Annual financial statement
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ISOTEAM LTD. (Company Registration No. 201230294M) UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS AND FULL YEAR ENDED 30 JUNE 2026 Table of Contents A. Condensed interim consolidated statement of comprehensive income 1 B. Condensed interim statements of financial position 2 C. Condensed interim statements of changes in equity 4 D. Condensed interim consolidated statement of cash flows 7 E. Notes to the condensed interim consolidated financial statements 9 F. Other information required pursuant to Appendix 7C of the Catalist Rules 28
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Page 1 of 36 A. CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Group Group Six Months Ended Twelve Months Ended Note 30.06.26 30.06.25 Change 30.06.26 30.06.25 Change $'000 $'000 % $'000 $'000 % Income Statement Revenue 3 52,690 53,814 (2.1) 105,748 119,208 (11.3) Cost of sales (43,205) (44,572) (3.1) (86,392) (100,102) (13.7) Gross profit 9,485 9,242 2.6 19,356 19,106 1.3 Other income 4 1,599 3,284 (51.3) 2,001 3,720 (46.2) Marketing and distribution expenses (427) (445) (4.0) (827) (839) (1.4) General and administrative expenses (6,044) (6,587) (8.2) (11,417) (12,398) (7.9) Finance costs 5 (1,349) (1,025) 31.6 (2,513) (2,218) 13.3 Impairment loss on receivables and contract assets (69) (105) (34.3) (69) (105) (34.3) Other operating expenses (787) (21) N/M (807) (601) 34.3 Profit before tax 6 2,408 4,343 (44.6) 5,724 6,665 (14.1) Tax expense 7 (842) (1,097) (23.2) (895) (1,108) (19.2) Profit and total comprehensive income for the period/year 1,566 3,246 (51.8) 4,829 5,557 (13.1) Profit/(loss) and total comprehensive income/(loss) attributable to: Equity holders of the Company 1,639 3,212 (49.0) 4,903 5,132 (4.5) Non-controlling interests (73) 34 N/M (74) 425 N/M 1,566 3,246 (51.8) 4,829 5,557 (13.1) "N/M" denotes Not Meaningful
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Page 2 of 36 B. CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION Note Group Company As at As at As at As at e 30.06.26 30.06.25 30.06.26 30.06.25 $'000 $'000 $'000 $'000 Assets Non-current assets Property, plant and equipment 10 17,472 17,727 - - Goodwill 11 1,662 1,662 - - Intangible assets 52 79 - - Investment in subsidiaries 12 - - 41,728 39,450 Other investments 13 7,353 7,353 7,353 7,353 Deferred tax assets 800 800 - - Total non-current assets 27,339 27,621 49,081 46,803 Current assets Contract assets 48,161 41,370 - - Inventories 17 - - - Other investments 13 500 - 500 - Trade and other receivables 34,450 34,479 20,913 21,499 Cash and bank balances 18,957 17,205 5,210 1,605 Total current assets 102,085 93,054 26,623 23,104 Total assets 129,424 120,675 75,704 69,907 Liabilities Non-current liabilities Lease liabilities 14 2,542 2,387 - - Deferred tax liabilities 105 105 4 4 Derivative financial instruments 15 462 - 462 - Borrowings 14 9,762 7,676 2,653 442 Total non-current liabilities 12,871 10,168 3,119 446 Current liabilities Contract liabilities 831 675 - - Borrowings 14 29,397 36,574 9,452 15,002 Trade and other payables 24,202 22,858 10,227 7,489 Lease liabilities 14 631 593 - - Provision for taxation 1,395 1,381 - - Total current liabilities 56,456 62,081 19,679 22,491 Total liabilities 69,327 72,249 22,798 22,937 Net assets 60,097 48,426 52,906 46,970
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Page 3 of 36 B. CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION (CONT’D) Note Group Company As at As at As at As at e 30.06.26 30.06.25 30.06.26 30.06.25 $’000 $’000 $’000 $’000 Share capital and reserves Share capital 16 42,266 35,027 42,266 35,027 Treasury shares 17 (152) (152) (152) (152) Accumulated profits 24,797 20,529 10,587 12,079 Foreign currency translation reserve 30 30 - - Merger reserve (7,305) (7,305) - - Other reserves 486 (91) 205 16 Equity attributable to equity holders of the Company 60,122 48,038 52,906 46,970 Non-controlling interests (25) 388 - - Total equity 60,097 48,426 52,906 46,970
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Page 4 of 36 C. CONDENSED INTERIM STATEMENTS OF CHANGES IN EQUITY Attributable to equity holders of the Company The Group Share capital Treasury shares Merger reserve Foreign currency translation reserve Other reserves Accumulated (losses)/profits Total Non- controlling interests Total equity $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Balance at 1 July 2024 54,321 (152) (7,305) 30 62 (4,044) 42,912 (37) 42,875 Profit for the year - - - - - 5,132 5,132 425 5,557 Contribution by and distributions to equity holders Cancellation of share capital (20,000) - - - - 20,000 - - - Dividend paid - - - - - (558) (558) - (558) Equity-settled share-based payment vested 705 - - - (705) - - - - Equity-settled share-based payment exercised - - - - 552 - 552 - 552 Transaction costs related to issue of ordinary shares 1 - - - - (1) - - - Total transaction with equity holders of the Company (19,294) - - - (153) 19,441 (6) - (6) At 30 June 2025 35,027 (152) (7,305) 30 (91) 20,529 48,038 388 48,426
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Page 5 of 36 C. CONDENSED INTERIM STATEMENTS OF CHANGES IN EQUITY (CONT’D) Attributable to equity holders of the Company The Group Share capital Treasury shares Merger reserve Foreign currency translation reserve Other reserves Accumulated profits Total Non- controlling interests Total equity $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Balance at 1 July 2025 35,027 (152) (7,305) 30 (91) 20,529 48,038 388 48,426 Profit for the year - - - - - 4,903 4,903 (74) 4,829 Contribution by and distributions to equity holders Placement of shares 7,001 - - - - - 7,001 - 7,001 Share issue expenses (349) - - - - - (349) - (349) Dividend paid - - - - - (635) (635) - (635) Acquisition of NCI - - - - 388 - 388 (388) - Equity-settled share-based payment vested - - - - 189 - 189 - 189 Equity-settled share-based payment exercised 587 - - - - - 587 - 587 Capital contributions from non- controlling interests - - - - - - - 49 49 Total transaction with equity holders of the Company 7,239 - - - 577 (635) 7,181 (339) 6,842 At 30 June 2026 42,266 (152) (7,305) 30 486 24,797 60,122 (25) 60,097
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Page 6 of 36 C. CONDENSED INTERIM STATEMENTS OF CHANGES IN EQUITY (CONT’D) The Company Share capital Treasury shares Other reserves Accumulated (losses)/profits Total equity $’000 $’000 $’000 $’000 $’000 Balance at 30 June 2024 and 1 July 2024 54,321 (152) 169 (9,648) 44,690 Profit and total comprehensive income for the year - - - 2,285 2,285 Contribution by and distributions to equity holders Transaction costs related to issue of share capital 1 - - - 1 Equity-settled share-based payment - - 552 - 552 Cancellation of share capital (20,000) 20,000 - Equity-settled share-based payment exercised 705 - (705) - - Dividend paid - - - (558) (558) (19,295) - (153) 19,442 (6) Total transactions with equity holders of the Company (19,295) - (153) 19,442 (6) Balance at 30 June 2025 35,027 (152) 16 12,079 46,970 Balance at 30 June 2025 and 1 July 2025 35,027 (152) 16 12,079 46,970 Loss and total comprehensive loss for the year - - - (857) (857) Contribution by and distributions to equity holders Placement of shares 7,001 - - - 7,001 Share issuance expenses (349) - - - (349) Equity-settled share-based payment vested - - 189 - 189 Equity-settled share-based payment exercised 587 - - - 587 Dividend paid - - - (635) (635) 7,239 - 189 (635) 6,793 Total transactions with equity holders of the Company 7,239 - 189 (635) 6,793 Balance at 30 June 2026 42,266 (152) 205 10,587 52,906
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Page 7 of 36 D. CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS Group Twelve Months Ended 30.06.26 30.06.25 $’000 $’000 Cash flows from operating activities Profit before income tax 5,724 6,665 Adjustments for: - Amortisation of intangible assets 31 49 Depreciation of property, plant and equipment 2,144 2,917 Loss/(gain) on disposal of property, plant and equipment (net) 40 (33) Impairment loss on receivables and contract assets 65 105 Interest income (75) (45) Interest expense 2,259 1,928 Bad debts written off 4 - Bad debts recovered (565) (42) Equity-settled share-based payments 776 552 Fair value gain on other investments - (2,678) Fair value gain on derivative financial instruments (678) - Operating profit before working capital changes 9,725 9,418 Contract assets (6,791) 867 Contract liabilities 156 (960) Inventories (17) - Trade and other receivables 574 (6,652) Trade and other payables 1,315 (2,575) Cash generated from operations 4,962 98 Interest received 75 45 Tax paid (881) - Net cash generated from operating activities 4,156 143
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Page 8 of 36 D. CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS (CONT’D) Group Twelve Months Ended 30.06.26 30.06.25 $’000 $’000 Cash flows from investing activities Purchases of property, plant and equipment (1,005) (320) Additions to intangible assets (4) - Proceeds from disposal of property, plant and equipment 9 106 Placement of other investments (500) - Net cash used in investing activities (1,500) (214) Cash flows from financing activities Proceeds from issue of convertible bonds 3,000 - Proceeds from issue of ordinary shares 7,001 - Share issue expense (349) - Withdrawal/(placement) of fixed deposits pledged to banks 842 (3) Placement of restricted cash collateral (375) - Dividend paid (635) (558) Drawdown of bank borrowings 56,882 71,008 Repayment of bank borrowings (64,112) (60,777) Interest paid (1,980) (1,890) Repayment of lease liabilities (711) (1,254) Net cash (used in)/generated from financing activities (437) 6,526 Net increase in cash and cash equivalents 2,219 6,455 Cash and cash equivalents at beginning of financial year 14,031 7,576 Cash and cash equivalents at end of financial year 16,250 14,031 Notes to the Consolidated Statement of Cash Flows Cash and cash equivalents included in the consolidated statement of cash flows consist of the following: - Group Twelve Months Ended 30.06.26 30.06.25 $’000 $’000 Cash in hand and at bank 15,248 14,031 Fixed deposits 3,334 3,174 Cash collateral 375 - 18,957 17,205 Less: Fixed deposits pledged (2,332) (3,174) Less: Restricted cash collateral (375) - 16,250 14,031
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Page 9 of 36 E. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 1. Corporate information The Company (Co. Reg. No. 201230294M) is a limited liability company incorporated and domiciled in Singapore and is listed on the Singapore Exchange Securities Trading Limited (“SGX -ST”). The registered office and principal place of business of the Company is at No. 8 Changi North Street 1, Singapore 498829. The principal activities of the Group are provision of repair and redecoration services, addition and alteration services, provision of coating and painting services and others including revenue from home retrofitting business, landscaping works, interior designs, mechanical & electrical engineering works, renewable solutions works, vector control services and handyman services. 2. Basis of preparation The condensed interim financial statements for the six months and full year ended 30 June 2026 have been prepared in accordance with SFRS(I) 1 -34 Interim Financial Reporting issued by the Accounting Standards Council Singapore . The condensed interim financial statements do not include all the information required for a complete set of financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group’s financial position and performance of the Group since the last interim financial statements for the period ended 31 December 2025. The accounting policies adopted are consistent with those of the previous financial year which were prepared in accordance with SFRS(I)s, except for the adoption of new and amended standards as set out in Note 2.1. The condensed interim financial statements are presented in Singapore dollar ( “$”) which is the Company’s functional currency and all values are rounded to the nearest thousand (“$’000”) as indicated. 2.1. New and amended standard adopted by the Group A number of amendments to SFRS(I)s have become applicable for the current reporting period /year which does not have significant impact to the Group. 2.2. Use of judgements and estimates In preparing the condensed interim financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. The significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 30 June 2025. Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next interim period are included in the following note: (i) Note 11: Impairment testing of goodwill – Key assumptions underlying recoverable amounts (ii) Note 12: Impairment testing of investment in subsidiaries – Key assumptions underlying recoverable amounts
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Page 10 of 36 E. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) 2.2. Use of judgements and estimates (Cont’d) (iii) Fair value of financial assets not quoted in an active market As disclosed in Note 13, other investments are relatively illiquid with no public market. Management valued the investments in Greater Heights Sub-Fund based on the Group’s share of the fair value of the underlying net assets of portfolio companies invested as per the quarterly report issued by the Variable Capital Company (“VCC”)’s professional fund manager based on the income approach method. Because of the inherent uncertainty of the valuation, management’s estimate of fair values which are derived from the reported proportionate share of the fair value of the underlying net assets of the portfolio companies, may differ significantly from the values that would have been used had a ready market existed for the investment. (iv) Construction contracts The Group recognises contract revenue over time by reference to the stage of completion of the contract work. The stage of completion is determined by reference to the contract costs incurred to-date relative to the estimated total contract costs for the contract. Significant assumptions are used to estimate the total contract revenue (including variation of claims) and total contract costs (including estimated costs to complete), at the inception of the contract and at the end of each reporting period and the determination of the stage of completion. In making these estimates, management devised a robust process for budgeting contract costs and also relied on past experience and technical knowledge of the contract team. The contract teams monitor contract costs incurred closely and ensure that any project cost overruns, provision for onerous contract, liquidated damages and rec tification cost are accounted for appropriately in the financial statements. The carrying amounts of the contract assets and liabilities arising at the end of each reporting period are $48,161,000 and $831,000 as at 30 June 2026 (30 June 2025: $41,370,000 and $675,000). (v) Valuation of Convertible bonds Management has determined that the bonds issued by the Company are hybrid financial instruments with a derivative financial instrument component, in accordance with SFRS(I) 9 Financial Instruments. Significant judgements and estimates from management are involved in estimating the fair value of the derivative financial instrument arising from the issuance of the convertible bonds by the Company. Key assumptions, including but not limited to, the discount rate used and the probability of certain terms and conditions being exercised were considered during the fair value measurement of the derivative financial instruments issued by the Company.
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Page 11 of 36 E. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) 3. Segment and revenue information The Group is organised into the following main business segments: • Segment 1: Repairs & Redecoration (“R&R”) • Segment 2: Addition & Alteration (“A&A”) • Segment 3: Coating & Painting (“C&P”) • Segment 4: Others included revenue from home retrofitting business, landscaping works, interior design , mechanical & electrical engineering works, renewable solutions works, vector control services and handyman services. These operating segments are a component of the Group that engages in business activities from which it may earn revenues and incurs expenses, including revenues and expenses that relate to transactions with other components of the Group. Operating segments are reported in a manner consistent with the internal reporting provided to the Group’s chief operating decision maker for making decisions about allocating resources and assessing performance of the operating segments.
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Page 12 of 36 E. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) 3.1. Operating segments 1 January 2026 to 30 June 2026 R&R A&A C&P Others Total $’000 $’000 $’000 $’000 $’000 Segment revenue 11,348 25,237 7,243 8,862 52,690 Segment profit/(loss) 1,793 4,982 (385) (1,744) 4,646 Depreciation and amortisation (1,104) Other non-cash income 164 Interest income 51 Finance costs (1,349) Profit before tax 2,408 Segment assets 16,345 38,500 12,614 27,103 94,562 Unallocated assets 34,862 Total assets 129,424 Segment liabilities 2,059 100 4,060 14,450 20,669 Unallocated liabilities 48,658 Total liabilities 69,327 1 January 2025 to 30 June 2025 R&R A&A C&P Others Total $’000 $’000 $’000 $’000 $’000 Segment revenue 9,935 26,261 7,368 10,250 53,814 Segment profit/(loss) (282) 3,941 (389) 752 4,022 Depreciation and amortisation (1,227) Other non-cash income 2,584 Interest income (11) Finance costs (1,025) Profit before tax 4,343 Segment assets 16,658 33,871 12,678 18,738 81,945 Unallocated assets 38,730 Total assets 120,675 Segment liabilities 3,145 191 4,525 18,644 26,505 Unallocated liabilities 45,744 Total liabilities 72,249
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Page 13 of 36 E. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) 3.1. Operating segments (cont’d) 1 July 2025 to 30 June 2026 R&R A&A C&P Others Total $’000 $’000 $’000 $’000 $’000 Segment revenue 23,432 46,646 13,673 21,997 105,748 Segment profit 2,997 4,574 1,114 1,195 9,880 Depreciation and amortisation (2,175) Other non-cash income 457 Interest income 75 Finance costs (2,513) Profit before tax 5,724 Segment assets 16,345 38,500 12,614 27,103 94,562 Unallocated assets 34,862 Total assets 129,424 Segment liabilities 2,059 100 4,060 14,450 20,669 Unallocated liabilities 48,658 Total liabilities 69,327 1 July 2024 to 30 June 2025 R&R A&A C&P Others Total $’000 $’000 $’000 $’000 $’000 Segment revenue 28,779 56,526 14,876 19,027 119,208 Segment profit 3,504 4,187 1,013 987 9,691 Depreciation and amortisation (2,966) Other non-cash income 2,113 Interest income 45 Finance costs (2,218) Profit before tax 6,665 Segment assets 16,658 33,871 12,678 18,738 81,945 Unallocated assets 38,730 Total assets 120,675 Segment liabilities 3,145 191 4,525 18,644 26,505 Unallocated liabilities 45,744 Total liabilities 72,249
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Page 14 of 36 E. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) 3.2. Disaggregation of revenue The Group 6 months ended 30 June 2026 R&R A&A C&P Others Total 1 January 2026 to 30 June 2026 $'000 $'000 $'000 $'000 $'000 Types of goods or service: Revenue from contracts 11,348 24,606 7,243 8,588 51,785 Revenue from other services - 631 - 274 905 Total revenue 11,348 25,237 7,243 8,862 52,690 Timing of revenue recognition: At a point in time - 631 - - 631 Over time 11,348 24,606 7,243 8,862 52,059 Total revenue 11,348 25,237 7,243 8,862 52,690 The Group 6 months ended 30 June 2025 R&R A&A C&P Others Total 1 January 2025 to 30 June 2025 $'000 $'000 $'000 $'000 $'000 Types of goods or service: Revenue from contracts 9,935 26,261 7,368 9,908 53,472 Revenue from other services - - - 342 342 Total revenue 9,935 26,261 7,368 10,250 53,814 Timing of revenue recognition: At a point in time - 1,173 - - 1,173 Over time 9,935 25,088 7,368 10,250 52,641 Total revenue 9,935 26,261 7,368 10,250 53,814
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Page 15 of 36 E. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) 3.2. Disaggregation of revenue (cont’d) The Group 12 months ended 30 June 2026 R&R A&A C&P Others Total 1 July 2025 to 30 June 2026 $'000 $'000 $'000 $'000 $'000 Types of goods or service: Revenue from contracts 23,432 44,925 13,673 21,293 103,323 Revenue from other services - 1,721 - 704 2,425 Total revenue 23,432 46,646 13,673 21,997 105,748 Timing of revenue recognition: At a point in time - 1,721 - - 1,721 Over time 23,432 44,925 13,673 21,997 104,027 Total revenue 23,432 46,646 13,673 21,997 105,748 The Group 12 months ended 30 June 2025 R&R A&A C&P Others Total 1 July 2024 to 30 June 2025 $'000 $'000 $'000 $'000 $'000 Types of goods or service: Revenue from contracts 28,779 56,526 14,876 16,836 117,017 Revenue from other services - - - 2,191 2,191 Total revenue 28,779 56,526 14,876 19,027 119,208 Timing of revenue recognition: At a point in time - 2,533 - - 2,533 Over time 28,779 53,993 14,876 19,027 116,675 Total revenue 28,779 56,526 14,876 19,027 119,208
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Page 16 of 36 E. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) 4. Other Income The Group 6 months ended 12 months ended 30 June 2026 30 June 2025 30 June 2026 30 June 2025 $’000 $'000 $’000 $’000 Government grants 139 338 180 357 Gain on disposal of property, plant and equipment 4 2 6 52 Interest income 51 - 75 45 Administrative income 88 6 88 60 Foreign exchange gain 1 4 5 4 Bad debts recovered 565 - 565 42 Fair value gain on other investment - 2,678 - 2,678 Fair value gain on derivative financial instrument 386 - 678 - Dividend income 100 - 100 - Others 265 256 304 482 1,599 3,284 2,001 3,720 5. Finance costs The Group 6 months ended 12 months ended 30 June 2026 30 June 2025 30 June 2026 30 June 2025 $’000 $’000 $’000 $’000 Interest expenses 1,248 887 2,259 1,928 Bank charges 89 120 222 244 Factoring charges 12 18 32 46 1,349 1,025 2,513 2,218
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Page 17 of 36 E. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) 6. Profit before tax The Group 6 months ended 12 months ended 30 June 2026 30 June 2025 30 June 2026 30 June 2025 $’000 $’000 $’000 $’000 Amortisation of intangible assets 11 21 31 49 Allowance for impairment on receivables and contract assets 65 105 65 105 Depreciation of property, plant and equipment 1,093 1,213 2,144 2,917 Equity-settled share-based payment 776 - 776 552 Loss/(gain) on disposal of plant and equipment (net) 22 (31) 40 (33) 7. Tax expense The Group 6 months ended 12 months ended 30 June 2026 30 June 2025 30 June 2026 30 June 2025 $'000 $'000 $'000 $'000 Tax expense attributable to profit is made up of: Current income tax: - Current year 698 960 698 960 - Under provision of taxation in prior years 144 137 197 137 Deferred tax: - Current year - - - 11 842 1,097 895 1,108
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Page 18 of 36 E. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) 8. Earnings per share The following reflects the profit attributable to the equity holders of the Company and the number of ordinary shares used in the earnings per share computation: The Group 6 months ended 12 months ended 30 June 2026 30 June 2025 30 June 2026 30 June 2025 Profit attributable to equity holders of the Company ($’000) 1,639 3,212 4,903 5,132 Weighted average number of ordinary shares 776,841,081 702,338,095 776,841,081 702,338,095 Ordinary shares used in calculation of basic earnings per ordinary share Potential convertible bonds to be exercised 32,873,000 - 32,873,000 - Weighted average number of ordinary shares outstanding for diluted earnings per ordinary shares 809,714,081 702,338,095 809,714,081 702,338,095 Basic earnings per share (cents) 0.21 0.46 0.63 0.73 Diluted earnings per share (cents) 0.20 0.46 0.61 0.73 For the financial year ended 30 June 2026, the potential ordinary shares used to compute the “diluted earnings per share” included the issuance of convertible bonds to be exercised. For the financial year ended 30 June 2025, there are no potential ordinary shares dilution. 9. Net Asset Value The Group The Company As at As at 30 June 2026 30 June 2025 30 June 2026 30 June 2025 Net assets value ($'000) (Excluding Non-controlling interests) 60,122 48,038 52,906 46,970 Number of ordinary shares 800,484,000 707,241,862 800,484,000 707,241,862 Net assets value per ordinary share (cents) 7.51 6.79 6.61 6.64
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Page 19 of 36 E. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) 10. Property, plant and equipment During the 6 months and 12 months ended 30 June 202 6, the Group acquired plant and equipment amounting to $952,000 and $1,956,000 respectively of which $12,000 and $107,000 respectively relates to the new leases of right-of- use assets which were not acquired by means of hire purchase. Cash payment of $ 582,000 and $898,000 respectively was made to purchase plant and equipment. The Group had disposed of plant and equipment amounting to $ 46,000 and $67,000 respectively. During the 12 months ended 30 June 2026 , total sales proceeds from the disposal amounted to $27,000, of which $9,000 was received in cash and $18,000 represented a non -cash settlement against the purchase of plant and equipment. 11. Goodwill The Group As at 30 June 2026 30 June 2025 $’000 $’000 Net carrying value 1,662 1,662 Impairment testing of goodwill The recoverable amount of the cash generating unit (“CGU”) has been determined based on value -in-use calculation using cash flow projections from financial budgets approved by management covering a five -year period. As at 30 June 202 6, the Group reviewed the key assumptions used in the value -in-use (“VIU”) calculation as at 30 June 2025 impairment test and has made changes to the assumptions. No impairment loss was recognised as at 30 June 2026. Goodwill allocated to the respective CGU are as follows: The Group As at 30 June 2026 30 June 2025 Cash Generating Unit and principal activities $’000 $’000 CGU 1 - Repair & redecoration and coatings & paintings 1,383 1,383 CGU 2 - Landscaping works 279 279 1,662 1,662
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Page 20 of 36 E. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) 11. Goodwill (Cont’d) Impairment testing of goodwill (Cont’d) Key assumptions used in value-in-use calculations The recoverable amounts for the above CGUs have been determined based on value in use calculations using cash flow projections from financial budgets approved by management covering a 5 -year period. These key inputs and assumptions were estimated by manage ment based on prevailing economic and other conditions at the end of the reporting period. The key assumptions applied to the 5-year cash flow projections are as follows: CGU 1 CGU 2 2026 Terminal value growth rate 2.50% 2.50% Pre-tax discount rate 7.69% 7.33% 2025 Terminal value growth rate 2.50% 2.50% Pre-tax discount rate 8.63% 9.37% Forecast revenue growth rate - Revenue is computed based on secured order book and potential contracts. Terminal value growth rate - Cash flows beyond the five -year period are forecasted based on terminal growth rate of 2.5% which does not exceed the nominal GDP rates for the countries in which the CGU operates. Pre-tax discount rate - Discount rates represent the current market assessment of the risks specific to the CGU, regarding the time value of money and individual risks of the underlying assets which have not been incorporated in the cash flow estimates. The discount rate calculation is based on the specific circumstances of the Group and its operating segments and derived from its weighted average cost of capital (“WACC”). The WACC takes into account both debt and equity. Sensitivity to changes in assumptions With regards to the assessment of value in use, management believes that no reasonably possible changes in any of the above key assumptions would cause the carrying value of the CGU to materially exceed its recoverable amount.
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Page 21 of 36 E. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) 12. Investment in subsidiaries Impairment assessment of the Company's investment in subsidiaries Determining whether investments in subsidiaries are impaired requires an estimate of the value -in-use (“VIU”) of the subsidiaries. Estimating the VIU requires the Company to make an estimate of the future cash flows expected from the cash generating unit a nd appropriate discount rate in order to calculate the present value of these cash flows. The forecasts used to estimate the future cash flows are subject to the risks noted in the impairment assessments of the goodwill. Information about the assumptions and risk factors are disclosed in Note 11. Based on the Company’s assessment, the recoverable amounts assessed to be more than the carrying amounts of the cash generating units. 13. Other investments The Group As at 30 June 2026 30 June 2025 $’000 $’000 Current Debt security - Financial assets at amortised cost 500 - Non-current Unquoted equity shares - Financial assets at fair value through profit or loss 7,353 7,353 7,853 7,353 Notes a ) The sub-fund will be managed by a fund manager appointed by the VCC during the investment period of 36 months (the “Term”). Upon expiry of the Term or the occurrence of certain events, the Company will redeem its investment in the sub-fund with the redemption price being the net proceeds from the liquidation or disposal of the investments in the sub-fund. Consequently, the Group measures the interests in the sub-fund at fair value through profit or loss. The fair value of G reater Heights VCC Sub-Fund is determined by reference to quarterly reports issued by the VCC’s professional fund manager based on the income approach method. This fair value measurement was categorised in Level 3 of the fair value hierarchy. b ) During the financial year, the Group has invested in debt security, with maturity dates on 9 February 2027. The carrying amounts of other financial assets at amortised cost approximate their fair values (Level 2) due to short - term nature where the effect of discounting is immaterial.
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Page 22 of 36 E. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) 14. Borrowings & Lease liabilities The Group As at 30 June 2026 30 June 2025 $'000 $'000 Amount repayable in one year or less, or on demand Term loans - secured 23,087 26,514 Lease liabilities - secured 631 593 Term loans - unsecured 1,250 3,600 Short-term securities loan - unsecured 5,060 6,460 Amount repayable after one year Term loans - secured 7,110 7,676 Lease liabilities - secured 2,542 2,387 Term loans - unsecured 520 - Redeemable convertible bonds 2,132 - 42,332 47,230 Notes a ) Borrowings amounting to $30.2 million are secured by: i. charges over fixed deposits; ii. mortgage over the Group’s leasehold properties; iii. first fixed charge over receivables arising from invoices financed directly or indirectly over the account in which the receivables are deposited; and iv. corporate guarantee from the Company and a subsidiary; b ) Lease liabilities of the Group amounting to $ 3.2 million are secured by the rights to the leased equipment, machineries and motor vehicles. c ) The short -term securities loan is the issuance of tokenised short -term commercial papers on a regulated digital private market platform to fund the Group’s working capital requirements. d ) On 19 September 2025, the Company had issued Convertible Bonds with an aggregate principal amount of $3.0 million to certain subscribers. The Convertible bonds are unsecured, bear interests of 4% per annum and are convertible into new ordinary shares of th e Company (the “Conversion Shares”) at any time during the three -year tenure at a conversion price of S$0.09126 per Conversion Share with a minimum conversion price should a bona fide offer be made under the Singapore Code on Take -overs and Mergers for all shares in the form of a mandatory offer, voluntary offer, scheme of arrangement, delisting and exit offer, and amalgamation (but not a partial offer) and such offer becomes unconditional and the offer price is below the current conversion price, the conversion price will be adjusted to the offer price but not lower than S$0.08126.
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Page 23 of 36 E. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) 15. Derivative financial instruments The Group As at 30 June 2026 30 June 2025 $'000 $'000 Current Redeemable convertible bonds - - Non-current Redeemable convertible bonds 462 - 462 - The derivative financial instruments arise from the issuance of the Convertible Bonds issued by the Company, as disclosed in Note 14 to the financial statements. The fair value of the derivative financial instruments falls within Level 3 of the fair value hierarchy. As at 30 June 2026, the fair value of embedded derivative was valued by an independent valuer. In estimating the fair value of the derivative liability component, market -observable data is used to the extent it is available. Where Level 1 inputs are not available, management establishes inputs that are appropriate to the circumstances. Measurement inputs include actual share price, expected volatility, implied credit spread and risk -free rate. Information about the significant unobservable inputs used in Level 3 fair value measurement of the derivative financial instruments is disclosed in Note 19.
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Page 24 of 36 E. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) 16. Share capital Group and Company 30 June 2026 30 June 2025 Number Issued Number Issued of issued share of issued share shares capital shares capital ’000 $’000 ’000 $’000 At 1 July 708,437 35,027 698,762 54,321 Cancellation of share capital - - - (20,000) Shares issuance 86,158 7,001 - - Shares issuance expenses - (349) - - Transaction costs related to issue of share capital - - - 1 Equity-settled share-based payment vested - - 9,675 705 Equity-settled share-based payment exercised 7,084 587 - - At 30 June 801,679 42,266 708,437 35,027 On 23 September 2025, the Company allotted and issued 86,158,138 Placement Shares to the placees. A portion of the proceeds from the Placement Shares has been utilised as disclosed in Note 14 of Appendix 7C. Following the issuance of 1,084,000 and 6,000,000 shares under ISOTeam PSP on 2 January 2026 and 30 January 2026 respectively, the total number of issued shares (including treasury shares) has increased from 708,437,521 shares as at 30 June 2025 to 801,679,659 shares as at 30 June 2026. As at 30 June 2026, there are convertible bonds as disclosed under Note 15. However, when a s at 30 June 2025, the Company did not have any outstanding convertibles. Group and Company 30 June 2026 30 June 2025 No. of shares No. of shares ‘000 ‘000 Total number of issued shares, including treasury shares 801,679 708,437 Treasury shares (1,195) (1,195) Total number of issued shares, excluding treasury shares 800,484 707,242 There were no shares held by subsidiary holdings as at 30 June 2026 and 30 June 2025.
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Page 25 of 36 E. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) 17. Treasury shares Group and Company 2026 2025 Number Number of treasury Value of of treasury Value of shares shares shares Shares ’000 $’000 ’000 $’000 At 1 July and 30 June 1,195 152 1,195 152 Percentage (%) of treasury shares against total number of shares outstanding as at 30 June 0.2% 0.2% Treasury shares relate to ordinary shares of the Company that is held by the Company. Accordingly, the Company has a total number of 1,195,659 treasury shares as at 30 June 2025 and as at 30 June 2026, there were no sales, transfers, cancellation and/or use of treasury shares during FY2026. 18. Related parties 18a. In addition to the information disclosed elsewhere in the financial statements, the following transactions took place between the Group and the related parties at terms agreed between the parties: The Group 6 months ended 12 months ended 30 June 2026 30 June 2025 30 June 2026 30 June 2025 Group $’000 $’000 $’000 $’000 With related parties Expenses Purchases 1,909 1,838 3,812 4,224 Company Loan 4,200 5,420 8,550 6,286 Repayment of loan (9,653) (100) (10,358) (700) Income Management fee (970) (883) (1,840) (2,038) Interest income (2) (16) (26) (32) Expenses Recharge of expense 704 1,077 747 1,132
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Page 26 of 36 E. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) 18. Related parties 18b. Compensation of key management personnel. There was no replacement for the retirement of Contracts Director, Mr. Lim Kim Hock, Johnny pursuant to the end of his re -employment contract as announced by the Company dated 14 January 2026. There were no changes to the compensation scheme in FY2026. 19. Fair value hierarchy The Group and Company classifies fair value measurement using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: a) Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities b) Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and c) Level 3 - Inputs for the asset or liability that are not based on observable market data (unobservable inputs ) The financial assets at fair value through profit or loss was classified as Level 3. The fair value of the unquoted equity shares was determined by reference to the quarterly reports issued by the VCC’s professional fund manager based on the income approach method . The measurement of fair value of the unquoted equity shares was performed by the Group’s finance team, based on evidence obtained from the investee company to assess if the share issuance transaction price is supportable and the appropriate classification of the fair value level hierarchy measurement for this financi al asset. A higher share issuance transaction price will result in a higher fair value measurement. Movements in Level 3 assets and liabilities measured at fair value Unquoted equity shares 2026 2025 $’000 $’000 Balance at beginning of financial year 7,353 4,675 Fair value gain recognised in profit or loss - 2,678 Balance at end of financial year 7,353 7,353 Derivative financial instruments 2026 2025 $’000 $’000 Balance at beginning of financial year - - Issuance of convertible bonds 1,140 - Fair value gain recognised in profit or loss (678) - Balance at end of financial year 462 -
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Page 27 of 36 E. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) 19. Fair value hierarchy (Cont’d) Information about significant unobservable inputs used in Level 3 fair value measurement for financial liabilities, at FVPL The following table shows the information about fair value measurement of financial liabilities, at FVPL using significant unobservable inputs (Level 3) as at 30 June 2026: Financial instrument Valuation techniques Unobservable inputs 30 June 2026 Convertible Bonds Tri-nominal model Risk-free rate Volatility rate 1.58% 33.57% Movements in Level 2 assets and liabilities measured at amortised cost Debt security 2026 2025 $’000 $’000 Balance at beginning of financial year - - Placement of debt security 500 - Balance at end of financial year 500 - 20. Subsequent events On 1 July 2026, the Company has incorporated two wholly-owned subsidiar ies in Singapore known as ISOTeam EleD Engineering Pte. Ltd. (“ EleD”) and RIT Workforce and Resources Pte. Ltd. (“ RITWR”) with an issued and paid -up share capital of S$1 divided into 1 ordinary share and paid -up share capital of S$1,000 divided into 1,000 ordinary share respectively. The principal business of EleD is the provision of electrical engineering services. The principal business of RITWR is the provision of addition and alteration services and repair and redecoration services.
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Page 28 of 36 Other Information required pursuant to Appendix 7C of the Catalist Rules
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Page 29 of 36 OTHER INFORMATION 1. The condensed interim consolidated statements of financial position of ISOTeam Ltd and its subsidiaries as at 30 June 2026 and the related condensed interim consolidated statement of comprehensive income, condensed interim consolidated statements of changes in equity and condensed interim consolidated statements of cash flows for the six- months period and full year ended 30 June 2026 and certain explanatory notes have not been audited or reviewed. 2. Review of performance of the Group Group Group Six Months Ended Twelve Months Ended Revenue 30.06.26( 30.06.25 Change 30.06.26 30.06.25 Change $’000 % $’000 % % $’000 % $’000 % % R&R 11,348 21.6 9,935 18.5 14.2 23,432 22.2 28,779 24.1 (18.6) A&A 25,237 47.9 26,261 48.8 (3.9) 46,646 44.1 56,526 47.4 (17.5) C&P 7,243 13.7 7,368 13.7 (1.7) 13,673 12.9 14,876 12.5 (8.1) Others (a) 8,862 16.8 10,250 19.0 (13.5) 21,997 20.8 19,027 16.0 15.6 52,690 100.0 53,814 100.0 (2.1) 105,748 100.0 119,208 100.0 (11.3) (a) Others included revenue from home retrofitting business, landscaping works, interior design, mechanical & electrical engineering works, renewable solutions works, vector control services and handyman services. Condensed Interim Consolidated Statement of Comprehensive income Revenue 2HY2026 vs 2HY2025 The Group’s revenue decreased by $ 1.1 million or 2.1% from $ 53.8 million in 2HY2025 to $52.7 million in 2HY2026. Revenue decrease was mainly due to lower revenue generated by A&A, C&P and the Others business segment, partially offset by the increase in revenue from R&R segment. FY2026 vs FY2025 The Group's revenue decreased by $ 13.5 million or 11.3% from $ 119.2 million in FY202 5 to $105.7 million in FY202 6. Revenue decrease was mainly due to lower revenue generated by the core business segments (R&R, A&A and C&P) , mainly due to the timing of revenue recognition, which is influenced by project commencement and completion . This was partially offset by an increase from the Others business segment , which saw more renewable solutions contracts completed and delivered. Gross profit and gross profit margin 2HY2026 vs 2HY2025 and FY2026 vs FY2025 The Group's gross profit increased by $0.3 million from $9.2 million in 2HY2025 to $9.5 million in 2HY2026 and increased by $0.3 million from $19.1 million in FY2025 to $19.4 million in FY2026. This was because of reduced cost of sales due to savings from the conversion of part of the Group’s headquarters into a workers’ dormitory to house its own workers partially offset by energy-related costs due to geopolitical development in the Middle East.
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Page 30 of 36 2. Review of performance of the Group (Cont’d) Condensed Interim Consolidated Statement of Comprehensive income (Cont’d) Other income 2HY2026 vs 2HY2025 and FY2026 vs FY2025 The Group's other income decreased by $1.7 million or 51.3% from $3.3 million in 2HY2025 to $1.6 million in 2HY2026 and decreased by $1.7 million or 46.2% from $3.7 million in FY2025 to $2.0 million in FY2026 mainly due to absence of one-off fair value gain on other investment in FY2025, partially offset by fair value gain on derivative financial instrument and bad debts recovered in FY2026. Marketing and distribution expenses 2HY2026 vs 2HY2025 and FY2026 vs FY2025 There are no material changes to the marketing and distribution expenses. General and administrative expenses 2HY2026 vs 2HY2025 and FY2026 vs FY2025 The Group's general and administrative expenses decreased by $0.6 million or 8.2% from $ 6.6 million in 2HY2025 to $6.0 million in 2HY2026 and decreased by $1.0 million or 7.9% from $12.4 million in FY2025 to $11.4 million in FY2026. The decrease was mainly attributable to the decrease in staff salaries & bonuses and professional fees. Finance costs 2HY2026 vs 2HY2025 and FY2026 vs FY2025 The Group’s finance costs increased by $0.3 million or 31.6% from $1.0 million in 2HY2025 to $1.3 million in 2HY2026 and increased by $0.3 million or 13.3% from $2.2 million in FY2025 to $2.5 million in FY2026. This was mainly due to the unwinding of interest expense on the host liability component of the convertible bonds issued in FY2026. Impairment loss on receivables and contract assets 2HY2026 vs 2HY2025 and FY2026 vs FY2025 The Group's impairment loss on receivables and contract assets decreased by $0.1 million from $0.2 million in 2HY2025 and FY2025 to $0.1 million in 2HY2026 and FY2026 . This was due to the decrease in credit risk and changes in market conditions that has affected the value of contract assets and receivables.
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Page 31 of 36 2. Review of performance of the Group (Cont’d) Condensed Interim Consolidated Statement of Comprehensive income (Cont’d) Other operating expenses 2HY2026 vs 2HY2025 and FY2026 vs FY2025 The Group's other operating expenses increased by $0.7 million from $0.1 million in 2HY2025 to $0.8 million in 2HY2026 and increased by $0.2 million from $0.6 million in FY2025 to $0.8 million in FY2026. The increase was mainly due to equity-settled share-based compensation. Profit before tax 2HY2026 vs 2HY2025 and FY2026 vs FY2025 As a result of the above, the Group recorded a profit before tax of $2.4 million in 2HY2026 compared to a profit before tax of $4.3 million in 2HY2025 and a profit before tax of $5.7 million in FY2026 compared to a profit before tax of $6.7 million in FY2025. Tax expenses 2HY2026 vs 2HY2025 and FY2026 vs FY2025 The Group’s tax expense decreased by $ 0.2 million from $1.1 million in 2HY2025 and FY2025 to tax expense of $0.9 million in 2HY2026 and FY2026 mainly due to lower profit before tax in 2HY2026 and FY2026. Condensed Interim Statements of Financial Position Non-current assets There are no material changes to the non-current assets. Current assets The increase in current assets of $ 9.0 million or 9.7% from $93.1 million as at 30 June 2025 to $102.1 million as at 30 June 2026 was mainly due to an increase in cash and bank balances, contract assets and debt security. Non-current liabilities The increase in non-current liabilities of $2.7 million or 26.6% from $10.2 million as at 30 June 2025 to $12.9 million as at 30 June 2026 was mainly due to issuance of convertible bonds in FY2026. Current liabilities The decrease in current liabilities of $5.6 million or 9.1% from $62.1 million as at 30 June 2025 to $56.5 million as at 30 June 2026 was mainly due to repayment of borrowings.
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Page 32 of 36 2. Review of performance of the Group (Cont’d) Condensed Interim Consolidated Statement of Cash Flows Net cash generated from operating activities FY2026 Net cash generated from operating activities amounted to $4.2 million in FY2026, mainly due to operating profit before working capital changes. This was partially offset by the increase in contract assets and tax paid during the year, but mitigated by the decrease in trade and other receivables and increase in trade and other payables. Net cash used in investing activities FY2026 Net cash used in investing activities amounted to $ 1.5 million was mainly due to the purchases of property, plant and equipment and placement of debt security. Net cash used in financing activities FY2026 Net cash used in financing activities of $ 0.4 million in FY2026 was mainly due to drawn down of borrowings , proceeds from issuance of ordinary shares and convertible bonds, which were offset by repayment of borrowings, interest paid and repayment of lease liabilities. 3. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results. Not applicable. 4. 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. According to the latest statistics released by the Ministry of Trade and Industry on 11 August 2026 1, the construction sector grew 5.8% yoy in the second quarter, slower than the 12.9% growth in the preceding quarter. Growth during the quarter was supported by expansions in both public and private sector construction output. On a quarter -on quarter seasonally-adjusted basis, the sector contracted by 2.5 per cent, a reversal from the 7.4 per cent growth in the previous quarter. Meanwhile, the Building and Construction Authority (“ BCA”) has projected construction demand to range between S$47.0 billion and S$ 53.0 billion in 202 6, similar to 2025 2. Over the medium -term from 202 7 to 2030, BCA expects the total construction demand to reach an average of between S$39.0 billion and S$46.0 billion per year. As at 1 July 2026, the order book of the Group stands at $185.3 million. The Group will selectively tender for public and private sector projects, taking into consideration the prevailing market conditions including rising manpower and material costs. Accordingly, the Group continues to prioritise cash conservation and cost control. 1 MTI press release: MTI Upgrades 2026 GDP Growth Forecast to “4.5 to 5.5 Per Cent” 2 BCA press release: Steady Construction Demand in 2026
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Page 33 of 36 5. If a decision regarding dividend has been made: ( a ) Whether an interim (final) ordinary dividend has been declared (recommended); and Yes. ( b )(i) Amount per share in cents 0.11 Singapore cents per ordinary share. ( b )(ii) Previous corresponding period in cents Name of dividend: Ordinary (Final) Type of dividend: Cash Dividend per share 0.08 Singapore cents per ordinary share Tax rate: Tax exempt (one-tier) ( c ) Whether the dividend is before tax, net of tax or tax exempt. If before tax or net of tax, state the tax rate and the country where the dividend is derived. (If the dividend is not taxable in the hands of shareholders, this must be stated). A final t ax exempt one -tier dividend of 0.11 Singapore cents per ordinary share has been recommended in respect of the financial year ended 30 June 2026. ( d ) The date the dividend is payable To be determined and announced at a later date. ( e ) The date on which Registrable Transfers received by the company (up to 5.00pm) will be registered before entitlements to the dividend are determined. To be determined and announced at a later date. 6. If no dividend has been declared (recommended), a statement to that effect and the reason(s) for the decision. Not applicable. 7. If the Group has obtained a general mandate from shareholders for IPTs, the aggregate value of such transactions as required under Rule 920(1)(a)(ii). If no IPT mandate has been obtained, a statement to that effect. The Group has not obtained a general mandate from shareholders for IPTs pursuant to Rule 920(1)(a)(ii). 8. Acquisition or sale of shares in subsidiaries and/or associated companies under Rule 706A There was no acquisition or sale of share in subsidiaries and/or associates companies that had taken place during the period of 1 January 2026 to 30 June 2026.
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Page 34 of 36 9. Segmented revenue and results for operating segments (of the Group) in the form presented in the issuer’s most recently audited annual financial statements, with comparative information for the immediately preceding year. In the review of performance, the factors, leading to any material changes in contributions to turnover and earnings by the operating segments. Please refer to Note 2 of this appendix. 10. A breakdown of sales. "N/M" denotes Not Meaningful 11. A breakdown of the total annual dividend (in dollar value) for the issuer's latest full year and its previous full year. 12. Confirmation that the issuer has procured undertakings from all its directors and executive officers (in the format set out in Appendix 7H) under Rule 720(1) The Company has procured undertakings from all its directors and executive officers (in the format set out in Appendix 7H of the Catalist Rules) under Rule 720(1) of the Catalist Rules. 13. Disclosure of person occupying a managerial position in the issuer or any of its principal subsidiaries who is a relative of a director or chief executive officer or substantial shareholder of the issuer pursuant to Rule 704(10) in the format below. If there are no such persons, the issuer must make an appropriate negative statement. Pursuant to Rule 704(10), the Company confirms that there is no person occupying a managerial position in the Company or in any of its principal subsidiaries who is a relative of a director, chief executive officer or substantial shareholder o f the Company. Group 30.06.26 30.06.25 Change $'000 $'000 % Sales reported for first half year 53,058 65,394 (18.9) Operating profit after tax before deducting non-controlling interest reported for first half year 3,263 2,311 41.2 Sales reported for second half year 52,690 53,814 (2.1) Operating profit after tax before deducting non-controlling interest reported for second half year 1,566 3,246 (51.8) Total annual dividend FY2026 FY2025 $’000 S’000 Final tax-exempt dividend of 0.08 cents per ordinary share paid in respect of previous financial year ended 30 June 2025 635 558
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Page 35 of 36 14. Use of Proceeds On 11 September 2025, the Company announced that the Company has on 10 September 2025 entered into: a) a Share Placement Agreement with SAC Capital Private Limited as sub-placement agent to procure subscriptions for an aggregate of up to 86,158,138 fully paid -up ordinary shares in the capital of the Company at an issue price of $0.08126 per Placement Share, amounting to an aggregate consideration of up to approximately $7,001,210. b) a Convertible Bond Placement Agreement with Soochow Singapore Capital Markets (Asia) Pte. Ltd. as sub - placement agent, to procure subscribers to subscribe for unlisted convertible bonds in the aggregate principal amount of up to $3,000,000 due September 20 28 by way of placement which may be converted into shares in the capital of the Company at a conversion price of $0.09126. The Share Placement Agreement and Convertible Bond Placement Agreement were completed on 23 September 2025 and 19 September 2025 respectively. The Company has raised Net Proceeds of approximately $10. 0 million from the Placement of New Shares and Convertible Bonds. As at the date of this announcement, the Net Proceeds from the Placement of New Shares and Convertible Bonds has been utilised as follows: Net Proceeds Amount utilised Balance $’000 $’000 $’000 General working capital for the Company 3,860 (3,860) - Commercialisation of drones 3,861 - 3,861 Final development of drones 1,931 - 1,931 Total 9,652 (3,860) 5,792 Pending the deployment of the Net Proceeds for its intended use, the proceeds may be placed as deposits with financial institutions, or invested in short‐term money market or debt instruments, or for any other purposes on a short‐term basis as the Directors may deem fit in the interests of the Group. The Company will make periodic announcements on the utilisation of the Net Proceeds as and when such proceeds are materially disbursed and whether such disbursements are in accordance with the stated use of proceeds and in accordance with the percentage allocated.
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Page 36 of 36 BY ORDER OF THE BOARD David Ng Cheng Lian Anthony Koh Thong Huat Executive Chairman CEO 26 August 2026 ___________________________________________________________________________________________ This announcement has been prepared by the Company and its contents have been reviewed by the Company’s Sponsor, Hong Leong Finance Limited. It has not been examined or approved by the Exchange and the Exchange assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made, or reports contained in this announcement. The contact person for the Sponsor is Mr Kaeson Chui, Vice President, at 16 Raffles Quay, #01 -05 Hong Leong Building, Singapore 048581, Telephone (65) 6415 9886.