SDAI Limited: Q2 and H1 2025 Financial Results Analysis
SDAI Limited, listed on the Singapore Exchange Catalist board, has released its unaudited condensed interim financial statements for the second quarter (Q2) and six months ended 30 June 2025. The company, traditionally focused on high-end kitchen systems and appliances, is currently undergoing a strategic transformation into the biotechnology sector. This article provides a structured analysis of SDAI’s latest financials, including key metrics, major events, and outlook.
Key Financial Metrics: Q2 and H1 2025
| Metric |
Q2 2025
(3 months) |
Q1 2025
(inferred)* |
Q2 2024
(3 months) |
YoY Change |
QoQ Change |
| Revenue |
S\$139,800 |
S\$44,508 |
S\$175,205 |
-20.2% |
+214.2% * |
| Cost of Sales |
S\$39,636 |
S\$21,070 |
S\$71,150 |
-44.3% |
+88.1% * |
| Gross Profit |
S\$100,164 |
S\$23,438 |
S\$104,055 |
-3.7% |
+327.6% * |
| Other Income |
S\$1,799 |
S\$1,662 |
S\$26,946 |
-93.3% |
+8.2% * |
| Other Operating Expenses |
S\$256,099 |
S\$72,765 |
S\$1,919 |
N.M. |
+252.1% * |
| General and Administrative Expenses |
S\$491,381 |
S\$529,852 |
S\$1,059,677 |
-53.6% |
-7.3% * |
| Loss from Operations |
(S\$645,517) |
(S\$577,517) |
(S\$930,595) |
-30.6% |
+11.8% * |
| Finance Costs |
S\$154,866 |
S\$152,281 |
S\$836 |
N.M. |
+1.7% * |
| Impairment Loss on PPE |
S\$0 |
S\$0 |
S\$74,805 |
N.M. |
— |
| Net Loss Attributable to Owners |
(S\$813,744) |
(S\$721,881) |
(S\$1,024,739) |
-20.6% |
+12.7% * |
| EPS (S\$ cents) |
(0.19) |
(0.17) |
(0.24) |
Improved |
— |
| Dividend per share |
None |
— |
None |
No change |
— |
*Q1 2025 values are inferred by subtracting Q2 from H1 results. “N.M.” denotes Not Meaningful due to low base or negative values in prior period. EPS = Earnings per Share.
Historical Performance Trends
- The company has continued to report losses, with H1 2025 net loss attributable to owners at S\$1.54 million (H1 2024: S\$1.29 million).
- Revenue has shrunk significantly YoY due to the discontinuance of residential project revenues and downsizing of operations, especially in the Hong Kong kitchen business.
- Gross margin remains positive, but operating and finance costs continue to weigh heavily on the bottom line.
- Net asset value per share deteriorated further to negative S\$0.0182 (Dec 2024: negative S\$0.0152).
Exceptional Items and Noteworthy Expenses
- Significant foreign exchange losses (S\$0.26 million in Q2 2025) due to the strengthening of the Singapore dollar against the Hong Kong dollar.
- Legal and professional fees fell substantially YoY, reflecting the completion of a special audit process.
- No impairment loss on property, plant, and equipment was recorded in H1 2025, compared to prior periods when impairment was significant.
Balance Sheet and Cash Flow Position
- Cash and Bank Balances: S\$167,779 as at 30 June 2025, down from S\$725,607 at end-2024, driven by operating outflows and lease repayments.
- Current Liabilities: Jumped to S\$9.35 million due to reclassification of borrowings as they near maturity and increased payables.
- Negative Working Capital: Now at S\$8.73 million, up from S\$0.53 million, flagging serious short-term liquidity risks.
- Borrowings: S\$7.26 million are now current, and management is negotiating extensions and new loans (including an August 2025 S\$1 million loan at 8% p.a.).
Significant Events and Corporate Actions
- Legal/Compliance: The company remains under a Disclaimer of Opinion from its auditor due to going concern uncertainties, regulatory compliance reviews, and historical internal control weaknesses related to employment and unauthorized transactions.
- Special Audit: A special audit into payroll and unauthorized transactions is completed but not yet formally released, pending fee settlement.
- Legal Dispute: Hong Kong subsidiary faces a small claims court case for an amount substantially lower than the original demand, with the hearing scheduled for August 2025.
- Fundraising: Management continues to secure new loans and negotiate maturity extensions to address liquidity.
- Business Transformation: The company has formally entered the biotechnology sector, launching new subsidiaries and obtaining regulatory approval in China for a proprietary skincare line.
Chairperson’s Statement and Tone
There is no direct Chairperson’s statement, but management commentary is cautious and realistic. The tone is defensive, emphasizing ongoing restructuring efforts, the strategic pivot to biotechnology, and the urgent need to resolve outstanding regulatory and audit issues. The outlook remains uncertain, with management expressing confidence but acknowledging material uncertainties around going concern and liquidity.
Dividends
- No dividend declared or paid for Q2 or H1 2025, consistent with the prior year—reflecting ongoing losses and accumulated deficits.
Outlook and Risks
- Management warns of continued headwinds in the kitchen business and acknowledges a slow recovery in Hong Kong’s real estate and retail segments.
- The strategic move into biotechnology is highlighted as a potential growth driver, but this is at an early stage.
- The company’s survival depends on successful refinancing, regulatory compliance, and the ability to stem operating losses.
- Material uncertainties remain regarding whether the group can continue as a going concern.
Conclusion
SDAI Limited’s financial performance remains weak, with ongoing losses, shrinking revenue, and deteriorating liquidity. The company faces a negative working capital position, substantial current borrowings, and auditor doubts about its ability to continue as a going concern. While the strategic shift to biotechnology and recent regulatory approvals in China offer a glimmer of hope for future growth, the short-term outlook is clouded by financial distress, unresolved regulatory audits, and legal disputes. Investors should approach with caution and closely monitor developments in refinancing, restructuring, and the new biotech venture.
View SDAI Historical chart here
