EX-99.1 2 ea025103301ex99-1_rectitude.htm PRESS RELEASE DATED JULY 31, 2025, TITLED "RECTITUDE HOLDINGS LTD ANNOUNCES FISCAL YEAR ENDED MARCH 31, 2025 FULL YEAR FINANCIAL RESULTS"

Exhibit 99.1

 

 

Rectitude Holdings Ltd Announces Fiscal Year ended March 31, 2025 Full Year Financial Results

 

SINGAPORE, July 31, 2025 – Rectitude Holdings Ltd (the “Company” or “Rectitude”), a Singapore-based provider of safety equipment and related industrial-grade hardware products, today announced its financial results for the full year ended March 31, 2025.

 

Fiscal Year ended March 31, 2025 Full Year Highlights (amounts in US$ unless otherwise noted):

 

·Revenues for the fiscal year ended March 31, 2025, in Singapore Dollars, increased 5.91%.

 

·Gross profit margin decreased to 33.65% of revenues, down 192 basis points.

 

·Selling and marketing expenses in Singapore Dollars, increased S$1.37 million.

 

·Research and development expenses in Singapore Dollars increased S$0.08 million.

 

·General and administrative expenses in Singapore Dollars, increased S$0.50 million.

 

·Net income was $1.66 million, or $0.12 per diluted share, for the fiscal ended March 31, 2025. In Singapore Dollars, net income was S$2.24 million, or S$0.16 per diluted share, for the fiscal ended March 31, 2025, compared to net income of S$3.36 million, or S$0.27 per diluted share, for the fiscal year ended March 31, 2024.

 

·Adjusted EBITDA for the fiscal year ended March 31, 2025, was $3.62 million. In Singapore Dollars, Adjusted EBITDA decreased to S$4.87, from S$5.88 million in the prior year period.

 

“Fiscal 2025 was a challenging year from an earnings perspective, but our focus on growing Rectitude’s business for the long term will provide enhanced prospects for returns on the investments we made this year in new product launches in potable power as well as new branches to enhance distribution and customer service,” said Mr. Jian Zhang, Chairman, Chief Executive Officer, and Executive Director at Rectitude. “Our new All-in-one Intelligent Micro-grid System (AIMS) battery storage system provides an innovative, clean energy solution for a variety of locations presenting a solution for consistent energy in remote job sites while also benefiting the environment with lower emissions. We will continue to invest in innovative solutions that provide enhanced solutions to our customers and drive enhanced value to our shareholders.”

 

Revenues

 

For the fiscal year ended March 31, 2025, total revenues were $32.57 million. In Singapore Dollars, revenues were S$43.80 million and S$41.35 million for the respective fiscal years ended March 31, 2025 and 2024. The increase was primarily driven by increased customer demand for safety equipment with higher construction activity within the Company’s markets.

 

Cost of Revenues

 

For the fiscal year ended March 31, 2025, cost of revenues was $21.61 million. In Singapore Dollars, for the fiscal years ended March 31, 2025 and 2024, cost of revenues were S$29.06 million and S$26.65 million, respectively. The increase in cost of revenue was driven by the increase of revenue during the year, as well as a mixed shift toward higher-cost products and the commercial launch of the AIMS system.

 

Gross profit

 

Gross profit for the fiscal year ended March 31, 2025 was $10.94 million, representing 33.65% of operating revenues. In Singapore Dollars, gross profit for the fiscal years ended March 31, 2025 and 2024 was S$14.74 million and $14.71 million, representing 33.65% and 35.57% of operating revenues, respectively. The slight increase in gross profit was mainly due to increased sales volume, while the decrease in gross profit margin was due to an unfavorable shift in product mix, freight costs, and the commercial launch of AIMS.

 

 

 

 

 

 

Selling and marketing expenses

 

Selling and marketing expenses primarily included expenses related to advertising and marketing activities, and costs associated with our retail branches, which included labor costs, sales commissions and operating lease expenses. For the fiscal year ended March 31, 2025, selling and marketing expenses were $3.57 million. In Singapore Dollars, for the fiscal years ended March 31, 2025 and 2024, selling and marketing expenses were S$4.80 million and S$3.42 million respectively. This increase was primarily due to rising costs associated with expanding retail branches including an increase in the number of branch employees, which is expected to continue in the next year. 

 

Research and development expenses

 

Research and development expenses primarily consisted of compensation costs to engineering, design and product development employees and software expenses. For the fiscal year ended March 31, 2025, research and development expenses were approximately $117,000. In Singapore Dollars, for the fiscal years ended March 31, 2025 and 2024, research and development expenses were approximately S$157,000 and S$76,000 respectively. The increase was primarily due to costs associated with the development and launch of the AIMS portable power system as well as continued investment in the integration of virtual reality technology into our safety training systems.

 

General and administrative expenses

 

General and administrative expenses consisted primarily of motor vehicle running expenses, transportation, property maintenance and property tax, allowance for expected credit losses and general administrative expenses such as staff costs, depreciation, legal and professional fees and other miscellaneous administrative expenses. For the fiscal year ended March 31, 2025, general and administrative expenses were $5.61 million. In Singapore Dollars, for the fiscal years ended March 31, 2025 and 2024, general and administrative expenses were S$7.55 million and S$7.04 million respectively. The increase was mainly due to mainly due to an increase in provision for allowance for expected credit losses to third parties as well as other increased administrative expenses to support business growth.

 

Net Income

 

As a result of the factors described above, net income for the fiscal year ended March 31, 2025 was approximately $1.66 million. In Singapore Dollars, net income for the fiscal years ended March 31, 2025 was approximately S$2.24 million, compared to net income of S$3.36 million, for the fiscal year ended March 31, 2024.

 

Earnings per Share - Basic and Diluted

 

Earnings per basic and diluted share for the fiscal year ended March 31, 2025 was $0.12. In Singapore Dollars, earnings per basic and diluted share for the fiscal year ended March 31, 2025 was S$0.16, compared to S$0.27 for the same period of 2024.

 

Adjusted EBITDA

 

The Company also views earnings before interest, taxes, depreciation and amortization, subject to specific adjustments (Adjusted EBITDA) as an important measure of the results of operations. For the fiscal year ended March 31, 2025, Adjusted EBITDA was $3.39 million. In Singapore dollars, Adjusted EBITDA decreased to S$4. million, from S$5.88 million during the same period. The decrease was primarily driven by compliance costs and professional fees incurred related to the Company’s listing on NASDAQ.

 

The Company believes these non-GAAP adjustments provide meaningful information to assist investors in understanding financial results and assessing prospects for future performance as they provide a better baseline for analyzing the ongoing performance of its business by excluding items that may not be indicative of core operating result.

 

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Outlook

 

Contemplating the Company’s Outlook for Fiscal Year 2026, Mr. Zhang commented, “We look forward to another exceptional year of growth and strong operating performance for Rectitude. In the last 12 months, we have delivered on our clearly articulated strategy, extending beyond our core business to capture value across the safety equipment supply chain. We have successfully launched our AIMS system to support our customers’ power needs in remote construction sites, which allow them to transition to a low-carbon and environmentally sustainable methods.

 

”We have the financial strength to provide a central business platform for first-generation owners of traditional businesses, who may be retiring without succession plans, to collaborate and use our business networks, resources and proprietary brands to expand their own businesses. This renders these business partners competitive in the evolving market landscape, while bringing synergy and more growth for Rectitude within the Southeast Asian markets.

 

“Most importantly, we maintain our focus on the core principles that have guided our Company for more than 26 years as we drive our performance to new heights,” Mr. Zhang concluded..”

 

About Rectitude Holdings Ltd

 

Founded in 1997 in Singapore, Rectitude is principally involved in the provision of safety equipment, encompassing essential items such as personal protective clothing, gloves, safety footwear, personal fall arrest systems, portable fire extinguishers and traffic products. The Company also offers auxiliary products such as industrial hardware tools and electrical hardware required for construction sites. Rectitude’s products and solutions are marketed to a wide array of distributor networks and end markets, both in Singapore and increasingly throughout the Southeast Asian region, including Brunei, Cambodia, Malaysia, Indonesia, and Vietnam.

 

For more information, please visit the Company’s website: https://ir.rectitude.com.sg

 

Forward-Looking Statements

 

Certain statements in this announcement are forward-looking statements, including, but not limited to, the Company's proposed Offering. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs, including the expectation that the Offering will be successfully completed. Investors can identify these forward-looking statements by words or phrases such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the U.S. Securities and Exchange Commission.

 

For investor and media inquiries, please contact:

 

Rectitude

Investor Relations

Email: ir@rectitude.com.sg

 

Jackson Lin

Lambert Global

Phone: +1 (646) 717-4593

Email: jlin@lambert.com

 

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RECTITUDE HOLDINGS LTD

CONSOLIDATED BALANCE SHEETS

 

   As of March 31, 
   2024   2025   2025 
   S$   S$   US$ 
Assets            
Current assets            
Cash and cash equivalents   3,468,594    6,646,788    4,943,688 
Accounts receivable, net   11,508,064    11,547,018    8,588,336 
Inventories, net   6,249,895    7,578,048    5,636,332 
Other receivables   497,309    1,445,462    1,075,093 
Advances to related parties   358,019    236,811    176,133 
Deferred initial public offering (“IPO”) costs   1,560,933         
Total current assets   23,642,814    27,454,127    20,419,582 
                
Non-current assets               
Financial instrument   231,293    236,771    176,103 
Loan receivables       5,180,380    3,853,016 
Property, plant and equipment, net   5,811,883    6,399,557    4,759,804 
Right-of-use assets – operating leases   4,522,524    4,420,627    3,287,934 
Total non-current assets   10,565,700    16,237,335    12,076,857 
Total assets   34,208,514    43,691,462    32,496,439 
                
Liabilities and shareholders’ equity               
Current liabilities               
Bank loans, current portion   598,848    400,016    297,520 
Finance lease liabilities, current portion   168,192    199,320    148,248 
Accounts payable   6,441,094    7,571,503    5,631,464 
Operating lease liabilities, current portion   1,240,129    1,298,058    965,458 
Other payables   3,058,781    2,208,350    1,642,507 
Provision for income taxes   1,177,119    454,005    337,676 
Total current liabilities   12,684,163    12,131,252    9,022,873 
                
Non-current liabilities:               
Bank loans, non-current portion   3,070,967    2,834,183    2,107,983 
Finance lease liabilities, non-current portion   379,481    593,510    441,435 
Operating lease liabilities, non-current portion   3,487,144    3,363,357    2,501,567 
Deferred tax liabilities   1,446    1,446    1,075 
Total non-current liabilities   6,939,038    6,792,496    5,052,060 
Total liabilities   19,623,201    18,923,748    14,074,933 
Commitments and contingencies            
Shareholders’ equity               
Ordinary shares, US$0.0001 par value, authorized 500,000,000 shares, issued 12,500,000 and 14,500,000 shares outstanding as of March 31, 2024 and March 31, 2025, respectively*   1,707    1,978    1,471 
Additional paid-in capital   3,377,293    11,382,600    8,466,047 
Retained earnings   11,206,313    13,444,178    9,999,389 
Accumulated other comprehensive losses       (61,042)   (45,401)
Total shareholders’ equity   14,585,313    24,767,714    18,421,506 
Total liabilities and shareholders’ equity   34,208,514    43,691,462    32,496,439 

 

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RECTITUDE HOLDINGS LTD
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

 

   For the Years ended March 31, 
   2023   2024   2025   2025 
   S$   S$   S$   US$ 
Revenue   37,643,696    41,353,555    43,796,144    32,574,298 
Cost of revenue   (25,503,026)   (26,645,034)   (29,057,985)   (21,612,484)
Gross profit   12,140,670    14,708,521    14,738,159    10,961,814 
                     
Operating expenses                    
Selling and marketing expenses   (2,104,824)   (3,423,531)   (4,798,465)   (3,568,959)
Research and development expenses   (83,684)   (76,386)   (156,947)   (116,733)
General and administrative expenses   (5,169,398)   (7,044,966)   (7,545,515)   (5,612,135)
Total operating expenses   (7,357,906)   (10,544,883)   (12,500,927)   (9,297,827)
                     
Income from operations   4,782,764    4,163,638    2,237,232    1,663,987 
                     
Other income/(expense)                    
Other income, net   156,878    198,440    421,223    313,293 
Interest expense   (142,496)   (214,462)   (200,638)   (149,229)
Total other income/(expense), net   14,382    (16,022)   220,585    164,064 
                     
Income before income tax   4,797,146    4,147,616    2,457,817    1,828,051 
                     
Income tax expense   (870,325)   (792,207)   (219,952)   (163,594)
Net income   3,926,821    3,355,409    2,237,865    1,664,457 
                     
Other comprehensive loss                    
Foreign currency translation adjustments           (61,042)   (45,401)
Comprehensive income   3,926,821    3,355,409    2,176,823    1,619,056 
                     
Weighted average number of ordinary shares                    
Basic and diluted*   12,500,000    12,500,000    14,056,164    14,056,164 
Earnings per share                    
Basic and diluted   0.31    0.27    0.16    0.12 

 

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RECTITUDE HOLDINGS LTD
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

 

   Ordinary shares   Additional       Accumulated
other
   Total 
   Number of       paid-in   Retained   comprehensive   shareholders’ 
   shares   Amount   capital   earnings   income   equity 
       S$   S$   S$   S$   S$ 
Balance as at April 1, 2022*   12,500,000    1,707    3,377,293    6,074,083        9,453,083 
Net income               3,926,821        3,926,821 
Dividends distribution               (2,150,000)       (2,150,000)
Balance as at March 31, 2023   12,500,000    1,707    3,377,293    7,850,904        11,229,904 
Net income               3,355,409        3,355,409 
Balance as at March 31, 2024   12,500,000    1,707    3,377,293    11,206,313        14,585,313 
Issuance of ordinary shares   2,000,000    271    8,005,307            8,005,578 
Net income               2,237,865        2,237,865 
Foreign currency translation adjustments                   (61,042)   (61,042)
Balance as at March 31, 2025   14,500,000    1,978    11,382,600    13,444,178    (61,042)   24,767,714 
Balance as at March 31, 2025 (US$)        1,471    8,466,047    9,999,389    (45,401)   18,421,506 

 

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RECTITUDE HOLDINGS LTD
CONSOLIDATED STATEMENTS OF CASH FLOWS

 

   Years ended March 31, 
   2023   2024   2025   2025 
   S$   S$   S$   US$ 
Cash flows from operating activities                
Net income   3,926,821    3,355,409    2,237,865    1,664,457 
                     
Adjustments to reconcile net income to net cash provided by operating activities                    
Depreciation of property, plant and equipment   540,105    536,013    609,711    453,485 
Amortization of right-of-use assets   667,660    986,420    1,291,797    960,801 
Operating lease modifications   (53,991)   (7,025)   (30,798)   (22,907)
Property, plant and equipment write-off   3,534             
Bad debts write-off   2,563             
Gain on disposal of property, plant and equipment   (386)   (5,000)   (957)   (712)
Allowance for inventories write-down   256,919    56,415         
Provision for allowance for expected credit losses – third parties   214,169    68,436    358,426    266,587 
Fair value change in financial instrument   (1,542)   (9,502)   (5,478)   (4,074)
                     
Changes in operating assets and liabilities                    
Accounts receivable, net   (1,745,800)   (899,646)   (397,380)   (295,560)
Other receivables   (53,357)   35,705    (948,153)   (705,209)
Advances to related parties   32,290        121,208    90,151 
Inventories   (418,177)   (524,506)   (1,328,153)   (987,842)
Accounts payable   594,653    (229,789)   1,130,409    840,765 
Other payables   (234,690)   1,602,687    (850,431)   (632,524)
Finance lease liabilities – interest portion of lease payment   (41,225)   (80,461)   (39,858)   (29,645)
Operating lease liabilities   (636,239)   (816,855)   (1,224,960)   (911,090)
Income tax payable   553,929    131,736    (723,114)   (537,829)
Net cash provided by operating activities   3,607,236    4,200,037    200,134    148,854 
                     
Cash flows from investing activities:                    
Purchases of property, plant and equipment   (13,551)   (235,355)   (615,809)   (458,021)
Proceeds from disposal of property, plant and equipment   386    5,000    1,000    744 
Disbursement of loan to third parties           (7,680,380)   (5,712,443)
Repayment of loan from third parties           2,500,000    1,859,427 
Net cash used in investing activities   (13,165)   (230,355)   (5,795,189)   (4,310,293)
                     
Cash flows from financing activities:                    
Proceeds from common shares issued for cash           9,505,469    7,069,892 
Advances from / (Repayment to) shareholders, net   161,127    (186,950)        
Dividends paid   (1,150,000)   (2,000,000)        
Deferred IPO expenses       (543,076)        
Repayments of bank loans   (1,140,400)   (126,628)   (566,835)   (421,595)
Payments for finance lease liabilities – principal portion   (173,950)   (76,991)   (165,385)   (123,009)
Net cash (used in)/ provided by financing activities   (2,303,223)   (2,933,645)   8,773,249    6,525,288 
Net changes in cash and cash equivalents   1,290,848    1,036,037    3,178,194    2,363,849 
Cash and cash equivalents at beginning of the year   1,141,709    2,432,557    3,468,594    2,579,839 
Cash and cash equivalents at end of the year   2,432,557    3,468,594    6,646,788    4,943,688 
                     
Supplement disclosures of cash flow information                    
Income taxes paid   (316,396)   (660,471)   (943,066)   (701,425)
Interest paid   (142,496)   (214,462)   (200,638)   (149,229)

 

 

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