• Leading private equity firms FountainVest and CPE join as investors, reflecting strong confidence in SML's strategic direction and future growth
• SML continues to advance its core capabilities for global brand and retail customers through next-generation innovations, including RFID, Digital Product Passport (DPP), Factory Care Solutions (FCS), and Digital IDs
• The new investors will provide SML with additional resources, capital and relationships for the company to drive innovation, digital integration, geographic expansion and customer-centric growth

HONG KONG, Nov. 3, 2025 -- SML Group, a global leader in RFID and brand identification solutions, today announced that FountainVest and CPE have joined as new shareholders. The introduction of these two respected global private equity firms marks a pivotal milestone in the company's growth journey.

SML is a trusted supply chain and digital transformation partner to the world's leading apparel and retail brands. The company specialises in delivering innovative end-to-end solutions across RFID, Digital Product Passports (DPP), Factory Care Solutions (FCS), Digital IDs and Tags & Labels, enabling customers to improve inventory accuracy, operational efficiency, sustainability tracking, and future consumer engagement.

With a strong global manufacturing footprint and presence across over 20+ countries, SML combines deep technical expertise with agile execution to support clients throughout their product lifecycle, from concept and packaging to digital integration and analytics. The company's ongoing investment in R&D and advanced digital solutions continues to position it as a leading innovator within the brand identification and digital intelligence ecosystem.

Following a record-breaking 2024 and a strong performance in 2025 despite global headwinds, SML has expanded its global footprint with new production sites, major client partnerships, and significant advancements in sustainability and innovation through initiatives such as InfuseRFID, Factory Care Solutions, and the upcoming Digital Product Passports (DPP). These achievements demonstrate the strength of SML's strategy, its people, and its ability to evolve with agility and precision.

The transition will be guided collaboratively by the new shareholders and SML's leadership team. With deep appreciation for the company's four-decade legacy, SML enters this new chapter with renewed energy and a clear ambition for global growth.

Investor Confidence and Strategic Alignment

The investment from FountainVest and CPE underscores strong confidence in SML's long-term trajectory and ongoing transformation within brand identification and digital intelligence.

Together, the investors bring both regional and global expertise, extensive networks, and a shared belief in entrepreneurship, innovation, and long-term value creation.

Leadership Perspectives

Mr. Ignatius K.C. Lau, Chief Executive Officer of SML Group, commented:
"2024 marked the most successful year in our history, and 2025 has continued our growth journey despite global challenges. These milestones reflect the strength of SML's strategy, the dedication of our people, and our ability to adapt and execute with excellence. The investment from FountainVest and CPE is a powerful validation of what we have built over the last four decades and a catalyst for the next phase. We will continue to evolve with determination - advancing innovation, strengthening leadership, and investing in our people."

Mr. Rishi Pardal, incoming Chairman of SML Group, noted:
"SML's greatest strength lies in its people - their creativity, commitment, and customer-first mindset. As we enter this next phase, our focus will remain on attracting and empowering talent, investing in innovation, and preserving our agility to ensure we are well prepared to serve our customers as they embrace a digitally enabled future."

Mr. Andrew Huang, Managing Director at FountainVest, said:
"We have been following SML for many years, and see tremendous potential in SML's ongoing transformation. As a founder-led company with an agile, entrepreneurial spirit, SML's culture of innovation and collaboration reflects values we deeply believe in - integrity, teamwork, and forward-thinking. FountainVest has a deep network across the consumer, retail and industrial sectors, and we are excited for our collaborative partnership with the leadership team to support the company's next chapter of growth."

Mr. Hemeng Dong, Managing Director at CPE, added:
"CPE has a broad investment ecosystem from key supply chain to potential customers, we are committed to supporting SML in delivering superior products and integrated digital solutions that enhance lead time, quality, and overall performance. We'll help the company meet growing demand for RFID, DPP and FCS solutions, explore new opportunities in labels, packaging, and software, and create long-term value for our customers."

The Road Ahead

SML is accelerating innovation in RFID, Digital Product Passports (DPP), Factory Care Solutions (FCS), and Digital IDs, building on its excellent labels and packaging capabilities. The company's strategic direction remains focused on growth through enhanced commercial capabilities, innovation, and digital transformation, building a more agile, customer-centric, and globally integrated organisation.

About SML

A global leader in digital identification solutions, such as item-level Radio-Frequency Identification (RFID), SML is shaping the future of brand identification globally with smart, creative and sustainable solutions that elevate brands. With over 40 years of retail expertise, SML combines state-of-the-art technology with innovative design to help brands strengthen their identity, enhance security, and improve operational efficiency from factory to shelf – and beyond. As a global leader in item-level brand identification solutions, SML connects billions of items globally each year, powering data-driven operations and enabling smart and more agile retail.

Operating in 25+ locations across 20+ countries, SML delivers global insights and local expertise through a diverse and customer-focused team. Partnering with 600+ brands worldwide, SML provides scalable, high-quality solutions and ensures precision, sustainability, and consistency at every stage of the supply chain.

Trusted Solutions – Powered by People

For more information, please visit https://www.sml.com/.

About FountainVest

FountainVest Partners is an established, independent private equity firm in Asia. It focuses on long-term investments in industry leaders, partnering closely with management teams to unlock value and drive growth, all while seeking to make a positive impact in the communities in which it works. FountainVest has a strong track record, having completed numerous landmark investments across the globe in multiple sectors, including consumer, industrials, and business services. FountainVest manages assets on behalf of the world's leading public pensions, sovereign wealth funds, and other institutional investors.

For more information, please visit: www.fountainvest.com

About CPE

CPE is a leading Asia-based alternative asset manager with a global perspective and approximately US$22 billion in assets under management. Pursuing a long-term vision and value investment strategy, CPE provides innovative investment solutions to leading firms from the following three key sectors – technology and industrial, consumer and healthcare, infrastructure. Currently with successful long-term performance, CPE's funds under management are supported by over 200 domestic and international institutional investors across North America, Europe, Asia and the Middle East. The core investment team has completed more than 300 investments globally, enabling the firm to accumulate key sector knowledge and a widespread business network. With a solid investment and research process, strong sector expertise and professional portfolio management capabilities, CPE builds long-term relationships with its portfolios in order to drive their value creation and sustainable growth.

For more information, please visit: www.cpe-fund.com

Advisors

Citigroup acted as exclusive financial advisor to FountainVest on the transaction. Jefferies acted as exclusive financial advisor to SML. Goodwin, DLA Piper, and Slaughter and May acted as legal advisors to FountainVest, CPE, and SML, respectively.

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