Sing Lee Software (Stock Code: 08076) released audited results for the year ended 31 December 2025, showing a sharper loss as top-line growth weakened and gross margins compressed.

Revenue and Profitability • Revenue declined 28.7% year on year to RMB41.93 million, dragged mainly by a 36.2% drop in technical support and other services income to RMB36.03 million. • Cost of sales decreased 24.7% to RMB38.51 million, but the gross margin narrowed to 8.2% (2024: 13.0%), yielding gross profit of RMB3.42 million. • The Group recorded a net loss of RMB12.05 million, compared with a RMB11.62 million loss in 2024; basic loss per share widened to RMB0.91 cents.

Segment Performance • Technical support and other services remained the core contributor, accounting for 85.9% of revenue. • Sales of software products rose to RMB2.53 million (2024: RMB1.26 million) while hardware revenue increased to RMB3.37 million (2024: RMB1.04 million). • Customer concentration stayed high: the largest client generated 36% of sales and the top five accounted for 89%.

Expense and Other Items • Distribution and selling expenses rose 22.1% to RMB6.26 million, reflecting higher sales headcount. • Administrative expenses fell 12.2% to RMB10.83 million as staff costs were streamlined. • Research and development spending dropped 21.9% to RMB6.17 million. • A RMB1.19 million net reversal of expected credit losses and a RMB1.13 million net exchange gain partly offset operating pressure.

Balance Sheet and Liquidity • Cash and cash equivalents stood at RMB16.25 million, down 43.0% from end-2024, due mainly to operating cash outflows. • Total borrowings increased slightly to RMB29.97 million; fixed-rate, unsecured loans from a related party comprised 93% of the total. • The current ratio remained healthy at 3.5 times, while the gearing ratio (total liabilities/total assets) rose to 83.9% (2024: 67.5%). • Net assets fell to RMB7.52 million after two consecutive years of losses.

Operational Highlights • Headcount increased to 501 (2024: 418) despite cost controls. Total staff costs dropped 29.4% to RMB39.46 million. • Inventory provision of RMB0.90 million was booked in 2025 versus nil a year earlier. • Capital structure remained unchanged; 12.07 million share options lapsed during the year.

Management Outlook The Board expects industry conditions to stabilise as financial institutions gradually resume IT investment and artificial intelligence accelerates digital transformation. Strategic focus will remain on product standardisation, platform-based revenue models and cost efficiency to support a recovery in profitability.