Avi-Tech Holdings Limited 44th Annual General Meeting: Detailed Investor Report

Executive Summary

Avi-Tech Holdings Limited held its 44th Annual General Meeting (AGM) on 28 October 2025, providing shareholders with comprehensive updates on the company’s financial performance, strategic direction, and future outlook. The management addressed critical areas, including consolidation of business segments, future growth plans, dividend declaration, and responses to shareholder queries. Several developments discussed at the AGM have potential implications for Avi-Tech’s share price, making this report essential reading for current and prospective investors.

1. Financial Performance and Strategic Resilience

Operational Resilience in a Volatile Market: The Chairman highlighted the company’s ability to remain profitable and maintain a strong financial position in FY2025, despite significant challenges in the semiconductor and electronics industries, such as declining enterprise demand, rapid technological shifts, inventory imbalances, and geopolitical tensions. Avi-Tech managed to retain a healthy balance sheet and positive working capital, underscoring its operational resilience.

Consolidation of Business Segments: In response to market headwinds and to manage costs more efficiently, Avi-Tech consolidated its Burn-in Services segment into the Engineering Services segment. This move was prompted by declining demand for burn-in services, mainly due to the automotive industry’s shift towards electric vehicles and increased competition from Chinese manufacturers offering lower-priced products. The company is also considering leasing out some of its burn-in equipment to other firms, optimizing asset utilization.

2. Corporate Actions and Shareholder Approvals

• Adoption of FY2025 Financial Statements: Shareholders overwhelmingly approved the adoption of the audited financial statements and the Directors’ Statement.
• Director Re-elections: Mr Lim Tai Meng Alvin and Mr Tan Ka Huat were re-elected as Directors. Their continued involvement provides stability in leadership and governance.
• Directors’ Fees: The payment of S\$150,000 in Directors’ fees for FY2025 was approved.
• Final Dividend Declaration: A final one-tier tax exempt dividend of 0.25 cents per ordinary share will be paid on 28 November 2025. This dividend payout is a direct reward to shareholders and reflects the company’s ongoing profitability and commitment to shareholder returns.
• Auditor Re-appointment: Deloitte & Touche LLP was re-appointed as auditors for the next financial year.
• Authority to Issue Shares: Shareholders granted directors the authority to allot and issue shares up to 50% of the total issued shares (excluding treasury shares), including up to 20% on a non-pro-rata basis. This move provides flexibility for future fundraising or strategic corporate actions.

3. Forward-Looking Plans and Strategic Expansion

Exploration of ATE/Load Board Manufacturing: Avi-Tech is actively exploring expansion into Automatic Test Equipment (ATE) and Load Board manufacturing, which could involve significant capital expenditure for equipment and hiring new personnel. While immediate results are unlikely, management expects impacts to be seen in the following financial year. The company is evaluating locations for manufacturing, with Singapore being the likely choice, due to increased interest from potential customers seeking alternatives amid US-China tariffs.

Expansion in China: Avi-Tech is already established in burn-in board manufacturing in China and is evaluating factories there for further expansion. The company has recently delivered boards to a Chinese customer for evaluation, signalling tangible progress in market penetration.

Competitive Strengths: Avi-Tech possesses key manufacturing and design capabilities, as well as necessary licenses, which limit competition and enhance its market position in specialized board manufacturing.

4. Mergers and Acquisitions (M&A) Prospects

Avi-Tech’s management confirmed that the company is actively and prudently exploring M&A opportunities, particularly in the energy and technology sectors. While no immediate transactions were announced, any material developments will be disclosed appropriately. This focus on strategic M&A could be transformative and is potentially price-sensitive if executed.

5. Financial Position and Revenue Strategy

Strong Cash Position & Return on Equity (ROE) Initiatives: The company is well-capitalized and continuously seeks investment opportunities to drive business growth. While revenue has declined due to the “high-mix low-volume” nature of the business and ongoing market headwinds, management is pursuing both organic and transformative growth strategies, including entry into new business lines and potential M&A transactions, to bolster future revenue.

6. Shareholder Engagement and Transparency

Avi-Tech demonstrated strong shareholder engagement by responding to questions from both the Securities Investors Association (Singapore) and individual shareholders. The company published detailed responses prior to the AGM, ensuring transparency and open communication.

7. Key Takeaways and Potential Price-Sensitive Information

• Dividend payout confirmed for November 2025.
• Strategic shift towards ATE/Load Board manufacturing, which could drive future revenue growth.
• Possible leasing of burn-in equipment, optimizing asset utilization.
• Active assessment of M&A opportunities, especially in energy and technology sectors.
• Operational changes and cost management due to shifts in global automotive and semiconductor markets.
• Authority to issue new shares, increasing flexibility for capital raising or acquisitions.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or hold Avi-Tech Holdings Limited shares. Investors should conduct their own due diligence and consult with professional advisors before making any investment decisions. The information provided is based on the official AGM minutes and may be subject to change as the company continues to execute its strategic initiatives.

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