Financial Performance - Revenue for the first half of 2025 was SGD 26,065,000, a decrease of 8.9% compared to SGD 28,619,000 in the first half of 2024[4] - The group reported a profit before tax of SGD 388,000, significantly up from SGD 125,000 in the previous year, marking a 210.4% increase[4] - Net profit for the period was SGD 247,000, compared to a loss of SGD 130,000 in the same period last year[4] - Total comprehensive income for the first half of 2025 was SGD 258,000, recovering from a loss of SGD 130,000 in the first half of 2024[6] - Basic and diluted earnings per share for the first half of 2025 were 0.03 Singapore cents, compared to a loss of 0.01 Singapore cents in the previous year[6] - The group reported a segment profit of SGD 388,000 for the six months ended June 30, 2025, compared to a profit of SGD 125,000 in the same period of 2024[19] - For the six months ended June 30, 2025, the company reported a pre-tax profit of approximately SGD 253,000, compared to a loss of SGD 114,000 for the same period in 2024[27] Revenue Breakdown - Total revenue for the six months ended June 30, 2025, was SGD 26,065,000, a decrease of 9% from SGD 28,619,000 for the same period in 2024[23] - Revenue from customer contracts for the sale of prepared food, beverages, and tobacco products was SGD 18,088,000, down 18% from SGD 22,062,000 in the previous year[23] - Rental income from leasing premises amounted to SGD 5,134,000, an increase of 16% compared to SGD 4,423,000 in the prior year[23] - The segment for rental and shop management generated external revenue of SGD 7,977,000, while the food stall segment generated SGD 18,088,000[19] - Revenue from management, cleaning, and utility services rose by approximately SGD 0.7 million or 33.2% to about SGD 2.8 million, consistent with the increase in rental income[40] - Sales of prepared foods, beverages, and tobacco products generated approximately SGD 18.1 million, a decrease of SGD 4.0 million or 18% compared to SGD 22.1 million in the previous period, accounting for about 69.4% of total revenue[40] Assets and Liabilities - The group’s total assets less current liabilities stood at SGD 177,834,000 as of June 30, 2025, down from SGD 180,828,000 at the end of 2024[8] - Non-current assets totaled SGD 191,541,000, a slight decrease from SGD 194,266,000 in the previous year[7] - The total assets of the group as of June 30, 2025, were SGD 198,289,000, while total liabilities were SGD 108,823,000[19] - The group’s net asset value increased to SGD 89,466,000 from SGD 89,208,000 at the end of 2024[8] - The company’s total borrowings decreased to SGD 92,082,000 as of June 30, 2025, from SGD 95,668,000 as of December 31, 2024, reflecting a reduction of about 3.0%[35] Cash Flow and Expenses - Cash generated from operating activities was SGD 4,048,000, slightly down from SGD 4,165,000 in the first half of 2024[10] - The company reported a decrease in cash and cash equivalents to SGD 3,801,000 from SGD 7,158,000 at the beginning of the period[10] - Total employee costs decreased to SGD 7,380,000 in 2025 from SGD 8,979,000 in 2024, reflecting a reduction of approximately 17.8%[7] - The company's interest expenses for the six months ended June 30, 2025, were SGD 1,821,000, down from SGD 1,961,000 in 2024, indicating a decrease of about 7.1%[6] - Cost of consumed inventory decreased by approximately SGD 1.6 million or 17.0% to about SGD 7.8 million, aligning with the decline in sales revenue[41] - Property rental and related expenses increased by approximately SGD 0.2 million or 9.1% to about SGD 2.4 million, attributed to the opening of multiple food centers[43] - Other operating expenses decreased by approximately SGD 0.2 million or 9.5% to about SGD 1.9 million, mainly due to cost control strategies[45] Corporate Governance and Shareholder Information - The company has adopted the corporate governance code as per the listing rules, ensuring high standards of governance to protect shareholder interests and enhance corporate value[58] - The company did not declare an interim dividend for the reporting period, consistent with the previous year[26] - The board does not recommend declaring any interim dividends for the reporting period[67] - As of June 30, 2025, the company’s major shareholders include Strong Oriental with 600,000,000 shares (75.00%) and Lee Kek Choo with 56,536,000 shares (7.07%)[66] - No stock options were granted, exercised, or canceled under the stock option plan during the reporting period, with a total of 80,000,000 shares available for issuance, representing 10% of the issued share capital[60] - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[61] Strategic Focus and Future Outlook - The company continues to focus on strategic adjustments, including the closure of underperforming outlets, to enhance profitability and operational efficiency[38] - The effective tax rate remained stable at 17% for both the current and previous reporting periods[25] - The group has applied new and revised International Financial Reporting Standards, which did not have a significant impact on the financial position or performance during the reporting period[16] - The group had unutilized bank financing of at least SGD 11.6 million as of June 30, 2025, ensuring sufficient liquidity for ongoing operations[48] - There have been no significant events related to the group after the reporting period up to the report date[69] - A property was sold for a total consideration of SGD 1,950,000, with the sale expected to complete on September 17, 2025[68] Audit and Compliance - The audit committee, comprising all independent non-executive directors, reviewed the accounting principles and policies adopted by the group during the reporting period[71] - The company maintains the required public float percentage as per listing rules as of the report date[70]
K2 F&B(02108) - 2025 - 中期财报