Mary Chia Holdings Limited: Financial Review for the Nine Months Ended 31 December 2025

Mary Chia Holdings Limited released its unaudited condensed interim financial statements for the nine months ended 31 December 2025, following a disclaimer of opinion issued by its independent auditor. This review provides a structured analysis of the key financial metrics, performance trends, and business outlook, suitable for investors and financial professionals.

Key Financial Metrics & Performance Comparison

Historical Performance Trends

The Group’s revenue fell sharply year-on-year, primarily due to a substantial drop in direct selling segment sales. Net profit also declined significantly, with only \$28,000 recorded for the nine months ended December 2025, versus \$1.48 million in the prior year. The company’s net asset value remains negative, though the deficit improved somewhat from the prior year.

Errors, Inconsistencies, and Audit Issues

The company’s financials are unaudited and follow a disclaimer of opinion from Foo Kon Tan LLP, the independent auditor. The audit issues largely stem from difficulties in validating opening balances due to significant personnel turnover in the finance team and insufficient knowledge transfer. Management has taken steps to rebuild the finance team and improve documentation but recognizes ongoing uncertainty regarding historical financial information and asset valuations.

Exceptional Items and Financial Support

• Impairment losses on joint ventures were recognized in the prior year but not in the current period.
• Government grants and rental rebates contributed to other operating income.
• Controlling shareholder Suki Sushi Pte. Ltd. has pledged ongoing financial support for at least 12 months, underpinning the Group’s going concern assumption.

Corporate Actions and Business Initiatives

• No dividend declared for the current or prior period, reflecting the company’s need to conserve cash.
• Share capital increased during the year from a debt capitalization exercise (issuance of conversion shares), diluting prior holdings.
• The Group terminated its joint venture with Hong Choi International Limited, resulting in MCH Hong Kong becoming a wholly owned subsidiary of MCH HK for a nominal consideration.
• No IPO or fundraising proceeds outstanding.

Strategic and Operational Developments

• Launch of new anti-ageing skincare products (JUVE, Prepe, Bright+ Illuminating Power Concentrate Fibre Silk Mask) in Singapore, Taiwan, and Malaysia.
• Direct selling operations in Taiwan began generating sales from May 2024.
• Ongoing focus on digital transformation, staff retention incentives, and cost optimization.
• Potential for equity fundraising or shareholder loans is under exploration.

Business Risks & Outlook

• Negative working capital and equity remain concerns.
• Revenue has sharply declined, mainly due to weakness in direct selling.
• The competitive landscape is intensifying, with greater emphasis on e-commerce and digital sales channels.
• The company is expanding in Southeast Asia via franchise partnerships and focusing on product innovation, especially in clean beauty and sustainability.
• Administrative and marketing expenses are expected to rise as the business scales.
• Protection of intellectual property is a focus amid international expansion.

Chairman’s Statement

No explicit Chairman’s Statement was included in the report. However, the CEO’s closing remarks reflect a cautious yet proactive tone:

“BY ORDER OF THE BOARD
Ho Yow Ping (He YouPing)
Chief Executive Officer
12 February 2026″

Conclusion & Investment Recommendations

Financial Performance: The Group’s latest financials indicate a weak performance, with revenue and profits falling sharply year-on-year and quarter-on-quarter. Negative equity and working capital position pose substantial risks. The ongoing audit issues and disclaimer of opinion further cloud the reliability of historical data.

Outlook: The Group is undertaking business transformation initiatives, expanding its digital and direct selling channels, and launching new products. Financial support from the controlling shareholder offers some stability, but the Group’s turnaround depends on successful execution of these strategies and improvement in sales and profitability.

• If you are currently holding this stock: Consider maintaining a cautious stance. Monitor management’s ability to restore revenue growth, resolve audit issues, and strengthen the balance sheet. If the turnaround strategy shows signs of success and cash flow stabilizes, you may continue to hold; however, reassess exposure if performance remains weak or audit issues persist.
• If you are not currently holding this stock: Exercise patience. Wait for evidence of sustained improvement in revenue and profitability, resolution of audit and financial reporting concerns, and successful execution of expansion and digital transformation strategies before considering an entry.

Disclaimer: This analysis is based strictly on the information contained in the company’s official financial report. It does not constitute investment advice. Investors should conduct further due diligence and consult with a financial adviser before making any investment decisions.

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