(i) Property, plant and equipment The carrying value of property, plant and equipment increased by S$13.6 million from S$16.8 million as at 31 December 2024 to S$30.4 million as at 31 December 2025. This was due to additional capital expenditure of S$14.2 million (mainly for construction in progress and plant and machinery) and translation gains of S$0.3 million. The increase was offset by depreciation charge of S$1.0 million in the current year. (j) Right-of-use assets The carrying value of right-of-use assets remained relatively unchanged at S$2.3 million. New assets leased of S$0.3 million were offset by depreciation charge of S$0.3 million in the current year. (k) Investment in associates Carrying value of our associates increased by S$0.8 million from S$9.4 million as at 31 December 2024 to S$10.2 million as at 31 December 2025. Positive contribution from operation in the current year of S$1.2 million and translation gains of S$0.2 million was offset by dividend return of S$0.5 million. (l) Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income as at 31 December 2025 and 31 December 2024 related to investment in unquoted equity shares. There was no change in the fair value of the unquoted equity shares. (m) Trade and other receivables Net trade receivables increased by S$0.7 million from S$22.9 million as at 31 December 2024 to S$23.6 million as at 31 December 2025. The increase in trade receivables was mainly due to higher turnover days. Turnover days increased from 66 days in FY 2024 to 69 days in FY 2025. Other receivables increased by S$0.2 million as compared to 31 December 2024. (n) Inventories Inventories decreased by S$2.7 million or 8.5% from S$31.7 million as at 31 December 2024 to S$29.0 million as at 31 December 2025. The decrease in inventory was mainly due to prudent inventory management. Inventory turnover days remained relatively unchanged at 147 days for FY 2025. (o) Other current assets Other current assets decreased by S$0.1 million or 5.7% to S$2.5 million as at 31 December 2025 primarily due to lower prepayment of expenses (S$0.3 million) offset by higher advance payments to suppliers (S$0.2 million). (p) Financial assets and financial liabilities at fair value through profit or loss Financial assets at fair value through profit or loss were minimal as at 31 December 2025. Financial liabilities at fair value through profit or loss increased by S$13,000 to S$22,000 as at 31 December 2025. MEGACHEM LIMITED ANNUAL REPORT 2025 39 OPERATING AND FINANCIAL REVIEW
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