Sincap Group Limited: Net Profit Declines in FY2024

Business Description

Sincap Group Limited is a Singapore-based company that operates in the trading and distribution of resources and commodities. The company has a presence in China and Singapore. However, the company has not generated any revenue since May 2021 and has been deemed a cash company since then.

Financial Statement Analysis

Based on the financial statements for the year ended 31 December 2024 (FY2024):

Income Statement

– The company reported a net loss of RMB 2,180,000 for FY2024, indicating a decline in profitability. – The company does not have any revenue-generating activities since May 2021.

Balance Sheet

– The company’s current liabilities exceeded its current assets by RMB 7,978,000, indicating a working capital deficit. – The company has a deficit in equity of RMB 12,485,000, suggesting a weakened financial position.

Cash Flow Statement

– The company reported net cash used in operating activities of RMB 1,566,000, indicating negative cash flow from operations.

Key Findings

– The company is facing significant financial challenges, with a net loss, working capital deficit, and a deficit in equity. – The company has not generated any revenue since May 2021 and has been deemed a cash company. – There is a material uncertainty about the company’s ability to continue as a going concern, as indicated by the auditor’s disclaimer of opinion.

Recommendation

Based on the financial information provided, I would not recommend investing in Sincap Group Limited at this time. The company’s financial performance and position have deteriorated significantly, and there is substantial uncertainty about its ability to continue as a going concern. Investors currently holding the stock should consider selling their shares, as the company’s future prospects appear highly uncertain.
It’s important to note that this recommendation is based solely on the information provided in the financial report, and investors should conduct their own due diligence and seek professional advice before making any investment decisions.

Date of Report

This report is based on the financial statements for the year ended 31 December 2024.

Special Activity

The company has entered into a binding heads of agreement with a professional investor to explore a potential investment and corporate restructuring. However, as of the date of the report, the company had not fulfilled certain key conditions precedent to the proposed investment.

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