JE Cleantech Holdings Ltd 6-K, filed Oct 20, 2026
JE Cleantech Holdings Ltd (JCSE)
About this 6-K
JE Cleantech Holdings Ltd filed this 6-K on October 20, 2026.
JE Cleantech Holdings Limited reported revenue of SGD20.8 million and net income of SGD1.7 million for the six-month period ended June 30, 2026. It also disclosed a cybersecurity fraud loss of approximately SGD1.0 million. AI summary
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 under
the Securities Exchange Act of 1934
For the month of October 2026
Commission File Number: 001-41335
(Exact name of Registrant as specified in its charter)
3 Woodlands Sector 1
Singapore 738361
(Address of principal executive offices)
Indicate by check mark whether the Registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
TABLE OF CONTENTS
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Overview
JE Cleantech Holdings Limited (together with its subsidiaries, our “Group”) is based in Singapore and is principally engaged in (i) the sale of cleaning systems and other equipment; and (ii) the provision of centralized dishwashing and ancillary services. Our Group commenced business in the selling of cleaning systems in 2005, before starting our business in the design, development, manufacture and sale of cleaning systems in Singapore in 2006. We design, develop, manufacture and sell cleaning systems for various industrial end-use applications to our customers mainly in Singapore and Malaysia. We have also provided centralized dishwashing services since 2013 and general cleaning services since 2015 mainly for food and beverage establishments in Singapore.
For the six-month periods ended June 30, 2025 and 2026, our revenue amounted to SGD6.5 million and SGD20.8 million, respectively. Our net loss amounted to SGD0.8 million and net income amounted to SGD1.7 million for the six-month periods ended June 30, 2025 and 2026, respectively.
The following table shows our Statement of Operations data for the six-month periods ended June 30, 2025 and 2026 in SGD and, for 2026, in USD. For further information regarding the results of our operations, see our unaudited interim condensed consolidated financial statements appearing elsewhere in this Report.
| For the six-month periods ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| SGD’000 | SGD’000 | USD’000 (1) | ||||||||||
| Revenues | 6,494 | 20,814 | 16,084 | |||||||||
| Cost of revenues | (4,866 | ) | (13,276 | ) | (10,259 | ) | ||||||
| Gross profit | 1,628 | 7,538 | 5,825 | |||||||||
| Operating expenses: | ||||||||||||
| Selling and marketing expenses | (107 | ) | (583 | ) | (451 | ) | ||||||
| General and administrative expenses | (1,943 | ) | (3,377 | ) | (2,610 | ) | ||||||
| Total operating expenses | (2,050 | ) | (3,960 | ) | (3,061 | ) | ||||||
| Income/(loss) from operations | (422 | ) | 3,578 | 2,764 | ||||||||
| Other income/(expense): | ||||||||||||
| Other income | 268 | 318 | 246 | |||||||||
| Interest expense | (238 | ) | (114 | ) | (88 | ) | ||||||
| Other expense | (420 | ) | (262 | ) | (202 | ) | ||||||
| Loss from cybersecurity incident | - | (1,009 | ) | (780 | ) | |||||||
| Total other income/(expense) | (390 | ) | (1,067 | ) | (824 | ) | ||||||
| Income/(loss) before tax expense | (812 | ) | 2,511 | 1,940 | ||||||||
| Income tax expense | (20 | ) | (811 | ) | (627 | ) | ||||||
| Net income/(loss) | (832 | ) | 1,700 | 1,313 | ||||||||
(1) Calculated at the rate of US$0.7727 = SGD1, as set forth in the statistical release of the Federal Reserve System on June 30, 2026.
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Key Factors Affecting the Results of Our Group’s Operations
Our financial condition and results of operations have been and will continue to be affected by a number of factors, many of which may be beyond our control, including those factors set out in the section headed “Risk Factors’’ in our Annual Report for the fiscal year ended December 31, 2025, filed with the United States Securities and Exchange Commission (the “SEC”) on May 8, 2026, and those set out below:
Dependence on our major customer groups
Our aggregate sales generated from our top five customer groups were 54.7% and 90.0% of our revenue for the six-month periods ended June 30, 2025 and 2026, respectively. Accordingly, our sales would be significantly negatively affected by a reduction in orders from our top five customer groups. Maintaining a certain level of customer orders is subject to certain inherent risks, many of which are beyond our control, including, among others, risks related to changes and developments in the local political, regulatory and business conditions that may affect customers’ purchases from us. A reduction in demand for our products and services by our top customer groups could have a material adverse effect on our business, results of operations and financial condition, and could affect our ability to remain profitable and achieve business growth.
In addition to maintaining and growing our business with existing customers, the success of our business also depends on our ability to attract new customers. If we are unable to attract new customers, our business growth will be hampered and our business, financial condition, results of operations and prospects may be materially and adversely affected.
Non-recurring nature of our sale of cleaning systems and other equipment business
We design, manufacture and sell cleaning systems and other equipment on an order-by-order basis. Our customers are under no obligation to continue to award contracts to or place orders with us and there is no assurance that we will be able to secure new orders in the future. Moreover, our Group generally must go through a tendering or quotation process to secure new orders, and the number of orders and the amount of revenue that we are able to derive therefrom are affected by a series of factors including but not limited to changes in our clients’ businesses and changes in market and economic conditions. The result of such process is beyond our control and there is no assurance that our Group will secure new projects from future tender submissions or new orders. Accordingly, our results of operations, revenue and financial performance may be adversely affected if our Group is unable to obtain new orders from our customers of contract values, size and/or margins comparable to previous orders.
Fluctuations in the cost of our raw materials
Raw materials, such as steel and electronic components, are the largest component of our cost of revenues, representing 17.6% and 63.7% of our total cost of revenues for the six-month periods ended June 30, 2025 and 2026, respectively. As our contract price is fixed once our customer confirms an order for a cleaning system or other equipment, it is difficult for us to manage the pricing of our cleaning systems and other equipment to pass on any increase in costs to our customers. Any fluctuations in the cost of raw materials would affect our profitability.
The prices at which we purchase such raw materials are determined principally by market forces, such as the relevant supply of and demand for such raw materials and by our bargaining power with our suppliers. During the six-month periods ended June 30, 2025 and 2026, the majority of our raw materials were commonly available from the marketplace, and their prices are affected by market forces. We monitor supply and cost trends of these raw materials and take appropriate actions to obtain the materials we need for production. We expect fluctuations in the cost of key materials to continue to affect our margins.
All of the raw materials we procure, including stainless steel, aluminum and electronic components, are purchased from a number of suppliers to ensure adequate supply and efficient delivery to our production and processing facilities.
We may not be able to maintain compliance with Nasdaq’s continued listing requirements.
In November 2022 and again in December 2023, we received notifications from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) stating that our Ordinary Shares had failed to maintain a minimum bid price of $1.00 over the last 30 consecutive business days as required by Nasdaq’s Minimum Bid Price Requirement, putting our Ordinary Shares at risk of being delisted from Nasdaq. Although, in both of those instances, we regained compliance and our Ordinary Shares were not delisted from Nasdaq, the trading price of our shares is volatile and there can be no assurance that it will not drop below $1.00 for 30 consecutive business days in the future. If that happens, and if we are unable to regain compliance with the Minimum Bid Price Requirement, our Ordinary Shares could be delisted from Nasdaq.
If, in the future, our Ordinary Shares are delisted from Nasdaq, we could face significant material adverse consequences, including:
| ● | limited availability of market quotations for our Ordinary Shares; | |
| ● | reduced liquidity for our Ordinary Shares; | |
| ● | a determination that our Ordinary Shares are “penny stock,” which will require brokers trading in our shares to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for our Ordinary Shares; | |
| ● | a limited amount of news and analyst coverage; and | |
| ● | decreased ability to issue additional securities or obtain additional financing in the future. |
In addition, as long as our Ordinary Shares are listed on Nasdaq, U.S. federal law prevents or preempts the states from regulating their sale, although the law does allow the states to investigate companies if there is a suspicion of fraud and, if there is a finding of fraudulent activity, then the states can regulate or bar their sale. If we were no longer listed on Nasdaq, we would be subject to regulations in each state in which we offer our shares in the future.
| 4 |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion is based on our Group’s historical results of operations and may not be indicative of our Group’s future operating performance.
Revenue
During the six-month periods ended June 30, 2025 and 2026, our customers were from various industries, including HDD manufacturing, semiconductor manufacturing, food and beverage and industrial electronic. As of the date of this Report, our customers continue to be from such various industries. Our cleaning systems and other equipment were mainly sold in Singapore and Malaysia, and we provided centralized dishwashing and ancillary services to customers in Singapore.
Our revenue was derived from (i) our sale of cleaning systems and other equipment business; and (ii) our provision of centralized dishwashing and ancillary services business. The following table sets out the revenue generated from each of our business sectors during the six-month periods ended June 30, 2025 and 2026:
| Six-month periods ended June 30, | ||||||||||||||||
| 2025 | 2026 | |||||||||||||||
| SGD’000 | % | SGD’000 | % | |||||||||||||
| Sale of cleaning systems and other equipment business | ||||||||||||||||
| Sale of precision cleaning systems | 1,391 | 21.4 | 14,814 | 71.2 | ||||||||||||
| Sale of other cleaning systems and other equipment | 1,077 | 16.6 | 1,005 | 4.8 | ||||||||||||
| Repair and servicing of cleaning systems and sale of related parts | 346 | 5.3 | 832 | 4.0 | ||||||||||||
| Sub-total | 2,814 | 43.3 | 16,651 | 80.0 | ||||||||||||
| Provision of centralized dishwashing and ancillary services business | ||||||||||||||||
| Provision of centralized dishwashing and general cleaning services | 3,433 | 52.9 | 3,912 | 18.8 | ||||||||||||
| Leasing of dishwashing equipment | 247 | 3.8 | 251 | 1.2 | ||||||||||||
| Sub-total | 3,680 | 56.7 | 4,163 | 20.0 | ||||||||||||
| Total | 6,494 | 100.0 | 20,814 | 100.0 | ||||||||||||
Our total revenue increased by SGD14.3 million or 220.5% to SGD20.8 million for the six-month period ended June 30, 2026 from SGD6.5 million for the six-month period ended June 30, 2025. The increase was primarily attributable to our sale of precision cleaning systems, which increased by SGD13.4 million. This was driven by higher sales to a group of key customers in Malaysia, whose major orders were rescheduled for delivery and commissioning in the first half of 2026 pursuant to their factory upgrading and expansion plans. As revenue is recognised upon completion of installation and customer acceptance, these orders were recognised in the six-month period ended June 30, 2026. As a result, revenue from customers in Malaysia increased to SGD12.8 million (61.5% of total revenue) as compared to SGD0.6 million (9.7% of total revenue) in the prior period. As this increase was largely attributable to the one-time rescheduling of these orders, we do not expect revenue in future periods to remain at this level.
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The following table sets forth the movement in orders backlog for our sale of cleaning systems and other equipment in terms of approximate contract value of orders during the six-month periods ended June 30, 2025 and 2026.
| Six-month periods ended June 30, | ||||||||
| 2025 | 2026 | |||||||
| (SGD’000) | (SGD’000) | |||||||
| Outstanding contract value as of beginning of period(1) | 14,551 | 26,372 | ||||||
| New contract value for the period | 4,282 | 8,717 | ||||||
| Revenue recognized for the period | (2,814 | ) | (16,651 | ) | ||||
| Outstanding contract value as of period end(2) | 16,019 | 18,438 | ||||||
(1) Outstanding contract value as of beginning of period represents the contract value of orders which were not completed as of the beginning of the relevant period.
(2) Outstanding contract value as of period-end represents the contract value of ongoing orders as of the end of the relevant year or period that will be carried forward to the next year or period.
Revenue by geographical locations
For the six-month periods ended June 30, 2025 and 2026, 67.3% and 23.0% of our total revenue, respectively, was generated from customers located in Singapore and 9.7% and 61.5% of our total revenue, respectively, was generated from customers located in Malaysia. For the same six-month periods, our revenue generated from customers located in other countries accounted for 23.0% and 15.5% of our total revenue, respectively.
Cost of revenues
During the six-month periods ended June 30, 2025 and 2026, our cost of revenues was mainly comprised of raw materials costs, labor costs, sub-contracting costs and production overheads. For the six-month periods ended June 30, 2025 and 2026, our cost of revenues amounted to SGD4.9 million and SGD13.3 million, respectively. The cost of revenues increased in line with the increase in our revenues.
| Six-month periods ended June 30, | ||||||||||||||||
| 2025 | 2026 | |||||||||||||||
| SGD’000 | % | SGD’000 | % | |||||||||||||
| Cost of sale of cleaning systems and other equipment | 1,729 | 35.5 | 9,656 | 72.7 | ||||||||||||
| Cost of provision of centralized dishwashing and ancillary services | 3,137 | 64.5 | 3,620 | 27.3 | ||||||||||||
| Total | 4,866 | 100.0 | 13,276 | 100.0 | ||||||||||||
Gross profit and gross profit margin
Our total gross profit amounted to SGD1.6 million and SGD7.5 million for the six-month periods ended June 30, 2025 and 2026, respectively. Our overall gross profit margins were 25.1% and 36.2% for the six-month periods ended June 30, 2025 and 2026, respectively.
Our total gross profit increased by SGD5.9 million for the six-month period ended June 30, 2026, primarily due to higher revenue from the sales of precision cleaning systems, our most profitable business sub-segment, which higher revenue was primarily due to the rescheduling by a group of key customers in Malaysia of orders from the second half of 2025 to the first half of 2026.
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Selling and marketing expenses
Our selling and marketing expenses mainly included sales commission, promotion and marketing expenses and transportation expenses. Our selling and marketing expenses increased by SGD0.5 million to SGD0.6 million for the six-month period ended June 30, 2026 from SGD0.1 million for the six-month period ended June 30, 2025. The increase was mainly due to higher sales commissions incurred on new sales orders secured during the period, which account for part of the significant increase in revenue from our sale of precision cleaning systems, particularly to a new customer that operates in the semiconductor industry and that is located in France.
General and administrative expenses
Our general and administrative expenses primarily consist of: (i) staff cost; (ii) depreciation; (iii) office supplies and upkeep expenses; (iv) travel and entertainment; (v) legal and professional fees; (vi) directors and officers liability insurance; (vii) keyman insurances; (viii) consultancy fee; and (ix) miscellaneous expenses. The following table sets forth the breakdown of our general and administrative expenses for the six-month periods ended June 30, 2025 and 2026:
| Six-month periods ended June 30, | ||||||||||||||||
| 2025 | 2026 | |||||||||||||||
| SGD’000 | % | SGD’000 | % | |||||||||||||
| Staff costs | 1,138 | 58.6 | 1,727 | 51.1 | ||||||||||||
| Depreciation | 68 | 3.5 | 88 | 2.6 | ||||||||||||
| Office supplies and upkeep expenses | 79 | 4.1 | 77 | 2.3 | ||||||||||||
| Travel and entertainment | 154 | 7.9 | 116 | 3.4 | ||||||||||||
| Legal and professional fees | 414 | 21.3 | 292 | 8.6 | ||||||||||||
| Directors and officers liability insurance | 32 | 1.6 | 42 | 1.2 | ||||||||||||
| Keyman insurances | - | - | 601 | 17.8 | ||||||||||||
| Consultancy fee | - | - | 257 | 7.6 | ||||||||||||
| Miscellaneous expenses | 58 | 3.0 | 177 | 5.4 | ||||||||||||
| Total | 1,943 | 100.0 | 3,377 | 100.0 | ||||||||||||
Our general and administrative expenses amounted to SGD1.9 million and SGD3.4 million for the six-month periods ended June 30, 2025 and 2026, respectively, representing 29.9% and 16.2% of our total revenue for the corresponding periods.
Staff costs mainly represented the salaries, employee benefits and retirement benefit costs attributable to our employees and directors’ remuneration. The increase in staff costs for the six-month period ended June 30, 2026 was primarily attributable to (i) the accrual of a performance bonus of SGD0.4 million for our Chief Executive Officer, calculated based on our net income for the period; and (ii) the recruitment of additional engineers to support our operations.
Depreciation expense is charged on our property, plant and equipment which included (i) leasehold buildings; (ii) equipment, furniture and fittings; and (iii) motor vehicles.
Office supplies and upkeep expenses mainly represented office supplies, cleaning costs and utilities expenses such as electricity and water.
Travel and entertainment mainly represented expenditures for business travel and costs incurred for social gatherings and refreshments for our staff.
Legal and professional fees mainly represented auditor’s remuneration and other professional fees for legal and other expenses and applications and registrations of trademarks and patents, legal consultation fees, transfer agent fee and staff recruitment services.
Directors and officers liability insurance relates to premiums paid for liability insurance payable to the directors and officers of a company, or to the organization itself, as indemnification (reimbursement) for losses or advancement of defense costs in the event an insured suffers such a loss as a result of a legal action brought for alleged wrongful acts in their capacity as directors and officers.
Keyman insurance represented premiums paid for life insurance policies for our Chief Executive Officer and our Head of Mechanical Design, for a total sum-insured of approximately SGD2.6 million under which we are the beneficiary, to protect us against financial losses arising from the death or loss of services of these key personnel. Keyman insurance expenses amounted to approximately SGD0.6 million for the six-month period ended June 30, 2026, compared to nil for the six-month period ended June 30, 2025.
Consultancy fees were incurred in connection with strategic and corporate development initiatives undertaken during the six-month period ended June 30, 2026. These services primarily related to due diligence on prospective projects, identification and introduction of potential business partners and customers and advisory services on business expansion. Management views these engagements as integral to the Group’s growth strategy and value creation initiatives, and accordingly, the associated costs have been recognised as operating expenses in the period incurred.
Miscellaneous expenses were mainly comprised of office upkeep and maintenance, membership and subscription fees, permit and license renewal fees, medical expenses and other miscellaneous expenses.
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Other income
Other income of our Group amounted to SGD0.3 million and SGD0.3 million for the six-month periods ended June 30, 2025 and 2026, respectively. There were no significant changes in other income between the two periods. The following table sets forth the breakdown of our other income for these periods.
| Six-month periods ended June 30, | ||||||||
| 2025 | 2026 | |||||||
| SGD’000 | SGD’000 | |||||||
| Wholesale sales of STICO anti-slip shoes | 23 | 12 | ||||||
| Interest income | 75 | 65 | ||||||
| Government grants | 147 | 186 | ||||||
| Other(1) | 23 | 55 | ||||||
| Total | 268 | 318 | ||||||
(1) Other mainly consists of sale of scrap materials and other miscellaneous income.
Interest expense
Our interest expense arose from lease liabilities and secured bank loans. Interest expense of our Group amounted to SGD0.2 million and SGD0.1 million for the six-month periods ended June 30, 2025 and 2026, respectively.
Other expenses
Other expenses of our Group mainly consist of cost of STICO anti-slip shoes, bank charges and exchange loss.
Loss from cybersecurity incident
On February 7, 2026, the Company discovered that it had been the victim of fraud in connection with its payment of a previously declared cash dividend. A fraudulent email purporting to be from The Depository Trust Company (“DTC”) contained false wire instructions; as a result, the funds were not received by DTC, the dividend was not paid to the Company’s street-name shareholders and the Company incurred a loss of approximately SGD1.0 million (approximately USD0.8 million). The dividend was subsequently paid to shareholders by the end of February 2026.
The fraud has been reported to the U.S. Federal Bureau of Investigation’s Internet Crime Complaint Center, the Singapore Police Force and the relevant banks, and the Company is conducting a review of the incident with its internal IT security team. The incident has had no significant impact on the Group’s business and operations, and the investigation is ongoing.
Income tax
During the six-month periods ended June 30, 2025 and 2026, our income tax expense was comprised of our current tax expense for the period. The following table sets forth the breakdown of our income tax for the six-month periods ended June 30, 2025 and 2026:
| Six-month periods ended June 30, | ||||||||
| 2025 | 2026 | |||||||
| SGD’000 | SGD’000 | |||||||
| Current tax expense | 20 | 811 | ||||||
| Deferred tax | - | - | ||||||
| Total | 20 | 811 | ||||||
Our income tax, net, increased from approximately SGD20 thousand for the six-month period ended June 30, 2025 compared to SGD0.8 million for the six-month period ended June 30, 2026. This was generally in line with the increase in our profit and taxable income.
Our Group had no tax obligation arising from other jurisdictions during the six-month periods ended June 30, 2025 and 2026. During the six-month periods ended June 30, 2025 and 2026, our Group had no material dispute or unresolved tax issues with the relevant tax authorities.
Pursuant to the rules and regulations of the Cayman Islands and the British Virgin Islands, our Group is not subject to any income tax in the Cayman Islands or in the British Virgin Islands. Our Group’s operations are based in Singapore and we are subject to income tax on an entity basis on the estimated chargeable income arising in Singapore at the statutory rate of 17%.
Net Income/(loss) for the period
As a result of the foregoing, our net loss amounted to SGD0.8 million for the six-month period ended June 30, 2025 and our net income amounted to SGD1.7 million for the six-month period ended June 30, 2026.
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Key Non-US GAAP Financial Measures
In addition to the measures presented in our consolidated financial statements, we use the following key non-US GAAP financial measures to help us evaluate our business, identify trends affecting our business, formulate business plans and make strategic decisions.
Adjusted EBITDA
Adjusted EBITDA is a non-US GAAP financial measure calculated as net income adjusted to exclude: (a) depreciation and amortization; (b) interest expense; and (c) income tax expense.
Adjusted EBITDA has limitations as a financial measure, should be considered as supplemental in nature, and is not meant as a substitute for the related financial information prepared in accordance with US GAAP. For a reconciliation of Adjusted EBITDA to the most directly comparable US GAAP measure see the section titled “Reconciliation of Non-US GAAP Financial Measures.”
Reconciliation of Non-US GAAP Financial Measures
To supplement our financial information we use the following non-US GAAP financial measures: Adjusted EBITDA. However, the definitions of our non-US GAAP financial measures may be different from those used by other companies, and therefore, may not be comparable. Furthermore, these non-US GAAP financial measures have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated financial statements that are necessary to run our business. Thus, these non-US GAAP financial measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with US GAAP. We compensate for these limitations by providing a reconciliation of these non-US GAAP financial measures to the related US GAAP financial measures. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view these non-US GAAP financial measures in conjunction with their respective related US GAAP financial measures.
The following tables provide reconciliations of Adjusted EBITDA.
| Six-month periods ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| SGD’000 | SGD’000 | US$’000 | ||||||||||
| Net income/(loss) | (832 | ) | 1,700 | 1,313 | ||||||||
| Depreciation and amortization expenses | 443 | 389 | 301 | |||||||||
| Interest expense | 238 | 114 | 88 | |||||||||
| Income tax expense | 20 | 811 | 627 | |||||||||
| Adjusted EBITDA | (131 | ) | 3,014 | 2,329 | ||||||||
Liquidity and Capital Resources
Our liquidity and working capital requirements primarily related to our operating and capital expenditure requirements. We expect to fund our working capital and other liquidity requirements from various sources, including but not limited to cash generated from our operations, loans from banking facilities, capital contributions from shareholders and other equity and debt financings as and when appropriate.
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Cash flows
The following table summarizes our cash flows for the six-month periods ended June 30, 2025 and 2026:
| Six-month periods ended June 30, | ||||||||
| 2025 | 2026 | |||||||
| SGD’000 | SGD’000 | |||||||
| Cash and cash equivalents as at beginning of the period | 5,742 | 9,931 | ||||||
| Net cash provided by operating activities | 19 | 9,569 | ||||||
| Net cash used in investing activities | (122 | ) | (747 | ) | ||||
| Net cash used in financing activities | (651 | ) | (3,663 | ) | ||||
| Net foreign currency effect | 45 | - | ||||||
| Net (decrease)/increase in cash and cash equivalents | (709 | ) | 5,159 | |||||
| Cash and cash equivalents as at end of the period | 5,033 | 15,090 | ||||||
Cash flows from operating activities
During the six-month periods ended June 30, 2025 and 2026, the cash inflows from our operating activities were primarily derived from the revenue generated from our sale of cleaning systems and other equipment and provision of centralized dishwashing and ancillary services, whereas the cash outflows for our operating activities mainly consisted of the purchase of raw materials, production costs and overheads, staff costs and general and administrative expenses.
Our net cash generated from operating activities primarily reflected our net income, as adjusted for (i) non-operating items, such as depreciation and amortization, and (ii) effects of changes in working capital such as (a) increase or decrease in inventories, (b) accounts receivable, prepaid expenses and other current assets, (c) accounts payable, accruals and other current liabilities, and (d) contract liabilities, (iii) repayment of bank loans and lease liabilities, and (iv) income taxes payable.
For the six-month period ended June 30, 2025, our net cash provided by operating activities was approximately SGD19 thousand, which reflected our loss of SGD0.8 million, as positively adjusted primarily by (i) the non-cash depreciation of property, plant and equipment of SGD0.3 million; and (ii) amortization of right-of-use asset of SGD0.1 million. The effect of these factors was offset by the increase in inventories of SGD0.8 million; the decrease in accounts receivable, prepaid expenses and other current asset of SGD2.2 million; the decrease in accounts payable, accruals and other current liabilities of SGD0.4 million; the decrease of contract liabilities of SGD0.5 million; and the repayment of lease liabilities of SGD0.2 million.
For the six-month period ended June 30, 2026, our net cash provided by operating activities was SGD9.6 million, which reflected our profit of SGD1.7 million, as positively adjusted primarily by (i) the non-cash depreciation of property, plant and equipment of SGD0.3 million; and (ii) amortization of right-of-use asset of SGD0.1 million. The effect of these factors was offset by the decrease in inventories of SGD3.0 million; the increase in accounts receivable, prepaid expenses and other current asset of SGD2.4 million; the increase in accounts payable, accruals and other current liabilities of SGD1.6 million; the increase of contract liabilities of SGD4.9 million; and the repayment of lease liabilities of SGD0.3 million.
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Cash flows from investing activities
Our cash flows used in investing activities primarily consists of purchase of property, plant and equipment.
For the six-month period ended June 30, 2025, our net cash used in investing activities was SGD0.1 million, mainly attributable to the purchase of property, plant and equipment of SGD0.1 million.
For the six-month period ended June 30, 2026, our net cash used in investing activities was SGD0.7 million, mainly attributable to the purchase of property, plant and equipment of SGD0.7 million.
Cash flows from financing activities
Our cash flows used in financing activities primarily consists of repayment of bank loans and dividends paid.
For the six-month period ended June 30, 2025, our Group recorded net cash used in financing activities of SGD0.7 million, which was mainly attributable to the repayment of bank loans of SGD0.7 million.
For the six-month period ended June 30, 2026, our Group recorded net cash used in financing activities of SGD3.7 million, which was mainly attributable to the repayment of bank loans of SGD0.7 million and dividends paid of SGD3.0 million.
Working Capital
We believe that our Group has sufficient working capital for our requirements for at least the next 12 months from the date of this Report, in the absence of unforeseen circumstances, taking into account the financial resources presently available to us, including cash and cash equivalents on hand and cash flows from our operations.
Accounts receivable
Our accounts receivable, net, increased from SGD7.4 million as of December 31, 2025 to SGD10.0 million as of June 30, 2026. The increase mainly resulted from the increase in sales during the six-month period ended June 30, 2026.
We did not charge any interest on, or hold any collateral as security for these accounts receivable balances. We generally offer credit periods of 30 to 90 days to our customers in respect of the manufacture and sale of cleaning systems and other equipment, whereas our customers will be offered credit terms of 7 to 30 days in respect of the provision of centralized dishwashing services and general cleaning services.
The following table sets forth the ageing analysis of our accounts receivable, net, based on the invoiced date as of the dates mentioned below:
As of December 31, 2025 | As of June 30, 2026 | |||||||
| SGD’000 | SGD’000 | |||||||
| Within 30 days | 4,604 | 9,581 | ||||||
| Between 31 and 60 days | 504 | 39 | ||||||
| Between 61 and 90 days | 1,517 | 61 | ||||||
| More than 90 days | 786 | 370 | ||||||
| Total accounts receivable, net | 7,411 | 10,051 | ||||||
| 11 |
Movements in the allowance for expected credit losses of accounts receivable are as follows:
As of December 31, 2025 | As of June 30, 2026 | |||||||
| SGD’000 | SGD’000 | |||||||
| Balance at beginning of the year/period | 78 | 78 | ||||||
| Reversal | - | (23 | ) | |||||
| Balance at end of the year/period | 78 | 55 | ||||||
We have a policy for determining the allowance for expected credit losses based on the evaluation of collectability and ageing analysis of accounts receivable and on management’s judgment, including the change in credit quality, the past collection history of each customer, the current market condition, future expectations, and customer specific quantitative and qualitative factors that may affect the Company’s customer’s ability to pay.
The allowance for expected credit losses for accounts receivable related to a general provision for accounts receivable applying the simplified approach to providing for expected credit loss(es) (“ECL(s)’’). Credit risk grades are defined using qualitative and quantitative factors that are indicative of the risk of default. An ECL rate is calculated based on historical loss rates of the industry in which our customers operate and ageing of the accounts receivable.
During the year ended December 31, 2025 and the six-month period ended June 30, 2026, other than the allowance for expected credit losses discussed above, no impairment loss was provided for amounts that were past due.
The following table sets forth our average accounts receivable turnover days for the year ended December 31, 2025 and the six-month period ended June 30, 2026:
As of December 31, 2025 | As of June 30, 2026 | |||||||
| Average accounts receivable turnover days(1) | 107.0 | 76.8 | ||||||
(1) Average accounts receivable turnover days is calculated as the average of the beginning and ending of accounts receivable balance for the respective year/period divided by revenue for the respective year/period and multiplied the number of days in the respective year/period.
Our average accounts receivable turnover days were 107.0 days and 76.8 days for the year ended December 31, 2025 and the six-month period ended June 30, 2026, respectively. The decrease in average accounts receivable turnover days for the six-month period ended June 30, 2026 was mainly due to faster collection from customers.
The accounts receivable were closely monitored and reviewed on a regular basis to identify any potential non-payment or delay in payment. Our Group conducted an individual review of each of the customers to determine the impairment, which is aligned with external credit rating agencies’ definition when it is available or based on other data such as available press information about the customer and past due status. Our Group has further implemented certain procedures to strengthen our credit control. For instance, we are actively monitoring the credit terms of our customers and follow up on collection regularly to ensure greater control over our accounts receivable.
| 12 |
Prepaid expenses and other current assets, net
Prepaid expenses and other current assets, net of our Group mainly represents advances made to suppliers, prepaid operating expenses and other receivables, including loan receivables from a third party and staff loans. The following table sets forth the breakdown of the prepaid expenses and other current assets, net as of the dates indicated:
As of December 31, 2025 | As of June 30, 2026 | |||||||
| SGD’000 | SGD’000 | |||||||
| Other receivables | 194 | 61 | ||||||
| Deposits | 57 | 50 | ||||||
| Prepayments | 633 | 513 | ||||||
| Total | 884 | 624 | ||||||
Our total other receivables, deposits and prepayments decreased from SGD0.9 million as of December 31, 2025 to SGD0.6 million as of June 30, 2026, primarily attributable to decrease in other receivables and prepayments.
Inventory
Our inventory primarily consists of raw materials, work-in-progress and finished goods as of the dates indicated.
As of December 31, 2025 | As of June 30, 2026 | |||||||
| SGD’000 | SGD’000 | |||||||
| Raw materials | 5,720 | 5,049 | ||||||
| Work-in-progress | 2,920 | 554 | ||||||
| Finished goods | 562 | 552 | ||||||
| 9,202 | 6,155 | |||||||
The following table sets forth our average inventory turnover days for the year ended December 31, 2025 and the six-month period ended June 30, 2026:
As of December 31, 2025 | As of June 30, 2026 | |||||||
| Average inventory turnover days(1) | 290.3 | 105.3 | ||||||
(1) Average inventory turnover days is calculated as the average of the beginning and ending of inventory balance for the respective year/period divided by cost of purchases for the respective year/period and multiplied the number of days in the respective year/period.
The decrease in inventories of SGD3.1 million and average inventory turnover days was primarily the result of increased sales for precision cleaning systems in which certain delivery dates of the systems were rescheduled to be delivered and commissioned in the first half of 2026.
Accounts payable, accruals and other current liabilities
Accounts payable
The general credit terms from our major suppliers are 15 to 90 days. Our accounts payable increased from SGD1.9 million as of December 31, 2025 to SGD2.7 million as of June 30, 2026, primarily attributable to increased purchases to fulfil customer sales orders during the period.
| 13 |
The following table sets forth the ageing analysis of our accounts payable based on the invoice date as of the dates mentioned below:
As of December 31, 2025 | As of June 30, 2026 | |||||||
| SGD’000 | SGD’000 | |||||||
| Within 30 days | 1,862 | 2,663 | ||||||
| Between 31 and 60 days | - | - | ||||||
| Between 61 and 90 days | - | - | ||||||
| More than 90 days | - | - | ||||||
| Total | 1,862 | 2,663 | ||||||
The following table sets forth our average accounts payable turnover days for the year ended December 31, 2025 and the six-month period ended June 30, 2026:
As of December 31, 2025 | As of June 30, 2026 | |||||||
| Average accounts payable turnover days(1) | 43.3 | 31.0 | ||||||
(1) Average accounts payable turnover days is calculated as the average of the beginning and ending of accounts payable balance for the respective year/period divided by cost of revenues for the respective year/period and multiplied the number of days in the respective year/period.
Our average payables turnover days remained within the credit term for the period ended June 30, 2026.
Our Group did not have any material default in payment of accounts payable during the year ended December 31, 2025 and the six-month period ended June 30, 2026.
Accruals and other current liabilities
Accruals and other current liabilities mainly represented expenses related to professional fees, project sales commission and payroll costs. As of December 31, 2025 and June 30, 2026, our Group’s accruals and other current liabilities amounted to SGD0.8 million and SGD1.6 million, respectively. This is mainly attributable to the increase in accrual of sales commission and performance bonus during the period.
Our Group did not have any material default in payment of other payables during the year ended December 31, 2025 and the six-month period ended June 30, 2026.
Bank indebtedness
As of June 30, 2026, our bank indebtedness equaled an aggregate of SGD3.4 million, all of which is denominated in Singapore dollars and bears interest at a variable rate ranging from 1.25% to 1.5% above the Singapore Interbank Offered Rate (“SIBOR”). SGD1.1 million of our bank indebtedness constitutes current liability and SGD2.3 million constitutes non-current liability.
The following table summarized our contractual obligations, which include principal in the case of bank borrowings and lease payables, as of June 30, 2026:
| Less than 1 year | 1 to 3 years | 3 to 5 years | Total | |||||||||||||||||
| SGD’000 | SGD’000 | SGD’000 | SGD’000 | USD’000 | ||||||||||||||||
| Contractual Obligations: | ||||||||||||||||||||
| Finance leases | 61 | 18 | - | 79 | 61 | |||||||||||||||
| Operating leases | 37 | 35 | - | 72 | 56 | |||||||||||||||
| Bank loans | 1,130 | 1,139 | 1,093 | 3,362 | 2,598 | |||||||||||||||
| Total contractual obligations | 1,228 | 1,192 | 1,093 | 3,513 | 2,715 | |||||||||||||||
| 14 |
Commitments
Capital commitments
As of December 31, 2025 and June 30, 2026, our Group did not have any capital commitments.
Capital Expenditures
Historical capital expenditures
Our capital expenditures during the six-month periods ended June 30, 2025 and 2026 mainly related to replacement of obsolete equipment. For the six-month periods ended June 30, 2025 and 2026, our capital expenditures in relation to property, plant and equipment were SGD0.1 million and SGD0.7 million, respectively. We principally funded our capital expenditures through cash flows from operations and borrowings during the six-month periods ended June 30, 2025 and 2026. The net proceeds from our initial public offering have been used primarily to fund operations and for expansions and upgrades of our manufacturing facilities.
Critical Accounting Estimates
Our financial statements and accompanying notes have been prepared in accordance with U.S. GAAP. The preparation of these financial statements and accompanying notes requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Certain accounting estimates are particularly sensitive because of their significance to financial statements and because of the possibility that future events affecting the estimate may differ significantly from management’s current judgments. The Company’s critical accounting estimates affecting the financial statements were:
Inventories valuation
Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based on the first-in, first-out principle, and includes expenditure incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing inventories to their existing location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity. The majority of our inventories consist of raw materials and work-in-progress, which are mainly for confirmed project ordered by customers.
The Company’s business relies on customer demand for our products and services. Any reduction in customer demand for instance cancellation of order for our products may have an adverse impact on our product sales, which may in turn lead to inventory obsolescence, decline in inventory value or inventory write-off. In such event, our business, financial condition, results of operations and prospects may be materially and adversely affected.
The Company compares the cost of inventories for each project with the net realizable value and, if applicable, an allowance is made to bring down the inventory to its net realizable value, if lower than cost. On a going basis, inventories are reviewed for potential write-down for estimated obsolescence or slow moving which equals the difference between the costs of inventories and estimated net realizable value based on customers’ demand including expected delivery date, historical working profile, total advance payment received and market condition. When inventories are written down to the lower of cost or net realizable value, they are not marked up subsequently based on changes in underlying facts and circumstances. Based on the Company’s assessment, as of June 30, 2025, no inventories are recorded at lower of cost and there is no indication of slow moving or obsolete inventories.
Recent Accounting Pronouncements
See Note 2 of the notes to the unaudited interim condensed consolidated financial statements included elsewhere in this Report for a discussion of recently issued accounting standards.
| 15 |
Quantitative and Qualitative Disclosures about Market Risk
Interest Rate Risk
We are exposed to interest rate risk in connection with our bank borrowings, which are primarily based on floating interest rates. Our bank borrowings are generally subject to variable interest rates, including benchmark rates such as SIBOR and the London Interbank Offered Rate (“LIBOR”) or its successor benchmark rates, plus an applicable margin.
To manage this exposure and achieve a more predictable interest cost, we have entered into interest rate swap arrangements, including an overnight indexed swap, under which we pay a fixed rate of interest and receive a floating rate based on market benchmarks.
As a result, a portion of our exposure to fluctuations in market interest rates is mitigated. However, changes in market interest rates may still affect our interest expense and the fair value of our derivative instruments.
Credit Risk
Credit risk is controlled by the application of credit approvals, limits and monitoring procedures. We manage credit risk through in-house research and analysis of the relevant economy and the underlying obligors and transaction structures. We identify credit risk collectively based on industry, geography and customer type. In measuring the credit risk of our sales to our customers, we mainly reflect the “probability of default” by the customer on its contractual obligations and consider the current financial position of the customer and the current and likely future exposures to the customer.
Liquidity Risk
We are also exposed to liquidity risk, which is risk that we will be unable to provide sufficient capital resources and liquidity to meet our commitments and business needs. Liquidity risk is controlled by the application of financial position analysis and monitoring procedures. When necessary, we will turn to financial institutions and related parties to obtain short-term funding to cover any liquidity shortage.
Foreign Exchange Risk
While our reporting currency is the US Dollar, almost all of our consolidated revenues and consolidated costs and expenses are denominated in SGD. All of our assets are denominated in SGD. As a result, we are exposed to foreign exchange risk as our revenues and results of operations may be affected by fluctuations in the exchange rate between the US Dollar and SGD. If the SGD depreciates against the US Dollar, the value of our SGD revenues, earnings and assets as expressed in our U.S. dollar financial statements will decline. We have not entered into any hedging transactions in an effort to reduce our exposure to foreign exchange risk.
We monitor our foreign currency exposure on an ongoing basis and, where appropriate, utilize foreign exchange derivative instruments, including foreign exchange option contracts, to mitigate short-term exposure.
| 16 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| JE CLEANTECH HOLDINGS LIMITED | |
| Dated October 20, 2026 | /s/ HONG Bee Yin |
| HONG Bee Yin, Chief Executive Officer and Director | |
| Dated October 20, 2026 | /s/ LONG Jia Kwang |
| LONG Jia Kwang, Chief Financial Officer |
| 17 |
INDEX TO JE CLEANTECH HOLDINGS LIMITED
UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| F-1 |
JE CLEANTECH HOLDINGS LIMITED AND ITS SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(Amount in thousands, except for share and per share data, or otherwise noted)
| 2025 | 2026 | 2026 | ||||||||||
As of December 31, | As of June 30, | |||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| SGD’000 | SGD’000 | US$’000 | ||||||||||
| (Note 2(e)) | ||||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | ||||||||||||
| Accounts receivable, net | ||||||||||||
| Prepaid expenses and other current assets, net | ||||||||||||
| Inventory | ||||||||||||
| Total current assets | ||||||||||||
| Financial instruments | ||||||||||||
| Property, plant and equipment, net | ||||||||||||
| Right-of-use assets, net | ||||||||||||
| Other current assets, net | ||||||||||||
| Deferred tax assets, net | ||||||||||||
| Total non-current assets | ||||||||||||
| TOTAL ASSETS | ||||||||||||
| Liabilities | ||||||||||||
| Current liabilities: | ||||||||||||
| Bank loans - current | ||||||||||||
| Lease payable - current | ||||||||||||
| Accounts payable, accruals, and other current liabilities | ||||||||||||
| Warranty liabilities | ||||||||||||
| Income taxes payable | ||||||||||||
| Contract liabilities | ||||||||||||
| Total current liabilities | ||||||||||||
| Bank loans – non-current | ||||||||||||
| Lease payable – non-current | ||||||||||||
| Deferred tax liabilities | ||||||||||||
| Total non-current liabilities | ||||||||||||
| TOTAL LIABILITIES | ||||||||||||
| Commitments and contingencies | ||||||||||||
| Shareholders’ equity | ||||||||||||
| US$ par value per share, comprised of: - Class A Ordinary Shares authorized and Class A Ordinary Shares issued and outstanding as of December 31, 2025 and June 30, 2026* - Class B Ordinary Shares authorized and Class B Ordinary Shares issued and outstanding as of December 31, 2025 and June 30, 2026* - shares authorized (not designated) and shares outstanding as of December 31, 2025 and June 30, 2026* | ||||||||||||
| Additional paid-in capital | ||||||||||||
| Treasury shares ( and acquired as of December 31, 2025 and June 30, 2026) | ( | ) | ( | ) | ( | ) | ||||||
| Retained earnings | ||||||||||||
| Accumulated other comprehensive loss | ( | ) | ( | ) | ( | ) | ||||||
| Total shareholders’ equity | ||||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
| * |
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
| F-2 |
JE CLEANTECH HOLDINGS LIMITED AND ITS SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Amount in thousands, except for share and per share data, or otherwise noted)
| 2025 | 2026 | 2026 | ||||||||||
| For the six-month periods ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| SGD’000 | SGD’000 | USD’000 | ||||||||||
| (Note 2 (e)) | ||||||||||||
| Revenues | ||||||||||||
| Cost of revenues | ( | ) | ( | ) | ( | ) | ||||||
| Gross profit | ||||||||||||
| Operating expenses: | ||||||||||||
| Selling and marketing expenses | ( | ) | ( | ) | ( | ) | ||||||
| General and administrative expenses | ( | ) | ( | ) | ( | ) | ||||||
| Total operating expenses | ( | ) | ( | ) | ( | ) | ||||||
| Income (loss) from operations | ( | ) | ||||||||||
| Other income (expense): | ||||||||||||
| Other income | ||||||||||||
| Interest expense | ( | ) | ( | ) | ( | ) | ||||||
| Other expense | ( | ) | ( | ) | ( | ) | ||||||
| Loss from cybersecurity incident | ( | ) | ( | ) | ||||||||
| Total other income (expense) | ( | ) | ( | ) | ( | ) | ||||||
| Income (loss) before tax expense | ( | ) | ||||||||||
| Income tax expense | ( | ) | ( | ) | ( | ) | ||||||
| Net (loss) income | ( | ) | ||||||||||
| Other comprehensive income (loss) | ||||||||||||
| Foreign currency translation (loss)/gain, net | ||||||||||||
| Total comprehensive (loss) income | ( | ) | ||||||||||
| Net income (loss) per share attributable to ordinary shareholders | ||||||||||||
| Basic and diluted* | ) | |||||||||||
| Weighted average number of ordinary shares used in computing net income (loss) per share | ||||||||||||
| Basic and diluted* | ||||||||||||
| * |
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
| F-3 |
JE CLEANTECH HOLDINGS LIMITED AND ITS SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Amount in thousands, except for share and per share data, or otherwise noted)
| SGD’000 | SGD’000 | SGD’000 | SGD’000 | SGD’000 | SGD’000 | |||||||||||||||||||||||||||||||
| Ordinary Shares | Treasury Shares | Accumulated | ||||||||||||||||||||||||||||||||||
| Class A No. of shares outstanding * | Class B No. of shares outstanding * | Amount | Additional paid-in capital | No. of shares | Treasury shares | Other Comprehensive loss | Retained earnings/(deficit) | Total stockholders’ equity | ||||||||||||||||||||||||||||
| SGD’000 | SGD’000 | SGD’000 | SGD’000 | SGD’000 | SGD’000 | |||||||||||||||||||||||||||||||
| Balance as of January 1, 2025 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
| Net loss | - | - | - | ( | ) | ( | ) | |||||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | - | - | |||||||||||||||||||||||||||||||||
| Balance as of June 30, 2025 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
| Balance as of January 1, 2026 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
| Net income | - | - | - | |||||||||||||||||||||||||||||||||
| Net income (loss) | - | - | - | |||||||||||||||||||||||||||||||||
| Dividends paid | - | - | ( | ) | - | ( | ) | |||||||||||||||||||||||||||||
| Acquisition of treasury shares | - | - | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Balance as of June 30, 2026 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
| Balance as of June 30, 2026 (US$) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
| * |
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
| F-4 |
JE CLEANTECH HOLDINGS LIMITED AND ITS SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amount in thousands, except for share and per share data, or otherwise noted)
| 2025 | 2026 | 2026 | ||||||||||
| For the six-month period ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| SGD’000 | SGD’000 | US$’000 | ||||||||||
| Net income (loss) | ( | ) | ||||||||||
| Adjustment: | ||||||||||||
| Depreciation of property, plant and equipment | ||||||||||||
| Amortization of right-of-use assets | ||||||||||||
| Reversal of allowance for expected credit losses | ( | ) | ( | ) | ||||||||
| Changes in operating assets: | ||||||||||||
| (Increase)/decrease in inventories | ( | ) | ||||||||||
| Decrease/ (increase) of accounts receivable, prepaid expenses and other current assets, net | ( | ) | ( | ) | ||||||||
| (Decrease)/ increase of accounts payable, accruals and other current liabilities | ( | ) | ||||||||||
| (Decrease)/ increase of contract liabilities | ( | ) | ||||||||||
| Repayment of lease liabilities | ( | ) | ( | ) | ( | ) | ||||||
| Income taxes payables | ( | ) | ||||||||||
| Cash provided by operating activities | ||||||||||||
| Purchase of property, plant and equipment | ( | ) | ( | ) | ( | ) | ||||||
| Cash used in investing activities | ( | ) | ( | ) | ( | ) | ||||||
| Dividends paid | ( | ) | ( | ) | ||||||||
| Purchase of treasury shares | ( | ) | ( | ) | ||||||||
| Repayment of bank loans | ( | ) | ( | ) | ( | ) | ||||||
| Cash used in financing activities | ( | ) | ( | ) | ( | ) | ||||||
| Foreign currency effect | ||||||||||||
| Net change in cash and cash equivalents | ( | ) | ||||||||||
| Cash and cash equivalents as of beginning of the period | ||||||||||||
| Cash and cash equivalents as of the end of the period | ||||||||||||
| Net change in cash and cash equivalents | ( | ) | ||||||||||
| Supplementary Cash Flows Information | ||||||||||||
| Cash paid for interest | ||||||||||||
| Cash paid for taxes | ||||||||||||
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
| F-5 |
JE CLEANTECH HOLDINGS LIMITED AND ITS SUBSIDIARIES
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. ORGANIZATION AND PRINCIPAL ACTIVITIES
On January 29, 2019, JE Cleantech Holdings Limited (the “Company”) was incorporated in the Cayman Islands, as an investment holding company. The Company conducts its primary operations through its indirectly held wholly owned subsidiaries that are incorporated and domiciled in Singapore, namely: 1.) by JCS-Echigo Pte. Ltd. (“JCS-Echigo”), which is principally engaged in the manufacture and sale of cleaning systems, related cleaning equipment, equipment parts and components, and 2.) Hygieia Warewashing Pte. Ltd. (“Hygieia”), which is principally engaged in the provision of centralized dishwashing and ancillary services. The Company holds JCS-Echigo via its wholly owned subsidiary JE Cleantech International Ltd (“JEC International”), a company that is incorporated and domiciled in the British Virgin Islands; Hygieia is a wholly owned subsidiary of JCS-Echigo. JCS-Echigo wholly owns Evoluxe Pte. Ltd (“Evoluxe”), which is also incorporated and domiciled in Singapore and which, as of the date of the report, is dormant. The Company is headquartered in Singapore and conducts its operations domestically.
The Company and its subsidiaries (“the Group”) are in the table as follows:
SCHEDULE OF SUBSIDIARIES
| Percentage of effective ownership | ||||||||||||||
| Name | Date of Incorporation | December 31, 2025 | June 30, 2026 | Place of incorporation | Principal Activities | |||||||||
| - | - | |||||||||||||
| % | % | |||||||||||||
| % | % | |||||||||||||
| % | % | |||||||||||||
| % | % | |||||||||||||
The accompanying unaudited interim condensed consolidated financial statements are presented assuming that the Company was in existence at the beginning of the first period presented.
| F-6 |
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of presentation
The unaudited interim condensed consolidated financial statements include all normal and recurring adjustments considered necessary, in the opinion of management, for a fair presentation of the Company’s financial position as of June 30, 2025, the results of operation for the six-month periods ended June 30, 2026 and 2025 and cash flows for the six-month periods ended June 30, 2026 and 2025.
Interim results of operations are not necessarily indicative of the results expected for the full fiscal year or for any future period. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and related notes included in the Company’s Annual Report on Form 20-F for the year ended December 31, 2025, filed with the SEC on May 8, 2026.
(b) Consolidation
The unaudited interim condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All inter-company transactions, if any, and balances due to, due from, long-term investment subsidiary, and registered paid in capital have been eliminated upon consolidation.
(c) Use of estimates
The preparation of unaudited interim condensed consolidated financial statements in conformity with accounting principles generally accepted in the U.S. (“US GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited interim condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant accounting estimates reflected in the Company’s unaudited interim condensed consolidated financial statements include, but are not limited to inventory valuation, allowance for expected credit losses and fair value of financial instruments. Actual results could vary from the estimates and assumptions that were used.
(d) Risks and uncertainties
The main operations of the Company are located in Singapore. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in Singapore, as well as by the general state of the economy in Singapore. The Company’s results may be adversely affected by changes in the political, regulatory, and social conditions in Singapore. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, such experience may not be indicative of future results.
In
addition, the Company’s business, financial condition, and results of operations may be affected by various cybersecurity and other
operational risks relating to our businesses on a daily basis. On February 7, 2026, the Company discovered that it had been the victim
of fraud in connection with its payment of a previously declared cash dividend. A fraudulent email purporting to be from The Depository
Trust Company (“DTC”) contained false wire instructions; as a result, the funds were not received by DTC, the dividend was
not paid to the Company’s street-name shareholders and the Company incurred a loss of approximately SGD
The Company’s business, financial condition, and results of operations may also be negatively impacted by risks related to natural disasters, extreme weather conditions, health epidemics, and other catastrophic incidents, which could significantly disrupt the Company’s operations.
(e) Foreign currency translation and transaction and convenience translation
The accompanying unaudited interim condensed consolidated financial statements are presented in the Singaporean dollars (“SGD”), which is the reporting currency of the Company. The functional currency of the Company and its subsidiary, JEC International are the US$, respectively. JCS-Echigo, Hygieia, and Evoluxe use the Singaporean dollar as their functional currencies.
Assets and liabilities denominated in currencies other than the reporting currency are translated into the reporting currency at the rates of exchange prevailing at the balance sheet date. Translation gains and losses are recognized in the unaudited interim condensed consolidated statements of income and comprehensive income as other comprehensive income or loss. Transactions in currencies other than the reporting currency are measured and recorded in the reporting currency at the exchange rate prevailing on the transaction date. The cumulative gain or loss from foreign currency transactions is reflected in the unaudited interim condensed consolidated statements of income and comprehensive income as other income (other expenses).
| F-7 |
The value of foreign currencies, including the US Dollar, may fluctuate against the Singaporean Dollar. Any significant variations of the aforementioned currencies relative to the Singaporean Dollar may materially affect the Company’s financial condition in terms of reporting in SGD. The following table outlines the currency exchange rates that were used in preparing the accompanying unaudited interim condensed consolidated financial statements:
SCHEDULE OF CURRENCY EXCHANGE RATES
| December 31, 2025 | June 30, 2026 | |||||||
| SGD to USD Year End/Period | ||||||||
| SGD to USD Average Rate | ||||||||
Translations
of the unaudited interim condensed consolidated balance sheets, unaudited interim condensed consolidated statements of comprehensive
loss, and unaudited interim condensed consolidated statements of cash flows from SGD into US$ as of and for the period ended June 30,
2026 are solely for the convenience of the reader and were calculated at the rate of US$
(f) Fair value measurement
Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability.
Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value:
| ● | Level 1 applies to assets or liabilities for which there are quoted prices, in active markets, for identical assets or liabilities. | |
| ● | Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | |
| ● | Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. |
Cash and cash equivalents, accounts receivable, other current assets, financial instruments, bank loans, leases, accounts payable and accruals and other current liabilities are financial assets and liabilities. Cash and cash equivalents, accounts receivables, prepaid expenses and other current assets, accounts payable and accruals and other current liabilities are subject to fair value measurement; however, because of their being short-term in nature, management believes their carrying values approximate their fair value.
Financial instruments are fair value financial assets that are marked to fair value and are accounted for as Level 3 under the above hierarchy.
Derivative financial instruments, including interest rate swaps and foreign exchange option contracts, are measured at fair value on a recurring basis and are classified within Level 2 of the fair value hierarchy. The Company determines the fair values of derivative financial instruments primarily by reference to mark-to-market (“MTM”) valuations provided by bank counterparties using observable market inputs (See Note 17).
The Company accounts for bank loans and lease payables at amortized cost and has elected not to account for them under the fair value hierarchy.
(g) Related parties
Parties are considered related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management, and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests.
| F-8 |
(h) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand and the Company’s demand deposits placed with financial institutions that have original maturities of less than three months and that are unrestricted as to withdrawal and use.
(i) Accounts receivable, net
Accounts receivable, net are stated at the original amount less an allowance for expected credit loss on such receivables. The allowance for expected credit loss is estimated based upon the Company’s assessment of various factors including historical experience, the age of the accounts receivable balances, current general economic conditions, future expectations, and customer specific quantitative and qualitative factors that may affect the Company’s customer’s ability to pay. An allowance is also made when there is objective evidence for the Company to reasonably estimate the amount of probable loss.
(j) Prepaid expenses and other current assets, net
Prepaid expenses and other current asset, net mainly represents advances made to suppliers, prepaid of operating expenses and staff loans with interest free and repayable by September 30, 2027 and October 31, 2030.
(k) Inventories
Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based on the first-in, first-out principle and includes expenditures incurred in acquiring the inventories, production or conversion costs, and other costs incurred in bringing them to their existing location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overhead based on normal operating capacity.
(l) Property, plant and equipment, net
Property, plant, and equipment are stated at cost less accumulated depreciation and impairment, if any, and depreciated on a straight-line basis over the estimated useful lives of the assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its intended use. Estimated useful lives are as follows:
SCHEDULE OF ESTIMATED USEFUL LIVES
| Category | Estimated useful lives | |
| Land use right | ||
| Leasehold buildings | ||
| Leasehold improvements | ||
| Plant and machinery | ||
| Equipment, furniture and fittings | ||
| Motor vehicles |
Expenditures for repair and maintenance costs, which do not materially extend the useful lives of the assets, are charged to expenses as incurred, whereas expenditures for major renewals and betterment that substantially extend the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales, and disposals of assets are recorded by removing the costs, accumulated depreciation, and impairment with any resulting gain or loss recognized in the consolidated statements of income.
(m) Impairment of long-lived assets
The
Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of
an asset may no longer be recoverable. When these events occur, the Company measures impairment by comparing the carrying value of the
long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition.
If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment
loss, which is the excess of carrying amount over the fair value of the assets, using the expected future discounted cash flows.
| F-9 |
(n) Contract liabilities
A contract liability is recognized when the customer pays non-refundable consideration before the Company recognizes the related revenue. A contract liability would also be recognized if the Company has an unconditional right to receive nonrefundable consideration before the Company recognizes the related revenue. In such cases, a corresponding receivable would also be recognized.
(o) Commitments and contingencies
In the normal course of business, the Company is subject to commitments and contingencies, including operating lease commitments, legal proceedings, and claims arising out of its business that relate to a wide range of matters, such as government investigations and tax matters. The Company recognizes a liability for such contingency if it determines it is probable that a loss will occur and a reasonable estimate of the loss can be made. The Company may consider many factors in making these assessments on liability for contingencies, including historical factors and the specific facts and circumstances of each matter.
Share repurchases are accounted for under ASC 505-30, which requires them be recorded and shown separately as a reduction to shareholders’ equity.
(q) Revenue recognition
The Company currently generates its revenue from the following main sources:
Revenue from goods sold and services provided
Revenue from sales of goods and services in the ordinary course of business is recognized when the Company satisfies a performance obligation (‘‘PO’’) by transferring control of a promised good or service to the customer. The amount of revenue recognized is the amount of the transaction price allocated to the satisfied PO.
Transaction price is the amount of consideration in the contract to which the Company expects to be entitled in exchange for transferring the promised goods or services. The transaction price may be fixed or variable and is adjusted for time value of money if the contract includes a significant financing component. Consideration payable to a customer is deducted from the transaction price if the Company does not receive a separate identifiable benefit from the customer. When consideration is variable, if applicable, the estimated amount is included in the transaction price to the extent that it is highly probable that a significant reversal of the cumulative revenue will not occur when the uncertainty associated with the variable consideration is resolved.
Revenue may be recognized at a point in time or over time following the timing of satisfaction of the PO.
Provision for centralized dishware washing and general cleaning services
The Company delivers centralized dishware washing and general cleaning service daily over the course of a month to their customers, and charge the customers on a monthly basis with payment terms of 7 to 45 days. The Company recognizes revenue over time as the customer simultaneously receives and consumes the benefits provided by the Company during the contract period with fixed monthly charge.
| F-10 |
Sales of cleaning systems and other equipment
For the sales of sterilization and cleaning systems, related cleaning equipment, equipment parts, and components, the Company typically receives purchase orders from its customers which will set forth the terms and conditions including the transaction price, products to be delivered, terms of delivery, and terms of payment. The terms serve as the basis of the performance obligation that the Company must fulfil in order to recognize revenue. The key performance obligation is the delivery of the finished product to the customer at its location at which point title to that asset passes to the customer. The completion of this earning process is evidenced by a written customer acceptance indicating receipt of the product. The Company also bundles the delivery of the products and installation/commission services to its customers in a single contract such that they are not distinct within the context of the contract, in which case the performance obligation is satisfied at a point in time upon completion of the installation services and acceptance by the customer. The Company includes a warranty on its products for one year from the point of delivery and acceptance. The warranty is antecedent to the performance obligation set forth above; however, management develops an estimate of future warranty costs and accrues that amount to cost of sales in the period that revenue is recognized to the Company’s consolidated statements of income and the corresponding amount is added to warrant liabilities on the Company’s consolidated balance sheets. Details on the changes in warranty liabilities can be found in Note 10 below. Typical payment terms set forth in the purchase order range from 30 to 90 days from the date of delivery. The amount of revenue recognized from contract liabilities to the Company’s results of operations can be found in Note 11 below.
Leasing of dishware washing machines
In accordance with ASC 842 Lease Topics. The Company accounts for the rental of dishware washing machines as direct finance leases where, lease income from the prospective of lessor is recognized to the Company’s statement of income on a straight-line basis over the term of the lease once management has determined that the lease payments are reasonably expected to be collected. The performance obligation under these leasing arrangements is to deliver the unit to the customer at their location and ensure that the equipment is ready for use, and to ensure that the equipment is available for use over the life of the lease contract.
(r) Cost of revenue
Cost of revenue mainly consists of raw material costs, labor costs, sub-contracting costs, and production overhead.
(s) Selling and marketing expenses
Selling expenses mainly consists of promotion and marketing expenses and transportation expenses. The Company does not carry any capitalized contract acquisition costs that would be amortized to its results of operations over time, and potential expenses related to customer and contract acquisition costs, if any, are accounted for as periodic costs.
(t) General and administrative expenses
General and administrative expenses mainly consist of staff cost including keyman insurance premium, stock-based compensation, depreciation or amortization, office supplies and upkeep expenses, travelling and entertainment, legal and professional fees, property and related expenses, other miscellaneous administrative expenses.
| F-11 |
(u) Other income and other expenses
Other income mainly consist of bank interest income, government capability development grants and net exchange gain.
Other expenses mainly consist of allowance for expected credit losses, gifts and donations and net exchange loss.
(v) Operating leases
The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liability, and operating lease liability, non-current in the Company’s consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company used an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company has elected to adopt the following lease policies in conjunction with the adoption of ASU 2016-02: (i) for leases that have lease terms of 12 months or less and do not include a purchase option that is reasonably certain to exercise, the Company elected not to apply ASC 842 recognition requirements; and (ii) the Company elected to apply the package of practical expedients for existing arrangements entered into prior to January 1, 2019 to not reassess (a) whether an arrangement is or contains a lease, (b) the lease classification applied to existing leases, and (c) initial direct costs.
(w) Income taxes
The Company accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases.
Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities.
The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures.
The Company did not accrue any liability, interest or penalties related to uncertain tax positions in its provision for income taxes line of its consolidated statements of income for the years ended December 31, 2025 and June 30, 2026, respectively. The Company does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months.
(x) Dividends
Dividends
are recognized when declared by the Board of Directors. No dividends were declared during the year ended December 31, 2025. Subsequent
to December 31, 2025, on January 2, 2026, the Company declared a cash dividend of approximately US$
Basic earnings per share is computed by dividing net earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares.
| F-12 |
(z) Segment reporting
In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280)”, Improvements to Reportable Segment Disclosures to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses on an interim and annual basis. ASU 2023-07 became effective starting January 1, 2024, and was applied on a retrospective basis to all periods presented. The Company has adopted this standard for the fiscal year 2024 annual financial statements and interim financial statements thereafter. See Note 14 for details.
ASC
280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent
with the Company’s internal organizational structure as well as information about geographical areas, business segments and major
clients in financial statements for detailing the Company’s business segments. Based on the criteria established by ASC 280, the
Company’s chief operating decision maker (“CODM”) has been identified as the Chief Executive Officer, who reviews consolidated
results when making decisions about allocating resources and assessing performance of the Company. As a whole and hence, the Company
has only
(aa) Recent accounting pronouncements
The Company maintains a proactive approach in evaluating the impact of new accounting pronouncements on its financial reporting. Upon identifying potential effects on its financial statements, the Company conducts a thorough analysis to assess the necessary adjustments to its Consolidated Financial Statements. Furthermore, the Company conducts a comprehensive review to understand the implications of the changes and ensures the implementation of appropriate controls to safeguard the accuracy and integrity of its Consolidated Financial Statements.
New and amended standards not yet adopted by the Company:
Accounting Standards Update 2024-03, Comprehensive income (Topic 220): Disaggregation of Income Statement expenses
In November, 2024, the FASB issued ASU No. 2024-03, Expense Disaggregation Disclosures (“ASU 2024-03”). ASU 2024-03 amends ASC 220, Comprehensive Income to expand income statement expense disclosures and require disclosure in the notes to the financial statements of specified information about certain costs and expenses. ASU 2024-03 is required to be adopted for fiscal years commencing after December 15, 2026, with early adoption permitted.
The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s audited consolidated balance sheets, statements of income and comprehensive income, and statements of cash flows.
| F-13 |
3. ACCOUNTS RECEIVABLE, NET
Accounts receivable, net, consists of the following:
SCHEDULE OF ACCOUNTS RECEIVABLES, NET
| December 31, 2025 | June 30, 2026 | June 30, 2026 | ||||||||||
| SGD’000 | SGD’000 | USD’000 | ||||||||||
| Accounts receivable | ||||||||||||
| Less: allowance for expected credit losses | ( | ) | ( | ) | ( | ) | ||||||
| Accounts receivable, net | ||||||||||||
The movements in the allowance for expected credit losses for the year ended December 31, 2025 and the six-month period ended June 30, 2026 were as follows:
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS
| December 31, 2025 | June 30, 2026 | June 30, 2026 | ||||||||||
| SGD’000 | SGD’000 | USD’000 | ||||||||||
| Balance at beginning of the year/period | ||||||||||||
| Reversal | ( | ) | ( | ) | ||||||||
| Balance at end of the year/period | ||||||||||||
4. INVENTORY
SCHEDULE OF INVENTORIES
| December 31, 2025 | June 30, 2026 | June 30, 2026 | ||||||||||
| SGD’000 | SGD’000 | USD’000 | ||||||||||
| Raw materials | ||||||||||||
| Work-in-progress | ||||||||||||
| Finished goods | ||||||||||||
| Total inventory, net | ||||||||||||
5. FINANCIAL INSTRUMENTS
The financial instruments comprise three key management insurance policies. The fair value of the key management insurance policies is determined by reference to the cash surrender value of the insurance policies at the end of each of the reporting period, which is primarily based on the performance of the underlying investment portfolio together with the guaranteed minimum returns of % to % per annum. The fair value measurement of the key management insurance contract has been categorized as a Level 3 fair value based on the inputs to the valuation technique used and is positively correlated to the cash surrender value that is valued by the policy underwriter at the end of each reporting period. There is no change in both valuation approach and valuation technique. The financial instruments are pledged with a bank to secure bank loans (see Note 8).
| F-14 |
The following table shows a reconciliation from the opening balances to the ending balances for Level 3 fair value:
SCHEDULE OF FINANCIAL INSTRUMENT
| December 31, 2025 | June 30, 2026 | June 30, 2026 | ||||||||||
| SGD’000 | SGD’000 | USD’000 | ||||||||||
| Balance at beginning of the year/period | ||||||||||||
| Additions | ||||||||||||
| Change in fair value recognized in profit or loss | ( | ) | ||||||||||
| Balance at end of the year/period | ||||||||||||
6. PROPERTY, PLANT AND EQUIPMENT, NET
Property, plant and equipment, net, consists of the following:
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT
| December 31, 2025 | June 30, 2026 | June 30, 2026 | ||||||||||
| December 31, | ||||||||||||
| December 31, 2025 | June 30, 2026 | June 30, 2026 | ||||||||||
| SGD’000 | SGD’000 | USD’000 | ||||||||||
| Leasehold building | ||||||||||||
| Leasehold improvements | ||||||||||||
| Plant and machinery | ||||||||||||
| Equipment, furniture and fittings | ||||||||||||
| Motor vehicles | ||||||||||||
| Subtotal | ||||||||||||
| Less: accumulated depreciation | ( | ) | ( | ) | ( | ) | ||||||
| Property, plant and equipment, net | ||||||||||||
Depreciation
of property, plant and equipment expense was approximately SGD
Leasehold building is pledged with a bank to secure bank loans (see Note 8).
| F-15 |
7. RIGHT-OF-USE (“ROU”) ASSETS AND LEASE PAYABLE
The right-of-use assets relate to leases of industrial lands in Singapore, certain plant and machinery, furniture and fittings and motor vehicles under a number of leases.
The Company recognized operating lease ROU assets and lease liabilities as follows:
SCHEDULE OF RIGHT OF USE ASSETS AND LIABILITIES
| December 31, 2025 | June 30, 2026 | June 30, 2026 | ||||||||||
| SGD’000 | SGD’000 | USD’000 | ||||||||||
| Right-of-use assets | ||||||||||||
| Less: accumulated amortization | ( | ) | ( | ) | ( | ) | ||||||
| Operating lease ROU asset, net | ||||||||||||
| December 31, 2025 | June 30, 2026 | June 30, 2026 | ||||||||||
| SGD’000 | SGD’000 | USD’000 | ||||||||||
| Finance lease liabilities | ||||||||||||
| Operating lease liabilities | ||||||||||||
| Total | ||||||||||||
Finance lease liabilities
| December 31, 2025 | June 30, 2026 | June 30, 2026 | ||||||||||
| SGD’000 | SGD’000 | USD’000 | ||||||||||
| Finance lease liabilities | ||||||||||||
| Current portion | ||||||||||||
| Non-current portion | ||||||||||||
| Total | ||||||||||||
The Company’s finance lease liabilities are secured by the underlying leased assets, corporate guarantees provided by the Company and its subsidiaries and personal guarantees provided by a director of the Company.
As of June 30, 2026, future minimum lease payments under the finance leases are as follows:
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER FINANCE LEASES
| Future payment | SGD’000 | US$’000 | ||||||
| 2027 | ||||||||
| 2028 | ||||||||
| Total | ||||||||
The following summarizes other supplemental information about the Company’s finance lease as of June 30, 2026:
SCHEDULE OF OTHER SUPPLEMENTAL INFORMATION ABOUT THE COMPANY’S FINANCE LEASE
| Weighted average discount rate | % | |||
| Weighted average remaining lease term (years) |
| December 31, 2025 | June 30, 2026 | June 30, 2026 | ||||||||||
| SGD’000 | SGD’000 | US$’000 | ||||||||||
| Operating lease liabilities | ||||||||||||
| Current portion | ||||||||||||
| Non-current portion | ||||||||||||
| Total | ||||||||||||
| F-16 |
As of June 30, 2026, future minimum lease payments under the non-cancelable operating leases are as follows:
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER NON-CANCELABLE OPERATING LEASES
| Future payment | SGD’000 | US$’000 | ||||||
| 2027 | ||||||||
| 2028 | ||||||||
| Total | ||||||||
The following summarizes other supplemental information about the Company’s operating lease as of June 30, 2026:
SCHEDULE OF OTHER SUPPLEMENTAL INFORMATION ABOUT THE COMPANY’S OPERATING LEASE
| Weighted average discount rate | % | |||
| Weighted average remaining lease term (years) |
8. BANK LOANS
The bank loans as of December 31, 2025 and June 30, 2026 are set out below:
SCHEDULE OF BANK LOANS
| Bank loans | Currency | Period | Interest rate | Carrying amount | ||||||
| SGD’000 | ||||||||||
| Secured floating rate bank loans | SGD | |||||||||
| US$ | ||||||||||
| Balance as of December 31, 2025 | ||||||||||
| Secured floating rate bank loans, representing balance as of June 30, 2026 | SGD | |||||||||
| Balance as of June 30, 2026 (US$) | ||||||||||
The bank loans are secured by corporate guarantees provided by the Company and its subsidiaries, financial instruments (see Note 5), and leasehold building (see Note 6).
| Bank loans | Carrying amount | Within 1 year | 2027 | 2028 | 2029 | 2030 | Thereafter | |||||||||||||||||||||
| SGD’000 | ||||||||||||||||||||||||||||
| Secured floating rate bank loans | ||||||||||||||||||||||||||||
| Balance as of December 31, 2025 | ||||||||||||||||||||||||||||
| Carrying amount | Within 1 year | 2028 | 2029 | 2030 | 2031 | Thereafter | ||||||||||||||||||||||
| SGD’000 | ||||||||||||||||||||||||||||
| Secured floating rate bank loans, representing balance as of June 30, 2026 | ||||||||||||||||||||||||||||
| Balance as of June 30, 2026 (US$) | ||||||||||||||||||||||||||||
| F-17 |
9. ACCOUNTS PAYABLE, ACCRUALS, AND OTHER CURRENT LIABILITIES
Account payable, accrued expenses, and other liabilities consists of the following:
SCHEDULE OF ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES
| December 31, 2025 | June 30, 2026 | June 30, 2026 | ||||||||||
| SGD’000 | SGD’000 | USD’000 | ||||||||||
| Accounts payable | ||||||||||||
| Payroll payable | ||||||||||||
| Payable to other services | ||||||||||||
| Deposits | ||||||||||||
| Others | ||||||||||||
| Total | ||||||||||||
10. WARRANTY LIABILITIES
| December 31, 2025 | June 30, 2026 | June 30, 2026 | ||||||||||
| SGD’000 | SGD’000 | USD’000 | ||||||||||
| Balance at beginning of the year/period | ||||||||||||
| Additional accrual | ||||||||||||
| Utilized | ( | ) | ||||||||||
| Balance at end of the year/period | ||||||||||||
11. CONTRACT LIABILITIES
Contract liabilities primarily relate to advance consideration received from customers.
Movement in contract liabilities:
SCHEDULE OF MOVEMENT IN CONTRACT LIABILITIES
| December 31, 2025 | June 30, 2026 | June 30, 2026 | ||||||||||
| SGD’000 | SGD’000 | USD’000 | ||||||||||
| Balance at beginning of the year/period | ||||||||||||
| Decrease in contract liabilities as a result of recognizing revenue during the year/period that was included in the contract liabilities at the beginning of the year/period | ( | ) | ( | ) | ( | ) | ||||||
| Increase in contract liabilities as a result of receiving forward sales deposits and instalments during the year/period in respect of machines still under production | ||||||||||||
| Balance at end of the year/period | ||||||||||||
| F-18 |
12. DEFERRED TAX ASSETS/ LIABILITIES
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES
| December 31, 2025 | June 30, 2026 | June 30, 2026 | ||||||||||
| SGD’000 | SGD’000 | USD’000 | ||||||||||
| Deferred tax assets | ||||||||||||
| Deferred tax liabilities | ( | ) | ( | ) | ( | ) | ||||||
Following are the major deferred tax assets and liabilities recognized by the Company:
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES RECOGNIZED BY THE COMPANY
| Property, plant, and equipment | Provisions | Total | ||||||||||
| SGD’000 | SGD’000 | SGD’000 | ||||||||||
| As of January 1, 2025 | ( | ) | ( | ) | ||||||||
| Recognized in statements of income | ||||||||||||
| As of December 31, 2025 | ||||||||||||
| As of January 1, 2026 | ||||||||||||
| Recognized in statements of income | ||||||||||||
| As of June 30, 2026 | ||||||||||||
13. EQUITY
Ordinary shares
On December 2, 2025, the shares of the Company were re-designated and re-classified, resulting in Class A ordinary shares and Class B ordinary shares outstanding. The re-designation and re-classification did not result in any change in the total number of issued and outstanding shares or total shareholders’ equity of the Company. The Company has two classes of ordinary shares that are accounted for as permanent equity.
Voting Rights
Holders
of Class A Ordinary Shares and Class B Ordinary Shares shall, at all times, vote together as one class on all matters submitted to a
vote by the shareholders at any general meeting of the Company.
Conversion Rights
Class B Ordinary Shares may be converted into the same number of Class A Ordinary Shares at the option of the holders thereof at any time, while Class A Ordinary Shares cannot be converted into Class B Ordinary Shares under any circumstances.
Dividend Rights
Class A Ordinary Shares and Class B Ordinary Shares rank pari passu in all respects with respect to dividend rights and distributions on a per share basis. Holders of Class A Ordinary Shares and Class B Ordinary Shares are entitled to receive dividends when, as and if declared by the Board of Directors.
Treasury shares
During
the financial year/period ended December 31, 2025 and June 30, 2026, the Company acquired and of its own shares at the total
purchase consideration of SGD
| F-19 |
14. REVENUES BY PRODUCT AND GEOGRAPHY AND SEGMENTS
SCHEDULE OF PRINCIPAL TRANSACTIONS REVENUE
| 2025 | 2026 | 2026 | ||||||||||
| For the six-month period ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| SGD’000 | SGD’000 | USD’000 | ||||||||||
| Sales of cleaning systems and other equipment | ||||||||||||
| Provision of centralized dishware washing and general cleaning services | ||||||||||||
| Leasing of dishware washing equipment | ||||||||||||
| Revenue | ||||||||||||
In the following table, revenue is disaggregated by the timing of revenue recognition.
SCHEDULE OF DISAGGREGATION OF REVENUE BY TIMING OF REVENUE RECOGNITION
| SGD’000 | SGD’000 | SGD’000 | US$’000 | |||||||||||||
| For the six-month period ended June 30, 2026 | ||||||||||||||||
| Cleaning Systems | Dishware Washing Services | Total | Total | |||||||||||||
| SGD’000 | SGD’000 | SGD’000 | US$’000 | |||||||||||||
| Timing of revenue recognition: | ||||||||||||||||
| Point in time | ||||||||||||||||
| Over time | ||||||||||||||||
| Revenue | ||||||||||||||||
| SGD’000 | SGD’000 | SGD’000 | ||||||||||
| For the six-month period ended June 30, 2025 | ||||||||||||
| Cleaning Systems | Dishware Washing Services | Total | ||||||||||
| SGD’000 | SGD’000 | SGD’000 | ||||||||||
| Timing of revenue recognition: | ||||||||||||
| Point in time | ||||||||||||
| Over time | ||||||||||||
| Revenue | ||||||||||||
During the periods presented in these unaudited interim condensed consolidated financial statements, the Company reports two operating segments: 1) Sales of cleaning systems and other equipment, and 2) Provision of centralized dishware washing and general cleaning services.
The CODM allocates resources to and assess the performance of each operating segment using information about the operating segment’s revenue and income (loss) from operations. The CODM regularly reviews the Company’s revenue, cost and gross profit/loss derived from each revenue stream and is also provided with information of segment expenses. The CODM does not evaluate operating segments using asset or liability information.
The following tables present summaries of the Company’s breakdown of net revenues by segments and operating segment results for the periods ended June 30, 2025 and 2026, respectively. There was no significant transaction between reportable segments and non-significant non-cash items (other than depreciation and amortization) for the years the periods ended June 30, 2025 and 2026.
SCHEDULE OF BREAKDOWN OF NET REVENUES BY SEGMENTS
| 2025 | 2026 | 2026 | ||||||||||
| For the six-month period ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| SGD’000 | SGD’000 | USD’000 | ||||||||||
| Net revenues: | ||||||||||||
| Sales of cleaning systems and other equipment | ||||||||||||
| Provision of centralized dishware washing and general cleaning services | ||||||||||||
| Net revenues | ||||||||||||
| Cost of revenues: | ||||||||||||
| Sales of cleaning systems and other equipment | ( | ) | ( | ) | ( | ) | ||||||
| Provision of centralized dishware washing and general cleaning services | ( | ) | ( | ) | ( | ) | ||||||
| Cost of revenues | ( | ) | ( | ) | ( | ) | ||||||
| Gross profit: | ||||||||||||
| Sales of cleaning systems and other equipment | ||||||||||||
| Provision of centralized dishware washing and general cleaning services | ||||||||||||
| Gross profit | ||||||||||||
| Significant expenses: | ||||||||||||
| Sales of cleaning systems and other equipment | ||||||||||||
| Payroll expense | ( | ) | ( | ) | ( | ) | ||||||
| Other segment items (Note (i)) | ( | ) | ( | ) | ( | ) | ||||||
| Significant expenses | ( | ) | ( | ) | ( | ) | ||||||
| Provision of centralized dishware washing and general cleaning services | ||||||||||||
| Payroll expense | ( | ) | ( | ) | ( | ) | ||||||
| Other segment items (Note (i)) | ( | ) | ( | ) | ( | ) | ||||||
| Provision of centralized dishware washing and general cleaning services | ( | ) | ( | ) | ( | ) | ||||||
| Reversal of expected credit loss | ||||||||||||
| Interest income | ||||||||||||
| Interest expense | ( | ) | ( | ) | ( | ) | ||||||
| Other unallocated (expense)/income (Note (ii)) | ( | ) | ( | ) | ( | ) | ||||||
| Other (loss) income | ( | ) | ( | ) | ( | ) | ||||||
| Net (loss) income | ( | ) | ||||||||||
| Notes:- |
| (i) | ||
| (ii) |
| F-20 |
In the following table, revenue is disaggregated by the geographic locations of customers and by the timing of revenue recognition.
SCHEDULE OF DISAGGREGATION OF REVENUE BY GEOGRAPHICAL CUSTOMER LOCATIONS
| SGD’000 | SGD’000 | SGD’000 | US$’000 | |||||||||||||
| For the six-month period ended June 30, 2026 | ||||||||||||||||
| Cleaning Systems | Dishware Washing Services | Total | Total | |||||||||||||
| SGD’000 | SGD’000 | SGD’000 | US$’000 | |||||||||||||
| Geographic location: | ||||||||||||||||
| Singapore | ||||||||||||||||
| Malaysia | ||||||||||||||||
| Other countries | ||||||||||||||||
| Revenue | ||||||||||||||||
| SGD’000 | SGD’000 | SGD’000 | ||||||||||
| For the six-month period ended June 30, 2025 | ||||||||||||
| Cleaning Systems | Dishware Washing Services | Total | ||||||||||
| SGD’000 | SGD’000 | SGD’000 | ||||||||||
| Geographical location: | ||||||||||||
| Singapore | ||||||||||||
| Malaysia | ||||||||||||
| Other countries | ||||||||||||
| Revenue | ||||||||||||
15. INCOME TAX EXPENSES
Caymans and BVIs
The Company and its subsidiary, JE Cleantech International Ltd., are domiciled in the Cayman Islands and the British Virgin Islands, respectively. Both localities currently enjoy permanent income tax holidays; accordingly, the Company and JE Cleantech International Ltd. do not accrue for income taxes.
Singapore
The
Company’s subsidiaries, JCS-Echigo Pte. Ltd. and Hygieia Warewashing Pte. Ltd, are considered Singapore tax resident enterprises
under Singapore tax laws; accordingly, they are subject to enterprise income tax on their taxable income as determined under Singapore
tax laws and accounting standards at a statutory tax rate for the period ended June 30, 2026 of
The income tax provision consists of the following components:
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE BENEFIT
| 2025 | 2026 | 2026 | ||||||||||
| For the six-month period ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| SGD’000 | SGD’000 | USD’000 | ||||||||||
| Current income tax expense: | ||||||||||||
| Singapore | ||||||||||||
| Foreign jurisdictions | ||||||||||||
| Total current income tax expense | ||||||||||||
| Deferred income tax expense/(benefit): | ||||||||||||
| Current year | ||||||||||||
| Foreign jurisdictions | ||||||||||||
| Total deferred income tax expense/(benefit) | ||||||||||||
| Income Tax Expense | ||||||||||||
| Effective tax rate | ( | )% | % | 32.3 | % | |||||||
The
income tax expense varied from the amount of income tax expense determined by applying the Singapore income tax rate of
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION
| 2025 | 2026 | 2026 | ||||||||||||||||||||||
| For the six-month period ended June 30, | ||||||||||||||||||||||||
| 2025 | 2026 | 2026 | ||||||||||||||||||||||
| SGD’000 | % | SGD’000 | % | US$’000 | % | |||||||||||||||||||
| Income before tax expenses: | ( | ) | ||||||||||||||||||||||
| Tax
at Singapore income tax rate of | ( | ) | ||||||||||||||||||||||
| Reconciling item: | ||||||||||||||||||||||||
| Tax effect of non-deductible expenses | ( | ) | ||||||||||||||||||||||
| Income tax expense and effective tax rate | ( | ) | ||||||||||||||||||||||
Income taxes paid, net of refunds received, consisted of the following:
SCHEDULE OF INCOME TAXES PAID, NET OF REFUNDS RECEIVED
| 2025 | 2026 | 2026 | ||||||||||
| For the six-month period ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| SGD’000 | SGD’000 | US$’000 | ||||||||||
| Singapore | ||||||||||||
| Foreign jurisdictions | ||||||||||||
| Total | ||||||||||||
| F-21 |
16. RELATED PARTY BALANCES AND TRANSACTIONS
Nature of relationships with related parties:
SCHEDULE OF RELATED PARTY TRANSACTIONS
| Related Party Name | Relationship to the Company | |
| Ms. Hong Bee Yin | Controlling shareholder |
| SGD’000 | SGD’000 | US$’000 | ||||||||||||
| For the six-month period ended June 30, | ||||||||||||||
| Transaction nature | Name | 2025 | 2026 | 2026 | ||||||||||
| SGD’000 | SGD’000 | US$’000 | ||||||||||||
| Purchase of motor vehicle | Ms. Hong Bee Yin | |||||||||||||
| Dividend paid to controlling shareholder | Ms. Hong Bee Yin | |||||||||||||
Other than as disclosed above, there were no related party transactions conducted during the periods ended June 30, 2025 and 2026.
As of December 31, 2025 and June 30, 2026, there were no outstanding related party balances.
17. CONCENTRATIONS AND RISKS
Concentrations
Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of accounts receivable. The Company conducts credit evaluations of its customers, and generally does not require collateral or other security from them. The Company evaluates its collection experience and long-outstanding balances to determine the need for an allowance for expected credit losses accounts. The Company conducts periodic reviews of the financial condition and payment practices of its customers to minimize collection risk on accounts receivable.
The following table sets forth a summary of single customers who represent 10% or more of the Company’s total revenue:
SCHEDULE OF CONCENTRATION RISK BY RISK FACTOR
| For the six-month period ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| SGD’000 | SGD’000 | USD’000 | ||||||||||
| Amount of the Company’s revenue | ||||||||||||
| Customer A | ||||||||||||
| Customer B | * | * | ||||||||||
| Customer C | * | * | ||||||||||
| Customer D | ||||||||||||
| * |
| F-22 |
The following table sets forth a summary of single customers who represent 10% or more of the Company’s total accounts receivable:
| As of December 31, 2025 | As of June 30, 2026 | As of June 30, 2026 | ||||||||||
| SGD’000 | SGD’000 | USD’000 | ||||||||||
| Amount of the Company’s accounts receivable | ||||||||||||
| Customer A | ||||||||||||
| Customer D | ||||||||||||
| ** |
The following table sets forth a summary of suppliers who represent 10% or more of the Company’s total purchases:
| For the six-month period ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| SGD’000 | SGD’000 | USD’000 | ||||||||||
| Amount of the Company’s purchase | ||||||||||||
| Supplier A | ||||||||||||
| Supplier B | # | # | ||||||||||
| # | Purchase from relevant supplier was less than 10% of the Group’s total purchase for the respective period. |
The following table sets forth a summary of single suppliers who represent 10% or more of the Company’s total accounts payable:
| As of December 31, 2025 | As of June 30, 2026 | As of June 30, 2026 | ||||||||||
| SGD’000 | SGD’000 | USD’000 | ||||||||||
| Amount of the Company’s accounts payable | ||||||||||||
| Supplier A | ## | ## | ||||||||||
| Supplier B | ## | ## | ||||||||||
| Supplier C | ||||||||||||
| ## |
Credit Risk
Credit risk is the potential financial loss to the Company resulting from the failure of a customer or a counterparty to settle its financial and contractual obligations to the Company, as and when they fall due. As the Company does not hold any collateral, the maximum exposure to credit risk is the carrying amounts of trade and other receivables (excluding prepayments), financial instruments, and cash and bank deposits presented on the unaudited interim condensed consolidated statement of financial position. The Company has no other financial assets that carry significant exposure to credit risk.
Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.
Typically, the Company ensures that it has sufficient cash on demand to meet expected operational expenses for a period of 60 days, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.
Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of the Company’s financial instruments will fluctuate because of changes in market interest rates. The Company’s exposure to interest rate risk arises primarily from bank loans. The Company does not expect any significant effect on the Company’s profit or loss arising from the effects of reasonably possible changes to interest rates on interest bearing financial instruments at the end of the financial year.
As
at the reporting date, if the interest rates had been 50 basis points higher/lower with all other variables held constant, the Company’s
profit before tax would have been approximately SGD
| F-23 |
Derivative financial instruments
The following table sets out the derivative financial instruments as at the end of the reporting period:
SCHEDULE OF DERIVATIVE FINANCIAL INSTRUMENTS
| December 31, 2025 | June 30, 2026 | |||||||
| SGD’000 | SGD’000 | |||||||
| Interest rate swap | ||||||||
The Company uses derivative financial instruments such as interest rate swaps (including overnight indexed swaps) to hedge its risks associated with interest rate exposures. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into, and are subsequently re-measured at fair value. Any gains or losses arising from changes in fair value on derivatives that do not qualify for hedge accounting are taken directly to the profit or loss.
As
of the year end, the Company has re-measured the derivative financial instruments at fair value which is categorized as Level 2 in the
fair value hierarchy, as the valuations are determined by reference to the mark-to-market (“MTM”) valuations provided by
the bank counterparties using observable market inputs. The fair value of these instruments was approximately SGD
Foreign currency risk
The Company’s foreign exchange risk results mainly from cash flows from transactions denominated in foreign currencies. At present, the Company manages this exposure through ongoing monitoring and, where considered appropriate, the use of foreign exchange derivative instruments, including foreign exchange option contracts.
Derivative financial instruments
The following table sets out the derivative financial instruments as at the end of the reporting period:
| December 31, 2025 | June 30, 2026 | |||||||
| US$’000 | US$’000 | |||||||
| Foreign exchange option | ||||||||
The Company uses derivative financial instruments such as foreign exchange time option contracts to hedge its risks associated with foreign currency fluctuations. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into, and are subsequently re-measured at fair value. Any gains or losses arising from changes in fair value on derivatives that do not qualify for hedge accounting are taken directly to the profit or loss.
As
of the year end, the Company has re-measured the derivative financial instruments at fair value which is categorized as Level 2 in the
fair value hierarchy, as the valuations are determined by reference to the mark-to-market (“MTM”) valuations provided by
the bank counterparties using observable market inputs. The fair value of these instruments was approximately SGD
Taking
into account factors impacting the foreign currency being 10% higher or lower than expected, this would result a potential outcome in
an increase or decrease of the foreign currency exchange difference amounting to approximately US$
The Company is exposed to foreign currency risk on transactions that are denominated in currencies other than the functional currencies of the operating entities. Exposure in foreign currency is monitored on an ongoing basis and the Company endeavors to keep the net exposure at an acceptable level.
18. COMMITMENTS AND CONTINGENCIES
Contingencies
In the ordinary course of business, the Company may be subject to legal proceedings regarding contractual and employment relationships and a variety of other matters. The Company records contingent liabilities resulting from such claims when a loss is assessed to be probable and the amount of the loss is reasonably estimable. In the opinion of management, there were no pending or threatened claims and litigation as of June 30, 2026 and through the issuance date of these unaudited interim condensed consolidated financial statements.
19. SUBSEQUENT EVENTS
On September 11, 2026, the Company issued new Class A Ordinary Shares and transferred Class A Ordinary Shares held as treasury shares, in satisfaction of a special share award of Class A Ordinary Shares in aggregate approved by the Board of Directors on September 7, 2026 under its employee equity incentive plan. This represents a non-adjusting subsequent event and accordingly no share-based compensation expense has been recognised in the financial statements as at June 30, 2026.
At the Annual General Meeting of the Company held on October 16, 2026, shareholders approved all resolutions, including the re-election of all directors and the ratification of the appointment of the Company’s independent registered public accounting firm, WWC P.C., for the fiscal year ending December 31, 2026.
The Company has assessed all events from June 30, 2026 through the date that these unaudited interim condensed consolidated financial statements are available to be issued, and other than the events disclosed above there are no material subsequent events that require disclosure in these unaudited interim condensed consolidated financial statements.
| F-24 |