Miyoshi Limited Reports Material Variances in FY2025 Audited vs Unaudited Financial Results—No Dividend Details Announced

Miyoshi Limited: Analysis of FY2025 Audited Financial Results

Miyoshi Limited, a Singapore-listed precision engineering company, recently released its audited financial statements for the year ended 31 August 2025. This article provides a structured analysis of the key financial metrics, material variances compared to unaudited results, and significant corporate actions disclosed in the report. Investors can use this review to assess the company’s performance and outlook.

Key Financial Metrics

The final audited results revealed several material variances from the unaudited figures released earlier. Below is a summary of key financial line items, with explanations for the differences where relevant:

Metric	FY2025 Audited	FY2025 Unaudited	Variance (S\$’000)	% Change
Other Operating Expenses	6,835	7,098	-263	-4%
Loss Before Income Tax	2,497	2,725	-228	-8%
Other Reserves (Group)	2,258	3,081	-823	-27%
Accumulated Losses (Group)	17,116	18,038	-922	-5%
Investment in Subsidiaries (Company)	21,084	20,454	+630	+3%
Net Cash Used in Operating Activities	411	917	-506	-55%
Net Cash Provided by Investing Activities	2,830	3,534	-704	-20%
Net Cash Used in Financing Activities	1,013	1,212	-199	-16%

Material Variances and Explanations

Impairment and Asset Valuation: The loss before income tax was reduced by S\$228,000, mainly due to a lower impairment loss on property, plant, and equipment after finalizing valuation and impairment assessments. This highlights the importance of asset revaluation accuracy.
Reclassification Adjustments: Several line items were reclassified, including “Other Expenses” to “Depreciation” and “Directors Fee” to “Employee Benefits.” These do not impact the overall loss but improve the clarity of reporting.
Foreign Exchange: A net loss on foreign exchange was adjusted, impacting operating expenses.
Reserve and Loss Reclassifications: Other reserves decreased mainly due to reclassification to accumulated losses and currency translation reserves. Accumulated losses were adjusted for the year’s loss and income tax changes.
Investment in Subsidiaries: The company reversed a loss allowance on investment in Miyoshi Precision (Malaysia) Sdn Bhd, increasing the carrying value of subsidiaries.
Cash Flow Variances: Operating cash outflows improved by S\$506,000, while investing and financing activities saw notable variances mainly driven by asset disposals, acquisitions, and changes in bank borrowings and lease repayments.

Exceptional Items and Corporate Actions

Asset Disposal: Proceeds from the disposal of property, plant, and equipment and assets held for sale contributed positively to investing cash flows.
Acquisition of Non-Controlling Interests: There was a net cash outflow related to acquisition, representing a strategic move to consolidate ownership.
Lease and Loan Adjustments: Changes in lease liabilities and director loan repayments affected financing cash flows.

Errors, Inconsistencies, and Audit Adjustments

The report details several material audit adjustments, mostly related to asset impairment, professional fees, and reclassification of expenses. These corrections improved the presentation and accuracy of the financial statements but did not materially change the company’s overall financial position.

Historical Performance Trends

The report does not provide direct YoY or QoQ comparisons of earnings, revenue, or EPS. However, the persistently high accumulated losses and adjustments to asset values suggest ongoing operational challenges and a weak historical trend in profitability.

Directors’ Remuneration

Directors’ fees were reclassified to employee benefits, indicating an audit-driven adjustment but no disclosure of total remuneration.

Events Affecting the Business

No mention is made of natural disasters, legal disputes, policy changes, or macroeconomic shifts. The main business-impacting events are related to asset impairments and ownership consolidation.

Dividends

No dividend was proposed or disclosed for FY2025, and no comparison with previous periods was provided.

Outlook

The tone of the announcement is factual and does not include a Chairman’s Statement. The executive director and CEO, Sin Kwong Wah Andrew, signs off on the report, but there is no narrative regarding future prospects or strategic direction.

Conclusion and Investor Recommendations

Overall Performance: Miyoshi Limited’s audited FY2025 results continue to show significant accumulated losses, asset impairments, and weak cash generation, despite audit improvements. The absence of dividends and historical losses point to a challenging operating environment.

If you are currently holding Miyoshi Limited stock: Consider reviewing your position carefully. The company faces ongoing profitability issues and has not proposed a dividend. Unless there are signs of turnaround or strategic change in future announcements, investors may wish to consider reducing exposure or seeking opportunities in stronger performers.
If you are not currently holding Miyoshi Limited stock: Exercise caution before initiating a position. The business remains loss-making, and no positive signals are evident in the latest audited report. Wait for clear evidence of operational improvement or a strategic shift before investing.

Disclaimer: This analysis is based strictly on the information contained in the audited financial report for Miyoshi Limited FY2025, without consideration of market conditions or external factors. Investors should conduct their own due diligence and consult a financial advisor before making investment decisions.