InnoTek Limited reported a net profit attributable to shareholders of S$2.0 million for the year ended 31 Dec 2025, down 65.6 per cent year-on-year, as weaker contributions from automotive, office-automation and TV/display businesses outweighed growth in its nascent GPU-server line.
Earnings per share slipped to 0.87 Singapore cent from 2.51 Singapore cents a year earlier. The board proposed a first-and-final dividend of 2.0 Singapore cents per share; the company did not disclose a comparative figure or payment date.
Group revenue fell 11.8 per cent YoY to S$209.9 million. By segment, GPU-server components rose 21.3 per cent to S$43.2 million, but automotive turnover inched down to S$82.1 million amid softer demand for petrol-vehicle parts in China. Combined revenue from office-automation, TV/display and other industrial projects declined following subdued end-market demand, U.S. trade tariffs and the October 2025 disposal of a 70-per-cent-owned Vietnam subsidiary. Gross profit slid 21.6 per cent to S$28.6 million, squeezing the margin to 13.6 per cent from 15.3 per cent.
Exceptional charges of S$1.6 million—mainly stock obsolescence, doubtful debts and fair-value losses on investment properties—also weighed on the bottom line. Excluding these items, adjusted net profit would have been S$3.6 million, management said.
Looking ahead, InnoTek expects rising demand from artificial-intelligence data centres to underpin its GPU-server business. The group is broadening its product pipeline and is in discussions on a strategic partnership with a specialist in liquid-cooling systems. To meet anticipated orders, it is purchasing advanced precision equipment and expanding its Southeast Asian footprint. Construction has begun on a 15,772-sq-m factory extension in Rayong, Thailand, slated to start operations in the second quarter of 2026 and support growth across office-automation, automotive and GPU-server lines.
Chief executive Lou Yiliang said the company’s decade-long profitability record reflects disciplined cost, quality and delivery standards. He noted that recent wins with customers such as NVIDIA and IEIT Systems validate InnoTek’s capabilities and position it to capitalise on accelerating AI adoption. Lou added that management will continue to optimise the manufacturing network—following the divestment of the Vietnam plant—to redeploy resources toward higher-growth activities while assisting customers with production relocations.