Report to Shareholders

DEAR SHAREHOLDERS,

I am pleased to present the annual report for the financial year ended 31 March 2025 (“FY2025”). Despite a challenging global economic environment marked by persistent trade tensions, policy uncertainties and weakening economic sentiment, Chasen Group delivered a year-on-year growth in revenue and gross profit from our continuing operations.

Our strategic divestment of the City Zone Group unlocked shareholders’ value, allowing us to focus on our newly-completed development of a warehouse, Chasen Logistics Hub (“CLH”) and other core remaining businesses.

We have successfully obtained the Temporary Occupation Permit (“TOP”) in late May 2025 for CLH, an energy-efficient, five-storey ramp-up warehouse development that incorporates future-ready cleanroom spaces and meets BCA Green Mark certification standard. This multi-level modern warehouse facility is designed to meet the evolving needs of our customers and is poised to strengthen Chasen Group’s integrated connectivity. It will enhance our ability to serve our valued semiconductor and OEM customers across Singapore and extending our reach into the industrial corridors of Malaysia, Thailand, Vietnam, China and beyond, thereby reinforcing our position as a leading specialist relocation logistics service provider in the region. Meanwhile, the CLH Project Development Team is working closely with the consultants toward attaining the Certificate of Statutory Completion (“CSC”) six months from the TOP date.

FINANCIAL PERFORMANCE

For the financial year ended 31 March 2025 (“FY2025”), the Group saw its revenue from continuing operations increase by 22% year-on-year, with gross profit rising by 66% for FY2025. This performance highlights Chasen Group’s operational resilience and strategic focus in navigating a complex economic landscape. Our Specialist Relocation segment in the United States was a key contributor to this growth, following the award of a multi-million dollar relocation service contract from a major EV battery manufacturer in May 2024.

Our FY2025 continuing operations’ profit before one-off adjustments of S$0.8 million turned around from the previous year of losses. The one-off adjustments, which included a non-cash goodwill impairment of S$10.5 million, a provision for doubtful debt of S$4.7 million, and a net loss of S$1.8 million from PMXC, partially offset by a S$3.5 million gain on PMXC’s disposal. Consequently, the Group’s continuing operations after one-off adjustments recorded a loss of S$12.7 million from continuing operations which was the same amount as in previous year.

With the successful completion of the divestment of the City Zone Group on 1 August 2024, the Group gain on disposal was S$45.1 million. As a result, Group delivered an overall net profit after tax of S$33.2 million for FY2025, as compared to net loss in the previous year.

Fully diluted earnings per share for FY2025 stood at 8.95 Singapore cents, compared to a loss per share of 1.76 Singapore cents in the previous year. Net asset value per share increased to 21.2 Singapore cents as of 31 March 2025, compared to 15.1 Singapore cents as of 31 March 2024. Cash and cash equivalents increased to S$23.9 million as of 31 March 2025, up from S$18.9 million as of 31 March 2024.

SEGMENT PERFORMANCE AND OUTLOOK

Specialist Relocation

For FY2025, the Specialist Relocation segment achieved a remarkable 49% or S$26.1 million increase in revenue to S$79.3 million from S$53.2 million in the previous year. This growth was primarily driven by the demand for our Specialist Relocation services in the USA, particularly in the aforementioned EV battery manufacturing sector.

The Specialist Relocation segment is well positioned to benefit from the growth of the global semiconductor industry, specifically fuelled by the increasing demand from data centres and advancements in Artificial Intelligence (“AI”) technologies.

Third Party Logistics (“3PL”)

For FY2025 with the departure of the City Zone Group, the 3PL segment registered a decline in revenue of 16% or S$2.0 million. This segment has seen reduced demand due to economic slowdown and project delays.

The sole 3PL business unit would be adopting a more cautious approach in securing new projects and focus on cost containment to navigate the current economic slowdown and project delays.

Technical & Engineering (“T&E”)

For FY2025, the T&E segment’s revenue declined by 11% or S$3.4 million due to the disposal of the components and parts manufacturing subsidiary in China and impact from the solar panel installation unit in Singapore, which experienced disruptions from unfavourable weather conditions that hampered project timelines and onsite work. On the other hand, the scaffolding business registered an increase in revenue.

Moving forward, the T&E segment will be increasingly aligned with global sustainability trends, a strategic direction that complements the Singapore Green Plan 2030. This alignment will position the Group to tap into long-term growth opportunities in the green economy.

COMMITMENT TO SUSTAINABILITY

Our commitment to sustainability is a cornerstone of our strategy. We continue to seek innovative ways to reduce our carbon footprint across all operations, and to support our customers in meeting their sustainability goals. Our solar panel installation unit, despite the weather-related challenges in FY2025, continues to be a key area of focus. We are also making progress toward adopting more energy-efficient technologies in our warehousing and logistics operations, exemplified by our new CLH facility. Moving forward, we aspire to attain eco-green certifications in the year ahead. For more on sustainability, you may refer to our Sustainability Report 2025 found in our website – https://www.chasen.com.sg/ir-sustainability-report.php

LOOKING AHEAD

As we look ahead, the Group remains cautiously optimistic amid ongoing economic uncertainties. Our focus will be on maintaining our resilient momentum and managing risks effectively while staying agile in seizing growth opportunities. This approach will be instrumental in delivering long-term value to our shareholders.

APPRECIATION

On behalf of the Board of Directors, I would like to express my heartfelt appreciation to our shareholders, customers, business partners, and employees for your continued trust and support. I would also like to thank my fellow directors and the management team for their dedication and contribution in strengthening Chasen’s position as a trusted service provider across the region.

LOW WENG FATT
Managing Director & Chief Executive Officer