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INNEOVA Holdings Delivers Robust 10.3% Revenue Growth in First Half of Fiscal Year 2025

1. INEO reports $30.8 million revenue, up 10.3% year-over-year. 2. Gross profit increased slightly, but profit margin declined to 19.3%. 3. Net income decreased significantly to $0.2 million amid rising costs. 4. Acquisition of INNEOVA Engineering enhanced growth and service offerings. 5. Rebranding to emphasize focus on sustainable engineering and innovation.

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FAQ

Why Bullish?

The steady revenue growth and strategic acquisition align with market optimism for sustainable solutions. Past performance has shown that strategic acquisitions typically lead to long-term gains.

How important is it?

The financial results and strategic initiatives directly affect investor confidence and stock performance, particularly within a growth-oriented sector.

Why Long Term?

The recent acquisition and enhanced capabilities indicate potential for sustainable growth over several quarters; historical contexts show companies often take time to realize the full benefits of acquisitions.

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SINGAPORE, Sept. 30, 2025 (GLOBE NEWSWIRE) -- INNEOVA Holdings Limited (“INNEOVA Holdings” or the “Company”) (Nasdaq: INEO), a Singapore-based solutions provider focused on maximising uptime, optimising total cost of ownership, and extending asset longevity through sustainable engineering, today announced its unaudited financial results for the six months ended June 30, 2025. Key Financial Highlights for the First Half of 2025 Revenue: $30.8 million, a 10.3% increase from $27.9 million in the prior year period. The increase was primarily driven by the acquisition of the INNEOVA Engineering Division, which contributed approximately $2.7 million, as well as growth in other revenue streams, such as shipping charges.Gross Profit: $5.9 million, a 2.2% increase from $5.8 million in the first half of 2024. The gross profit margin was 19.3%, compared to 20.8% in the previous year, reflecting the integration of new business segments and slight variations in the product mix.Operating Income: $1.1 million, compared to $1.8 million in the prior year period. This decrease reflects higher administrative and selling expenses associated with the recent acquisition and ongoing compliance costs.Net Income: $0.2 million, compared to $1.7 million in the first half of 2024. The reduction in net income was primarily due to increased operating expenses, higher interest costs, and foreign exchange losses. Operational Highlights and Recent Developments During the first half of 2025, INNEOVA Holdings continued to advance its strategic initiatives, building on momentum from prior periods. Key achievements include: Rebranding to INNEOVA Holdings Limited: Effective April 28, 2025, the Company changed its name from SAG Holdings Limited to INNEOVA Holdings Limited, with its Nasdaq ticker symbol changing to "INEO". This rebranding emphasizes the Company's focus on engineering innovation and sustainable solutions.Acquisition of INNEOVA Engineering Pte. Ltd.: On April 30, 2025, INNEOVA Holdings completed the acquisition of INNEOVA Engineering Pte. Ltd. This strategic addition enhances the Company’s engineering capabilities, expands its service offerings into customized systems integration, and supports growth in sustainable infrastructure and mobility solutions. The division contributed approximately $2.7 million in revenue during the period.Geographic and Segment Performance: Revenue from Singapore increased by approximately 29.9% to $13.5 million, driven by the INNEOVA Engineering acquisition and higher demand in the INNEOVA Automotive Division. The INNEOVA Industrial Division maintained stable performance, while contributions from other countries supported overall revenue growth. "We are thrilled with the strong revenue growth in the first half of 2025, fueled by the successful integration of our INNEOVA Engineering Division," said Mr. Jimmy Neo, Chief Executive Officer. "Our rebranding and strategic acquisition have solidified our position as a leader in innovative and sustainable engineering solutions. We are committed to executing our growth strategy, optimizing operations, and delivering long-term value to our shareholders in this dynamic global environment." About INNEOVA Holdings Limited. INNEOVA Holdings is a leading Singapore-based solution-driven partner for industries where uptime and reliability are mission-critical. By combining deep engineering expertise, digital capabilities, and sustainable practices, INNEOVA delivers integrated solutions that optimise lifecycles, maximise uptime, and extend asset longevity across its Parts Services and Engineering Services business segments. Parts Services: Supporting mission-critical operations with comprehensive parts management and supply solutions to ensure availability, reliability, and maximum uptime. Engineering Services: Providing system lifecycle analysis and MRO services, enhanced by connectivity, digitalisation, and data analytics. INNEOVA enables customers to future-proof their assets, achieve maximum uptime, and optimize total cost of ownership (TCO). For more information, visit https://www.inneova.co. Safe Harbor Statement Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include but are not limited to, statements relating to the expected trading commencement and closing dates. The words “anticipate,” “believe,” “seeks,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the uncertainties related to market conditions and the completion of the public offering on the anticipated terms or at all, and other factors discussed in the “Risk Factors” section of the preliminary prospectus led with the SEC. Any forward-looking statements contained in this press release speak only as of the date hereof, and INNEOVA Holdings Limited specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. Investor Relations Contact: Matthew Abenante, IRC President Strategic Investor Relations, LLC Tel: 347-947-2093 Email: matthew@strategic-ir.com Ivy Lee / Jamie Neo INNEOVA Holdings Limited Tel: +65 6383 7540 Email: ir@inneova.co *** tables follow *** INNEOVA HOLDINGS LIMITED AND SUBSIDIARIESUNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS(Currency expressed in United States Dollars (“US$”))   As ofJune 30, 2025  As ofDecember 31, 2024   $’000  $’000        ASSETS        Current assets:        Cash and cash equivalents  2,139   1,746 Restricted cash  311   298 Accounts receivable, net  12,395   13,154 Inventories  18,187   18,103 Amounts due from related parties  3,195   - Deposits, prepayments, and other receivables  6,257   3,480          Total current assets  43,484   36,781          Non-current assets:        Property and equipment, net  2,358   1,380 Right-of-use assets, net  804   308 Intangible assets  5,754   - Accounts receivable, net  1,184   1,123          Total non-current assets  10,100   2,811          TOTAL ASSETS  52,584   39,592          LIABILITIES AND SHAREHOLDERS’ EQUITY        Current liabilities:        Accounts payable and accrued liabilities  5,220   4,631 Customer deposits  6,124   5,446 Amounts due to related parties  6,997   57 Bank borrowings  18,806   17,968 Lease liabilities  362   365 Income tax payable  100   145          Total current liabilities  37,609   28,612          Long-term liabilities:        Bank borrowings  2,905   1,887 Lease liabilities  729   180 Deferred tax liabilities  175   38          Total long-term liabilities  3,809   2,105          TOTAL LIABILITIES  41,418   30,717          Shareholders’ equity        Ordinary share, par value US$0.0005 per share, 200,000,000 shares authorized, 16,170,624 ordinary shares and 9,000,000 ordinary shares issued and outstanding  8   5 Additional paid-in capital  8,253   7,183 Accumulated other comprehensive income (loss)  848   (127)Retained earnings  2,057   1,814          Total shareholders’ equity  11,166   8,875          TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY  52,584   39,592  INNEOVA HOLDINGS LIMITED AND SUBSIDIARIESUNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME(Currency expressed in United States Dollars (“US$”))   Six Months ended June 30,   2025  2024   $’000  $’000        Revenue  30,771   27,900          Cost of revenue  (24,845)  (22,103)         Gross profit  5,926   5,797          Operating cost and expenses:        Selling and distribution  (831)  (684)General and administrative  (3,993)  (3,314)         Total operating cost and expenses  (4,824)  (3,998)         Income from operations  1,102   1,799          Other income (expense):        Interest income  30   3 Interest expense  (705)  (521)Government grant  29   45 Gain (loss) on disposal of property and equipment  10   (3)Foreign exchange (loss) gain, net  (210)  372 Other income  73   91          Total other expense, net  (773)  (13)         Income before income taxes  329   1,786          Income tax expense  (86)  (110)         NET INCOME  243   1,676          Other comprehensive loss:        Foreign currency translation adjustment  975   (168)         TOTAL COMPREHENSIVE INCOME  1,218   1,508          Less: Net income attributable to non-controlling interest  -   (82)         NET INCOME ATTRIBUTABLE TO THE CONTROLLING SHAREHOLDER  1,218   1,426          Net income per share        Basic and Diluted  0.02   0.19          Weighted average number of ordinary shares outstanding        Basic and Diluted (’000)  16,170   9,000  INNEOVA HOLDINGS LIMITED AND SUBSIDIARIESUNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Currency expressed in United States Dollars (“US$”))   Six Months ended June 30,   2025  2024   $’000  $’000        Cash flows from operating activities:        Net income  243   1,676 Adjustments to reconcile net income to net cash provided by operating activities        Depreciation of property and equipment  203   50 Depreciation of right-of-use assets  193   174 Provision for impairment for estimated credit loss  135   -          Change in operating assets and liabilities:        Accounts receivable  563   (1,781)Inventories  (84)  1,055 Deposits, prepayments, and other receivables  (2,777)  112 Accounts payable and accrued liabilities  589   (431)Customer deposits  679   263 Income tax (payables) refund  (45)  44          Net cash (used in) provided by operating activities  (301)  1,162          Cash flows from investing activity:        Purchase of property and equipment  (1,180)  (945)         Net cash used in investing activity  (1,180)  (945)         Cash flows from financing activities:        Proceeds from bank borrowings, net  1,855   1,612 Repayment of lease liabilities  (142)  (210)Issuance of new shares  1,073   - Balance with related parties  (2,009)  - Dividend payment to the ultimate holding company  -   (1,262)         Net cash provided by financing activities  777   140          Effect on exchange rate change on cash, cash equivalents and restricted cash  1,110   (210)         Net change in cash, cash equivalent and restricted cash  406   147          BEGINNING OF PERIOD  2,044   987          END OF PERIOD  2,450   1,134          SUPPLEMENTAL CASH FLOW INFORMATION:        Cash paid for income taxes  90   129 Cash paid for interest  705   521          Reconciliation to amounts on consolidated balance sheets:        Cash and cash equivalents  2,139   842 Restricted cash  311   292          Total cash and cash equivalents, and restricted cash  2,450   1,134 

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