KUALA LUMPUR, Malaysia, July 23, 2026 (GLOBE NEWSWIRE) -- Sagtec Global Limited (NASDAQ: SAGT), a leading provider of AI-driven technology solutions across Southeast Asia, today released a first-half 2026 shareholder letter from Chairman and Chief Executive Officer Kevin Ng Chen Lok, highlighting the Company's strategic progress, AI commercialization initiatives, and continued execution of its long-term growth strategy following a record fiscal year 2025.
Letter to Shareholders from Ng Chen Lok, Chairman and CEO
Fellow Shareholders,
As we reach the midpoint of 2026, I am pleased to share the meaningful progress Sagtec has made in executing our long-term growth strategy. Following a record financial year in 2025, our focus has shifted from building a scalable business foundation to accelerating commercialization, expanding our AI ecosystem, and strengthening our recurring revenue platform.
The first half of 2026 has been defined by disciplined execution. Through strategic acquisitions, new enterprise AI deployments, infrastructure investments, and strengthened capital resources, we believe Sagtec is well positioned to capture larger opportunities across Southeast Asia.
Strong First-Half Performance
Our record financial performance in fiscal year 2025 provides a strong foundation for the Company's continued growth. We delivered revenue of US$19.1 million, representing 49% year-over-year growth, while gross profit increased 45% to US$4.3 million. Software subscription revenue continued to strengthen, with our Speed+ platform contributing 62% of total revenue, reinforcing the resilience and scalability of our recurring revenue model.
While we have not yet released our financial results for the first half of 2026, management remains encouraged by the operational momentum achieved across multiple strategic initiatives during the period. Based on preliminary unaudited management estimates, the Company currently expects first-half 2026 revenue of approximately US$11.23 million and gross profit of approximately US$3.12 million. These preliminary figures are subject to the completion of the Company's financial closing procedures and may differ from the final reported results.
Expanding Our AI Platform
Artificial intelligence remains at the center of Sagtec's long-term vision as we continue to invest in next-generation technologies that deliver long-term value for our customers and shareholders.
During the first half of the year, we launched Sage AI, our enterprise AI platform, and secured a US$1.1 million enterprise deployment, demonstrating growing market demand for AI-powered business solutions. This milestone reflects our strategy of transforming AI innovation into commercial adoption while expanding our recurring enterprise revenue base.
We also announced the development of Malaysia's Sovereign AI Data Center, which is expected to provide secure computing infrastructure for enterprise AI applications, support data sovereignty requirements, and enable future large-scale AI deployments across the region.
In addition, we officially launched the Halo AI POS System, an AI-powered point-of-sale solution designed specifically for chain retailers and multi-outlet restaurant operators. Halo AI integrates intelligent automation, data analytics, and AI-driven business insights to help enterprises improve operational efficiency and customer engagement. We believe the solution has significant market potential and are targeting approximately 10,000 subscribers by 2027, which is expected to generate approximately US$1.0 million in annual recurring subscription revenue, subject to market adoption and execution of our commercialization strategy.
Together, these initiatives significantly strengthen Sagtec's AI ecosystem, broaden our portfolio of AI-driven enterprise solutions, and position the Company to capitalize on the growing demand for intelligent digital transformation across Southeast Asia.
Strategic Partnerships Driving Growth
Strategic collaboration continues to play an important role in expanding our market presence.
One of the most significant milestones during the first half of 2026 was our proposed acquisition of a majority stake in Malaya Heritage, a rapidly growing food and beverage operator. We believe this transaction creates meaningful opportunities to integrate Sagtec's proprietary technology, AI capabilities, and digital payment ecosystem into traditional consumer businesses while expanding our recurring revenue opportunities.
In addition, we strengthened our smart property ecosystem through new strategic collaborations aimed at integrating AI, automation, and digital infrastructure into future property developments. These initiatives reflect our broader strategy of embedding Sagtec's technology platform across multiple industries beyond traditional software deployment.
Growing Enterprise Pipeline
Our commercial pipeline continues to expand as enterprises increasingly invest in AI-powered digital transformation solutions to improve operational efficiency, enhance customer experiences, and accelerate business growth.
Beyond our recurring software subscription business, we continue to secure higher-value enterprise projects through our subsidiary, CL Technologies (International) Sdn. Bhd. These engagements span AI implementation, cloud infrastructure, smart property technologies, industry-specific digital solutions, and AI-driven data analytics, enabling us to diversify our revenue streams while strengthening long-term relationships with customers across multiple industries.
As organizations continue to adopt AI and digital technologies, we believe our integrated technology ecosystem positions Sagtec to capture a growing share of this expanding market. Our focus remains on delivering scalable, recurring solutions that create long-term customer value, rather than relying solely on one-time project revenue. We believe this strategy reinforces the resilience, predictability, and long-term scalability of our business model.
Disciplined Execution
Growth must be supported by financial discipline.
During the first half of 2026, we successfully secured additional project funding participation to support strategic expansion while maintaining a disciplined approach to capital allocation. This enhanced financial flexibility enables us to continue investing in product innovation, infrastructure, acquisitions, and regional growth initiatives while preserving a strong financial position for future opportunities.
Our objective remains unchanged: invest responsibly today while building sustainable long-term shareholder value.
Unlocking Long-Term Shareholder Value
Sagtec Global continues to advance its strategy of unlocking shareholder value by evaluating potential independent listings of its high-growth business units. As part of this initiative, the Company is currently working with its legal and professional advisers to evaluate the potential spin-off and separate listing of its subsidiary, CL Technologies (International) Sdn. Bhd.
CL Technologies has established itself as a specialized provider of AI implementation, cloud infrastructure, smart property technologies, and enterprise digital transformation solutions. Management believes that a potential spin-off, if pursued, could provide greater strategic flexibility, enhance access to growth capital, and better position both businesses to pursue their respective growth opportunities while maximizing long-term shareholder value. There can be no assurance regarding the timing, structure, or completion of any potential spin-off transaction.
Looking Ahead
As we enter the second half of 2026, we remain confident in the Company's strategic direction. The progress achieved during the first six months of the year reflects our continued evolution from a regional software provider into an integrated AI technology platform serving multiple high-growth industries.
With a strong foundation established through our record fiscal year 2025 performance, we continue to execute on key strategic initiatives, including AI commercialization, enterprise software expansion, digital infrastructure development, strategic acquisitions, and the evaluation of value-enhancing corporate initiatives. We believe these efforts position Sagtec to capitalize on the growing demand for intelligent business solutions across Southeast Asia while creating sustainable long-term value for our shareholders.
On behalf of the Board of Directors, I would like to thank our employees, customers, business partners, and shareholders for your continued trust and support. We remain committed to disciplined execution, sustainable growth, and creating long-term value for all stakeholders.
Sincerely,
Ng Chen Lok
Chairman, Chief Executive Officer and Executive Director
Sagtec Global Limited
About Sagtec Global Limited
Sagtec Global Limited (NASDAQ: SAGT) is a Nasdaq-listed technology solutions specialist headquartered in Kuala Lumpur, Malaysia. The company provides customizable enterprise software solutions, AI-powered technologies, and digital transformation services, including its proprietary cloud-based smart ordering system Speed+ and AI-driven SaaS platforms serving more than 12,000 clients. Since its IPO in March 2025, Sagtec has expanded its operations across Malaysia, Southeast Asia, and the Middle East. For more information, visit www.sagtec-global.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the Company’s current expectations, estimates and projections about its business, industry and future results, and involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements may include, but are not limited to, statements regarding the expected launch, scope, timing, features and benefits of the Skilliks.AI platform and MaluDB hosting services, the completion and capabilities of the Company’s data center, estimates of market size and growth, the revenue targets for the joint platform, the expected benefits of the expanded partnership, and the anticipated impact of the agreements on the Company’s business and financial condition. Market size estimates are derived from third-party industry sources that the Company believes to be reasonable but has not independently verified, and platform revenue targets are management objectives that are inherently uncertain and do not constitute financial guidance. Actual results may differ materially due to factors including, among others, the parties’ ability to develop and launch the platform on the anticipated timeline, market adoption of memory database services, competition, regulatory developments, and the risks described in the Company’s filings with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update or revise any forward-looking statements, except as required by law.
Contact Information:
Sagtec Global Limited Contact:
Wan Najwa Enche Khawari
Head of Public Relations & Corporate Affairs
Telephone +6011-6217 3661
Email: info.pr@sagtec-global.com
