精技集团(03302) - 2025 - 中期财报

Company Information This section provides essential corporate details for Precision Group Limited, including its governance structure, key personnel, and operational addresses - The Board of Directors includes executive directors (Mr. Lim Kok Chye as CEO), non-executive directors (Mr. Loh Kian Wah as Chairman), and independent non-executive directors[6] - The company has established an Audit Committee, Nomination Committee, and Remuneration Committee to enhance corporate governance[6] - The company's registered office and principal place of business in Singapore are at 1 Changi North Street 1, Singapore 498789, with its principal place of business in Hong Kong at 31/F, 148 Electric Road, North Point[6][7] Definitions This section defines key terms, including corporate entities, regulations, geographical areas, currency units, and business types, for clear report understanding - The report defines "the Company" (Precision Group Limited) and its major shareholder "China Everbright Holdings" with an approximate 28.58% stake[8] - Key business terms such as "Electronic Manufacturing Services" (EMS) and "Original Design Manufacturing" (ODM) are clearly defined[8] - Currency units include Hong Kong Dollars, Renminbi, Singapore Dollars, and US Dollars, with "China" explicitly excluding Hong Kong, Macau, and Taiwan[8][9] Financial Summary This section graphically summarizes Precision Group's key financial performance metrics for 2022-2024 and H1 2024 vs H1 2025 Revenue, Gross Profit, and Net Profit (S$ million) | Metric | H1 2024 | H1 2025 | | :--- | :--- | :--- | | Revenue | 51.5 | 50.3 | | Gross Profit | 4.8 | 4.5 | | Net Profit / (Loss) | 2.9 | (3.4) | Total Assets, Total Liabilities, and Total Equity (S$ million) | Metric | 2024 | H1 2025 | | :--- | :--- | :--- | | Total Assets | 157.6 | 149.7 | | Total Liabilities | 55.1 | 53.9 | | Total Equity | 102.5 | 95.7 | - In H1 2025, the Group recorded a net loss of S$3.4 million, compared to a net profit of S$2.9 million in H1 2024, primarily due to a reduction in one-off book income[12][38] Management Discussion and Analysis This section details Precision Group's operating overview, segment performance, financial review, liquidity, capital resources, future plans, and risk management strategies for the six months ended June 30, 2025 1. Overview Precision Group, a contract manufacturer established in 1988, focuses on the semiconductor processing equipment industry through its Electronic Manufacturing Services (EMS), Original Design Manufacturing (ODM), and Investment segments, with EMS contributing 93.9% of total revenue in H1 2025 - Precision Group is a contract manufacturer in the semiconductor processing equipment industry, with production facilities in Singapore, China, the Philippines, and Malaysia[17] H1 2025 Revenue Contribution by Business Segment | Business Segment | Revenue Contribution | | :--- | :--- | | Electronic Manufacturing Services | Approx. 93.9% | | Original Design Manufacturing | Approx. 3.7% | | Investment | Approx. 2.4% | - The Group's business is affected by the semiconductor industry downturn, reduced new investments, sanctions, and US tariffs, leading to an uncertain business outlook[17] - Artificial Intelligence (AI) chip manufacturers and the Chinese semiconductor industry (primarily low-value assembly and wafer testing) are bright spots within the sector[18] Business Review and Outlook The Group actively responds to changes in the business environment, but revenue decreased due to trade uncertainties and reduced new investments, causing project delays, with slow semiconductor recovery leading to postponed new business development plans and varied performance across segments Electronic Manufacturing Services Segment For the six months ended June 30, 2025, the Electronic Manufacturing Services segment's total revenue slightly decreased by approximately 0.3% year-on-year, primarily due to lower sales volume, but a significant agreement with a Singaporean wafer fabrication equipment company is nearing completion, signaling potential recovery - Electronic Manufacturing Services segment revenue slightly decreased by 0.3%, primarily due to lower sales volume[20] - An agreement with a Singaporean wafer fabrication equipment company for a substantial volume of complete wafer fabrication equipment contracts is nearing completion, expected to drive revenue recovery[21] - Revenue was impacted by a significant decline in contract manufacturing for China's largest low-cost LED ball bonder customer and reduced equipment demand from Japanese clients[22] Original Design Manufacturing Segment For the six months ended June 30, 2025, the Original Design Manufacturing segment's total revenue significantly decreased by approximately 41.9%, marking its worst historical performance due to a challenging global semiconductor business environment and difficulties in selling obsolete products, prompting the CEO to take over marketing and plan for equipment manufacturing process transfer to the EMS segment and human resource restructuring - Original Design Manufacturing segment revenue decreased by 41.9%, its worst performance to date, primarily due to declining customer demand and difficulties in selling obsolete products[23] - The CEO has taken over the marketing department, aiming to secure more capital equipment orders from developing OSAT industries in Vietnam, India, and the Philippines[23] - Plans include transferring Original Design Manufacturing equipment, prototyping, and future production processes to the Electronic Manufacturing Services segment, alongside human resource restructuring to enhance efficiency[23] Investment Segment For the six months ended June 30, 2025, the Investment segment's fund management fee income increased by 23.0% year-on-year, driven by the establishment of new funds, with Shanghai Guangpu managing seven funds totaling approximately S$141.7 million in assets under management, despite ongoing financial pressures in China's capital markets and geopolitical challenges impacting new funding sources - Fund management fee income increased by 23.0%, primarily due to the establishment of new funds[24] - Shanghai Guangpu manages seven funds, with total assets under management of approximately S$141.7 million as of June 30, 2025[24] - China's capital market faces financial pressure, and geopolitical issues and tariff conflicts create an uncertain business outlook, making new funding sources a challenge[24] 2. Financial Review This section analyzes the Group's financial metrics for the six months ended June 30, 2025, including revenue, cost of sales, gross profit, other income, selling and marketing expenses, general and administrative expenses, other gains and losses, finance costs, loss before tax, income tax, and period loss, comparing them to the prior year Revenue by Operating Segment (S$ thousand) | Operating Segment | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Electronic Manufacturing Services | 47,217 | 47,347 | –0.3% | | Original Design Manufacturing | 1,856 | 3,194 | –41.9% | | Investment | 1,207 | 982 | 22.9% | | Total | 50,280 | 51,523 | –2.4% | Cost of Sales by Operating Segment (S$ thousand) | Operating Segment | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Electronic Manufacturing Services | 43,839 | 43,239 | 1.4% | | Original Design Manufacturing | 1,926 | 3,464 | –44.4% | | Investment | — | — | N/A | | Total | 45,765 | 46,703 | –2.0% | - Gross profit decreased by 6.3% to S$4.5 million, with the gross profit margin falling from 9.4% to 9.0%[29][30] - Other income significantly decreased by 92.7% to S$0.6 million, primarily due to a one-off book income of approximately S$8.5 million recorded in H1 2024[31] - General and administrative expenses decreased by 4.5% to S$6.5 million, mainly due to reduced research and development costs[33] - Loss before tax shifted from a profit of S$5.0 million in H1 2024 to a loss of S$3.6 million in H1 2025, primarily impacted by the one-off income[36] - The period recorded a net loss after tax of approximately S$3.4 million, compared to a net profit of approximately S$2.9 million in the prior year period[38] Liquidity and Capital Resources This section analyzes the Group's liquidity, cash and cash equivalents, funding and financial policies, cash flows, net current assets, capital expenditures, capital and investment commitments, use of IPO proceeds, debt situation, contingent liabilities, net debt-to-equity ratio, and leverage ratio - As of June 30, 2025, cash and cash equivalents were approximately S$11.2 million, and the Board considers the financial position to be sound[39] Cash Flow Summary (S$ thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash flows used in operating activities | (7,877) | (2,787) | | Net cash flows used in investing activities | (1,644) | (5,036) | | Net cash flows from / (used in) financing activities | 2,543 | (1,849) | | Net decrease in cash and cash equivalents | (6,978) | (9,672) | | Cash and cash equivalents at June 30 | 11,229 | 8,450 | - Net current assets decreased from S$35.2 million as of December 31, 2024, to S$30.6 million as of June 30, 2025[45] - Total contracted but unprovided capital and investment expenditures amounted to S$25.985 million as of June 30, 2025, primarily for investment securities commitments[48] - S$5.5 million of IPO proceeds remain unutilized, expected to be fully deployed for marketing activities by Q4 2025[51][52] - Total interest-bearing loans and borrowings amounted to S$27.2 million, with a net debt-to-equity ratio of 0.17 and a leverage ratio of 0.28[54][57][58] Future Plans for Material Investments and Capital Assets As of June 30, 2025, Precision Group has no specific future plans for material investments or capital assets - The Group had no specific plans for material investments or capital assets as of June 30, 2025[59] Material Investments, Acquisitions, and Disposals For the six months ended June 30, 2025, Precision Group did not undertake any material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, there were no material investments held, nor any material acquisitions or disposals of subsidiaries, associates, or joint ventures[60] Foreign Exchange Risk Management Precision Group's functional currency is the Singapore Dollar, but with revenue primarily denominated in US Dollars and operating expenses in Singapore Dollars and Renminbi, the Group faces exchange rate fluctuation risks, which it mitigates through natural hedging via US Dollar raw material purchases and short-term loans, and US Dollar forward sales contracts - The Group's functional currency is the Singapore Dollar, with revenue primarily denominated in US Dollars and operating expenses in Singapore Dollars and Renminbi, exposing it to exchange rate fluctuation risks[61] - The Group employs natural hedging by purchasing raw materials and borrowing short-term loans in US Dollars, and enters into US Dollar forward sales contracts[61] - Group management will continue to monitor foreign exchange risks and implement prudent measures to mitigate currency exchange risks[61] Pledge of Assets As of June 30, 2025, Precision Group had not pledged or charged any assets other than deposits and a factory building provided by its Malaysian subsidiary as collateral for bank financing - As of June 30, 2025, only the Malaysian subsidiary provided deposits and a factory building as collateral for bank financing[62] Human Resources As of June 30, 2025, Precision Group employed 760 staff, with employee benefit expenses totaling approximately S$13.5 million, and its remuneration policy is based on individual performance, market comparability, and group results, supported by internal and external training, with no labor disputes reported during the period - As of June 30, 2025, the Group employed 760 staff, with employee benefit expenses totaling approximately S$13.5 million[63] - The remuneration policy is based on individual performance, capabilities, engagement, market comparability, and Group results, and is regularly reviewed to retain talent[63] - The company has adopted a share option scheme to recognize contributions and retain eligible employees[63] - No labor disputes were experienced for the six months ended June 30, 2025[63] Other Information This section covers non-financial information including Precision Group's dividend policy, corporate governance practices, directors' securities transaction standards, listed securities trading, audit committee review, post-reporting period events, directors' and chief executive's equity interests, substantial shareholders' interests, share option scheme details, and changes in directors' biographical details Dividends The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[65] Corporate Governance Code Precision Group is committed to corporate governance principles, having adopted robust practices and pledging to be a transparent and responsible organization, and has complied with all code provisions in Appendix C1 Part 2 of the Listing Rules for the six months ended June 30, 2025 - The Group is committed to corporate governance principles and has adopted robust corporate governance practices to comply with legal and commercial standards[66] - For the six months ended June 30, 2025, the company complied with all code provisions in Appendix C1 Part 2 of the Listing Rules[67] Standard Code for Securities Transactions by Directors of Listed Issuers The company has adopted the Standard Code as the code of conduct for securities transactions by directors and relevant employees, and all directors confirmed compliance with its required standards for the six months ended June 30, 2025 - The company has adopted the Standard Code as the code of conduct for securities transactions by directors and relevant employees[68] - All directors confirmed compliance with the required standards of the Standard Code for the six months ended June 30, 2025[68] Purchase, Sale or Redemption of the Company's Listed Securities Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities for the six months ended June 30, 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities for the six months ended June 30, 2025[69] Audit Committee Review of Financial Information The Group's unaudited interim condensed consolidated financial statements and this report for the six months ended June 30, 2025, have been reviewed by the Board's Audit Committee, which comprises solely independent non-executive directors - The Group's unaudited interim condensed consolidated financial statements and this report for the six months ended June 30, 2025, have been reviewed by the Board's Audit Committee[70] Events After Reporting Period No material events occurred after June 30, 2025, up to the latest practicable date - No material events occurred after June 30, 2025, up to the latest practicable date[71] Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures of the Company or Any Associated Corporation This section discloses the long positions of directors and the chief executive in the Company's shares as of June 30, 2025, including direct and deemed interests, and lists each director's shareholding and approximate percentage of ownership Directors' Long Positions in Company Shares (as of June 30, 2025) | Director Name | Capacity and Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding (%) | | :--- | :--- | :--- | :--- | | Mr. Lim Kok Chye | Beneficial owner; Spouse's interest | 324,573,113 | 35.26 | | Mr. Toh Siew Tat | Beneficial owner; Controlled corporation's interest | 14,758,000 | 1.60 | | Mr. Lim Kim Ming | Beneficial owner | 25,642,000 | 2.79 | | Mr. Cheng Kim Chia | Beneficial owner; Controlled corporation's interest | 9,916,000 | 1.08 | | Mr. Loh Kian Wah | Beneficial owner | 9,094,000 | 0.99 | - Mr. Lim Kok Chye (CEO) holds a 35.26% stake, including shares held by his spouse, Ms. Foo Hwee Yoke[72][74] - Other than the disclosed share option scheme, directors held no other disclosable interests and/or short positions in the Company's or its associated corporations' shares, underlying shares, or debentures[73] Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares This section discloses the long positions of substantial shareholders and other persons (not directors or chief executives) in the Company's shares as of June 30, 2025, including Ms. Foo Hwee Yoke, Diamond Rich Global Limited, China Everbright Holdings Company Limited and its associated entities, and Central Huijin Investment Ltd Substantial Shareholders' Long Positions in Company Shares (as of June 30, 2025) | Shareholder Name / Name | Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding (%) | | :--- | :--- | :--- | :--- | | Foo Hwee Yoke | Beneficial owner; Spouse's interest | 324,573,113 | 35.26 | | Diamond Rich Global Limited | Beneficial owner | 262,084,380 | 28.48 | | China Everbright Venture Capital Limited | Controlled corporation's interest | 262,084,380 | 28.48 | | China Everbright Holdings Company Limited | Controlled corporation's interest | 263,026,380 | 28.58 | | Honorich Holdings Limited | Controlled corporation's interest | 263,026,380 | 28.58 | | China Everbright Group Limited | Controlled corporation's interest | 263,026,380 | 28.58 | | China Everbright Group Company Limited | Controlled corporation's interest | 263,026,380 | 28.58 | | Central Huijin Investment Ltd | Controlled corporation's interest | 263,026,380 | 28.58 | - Ms. Foo Hwee Yoke (spouse of Mr. Lim Kok Chye) is deemed to have an interest in 35.26% of the shares[75][78] - China Everbright Holdings Company Limited and its associated entities (including Diamond Rich Global Limited) collectively hold approximately 28.58% of the share interests[75][78] - Central Huijin Investment Ltd, as a shareholder of China Everbright Group Company Limited, is deemed to have an interest in approximately 28.58% of the shares[75][78] Share Option Scheme This section details Precision Group's Share Option Scheme, designed to incentivize and reward eligible participants for their contributions to the Group's business, including its effective period, grant limits, approval requirements, exercise price determination, and specific grant, lapse, and vesting details for 2021, 2023, 2024, and 2025 - The Share Option Scheme became effective on June 27, 2018, for a 10-year period, aiming to provide incentives and rewards to eligible participants[79] - The current unexercised share option limit is 10% of the issued shares post-listing, totaling 83,935,132 shares[79] - 18,500,000 share options granted in 2021 lapsed on March 24, 2023, due to unfulfilled performance targets[81] - 8,340,000 share options were granted on May 25, 2023, with an exercise price of HK$0.300, some of which lapsed due to grantees' resignation[82] - 2,900,000 share options were granted on January 9, 2024, with an exercise price of HK$0.304, some of which lapsed due to grantees' resignation[83] - 9,120,000 share options were granted on May 23, 2025, with an exercise price of HK$0.1212, subject to performance targets and clawback mechanisms for vesting[84] - As of June 30, 2025, the total number of shares available for issue under the Share Option Scheme was 69,025,132, representing approximately 7.50% of the issued shares[84] - The fair value of all existing unexercised share options as of June 30, 2025, was estimated at approximately S$134,000[86] Changes in Directors' Biographical Details This section discloses changes in directors' biographical details required under Listing Rule 13.51B(1) as of the latest practicable date, primarily concerning Mr. Poon Chi Wai's cessation as an independent non-executive director for two listed companies - Effective July 28, 2025, Mr. Poon Chi Wai ceased to be an independent non-executive director of Wing Mau Holdings Limited and Singapore Shipping Corporation Ltd[87] Interim Condensed Consolidated Statement of Comprehensive Income This section presents Precision Group's unaudited interim condensed consolidated statement of comprehensive income for the six months ended June 30, 2025, showing a shift from profit to loss compared to the prior year, primarily due to a significant decrease in other income Interim Condensed Consolidated Statement of Comprehensive Income (S$ thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 50,280 | 51,523 | | Cost of sales | (45,765) | (46,703) | | Gross Profit | 4,515 | 4,820 | | Other income | 638 | 8,766 | | Loss Before Tax / Profit Before Tax | (3,588) | 5,047 | | Income tax credit / (expense) | 144 | (2,153) | | Loss / Profit for the period | (3,444) | 2,894 | | Loss / Profit for the period attributable to owners of the Company | (3,748) | (257) | | Total comprehensive income for the period | (6,802) | 3,683 | | Loss per share attributable to owners of the Company (Singapore cents) | (0.41) | (0.03) | - Loss for the period attributable to owners of the Company expanded from S$257 thousand in H1 2024 to S$3,748 thousand in H1 2025[89] - Exchange differences on translation of overseas operations resulted in other comprehensive income shifting from a gain of S$789 thousand to a loss of S$3,358 thousand[89] Interim Condensed Consolidated Statement of Financial Position This section provides Precision Group's unaudited interim condensed consolidated statement of financial position as of June 30, 2025, detailing the composition of assets, liabilities, and equity, reflecting a decrease in total assets and equity Interim Condensed Consolidated Statement of Financial Position (S$ thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Non-current Assets | 69,563 | 72,505 | | Total Current Assets | 80,072 | 85,106 | | Total Current Liabilities | 49,512 | 49,908 | | Net Current Assets | 30,560 | 35,198 | | Total Non-current Liabilities | 4,393 | 5,171 | | Net Assets | 95,730 | 102,532 | | Total Equity | 95,730 | 102,532 | - Total assets decreased from S$157,611 thousand as of December 31, 2024, to S$149,635 thousand as of June 30, 2025[91] - Total equity decreased from S$102,532 thousand as of December 31, 2024, to S$95,730 thousand as of June 30, 2025[91] Interim Condensed Consolidated Statement of Changes in Equity This section presents Precision Group's unaudited interim condensed consolidated statement of changes in equity for the six months ended June 30, 2025, detailing movements in share capital, statutory reserves, exchange fluctuation reserve, share option reserve, retained profits, and non-controlling interests, reflecting the impact of period loss and exchange differences on equity Interim Condensed Consolidated Statement of Changes in Equity (S$ thousand) | Metric | As at January 1, 2025 | Loss for the period | Exchange differences on translation of overseas operations | As at June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | Total equity attributable to owners of the Company | 89,511 | (3,748) | (2,757) | 83,006 | | Non-controlling interests | 13,021 | 304 | (601) | 12,724 | | Total Equity | 102,532 | (3,444) | (3,358) | 95,730 | - Total equity attributable to owners of the Company decreased from S$89,511 thousand as of January 1, 2025, to S$83,006 thousand as of June 30, 2025[92] - The exchange fluctuation reserve further decreased from S$(5,073) thousand to S$(7,830) thousand due to exchange differences on translation of overseas operations[92] Interim Condensed Consolidated Statement of Cash Flows This section presents Precision Group's unaudited interim condensed consolidated statement of cash flows for the six months ended June 30, 2025, detailing cash flows from operating, investing, and financing activities, reflecting a net decrease in cash and cash equivalents during the period Interim Condensed Consolidated Statement of Cash Flows (S$ thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash flows used in operating activities | (7,877) | (2,787) | | Net cash flows used in investing activities | (1,644) | (5,036) | | Net cash flows from / (used in) financing activities | 2,543 | (1,849) | | Net decrease in cash and cash equivalents | (6,978) | (9,672) | | Cash and cash equivalents at end of period | 11,229 | 8,450 | - Net cash flows used in operating activities increased from S$2,787 thousand in H1 2024 to S$7,877 thousand in H1 2025[94] - Financing activities shifted from a net cash outflow of S$1,849 thousand in H1 2024 to a net cash inflow of S$2,543 thousand in H1 2025, primarily due to increased proceeds from bank loans offsetting bank loan repayments[95] - Cash and cash equivalents at the end of the period amounted to S$11,229 thousand, a decrease of S$6,978 thousand from the beginning of the period[95] Notes to the Interim Condensed Consolidated Financial Statements This section provides detailed notes to the interim condensed consolidated financial statements, explaining the company's basic information, basis of preparation, changes in accounting policies, operating segment information, revenue, other income, other gains and losses, loss before tax, income tax, loss per share, property, plant and equipment, investment securities, investments in associates, inventories, receivables, cash and cash equivalents, payables, interest-bearing loans and borrowings, share capital, related party transactions, financial instruments by category, and fair value hierarchy 1. Company Information Precision Group Limited, a Singapore-incorporated company listed on the Stock Exchange's Main Board, primarily engages in contract manufacturing, design, engineering, and assembly for the electronics industry, design, manufacturing, and sale of automated machinery, instruments, systems, and equipment, as well as fund management and investment in equity securities and funds, operating in Singapore, China, the Philippines, Japan, and Malaysia - The Company primarily engages in contract manufacturing for the electronics industry, design and manufacturing of automated equipment, and fund management and investment activities[98] - The Company and its subsidiaries operate in Singapore, China, the Philippines, Japan, and Malaysia[99] 2. Basis of Preparation and Changes in the Group's Accounting Policies The unaudited interim condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 and the Listing Rules, presented in Singapore Dollars, with the Group adopting new standards effective January 1, 2025, but not early adopting other standards not yet in effect - The unaudited interim condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 Interim Financial Reporting and the applicable disclosure provisions of the Listing Rules[100] - The Group adopted new standards effective January 1, 2025, but did not early adopt any other standards issued but not yet effective[101] 3. Operating Segment Information The Group is organized into three reportable operating segments: Electronic Manufacturing Services (EMS), Original Design Manufacturing (ODM), and Investment, with EMS primarily producing subsystems, complete machines, and components for OEMs; ODM designing and manufacturing its own brand of automated equipment, precision tools, and components; and the Investment segment providing fund management services and equity securities investments, with Singapore being the primary market for revenue by customer location - The Group has three reportable operating segments: Electronic Manufacturing Services, Original Design Manufacturing, and Investment[102] - EMS segment's main products include complete machines such as advanced wire bonders, dicing machines, and grinding machines, as well as subsystems like equipment front-end modules[102] - ODM segment's main products include automatic frame loaders, automatic polishing equipment, and debonding equipment[102] Revenue Breakdown by Business Segment (S$ thousand) | Business Segment | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Electronic Manufacturing Services | 47,217 | 47,347 | | Original Design Manufacturing | 1,856 | 3,194 | | Investment | 1,207 | 982 | | Total | 50,280 | 51,523 | Revenue by Geographical Region (S$ thousand) | Region | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Singapore | 28,322 | 22,402 | | Mainland China | 7,152 | 7,250 | | United States | 6,955 | 12,031 | | Japan | 2,279 | 1,625 | | Other Countries | 4,648 | 6,759 | | Total | 50,280 | 51,523 | 4. Revenue This section provides a breakdown of revenue by type of goods or services and timing of transfer of goods or services, showing that sales of goods remain the primary revenue source, while revenue from services provided has increased for the six months ended June 30, 2025 Revenue Breakdown (S$ thousand) | Type of Goods or Services | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Sales of goods | 48,531 | 50,231 | | Provision of services | 1,749 | 1,292 | | Total | 50,280 | 51,523 | - Revenue primarily derives from goods sold at a point in time, while revenue from services provided over time has increased[107] 5. Other Income This section details other income for the six months ended June 30, 2025, showing a significant decrease from S$8,766 thousand in the prior year to S$638 thousand, primarily due to a one-off book income of S$8.5 million recorded in H1 2024 Other Income Breakdown (S$ thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Bank interest income | 44 | 30 | | Government grants | 23 | 97 | | Dividend income | — | 69 | | Others | 113 | 70 | | Other investment income | 458 | 8,500 | | Total | 638 | 8,766 | - Other investment income significantly decreased, primarily because H1 2024 included S$8.5 million in book income from the maturity of an investment fund managed by Shanghai Guangpu[108][109] 6. Other Gains and Losses This section provides a breakdown of other gains and losses for the six months ended June 30, 2025, indicating a shift from a gain in the prior year to a loss, primarily due to fair value losses on investment securities and reduced net foreign exchange differences Other Gains and Losses (S$ thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net foreign exchange differences | 128 | 510 | | Net fair value (loss) / gain on investment securities at fair value through profit or loss | (268) | 57 | | Total | (140) | 567 | - Fair value of investment securities shifted from a gain of S$57 thousand in H1 2024 to a loss of S$268 thousand in H1 2025[110] - Net foreign exchange differences decreased from S$510 thousand in H1 2024 to S$128 thousand in H1 2025[110] 7. Loss Before Tax / Profit Before Tax This section lists the expenses and income deducted/included in calculating the loss before tax for the six months ended June 30, 2025, showing a decrease in the Group's R&D expenses and employee benefit expenses Components of Loss Before Tax / Profit Before Tax (S$ thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Cost of inventories | 31,923 | 32,009 | | Depreciation of property, plant and equipment | 1,646 | 1,676 | | Research and development expenses | 1,055 | 1,418 | | Employee benefit expenses (excluding directors' and chief executive's remuneration) | 12,688 | 14,332 | | Net foreign exchange differences | (128) | (510) | | Government grants | (23) | (97) | - Research and development expenses decreased from S$1,418 thousand in H1 2024 to S$1,055 thousand in H1 2025[111] - Employee benefit expenses (excluding directors' and chief executive's remuneration) decreased from S$14,332 thousand in H1 2024 to S$12,688 thousand in H1 2025[111] 8. Income Tax Credit / (Expense) This section lists the components of income tax credit / (expense) for the six months ended June 30, 2025, showing a shift from an income tax expense in the prior year to an income tax credit, consistent with the loss before tax Components of Income Tax Credit / (Expense) (S$ thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Current income tax credit / (expense) | 271 | (2,137) | | Underprovision in prior years | (127) | (16) | | Income Tax Credit / (Expense) | 144 | (2,153) | - The Group shifted from an income tax expense of S$2,153 thousand in H1 2024 to an income tax credit of S$144 thousand in H1 2025[112] 9. Loss Per Share Attributable to Owners of the Company This section explains the calculation of basic and diluted loss per share attributable to owners of the Company for the six months ended June 30, 2025, noting that basic loss per share was not adjusted for dilution due to the Group's recorded loss and absence of potentially dilutive ordinary shares Loss Per Share Calculation Data | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company (S$ thousand) | (3,748) | (257) | | Weighted average number of ordinary shares | 920,393,394 | 920,393,394 | | Basic and diluted loss per share (Singapore cents) | (0.41) | (0.03) | - Basic and diluted loss per share expanded from 0.03 Singapore cents in H1 2024 to 0.41 Singapore cents in H1 2025[114] - Basic loss per share was not adjusted for dilution as the Group had no issued potentially dilutive ordinary shares[113] 10. Property, Plant and Equipment This section discloses the acquisitions and disposals of property, plant, and equipment for the six months ended June 30, 2025, showing a significant decrease in acquisition costs and no disposal activities during the period - For the six months ended June 30, 2025, the Group's consideration for property, plant and equipment acquisitions was approximately S$264 thousand, a significant decrease from S$2,791 thousand in the prior year period[115] - For the six months ended June 30, 2025, there were no disposals of property, plant and equipment with zero carrying value[116] 11. Investment Securities This section presents the investment securities as of June 30, 2025, indicating that the Group's investment securities primarily consist of unquoted equity investments measured at fair value through profit or loss, with the amount remaining unchanged Investment Securities (S$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | At fair value through profit or loss — Unquoted equity investments | 21,525 | 21,525 | 12. Investments in Associates This section outlines Precision Group's investments in associates, including Nantong Guangpu Venture Capital Fund, Nantong Zhizao Fund, Nanyang Fund, and Liteleaf Pte Ltd., with the total investment amount decreasing Investments in Associates (S$ thousand) | Associate | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Nantong Guangpu Venture Capital Fund | 1,624 | 1,638 | | Nantong Zhizao Fund | 9,068 | 9,864 | | Nanyang Fund | 4,796 | 4,880 | | Liteleaf Pte Ltd. | 315 | 363 | | Total | 15,803 | 16,745 | - The Group's attributable ownership interest in Nantong Zhizao Fund and Nanyang Fund is 20% each, and 30% in Nantong Guangpu Venture Capital Fund[119] - Despite holding only approximately an 8% interest in Liteleaf Pte Ltd., it is still considered a key associate because one of the Group's directors also serves as a director of Liteleaf[119] 13. Inventories This section details the inventory breakdown as of June 30, 2025, including raw materials, work-in-progress, and finished goods, showing a slight increase in total inventory, with raw materials increasing while work-in-progress and finished goods decreased Inventories Breakdown (S$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Raw materials | 35,555 | 33,428 | | Work-in-progress | 4,145 | 5,659 | | Finished goods | 5,932 | 6,320 | | Total Inventories | 45,632 | 45,407 | - Raw material inventories increased, while finished goods and work-in-progress inventories decreased[120] 14. Trade Receivables This section provides an aging analysis of trade receivables as of June 30, 2025, indicating an increase in total trade receivables, particularly in the non-overdue and 0-30 days overdue categories Trade Receivables Aging Analysis (S$ thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Neither overdue nor impaired | 16,719 | 15,843 | | 0 to 30 days | 2,927 | 2,316 | | 31 to 60 days | 476 | 1,087 | | 61 to 90 days | 179 | 163 | | Over 90 days | 228 | 54 | | Total | 20,529 | 19,463 | - Total trade receivables increased from S$19,463 thousand as of December 31, 2024, to S$20,529 thousand as of June 30, 2025[121] 15. Prepayments, Deposits and Other Receivables This section details prepayments, deposits, and other receivables as of June 30, 2025, showing a slight increase in the total amount, with advances to suppliers and exchange bills increasing Prepayments, Deposits and Other Receivables Breakdown (S$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Advances to suppliers | 533 | 287 | | Deposits | 528 | 537 | | Prepaid goods and services tax / value added tax | 250 | 299 | | Prepayments | 599 | 579 | | Other receivables | 71 | 203 | | Exchange bills | 701 | 647 | | Total | 2,682 | 2,552 | - Advances to suppliers increased from S$287 thousand as of December 31, 2024, to S$533 thousand as of June 30, 2025[122] 16. Cash and Cash Equivalents This section provides a breakdown of cash and cash equivalents as of June 30, 2025, categorized by currency, showing a significant decrease in total cash and cash equivalents, primarily due to a reduction in Renminbi-denominated holdings Cash and Cash Equivalents Breakdown (S$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and bank balances | 11,214 | 17,669 | | Short-term deposits | 15 | 15 | | Total | 11,229 | 17,684 | Cash and Cash Equivalents by Currency (S$ thousand) | Currency | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Denominated in Renminbi | 5,967 | 15,283 | | Denominated in US Dollars | 4,931 | 1,947 | | Denominated in Singapore Dollars | 80 | 146 | | Denominated in other currencies | 251 | 308 | | Total | 11,229 | 17,684 | - Total cash and cash equivalents decreased from S$17,684 thousand as of December 31, 2024, to S$11,229 thousand as of June 30, 2025, primarily due to a reduction in Renminbi-denominated holdings[123] 17. Trade Payables This section provides an aging analysis of trade payables as of June 30, 2025, indicating an increase in total trade payables, with a significant rise in payables aged 61-90 days and over 90 days Trade Payables Aging Analysis (S$ thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 3,485 | 6,898 | | 31 to 60 days | 4,787 | 4,499 | | 61 to 90 days | 4,208 | 2,497 | | Over 90 days | 5,721 | 2,991 | | Total | 18,201 | 16,885 | - Total trade payables increased from S$16,885 thousand as of December 31, 2024, to S$18,201 thousand as of June 30, 2025[124] - Trade payables aged over 90 days increased from S$2,991 thousand to S$5,721 thousand[124] 18. Other Payables and Accrued Expenses This section details other payables and accrued expenses as of June 30, 2025, showing a decrease in the total amount, primarily due to reductions in accrued expenses and other payables Other Payables and Accrued Expenses Breakdown (S$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Accrued expenses | 3,073 | 4,860 | | Customer advances | 2,431 | 2,281 | | Other payables | 1,070 | 1,650 | | Total | 6,574 | 8,791 | - Accrued expenses decreased from S$4,860 thousand as of December 31, 2024, to S$3,073 thousand as of June 30, 2025[125] 19. Interest-Bearing Loans and Borrowings This section provides detailed information on interest-bearing loans and borrowings as of June 30, 2025, including lease liabilities, unsecured bank loans, secured bank loans, bank trade financing, and bank overdrafts, along with repayment period details, showing an increase in total borrowings primarily due to higher bank trade financing and bank overdrafts Interest-Bearing Loans and Borrowings Breakdown (S$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Lease liabilities | 2,859 | 3,637 | | Unsecured bank loans | 1,531 | 2,739 | | Secured bank loans | 1,013 | 1,020 | | Bank trade financing | 19,475 | 17,486 | | Bank overdrafts | 2,320 | 57 | | Total | 27,198 | 24,939 | Interest-Bearing Loans and Borrowings Repayment Period (S$ thousand) | Repayment Period | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Not exceeding 1 year | 24,591 | 21,307 | | After 1 year but not exceeding 2 years | 2,120 | 2,574 | | After 2 years but not exceeding 5 years | 487 | 1,058 | | Total | 27,198 | 24,939 | - Total interest-bearing loans and borrowings increased from S$24,939 thousand as of December 31, 2024, to S$27,198 thousand as of June 30, 2025[126] - Bank trade financing increased from S$17,486 thousand to S$19,475 thousand, and bank overdrafts significantly increased from S$57 thousand to S$2,320 thousand[126] 20. Share Capital This section presents share capital information as of June 30, 2025, showing that the number and amount of issued and fully paid ordinary shares remained unchanged Share Capital (S$ thousand) | Item | Number of Shares | Amount | | :--- | :--- | :--- | | Issued and fully paid ordinary shares as of June 30, 2025 | 920,393,394 | 91,293 | - All issued shares are fully paid ordinary shares with no par value[127] 21. Related Party Transactions This section discloses related party transactions for the six months ended June 30, 2025, including key management personnel compensation and management and consulting fee transactions between related parties Key Management Personnel Compensation (S$ thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Short-term employee benefits | 1,478 | 1,712 | | Defined contribution benefits | 62 | 96 | | Other short-term benefits | 12 | 10 | | Total | 1,552 | 1,818 | | Directors of the Company | 798 | 770 | | Other key management personnel | 754 | 1,048 | Purchase and Sale of Goods and Services (S$ thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Management fees | 1,207 | 411 | | Consulting fees | (64) | (64) | - Total key management personnel compensation decreased from S$1,818 thousand in H1 2024 to S$1,552 thousand in H1 2025[128] - Management fee income increased from S$411 thousand in H1 2024 to S$1,207 thousand in H1 2025[129] 22. Financial Instruments by Category This section lists the carrying amounts of financial instruments by category as of June 30, 2025, including financial assets (trade receivables, financial assets included in deposits and other receivables, cash and cash equivalents) and financial liabilities (trade payables, financial liabilities included in other payables and accrued expenses, interest-bearing loans and borrowings) Financial Assets (S$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 20,529 | 19,463 | | Financial assets included in deposits and other receivables | 1,300 | 1,763 | | Cash and cash equivalents | 11,229 | 17,684 | | Total | 33,058 | 38,910 | Financial Liabilities (S$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 18,201 | 16,885 | | Financial liabilities included in other payables and accrued expenses | 4,143 | 6,510 | | Interest-bearing loans and borrowings | 27,384 | 25,448 | | Total | 49,728 | 48,843 | - Total financial assets decreased from S$38,910 thousand as of December 31, 2024, to S$33,058 thousand as of June 30, 2025[130] 23. Fair Value and Fair Value Hierarchy of Financial Instruments This section explains the fair value hierarchy classification of financial instruments (Level 1, Level 2, Level 3) and lists assets measured at fair value, noting that the Group's unquoted equity investments are classified as Level 3, with their fair value measurement reflecting the impact of sales restrictions - Fair value hierarchy is categorized into Level 1 (quoted prices in active markets), Level 2 (significant observable inputs), and Level 3 (significant unobservable inputs)[131][136] Assets Measured at Fair Value (S$ thousand) | Item | June 30, 2025 (Level 3) | December 31, 2024 (Level 3) | | :--- | :--- | :--- | | Financial assets at fair value through profit or loss — Unquoted equity investments | 21,525 | 21,525 | - Certain shares of the Group listed on the Shanghai Stock Exchange are subject to sales restrictions for a specified period, and their fair value measurement reflects the impact of these restrictions[133] 24. Approval of Interim Condensed Consolidated Financial Statements The unaudited interim condensed consolidated financial statements were approved and authorized for issue by the Board of Directors on August 22, 2025 - The unaudited interim condensed consolidated financial statements were approved and authorized for issue by the Board of Directors on August 22, 2025[134] 25. Dividends The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025[135]