Business Context and Reporting Period
Ten-League International Holdings Ltd (TLIH) is a Cayman Islands-incorporated, Singapore-based provider of turnkey project solutions for the port, construction, civil engineering, and underground foundation industries. The company operates through three primary segments: sales of heavy equipment and parts, equipment rental, and engineering consultancy services. The reporting period covers the fiscal year ended December 31, 2025. The company is classified as an Emerging Growth Company (EGC) and a Foreign Private Issuer.
Key Financial Metrics (Year Ended Dec 31, 2025)
| Metric | 2025 (S$'000) | 2025 (US$'000) | 2024 (S$'000) | 2023 (S$'000) |
|---|---|---|---|---|
| Net Revenue | 76,178 | 59,241 | 58,496 | 72,782 |
| Gross Profit | 18,616 | 14,477 | 10,658 | 15,782 |
| Gross Margin | 24.4% | 24.4% | 18.2% | 21.7% |
| Net Income | 5,586 | 4,345 | 1,884 | 7,080 |
| Operating Cash Flow | 26,229 | 20,398 | 5,009 | (5,820) |
| Cash & Equivalents (End of Period) | 10,684 | 8,309 | 686 | 2,340 |
| Total Debt (Bank Borrowings) | 16,953 | 13,184 | 23,333 | 23,333 |
| Accounts Receivable, Net | 14,410 | 11,206 | 16,257 | 19,310 |
Material Changes vs. Prior Period
- Revenue Growth: Net revenue increased by 30.2% (S$17.7 million) compared to 2024, driven primarily by a 33.8% increase in heavy equipment sales (S$61.2 million) due to new infrastructure projects (e.g., Changi Airport Terminal 5, Marina Bay Sands expansion). Rental income also rose 21.1% to S$12.8 million.
- Profitability Surge: Net income jumped 196.5% to S$5.6 million from S$1.9 million in 2024. Gross margin expanded by 6.2 percentage points to 24.4%, attributed to better product mix and higher demand.
- Expense Increases: General and administrative expenses rose 47.6% to S$10.7 million, largely due to increased provisions for doubtful debts (S$1.4 million), higher staff costs, and audit/consultancy fees.
- Liquidity Improvement: Cash and cash equivalents surged to S$10.7 million from S$0.7 million in 2024, fueled by strong operating cash flow (S$26.2 million) and IPO proceeds.
- Debt Reduction: Bank borrowings decreased to S$17.0 million from S$23.3 million, as the company utilized IPO proceeds to repay borrowings.
Guidance, Outlook, Risks, and Unusual Items
Outlook and Strategy
Management anticipates continued growth driven by Singapore's urban development projects. Strategic focus remains on the electrification of the heavy equipment fleet (supplying electric reach stackers and prime movers) and expanding Engineering, Procurement, Construction, and Commissioning (EPCC) services for charging infrastructure.
Material Risks
- Supplier Concentration: The company relies heavily on SANY for equipment, which accounted for 64.5% of cost of revenue in 2025. Loss of this distributorship would materially impact operations.
- Customer Concentration: The top five customers accounted for 45.9% of revenue in 2025, with the single largest customer representing 15.2%.
- Nasdaq Listing Status: The company received a Staff Determination from Nasdaq regarding non-compliance with the Minimum Bid Price Rule ($1.00). A hearing was held in April 2026, and the decision is pending. Failure to regain compliance could result in delisting.
- Share Consolidation: Shareholders approved a potential share consolidation (2-for-1 to 20-for-1) to address listing requirements, to be implemented at the Board's discretion within two years.
- Legal Contingency: A crane overturning incident in April 2024 resulted in a composition fine and a pending claim for damages estimated at S$1.72 million. The insurer has not repudiated liability.
Investor Verification Checklist
- Nasdaq Compliance: Verify the outcome of the Nasdaq Hearings Panel decision regarding the Minimum Bid Price Rule and the potential timeline for share consolidation.
- SANY Relationship: Confirm the status of the dealership agreement renewal with SANY, given the high concentration of cost of revenue (64.5%).
- Accounts Receivable Quality: Review the S$1.4 million provision for doubtful debts in 2025 and the aging of receivables (S$4.7 million owed >120 days) to assess credit risk.
- Legal Exposure: Monitor the status of the S$1.72 million claim arising from the April 2024 crane accident.
- Capital Allocation: Track the utilization of the remaining ~US$3.6 million in IPO net proceeds.