Chairman’s Statement

Dear Stakeholders,

The operating environment during the financial year ended 30 June 2026 (“FY2026”) was marked by geopolitical rivalry reshaping global trade flows amidst rising energy demand driven by the rapid deployment of artificial intelligence-related technologies. Against this backdrop, the Group has remained focused on advancing our strategy through disciplined capital allocation on strategic investments as well as innovating our processes and driving operational excellence to remain competitive across our diversified portfolio of clients.

Notwithstanding the challenging market conditions, the Group is committed to leverage our operational expertise and track record to capitalise on opportunities in the digital ecosystem arising from robust demand for data centres to power the growth of generative artificial intelligence training and cloud computing. The Group will also continue to support the global energy transition and deepen our presence in the burgeoning renewable energy sector in Southeast Asia as we chart our roadmap to deliver sustainable growth to our shareholders.

Group revenue increased 24.24% from $480.73 million in the financial year ended 30 June 2025 (“FY2025”) to $597.25 million in the year under review with higher contributions mainly from our newly acquired Renewable Energy Solutions (“RES”) segment as well as the Cable & Wire (“C&W”) and Industrial Material Distribution (“IMD”) segments.

Gross profit decreased from $80.20 million in the previous financial year to $68.65 million in FY2026. Gross profit margin declined from 16.68% to 11.49% mainly due to lower margins in the C&W segment because of provision for onerous contracts.

Other operating income increased from $5.29 million to $6.33 million. This was primarily attributable to the bargain purchase gain associated with the acquisition of the RES business segment, partially offset by the absence of the gain on disposal of a Cambodian subsidiary under Test & Inspection (“T&I”) segment recorded in FY2025.

Selling and distribution expenses increased to $29.68 million mainly due to contribution from the newly acquired subsidiaries and higher business operating and staff costs which were in line with the higher revenue reported during the current financial year. Administrative expenses increased to $28.89 million mainly due to higher information technology related expenses to support the Group’s expanding operations and administrative expenses contributed by the newly acquired RES segment in November 2025.

Other operating expenses increased marginally to $1.59 million due to higher loss allowance for trade receivables arising from slower collection from customers in the C&W and T&I segments, partially offset by the absence of fair value loss on derivative financial instruments recognised in FY2025.

Share of profit from associates increased to $1.35 million mainly due to higher profits reported by the Nylect group during the year under review.

As a result of the above, the Group reported lower profit attributable to shareholders of $11.20 million in FY2026.

To appreciate our loyal shareholders, the Board would like to recommend a final dividend of 1.60 cents per ordinary share. Subject to shareholders’ approval at our upcoming annual general meeting scheduled on 29 October 2026, the dividend is expected to be paid out to shareholders on or around 27 November 2026. This will bring the total cash dividend payout for FY2026 to 2.35 cents per ordinary share.

Since the beginning of the year, the Group is pleased to have garnered a slew of accolades from national agencies and business organisations. We are honoured to be recognised again as a Company for Good - 3 Hearts by the National Volunteer Philanthropy Centre (“NVPC”), underscoring our commitment to corporate purpose and impact. In addition, the Group’s efforts to embed sustainability into our corporate purpose have borne fruit.

Over the years, we have progressively enhanced our environmental, social and governance (“ESG”) credentials across reporting, operations and product transparency. The Business Leadership in Sustainability – Transformation award jointly presented by the Singapore Green Building Council (“SGBC”) and the Building and Construction Authority (“BCA”) is testament to the Group’s evolution from a traditional cable manufacturer into a sustainability-driven industrial partner enabling low-carbon infrastructure development across Southeast Asia.

We are also grateful to the Singapore Manufacturing Federation (“SMF”) for giving us the privilege to receive the Hall of Honour SG60 award in appreciation of our enduring growth alongside the nation’s manufacturing sector as well as recognising our collective progress in embracing sustainability by being the inaugural corporate recipient of the SMF Silver Green in Excellence recognition. These multiple awards will spur us to scale greater heights as we advance our sustainability capabilities in the new era of manufacturing.

The Group’s progress has been made possible with the tremendous support of our stakeholders. I would like to thank our Board members for their invaluable counsel to steer through the complex business environment. Special mention goes to Mr Bobby Lim Chye Huat for sharing his wisdom and extensive industry experience while serving as Advisor to the Board. I am also deeply grateful to our loyal shareholders, customers and business partners for their enduring support and confidence in the Group. I commend our management team and employees for their hard work and tenacity to deliver on the Group’s transformational efforts. As we build on our strong foundation and pursue new growth opportunities, we remain resolute in our commitment to deliver sustainable value to our shareholders.

On behalf of the Board of Directors, we thank you for your continued trust and support.

Extracted from Annual Report 2026