CEO's Business Review

CEO'S MESSAGE

Dear Valued Shareholders,

Regretfully, FY2024 had not been a good year for the Group.

The Group's Hong Kong property project investments used to be the crown jewel of the Group's property investment portfolio, having netted a cash profit of approximately US$25.2 million previously from investment capital of US$17.5 million with receipt of total proceeds of US$42.7 million for first three Hong Kong property projects. However, with Hong Kong facing several challenges since 2019, exacerbated by the high-interest rate environment, the completed 4th to 8th projects' sale is exceptionally slow even when substantial discounts are given. As a result, it became clear that the Group is unlikely to recover all capital should the consortiums which the Group invests in were to sell the projects in the current market to meet the consortiums' debt obligations. As a result, the Group has booked a fair valuation loss of US$31.0 million for its Hong Kong property project investments. The Group does not have any contingent liabilities (including guarantees) nor capital commitment relating to the Hong Kong property projects.

Shipping-wise, as mentioned by our Executive Chairman, Mr. Tanamoto in his FY2023's message, the Group had been looking for opportunities to dispose of the Group's older 29k DWT ships so as to prepare our financial capital to purchase newer younger vessels. Indeed in FY2024, we disposed of two of our older 29k DWT ships – M/V Victoria Harbour and M/V Uni-Challenge. As a result, total charter income reduced by 14% to US$32.5 million and profit contribution from ship owning and chartering business was US$5.1 million. However, this is a transition phase as the Group will be using the proceeds from the disposals to acquire the ships from the 18% joint investment vehicles. As these 18% owned ships are newer than our wholly-owned fleet, and we had been managing these ships since delivery, we know the reliability of these ships. Accordingly on 25 February 2025, the Group completed the purchase of 58k DWT M/V Kellett Island from 18% owned Olive Bulkship S.A. after obtaining shareholders' approval on 9 January 2025. The Group now owns 75% of M/V Kellett Island. The Group recognised a fair valuation gain of US$1.5 million from investment in Olive Bulkship S.A. in FY2024. Including the profits from all shipping sub-segments, shipping business had a net profit of US$5.8 million for FY2024.

Meanwhile in Japan, small residential development projects ALERO series continue to be the Group's key product. In 2024, 10 new projects were initiated with 16 projects ongoing as at end of 2024. At the same time, subsidiary Uni-Asia Capital (Japan) Ltd ("UACJ") has expanded its asset management business to managing 20 group homes for people with disabilities across 8 prefectures in Japan. Further, UACJ has also started its third private finance initiative project in 2024. This could pave the way for UACJ to win more tenders for such projects in the future. Japan properties' profit for FY2024 was US$0.9 million.

As a whole, excluding the above-mentioned Hong Kong property projects' valuation loss, the Group had a profit of US$2.8 million for FY2024 and is proposing a final dividend of S$0.02 per share, which together with the S$0.01 per share interim dividend paid in September 2024, represents a total dividend of S$0.03 per share for FY2024.

Indeed, our performance had not lived up to the expectations of our stakeholders who had steadfastly supported us over the years. As such in FY2024, we had boldly undertaken a business transformation initiative with the goal of achieving an internal returns target in coming years for sustainable dividend to shareholders, with target growth of such return in subsequent years.

To achieve this goal, we have implemented a goal pyramid structure with the following three focuses:

• 1) Increase our clientele base and number of transactions;
• 2) Explore new business models; and
• 3) Improve staff productivity.

We have formed sub-committees within the Group across the jurisdictions which the Group operates, with sublevel-goals for each sub-committee that eventually build up to our goal. The transformation journey is not a bed of roses, but in the history of the Group, we had successfully broken new grounds and ushered in new heights for the Group. For example, in 1997 when the Group was founded, our revenue sources were mainly from ad hoc brokerage and arrangement fee income. In 2003, we successfully undertaken our first ship investment which brought in capital gain and additional fee income in subsequent years, laying the strong foundation for the Group's eventual listing on the SGX in 2007. In 2010, the Group started ALERO development projects in Japan, and in 2022, the Group embarked on private finance initiative ("PFI") and group home projects in Japan. Such examples showed that the Group can succeed in the current business transformation initiative which I personally oversee.

We would like to express our sincere gratitude to all stakeholders who have supported the development of our Group over the years. We are at an important turning point in our Group's history, one which we believe will bring us to greater heights. I humbly request your continued support and encouragement in this journey.