UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS AND FULL YEAR ENDED 31 DECEMBER 2025
This announcement has been reviewed by the Company's sponsor, SAC Capital Private Limited (" Sponsor ").This announcement has not been examined or approved by Singapore Exchange Securities Trading Limited (" SGX-ST ") and the SGX-ST assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made, or reports contained in this announcement.
The contact person for the Sponsor is Ms. Audrey Mok (Telephone: (65) 6232 3210) at 1 Robinson Road, #21-01 AIA Tower, Singapore 048542.
CONDENSED INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Group
Notes Unaudited
Unaudited
Unaudited
Audited
Change
Change
2H2025
2H2024
FY2025
FY2024
+ve/(-ve)
+ve/(-ve)
S$'000
S$'000
S$'000
S$'000
S$'000
%
Revenue
Cost of sales
4
47,971
54,488
89,197
98,743
(9,546)
(9.7)
(36,538)
(44,440)
(70,376)
(80,136)
9,760
(12.2)
11,433
10,048
18,821
18,607
214
1.2
Gross profit
1,344
2,843
2,968
3,700
(732)
(19.8)
Other operating income
Distribution and selling expenses
Administrative expenses
Reversal of impairment loss/(impairment loss) on trade and other receivables and contract assets
Other operating expenses
Share of results of associates
(2,828)
(2,793)
(5,715)
(5,784)
69
(1.2)
(5,945)
(6,206)
(11,756)
(12,089)
333
(2.8)
103
(354)
123
(39)
162
n.m.
(198)
(2)
(570)
(36)
(534)
n.m.
(444)
381
843
1,326
(483)
(36.4)
(9,312)
(8,974)
(17,075)
(16,622)
(453)
2.7
3,465
3,917
4,714
5,685
(971)
(17.1)
Profit from operations
Finance expenses
Interest income
(774)
(1,197)
(1,667)
(2,257)
590
(26.1)
17
34
45
62
(17)
(27.4)
Profit before tax
Tax expense
6
2,708
2,754
3,092
3,490
(398)
(11.4)
7
(329)
(597)
(497)
(669)
172
(25.7)
2,379
2,157
2,595
2,821
(226)
(8.0)
Profit for the period
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Net fair value gain on equity instrument at fair value
through other comprehensive income ("FVOCI")
2,603
1,600
2,603
1,600
1,003
62.7
Item that may be reclassified subsequently to profit or loss
Foreign currency translation
736
(195)
112
94
18
19.2
Total comprehensive income for the period
5,718
3,562
5,310
4,515
795
17.6
Profit/(loss) for the period attributable to :-
Owners of the Company
Non-controlling interests
2,083
2,032
2,577
2,991
(414)
(13.8)
296
125
18
(170)
188
n.m.
2,379
2,157
2,595
2,821
(226)
(8.0)
Total comprehensive income for the period attributable to :-
Owners of the Company
Non-controlling interests
5,371
3,461
5,318
4,685
633
13.5
347
101
(8)
(170)
162
(95.3)
5,718
3,562
5,310
4,515
795
17.6
Earnings per share attributable to owners of the Company:
Basic and diluted (cents)
1.87
1.82
2.31
2.68
There were no potential dilutive ordinary shares existing during the respective financial periods.
1H: 6 months ended 30 June
2H: 6 months ended 31 December
FY: 12 months ended 31 December
n.m.: not meaningful
CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION
Group
Company
Unaudited
Audited
Unaudited
Audited
Notes 31 Dec 2025
31 Dec 2024
31 Dec 2025
31 Dec 2024
S$'000
S$'000
S$'000
S$'000
Non-current assets
Fixed assets
Intangible assets
Right-of-use assets
Land use rights
Investment in subsidiaries
Investment in associates
Investment securities
Deferred tax assets
Total non-current assets
10
23,052
23,977
19,156
19,699
188
188
-
-
14,018
14,574
13,318
13,554
1,528
1,580
-
-
-
-
20,570
20,570
9,799
9,620
7,281
7,281
9
11,525
8,775
-
-
1,373
1,412
-
-
61,483
60,126
60,325
61,104
Current assets
Fixed asset held for sale
Inventories
Investment securities
Trade receivables
Contract assets
Other receivables
Deposits
Prepayments
Advance payment to suppliers
Amounts due from subsidiaries (trade)
Amounts due from subsidiaries (non-trade)
Amounts due from associates (trade)
Amounts due from associates (non-trade)
Tax recoverable
Fixed deposits
Cash and bank balances
Total current assets
11
63
61
-
-
16,613
16,467
7,087
6,475
9
486
1,601
486
1,601
15,400
17,504
1,272
941
8,154
12,479
-
648
1,091
1,752
696
529
393
403
81
57
289
322
44
103
3,591
2,969
2,593
2,394
-
-
399
1,777
-
-
7,241
6,846
276
224
-
-
132
133
-
-
31
60
-
-
207
458
7
208
9,634
6,012
3,092
1,286
56,360
60,445
22,998
22,865
117,843
120,571
83,323
83,969
Total assets
Current liabilities
Trade payables
Contract liabilities
Trust receipts (secured)
Other payables
Accruals and other liabilities
Dividend payable
Amounts due to subsidiaries (trade)
Amounts due to subsidiaries (non-trade)
Provision for income tax
Lease liabilties (current)
Term loans (current)
Total current liabilities
12
12
7,998
10,634
618
1,286
1,254
1,777
445
253
12,570
11,731
8,732
7,990
1,094
1,223
197
244
12,365
12,797
4,594
3,614
28
28
28
28
-
-
7,282
7,136
-
-
1,144
264
141
296
-
-
722
879
588
568
5,859
9,103
3,669
4,739
42,031
48,468
27,297
26,122
14,329
11,977
(4,299)
(3,257)
Non-current liabilities
Deferred tax liabilities
Lease liabilities (non-current)
Term loans (non-current)
Total non-current liabilities
Net current assets/(liabilities)
3,166
2,588
-
-
14,041
14,285
13,693
13,848
8,467
10,164
8,467
10,164
25,674
27,037
22,160
24,012
12
67,705
75,505
49,457
50,134
Total liabilities
50,138
45,066
33,866
33,835
Equity attributable to owners of the Company
Share capital
Retained earnings
Fair value adjustment reserve
Capital reserve
Translation reserve
13
19,680
19,680
19,680
19,680
23,193
20,817
13,864
13,833
8,978
6,778
-
-
230
230
322
322
(3,882)
(4,423)
-
-
48,199
43,082
33,866
33,835
1,939
1,984
-
-
50,138
45,066
33,866
33,835
Non-controlling interests
Total equity
Net assets
Cash flows from operating activities
Profit before tax
Adjustments:
(Reversal of impairment loss)/impairment loss on trade and other receivables and contract assets
(Written back)/allowance for obsolete and slow-moving inventories, net
Fixed assets written off
Gain on disposal of fixed assets, net
Gains on disposal of investment property
Depreciation of fixed assets
Depreciation of investment property
Depreciation of right-of-use assets
Depreciation of land use rights
Dividend income from investment securities
Net fair value gain on investment securities
Finance expenses
Interest income
Share of results of associates
Translation difference
3,092
3,490
(123)
39
(439)
573
-
5
(3)
(11)
-
(637)
1,486
1,599
-
1
1,067
1,019
43
43
(330)
(310)
(131)
(133)
1,667
2,257
(45)
(62)
(843)
(1,326)
571
453
Operating cash flows before working capital changes
(Increase)/decrease in:
Inventories
Trade receivables
Other receivables
Contract assets
Deposits, prepayments and advance payment to suppliers
Amounts due from associates (trade)
6,012
7,000
293
(1,442)
2,227
(1,914)
548
(242)
4,325
(2,366)
(579)
227
(52)
375
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
Group
FY2025
FY2024
Unaudited
Audited
S$'000
S$'000
Increase/(decrease) in:
Trade payables
Contract liabilities
Other payables
Accruals and other liabilities
9,933
12,985
(523)
(726)
(129)
321
(432)
2,355
Cash flows generated from operations
Interest paid
Income taxes paid
Income taxes refunded
Interest income
Net cash flows generated from operating activities
21,623
16,573
(1,063)
(1,635)
(655)
(457)
138
5
45
62
20,088
14,548
Cash flows from investing activities
Proceeds from disposal of fixed assets
Proceeds from disposal of investment securities
Purchase of fixed assets
Purchase of investment securities
Dividends received
Net cash flows generated from/(used in) investing activities
8
12
1,246
-
(620)
(231)
-
(471)
1,083
523
1,717
(167)
Cash flows from financing activities
Dividends paid on ordinary shares
Dividends paid to non-controlling interest of a subsidiary
Amount due from associates (non-trade)
Fixed deposits pledged to bank
Repayment of trust receipts
Proceeds from trust receipts
Payment of principal portion of lease liabilities
Interest paid on lease liabilities
Proceeds of term loans
Repayment from term loans
(201)
-
(37)
(60)
1
-
-
200
(41,915)
(41,994)
30,209
31,059
(912)
(883)
(604)
(622)
5,464
25,035
(10,404)
(26,817)
(18,399)
(14,082)
Net cash flows used in financing activities
Net increase in cash and cash equivalents
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
3,406
299
(35)
(21)
6,470
6,192
9,841
6,470
Cash and cash equivalents consist of the following :
Cash and bank balances
Fixed deposits
9,634
6,012
207
458
9,841
6,470
-
CONDENSED INTERIM STATEMENTS OF CHANGES IN EQUITY
Equity,
total
S$'000
Attributable to owners of the Company
Equity attributable to owners of the Company, total
Share capital
Retained earnings
Fair value adjustment reserve
Capital reserve
Translation reserve
Non-controlling interests
S$'000
S$'000
S$'000
S$'000
S$'000
S$'000
S$'000
45,066
43,082
19,680
20,817
6,778
230
(4,423)
1,984
2,595
112
2,603
2,577
138
2,603
-
-
-
2,577
-
-
-
(403)
2,603
-
-
-
-
541
-
18
(26)
-
Group
Balance at 1 January 2025
Profit for the year
Other comprehensive income
Foreign currency translation
Net fair value gain on equity instrument at FVOCI
Total comprehensive income
Contributions by and distribution to owners
Dividends on ordinary shares
Dividends paid to
non-controlling interest of a subsidiary
Balance at 31 December 2025
5,310 5,318 - 2,577 2,200 - 541 (8)
(201)
(201)
-
(201)
-
-
-
-
(37)
-
-
-
-
-
-
(37)
50,138
48,199
19,680
23,193
8,978
230
(3,882)
1,939
40,611
38,397
19,680
17,826
4,977
230
(4,316)
2,214
2,821
94
1,600
2,991
94
1,600
-
-
-
2,991
-
-
-
201
1,600
-
-
-
-
(107)
-
(170)
-
-
Balance at 1 January 2024
Profit for the year
Other comprehensive income
Foreign currency translation
Net fair value gain on equity instrument at FVOCI
Total comprehensive income
Contributions by and distribution to owners
Dividends paid to
non-controlling interest of a subsidiary
Balance at 31 December 2024
Company
Balance at 1 January 2025
Profit for the year, representing total comprehensive income for the period
Contributions by and distribution to owners
Dividends on ordinary shares
Balance at 31 December 2025
33,835
33,835
19,680
13,833
-
322
-
-
232
232
-
232
-
-
-
-
(201)
(201)
-
(201)
-
-
-
-
33,866
33,866
19,680
13,864
-
322
-
-
4,515 4,685 - 2,991 1,801 - (107) (170)
(60)
-
-
-
-
-
-
(60)
45,066
43,082
19,680
20,817
6,778
230
(4,423)
1,984
Balance at 1 January 2024
34,046
34,046
19,680
14,044
-
322
-
-
Loss for the year, representing total comprehensive income for the period
(211)
(211)
-
(211)
-
-
-
-
Balance at 31 December 2024
33,835
33,835
19,680
13,833
-
322
-
-
-
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
1. Corporate Information
Far East Group Limited (the "Company") is incorporated and domiciled in Singapore and whose shares are publicly traded on the Catalist of the Singapore Exchange. These condensed interim consolidated financial statements as at and for the six months and the financial year ended 31 December 2025 comprise the Company and its subsidiaries (collectively, the "Group"). The principal activities of the Company consist of manufacturing and trading of refrigeration parts, servicing of cold rooms, construction and installation of commercial and industrial cold rooms and all other incidental business of refrigeration.
The principal activities of the Group are disclosed in Note 4 on segment and revenue information below.
2. Basis of Preparation
The condensed interim financial statements for the six months and the full year ended 31 December 2025 have been prepared in accordance with SFRS(I) 1-34 Interim Financial Reporting issued by the Accounting Standards Council Singapore. The condensed interim financial statements do not include all the information required for a complete set of financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance of the Group since the last interim financial statements for the 1H2025.
The accounting policies adopted are consistent with those of the previous financial year which were prepared in accordance with Singapore Financial Reporting Standards
(International) ("SFRS(I)s"), except for the adoption of new and amended standards as set out in Note 2.1.
The condensed interim financial statements are presented in Singapore dollar which is the Company's functional currency.
The financial information contained in this announcement has neither been audited nor reviewed by the auditors.
The latest audited annual financial statements were not subject to an adverse opinion, qualified opinion or disclaimer of opinion.
2.1. New and amended standards adopted by the Group
The Group has adopted all the new and amended standards which are relevant to the Group and are effective for annual financial periods beginning on or after 1 January
2025. The Group did not have to change its accounting policies or make retrospective adjustments as a result of adopting those standards.
2.2. Use of judgements and estimates
The preparation of the Group's consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities at the end of the reporting period. Uncertainty about these assumptions and estimates
could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in the future periods.
-
Judgements made in applying accounting policies
-
a Income taxes
Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of future taxable income. Given the Group's regional business relationships and the nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax provisions already recorded.
The Group establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the relevant tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective Group's domicile.
Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the timing and level of future taxable profits together with future tax planning strategies.
As at 31 December 2025, the carrying amounts of the Group's tax recoverable, provision for income tax, deferred tax assets and deferred tax liabilities amounted to S$31,000 (31 December 2024: $60,000), S$141,000 (31 December 2024: $296,000), S$1,373,000 (31 December 2024: S$1,412,000) and S$3,166,000 (31 December
2024: S$2,588,000) respectively.
-
b Assessment of classification of unquoted investment security
The Group holds 30% equity interest in its unquoted investment security. The Group does not participate in the operating and financing decision process, fails to obtain representation on the board of directors and is unable to obtain timely or adequate financial information required to apply equity method. Based on these facts and circumstances, management concludes that the Group cannot exert a significant influence in its unquoted investment security and classifies this investment as financial instrument carried at fair value through other comprehensive income.
- Key sources of estimation uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period are discussed below. The Group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur.
-
b Assessment of classification of unquoted investment security
- a Impairment of non-financial assets
An impairment exists when the carrying value of an asset or cash-generating unit exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. The value in use calculation is based on a discounted cash flow model. The cash flows are derived from the forecast for the next five years. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash inflows and the growth rate used for extrapolation purposes.
As at 31 December 2025, the carrying amounts of the Company's investments in subsidiaries were S$20,570,000 (31 December 2024: S$20,570,000).
-
a Income taxes
- b Expected credit losses ("ECLs") on trade receivables and contract assets
The Group uses a provision matrix to calculate ECLs on trade receivables and contract assets. For trade receivables and contract assets, the provision rates are based on days past due for groupings of various customer segments that have similar loss patterns.
The provision matrix is initially based on the Group's historical observed default rates. The Group will calibrate the matrix to adjust historical credit loss experience with forward-looking information. At every reporting date, historical default rates are updated and changes in the forward-looking estimates are incorporated.
The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions. The Group's historical credit loss experience and forecast of economic conditions may also not be representative of customer's actual default in the future.
As at 31 December 2025, the carrying amounts of the Group's and Company's trade receivables and contract assets, including balances with subsidiaries and associates totaled S$23,830,000 (31 December 2024: S$30,207,000) and S$1,671,000 (31 December 2024: S$3,366,000) respectively.
2.2.2c Fair value measurement of unquoted equity securityThe Group has an investment in unquoted equity security which is measured at FVOCI. This requires the Group to engage external valuation expert to perform the valuation.
This financial instrument is categorised as Level 3 in the fair value hierarchy where certain pricing inputs to value these instruments are unobservable. The valuation involves the application of unobservable inputs such as discount for lack of marketability used by the external valuation expert.
As at 31 December 2025, the carrying amount of the unquoted equity security amounted to S$11,525,000 (31 December 2024: S$8,775,000).
2.2.2d Revenue from engineering contractsEngineering contracts revenue is recognised over time by reference to the Group's progress towards completing the performance obligation in the contract. The measure of progress is based on the costs incurred to date as a proportion of total costs expected to be incurred up to the completion of the performance obligation within the contract.
Significant assumptions are required to estimate the total contract costs that will affect the stage of completion and revenue recognised. The estimates are based on the past experiences and knowledge of the project director and the quantity surveyor team.
Contract revenue comprises the initial amount of revenue agreed in the contract and variations in contract work to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is subsequently resolved.
As at 31 December 2025, the carrying amounts of the Group's contract assets arising from engineering contracts amounted to S$8,154,000 (31 December 2024: S$12,479,000).
-
Seasonal operations
The Group's businesses are not affected significantly by seasonal or cyclical factors during the financial period.
-
Segment and revenue information
For management purposes, the Group is organised into business units based on their products and services, and has three reportable operating segments as follows:
Wholesale and Distribution segment represents the sale of the Group's own manufactured products, multinational agency products and other distribution models of the Group;
Manufacturing segment mainly comprises the manufacturing and sale of the Group's comprehensive range of energy-efficient heat-exchangers, compressor racks and condensing units; and
Engineering Solutions segment represents the provision of system design and installation of various sustainable engineering solutions and applications for various industries.
4.1. Reportable segments
Group
Wholesale and Distribution
Manufacturing
Engineering Solutions
Elimination
Total
$'000
$'000
$'000
$'000
$'000
FY2025
FY2024Revenue
50,631
22,032
34,281
(17,747)
89,197
Cost of sales
(40,534)
(18,074)
(29,515)
17,747
(70,376)
Gross profit
10,097
3,958
4,766
18,821
Revenue
51,814
20,470
46,808
(20,349)
98,743
Cost of sales
(42,869)
(16,752)
(40,864)
20,349
(80,136)
Gross profit
8,945
3,718
5,944
18,607
Primary geographical markets4.2. Disaggregation of Revenue
Segment
Wholesale and Distribution
Manufacturing
Engineering Solutions
Elimination
Total
2H2025
2H2024
2H2025
2H2024
2H2025
2H2024
2H2025
2H2024
2H2025
2H2024
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Singapore
4,968
4,804
1,375
1,091
15,187
24,067
(1,753)
(1,453)
19,777
28,509
Malaysia
10,050
12,261
336
612
-
8
(2,551)
(4,928)
7,835
7,953
Indonesia
6,598
5,634
-
-
-
-
(2,324)
(2,013)
4,274
3,621
Hong Kong/Macau/People's
Republic of China
3,174
3,167
12,651
11,950
-
-
(1,585)
(1,550)
14,240
13,567
Indo-China*
1,282
761
-
-
346
235
(661)
(199)
967
797
Others
869
26
9
15
-
-
-
-
878
41
26,941
26,653
14,371
13,668
15,533
24,310
47,971
54,488
Revenue contribution from a single region is disclosed separately when it exceeds 5% of the Group's revenue respectively.
Major revenue streamsTiming of transfer of goods or servicesSale of goods
26,172
24,987
14,371
13,668
153
218
(8,876)
(10,302)
31,820
28,571
Project installation and maintenance services
-
-
-
-
2,246
2,328
2
159
2,248
2,487
Engineering contracts revenue
769
1,666
-
-
13,134
21,764
-
-
13,903
23,430
26,941
26,653
14,371
13,668
15,533
24,310
47,971
54,488
At a point in time
26,172
24,987
14,371
13,668
2,399
2,546
(8,876)
(10,302)
34,066
30,899
Over time
769
1,666
-
-
13,134
21,764
2
159
13,905
23,589
26,941
26,653
14,371
13,668
15,533
24,310
47,971
54,488
* relates to Vietnam, Myanmar and Cambodia
Primary geographical markets4.2. Disaggregation of Revenue
Segment
Wholesale and Distribution
Manufacturing
Engineering Solutions
Elimination
Total
FY2025
FY2024
FY2025
FY2024
FY2025
FY2024
FY2025
FY2024
FY2025
FY2024
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Singapore
8,768
10,132
2,268
2,524
33,203
46,435
(2,941)
(3,430)
41,298
55,661
Malaysia
20,308
23,435
711
1,222
-
8
(6,050)
(9,601)
14,969
15,064
Indonesia
11,701
9,999
-
-
-
-
(4,494)
(3,469)
7,207
6,530
Hong Kong/Macau/People's
Republic of China
6,594
5,393
19,036
16,709
-
-
(3,247)
(2,630)
22,383
19,472
Indo-China*
2,111
2,242
-
-
1,078
365
(1,015)
(1,219)
2,174
1,388
Others
1,149
613
17
15
-
-
-
-
1,166
628
50,631
51,814
22,032
20,470
34,281
46,808
89,197
98,743
Revenue contribution from a single region is disclosed separately when it exceeds 5% of the Group's revenue respectively.
Major revenue streamsTiming of transfer of goods or servicesSale of goods
49,199
49,798
22,032
20,470
380
507
(17,747)
(20,349)
53,864
50,426
Project installation and maintenance services
-
-
-
-
3,873
3,970
-
-
3,873
3,970
Engineering contracts revenue
1,432
2,016
-
-
30,028
42,331
-
-
31,460
44,347
50,631
51,814
22,032
20,470
34,281
46,808
89,197
98,743
At a point in time
49,199
49,798
22,032
20,470
4,253
4,477
(17,747)
(20,349)
57,737
54,396
Over time
1,432
2,016
-
-
30,028
42,331
-
-
31,460
44,347
50,631
51,814
22,032
20,470
34,281
46,808
89,197
98,743
* relates to Vietnam, Myanmar and Cambodia
4.3. A breakdown of sales is as follows:-Group
FY2025
FY2024
Change
S$'000
S$'000
+ve/(-ve)
41,226
44,255
(6.8%)
Sales reported for the first half year
216
664
(67.5%)
Operating profit after tax before deducting non-controlling interest reported for the first half year
47,971
54,488
(12.0%)
Sales reported for the second half year
2,379
2,157
10.3%
Operating profit after tax before deducting non-controlling interests reported for the second half year
-
Financial assets and financial liabilities
Group
Company
31 Dec 2025
31 Dec 2024
31 Dec 2025
31 Dec 2024
S$'000
S$'000
S$'000
S$'000
Financial Assets
Financial assets at FVOCI
Unquoted equity security
11,525
8,775
-
-
Financial assets at FVPL
Held for trading investment securities
486
1,601
486
1,601
Financial assets carried at amortised cost
Trade and other receivables, deposits, amounts due from subsidiaries and associates (trade and non-trade), fixed deposits and cash and bank balances
27,133
26,486
12,788
11,644
39,144
36,862
13,274
13,245
Financial Liabilities
Trade and other payables, trust receipts, accruals and other liabilities, dividend payable, amounts due to subsidiaries (trade and non-trade), lease liabilities and term loans
63,144
70,844
49,012
49,881
-
Profit before taxation
-
Significant items
The Group's total comprehensive income for the financial period is derived after charging/(crediting) the following:
Group
Unaudited
Unaudited
Unaudited
Audited
2H2025
2H2024
FY2025
FY2024
S$'000
S$'000
S$'000
S$'000
Interest income
Finance expenses
(Reversal of impairment loss)/impairment loss on trade and other receivables and contract assets
(Written back)/allowance for obsolete and slow-moving inventories, net
Fixed assets written off
Gain on disposal of investment property
Gain on disposal of fixed assets, net
Depreciation of fixed assets
Depreciation of right-of-use assets
Depreciation of land use rights
Dividend income from investment securities
Share of results of associates
Net fair value loss/(gain) on held for trading investment securities
Foreign currency loss/(gain), net
(17)
(34)
(45)
(62)
774
1,197
1,667
2,257
(103)
354
(123)
39
(459)
484
(439)
573
-
1
-
5
-
(637)
-
(637)
(6)
-
(3)
(11)
737
768
1,486
1,599
544
506
1,067
1,019
21
23
43
43
6
(310)
(330)
(310)
444
(381)
(843)
(1,326)
1
(118)
(131)
(133)
186
(239)
535
(227)
-
Related party transactions
Sale and purchase of goods and services
In addition to the related party information disclosed elsewhere in the condensed interim financial statements, the following significant transactions between the Group and related parties took place at terms agreed between the parties during FY2025:
Group
Company
S$'000
S$'000
Income
Sales of goods to subsidiaries
Sales of goods to associates
Sales of goods to affiliated companies
Management fee income from subsidiaries
Rental income from a subsidiary
Dividend income from a subsidiary
Dividend income from an associate
Royalty fee income from a subsidiary
-
18,110
1,610
-
2,376
-
-
1,878
-
540
-
568
-
664
-
176
Expenses
Purchases from subsidiaries
Loan interest paid to subsidiaries
-
2,385
-
15
-
Significant items
-
Taxation
The Group calculates the period income tax expense using the tax rate that would be applicable to the expected total annual earnings. The major components of income tax expense in the condensed interim consolidated statement of profit or loss are as follows:
Group
2H2025
2H2024
FY2025
FY2024
S$'000
S$'000
S$'000
S$'000
Current income tax expense
202
454
288
446
Deferred income tax expense relating to origination and reversal of temporary differences
127
143
209
223
329
597
497
669
Company
FY2025
FY2024
S$'000
S$'000
-
Dividends
Declared and paid during the financial year:
Dividends on ordinary shares:
Final exempt (one-tier) for 2024 dividend of 0.18 cents per share (FY2024: Nil)
201
-
-
Investment securities
Financial assets at fair value through other comprehensive income comprise the following:
Group
31 Dec 2025
31 Dec 2024
S$'000
S$'000
Unquoted equity security
- Guangzhou Fayi Trading Co., Ltd.
11,525
8,775
The Group has elected to measure the unquoted equity security at FVOCI due to the Group's intention to hold the equity instruments for long-term appreciation.
Financial assets at fair value through profit or loss comprise the following:Group
31 Dec 2025
31 Dec 2024
S$'000
S$'000
Held for trading investment securities (quoted) on:
486
1,601
-Bonds
9.1 Fair value measurementThe Group categorises fair value measurements using a fair value hierarchy that is dependent on the valuation inputs used as follows:
Level 1 - Quoted prices (unadjusted) in active market for identical assets or liabilities that the Group can access at the measurement date; Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 - Unobservable inputs for the asset or liability.
Fair value measurements that use inputs of different hierarchy levels are categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The following table presented the assets measured at fair value:
Group
Level 1
Level 2
Level 3
Total
S$'000
S$'000
S$'000
S$'000
31 December 2025
Financial assets
FVOCI investments
At fair value through profit or loss- held for trading investment securities (quoted)
-
-
11,525
11,525
486
-
-
486
31 December 2024
Financial assets
FVOCI investments
At fair value through profit or loss- held for trading investment securities (quoted)
-
-
8,775
8,775
1,601
-
-
1,601
-
Fixed assets
In FY2025, the Group acquired assets amounting to S$620,000 (FY2024: S$231,000) and disposed of assets amounting to S$5,200 (FY2024:S$1,000).
-
Fixed asset held for sale
Group
31 Dec 2025
31 Dec 2024
S$'000
S$'000
63
61
Property
As at 31 December 2025, the Group committed to a plan to sell its leasehold building (the "Property") which was owned by Far East Enterprises (K.L.) Sdn. Bhd, a wholly-
owned subsidiary of the Group. The Property has been reclassified from fixed asset to fixed asset held for sale amounting to S$63,000 (FY2024: S$61,000).
-
Borrowings
Repayable in one year or less, or on demand
Repayable after one year
Total borrowings
Group
Company
As at
31 Dec 2025
As at
31 Dec 2024
As at
31 Dec 2025
As at
31 Dec 2024
As at
31 Dec 2025
As at
31 Dec 2024
As at
31 Dec 2025
As at
31 Dec 2024
Secured
Secured
Unsecured
Unsecured
Secured
Secured
Unsecured
Unsecured
S$'000
S$'000
S$'000
S$'000
S$'000
S$'000
S$'000
S$'000
18,207
20,082
369
1,058
12,265
11,897
369
1,058
9,201
10,675
-
369
8,997
10,558
-
369
27,408
30,757
369
1,427
21,262
22,455
369
1,427
Details of any collateral
The above borrowings are secured by (i) legal mortgages over the leasehold land and buildings; (ii) corporate guarantee by the Company; (iii) leased assets and (iv) a personal guarantee by a director of a subsidiary. Total borrowings include trust receipts, leases liabilities under hire purchase and term loans.
-
Share Capital
Group and Company
As at 31 Dec 2025 As at 31 Dec 2024
No. of shares
'000 S$'000
No. of shares
'000 S$'000
Issued and fully paid ordinary shares
Beginning and end of interim period 111,462 19,680 111,462 19,680
The total number of issued shares (excluding treasury shares) was 111,462,000 as at 31 December 2025 and 31 December 2024.
There was no change in the Company's issued and paid up share capital from 1 January 2025 to 31 December 2025.
The Company does not hold any treasury shares or convertible instruments as at 31 December 2025 and 31 December 2024.
The Company's subsidiaries do not hold any shares in the Company as at 31 December 2025 and 31 December 2024.
-
Net assets value
Group
Company
As at
31 Dec 2025
As at
31 Dec 2024
As at
31 Dec 2025
As at
31 Dec 2024
Net asset value attributable to owners of the Company (S$'000)
48,199
43,082
33,866
33,835
Number of ordinary shares ('000)
111,462
111,462
111,462
111,462
Net asset value per share (cents)
43.2
38.7
30.4
30.4
- Subsequent events
There are no known subsequent events which have led to adjustments to this set of interim financial statements.
-
Judgements made in applying accounting policies
OTHER INFORMATION REQUIRED BY CATALIST RULE APPENDIX 7C
-
A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. The review must discuss any significant factors that affected the turnover, cost, and earning of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors. It must also discuss any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on.
Review of Financial Performance
Revenue
Revenue decreased by S$9.5 million or 9.7%, from S$98.7 million in FY2024 to S$89.2 million in FY2025, primarily owing to reduced contribution from Engineering Solutions segment.
Revenue by Business SegmentGroup
Change
Change
2H2025
Contribution
2H2024
Contribution
+ve/(-ve)
+ve/(-ve)
S$'000
%
S$'000
%
S$'000
%
19,812
41.3%
18,280
33.5%
1,532
8.4
Wholesale and Distribution
12,658
26.4%
11,964
22.0%
694
5.8
Manufacturing
15,501
32.3%
24,244
44.5%
(8,743)
(36.1)
47,971
100%
54,488
100%
(6,517)
(12.0)
Engineering Solutions
Revenue by Business SegmentGroup
Change
Change
FY2025
Contribution
FY2024
Contribution
+ve/(-ve)
+ve/(-ve)
S$'000
%
S$'000
%
S$'000
%
35,897
40.2%
35,437
35.9%
460
1.3
Wholesale and Distribution
19,051
21.4%
16,724
16.9%
2,327
13.9
Manufacturing
34,249
38.4%
46,582
47.2%
(12,333)
(26.5)
89,197
100%
98,743
100%
(9,546)
(9.7)
Engineering Solutions
Revenue from Wholesale and Distribution segment increased by S$0.5 million in FY2025 as compared with FY2024 mainly contributed by larger demand from Indonesia region.
Revenue from Manufacturing segment increased by S$2.3 million in FY2025 as compared with FY2024 mainly driven by the larger demand for condensing units in 2H2025.
Revenue from Engineering Solutions segment decreased by S$12.3 million in FY2025 as compared with FY2024 mainly due to ongoing projects approached completion stages and lower order book.
Gross profit and gross profit margin
The Group's gross profit increased by S$0.2 million or 1.2%, from S$18.6 million in FY2024 to S$18.8 million in FY2025. The gross profit margin increased by 2.3 percentage points, from 18.8% in FY2024 to 21.1% in FY2025. This increase is mainly due to write-back of allowance for obsolete and slow-moving inventories during FY2025 and adjustments in products' selling prices.
Other operating income
Other operating income decreased by S$0.7 million, from S$3.7 million in FY2024 to S$3.0 million in FY2025 due to (i) a gain on disposal of investment property of S$0.6 million in FY2024 which was absent in FY2025; and (ii) lower miscellaneous income by S$0.1 million.
Administrative expenses
Administrative expenses decreased by S$0.3 million, from S$12.1 million in FY2024 to S$11.8 million in FY2025. This was mainly due to decrease in (i) staff welfare of S$0.2 million; and (ii) depreciation of fixed assets by S$0.1 million.
Reversal of Impairment loss on trade and other receivables and contract assets
The reversal of impairment loss on trade and other receivables and contract assets of approximately S$123,000 is a net result of (i) reversal of impairment loss on trade and other receivables and contract assets of S$180,000; and (ii) impairment loss on trade and other receivables of S$57,000.
Other operating expenses
Other operating expenses increased by S$0.5 million due to foreign exchange losses in FY2025.
Share of results of associates
The share of profit from associates was contributed by (i) Comfresh Group Holdings Pty Ltd of S$0.4 million; (ii) Fayi Technology Inc. of S$0.3 million; and (iii) Yealea Industry Co., Ltd of S$0.1 million.
Finance expenses
Finance expenses decreased by S$0.6 million due to reduction of borrowings and lower interest rates during FY2025.
Tax expense
Tax expense of S$0.5 million comprises (i) current year tax provision of S$0.3 million; and (ii) deferred tax expenses recognised in FY2025 of S$0.2 million.
Profitability
The Group made a post-tax profit of S$2.6 million mainly due to the better profit margin and lower finance costs.
Review of Financial Position
Non-current assets
Non-current assets increased by S$1.4 million, from S$60.1 million as at 31 December 2024 to S$61.5 million as at 31 December 2025.
The increase was mainly due to an increase in (i) the fair value of investment securities of S$2.7 million; and (ii) investment in associates of S$0.2 million. This was partially offset by a decrease in (i) fixed assets of S$0.9 million; and (ii) right-of-use assets of S$0.6 million.
Current assets
Current assets decreased by S$4.0 million, from S$60.4 million as at 31 December 2024 to S$56.4 million as at 31 December 2025.
The decrease was mainly due to decrease in (i) trade receivables and contract assets of S$6.4 million; (ii) investment securities of S$1.1 million; (iii) other receivables of S$0.7 million; and (iv) inventories of S$0.1 million. The decrease was partially offset by an increase in (i) cash and bank balances of S$3.6 million; and (ii) advance payment to suppliers of S$0.7 million.
Current liabilities
Current liabilities decreased by S$6.5 million, from S$48.5 million as at 31 December 2024 to S$42.0 million as at 31 December 2025.
The decrease was mainly due to decrease in (i) term loans of S$3.2 million; (ii) trade payables of S$2.6 million; (iii) contract liabilities of S$0.5 million; (iv) accruals and other liabilities of S$0.5 million; (v) lease liabilities of S$0.2 million; (vi) provision for income tax of S$0.2 million; and (vii) other payables of S$0.1 million. The decrease was partially offset by an increase in trust receipts of S$0.8 million.
Non-current liabilities
Non-current liabilities decreased by S$1.3 million, from S$27.0 million as at 31 December 2024 to S$25.7 million as at 31 December 2025.
The decrease was mainly due to decrease in (i) term loans of S$1.7 million; and (ii) lease liabilities of S$0.2 million. This was partially offset by an increase in deferred tax liabilities of S$0.6 million.
Equity
Total equity increased by S$5.0 million, from S$45.1 million as at 31 December 2024 to S$50.1 million as at 31 December 2025.
The increase was mainly due to was mainly due to (i) profit for the year of S$2.5 million; (ii) increase in fair value adjustment reserve of S$2.2 million; and (iii) translation reserve of S$0.5 million. This was partially offset by dividend paid of S$0.2 million.
Review of Cash Flow Statement
Net cash flows generated from operating activities amounted to S$20.1 million in FY2025, mainly due to (i) operating cash inflows before working capital changes of S$6.0 million; (ii) positive working capital changes of S$15.6 million; and (iii) income taxes refunded of S$0.1 million. This was partially offset by (i) interest paid of S$1.1 million; and (ii) income taxes paid of S$0.7 million.
Net cash generated from investing activities amounting to S$1.7 million in FY2025 was mainly due to (i) proceeds from disposal of investment securities of S$1.2 million; and (ii) dividend received of S$1.1 million. This was partially offset by purchase of fixed assets of S$0.6 million.
Net cash used in financing activities amounted to S$18.4 million in FY2025. This was mainly due to (i) net repayment of trust receipts of S$11.7 million; (ii) net repayment of term loans of S$5.0 million; (iii) repayment of lease liabilities and interest of S$1.5 million; and (iv) dividends paid of S$0.2 million.
-
Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results.
Not applicable. No forecast or prospect statement has been previously disclosed.
-
A commentary at the date of the announcement of the competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months.
The Group continues to operate in a challenging and fast evolving business landscape. Project delays and postponements remain common as customers adopt a more cautious investment stance amid ongoing global uncertainties. Global macro uncertainty and prolonged global trade tensions continue to disrupt pricing structures, increase raw material costs and intensify industry wide competition.
The Wholesale & Distribution segment faces margin pressure from higher import costs and regional price competition. However, there may be pockets of opportunities in the developing countries with political stability after elections were held in the past year.
The Manufacturing segment is challenged by sluggish Chinese demand and the industry faces oversupply. The Group is cautiously hopeful of a gradual recovery of the Chinese economy and this is reflected in improved sales in China.
The Engineering Solutions segment faces short-term tender softness in FY2026 with many major projects awarded in the past year. Nevertheless, there are signs of demand improvement in FY2026 as customers prioritise sustainability-driven retrofits and the Group expects the Engineering Solutions segment to ride on the wave of construction projects.
The Group continues to reinforce cost controls, enhance operational agility, and prioritise innovation in energy efficient technologies to position the Group for medium term growth as market conditions stabilise.
-
Dividend
-
Current Financial Period Reported on 31 December 2025
Any dividend declared for the current financial period that is reporting?
Name of dividend
Final
Dividend type
Cash
Dividend amount per share (in cents)
0.18 cents per ordinary share
Tax rate
Tax exempt (one-tier)
-
Corresponding Period of the Immediately Preceding Financial Year
Any dividend declared for the corresponding period of the immediately preceding financial year?
Name of dividend
Final
Dividend type
Cash
Dividend amount per share (in cents)
0.18 cents per ordinary share
Tax rate
Tax exempt (one-tier)
-
Date Payable
To be announced, subject to shareholders' approval at the Annual General Meeting of the Company to be convened.
-
Record Date
To be announced, subject to shareholders' approval at the Annual General Meeting of the Company to be convened.
-
Current Financial Period Reported on 31 December 2025
Any dividend declared for the current financial period that is reporting?
-
If no dividend has been declared/recommended, a statement to the effect and reason(s) for the decision.
Not applicable.
-
Interested Person Transaction ("IPT")
The Group does not have a general mandate from shareholders for interested person transactions pursuant to Rule 920(1)(a)(ii) of the Catalist Rules. There are no interested person transactions of S$100,000 or more during the financial period under review.
-
Issuer to confirm that it has procured undertaking from all its directors and executive officers in the format set out in Appendix 7H under Rule 720(1) of the Catalist Rules.
The Board of Directors confirms that the Company has procured undertakings from all its directors and executive officers in the format set out in Appendix 7H under Rule 720(1) of the Catalist Rules.
-
Disclosures on acquisition or sale of shares pursuant to Rule 706A of the Catalist Rules
On 2 December 2025, the Company announced that its dormant indirect 93.88%-owned subsidiary of the Company incorporated in Malaysia, will be undergoing a members' voluntary winding up (the "Voluntary Winding Up"). Save as disclosed above, there were no acquisition or realisation of shares thereby resulting (i) in a change in the shareholding percentage in any of the subsidiary or associated company of the Group or (ii) an entity becoming or ceasing to be (as the case may be) a subsidiary or associated company of the Group during 2H2025. Neither was there any incorporation or striking off of subsidiary or associated company by the Group during 2H2025.
- Disclosure of person occupying a managerial position in the issuer or any of its principal subsidiaries who is a relative of a director or chief executive officer or substantial shareholder of the issuer pursuant to Rule 704(10) of the Catalist Rules. If there are no such persons, the issuer must make an appropriate negative statement.
-
A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. The review must discuss any significant factors that affected the turnover, cost, and earning of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors. It must also discuss any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on.
Pursuant to Rule 704(10) of the Catalist Rules, the Company confirms that during FY2025 and up to the date hereof, there has not been any person occupying a managerial position in the Company or any of its principal subsidiaries who is a relative of a director or chief executive officer or substantial shareholder of the Company.
BY ORDER OF THE BOARD Far East Group LimitedLoh Mun Yew Leng Chee Keong
CEO and Executive Director COO and Executive Director 27 February 2026