In FY2025, the Group’s manufacturing business faced a severe deterioration in trading conditions as the ongoing US trade tariffs dramatically reduced demand for wheels produced in China and Taiwan. The sustained decline in order books, particularly from the US market, made it no longer viable to continue operating the Suzhou and Taiwan facilities. The Group therefore took the painful but necessary decision to cease production at the Suzhou factory in the third quarter of FY2025 and at the Taiwan factory in the fourth quarter, with manufacturing operations to be fully consolidated into the Malaysia factory by the end of March 2026.
The Group operated manufacturing facilities in China, Malaysia and Taiwan during FY2025, though production at the Suzhou and Taiwan plants wound down progressively through the year. Revenue from wheel manufacturing activities fell by 20.1% to S$61.5 million in FY2025, compared to S$77.0 million in FY2024, representing 15.6% of Group’s total revenue, down from 19.0% in FY2024. Retrenchment costs of S$8.3 million were incurred in FY2025 in connection with the factory closures. In addition, the building on leasehold land at the Suzhou factory was reclassified to investment property following the cessation of production and the conversion of the facility to a rental business.
The Group’s manufacturing plant in Malaysia remained the anchor of the manufacturing segment, generating revenue of S$39.0 million and accounting for 63.4% of total manufacturing revenue in FY2025, compared to 53.5% in FY2024. While Malaysia revenue declined modestly by 5.3% from S$41.2 million in FY2024, its share of the manufacturing segment increased significantly as China and Taiwan output contracted sharply. The combined revenue from the China and Taiwan operations decreased by 37.2% to S$22.5 million, as tariff pressures and the wind-down of production at both plants severely reduced output. The Malaysia factory is expected to absorb consolidated production following the full closure of the Suzhou and Taiwan facilities.