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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