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Extracted from Annual Report 2025

Dear Shareholders,

The Year in Review

'梦有为，奋进'前
Building With Purpose, Moving Forward

The financial year ended 31 March 2025 ("FY2025") has been one of significant challenges for our industry and company. The global construction sector, particularly in our key markets, has faced headwinds from economic uncertainties, property market adjustments, ongoing supply chain pressures and intense competition. These external factors have created a demanding business environment that has tested our resilience and adaptability.

Despite ongoing challenges Yongmao demonstrated adaptability and strategic focus, achieving revenue growth while strengthening our position in the energy and infrastructure sectors.

Group revenue increased by 11.3% to RMB880.3 million in FY2025, driven primarily by higher sales of tower cranes and components, which rose to RMB610.0 million from RMB517.0 million in the previous year. This growth reflects stronger demand for mega-size tower cranes in the energy sector, including wind power and nuclear power projects, as China accelerates its energy transition. Our strategic pivot toward the energy sector continues to deliver results, especially as traditional construction markets remain subdued due to ongoing property market adjustments.

Gross profit increased by 10.7% to RMB253.4 million, though gross profit margin decreased slightly to 28.8% from 28.9% in FY2024, primarily due to a reduced proportion of higher-margin rental and service income. Net profit attributable to equity holders decreased to RMB33.2 million from RMB43.0 million in the previous year, reflecting higher operating expenses and increased finance costs as we invested in expanding our capabilities and market presence.

Building Momentum, Strengthening Presence

China's energy transition from coal-dominated power to clean energy sources continues to present significant opportunities for Yongmao. China's National Energy Administration ("NEA") reported that wind power capacity additions had reached 79.82 million kilowatts ("MW"), comprising 75.79 million kW from onshore installations and 4.04 million kW from offshore projects. This expansion brought total installed wind power capacity to 521 million kW by year-end, reflecting a 18% yearon-year increase. The "Three North" regions, North China, Northeast China, and Northwest China, accounted for 75% of these new installations. Wind power generation reached 991.6 billion kilowatt-hours ("kWh") in 2024, marking a 16% increase from the previous year, with a national average utilization rate of 95.9%.

Complementing wind power's rapid expansion, China's nuclear energy sector also recorded strong growth in 2024. The NEA reported that total capacity of operational and underconstruction nuclear power units exceeded 120 million kilowatts by year-end. Nuclear power generation reached 450.9 billion kilowatt-hours, contributing 4.5% of the nation's total electricity output while helping avoid an estimated 370 million tonnes of carbon dioxide emissions.

The momentum of China's energy sector growth was exemplified by our key deliveries in 2025: a STF3080-200T to the 邯郸市 永年区洁源张西堡风电项目 Handan City Yongnian District Jieyuan Zhangxibao Wind Power Project and a STF3280-200T to the '风抚宁区风电项目 Jinfeng Funing District Wind Power Project.

Alongside this, our involvement in ongoing landmark projects continues to enhance brand recognition and technical reputation. The Taipei Twin Towers project remains a key achievement, where we have delivered 8 out of 9 large and mega-sized luffing cranes for this iconic development. This project, one of the largest construction undertakings in Taiwan in the past two decades, showcases our capability to handle complex, high-profile developments.

Commitment To Excellence

Our commitment to excellence continues to receive industry recognition. For the twelfth consecutive year since 2013, Yongmao was included in the global top 10 tower crane manufacturers list, a sustained recognition that reflects our consistent delivery of quality products and services to markets worldwide.

Additional achievements for the year include:

These accolades underscore our continued focus on delivering excellence for all stakeholders.

Unlocking New Financing Solutions

In line with our strategy to explore diverse and efficient funding avenues, the Group successfully established a S$20 million multicurrency multi-tranche unsecured commercial paper facility programme on the SDAX digital securities platform. This initiative leverages digital securities technology on a recognized market operator's platform to provide an additional financing tool.

Since the programme's launch, we have successfully completed three 3-month issuances, raising between S$4.05 million and S$4.62 million. We believe this platform offers a cost-competitive financing alternative to the Group. We intend to continue utilising this platform based on business needs and may explore longer-term products if significant contracts warrant such initiatives.

Outlook And Strategic Priorities

Looking ahead, we anticipate the operating environment will remain challenging across key markets. China's GDP growth is expected to moderate in 2025 amid weak consumer demand, a prolonged real estate slump, high debt levels, and ongoing trade tensions with the United States. These headwinds are significantly impacting the domestic tower crane sector, where intense competition continues to squeeze margins.

Singapore's market remains relatively stable due to ongoing public housing (HDB) projects, commercial developments and major infrastructure works like the Changi Airport Terminal 5 and Expansion of Marina Bay Sands Casino, but even here price competition is intensifying as Chinese suppliers target the market.

Globally, the International Monetary Fund has revised its economic outlook, projecting slower global GDP growth of 2.8% in 2025, down from the 3.3% forecasted in January. This adjustment primarily reflects escalating trade tensions and heightened policy uncertainties, particularly involving the United States and China. Global headline inflation is expected to decline to 4.3% in 2025, indicating that while disinflation continues, it is progressing more slowly than previously anticipated.

Despite these headwinds, we see opportunities in several key areas:

Energy Sector Focus: Our continued emphasis on wind power, nuclear power, and other renewable energy projects aligns with long-term infrastructure investment trends. We will leverage our technical expertise and proven track record in these specialized applications.

International Market Expansion: Diversifying our revenue base beyond domestic markets remains a priority. Our successful projects in Taiwan, Malaysia, and other markets demonstrate our capability to compete globally.

Technological Advancement: We remain committed to innovation, with a key highlight being the launch of our remote control system for crane operation. This solution offers enhanced safety for operators and cost savings as a single operator can manage multiple cranes. While industry adoption is still in early stages, we are positioning ourselves at the forefront with a dedicated showroom in our factory scheduled to come online by the first quarter of 2026.

We are also developing autonomous operation solutions with partners from Israel and China. These projects are currently in the field-testing phase.

Dividend And Acknowledgements

Subject to shareholders' approval at the forthcoming Annual General Meeting, the Board is pleased to propose a first and final dividend of S$0.01 per ordinary share for FY2025, reflecting our commitment to sharing returns with shareholders while maintaining financial flexibility for future investments.

On behalf of the Board, I wish to welcome Mr Tan Eng Ann, who joined us as a Non-Executive Independent Director. We look forward to benefiting from his insights and experience as we continue to steer the Group forward. We would like to express our heartfelt appreciation to our Independent Director, Mr Hoon Chee Wai who will not be seeking re-election during the upcoming AGM. We have benefitted greatly from his leadership as Chairman of the Audit Committee, member of the Nominating committee and Remuneration Committee. We wish him every success in all his future endeavours.

I extend our appreciation to all stakeholders who have supported Yongmao through this period of measured progress. To our employees, business partners, and shareholders, your continued confidence enables us to pursue our strategic objectives with determination.

The path forward requires us to remain adaptable and focused on areas where we can create the greatest value. We will continue building our capabilities in energy sector applications while maintaining our commitment to quality, safety, and innovation that defines Yongmao.

Sun Zhao Lin
Executive Chairman