32. FINANCIAL INFORMATION BY OPERATING SEGMENTS Disclosure of information about operating segments, products and services, the geographical areas, and the major customers are made as required by SFRS (I) 8 Operating Segments. This disclosure standard has no impact on the reported results or financial position of the Group. Management has determined the operating segments based on the reports reviewed by the Executive Committee (“Exco”) that are used to make strategic decisions. The Exco comprises the Managing Director, the Chief Financial Officer and the Group Finance Manager. The Exco considers the business from geographic segment perspective. The Group operates in five main geographical segments (Singapore, Malaysia, United Kingdom, China and Middle East) by location of revenue and assets. Other geographical areas mainly comprise the Philippines, Vietnam, India, Australia and Indonesia, none of which constitute a separately, reportable segment. All geographic locations are engaged in the trading in chemical and chemical-related products. In addition, the segment in Singapore also derives revenue from blending. As the revenue and assets for blending becomes a significant portion of the Singapore segment, the Exco considers it beneficial to review it as a separate business segment from the distribution activities of the Group. The Exco assesses the performance of the operating segments based on net profit before tax. Inter-segment sales are measured on the basis that the entity actually used to price the transfers. Internal transfer pricing policies of the Group are as far as practicable based on market prices. The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies. There are no customers with revenue transactions of over 10% of the Group revenue. The following tables illustrate the information about the reportable segment profit or loss, assets and liabilities. Profit or loss and reconciliations for geographical segments Singapore Malaysia United Kingdom China Middle East Others Unallocated Group 2025 $ $ $ $ $ $ $ $ Sales Total sales by segment 52,945,496 12,383,505 18,666,504 17,362,413 11,734,639 22,549,732 – 135,642,289 Inter-segment sales (6,471,707) (516,198) (911,098) (3,132,209) (57,030) (141,588) – (11,229,830) 46,473,789 11,867,307 17,755,406 14,230,204 11,677,609 22,408,144 – 124,412,459 Segment result 1,583,193 1,188,284 5,509 558,792 366,018 631,309 – 4,333,105 Interest income – banks – – – – – – 177,551 177,551 Finance costs – – – – – – (1,412,254) (1,412,254) Share of profit of associates – – – – – – 1,167,459 1,167,459 Profit before income tax 1,583,193 1,188,284 5,509 558,792 366,018 631,309 (67,244) 4,265,861 Income tax expense – – – – – – (358,501) (358,501) Net profit 1,583,193 1,188,284 5,509 558,792 366,018 631,309 (425,745) 3,907,360 Other segment items Capital expenditure 13,829,750 226,324 – 15,713 9,969 156,309 – 14,238,065 Depreciation 726,755 287,231 100,200 73,238 5,361 132,473 – 1,325,258 MEGACHEM LIMITED ANNUAL REPORT 2025 171 31 DECEMBER 2025 NOTES TO THE FINANCIAL STATEMENTS
RkJQdWJsaXNoZXIy NTM2MDQ5