Cool Link turns to S$0.30 million interim loss as costs outpace modest 2.8% revenue growth

Bulletin Express08-26

Cool Link (Holdings) Limited released unaudited results for the six months ended 30 June 2026, showing a swing to a net loss of S$0.30 million from a profit of S$0.11 million in the prior-year period. Basic and diluted earnings per share reversed to a loss of 0.07 Singapore cents versus earnings of 0.03 cents a year earlier.

Revenue edged up 2.8% year on year to S$14.56 million, driven mainly by higher frozen-product sales. However, cost of sales climbed 9.6% to S$11.38 million, compressing gross profit by 17.9% to S$3.18 million and pulling gross margin down to 21.9% from 27.2%.

Operating expenses moved in opposite directions: selling and distribution costs fell 45.6% to S$0.60 million, but administrative and other operating expenses rose 20.8% to S$2.92 million, primarily on higher Hong Kong office rent and staff costs. Finance costs decreased 21.3% to S$0.19 million due to lower interest on bank borrowings.

Balance-sheet metrics remained stable. Cash and cash equivalents increased to S$8.23 million from S$7.17 million at year-end 2025, while net assets stood at S$20.73 million (31 December 2025: S$21.03 million). The quick ratio slipped to 1.89 times from 2.36 times, and the gearing ratio (total borrowings to equity) rose to 33.2% from 30.7% after total borrowings reached S$6.93 million.

Operating cash flow generated S$1.60 million (1H 2025: S$2.01 million), capex remained low at S$0.04 million, and no interim dividend was declared.

Management cited elevated operating expenses and geopolitical uncertainties, including the Russia-Ukraine conflict and potential interest-rate shifts, as headwinds, but reiterated plans to pursue brand promotion, product-quality initiatives and selective expansion to bolster long-term growth.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment