H2 2025 vs H1 2025 Operating expenses for H2 2025 decreased by S$0.7 million or 5.1% to S$13.6 million as compared to H1 2025 (S$14.3 million). The decrease was mainly related to lower employee remuneration of S$0.4 million, lower warehouse storage charges and lower net foreign exchange losses of S$0.2 million each. The decrease was partially offset by higher professional fees and travelling expenses of S$0.1 million each. H2 2025 vs H2 2024 As compared to H2 2024 (S$14.8 million), operating expenses decreased by S$1.2 million or 8.5%. Similarly, the decrease was mainly due to lower employee remuneration of S$0.5 million, lower foreign exchange losses of S$0.4 million, lower warehouse storage charges and professional fees of S$0.2 million each. FY 2025 vs FY 2024 Year-on-year, operating expenses for FY 2025 decreased by S$4.7 million or 14.4% to S$27.8 million. The decrease was mainly related to the fire incident. Demolition and decontamination costs and waste disposal costs totalled of S$3.8 million were incurred in FY 2024. Other decrease in expenses were employee remuneration of S$0.4 million, net foreign exchange losses of S$0.2 million, professional fees of S$0.2 million and transport charges of S$0.1 million. On the other hand, insurance expenses increased by S$0.1 million. (e) Finance costs Finance costs comprised the following:– Variance Fav/(Unfav) Variance Fav/(Unfav) H2 2025 H1 2025 H2 2025 vs H1 2025 H2 2024 H2 2025 vs H2 2024 S$’000 S$’000 S$’000 % S$’000 S$’000 % Bills payables 412 435 23 5.1 516 104 20.2 Bank loans 177 212 35 16.5 267 90 33.6 Bank overdraft 2 12 10 80.2 39 37 94.0 Finance leases 14 15 1 12.2 18 4 21.7 Lease liabilities 68 65 (3) (4.9) 71 3 4.1 Total finance costs 673 739 66 8.8 911 238 26.0 MEGACHEM LIMITED ANNUAL REPORT 2025 36 OPERATING AND FINANCIAL REVIEW
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