Polaris Ltd.: Key Shareholder Q&A Reveal Critical Steps Toward Turnaround Ahead of 2026 AGM

Singapore, 22 April 2026 – Polaris Ltd. has released its responses to a series of substantial and relevant questions submitted by shareholders ahead of its upcoming Annual General Meeting (AGM) on 28 April 2026. The detailed disclosure provides insight into the Company’s multi-pronged strategy to reverse persistent losses, address liquidity constraints, and reposition its business for sustainable growth. Here’s a comprehensive breakdown of the key points and potentially price-sensitive issues for investors.

1. Ongoing Profitability Challenges and Steps Toward Recovery

• Loss Reduction: Polaris reported a reduced net loss, narrowing from S\$2.1 million in FY2024 to S\$1.4 million in FY2025. The company attributes this improvement to initiatives aiming to boost revenue, enhance gross profit margins, and scale back loss-making operations.
• Uncertain Return to Profitability: Despite these gains, the Board stopped short of providing a definitive timeline for a return to profitability, citing market uncertainties and execution risks. This ongoing uncertainty may weigh on investor sentiment.

2. Financial Reporting and Audit Variances

• Material Differences in FY2025 Results: The company acknowledged significant discrepancies between unaudited and audited financial statements for FY2025—an issue that could impact investor trust.
• Commitment to Improved Transparency: Management has pledged to strengthen its financial closing processes and ensure earlier discovery of audit adjustments, aiming to minimize such variances in the future.

3. Cash Position and Liquidity Measures

• Near-Zero Cash Reserves: Polaris’ liquidity remains a top concern, with cash reserves approaching zero at year-end FY2025.
• Asset Divestment: To address this, the company is divesting non-core investment properties. Proceeds are earmarked to improve working capital and reduce debt, which has already declined from S\$2.2 million to S\$0.5 million over the past year.
• Shareholder Dilution Concerns: The Board indicated it will manage any future fundraising prudently, with attention to shareholder dilution, but left open the possibility of further capital raising.

4. Revenue Strategy and Business Realignment

• Shift from Low-Margin Electronics: The company is moving away from low-margin consumer electronics, instead focusing on higher-margin segments such as pre-loved luxury goods trading.
• Regional Expansion: Polaris is already active in Indonesia, the Philippines, Thailand, and Vietnam, and is expanding into Malaysia. Further regional growth will be pursued selectively, balancing scale with profitability.

5. Diversification and New Ventures

• Expansion into Higher-Margin Businesses: Beyond electronics, the Group is actively growing its pre-loved luxury segment and exploring other higher-margin categories, supporting a more resilient business model.

6. Board Oversight and Management Accountability

• Performance Metrics: The Board regularly reviews management using operational and financial KPIs, including profitability, revenue growth, and cost control.
• Dividend Policy: No dividends have been declared due to the lack of distributable profits. Management will only consider reinstating payouts when financial conditions improve materially.

7. Cost Efficiency and Digital Transformation

• Operational Efficiency Initiatives: Polaris is implementing cost controls, optimizing its supply chain, and investing in digital and artificial intelligence solutions, especially in the pre-loved luxury business, to boost efficiency and margins.

8. Risk Management and Competitive Strategy

• Liquidity Focus for FY2026: The company is prioritizing cash flow monitoring, cost discipline, and focusing on business units with sustainable cash generation to address ongoing liquidity risks.
• Differentiation in Southeast Asia: Efforts to strengthen its regional presence alongside business model diversification are intended to build competitive advantage.

Potentially Price-Sensitive Issues for Shareholders

• The absence of a clear timeline for profitability and the company’s near-zero cash position are key risks that could influence market valuation.
• Planned asset divestments and expansion into higher-margin businesses may materially alter Polaris’ financial outlook if executed successfully.
• Any future fundraising activities, if not managed to limit dilution, could impact long-term shareholder value.
• Ongoing audit variances and the company’s commitment to greater transparency will remain areas of close investor scrutiny.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult their financial advisors and refer to official company filings before making investment decisions. The content is based on management responses and may not reflect all risks or future developments for Polaris Ltd.

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