Link: https://links.sgx.com/1.0.0/corporate-announcements/V4XVQC915E8FUD6I/1510d6a99f38116ee075f2445e1efb23a2ea530eb6be0feef1a78e437cfb20f1

Summary:

• Quarterly revenue rose 12% year-on-year to S$9.43 million, with 1H FY2026 revenue up 8% to S$18.14 million, driven mainly by stronger renewable energy and resource recovery sales.

• Gross profit jumped 51% in Q2 to S$1.64 million and 1H gross profit edged 4% higher to S$2.99 million, though 1H gross margin eased from 17% to 16% due to a softer first quarter.

• The group narrowed its quarterly loss from continuing operations to S$147,000 from S$206,000 a year earlier, but 1H swung to a S$244,000 loss from a S$33,000 profit previously as higher manpower and operating costs offset topline gains.

• Resource Recovery remained the growth engine with double-digit revenue expansion, underpinned by higher rubber compound exports and food waste tipping fees, partially offset by lower rental income after a subcontracting exit.

• Finance costs dropped 42% in Q2 and 43% in 1H thanks to reduced interest-bearing borrowings following early loan settlements and regular repayments, while income tax expense climbed to S$264,000 on profitable entities within the group.

• Net assets were broadly stable at S$20.68 million with net asset value per share steady at 1.80 Singapore cents, supported by positive operating cash flow of S$1.83 million and improved net current assets of S$16.37 million.

• Management maintains going-concern confidence, citing a stronger order pipeline, partnerships in environmental solutions and digitalisation, and ongoing efforts to stabilise Singapore and Malaysia operations despite a recent auditor-qualified opinion on past China-related issues and an investment valuation.