ANNUAL REPORT 2025 CHEMISTRY IN MOTION
STRATEGIC VISION. FINANCIAL STRENGTH. CATALYZED BY A PASSION FOR EXCELLENCE. THESE ARE THE ELEMENTS THAT DRIVE US, THE REACTION THAT DEFINES US. THIS IS OUR CHEMISTRY IN MOTION. {Strategic Vision}2 + {Financial Strength}2 + {Passion} Chemistry in Motion5
This annual report has been reviewed by the Company’s sponsor, SAC Capital Private Limited (“Sponsor”). This annual report has not been examined or approved by the Singapore Exchange Securities Trading Limited (“Exchange”) and the Exchange assumes no responsibility for the contents of this annual report, including the correctness of any of the statements or opinions made, or reports contained in this annual report. The contact person for the Sponsor is Mr Bernard Lim (Tel: (65) 6232 3232) at 1 Robinson Road #21-01 AIA Tower Singapore 048542. CHAIRMAN’S MESSAGE 03 OPERATING AND FINANCIAL REVIEW 31 OUR WORLD OF CHEMISTRY 06 SHARE INFORMATION 41 OUR PROSPECTS & STRATEGY 08 DIVIDEND 42 OUR CORPORATE PROFILE 09 YEAR IN REVIEW 43 OUR BUSINESS MODEL 11 FINANCIAL CALENDAR 44 OUR GLOBAL FOOTPRINT 12 INVESTOR RELATIONS 45 WHY MEGACHEM 14 RISK MANAGEMENT 47 DEFINING MEGACHEM 16 CORPORATE GOVERNANCE REPORT 51 BOARD OF DIRECTORS 18 SUSTAINABILITY REPORT 73 SENIOR MANAGEMENT 23 TCFD DISCLOSURE 104 OUR HUMAN CAPITAL 24 GRI CONTENT INDEX 107 OUR ACHIEVEMENT 25 FINANCIAL STATEMENTS 111 CORPORATE INFORMATION 26 STATISTICS OF SHAREHOLDING 177 GLOBAL OFFICE CONTACT 27 NOTICE OF ANNUAL GENERAL MEETING 179 RESULTS AT A GLANCE 17 PROXY FORM MANAGING DIRECTOR’S MESSAGE 04 FINANCIAL HIGHLIGHTS 28 MEGACHEM LIMITED ANNUAL REPORT 2025 02 TABLE OF CONTENTS
DEAR VALUED SHAREHOLDERS, On behalf of the Board of Directors, I am pleased that this past year continues to show the resilience of our business. 2025: DISCIPLINE AND MARKET SHARE FY 2025 was a year marked by challenges, with the global chemicals industry facing macroeconomic headwinds and geopolitical risks. Accordingly, Megachem’s business has focused on maintaining operational discipline and market share. STILL FORWARD LOOKING Near-term conditions may remain subdued, but our perspective on the long-term prospects is still positive. The region’s fundamentals – on-going industrial activity, a large middle class and sustained investment – remain intact. As a key market for Megachem, the region is key for our long-term growth. TOTAL SHAREHOLDERS’ RETURNS Since Megachem’s listing in 2003, we have endeavoured to deliver dividend returns to our shareholders. The total dividend of 1.0 cent for the year represents a dividend payout ratio of 34.8%. Together we are well-positioned for the journey ahead. MR YEO WEE KIONG Independent & Non-Executive Chairman In future, if and when investor interests grow for our shares, dividend and share price increase will result in greater total shareholders’ return. WORDS OF APPRECIATION The strength of Megachem lies not just in its strategy, but in its people and its partnerships. On behalf of the Board of Directors, I extend my heartfelt appreciation to our management and employees for their unwavering dedication and perseverance, and to our shareholders, customers, and partners for their enduring trust and support. Together, we are well-positioned for the journey ahead. YEO WEE KIONG Independent and Non-Executive Chairman Megachem Limited MEGACHEM LIMITED ANNUAL REPORT 2025 03 CHAIRMAN’S MESSAGE
Our ability to operate across diverse markets, serve customers globally and leverage on our extensive network remains a key differentiator. MR SIDNEY CHEW CHOON TEE Managing Director DEAR VALUED SHAREHOLDERS, EXTERNAL ADVERSITIES The year unfolded against a backdrop of complex and demanding operating environment. The chemicals industry had to grapple with macroeconomic uncertainty, persistent geopolitical tensions, and structural challenges including supply chain recalibrations and an oversupply of chemicals that led to weaker chemical prices. These external headwinds inevitably weighed on customer demand and market sentiment. In spite of the external adversities, Megachem’s diversified business model, spanning a wide range of products and a broad customer base, continues to underpin our stability. Our ability to operate across diverse markets, serve customers regionally and globally, and leverage our extensive global network remains a key differentiator. Together, these strengths enable the Group to navigate volatility while reinforcing our competitive position. FINANCIAL PERFORMANCE: STABILITY AMIDST HEADWINDS For FY 2025, Megachem’s revenue stood at S$124.4 million, a 3.4% decrease compared to S$128.8 million in the previous financial year ended 31 December 2024 (“FY 2024”). The marginal decline in revenue was mainly attributed to lower sales across most markets due to softer demand amid ongoing macroeconomic and geopolitical uncertainties. Sales from Distribution and Manufacturing segments decreased by S$3.8 million or 3.0% and S$0.6 million or 16.5% respectively. Despite the lower sales, gross profit margin for FY 2025 improved to 25.6% as compared to 24.2% in FY 2024, mainly due to lower allowance for inventory impairment. As a result, gross profit increased by S$0.6 million or 1.8% year-on-year to S$31.8 million in FY 2025. Total operating expenses decreased by S$4.7 million or 14.4% yearon-year to S$27.8 million in FY 2025, largely due to the absence of expenses incurred from the fire incident in July 2023 such as the demolition and decontamination costs and waste disposal costs, which amounted to S$3.8 million in FY 2024. Pertaining to insurance compensation for the fire incident, there was none received in FY 2025 compared to S$9.3 million in FY 2024 which explains the lower other income in FY 2025. Overall, Megachem recorded a net profit after tax of S$3.9 million in FY 2025, 50.6% lower than S$7.9 million from a year ago. The decrease in profitability was mainly due to lower other income, offset by lower expenses and higher share of profits of associates. Adjusting for the impact of the fire incident, Megachem’s net profit after tax would have increased by S$1.0 million or 31.1% year-on-year. Earnings per share for FY 2025 came in at 2.88 cents as compared to 5.93 cents in FY2024. Net asset value per share increased to 46.0 cents as at 31 December 2025, up from 43.92 cents as at MEGACHEM LIMITED ANNUAL REPORT 2025 04 MANAGING DIRECTOR’S MESSAGE
31 December 2024. The Group’s balance sheet remains stable, with cash and bank balances of S$14.0 million as at 31 December 2025, as compared to S$16.0 million as at 31 December 2024. Net gearing ratio increased to 0.34 times as at 31 December 2025, in line with higher total borrowings which were used to finance the reconstruction of our new warehouse. Our continued focus on prudent capital management has allowed us to maintain a sound financial position, providing us with the stability needed to navigate uncertainties while positioning the Group for long-term growth. REBUILDING OUR WAREHOUSE: A STRATEGIC MILESTONE The reconstruction of our warehouse, which was damaged in the fire incident on 5 July 2023, reached a significant milestone during the year. Following the completion of the reconstruction, the Group is currently seeking the necessary regulatory clearance prior to applying for the Temporary Occupational Permit (TOP). Barring unforeseen circumstances, we expect the facility to be fully operational by end March 2026. The cost of construction is estimated to be in the region of S$18 million. This new warehouse supports our strategy of positioning ourselves as a one-stop solutions provider. It is purpose-built to handle multiple classes of chemicals, allowing us to serve the diverse needs of our customers more effectively. With its increased capacity, the facility will reduce our reliance on third-party storage and lower overall warehousing costs. It also underscores our strong commitment to safety, environmental responsibility and regulatory compliance. Over the long term, it is expected to strengthen our operational efficiency and enhance our competitiveness as well as provide Megachem a strategic advantage to meet the tailored needs of our customers. NAVIGATING AN EVOLVING LANDSCAPE Looking ahead, the global operating environment is expected to remain challenging amid heightened geopolitical risks, ongoing trade tensions and concerns over inflationary pressures as well as the fear of an AI bubble. A continued oversupply and ongoing trade complexities may temper near-term growth in the chemicals industry. Business sentiment remain cautious, and industry demand is expected to stay measured if prevailing market conditions persist. As our business is closely tied to global economic conditions and industry demand, the Group will continue to prioritise strong operational and financial discipline. We will continue to maintain prudent inventory oversight and cost controls, while remaining attentive to evolving market dynamics. Despite the current external adversities, there are tremendous opportunities for long-term growth. To capture these opportunities, we will continue to focus on building a resilient business model anchored by our customer and Asia-centric focus. These include strengthening our presence in key markets and broadening our product portfolio. We will continue to deepen our relationships with customers and suppliers to deliver reliable, value-added solutions tailored to their evolving needs. At the same time, we will also carefully seize opportunities to broaden our coverage across market segments to accelerate longterm growth. SUSTAINABLE CHEMISTRY: AN INTEGRAL COMMITMENT Sustainability is not merely a corporate initiative at Megachem, it is integral to how we conduct business. We continue to embed responsible practices across our operations. We work closely with our partners to support environmental sustainability and industry best practices, recognising that long-term business success is inseparable from responsible corporate citizenship. WORDS OF APPRECIATION I would like to convey my heartfelt appreciation to our Chairman and the Board of Directors for their stewardship, valued counsel and sound guidance throughout the year. My appreciation also goes out to our staff for their dedication and hard work, as well as our business partners for their continued trust and support. As we look ahead, I am confident that Megachem is equipped to pursue opportunities that lies ahead. Supported by our diversified product offerings, extensive global network, and the dedication of our people, we remain firmly committed to strengthening Megachem as a trusted specialty chemicals partner. SIDNEY CHEW CHOON TEE Managing Director Megachem Limited MEGACHEM LIMITED ANNUAL REPORT 2025 05 MANAGING DIRECTOR’S MESSAGE
MAKING THE WORLD A BRIGHTER PLACE PERFORMANCE COATINGS AND POLYMERS • Paints and Inks • Polymerisation • Adhesives • Construction • Textile ENABLING TECHNOLOGIES SURFACE TECHNOLOGY • Electronics • Metal Finishings • Industrial Cleaning • Water Treatment • Pulp & Paper MEGACHEM LIMITED ANNUAL REPORT 2025 06 OUR WORLD OF CHEMISTRY
NOURISHING OUR WELL-BEING BIOTECH • Food and Beverages • Pharmaceuticals • Nutraceuticals • Cosmeceuticals • Personal Care • Homecare • Flavours/Fragrances • Agriculture • Feeds ENERGISING OUR WORLD OIL & GAS/RESOURCES • Petrochemicals • Lubricants & Grease • Oil Fields • Refinery • Oleochemicals • Mining DRIVING PERFORMANCE ADVANCED POLYMER COMPOSITES • Rubber • Plastics • Polyurethane • Polyesters MEGACHEM LIMITED ANNUAL REPORT 2025 07 OUR WORLD OF CHEMISTRY
OUR STRATEGY (CHemical)+Re(Action)2: for- Gr{OW}th The Megachem formula for growth is a reaction of 3 key strategies creating a chemistry that will elevate us to a different level of growth. We develop our strategies around the key pillars of geographic network, product offerings and industry coverage. Combine these with our supply chain infrastructure and close relationships with customers and suppliers, Megachem will be well positioned to grow its business, thereby enhancing value for our shareholders. GLOBAL ECONOMY 2025 was marked by rise in trade barriers, shifts in global trade and geopolitical risks. While economic uncertainties rose amid tariff-driven headwinds, global economy turned out to be relatively resilient. Going into 2026, many have predicted that the positive momentum can be sustained, backed by lower interest rate environment and on-going monetary and fiscal stimulus. However continued growth may be derailed if: • lower interest rates result in higher inflation again; • the effect of trade barriers persists; • fragile job market leads to recession fear; • over-valuation of AI companies leads to an AI bubble bursts; • geopolitical risk escalates further. CHEMICAL INDUSTRY 2026 will be another challenging year for the chemical industry if the current oversupply and trade complexities do not ease. If conditions do not improve, prices may remain soft and growth is likely to be modest. MEGACHEM As for Megachem, our current strategy of building a resilient business model with a customer and Asia-centric focus will remain relevant as we seek to accelerate our long-term growth. We will respond to any adverse external factors with operational and financial discipline even as we work towards deepening our coverage across various market segments. REBUILDING OUR WAREHOUSE On 5 July 2023, Megachem informed shareholders via an SGX announcement that a fire broke out on the same day at 132 Pioneer Road where one of our warehouses is located. After the fire, we decided to rebuild the warehouse with an expanded warehousing capacity, capable of storing about 60-80% of our current warehousing requirement and with higher level of safety standards. The reconstruction is nearing completion and we are seeking regulatory clearance for the issuance of the Temporary Occupational Permit. Barring unforeseen circumstances, we hope our new warehouse can be fully operational by end of March 2026. The cost of construction is estimated to be in the region of S$18 million. This new warehouse supports our strategy of positioning ourselves as a one-stop solutions provider. It is purpose-built to handle multiple classes of chemicals, allowing us to serve the diverse needs of our customers more effectively. With its increased capacity, the facility will reduce our reliance on third-party storage and lower overall warehousing costs. It also underscores our strong commitment to safety, environmental responsibility, and regulatory compliance. Over the long term, it is expected to strengthen our operational efficiency and enhance our competitiveness. MEGACHEM LIMITED ANNUAL REPORT 2025 08 OUR PROSPECTS & STRATEGY
YOUR TOTAL CHEMICAL SOLUTIONS PARTNER Established in 1988, Megachem has since emerged as a leading chemical player in Singapore and the region. Listed on the Singapore Stock Exchange in 2003, we are today a global one-stop specialty chemical solutions provider, offering integrated valueadded services including contract manufacturing tailored to customers’ needs as well as distribution of specialty chemicals. We have a global presence and diverse customer base from a wide spectrum of industries. Our technical capabilities, supply chain infrastructure and professional team serve to ensure total customer satisfaction. MEGACHEM LIMITED ANNUAL REPORT 2025 09 OUR CORPORATE PROFILE
SERVING YOU GLOBALLY WITH ONE-STOP SUPPLY OF SPECIALTY CHEMICALS PROVIDING INTEGRATED VALUE-ADDED SOLUTIONS A PREMIUM PROVIDER OF CHEMICAL CONTRACT MANUFACTURING SERVICES MEGACHEM LIMITED ANNUAL REPORT 2025 10 OUR CORPORATE PROFILE
DISTRIBUTION PRODUCERS CUSTOMERS MANUFACTURING/CUSTOM BLENDING PURCHASE VENDOR MANAGED INVENTORY STORE TRANSPORT AUXILIARY SERVICES TECHNICAL SUPPORT CUSTOM BLENDING VALUE-ADDING IN THE CHEMICAL SUPPLY CHAIN • Wide product portfolio >1,000 types and grades of chemicals • Global Sourcing Network -China, Europe, Japan, US, India • Global Distribution Network -presence in 12 countries • Strong customer base >2,000 customers • Providing Just-in-Time delivery and Vendor- Managed Inventory Service • Mixing and Blending according to customers’ formulations • Repackaging from bulk to smaller packaging • Filling, packaging and labeling • Technical support from dedicated application laboratories MEGACHEM LIMITED ANNUAL REPORT 2025 11 OUR BUSINESS MODEL
CONNECTING TO THE WORLD OF OPPORTUNITIES With an extensive global network and strategic locations in Asia, we are well-positioned to develop strategic relationships and forging winning formula in a challenging business landscape. MEGACHEM LIMITED ANNUAL REPORT 2025 12 OUR GLOBAL FOOTPRINT
SINGAPORE PHILIPPINES INDONESIA VIETNAM THAILAND UK MALAYSIA AUSTRALIA CHINA INDIA MIDDLE EAST MYANMAR GLOBAL SOURCING GLOBAL MARKETS MEGACHEM LIMITED ANNUAL REPORT 2025 13 OUR GLOBAL FOOTPRINT
Extensive global network Our extensive network in Singapore, Malaysia, Indonesia, Thailand, Philippines, Vietnam, Myanmar, China, India, Middle East, Australia and the UK enables us to serve our customers globally. Our direct presence in these markets offers a premium service level and minimized operating cost for our customers. Our integrated network also allows for cross-border exchange of market information and enables us to connect our suppliers to their desired markets Strong customer base Over the years we have developed a strong and diversified customer base comprising largely multinationals companies spreading across a wide range of industries. This is a testimony of their confidence in us and of our ability to deliver long-term value to them. Outstanding product portfolio We carry a wide range of products which provides a one-stop shop and enables us to be a key supplier to our customers. Quality supply source Our suppliers have proven track records in quality, consistency, competitive pricing and supply reliability. A strong presence in Asia has helped several of our principal suppliers to penetrate key markets, which led to our appointment as their sole distributor and business partner. Efficient supply chain solutions Our warehousing facilities stock different classes and grades of specialty chemicals. Coupled with an efficient logistics support and just-in-time inventory controls, we are able to help customers improve their inventory planning and reduction of inventory costs. OUR COMPETITIVE STRENGTHS, YOUR COMPETITIVE ADVANTAGES Every single element has to be exactly in place to create the desired formula for success and Megachem has been building this winning formula over the decades. Several vital ingredients make up this potent formula: Our integrated solutions, superior manufacturing capability, extensive global network, our strong customer base, outstanding product portfolio, efficient supply chain solutions and sophisticated IT support services. Together, these elements give our customers the competitive edge they seek, making us their indispensable partner on their journey to growth. OUR COMPETITIVE STRENGTHS Integrated specialty chemical Solutions provider Megachem’s capabilities in proprietary chemical products manufacturing, contract manufacturing and global distribution provide customers with integrated solutions, thus adding higher value to them. These make us a one-stop shop where customers can find total solutions. Superior manufacturing capability In contract manufacturing, we add value by blending materials according to our customers’ formulation and specific requirements. With our proven track record with several multinationals, customers can confidently outsource to us their non-core production activities so that they can focus on what they do best - making their business grow. MEGACHEM LIMITED ANNUAL REPORT 2025 14 WHY MEGACHEM?
Sophisticated IT infrastructure Megachem invests heavily in a world-class IT infrastructure including SAP S/4 HANA business suite software. This enhances our service efficiency as well as provides seamless information exchange which gives us a competitive advantage over our competitors. YOUR COMPETITIVE ADVANTAGES As our customers Competitive Product Pricing Megachem can act as a single source supplier of a full suite of products, offering you increased product cost effectiveness. Through product bundling, overall product cost and freight cost can be reduced for our customers. Process and Operational Cost Efficiency Instead of having a big procurement team inquiring with several suppliers, negotiating prices, terms and conditions with each of them, you can rely on us as one single point of contact. By consolidating your chemical materials requirements and outsourcing to us, it enables you to focus your time and effort on your core activities. We can source and order your products for you, store them in close proximity to your production locations and deliver them not before or after they are needed; instead, they arrive “just-in-time” as they are needed, effectively reducing operational costs such as warehousing and inventory obsolescence. Product Options Megachem has global sourcing network around the world with the ability to source for quality products at economical cost. We are able to offer various alternatives for your chemical raw material requirements by offering wider choices in terms of product quality and pricing. Optimum Service Level Megachem partners many multi-nationals companies, serving them as a global supplier. For these companies our Key Accounts Managers provide impeccable level of personalised services and offer customised solutions. Adding Value Through Contract Manufacturing Megachem adds further value to your business by providing contract manufacturing services. We can source the raw materials for you, store them in our warehouses, produce the finished products according to your formulations, pack them according to your requirements and deliver them directly to you or your customers. By engaging us as your contract manufacturer, your non-core production is outsourced to us and in so doing reduces your capital expenditure, production and other related costs. Outsourcing your non-core productions to us also enables you to penetrate key markets in Asia without investing heavily in capital expenditure. As our suppliers Your Partner in Growing your Markets As a supplier to us, we add value to you by bringing your products to your desired markets. We do so by leveraging on our extensive network around the world, especially in Asia where there is a tremendous potential for growth. Supported by an efficient logistical infrastructure and our in-depth market knowledge, we can assist you in developing your markets bigger and faster. Streamlining your Distribution Channels Acting as your distributor, you can outsource smaller customer accounts to us, enabling you to channel your resources towards the bigger customers thus streamlining your distributions channels, operations and reducing your operational cost. Reducing your Inventory Cost By appointing us as your distributor, you will be able to reduce your inventory holding cost. Our robust inventory management system and strong supply chain infrastructure will ensure sufficient level of stocks to meet customers’ demand within shortest possible delivery time. Market Information Sharing We view our suppliers as important business partners. As such, we have open channels of sharing and communication of market knowledge and information to keep our suppliers abreast of market developments. MEGACHEM LIMITED ANNUAL REPORT 2025 15 WHY MEGACHEM?
We constantly DIFFERENTIATE ourselves to stay ahead of competition We are ENERGISED towards realizing our vision in everything that we do We constantly pursue better ways to ENGAGE with our business partners to achieve mutually beneficial relationship Our people are committed to EXECUTE and deliver quality results Because we truly believe in our PASSION to better serve and deliver our best We are a PERFORMANCE-DRIVEN organization We embrace CHANGE to stay relevant. SUPPORTING MEGACHEM’S KEY SUCCESS FACTORS IS THE INVIGORATING DEEP CULTURE – ONE THAT BONDS THE SPIRIT OF OUR PEOPLE TOGETHER WITH COMMON VALUES, EASILY RECOGNISABLE IN THE CONDUCT OF OUR BUSINESS MEGACHEM LIMITED ANNUAL REPORT 2025 16 DEFINING MEGACHEM
*FY24 Net Profit adjusted for a one-off impact from a fire incident SALES S$124.4 MIL (3.4%) NET PROFIT* S$3.9 MIL 31.1% FULL YEAR DIVIDEND 1 CENT PER SHARE MEGACHEM LIMITED ANNUAL REPORT 2025 17 RESULTS AT A GLANCE
MR YEO WEE KIONG, AGE 70 Independent and Non-Executive Chairman Date of first appointment as a Director: 20 April 2024 Date of last re-election as Director: 22 April 2025 Length of service as a Director: 1 year and 11 months Country of principal residence: Singapore Board’s comments on the appointment Not applicable, Mr Yeo Wee Kiong is not subject to re-election. Board committee memberships Chairman of Nominating Committee Member of Audit Committee Member of Remuneration Committee Academic and professional qualifications Barrister-at-Law, Lincoln’s Inn in England Master of Business Administration from the National University of Singapore Degree in Law (Honours) from University of London Bachelor of Mechanical Engineering (Honours) from National University of Singapore Working experience and occupations for the past 10 years and principal commitments Working experience and occupation during the last 10 years Nil Principal Commitments (other than directorships) Present Nil Past Nil Directorships (Present and Past 5 years) Present other than Megachem Limited Listed AF Global Limited Pacific Century Regional Development Limited SUTL Enterprise Limited Non-listed Ezyhealth Holdings Pte Ltd Ezyhealthcare Trust Management Pte Ltd (dormant) Raffles Fund 1 Limited Raffles Fund 2 Limited Raffles Venture Partners Pte. Ltd Past 5 years, listed and non-listed Listed Asian Healthcare Specialists Limited Roxy Pacific Holdings Limited Non-listed Bonvests Holdings Pte Ltd Heliconia Capital Management Pte Ltd Sabana Real Estate Investment Management Pte Ltd Orchid 1 Investments Pte Ltd Orchid 2 Investments Pte Ltd Asia Township Development Pte Ltd Genkai Capital Secured Investment Pte Ltd BIS Minerals Pte Ltd Shareholdings (direct and deemed) in the Company (as at 21 January 2026) Nil Familial relationship with any director and/or substantial shareholder of the Company or of any of its principal subsidiaries Nil Conflict of interest (including any competing business) Nil MEGACHEM LIMITED ANNUAL REPORT 2025 18 BOARD OF DIRECTORS
MR SIDNEY CHEW CHOON TEE, AGE 65 Managing Director Date of first appointment as a Director: 28 April 1989 Date of last re-election as Director: 18 April 2022 Length of service as a director: 36 years and 11 months Country of principal residence: Singapore Board’s comments on the appointment The re-election of Mr Sidney Chew Choon Tee as Managing Director was recommended by the Nominating Committee and approved by the Board, after taking into consideration Mr Sidney Chew Choon Tee’s contributions, performance, expertise and past experiences. Board committee memberships Chairman of Executive Committee Member of Nominating Committee Academic and professional qualifications Bachelor of Science in Chemistry (Hons) Bachelor of Arts, majoring in Business Administration Working experience and occupations for the past 10 years and principal commitments Working experience and occupation during last 10 years Executive Director of Megachem Limited Principal Commitments (other than directorships) Present and Past Nil Directorships (Present and Past 5 years) Present other than Megachem Limited Listed Megachem (Thailand) Public Company Limited Non-listed Megachem Manufacturing Pte Ltd Megachem Raya Pte Ltd Megachem (Shanghai) Pte Ltd C.N. Chemicals Sdn. Bhd. P.T. Mega Kemiraya Megachem Plus Limited Megachem Phils., Inc Megachem International Trading (Shanghai) Co., Ltd Megachem (UK) Ltd Megachem Middle East FZE Megachem Vietnam Company Limited Megachem Specialty Chemicals (I) Private Limited Megachem Australia Pty Ltd Past 5 years, listed and non-listed Nil Shareholdings (direct and deemed) in the Company (as at 10 March 2026) 48,830,112 Familial relationship with any director and/or substantial shareholder of the Company or of any of its principal subsidiaries Ms Liau Bin Bin who is the spouse of Mr Sidney Chew Choon Tee is an Executive Director of C.N., Chemicals Sdn Bhd, a wholly-owned subsidiary of Megachem Limited Conflict of interest (including any competing business) Nil By virtue of section 7 of the Companies Act, 1967, Mr Sidney Chew Choon Tee, who by virtue of his interest of not less than 20% shareholding interest in the Company, is deemed to have an interest in the shares held by the Company in all the related corporations of the Company. Appendix 7F of the SGX Catalist Rules Mr Sidney Chew Choon Tee who is seeking re-election at the Annual General Meeting has responded negative to item (a) to (k) listed in the Appendix 7F of the SGX Catalist Rules. MEGACHEM LIMITED ANNUAL REPORT 2025 19 BOARD OF DIRECTORS
MR SIM GUAN SENG, AGE 66 Independent Director Date of first appointment as a Director: 20 April 2024 Date of last re-election as Director: 22 April 2025 Length of service as a Director: 1 year and 11 months Country of principal residence: Singapore Board’s comments on the appointment Not applicable, Mr Sim Guan Seng is not subject to re-election. Board committee memberships Chairman of Audit Committee Member of Nominating Committee Member of Remuneration Committee Academic and professional qualifications Bachelor of Accountancy (Honours) from National University of Singapore Fellow Chartered and Certified Accountant (FCCA) of Institute of Singapore Chartered Accountants Working experience and occupations for the past 10 years and principal commitments Working experience and occupation during the last 10 years Present 2022 to Present: Managing Director of Valaston Assurance PAC (previously known as Cohen Assurance PAC) Past 2004 to 2022: Partner of Baker Tilly TFW LLP Principal Commitments (other than directorships) Present Managing Director of Valaston Assurance PAC (previously known as Cohen Assurance PAC) Honorary Consul of The Republic of Botswana Finance Board Chairman and member of Standing Committee of Diocese of Singapore Past Nil Directorships (Present and Past 5 years) Present other than Megachem Limited Listed Darco Water Technologies Limited Sitra Holdings (International) Limited Non-listed Valaston Assurance PAC Anglican Preschool Services Ltd Pro Bono SG Past 5 years Listed Nil Non-listed Lightway Corporate Services Pte Ltd Singapore Accountancy Commission Baker Tilly TFW LLP NCC Research Fund NCCS Cancer Fund Shareholdings (direct and deemed) in the Company (as at 21 January 2026) Nil Familial relationship with any director and/or substantial shareholder of the Company or of any of its principal subsidiaries Nil Conflict of interest (including any competing business) Nil MEGACHEM LIMITED ANNUAL REPORT 2025 20 BOARD OF DIRECTORS
MR DANIEL LOH HONG CHYE, AGE 59 Independent Director Date of first appointment as a Director: 20 April 2024 Date of last re-election as Director: 22 April 2025 Length of service as a Director: 1 year and 11 months Country of principal residence: Singapore Board’s comments on the appointment Not applicable, Mr Daniel Loh Hong Chye is not subject to re-election. Board committee memberships Chairman of Remuneration Committee Member of Audit Committee Academic and professional qualifications Master of Business Administration (High Honors) from Oklahoma City University Bachelor of Mechanical Engineering from National University of Singapore Working experience and occupations for the past 10 years and principal commitments Working experience and occupation during the last 10 years Managing Director and President Chemicals Asia of HELM Asia Pte Ltd President Director of BASF Indonesia Chairman of BASF Philippines Inc. Head of Singapore Business Area of BASF South East Asia Pte Ltd Managing Director of BASF (Malaysia) Sdn Bhd Principal Commitments (other than directorships) Present Freelance Strategic Consultant Volunteer, Firefly Mission (non-governmental organisation) Past Managing Director and President Chemicals Asia of HELM Asia Pte Ltd President Director of BASF Indonesia Chairman of BASF Philippines Inc. Head of Singapore Business Area of BASF South East Asia Pte Ltd Managing Director of BASF (Malaysia) Sdn Bhd Directorships (Present and Past 5 years) Present other than Megachem Limited Listed Nil Non-listed Nil Past 5 years, listed and non-listed Listed Nil Non-listed HELM Asia Pte Ltd HELM TH (Thailand) Ltd SPCI HELM Group Holdings Pte Ltd SPCI HELM Singapore Pte Ltd SPCI HELM Advance Pte Ltd. Shareholdings (direct and deemed) in the Company (as at 21 January 2026) Nil Familial relationship with any director and/or substantial shareholder of the Company or of any of its principal subsidiaries Nil Conflict of interest (including any competing business) Nil MEGACHEM LIMITED ANNUAL REPORT 2025 21 BOARD OF DIRECTORS
MR YASUTAKA KAWAMURA, AGE 55 Non-Executive and Non-Independent Director Date of first appointment as a Director: 1 July 2020 Date of last re-election as Director: 19 April 2023 Length of service as a Director: 5 years 9 months Country of principal residence: Japan Board’s comments on the appointment The re-election of Mr Yasutaka Kawamura as Non-Executive and Non-Independent Director was recommended by the Nominating Committee and approved by the Board, after taking into consideration Mr Yasutaka Kawamura’s contributions, performance, expertise and past experiences. Board committee memberships Nil Academic and professional qualifications Master of Business Administration Bachelor of Economics Working experience and occupations for the past 10 years and principal commitments Working experience and occupation during the last 10 years Vice President of Chori (China) Co., Ltd Department Manager of Corporate Planning division in Chori Co., Ltd. Principal Commitments (other than directorships) Present Executive Officer of Chori Co., Ltd Deputy General Manager of Corporate Planning division in Chori Co., Ltd (Corporate Management Department, Affiliate Business Department, Logistics Department (Textile) and Logistics Department (Chemicals)) President of Chori Machinery Co., Ltd Past Key positions in finance, accounting and corporate planning within Chori Co., Ltd Directorships (Present and Past 5 years) Present other than Megachem Limited Listed Chori Co., Ltd Non-listed Chori Machinery Co., Ltd Past 5 years, listed and non-listed Listed Nil Non-listed Chori Europe Gmbh Chori (Dalian) Trading Co., Ltd Chori (Dalian) Commercial Import Export Co., Ltd Shareholdings (direct and deemed) in the Company (as at 21 January 2026) Nil Familial relationship with any director and/or substantial shareholder of the Company or of any of its principal subsidiaries An employee and nominee of Chori Co., Ltd, a 29.99% shareholder of Megachem Limited Conflict of interest (including any competing business) Nil Appendix 7F of the SGX Catalist Rules Mr Mr Yasutaka Kawamura who is seeking re-election at the Annual General Meeting has responded negative to item (a) to (k) listed in the Appendix 7F of the SGX Catalist Rules. MEGACHEM LIMITED ANNUAL REPORT 2025 22 BOARD OF DIRECTORS
MR FRANCIS YAU THIAM HWA Chief Financial Officer Mr Francis Yau joined Megachem in 2000 as the General Manager of Megachem (Shanghai) Pte Ltd and Megachem International Trading (Shanghai) Co. Ltd prior to his appointment as the Group’s Financial Controller in 2001. He was promoted to the position of Chief Financial Officer on 1 January 2007. Mr Yau takes responsibility for all financial matters including financial and treasury planning, financial risk management and investor relations. He had several years of corporate banking experience prior to joining Megachem. He holds a bachelor degree in Business Administration from the National University of Singapore, majoring in finance and is also a member of the Institute of Singapore Chartered Accountants. He currently serves as an independent director in one company listed on SGX. MS KWOK HWEE PENG Group Finance Manager Ms Kwok Hwee Peng joined Megachem as Group Accountant in 2002 and was promoted to the position of Group Finance Manager in 2008. She is responsible for the Group’s financial reporting and is also the Company Secretary. She has several years of experience in accounting and audit with PricewaterhouseCoopers prior to joining Megachem. She holds a Bachelor of Accountancy degree from the Nanyang Technological University and is also a member of the Institute of Singapore Chartered Accountants. MEGACHEM LIMITED ANNUAL REPORT 2025 23 SENIOR MANAGEMENT
At MegaChem, our people are central to the Group’s long-term success. We remain committed to strengthening human capital governance, developing internal capabilities and building leadership continuity across our multi country operations. In 2025, the Group focused on enhancing performance alignment, leadership sustainability and governance discipline across key people processes to support sustainable growth. REWARDS & PERFORMANCE GOVERNANCE The Group reviews its compensation framework periodically to ensure internal equity, market competitiveness and alignment with performance contribution. During the year, targeted market benchmarking was conducted for selected leadership roles to support governance oversight and competitiveness. Incentive and allowance structures were also reviewed to reinforce accountability and cost discipline. A structured KPI-based performance framework was implemented to enhance alignment between individual objectives and Group priorities, strengthening performance transparency and accountability across entities. Digital HR workflows were further enhanced during the year to improve process efficiency, documentation control and governance visibility. CAREER & LEADERSHIP DEVELOPMENT In 2025, the Group developed a formalised Career Pathway framework to provide clearer role progression guidelines, defined competency expectations and structured development milestones across departments. Phased implementation is planned to support capability building and long-term workforce planning. The Group also strengthened its Succession Management framework through structured key position identification, competency benchmarking and readiness assessment for critical leadership roles. This enhances leadership continuity and organisational resilience. Efforts were made to strengthen cross entity alignment of HR policies and governance standards across the Group’s operating countries. LEARNING, EDUCATION & TALENT PIPELINE Continuous learning remains a priority across the Group. Structured training initiatives and orientation enhancements were implemented to support functional competency development. The Higher Learning Education (“HLE”) programme continues to provide financial assistance to eligible employees pursuing recognised professional qualifications relevant to their roles. MegaChem also supports early talent development through internship placements and Management Trainee opportunities, contributing to long-term talent pipeline sustainability. SUSTAINABILITY, COMPLIANCE & EMPLOYEE ENGAGEMENT HR actions during the year focused on strengthening sustainability alignment, regulatory compliance and workforce risk governance. This included supporting EcoVadis reassessment initiatives, reinforcing fair and progressive employment practices, conducting structured HR risk assessments, reviewing selected policies and procedures, and strengthening compliance oversight in collaboration with relevant departments. Employee engagement initiatives, including the Employee Opinion Survey and recognition programmes, were introduced to promote feedback culture, transparency and positive workplace engagement across the Group. Through these initiatives, MegaChem continues to build a resilient, accountable and future-ready workforce to support sustainable growth and long-term value creation. MEGACHEM LIMITED ANNUAL REPORT 2025 24 OUR HUMAN CAPITAL
AT MEGACHEM, WE ARE CONSTANTLY PURSUING HIGHER STANDARDS OF BUSINESS EXCELLENCE. OUR STRING OF ACHIEVEMENTS AND AWARDS GARNERED OVER THE YEARS ATTEST TO OUR CUSTOMERFOCUSED CORPORATE VALUES AND QUALITY STANDARDS. MEGACHEM LIMITED ANNUAL REPORT 2025 25 OUR ACHIEVEMENT
BOARD OF DIRECTORS Yeo Wee Kiong (Independent and Non-Executive Chairman) Sidney Chew Choon Tee (Managing Director) Sim Guan Seng (Independent Director) Daniel Loh Hong Chye (Independent Director) Yasutaka Kawamura (Non-Executive and Non-Independent Director) AUDIT COMMITTEE Sim Guan Seng (Chairman) Yeo Wee Kiong Daniel Loh Hong Chye REMUNERATION COMMITTEE Daniel Loh Hong Chye (Chairman) Yeo Wee Kiong Sim Guan Seng NOMINATING COMMITTEE Yeo Wee Kiong (Chairman) Sim Guan Seng Sidney Chew Choon Tee EXECUTIVE COMMITTEE Sidney Chew Choon Tee (Chairman) Francis Yau Thiam Hwa Kwok Hwee Peng COMPANY SECRETARIES Kwok Hwee Peng Peck Jen Jen REGISTERED OFFICE 11 Tuas Link 1 Singapore 638588 Tel: (65) 6933 9999 Fax: (65) 6863 2818 Website: www.megachem.com SHARE REGISTRAR AND SHARE TRANSFER OFFICE Tricor Barbinder Share Registration Services (a division of Tricor Singapore Pte Ltd) 9 Raffles Place #26-01 Republic Plaza Singapore 048619 Tel: (65) 6236 3333 EXTERNAL AUDITOR RSM SG Assurance LLP 8 Wilkie Road #03-08 Wilkie Edge Singapore 228095 Partner-in-charge: Tan Beng Teck (with effect from financial year ended 31 December 2022) INTERNAL AUDITOR Baker Tilly Consultancy (Singapore) Pte Ltd 600 North Bridge Road #05-01 Parkview Square Singapore 188778 PRINCIPAL BANKERS Citibank, N.A. HSBC Oversea-Chinese Banking Corporation Limited Standard Chartered Bank United Overseas Bank Limited Resona Merchant Bank CONTINUING SPONSOR SAC Capital Private Limited 1 Robinson Road #21-01 AIA Tower Singapore 048542 Tel: (65) 6232 3232 INVESTOR RELATIONS ADVISOR CDR 158 Cecil Street #05-01 Singapore 069545 Tel: (65) 6534 5122 Email: Megachem@cdrconsultancy.com INVESTOR RELATIONS CONTACT CDR Chia Hui Kheng/Jaslin Tan Email: Megachem@cdrconsultancy.com Megachem Limited Francis Yau Email: fsyau@sg.megachem.com INVESTOR RELATIONS WEBSITE www.megachem.com www.shareinvestor.com PERSONAL DATA PROTECTION OFFICER CONTACT Megachem Limited Woo Tze Yung Email: tywoo@sg.megachem.com WHISTLE BLOWING CONTACT Email: auditcom@sg.megachem.com MEGACHEM LIMITED ANNUAL REPORT 2025 26 CORPORATE INFORMATION
MEGACHEM LIMITED MEGACHEM MANUFACTURING PTE LTD MEGACHEM RAYA PTE LTD MEGACHEM (SHANGHAI) PTE LTD 11, Tuas Link 1 Singapore 638588 Tel: +65 6933 9999 Fax: +65 6863 2818 Email: enquiry@sg.megachem.com Website: www.megachem.com C.N. CHEMICALS SDN BHD No. 9, Jalan SKI 1/KU7 Kawasan Industri Hi-Tech Sungai Kapar Indah, Mukim Kapar 42200 Klang, Selangor, Malaysia Tel: +603 3 081 2399 Fax: +603 3 081 2599 Email: enquiry@my.megachem.com MEGACHEM (UK) LTD Castlegate Business Park Caldicot, Monmouthshire NP26 5AD, United Kingdom Tel: +44 0 1291 422747 Fax: +44 0 1291 422479 Email: enquiry@uk.megachem.com Website: www.uk.megachem.com MEGACHEM MIDDLE EAST FZE LIU 10 Unit AB03 South Zone Jebel Ali Free Zone Dubai, United Arab Emirates Tel: +971 4 886 5458, 286 6143 Fax: +971 4 285 1615 Email: enquiry@uae.megachem.com MEGACHEM INTERNATIONAL TRADING (SHANGHAI) CO. LTD No. 988 Dingxi Road Unit 1502, Yintong Building Shanghai, China 200050 Tel: +86 21 5237 5028 Fax: +86 21 5237 5025 Email: enquirysh@cn.megachem.com Website: www.megachem.net.cn MEGACHEM INTERNATIONAL TRADING (BEIJING) CO. LTD Room 2212, Building 7 First City Mingdundao External Guangqumenwai Street Dongcheng District, Beijing, China 100022 Tel: +86 10 8751 2969 Fax: +86 10 8751 3382 Email: enquirybj@cn.megachem.com MEGACHEM AUSTRALIA PTY LTD Suite 2, 34 Edgewater Boulevard Maribyrnong, Victoria, Australia 3032 Tel: +61 03 9326 2882 Fax: +61 03 9375 7886 Email: enquiry@au.megachem.com MEGACHEM VIETNAM CO. LTD Unit 703, 7th Floor 45 Dinh Tien Hoang Street Sai Gon Ward Ho Chi Minh City, Vietnam Tel: +84 28 3910 6638 Fax: +84 28 3910 6636 Email: enquiry@vn.megachem.com P.T. MEGA KEMIRAYA Wisma 77, 6 Floor Jl. Letjend S.Parman Kav.77 Slipi Jakarta Barat, 11410 Indonesia Tel: +62 21 5363189 Fax: +62 21 5358987 Email: enquiry@id.megachem.com MEGACHEM PHILS INC Greenlee Compound, Bay 1 143 M.L Quezon Extension Street Brgy Manggahan, Pasig City Philippines, 1611 Tel: +632 7914 0837 Email: enquiry@ph.megachem.com MEGACHEM SPECIALTY CHEMICALS (I) PVT LTD Fairmount, 702 & 703, Plot No. 4 & 6 Sector 17, Palm Beach Road Sanpada 400705, Navi Mumbai, India Tel: +91 22 4026 0957, 4026 0958 Email: info@in.megachem.com Fax: +66 2739 6332 MEGACHEM (THAILAND) PUBLIC COMPANY LIMITED 25 Soi Chalongkrung 31 Ladkrabang Industrial Estate Soi G1/9 Lam Plathew, Latkrabang Bangkok, Thailand 10520 Tel: +66 2739 6333 Email: enquiry@megachem.co.th MEGACHEM PLUS LTD. 278/40 Moo10 Bangpla Bangplee, Samutprakarn Thailand 10540 Tel: +66 2752 5145-7 Fax: +66 2752 5148 Email: enquiry@megachem.co.th MEGA FUJI GRAPHITE LTD. 25 Soi Chalongkrung 31 Ladkrabang Industrial Estate Soi G1/9 Lam Plathew, Latkrabang Bangkok, Thailand 10520 Tel: +66 2739 6333 Fax: +66 2739 6332 Email: enquiry@megafujigraphite.co.th GREEN LEAF CHEMICAL CO., LTD. 15/8 – 15/9 Pattanachonnabot 3 Road Klongsongtonnoon, Ladkrabang Bangkok, Thailand 10520 Tel: +66 2 045 2935, 045 2940-2 Fax: +66 2 138 9624 Email: info@greenleafchemical.net MEGACHEM (MYANMAR) LIMITED No. 42/302(B), Sat Mhu 1st Road Sat Mhu Zone 1, Shwe Pyi Thar Township Yangon, Myanmar 11411 Tel: +959 898 337766 Email: megachemmyanmar@gmail.com MEGACHEM LIMITED ANNUAL REPORT 2025 27 GLOBAL OFFICE CONTACT
(1) FY 2023 and FY 2024 Profit After Tax adjusted for impact of a fire incident in 2023. 2021 2022 8.0 2023 6.1 1.9 7.9 2.9 2023 (adj)(1) (5.8) 2024 (adj)(1) 2024 2021 2022 2023 2024 2025 SALES (S$’MIL) PROFIT/(LOSS) AFTER TAX (S$’MIL) 2025 3.9 143.7 123.0 128.8 124.4 138.9 2021 2021 2022 2022 2023 2023 2024 2024 2025 2025 CASH (S$’MIL) 11.9 0.42 13.6 0.30 16.0 0.16 14.0 0.34 11.5 0.30 NET GEARING RATIO (TIMES) MEGACHEM LIMITED ANNUAL REPORT 2025 28 FINANCIAL HIGHLIGHTS
INCOME STATEMENT 2021 2022 2023 2023(adj)(1) 2024 2024(adj)(1) 2025 Sales (S$’mil) 138.9 143.7 123.0 128.8 124.4 Sales Growth (%) 32.0% 3.5% (14.4%) 4.7% (3.4%) Profit/(loss) After Tax (S$’mil) 8.0 6.1 (5.8) 1.9 7.9 2.9 3.9 Profit/(loss) After Tax Growth (%) 52.0% (24.1%) NM NM (50.6%) Profit/(loss) After Tax Margin (%) 5.8% 4.2% (4.7%) 6.1% 3.1% EBITDA (S$’mil) 11.1 10.5 (1.9) 11.8 6.8 Earnings/(loss) per share (cents) 5.82 4.41 (4.43) 5.93 2.88 Weighted Average Number of Ordinary Shares (mil) 133.3 133.3 133.3 133.3 133.3 ROE (%) 13.6% 10.0% (11.8%) 13.5% 6.3% HALF-YEAR BREAKDOWN 2021 2022 2023 2024 2025 Sales for first half (S$’mil) 65.9 75.2 60.7 65.2 64.1 % Growth 1H vs 1H 26.7% 14.1% (19.3%) 7.4% (1.7%) Sales for second half (S$’mil) 73.0 68.5 62.3 63.7 60.3 % Growth 2H vs 2H 37.1% (6.1%) (9.1%) 2.2% (5.2%) Profit After Tax for first half (S$’mil) 3.8 4.5 0.9 2.0 1.7 % Growth 1H vs 1H 34.0% 18.0% (79.1%) >100.0% (13.4%) Profit/(loss) After Tax for second half (S$’mil) 4.2 1.6 (6.7) 5.9 2.2 % Growth 2H vs 2H 72.7% (61.8%) NM NM (63.1%) FINANCIAL POSITION 2021 2022 2023 2024 2025 Total Assets (S$’mil) 110.9 117.1 100.2 104.5 115.0 Shareholders Equity (S$’mil) 57.3 58.6 50.0 58.5 61.3 Net Asset/Share (cents) 42.95 43.96 37.48 43.92 46.00 Borrowings (S$’mil) 28.9 36.4 28.5 25.2 34.7 Gearing ratio (times) 0.51 0.62 0.57 0.43 0.57 Net gearing ratio (times) 0.30 0.42 0.30 0.16 0.34 Cash (S$’mil) 11.5 11.9 13.6 16.0 14.0 Current ratio (times) 1.8 1.8 1.7 1.8 1.6 DIVIDEND 2021 2022 2023 2024 2025 Net Dividend/Share (cents) 2.0 2.0 0.0 1.0 1.0 Net Dividend Payout (%)(2) 34.4% 45.4% 0.0 46.0% 34.8% Net Dividend Yield (%)(2)(3) 4.8% 3.9% 0.0 2.3% 2.4% Notes: (1) Adjusted for a one-off impact from a fire incident in 2023 (2) Dividend payout and dividend yield for FY 2024 are based on net profit after tax adjusted for one-off impact from a fire incident (3) Dividend yield based on closing price as at 31 December of the respective FY NM : not meaningful MEGACHEM LIMITED ANNUAL REPORT 2025 29 FINANCIAL HIGHLIGHTS
GLOBAL MARKETS INDUSTRY COVERAGE 55% 58% 13% 10% 0% 0% 13% 13% 3% 3% 9% 8% 7% 8% 0% 0% Performance Coatings & Polymers Advanced Polymer Composites Surface Technology Biotech Resource, Oil & Gas ASEAN N Asia America Europe S Asia Middle East Australia Africa FY 2025 FY 2024 31% 14% 23% 23% 9% FY 2024 32% 11% 28% 21% 8% FY 2025 MEGACHEM LIMITED ANNUAL REPORT 2025 30 FINANCIAL HIGHLIGHTS
PROFITABILITY REVIEW (a) Sales Variance Fav/(Unfav) Variance Fav/(Unfav) H2 2025 H1 2025 H2 2025 vs H1 2025 H2 2024 H2 2025 vs H2 2024 S$’000 S$’000 S$’000 % S$’000 S$’000 % ASEAN 32,529 35,594 (3,065) (8.6) 36,639 (4,110) (11.2) Europe 7,613 8,487 (874) (10.3) 7,730 (117) (1.5) North Asia 8,091 7,784 307 3.9 7,060 1,031 14.6 Middle East 5,183 6,388 (1,205) (18.9) 5,637 (455) (8.1) Australia 4,742 3,722 1,020 27.4 4,543 199 4.4 South Asia 1,995 1,769 226 12.8 1,910 86 4.5 America 49 209 (160) (76.6) 61 (12) (19.7) Africa 137 120 17 14.2 86 51 59.3 Total 60,339 64,073 (3,734) (5.8) 63,666 (3,327) (5.2) FY 2025 FY 2024 Variance Fav/(Unfav) S$’000 % S$’000 % S$’000 % ASEAN 68,123 54.8 74,252 57.7 (6,129) (8.3) Europe 16,100 12.9 16,284 12.6 (184) (1.1) North Asia 15,875 12.8 12,451 9.7 3,424 27.5 Middle East 11,571 9.3 10,987 8.5 584 5.3 Australia 8,464 6.8 10,216 7.9 (1,752) (17.1) South Asia 3,764 3.0 4,246 3.3 (482) (11.4) America 258 0.2 166 0.1 92 55.4 Africa 257 0.2 240 0.2 17 7.1 Total 124,412 100.0 128,842 100.0 (4,430) (3.4) MEGACHEM LIMITED ANNUAL REPORT 2025 31 OPERATING AND FINANCIAL REVIEW
GEOGRAPHIC SEGMENT SALES ANALYSIS H2 2025 vs H1 2025 Demand for chemicals contracted in the second half of 2025 (“H2 2025”). Except for Australia, Africa and North Asia and South Asia markets, most of our markets recorded lower sales in H2 2025 over first half of 2025 (“H1 2025”). The biggest decrease came from ASEAN market which recorded lower sales of S$3.1 million or 8.6% as compared to H1 2025. This was followed by Middle East and Europe markets which recorded a dip in sales of S$1.2 million or 18.9% and S$0.9 million or 10.3% respectively. Other market such as America market fell by S$0.2 million. Sales to Australia, North Asia and South Asia markets increased by S$1.0 million or 27.4%, S$0.3 million or 3.9% and S$0.2 million or 12.8% respectively. As a result, total sales decreased by S$3.7 million or 5.8% to S$60.3 million in H2 2025 vis-à-vis sales of S$64.1 million in H1 2025. H2 2025 vs H2 2024 As compared to second half of 2024 (“H2 2024”), total sales decreased by S$3.3 million or 5.2%. The biggest decrease came from ASEAN market which recorded lower sales of S$4.1 million or 11.2% as compared to H2 2024 while sales to Middle East and Europe markets recorded a decrease of S$0.5 million or 8.1% and S$0.1 million or 1.5% respectively. On the other hand, North Asia market recorded an increase in sales of S$1.0 million or 14.6% while sales to each of our Africa, Australia and South Asia markets grew by S$0.1 million to S$0.2 million. FY 2025 vs FY 2024 As compared to the full year of 2024 (“FY 2024”), sales decreased by S$4.4 million or 3.4% to S$124.4 million for the full year of 2025 (“FY 2025”). Sales to ASEAN, Australia and South Asia markets decreased by S$6.1 million or 8.3%, S$1.8 million or 17.1% and S$0.5 million or 11.4% respectively. Other markets such as Europe market recorded lower sales of S$0.2 million. Sales to North Asia and Middle East markets recorded an increase of S$3.4 million or 27.5% and S$0.6 million or 5.3% respectively while Africa and America recorded smaller increase of less than S$0.1 million. BUSINESS ACTIVITY SEGMENT SALES BREAKDOWN Variance Fav/(Unfav) Variance Fav/(Unfav) H2 2025 H1 2025 H2 2025 vs H1 2025 H2 2024 H2 2025 vs H2 2024 S$’000 S$’000 S$’000 % S$’000 S$’000 % Distribution activity 58,811 62,328 (3,517) (5.6) 61,575 (2,764) (4.5) Manufacturing activity 1,528 1,745 (217) (12.4) 2,091 (563) (26.9) Total Sales 60,339 64,073 (3,734) (5.8) 63,666 (3,327) (5.2) FY 2025 FY 2024 Variance Fav/(Unfav) S$’000 S$’000 S$’000 % Distribution activity 121,139 124,920 (3,781) (3.0) Manufacturing activity 3,273 3,922 (649) (16.5) Total Sales 124,412 128,842 (4,430) (3.4) MEGACHEM LIMITED ANNUAL REPORT 2025 32 OPERATING AND FINANCIAL REVIEW
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