Latest Quarterly Results

Condensed Consolidated Statements Of Profit Or Loss And Other Comprehensive Income
For The Quarter Ended 30 June 2025 - unaudited

The above condensed consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the audited financial statements for the year ended 31 December 2024 and the accompanying explanatory notes attached to these interim financial statements

Condensed Consolidated Statements Of Financial Position
As At 30 June 2025 - unaudited

*Net assets per share is calculated based on total share capital in issue less treasury shares of 6,105,700.

The above condensed consolidated statement of financial position should be read in conjunction with the audited financial statements for the year ended 31 December 2024 and the accompanying explanatory notes attached to these interim financial statements.

Operating Segments Review

Statement of Financial Position

The Group's financial standing remained robust with shareholders' fund of RM1.5 billion and a net cash position of RM302.1 million as at 30 June 2025 (i.e. cash and cash equivalents plus other investments (current assets) and less bank borrowings). The Group's current ratio (i.e. Current Ratio = Current Assets/Current Liabilities) improved from 2.52 times to 2.57 times. This improvement was primarily driven by faster inventory turnover and a reduction in trade and other payables, which declined by RM20 million or 5.0% in Q2 2025 compared to 31 December 2024.

The Group's net assets per share decreased from RM7.36 as at 31 December 2024 to RM7.22 as at 30 June 2025. The decline was mainly attributable to dividend payments totalling RM35.2 million to shareholders and RM10.0 million to non-controlling interests in the previous quarter. Additionally, the strengthening of the Malaysian Ringgit led to unfavourable foreign currency translation effects on the Group's foreign subsidiaries, associates, and joint ventures, further contributing to the reduction in net assets per share.

Statement of Cash Flow and Capital Expenditure

For the current quarter ended 30 June 2025, the Group recorded a net decrease in cash and cash equivalents of RM13.0 million from RM528.4 million as of 31 December 2024 to RM515.4 million as of 30 June 2025. The negative cash flow movement was attributed to the following factors:-

1. Net cash generated from operating activities of RM59.5 million that was mainly driven by pre-tax profit of RM59.6 million and lower inventory holding resulting in positive changes of RM42.2 million, offset by higher deposits and prepayments balance which resulted in negative changes of RM38.3 million and settlement of trade and other payables resulting in negative changes of RM16.9 million;
2. Net cash used in investing activities of RM19.4 million mainly for the purchase of tooling, machineries and equipment amounting to RM12.9 million and investments in unit trusts amounting to RM5.0 million; and
3. Net cash used in financing activities of RM51.1 million mainly due to the payment of dividend to owners of the Company totalling RM35.2 million, payment of dividend to non-controlling interests totalling RM10.0 million, net repayment of loans and borrowings amounting to RM7.0 million.

As of 30 June 2025, the Group's capital commitment stood at RM42.6 million comprising primarily the Group's investment in tooling, machineries/equipment and development costs for the supply of parts for new vehicle models and the construction of a new production facility. The capital commitment is funded internally and through bank borrowings.

The Group recognizes that the retention of sufficient cash reserves is essential in the pursuit of growth and expansion. Thus, the Group's liquidity remains intact as the balance of Islamic Medium-Term Notes of up to RM1.30 billion in nominal value, as of the date of this report, can be utilised for future capital investment, if and when required.

Analysis of Performance of All Operating Segments

Q2'2025 vs Q2'2024

For the current quarter ended 30 June 2025, the Group recorded revenue of RM492.6 million, an increase of 8.6% compared with revenue of RM453.6 million in the corresponding quarter ended 30 June 2024. The higher revenue in Q2'2025 was driven by the commencement of supply for certain new models launched in Malaysia since Q2'2024.

In line with higher revenue, the Group's profit before tax ("PBT") improved from RM25.0 million in the corresponding quarter ended 30 June 2024 to RM25.6 million in the current quarter ended 30 June 2025. The PBT for current quarter was partially offset by unrealised foreign exchange losses which arose from trade receivables denominated in foreign currencies, following the strengthening of Malaysian Ringgit as explained above.

Suspension Division

For the current quarter ended 30 June 2025, the Suspension Division recorded a 16.7% decrease in revenue (Q2'2025: RM50.0 million; Q2'2024: RM60.0 million mainly due to weaker domestic and export sales. In line with the lower revenue and unfavourable sales mix, the Suspension division registered a LBT of RM0.2 million compared to PBT of RM2.1 million in the corresponding quarter of last year.

For the six months ended 30 June 2025, the Suspension Division recorded lower revenue of RM98.9 million (-16.5% compared to the same period last year (‘YoY")) mainly due to the same factors mentioned above. In line with the lower revenue and unfavourable sales mix, the Suspension Division registered a LBT of RM1.3 million compared to PBT of RM3.8 million in the same period last year.

Interior & Plastics Division

For the current quarter ended 30 June 2025, the Interior & Plastics Division recorded a 14.9% increase in revenue to RM395.8 million (Q2'2024: RM344.4 million) mainly driven by full-period contributions following the commencement of supply for certain new OEM models since Q2'2024. Despite the higher revenue, PBT declined by 1.7% to RM31.9 million (Q2'2024: RM32.4 million) primarily due to unfavourable sales mix and margin compression arising from intense market competition.

For the six months ended 30 June 2025, the Interior & Plastics Division recorded higher revenue of RM789.5 million (+9.1%), against RM723.7 million recorded in the same period last year. However, PBT decreased by 2.2% to RM65.6 million (YTD 2024: RM67.1 million), due to the same reasons explained in the paragraph above. The higher PBT in same period last year was boosted by the recovery of development expenditures for certain OEM model.

Electrical & Heat Exchange Division

For the current quarter ended 30 June 2025, the Electrical & Heat Exchange Division registered a 17.6% decrease in revenue (Q2'2025: RM29.1 million; Q2'2024: RM35.3 million) mainly due to lower call-ins from certain OEM customers. Despite the lower revenue, the Division's LBT narrowed to RM0.6 million (Q2'2024: RM0.9 million) mainly due to upward price adjustments and claims received from a customer.

For the six months ended 30 June 2025, the Division recorded lower revenue of RM62.6 million (-13.8% YoY) due to same reason explained above. Despite recording lower revenue, the Division posted a PBT of RM0.1 million compared to a LBT of RM0.5 million in the corresponding period last year. The improvement was mainly attributable to upward price adjustments and claims received in 2025, as well as a higher provision for slow moving inventories made in 2024.

Marketing Division

For the current quarter ended 30 June 2025, the Marketing Division recorded a 6.4% decrease in revenue (Q2'2025: RM65.9 million; Q2'2024: RM70.4 million) mainly due to softer demand from international OEM customers and weaker sales in the European region. Correspondingly, the Division posted a LBT of RM0.8 million compared to PBT of RM0.9 million in Q2'2024 mainly due to foreign exchange losses resulting from trade receivables denominated in foreign currencies, compared to foreign exchange gains in the same period last year.

For the six months ended 30 June 2025, the Marketing Division registered a lower revenue of RM133.9 million (-3.7% YoY) due to the same reasons explained in the paragraph above. In line with the lower revenue and margin compression from a competitive market environment, PBT fell to RM0.5 million compared to PBT of RM2.7 million in the same period last year. As mentioned above, the strengthening of the Malaysian Ringgit resulted in foreign exchange losses on trade receivables denominated in foreign currencies, compared to foreign exchange gains in the same period last year.

Non-Reportable Segment, Malaysia

This segment comprises mainly operations relating to revenue received from sources that include the rental of properties in Malaysia, provision of management services, and engineering and research services for companies within the Group. Revenue generated from these services and sources form part of the inter-segment elimination for the total Group's results (as depicted in Note A9). This segment also comprises the Group's investment and participation in associate.

For the current quarter ended 30 June 2025, this segment's revenue increased by 9.0% to RM13.2 million from RM12.1 million in Q2'2024, mainly due to higher inter-group billing for services. In line with the higher revenue, interest income and unrealised fair value gains from other investments, this segment recorded a lower LBT of RM2.7 million compared to LBT RM5.0 million in the corresponding quarter last year. The higher LBT in Q2'2024 was partly attributable to an impairment charge on certain research and development expenditures.

For the six months ended 30 June 2025, this segment's revenue increased by 8.8% to RM26.4 million from RM24.3 million in YTD 2024, mainly driven by higher inter-group billings. LBT reduced to RM3.7 million from LBT of RM7.1 million in YTD 2024, due to the same reasons explained above.

Indonesia Operations

Indonesia Operations refer to the manufacturing and supply of suspension products such as coil springs, shock absorbers and leaf springs as well as the Group's investment and participation in joint ventures and associates in Indonesia.

For the current quarter ended 30 June 2025, the Indonesia Operations recorded revenue of RM18.7 million, down 9.2% from RM20.6 million in the corresponding quarter last year. The reduction in revenue was primarily due to lower demand from OEM and REM segments. In line with the lower revenue, the Indonesia Operations LBT widened to RM1.0 million compared to a smaller loss in the same quarter last year.

For the six months ended 30 June 2025, Indonesia Operations recorded lower revenue of RM41.7 million (-1.9% YoY), driven by the same factors explained above, partially offset by the commencement of supply to a new OEM customer. Despite the lower revenue, PBT for Indonesia improved to RM0.9 million compared to PBT of RM0.1 million in the same period last year. The improvement can be attributable to favourable sales mix and the write-back of provisions for slow-moving inventories.

All Other Segments

This business segment refers to the Group's operations in Thailand, Vietnam, Australia, the United States of America ("USA"), the Netherlands and Myanmar ("Operations Outside Malaysia").

For the current quarter ended 30 June 2025, Operations Outside of Malaysia recorded revenue of RM38.4 million, a decrease of 4.8% from the RM40.3 million recorded in the same period last year. The decline was primarily attributable to the end of production for an OEM model in Vietnam operations. Despite the lower revenue, this segment reported a lower LBT of RM1.1 million compared to LBT of RM3.9 million in the corresponding quarter last year, mainly due to improved market conditions for bus and train seats in the Australia operations. The higher LBT in Q2'2024 had also been adversely impacted by provisions made for slow moving inventories in certain operations.

For the six months ended 30 June 2025, this segment recorded a decrease in revenue to RM78.0 million (-2.1% YoY), while LBT improved to RM2.3 million compared to LBT of RM6.3 million in the corresponding period last year due to the same reasons explained in the paragraph above.

Commentary On Prospects and Targets, Strategies and Risk

APM is principally involved in the design, manufacturing, assembly and production of automotive and mobility components. The Group's main operations are located in Malaysia, but it is also present in various other jurisdictions, including the United States of America (U.S.), the Netherlands, Australia, Thailand, Vietnam, the Republic of Indonesia and the United Kingdom.

Following a record year for Malaysia's automotive industry in 2024, both in terms of sales and production - the Total Industry Volume (TIV) and Total Industry Production (TIP) declined in the first half of 2025, as anticipated. TIV for YTD 2025 decreased by 5% to 373,636 units from 391,451 units in YTD 2024, while TIP dropped by 10% to 352,626 units from 392,264 units in YTD 2024. The Malaysian Automotive Association ("MAA") maintains its TIV forecast for 2025 at 780,000 units, supported by a resilient domestic economy and lower Overnight Policy Rate (OPR). Looking ahead, the Group expects both TIV and TIP to remain below 2024 levels for the remainder of 2025, due to shrinking order backlogs and the rising share of electric vehicle sales, which are largely imported as Completely Built-Up (CBU) units. Nevertheless, the Group's supply to new OEM models will partially mitigate the impact of the declining TIV and TIP.

Ongoing uncertainties surrounding tariffs and trade-related challenges may weigh on the export segment. Additionally, the risk of currency fluctuation (i.e. Ringgit strengthening) could impact the competitiveness and profitability of the Group's export segment. The Group also expects continued headwinds in the domestic REM segment, driven by strong competition from imported products.

Overseas operations continue to feel the impact of tariff-related uncertainties and the prolonged trade tensions. In Indonesia, the automotive sector is grappling with multiple headwinds, leading to softer vehicle sales. Despite these conditions, the Group remains cautiously optimistic, underpinned by its diversified customer base and extensive product portfolio. The arrival of new Chinese carmakers in the market may also pave the way for fresh growth opportunities.

The Group remains vigilant amid ongoing global economic challenges. While geopolitical tensions continue to pose potential risks to financial markets and economic activity, the Group is taking a measured and proactive approach to safeguard its operations.

Looking ahead, the Group is focused on executing its five-year strategic plan, designed to drive long-term business resilience, capitalize on growth opportunities, and consistently deliver sustainable value to shareholders.