments associated with improved performance , software subscriptions and increased spending to strengthen IT systems and cybersecurity. Other operating expenses increased by 21.9% yoy to S$1.1 million for 4QFY2026 (4QFY2025: S$0.9 million) and 12.0% yoy to S$3.9 million for FY2026, (FY2025: S$3.4 million) due to higher headcount, and additional purchases of engineering fixtures and overseas customers visits.
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MICRO-MECHANICS (HOLDINGS) LTD Condensed Interim Financial Statements for Fourth Quarter and Financial Year Ended 30 June 2026 19 Net finance expense decreased by 58.3% yoy to S$54k for 4QFY2026 (4QFY2025: S$128k) due to lower foreign exchange loss and increased by 9.4% yoy to S$234k for FY2026 (FY2025: S$214k), due to higher interest expense on lease liabilities and lower interest income from lower interest rates, offset by lower foreign exchange loss. In aggregate, the Group’s administrative, distribution and other operating expenses (net of other income) as a percentage of revenue , lowered to 2 3.0% for FY2026 as compared to 2 4.3% for FY2025. The Group remains focused on disciplined cost management as a foundation for sustainable growth. Profit before Tax and Net Profit Net Profit after tax 1Q 2Q 3Q 4Q Full Year FY2026 S$3,159,588 S$3,697,585 S$3,781,990 S$5,269,713 S$15,908,876 FY2025 S$3,076,977 S$2,954,368 S$3,183,572 S$3,180,551 S$12,395,468 % growth 2.7% 25.2% 18.8% 65.7% 28.3% Group profit before tax increased 65.1% yoy to S$6.9 million for 4QFY2026 from S$4.2 million for 4QFY2025. Income tax expense rose 63.3% yoy to S$1. 6 million for 4QFY2026, from S$1 .0 million for 4QFY2025. This increase was mainly due to improved profitability, as well as withholding tax incurred on dividends remitted from subsidiaries. The effective tax rate decreased to 23.6% for 4QFY2026, compared to 23.8% in the prior year. After deducting income tax expenses, net profit increased 6 5.7% yoy to S$5.3 million for 4QFY2026, from S$3.2 million for 4 QFY2025. Net profit margin stood at 2 4.4% for 4 QFY2026 as compared to 19. 0% for 4 QFY2025. Group earnings per share increased 65.5% yoy to 3.79 cents for 4QFY2026. Dividend Payment The Gr oup has a formal dividend policy to distribute not less than 40% of its after -tax annual earnings, after considering financial performance, projected cash flow, capital requirements for business growth, and economic or other conditions. In line with this policy, the Board of Directors is recommending a final dividend of 3.0 cents per share (one tier tax- exempt) for 2HFY2026 (2HFY2025: 3.0 cents per share). The dividend, amounting to S$4. 2 million, if approved by shareholders at the Annual General Meeting to be held on 26 October 2026, will be paid on 17 November 2026. Together with the interim dividend of 3.0 cents per share (one tier tax -exempt) paid on 19 February 202 6, the Group’s total dividend for FY2026 would be 6.0 cents per share (one tier tax-exempt). The total payout for FY2026 will amount to S$8.3 million, representing a dividend payout ratio of 52.4% for FY2026. Other comprehensive income Foreign currency translation differences from foreign operations resulted in a gain of S$ 232k for 4QFY2026 (4QFY2025: loss of S$1.0 million). Appreciation of the Chinese yuan and US dollar against the Singapore dollar in 4QFY2026 by 2.0% and 0.4% respectively, compared to the corresponding period in which these currencies depreciated against the Singapore dollar by 5.0% and 4.8% respectively. Foreign currency translation differences from foreign operations resulted in a gain of S$1. 3 million for FY2026 (FY2025: loss of S$0.9 million). The variance was primarily attributable to the appreciation of the Malaysian ringgit, US dollar and Chinese yuan against the Singapore dollar in FY2026 by 5.1%, 1.6% and 6.8% respectively, compared to the corresponding period in which Malaysian ringgit appreciated against the Singapore dollar by 5. 1% while Chinese yuan and US dollar depreciated against the Singapore dollar by 6 .5% and 6.1% respectively. Balance Sheet The Group maintains a strong balance sheet . As at 30 June 2026, it had a balance sheet with total assets of S$73. 8 million, shareholders’ equity of S$57. 4 million, cash and cash equivalents of S$30.1 million and no bank borrowings.
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MICRO-MECHANICS (HOLDINGS) LTD Condensed Interim Financial Statements for Fourth Quarter and Financial Year Ended 30 June 2026 20 Long Term Assets As at 3 0 June 2026, non-current assets in creased to S$21.7 million as compared to S$21.2 million as at 30 June 2025. Trade Receivables Trade Receivables As at end of 1Q As at end of 1H As at end of 3Q As at end of 2H FY2026 S$12,274,636 S$13,187,736 S$14,138,427 S$16,182,547 > 90 days 0.2% 0.09% 0.2% 0.03% Write-off – S$2,698 – – FY2025 S$11,308,062 S$10,948,413 S$11,313,828 S$12,454,636 > 90 days 0.1% 0.04% 0.1% 0.01% Write-off – – – – Trade receivables as at 3 0 June 2026 increased to S$16.2 million from S$12.5 million as at 30 June 2025, in line with higher revenue. Of this, S$ 5k was outstanding for 90 days or more (30 June 2025: S$2k). Bad debts written off amounts to S$3k for FY2026 (FY2025: Nil) . The Group closely monitors receivables to ensure timely collections. Trade & Other Payables As at 3 0 June 2026, trade payables total led S$1.5 million (30 June 2025: S$0.8 million ) with minimal amount outstanding for 30 days or more. Non-trade payables and accrued expenses increased to S$2.5 million and S$5.1 million as at 30 June 2026 (30 June 2025: S$0.6 million and S$4.3 million). Long term liabilities As at 30 June 2026, the deferred tax liabilities was S$1.6 million compared to S$1.4 million as at 30 June 2025. Inventory The Group manages inventory to avoid over-stocking and minimise write-offs. As at 30 June 2026, inventory stood at S$4.9 million (30 June 2025: S$3.1 million), representing 6.5 % of sales for FY2026 (30 June 2025: 4.8%). The increase was mainly due to higher material costs and longer lead times, which led the Group to build up inventory to support the fulfilment of confirmed backlog orders. Inventory write -offs for FY2026 totalled S$73k, compared to S$166k for FY2025. Capital Expenditure Capital Expenditure 1Q 2Q 3Q 4Q Full Year FY2026 S$345,972 S$453,194 S$463,135 S$2,496,880 S$3,759,181 % of sales 5.0% FY2025 S$609,773 S$167,959 S$212,065 S$232,912 S$1,222,709 % of sales 1.9% Group capital expenditure for FY2026 amounted to S$3 .8 million, comprising S$483k for new hardware and software, S$3.0 million for plant and equipment and S$285k for building improvement. Cash Flow Analysis The Group generated net cash from operations of S$ 18.9 million for FY2026 (FY2025 : S$ 18.3 million). After deducting net cash used for investing activities of S$1.9 million and net cash used in financing activities of S$10.6 million, the Group reported FY2026 cash and bank balances of S$30.1 million. Of this, S$159k represented pledged deposits.
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MICRO-MECHANICS (HOLDINGS) LTD Condensed Interim Financial Statements for Fourth Quarter and Financial Year Ended 30 June 2026 21 F3. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results. No forecast or prospect statement had been issued for the current financial reporting period. There is no material variance from the Group’s previous financial period commentary under Section F4. F4. A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months. Sector performance and outlook The global semiconductor industry recorded strong sales growth for 4QFY2026 amid strong AI, computing, and memory demand. According to the Semiconductor Industry Association (“SIA”), global sales increased 134. 2% yoy to US$ 151.9 billion in June 2026, reaching an all -time high. The World Semiconductor Trade Statistics (“WSTS”) expects global sales to grow 108.1% yoy to almost US$1.7 trillion* in 2026. In line with this trend and the Company’s Five -Star Factory Initiative, the Group’s revenue was up 29.2% yoy to S$21.6 million, gross profit up 3 6.9% to S$11. 2 million, and profit before tax up 6 5.1% to S$6. 9 million for 4QFY2026. This growth contributed to the Group’s strongest financial year performance since FY2022, as revenue for FY2026 rose 15.8% yoy to S$75.5 million, gross profit rose 20.8% to S$38.9 million, and profit before tax rose 31.8% to S$21.6 million. Entering FY2027, the Group continues to see strong demand across its key markets and remains optimistic about the industry's prospects . It is also closely monitoring the Middle East conflict and its implications for global macroeconomic conditions, supply chains, cost of materials, and customer demand. Notwithstanding these factors, the Group remains focused on enabling customer success with improved lead times and on-time delivery. The Group also believes that strategic investment through the industry cycle is key to enhancing its long-term competitive position. *Note: Group revenue may not directly correlate with industry growth projections because the Group’s products are used in the equipment and processes to manufacture semiconductors. Business outlook and advancing the mid-term strategy with the Five-Star Factory initiative From nano-level wafer fabrication to advanced packaging, semiconductor processing is increasingly complex. To support this trend, the Group’s customers need suppliers that are capable of not only greater accuracy and repeatability, but also the ability to meet cleanliness, trace-metals, process measurement and a host of other stringent requirements. At the same time, geopolitical issues are driving the chip industry to build more localised supply chains that include suppliers with identical capabilities in multiple locations. The Group believes there may only be a handful of suppliers capable of meeting these emerging and challenging requirements. To that end, the Group’s goal is to become a Next-Generation Supplier where it is trusted globally for fast, flawless and scalable precision -machining, and valued for its technical contributions to the industry and commitment to people and process excellence. Entering FY2027, the Group has launched a 5-year mid-term growth strategy to achieve this goal. The Group targets to: - Double revenue from FY2026 to ≥S$150 million - Maintain gross profit margin of >50% - Limit overhead costs to <20% of revenue This will be achieved through focused execution on three priority areas, namely: • Strengthening customer support with expanded operations and localised capabilities: The Group will strengthen its local presence across key semiconductor markets to provide faster, more effective customer support. This includes expanding operations in China and Malaysia where customers and the industry continue to grow, and expanding physical presence in Taiwan to provide stronger local support. • Next generation processing: The Group will invest in next-generation equipment and processes to enhance its capabilities in process-critical applications.
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MICRO-MECHANICS (HOLDINGS) LTD Condensed Interim Financial Statements for Fourth Quarter and Financial Year Ended 30 June 2026 22 • Smart and secure manufacturing: The Group will increase data-driven decision making to improve operational effectiveness and support long- term innovation, and develop ISO 27001-aligned cybersecurity capabilities to strengthen its position as a trusted supplier of choice. The strategy is supported by the Group’s Five-Star Factory initiative, which builds excellence in areas fundamental to business performance. These include: • Customer Engagement and Support : With five factories around the world, the Group’s aim is to provide customers with fast, effective and local support. • High Performance Teams : The Group recognises that attracting, developing and retaining talent is critical to business success. At the Annual General Meeting in October 2025, shareholders approved the adoption of a Performance Share Plan, designed to reward high -performing employees with shares and reinforce the Company’s ownership culture. The Group completed share buyback of 188.7k shares for S $587k for 4QFY2026 and in total 215k shares for S$637k for FY2026 to reward key employees as part of its Performance Share Plan. The Group remains committed to investing in people as a driver of sustainable growth. • Workplace Efficiency and Safety : The Group continues to work with each factory to improve the way workplaces are organised, become more productive, and remain clean, safe and environmentally responsible. Based on a comprehensive internal audit, all factories achieved a 5-star rating in the Group’s Five -Star 8S programme for 4QFY2026. • Finance and IT Excellence: Strong financial discipline, transparency, and effective governance (a focus on both compliance and results) create long -term business excellence. Digital, cybersecure processes ensure high‑quality data and empower employees to make timely, reliable, data‑driven decisions. During FY2026, the Group continued its cybersecurity initiative which includes cloud migration and enhanced security protocols to proactively align with evolving customer and regulatory expectations. • Operational Excellence: Fast, flawless and cost -effective manufacturing comes from robust processes, data- based decision making and a focus on operational excellence. During 4 QFY2026, the Group continued efforts to improve planning, streamline manufacturing and minimise inventory. As at 30 June 2026, inventory totalled S$4.9 million (30 June 2025: S$3.1 million) representing 6.5% of sales (30 June 2025: 4.8%). Inventory written off for 4QFY2026 totalled S$20k, compared to S$27k for 4QFY2025. • Innovation Excellence : Beyond enhancing day‑to‑day operations, the Group continues to promote fresh thinking, ingenuity and the adoption of new technologies to drive product and process improvements. The Group’s R&D team continues to develop new elastomers for advanced packagi ng applications. For WFE, the Group completed a year‑long project to evaluate and purchase a new machine designed to improve machining quality and efficiency, with the first installation scheduled at its US plant in 1QFY2027. In addition, the Group will continue implementing its physics-based programming technology that can improve material removal rates by 10-30% on long-cycle build-to-print and WFE parts. Practicing financial discipline and strong corporate governance Success in business is a result of building excellence over the long term and practicing good governance. The Group views governance not as a compliance exercise, but as a framework that aligns its people, from the boardroom to the shop floor, around a shared purpose: creating and protecting value for all its stakeholders. At Micro-Mechanics, maximising profit or short -term shareholder returns is not the primary objective. By prioritising customers and caring deeply for employees, the Group believes strong and sustainable financial performance will follow as a natural outcome. In August 2026, the Group placed 32 nd out of 452 companies in the 2026 Singapore Governance and Transparency Index (SGTI). The strategy is further supported by the Group’s efforts to manage capital responsibly and purposefully. As at 30 June 2026, the Group’s balance sheet included cash and bank balances of S$30.1 million and no bank borrowings. This strong net cash position allows the Group to pay consistent dividends, consider share buybacks, and fund capital investments.
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MICRO-MECHANICS (HOLDINGS) LTD Condensed Interim Financial Statements for Fourth Quarter and Financial Year Ended 30 June 2026 23 In addition, the Group seeks to allocate capital strategically to growth areas, including product development for Advanced Packaging and equipment for WFE manufacturing. During FY2026, the Group invested S$3.8 million in new hardware and software, plant machinery, and factory renovation. The Group expects to increase growth investments to S$12.0 million for FY2027 to effectively execute against the mid -term growth strategy. This will primarily support the expansion of its manufacturing footprint and investment in next -generation equipment and process capabilities. For FY2026, the Board has recommended a final dividend of 3.0 cents per share totalling S$4.2 million. Excluding share price appreciation, the Group’s total dividend distribution since its Initial Public Offering in 2003 translates into a return of over 700% for shareholders who invested at this time. F5. Dividend Information (a) Current Financial Period Reported on Any dividend recommended for the current financial period reported on? Yes. Name of Dividend Final Dividend Type Cash Dividend amount per share (cent) 3 cents per ordinary share Dividend Tax rate 0% (one tier tax-exempt) (b) Corresponding Period of the Immediate Preceding Financial Year Any dividend declared for the corresponding period of the immediately preceding financial year? Yes. Name of Dividend Final Dividend Type Cash Dividend amount per share (cent) 3 cents per ordinary share Dividend Tax rate 0% (one tier tax-exempt) (c) The date dividend is payable Payment of the dividend, if approved by the members at the Thirtieth Annual General Meeting to be held on 26 October 2026, will be paid on 17 November 2026. (d) Record date for dividend payment Notice is hereby given that the Share Transfer Books and Register of Members of Micro-Mechanics (Holdings) Ltd. (the “Company”) will be closed for the preparation of dividend warrants. Duly completed registrable transfers received by the Company’s Share Registrar, B.A.C. S. Private Limited, 77 Robinson Road, #06- 03 Robinson 77, Singapore 068896 up to 5:00 p.m. on 6 November 2026 will be registered to determine shareholders’ entitlements to the said dividend. Members whose Securities Accounts with the Central Depository (Pte) Limited are credited with shares at 5:00 p.m. on 6 November 2026 will be entitled to the proposed dividend. (e) If no dividend has been declared/recommended, a statement to that effect and the reason(s) for the decision. Not applicable.
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MICRO-MECHANICS (HOLDINGS) LTD Condensed Interim Financial Statements for Fourth Quarter and Financial Year Ended 30 June 2026 24 (f) If no dividend has been declared/recommended, a statement to that effect and the reason(s) for the decision. Total Annual Dividend Latest Full Year (FY2026) Previous Full Year (FY2025) S$ S$ Ordinary 8,334,411 8,341,910 Preference - - Total: 8,334,411 8,341,910 Note: The total annual dividend comprises the interim dividend of S$ 4,170,955 paid on 19 February 2026 and the proposed final dividend of S$4,163,456. F6. Interested person transactions The Group does not have a general mandate from shareholders for interested person transactions pursuant to Rule 920 of the Listing Manual of the Singapore Exchange Securities Trading Limited. For the financial year ended 30 June 2026, the Group has made rental payment of US$ 627,300 (30 June 2025: US$561,372) and electrical services payment of US$210,000 (30 June 2025: US$210 ,000) to Sarcadia LLC, a controlling shareholder of the Company and a family company set up by Mr. Christopher Reid Borch, the Executive Chairman of the Company. Except for the above, there was no other interested person transaction relating to any director, controlling shareholders and their associates as defined in Chapter 9 of the Listing Manual. F7. Confirmation that the issuer has procured undertakings from all its directors and executive officers (in the format set out in Appendix 7.7) under Rule 720(1). The Company hereby confirms that it has procured undertakings from all its directors and executive officers under Rule 720(1) of the Listing Manual. F8. Disclosure of person occupying a managerial position who are related to a director, CEO or substantial shareholder Pursuant to Rule 704(13) of the Listing Manual of the Singapore Exchange Securities Trading Limited, we confirm that none of the persons occupying managerial positions in Micro- Mechanics (Holdings) Ltd. (the “Company”) or any of its principal subsidiaries is a relative of a director or chief executive officer or substantial shareholder of the Company. F9. Negative confirmation pursuant to Rule 705(5). Not applicable. BY ORDER OF THE BOARD Wendy Tan Wei Lee Company Secretary 26 August 2026