Chairman's Statement

I am pleased to present JEP Holdings Ltd.’s (“JEP” or the “Group”) Annual Report for the financial year ended 31 December 2024 (“FY2024”). The Group has achieved a significant milestone, with net attributable profit increasing by 86.6% to S$3.1 million on revenue of S$56.9 million. This result highlights the strength of our core business segments, particularly in the aerospace sector, and reflects our strategic focus on cost management and operational efficiency.

The recovery of the global aviation industry has been a key driver of our improved performance. Despite challenges in other sectors, our Precision Machining segment, which includes aerospace and electronic components, delivered strong growth, with sales increasing by 17.4% to S$34.2 million. This success underscores the resilience of our business and the positive impact of strategic investments in high-value sectors.

While our revenue eased 2.1% compared to FY2023, the Group’s profitability improved, driven by a foreign exchange gain and a reduction in operating costs. This strong performance was especially evident in the second half of FY2024, with net attributable profit increasing by 150.8%, reflecting the Group’s ability to adapt to market conditions and capitalize on growth opportunities in the aerospace sector.

Outlook and Strategies

Looking ahead, we are optimistic about the prospects of the aerospace and semiconductor industries, both of which are expected to experience growth. According to the International Air Transport Association (IATA), the number of air travellers around the world is expected to surpass five billion for the first time in 2025 and total revenues in the industry are set to exceed US$1 trillion for the first time in 2025, at US$1.007 trillion.¹ Meanwhile, the Semiconductor Industry Association (SIA) has forecast double-digit growth for the global semiconductor industry in 2025 and expects the longterm industry outlook to be “incredibly strong”.² These trends present significant opportunities for JEP, and we are well-positioned to capitalize on them.

In the aerospace sector, we remain focused on expanding our product portfolio to meet the growing demand for aircraft components. We are committed to enhancing our capabilities and production efficiency to support the expected surge in global air travel. Simultaneously, we are exploring new opportunities in the semiconductor industry, driven by the ongoing growth in AI and related technologies.

Amid these promising industry trends, JEP continues to navigate a landscape marked by geopolitical uncertainty and challenges. Despite these external pressures, our strategic initiatives and robust operational framework enable us to remain agile and resilient.

The Group will continue to seek new businesses and maximise operational synergies with UMS Integration Limited (formerly known as UMS Holdings Limited) to improve overall performance.

Approach to Sustainability

Sustainability continues to be a key focus for JEP. In FY2024, we remained committed to sustainable practices by investing in high-end machinery to implement resource-efficient measures. These machines are designed to optimize energy usage, reduce waste, and enhance overall production efficiency. Our efforts to integrate advanced technology into our operations are part of our broader commitment to corporate social responsibility and environmental stewardship. By adopting these innovative solutions, we aim to create long-term value for our stakeholders while contributing to a more sustainable future.

Appreciation

On behalf of the Board, we would like to express our sincere appreciation to all our customers, shareholders, business partners, and suppliers for their unwavering trust and continued support throughout the year. We also extend a warm welcome to Mr. Goh Kuan Teck, who joins us as a valued member of the Board. Special thanks to Mr. Zee Hoong Huay, who has stepped down before the Annual General Meeting, for his contributions to the Board and the Group.

We acknowledge the commitment and professionalism of our staff and management team, whose tireless efforts have been instrumental in achieving the Group’s goals. Their dedication to operational excellence and continuous improvement is the foundation of our success.

Moving forward, JEP remains confident in its ability to achieve sustainable growth and continue delivering value to our shareholders.

Mr. Andy Luong
Executive Chairman and Chief Executive Officer
JEP Holdings Ltd

Source:

"The Group has achieved a significant milestone, with net attributable profit increasing by 86.6% to S$3.1 million on revenue of S$56.9 million."