Singamas Container Holdings Limited

Welcome to the 2025 Annual Results Presentation of Singamask Container Holdings Limited. First of all, I'd like to introduce you to our management of the company. Mr. S.S. Tsu, Chairman and Chief Executive Officer. Ms. Winnie Tsu, Executive Director and Chief Operating Officer. And Ms. Rebecca Chung, Executive Director, Chief Financial Officer and Company Secretary. Mr. Chiu will now present the company's annual results. All the financial figures in the presentation are in U.S. dollars and less otherwise stated. Mr. Chiu, please.

Thank you. Good afternoon, friends, ladies and gentlemen. Thank you for joining us this afternoon. We will go through the presentation by looking into Singapore's corporate profile, industry dynamics, financial and business review. As an established container manufacturer, leasing... logistic and depot service provider. We currently operate 5 factories in China. Our total annual capacity is now at about 270,000 Tu of dry freight and ISO such as container and about combined capacity of 21,000 units of tanks and customized containers. For leasing business, we currently own a fleet of about 180,000 Tu containers. Singamask is also operating eight container depots across seven major cities in China and one logistics company in Xiamen. This slide shows the ongoing upgrade of our Huizhou and Shanghai manufacturing plant designed to enhance capacity and capability of energy storage system container orders. At Huizhou plant, the upgrade is aimed at boosting overall production capacity. The facility have been equipped with advanced robotic and automation application to meet the rising demand for ESS containers. At our Shanghai plant, we have expanded dedicated production line for high value customized containers including battery energy storage system BESS containers and AI data center containers. This has enabled elevated development of our integrated business. In year 2025, annual capacity for customized container and Shanghai plant has increased to 7,200 units. The next three slides, slide 7 to 10, cover our product, ranging from traditional dry freight and ISO specialized container to innovate customized container, include customer for cut containers for ESS data center, car racks, housing and more. And we also provide a full range of container solution services. The core product of Singamask customized container is ESS, Energy Saving System. This container facilitate efficient electricity storage and release, benefiting user by allowing electricity consumption at lower period. ESS container ensures stability in new energy power generation and are designed to withstand extreme conditions for normal operation in challenging environment. Wind Tanaga is our wholly owned subsidiary in Singapore, dedicated to accelerating the journey towards net zero emission and carbon neutrality. Through its BESS solution, it forms a pivotal element in our commitment to delivering comprehensive green energy solution worldwide. In 2025, Green Tanaka partnered with Singapore A-Star ARTC to co-develop an analytic power energy management system that enhanced battery health, energy efficiency and intelligent sensitivity energy solution for BESS. In our collaborative in a collaboration with the Institute of Technical Education to co-develop an ESS training program for the youth in Singapore. With this program, Singapore must contribute to its ESG goal through fostering new energy talent development, enhancing ESS safety standards, and supporting low-carbon economic transition. Next, for our leasing business. Significant growth was recorded for the business this year. By the end of 2025, we own a fleet of about 180,000 TU leasing containers . Singapore is the major operator of eight container depots in China. We maintain strong ties with key port operators in the country and foster relationships with major global shipping and leasing companies. Our logistics service business focuses on enhancing warehousing capability integrating multi-model transport resources, improving digital operational capabilities for efficiency, and collaborating with service providers to expand network coverage. This slide shows Drury's analysis of global dry freight container production and pricing trend of January 2026. For the year 2025, worldwide dry freight container production was 6.5 million Tu, far exceeding the initial market expectation. However, it has led to significant surplus worldwide. As the market is expected to regulate the surpluses in years to come, Dewey forecast that industry production for the year 2026 will decline sharply to 3.6 million TEU. On pricing, the average price of a 24 standard drive freight is expected to reach U.S. 1710 for the year 2026, a year-on-year increase of 2.6%. This trend highlights a market transitioning from overproduction to caution rebalancing. According to Drury, long-term lease rates for all standard dry freight containers dropped sharply during 4Q2025. and leasing rates are projected to remain subdued in the next few years. These forecasts from Drury Q12026 provide a solid baseline for market stabilization. However, they were made before the major disruption from the Middle East War, including rerouting around the Cape of Good Hope, elevated fuel and insurance costs. These emerging factors or rather disturbing factors may affect short-term leasing rates and recovery trajectory in ways not reflected in the current forecast. That means the war in Middle East have created many issues and this may affect what we forecasted. This chart shows Singapore's average selling price trend of 20ft dry freight container and related steel costs over the years. Despite better than expected global trade volume and ongoing new container vessel order, U.S. tariff and trade policy continue to create market uncertainty, leading to softer container demand in the second half of 2025. Consequently, the average selling price of 20-foot dry freight container dropped 12%. To U.S. $1,752 in 2025. Meanwhile, Quartan's still average cost dropped about 11%. Now let's move on to the financial review section. Revenue decreased by 17% to U.S. $481.5 million due primarily to soft market demand and overproduction its previous year. Consolidated net profit decreased. Attribute to owners of the company decreased by 48% to US$17.4 million. Basic earning per share was US$0.73 for the year, compared with 1.43 cents in 2024. Net asset per share was US$23.30 as a year of 2025, almost the same as previous year. We have decided a final dividend of HK$0.02 per share proposed for the year 2025. Together with the interim dividend of HK$0.03, total dividend for this year was HK$0.05 per share, representing a payout of about 88%. Let's move on to business review section. First, manufacturing. It shows the performance of our manufacturing and leasing business. This segment achieved revenue of $447.8 million which accounted for about 93% of our total revenue. Segment profit before tax and non-controlling interest was about US$18.1 million. This slide shows the breakdown of container units sold under different product categories and accordingly the respective revenue generated. The table on the left shows that Sigma sold over 147,000 TU of dry freight containers during the year. The pie chart on the right shows that the sales of this dry freight container made up of 57% of the segment revenue compared to 72% in the previous year. For customized container, more than 13,000 units were sold during this year. As global interest in solar energy grows, revenue contributed by our ELS continue increased drastically from 16% of 2024 to 33% in 2025. Leasing revenue accounted to 8% of the group total revenue during the year. Finance leased Finance lease interest income was US$4.1 million, up 47% year-on-year. Operating lease income was about US$15.6 million, up 176% year-on-year. This slide shows the performance of a logistics service business. Its revenue was US$33.8 million and segment profit before tax and non-contradictory interest was US$8.7 million. These strikes represent our marketing and operating strategy in the years to come. The political and tariff issue between US and other countries, especially following the outbreak of the Middle East war, will impact our operating environment. We believe many carriers will once again choose to avoid the straits of Hormuz and the Suez Canal. While this rerouting could initially stimulate demand in dry freight container market, the current sizeable dry freight pool of 55 million cu is likely to temper the overall impact, leaving demand for dry freight container unpredictable in the first half of 2026. At the same time, The ongoing crude oil crisis is expected to accelerate global transition to new energy infrastructure, which could translate into further growth in market demand for our ESS containers. Faced with unpredictable demand in dry freight containers, we maintain strict cost control and cautious capital expenditure. On the maintenance side, our focus remains on enhancing safety and environmental protection of our plants. On the growth side, we invest on high-growth customized container projects and short-payback automation initiatives. These balanced strategies keep us agile cost disciplined and well positioned to capture any new opportunities in this challenging market. The following appendices that show our income statement and the data of our factory and depot for your further reference. That concludes my presentation. If you have any questions, Winnie, Rebecca and myself will be happy to answer. Thank you very much.

Yes, if you have any questions, feel free to raise your hand. Our colleagues will bring you the mic.