Spindex Industries Limited 2025 AGM: Key Takeaways and Price-Sensitive Developments

Date: 24 October 2025
Location: 8 Boon Lay Way #10-03, 8@TradeHub 21, Singapore 609964
Chairman: Mr. Nicholas Tan Heok Ting

1. Key Financial and Strategic Highlights

• Dividend Declaration:
  The AGM approved a tax-exempt (one-tier) final dividend of 2.00 cents per ordinary share for the financial year ended 30 June 2025. This dividend will be paid out on 18 November 2025, signaling the company’s continued commitment to shareholder returns.
• Audited Financial Statements:
  The adoption of the audited financial statements and Directors’ Report for FY2025 was unanimously approved, reflecting clear confidence in the company’s financial health.
• Directors’ Fees:
  Shareholders approved the payment of S\$215,160 in Directors’ fees for FY2025. This aligns with prior years, indicating stable governance costs.
• Auditor Reappointment:
  Messrs Ernst & Young LLP were re-appointed as the Company’s external auditors.

2. Board Changes and Mandates

• Director Re-Elections:
  • Mr. Tan Heok Ting was re-elected as Executive Director and Managing Director.
  • Mr. Hoon Tai Meng was re-elected as Independent Director, continuing as Chairman of the Remuneration and Nominating Committees, and as a member of the Audit Committee.
• Share Issue Mandate:
  The AGM authorized the Board to allot and issue new shares and convertible instruments up to 50% of the Company’s issued shares, with up to 10% on a non pro-rata basis to non-Singapore shareholders. This provides capital raising flexibility for potential expansion, acquisitions, or business opportunities.
• Renewal of Share Purchase Mandate:
  Shareholders approved the renewal of the share buyback mandate, allowing the purchase of up to 10% of issued shares at a maximum of 105% of average closing price (market purchases) or 120% (off-market). Shares repurchased may be cancelled or held as treasury shares. This move is typically supportive of share price by providing a floor and enhancing capital management flexibility.

3. Price-Sensitive and Strategic Developments

Impairment of Investment in Spindex Nantong

• Impairment Details:
  The Company recognized an impairment loss on its investment in Spindex Nantong. While the impairment at the Company level was approximately \$22 million, the actual impact at the Group level was only \$5 million. The Nantong plant remains operational, and management considers this a response to current business conditions rather than a permanent loss. There may be potential for reversal if conditions improve.
• Impairment Methodology:
  The impairment evaluation was based on five-year cash flow projections and terminal value, with close scrutiny and sensitivity analysis by auditors. The higher impairment at Company level is mainly due to debt-related adjustments.

Strategic Direction and Growth Plans

• Strategic Focus:
  Spindex maintains a strategy of sustainable growth through vertical integration and horizontal expansion into new industries. The company has diversified from the printing industry into automotive, power tools, and home appliances, and will continue to explore new opportunities as markets evolve.
• Acquisitions:
  Acquisitions remain a key component of Spindex’s strategy, complementing organic expansion. The Board is actively exploring inorganic growth opportunities but remains cautious about risks amid fast-changing industry dynamics.

4. Polling Results – Unanimous Support for Resolutions

• All eight resolutions received overwhelming shareholder support, with most resolutions passing with 100% approval. Only modest opposition (1.04%) was registered on the resolutions regarding share issuance and the share buyback mandate, possibly reflecting some shareholder caution about potential dilution or buyback pricing.

5. Potential Share Price Impact

The combination of a stable dividend, strong support for management, robust balance sheet actions (including buyback and capital raising flexibility), and strategic clarity is broadly positive for shareholder value. The impairment at Spindex Nantong, while significant at the Company level, is less material at the Group level and is framed as potentially reversible, reducing long-term negativity.

Investors should watch for signals of improved performance at the Nantong plant and any future acquisition announcements, which could further impact share price.

View Spindex Ind Historical chart here