Interim report
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For the Six Months and Full Year Ended 31 December 2024 % % 31 Dec 2024 31 Dec 2023 increase/ 31 Dec 2024 31 Dec 2023 increase/ S$'000 S$'000 (decrease) S$'000 S$'000 (decrease) Revenue (Note A) 5 1,351,711 1,442,808 (6.3) 2,735,927 3,025,028 (9.6) Other income (Note B) 3,543 3,841 (7.8) 3,818 4,745 (19.5) Changes in finished goods, work in progress and raw materials used (Note A) (994,580) (1,069,494) (7.0) (2,024,780) (2,255,015) (10.2) Employee benefits expense (Note C) (161,197) (160,148) 0.7 (313,562) (323,120) (3.0) Depreciation and amortisation expense (16,806) (15,842) 6.1 (32,775) (31,481) 4.1 Research and development expense (Note D) (11,359) (17,355) (34.5) (20,741) (29,699) (30.2) Foreign currency exchange gain (Note E) 1,072 2,186 (51.0) 2,683 2,303 16.5 Other operating expenses (Note F) (43,526) (42,194) 3.2 (85,651) (89,676) (4.5) Investment revenue (Note G) 23,927 15,678 52.6 42,551 28,160 51.1 Finance costs (Note H) (659) (344) 91.6 (1,137) (724) 57.0 Share of profit of associate - 240 (100.0) 254 240 5.8 Profit before tax 152,126 159,376 (4.5) 306,587 330,761 (7.3) Income tax expense (30,293) (28,935) 4.7 (60,837) (60,034) 1.3 Profit for the period 3 121,833 130,441 (6.6) 245,750 270,727 (9.2) Other comprehensive income: - Items that will not be reclassified subsequently to profit or loss Fair value gain on other financial assets, through other comprehensive income (FVTOCI) 1,326 777 70.7 2,209 422 423.5 Other comprehensive income: - Items may be reclassified subsequently to profit or loss Exchange differences on translation of foreign operations 3,290 (30,769) n.m. 44,240 (52,957) n.m. Total comprehensive income for the period 126,449 100,449 25.9 292,199 218,192 33.9 Profit attributable to: Owners of the Company 121,371 130,011 (6.6) 245,029 270,017 (9.3) Non-controlling interests 462 430 7.4 721 710 1.5 121,833 130,441 (6.6) 245,750 270,727 (9.2) Total comprehensive income attributable to: Owners of the Company 126,015 100,050 26.0 291,435 217,652 33.9 Non-controlling interests 434 399 8.8 764 540 41.5 126,449 100,449 25.9 292,199 218,192 33.9 Cents Cents Cents Cents Basic earnings per share 41.9 44.7 84.5 92.8 Fully diluted earnings per share 41.8 44.6 84.4 92.6 Condensed Consolidated Statement of Profit Or Loss and Other Comprehensive Income Notes to Financial Statements Group Full Year Group 2nd Half 1 of 13
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Note H Finance costs for 2024 increased year-on-year in line with increase in borrowing rate applied to higher lease liabilities balance. Note A Group revenue for 2024 declined year-on-year mainly attributable to softer customer demand within the Group’s portfolio. Gross margin remained resilient as changes in finished goods, work in progress and raw materials used decreased in tandem with the lower revenue. Note B Other income for 2024 was lower year-on-year due to lower government grants received in the current year. Note C Employee benefits expense for 2024 decreased year-on-year driven mainly by reduction in subcontract labour, overtime charges and headcount leading to lower salaries. The Group consistently drives lean initiatives to manage manpower costs, while it also continues to invest in its talent acquisition to strengthen competencies. Note D Research and development (R&D) expenses (which comprised prototyping, tooling, non-recurring engineering (NRE), materials and related services) for 2024 were lower driven by customers requirements. R&D manpower costs are separately recorded under Employee benefits expense. Note E Foreign currency exchange gains for 2024 were higher year-on-year attributed to active execution of forex management strategies to manage the foreign exchange risk. For 2H 2024, foreign currency exchange gains were lower year-on-year due to higher volatility experienced in currency markets. Note F Other operating expenses for 2024 were lower year-on-year due to decrease in utilities, employee expenses and rental expenses. For 2H 2024, other operating expenses were higher year-on-year due to increase in IT costs from system implementation and cloud subscriptions, higher utilities costs, repair & maintenance charges to upkeep the Group's facilities and freight costs increase from higher freight rates. The Group proactively drives cost control initiatives to lower headcount and improve operating efficiency, while also investing in its long-term operational capabilities. Note G Investment revenue for 2024 improved year-on-year mainly driven by strong net interest income growth due to the Group's higher net cash coupled with favourable interest rates. 2 of 13
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Condensed Statement Of Financial Position As at 31 December 2024 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 S$'000 S$'000 S$'000 S$'000 ASSETS Current assets: Cash and bank balances 1,316,706 1,056,303 299,513 294,576 Trade receivables 667,589 677,425 10,684 11,705 Other receivables and prepayments 40,910 35,701 4,075 7,205 Contract assets 14,933 12,904 2,997 195 Inventories 686,431 822,895 59,566 70,607 Trade receivables due from subsidiaries - - 101,820 95,168 Other receivables due from subsidiaries - - 1,444 1,426 Total current assets 2,726,569 2,605,228 480,099 480,882 Non-current assets: Investments in subsidiaries - - 1,229,819 1,228,809 Investment in associate 978 889 - - 4 41,684 25,458 12,710 9,181 Property, plant and equipment 249,589 247,502 31,834 32,565 Right-of-use assets 28,551 25,871 11,069 3,951 Intangible assets 661 982 107 140 Goodwill 639,708 639,708 - - Deferred tax assets 12,206 9,145 560 560 Total non-current assets 973,377 949,555 1,286,099 1,275,206 Total assets 3,699,946 3,554,783 1,766,198 1,756,088 LIABILITIES AND EQUITY Current liabilities: Trade payables 443,503 391,577 50,170 42,644 Other payables and accrued expenses 189,103 154,620 29,630 26,368 Contract liabilities 94,062 94,731 3,011 3,748 Lease liabilities 6 11,832 8,981 6,936 4,212 Trade payables due to subsidiaries - - 13,122 7,265 Other payables due to subsidiaries - - 17,909 17,642 Income tax payable 46,664 46,805 8,888 8,342 Total current liabilities 785,164 696,714 129,666 110,221 Non-current liabilities: Deferred tax liabilities 2,037 1,670 - - Lease liabilities 6 18,421 18,545 5,454 1,250 Total non-current liabilities 20,458 20,215 5,454 1,250 Capital and reserves: Share capital 7 820,009 838,055 820,009 838,055 Treasury shares 7 (22,292) (22,429) (22,292) (22,429) Share-based awards reserve 5,507 5,920 5,507 5,920 Investments revaluation reserve 4,545 2,336 6,927 3,397 Foreign exchange translation reserve (95,805) (140,002) - - Other reserves 2,648 1,533 (7,551) (7,306) Accumulated profits 2,175,201 2,148,694 828,478 826,980 Equity attributable to owners of the Company 2,889,813 2,834,107 1,631,078 1,644,617 Non-controlling interests 4,511 3,747 - - Total equity 2,894,324 2,837,854 1,631,078 1,644,617 Total liabilities and equity 3,699,946 3,554,783 1,766,198 1,756,088 Group Company Other financial assets Notes to Financial Statements 3 of 13
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Condensed Consolidated Statement of Cash Flow Period ended 31 December 2024 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 S$'000 S$'000 S$'000 S$'000 Operating activities: Profit before income tax 152,126 159,376 306,587 330,761 Adjustments for: Share of profit of associate - (240) (254) (240) Provision (Reversal) of allowance for inventory provisions 1,135 (1,456) 1,074 (3,406) Depreciation of property, plant and equipment 10,337 9,947 20,377 19,785 Depreciation of right-of-use assets 6,171 5,665 11,856 11,239 Amortisation of intangible assets 298 230 542 457 Net re-measurement of loss allowance (10) (499) (161) (483) Interest income (23,927) (15,516) (42,551) (27,998) Dividend income (1,016) (640) (1,691) (1,350) Interest expense 659 344 1,137 724 Share-based payments expense 542 1,241 1,669 2,148 Fair value adjustment on derivative instrument 674 (738) 1,438 (22) Loss (Gain) on disposal of plant and equipment, net 31 3 27 (50) Gain on disposal of other financial assets - (162) - (162) Operating profit before working capital changes 147,020 157,555 300,050 331,403 Trade receivables 8,033 68,244 28,910 209,089 Other receivables, prepayments and contract assets 5,841 5,462 (1,017) 1,624 Inventories 64,217 168,111 153,533 220,569 Trade payables (15,971) (94,723) 41,804 (130,725) Other payables, accrued expenses and contract liabilities 36,368 (778) 24,531 (37,200) Cash generated from operating activities 245,508 303,871 547,811 594,760 Interest paid (659) (344) (1,137) (724) Income tax paid (32,653) (37,851) (64,164) (72,618) Net cash generated from operating activities 212,196 265,676 482,510 521,418 Investing activities: Interest received 23,529 12,557 38,759 23,420 Dividend received from associate - - 165 150 Dividend received from other equity investments 1,016 640 1,691 1,350 Purchase of property, plant and equipment (6,696) (21,430) (16,554) (47,527) Proceeds on disposal of plant and equipment 79 121 102 192 Addition of intangible assets (12) (178) (218) (391) Proceeds from disposal of other financial assets - 162 - 162 Purchase of other financial assets (13,450) - (13,450) - Net cash generated from (used in) investing activities 4,466 (8,128) 10,495 (22,644) Financing activities: Dividends paid (72,495) (72,728) (217,537) (218,233) Proceeds from issue of shares - - - 776 Shares purchased and cancelled (11,912) (1,026) (18,046) (1,026) Purchase of treasury shares (1,815) (6,217) (1,815) (6,894) Repayments of lease liabilities (Note I) (5,830) (5,849) (11,556) (11,093) Net cash used in financing activities (92,052) (85,820) (248,954) (236,470) Net increase in cash and cash equivalents 124,610 171,728 244,051 262,304 Cash and cash equivalents at beginning of period 1,190,843 895,580 1,056,303 812,593 Effect of foreign exchange rate changes on the balance of cash held in foreign currencies 1,253 (11,005) 16,352 (18,594) Cash and cash equivalents at end of period 1,316,706 1,056,303 1,316,706 1,056,303 Cash and cash equivalents comprises: Cash 164,897 136,944 164,897 136,944 Fixed deposits 1,151,809 919,359 1,151,809 919,359 Cash and cash equivalents on the condensed consolidated cash flow statement 1,316,706 1,056,303 1,316,706 1,056,303 Net lease liabilities additions S$'000 S$'000 S$'000 S$'000 Lease Liabilities 27,526 (11,556) 14,038 245 30,253 Full Year Foreign exchange movement 2nd Half S$'000 Note I: Reconciliation of liabilities arising from financing activities between cash and non-cash changes 31 Dec 202431 Dec 2023 Financing Cash Flows Non-cash changes 4 of 13
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Condensed Statement Of Changes In Equity For The Period Ended 31 December 2023 Share- Foreign Equity Notes based Investments exchange attributable Non- to Share Treasury awards revaluation translation Other Accumulated to owners of controlling Total Financial capital shares reserve reserve reserve reserves profits the Company interests equity Statements S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 The Group Balance at 1 January 2023 838,280 (15,535) 3,827 1,914 (87,215) 28 2,098,385 2,839,684 3,207 2,842,891 Total comprehensive income for the period Profit for the year - - - - - - 270,017 270,017 710 270,727 - - - - - - - - Other comprehensive income for the year - - - 422 (52,787) - - (52,365) (170) (52,535) Total - - - 422 (52,787) - 270,017 217,652 540 218,192 Transactions with owners, recognised directly in equity Issue of shares 7 801 - (25) - - - - 776 - 776 Appropriation to reserve fund - - - - - 1,505 (1,505) - - - Interim tax exempt dividend paid in respect of the current financial year 9, 10 - - - - - - (72,728) (72,728) - (72,728) Purchase of treasury shares 7 - (6,894) - - - - - (6,894) - (6,894) Final tax exempt dividend paid in respect of the previous financial year 9, 10 - - - - - - (145,505) (145,505) - (145,505) Share options lapsed 7 - - (30) - - - 30 - - - Recognition of share-based payments 7 - - 2,148 - - - - 2,148 - 2,148 Shares purchased and cancelled 7 (1,026) - - - - - - (1,026) - (1,026) Total (225) (6,894) 2,093 - - 1,505 (219,708) (223,229) - (223,229) Balance at 31 December 2023 838,055 (22,429) 5,920 2,336 (140,002) 1,533 2,148,694 2,834,107 3,747 2,837,854 Condensed Statement Of Changes In Equity For The Period Ended 31 December 2024 Share- Foreign Equity Notes based Investments exchange attributable Non- to Share Treasury awards revaluation translation Other Accumulated to owners of controlling Total Financial capital shares reserve reserve reserve reserves profits the Company interests equity Statements S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 The Group Balance at 1 January 2024 838,055 (22,429) 5,920 2,336 (140,002) 1,533 2,148,694 2,834,107 3,747 2,837,854 Total comprehensive income for the period Profit for the period - - - - - - 245,029 245,029 721 245,750 Other comprehensive income for the period - - - 2,209 44,197 - - 46,406 43 46,449 Total - - - 2,209 44,197 - 245,029 291,435 764 292,199 Transactions with owners, recognised directly in equity Appropriation to reserve fund - - - - - 1,360 (1,360) - - - Interim tax exempt dividend paid in respect of the current financial year 9, 10 - - - - - - (72,495) (72,495) - (72,495) Treasury shares reissued pursuant to equity compensation plans 7 - 1,952 (1,707) - - (245) - - - - Purchase of treasury shares 7 - (1,815) - - - - - (1,815) - (1,815) Final tax exempt dividend paid in respect of the previous financial year 9, 10 - - - - - - (145,042) (145,042) - (145,042) Share options lapsed 7 - - (375) - - - 375 - - - Recognition of share-based payments 7 - - 1,669 - - - - 1,669 - 1,669 Shares purchased and cancelled 7 (18,046) - - - - - - (18,046) - (18,046) Total (18,046) 137 (413) - - 1,115 (218,522) (235,729) - (235,729) Balance at 31 December 2024 820,009 (22,292) 5,507 4,545 (95,805) 2,648 2,175,201 2,889,813 4,511 2,894,324 5 of 13
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Condensed Statement Of Changes In Equity For The Period Ended 31 December 2023 Share- Notes based Investments to Share Treasury awards revaluation Other Accumulated Total Financial capital shares reserve reserve reserves profits equity Statements S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 The Company Balance at 1 January 2023 838,280 (15,535) 3,827 3,259 (7,306) 706,053 1,528,578 Total comprehensive income for the period Profit for the period - - - - - 339,130 339,130 Other comprehensive income for the period - - - 138 - - 138 Total - - - 138 - 339,130 339,268 Transactions with owners, recognised directly in equity Issue of shares 7 801 - (25) - - - 776 Purchase of treasury shares 7 - (6,894) - - - - (6,894) Interim tax exempt dividend paid in respect of the current financial year 9, 10 - - - - - (72,728) (72,728) Final tax exempt dividend paid in respect of the previous financial year 9, 10 - - - - - (145,505) (145,505) Share options lapsed 7 - - (30) - - 30 - Recognition of share-based payments 7 - - 2,148 - - - 2,148 Shares purchased and cancelled 7 (1,026) - - - - - (1,026) Total (225) (6,894) 2,093 - - (218,203) (223,229) Balance at 31 December 2023 838,055 (22,429) 5,920 3,397 (7,306) 826,980 1,644,617 Condensed Statement Of Changes In Equity For The Period Ended 31 December 2024 Share- Notes based Investments to Share Treasury awards revaluation Other Accumulated Total Financial capital shares reserve reserve reserves profits equity Statements S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 The Company Balance at 1 January 2024 838,055 (22,429) 5,920 3,397 (7,306) 826,980 1,644,617 Total comprehensive income for the period Profit for the period - - - - - 218,660 218,660 Other comprehensive income for the period - - - 3,530 - - 3,530 Total - - - 3,530 - 218,660 222,190 Transactions with owners, recognised directly in equity Treasury shares reissued pursuant to 7 equity compensation plans - 1,952 (1,707) - (245) - - Purchase of treasury shares 7 - (1,815) - - - - (1,815) Interim tax exempt dividend paid in respect of the current financial year 9, 10 - - - - - (72,495) (72,495) Final tax exempt dividend paid in respect of the previous financial year 9, 10 - - - - - (145,042) (145,042) Share options lapsed 7 - - (375) - - 375 - Recognition of share-based payments 7 - - 1,669 - - - 1,669 Shares purchased and cancelled 7 (18,046) - - - - - (18,046) Total (18,046) 137 (413) - (245) (217,162) (235,729) Balance at 31 December 2024 820,009 (22,292) 5,507 6,927 (7,551) 828,478 1,631,078 6 of 13
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SELECTED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. Corporate Information 2. Basis of Preparation 2.1 Use of Judgements and Estimates 3. Profit after Income Tax The profit after income tax includes the following credits (charges): 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 S$'000 S$'000 S$'000 S$'000 Overprovision (Underprovision) of tax in respect of prior years 1,717 (730) 893 (95) Net re-measurement of loss allowance 10 499 161 483 (Loss) Gain on disposal of property, plant and equipment, net (31) (3) (27) 50 Gain on disposal of other financial assets - 162 - 162 (Provision) Reversal of inventory provisions (1,135) 1,456 (1,074) 3,406 12 months ended Venture Corporation Limited (Registration No. 198402886H) is incorporated in the Republic of Singapore with its principal place of business and registered office at 5006 Ang Mo Kio Avenue 5, #05-01/12 TECHplace II, Singapore 569873. The Company is listed on the mainboard of the Singapore Exchange Securities Trading Limited (“SGX-ST”). These condensed consolidated financial statements as at and for the six months and full year ended 31 December 2024 comprise the Company and its subsidiaries (collectively, the Group). The Company is a leading global provider of technology solutions, products and services. The condensed financial statements for the six months and full year ended 31 December 2024 have been prepared in accordance with SFRS(I) 1- 34 Interim Financial Reporting issued by the Accounting Standards Council Singapore. The condensed financial statements do not include all the information required for a complete set of financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group’s financial position and performance of the Group since the last interim financial statements for the period ended 30 June 2024. The accounting policies adopted are consistent with those of the previous financial year which were prepared in accordance with SFRS(I)s, except for the adoption of new and amended standards applicable for the current reporting period. The Group did not have to change its accounting policies or make retrospective adjustments as a result of adopting those standards. Standards issued but not effective can be found in Note 34 to annual financial statements for the full year ended 31 December 2023. The principal activities of the Group can be found in Note 11 to annual financial statements for the year ended 31 December 2023. The condensed financial statements are presented in Singapore dollar which is the Company’s functional currency. The condensed financial statements for the six months and full year ended 31 December 2024 have not been audited or reviewed. Group In preparing the condensed financial statements in conformity with SFRS(I)1-34 Interim Financial Reporting, the management is required to make judgement, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. These estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. In applying the Group’s material accounting policies, the judgements and the key sources of estimation uncertainty made were the same as those that applied to the consolidated financial statements as at and for the year ended 31 December 2023. Details can be found in Note 3 to annual financial statements for the year ended 31 December 2023. Group 2nd Half 7 of 13
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4. Financial Assets measured at Fair Value 4.1 Fair Value Measurement Fair value of financial assets and financial liabilities 31 Dec 2024 31 Dec 2024 31 Dec 2023 31 Dec 2023 Assets Liabilities Assets Liabilities S$'000 S$'000 S$'000 S$'000 Derivative Financial Instruments The Group and the Company Foreign exchange forward contract - 740 698 - Level 2 Other Financial Assets The Group Quoted equity shares 38,365 - 21,294 - Level 1 Unquoted equity shares / debt instrument 3,319 - 4,164 - Level 2 The Company Quoted equity shares 12,710 - 9,181 - Level 1 5. Segment and Revenue Information a) By Reportable Segments The Group classifies financial assets measured at fair value using a fair value hierarchy which reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: a) Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1); b) Inputs other than quoted prices included within Level 1 which are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices) (Level 2); and c) Inputs for the assets or liability which are not based on observable market data (unobservable inputs) (Level 3) Other than the fair values of derivative financial instruments and other financial assets, the carrying amounts of cash and bank balances, trade and other receivables, and trade and other payables approximate their respective fair values due to the relatively short-term maturity of these financial instruments. In accordance with disclosures under SFRS (I) 8 Operating Segments, the Group’s report on its operating segments are based on information shared internally with the Group’s chief operating decision makers. The Group is predominantly a provider of manufacturing, engineering, design and fulfilment services to the global electronics industry and the nature of the production process and distribution modes of the products for Venture’s wide range of customers are fairly similar within Electronic Manufacturing Services (EMS++). The measurement of operating segment results is generally consistent with the presentation of the Group’s condensed interim Statement of Comprehensive Income. Disclosures by geographical locations and technology domains accurately reflect the nature and scope of the Group’s current undertakings and provide a clear picture of its diverse global businesses to readers. There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy during the year. Financial Assets/Liabilities Fair Value as at Fair Value Hierarchy Forward pricing: The fair value is determined using quoted forward exchange rates at the reporting date discounted at a rate that reflects credit risk of counterparties Valuation Technique(s) and Key Input(s) Quoted bid prices in an active market Net tangible asset of the underlying investment / most recent transacted prices which approximate fair value Quoted bid prices in an active market 8 of 13
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b) Revenue By Technology Domains 31 Dec 24 31 Dec 23 31 Dec 24 31 Dec 23 S$'000 S$'000 S$'000 S$'000 Portfolio A 509,577 599,910 1,113,509 1,291,166 Portfolio B 842,134 842,898 1,622,418 1,733,862 1,351,711 1,442,808 2,735,927 3,025,028 c) Revenue By Geographical Locations The Group operates in the following principal geographical areas: 31 Dec 24 31 Dec 23 31 Dec 24 31 Dec 23 S$'000 S$'000 S$'000 S$'000 Singapore 376,797 389,604 724,190 805,498 Asia-Pacific (excluding Singapore) 911,755 967,686 1,872,874 2,047,997 Others 63,159 85,518 138,863 171,533 1,351,711 1,442,808 2,735,927 3,025,028 A breakdown of sales: Year ending 31 Dec 2024 Year ending 31 Dec 2023 Increase/ (Decrease) S$'000 S$'000 % 1,384,216 1,582,220 (13%) 123,917 140,286 (12%) 1,351,711 1,442,808 (6%) 121,833 130,441 (7%) 6. Aggregate Amount of Group's Borrowings and Debt Securities (a) Amount repayable in one year or less, or on demand Secured Unsecured Secured Unsecured Secured Unsecured Secured Unsecured S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 Lease liabilities 11,832 - 8,981 - 6,936 - 4,212 - (b) Amount repayable after one year Secured Unsecured Secured Unsecured Secured Unsecured Secured Unsecured S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 Lease liabilities 18,421 - 18,545 - 5,454 - 1,250 - (c) Details of any collateral Not applicable. As at 31 Dec 2024 As at 31 Dec 2023 As at 31 Dec 2024 As at 31 Dec 2023 As at 31 Dec 2024 As at 31 Dec 2023 As at 31 Dec 2024 As at 31 Dec 2023 Group Company 2nd Half Full Year 2nd Half Full Year The majority of the revenue is recognised at a point in time, with revenue recognised over time contributing less than 10% of the total revenue. Portfolio A comprised Life Science, Genomics, Molecular Diagnostics and Related Materials Technology, Medical Devices and Equipment, Healthcare & Wellness Technology, Lifestyle Consumer Tech, Health Improvement Products and Others. Portfolio B comprised Instrumentation, Test & Measurement Technology, Networking & Communications, Security & Safety, Building Automation, Industrial IOT, Fintech & Advanced Payment Systems, Computing & Productivity Systems, Advanced Industrial Technology, Semiconductor Related Products, Printing & Imaging, Related Components Technology and Others. Group Company Operating profit after tax before deducting non- controlling interests reported for second half year The Group Sales reported for first half year Operating profit after tax before deducting non- controlling interests reported for first half year Sales reported for second half year 9 of 13
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7. Share Capital and Treasury Shares No. of Ordinary Shares in Issue S$'000 As at 1 January 2024 291,924,577 838,055 No. of shares purchased and cancelled in 1H 2024 (447,100) (6,134) As at 30 June 2024 291,477,477 831,921 No. of shares purchased and cancelled in 2H 2024 (894,200) (11,912) As at 31 December 2024 290,583,277 820,009 No. of Treasury Shares S$'000 As at 1 January 2024 1,494,000 22,429 Treasury shares utilised in 1H 2024 (130,000) (1,952) As at 30 June 2024 1,364,000 20,477 Treasury shares repurchased in 2H 2024 132,000 1,815 As at 31 December 2024 1,496,000 22,292 As at 31 December 2024 As at 31 December 2023 % of treasury shares against the total ordinary shares in issue 0.5% 0.5% No. of shares S$'000 Issued shares excluding treasury shares as at 1 January 2024 290,430,577 815,626 Issued shares excluding treasury shares as at 30 June 2024 290,113,477 811,444 Issued shares excluding treasury shares as at 31 December 2024 289,087,277 797,717 Venture Corporation Executives' Share Option Scheme ("The 2015 Scheme") Venture Corporation Restricted Share Plan ("RSP") 8. Net Asset Value 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 As at 31 December 2024, the total number of ordinary shares in issue was 290,583,277 (31 December 2023: 291,924,577), of which 1,496,000 were treasury shares (31 December 2023: 1,494,000). The Company purchased 1,026,200 ordinary shares during 2H 2024 (2H 2023: 580,000). The ordinary shares purchased by the Company may be held as treasury shares which can, in accordance with the Companies Act, be sold for cash, transferred for the purposes of or pursuant to an employee's share-based scheme; transferred as consideration for the acquisition of shares in or assets of another company or assets of a person; or cancelled. 894,200 (2H 2023: 80,000) ordinary shares purchased were cancelled. Except as disclosed below, there were no other sales, transfers, cancellation and/or use of treasury shares during the period. Group Company Net asset value per ordinary share based on the total number of issued shares excluding treasury shares at the end of the financial period reported on (S$) The RSP has a 5-year vesting period and is subject to the rules of the RSP. As at 31 December 2024, the number of RSP shares stood at 529,900 (31 December 2023: 617,500). 10.00 9.76 5.64 5.66 Since the end of 30 June 2024, no options (2H 2023: Nil) were exercised and 157,300 options (2H 2023: 36,200) have lapsed. As at 31 December 2024, there were 2,476,100 unissued shares of the Company under options in the 2015 Scheme. (31 December 2023: 2,624,500). 10 of 13
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9. Dividend (a) Current Financial Period Reported On Interim (Paid) Final (Proposed) Cash Cash 25 cents per ordinary share 50 cents per ordinary share* Exempt Exempt *subject to shareholder's approval at the forthcoming AGM (b) Corresponding Period of the Immediately Preceding Financial Year Interim Final Cash Cash 25 cents per ordinary share 50 cents per ordinary share Exempt Exempt (c) Date Payable 19 May 2025 (d) Books Closure Date 5pm on 6 May 2025 10. A breakdown of the annual dividend (in dollar value) for the issuer's latest full year and its previous full year Latest Full Year Previous Full Year (Proposed) (Paid) S$'000 S$'000 Final ordinary dividend for 2023 (Paid) - 145,042 Interim ordinary dividend (Paid) 72,495 72,728 Proposed final ordinary dividend for 2024* 144,544 - 217,039 217,770 In respect of the previous financial year ended 31 December 2023, the Company declared and paid an interim one-tier tax-exempt dividend of $0.25 per ordinary share totalling $72,728,000 and a final one-tier tax-exempt dividend of $0.50 per ordinary share totalling $145,042,000. Name of Dividend Dividend Type Dividend Amount per Share (in cents) Tax Rate Name of Dividend Dividend Type Dividend Amount per Share (in cents) Tax Rate *Based on 289,087,277 issued shares excluding treasury shares as at 31 December 2024. During the financial year, the Company declared and paid an interim one-tier tax-exempt dividend of $0.25 per ordinary share totalling $72,495,000 in respect of the financial year ended 31 December 2024. In addition, the Directors of the Company propose that a final one-tier tax-exempt dividend of $0.50 per ordinary share be paid to all shareholders in respect of the financial year ended 31 December 2024. Subject to the approval by the shareholders at the forthcoming Annual General Meeting, this proposed dividend has not been included as a liability in these financial statements. The total estimated dividend to be paid is $144,544,000. 11 of 13
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OTHER INFORMATION 1. Subsidiary Holdings There were no holdings in Venture Corporation Limited by any subsidiary as at the end of the current financial period reported on. 2. 3. The Group’s performance for the period under review was generally in line with its expectations as disclosed in its business update in 3Q 2024. Please refer to Performance Review under "Other Information" Note 2. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. It must include a discussion of the following:- (a) any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and (b) any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results. PERFORMANCE REVIEW For the financial year ended 31 December 2024 (FY2024), the Group registered revenue of S$2,735.9 million (FY2023: S$3,025.0 million). Group revenue declined by 9.6% year-on-year, mainly attributable to softer customer demand within the Group’s portfolio. Gross margin remained resilient as changes in finished goods, work in progress and raw materials used decreased in tandem with the lower revenue. For the six months ended 31 December 2024 (2H 2024), Group revenue declined 6.3% against the same period last year. Sequentially against 1H 2024, 2H 2024 revenue dipped by 2.3%, mainly attributable to the Lifestyle Consumer technology domain which was impacted by unexpected lower demand. This was offset by revenue growth across the majority of technology domains. In particular, Networking & Communications and Advanced Industrial technology domains delivered better results. The Group recorded profit before tax (PBT) of S$306.6 million for FY2024 (FY2023: S$330.8 million) and S$152.1 million for 2H 2024 (2H 2023: S$159.4 million). Notwithstanding lower revenue from softer demand, PBT margins improved to 11.2% for FY2024 (FY2023: 10.9%) and 11.3% for 2H 2024 (2H 2023: 11.0%) from higher interest income and a tight focus on operational efficiency. The Group registered net profit (profit attributable to owners of the Company) of S$245.0 million for FY2024 (FY2023: S$270.0 million) and S$121.4 million for 2H 2024 (2H 2023: S$130.0 million). This translates to a healthy net margin of 9.0% for FY2024 (FY2023: 8.9%) and 9.0% for 2H 2024 (2H 2023: 9.0%). Diluted Earnings Per Share was 84.4 cents for FY2024 (FY2023: 92.6 cents) and 41.8 cents for 2H 2024 (2H 2023: 44.6 cents). FINANCIAL POSITION AND CASHFLOW The Group generated operating cash flow of S$300.1 million before working capital changes for FY2024. The Group continues to optimise its working capital position with lower inventory balance and improved receivables and payables position. For FY2024, the Group achieved strong net cash flow from operations of S$482.5 million. As at 31 December 2024, the Group balance sheet remained robust with zero debt. Group Net cash balance as at 31 December 2024 rose strongly by 24.7% compared to 31 December 2023, underpinned by operating cashflow and judicious working capital management. As at 31 December 2024, equity attributable to owners of the Company was S$2,889.8 million (S$2,834.1 million as at 31 December 2023) and net asset value per share grew 2.4% to S$10.00, compared to $9.76 as at 31 December 2023. 12 of 13
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4. 5. The Group has not sought a general mandate from shareholders for Interested Person Transactions. 6. 7. A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months. Pursuant to Rule 704(13) of the Listing Manual, Venture Corporation Limited confirms that there are no persons occupying a managerial position in the Company or in any of its principal subsidiaries who is a relative of a director, chief executive officer or substantial shareholder of the Company. Venture ended FY2024 with a strong balance sheet and recorded a robust profit margin which reflects the resilience and strength of our business model. We are currently at various stages of implementing new business wins in design and manufacturing. These include products in the Networking & Communications, Test & Measurement Instrumentation, Semiconductor Related Equipment, Life Science, Precision Engineering and Lifestyle Consumer technology domains. Though the short-term business environment is deemed uncertain, Venture targets for growth in 2025. We are confident in our ability to effectively navigate complexities by leveraging our differentiating capabilities, resilience and long-standing relationships with key partners. The Group plans to make investments to augment our differentiating capabilities and explore various opportunities to support our growth. To improve shareholder returns, the Board has approved an acceleration of the Share Buyback Plan going forward. If the Group has obtained a general mandate from shareholders for IPTs, the aggregate value of such transactions as required under Rule 920(1)(a)(ii). If no IPT mandate has been obtained, a statement to that effect. Please disclose a confirmation that the issuer has procured undertakings from all its directors and executive officers under Rule 720(1). The Group has procured undertaking from all its directors and executive officers in the format as set out in Appendix 7.7 under Rule 720(1) of the Listing Manual of the SGX-ST. Disclosure of persons occupying managerial positions who are related to a director, CEO or substantial shareholder 13 of 13