Cool Link FY 2025 loss narrows to S$1.62 million on steady revenue, lower costs

Bulletin Express03-27 21:26

Cool Link (Holdings) Limited (Cool Link, 08491) reported a sharply reduced net loss for the year ended 31 December 2025, supported by firm revenue and significant cost controls.

Financial highlights • Revenue dipped 0.34% year-on-year to S$29.36 million. • Gross profit fell 6.2% to S$6.96 million; gross margin eased to 23.7% from 25.2% in 2024. • Net loss attributable to shareholders narrowed 60.9% to S$1.62 million (2024: S$4.16 million). • Basic and diluted loss per share improved to 0.41 Singapore cent from 1.27 Singapore cents. • No dividend was declared.

Cost structure and profitability • Cost of sales rose 1.6% to S$22.41 million, reflecting higher inventory costs. • Selling and distribution expenses were cut 43.3% to S$1.68 million. • Administrative and other operating expenses decreased 12.8% to S$6.65 million. • Finance costs fell 22.8% to S$0.38 million, mainly due to lower bank-borrowing interest.

Segment performance • Singapore food & beverage operations contributed S$28.19 million revenue (96% of group total) with a segment loss of S$0.11 million. • Hong Kong food & beverage business generated S$0.75 million revenue and a S$0.14 million loss. • The newly launched footwear trading arm in mainland China delivered S$0.43 million revenue and a S$0.06 million profit.

Balance-sheet metrics • Total assets were S$36.63 million (2024: S$36.93 million). • Net assets stood at S$21.03 million, down from S$23.39 million a year earlier. • Total borrowings (bank loans and leases) inched up to S$7.48 million, lifting the gearing ratio to 35.5% from 31.5%. • Quick ratio declined to 1.71x (2024: 2.13x), reflecting higher short-term payables.

Capital actions • In April 2024 the company completed a rights issue, raising net proceeds of HK$98.10 million (approximately S$17.18 million). As at 31 December 2025, HK$34.19 million remained unutilised, earmarked for potential M&A and equipment upgrades by 2H 2026.

Outlook Management noted ongoing macro-economic headwinds in Singapore, Hong Kong and the PRC but remains focused on cost discipline, brand promotion and diversification, including further expansion of the footwear segment and potential acquisitions to enlarge revenue streams.

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