格隆汇7月30日丨亿仕登控股(01656.HK)公告，公司谨订于2025年8月11日(星期一)举行董事会会议，藉 以(其中包括)考虑及批准公司及其附属公司截至2025年6月30日止6个月未经审核综合财务业绩以供发布 及考虑宣派中期股息(如有)。 ...

新加坡證券交易所有限公司、香港交易及結算所有限公司及香港聯合交易所有限公司對本公告 的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部 或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 香港，二零二五年七月三十日 ISDN HOLDINGS LIMITED 億仕登控股有限公司 於本公告日期，董事會包括本公司執行董事張子鈞先生及孔德揚先生；本公司非執行董 事 Toh Hsiang-Wen Keith 先生；以及本公司獨立非執行董事陳順亮先生（主席）、蘇健 興先生及王素玲女士。 （於新加坡註冊成立的有限公司） （香港股份代號：1656） （新加坡股份代號：I07.SI） 董事會會議日期 億仕登控股有限公司（「本公司」）宣佈，本公司謹訂於二零二五年八月十一日（星期 一）舉行董事會（「董事會」）會議，藉以（其中包括）考慮及批准本公司及其附屬公 司截至二零二五年六月三十日止六個月之未經審核綜合財務業績以供發佈及考慮宣派中 期股息（如有）。 代表 億仕登控股有限公司 常務經理兼總裁 張子鈞 ...

Core Insights - The announcement highlights a strategic partnership between Yishideng Holdings and Schneider Electric to enhance the adoption of Smart Warehouse Systems (SWS) in Asia [1][2] - The collaboration aims to implement SWS in Singapore and connect with potential clients for future projects [1] - Significant improvements from the SWS deployment include a 50% increase in warehouse productivity, a 91% reduction in inventory counting time (from one month to 24 hours), a 33% reduction in inventory manpower, and near-perfect order accuracy [1] Company Developments - Yishideng's Executive Director and President, Zhang Zijun, emphasized the trend towards integrated, customized solutions in automation technology, particularly in smart warehousing [2] - The company collaborates with global technology leaders like Schneider Electric to deliver and validate advanced systems across Asia [2] - The partnership with Schneider Electric exemplifies a "global localization" strategy, focusing on advanced local technologies to enhance supply chain resilience and management [2]

Group 1 - The core point of the article is that Servo Dynamics Pte. Ltd. has signed a strategic joint sales agreement with Harmonic Drive Systems Inc. to expand HDSI's products and solutions in the Asian market, targeting significant sales growth by fiscal year 2030 [1][2] - The agreement focuses on promoting HDSI's leading products, including harmonic gear reducers, planetary gear sets, and mechatronic integration products, particularly in sectors such as semiconductor manufacturing, medical equipment, and artificial intelligence robotics [1] - The partnership aims to achieve over 2 billion Japanese yen in sales growth before the fiscal year 2030, indicating a strong commitment to expanding market presence in key Asian regions [1] Group 2 - HDSI will provide technical training and sales support to Servo Dynamics, ensuring high-value customer interactions, while SD will handle customer service and leverage its system engineering expertise and pan-Asian sales network [2] - The partnership is viewed as a significant step for HDSI towards its strategic vision of becoming a leading provider of comprehensive motion control solutions in a vibrant and opportunity-rich Asian market [2]

Financial Performance - The company reported a revenue of $372.4 million for the fiscal year 2024, reflecting an 18% growth over the past five years[10]. - Shareholder profit (PATMI) for fiscal year 2024 was $8.5 million, up from $4.95 million in fiscal year 2023[16]. - The gross profit for fiscal year 2024 was $94.9 million, compared to $91.1 million in fiscal year 2023[16]. - The company reported a basic earnings per share of 1.91 cents for fiscal year 2024, an increase from 1.12 cents in fiscal year 2023[16]. - For the fiscal year 2024, the company's revenue increased by 9.0% year-on-year, with shareholder earnings rising by 72.1%[83]. - The group's total revenue increased from SGD 341.8 million in FY2023 to SGD 372.4 million in FY2024, representing a growth of approximately SGD 30.6 million or 9.0%[98]. - Renewable energy revenue surged to SGD 22.3 million from SGD 6.7 million, with operational income contributing SGD 10.3 million and construction income SGD 12.0 million[98]. - The overall gross profit increased by 4.1% to SGD 94.9 million, while the gross profit margin decreased from 26.7% to 25.5%[100]. - The company reported a 25% increase in net profit and a 72% increase in shareholder profit due to revenue growth and prudent cost management[128]. Market Expansion and Strategy - The company has over 10,000 enterprise customers across more than 75 locations in Asia[10]. - The company has established 78 offices across the Asia-Pacific region, enhancing its market presence[17]. - The company aims to leverage the "Asia-for-Asia" transformation and the "China+1" strategy to benefit from geopolitical shifts[20]. - The company is focusing on expanding its industrial automation business and investing in new technologies to meet evolving customer needs[29]. - The company is actively pursuing more small hydropower projects in Indonesia to expand its renewable energy solutions, aligning with the government's target to increase installed renewable energy capacity to 100 GW by 2040[36]. - The company is committed to sustainable industrial growth through its green industrial solutions and clean energy product offerings[7]. - The company is focused on developing renewable energy solutions for solar, energy storage, and smart energy grids, contributing to a greener industrial future[52]. Investments and Acquisitions - The company increased its stake in IDI Laser Services Pte Ltd from 33.3% to 70%, integrating advanced laser solutions into its product portfolio, part of a strategy to promote industrial automation in Asia[35]. - The company has invested in three small hydropower stations in Southeast Asia, demonstrating its commitment to sustainable industrial practices[52]. - The company made an additional investment of USD 1 million (approximately SGD 1.36 million) into its wholly-owned subsidiary in Jiangxi for working capital[123]. - The company acquired 150,000 shares of FM and 7,500 shares of Centronics, representing 30% of their total issued share capital, for a total consideration of approximately SGD 2.05 million[122]. Corporate Governance - The board proposed a final dividend of 0.47 SGD cents for fiscal year 2024, representing a payout ratio of 25%[91]. - The board consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring a majority of independent members[180]. - The company has established mechanisms to ensure independent opinions are communicated to the board, enhancing decision-making effectiveness[176]. - The board has complied with regulations requiring at least one-third of its members to be independent non-executive directors[177]. - The company recognizes the importance of board independence for effective governance and decision-making[176]. - The board has established four committees: Audit Committee (AC), Nomination Committee (NC), Remuneration Committee (RC), and Risk Management Committee (RMC) to assist in fulfilling its responsibilities[160]. Sustainability and Social Responsibility - The company is actively constructing more hydropower stations, demonstrating strong profitability in its hydropower business[24]. - The company collaborates with local communities in Indonesia to provide renewable energy and job opportunities, enhancing its social responsibility[52]. - The company is committed to providing tailored automation and control software products based on specific industrial customer needs[48]. Future Outlook - The company maintains a cautiously optimistic outlook for fiscal year 2025, driven by capacity enhancement and market expansion[92]. - The company anticipates a GDP growth target of approximately 5% for China in 2025, focusing on boosting consumption and strategic investments[37]. - The Chinese industrial automation market is expected to grow from USD 150 billion in 2024 to USD 250 billion by 2029, presenting significant opportunities for the company[94].

Financial Performance - In the fiscal year 2024, the company achieved a revenue growth of 25% and a shareholder profit growth of 72%[5] - The total revenue for fiscal year 2024 was 372.44 million SGD, reflecting a year-on-year increase of 9.0%[6] - The net profit after tax (PAT) for the second half of 2024 increased by 41% compared to the first half[5] - Revenue for the six months ended December 31, 2024, was SGD 197.87 million, representing a 15.5% increase compared to SGD 171.36 million in the same period of 2023[18] - Full-year revenue for 2024 was SGD 372.44 million, up 9.0% from SGD 341.77 million in 2023[18] - Gross profit for the six months ended December 31, 2024, was SGD 50.52 million, a 10.9% increase from SGD 45.55 million in 2023[18] - Net profit after tax for the six months ended December 31, 2024, was SGD 8.16 million, significantly up from SGD 2.11 million in 2023[18] - The profit attributable to owners of the company for the six months ended December 31, 2024, was SGD 4.74 million, a substantial increase from SGD 0.37 million in 2023[18] - Basic earnings per share for the six months ended December 31, 2024, was SGD 1.06, compared to SGD 0.08 in 2023, marking a significant increase[18] - The net profit for the year ended December 31, 2024, was 8,522 thousand New Taiwan dollars, compared to 4,952 thousand New Taiwan dollars in 2023, representing a year-over-year increase of 72.5%[26] Dividends and Shareholder Returns - The final dividend for fiscal year 2024 was set at 0.47 SGD, a 67.9% increase from the previous fiscal year, indicating strong shareholder returns[5] - The board proposed a final dividend of SGD 0.47 per share for the year ended December 31, 2024, compared to SGD 0.28 per share in 2023[18] - The total dividends paid for the fiscal year 2024 amounted to 1,251,000 SGD, a decrease from 3,548,000 SGD in 2023, primarily due to a reduction in the dividend per share from 0.80 SGD to 0.28 SGD[91] Business Segments and Growth - The company reported a significant growth in its hydropower business, with a year-on-year revenue increase of 233%, reaching a monthly revenue of 22.30 million SGD[7] - The industrial automation segment, which constitutes 71% of total revenue, saw a year-on-year growth of 4% in fiscal year 2024[7] - The company is focusing on advanced technologies such as smart automation, IoT, and AI, which are expected to drive long-term growth[12] - The strategic expansion into Southeast Asia and Taiwan is aimed at capitalizing on the "China +1" supply chain restructuring opportunities[11] - The company plans to expand its regional markets from core areas like China and Singapore to new markets including Malaysia and Taiwan[5] Financial Position and Assets - Total assets as of December 31, 2024, were 415,905 thousand New Taiwan dollars, compared to 400,439 thousand New Taiwan dollars in 2023, reflecting a growth of 3.7%[24] - Non-current assets increased to 169,527 thousand New Taiwan dollars in 2024 from 153,766 thousand New Taiwan dollars in 2023, marking a 10.2% rise[24] - The company’s total liabilities increased to 168,693 thousand New Taiwan dollars in 2024 from 159,774 thousand New Taiwan dollars in 2023, an increase of 5.7%[24] - The company’s cash and bank balances decreased to 56,519 thousand New Taiwan dollars in 2024 from 60,033 thousand New Taiwan dollars in 2023[24] Cash Flow and Investments - The company reported a net cash inflow from operating activities of 18,381 thousand New Taiwan dollars for the year 2024, recovering from a net cash outflow of 24,147 thousand New Taiwan dollars in 2023[31] - The group invested approximately 11,520,000 SGD in property, plant, and equipment during the fiscal year 2024, compared to 6,878,000 SGD in 2023, marking an increase of 67.5%[96] - Net cash used in investing activities for the fiscal year 2024 was approximately 6.9 million SGD, mainly due to the purchase of property, plant, and equipment of about 7.5 million SGD[174] Market Outlook - The company maintains a cautious optimism for fiscal year 2025, anticipating benefits from market recovery and long-term growth strategies[9] - The company anticipates continued growth in 2025 and beyond, driven by technological advancements and supply chain evolution[12] - The company maintains a cautiously optimistic outlook for fiscal year 2025, anticipating continued recovery in industrial automation markets[136] Operational Efficiency - The gross profit margin for fiscal year 2024 decreased by 1.2 percentage points, primarily due to a shift towards lower-margin solutions in the semiconductor and electronics sectors[8] - Distribution costs increased by approximately SGD 1.5 million or 11.1% to SGD 15.4 million in the second half of 2024, primarily due to an increase in employee salaries and related costs[149] - Administrative expenses rose by approximately SGD 0.5 million or 2.5% to SGD 22.0 million in the second half of 2024, mainly due to an increase in executive directors' performance bonuses[152] Employee and Corporate Governance - As of December 31, 2024, the group has a total of 1,283 employees, up from 1,149 in 2023[186] - The group has implemented a new equity incentive plan aimed at aligning employee interests with those of shareholders and enhancing performance[186]

Financial Performance - Revenue for the first half of 2024 reached SGD 174.573 million, a 2.4% increase from SGD 170.411 million in the same period of 2023[14] - Gross profit for the first half of 2024 was SGD 44.393 million, representing a gross margin of 25.4%, compared to SGD 45.584 million and a gross margin of 26.8% in the first half of 2023[14] - Net profit for the first half of 2024 was SGD 5.806 million, down 35.1% from SGD 9.061 million in the first half of 2023[14] - Total comprehensive income for the first half of 2024 amounted to SGD 5.953 million, an increase of 6.7% from SGD 5.578 million in the same period of 2023[14] - Basic and diluted earnings per share for the first half of 2024 were SGD 0.85, down from SGD 1.04 in the first half of 2023[14] Assets and Liabilities - Total assets as of June 30, 2024, were SGD 405.835 million, a slight increase from SGD 400.439 million as of December 31, 2023[15] - Total liabilities remained stable at SGD 159.956 million as of June 30, 2024, compared to SGD 159.774 million as of December 31, 2023[15] - Total equity as of June 30, 2024, is 240,665 thousand SGD, an increase from 245,879 thousand SGD as of January 1, 2023, reflecting a decrease of approximately 2.5%[18] - The company’s total liabilities decreased to 198,622 thousand SGD as of June 30, 2024, from 202,746 thousand SGD as of January 1, 2023, representing a reduction of about 2.2%[18] Cash Flow and Investments - Cash flow from operating activities before tax for the six months ended June 30, 2024, is 8,515 thousand SGD, down from 13,346 thousand SGD in the same period of 2023, representing a decline of about 36.5%[20] - Net cash used in investing activities for the six months ended June 30, 2024, is (3,643) thousand SGD, compared to (2,232) thousand SGD in the same period of 2023, indicating an increase in cash outflow of approximately 63.5%[21] - The company reported a net cash inflow from operating activities of 15,546 thousand SGD for the six months ended June 30, 2024, compared to a net outflow of (1,149) thousand SGD in the same period of 2023[20] - The company’s cash flow from financing activities for the six months ended June 30, 2024, is (10,323) thousand SGD, compared to (1,095) thousand SGD in the same period of 2023, indicating a significant increase in cash outflow[21] Segment Performance - The engineering solutions segment reported a revenue of 131,098 thousand SGD for the first half of 2024, slightly down from 131,575 thousand SGD in the same period of 2023[30] - The renewable energy segment generated a revenue of 4,961 thousand SGD in the first half of 2024, maintaining its performance from the previous year[30] - Revenue from the China segment was 127,671 thousand SGD in the first half of 2024, up from 124,992 thousand SGD in the first half of 2023, indicating a growth of about 2.7%[39] - The Singapore segment generated 15,807 thousand SGD in revenue for the first half of 2024, compared to 16,611 thousand SGD in the same period of 2023, showing a decline of approximately 4.8%[39] Expenses and Costs - The company reported a decrease in administrative expenses to SGD 19.775 million from SGD 18.953 million in the previous year[14] - Distribution costs rose by SGD 1.9 million or 15.4% to SGD 14.4 million, mainly due to reclassification of administrative costs[84] - Administrative expenses increased by SGD 0.8 million or 4.3% to SGD 20.0 million, attributed to higher withholding taxes and maintenance costs[85] - Financing costs rose significantly to 2,767,000 SGD in 2024, up 33.6% from 2,071,000 SGD in 2023[41] Future Outlook and Strategy - The company plans to continue focusing on market expansion and new product development in the upcoming quarters[13] - The company indicated plans for future market expansion and product development, focusing on enhancing its engineering solutions and industrial computing capabilities[36] - The group continues to evaluate potential market expansions and new strategies to enhance its competitive position in the industry[30] - The company is committed to expanding its industrial automation solutions and renewable energy business while exploring new geographical markets[70] Shareholder Information - The company declared a final tax-exempt dividend of 0.28 SGD per share for 2024, down from 0.80 SGD per share in 2023, totaling 1,249,000 SGD compared to 3,532,000 SGD in the previous year[47] - The group did not recommend an interim dividend for the first half of 2024, consistent with the previous year where no dividend was declared[105] - The group’s major shareholders include Mr. Zhang, who holds 143,949,181 shares, representing approximately 32.28% of the issued share capital[106] Compliance and Governance - The company complies with the 2018 revised Singapore Code of Corporate Governance and the Hong Kong Corporate Governance Code, ensuring shareholder protection and long-term value[116] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated results for the financial period ended June 30, 2024[119] - The company has adhered to the internal compliance rules regarding securities trading by its directors and senior executives during the financial period[116]

[Financial Summary](index=1&type=section&id=Financial%20Summary) The group's revenue increased by 2.4% to S$174.6 million, but profit after tax decreased by 35.9% to S$5.8 million, with basic EPS at S$0.85 cents | Metric | Six Months Ended June 30 (2024) | Six Months Ended June 30 (2023) | Change Percentage | | :--- | :--- | :--- | :--- | | Revenue (S$ thousand) | 174,573 | 170,411 | 2.4% | | Gross Profit (S$ thousand) | 44,393 | 45,584 | -2.6% | | Profit After Tax (S$ thousand) | 5,806 | 9,061 | -35.9% | | Profit Attributable to Equity Holders (S$ thousand) | 3,781 | 4,580 | -17.4% | | Basic Earnings Per Share (S$ cents) | 0.85 | 1.04 | -18.3% | | Interim Dividend | Not Recommended | Nil | - | [Interim Condensed Consolidated Financial Statements](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the group's financial position, performance, equity changes, and cash flows for the interim period [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=A.%20Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) In H1 2024, group revenue grew 2.4% to S$175 million, but gross profit declined 2.6% to S$44.4 million, leading to a 36.2% drop in pre-tax profit due to increased costs | Item | H1 2024 (S$ thousand) | H1 2023 (S$ thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 174,573 | 170,411 | 2.4% | | Gross Profit | 44,393 | 45,584 | -2.6% | | Distribution Costs | (14,381) | (12,459) | 15.4% | | Finance Costs | (2,767) | (2,071) | 33.6% | | Profit Before Income Tax | 8,515 | 13,346 | -36.2% | | Profit for the Period | 5,806 | 9,061 | -35.9% | | Profit Attributable to Equity Holders of the Company | 3,781 | 4,580 | -17.4% | | Basic Earnings Per Share (S$ cents) | 0.85 | 1.04 | -18.3% | [Consolidated Statement of Financial Position](index=4&type=section&id=B.%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, total assets increased slightly to S$405.8 million, with total equity rising to S$245.9 million, while total liabilities remained stable at S$160.0 million | Item | June 30, 2024 (S$ thousand) | December 31, 2023 (S$ thousand) | | :--- | :--- | :--- | | **Assets** | | | | Total Non-Current Assets | 157,798 | 153,766 | | Total Current Assets | 248,037 | 246,673 | | **Total Assets** | **405,835** | **400,439** | | **Equity and Liabilities** | | | | Total Equity | 245,879 | 240,665 | | Total Non-Current Liabilities | 57,202 | 61,628 | | Total Current Liabilities | 102,754 | 98,146 | | **Total Liabilities** | **159,956** | **159,774** | | **Total Equity and Liabilities** | **405,835** | **400,439** | [Interim Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=C.%20Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity increased from S$241 million at the start of 2024 to S$246 million by June 30, driven by the period's profit and offset by dividends to non-controlling interests - Equity attributable to equity holders of the Company increased from **S$199 million** at the beginning of 2024 to **S$203 million**, primarily due to **S$3.78 million** profit for the period and **S$0.34 million** in other comprehensive income[10](index=10&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=D.%20Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Net cash from operating activities significantly improved to S$15.55 million in H1 2024, while investing activities resulted in a S$3.64 million outflow and financing activities a S$10.32 million outflow | Item | H1 2024 (S$ thousand) | H1 2023 (S$ thousand) | | :--- | :--- | :--- | | Net Cash From/(Used in) Operating Activities | 15,546 | (1,149) | | Net Cash Used in Investing Activities | (3,643) | (2,232) | | Net Cash Used in Financing Activities | (10,323) | (1,095) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 1,580 | (4,476) | | Cash and Cash Equivalents at End of Period | 60,071 | 49,572 | [Notes to the Interim Condensed Consolidated Financial Statements](index=9&type=section&id=E.%20Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on segment information, earnings per share, dividends, and significant post-reporting period events [Segment Information](index=10&type=section&id=5.%20Segment%20Information) The group operates across four segments, with motion control as the largest revenue contributor at 75% of external sales, and China being the dominant market External Revenue by Business Segment (H1 2024) | Business Segment | Revenue (S$ thousand) | Share of Total Revenue | | :--- | :--- | :--- | | Engineering Solutions - Motion Control | 131,098 | 75.1% | | Other Professional – Engineering Solutions | 34,805 | 19.9% | | Industrial Computing Solutions | 3,101 | 1.8% | | Renewable Energy | 4,961 | 2.8% | | Others | 608 | 0.3% | | **Total** | **174,573** | **100.0%** | External Revenue by Geographical Region (H1 2024) | Region | Revenue (S$ thousand) | Share of Total Revenue | | :--- | :--- | :--- | | China | 127,671 | 73.1% | | Singapore | 15,807 | 9.1% | | Vietnam | 7,866 | 4.5% | | Indonesia | 5,190 | 3.0% | | Malaysia | 4,858 | 2.8% | | Hong Kong | 4,268 | 2.4% | | Others | 8,913 | 5.1% | | **Total** | **174,573** | **100.0%** | - The Renewable Energy segment's performance remained largely stable, with segment results at **S$2.308 million** (H1 2023: S$2.326 million), while revenue more than doubled from **S$2.351 million** to **S$4.961 million**[27](index=27&type=chunk) - The core "Engineering Solutions - Motion Control" segment's results decreased by **30.9%** year-on-year, from **S$9.396 million** to **S$6.488 million**[27](index=27&type=chunk) [Earnings Per Share](index=18&type=section&id=10.%20Earnings%20Per%20Share) Basic earnings per share for H1 2024 was S$0.85 cents, a decrease from S$1.04 cents in the prior year, based on S$3.781 million net profit | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders (S$ thousand) | 3,781 | 4,580 | | Weighted Average Number of Ordinary Shares | 446,000,209 | 440,342,787 | | **Basic and Diluted Earnings Per Share (S$ cents)** | **0.85** | **1.04** | [Dividends](index=19&type=section&id=11.%20Dividends) The Board did not recommend an interim dividend for the six months ended June 30, 2024, but a final dividend for FY2023 was paid in August - The Board did not recommend an interim dividend for 2024 (H1 2023: nil)[1](index=1&type=chunk)[107](index=107&type=chunk) - The company paid a final dividend for FY2023 of **S$0.28 cents** per share, totaling approximately **S$1.249 million**, on August 26, 2024[46](index=46&type=chunk)[47](index=47&type=chunk) [Material Events](index=24&type=section&id=20.%20Material%20Events) Post-reporting period, the company established a joint venture in Malaysia for semiconductor and robotics integration and increased its stake in IDI Laser Pte Ltd to 70% - On July 4, 2024, a joint venture, Fuji Master (Penang) Sdn. Bhd., was established in Malaysia, with the Group holding a **75.5%** effective interest, focusing on semiconductor and robotics system integration[63](index=63&type=chunk) - On August 5, 2024, the effective equity interest in IDI Laser Pte Ltd was increased from **33.33%** to **70.00%** through acquisition and subscription[64](index=64&type=chunk) [Management Discussion and Analysis](index=26&type=section&id=F.%20Management%20Discussion%20and%20Analysis) This section provides an overview of the group's business performance, market outlook, and detailed financial review for the reporting period [Business Review](index=26&type=section&id=F.1%20Business%20Review) H1 2024 revenue grew 2.4% driven by China and renewable energy, but gross margin declined to 25.4% and net profit fell 35.9% due to increased costs and product mix changes - Revenue for H1 2024 increased by **2.4%** year-on-year, primarily driven by increased revenue contribution from China and the full commercialization of three mini-hydropower plants[65](index=65&type=chunk) - China Industrial Automation Business: Revenue increased by **3.2%** year-on-year, accounting for **75.6%** of total revenue - Southeast Asia Industrial Automation Business: Revenue decreased by **9.3%** year-on-year, accounting for **19.2%** of total revenue - Renewable Energy Business: Revenue increased by **111.0%** to **S$5.0 million**, accounting for **2.8%** of total revenue[66](index=66&type=chunk) - Gross profit margin decreased from **26.7%** in the prior year to **25.4%**, primarily reflecting changes in product mix across industries such as electronics, semiconductors, and medical[67](index=67&type=chunk)[73](index=73&type=chunk) - Due to a **33.6%** increase in finance costs and a **4.3%** increase in administrative expenses, the Group's net profit decreased by **35.9%** year-on-year to **S$5.8 million**[67](index=67&type=chunk)[69](index=69&type=chunk) [Business Outlook](index=28&type=section&id=F.2%20Business%20Outlook) Management is cautiously optimistic about market recovery in China and Southeast Asia, driven by manufacturing expansion and government incentives, despite macroeconomic uncertainties - Management believes that the manufacturing and industrial sectors in China and Southeast Asia are gradually recovering, with China's Caixin PMI averaging **51.3** in H1 2024, remaining in expansionary territory[70](index=70&type=chunk) - The Chinese government and private sector are addressing labor shortages by adopting smart manufacturing and advanced technologies, creating opportunities for the Group as a full-stack industrial automation solutions provider[70](index=70&type=chunk) - The Southeast Asian market remains a growth market for industrial automation in the long term, driven by wage inflation and the development of advanced manufacturing[70](index=70&type=chunk) [Financial Review](index=29&type=section&id=F.3%20Financial%20Review) This section analyzes the group's H1 2024 financial performance, highlighting revenue drivers, margin pressures, cost increases, balance sheet changes, and cash flow dynamics [Statement of Comprehensive Income Analysis](index=29&type=section&id=F.3.1%20Statement%20of%20Comprehensive%20Income%20Analysis) H1 2024 revenue grew 2.4% to S$175 million, but gross margin declined to 25.4%, while distribution, administrative, and finance costs all increased, leading to a drop in pre-tax profit | Business Segment | H1 2024 Revenue (S$ thousand) | H1 2023 Revenue (S$ thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Industrial Automation Solutions | 169,612 | 168,060 | 0.9% | | Renewable Energy | 4,961 | 2,351 | 111.0% | - The gross profit margin for the Industrial Automation Solutions segment decreased from **25.8%** to **23.5%**, primarily due to increased pass-through sales and heightened competition in cyclical industries like semiconductors and electronics[72](index=72&type=chunk)[73](index=73&type=chunk) [Statement of Financial Position Analysis](index=31&type=section&id=F.3.2%20Statement%20of%20Financial%20Position%20Analysis) As of June 30, 2024, property, plant, and equipment increased by S$1.6 million, investments in associates rose by S$2.0 million, while inventory decreased and bank borrowings reduced to S$70.8 million - Inventories: Decreased by **4.8%** to **S$69.5 million** due to fulfilling customer orders - Trade and Other Receivables: Increased by **3.6%** to **S$114.6 million**, primarily due to higher trade receivables - Trade and Other Payables: Increased by **2.8%** to **S$66.5 million**, mainly due to higher trade payables - Bank Borrowings: Decreased by **6.5%** to **S$70.8 million**, as repayments exceeded new borrowings[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk)[90](index=90&type=chunk) [Statement of Cash Flows Analysis](index=32&type=section&id=F.3.3%20Statement%20of%20Cash%20Flows%20Analysis) H1 2024 saw a significant improvement in operating cash flow to S$15.5 million, while investing and financing activities resulted in net outflows of S$3.6 million and S$10.3 million, respectively - Net cash generated from operating activities was **S$15.5 million**, a significant improvement from a net outflow of **S$1.1 million** in the prior year, primarily due to positive working capital changes from reduced inventories and increased payables[91](index=91&type=chunk) [Liquidity and Financial Resources](index=33&type=section&id=F.4%20Liquidity%20and%20Financial%20Resources) As of June 30, 2024, the group maintained healthy liquidity with S$60.8 million in cash, a quick ratio of 1.7x, and a reduced gearing ratio of 35.1% | Metric | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and Bank Balances (S$ million) | 60.8 | 60.0 | | Quick Ratio | 1.7 times | 1.7 times | | Total Bank Borrowings (S$ million) | 70.8 | 75.7 | | Gearing Ratio | 35.1% | 38.2% | [Employees and Remuneration Policies](index=34&type=section&id=F.5%20Employees%20and%20Remuneration%20Policies) The group's employee count increased to 1,177 as of June 30, 2024, with market-competitive remuneration policies and a performance-sharing plan to incentivize key staff - As of June 30, 2024, the Group's total headcount was **1,177** employees, an increase of **28** from the end of 2023[101](index=101&type=chunk) [Other Regulatory Information Disclosures](index=36&type=section&id=G.%20Other%20Information%20Required%20by%20SGX%20Listing%20Rule%20Appendix%207.2%20and%20HKEX%20Listing%20Rule%20Appendix%20D2) This section covers dividend decisions, disclosures on share acquisitions and disposals, and the Audit Committee's review of the interim financial results [Dividend Information](index=36&type=section&id=G.5%20Dividend%20Information) The Board decided not to declare an interim dividend for H1 2024 to conserve funds for business development amidst an uncertain economic outlook - The Board did not declare or recommend an interim dividend for 2024 to conserve funds for uncertain operating environments and business development[110](index=110&type=chunk) [Disclosure of Acquisitions or Disposals of Shares During the Period](index=37&type=section&id=G.9%20Disclosure%20of%20Acquisitions%20%28including%20incorporations%29%20or%20Disposals%20of%20Shares%20Since%20the%20End%20of%20the%20Previous%20Reporting%20Period%20as%20Required%20by%20SGX%20Listing%20Manual%20Rule%20706A) The company made capital injections into subsidiaries for working capital and acquired stakes in FM and Centronics, making them associates, since the last reporting period - On February 22, 2024, **30%** stakes in FM and Centronics were acquired for approximately **S$2.028 million** and **S$0.025 million** respectively, making both companies associates of the Group[118](index=118&type=chunk) - Multiple capital injections were made into wholly-owned subsidiaries in mainland China and Malaysia during the period to support their working capital requirements[116](index=116&type=chunk)[118](index=118&type=chunk) [Audit Committee](index=39&type=section&id=G.12%20Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed the unaudited consolidated results and confirmed their compliance with accounting standards and listing rules - The Audit Committee has reviewed the unaudited financial results for the period and confirmed their compliance and adequacy of disclosures[122](index=122&type=chunk)

Financial Performance - Revenue for the fiscal year 2023 was $341.8 million, a decrease from $370.8 million in 2022, marking a decline of approximately 7.3%[11] - The company reported a profit before tax of $18.9 million for 2023, down from $32.0 million in 2022, representing a decrease of about 41.1%[11] - The total revenue for fiscal year 2023 decreased by 7.8% to 341.8 million SGD compared to 370.8 million SGD in fiscal year 2022[81] - The revenue and profitability for the fiscal year 2023 were severely impacted by the global semiconductor and electronic products downturn[71] - The company's industrial automation business revenue in Southeast Asia decreased by 28.3% due to the downturn in the semiconductor and electronics sectors, yet it did not experience abnormal customer attrition[29] - In the fiscal year 2023, the industrial automation business in China, which accounts for 73% of revenue, grew by 6.6% at constant exchange rates and 2.4% in reported terms despite a 2.0% decline in the overall market[72] Cash and Investments - Cash and cash equivalents increased for the fifth consecutive year, reaching $59.3 million, up from $54.1 million in 2022, reflecting a growth of approximately 4.0%[11] - As of December 31, 2023, the company reported cash and bank balances of SGD 60.0 million[70] - The company maintained a strong balance sheet with cash and bank balances of 60.0 million SGD as of December 31, 2023[75] - The company plans to invest $30 million in sustainable practices over the next three years to improve operational efficiency[58] Market Position and Growth - The company has maintained a continuous revenue growth rate of over 17% for five years[9] - The potential market for industrial automation in Asia is estimated to exceed $600 billion[9] - The company has increased its market share in the Chinese industrial automation sector despite global downturns in the semiconductor and electronics industries[13] - The company has over 10,000 enterprise customers across Asia and operates in 76 locations[9] - The company anticipates a gradual recovery in the Chinese automotive sector, with a projected growth of 20% to 30% in car exports in 2024 following a significant CAGR of over 70% from 2020 to 2023[32] - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by 2025[58] Sustainable Practices - The company is committed to sustainable industrial growth through its clean industry solutions and clean energy product portfolio[5] - The company has invested in three small hydropower stations in Southeast Asia, demonstrating its commitment to sustainable industrial practices in the region[43] - The company has successfully commercialized three hydropower stations in 2023, generating an annual recurring net cash income of approximately 8 million SGD[19][20] - The company has received commercial operation approvals for three small hydropower stations in Indonesia, increasing total installed capacity to 24.6 MW, expected to generate approximately SGD 8 million in annual sustainable income over the next 20 to 25 years[30] - The gross profit margin for renewable energy surged to 91.7% in fiscal year 2023 following the commercialization of three hydroelectric plants[84] Corporate Governance - The company has adhered to the corporate governance principles set forth in the 2018 Code and the Hong Kong Corporate Governance Code during the fiscal year 2023[130] - The board of directors is responsible for preparing the financial statements of the company and the group, ensuring no significant doubts about the group's ability to continue as a going concern[133] - The company emphasizes the importance of training and workshops for all directors to enhance their understanding of the business and strategic direction[135] - The board has established a code of conduct and ethical standards to ensure accountability within the company[133] - The company has implemented guidelines to ensure that significant financing, investment, and acquisition matters require board approval[152] Board Composition and Diversity - The company plans to appoint at least one female director to the board at the upcoming annual general meeting to enhance gender diversity[173] - The board has established a nomination committee that has held two meetings in the fiscal year 2023 to review the board's structure and assess the independence of non-executive directors[177] - The company has a diversity policy in place to ensure a balance of skills, experience, and perspectives among board members[172] - The board includes six directors, with independent non-executive directors holding key positions in various committees, ensuring governance and oversight[162] Strategic Initiatives - The company has enhanced its expertise in industrial cloud, AI, and software, delivering integrated "full-stack" solutions that have received high recognition from customers[34] - New product launches included two innovative technology solutions expected to generate an additional $50 million in revenue[58] - A strategic acquisition of a competitor was completed for $100 million, enhancing the company's product offerings and market reach[58] Employee and Operational Metrics - As of December 31, 2023, the group employed a total of 1,149 employees, up from 1,124 in 2022[121] - Customer satisfaction ratings improved to 90%, reflecting the effectiveness of recent service enhancements[58] - The company aims to reduce operational costs by 15% through process optimization initiatives[58] Financial Management - Research and development expenses increased by 10%, totaling $20 million, to support new technology initiatives[58] - Distribution costs decreased by approximately SGD 2.4 million or 8.3% to SGD 26.3 million, mainly due to reduced employee commissions and related costs[86] - Administrative expenses increased by approximately SGD 1.3 million or 3.2% to SGD 40.4 million, primarily due to increased employee costs from a newly merged subsidiary[87] - Financing costs increased by approximately SGD 0.9 million due to increased bank borrowings and rising interest rates[91] Future Outlook - The company provided guidance for the next fiscal year, projecting a revenue growth of 25% and aiming to reach $625 million[58] - The company expresses cautious optimism regarding a rapid industry recovery, reaffirming its commitment to delivering higher value to stakeholders[33]

Dividend Information - The proposed final dividend for the year ending December 31, 2023, is 0.28 Singapore cents per ordinary share, compared to 0.80 Singapore cents for the year ending December 31, 2022, representing a decrease of 65%[2]. - The company declared a final dividend of 0.80 SGD per ordinary share, which was paid to shareholders on August 24, 2023[79]. - The company reported cash dividends of 1,667 thousand SGD and scrip dividends of 1,881 thousand SGD for the six months ending December 31, 2023, totaling 3,548 thousand SGD[80]. - The company issued 4,531,676 new ordinary shares under its scrip dividend scheme at a price of 0.415 SGD for Singapore shareholders and 2.403 HKD for Hong Kong shareholders[116]. Financial Performance - The total comprehensive income for the year ending December 31, 2023, is reported at 12,406 thousand Singapore dollars, a significant increase from the previous year's total comprehensive loss of 31 thousand Singapore dollars[9]. - The company reported a net profit of 12,437 thousand Singapore dollars for the year, compared to a loss in the previous year, indicating a strong recovery in performance[9]. - The company reported a net profit before tax of 18,873 thousand SGD for the twelve months ended December 31, 2023, compared to 32,027 thousand SGD in 2022, representing a decrease of approximately 41.5%[50]. - The net profit after tax attributable to non-controlling interests for the first half of 2023 was 9,061 thousand SGD, down 43.8% from 16,133 thousand SGD in the same period of 2022[98]. - The net profit after tax attributable to non-controlling interests for the second half of 2023 was 2,111 thousand SGD, a significant drop of 69.6% from 6,946 thousand SGD in the previous year[98]. Revenue and Sales - The total revenue from contracts with customers reached 172,612 thousand SGD for the six months ending December 31, 2023[32]. - The company recorded total revenue of 341,766 thousand SGD for the year ended December 31, 2023, compared to 370,779 thousand SGD in 2022, reflecting a decrease of approximately 7.8%[61]. - Total revenue from contracts with customers reached 341,766 thousand SGD for the twelve months ending February 3, 2023, compared to 370,779 thousand SGD for the previous year, reflecting a decrease of approximately 7.8%[66]. - Revenue from the China region amounted to 249,136 thousand SGD for the twelve months ending February 3, 2023, compared to 243,202 thousand SGD for the previous year, indicating a growth of about 2.0%[66]. - The Singapore segment generated revenue of 32,335 thousand SGD for the twelve months ending February 3, 2023, down from 58,632 thousand SGD in the previous year, representing a decline of approximately 44.8%[66]. Assets and Liabilities - The total assets as of December 31, 2023, amount to 400,439 thousand Singapore dollars, showing a slight increase from 400,370 thousand Singapore dollars as of December 31, 2022[15]. - The total equity attributable to the owners of the company is 198,622 thousand Singapore dollars, a decrease from 197,829 thousand Singapore dollars in the previous year[16]. - The total liabilities increased to 159,774 thousand SGD as of December 31, 2023, compared to 157,770 thousand SGD in 2022, marking an increase of about 1.3%[61]. - The non-current liabilities have increased significantly to 61,628 thousand Singapore dollars from 15,602 thousand Singapore dollars in the previous year, indicating a rise in long-term financial obligations[15]. - The current liabilities decreased to 98,146 thousand Singapore dollars from 142,168 thousand Singapore dollars, reflecting improved short-term financial management[15]. Cash Flow and Expenses - Operating cash flow before changes in working capital was 32,812 thousand SGD for the twelve months ended December 31, 2023, down from 44,808 thousand SGD in 2022, indicating a decline of about 26.8%[50]. - Financing costs increased by 26% year-on-year to 4.4 million SGD due to higher bank borrowings and interest rates[153]. - Operating expenses were slightly reduced by 1 million SGD during the fiscal year 2023, reflecting the company's confidence in capability-building investments despite market softness[152]. - Administrative expenses increased by approximately SGD 1.3 million or 3.2% to SGD 40.4 million, primarily due to higher employee costs and office expenses[164]. Market and Strategic Outlook - The company plans to continue its market expansion and product development strategies to enhance future growth prospects[10]. - The group remains cautiously optimistic about economic recovery, noting that the manufacturing PMI in China crossed the 50-point threshold in December 2023 and January 2024[131]. - The company plans to leverage the current economic softness to improve future market access and share acquisition capabilities[131]. - The semiconductor industry is expected to see a cyclical recovery in 2024, which may lead to a broader recovery in the electronics sector, according to SEMI[157]. Segment Performance - The revenue from the industrial computing solutions segment in China was 124,144 thousand SGD for the six months ending December 31, 2023[32]. - The company’s revenue from the engineering solutions segment was 260,159 thousand SGD for the year ended December 31, 2023, compared to 278,462 thousand SGD in 2022, indicating a decline of approximately 6.5%[61]. - The industrial automation business in China, which accounts for 73% of revenue, grew by 6.6% year-on-year at constant exchange rates, despite a 2.0% decline in the overall market size[124]. - Renewable energy revenue increased significantly to 5.6 million SGD from 1.6 million SGD, with operational revenue from three hydropower stations recognized at 3.1 million SGD for the fiscal year 2023[188]. Other Financial Metrics - The basic earnings per share for the fiscal year 2023 were 0.80 SGD, down from 1.45 SGD in 2022[107]. - The company’s impairment provisions for trade and other receivables were 1,748 thousand SGD for the twelve months ended December 31, 2023, compared to 127 thousand SGD in 2022, showing a substantial rise[50]. - The gross profit margin decreased by 1.9 percentage points in fiscal year 2023, attributed to the cyclical downturn in high-margin sectors like semiconductors and electronics[125]. - The gross profit for the second half of 2023 decreased by SGD 5.0 million or 9.7%, and for the fiscal year 2023, it decreased by SGD 14.8 million or 13.9%[161].