Link: https://links.sgx.com/1.0.0/corporate-announcements/2ME4ZX86XX5S6HHO/1735032b9285b8cf5c8d48792ab5ad2c380cdbd118f7e4f41ddef7a48730f488

Summary:

• What changed in sales (Revenue): S$33.36m, up 4.6% year-on-year, led by new F&B outlets, higher food court footfall at university and Sports Hub locations, and stronger franchise sales from both new and existing CHICHA San Chen stores.

• Bottom line (Net profit/loss): Net profit S$1.98m, down 18.6% as rising staff costs, higher depreciation from new/renewed leases, and increased lease-related finance costs outpaced revenue growth; PBT S$2.29m (-16.0%).

• Core performance (Operating results): Segment PBT mixed—F&B Operations S$0.87m (down from S$2.12m) due to higher costs and losses at newly opened outlets; Franchise S$1.51m (down from S$1.69m) on higher staff and depreciation; Food Court S$1.26m (up from S$0.37m) with better footfall and lower depreciation as some assets fully depreciated.

• Gross mix (Segment revenue): F&B Operations S$15.95m (+S$0.18m), Franchise S$12.26m (+S$0.90m), Food Court S$3.72m revenue from sales and services (management services S$1.89m vs S$1.19m; sales S$1.82m vs S$1.87m) and rental S$1.44m.

• Costs (Expenses): Employee benefits S$9.34m (+6.5%) amid tight labour market; depreciation S$5.26m (+18.2%) from additional right-of-use assets; finance costs S$0.79m (+15.9%) on lease interest; other income fell to S$0.42m (-47.4%) with lower government grants.

• Cash in and out (Cash flow): Operating cash inflow S$6.03m (working capital outflow and tax payments offset profits); investing cash outflow S$0.50m (capex); financing cash outflow S$6.17m (lease repayments S$3.82m, dividend S$1.53m, interest S$0.79m); period-end cash S$20.65m (down S$0.65m vs FY2024).

• Financial position (Balance sheet): Total assets S$56.28m; net assets S$19.95m (NAV 4.69 cents/share); PPE S$29.14m after S$6.57m new/renewed lease capitalisation offset by S$5.26m depreciation; refundable deposits in receivables S$3.53m reflect outlet leases.

• Debt picture (Borrowings): Bank loan S$2.20m secured by a leasehold property; total lease liabilities S$25.97m (up from S$23.35m) with current portion S$8.24m and non-current S$17.74m, rising from new and renewed outlet leases.

• Shareholder returns (Dividend): Interim cash dividend of 0.36 Singapore cent per share declared; payable 29 August 2025; record date cutoff 20 August 2025, 5:00pm; tax-exempt.

• IPO proceeds (Use of funds): S$12.04m net raised; S$4.08m utilised to date (S$2.05m working capital—mainly staff costs and supplier purchases; S$2.05m for expansion); S$7.95m remaining targeted for outlet expansion, franchising, supply chain, and partnerships.

• Corporate actions (Subsidiaries): Increased stake in Macau unit to 95% after acquiring an additional 5% in March 2025; second CHICHA San Chen outlet opened in Macau in May 2025.

• What to watch next (Outlook): Management is prioritising profitability via closing underperforming outlets, opening in better locations, cost control, and productivity; industry headwinds remain from labour constraints, higher wages (Progressive Wage Model), rent, utilities, and raw materials; newer outlets need time to stabilise, keeping near-term margins under pressure while food court momentum and franchising expansion support top line.