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
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INNEOVA HOLDINGS LIMITED AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(Currency expressed in United States Dollars ("US$"))
| As of June 30, 2025 | As of December 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$0.0005 per share, 200,000,000 shares authorized, 16,170,624 ordinary shares and 9,000,000 ordinary shares issued and outstanding | 8 | 5 | ||||||
| Additional paid-in capital | 8,253 | 7,183 | ||||||
| Accumulated other comprehensive income (loss) | 848 | (127 | ) | |||||
| Retained earnings | 2,057 | 1,814 | ||||||
| Total shareholders' equity | 11,166 | 8,875 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 52,584 | 39,592 | ||||||
INNEOVA HOLDINGS LIMITED AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Currency expressed in United States Dollars ("US$"))
| Six Months ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| $'000 | $'000 | |||||||
| Revenue | 30,771 | 27,900 | ||||||
| Cost of revenue | (24,845 | ) | (22,103 | ) | ||||
| Gross profit | 5,926 | 5,797 | ||||||
| Operating cost and expenses: | ||||||||
| Selling and distribution | (831 | ) | (684 | ) | ||||
| General and administrative | (3,993 | ) | (3,314 | ) | ||||
| Total operating cost and expenses | (4,824 | ) | (3,998 | ) | ||||
| Income from operations | 1,102 | 1,799 | ||||||
| Other income (expense): | ||||||||
| Interest income | 30 | 3 | ||||||
| Interest expense | (705 | ) | (521 | ) | ||||
| Government grant | 29 | 45 | ||||||
| Gain (loss) on disposal of property and equipment | 10 | (3 | ) | |||||
| Foreign exchange (loss) gain, net | (210 | ) | 372 | |||||
| Other income | 73 | 91 | ||||||
| Total other expense, net | (773 | ) | (13 | ) | ||||
| Income before income taxes | 329 | 1,786 | ||||||
| Income tax expense | (86 | ) | (110 | ) | ||||
| NET INCOME | 243 | 1,676 | ||||||
| Other comprehensive loss: | ||||||||
| Foreign currency translation adjustment | 975 | (168 | ) | |||||
| TOTAL COMPREHENSIVE INCOME | 1,218 | 1,508 | ||||||
| Less: Net income attributable to non-controlling interest | - | (82 | ) | |||||
| NET INCOME ATTRIBUTABLE TO THE CONTROLLING SHAREHOLDER | 1,218 | 1,426 | ||||||
| Net income per share | ||||||||
| Basic and Diluted | 0.02 | 0.19 | ||||||
| Weighted average number of ordinary shares outstanding | ||||||||
| Basic and Diluted ('000) | 16,170 | 9,000 | ||||||
INNEOVA HOLDINGS LIMITED AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Currency expressed in United States Dollars ("US$"))
| 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 | ||||||
