Chairman's Message

(Extracted from Annual Report 2024)

Overview

The Group faced a challenging business environment in FY2024, amidst rising interest rates and inflationary pressures, coupled with disruptions to global economic condition.

During the year, the Company had entered into a conditional novation and debt capitalisation agreement ("Debt Capitalisation Agreement") with 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 had paid bonus to certain employees of the Group by way of issuance of new ordinary shares ("Employee Bonus Shares"), and had allotted and issued an aggregate of 100,517,630 Conversion Shares pursuant to the terms of the Debt Capitalisation Agreement and 7,578,946 Employee Bonus Shares.

The Group's consolidated revenue increased by $1.54 million from $3.21 million for the financial year ended 30 June 2023 ("FY2023") to $4.75 million in FY2024. The increase in revenue was mainly due to higher revenue generated from the natural gas vehicle business, partially offset by the lower revenue generated from the manufacturing and trading business by its Singapore subsidiaries.

A net loss of $0.73 million was recorded by the Group in FY2024 as compared to a net loss of $0.81 million in FY2023. This was mainly due to higher revenue and gross profit generated from natural gas vehicle business, partially offset by an increase in administrative expenses.

As at 30 June 2024, the Group's net tangible assets was $1.29 million, compared to $1.67 million as at 30 June 2023.

Looking Ahead

The Group's businesses are expected to remain challenging for the financial year ending 30 June 2025 ("FY2025") mainly due to global economic uncertainties. Despite the challenging market condition in which the businesses operate, the Group continues to focus on its operational efficiency, cost control, cash conservation and ensuring 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.

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 FY2024 and we are looking forward to your strong support to help us to achieve a better FY2025 and beyond.

We are delighted to extend a warm welcome to our esteemed new Independent Director, Mr. Tan Wei Lee on the Board.

We also would like to express our heartfelt gratitude to Mr. Chue Wai Tat, who will be retiring as the Lead Independent Director of the Company and members of the Audit Committee, the Nominating Committee and the Remuneration 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
30 September 2024