9R Limited: Business and Financial Update for the Quarter Ended 31 December 2025

Key Highlights for Investors

• Revenue Growth: The Group reported revenue of S\$3.6 million for the three months ended 31 December 2025, a modest increase of 4% compared to S\$3.4 million in the same period last year. Growth was driven by continued customer engagement in the lifestyle retail segment and contributions from the RedPay Visa Card. Karaoke revenue remained stable, except for the closure of the NU Empire Mall outlet in Malaysia.
• Cost Dynamics: Cost of sales increased in line with revenue, rising 8% to S\$975,000. Gross profit was stable at S\$2.58 million, up 3% year-on-year, reflecting a consistent operating environment.
• Significant Expense Increases:
  • Marketing and Distribution: Expenses rose sharply from S\$8,000 to S\$118,000, primarily due to brand-building activities for RedBox’s 25th Anniversary, including singing competitions, sponsorships, and digital advertising. The full revenue impact is expected to materialise over time.
  • Administrative Expenses: Increased to S\$1.77 million, up 16%. This was mainly due to one-off partial demolition and reinstatement expenses from the closure of the NU Empire outlet.
  • Other Operating Expenses: Increased by 10% to S\$1.1 million, reflecting higher depreciation from renovation works at Aeon Seremban 2 outlet.
• Losses Reported: The Group incurred a pre-tax loss of S\$383,000 for the quarter, compared to a profit of S\$340,000 last year. After tax, the loss was S\$290,000 versus a profit of S\$386,000 in the prior year. For the nine months ended 31 December 2025, the Group recorded a loss of S\$1.13 million compared to a profit of S\$781,000 previously.

Financial Position and Liquidity

• Cash and Bank Balances: Increased to S\$3.87 million, mainly due to a drawdown of a financial facility of approximately S\$1.89 million (RM6 million) from Boost Bank Berhad.
• Total Assets: Decreased by S\$770,000, driven by S\$3.11 million in depreciation of property, plant, and equipment, partially offset by acquisitions and increased cash balances.
• Total Liabilities: Slight decrease to S\$11.45 million, mainly due to repayment of lease liabilities, offsetting facility drawdowns and movements in payables.
• Equity: Decreased by S\$720,000, reflecting losses incurred during the period.

Use of Proceeds: Capital Management

• Warrants Exercise: 45.3 million warrants exercised, raising S\$1.81 million in net proceeds. 50% of proceeds utilised for professional fees, admin expenses, deposit for acquisition, and shareholder loan repayment. Remaining S\$906,000 earmarked for general corporate and working capital requirements.
• Private Placement (Nov 2022): Raised S\$12.2 million, with 70% allocated to diversification of business (fully utilised) and 30% to corporate and working capital requirements (S\$765,000 remaining). Usage in line with prior disclosures.

Business Segment Updates and Expansion Plans

Lifestyle Retail (Karaoke & RedPay)

• Outlet Portfolio: Currently operates 7 karaoke outlets after closing NU Empire Mall outlet. Continues to review and optimise outlet performance.
• New Outlets: Renovation underway for a new outlet at Tarcor Park in Melaka, Malaysia; operations expected mid-2026. Planning stage for potential outlet at Antara Genting Mall in Pahang.
• Greenbox Chain Expansion:
  • Launching Greenbox singing cube concept for a private, flexible karaoke experience.
  • Renovation in progress for two Greenbox outlets (SS15 and Kota Kemuning, Selangor). Aeon Tebrau, Johor Bahru outlet at planning stage.
  • Marketing focus on Greenbox concept in 2026 to build brand awareness and support rollout.
• Internal Reorganisation: RedPay business to be transferred to RedPay Sdn. Bhd., which will become the operating entity for the Visa Card, while 9R Leisure Sdn. Bhd. will remain an investment holding company.
• Challenges: Operating environment remains challenging due to intense industry competition, labour constraints, and inflationary pressures. The Group will manage costs prudently and execute expansion plans carefully.

Supply Chain Management Segment

• Business Performance: Activity levels remained subdued, with limited sales of food delivery robots due to cautious customer spending amid macroeconomic uncertainties. Slight improvement noted compared to the previous quarter.
• Inventory Management: Focused on selling existing inventory and maintaining disciplined working capital management.
• Product Diversification: Plans to introduce new robot models (cleaning robots, luggage delivery robots) to broaden applications and customer base. Contributions from new products expected to be incremental and dependent on market acceptance.
• New Initiatives: Exploring power bank charging stations as additional business opportunities to support long-term sustainability. Financial impact to be assessed as these initiatives progress.

Outlook

• Expansion: Mid-2026 opening of new karaoke outlets, rollout of Greenbox Cube concept, and continued diversification in robotics and supply chain business.
• Risks: Outlook for the next 12 months remains uncertain, influenced by global trade dynamics, macroeconomic conditions, and potential domestic policy changes. The Group will monitor these closely and adapt strategies as needed.

Potentially Price-Sensitive Information

• Closure of NU Empire Mall outlet may impact future earnings.
• Significant increase in marketing spend could drive future revenue if successful, but also increases risk if ROI is not realised.
• Drawdown of new financial facility increases liquidity but also leverage risk.
• Losses for the period may affect investor sentiment and share price.
• Planned expansion and diversification into new concepts and products may present growth opportunities but also execution risks.
• Internal reorganisation of RedPay business and launch of Greenbox Cube concept are strategic moves that could impact future profitability.

Conclusion

9R Limited continues its push towards expansion and diversification in both lifestyle retail and supply chain segments. While revenues increased modestly and cash balances improved, elevated expenses and outlet closure resulted in quarterly and year-to-date losses. The Group’s initiatives around new concepts, portfolio optimisation, and product diversification could offer upside if executed well and market conditions improve. Investors should monitor progress closely, especially regarding new outlet launches, Greenbox Cube rollout, and recovery in supply chain management. The uncertain macroeconomic environment and internal changes may impact future performance and share price volatility.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with professional advisors before making any investment decisions. The information contained herein is based on the latest Company announcement as of 12 February 2026 and may be subject to change.

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