Incredible Holdings Ltd.: SGX Queries Reveal Critical Financial and Strategic Updates

Summary of Key Points from SGX Queries and Company Responses

• Ongoing Strategic Review: Incredible Holdings is actively reviewing and refining its business plans, focusing on improving operating performance, exploring strategic transactions, and widening its customer base.
• Potential Corporate Actions Considered: The Board is evaluating various strategic initiatives such as business partnerships, joint ventures, capital injections from strategic investors, and potentially a reverse takeover (RTO), should suitable opportunities arise.
• Cost Management and Operational Streamlining: The Group is undertaking significant cost management measures, including rationalization of operating expenses, tighter administrative controls, and optimization of manpower resources. Non-essential expenditures are being reviewed for further reductions, and operational processes are being consolidated and improved.
• Going Concern Status in Doubt: While the Board believes the Group can continue as a going concern based on ongoing efforts and potential support, the Sponsor is unable to confirm this due to the Group’s negative working capital, overdue trade receivables, inability to pay auditors, and lack of firm financing plans.
• Severe Receivables Risk: As of 31 December 2025, trade receivables amount to S\$1.45 million, with over S\$1.44 million outstanding for more than 365 days—representing a staggering 9,687% of 1H2026 revenue. These balances are legacy issues, and no enforcement action or firm recovery plan is in place, though the Board maintains they are still recoverable and may consider legal action if necessary.
• Outstanding Loan Payables: The Group has S\$2.4 million in outstanding loan payables at a high interest rate of 12% per annum. However, no finance costs were recognized for 1H2026 as interest accrual was suspended with lender consent from 1 July 2025 onwards.
• Uncertain Strategic Transaction (MOU): The Company is in preliminary discussions with a potential investor for a strategic transaction under a non-binding MOU. No firm terms have been agreed and negotiations are ongoing. There is no certainty this will result in a transaction.
• Audit Delays: The audit for the Group was last carried out for the year ended 31 December 2022, as the Company has not been able to pay its auditors.

Details and Potential Share Price Impact

1. Business and Strategic Direction

The Board is actively reviewing and refining the Group’s business strategies to bolster its operating performance and identify new business opportunities. Potential strategic moves under consideration include:

• Corporate partnerships and joint ventures
• Capital injections from strategic investors
• Corporate restructuring, such as a reverse takeover (RTO)

These initiatives, if successful, could materially strengthen the Group’s financial position and open new revenue streams. However, these plans remain at an exploratory stage, and there is no assurance that any transactions will materialize.

In parallel, the Group continues to pursue prudent cost management, streamline operations, and optimize resource allocation in an effort to improve efficiency and reduce cash outflows.

2. Going Concern: Serious Doubts Raised

While the Board maintains the Group’s financial statements are prepared on a going concern basis, citing ongoing cost management, discussions for new investment, and potential strategic transactions, the Sponsor (Novus Corporate Finance Pte. Ltd.) has expressed serious reservations. The Sponsor specifically notes:

• The Group’s negative working capital of approximately S\$4.96 million
• Negative operating cash flow
• Significant overdue trade receivables (bulk outstanding for over a year)
• Lack of enforcement or firm recovery plans for receivables
• Inability to pay auditors—no audit after FY2022
• No evidence that the Group can obtain financing when required

These issues represent material uncertainties that may cast significant doubt on the Company’s ability to continue as a going concern. If the Group cannot secure new financing or execute strategic transactions, further financial distress or insolvency risks may arise.

3. Trade Receivables: Collection Risk

The Group’s trade receivables as of 31 December 2025 are extremely high relative to revenue, with S\$1.44 million outstanding for more than a year. These are primarily legacy balances from prior business activities. The Company states it is pursuing recovery through negotiations but has not taken enforcement action. If these receivables prove uncollectible, it could significantly impact the Group’s financial position and liquidity.

4. Loan Payables and Interest Costs

Outstanding loan payables total S\$2.4 million with a high interest rate of 12% per annum. Notably, no finance cost was recorded for 1H2026 as interest accrual has been suspended following lender consent since 1 July 2025. This provides some temporary relief, but the debt remains due.

5. Potential Strategic Transaction (MOU) Remains Uncertain

The Company has entered into a non-binding MOU with a potential investor for a strategic transaction. Discussions are at a preliminary stage, with no certainty of completion or outcome. The Board will provide updates on any material developments.

6. Audit Status

The Company has not been able to pay its auditors, and the last audit was for the year ended 31 December 2022. This lack of audited financials increases risk for investors and may have regulatory implications.

What Shareholders Should Know

• Material Uncertainties: The Sponsor cannot confirm the Group’s ability to continue as a going concern due to severe financial and operational challenges.
• Receivables Collection Risk: There is a high risk that overdue receivables may not be recovered.
• Audit and Disclosure Risk: The lack of recent audited financial statements is a significant governance concern.
• Strategic Transaction Uncertainty: Ongoing MOU discussions could lead to a material transaction, but there is no assurance of success.
• Potential for Share Price Volatility: The combination of financial distress, potential transactions, and disclosure risks may result in significant share price movements—both up or down—depending on future developments.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence or consult with a professional advisor before making any investment decisions. The information herein is based on company disclosures as of 12 March 2026 and may be subject to change. The Singapore Exchange Securities Trading Limited assumes no responsibility for the contents of this article.

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