Chairman Statement
Dear Shareholders,
On behalf of the Board of Directors (the "Board") of TEHO International Inc Ltd. (the "Company" and together with its subsidiaries, the "Group"), it is my great pleasure to present to you the Annual Report for the financial year ended 30 June 2025 ("FY2025").
Overview
The global economic landscape during FY2025 was mired with multiple headwinds. When we began our first half of FY2025, we were faced with the protracted Ukraine-Russia war, Hamas-Israel war and tense USChina and East Asian relations. The interest rates also did not fall as much as we and the industry would hope for. The business environment took a further turn during our second half of FY2025. President Trump was elected and started a flurry of tariff related activities, casted much uncertainty in the economy and led to volatile global supply chains as well as more cautious spending. It was with much relief that the bombing of Iran's nuclear facilities did not escalate to larger regional conflict in the Middle East.
As mentioned in my statement last year, we were to stay cautious in FY2025 while prioritising costs and operational efficiencies to safeguard our financial health and position the Group for sustained growth. I would like to give credit to our committed and cooperative colleagues for collectively achieving a profit after tax of S$1.5 million in FY2025, a 62.3% improvement from the previous year.
Lim See Hoe
Executive Chairman and Chief Executive Officer
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Financial review
Revenue increased by S$4.1 million or 6.7% to S$64.5 million for FY2025 from S$60.4 million for FY2024. This growth was primarily driven by the Marine & Offshore Segment, which saw a S$3.9 million or 6.9% rise in revenue due to stronger sales from the mooring and rigging business, supported by orders from newly-built vessels. The Others Segment also contributed with a S$0.2 million or 3.4% increase, mainly from the water and environmental treatment business.
The Group's gross profit of S$23.4 million in FY2025 increased by S$0.9 million or 3.9% from S$22.5 million in FY2024.
The Group's profit before tax was S$2.0 million in FY2025 as compared to a profit before tax of S$1.6 million in FY2024. After accounting for income tax expense of S$0.5 million in FY2025, the Group's profit for FY2025 was S$1.5 million as compared to a profit of S$0.9 million in FY2024.
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Navigating global challenges with prudence
The Ukraine-Russia war and Hamas-Israel conflict wage on, while China-US relationship remains tense. The tariffs on imports into US will begin to come into effect during our FY2026. In addition, we are witnessing more climate related incidents in different parts of the world.
With these multiple precarious situations, the road ahead in FY2026 is uncertain and hence much prudence is desired for the Group as further deterioration of any of the mentioned situations may possibly have an adverse influence on global trade, which will reduce shipping volumes and in turn affect our sales. The silver lining is that interest rates are expected to decline in FY2026 which will help to alleviate interest costs for the Group.
Apart from staying vigilant, we will foster closer cooperation among the subsidiaries, including collective marketing and purchasing, integration of management and operation efficiency, etc, so as to extract maximum benefits and cost reduction for the Group.
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Reaping the rewards
In view of the commendable set of results in FY2025, the Board has proposed a first and final dividend of 0.1 Singapore cents per share to reward our valued shareholders for their support of the Group.
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Appreciation
I would like to take this opportunity to thank my fellow Board of Directors for the guidance and counsel throughout the year. On behalf of the Board and Management, I would like to sincerely thank our business partners, customers, bankers and most importantly, our employees for their unwavering efforts and contributions to the Group. Last but not least, I would like to express my deep appreciation for our shareholders' trust and loyal support in the Company.
