Annual Report 2025

(COMPANY REG. NO. 197800523M)

SUNRIGHT LIMITED ANNUAL REPORT 2025 01

02 Chairman's Statement

04 Business Review

06 Board of Directors

09 Corporate Information

10 Sustainability Report

55 Corporate Governance Report

FINANCIALS

74 Directors' Statement

77 Independent Auditor's Report

81

Consolidated Statement of Profit or Loss and

Other Comprehensive Income

82 Statements of Financial Position

83 Statements of Changes in Equity

85 Consolidated Cash Flow Statement

86 Notes to the Financial Statements

137 Shareholders' Information

139 Notice of Annual General Meeting

142

Notice of Books Closure and Dividend Payment Date

143

Additional Information on Directors Seeking Re-election at the AGM

Proxy Form

02 SUNRIGHT LIMITED ANNUAL REPORT 2025

CHAIRMAN'S STATEMENT

DELIVERING RELIABILITY ACROSS WAFER, PACKAGE, AND MODULE LEVELS

DIVERSIFYING APPLICATIONS ACROSS AUTOMOTIVE, AI, COMMUNICATIONS, MILITARY, AND COMMERCIAL MARKETS

DRIVING A PIPELINE OF NEW SOLUTIONS BEING SHAPED FOR MARKET INTRODUCTION

SUNRIGHT LIMITED ANNUAL REPORT 2025

DEAR FELLOW SHAREHOLDERS,

FY2025 was a challenging year as customers moved quickly to introduce new products while older devices volume fell, resulting in a year of loss. Still, these very pressures sparked the changes now shaping our future.

FINANCIAL PERFORMANCE

The Group recorded revenue of S$73.0 million, down 11% from S$82.0 million in FY2024, reflecting softer conditions across core markets. This translated into a net loss of S$5.8 million, compared to a net profit of S$2.2 million in the prior year. Loss per share stood at

4.7 cents, versus earnings per share of 1.8 cents in FY2024.

Our cash holdings ended the year at S$84.0 million, compared to S$95.1 million previously, reflecting the year's weaker performance. Despite this reduction, our balance sheet remains strong, providing the flexibility to sustain operations and pursue strategic priorities.

MARKET DYNAMICS AND PERFORMANCE

Artificial intelligence ("AI") adoption in data centres and the growing electronic content in cars are driving strong structural growth. At the same time, customers are rebalancing production - slowing certain product lines while retooling for AI-related applications. This transition, combined with inventory digestion in the automotive sector, has reduced our production volumes and placed pressure on financial performance.

These challenges are transitional, not permanent. As inventories normalise, we expect to see steady and progressive improvement.

RELIABILITY AT THE CORE

Reliability is at the heart of what we do. With many new products still in the early stages of introduction, burn-in and testing have become essential to verify performance and reinforce customer confidence. At the same time, our advances in system-level test are gaining recognition in new markets.

Our wafer testing services are also gaining traction, and our unique test probe has been approved by customers for high power applications. These capabilities are laying the foundation for our transition into wafer-level burn-in.

BROADENING OUR REACH

We are moving beyond our traditional role in package burn-in. We are delivering reliability across wafer, package, and module levels - offering both solutions and services as a comprehensive partner.

Importantly, our wide customer base spans diverse applications across automotive, AI, communications, military, and commercial markets, giving us both resilience and insight into the evolving needs of the industry.

03

AI AND THE ROAD AHEAD

Many of the solutions in our intellectual property repository are now driving a pipeline of new solutions being shaped for market introduction.

With an improving market climate and our expanding portfolio of solutions and services, we are cautiously optimistic of the potential opportunities.

STRENGTHENING OUR BOARD

It is our pleasure to welcome Dr. Taheri to our Board. His extensive experience, deep industry expertise, and proven leadership in technology and governance will be invaluable as we steer Sunright into its next phase of growth and development.

DIVIDEND

In appreciation of our shareholders' continued support, and in line with our commitment to deliver value, the Board of Directors has proposed a dividend payout of

0.2 cent per share for FY2025. This reflects our confidence in the Group's underlying fundamentals and our readiness to capture opportunities ahead, while maintaining prudent financial management.

APPRECIATION

On behalf of the Board sincere appreciation is extended to our management and employees for their dedication and resilience throughout this challenging year, and our customers, suppliers, and partners for their continued trust and support, and our shareholders for their continued trust, support and confidence in our vision and strategy.

As we step into FY2026, we remain focused on innovation, confident that the foundations we have built will position us to participate meaningfully in the growth of AI.

Yours sincerely

SAMUEL LIM SYN SOO

Executive Chairman & Chief Executive Officer

26 September 2025

04 SUNRIGHT LIMITED ANNUAL REPORT 2025

BUSINESS REVIEW

System Level Test System

OPERATIONS REVIEW

FY2025 was a year marked by challenges and progress for Sunright. While overall sales volumes did not recover, we remained firmly engaged with customers and pursued opportunities in growth markets, particularly in artificial intelligence ("AI") and automotive.

To enable our customers to build next-generation AI infrastructure, we successfully developed an enhanced reliability test solution for modules used in data centre applications. This milestone reflects steady progress in aligning our capabilities with next-generation applications in data centres and high-performance computing. Beyond data centres, the deployment of AI across healthcare and mobile devices has also fuelled demand for smaller, more advanced environmental sensors, such as gas sensors, accelerometers, and gyrometers. In response, we introduced miniature gas and humidity housing solution platforms with full-service support, helping customers manage growing technical complexity while ensuring reliability.

Automotive semiconductors continued to represent a critical focus area. As electrification and autonomy accelerate, rigorous burn-in and testing remain central to ensuring the performance and safety of next-generation systems. Sunright advanced its solutions and service support across key applications, from tire-pressure monitoring to battery management systems. We also broadened our offerings to address the increasing diversity of sensors and the rising adoption of autonomous, AI-driven vehicles, ensuring that our comprehensive solutions are equipped to meet these complex requirements.

In parallel with these innovation efforts, we maintained strict discipline across our operations to navigate softer market conditions. Resources were carefully prioritised toward high-potential areas, while productivity initiatives, cost controls, and site streamlining measures helped us operate with greater efficiency. These actions were undertaken with a long-term view: to preserve customer service standards, safeguard critical expertise, and strengthen our capacity to respond swiftly as demand recovers.

Taken together, these developments highlight Sunright's active role in supporting the industry's transition throughout FY2025. By staying closely aligned with customer's needs and continuing to innovate across multiple application areas, we have laid a solid foundation for future growth and reinforced our role as a trusted partner in semiconductor reliability.

SUNRIGHT LIMITED ANNUAL REPORT 2025 05

BUSINESS REVIEW

FINANCIAL REVIEW

REVIEW OF FINANCIAL RESULTS

The Group recorded revenue of S$73.0 million in FY2025, reflecting a decrease of S$9.1 million or 11% as compared to S$82.0 million in FY2024. The decline reflected softer market conditions in both the computing and automotive market segments for our products and services.

Other income decreased by S$9.0 million or 84%, to S$1.7 million, largely attributable to lower gain on disposal of property, plant and equipment by S$8.4 million and absence of fair value gain on investment securities of S$0.5 million.

Raw materials and consumables used, as well as changes in inventories of finished goods and work-in-progress, were lower by S$2.9 million or 22%, to S$10.4 million, in line with reduced equipment deliveries.

Employee benefits expense decreased by S$3.7 million or 10%, to S$33.5 million, with reduced labour resource required to process lower volume.

Other expenses were lower by S$0.9 million or 3%, to S$24.3 million, as a result of cost reductions in utilities, repairs and maintenance, sales commissions and recruitment expenses totalled S$2.6 million. These reductions were partially offset by net impairment loss on trade receivables of S$0.3 million, net exchange loss of S$0.4 million and fair value loss on investment securities of S$1.0 million.

As a result, the Group recorded a loss before tax of S$6.9 million in FY2025, compared with a profit of S$3.3 million in FY2024.

REVIEW OF FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES

Property, plant and equipment was lowered by S$7.4 million or 14%, from S$51.3 million as at 31 July 2024, to S$43.9 million as at 31 July 2025. The decrease was primarily due to depreciation charge of S$15.1 million, partially offset by net additions of S$6.1 million and the foreign currency translation effect of S$1.7 million.

Investment securities reduced by S$0.9 million or 19%, from S$4.6 million to S$3.7 million, as a result of fair value loss of S$1.0 million.

Current trade and other receivables increased by S$5.0 million or 32%, from S$15.5 million to S$20.6 million, largely due to liquidation consideration receivable of S$5.1 million from the deconsolidation of a subsidiary.

Cash and short-term deposits decreased by S$11.1 million or 12%, from S$95.1 million to S$84.0 million, represented net cash outflows from deconsolidation of a subsidiary and net repayments of bank loans, partially offset by foreign currency translation effect arising from a strengthened Ringgit Malaysia.

Total loans and borrowings decreased by S$7.9 million or 30%, from S$26.0 million to S$18.1 million, primarily due to net repayments of bank loans of S$7.3 million and net decrease in lease liabilities of S$1.4 million, partially offset by foreign currency translation effect of S$0.8 million.

06 SUNRIGHT LIMITED ANNUAL REPORT 2025

SAMUEL LIM SYN SOO

Executive Chairman and Chief Executive Officer Age: 71

KENNETH TAN TEOH KHOON

Executive Director Age: 68

First appointment as a Director: 9 March 1978 Appointment as Chairman: 19 February 1990 Appointment as Chief Executive Officer: 13 January 1994 Last re-appointment as a Director: 24 November 2023

Board Committee Membership

• Nominating Committee

  Interest in Shares in the Company

  67,466,666 shares (54.94%)

  Academic & Professional Qualification(s)

• Diploma in Industrial Engineering (Canada)

  Background and Working Experience

  Mr Lim is an engineer, entrepreneur and innovator.

  He began his career as an Industrial Engineer in 1972 at Fairchild Semiconductor in Singapore. He held various senior positions including engineering, manufacturing and marketing, working for U.S. multinational companies based in Asia and USA.

  Mr Lim is Founder, Executive Chairman and Chief Executive Officer of the Company and KESM Industries Berhad in Malaysia. He led the Company to become the world's largest independent test and burn-in service company and a leading solution provider.

  Present Principal Commitments including Directorships

  Directorships in Other Listed Companies

• KESM Industries Berhad

  Directorships in Non-Listed Companies

• KES Systems & Service (1993) Pte Ltd

• KES Systems & Service (M) Sdn. Bhd.

• KES Systems & Service Philippines Inc.

• KES International Sdn. Bhd.

• KES Systems, Inc.

• KESM Test (M) Sdn. Bhd.

• KESP Sdn. Bhd.

  Major Appointments (other than Directorships)

• Nil

  Past Principal Commitments including Directorships

  (held over the preceding five years)

• Kestronics (M) Sdn. Bhd.

• Kestronics Philippines, Inc.

• KES Systems & Service (Shanghai) Co., Ltd

• KEST Systems and Service Ltd. (In Voluntary Liquidation)

Relationship between Directors, Key Executives or Substantial Shareholder

Nil

First appointment as a Director: 12 January 1994 Appointment as Executive Director: 13 January 1994 Last re-appointment as a Director: 22 November 2024

Board Committee Membership

• Nominating Committee

  Interest in Shares in the Company

  2,130,000 (1.73%)

  Academic & Professional Qualification(s)

• Bachelor of Accountancy, National University of Singapore

• Fellow Member of the Institute of Singapore Chartered Accountants

  Background and Working Experience

  Mr Tan is responsible for the strategic direction and new business initiatives of some of the Sunright Group companies, contract negotiations, investor relations and oversees the financial management of the Group.

  Prior to joining the Company in 1987, he worked in an international accounting firm, a major property group in Singapore and subsequently in a diversified multinational group in the manufacturing and packaging industries.

  Present Principal Commitments including Directorships

  Directorships in Other Listed Companies

• KESM Industries Berhad

  Directorships in Non-Listed Companies

• KES Systems & Service (1993) Pte Ltd

• KES Systems & Service (M) Sdn. Bhd.

• KES Systems & Service Philippines Inc.

• KES International Sdn. Bhd.

• KES Systems, Inc.

• KESM Test (M) Sdn. Bhd.

• KESP Sdn. Bhd.

• KESM Industries (Tianjin) Co., Ltd

  Major Appointments (other than Directorships)

• Nil

  Past Principal Commitments including Directorships

  (held over the preceding five years)

• Kestronics (M) Sdn. Bhd.

• Kestronics Philippines, Inc.

• KES Systems & Service (Shanghai) Co., Ltd

• KEST Systems and Service Ltd. (In Voluntary Liquidation)

  Relationship between Directors, Key Executives or Substantial Shareholder

  Nil

  SUNRIGHT LIMITED ANNUAL REPORT 2025 07

  BOARD OF DIRECTORS
  
  
  

  DANIEL SOH CHUNG HIAN

  Lead Independent Director

  Age: 71

  SANDY FOO FEI YING

  Independent

  Non-Executive Director Age: 52

  First appointment as a Director: 3 December 2018 Appointment as a Lead Independent Director: 1 February 2021 Last re-appointment as a Director: 21 November 2022

  Board Committee Membership

  • Audit and Risk Committee (Chairman)

  • Nominating Committee (Chairman)

  • Remuneration Committee

    Interest in Shares in the Company

    Nil

    Academic & Professional Qualification(s)

  • Bachelor of Accountancy, then University of Singapore

  • Master of Business Administration,

    The International Management Centres of

    the United Kingdom

  • Fellow Member of the Institute of Singapore Chartered Accountants

    Background and Working Experience

    Mr Soh began his career in 1977 with Ernst & Young LLP, Singapore, and was a partner from 1990 till his retirement in December 2012. His 35 years of experience saw him auditing many public listed companies and working on many IPOs of listed companies.

    Present Principal Commitments including Directorships

    Directorships in Other Listed Companies

  • VICOM Ltd

  • Intraco Limited

    Directorships in Non-Listed Companies

  • Nil

    Major Appointments (other than Directorships)

  • Nil

    Past Principal Commitments including Directorships

    (held over the preceding five years)

  • Lum Chang Holdings Limited

  • British and Malayan Trustees Limited

  • Agency for Integrated Care Pte Ltd

  • British and Malayan Holdings Limited

Relationship between Directors, Key Executives or Substantial Shareholder

Nil

First appointment as a Director: 1 February 2021

Last re-appointment as a Director: 22 November 2024

Board Committee Membership

• Audit and Risk Committee

• Nominating Committee

• Remuneration Committee (Chairman)

  Interest in Shares in the Company

  Nil

  Academic & Professional Qualification(s)

• LLB (Hons), National University of Singapore

  Background and Working Experience

  Ms Foo has more than two decades of experience in legal practice, both in Singapore and in London. She is a Partner of and serves on the Executive Committee of Rajah & Tann LLP ("R&T"). She specialises in Mergers & Acquisitions as a member of R&T's Capital Markets, Mergers & Acquisitions practice and is also a member of their Sustainability practice.

  In addition, she has co-authored various publications, including the Singapore Chapter of the Mergers & Acquisitions (Global Legal Institute) 5th and 6th Editions; Singapore Chapter of the Corporate M&A 2020 Global Practice Guide (Chambers & Partners); and the Singapore Chapter of the Private Equity 2020 Global Practice Guide (Chambers & Partners).

  Present Principal Commitments including Directorships

  Directorships in Other Listed Companies

• Nil

  Directorships in Non-Listed Companies

• Nil

  Major Appointments (other than Directorships)

• Partner, Rajah & Tann LLP

• Member of the Law Society's Continuing Professional

  Development Committee

• Speaker for Singapore Institute of Directors' Listed

  Entity Director Programmes

• Honorary Secretary, Governing Council Dover Park Hospice

• Independent Member (MOE nomination) of Board for the Teaching and Testing of South Asian Languages

  Past Principal Commitments including Directorships

  (held over the preceding five years)

• Council Member of the Institute of Valuers and

Appraisers, Singapore

Relationship between Directors, Key Executives or Substantial Shareholder

Nil

08 SUNRIGHT LIMITED ANNUAL REPORT 2025

DR. BABAK ALIZADEH TAHERI

Independent

Non-Executive Director Age: 63

First appointment as a Director: 22 November 2024

Last re-appointment as a Director: N.A.

Board Committee Membership

• Audit and Risk Committee

• Nominating Committee

• Remuneration Committee

  Interest in Shares in the Company

  Nil

  Academic & Professional Qualification(s)

• Bachelor of Science in Engineering, San Francisco State University

• Master of Science in Electrical Engineering, San Jose State University

• Ph.D. in Biomedical Engineering, University of California, Davis

  Background and Working Experience

  Dr. Taheri has over 20 years of experience in the semiconductor industry. He is the founder of Integrated Biosensing Technologies, an advisory and consulting firm.

  Dr. Taheri is Chief Executive Officer and Director of Silvaco Group, Inc., a corporation listed on Nasdaq. He was previously the Chief Technology Officer and Executive Vice President of Products of Silvaco Inc.

  Prior to joining Silvaco, Dr. Taheri was also the acting Chief Technology Officer and advisor to CEO of Novasentis, Inc., and Vice President/General Manager of Sensor Division of Freescale Semiconductors.

  Dr. Taheri is Advisory Board Chair of the Electrical Engineering Department at the University of California, Davis and had served on the advisory board of MEMS World Summit.

  He was a member of the governing council on ESDA Alliance from 2019 to 2021 and also a director of Parisi House on The Hill, a residential alcohol and drug nonprofit, from June 2021 to May 2022.

  Present Principal Commitments including Directorships

  Directorships in Other Listed Companies

• Silvaco Group, Inc.

  Directorships in Non-Listed Companies

• Silvaco Japan Co., Ltd.

  Major Appointments (other than Directorships)

• Chief Executive Officer and President, Integrated

  Biosensing Technologies

• Advisory Board, Electrical Engineering Department at the University of California, Davis

  Past Principal Commitments including Directorships

  (held over the preceding five years)

• Parisi House on The Hill

• ESDA Alliance

Relationship between Directors, Key Executives or Substantial Shareholder

Nil

SUNRIGHT LIMITED ANNUAL REPORT 2025 09

CORPORATE INFORMATION

BOARD OF DIRECTORS

Mr Samuel Lim Syn Soo

(Executive Chairman & CEO)

Mr Kenneth Tan Teoh Khoon

(Executive Director)

Mr Daniel Soh Chung Hian

(Lead Independent Director)

Ms Sandy Foo Fei Ying

(Non-Executive, Independent Director)

Dr. Babak Alizadeh Taheri

(Non-Executive, Independent Director)

AUDIT AND RISK COMMITTEE

Mr Daniel Soh Chung Hian (Chairman)

Ms Sandy Foo Fei Ying Dr. Babak Alizadeh Taheri

NOMINATING COMMITTEE

Mr Daniel Soh Chung Hian (Chairman)

Ms Sandy Foo Fei Ying Dr. Babak Alizadeh Taheri Mr Samuel Lim Syn Soo

Mr Kenneth Tan Teoh Khoon

REMUNERATION COMMITTEE

Ms Sandy Foo Fei Ying (Chairman)

Mr Daniel Soh Chung Hian Dr. Babak Alizadeh Taheri

COMPANY SECRETARY

Ms Adeline Lim Kim Swan

SHARE REGISTRAR

Boardroom Corporate & Advisory Services Pte. Ltd.

1 Harbourfront Avenue #14-07 Keppel Bay Tower Singapore 098632

Tel : (65) 6536 5355

Fax: (65) 6536 1360

REGISTERED OFFICE

Blk 1093 Lower Delta Road #02-01/08

Singapore 169204

Tel : (65) 6272 5842

Fax: (65) 6276 8426

PLACE OF INCORPORATION

Singapore

COMPANY REGISTRATION NO.

197800523M

DATE OF INCORPORATION

9 March 1978

WEBSITE

https://www.sunright.com

STOCK EXCHANGE LISTING

Listed on 20 October 1994 on SGX Mainboard

STOCK NAME

Sunright

STOCK CODE

S71

AUDITORS

Ernst & Young LLP One Raffles Quay North Tower Level 18 Singapore 048583

AUDIT PARTNER

Ms Kiranpreet Kaur Shahi (Date of appointment:

with effect from financial year ended 31 July 2025)

10 SUNRIGHT LIMITED ANNUAL REPORT 2025

BOARD STATEMENT

[GRI 2-22]

The semiconductor industry continues to be reshaped by intensifying economic pressures, geopolitical fragmentation and rapid advances in artificial intelligence ("AI"). In particular, uncertainty from supply chain disruptions, evolving trade policies and the growing urgency of climate action have placed new pressures on businesses worldwide. In spite of these challenges, Sunright has remained committed to sustainability and has consistently advanced responsible practices that reinforce our dedication to environmental stewardship and long-term resilience.

The Board is responsible for assessing and supervising key sustainability matters. These matters undergo an annual review, facilitated by close collaboration between management and stakeholders. This ensures their adherence to and relevance for Sunright's strategic direction and priorities.

Following the Board's mandate, the management team is responsible for implementing sustainability policies and

practices to advance our sustainability efforts and positively impact the business and stakeholders.

ABOUT SUNRIGHT LIMITED

[GRI 2-1, 2-6]

Founded in 1978, Sunright Limited and its subsidiaries ("Sunright" or the "Group") are the world's largest independent burn-in and test service company and a leading manufacturer of parallel test and burn-in equipment. For several decades, Sunright has served many of the world's leading semiconductor manufacturers and electronics manufacturers, handling a broad range of semiconductor chips, including microcontrollers, microprocessors and memories.

Sunright was listed on the Singapore Exchange ("SGX") in 1994 and is headquartered in Singapore with manufacturing facilities in Singapore, Malaysia, Mainland China and the United States. The Group is well-supported by sales and service support centres in Singapore, Malaysia, Philippines, Mainland China and the United States.

ABOUT THE REPORT

[GRI 2-2, 2-3, 2-5]

This is Sunright's eighth annual Sustainability Report, for the period of 1 August 2024 to 31 July 2025 ("FY2025").

Where applicable, historical performance data are included for comparative purposes.

This report has been prepared with reference to the Global Reporting Initiative ("GRI") Standards 2021 as well as the SGX Listing rules 711A, 711B and Practice Note 7.6 Sustainability Reporting Guide. The GRI Standards have been considered most suitable for Sunright's sustainability reporting as the standards are recognised internationally and are the most widely adopted global standards for sustainability reporting.

This year, through a phased approach, Sunright is disclosing its third Task Force on Climate-related Financial Disclosures

("TCFD") Report to embrace the TCFD recommendations and better manage climate risks and opportunities.

The scope of this report covers significant operating units, including Singapore1, Malaysia2 and China3. These entities provide burn-in and testing services and manufacturing of burn-in equipment for semiconductors.

This report has further taken reference from the International Financial Reporting Standards ("IFRS") Sustainability Disclosure Standards shaped by the International Sustainability Standards Board ("ISSB"). In FY2025, we conducted a gap analysis assessment to identify the areas for alignment for reporting against IFRS S1 and S2 climate-related disclosures. Moving forward, this will allow us to strive towards compliance with the ISSB Standards in future reporting years, in line with regulatory requirements.

External assurance has not been sought for this report. Sunright will consider seeking external assurance for its sustainability report as its sustainability reporting process matures over time. We have completed an internal audit review of the sustainability reporting process for the current reporting period. This added step represents our commitment to transparency and enhancement in reporting. We welcome feedback that would help improve our sustainability efforts. Please direct any feedback to sustainability@sunright.com.

1 Sunright Limited and KES Systems & Service (1993) Pte Ltd

2 KESM Industries Berhad, KESP Sdn. Bhd. and KESM Test (M) Sdn. Bhd.

3 KESM Industries (Tianjin) Co., Ltd

OUR SUSTAINABILITY COMMITMENT AND GOVERNANCE

[GRI 2-12, 2-13, 2-14, 2-16, 2-17]

Sunright is firmly committed to sustainability, a commitment that guides our business. This dedication to sustainability is integrated throughout all levels of the Group, influencing both our business conduct and our responses to the evolving risks and opportunities in the semiconductor industry.

Our established sustainability governance structure helps facilitate the management and oversight of this agenda. The Board and Executive Directors of Sunright are responsible for reviewing and approving Sunright's direction for sustainability programmes and ensuring that sustainability is embedded into the strategic direction of the Group and its operations. To achieve this, the Board continuously maintains an effective governance framework for sustainability within the Group.

The Board has formed a sustainability committee, comprising the Corporate Controller and Chief Operating Officer, to drive and implement the sustainability policies and practices, champion sustainability KPIs, monitor sustainability-related performance and eventually provide annual update to the Board for review and appraisal.

To ensure effective integration of sustainability principles across the Group, the Board is committed to reviewing and assessing material information, enhancing its knowledge and ability to provide quality and professional reviews, and ensuring that sustainability risks and opportunities are incorporated into Sunright's strategic directions. Likewise, senior management is guided by sustainability KPIs benchmarked against industry practices, considering economic, environmental, social and governance-related risks and opportunities, where applicable. In addition, climate-related risks and opportunities along with relevant sustainability metrics such as Scope 1 and 2 emissions are supported by the relevant departments and reported to the Board annually. Further, these departments receive in-house training as needed whenever new sustainability metrics are introduced.

Sunright recognises that it is of utmost importance for board members to have sufficient understanding and knowledge of sustainability issues to effectively discharge the above duties and carry out their role of sustainability governance. Directors attend sustainability-related trainings to equip themselves with knowledge on enhanced sustainability reporting requirements and sustainability matters such as corporate sustainability, climate risks and human rights. These ongoing trainings help widen their sustainability knowledge and keep them abreast with the latest regulatory development and any emerging topics.

STAKEHOLDER ENGAGEMENT

[GRI 2-29]

Sunright's key stakeholders are identified as those having significant impact on as well as those significantly impacted by our operations. At Sunright, we are committed to addressing the needs and concerns of all our stakeholders. Through day-to-day interactions and regular engagement sessions via various platforms, we gain better understanding of their concerns and expectations to inform our sustainability practices and facilitate continuous improvement.

Table 1: Sunright's approach towards stakeholder engagement

• Provide regular and timely updates about Sunright's

performance to enable key shareholders

to make informed investment decisions

• Sunright's financial health and industry reputation

• Sustainability performance

  • Press releases

  • Announcements

  • Annual report

  • Annual general meeting

  • Periodic

  • Half yearly

  • Annual

  • Annual

    Purpose of engagement	Key areas of concern	Engagement platforms	Frequency of management
    CUSTOMERS

    
    
    

    • Maintain international certifications and standards to ensure the quality, safety and efficiency of products, services and systems (e.g. ISO 9001:2015

      certification, ISO

      14001:2015

      certification, IATF

      16949:2016

      certification) ISO

      27001: 2022

      certification)

• Service and product quality

• Timely delivery

  • Industry events

  • Customer satisfaction surveys and scorecards

  • Customer visits to our plants

• Frequent

• Periodic

• As necessary

  EMPLOYEES AND OUTSOURCED WORKERS

  • Implement non-discriminatory Human Resources ("HR") policies

  • Provide deserving remuneration, welfare and benefits

  • Provide relevant trainings (safety and job specific)

• Fair employment and well-being

• Occupational health and safety

• Training and development

• Electronic updates and newsletters

• Annual performance appraisals

• Company events and staff bonding sessions

• Trainings

• Periodic

• Annual

• Periodic

• Periodic

  CONTRACTORS AND SUPPLIERS

  • Conduct fair suppliers' screening process

  • Conduct regular suppliers' evaluation process

• Business opportunities

• Feedback on performance

  • Project tenders

  • Suppliers' evaluation meetings

• As necessary

• Periodic

  REGULATORS

  • Keeping abreast with the latest regulatory requirements

• Compliance to regulatory requirements

  • Statutory reporting

  • On-site inspections

• Periodic

• As necessary

  Purpose of engagement	Key areas of concern	Engagement platforms	Frequency of management
  LOCAL COMMUNITY

  
  
  

  • Participate in Corporate Social Responsibility ("CSR") activities

  • Provide employment opportunities through our business

• CSR initiatives

• Employment opportunities

  • CSR programmes

  • Teaming with local technical institutions for job training and internship opportunities

  • Periodic

  • Annual

    MATERIALITY ASSESSMENT

    [GRI 3-1, 3-2]

    On an annual basis, Sunright reviews the material matters to ensure their continued relevance amidst global and industry's environmental, social and governance ("ESG") trends. In FY2025, the Board has determined that all material matters continue to be relevant to the business. Sunright also remains conscious of potential sustainability matters that may be of investor concern due to their significant environmental and social impacts. For matters currently not deemed material to Sunright, we have existing management systems and internal controls that enable us to carry out our ongoing commitment to enhancing our ESG impacts and reducing environmental footprint where practicable.

    Figure 1: Sunright's Materiality Assessment Process

    1	Identification A preliminary list of potential sustainability matters was identified through a review of Sunright's business strategy, market landscape, regulatory requirements and leading sustainability practices.
    2	Prioritisation Through an unbiased and anonymous voting exercise, these sustainability matters were prioritised based on the significance of the impact of each issue, considering both the perspectives of internal and external stakeholders.
    3	Validation The results of the exercise were mapped into a materiality matrix, which was approved by the Board.
    4	Assessment/Review In FY2025, a review of the material matters was conducted. It was concluded that the existing six identified material matters remained relevant for reporting. Sunright will continue to conduct annual reviews of its material matters to ensure that the company continues to consider critical sustainability matters relevant to its business across the years.

    Material

    1

    5

    Not Material

    2

    3

    6 4

    Importance to Sunright's business

    
    
    

    Significance and influence on

    external stakeholders

    Figure 2: KESMI's Sustainability Matters and Corresponding GRI Topics

    Material Matters		Description Protecting the physical and mental well-being of all employees and workers	Corresponding GRI GRI 403: Occupational Health and Safety
    1	Occupational health and safety
    2	Regulatory compliance	Compliance with all regulatory requirements, including environmental, labour, health and safety regulations	GRI 2-27: Compliance with Laws and Regulations
    3	Corporate governance and business ethics	Adherence to responsible business practices in terms of anti-corruption and corporate governance	GRI 205: Anti-corruption
    4	Economic performance	Sustaining economic growth through responsible supply chain management and contribution of economic value	GRI 201: Economic Performance GRI 204: Procurement Practices
    5	Energy and carbon footprint	Efficient use of energy to minimise carbon footprint from our operations	GRI 302: Energy GRI 305: Emissions
    6	Fair employment practices	Equal opportunities and treatment for all employees and workers	GRI 401: Employment GRI 404: Training and Education GRI 405: Diversity and Equal Opportunity GRI 406: Non-discrimination

    FOSTERING A SAFETY CULTURE

    [GRI 3-3, 403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7, 403-9, 403-10]

    Establishing effective management of occupational health and safety plays a pivotal role in promoting a safe and healthy working environment enhancing employee morale and job satisfaction. A safer workplace also decreases the danger of work-related accidents, lessen the likelihood of employee absenteeism and reduce staff turnover, resulting in a more stable and skilled staff, which can support the growth of the company. On the other hand, insufficient safety precautions could harm employees' health and well-being, raise the possibility of workplace accidents, and severely harm Sunright's reputation, affecting our ability to attract talent and do business.

    Sunright has in place a Health and Safety Policy which outlines our objectives and approach towards ensuring the health and well-being of our staff4 in the workplace. This policy includes the procedures, guidelines and best practices that all employees and workers must adhere to mitigate workplace health and safety risks in the workplace. Our Occupational Health and Safety Management System ("OHSMS"), which the Group, including its subsidiaries, are required to comply with, is developed with reference to local safety regulations and covers all our employees and workers in our operating locations. This system ensures that employees and workers are provided with necessary health and safety protections aligned with industry standards.

    Hazard Identification and Risk Assessment

    Identifying and minimising hazards is a key component of our Health and Safety approach. Hazard identification is carried out through monthly safety walks, and any hazards identified, along with any proposed mitigation measures, are then evaluated during the monthly safety meeting. Our safety policies and guidelines contain a list of identified hazards, as well as steps and procedures for our staff, that minimise the risks posed to our staff when adhered to. Some of the hazards identified include:

  • Cuts from handling sharp blade edges

  • Slips, trips and falls

  • Fire risks

  • Vehicles

  • Slippery floors

    Our safety personnel are regularly trained and updated with the latest safety practices to ensure that risks are appropriately identified and controlled. Operators are briefed by the Head Supervisor before every work shift to stress the importance of adhering to safety protocols. This contributes to the overall effectiveness of the OHSMS, which is essential in safeguarding the health of our staff.

    4 Covering employees and workers.

    Figure 3 elaborates on the systematic process established to identify and eliminate hazards, towards continued improvement of the OHSMS.

    Figure 3: Process of Hazard Identification, Risk Assessment and Improvement of OHSMS

    4

• Review programmes regularly

• Allocation of resources to the appropriate personnel to perform remedial action and risk control

• Regular safety meetings to review and propose improvements to Standard Operating Procedure

Elimination of Hazards and Minimisation of Risk

• Use of Hierarchy of Controls consisting of Personal Protective Equipment ("PPE"), source control, safety system and an audit by the Safety,

and Safety ("OHS") activities

e.g. Safety Officer to

be registered with Department of Safety and Health ("DOSH"), OHS officer to undergo mandatory training and assessments in OHS management and legislation

2

• Use of Hazard Identification, Risk Assessment & Risk Control ("HIRARC")

1

+

Hazard Identification and

Risk Assessment

• Regular safety walks/meetings

• Inspection of equipment, tools and materials

• Plant-wide safety audit

• Feedback to management on

effectiveness of plans

Incident Investigation

As part of our approach to Health and Safety, Sunright has implemented a systematic process that enables quick identification and remediation of hazardous situations that occur. Any operator who discovers a work hazard or believes that they have been placed in an unsafe working environment must voice their concerns to their supervisor immediately.

All supervisors are then expected to assess the situation and rectify potential safety issues before allowing their operators to resume work. After addressing the hazard, the Safety, Health and Environment ("SHE") committee will launch an investigation and generate a report of the incident. The relevant stakeholders will take follow-up actions.

Sunright's Code of Conduct protects any staff who report hazards from receiving backlash in any form. This encourages constant mindfulness around safety and safeguards the collective health and safety of our staff.

Occupational Health Services and Promotion of Worker Health

Our operations involve providing burn-in and test services for semiconductors, and we have identified several related potential occupational health hazards present in our operating sites. In addition to the physical health check-up that every new employee must undergo, we provide specific occupational health services for each employee role and the hazards they are exposed to. We provide annual medical check-ups for employees and workers handling chemicals, as well as annual audiometric check-ups for those working at high noise areas.

First aid treatment is provided for the affected personnel for any minor injuries that occur, and transportation to the nearest hospital is immediately arranged for more severe injuries. As part of Sunright's OHSMS, we engage only certified service providers who are required to comply with all international and national OHS standards and regulations. Bearing in mind that we operate in multiple jurisdictions, we have made the OHS readily available in several languages. We also engage our staff through surveys and rating systems that help us to evaluate the effectiveness of OHSMS, which allows us to constantly improve the quality.

For the continued well-being of our staff, we provide services such as annual health screenings and consultations at company-approved clinics. In addition, we collaborate with external providers to organise voluntary blood tests and indoor/outdoor activities for our staff to participate during working hours. We collect feedback from our staff at the end of each activity so that we can gauge its success and find ways to improve our programmes for the following year.

Worker Participation and Training

The effectiveness of our OHS policies and programmes is enhanced by the active involvement of our staff. Our employees are provided with OHS training such as training for management staff, first aid and CPR training for designated workers, as well as safety training for all operations staff annually. For operators exposed to specific hazards (e.g. chemicals), they are given the appropriate hazard-specific training.

Figure 4: Forklift safety training

Table 2: Breakdown of employees trained on health and safety standards

A formal joint management-worker SHE committee has also been established to engage our workers in OHS consultation and communication process. The committee is involved in the development and regular review of the safety and health programmes, as well as in promoting safety awareness throughout the organisation.

Figure 5: Worker Participation, Consultation and Communication on OHS

Sunright has taken proactive steps, guided by government-mandated advisories, to protect the health and well-being of our stakeholders and employees, implementing relevant measures to ensure a safe workplace for all.

In FY2025, Sunright recorded zero fatalities and zero recordable injuries for both employees and workers.

For each incident, we conduct a root cause analysis investigation and with the finding, develop the necessary corrective

actions and revise our preventative measures.

Table 3: Breakdown of work-related injuries for all employees and workers

Table 4: Breakdown of work-related ill-health for all employees and workers

ENSURING STRICT COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

[GRI 3-3, 2-27]

Compliance with all relevant laws and regulations is of utmost priority to Sunright. This includes the myriad environmental and socioeconomic laws and regulations of all the countries in which we operate. Compliance is crucial to the long-term success of Sunright's business because it demonstrates the reliability of our operations and fosters confidence among our stakeholders, particularly investors and customers, in our goods and services and the sector in which we operate, enhancing the company's chances for economic growth and expansion. Additionally, the environment and nearby communities can benefit from reduced resource use and waste as a result of adherence to environmental regulations.

Nonetheless, the failure to comply with the respective ESG regulations could also lead to negative consequences, including legal and financial penalties, environmental harm to ecosystems and potential worker exploitation compromising human rights and ethical principles.

To maintain high standards of compliance, our policies are regularly reviewed and updated in response to changes in regulatory requirements. In addition, all employees are required to uphold the behavioural standards outlined in the Code, reinforcing our commitment to ethical and lawful conduct across the organisation.

5 Confirmed cases refer to reported cases that have material impact to the operations of Sunright.

UPHOLD CORPORATE GOVERNANCE AND BUILDING AN ETHICAL CULTURE

[GRI 3-3, 2-23, 2-24, 205-1, 205-2, 205-3]

Prioritising ethical conduct and strong corporate governance practices not only establishes long-term partnerships and confidence among stakeholders such as investors, customers and employees, but also contributes to environmental protection and social development.

Conversely, inadequate corporate governance and ethical failures can result in reputational harm, legal ramifications and harmful effects on the environment and society. Pursuing ethical excellence is critical for Sunright to be a responsible corporate citizen and positively contribute to the larger global community.

Sunright understands that the long-term success and growth is directly tied to the integrity and the ethical foundations of its business practices. We strive to cultivate ethical business practices throughout our operations and our value chain. Sunright implements a zero-tolerance policy with regard to fraud, bribery and corruption.

Our Code of Conduct (the "Code") contains the business policies that govern our approach to ethics, outlined within it are our values, principles and expectations. The Code takes reference from the Responsible Business Alliance ("RBA") Code of Conduct and has been approved by the Board. It also undergoes regular review by the management to ensure that the policies within remain relevant and aligned with our ethical principles. Further information on our governance approach with regard to the ethics, values and desired organisational culture of the company can be found in our Corporate Governance Report.

The above expectations and related policies are communicated to our employees through emails, letters and annual training sessions. Additionally, in our operations across Singapore, Malaysia and China, employees are required to undergo training on Sunright's principles, values and policies as part of the orientation process.

In FY2025, a total of 695 (92%) employees received training on anti-corruption policies across Singapore, Malaysia

and China. Separately, all employees will receive communication on anti-corruption policies upon joining the company.

Similarly, Sunright ensures that its business partners are adequately informed of Sunright's business practices, including our longstanding policy against commissions, gifts and entertainment of favour in return for business deals. Our suppliers are also made aware of Sunright's Supplier Code of Conduct, which necessitates their compliance with our policies regarding forced labour, child labour and the upholding of human rights. More information on the Supplier Code of Conduct can be found on page 26.

Table 5: Sunright's policies relating to Business Ethics and Anti-corruption

Whistle Blower Policy Sunright's Whistle Blower Policy applies to all directors and employees as well as third parties such as suppliers, contractors, sub-contractors and agents. The policy, alongside internal controls, operating procedures and governance policies intended to detect and prevent or deter improper conduct, is intended to encourage employees to report any potential improprieties (e.g. wrongdoing or misconduct) as well as protect their identity.

The specific objectives of the policy are as follows:

• To encourage employees to confidently raise genuine concerns about possible

  improprieties

• Provide ways for employees to raise concerns and receive feedback on any actions taken as a result

• Reassure employees that if they raise any concerns in good faith and reasonably believe them to be true, they will be protected from possible reprisals or victimisation

Grievance Handling Policy The Grievance Handling Policy and the accompanying grievance mechanism procedure were formulated to strengthen industrial efficiency and stability in performance. They ensure that grievances are handled at the lowest corporate level possible. Grievances can include any violations or threats on fair and humane treatment, such as prohibition of sexual harassment, abuse (mental, physical or verbal), coercion, corporal punishment etc.

Business Ethics Policy Sunright's Business Ethics Policy ensures our integrity and reliability as an organisation. To minimise any possible conflicts of interest or coercive elements from external sources, our employees are prohibited from associating with illegal cartel activities, illicit price-fixing, deception and undesirable social behaviour as well as from dealing with customers or vendors that offer rebates, commissions and other forms of illegal remuneration.

Employees are required to fully disclose any circumstances likely to give rise to conflicts of interest, and are disallowed from giving or accepting any gifts, which might improperly influence the normal business relationship with any supplier or customer. All company business dealings are based on a 'fair deal' basis. All employees shall impress upon business partners on the high business ethics and refrain from providing or accepting bribes and kickbacks.

Purchasing Policy The Purchasing Policy sets clear guidelines on maintaining ethical relations with vendors and suppliers while acting with integrity throughout all procedures related to the purchasing activities of the company.

Table 6: Number of active employees and business partners who received communication and training on anti-corruption policies by employee category and region

6 Business partners include customers, suppliers and contractors.

7 Key business partners include the ten most significant customers, suppliers and contractors in each respective Sunright entities in

Singapore, Malaysia and China.

8 This is a new disclosure effective from FY2024. Hence, the Group is unable to obtain past year data due to data collection constraints

from certain operations.

All directors representing the governance body of Sunright have received communications on the organisation's anti-corruption policies and attend ad-hoc trainings as and when deemed necessary.

Our operations in Singapore, Malaysia and China have been assessed for risks related to corruption. During the year, there were no cases of corruption brought against Sunright or its employees, a record we have consistently maintained to date and will continue to uphold.

DATA PRIVACY AND SECURITY

[GRI 418-1]

In an era where technology is continually evolving and enhancing our workplace dynamics, fostering efficient and effective collaboration, it is paramount that we, at Sunright, steadfastly tackle the escalating threats and potential risks posed by cyberattacks. Sunright is committed to protect the private information and personal data of our customers, suppliers and employees.

Our cybersecurity measures are carefully designed to ensure legal and appropriate sharing of information. We treat

all data with extreme care, ensuring its confidentiality and upholding its integrity at all times.

The following outlines the key controls for safeguarding data privacy:

• Protect our technology resources and assets with encryption, firewalls and antivirus software.

• Sign non-disclosure agreements between Sunright and its contractors, suppliers and customers.

• Regularly communicate to all employees to reinforce their understanding and foster consistent compliance with Personal Data Protection Act in Singapore and Malaysia as well as the Personal Information Protection Law in China.

With regard to customer privacy and data protection, there were no substantiated complaints or fines received from outside parties or regulatory bodies in FY2025. Likewise, there were no record of instances concerning data breaches or complaints received from external stakeholders.

SUSTAINING ECONOMIC PERFORMANCE

[GRI 3-3]

Ensuring a strong economic performance can positively impact the wider economy through the creation of job opportunities, stimulating industry growth, improving livelihoods of local communities and contributes to overall economic development. It can also lead to increased investments in research and development, fostering technological advancements and innovations in the sector. At the same time, it is important to also strive for responsible economic growth as too much emphasis on the financial performance may jeopardise employee rights or safety, potentially resulting in human rights violations, or prioritising economic advantages over environmental considerations may result in environmental harm if not committed to sustainable practices.

Contributing Direct Economic Value

[GRI 201-1]

In FY2025, Sunright generated approximately $73 million in total revenue, reflecting a decrease of $9 million or 11%, from $82 million in the previous financial year. The net economic value generation of $1.6 million was mainly due to reduced demand in both computing and automotive market segments for our products and services. In response to the softer market conditions, Sunright undertook a realignment of its cost structures to improve efficiency and manage operational cost. The knock-on effects of tariff hikes have disrupted the global supply chain and impacted our customers' geographical production strategies.

In the face of ongoing challenges, we remain confident in supporting customers, particularly in meeting the growing demand in data centres, AI-driven devices and advanced automotive electronics. Sunright is dedicated to strengthening business resilience and maintain a strong market position.

Table 7: Economic Value Generated, Distributed and Retained from FY2023 to FY20259

Economic Value Generated (SGD'million)

Economic Value Distributed (SGD'million)

Economic Value Retained (SGD'million)

For further details on our economic performance and business review, please refer to the following sections in our Annual Report: Financial Statement and Chairman's Statement.

Managing Supply Chains Responsibly

[GRI 2-6, 204-1]

Governing the screening, selection and management of our suppliers are Sunright's Purchasing Policy and Procedures. As part of these guidelines, our robust Three-Step Supply Chain Management Process further outlines the steps we take for sourcing and selection of new items, delivery follow-up, receiving, inspection of goods and payments to vendors.

Figure 6: Purchasing Policy and Procedures

9 FY2023 to FY2025 figures include all companies within the Sunright Group.

10 Operating costs include cash payments made outside the organisation for material cost, purchase of property, plant and equipment and other expenses.

Figure 7: Sunright's Supply Chain Management Process

One of the primary ways for Sunright to improve risk management and operating efficiency is the local sourcing of products and services. Consequently, local sourcing has become a cornerstone of Sunright's sustainability strategy, an approach which also supports local businesses and jobs while meeting our environmental and social objectives by minimising our carbon footprint.

Sunright has consistently ensured that at least 50% of its purchases are sourced locally as part of our efforts to support local suppliers and contractors. In FY2025, 81% of our procurement spending was used to purchase supplies locally in Singapore, Malaysia and China, where we operate.

11 Local purchases refer to purchases made (except for production machineries) from locally registered companies, which supply

trade and non-trade goods and services.

DEVELOP AN ENGAGED WORKFORCE AND FAIR WORKPLACE

Sunright's Board Profile

[GRI 405-1]

Sunright understands that diversity within an organisation is a strength, as employees of different backgrounds are able to bring new perspectives and viewpoints to a company. We also recognise that diversity has to be implemented at all levels, including at the highest level of governance: the Board and Senior Management.

Figure 8: Sunright's Board Composition

Female

20%

By Gender

Male

80%

Female

20%

By Gender

Male

80%

Female

20%

By Gender

Male

80%

30 to 50 years old 20%

By Age Group

>50 years old

80%

By Age Group

>50 years old

100%

By Age Group

>50 years old

100%

Figure 9: Sunright's Senior Management Composition

Female

34%

By Gender

Male

66%

Female

34%

By Gender

Male

66%

Female

33%

By Gender

Male

67%

30 to 50 years old 51%

By Age Group

>50

years old 49%

30 to 50 years old 51%

By Age Group

>50

years old 49%

30 to 50 years old 46%

By Age Group

>50

years old 54%

For more information on board diversity and composition, please refer to our Corporate Governance Report.

Sunright's Employee and Worker Profile

[GRI 2-7, 2-8, 401-1]

In FY2025, Sunright's workforce comprised 758 employees and 879 workers across Singapore, Malaysia and China, reflecting a 18% and 26% decrease from FY2024 respectively to align to operation requirements and optimise workforce allocation across departments.

Sunright remains committed to developing our staff to their fullest potential, and we employ 100% of our staff under a permanent contract, mostly full-time. Having a diverse and inclusive workforce remains significant to Sunright's long-term prosperity, and we practise a meritocratic hiring policy, ensuring a well-balanced ratio of male and female staff.

The following charts show our employee demographics by gender and region and our worker demographics by employment category supporting Sunright's business activities.