Shen Yao Holdings Limited – Detailed Monthly and Corporate Update (January 2026)

Key Developments and Updates

• Legal Proceedings and Corporate Actions:
  • Shen Yao Holdings Limited has been involved in several legal proceedings, including claims initiated by Golden Point Group Pty Ltd (in liquidation) and statutory demands from Tomson Pte. Ltd.
  • Actions against the Company by Golden Point Group Pty Ltd have been wholly discontinued as of February 2025, with the High Court accepting the discontinuance.
  • The High Court issued an injunction in May 2025 restraining Tomson Pte. Ltd. from commencing winding-up proceedings against the Company, pending final determination of the originating claim. This provides short-term stability for Shen Yao Holdings, preventing immediate liquidation.
  • Mediation efforts in November 2025 failed to resolve the dispute related to the originating claim, and the case conference has been adjourned to March 2026 to allow further legal processes involving other parties in Australia.
• Business Development and Strategic Initiatives:
  • On 21 March 2025, Shen Yao Holdings entered into an agent agreement with INVD PTE LTD (“JCS”), committing to secure 3,500,000 tons of coal over 24 months. The Company is responsible for coordinating negotiations and finalising purchase terms with coal suppliers.
  • August 2025 marked the facilitation of an initial coal shipment contract, with JCS and the supplier working towards completing the first delivery. Efforts are ongoing to diversify suppliers, indicating active pursuit of new revenue streams.
  • On 15 December 2025, the Company signed a binding memorandum of understanding (MOU) with Zion Mobility Pte. Ltd. and its shareholders for the proposed acquisition of Zion Mobility, which could result in a reverse takeover under Chapter 10 of the Catalist Rules.
  • To facilitate the Zion Mobility transaction, Shen Yao Holdings secured a S\$2 million unsecured, non-interest-bearing loan from a Zion Mobility co-founder and a commitment from Zion Mobility to finance S\$1 million of transaction-related expenses.
  • Due diligence and the appointment of professional advisors are underway for the proposed reverse takeover transaction, which could significantly alter the Company’s business direction and capital structure.
• Financial Position and Cash Utilisation:
  • As of 31 December 2025, the Company’s assets are comprised of S\$15,000 in cash and bank balances and S\$65,000 in trade and other receivables, against S\$6,627,000 in liabilities, resulting in net liabilities of S\$6,547,000.
  • The Company clarified a previous accounting treatment error, removing an impaired loan from liabilities and reclassifying it as a dividend or capital reduction, improving transparency for investors.
  • Cash flow for December 2025 included a starting balance of S\$2,000, S\$3,000 from directors, S\$100,000 from a third-party loan, and S\$90,000 in payments for outstanding expenses, finishing the month with S\$15,000 in cash.
  • Given the lack of operating business and suspended financial reporting since September 2022, asset valuations are based on best estimates and unaudited figures.
• Regulatory and Listing Status:
  • The Company has been suspended from trading on SGX-ST since March 2023.
  • Efforts to extend the deadline to satisfy new listing requirements have been made and withdrawn multiple times, and a revised application is being prepared for submission.
  • If necessary, the Company will seek a waiver of escrow obligations as required under local listing rules.

Implications for Shareholders and Potential Price-Sensitive Issues

• Legal Risks: While some legal claims have been discontinued, ongoing disputes and mediation failures introduce uncertainty and risk to the Company’s financial stability and future operations.
• Reverse Takeover Prospects: The proposed acquisition of Zion Mobility and the potential reverse takeover represent significant strategic shifts. If successful, this could lead to a new business direction, asset base, and possibly the lifting of the trading suspension, with substantial implications for share value.
• Coal Trading Business: The agent agreement to secure 3.5 million tons of coal over 24 months is a major new business opportunity, but success depends on execution, market conditions, and ability to scale operations.
• Financial Health: The Company remains in a net liability position, with operating cash flows reliant on director and third-party loans. The lack of operating business and unaudited figures raise concerns about solvency and future funding needs.
• Suspended Trading: Shares remain suspended, and shareholders should monitor announcements for any developments that could lead to resumption of trading or changes in capital structure.

Conclusion

Shen Yao Holdings Limited faces ongoing legal, financial, and operational uncertainties. However, recent efforts to establish new revenue streams through coal trading and the potential acquisition of Zion Mobility could transform the Company’s prospects. Shareholders should stay alert for further announcements regarding the legal proceedings, progress of business initiatives, and the outcome of the reverse takeover, as these matters are likely to have substantial impacts on the future value and trading status of Shen Yao Holdings shares.

Disclaimer

This article is for informational purposes only and does not constitute financial advice or a recommendation to buy, sell, or hold any securities. Investors should consult their professional advisers and carefully consider all public disclosures by the Company before making investment decisions. The information presented is based on the Company’s unaudited and best-effort estimates as of January 2026 and may be subject to change.

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