SDAI Limited: FY2025 Audited Financials – Auditor Issues Disclaimer of Opinion Amid Going Concern Uncertainties

SDAI Limited has released its audited financial statements for the year ended 31 December 2025, accompanied by a disclaimer of opinion from its independent auditor, Foo Kon Tan LLP. The report raises significant concerns about the company’s financial health and future prospects. Below is a detailed analysis of the key findings, metrics, and implications for investors.

Key Financial Metrics for FY2025

Going Concern and Auditor’s Disclaimer

The independent auditor has not expressed an opinion on SDAI Limited’s financial statements for FY2025, citing the inability to obtain sufficient appropriate audit evidence. The audit report highlights multiple material uncertainties casting significant doubt on the Group’s and Company’s ability to continue as a going concern. These include:

• Current liabilities far exceeding current assets (by \$10.5 million at the Group level).
• Continued deficit in equity for both Group and Company.
• Ongoing net losses and negative cash flows from operations.
• Uncertainty around obtaining new loan financing and the success of corporate turnaround/restructuring plans.

Management maintains its preparation of the accounts on a going concern basis, assuming successful financing and turnaround. However, the auditor was unable to obtain evidence supporting these assumptions.

Historical Performance and Trends

• Net losses have deepened year-over-year, nearly doubling in FY2025 compared to FY2024.
• Cash used in operations, while still negative, has improved versus the previous year.
• Balance sheet deterioration is stark: the deficit between current assets and liabilities widened dramatically, and equity deficits increased by over 30% year-over-year.

Corporate Actions and Strategic Risks

• Trading Suspension: The company’s shares have been suspended from trading since 12 July 2021.
• Turnaround Efforts: Management is relying on new loan financing and the sale of anti-ageing biotechnology healthcare products in China and Singapore as part of its restructuring plans.
• No Dividend Announced: There is no mention of dividend distributions, reflecting the company’s financial stress.

Chairperson’s Statement

(The report does not contain a full Chairman’s Statement; only a standard board communication signed by the Executive Chairperson, Mdm Hao Dongting.)

Outlook and Potential Risks

The company’s ability to continue as a going concern is highly contingent on factors outside its control, including successful fundraising and a turnaround in its operating business. The auditor’s disclaimer underlines the significant risk of insolvency or further distress if these measures fail.

Conclusion and Recommendations

Overall Financial Performance and Outlook: The financial performance and outlook for SDAI Limited is weak. Continued deep losses, growing equity deficits, and a lack of auditor assurance paint a high-risk picture for existing and potential investors. The trading suspension further compounds liquidity and exit risks.

Investor Recommendations

• If you are currently holding SDAI Limited shares: Given the trading suspension, auditor’s disclaimer, and severe financial distress, investors should carefully monitor all company announcements and seek professional advice. Consider the high risk of capital loss and illiquidity.
• If you are not currently invested: It is advisable to avoid initiating a position in SDAI Limited at this time, due to the extreme financial and operational uncertainties highlighted in the company’s own disclosures and the auditor’s report.

Disclaimer: This analysis is based solely on the information provided in SDAI Limited’s audited financial statements for FY2025 and the accompanying auditor’s report. It does not constitute investment advice. Investors should conduct their own due diligence and consult with professional advisers before making any investment decisions.

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