Singamas Container

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.

Thank you. This question is very good.

We see that currently, because of this big environment, Last year, it was estimated that it would grow to 3.5 million, but in the end, it reached 6.5 million, which caused a serious overbite. So the company has been gradually transforming a few years ago. One is to develop in terms of rent. The second is New Energy Container. As I mentioned earlier, we are also involved in building a data center, a small data center. These two need a longer period of time to cultivate, including market expansion, including our employees' training and transformation. But we think this is right. especially due to the shortage of new energy due to the current war in the Middle East. Therefore, there is a greater need for new energy. As for whether there will be Thank you.

Thank you. Thank you. Any other questions?

Hello, I am Oscar from France. I want to ask, because the situation in Iran is very tense now, but I see that your business is also focusing on ESS containers. Is this somehow affecting your business as well? Not just in terms of logistics, but in other aspects as well.

As I mentioned earlier, The development of ESS container has been going on for several years. The company decided in the last year, in 2024, that we need to develop it further. So why did we change our factory in Shanghai? In May, we will turn from producing tank containers to producing ESS. This has been decided a few years ago. Because of the current environment, ESG-1 is very good. The second is to build these data centers. Because the big data center now, in addition to land, it also needs energy and cooling water. Many countries have announced many items, but there may be no water. Now, the new approach is to make a module in a relatively remote area, which is the energy cooling module. Now we are developing this project. So these two are actually related to energy. So I think we need to push forward for a longer time, but we have a good prospect. At the same time, the barrier of entry is higher. So in this regard, we need to train for a longer time. But for us, I think this transformation is right.

Our company is based in Hong Kong. Thank you very much. We are very happy to have you in our company. We are very happy to have you here.

Especially after the Middle East War, I believe that the development of oil and natural gas in Europe and other countries will gradually improve. But I would like to ask the company, our ESS business, in fact, our entire business system, can you explain how to do it? For example, we made a box, and there may be many different batteries in the box. then we can transport it to other countries for distribution. As a partner, or as a brand for local sales in Europe, or as a partner with a company like Yangon Electric, we are responsible for providing components for them. Can you share more about the process of this business, and how we will develop it in the future?

This is better explained by WinU.

Okay, thank you.

Thank you for your question. Let me divide the whole market into two parts. One part is the domestic market. The other part is the export market in China. Our position is mainly in the export market. Of course, there are two sales channels in the export market. One is the overseas company in China has a buying office. It is very professional to purchase some overseas renewable energy projects from China. This is also a part of RMB2. Now we are mainly developing this. As our CEO said, we invest in new capital investments, We will focus on the overseas business if the landscape of domestic factories and competition is separated. Simply speaking, we have four parts of business. The first part of business is the body, which includes the house, e.g. electric heart. Secondly, after the body is finished, there will be customer service. Customers will deliver the necessary cooling system, power supply, and battery. We call it integration. This kind of business requires a lot of space. So, in addition to the factory's manufacturing industry, we also have two new sites for integration. Thirdly, we provide storage for our customers. For example, if they need to store expensive materials in the storage cabinet, we will provide storage for them. Finally, we call it additional value. Customers like it very much, because the value of this product is relatively high. After installation, a lot of electrical wires were installed. We also participated in the installation process. In addition, there were safety tests, charging and discharge tests. In other words, from the assembly to the ready to be shipped, we did a lot of secondary service. That's why when we see the price of a box, we may see a single price, but it contains a lot of valuable services.

I hope I can answer your question. Actually, this is a very simple way of saying it. Because there are a lot of sustainable energy, Whether it is the sun or the wind, it can absorb all the heat at the beginning of the day. This is DC, direct current. Our system is to convert it into a storage unit, or to convert it into an AC. It is balanced at the top and bottom. It is like a pool. You can store these components. So we will have a lot of people. We have customers like Snyder, ABB are also our customers. We are trying our best to do more things. As Winnie said, there are fire, detection, and alarm systems. but the efficiency is high. The quality of the product is guaranteed. We have many exports to other countries, including the U.S. market. In the future, the Southeast Asian market will also increase, because the new energy is very important.

Thank you.

Any other questions? What percentage of your business is new energy?

Last year's top-line revenue was HK$4818 million. One of them is HK$1.7 billion, which is new energy business. $1.7 million, $170 million out of $481 million.

There is a slide to show you. In page 26, more specific is specialized container. In ESS, in 2025, it accounted for 33%.

Do you have any idea how many ESS standard containers there will be in the future? Also, I would like to ask if ESS's main sales model is a buy-and-sell model or a leasing model?

Many years ago, I said that we hope that the number of specialized containers will be less than half. It is the same as last year, 45 days. I hope that this 45 days or 50 days will not be the end of the business, but the whole business will be expanded. However, in the next few years, the business will not be as good as it used to be. Because in the next few years, it will be over-ordered. The only good thing is that there are a lot of new ships coming out. On the other hand, there are a lot of new ships coming out. On the other hand, there are a lot of new ships coming out. On the other hand, there are a lot of new ships coming out. On the other hand, there are a lot of new ships coming out. On the other hand, there are a lot of new ships coming out. On the other hand, there are a lot of new ships coming out. So, you have the same goods, but you have to wait for several days. So the supply of these ships, as I have written, will be absorbed by this warehouse. In fact, the warehouse accounts for a very low cost for the entire transport chain. Now, the highest cost is oil and ships. So in this regard, I think although Guangxiang is... this year's jewelry, its essence is very special. So we have a market share. Now I can see that This new energy, including other data centers, may have an explosive growth. Why do we have such confidence in Shanghai to make a Shanghai factory transition? I think maybe by next year, our specialized container will be more than half.

Is there a percentage of leasing?

Is ESS still leasing? For ESS, I have only done the assembly and assembly. I have done the delivery of electronic devices. I have handed over to major companies such as ABB, Schneider, and Yang-Kang-Ti. We may not have this requirement yet, but there is a possibility that if we go to Southeast Asian countries, they may have this demand. For example, if they have a solar energy farm, they may require to transfer this energy to the ESS. It is like a big power station. There is a possibility that this department will require us to do leasing, but so far we have only done a part of it, so we have not reached this point. However, I do not rule out the possibility of leasing when we have more and more departments.

I also have some questions about the market. As I mentioned earlier, our business mainly focuses on solar energy. As I mentioned earlier, the solar energy sector, or the energy sector in mainland China, such as Solar X, are similar to us. They used to make a cabinet, which had a power supply and a battery. They used it to make solar energy and connect solar panels. And they used their own brand to export from Europe. I would like to ask our company to compare whether our business is similar to theirs, and whether we have any advantages when we compete with them.

Let me briefly talk about the supply chain. In fact, the market division in China is quite clear. It has three main parts. One part is the e-sports factory. The e-sports factory mainly focuses on e-sports. he wanted to buy the housing container, I went to the supplier. Secondly, a large group of people called Zab Seng Factory, He helped to assemble all the components in the BESS. All the components in the BESS have a very large space, so the cabinets can't fit in. He helped to assemble them. This is the assembly situation. For example, the first segment is very obvious. We are going to assemble the BESS. For example, in Xiamen, there is a very large The third type of production is the item production. For example, CCOs like Schneider, ABB, they mainly do the design, and then they buy all the products and sell them to other companies. These are the three types. For CCOs, at this stage, we mainly focus on these three suppliers. So we don't have competition with them. We are actually complementing one of their needs.

In fact, he is our client.

Let me briefly talk about our main client. You just mentioned SunGrow, he works in solar. He works in solar, a solar farm project. Or he buys solar panels, solar panels. We have made a pair of solar panels. He might have bought a new one from another company. Adax, Canadian Solar is one of our top 5 customers. Huawei, they are in charge of electricity and design. So what you just said, these are all our customers.

We are strong in manufacturing. We have been manufacturing for many years. In fact, is it easy for us to transform this type of traditional factory into the one we are currently manufacturing?

If you look at it, the mechanism is completely different. Factory is now like a commodity. It takes an hour to make a few. It is very fast. If you look at the box, of course, it has the basis of manufacturing. But it is more important to make the material. For example, a box needs more than 1,000 holes. It needs to be very precise. It needs to be made of laser. There is no way to use machines at all. Because the design is different. So I think this is more about The control of materials, logistics, and QC is very important. Manufacturing is a basic, but this should be improved further. At the same time, not only workers, but also thousands of materials in the factory. How can we make sure that your finished product is acceptable? We are proud to say that our factory is basically our customers all over the world. At the same time, we are continuing to see how we can improve, including whether it is possible to use the warranty conditions to make the exit convenient. I think this is a space for growth.

I would like to know, who is our most direct competitor? Is it Costco or any other subsidiary?

Our biggest customers, the first few competitors are Chinese. In addition, there are some big companies in Zhejiang.

I think this business is not only for manufacturing, but also for many other aspects, such as communication with customers, logistics management, etc. How to lose money is also very important. Of course, we can't say we are the best, but at least we have a goal that we trust. Because the customer is not just looking at the price. If you make a box, you can exchange it for a few dollars. This is really, you can't make a mistake. Because when you make a box, there is no damage and no fire. Some may be pulled to Xinjiang, to Inner Mongolia. So your finished product, your quality is very important.

Thank you very much. There are a lot of engineers in the company. Yes.

It is not that easy to change, but it will change.

We have to keep changing. Thank you, John. Thank you, Winnie.

Do you have any other questions? Oh, there is one more question.

Sorry, I don't need it. What is the price of EBS? It is selling price.

There are two aspects. First, although this industry is good in China, but it is very poor. What I mean by poor is that many people see a good telecom company. As I said, our competitors also want to transfer. What are we going to do? There are two things. First, as I described earlier, we are going to do some promotion service. If you come to Hong Kong, it is just a company. You can do other things in a short time. to increase the switching cost and reliability. Secondly, why should we increase the production capacity? We need to consider the cost and the economy of scale to increase productivity and efficiency. so that the margin is not too high. The third point is that our team has experience as a foreign company, even though it is through a Chinese buying house. But at the end of the day, they will come to see this factory, I mean foreign customers. In the future, if we can work directly with foreign customers, I believe the margin will have a potential to reduce the role of some middlemen. This is the effort towards this direction.

As I mentioned earlier, Singapore has a Green Tanaka. Green Tanaka is a Malay word. Green is green. Tanaka is energy. Green Tanaka is a company that opened in Singapore three years ago. At that time, we were considering how to capture the development of renewable energy in Southeast Asia. In fact, Green Tanaka has already developed into an energy solution. It can help people to design how to convert this systemic energy into grid. Now some countries are demanding to do this. In Tanaka, we have a group of engineers from ABB and Schneider who came here. They are also very young. We are doing solution provision. It is good because it is a Singapore company. So there is a place for geopolitics, maybe Chinese companies can't get in. So we use Green Tanaka to do this solution, including how to collect local content, plus China to buy things back. So now we are not only investing in heavy assets, we are starting to develop this solution, e-solution. As you can see, Singapore ASTAR is one of the government's research institutions. We are developing a program to monitor the temperature of the ESS. So I think, in addition to that, we are now actually helping us and Singapore's so-called vocational schools, we have donated a module to them, which is how to do biotechnology. This is in the green area. We have donated to Singapore. In Singapore, there are three institutes of technical training, ITE. In fact, we now have 12 syllabus. For the students, how can they become energy workers? We hope that when they go to the company, they will think of us.

This is a long-term investment. The green container is designed by Singapore's team. Everything inside is designed by them.

This is for the students to use every month.

I want to ask you about ESX, you are doing software, ESH, ESH is software, do you have along line, like hardware, to contribute to ESX? For example, if you want to buy a computer, you can get a computer from a computer company. You can buy a computer from a computer company. You can buy a computer from a computer company. You can buy a computer from a computer company. You can buy a computer from a computer company. You can buy a computer from a computer company. You can buy a computer from a computer company. You can buy a computer from a computer company. You can buy a computer from a computer company. You can buy a computer from a computer company. You can buy a computer from a computer company. You can buy a computer from a computer company. You can buy a computer from a computer company. You can buy a computer from a computer company. You can buy a computer from a computer company. You can buy a computer from a computer company.

You can buy a computer from a computer company. You can buy a computer from a computer company. You can buy a computer from a computer company. You can buy a computer from a computer company. You can buy a computer from a computer company. You can buy I was the first one to work with Canadian Solar to find me, and they went to buy the batteries themselves. I was the solution for them. Of course, there is a possibility that one day I will work with other component companies to cooperate. For example, in my company, I have a... Energy management system. Yes. This is our software from Singapore. We have a patent for this software. Right. We use it in our business. We hope this software can be more universal. But we have to move forward. Why did we register the company in Singapore? To avoid the so-called geopolitics with China.

I would like to ask the company about the supply and demand. In terms of the supply and demand, we can see whether the price will be more or less similar to the market price in the next one or two years. And our ESS storage container, Are the specifications customized or the market has standard specifications for ESS container? In the long run, will it go back to a commodity situation?

There are two questions. The first question is a million-dollar question, how much is the market price? We think it will improve, but how much is the market price? We are looking at the market price situation. It has been a month since the Lunar New Year, right? The demand is there. We think there is an improvement, but how much is the market price? Because the current price is low. The second question is, will there be custom-made ESS custom-made ESS custom-made ESS custom-made ESS custom-made ESS custom-made ESS custom-made ESS custom-made ESS wind power, solar power, or high electricity bills, and then release them at night, each project has its own uniqueness. The local demand for fire protection, demand for electricity, they have to invest Thank you, Mr. William. You have asked me before, what is the current

What impact does it have? It has a very big impact, as you all know. One is energy. Not only energy, but besides oil and gas, there is also, what is it called, soot, raisin. Actually, it is very unfair to the whole economy. You see now, Philippines, I know Bangladesh and Sri Lanka have already announced a four-day week, right? So I think the whole environment will be very bad. But no one knows when the war will end. But I think the only good thing is that this war and the high energy source will let us know why it must be accelerated. in the development of renewable energy. When the development of renewable energy is not free, there is a cost involved. So the country may increase the consumption of coal. The country may continue to develop green energy. So the whole environment is very difficult. I think apart from being a tanker, it is also very difficult. But as I explained earlier, we are confident that after so many years of hard work, especially now that our team is more serious, including our development of new business, green solution, I think it is a direction. But this requires a period of time to cultivate. So our main company is to maintain this, how to say, not to be messy. Secondly, we need flexible and nimble. This is very important. Because as long as you are flexible and nimble, you will be able to handle this. Because now I see that the entire supply chain will be divided into eight sections. So we have to be very aware of the timing, including whether it is possible to go out and open a factory. But there are challenges in the beginning. In many countries, the political situation is not stable. China is the most stable, but China is the most vulnerable. We will see how we can adapt to this new environment. Our team wants to be flexible and nimble to overcome this difficulty.

Thank you, Johnson. Thank you for participating in today's presentation. Thank you, everyone, for joining. Thank you, Michelle, Winnie, and Rebecca.