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BUSINESS PERFORMANCE UPDATE SECOND QUARTER & SIX MONTHS ENDED 30 June 2026 28 July 2026
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Note on Forward-Looking Statements This presentation may contain certain forward-looking statements including, but not limited to, statements as to future operating results and plans. These statements are based on our assumptions and estimates and are subject to known and unknown risks and uncertainties and other factors which may cause the actual results, performance or achievements of the Group to differ materially from any future results, performance or achievements expressed or implied by those projected in the forward-looking statements. Consequently, readers are cautioned not to place undue reliance on any forward-looking statements. All $ dollar amounts are in Singapore dollars unless otherwise specified.
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Performance Review
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Performance Review Quarterly Financial Performance Summary $ Million 2Q 2026 1Q 2026 QoQ % Change Revenue 86.7 64.7 34.0 EBITDA 8.6 6.0 43.3 Profit Before Tax 7.3 4.7 55.3 PBT Margin (%) 8.4 7.3 110 bps Income Tax Expense (1.9) (0.7) 171.4 Effective Tax Rate (%) 26.0 15.5 1,050 bps Net Profit 5.4 4.0 35.0 Net Profit Margin (%) 6.2 6.1 10 bps Basic and Diluted EPS (cents) 0.7 0.51 37.3 Quarter on Quarter (QoQ) Comparison: ▪ Higher revenue and net profit QoQ, including contributions from new customers. ▪ The higher effective tax rate of 26% resulted from higher production activities in Malaysia, absence of tax incentives in certain jurisdictions and non-recognition of deferred tax credit related to loss at a subsidiary entity. 1. Weighted average number of 771,793,545 shares were used for the computation of basic and diluted EPS for 2Q 2026, and 1Q 2026.
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Performance Review Quarterly Financial Performance Summary $ Million 2Q 2026 2Q 2025 YoY % Change Revenue 86.7 143.4 (39.5) EBITDA 8.6 19.3 (55.4) Profit Before Tax 7.3 17.1 (57.3) PBT Margin (%) 8.4 11.9 (350 bps) Income Tax Expense (1.9) (2.5) (24.0) Effective Tax Rate (%) 26.0 14.6 1,140 bps Net Profit 5.4 14.6 (63.0) Net Profit Margin (%) 6.2 10.2 (400 bps) Basic and Diluted EPS (cents) 0.7 1.88 (62.8) Year on Year (YoY) Comparison: ▪ Revenue declined 39.5% yoy to $86.7 million mainly due to reduced volume from existing customers arising from increased competition. ▪ Net profit decreased by 63.0% yoy to $5.4 million due to lower revenue, reduced interest income of $0.7 million and foreign exchange loss of $1.2 million. 1. Weighted average number of 771,793,545 shares were used for the computation of basic and diluted EPS for 2Q 2026 and 2Q 2025.
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Performance Review Half-Yearly Financial Performance Summary $ Million 1H 2026 1H 2025 YoY % Change Revenue 151.4 185.4 (18.4) EBITDA 14.6 23.4 (37.6) Profit Before Tax 12.0 18.9 (36.5) PBT Margin (%) 7.9 10.2 (230 bps) Income Tax Expense (2.6) (2.8) (7.2) Effective Tax Rate (%) 21.7 14.8 690 bps Net Profit 9.4 16.1 (41.7) Net Profit Margin (%) 6.2 8.7 (250 bps) Basic and Diluted EPS (cents) 1.21 2.08 (41.8) For the half-year ended 30 June 2026, ▪ Revenue declined by 18.4% primarily due to reduced volume from existing customers arising from increased competition. ▪ Net profit decreased by 41.7% yoy to $9.4 million due to lower revenue, lower interest income resulting from lower interest rates and $2.8 million of foreign exchange loss arising from the weaker US dollar. ▪ Net profit also included a $2.5 million gain from the sale of property in Dongguan. 1. Weighted average number of 771,793,545 shares were used for the computation of basic and diluted EPS for 1H 2026 and 1H 2025. 2. Lower bank balance due to payment of dividend, amounting to $84.9 million in respect of final and special dividends for FY2025, paid on 30 April 2026.
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Performance Review First Half 2026 Geographical Revenue North America 68.8% Europe 25.0% Singapore 1.3% Others 4.9% 1H 2025 Others comprises Australia, China, Hong Kong, India, Japan, South Korea, Thailand and Vietnam. North America 75.6% Europe 17.7% Singapore 1.1% Others 5.6% Sales 1H 2026 $185.4 Million $151.4 Million
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Performance Review Free Cash Flow ($ Million) 1H FY2026 1H FY2025 Profit before income tax 12.0 18.9 Operating cash flows before changes in working capital 12.2 18.8 Working capital movements 6.0 (23.6) Cash from operations 18.2 (4.8) Net cash from operating activities 13.2 (8.8) Less Capital Expenditure (0.3) (0.7) Free Cash Flow 12.9 (9.5) 1. Capital expenditure excludes non-cash acquisition of property, plant and equipment. ▪ For the half-year ended 30 June 2026, the Group generated: -net cash of $13.2 million from its operating activities; and -free cash flow of $12.9 million.
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Performance Review Balance Sheet Summary ($ Million) 30 June 2026 31 December 2025 Cash & Bank Balances 59.0 123.3 Short-term Investments 145.8 146.2 Lease Liabilities (5.5) (3.3) Total Bank Borrowings (8.7) (9.8) Net Cash 190.6 256.4 Current Assets 330.9 400.4 Current Liabilities (125.7) (124.9) Working Capital 205.2 275.5 Total Net Assets 218.9 291.6 Retained Profits 21.5 97.1 Share Capital & Reserves 197.4 194.5 Total Equity 218.9 291.6 Net Asset Value per Share (cents)1 28.0 38.0 1. NAV per share as of 30 June 2026 and 31 December 2025 was computed based on the net assets of the Group and 771,793,545 ordinary shares (excluding Treasury Shares). ▪ Net cash position of $190.6 million as of 30 June 2026. ▪ Lower net cash position due to dividend paid on 30 April 2026 amounting to $84.9 million. ▪ Short-term investments as of 30 June 2026 consisted mainly of structured deposits held with banks with tenures of 1-9 months and Singapore government treasury bills.
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Interim Dividend
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Interim Dividend Declared One-Tier, Tax Exempt Cash Dividend of 0.5 cent a Share ▪ The Board declared one-tier, tax exempt interim cash dividend of 0.5 cent a share, amounting to $3.9 million. ▪ The cash dividend represents a payout ratio of 41.3% of the Group’s earnings for the first half of 2026. ▪ Payment Date: 12 August 2026.
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New Project Updates
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1. New project order refers to new product secured from existing and new customers. New Project Updates Maintain New Product Introduction Pipeline ▪ For the half-year ended 30 June 2026, the Group: -secured 13 new project orders1 and added 4 new customers across the consumer, security and renewable energy segments; and -progressed 13 project orders to commercial production. ▪ Focus on efficient delivery of contracted orders as part of revenue diversification efforts to broaden customer base. ▪ Contributions expected to build gradually over the medium term.
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Outlook
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Outlook Building a Stronger Foundation for the Future ▪ Navigating near-term demand softness in 2H 2026 -New Product Introduction (“NPI”) project ramp-up and revenue contributions expected to build gradually but will not fully offset near-term demand softness. ▪ Strengthening long-term growth drivers -Advancing customer and revenue diversification initiatives, including pursuing opportunities in renewable energy and MedTech segments; and -Developing proprietary products in Intelligent Lighting Solutions and Vision Technology Solutions segments. ▪ Executing with discipline -Focusing on disciplined execution, prudent cost management and supply chain planning; and -Maintaining operational agility to navigate changing market conditions. ▪ Outlook -Expect to remain profitable for FY2026, barring unforeseen circumstances.
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Thank You