Link: https://links.sgx.com/1.0.0/corporate-announcements/ZE0G74NBGPFI18NJ/b22726ae1ff102783ce76f4704b45941746c46095c09cd9a8fcf9ecf7133a5f3

Summary:

• Revenue was broadly flat at S$94.2 million, slipping just 0.3% year-on-year as tyre and wheel sales across key Southeast Asian and African markets held steady despite intense competition.

• Gross profit fell to S$22.7 million and gross margin narrowed from 25.3% to 24.1%, reflecting pricing pressure and a less favourable product mix.

• Net profit halved to S$0.2 million from S$0.4 million as lower margins and a higher tax charge outweighed modest cost savings and stable joint-venture contributions.

• Operating expenses fell 3.4% to S$25.2 million, helped by reductions in other operating expenses, finance costs and lease expenses, partially offset by slightly higher staff and depreciation charges.

• Balance sheet quality improved as inventories were cut from S$81.2 million to S$73.7 million and cash and cash equivalents rose to S$32.1 million, even as total borrowings edged up to S$74.8 million.

• Net asset value per share eased marginally to 46.32 cents, with total equity dipping to S$110.0 million after dividend payouts, while the board held off declaring an interim dividend pending the full-year review.

• Management flagged a still-challenging operating climate given global macro and geopolitical headwinds, and plans to defend profitability by optimising product mix, tightening cost control and deepening its Southeast Asian core markets.