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Full Year Results Financial Statement And Related Announcement

Financials Archive

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Condensed Interim Financial Statements For the six months and full year ended 31 December 2024

Condensed consolidated statement of profit or loss

Condensed consolidated statement of comprehensive income

Review of performance of the Group

2H 2024

Group revenue for 2H 2024 totalled $90.7 million, 2% higher than 2H 2023. The increase in revenue was primarily attributed to higher earnings from Logistics and Ship repair and marine engineering segments. The drop in revenue from the Property management segment was mainly due to the expiration of the lease at The Grandstand on 31 December 2023. The increase in revenue from Ship repair and marine engineering segment was mainly due to increase in ship repair activities.

Gross profit increased by 23% from $18.3 million in 2H 2023 to $22.4 million in 2H 2024 mainly due to higher margins from Logistics and Ship repair and marine engineering segments as a result of lower operational costs.

Other income was higher by 115% from $1.3 million in 2H 2023 to $2.7 million in 2H 2024 mainly due to higher sundry income and settlement income.

Other gains and losses in 2H 2024 was higher than 2H 2023 mainly due to foreign exchange gains in 2H 2024.

Distribution and administrative expenses increased by 3% and 18% respectively in 2H 2024 compared to 2H 2023, primarily due to higher staff costs and resumption of normal business operations after the global pandemic.

Finance costs decreased by 16% to $5.6 million in 2H 2024 mainly due to lower borrowing costs resulting from decrease in principal amounts and lower interest rates.

Group profit before tax for 2H 2024 amounted to $4.4 million, as compared to $1.3 million in 2H 2023. The increase in profits was mainly due to higher gross profit, higher other income and lower finance costs, partially offset by higher distribution and administrative expenses and lower share of profit from associated companies.

FY 2024

Group revenue for FY 2024 totalled $172.9 million, 3% lower than FY 2023. The reduction of revenue was attributed to the decrease in revenue from the Property management segment.

Logistics activities accounted for approximately 87% of the Group's revenue in FY 2024. Revenue from logistics activities increased by 1% to $149.9 million. This increase was mainly attributed to a higher revenue contribution from warehousing and transportation management service in Singapore and Malaysia due to an increased volume of business activities from key customers.

Revenue from the Property management segment decreased by 77% or $9.6 million to $2.9 million mainly due to the expiration of the lease at The Grandstand on 31 December 2023.

The increase in revenue from Ship repair and marine engineering was driven by an increase in volume of ship repair jobs in Singapore.

Costs and Profitability

The cost of sales decreased by 6% while revenue decreased by 3% as compared to FY 2023, mainly due to the Property management segment, following the expiration of the lease at The Grandstand on 31 December 2023.

The gross profit margin increased slightly from 23% in FY 2023 to 25% in FY 2024 due to higher margins from the Ship repair and marine engineering and Property management segments.

The increase in other income was mainly due to increase in sundry income and settlement income, partly offset by a decrease in interest income. Interest income decreased by 50% in FY 2024 mainly due to decrease in interest rates for bank deposits and cash at bank.

Other gains and losses in FY 2024 was higher than FY 2023, primarily due to an increase in gain on the disposal of property, plant, and equipment, as well as foreign exchange gains.

Distribution and administrative expenses increased by 2% and 10% respectively mainly due to higher staff costs and resumption of normal business operations after the global pandemic.

Finance costs decreased by 16% to $11.5 million mainly due to lower borrowing costs resulting from decrease in interest rates.

Share of profit of associated companies of $4.9 million was contributed by the Group's 40% shareholdings in COSCO SHIPPING Bulk SEA, 40% shareholdings in PT. Ocean Global Shipping Logistics and 30% shareholdings in SINOVNL Company Limited. The decrease in share of profit of associated companies was mainly due to lower profit contribution from COSCO SHIPPING Bulk SEA.

Income tax expense remained relatively constant as compared to FY 2023.

In FY 2024, the net profit attributable to equity holders amounted to $5.5 million, a significant increase compared to the net profit of $1.9 million in FY 2023. The increase was mainly attributed to the lower finance costs and higher other income.

Balance Sheet
(31 December 2024 vs 31 December 2023)

Cash and cash equivalents decreased from $66.7 million to $47.6 million mainly due to the repayment of borrowings, interest payments and acquisition of property, plant and equipment. This was partially offset by the net cash provided by operating activities. Please refer to Consolidated Statement of Cash Flows for more details.

Trade and other receivables increased to $48.1 million (compared to $47.2 million on 31 December 2023). The rise in trade and other receivables is primarily attributed to amounts generated from the operational business activities.

Property, plant and equipment increased by $6.1 million to $657.6 million mainly due to additions, offset by depreciation expense recognised in FY 2024.

Trade and other payables have decreased by $10.7 million to $26.7 million, primarily due to more settlement of payables.

Total borrowings decreased by $7.8 million to $254.0 million mainly due to the repayment of bank borrowings and lease liabilities.

Shareholder's equity increased by $9.4 million to $496.5 million mainly due to currency translation gains and increased profit for the year.

Cash Flow

Net cash provided by operating activities for FY 2024 was $34.3 million. This was mainly due to operating profits generated during the financial year. Please refer to Consolidated Statement of Cash Flows for details.

Net cash used in investing activities for FY 2024 was $14.8 million. This was mainly due to payments for property, plant and equipment and further investment in an associated company, offset by dividend income received from associated companies.

Net cash used in financing activities for FY 2024 was $38.8 million. This was mainly due to the repayment of bank borrowings and lease liabilities and interest payments.

Commentary

In 2024, the unstable global geopolitical situation and high interest rates (albeit at a reduced rate from 2023) have had an impact on global economic recovery. In January 2025, the International Monetary Fund released the World Economic Outlook, predicting divergent and uncertain global growth. Growth rate is projected at 3.3% both in 2025 and 2026, below the historical average of 3.7%. Against such background, global economic conditions will remain challenging.

In April 2024, Cogent Holdings Pte. Ltd. ("Cogent"), a wholly-owned subsidiary of the Company, entered into a joint venture agreement with Eastern (1961) Holding Pte. Ltd., to carry out the business of providing container body repairs, as well as container body maintenance and modifications for customers in Singapore and other Southeast Asian countries.

In June 2024, Goldlead Supply Chain Development (Southeast Asia) Limited ("Goldlead"), a joint venture between the Company and an affiliated company, Supply Fortune Limited ("SF"), increased its share capital from US$10,000 to US$10.01 million by the allotment and issuance of additional shares to the Company and SF based on their capital contributions in proportion to their respective shareholdings of 49% and 51% in Goldlead. With such increased capital, Goldlead will have better financial capabilities to invest in logistics supply chain businesses.

On 16 August 2024, the Company announced a proposed renounceable non-underwritten rights issue of up to 2,239,244,954 new ordinary shares in the capital of the Company (the "Rights Shares") at an issue price of S$0.122 for each Rights Share, on the basis of one (1) Rights Share for every one (1) existing ordinary share in the capital of the Company held by the shareholders of the Company (the "Shareholders") (the "Rights Issue"). The Company's controlling shareholder, China Ocean Shipping Company Limited ("COSCO Group"), has agreed to, among other things, subscribe for its full entitlement under the Rights Issue and subscribe for any excess Rights Shares not subscribed for by other shareholders. However, in order for COSCO Group to subscribe for the Rights Shares, it has to first comply with the filing requirements with the National Development and Reform Commission and the Ministry of Commerce of the People's Republic of China, which are required for COSCO Group to increase its overseas investment in the Company through subscribing for the Rights Shares. To-date, the filings are still in progress.

The Group has also embarked on the Jurong Island Logistics Hub ("JILH") Phase II project. The contract for the construction of JILH Phase II had been awarded on 22 November 2024 and Cogent Jurong Island Pte. Ltd. ("CJI") had accepted JTC Corporation's lease of the land at Tembusu Crescent, Jurong Island, measuring 25,000 square metres with a maximum gross plot ratio of 2.5 on 29 November 2024. A ground breaking ceremony was held on 17 December 2024. The lease commenced from 1 February 2025 and is for a term of 30 years.

Following the expiry of the lease for The Grandstand on December 31, 2023, Cogent Land Capital Pte. Ltd. ventured into several new business areas such as carpark management, installation of 2nd generation On Board Unit in Singapore registered vehicles, automobile sales and storage operations. Cogent had also made substantive efforts within various sectors of its logistics business such as warehousing, container depot, ISO tank depot, land transportation, vehicle logistics, freight forwarding and supply chain management. In 2024, the Group saw revenue growth in these sectors which had to a certain extent offset the loss in revenue following the closure of The Grandstand.

The new administration in the United States of America ("USA") has implemented trade and tariff policies, which could significantly impact the global logistics industry arising from the onshoring of manufacturing to the USA and the shifting of production facilities to other regions in response to those policies. The imposition of high tariffs could also influence trade relations, possibly leading to adjustments in global trade flows. Businesses may need to realign supply chains to mitigate tariff impacts, which presents challenges and opportunities for logistics providers. Although the Group currently does not provide logistics services to the USA, with logistics as the Group's core business, it is essential that the Group has to continually focus on adapting to emerging trade patterns and policies which could significantly impact the global logistics industry.

The Company will continue to monitor the development of the logistics market in Singapore, Malaysia, and the Southeast Asian region under the challenging global economic conditions. It will invest in and build logistics supply chain infrastructure and resources at the appropriate time, expand the logistics supply chain network, and strive to become a leading comprehensive logistics and supply chain service company in the Southeast and South Asia. The Company remains committed to long-term sustainable development, making efforts to bring better returns to its shareholders.

Condensed Balance Sheets - Group