INNEOVA Holdings Limited Reports Year-End 2024 Financial Results

Rhea-AI Summary

INNEOVA Holdings Limited (NASDAQ: INEO) reported its fiscal year 2024 financial results, showing a slight revenue decline of 2.0% to $58.3 million from $59.5 million in 2023. While gross profit remained stable at $10.9 million with an improved margin of 18.7%, operating income decreased to $0.8 million from $2.5 million, and net income fell significantly to $0.008 million from $1.6 million in 2023.

The Singapore-based OEM parts manufacturer underwent significant transformations in 2024-2025, including a successful IPO in October 2024, automation implementation in its distribution center, rebranding from SAG Holdings to INNEOVA Holdings in April 2025, and the strategic acquisition of INNEOVA Engineering Pte. Ltd. to enhance its engineering capabilities and expand its service offerings.

[ "Successful IPO and listing on Nasdaq Capital Market", "Implementation of automation technology in distribution center to enhance operational efficiency", "Strategic acquisition of INNEOVA Engineering to strengthen capabilities", "Slight improvement in gross profit margin to 18.7% from 18.3%" ]

Positive

• None.

Negative

• Revenue declined 2.0% to $58.3 million due to reduced Singapore market demand
• Operating income decreased 68% to $0.8 million from $2.5 million
• Net income fell 99.5% to $0.008 million from $1.6 million
• Increased administrative expenses and selling and distribution costs

Insights

Financial Analyst

INNEOVA reports concerning 99.5% net income drop despite stable gross margins, with strategic initiatives yet to offset local market weakness.

Looking at INNEOVA's fiscal 2024 results, the 99.5% decline in net income (from $1.6 million to just $8,000) is the most concerning metric despite relatively stable revenue. This dramatic profit erosion occurred while revenue only decreased 2.0%, indicating significant margin compression at the operating level, where income fell 68% from $2.5 million to $0.8 million.

The gross profit margin improvement from 18.3% to 18.7% shows the company maintained pricing discipline and product margins, but this positive aspect was completely overwhelmed by rising administrative and distribution costs. This suggests potential operational inefficiency that needs addressing, particularly as the company integrates recent acquisitions.

The transformation initiatives—IPO completion, distribution center automation, rebranding, and the INNEOVA Engineering acquisition—represent significant strategic pivots that could position the company for future growth. However, these moves have yet to translate into financial performance. The automation implementation in November 2024 should theoretically improve operational metrics, but hasn't yet demonstrated clear cost benefits in the financial results.

The Singapore market weakness mentioned as the primary driver of revenue decline is concerning, as it suggests vulnerability in the company's home market. While the strategic acquisitions may help diversify revenue streams, investors should closely monitor whether these initiatives can offset continued local market challenges and reverse the troubling profit decline trend in upcoming quarters.

SINGAPORE, May 19, 2025 (GLOBE NEWSWIRE) -- INNEOVA Holdings Limited (Nasdaq: INEO, "INNEOVA Holdings" or the "Company"), a leading Singapore-based provider of high-quality Original Equipment Manufacturer ("OEM"), third-party branded, and in-house branded replacement parts for motor vehicles and non-vehicle combustion engines, today announced its financial results for the fiscal year ended December 31, 2024.

Key Financial Highlights for Fiscal Year 2024

Revenue: $58.3 million, a 2.0% decrease from $59.5 million in the prior year. The decrease was primarily due to reduced demand in the Singapore local market.

Gross Profit: $10.9 million, comparable to $10.9 million in 2023. The gross profit margin improved slightly to 18.7% from 18.3% in the previous year, demonstrating the Company's ability to maintain pricing discipline amid market challenges.

Operating Income: $0.8 million, compared to $2.5 million in the previous year. This decrease in income reflects increased administrative expenses and selling and distribution costs.

Net Income: $0.008 million, compared to $1.6 million in 2023. The reduction in net income was primarily due to higher administrative expenses.

Operational Highlights and Recent Developments

Throughout 2024 and early 2025, INNEOVA Holdings achieved several key milestones that position the Company for future growth. These include:

Successful Initial Public Offering (IPO): Formerly known as SAG Holdings Limited, the Company announced the pricing of its IPO on October 22, 2024, and the closing on October 24, 2024 (as detailed in press releases dated October 22 and 24, 2024). This marked a significant step in its growth trajectory, with shares trading on the Nasdaq Capital Market under the symbol "SAG" at the time.

Fulfilment Center at INNEOVA Facility: On November 13, 2024, INNEOVA Industrial Pte Ltd (formerly known as Filtec Private Limited), a wholly-owned subsidiary, announced the completion of automation technology implementation in its distribution center, leveraging advanced robotics and digital solutions to enhance operational efficiency.

Rebranding to INNEOVA Holdings Limited: Effective April 28, 2025, the Company changed its name from SAG Holdings Limited to INNEOVA Holdings Limited, with its Nasdaq ticker symbol changing to "INEO". This rebranding reflects the Company's enhanced focus on engineering excellence and innovative solutions.

Acquisition of INNEOVA Engineering Pte. Ltd.: On April 30, 2025, INNEOVA Holdings announced the completed acquisition of INNEOVA Engineering Pte. Ltd. This strategic move strengthens the Company’s engineering capabilities, accelerates growth in sustainable solutions, and expands its offerings into a comprehensive, full-chain solution from components supply to customized engineering and systems integration.

"We believe that =the 2024 fiscal year and the beginning of 2025 mark a period of profound transformation and foundational growth for INNEOVA," said Mr. Jimmy Neo, Chief Executive Officer. "We are pleased with our progress in key strategic areas, including our successful IPO, our strategic rebranding to INNEOVA, and the recent acquisition of INNEOVA Engineering. These milestones underscore our commitment to innovation and expanding our capabilities in sustainable engineering. While we acknowledge the prevailing global economic uncertainties that have impacted our financial results, our performance demonstrates our business model's resilience and our team's dedication. We remain optimistic about our prospects for the remainder of 2025 as we continue executing our growth strategy and delivering value to our shareholders."

About INNEOVA Holdings

INNEOVA Holdings (formerly SAG Holdings Limited) is a leading Singapore-based provider of high-quality OEM, third-party branded, and in-house replacement parts for motor vehicles and non-vehicle combustion engines.

On-Highway (INNEOVA Automotive): We provide an extensive range of genuine OEM and aftermarket parts for passenger vehicles, trucks, and buses. Our offerings include parts from manufacturers' brands, trusted third-party labels, and our in-house brands.

Off-Highway (INNEOVA Industrial): Catering to industries like construction, marine, power generation, mining, and transportation, we offer specialized spare parts focusing on filtration systems, lubricants, batteries, and internal combustion engine components.

Engineering Services (INNEOVA Engineering): We provide system lifecycle analysis and engineering services for infrastructure and mobility platforms to generate innovative and sustainable solutions for maximum uptime and optimal total cost of ownership for our customers. Driven by Uptime, Delivered Through Expertise.

Our unwavering commitment to quality seeks to ensure that our customers experience maximum uptime, enhanced performance, and reduced total cost of ownership throughout the lifecycle of their machines. For more information, visit https://www.inneova.co.

Safe Harbor Statement

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include but are not limited to, statements relating to our expectations regarding future growth and performance. The words “anticipate,” “believe,” “seeks,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the uncertainties related to market conditions and the completion of the public offering on the anticipated terms or at all, and other factors discussed in the “Risk Factors” section of our disclosure documents filed with the SEC. Any forward-looking statements contained in this press release speak only as of the date hereof, and INNEOVA Holdings Limited specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com

Ivy Lee / Jamie Neo
INNEOVA Holdings Limited
Tel: +65 6383 7540
Email: ir@inneova.co

FAQ

What were INNEOVA Holdings (INEO) key financial results for fiscal year 2024?

INNEOVA reported revenue of $58.3 million (down 2.0%), gross profit of $10.9 million, operating income of $0.8 million, and net income of $0.008 million for FY2024.

When did INNEOVA Holdings (INEO) complete its IPO?

INNEOVA Holdings (then known as SAG Holdings) completed its IPO on October 24, 2024, with shares trading on the Nasdaq Capital Market.

Why did INNEOVA Holdings (INEO) change its name from SAG Holdings?

The company rebranded from SAG Holdings to INNEOVA Holdings on April 28, 2025, to reflect its enhanced focus on engineering excellence and innovative solutions.

What was the impact of INNEOVA Holdings' (INEO) acquisition of INNEOVA Engineering?

The acquisition strengthened the company's engineering capabilities and expanded its offerings into a comprehensive solution from components supply to customized engineering and systems integration.

What caused INNEOVA Holdings' (INEO) revenue decline in 2024?

The 2.0% revenue decline was primarily due to reduced demand in the Singapore local market.