Don Agro International Limited: 1H 2025 Financial Analysis

Don Agro International Limited has released its unaudited condensed consolidated interim financial statements for the six months ended 30 June 2025. This period marks a significant transition for the Group following the disposal of its agricultural businesses and the strategic pivot towards healthcare acquisitions. Below, we analyze key financial metrics, year-over-year and quarter-over-quarter performance, notable corporate actions, and provide a concise outlook for investors.

Key Financial Metrics

¹ Revenue in 1H 2024 was from discontinued agricultural operations.
² Loss in 2H 2024 includes the impact of discontinued operations and asset disposals.

Historical Performance & Trends

The Group has undergone a dramatic transformation over the past year. In July 2024, Don Agro completed the disposal of all its core agricultural assets (Don Agro LLC, Don Agrarian Group JSC, Don Muchnov LLC, Volgo-Agro LLC), and has since operated as a “cash company”. This resulted in the cessation of recurring revenue streams from agricultural products such as crops, livestock, and milk.

The loss in 1H 2025 is substantially lower than the prior year, where the group recognized heavy losses from discontinued operations and asset value adjustments. The NAV per share improved markedly as the agricultural divestment injected significant cash into the balance sheet.

Exceptional Items & Corporate Actions

• Disposals: The sale of agriculture businesses netted approximately S\$65.7m in cash, completed by July 2024. The final payment was received by February 2025.
• Acquisition Plans: The Group is working towards the acquisition of 812 Capital LLC (99.99%) and Centre for Innovative Medical Technologies, LLC (11.5%), which operate under the Euroonco brand, a network of oncology clinics in Russia. Advance payments of S\$34.6m have already been made.
• Cash Company Status: With no operating subsidiaries post-disposal (Happy Cow, LLC is non-operating), Don Agro is classified as a cash company under SGX Rule 1017. The Group’s focus is now on completing the medical business acquisition and exiting the cash company status.

Balance Sheet Highlights

• Total Assets: S\$69.0m (30 June 2025) vs S\$53.0m (31 Dec 2024)
• Cash & Cash Equivalents: S\$25.1m (down from S\$47.9m at year-end, reflecting deployment of funds for the new acquisition)
• Trade & Other Receivables: S\$43.5m (up from S\$4.8m, mostly due to advance payments and loans to acquisition targets)
• Liabilities: Remain low at S\$2.0m

Cash Flow Analysis

• Operating Activities: Net outflow of S\$5.6m, attributable to administrative expenses and working capital changes.
• Investing Activities: Net inflow of S\$2.4m, mostly due to deferred consideration received from disposals, partially offset by advance payments for acquisitions and loans.
• Financing Activities: No significant inflows/outflows.
• Overall: Cash decreased by S\$23m in 1H 2025.

Directors’ Pay

Key management personnel compensation for 1H 2025 was S\$429,000, up from S\$337,000 in 1H 2024.

Dividends

No interim dividend was declared for 1H 2025 or 1H 2024, as the Group is conserving cash for future expansion and the medical business acquisition.

Events Affecting the Business

• Macroeconomic Risk: The business environment in Russia remains volatile, with evolving tax and regulatory risks. The Group has disclosed that Russian tax authorities have become more assertive, which could create additional risks.
• Strategic Uncertainty: The Group is dependent on successful completion of the healthcare acquisitions to resume active operations and generate future revenue.

Chairman’s Statement

On behalf of the Board of Directors of the Company (the “Board”), we the undersigned, hereby confirm to the best of our knowledge that nothing has come to the attention of the Board which may render the unaudited financial statements for the six-month period ended 30 June 2025 to be false or misleading in any material aspect.

For and on behalf of the Board of Don Agro International Limited
Marat Devlet-Kildeyev, Chief Executive Officer and Executive Director
Evgeny Tugolukov, Executive Chairman
14 August 2025

The tone of the statement is neutral and factual, reflecting a period of transition and diligence rather than optimism or pessimism.

Conclusion & Outlook

Performance: The Group’s financials reflect the after-effects of a major transformation: the cessation of agricultural operations and the move to a cash-rich status while pursuing strategic healthcare acquisitions. While the reduction in losses and improved NAV per share are positive, the lack of operating revenue and ongoing uncertainty over the new business direction pose risks.

Outlook: Future performance will hinge on the successful completion and integration of the Euroonco clinics acquisition. Until then, Don Agro remains a cash company, with its operational future yet to be defined.

Investor Recommendations

• If you are currently holding Don Agro stock:
  Maintain a cautious hold. The company’s financial position is stable, but the lack of operating business and dependence on the successful acquisition of healthcare assets mean that risk remains elevated. Monitor announcements regarding acquisition progress and regulatory approvals. Consider reducing exposure if acquisition delays persist or strategic clarity does not improve.
• If you are not currently holding Don Agro stock:
  Adopt a wait-and-see approach. Entry is not recommended until there is evidence of successful acquisition and integration of operating businesses, with clear revenue prospects. The company’s cash position is strong, but operational uncertainty remains high.

Disclaimer: The above recommendations are based strictly on the company’s interim financial statements and do not constitute financial advice. Investors should conduct their own due diligence and consider their individual risk tolerance before making investment decisions.

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