Financials

Quarterly Report For The Financial Period Ended 31 December 2025

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Unaudited Condensed Consolidated Statement Of Profit Or Loss And Other comprehensive Income For The Year Ended 31 December 2025

Unaudited Condensed Consolidated Statement Of Financial Position as At 31 December 2025

Review of Performance

The Group recorded a quarterly revenue of RM159.1 million for the three months ended 31 December 2025 ("4Q2025") as compared to RM130.7 million registered in the corresponding quarter ended 31 December 2024 ("4Q2024"), representing an increase of approximately 21.8%. For the entire financial year ended ("FYE") 31 December 2025 ("12M2025"), the Group's revenue stood at RM583.7 million as compared to RM623.0 million in the FYE 31 December 2024 ("12M2024"), representing a decrease of approximately 6.3%.

The Group's revenue was primarily contributed by the ATE and FAS segments, constituting approximately 28.7% and 70.6% respectively of the Group's total revenue in 4Q2025, and 45.0% and 52.9% respectively for the FYE 31 December 2025.

The table below outlines the revenue of the respective operating segments, including elements of inter-segment transactions.

The following table sets out revenue breakdown by customers' segment for the Group:

The Group closed 4Q2025 with a profit before taxation of RM35.4 million (4Q2024: RM21.1 million), representing an increase of approximately 67.5% from last year's corresponding period. The stronger profit growth relative to revenue was primarily attributable to the recognition of certain non-recurring income arising from project cancellation charges and the monetisation of previously written-off inventory during the quarter.

For 12M2025, the Group recorded a profit before taxation of RM95.8 million as compared to RM105.4 million achieved in 12M2024, reflecting a year-on-year decline of approximately 9.1%. The Group's EBITDA (earnings before interest, tax, depreciation and amortisation) for the 4Q2025 stood at RM42.3 million (4Q2024: RM27.0 million), representing an increase of 56.9%, while the Group's EBITDA for the 12M2025 stood at RM124.1 million (12M2024: RM127.0 million), representing a decrease of 2.3% from corresponding period last year respectively.

Basic earnings per share increased from 1.99 sen in 4Q2024 to 2.84 sen in 4Q2025 but decreased from 9.17 sen in 12M2024 to 8.71 sen in 12M2025.

The performance of the respective operating segments which includes inter-segment transactions for the current quarter as compared to the previous corresponding quarter is analysed as follows:

1. Automated test equipment

   Revenue from this segment increased by RM10.0 million from RM37.8 million in the previous corresponding quarter to RM47.8 million in 4Q2025, an increase of 26.3%, primarily due to higher sales contributions from the automotive segment during the quarter. For 12M2025, revenue from this segment increased by RM31.8 million to RM266.1 million from RM234.3 million in 12M2024, representing a yearon- year increase of 13.6%. Within the ATE segment, the automotive sector remained the largest contributor, accounting for approximately 60.0% of the segment's revenue in 4Q2025. Revenue from this sector increased by 103.8% as compared to 4Q2024 mainly attributable to the timing of project deliveries of certain automotive projects that were recognised in 4Q2025. On a 12-month basis, the automotive segment contributed 54.4% to the ATE segment in 12M2025 as compared to 59.3% in 12M2024, with revenue from this sector increased by 7.4% year-on-year. Overall, the ATE segment continued to demonstrate signs of demand recovery supported by the Group's full spectrum of test and assembly solutions for the power semiconductor market, which is witnessing a recovery due to greater demand for electric vehicles, renewable energy systems and fast-charging infrastructure. This recovery was underpinned by sustained contributions from key customers across China, Singapore, Malaysia, Japan, the United States, Vietnam, Europe and Taiwan, reflecting improving customer investment sentiment and confidence in capital expenditure cycles.

   
   

   The semiconductor industry continued to provide a relatively stable revenue contribution to the Group's ATE segment. During 4Q2025, the semiconductor sector contributed 29.3% towards the ATE segment, as compared to 36.0% in 4Q2024. However, for 12M2025, the semiconductor sector contributed 23.5% to the ATE segment as compared to 15.8% in 12M2024, representing an increase of 74.1% yearon- year. The sustained contribution from the semiconductor sector was supported by ongoing structural growth in advanced semiconductor applications, including highperformance computing and artificial intelligence ("AI") which in turn reinforced demand for the Group's semiconductor test handling equipment. Despite broader macroeconomic uncertainties, customer investments in test and handling solutions remained resilient, underpinned by capital expenditure cycles related to AI and its infrastructure.

   
   

   Meanwhile, revenue from the electro-optical segment decreased from RM10.0 million in 4Q2024 to RM4.8 million in 4Q2025, representing a decline of 51.7% within the ATE segment. The lower quarterly performance was mainly due to the timing and nature of project deliveries with several smart sensor test equipment delivered earlier in the year while the second half of 2025 was largely related to module upgrades and ancillary component deliveries. However, for 12M2025, the share of wallet coming from the electro-optical segment was at 21.8% with revenue from this sector recording an overall increase of 6.1% year-on-year.

   
   

   Overall, in 4Q2025, the ATE segment recorded a profit before taxation of RM6.6 million as compared to a loss before taxation of RM8.9 million in 4Q2024. For 12M2025, the segment recorded a profit before taxation of RM34.8 million compared to RM11.3 million in 12M2024, representing a year-on-year increase of 207.7%. In addition to revenue growth, the segment recognised certain non-recurring income arising from project cancellation charges and the monetisation of previously written-off inventory.

   
   

   In general, the Group expects its ATE segment to remain on a positive trajectory supported by a gradual improvement in industry conditions and strengthening customer investment sentiment. Structural demand drivers across advanced semiconductor applications, power semiconductor development and increasing test complexity are expected to sustain demand for its test and handling solutions. Leveraging its established presence and broad technology coverage across automotive, semiconductor and electro-optical applications, the Group is well positioned as an integrated ATE solutions provider to support customers across key markets as customers resume capacity expansion and technology upgrades in 2026, while remaining mindful of ongoing macroeconomic uncertainties.




2. Factory automation solutions

   Revenue from the FAS segment increased by approximately 18.9% in 4Q2025 to RM111.3 million as compared to RM93.6 million in 4Q2024, primarily due to the timing of project deliveries and a higher level of project completion activities during the quarter. For 12M2025, however, total revenue from the FAS segment stood at RM310.7 million, representing a decline of 23.4% from RM405.4 million recorded in 12M2024.

   
   

   Within the FAS segment, the medical segment remained the largest revenue contributor in 4Q2025, although its share of wallet declined to 64.0% from 82.3% in 4Q2024. On a 12-month basis, the medical segment contributed 59.4% to the FAS segment in 12M2025 as compared to 78.1% in 12M2024. Following a year of exceptional growth, the medical segment experienced a normalisation in revenue contribution during the year as the Group expanded its FAS activities across a wider range of end markets resulting in a more balanced revenue profile.

   
   

   On the other hand, the FAS segment benefitted from meaningful contributions from the consumer and industrial products segment which accounted for approximately 15.5% of the FAS segment's revenue in 4Q2025, up from 10.4% in 4Q2024, resulting in a substantial revenue growth of 79.4% year-on-year. This increase was primarily driven by the supply of the Group's proprietary automation solutions to a leading global technology company within the server and data-centre infrastructure space. On a full year basis, the consumer and industrial products segment contributed 24.2% to the FAS segment's revenue in 12M2025, compared to 8.3% in 12M2024, reflecting a striking growth of 126.3%.

   
   

   The electro-optical segment within the FAS segment recorded an improved performance in 4Q2025, contributing approximately 13.9% share of wallet to the FAS segment's revenue, as compared to 3.8% in 4Q2024. The growth was mainly driven by the delivery of prototype projects associated with assembly and testing processes for smartphone applications. On an annual basis, the electro-optical segment contributed 9.8% to the FAS segment's revenue in 12M2025, as compared to 6.7% in 12M2024.

   
   

   Other industry segments such as renewable energy and semiconductor segments accounted for the remaining portion of the FAS segment's revenue. The renewable energy segment, which began contributing to the FAS segment in 2Q2025, continued to record a revenue contribution of 2.2% in 4Q2025. Over the financial year, this segment contributed a total of 3.6% within the FAS segment.

   
   

   In tandem with the increase in revenue, the FAS segment recorded a higher profit before taxation of RM39.8 million in 4Q2025, representing a 15.0% increase from RM34.6 million recorded in 4Q2024. For 12M2025, the segment recorded a profit before taxation of RM34.8 million compared to RM11.3 million in 12M2024, representing a year-on-year increase of 207.7%. Overall, while the FAS segment recorded a lower revenue for the year, the FAS segment managed to diversify its revenue mix in its transitioning from a heavily dependent medical segment. Looking ahead, growth opportunities are expected to be supported by the increasing deployment of automation solutions driven mainly by the greater process complexity and a growing emphasis on supply chain localisation, which collectively continue to shape customers' automation investment decisions.




3. Smart control solution system

   The products and solutions in this segment entail project management, smart building solutions and trading of materials.

   
   

   In 4Q2025, no revenue was recorded under the smart control solution system segment, as compared to a revenue of RM0.6 million recorded in 4Q2024. The profit before taxation of RM0.2 million recorded in 4Q2025 was mainly attributable to a gain from the disposal of investment properties. In comparison, a loss before taxation of RM0.5 million was recorded in 4Q2024.

   
   

Prospect

2025 marked a transition year for the Group as it laid its foundation for its next super growth cycle in the AI space across both its ATE and FAS business segments. During the year, the Group focused on strengthening its technological readiness and deepening its engineering capabilities in products and solutions that are currently in demand for the AI development lifecycle. Looking ahead, 2026 is expected to be an execution year, particularly for the ATE segment, where the Group is actively developing and delivering several prototype machines related to next-generation semiconductor test, inspection and handling solutions supporting AI integrated circuits, advanced packaging and silicon photonics applications. These prototype deliveries are intended to support system qualification, application readiness and operational maturity, thereby paving the way for broader adoption and potential mass production programmes in 2027. This phased approach positions the Group to participate meaningfully as the entire technology capital investment cycle and semiconductor upcycle are driven by higher integration density, chiplet architectures, high-speed chip processing and data-centric computing.

Overall, the Group is encouraged by the improvement in the performance of its ATE segment during 2025 and remains optimistic about its continued growth trajectory, with the ATE segment expected to be a significant contributor in 2026. Growth is anticipated to be supported by three key areas, namely the power semiconductor, electro-optical and advanced packaging segments within the overall semiconductor ecosystem.

Within the power semiconductor segment, high-growth applications are evident in electric vehicles, charging infrastructure, smart grids and renewable energy storage for better power efficiency with advanced wide bandgap materials. Such structural trend continues to drive demand for more sophisticated testing and quality assurance solutions across the manufacturing process. Based on Mordor Intelligence market report, the power semiconductor market is projected to expand at a CAGR of 4.1%-6.3%, potentially reaching over USD90-130 billion by the mid-2030s. With the Group's comprehensive suite of automotive test solutions, ranging from front-end wafer-level burn-in and test systems for wide bandgap materials to back-end assembly and test solutions, this development augurs well for the Group in its position to capitalise and sustain itself in these industry growth trends.

In parallel, the Group expects to see meaningful opportunities in the electro-optical segment, driven by the increasing adoption of more advanced and complex optical sensing technologies with a more complex form factor. With its in-depth experience in the electro-optical segment, the Group is progressively expanding into pioneer testing and handling solutions that support additional stages of this segment's value chain which were previously beyond the Group's solution scope, including final stage assembly and testing for selected form factor for the smartphone application.

Within the FAS segment, the Group expects performance to stabilise with a more diversified segmental contribution following years of exceptionally strong contribution from the medical sector. While revenue from the medical segment has moderated to a more sustainable level, the Group continues to expect meaningful contributions from this segment, as customers transition from a phase of rapid capacity expansion towards optimisation, efficiency enhancement and process refinement. In addition, the Group has expanded its customer base within the medical segment, which is expected to provide ongoing demand for the Group's proprietary automation solutions and contribute to a more resilient and sustainable revenue profile over time. At the same time, the Group continues to see growing traction in other FAS verticals, particularly consumer and industrial products, supported by increasing investments in AI servers and data centre infrastructure. This trend is expected to support demand for automation solutions that enhance throughput, consistency and quality, areas where the Group has established its capabilities. Collectively, a more diversified industry mix within the FAS segment is expected to support more resilient performance and complement the Group's growth trajectory alongside the ATE business.

As the Group enters 2026, the focus shifts decisively from preparation to execution. With a growing pipeline of project-based engagements, customer qualification activities and improving visibility across key end markets that include local presence and supply chain management, the Group expects operating momentum to build progressively over the course of the year. While the external environment remains volatile that is subject to macroeconomic and geopolitical uncertainties, the management remains cautiously optimistic that the foundations established in 2025 will translate into more tangible contributions, particularly within the ATE segment, as projects advance through development and deployment phases.

The Group will continue to prioritise disciplined execution and resource allocation, while maintaining flexibility in responding to evolving customer requirements and market conditions as the industry cycle turns.