Condensed Interim Financial Statements for the Half Year Ended 30 June 2025

Condensed interim consolidated statement of profit or loss and other comprehensive income

Condensed interim statements of financial position

Review of Performance

• Review of Performance

  Financial performance of the Group (1H2025 vs 1H2024)

  Revenue and Gross Profit

  The Group recorded revenue of S$87.5 million in 1H2025, representing a 20% increase compared to revenue of S$73.1 million reported in 1H2024. The year-on-year growth was primarily driven by a 35% increase in sales volume but negatively impacted by an 11% reduction in average selling prices, a consequence of continued decline in steel prices.

  Despite a modest drop in gross profit margin from 13.6% to 12.6% year-on-year, the Group delivered an increase in gross profit to S$11.0 million in 1H2025, up from S$9.9 million in 1H2024.

  Other Operating Income

  Other operating income declined to S$0.7 million in 1H2025, down from S$1.0 million in 1H2024, primarily due to the absence of foreign exchange gain of S$0.4 million and a fair value gain of S$0.3 million for foreign currency contracts. This decline was partially offset by an increase in interest income of S$0.4 million in 1H2025.

  Selling and Distribution, Administrative, Other Operating and Finance Expenses

  The Group’s selling and distribution expenses in 1H2025 increased by 48% to S$0.9 million compared to S$0.6 million in 1H2024, primarily driven by higher sales volume and increased use of out-sourced logistics services.

  Administrative expenses declined by approximately S$0.4 million in 1H2025, primarily attributable to reduced salary cost incurred.

  Other operating expenses incurred in 1H2025 increased to S$2.7 million, from S$1.6 million in 1H2024. The increase was mainly attributable to a loss of S$1.2 million from foreign exchange difference and fair value changes in foreign currency contracts, partially offset by a lower provision of S$0.1 million for inventory write downs.

  Total finance costs incurred were primarily related to borrowing for trade financing, bank term loans, construction loans and leases related to property redevelopment. Total finance cost incurred in 1H2025 decreased by 23% compared to 1H2024, mainly due to lower utilisation of trade financing for trade purchase and repayment of bank loans.

  Profitability

  Continuing operations

  As a result of the factors mentioned above, the Company reported a net profit before tax of S$4.3 million in 1H2025, a slight decrease from 1H2024. Total taxation expense remained consistent at approximately S$0.7 million for both 1H2025 and 1H2024. Consequently, the Group recorded a net profit after tax of S$3.6 million in 1H2025 compared to S$3.7 million in 1H2024.

  Excluding the impact of foreign exchange loss/gain, the Group would have recorded a net profit after tax of S$4.8 million in 1H2025, compared to S$3.0 million in 1H2024.

  Discontinued operations

  The Group recorded a net loss after tax of S$264k in 1H2024 from a discontinued operation. The discontinued operation was disposed of on 13 February 2024.

• Balance Sheet

  The Group’s non-current assets, which comprised mainly property, plant and equipment and right-of-use assets were S$23.8 million as of 30 June 2025 compared to S$24.5 million as at 31 December 2024.

  As of 30 June 2025, the Group’s inventory on hand stood at S$13.3 million, reflecting a modest increase from S$11.9 million as at 31 December 2024, aimed at supporting sales volume growth while optimizing inventory levels.

  Trade and other receivables amounted to S$63.7 million as of 30 June 2025 as compared to S$61.4 million as at 31 December 2024. The increase of S$2.3 million was mainly attributed to an increase in trade receivables in tandem with higher revenue generated in 1H2025.

  Trade and other payables decreased to S$7.1 million as of 30 June 2025, down from S$7.9 million as of 31 December 2024 mainly due to the settlement of outstanding suppliers' invoices.

  Total bank borrowings decreased to S$5.6 million as of 30 June 2025 from S$6.7 million as of 31 December 2024 mainly due to repayment of bank borrowings.

• Statement of Cash Flows

  The Group recorded net cash inflows from operating activities of S$0.9 million in the current financial period. This was due to profits from operations, offset by net decrease in working capital, mainly attributed to an increase in trade and other receivables

  Net cash flows used in investing activities for 1H2025 was S$0.3 million, mainly due to purchase of noncurrent assets.

  Net cash flows used in financing activities for 1H2025 was S$1.4 million, mainly due to repayment of bank borrowings of S$1.0 million and principal lease repayments of S$0.4 million.

  The Group’s cash and cash equivalents were S$54.8 million as at 30 June 2025 in comparison to S$19.1 million as at 30 June 2024.

• Commentary

  Despite global economic uncertainties, Singapore’s economy demonstrated strong resilience in the first half of 2025. According to advance estimates from the Ministry of Trade and Industry (“MTI”) released on 14 July 2025, Singapore’s Gross Domestic Product (“GDP”) grew by 4.3% year-on-year in Q2 2025. On a quarter-on-quarter seasonally adjusted basis, the economy rebounded by 1.4%, recovering from a Q1 contraction. This rebound was led by the manufacturing sector, which posted a robust 5.5% year-on-year growth, supported in part by a temporary boost in exports due to a postponement of U.S. tariffs. The services and construction sectors also contributed to the broader recovery .

  However, MTI has cautioned that uncertainties are likely to persist in the second half of the year, particularly with regard to U.S. trade policy, which present significant downside risks to the global economy .

  The construction sector expanded by 4.9% in Q2 2025, a slight moderation from the 5.1% growth in Q1, driven primarily by increased public sector construction activity. The outlook for the second half of the year remains positive, bolstered by momentum from earlier contract awards and a healthy pipeline of infrastructure projects. This optimism is reinforced by the Building and Construction Authority’s (“BCA”) January 2025 projection, which estimates total construction contracts for the year at S$47–S$53 billion, surpassing 2024 levels .

  As a participant in the construction steel supply chain, the Group is well-positioned to benefit from accelerating infrastructure development and the delivery of large-scale projects, despite continued pricing headwinds.

  In Q2 2025, steel rebar prices in Singapore fell by 13% year-on-year, extending a decline that began in Q2 2023. This drop is driven by global oversupply and aggressive pricing from Chinese exporters, compounded by U.S. tariffs that have redirected surplus Chinese steel to international markets, further pressuring prices.

  These market dynamics are putting pressure on margins and impact the Group's capacity to offer competitive contracts. Price volatility also increases inventory and procurement risks, including potential inventory devaluation.

  To counter these challenges, the Group will continue to enhance its inventory control through just-in-time purchasing and faster turnover, while pursuing operational efficiencies and cost optimization to protect margins and remain competitive.