JE Cleantech(US:JCSE)2025-10-30 12:01Revenue Performance - Revenue for the six-month period ended June 30, 2025, decreased by approximately SGD4.2 million or 39.5% to SGD6.5 million from SGD10.7 million in the same period of 2024[6]. - Total revenues for the six-month period ended June 30, 2025, decreased to SGD 6,494,000, a decline of 39.9% compared to SGD 10,742,000 in the same period of 2024[98]. - Revenue from the sale of precision cleaning systems dropped by approximately SGD4.0 million, primarily due to key customers in Malaysia rescheduling major orders[21]. - Approximately 40.2% of total revenue for the six-month period ended June 30, 2024, was generated from Singapore, which increased to 67.3% in 2025[26]. - Revenue from Singapore for the six-month period ended June 30, 2025, was SGD 4,373,000, compared to SGD 4,316,000 in 2024, indicating a slight increase[190]. Profitability - Net loss for the six-month period ended June 30, 2025, was approximately SGD0.8 million compared to a net income of SGD0.6 million in the same period of 2024[6]. - Net income/(loss) shifted from a profit of approximately SGD0.6 million in 2024 to a loss of SGD0.8 million in 2025[42]. - Adjusted EBITDA decreased from SGD1.449 million in 2024 to a loss of SGD0.131 million in 2025[49]. - Gross profit for the six-month period ended June 30, 2025, was approximately SGD1.6 million, with a gross profit margin of 25.1% compared to SGD2.8 million and 26.4% in 2024[29]. - The gross profit for the six-month period ended June 30, 2025, was SGD 1,628,000, down 42.5% from SGD 2,834,000 in 2024[185]. Expenses - Selling and marketing expenses increased marginally due to increased participation in exhibitions for precision cleaning systems[31]. - General and administrative expenses decreased from approximately SGD2.2 million in 2024 to SGD1.9 million in 2025, representing 20.3% and 29.9% of total revenue respectively[32]. - Staff costs decreased from SGD1.302 million in 2024 to SGD1.138 million in 2025, reflecting a focus on productivity enhancement and cost management[33]. - Operating expenses for the six-month period ended June 30, 2025, were SGD 2,050,000, a decrease of 9.6% compared to SGD 2,267,000 in 2024[98]. Cash Flow and Liquidity - Cash and cash equivalents decreased from SGD4.807 million at the end of June 2024 to SGD5.033 million at the end of June 2025[51]. - Net cash provided by operating activities was approximately SGD19,000 in 2025, a significant decrease from SGD(681,000) in 2024[54][55]. - Net cash used in financing activities shifted from a net inflow of approximately SGD0.8 million in 2024 to a net outflow of approximately SGD0.7 million in 2025[59][60]. - The company aims to maintain sufficient liquidity to meet its financial obligations under both normal and stressed conditions[203]. Assets and Liabilities - Total current assets as of June 30, 2025, were SGD 23,555,000, a decrease of 8.3% from SGD 25,681,000 as of December 31, 2024[97]. - Total liabilities as of June 30, 2025, increased to SGD 16,946,000, up 10.0% from SGD 18,621,000 as of December 31, 2024[97]. - Accounts receivable decreased from approximately SGD4.5 million as of December 31, 2024 to approximately SGD2.6 million as of June 30, 2025[62]. - Inventory increased from approximately SGD12.6 million as of December 31, 2024 to approximately SGD13.5 million as of June 30, 2025, with average inventory turnover days rising from 346.2 days to 489.4 days[72][73]. - Accounts payable decreased from approximately SGD0.6 million as of December 31, 2024 to approximately SGD0.5 million as of June 30, 2025, with average accounts payable turnover days decreasing from 25.9 days to 21.0 days[74][76]. Credit and Risk Management - The allowance for expected credit losses for accounts receivable remained at SGD78,000 as of June 30, 2025[65]. - The company actively monitors credit terms and collection processes to strengthen credit control and mitigate potential non-payment risks[69]. - The company has no significant exposure to credit risk as it does not hold collateral[202]. - The Company is exposed to foreign exchange risk as its revenues and expenses are primarily denominated in SGD while reporting in USD[90]. Shareholder Information - The Company declared a dividend of SGD 643 thousand for the year ended December 31, 2024, fully paid during the same year[146]. - The company issued 300,000 shares under the 2022 equity incentive plan, increasing total common shares from 5,006,666 to 5,306,666[179]. Regulatory and Accounting Policies - The Company recognizes revenue from sales of goods and services when a performance obligation is satisfied, with the transaction price reflecting the amount expected to be entitled[130]. - The Company measures inventories at the lower of cost and net realizable value, with costs based on the first-in, first-out principle[123]. - The Company’s property, plant, and equipment are depreciated on a straight-line basis over their estimated useful lives, which range from 1 to 30 years depending on the asset category[124]. - The Company adopted ASU 2023-07 for segment reporting, effective January 1, 2024, enhancing disclosures about significant segment expenses[148].