Unaudited Financial Statements And Dividend Announcement For The Six Months And Full Year Ended 31 December 2025
Condensed Interim and Full Year Consolidated Statement of Comprehensive Income For the second half year and full year ended 31 December 2025
Condensed Statements of Financial Position
Review of Performance
(A) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Review for the performance of the Group for the twelve-month ended 31 December 2025
("FY2025") as compared to twelve-month ended 31 December 2024 (“FY2024”)
Revenue
Revenue increased by $2.5 million or 6.6% from $37.5 million in FY2024 to $40.0 million in FY2025, mainly driven by an increased demand for our trading products and OEM products, attributable to our increased sales and marketing initiatives and our focus on delivering an improved customer experience and services.
Other income
Other income decreased by approximately $0.1 million or 26.8% from $0.50 million in FY2024 to $0.4 million in FY2025, which was mainly due to the lower total grants received, mainly due to lower grant received for procurement of machineries, which was partially offset by investment incomes received from fair value gains on financial assets at FVPL.
Changes in inventories
We recorded an increase of approximately $24,000 in the closing balance of our inventories in FY2025, compared to the increase of approximately $0.2 million in FY2024. The fluctuations in the balance of our inventories were mainly due to the timing of purchase, consumption and sale of inventories.
Purchases of inventories
Purchases of inventories increased by $1.5 million or 7.3% from $20.3 million in FY2024 to $21.8 million in FY2025, which was in line with the increase of our revenue during the year.
Staff costs
Staff cost increased by $0.9 million or 9.1% from $9.5 million in FY2024 to $10.4 million in FY2025, mainly due to the hiring of additional headcount to support business growth, salary increment and higher remuneration packages to our executive directors based on new service agreements entered into in connection with the IPO.
Depreciation expenses
Depreciation expenses increased by $0.2 million or 21.7% from $0.9 million in FY2024 to $1.1 million in FY2025, mainly due to the increase in depreciation of right-of-use assets in view that the Group had entered into new lease agreements for our manufacturing facilities located at 24 Woodlands Terrace and 7 Woodlands Link with revised lease term of 3 years respectively based on prevailing independent valuations.
Finance costs
Finance costs increased by $0.1 million or 57.7% from $0.2 million in FY2024 to $0.3 million in FY2025, mainly due to (i) increase in interest expense on lease liabilities as our Group had entered into new lease agreements for 24 Woodlands Terrace and 7 Woodlands Link with revised lease term of 3 years respectively based on prevailing independent valuations and (ii) our Group incurred the full year impact for interest on higher drawdown of borrowings from financial institutions in FY2024 to finance the addition and alteration works carried out on our manufacturing premise at 24 Woodlands Terrace.
Net impairment losses on trade and other receivables
Net impairment losses on trade and other receivables amounted to $0.2 million in FY2025 as compared to $3,000 in FY2024, mainly due to the increase in expected credit losses by $0.1 million as well as the increase in bad debts written off of $39,000 attributed to a long outstanding amount owed by an overseas customer to the Group.
Other expenses
Other expenses increased by approximately $0.7 million or 12.3% from $5.3 million in FY2024 to $6.0 million in FY2025. The increase in other expenses was mainly due to:
(i) an increase in professional fees, mainly incurred from the listing of the Company; and
(ii) an increase in miscellaneous expenses such as upkeep of motor vehicle, advertising and marketing expenses and audit fees.
Profit before tax
As a result of the above, our profit before tax decreased by $1.3 million or 64.7% from $2.0 million in FY2024 to $0.7 million in FY2025.
Tax expense
In FY2025, our tax expense decreased by $41,000 or 16.8% from $245,000 to $204,000, mainly due to lower profitability and lower deferred tax expense recognised for accelerated tax depreciation as compared to FY2024, which is partially offset by the lesser over provision of income tax in prior year by approximately $18,000.
(B) CONSOLIDATED STATEMENT OF FINANCIAL POSITION
The comparative performance for both the assets and liabilities are based on the Group's
statement of financial position as at 31 December 2025 and 31 December 2024
Non-current assets
Non-current assets comprise property, plant and equipment, goodwill and investment in associated company. Non-current assets amounted to $4.7 million and $14.7 million, which accounted for 25.3% and 53.9% of our total assets as at 31 December 2024 and 31 December 2025 respectively.
Property, plant and equipment
Property, plant and equipment comprised mainly plant and machinery, motor vehicles, furniture and fittings, renovation and electrical fittings, computers, construction-in-progress and leased industrial properties, used for the production, supply chain and office purposes. Property, plant and equipment amounted to $4.3 million and $14.3 million, which accounted for 91.8% and 97.4% as at 31 December 2024 and 31 December 2025 respectively.
Property, plant and equipment increased by $10.0 million as at 31 December 2025, mainly due to (i) an increase in leased industrial properties arising from the new leases entered during FY2025 of $6.1 million, (ii) an increase in construction-in-progress attributable to A&A works carried out on our manufacturing premise at 24 Woodlands Terrace for our soy bean-based beancurd manufacturing operation of $3.1 million; and (iii) the acquisition of machineries for production purposes as well as acquisition of motor vehicles for our logistics and delivery fleet of $0.7 million.
Goodwill
Goodwill is attributable to the acquisition of Five Food Path Pte. Ltd. which was completed during 2021. Goodwill has remained unchanged at $0.4 million as at 31 December 2024 and 31 December 2025.
Current assets
Current assets comprise inventories, financial assets at FVPL, trade and other receivables, and cash and cash equivalents. Current assets amounted to $13.8 million and $12.5 million, and accounted for 74.7% and 46.7% of our total assets as at 31 December 2024 and 31 December 2025 respectively.
Trade and other receivables
Trade and other receivables comprise amounts due from our customers (net of allowance for impairment loss), amount due from related parties and associated company (net of allowance for impairment losses), other receivables, prepayments and deposits paid. Trade and other receivables amounted to $7.1 million and $5.3 million, and accounted for 51.1% and 42.5% of our total current assets as at 31 December 2024 and 31 December 2025 respectively.
The decrease in trade and other receivables by $1.8 million as at 31 December 2025 was mainly due to the settlement of amounts due from a related party before the listing of the Company, which was partially offset by the increase in amounts owing from our customers and deposits paid for acquisition of property, plant and equipment.
Cash and cash equivalents
Cash and cash equivalents amounted to $5.1 million and $5.5 million, and accounted for 36.9% and 44.0% of our total current assets as at 31 December 2024 and 31 December 2025, respectively.
Working capital
The Group reported a positive working capital position of $3.4 million as at 31 December 2025, as compared to a positive working capital position of $4.2 million as at 31 December 2024.
Equity
Equity comprises share capital, treasury shares and retained earnings. Total equity amounted to $6.1 million and $10.3 million as at 31 December 2024 and 31 December 2025 respectively.
Share capital
Share capital increased by $3.6 million or 456.2% from $0.8 million as at 31 December 2024 to $4.4 million as at 31 December 2025, mainly due to the issuance of new ordinary shares in relation to the initial public offering of the Company in December 2025.
Treasury shares
Our treasury shares decreased by $0.8 million or 43.8% from $1.9 million as at 31 December 2024 to $1.1 million as at 31 December 2025, due to the distribution of treasury shares held by the subsidiaries, LGFM and LGFT to the existing shareholders of LGFM and LGFT before the listing of the Company.
Non-current liabilities
Non-current liabilities comprise borrowings and deferred tax liabilities. Non-current liabilities amounted to $2.8 million and $7.8 million, and accounted for 22.4% and 47.1% of our total liabilities as at 31 December 2024 and 31 December 2025 respectively.
Borrowings
The non-current portion of our borrowings comprise (i) bank loans and (ii) lease liabilities in respect of our right-of-use assets, including hire purchases, which are due after 12 months.
Non-current bank loans amounted to $2.2 million and $1.7 million, and accounted for 80.6% and 21.5% of our total non-current liabilities as at 31 December 2024 and 31 December 2025 respectively.
The decrease in non-current bank loans of $0.5 million as at 31 December 2025 was due to the repayment of the bank loans during FY2025.
Non-current lease liabilities amounted to $0.3 million and $5.9 million, and accounted for 11.2% and 75.1% of our total non-current liabilities as at 31 December 2024 and 31 December 2025 respectively.
The increase in non-current lease liabilities of $5.6 million as at 31 December 2025 was principally due to the new lease agreements inked for our manufacturing facilities located at 24 Woodlands Terrace and 7 Woodlands Link.
Deferred tax liabilities
Deferred tax liabilities principally comprise the net taxable temporary differences arising from our property, plant and equipment, based on the accounting net book values against the tax written down values, right-of-use assets and lease liabilities. Deferred tax liabilities amounted to $0.2 million and $0.3 million, and accounted for 8.3% and 3.4% of our total non-current liabilities as at 31 December 2024 and 31 December 2025 respectively, which was mainly due to increase of accelerated tax depreciation of approximately $41,000.
Current liabilities
Current liabilities comprise trade and other payables, contract liabilities, borrowings and tax payable. Current liabilities amounted to $9.6 million and $9.1 million, and accounted for 77.6% and 53.9% of our total liabilities as at 31 December 2024 and 31 December 2025 respectively.
Trade and other payables
Trade payables mainly comprise amounts owing to suppliers for the procurement of raw materials, packing materials and trading products, and other payables comprise amounts due to related parties, accrued operating expenses, such as payroll, GST payable and other payables. Trade and other payables amounted to $7.2 million and $6.5 million, and accounted for 74.9% and 71.4% of our total current liabilities as at 31 December 2024 and 31 December 2025 respectively.
The decrease in trade and other payables of $0.7 million as at 31 December 2025 was mainly due to the settlement of amount owing to a related party for trade purchases before the listing of the Company, which was partially negated by the increase of trade payables for higher procurement activities to cater for higher sales demand, higher amount owing to a related party for rental and utilities and higher accrued operating expenses for A&A works for 24 Woodlands Terrace and professional fees.
Contract liabilities
Contract liabilities mainly comprise billings in advance, excluding amounts recognised as revenue during the financial year, primarily relating to deposits collected by our Group from our overseas customers upon confirmation of their orders for better risk management. Contract liabilities amounted to $0.2 million and $0.3 million, and accounted for 2.8% and 2.7% of our total current liabilities as at 31 December 2024 and 31 December 2025 respectively.
Borrowings
The current portion of our borrowings comprise (i) bank loans, (ii) lease liabilities in respect of our right-of-use assets, including hire purchases, and (iii) bank overdraft, which are due within the next 12 months.
Current portion of bank loans amounted to $1.4 million and $0.5 million, and accounted for 15.0% and 5.4% of our total current liabilities as at 31 December 2024 and 31 December 2025 respectively.
The decrease in current bank loans of $0.9 million as at 31 December 2025 was due to repayment of the loans during the year.
Current lease liabilities amounted to $0.5 million and $1.4 million, and accounted for 5.0% and 15.0% of our total current liabilities as at 31 December 2024 and 31 December 2025 respectively.
The increase in current lease liabilities of $0.9 million as at 31 December 2025 was due to new lease agreements entered for our leased industrial properties located at 24 Woodlands Terrace and 7 Woodlands Link.
Bank overdraft mainly relates to short term working capital facility given by a financial institution to our Group and repayable on demand. Bank overdraft amounted to $0.3 million and accounted for 3.3% of our total current liabilities as at 31 December 2025. There was no bank overdraft drawdown as at 31 December 2024.
Tax payable
Tax payable amounted to $0.2 million and $0.2 million, and accounted for 2.3% and 2.3% of our total current liabilities as at 31 December 2024 and 31 December 2025 respectively.
(C) CONSOLIDATED STATEMENT OF CASH FLOW
Review of the performance of Group for FY2025
In FY2025, we recorded net cash generated from operating activities of $2.9 million, which was a result of operating cash flow before movement in working capital of $2.3 million and net working capital inflows of $0.8 million and income tax paid of $0.2 million.
The working capital inflows were due to a decrease in trade and other receivables of $2.0 million. It was partially offset by (i) an increase in inventories of approximately $24,000 and (ii) a decrease in trade and other payables and contract liabilities of $1.2 million.
Net cash used in investing activities of $3.7 million was primarily due to the acquisitions and deposits paid for property, plant and equipment, principally comprising plant and machinery, motor vehicles and A&A works carried out at 24 Woodlands Terrace.
Net cash generated from financing activities of $0.9 million was primarily due to the proceeds from issuance of new ordinary shares of $3.4 million upon the listing of the Company, which was partially offset by (i) repayment of lease liabilities of $0.7 million, (ii) repayment of bank borrowings of $1.5 million and (iii) interest paid of $0.3 million.
As a result of the above, our cash and cash equivalents increased by $0.2 million from $5.0 million to $5.2 million, after deducting bank overdraft of $0.3 million and fixed deposit pledged with bank for overdraft facility of approximately $70,000.
Commentary
The Group operates in a competitive staple food manufacturing and distribution industry, where demand is driven primarily by domestic and international consumption, trends and food and beverage service activities.
According to the Singapore Department of Statistics, total food and beverage service sales for November 2025 amounted to an estimated $1.0 billion, representing a 2.5% year-on-year increase compared with November 20241. Within the sector, food caterers and fast-food outlets recorded stronger growth of 7.0%, while cafes, food courts and other eating places grew by 2.0%. Restaurant sales recorded a marginal decline of 0.4% during the same period of November 20251.
In November 2025, on a year-on-year basis, retail sales at supermarkets and hypermarkets grew by 6.8%, while mini-marts and convenience stores grew by 9.2%, reflecting sustained consumer demand for staple food items1.
The year-on-year sales growth in the food service sector, as well as in supermarkets, hypermarkets, mini-marts and convenience stores, provides a stable demand backdrop and prospect for the Group. The Group will continue to focus on enhancing product quality, operational efficiency, customer service and branding in order to capitalise on these opportunities.
Health and wellness considerations continue to influence consumption patterns, with growing demand for healthier food options among both retail and institutional customers locally and abroad2.
The Group offers fresh wholegrain noodles certified by the Health Promotion Board as healthierchoice products, supported by its in-house research and development team focused on product innovation and portfolio refresh.
Operating environment for the food manufacturing sector continues to be shaped by manpower constraints and cost considerations. The sector faces ongoing challenges in attracting and retaining labour, and industry participants are increasingly adopting automation and digitalisation to improve productivity and sustainability3. In this regard, the Group has adopted a technology-driven approach across its production operations and supply chain processes, such as the implementation of integrated data systems to streamline operations, track and manage inventory, monitor equipment performance and ensure consumer safety and regulatory compliance, to further reduce reliance on manual labour and achieve better cost optimisation.
The Group will continue to focus on strengthening its core food manufacturing operations for organic growth and seek for merger and acquisition targets, which could deliver synergetic impacts and accretive values to the Group's long-term growth.
- Singapore Department of Statistics. Retail Sales Index and Food & Beverage Services Index, November 2025.
https://www.singstat.gov.sg/-/media/files/news/mrsnov2025.ashx - Health Promotion Board, Healthier Choice Symbol and Healthier Dining Programme.
https://www.hpb.gov.sg/healthy-living/food-beverage/healthier-dining-programme - Workforce Singapore, Jobs Transformation Map: Food Manufacturing Sector (public report).
https://www.wsg.gov.sg/home/employers-industry-partners/jobs-transformation-maps/jobs-transformation-map-food-manufacturing-sector