Ascent Bridge Limited: 1H 2026 Interim Results Analysis

Ascent Bridge Limited, a Singapore-based investment holding company in the production and distribution of liquor and beverages, released its unaudited condensed interim financial statements for the six months ended 30 September 2025. Below, we analyze key financial metrics, performance trends, and notable corporate actions, and provide insights for investors.

Key Financial Metrics and Performance

* No explicit 2H 2025 data provided, used latest available for comparison.
** Estimated from previous NAV/share and share increases.

Historical Performance Trends

The company has continued to operate at a loss, with net losses increasing year-over-year and quarter-over-quarter. Revenue declined sharply by 42.1% YoY, mainly due to reduced contributions from duty-free markets such as the Middle East, Malaysia, and the United States. Gross profit margin also fell from 50.7% to 43.3%, reflecting a less favorable product mix.

Cash Flow and Financial Position

Cash and cash equivalents dropped significantly to S\$139,000 as at 30 September 2025, from S\$1.22 million at 31 March 2025. The company is facing net operating cash outflows of S\$955,000 for the period. The Board acknowledges that these conditions indicate events that may adversely affect the Group’s ability to continue as a going concern. However, management believes the company can meet its liabilities over the next year, supported by an interest-free S\$500,000 loan from a controlling shareholder and a planned rights issue.

Disclaimer of Audit Opinion

The independent auditor, CLA Global TS Public Accounting Corporation, has issued a disclaimer of opinion on the FY2025 audited financial statements, citing inability to obtain sufficient appropriate audit evidence regarding opening balances, impairment assessments, related party balances, deposits, and the company’s going concern assumption. The company is pursuing legal action to recover some deposits and continues to work toward resolving these issues.

Directors’ Remuneration

Directors’ fees and remuneration for the first half of FY2026 amounted to approximately S\$409,000, with S\$180,000 in accrued directors’ fees and S\$229,000 in remuneration. This is similar to the previous period, indicating stable management compensation practices.

Fundraising and Capital Actions

• In December 2024, Ascent Bridge completed a placement of 17.4 million new shares, raising gross proceeds of S\$2.44 million (net S\$2.36 million), which has been almost fully deployed toward general working capital needs.
• The company plans a new rights issue to further strengthen its capital base and pursue both organic and inorganic growth.
• All treasury shares were re-issued during FY2025; there are no outstanding options or convertibles.

Exceptional Items and Related Party Transactions

• An additional expected credit loss of S\$2.35 million was recognized on amounts due from subsidiary corporations during the period.
• There are significant related party receivables, particularly from CIGL, a company controlled by a director/controlling shareholder. Repayment schedules have been renegotiated with partial payments received, but a sizeable balance remains outstanding and subject to recovery risk.
• No interested person transactions exceeding S\$100,000 were reported during the review period.

Other Notable Events and Risks

• The Group is pursuing legal action to recover a S\$5.0 million refundable deposit from an aborted acquisition.
• There is uncertainty related to the recoverability of a S\$1.1 million supplier deposit and a S\$1.5 million prepayment for a card development project with no current subscribers.
• Borrowings include a non-interest bearing unsecured loan from Dong Ying Quan Li Quan Wai International Trading Co Ltd, part of which may be converted to capital, and a director’s loan for working capital.

Chairman’s Statement

Following the completion of the mandatory unconditional general offer on 30 September 2025, the Company is desirous of undertaking a new proposed rights issue within the next few months to raise funds to enhance and expand the Group’s existing business, operations and initiatives (via organic and inorganic growth), strengthen the financial position and capital base of the Group, as well as to explore new business opportunities. Accordingly, the Group expects to generate future cash inflows from its business operations.

The Company will continue to make relevant announcements of any material development that may impact the Group’s operations and performance as and when they arise.

The Chairman’s tone is cautiously optimistic, focusing on fundraising, capital strengthening, and new business opportunities but recognizing ongoing operational and financial challenges.

Dividend Policy

No dividends have been declared or recommended for the period due to the lack of retained earnings. There is no indication of dividend resumption in the near term.

Conclusion & Investor Recommendations

Ascent Bridge Limited’s 1H 2026 results highlight ongoing operational challenges, declining revenue, persistent losses, and significant uncertainties over asset recoverability and going concern status. While the company is taking steps to shore up its finances via loans from related parties and a planned rights issue, the auditor’s disclaimer of opinion and unresolved legacy issues present substantial risks.

• If you currently hold this stock: Consider reducing exposure or exiting your position, especially if you are risk-averse or require liquidity in the short to medium term. The company faces continued losses, low cash reserves, and material audit and recovery risks.
• If you are not currently holding this stock: It is advisable to remain on the sidelines until the company demonstrates sustainable revenue improvement, resolves audit qualifications, and strengthens its balance sheet. Only speculative investors with high risk tolerance might consider monitoring for signs of turnaround or successful capital raising.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Investors should perform their own due diligence and consult their financial advisor before making any investment decisions.

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