Chairman's Message

(Extracted from Annual Report 2025)

Overview

The Group continues to navigate a challenging business environment in FY2025, amid elevated interest rates, persistent inflationary pressures, supply chain disruptions, escalating tariffs, geopolitical tensions and heightened global economic volatility.

The Group's consolidated revenue increased by $1.80 million from $4.75 million for the financial year ended 30 June 2024 ("FY2024") to $6.55 million in FY2025. The increase in revenue was mainly due to higher revenue generated from the natural gas vehicle ("NGV") business, manufacturing and trading business, and property business.

A net loss of $0.20 million was recorded by the Group in FY2025 as compared to a net loss of $0.73 million in FY2024. The reduction in loss was mainly due to higher revenue and improved gross profit generated from NGV and property businesses.

As at 30 June 2025, the Group's net tangible assets was $1.20 million, compared to $1.29 million as at 30 June 2024.

Looking Ahead

As announced on 3 July 2025, the Company has entered into a conditional novation and debt capitalisation agreement ("Debt Capitalisation Agreement") with one of the Company's subsidiaries and the participating creditors for the (i) novation; and (ii) proposed capitalisation and conversion of the participating debts into new ordinary shares ("Conversion Shares"). Separately, the Company intends to pay bonus to certain employees of the Group by way of issuance of new ordinary shares ("Employee Bonus Shares"). The Company agreed to allot and issue an aggregate of 945,622,000 Conversion Shares pursuant to the terms of the Debt Capitalisation Agreement and 20,680,000 Employee Bonus Shares, subject to the shareholders' approval in the upcoming Extraordinary General Meeting to be held on 17 October 2025. Details on the resolutions will be contained in the circular to be circulated to the shareholders on 1 October 2025.

The Group's businesses are expected to remain challenging for the financial year ending 30 June 2026 ("FY2026") mainly due to global economic uncertainties. Despite the challenging market condition in which the businesses operate, the Group remains focused on enhancing its operational efficiency, exercising strict cost control, conserving cash and ensuring long-term sustainability of its existing businesses.

Corporate Governance

The Group remains committed to maintain its regime of high standards of corporate governance. It pledges to provide timely and accurate information through announcements and investor relations activities for the benefits of all stakeholders. Please refer to the Report on Corporate Governance set out on pages 13 to 35 for detailed disclosure on the Company's corporate governance practices.

Appreciation

On behalf of the Board, I would like to thank all shareholders for their continued loyalty and support to the Company.

We also acknowledge the strong support of our customers, bankers and business associates of our Company in FY2025 and we are looking forward to your strong support to help us to achieve a better FY2026 and beyond.

We would like to express our heartfelt gratitude to Mr. Lee Teck Meng Stanley, who will be retiring as an Independent Director of the Company, Chairman of the Nominating Committee and the Remuneration Committee, and a member of the Audit Committee at the conclusion of the Company's forthcoming annual general meeting, for his contributions and efforts driving the growth of the Group over the years.

Last, but not least, I would like to thank all staff and management for their dedicated services and support to the Group as we work together to overcome the unprecedented challenges.

Mr. Cheah Wee Teong
Independent Non-Executive Chairman
19 September 2025