Condensed Interim Financial Statements For the Six-Month Period Ended 31 December 2024 (“1H2025”)

Profit or Loss

Balance Sheet

Review of Performance

Statement of Comprehensive Income

Revenue

Business Segments:

Revenue increased by approximately $1.1 million, or 6.8%, from $15.7 million in 1H2024 to $16.8 million in 1H2025, driven by higher sales in the Others segments, partially offset by decreased sales in the Modern Trade, General Trade and Food Services segments.

• Others Segment: Revenue increased by approximately $1.4 million, or 53.0%, from $2.6 million in 1H2024 to $4.0 million in 1H2025, driven by higher demand for the Group’s products for export.
• Modern Trade Segment: Revenue decreased by approximately $0.2 million, or 3.6%, from $4.0 million in 1H2024 to $3.8 million in 1H2025, largely due to subdued consumer demand amid increased product variety in the market.
• General Trade Segment: Revenue remained relatively consistent at approximately $5.1 million in 1H2024 and $5.0 million in 1H2025.
• Food Services Segment: Revenue remained relatively consistent at $4.0 million in 1H2024 and $3.9 million in 1H2025.

Geographical Information:

• Singapore Market: Revenue decreased by approximately $0.8 million, or 6.5%, from $11.7 million in 1H2024 to $10.9 million in 1H2025 due to lower consumer demand from customers across all the segments.
• Malaysia Market: Revenue increased by approximately $0.2 million, or 8.5%, from $2.0 million in 1H2024 to $2.2 million in 1H2025, primarily due to higher demand from customers in the General Trade and Food Services segments, offset by lower product offtake from customers in Modern Trade segment.
• Other Markets: Revenue increased by approximately $1.7 million, or 81.4%, from $2.0 million in 1H2024 to $3.7 million in 1H2025, primarily driven by increased export sales.

Cost of Sales:

Cost of sales increased by approximately $0.4 million, or 3.7%, from $11.6 million in 1H2024 to $12.0 million in 1H2025, aligning with the increase in revenue.

Gross Profit and Gross Profit Margin:

Gross profit slightly increased by $0.7 million, or 15.4%, from $4.1 million in 1H2024 to $4.8 million in 1H2025. The gross profit margin increased by 2.1 percentage points, from 26.2% in 1H2024 to 28.3% in 1H2025, primarily due to higher sales in 1H2025 and a reduction in returned products compared to 1H2024.

Other Income and Gains:

Other income and gains increased by $0.6 million, or 218.1%, from $0.2 million in 1H2024 to $0.8 million in 1H2025, mainly due to a $0.6 million foreign exchange translation gain due to the strengthening of Malaysian Ringgit against Singapore Dollar during 1H2025. The gain is attributable to loans given to the subsidiary in Malaysia for setting up the factory acquired by the Group in May 2024.

Expenses

• Marketing and Distribution Costs: Increased by approximately $0.1 million, or 14.3%, from $1.3 million in 1H2024 to $1.4 million in 1H2025, in line with increase in revenue.
• Administrative Expenses: Increased by approximately $0.2 million, or 7.2%, from $2.8 million in 1H2024 to $3.0 million in 1H2025, mainly due to rising payroll-related costs.
• Finance Costs: Increased by approximately $57,000, or 63.3%, from $90,000 in 1H2024 to $147,000 in 1H2025. This increase was primarily due to the new bank borrowing.
• Other Losses: Other losses decreased by approximately $55,000, or 73.3% from $75,000 in 1H2024 to $20,000 in 1H2025. This improvement was mainly due to the absence of $71,000 foreign exchange translation loss and $2,000 bad debt written off in 1H2024, offset by a $15,000 allowance for impairment of trade and other receivables in 1H2025 and an increase in plant and equipment written off of approximately $3,000.

Income Tax Expense:

Income tax expenses increased by approximately $0.1 million, or 57.3%, from $0.1 million in 1H2024 to $0.2 million in 1H2025, mainly due to an increase in profit before income tax from the Group’s subsidiaries in Singapore and Malaysia.

Profit for the Financial Period:

As a result of the above, the Group recorded a profit after tax of approximately $0.7 million in 1H2025, compared to a profit after tax of $6,000 in 1H2024.

Statement of Financial Position

The comparative commentary for both the assets and liabilities are based on the Group’s financial statements as at 31 December 2024 and 30 June 2024.

Non-current Assets

Non-current assets increased by approximately $5.0 million, from $18.6 million as of 30 June 2024 to $23.6 million as of 31 December 2024.

Property, plant and equipment (“PPE”) increased by approximately $2.3 million, from $14.6 million as of 30 June 2024 to $16.9 million as at 31 December 2024. This was primarily due to additions of PPE amounting to approximately $2.6 million in relation to the machinery and equipment acquired for the newly set up factory in Malaysia and exchange translation gain of $0.3 million arising from cost of acquisition in SGD currency, partially offset by depreciation charges of approximately $0.6 million. Right-of-use assets increased by approximately $0.4 million, from $2.4 million as of 30 June 2024 to $2.8 million as of 31 December 2024, mainly due to the renewal of lease contract amounting to approximately $0.6 million and depreciation charges of approximately $0.2 million. Other nonfinancial assets increased by $2.3 million from $1.6 million as at 30 June 2024 to $3.9 million as at 31 December 2024, mainly due to a deposit paid for the fixed assets and renovation work for the newly set up factory in Malaysia.

Current Assets

Current assets increased by approximately $0.3 million, from $17.1 million as at 30 June 2024 to $17.4 million as at 31 December 2024. This increase was primarily due to increase in trade and other receivables of approximately $2.5 million in line with the increase in revenue in 1H2025, partially offset by a decrease in cash and cash equivalents of approximately $1.4 million, a decrease in inventories of approximately $0.5 million, and a decrease in other non-financial assets of $0.2 million.

The decrease in cash and cash equivalents is further explained in the Cash Flows Statement section. The decrease in inventories reflects a combination of our efforts to maintain minimal stock levels and the timing of our order shipments. The decrease in other non-financial assets was mainly due to the recognition of PPE upon completion of renovation work as at 31 December 2024.

Non-current Liabilities

Non-current liabilities increased by approximately $3.2 million, from $4.7 million as at 30 June 2024 to $7.9 million as at 31 December 2024. This was primarily due to an increase in lease liabilities of approximately $0.3 million and an increase in loans and borrowings of approximately $2.9 million.

The increase in loans and borrowings was mainly due to a new bank borrowing obtained by a Malaysia subsidiary and the increase in lease liabilities was due to renewal of leases for transport vehicles.

Current Liabilities

Current liabilities increased by approximately $1.5 million, from $4.3 million as at 30 June 2024 to $5.8 million as at 31 December 2024. This increase was mainly attributable to an increase in trade and other payables of approximately $0.6 million, other non-financial liabilities of approximately $0.6 million mainly due to the renovation and purchases of plant and equipment for factory set-up, income tax payable of approximately $0.1 million and an increase in loans and borrowings of approximately $0.1 million due to a new bank borrowing, and lease liabilities of approximately $0.2 million due to renewal of lease contract during the period.

Statement of Cash Flows

The Group generated approximately $0.6 million in cash from operating activities. This was due to an operating cash inflow before working capital changes of approximately $1.4 million, net working capital outflows of approximately $0.7 million, reduced by tax payments of approximately $0.1 million.

The net working capital outflows were primarily due to an increase in trade and other receivables of approximately $2.5 million, offset by a decrease in inventories of approximately $0.5 million, other non-financial assets of approximately $0.2 million, an increase in trade and other payables of approximately $0.5 million and an increase in other non-financial liabilities of approximately $0.6 million.

Net cash used in investing activities amounted to approximately $4.9 million, mainly due to the purchase of property, plant, and equipment amounting to approximately $2.6 million and a deposit paid for the acquisition of plant and equipment of approximately $2.3 million, partially offset by interest income of approximately $33,000.

Net cash from financing activities amounted to approximately $2.8 million, mainly due to the new bank borrowing by a subsidiary of approximately $3.1 million for setting up the factory acquired by the Company in May 2024, a deposit received of approximately $150,000 from a related party pursuant to the proposed disposal of shares in Joint Venture as announced on 26 December 2024, offset by the payment of lease liabilities of approximately $0.2 million, the repayment of loans and borrowings amounting to approximately $0.1 million and interest paid of approximately $0.1 million.

As a result of the above, there was a decrease in cash and cash equivalents of approximately $1.4 million, bringing the balance to $4.2 million as at 31 December 2024, compared with $5.6 million as at 30 June 2024.

Commentary

As of the announcement date, the Group continues to navigate a challenging operating environment shaped by inflationary pressures, rising raw material and operating costs, and intense market competition. Additionally, ongoing geopolitical uncertainty, higher global meat prices and shipping costs will continue to impact the industry.

In response, the Group remains focused on stringent cost management, improving production and distribution efficiency, and strengthening marketing efforts to enhance brand awareness and drive sales. These proactive measures aim to mitigate external pressures while reinforcing the Group/s resilience and long-term growth.