Back 11 Jul 2025

Chemical Industries (Far East) Reports FY2025 Loss of $21.5M Amid Intense Competition; Secures New 10-Year $150M Contract to Support Future Growth

Link: https://links.sgx.com/1.0.0/corporate-announcements/89DBZ87VUCWWHAOZ/7893b0f64733bf5089e1783978c799a167f36d0afe6e22f0b3a4415cd609ed0d

Summary:

  • Group recorded a net loss of $21.5 million for FY2025 due to tough competition, higher depreciation from increased CAPEX, and impairment losses.

  • Impairment charges totaled $10.1 million for property, plant and equipment, plus a $6.2 million provision for onerous contracts.

  • Despite losses, cash flow remained positive.

  • Recently signed a long-term 10-year $150 million supply contract with a key customer to support their new plant, reflecting continued customer confidence.

  • Continued focus on energy efficiency, including investment in high-efficiency motors and water recycling initiatives.

  • Board proposed a final dividend of 0.5 cents per share, subject to shareholder approval.

  • Company pursuing strategic partnerships and diversification into specialty chemicals to strengthen future profitability.

  • Recognized at SCIC Responsible Care Awards 2024 for pollution prevention, process safety, and security; also achieved BizSafe level Star and SS 651 certification.