WINKING STUDIOS LIMITED

(Company Registration No. 159882)

(Incorporated in the Cayman Islands)

27 February 2026

Preliminary Results For The Year Ended 31 December 2025

Scaling delivery and building the platform for long-term growth

Winking Studios Limited (AIM / SGX: WKS) ("Winking Studios" or the "Company" and together with its subsidiaries, the "Group"), one of the leading global AAA game art outsourcing studios and an established game development company, announces its unaudited full year results for the financial year ended 31 December 2025 ("FY2025").

Financial Summary

 Strategic Highlights

 Outlook

Executive Director and Chief Executive Officer (Founder) of Winking Studios, Johnny Jan, commented:

"FY2025 was a standout year for Winking Studios. We delivered strong growth, scaled the business meaningfully and showed what the Group can do with Mineloader fully embedded in our platform. We also saw a clear recovery in organic momentum in the second half, alongside a step-change in our AAA delivery across the expanded studio network. That progress reflects the quality of our teams and the trust we have built with leading developers and publishers.

"Our focus now is on the next stage of execution. 2026 is set to be an important year for the Group, as we continue investing in talent and capacity in Southeast Asia and forge ahead with formally establishing an operational presence in Western markets. Overall market conditions are improving and, while developers and publishers remain cost-conscious, more development and art work is being allocated to outsourcing partners. With a strong balance sheet, solid revenue visibility and supportive long-term market drivers, we have entered the new financial year confident in our strategy and in our ability to deliver sustainable value for shareholders."

Enquiries

About Winking Studios Limited (AIM and SGX: WKS)

Headquartered in Singapore and dual-listed on the London Stock Exchange and Singapore Exchange (Trading Code: WKS), Winking Studios Limited is one of the leading global AAA game art outsourcing studios and an established game development company.

With over 25 years of experience and an established track record, the Group provides end-to-end art outsourcing, game development services and other gaming services across various platforms for the global gaming industry via its three business segments of Art Outsourcing, Game Development and Global Publishing & Other Services.

The Group has 13 studios across Taipei, Nanjing, Suzhou, Dalian, Tianjin, Shanghai and Kuala Lumpur with over 1,400 highly skilled employees serving a global customer base that includes 22 of the top 25 game development companies in the world. For more information, please visit www.winkingworks.com.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended by virtue of the Market Abuse (Amendment) (EU Exit) Regulations 2019.

CEO's Statement

Strong full-year performance and delivery against expectations

FY2025 was a year of significant growth and strategic progress for Winking Studios. I am pleased to report we delivered 42.6% revenue growth, with full-year revenue increasing to US$45.5 million (FY2024: US$31.9 million), marginally higher than market expectations^[5].

This robust performance was underpinned by the contribution of Mineloader, our largest acquisition to date, which was completed in April 2025, and a rebound in organic growth during the second half. Underlying organic revenue grew by 8.6%, with most of that growth coming in 2H2025, as we anticipated at the half year point. Excluding revenue contribution from Mineloader, the Group's underlying revenue growth rate was 7.0%.

In addition, the Group significantly increased the number of AAA titles worked on during the year, from 14 in FY2024 to 117 in FY2025, driven primarily by the inclusion of Mineloader and supported by broader execution across our expanded studio network. AAA games are high-budget, high-production-value video games developed to the highest commercial and technical standards, typically by major international publishers and studios.

The year saw continued progress in diversifying our geographic mix, with revenue from new and existing customers in the United States increasing 109.3% to US$7.3 million (FY2024: US$3.5 million), mainly due to Mineloader's higher concentration of Western customers. Mainland China and Hong Kong continued to be the Group's main revenue contributor, increasing 51.1% to US$16.7 million (FY2024: US$11.1 million).

Closely aligned with revenue growth, gross profit increased 43.2% to US$13.5 million (FY2024: US$9.5 million), with gross margin stable at 29.8% in FY2025 (FY2024: 29.7%). The contribution from Mineloader, which specialises in higher-margin AAA console art projects, mitigated some pressure from Asian mobile gaming projects, which typically have lower pricing.

Adjusted EBITDA for the year increased by 13.2% to US$5.4 million (FY2024: US$4.8 million), demonstrating the resilience of our underlying business despite the addition of ongoing public listing costs and the expanded cost base following our acquisitions. More details of our financial results for FY2025 can be found in the CFO's Review and detailed financial statements.

The Company's dividend policy is to distribute approximately 5% to 15% of its annual distributable profits, although such payments remain at the discretion of the Board. In light of the positive business momentum in FY2025 and taking into account Winking's cash balance, the Board has proposed an annual final dividend per share for FY2025 that exceeds these parameters, which is the same amount of dividend per share paid for FY2024. The proposed final dividend is subject to shareholders' approval at the upcoming AGM and will be paid based on the prevailing exchange rate at the time of payment.

We remain disciplined in how we allocate capital, maintaining the flexibility to invest in the Group's capabilities and to continue pursuing value-accretive M&A opportunities, supported by our strong balance sheet.

Supported by our expanded scale, enhanced capabilities, and solid base of repeat revenue, with follow-up projects representing 32.8% of total revenue in FY2025, we are confident that Winking Studios is well positioned to advance its growth objectives and deliver sustainable, long-term value for our stakeholders.

Scaling capacity and capability to meet growing demand

Demand for our art outsourcing and game development services was robust throughout FY2025, with momentum accelerating through Q2 and carrying into the second half. Activity was strongest in Asia, driven by a sharp rebound in mobile gaming content demand, while Western demand, particularly for console projects, recovered more gradually.

We continue to invest in expanding our capabilities to support rising global demand. In 2H2025 we launched Vertic Studios, our new high-end art production brand based in Southeast Asia, which focuses solely on AAA-quality projects and enables clients to work directly with English-speaking artist teams. The Southeast Asia production hub grew rapidly to more than 80 people by the end of the year, and is already contributing to the business with many new client engagements that leverage the hub's top-tier talent and cost-efficient production. Vertic Studios also expands our service offering, including into high-end CGI cinematics and animation for game trailers and media, areas of increasing demand.

Throughout the year, we continued to strengthen relationships with major global game developers and publishers. These deep client partnerships, combined with our expanded capacity, have resulted in a growing pipeline of new and follow-up projects. As at 31 December 2025, the Group's indicative artist bookings totalled at least US$48.6 million over the next 24 months (subject to final customer confirmation), with approximately US$34.6 million expected to be recognised as revenue in FY2026, supporting strong revenue visibility into the new financial year.

Our involvement in high-profile game franchises remains extensive, including, for example, work on major titles within the Ninja Gaiden series. Delivering time-critical work across multiple studios demonstrates the Group's ability to execute reliably on large-scale AAA projects within compressed development schedules. By supporting such blockbuster titles and other top-selling games around the world, we not only contribute to our clients' success but also secure a dependable stream of follow-up work that underpins our future growth.

The Group ended FY2025 with approximately 1,426 employees across its studio network (FY2024: 846), reflecting the scale added through Mineloader and continued investment in Southeast Asia.

Successful Mineloader integration and continued progress on M&A

The benefits of our proactive M&A-led growth strategy are clearly demonstrated in our results. The acquisition of Mineloader added significant scale, expertise and new client relationships to the Group.

Revenue from Mineloader amounted to approximately US$11.4 million during the year, based on a nine-month contribution period, and - just as importantly - brought almost 500 talented employees into Winking Studios.

I am pleased to report that the integration of Mineloader has progressed very well. Culturally and operationally, the Mineloader team has fit seamlessly into our Group, and their reputation for outstanding quality and long-term client loyalty is bolstering our own capabilities. This successful integration further validates our M&A strategy and gives us confidence as we pursue additional opportunities.

We continue to view strategic and targeted acquisitions as a core pillar of our growth strategy, especially given the highly fragmented nature of the game development services industry. Following the acquisition of Mineloader, we have strengthened our market position and further proven our ability to execute and integrate deals effectively. We continue to assess selective M&A opportunities, with a focus on established, profitable studios in Asia and Europe that can add specialised expertise, broaden customer access, and scale efficiently.

As part of our expansion, we are progressing plans to appoint senior industry leaders with strong track records and established networks in Europe and North America. These hires are intended to support the build-out of a UK presence and provide a platform for further organic growth and selective acquisitions across Western markets.

Backed by a healthy balance sheet with a strong cash position and no debt, we are confident in our ability to continue executing on accretive acquisitions and investments that extend our geographic reach and service capabilities.

Well-positioned to capture a growing industry opportunity

The global gaming industry continues to expand, creating a supportive backdrop for Winking Studios. According to a Newzoo report^[6], global gaming revenue was US$182.5 billion in 2024 and is forecast to rise to US$206.5 billion by 2028, an increase of approximately 13% over the period. Growth is expected to be broad-based across platforms, with mobile remaining the largest segment and console forecast to increase its share of global revenue over time. Newzoo forecasts 2025 to 2028 revenue CAGR of 4.7% for console, 2.2% for mobile and 3.3% for PC.

Newzoo also expects consumer spending to deepen, with paying gamers forecast to grow 4.9% in 2025, outpacing total player growth of 4.4%, with average spend per paying gamer estimated to reach US$119.70.

Rising player expectations for richer, higher-quality experiences are prompting developers and publishers to invest heavily in visuals, art, and ongoing content updates to sustain engagement.

As the industry evolves, outsourcing is increasingly being used as a core part of the production model, enabling studios to access specialist talent, improve flexibility and reduce fixed costs across multi-year development cycles. This trend is illustrated by recent titles such as Clair Obscur: Expedition 33, a 2025 role-playing game released on various platforms that achieved widespread critical acclaim and strong commercial success, selling over 5 million copies worldwide. The title combined a lean internal development team with extensive external production support, highlighting how modern studios are using outsourcing to deliver high-quality, content-rich games while managing development cost, risk and complexity.

These trends point to a large and expanding addressable market for established, scaled gaming outsourcing service providers. As one of the leading global game art outsourcing groups, Winking Studios is well positioned to continue capturing share through its combination of scale and cost efficiency in Asia, deep client relationships and an increasingly broad service offering.

Outlook: Driving the next stage of value creation

Trading in the new financial year has started in line with expectations. The global games market is entering a recovery phase and the Group is seeing outsourcing demand exceed earlier expectations.

Customers remain focused on cost control and accordingly, the Group will prioritise sustainable profitability, supported by cost efficiency, operational execution and long-term client relationships.

A key strategic priority in FY2026 will be the formal establishment of the Group's operational presence in Western markets, including dedicated studios and experienced regional leadership, to strengthen the Group's commercial and delivery capabilities in those markets.

With a strong balance sheet and zero debt, M&A remains a core strategic pillar, and the Group will continue to assess opportunities selectively, focusing on strategic fit.

In this context, and supported by favourable long-term market drivers, good revenue visibility and increased capacity, the Board is confident in the Group's positioning for FY2026 and its ability to continue executing its growth strategy.

Johnny Jan

Executive Director and Chief Executive Officer (Founder)

27 February 2026

^[1] Please refer to Section G - Other Information in the Financial Statements for the details on Adjusted EBITDA.

^[2] Please refer to Section G - Other Information in the Financial Statements for the details on Adjusted Net Profit.

^[3] Organic revenue growth is calculated by adjusting the prior year revenues, adding pre-acquisition revenues for the corresponding period of ownership.

^[4] Revenue from Mainland China and Hong Kong is contributed by two segments, one is the customers from Mainland China and Hong Kong and the other is from Mainland China and Hong Kong (non-China) that comprises (i) subsidiaries located in Mainland China and Hong Kong owned by European and American customers and (ii) overseas subsidiaries of Mainland China and Hong Kong customers.

^[5] Market expectations refers to the consensus of forecasts published by the Company's brokers available at Winking Studios Limited - Analyst Reports https://investor.winkingworks.com/analyst-reports, which are updated on an ongoing basis. Third-party forecasts not updated for more than 12 months have been excluded. On this basis, the relevant consensus revenue expectation for FY2025 is US$43.6 million.

^[6] https://newzoo.com/resources/trend-reports/newzoo-global-games-market-report-2025

CFO's Review

Revenue

As one of the leading global providers of game art outsourcing and development services, Winking Studios provides end-to-end art outsourcing, game development services and other gaming services across various platforms for the global gaming industry via our three business segments of Art Outsourcing, Game Development and Global Publishing & Other Services.

In FY2025, the Group posted strong revenue growth of 42.6% to US$45.5 million as compared to FY2024's revenue of US$31.9 million. This robust performance was underpinned by the contribution of Mineloader, our largest acquisition to date that was completed in April 2025, and a rebound in organic growth during the second half. For FY2025, the Group's organic revenue increased by 8.6%. Excluding revenue contribution from Mineloader, the Group's underlying revenue growth rate was 7.0%.

Business Segment Review

Art Outsourcing

This business segment is involved in the creation and development of digital art assets. The Group has the capabilities to provide a wide range of design services including 2D concept art, 3D modelling, 2D animation, 3D animation and visual effects, which includes environment design and game character design.

Historically, this business segment has contributed the majority of the Group's revenue. In FY2025, it accounted for 82.4% of the Group's overall revenue (FY2024:82.8%).

Revenue from this business segment increased by 42.0% or US$11.1 million to US$37.5 million, mainly due to increased orders from both new and existing clients - notably in the United States, Mainland China and Hong Kong as well as from other regions - combined with the contribution from the acquisition of the Mineloader. 

Game Development

This business segment provides programming, game development, design and script writing services.

In FY2025, this business segment contributed 17.3% of the Group's overall revenue (FY2024: 16.6%), representing a revenue growth of 48.4% or US$2.6 million to US$7.9 million, driven by higher orders from existing customers and contribution from the acquisition of Mineloader.

Global Publishing and Other Services

This business segment is involved in the release of game products produced by the Group as well as third party game developers on global game platforms such as PlayStation, Switch and Steam. It is also involved in the sale of the Group's in-house developed video game products and peripheral gaming products.

In FY2025, this business segment remained the smallest revenue contributor of the Group, with revenue of US$0.1 million or 0.3% of the Group's overall revenue (FY2024: 0.6%).

Geographical Segment Review

Serving a global customer base that includes 22 of the top 25 game publishers in the world, the Group has made good progress over the years to diversify our revenue base geographically; while Mainland China and Hong Kong remain key markets, revenue contributions from other regions have expanded. The following table details the revenue breakdown geographically in FY2025 and FY2024:

^[1] Hong Kong here refers to Hong Kong Special Administrative Region.

^[2] Taiwan here refers to the Taiwan region.

Revenue from Mainland China and Hong Kong is contributed by two segments, one is the customers from Mainland China and Hong Kong and the other is from Mainland China and Hong Kong (non-China) that comprises (i) subsidiaries located in Mainland China and Hong Kong owned by European and American customers and (ii) overseas subsidiaries of Mainland China and Hong Kong customers.

In FY2025, Chinese customers from Mainland China and Hong Kong accounted for 22.4% of the Group's total revenue, while Mainland China and Hong Kong (non-China) accounted for 14.4% of the Group's total revenue. On a combined basis, Mainland China and Hong Kong accounted for 36.8% of the Group's total revenue.

In FY2024, Chinese customers from Mainland China and Hong Kong accounted for 25.1% of the Group's total revenue, while Mainland China and Hong Kong (non-China) accounted for 9.6% of the Group's total revenue. On a combined basis, Mainland China and Hong Kong accounted for 34.7% of the Group's total revenue.

The Group continues to make good progress with our revenue diversification strategy, which saw the United States market and other regions, delivering strong revenue growth in FY2025 as compared to FY2024.

Gross profit and margin

With higher revenue in FY2025, the Group's gross profit increased by 43.2% to US$13.5 million (FY2024: US$9.5 million), with gross margin stable at 29.8% in FY2025 (FY2024: 29.7%). The contribution from Mineloader, which specialises in higher-margin AAA console art projects, mitigated some pressure from Asian mobile gaming projects, which typically have lower pricing.

Operating costs

The Group's distribution and marketing expenses increased 17.1% or US$0.4 million from US$2.2 million in FY2024 to US$2.5 million in FY2025. The increase was mainly due to more investments in marketing and promotional activities to expand into overseas markets, resulting in increased business travel costs, and costs related to marketing activities.

Administrative expenses increased 16.3% or US$1.5 million, to US$10.6 million in FY2025 (FY2024: US$9.1 million). In FY2024, one of the major components of administrative expenses was a one-off LSE IPO expense of US$2.4 million recognised. Taking this into account, there was a variance of US$3.9 million that was mainly attributable to the following:

Alternative performance measures (APMs)

The Group also reports on a number of APMs to showcase the financial performance of the Group, which are not standard accounting measures defined by the International Financial Reporting Standards ("IFRS"). The Directors believe that these measures provide valuable additional financial information for users to understand the fundamental transactional performance of the Group. In particular, APMs are used to provide the users of the accounts a clearer understanding of the Group's underlying profitability over a period of time.

EBITDA / Adjusted EBITDA

The Group recognised increased EBITDA of US$3.4 million in FY2025, as compared to US$2.0 million in FY2024.

The Group's Adjusted EBITDA for the period, calculated as set out below, increased by 13.2% or US$0.6 million to US$5.4 million (FY2024: US$4.8 million). While revenue grew by 42.6% in FY2025, Adjusted EBITDA growth was moderated by US$0.4 million of LSE-related ongoing expenses incurred in FY2025 but not in FY2024, and by US$0.7 million of other income and other gains (excluding forex gains) recognised in FY2024 that did not recur in FY2025.

Net Profit / Adjusted Net profit

Overall, the Group's net profit was lower at US$0.3 million in FY2025 (FY2024: US$0.5 million). On an adjusted net profit basis, the Group posted US$3.0 million in FY2025 (FY2024: US$3.4 million).

n.m denotes not meaningful

^[3] Subject to approval by shareholders at the upcoming AGM and the final dividend payout will be subjected to the prevailing exchange rate

Cash flow

Net cash generated from operating activities increased significantly by US$4.5 million to US$5.1 million during FY2025, as compared to US$0.6 million generated during FY2024, which was primarily driven by the absence of one-off AIM dual listing cash outflow in FY2024, as well as higher cash inflows from an enlarged operating scale following the acquisition of Mineloader.

Net cash used in investing activities increased significantly to US$14.5 million in FY2025 compared to US$3.7 million used in FY2024, which was mainly attributable to the Group's acquisition of Mineloader.

Net cash used in financing activities was US$1.7 million in FY2025, compared to US$27.0 million generated in FY2024. In FY2024, the Company issued new shares and received proceeds (net of share issue expense) of US$29.4 million.

The Group's current assets decreased by approximately US$6.9 million or 13.8% from US$49.8 million as at 31 December 2024 to US$42.9 million as at 31 December 2025. The key components of the Group's current assets comprise cash and cash equivalents, trade and other receivables and contract assets. Cash and cash equivalents totalled US$27.4 million as at 31 December 2025, a decrease of US$12.4 million or 31.2%, as compared to US$39.8 million as at 31 December 2024. The decrease was mainly due to a US$13.2 million payment related to the acquisition of Mineloader. As at 31 December 2025, the Group's trade and other receivables increased by US$2.9 million or 45.5% to US$9.3 million, primarily driven by higher revenue in the second half of FY2025 that was principally attributable to the increase in business activities and the consolidation of receivables from the acquisition of Mineloader. Contract assets totalled US$6.2 million as at 31 December 2025, an increase of US$2.6 million or 71.8% from US$3.6 million as at 31 December 2024, mainly due to the consolidation of contract assets from the acquisition of Mineloader. Almost 100% of the contract assets from the previous year's output were converted into trade receivables or cash collections.

As at 31 December 2025, the Group's non-current assets increased by US$15.5 million or 148.1% to US$26.0 million, as compared to US$10.5 million as at 31 December 2024. The key components of the Group's non-current assets comprise intangible assets, which increased significantly from US$1.9 million as at 31 December 2024 to US$17.2 million as at 31 December 2025, mainly due to the recognition of goodwill and intangible assets associated with the acquisition of Mineloader.

As at 31 December 2025, the Group's current liabilities increased by US$2.8 million or 38.8% to US$10.1 million as compared from US$7.3 million as at 31 December 2024. The key components of the Group's current liabilities comprise trade and other payables and lease liabilities. Trade and other payables increased by US$1.9 million or 32.7% to US$7.9 million as at 31 December 2025 as compared to US$5.9 million as at 31 December 2024, mainly due to the aggregation of payables from the acquisition of Mineloader. Lease liabilities increased by US$0.6 million or 48.5% to US$1.7 million as at 31 December 2025 as compared to US$1.2 million as at 31 December 2024, which was mainly attributable to new office lease agreements arising from the acquisition of Mineloader during FY2025.

As at 31 December 2025, the Group's non-current liabilities increased by US$2.8 million or 93.4% to US$5.8 million as at 31 December 2025, as compared to US$3.0 million as at 31 December 2024. The key components of the Group's non-current liabilities comprise deferred income tax liabilities and other non-current liabilities. Deferred income tax liabilities increased by US$1.9 million or 168.7% to US$3.0 million as at 31 December 2025 as compared to US$1.1 million as at 31 December 2024, which was mainly attributable to the acquisition of Mineloader. The Group recognised other non-current liabilities of US$1.7 million as at 31 December 2025, which is the share purchase consideration payable for the acquisition of Mineloader that is scheduled to be paid on 31 March 2030.

As at 31 December 2025, the Group's net asset value per ordinary share is US$12.00 cents (as at 31 December 2024: US$11.35 cents).

WINKING STUDIOS LIMITED AND ITS SUBSIDIARIES

Unaudited Condensed Consolidated Financial Statements

For the Six Months and Full Year Ended 31 December 2025

(Incorporated and domiciled in Cayman Islands with limited liability No. 159882)

This announcement has been reviewed by the Company's sponsor, PrimePartners Corporate Finance Pte. Ltd. (the "Sponsor"). This announcement has not been examined or approved by the Singapore Exchange Securities Trading Limited (the "SGX-ST") and the SGX-ST assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made or reports contained in this announcement. The contact person for the Sponsor is Ms. Foo Jien Jieng, 16 Collyer Quay, #10-00 Collyer Quay Centre, Singapore 049318, [email protected].

WINKING STUDIOS LIMITED AND ITS SUBSIDIARIES

Table of Contents                                                                         

                                                                                     Page

A.     Condensed Interim Consolidated Statement of Comprehensive Income .....................................20

B.     Condensed Interim Statements of Financial Position....................................................................21

C.    Condensed Interim Consolidated Statement of Cash Flows ........................................................22

D.    Condensed Interim Statements of Changes in Equity ..................................................................23

E.     Notes to the Condensed Interim Consolidated Financial Statements ...........................................25

F.     Other information required by Appendix 7C of the Catalist Rules .................................................43

G.     Other information ...........................................................................................................................61

A.  Condensed Interim Consolidated Statement of Comprehensive Income

The accompanying accounting policies and explanatory notes form an integral part of the condensed Interim consolidated financial state

B. Condensed Interim Statements of Financial Position

The accompanying accounting policies and explanatory notes form an integral part of the condensed interim consolidated financial statement

C. Condensed Interim Consolidated Statement of Cash Flows

The accompanying accounting policies and explanatory notes form an integral part of the condensed consolidated financial statements