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(*extracted from Annual Report 2024)

Dear Shareholders,

I am pleased to present the Company's performance and operations report for FY2024. Over the past year, the global economy remained on a path of slow recovery, exhibiting continued divergence across regions. According to the International Monetary Fund (IMF) report released in January 2025, the global economy grew by 3.2% in 2024, a slight decline from 3.3% in 2023. While the US economy demonstrated resilience with a 2.8% growth rate, weaker-than-expected performance in other major economies posed challenges.

Singapore's economic recovery accelerated significantly, with GDP growth reaching 4.0% in 2024, up from 1.1% in 2023, as reported by the Ministry of Trade and Industry (MTI). Key sectors such as wholesale and retail transportation, along with warehousing, grew by 4.7%, surpassing the previous year's 1.4% growth.

Financial Performance

Despite various challenges, the Company maintained steady business growth, with improvements in key revenue segments. Our operating revenue for FY2024 reached S$172.9 million, reflecting a 3% decline from S$178.7 million in FY2023. However, this decrease was primarily due to the expiration of the Grandstand lease, which significantly impacted our property leasing segment. Revenue contributions were as follows:

• Integrated logistics: S$149.9 million, up 1% from FY2023.
• Ship repair, inspection, and steel structure construction: S$20.1 million, up 12% from FY2023.
• Property leasing: S$2.9 million, down 77% from FY2023, due to the Grandstand lease expiring in FY2023.

Despite the closure of Grandstand, the Company explored new business avenues to offset losses. Effective cost control measures led to a year-onyear profit increase, with net profit attributable to shareholders reaching S$5.5 million, surpassing FY2023's S$1.9 million.

Business Operations

According to the Maritime and Port Authority of Singapore (MPA), Singapore's port container throughput increased by 5.4% to 41.12 million TEUs in FY2024. Other cargo throughput grew by 5.2% to 622.27 million tons. Additionally, JTC Corporation's (JTC) warehouse rental index rose steadily, from 102.7 in Q1 to 104.2 in Q4, while the Company's bank interest costs declined due to a reduction in bank lending rates. Capitalizing on the industry's rebound and lower bank interest rates, the Company expanded into new business areas to boost revenue while actively working to reduce costs and expenses. As a result, overall operational efficiency in FY2024 improved compared to FY2023.

Cogent Holdings

Cogent Holdings (Cogent) navigated market challenges and achieved growth in key segments, including warehousing, container depots, automotive logistics, tank depots, engineering logistics, and empty container transportation in Singapore. Malaysian operations also rebounded, with warehousing, container depots, and land transportation showing improvements.

Notable achievements include:

• Successfully onboarding 25 new third-party logistics clients through persistent efforts.
• Securing contract renewals with key clients.
• Winning a significant third-party warehousing and logistics contract with a key client, commencing inbound and outbound transportation, loading and unloading, and inventory management services for chemicals and finished lubricating oils.
• Securing the transportation contract for a key client's Jurong Island production base, providing short-haul transport from the production site to PSA's Jurong Island terminal and cross-border logistics services between Singapore and Malaysia.
• Successfully onboarding six new NVOCC clients.
• Strengthening partnership with COSCO Shipping Container Lines, significantly increasing container depot volumes.
• Establishing a joint venture with Eastern, a container repair specialist, to enhance container inspection and repair services, improving overall customer satisfaction.

Cogent Malaysia

Cogent Malaysia successfully transitioned to self-operated warehousing while expanding into automotive logistics and cross-border transportation. The Nilai warehouse began offering third-party warehousing and logistics services, including inventory management, loading and unloading, and trailer logistics, moving beyond the traditional fixed-lease model to enhance profitability.

Throughout the year, Cogent Malaysia secured 168 new clients, while also renewing key contracts with long-standing partners.

Marine Engineering & Property Leasing

In 2024, COSCO SHIPPING Marine Engineering (Singapore) (CSME) strengthened its market position despite intense competition. CSME signed cooperation agreements with major clients like the Shanghai Salvage Bureau and launched new crewing services, contributing to significant revenue and profit growth.

Meanwhile, the Company's property leasing subsidiary Harington Property Pte. Ltd. (Harington) continued to provide stable rental income from its Suntec City office property.

Associated Companies

In 2024, the company's associated companies also achieved stable financial returns.

In Indonesia, PT Ocean Global Shipping Logistics (PT Ocean) worked closely with COSCO Shipping's fleet, actively visiting clients and expanding its market presence. The company successfully secured contracts for Midea's trailer clearance services in Jakarta, Surabaya, and Semarang, as well as BYD's vehicle customs clearance operations. Through cost-saving and revenue-boosting measures, PT Ocean achieved steady growth in both revenue and profit for the year.

Meanwhile, COSCO SHIPPING Bulk (Southeast Asia) Pte Ltd (“COSCO SHIPPING Bulk SEA”) overcame challenges related to its aging fleet, managing to achieve rental rates above the market average for its owned vessels. Additionally, COSCO SHIPPING Bulk SEA focused on expanding its chartering operations to further improve profitability.

Key Highlights Of FY2024

Jurong Island Logistics Hub Phase 2:
The first phase of the Cogent Jurong Island Logistics Hub (CJILH) was completed and commenced operations in 2021, featuring a general cargo warehouse, a dangerous goods warehouse, a tank container depot, a heavy container depot, and an empty container depot. After several years of operation, these facilities have reached near full capacity. Following extensive market research, the company has initiated the development of Phase 2 to better serve customer needs. This expansion will cover a site area of 25,000 square meters, with a total building area of 62,500 square meters, comprising additional warehouses, heavy container yards, and empty container yards. Upon completion, the CJILH will be the largest integrated logistics facility in the region, further strengthening the company's competitive edge. The expanded facility will enhance operational efficiency and provide comprehensive one-stop logistics services. A groundbreaking ceremony for Phase 2 was held in December 2024, and the company is actively finalizing preparatory work, with construction commencing in May 2025.

Joint Venture with Eastern:
Historically, Cogent's container depots relied on outsourced container repair services. To strengthen its in-house repair capabilities and expand business opportunities, Cogent formed a joint venture with its partner Eastern in 2024, establishing Cogent Eastern Precision Pte Ltd. This venture provides container inspection and repair services within Cogent's own depots. Operations commenced on June 1, 2024, and by year-end, a total of 15,880 containers had been repaired. This strategic move has enabled Cogent to achieve vertical supply chain integration, enhance control over its container repair operations, and improve overall customer satisfaction.

Capital Increase in Goldlead Supply Chain Development (Southeast Asia) Pte. Ltd. (Goldlead):
In March 2023, the Company partnered with Supply Fortune Limited, a subsidiary of COSCO Shipping Holdings, to establish Goldlead as a joint venture in Singapore. Supply Fortune Limited holds a 51% stake, while the Company owns the remaining 49%. The primary objective of this joint venture is to invest in and develop supply chain infrastructure across Southeast Asia. Since its inception, Goldlead has conducted extensive research on logistics, warehousing, trailers, port facilities, and e-commerce distribution projects in key markets, including Vietnam, Thailand, Singapore, Malaysia, and the Philippines. To strengthen its financial position and support future investments in the region's supply chain sector, the joint venture's shareholders agreed to a US$10 million capital injection, with Supply Fortune Limited contributing US$5.1 million and the Company contributing US$4.9 million. This capital enhancement has significantly improved Goldlead's capacity for investment and expansion.

Project Aquamarine Rights Issue:
To support the continued growth of its logistics business, the Company is actively exploring investment and development opportunities in logistics and supply chain infrastructure across Singapore and other Southeast Asian markets.

Additionally, the Company has faced the challenge of high-interest bank loans from previous years, which have impacted profitability.

To leverage its status as a listed company, secure lower-cost funding, reduce debt, and ensure long-term sustainable growth, the Company announced the Aquamarine Rights Issue Project in August 2024. This initiative proposes a 1:1 rights issue for all shareholders at an issue price of S$0.122 per share, reflecting a 10% discount on the prevailing market price. The Company's controlling shareholder, China Ocean Shipping Company Limited, has committed to voting in favor of the allotment proposal and subscribing to new shares proportionate to its existing 53.35% shareholding. Additionally, it has pledged to acquire any unsubscribed shares from other shareholders.

With an expected capital raise of approximately S$273 million, the funds will be allocated towards the construction of the second phase of the CJILH, partial repayment of bank loans, and further investments in logistics and supply chain infrastructure. The controlling shareholder is currently in the process of completing the necessary filing procedures for the rights issue project. Once finalized, the rights issue documents will be submitted to SGX-ST for review and approval at the Company's Extraordinary General Meeting (EGM).

Future Economic Outlook

According to the IMF's World Economic Outlook published in January 2025, the global economy is projected to expand by 3.3% in 2025, a slight increase from the 3.2% growth recorded in 2024. Despite ongoing fragmentation and economic uncertainties, inflation is expected to continue its downward trend. Meanwhile, Singapore's Ministry of Trade and Industry, in its forecast released on November 22, 2024, projects Singapore's economy to grow between 1% and 3% in 2025.

Future Direction And Business Prospects

The Company's long-term vision is to establish itself as a leading integrated logistics and supply chain services provider in Southeast Asia.

To achieve this, the Company will:

• Expand market reach in Singapore, Malaysia, and the wider region.
• Advance integration of Cogent's logistics operations in Malaysia, aiming to increase revenue and profitability from this market.
• Enhance synergies with COSCO SHIPPING enterprises.
• Ensure the successful execution of the CJILH Phase 2.
• Drive efficiency through cost optimization and strategic investments.

Additionally, the Company will work towards completing the Rights Issue as soon as possible to secure capital for sustainable development. Goldlead will continue to explore logistics and supply chain investment opportunities across the region.

In the maritime sector, CSME will strengthen its ship repair, inspection, and supply services, expanding its client base beyond COSCO SHIPPING vessels. Associated companies, including PT Ocean and COSCO SHIPPING Bulk SEA as well as SINOVNL, will intensify business development efforts to maximize shareholder value.

Conclusion

As we move into 2025, the Company remains committed to operational excellence, sustainable growth, and value creation for shareholders. Our ongoing projects, including CJILH Phase 2, Aquamarine Rights Issue and advancement of Cogent's logistics operations in Malaysia will be key drivers of future success.

On behalf of the Board of Directors and management, I would like to extend my sincere gratitude to our employees for their dedication and hard work, and to our shareholders and stakeholders for their continued trust and support.

Wang Shan He
Chairman and President