Advanced Systems Automation Limited Issues Profit Guidance for Full Year Ended 31 December 2025

Key Highlights

• Significantly Larger Net Loss Expected for FY2025: The Board of Directors of Advanced Systems Automation Limited (“ASA” or “the Company”) has issued a profit guidance indicating that the Group expects to report a substantially higher net loss for the financial year ended 31 December 2025, compared to the net loss recorded in FY2024.
• Impairment Losses and Fair Value Adjustments: A significant contributor to the anticipated higher losses is the recognition of impairment losses on goodwill related to a major acquisition made in FY2024, following a review of fair value amounts.
• Decrease in Revenue and Margin Compression: The Group experienced a decline in revenue, which is attributed to lower sales volume, weaker market demand, and intensified competition. Furthermore, gross profit margins deteriorated due to increased raw material and operating costs, which could not be fully passed on to customers.

Details for Investors

The Company is currently finalising its unaudited and consolidated financial results for FY2025. The preliminary review underscores the following critical areas:

• Impairment and Fair Value Adjustments:
  • The Group undertook a fair value assessment of a substantial acquisition completed in FY2024, resulting in impairment losses on goodwill. This non-cash charge directly impacts the bottom line for FY2025 and signals that the acquired assets are not performing as originally forecasted.
• Revenue Downturn and Margin Pressure:
  • Revenue contraction was driven by lower sales volumes, weaker overall demand in the Group’s business segments, and mounting competitive pressures.
  • Gross profit margins have come under pressure due to elevated raw material and operating expenses. The Company was unable to fully pass these higher costs to customers, which has squeezed profitability further.

Potential Price-Sensitive Information

The announcement of a significantly larger net loss than the previous year, driven by both operational and non-operational items (such as impairment and fair value adjustments), is likely to be price-sensitive and could impact the share value of ASA.

Shareholders and investors are specifically advised to exercise caution when dealing in the securities of the Company until the release of the finalised unaudited FY2025 financial results, which are expected to be announced on or before 6 March 2026.

Other Relevant Details

• The announcement was made by Executive Director Ng Foong Han on 2 March 2026.
• The Company’s Sponsor, Asian Corporate Advisors Pte. Ltd., has reviewed the announcement. The Singapore Exchange Securities Trading Limited has not examined or approved the contents of the announcement and assumes no responsibility for its accuracy.
• Investors in doubt are strongly encouraged to consult their broker, banker, solicitor, accountant, or other professional advisers before making any investment decisions.

Disclaimer: This article is based on the Board’s profit guidance and preliminary review of unaudited results. Actual results may differ materially when finalised. The information is intended for informational purposes only and does not constitute investment advice. Readers should consult their own professional advisers before taking any action.

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