Financials

Statement of profit or loss

Revenue

For the six months ended 30 June 2026 (“2H26”), the Group reported revenue of $315.042 million, an increase of 28.26% from $245.632 million in the corresponding period ended 30 June 2025 (“2H25”). The revenue increase was across all of the Group’s segments. The newly acquired Renewable Energy Solutions (“RES”) business added $50.314 million in revenue during 2H26.

For the financial year ended 30 June 2026 (“FY2026”), the Group’s revenue increased by 24.24%, or $116.520 million, from $480.727 million in the last financial year (“FY2025”) to $597.247 million in FY2026. The increase in revenue was recorded across all of the Group’s segments, except for the Test & Inspection (“T&I”) Segment. The newly acquired RES has contributed revenue of $59.827 million to the Group following its acquisition in November 2025.

The Cable & Wire (“C&W”) Segment achieved revenue of $384.134 million, an increase of 11.90% or $40.844 million, compared to $343.290 million in FY2025. The increase was mainly driven by higher revenue in Malaysia and Vietnam. In Malaysia, revenue growth was supported by stronger demand from data centre developments, as well as private and public sector construction activities. In Vietnam, revenue increased across all sectors, supported by higher project activities and the delivery of orders carried forward from the previous financial year. In Singapore, revenue remained relatively stable, recording a marginal decline due to lower contributions from data centre projects nearing completion. This was partially offset by higher deliveries to Industrial and Infrastructure projects.

The Electrical Material Distribution (“EMD”) Segment registered revenue of $124.506 million, an increase of 15.82%, or $17.008 million, compared to $107.498 million in FY2025. The increase was driven by higher revenue across the Building & Infrastructure, Marine and Electronics Clusters, supported by stronger demand in these sectors. Revenue growth was also supported by the full year contribution from the Indonesian subsidiary acquired in January 2025.

Revenue from the T&I Segment decreased by 3.87% or $1.159 million, from $29.939 million in FY2025 to $28.780 million in FY2026. The decrease was mainly attributable to lower revenue from Heat Treatment and Non-Destructive Testing (“NDT”) activities, because of a slowdown in project activities in Indonesia, partially offset by higher revenue from laboratory testing and NDT activities in Malaysia and Singapore.

Gross Profit

Gross profit (“GP”) decreased by $4.403 million, from $38.864 million in 2H25 to $34.461 million in 2H26, while gross profit margin declined from 15.82% to 10.94%. For FY2026, GP decreased by $11.556 million, from $80.202 million in FY2025 to $68.646 million in FY2026, while gross profit margin declined from 16.68% to 11.49%.

The decrease in GP and GP margin for both 2H26 and FY2026 was mainly attributable to lower margins in the C&W Segment, primarily due to provisions for onerous contracts of $11.306 million and $23.139 million recognised in 2H26 and FY2026, respectively. The provisions relate to certain long-term contracts secured when copper prices were lower, which were adversely affected by the subsequent increase in copper prices towards the end of the current reporting period.

Other operating income

Other operating income increased by $0.375 million, from $1.963 million in 2H25 to $2.338 million in 2H26, and by $1.037 million, from $5.291 million in FY2025 to $6.328 million in FY2026. The increases were mainly attributable to a $1.299 million bargain purchase adjustment recognised in 2H26 following the completion of the Purchase Price Allocation exercise for acquired subsidiaries, and a total bargain purchase gain of $4.027 million arising from the acquisition of subsidiaries in FY2026. These were partially offset by a significantly lower gain on the disposal of a Cambodian subsidiary under the T&I Segment, which amounted to $2.199 million in FY2025, as well as lower foreign exchange gains.

Selling and distribution expenses

Selling and distribution expenses for 2H26 increased by $1.740 million or 12.66% compared to 2H25. For FY2026, selling and distribution expenses increased by $3.184 million, up 12.02% compared to FY2025. This was mainly due to selling and distribution expenses contributed by 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

Administrative expenses for 2H26 increased by $2.810 million, up 22.22% compared to 2H25. For FY2026, administrative expenses increased by $4.694 million, up 19.40% compared to FY2025. This was mainly because of increases in information technology related expenses and administrative expenses contributed by the subsidiaries acquired in November 2025.

Other operating expenses

Other operating expenses decreased by $501,000, or 41.85%, in 2H26 compared to 2H25, but increased marginally by $43,000, or 2.79%, in FY2026 compared to FY2025. The increase for FY2026 was mainly attributable to higher loss allowance for trade receivables arising from slower collections in the C&W and T&I Segments, partially offset by the absence of fair value loss on derivative financial instruments (“DFI”) recorded in FY2025.

Finance costs

Finance costs for 2H26 and FY2026 increased by $110,000 and $187,000, respectively. The increases were mainly attributable to higher utilisation of bank borrowings to finance copper purchases and higher interest expenses on bank loans obtained to finance the acquisition of subsidiaries in November 2025.

Share of profit of associates

The increase in share of profit from associates in 2H26 and FY2026 was primarily attributable to higher sales and profitability recorded by Nylect Group during the respective periods.

Profit before income tax

The Group’s profit before income tax (“PBT”) decreased by $7.449 million, from $11.512 million in 2H25 to $4.063 million in 2H26.

While PBT for FY2026 decreased by $17.698 million to $13.303 million in FY2026 from $31.001 million in FY2025. The decreases were primarily due to provisions for onerous contracts in FY2026 and a significantly lower gain on the disposal of a Cambodian subsidiary compared to FY2025, partially offset by a bargain purchase arising from the acquisition of subsidiaries.

The C&W Segment’s PBT for FY2026 decreased by $21.613 million from $26.596 million to $4.983 million, mainly due to additional provisions for onerous contracts. Excluding the impact of the provision for onerous contract of $23.139 million in FY2026 and the reversal of provision of $3.320 million in FY2025, the PBT would have increased by $4.846 million, from $23.274 million in FY2025 to $28.122 million in FY2026.

The EMD Segment’s PBT for FY2026 increased by $753,000 from $2.366 million to $3.119 million, mainly attributable to a higher share of profit from associates.

The T&I Segment recorded a loss before tax of $161,000 in FY2026, compared to PBT of $2.059 million in FY2025, mainly due to a significantly lower gain on the disposal of a Cambodian subsidiary.

During FY2026, the newly acquired RES Segment contributed $5.384 million to the Group’s PBT, which included a gain on bargain purchase of $4.027 million arising from the acquisition of subsidiaries.

Income tax expense

Income tax expense decreased by $275,000 in 2H26 and by $2.029 million in FY2026. The decreases were mainly attributable to the recognition of deferred tax assets arising from the provisions for onerous contracts recognised during the respective periods, partially offset by higher income tax expense in line with higher taxable profits in FY2026.

Statement of financial position

The cash and bank balances increased by $6.300 million due to higher collections from customers, as well as the cash and bank balance of the newly acquired subsidiaries.

Trade receivables increased by $14.568 million due to higher sales towards the end of the current financial year, as well as the trade receivables contributed by the newly acquired subsidiaries.

Total other receivables increased by $4.935 million, primarily due to higher advance payments for purchase of inventories.

The Group recorded DFI assets of $917,000 from forward foreign exchange contracts and DFI liabilities of $976,000 from copper contracts. In the prior financial year, the Group recorded DFI assets of $283,000 from copper contracts and DFI liabilities of $1.007 million from forward foreign exchange contracts. The movements were mainly attributable to fair value gain on forward foreign exchange contracts, as the contracted exchange rates were favourable compared with the prevailing market rates towards the end of the current financial year. This was partially offset by fair value loss on copper contracts due to higher prevailing copper prices compared with the respective contracted prices.

Inventories increased by $41.096 million, mainly attributable to inventories held by the newly acquired subsidiaries and higher inventory levels in the C&W Segment. The increase in the C&W Segment was primarily due to higher purchases towards the end of the current financial year, as well as higher copper prices.

Investment in associates increased by $2.799 million, attributable to the Group’s $1.5 million investment in EV Mobility Pte Ltd, representing a 25% equity interest acquired on 1 August 2025 and share of profit from associates.

Property, plant, and equipment increased by $2.101 million, mainly due to additions totaling $7.665 million, primarily comprising plant and machinery in the C&W and T&I Segments. This increase was partially offset by depreciation charges of $5.811 million during the current financial year.

Right-of-use assets (“ROUA”) increased by $4.477 million, mainly due to additions of $1.563 million and adjustments of $4.972 million arising from lease modifications, including extensions of lease terms, revisions to rental rates and incremental borrowing rates. The increase was partially offset by depreciation charges of $2.161 million during the current financial year.

Deferred tax assets increased by $5.022 million, mainly due to temporary differences arising from the provision for onerous contracts recognised during the current financial year.

Total bank borrowings increased by $21.849 million, mainly due to loan drawdowns to finance the acquisition of subsidiaries, borrowings by the newly acquired subsidiaries to finance inventory purchases, and higher borrowings by the C&W Segment to finance copper purchases.

Trade payables increased by $20.744 million, mainly attributable to higher purchases, the timing of payments to suppliers towards the end of the current financial year, as well as trade payables contributed by the newly acquired subsidiaries.

Total other payables increased by $5.659 million because of higher provision for reinstatement cost in respect of leased land and higher provision for staff related costs.

Contract liabilities increased by $5.613 million, mainly due to higher advance payments received from customers in the RES and EMD Segments for orders to be fulfilled in the subsequent financial year.

Total lease liabilities increased by $2.540 million, primarily due to additions of new leases and remeasurement arising from lease modifications, including extensions of lease terms and revisions to rental rates and revised incremental borrowing rates during the current financial year. The increase was partially offset by lease payments made during the year.

Provision for onerous contracts amounted to $23.894 million, an increase of $23.139 million from the end of the previous financial year mainly due to higher copper prices which increased the estimated costs of fulfilling certain long-term contracts secured when copper prices were lower.

Statement of cash flows

The cash and cash equivalents as at 30 June 2026 increased to $44.561 million compared with $38.261 million at the end of the previous financial year.

The Group’s net cash generated from operating activities of $16.667 million was attributable to the net impact of operating profit before working capital changes, an increase in trade, as well as an increase in advances received from customers. This was partially offset by an increase in trade and other receivables, an increase in contract assets and inventories, a decrease in other payables and payment of income tax.

The net cash used in investing activities amounted to $12.521 million and was primarily attributable to purchase of plant and equipment, acquisition of subsidiaries, acquisition of an associate, partially offset by net of proceeds from disposal of plant and equipment and interest received.

The net cash generated from financing activities of $2.168 million was mainly attributable to proceeds from bank borrowings, net of repayment of bank borrowings and lease liabilities, as well as dividends and interest paid.

Commentary

The global macroeconomic outlook remains volatile as elevated geopolitical tensions and growing trade frictions pose significant headwinds to economies worldwide. While the artificial intelligence boom may continue to support overall growth, the Group remains vigilant to navigate the challenging business landscape while executing our strategy.

In this regard, the Group is poised to ride the substantial tailwinds driving the global energy transition through its newly acquired RES business segment. Given the anticipated robust demand for electrification, renewable energy sources as well as grid expansion, the Group is strategically positioned to capture the opportunities along the sustainable energy value chain.

While the Group continues to combat ongoing price pressures arising from copper price volatility and constrained supply chains, we will remain agile to capitalise on suitable market opportunities to expand the Group’s presence in Southeast Asia. The confluence of resilient domestic demand in the region, ongoing buildout of future-ready digital infrastructure and strong growth momentum of the renewable energy sector puts the Group in good stead to drive sustainable long-term growth.