Annual Report 2025

JB FOODS LIMITED

ANNUAL REPORT 2025

01

JB FOODS LIMITED | ANNUAL REPORT 2025

1. CORPORATE PROFILE

   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
2. OUR
   BUSINESS
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   

3. OUR PRODUCTS

   
   
   
   
   
   
   
   
   
   
   
   

4. CHAIRMAN'S STATEMENT

   
   
   

07 CEO'S STATEMENT

09 FINANCIAL HIGHLIGHTS

1. EXECUTIVE OFFICERS

2. SUSTAINABILITY REPORT

1. CORPORATE INFORMATION

   
   
   

2. FINANCIAL CONTENTS

02

JB FOODS LIMITED | ANNUAL REPORT 2025

JB Foods Limited ("JB Foods" or the "Group") started as a processor of wet cocoa beans to dry cocoa beans in the 1980s. Today, it has grown to be one of the major cocoa ingredient producers in the world, with a total processing capacity of 210,000 metric tonnes of cocoa beans equivalent per year, with two factories located at the Port of Tanjung Pelepas, a free trade zone in Johor, Malaysia, and in the Maspion Industrial Estates in Gresik, Indonesia, approximately 30 km from the Surabaya port.

The Group's principal activities comprise the production and sale of cocoa ingredient products, namely cocoa mass, cocoa butter and cocoa powder.

JB Foods has been listed on the Mainboard of the Singapore Exchange Securities Trading Limited since 2012.

JB FOODS LIMITED | ANNUAL REPORT 2025

PRINCIPAL BUSINESS

JB Foods Limited's core business is in the production and sale of cocoa ingredient products, namely cocoa mass, cocoa butter and cocoa powder.

Over the years, through its strong focus on product quality and development, the Group has honed its capability to develop and customise cocoa ingredient products to meet the varying and exacting requirements of globally diversified customers.

Complying with the highest standards of food safety, the Group ensures that its quality products consistently meet or exceed its customers' expectations. With its technical know-how, product expertise and proprietary blending methods, the Group has gained widespread recognition

INDONESIA

In 2014, the Group exercised its call option to acquire an 80% equity interest in PT Jebe Koko, a cocoa bean processing facility. This facility is located in the Maspion Industrial Estate in Gresik, Indonesia, approximately 30 km from the Surabaya port, and focuses on processing raw cocoa beans sourced domestically in Indonesia.

AWARDS AND CERTIFICATIONS AWARDS

• Certification of Excellence, Industry Excellence Award for the consumer product sector 2007/2008

• Malaysian Commodities Industry Award 2011 for Best Processing Plant

• Best Cocoa Grinder Award 2012

  CERTIFICATIONS

  from its global customers.

  The Group's products are sold primarily under the "JB COCOA" brand name to a worldwide customer base ranging from international trade houses to end users such as food and beverage and confectionery manufacturers.

  PRODUCTION FACILITIES MALAYSIA

  The Group's first cocoa processing facility is located in the Port of Tanjung Pelepas, a strategic logistics hub within a free trade zone in Johor, Malaysia. This has enabled the Group to significantly reduce land logistics costs, as well as delivery time, while closely monitoring the shipment of its containers.

• Halal

• Kosher

• HACCP

  MALAYSIA

  150,000 MT

  COCOA BEANS EQUIVALENT PER YEAR

  INDONESIA

  60,000 MT

  COCOA BEANS EQUIVALENT PER YEAR

  
  
  

• Rainforest Alliance

  • FSSC 22000

  • Fairtrade

  • Non-GMO Project

COCOA BUTTER

We produce natural and deodorised cocoa butter, which is used in the production of chocolates.

COCOA MASS

We offer various cocoa mass, based on cocoa bean origins to meet customer requirements.

COCOA POWDER

We produce a wide range of cocoa powder of varying pH value, application and fat content, used to make cocoa beverages,

as well as flavourings and coatings of food and beverage, and confectionary

products.

• Mr. Lim Tong Lee • Chairman

STRONG FINANCIAL PERFORMANCE AMID VOLATILITY

FY2025 marked another significant milestone for the Group, with revenue surging to over USD1.65 billion, amidst strong headwinds, including the unprecedented and volatility of cocoa prices, global bean supply shortage and uncertainty in the global geo-political situation. Our prudent hedging strategies and robust risk management contributed to this resilient performance. In recognition of this strong outcome, the Board is proposing a final dividend of 2.05 Singapore cents per share, following the interim dividend of 0.20 Singapore cent paid in September 2024.

As the world evolves and stakeholder expectations continue to rise, our commitment remains unwavering: we prioritize integrity, resilience, and

long-term value creation for all, ensuring a sustainable future for our business, communities,

and the environment. "

STRATEGY ANCHORED IN RESILIENCE AND RESPONSIBILITY

To position JB Foods for long-term resilience and growth, our strategy is built on five core pillars: regulatory readiness, sustainability, climate resilience, operational excellence, and human capital development. We are strengthening supply chain traceability and compliance frameworks in anticipation of global regulations like the European Union Deforestation Regulation ("EUDR"), while deepening partnerships to drive sustainability impact. Our Climate Transition Plan aligns with international reporting standards, and our investments in automation, digitalisation, and origin-based processing - such as the upcoming Ivory Coast facility - reinforce operational agility. At the heart of this strategy is our people; through comprehensive training and young talent development, we are cultivating future-ready teams capable of driving innovation, accountability, and long-term value for all stakeholders.

COMMITMENT TO GOVERNANCE AND LONG-TERM VALUE CREATION

The Board of Directors continues to uphold high standards of governance, risk oversight, and stakeholder engagement. As we move forward, we remain vigilant and adaptable, ready to respond to evolving regulatory, economic, and environmental dynamics. Our focus remains on delivering long-term value to shareholders while fulfilling our corporate responsibilities to people, the planet, and society.

ACKNOWLEDGEMENT

On behalf of the Board, I extend our deepest appreciation to our CEO, Mr. Tey How Keong, the senior management team, our employees, and partners for their commitment and support. I would like to specially thank all existing shareholders for your continued support in the recent fully subscribed rights issue of approximately Singapore Dollar (SGD) 19 million which completed in early June 2025. Together, we will continue to strengthen JB Foods' position as a trusted and sustainable global cocoa processor.

LIM TONG LEE

Independent Director and Chairman

- Tey How Keong -Chief Executive Director

DELIVERING STRONG RESULTS THROUGH AGILITY AND DISCIPLINE

Against a backdrop of volatile cocoa markets, supply constraints, and economic uncertainty, the Group delivered a historical record high in revenue of over USD1.65 billion, an improvement of 211% increase in EBITDA to USD76 million, and strong positive operating cash flow of USD131 million in the fifteen months financial period ended 31 March 2025. These achievements reflect the strength of our integrated business model, operational agility, and disciplined execution in our hedging and risk management strategy.

The change in our financial reporting period from

31 December to 31 March, resulting in an extended 15-month financial period, reflects our strategic move to align the financial year-end with our internal financial and operational cycles, thereby enhancing management effectiveness.

DRIVING PROGRESS ACROSS PILLARS OF GROWTH

Aligning with the strategic pillars shared in the Chairman's Statement, our management team has translated strategy into a series of tangible actions to enhance resilience, compliance, and growth.

"We stayed focused, agile, and accountable - translating

strategy into real-world impact across our operations, sustainability efforts, and people development.

At JB Foods, we see every challenge as a catalyst for

innovation and progress."

• Regulatory Readiness: In anticipation of the EUDR, we are fast-tracking full traceability systems and supplier engagement across key cocoa origins. Digital tools are being deployed for deforestation risk assessment. Due diligence systems and related documentation are being established for compliance by end-2025.

• Sustainability: Our customer-linked programs in Indonesia, Ivory Coast, Nigeria, and Ecuador are being scaled to uplift farmer livelihoods, promote agroforestry, and extend child labour monitoring and remediation systems (CLMRS). Performance metrics are integrated into reporting frameworks to enhance transparency and partner accountability.

• Climate Resilience: We have formalised a Climate Transition Plan aligned with TCFD and ISSB's IFRS standards, initiating Scope 1 and 2 emission reductions through solar adoption and energy efficiency in our plants, while beginning Scope 3 mapping to address upstream risks.

• Operational Excellence: Our focus on process automation and digitalisation is driving improvements in efficiency, quality control, and real-time visibility across manufacturing. Inventory and payment cycle optimisation contributed to healthy cash flows. The upcoming Ivory Coast facility will enhance supply chain flexibility and market access.

  CEO'S STATEMENT

  • Human Capital Development: We place strategic emphasis on people development as a key enabler of transformation. In 2025, we launched a comprehensive internal training program to upskill teams across functions and geographies. Our structured young talent development initiatives aim to build the next generation of leaders equipped to drive innovation and sustainability.

LOOKING AHEAD

We expect the cocoa market to remain volatile due to weather disruptions in West Africa, geopolitical tensions, and shifting trade dynamics. While this presents challenges to processing margins, we are adapting proactively leveraging data, strengthening supplier relationships, and recalibrating risk management strategies.

At JB Foods, we see change as a catalyst for innovation. Our teams remain focused on execution, adaptability, and staying ahead of regulatory and market trends. As we deepen our presence in origin countries and strengthen sustainability partnerships, we are positioning the Group to meet evolving stakeholder expectations and industry benchmarks.

APPRECIATION

I would like to thank our Board of Directors for their strategic oversight, our employees for their unwavering commitment, and our customers and partners for their continued trust. Together, we are building a more resilient and responsible future for JB Foods.

TEY HOW KEONG

Chief Executive Officer

Note 1: The current reporting period spans 15 months due to the Group's change in financial year-end from 31 December to 31 March

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

The Group changed its financial year-end from

31 December to 31 March to better align its financial reporting with the Group's internal management and operational cycle. As a result, the current financial period covers 15 months from 1 January 2024 to 31 March 2025 ("FY2025"), while the comparative figures are for the 12-month period from 1 January 2023 to 31 December 2023. Accordingly, the amounts presented in the financial statements for the current period are not entirely comparable with those of the previous financial year.

The Group's revenue increased by USD1,061.7 million or 178.2%, rising from USD595.8 million to USD1,657.5 million for the FY2025 was primarily driven by higher average selling prices. In line with the increase in revenue, the Group's cost of sales rose by USD997.7 million or 179.6%, from USD555.5 million to USD1,553.2 million mainly attributable to the surge in cocoa bean prices. During the financial period, the Group recognised unrealised fair value mark-to-market losses of USD2.8 million (as compared to unrealised fair value mark-to-market losses of USD12.3million in FY2023) on derivative financial instruments related to hedging activities for forward sales and purchase contracts. The realisation of these fair value gains or potential losses will depend on the prevailing cocoa market prices at the respective settlement dates over the next twelve months. Accordingly, the Group's gross profit increased by USD64.0 million or 158.8%, from USD40.3 million to USD104.3 million.

Other losses amounted to USD4.7 million, mainly arising from foreign exchange losses on the Group's forward foreign exchange contracts denominated in Great British Pound (GBP) and Euro (EUR), due to the strengthening of these currencies against the US Dollar (USD). These foreign exchange differences are part of the Group's hedging mechanism to manage currency exposure, with corresponding exchange gains embedded in the cost of sales and forward sales and purchase contracts.

Selling and distribution expenses increased by USD6.3 million or 88.7%, from USD7.1 million to USD13.4 million. On a pro-rated 12-month basis, these expenses increased by USD3.6 million or 50.7%, from USD7.1 million to USD10.7 million, in line with the increase in shipment volume.

Finance costs increased by USD19.6 million or 126.5%, from USD15.5 million to USD35.1 million. On a pro-rated 12-month basis, finance costs increased by USD12.6 million or 81.2%, from USD15.5 million to USD28.1 million. This increase was driven by higher utilisation of trade bills as a results of elevated cocoa bean prices, increased interest rates, and additional financing costs incurred in relation to the Sukuk Wakalah.

As a result of the above factors, the Group's profit after tax increased by USD21.2 million, rising from USD1.9 million to USD23.1 million. For comparability, based on a pro-rated 12-month period for FYE 2025, the Group's profit after tax increased by USD16.6 million or 873.7%, from USD1.9 million to USD18.5 million.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

The Group's non-current assets decreased by USD1.5 million as at 31 March 2025 was primarily due to the reclassification of an investment property with net book value of USD4.8 million to non-current assets held for sale, the depreciation and amortisation charges amounting to USD10.1 million on property, plant and equipment, investment properties, intangible assets, and right-of-use assets. The decreased was partially offset by capital expenditure in Ivory Coast.

The Group's current assets rose by USD316.2 million or 52.1%, increasing from USD607.1 million as at 31 December 2023 to USD923.3 million as at 31 March 2025. This increase was mainly attributable to higher inventories and trade and other receivables, driven by elevated cocoa bean prices.

The Group's current liabilities increased by USD245.3 million or 47.6%, from USD514.9 million as at 31 December 2023 to USD760.2 million as at 31 March 2025 was mainly due to higher trade and other payables, in line with the higher cocoa bean prices and longer supplier credit term.

The Group's equity attributable to owners of the parent increased by USD22.0 million or 12.4%, mainly driven by the Group's profit of USD23.1 million generated during the year.

CONSOLIDATED STATEMENT OF CASH FLOWS

Note 1: The current reporting period spans 15 months due to the Group's change in financial year-end from 31 December to 31 March

The Group's cash and cash equivalent increased by USD16.8 million mainly due to the following:

The net cash generated from operating activities of USD131.1 million was mainly attributable to:

1. Net cash generated from operating cash flows of USD76.7 million;

2. Net cash inflows in changes in working capital of USD54.4 million arising from the inflows from the increased in the trade and other payables;

3. Partially offset with the outflows to the increase in inventories, trade and other receivables, derivative financial instruments and prepayments.

The net cash used in investing activities of USD13.8 million was mainly due to the capital expenditure incurred mainly in the construction-in-progress and machinery in the Ivory Coast factory.

The net cash used in financing activities of USD100.1 million was mainly due to:

1. Proceeds from issuance of Sukuk Wakalah of USD55.3 million;

2. Repayment of obligations under leases of USD3.6 million;

3. Increase in fixed deposits pledged of USD0.8 million;

4. Dividend paid of USD0.4 million;

5. Interest paid of USD28.3 million;

6. Partially offset with the withdrawal in restricted cash of USD7.1 million; and

7. Net repayment of borrowings of USD129.3 million.

   BOARD OF DIRECTORS

   LIM TONG LEE

   INDEPENDENT DIRECTOR AND CHAIRMAN

   Mr. Lim Tong Lee was appointed to the Board on 1 July 2023 as an Independent and Non-Executive Director. He also serves as an Independent Non-Executive Director of Nam Cheong Limited, a company listed on the Main Board of the Singapore Stock Exchange, and Harrisons Holdings (Malaysia) Berhad, listed on the Main Market of Bursa Malaysia.

   With over 30 years of experience in private equity, corporate finance, and auditing, Mr. Lim has held various senior leadership roles throughout his career. Previously, he served as Head of Corporate Finance at KGI Fraser Securities Pte Ltd. He has also held key positions at Venstar Capital Management Pte Ltd, AmWater Investments Management Pte Ltd, and AmFraser Securities Pte Ltd.

   Mr. Lim is a Fellow Member of the Association of Chartered Certified Accountants (FCCA) and a member of the Malaysian Institute of Accountants (MIA) and the Malaysian Institute of Certified Public Accountants (MICPA).

   In addition to serving as Chairman of the Board, Mr. Lim is currently the Chairman of the Remuneration Committee, and a member of the Audit Committee and the Nominating Committee.

   
   
   
   
   
   

   DR GOI SENG HUI

   NON-INDEPENDENT, NON-EXECUTIVE DIRECTOR AND VICE CHAIRMAN

   Dr Goi Seng Hui was appointed to the Board on 1 March 2013 as Non-Independent, Non-Executive Director and Vice Chairman. He is the Executive Chairman of Tee Yih Jia Group and three other SGX Mainboard-listed companies- namely, GSH Corporation Limited, PSC Corporation Ltd and Tat Seng Packaging Group Ltd.

   Dr Goi also serves as Non-Executive and Non-Independent Director of Catalist-listed Tung Lok Group Restaurants (2000) Ltd. A self-made entrepreneur, Dr Goi has diverse business interests in Singapore, China, Malaysia, Japan, India, Australia, New Zealand, United States, Canada, Europe and other parts of the world.

   Dr Goi was appointed Singapore's Non-Resident Ambassador to the Federative Republic of Brazil on 20 April 2018. He was conferred an Honorary Doctorate from Singapore University of Technology and Design (SUTD) in 2021.

   He is a strong supporter of trade and serves as the Honorary council Member of the Singapore Chinese Chamber of Commercial & Industry and Honorary Life President of the Life President of the Enterprise 50 club, Dr Goi is the vice Chairman of international Enterprise Singapore's "Network China" Steering Committee, Council Member of the Singapore Jiangsu Cooperation Council and Singapore-Shandong Business Council. He is also Senior Consultant to Su Tong Science and Technology Park in China.

   Dr Goi serves in various community and grassroots organisations. He is the Honorary Chairman of Ulu Pandan Citizens" Consultative Committee, Dunman High School Advisory Committee, Singapore Futsing Association and Nanyang Gwee Clan Association. In addition, he is the Honorary President of Kong Hwa School Alumni, Honorary Chairman of Tan Kah Kee Foundation.

   In 2014, Dr Goi was conferred the Public Service Star (Bar), or BBM (L), by the President of Singapore for his contributions to the community, and the Panglima Gemilang Darjah Kinabalu (PGDK), which carries the title of Datuk, from the Head of State of Sabah, for his social and business contributions to Kota Kinabalu as well as the Long Service Award by Singapore's People's Action Party in 2015. In 2022, he received the

   BOARD OF DIRECTORS

   PAP Commendation Medal for his contributions to the People's Action Party and

   country. He also received a Long Service Award for 25 years of service to the Ministry of Social and Family Development in 2023.

   He was lauded for his contributions and success as an overseas Chinese by People's Tribune Magazine in Beijing, China in 2017 and was conferred the Businessman of the Year Award" by Singapore's Business Times in 2014.

   One of SUTD's pioneer Board of Trustees, Dr Goi was appointed Patron for Advancement to help steer the University 's continued fundraising efforts as well as garner partners and donors who have a heart for nurturing the next generation of leaders and innovators.

   In addition to serving as Vice Chairman of our Board, Dr Goi is currently a member of the Audit Committee and the Remuneration Committee.

   
   
   

   TEY HOW KEONG

   EXECUTIVE DIRECTOR AND CHIEF EXECUTIVE OFFICER

   Mr Tey was appointed to the Board on 3 January 2012 and is responsible for the overall strategic, management and business development of the Group.

   With over 25 years of experience in the cocoa industry, Mr Tey began his career in November 1988 as a Sales Manager at JB Cocoa Group Sdn Bhd. In August 1989, he was appointed Director of Guan Chong Cocoa Manufacturer Sdn Bhd, where he played a pivotal role in establishing its cocoa processing plant in Pasir Gudang. He remained in this role until October 2003.

   In May 2000, Mr Tey established JB Cocoa Sdn Bhd, and under his leadership, the Group has grown steadily to become a key player in the cocoa ingredients industry, serving both domestic and international markets.

   Mr Tey graduated in 1988 with a Bachelor of Business Administration from the University of Toledo, College of Business Administration, USA.

   Mr Tey is currently a member of the Nominating Committee and Risk Management Committee.

   
   
   

   GOH LEE BENG

   EXECUTIVE DIRECTOR

   Mdm Goh was appointed to the Board on 4 May 2012 and is responsible for procurement of raw materials and managing the Group's cocoa trading activities. Her key responsibilities include sourcing cocoa beans and cocoa ingredients, overseeing the Group's cocoa hedging book, monitoring global cocoa market trends, and marketing cocoa butter.

   With over 25 years of experience in the cocoa industry, Mdm Goh began her career in November 1989 as an Executive at Guan Chong Cocoa Manufacturer Sdn Bhd, where she was involved in logistics, operations, and inventory management. She joined JB Cocoa Sdn Bhd in January 2003 and was appointed as its Executive Director in August 2003, focusing on cocoa bean procurement and supply chain management.

   Mdm Goh graduated in 1989 with a Bachelor of Business Administration from the University of Toledo, College of Business Administration, USA.

   
   
   BOARD OF DIRECTORS

   SHO KIAN HIN

   INDEPENDENT DIRECTOR

   Mr Sho Kian Hin, Eric was appointed on the Board as Independent Director on 23 July 2024. Mr Sho brings with him over 25 years of professional experience in auditing, financial reporting, regulatory compliance, management consultancy, and corporate development. He has been actively involved in various financial and corporate activities, including debt and equity financing, pre-IPO fund raising, mergers and acquisitions, as well as group restructuring and reorganisation exercises.

   He currently serves as an Independent Director on the boards of several companies listed on the Singapore Exchange (SGX), including Brook Crompton Holdings Ltd. (Mainboard), Choo Chiang Holdings Ltd., Figtree Holdings Ltd., and OUE Healthcare Ltd. (Catalist Board). He is also an Independent Director of ISDN Holdings Ltd., which is dual-listed on the Mainboard of both the SGX and the Hong Kong Stock Exchange.

   Mr Sho is a Fellow Member of the Association of Chartered Certified Accountants (FCCA) and a member of the Singapore Institute of Directors (SID).

   Mr Sho is currently the Chairman of the Audit Committee and the Nominating Committee, and a member of the Remuneration Committee and Risk Management Committee.

   
   
   

   LOO WEN LIEH

   ALTERNATE DIRECTOR TO DR GOI SENG HUI

   Mr Loo Wen Lieh was appointed on 23 May 2013 as an Alternate Director to Dr Goi Seng Hui. Mr Loo is the Group Financial Controller of the Tee Yih Jia (TYJ) Group and a director of Tee Yih Jia Food Manufacturing Pte Ltd, a leading frozen foods manufacturer in Singapore with distribution to more than 80 countries. In addition to investments in various industries, including property, technology and F&B, the TYJ Group also has significant stakes in several other Singapore public listed companies.

   From December 2002 to May 2007, Mr Loo was the Chief Financial Officer and Corporate Secretary of AGVA Corporation Limited and Hengxin Technology Limited where he was responsible for their Initial Public Offerings, financial, tax and other related matters. He was a manager with KPMG where he started his career from July 1996 to November 2002, during which he left KPMG for one year from March 2000 to February 2001 to be the co-founder for a technology start-up.

   Mr Loo graduated with a Bachelor of Accountancy from Nanyang Technological University in 1996 and is a Fellow Chartered Accountant of Singapore, an ACA of the Institute of Chartered Accountants in England and Wales, and an ASEAN Chartered Professional Accountant.

   Mr Loo is currently a member of Risk Management Committee.

   
   
   EXECUTIVE OFFICERS

   ONG KIM TECK

   HEAD OF GROUP PROJECT AND PROCUREMENT

   Mr. Ong Kim Teck joined the Group in April 2002 as a Project Manager, where he was responsible for overseeing the construction of the processing facility at the Port of Tanjung Pelepas. His role included plant design, equipment installation, commissioning, and ongoing maintenance activities.

   In July 2004, he was appointed as Factory Manager, and in April 2011, he was promoted to Operations Manager of the Group. In 2016, he was redesignated as Group Engineering Manager, and in January 2023, he was promoted to head of Group Project and Procurement taking charge of the Group's expansion and improvement projects.

   Mr Ong graduated with a Bachelor of Engineering with Honours (School of Mechanical Engineering) from the University of Liverpool, United Kingdom in 1997 and obtained a Commonwealth Executive Master of Business Administration (CeMBA) from the Wawasan Open University in 2018.

   SAW POH CHIN

   HEAD OF GROUP SALES AND MARKETING

   Ms. Saw has over 20 years of experience in the cocoa industry. She is responsible for marketing the Group's products in international markets and leads the Group's product development initiatives.

   She joined the Group in June 2002 as Quality and Research & Development Manager. In December 2004, she was reassigned as Technical Support Manager, and later as Technical Sales Manager in January 2007. In September 2010, she was re-designated as the head of Group Sales, Marketing & R&D Manager.

   Ms Saw graduated with a Bachelor of Science in Agricultural Sciences from the University of Nebraska, USA in 1998 and a Master of Science from the same university in 1999.

   WONG WING HONG

   CHIEF FINANCIAL OFFICER

   Mr Wong joined the Group in August 2014 as Corporate Planning Manager and currently serves as the Chief Financial Officer. He is responsible for overseeing the Group's corporate, treasury, tax, finance, and accounting functions.

   Prior to joining the Group, Mr. Wong was a manager with BDO Singapore from November 2010 to August 2014 and Nexia Singapore from May 2007 to August 2010. During his time in professional services, he was actively involved in assurance and audit engagements, Initial Public Offerings (IPOs), Reverse Takeover (RTO) transactions, and other corporate projects.

   Mr Wong completed his Association of Chartered Certified Accountant (ACCA) in 2010 and is a member of both the ACCA and the Institute of Singapore Chartered Accountants (ISCA).

   Mr Wong is currently a member of Risk Management Committee.

   SUSTAINABILITY REPORT

   1. BOARD STATEMENT

      JB Foods Limited ("JB Foods" or the "Company"), together with its subsidiaries (collectively known as the "Group"), reaffirm our commitment to sustainability with the publication of this sustainability report ("Report"). For this Report, we provide insights into the way we do business, while highlighting our sustainability performance under the pillars of environmental, social, governance and economic performance (collectively referred to as ("Sustainability Factors"), and to provide readers with an accurate and meaningful overview on how we manage our sustainability issues.

      The Board of Directors ("Board") of the Group considered the Group's sustainability issues as part of its strategic formulation and business strategies, determined the material Sustainability Factors and overseen the management and monitoring of the material Sustainability Factors.

      This Report communicates our support towards the United Nations' Sustainable Development Goals ("SDGs"). As we collaborate closely with our stakeholders throughout the value chain, their inputs serve as the compass directing our sustainability initiatives towards prioritising our material Sustainability Factors. Below shows the interaction between our sustainability framework, material Sustainability Factors, stakeholders and the SDGs:

      GOVERNANCE

      ENVIRONMENT

      Cyber Security and Data Protection

      Customers Employees Regulators

      SOCIAL

      Ethics and Integrity

      Board Regulators Shareholders

      Our

      Sustainability Framework

      ECONOMIC

      Business Development and Expansion

      Board Regulators Employees Shareholders Financial Suppliers Institutions

      Customer Satisfaction

      Customers Employees Suppliers

      Sustainable Manufacturing

      Communities Shareholders

      Community Development

      Associations NGOs Communities Suppliers Customers

      Deforestation and Biodiversity

      Associations Regulators Communities Shareholders NGOs

      Human Rights, Workplace Diversity and Labour Standards

      Associations NGOs Employees Regulators

      Energy Consumption, Climate Change and GHG Emissions

      Associations Regulators Communities Shareholders NGOs

      Food Safety, Product Quality and Nutrition

      Customers Regulators Suppliers

      Waste Management and Optimisation

      Communities Regulators Shareholders

      Talent Development

      Employees

      Traceability and Sustainable Supply Chain Practices

      Associations NGOs Communities Regulators Customers Suppliers

      Safe Work and Well-Being

      Employees Regulators

      Water Stewardship

      Communities Regulators Shareholders

      
      
      SUSTAINABILITY REPORT

   2. SUSTAINABILITY PERFORMANCE AT A GLANCE

      A summary of our key sustainability performance in financial year ("FY") 2025 is as follows:

      Sustainability Pillar	Sustainability Metric	Sustainability Performance FY2025 FY2023
      Economic	Economic value generated1 (USD million)	1,657.49	598.27
      	Operating costs2 (USD million)	1,516.40	537.21
      	Employee benefits expenses (USD million)	17.96	14.00
      	Payments to providers of capital3 (USD million)	28.70	19.56
      	Income taxes to governments (USD million)	8.59	(0.44)
      	Percentage of customers who gave a positive feedback rating for overall satisfaction (%)	>95	>90
      Environmental	Water consumption intensity (m3/MT of cocoa bean processed)	2.02	2.03
      	Percentage of wastewater treated before releasing into waterways (%)	100	100
      	Non-hazardous waste generated intensity (MT/MT of cocoa bean processed)	0.106	0.106
      	Aggregated absolute greenhouse gas ("GHG") emissions (tCO2e)	82,111	65,3514
      	GHG emissions intensity (tCO2e/MT of cocoa bean processed)	0.40	0.404
      Social	Number of workplace fatalities	-	-
      	Number of high consequence work-related injuries5	-	-
      	Number of recordable work-related injuries	6	1
      	Number of recordable work-related ill health cases6	6	7
      	Average training hours per employee	12	14
      	Number of products return due to food safety issues raised by customers	-	3
      	Number of reported incidents of unlawful discrimination against employees7	-	-

      1Economic value generated includes revenue, other income and interest income, net of any unrealised gains.

      2Operating costs include cost of sales, selling and distribution costs, administrative expenses, other expenses, net of depreciation, (write back of)/ impairment loss and write-off of property, plant and equipment, right-of-use asset and employee-related costs.

      3Payments to providers of capital include interest payments made to providers of financing and dividends paid to shareholders (if any).

      4The figure is updated due to the refinement in methodology and related assumptions to improve data quality.

      5A high consequence work-related injury refers to an injury from which the worker cannot recover or cannot recover fully to pre-injury health status within six (6) months.

      6A work-related ill health case refers to a case with negative impacts on health arising from exposure to hazards at work.

      7An unlawful discrimination refers to an incident of discrimination whereby the relevant authority has commenced investigation and resulted in a penalty to a company.

      SUSTAINABILITY REPORT

      Sustainability Pillar	Sustainability Metric	Sustainability Performance FY2025 FY2023
      Governance	Number of cyber security breaches resulting in losses of business data	-	-
      	Number of incidents of serious offence8	-	-
      	Number of incidents of non-compliance with any applicable laws and regulations that resulted in significant fines9 or non-monetary sanctions	-	-

      During the FY from 1 January 2024 to 31 March 2025 ("FY2025" or "Reporting Period"), the Company changed its financial year end from 31 December to 31 March ("Change In Reporting Period"). The sustainability metrics for the Reporting Period is for a period of 15 months and thus not comparable with that disclosed for the prior reporting period.

      For further information, please refer to our announcement dated 24 January 2025 published on the Singapore Exchange Securities Trading Limited ("SGX-ST") website.

   3. OUR BUSINESS

      We are principally involved in the production and sale of cocoa ingredient products, comprising cocoa butter, cocoa powder, cocoa mass and cocoa cake, under the brand name of JB Cocoa. Our supply chain is detailed as follows:

      
      
      

      Farmers at producing countries

      Cocoa trees planting, cocoa pods harvest and fermentation

      Exporter at producing countries

      Dry cocoa beans quality control and exporting

      JB Cocoa factories

      Beans grinding and pressing for cocoa products

      Customers factories

      Customer's final products

      8A serious offence is defined as one that involves fraud or dishonesty involving an amount not less than SGD100,000 (equivalent to approximately USD$74,000) and is punishable by imprisonment for a term of not less than two (2) years, which is being or has been committed against a company by its officers or employees of the company.

      9An incident of non-compliance that excludes fraud or dishonesty.

      SUSTAINABILITY REPORT

   4. PHILOSOPHY, VISION AND CORE VALUES

      Philosophy

      A discerning, progressive and committed cocoa ingredients producer that inspires and enables creativity, honouring and caring for the communities and environment.

      Vision

      To be a World Class Premium Cocoa Manufacturer.

      Core Values

      At JB Foods, the bedrock of our current business methodologies lies in 'TRUST' which forms the acronyms of our five (5) Core Values 'Team-Minded', 'Respect', 'United', 'Sustainability' and 'Trustworthy'. 'TRUST' is the foundation of how we do our business today and their impact is evident across the various sections of this Report.

      T

      R

      U

      S

      T

      
      
      

      Team-Minded

      embrace collective thinking, encourage engagement and collaboration to spur one another to greater growth.

      Respect

      that is open, consistent and two-way.

      United

      one mind and heart, working to the best of our organizational interest as one team, dedicated to

      collectively delivering value and impact

      to all stakeholders.

      Sustainability

      that is founded on the pillars of economic,

      environmental and social.

      Trustworthy

      committed to a culture of trust and collective ownership, firmly believing that.

   5. REPORTING PERIOD AND SCOPE

      This Report covers the consolidated entities, as disclosed in our audited financial statements, for the financial year from 1 January 2024 to 31 March 2025. The Reporting Period spans 15 months which is aligned with the Change In Reporting Period and thus not comparable with that disclosed for the prior reporting period.

      For further information, please refer to our announcement dated 24 January 2025 published on the Singapore Exchange Securities Trading Limited ("SGX-ST") website.

   6. REPORTING FRAMEWORK

      This Report is prepared in accordance with Mainboard Listing Rules 711A and 711B of the SGX-ST. The Company prepared the Report with reference to the Global Reporting Initiative ("GRI") Standards for the Reporting Period. We use the GRI framework as it is an internationally recognised sustainability reporting standard that covers a comprehensive range of sustainability disclosures.

      As part of our continual efforts to align our sustainability reporting with relevant market standards, we mapped our sustainability efforts to the 2030 Agenda for Sustainable Development which is adopted by all United Nations Member States in 2015 ("UN Sustainability Agenda"). The UN Sustainability Agenda provides a shared blueprint for peace and prosperity for people and the planet, now and into the future. At its heart are the 17 SDGs, which form an urgent call for action by all countries - developed and developing - in a global partnership.

      SUSTAINABILITY REPORT

      Our climate-related disclosures are produced based on the 11 recommendations of Task Force on Climate-related Financial Disclosures ("TCFD"). Following the publication of the International Sustainability Standards Board ("ISSB") Standards, International Financial Reporting Standards ("IFRS") S1 and IFRS S2, we conducted a gap analysis against our existing TCFD reporting and are in the process of aligning our climate-related disclosures to the ISSB Standards. We are guided by the phased approach recommended by the Singapore Exchange Regulation in aligning our reporting of climate-related disclosures in accordance with ISSB Standards.

      We relied on internal data monitoring and verification to ensure accuracy for this Report. Internal review on the sustainability report is incorporated as part of our internal audit review cycle. We will work towards external assurance for our future sustainability reports subject to market trends and regulatory requirements.

   7. FEEDBACK

      We welcome feedback from all stakeholders on this Report. You may send related questions, comments, suggestions or feedback to our investor relations email account: responsiblebusiness@jbcocoa.com.

   8. STAKEHOLDER ENGAGEMENT

      As part of our stakeholder engagement process, we identify the key stakeholders relevant to our business, and they include entities or individuals that have an interest that is affected or could be affected by our activities. These key stakeholders include associations, Board, communities, customers, employees, financial institutions, non-governmental organisations ("NGOs"), national agencies and government bodies ("Regulators"), investors and shareholders ("Shareholders") as well as suppliers and service providers ("Suppliers").

      The concerns of key stakeholders are considered when formulating corporate strategies. We adopt both formal and informal channels of communication to understand these concerns and incorporate them in our corporate strategies to achieve mutually beneficial outcomes. We engage our key stakeholders through the following channels:

      Stakeholder	Engagement Channel	Engagement Frequency	Key Concern
      Associations		Ongoing
      Board	Board meetings	Quarterly
      Communities		Ongoing	Sustainable agricultural and business practices
      Customers		Ad hoc
      Employees		Ad hoc
      	Internal newsletters	Bi-monthly
      	Staff evaluation sessions	Half-yearly
      	Company Surveys	Annually

      • Community initiatives

      • Company's website (https://www.jbcocoa.com)

      • Events such as exhibitions, seminars and conferences

      • Traceability and sustainable supply chain practices

      • Climate change

      • Biodiversity

      • Human rights

      • Sustainable business performance

      • Corporate governance

      • Community initiatives

      • Company's website

      • Meetings

      • Events such as exhibitions

      • Email communications

      • Phone calls

      • Customer surveys

      • Product quality and reliability

      • Traceability and sustainable supply chain practices

      • Customer service standards

      • Email communications

      • Company activities

      • Equal employment opportunities

      • Occupational Safety and Health ("OSH")

      • Job security

      • Remuneration

      SUSTAINABILITY REPORT

      Stakeholder	Engagement Channel	Engagement Frequency	Key Concern
      Financial Institutions		Ad hoc
      NGOs		Ongoing
      Regulators	Consultations and briefings organised by key regulatory bodies such as Singapore Exchange and relevant government agencies/bodies	Ad hoc
      Shareholders		Annually
      		Half-yearly
      		Ongoing
      Suppliers		Ad hoc

      • Meetings

      • Email communications

      • Phone calls

      • Sustainable business performance

      • Community initiatives

      • Company's website

      • Traceability and sustainable supply chain practices

      • Climate change

      • Biodiversity

      • Human rights

      • Health, safety and environmental compliance

      • Corporate governance

      • Annual general meetings

      • Annual reports ("AR")

      • Sustainable business performance

      • Market valuation

      • Dividend payment

      • Corporate governance

      • Result announcements on SGXNet

      • Material announcements on SGXNet

      • Company's website

      • Business publications

      • Investor relations events

      • Meetings

      • Supplier evaluations

      • Feedback sessions

      • Email communications

      • Traceability and sustainable supply chain practices

      • Order volatility

   9. POLICY, PRACTICE AND PERFORMANCE REPORTING

      In line with our commitment to sustainability, a sustainability reporting policy ("SR Policy") covering our sustainability strategies, sustainability governance structure, materiality assessment and processes in identifying and monitoring material Sustainability Factors is put in place and serves as a point of reference in the conduct of our sustainability reporting. Under this SR Policy, we will continue to monitor, review and update our material Sustainability Factors from time to time, considering the feedback that we receive from our engagement with our stakeholders, organisational and external developments.

      1. Sustainability Governance Structure

         The Board is responsible for overseeing the Group's sustainability matters and is primarily supported by a Sustainability Steering Committee ("SSC") by virtue of delegation. As part of our continual efforts to upgrade the knowledge of our directors on sustainability reporting and to meet the requirement of listing rule 720 (7) of SGX-ST, we confirm that all our directors have attended one (1) of the Singapore Exchange Regulation's approved sustainability training courses.

         The SSC is led by our Chief Executive Officer ("CEO") and comprises senior management executives and managerial representatives from various functions. The SSC is further supported by selected employees from the key business units and corporate functions.

         SUSTAINABILITY REPORT

         Beside the SSC, the Board is also supported by the Audit Committee ("AC") on specific sustainability matters under their respective terms of reference. Our sustainability governance structure and the responsibilities of component parties are detailed as follows:

         Sustainability Governance Structure

         Board

         Working Committees