REVENUE
For the financial year ended 31 December 2025 (“FY2025”), the Group recorded a turnover of US$860.5 million, achieving an increase of 9% compared to US$788.7 million for the same period last year (“FY2024”).

Turnover for the electronic components distribution segment increased by 10% to US$741.7 million in FY2025. This was mainly attributed to Hong Kong and China, driven by higher sales from the mobile, household appliances, automotive and computing sectors, benefiting from the Chinese government’s economic stimulus program as well as increase in demand for AI-related products. South Korea also recorded higher sales from increase in demand from a product line to existing and new customers in the automotive sector. These increases were partially offset by lower sales in Southeast Asia and India, primarily due to the end-of-life of a supplier’s product and reduction in sales to a customer affected by financial and restructuring challenges faced by our supplier. Taiwan recorded marginally lower sales amid keen competition in the semiconductor sector.

Turnover for the consumer products distribution business increased by 3% to US$110.2 million in FY2025. Thailand and Japan recorded higher sales, supported by an expanded range of computer peripherals. Malaysia also recorded higher sales from continued strong demand for gaming, notebooks, data centre and AI-related products. These increases were significantly offset by cessation of business in a 55%-owned Singapore subsidiary, Achieva Tech Allianz Pte. Ltd. in FY2025 which contributed US$13.0 million in the fourth quarter of FY2024 and lower sales of 3D printers and accessories recorded by a Singapore subsidiary, due to intense market competition for its 3D printers.

Turnover for other businesses increased by 26% to US$8.5 million in FY2025 due to higher sales from the hospitality and healthcare solutions and medical devices assembly and distribution businesses.

PROFIT MARGINS
Overall gross profit margin increased by 0.3 percentage point to 7.7% in FY2025, from 7.4% in FY2024. The improvement was mainly attributed to higher margin achieved by the electronic components distribution business, as the Group focused its sales efforts on higher-margin products and customers. The consumer products distribution business in Malaysia and Thailand also recorded higher margin in FY2025, from strong demand in the gaming, computing, data centre and AI-related segments.

OTHER OPERATING INCOME
Other operating income decreased by US$7.3 million or 42% to US$10.0 million in FY2025. The decrease was mainly due to a lower net fair value gain on financial assets, at fair value through profit or loss of US$7.2 million and lower write-back of allowances for inventory obsolescence of US$3.6 million. The decrease was partially offset by net foreign exchange gain of US$3.9 million in FY2025 as compared to net foreign exchange loss of US$2.2 million recorded under “Other Operating Expense” in FY2024. The net fair value gain on financial assets, at fair value through profit or loss in FY2024 related to mainly the recognition of fair value gain totalling US$7.8 million from the Group’s investments in its 15.7% equity interest in Otsaw Limited and 7.0% preference shares in Transwap Private Limited.

Interest income increased by US$0.2 million, or 10%, to US$1.8 million in FY2025. This was mainly attributable to the leasing interest income of US$0.7 million derived from a three-year non-cancellable finance lease agreement entered in September 2025 by the Group’s Malaysia consumer products distribution subsidiary for the sublease of a colocation space for data centre to a third party. The increase was partially offset by lower project financing and factoring income earned by the Group’s Thailand subsidiaries from reduction in projects funded in FY2025.

EXPENSES
The Group recorded total expenses of US$74.6 million, a decrease of 3% when compared to US$76.9m in FY2024.

Distribution expenses increased by US$2.3 million or 6% to US$38.9 million, mainly due to higher staff and related costs, freight and handling, storage charges, custom and goods and services taxes, and trade credit insurance costs associated with the electronic components distribution business in line with its increase in sales. Higher advertising and promotion expenses incurred by the Thailand consumer products distribution subsidiaries also contributed to the increase in distribution expenses. The increase was partially offset by lower sales commission expense incurred by the Hong Kong and China electronic components distribution subsidiaries.

Administrative expenses increased marginally by US$0.05 million or 1% to US$9.7 million, mainly due to higher professional and statutory fees arising from the Group’s Singapore Exchange Catalist-listed, 77.64%-owned Serial Achieva Limited. The increase was substantially offset by lower office rental and utility costs, and lower office supplies and maintenance expenses.

Finance expenses decreased by US$1.0 million, or 8%, to US$11.2 million in FY2025. This was mainly due to lower overall interest rates on the Group’s bank borrowings as compared to FY2024. The decrease was partially offset by higher interest expense on lease liabilities arising from a three-year non-cancellable finance lease agreement entered in September 2025 by the Group’s Malaysia consumer products distribution subsidiary for the lease of a colocation space for data centre.

Other operating expenses decreased by US$3.6 million or 20% to US$14.8 million in FY2025. The decrease was mainly due to a one-off fair value accounting loss on the reverse takeover of 77.64%-owned Serial Achieva Limited of US$3.7 million recorded in FY2024, net foreign exchange loss of US$2.2 million recorded in FY2024 as opposed to net foreign exchange gain of US$3.9 million recorded under “Other Operating Income” in FY2025 and lower depreciation charges on property, plant and equipment of US$0.5 million. The decrease was partially offset by higher loss allowance on trade and non-trade receivables of US$1.6 million and higher staff and related costs of US$1.3 million.

ASSOCIATED COMPANIES
The Group’s associated companies contributed net profit of US$20,000 as compared to net profit of US$75,000 in FY2024. The Group shared profit of US$81,000 (FY2024: profit of US$44,000) from 13.02%-owned Bull Will Co., Ltd., substantially offset by share of loss of US$61,000 (FY2024: profit of US$31,000) from 15.90%-owned PT Sentral Mitra Informatika Tbk.

NET PROFIT
The Group reported net profit of US$2.3 million in FY2025 as compared to net profit of US$0.5 million in FY2024. The improvement in results in FY2025 was mainly due to better performance from improved gross margin and increased sales, net foreign exchange gain of US$3.9 million and lower finance expenses of US$1.0 million, partially offset by higher loss allowance on trade and non-trade receivables of US$1.6 million and lower write-back of allowances for inventory obsolescence of US$3.6 million.

ASSETS
The Group’s cash and cash equivalents stood at US$37.5 million as of 31 December 2025, compared to US$38.3 million as of 31 December 2024.

Trade and other receivables increased by US$19.5 million (net of factored trade receivables) to US$193.5 million as at 31 December 2025. The Group’s Hong Kong and China electronic components distribution subsidiaries recorded

higher trade receivables in line with higher sales. This was substantially offset by reduction in trade receivables due to payment from its customer of the Group’s Singapore consumer products distribution subsidiary which has ceased its business during 1H2025. Other receivables increased by US$4.3 million mainly due to higher value-added tax receivables by the Group’s China electronic components distribution subsidiary and higher interest income accrued by a Thailand subsidiary in “Other Businesses” in FY2025. Average turnover days for trade receivables decreased to 77 in FY2025 from 78 in FY2024.

Inventories increased by US$7.9 million to US$130.2 million as at 31 December 2025. This was mainly due to higher inventory levels held and purchased by the Group’s Hong Kong and China, Singapore and South Korea electronic components distribution subsidiaries, as well as its Thailand and Japan consumer products distribution subsidiaries, in anticipation of higher sales in 1Q2026. The increase was partially offset by lower inventories held by the Group’s Malaysia consumer products distribution subsidiary and Taiwan electronic components distribution subsidiary from more prudent inventory management. Average turnover days for inventories decreased to 58 in FY2025 from 62 in FY2024.

Financial assets, at fair value through profit or loss (current assets) decreased by US$4.6 million to US$5.0 million as at 31 December 2025. This was due to reduction in factored trade receivables which were included in this asset category.

Financial lease receivables of US$6.3 million and US$11.9 million included in current assets and non-current assets respectively as at 31 December 2025 related to a three-year non-cancellable finance lease agreement entered in September 2025 by the Group’s Malaysia consumer products distribution subsidiary for the sub-lease of a colocation space for data centre to a third party.

Other current assets of US$6.6 million as at 31 December 2025 comprised mainly prepayments to suppliers for purchase of inventories of US$4.7 million, office rental deposits of US$0.3 million and other prepaid operating and financial expenses of US$1.6 million. The increase of US$1.2 million as compared to 31 December 2024 was mainly due to higher prepayments to suppliers for purchase of inventories and higher other prepaid operating and financial expenses, attributed mainly to the Group’s Hong Kong and China electronic components distribution subsidiaries.

Financial assets, at fair value through profit or loss (non-current assets) increased by US$1.8 million to US$22.1 million as at 31 December 2025. This was mainly due to additional investments in unlisted equity securities of US$0.7 million, net fair value gain on the Group’s investments in listed equity securities of US$0.3 million, and currency translation gain of US$1.0 million, partially offset by disposals of listed equity securities of US$0.2 million.

Property, plant and equipment decreased by US$2.7 million to US$24.4m as at 31 December 2025. This was mainly due to depreciation charges amounting to US$2.3 million and a reclassification of an office unit owned by a Singapore subsidiary amounting to US$2.9 million to investment properties. The decrease is partially offset by a fair value gain of US$0.7 million recognised on the office unit reclassified to investment properties, a net increase in right-of-use assets (included in property, plant and equipment) of US$0.3 million, additions of US$0.5 million to property, plant and equipment and currency translation gain of US$1.0 million in FY2025.

Investment properties increased by US$3.4 million to US$9.9 million as at 31 December 2025. The increase was mainly attributable to the reclassification of US$2.2 million from property, plant and equipment, a fair value gain of US$0.7 million recognised to other comprehensive income upon the transfer from property, plant and equipment to investment properties, currency translation gain of US$0.3 million and net fair value gain of US$0.1 million recorded in FY2025.

LIABILITIES
Trade and other payables increased by US$4.4 million to US$108.8 million as at 31 December 2025. Trade payables decreased by US$5.6 million due to full settlement of trade payables of the Group’s Singapore consumer products distribution subsidiary which has ceased its business during 1H2025. Shorter payment days to certain suppliers of the Group’s Hong Kong electronic components distribution subsidiary and lower purchases made by the Group’s Malaysia and Singapore consumer products distribution subsidiaries also contributed to the decrease in trade payables. The decrease was partially offset by increase in trade payables of the Group’s Singapore and South Korea electronic components distribution subsidiaries due to higher purchases and/or longer payment days to certain suppliers. Other payables increased by US$9.5 million mainly due to higher accruals for sales commission and higher deposits received from customers by the Group’s Hong Kong and China electronic components distribution subsidiaries, and higher expense accruals by the Group’s Singapore electronic components distribution subsidiary and Singapore and Malaysia consumer products distribution subsidiaries. Average payment days for trade payables increased to 38 in FY2025 from 32 in FY2024.

Borrowings increased by US$33.0 million to US$205.0 million as at 31 December 2025. This was mainly due to higher borrowings by the Group’s Singapore, Hong Kong and China, and South Korea electronic components distribution subsidiaries and a Malaysia consumer products distribution subsidiary to finance increase in working capital requirements. The increase was also due to the recognition of lease liabilities amounting to US$18.1 million arising from a three-year finance lease agreement entered in September 2025 by the Group’s Malaysia consumer products distribution subsidiary The increase was partially offset by the full repayment of an interest-bearing loan amounting to S$5.0 million (US$3.9 million) to Mr. Goi Seng Hui, a substantial shareholder of the Company in 1H2025. The Company’s current portion of a term loan amounting to US$6.2 million (31 December 2024: US$5.9 million) was reclassified to non-current borrowings as at 31 December 2025 upon extension of the maturity of the term loan from 30 May 2025 to 31 May 2027.

SHARE CAPITAL
Serial System’s total number of issued shares as of 31 December 2025 was 904,841,914 (excluding treasury shares of 946,000), unchanged from the same period a year earlier.