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SGX 2023 annual result announcement

Press Release

• • Revenue rose 9.2% y-o-y to S$44.1 million due to contributions from its e-waste recycling and healthcare businesses
  • The Group continued to generate a positive operating cashflow
  • The Group proposed a final dividend of 0.1 S cents per share, representing a payout ratio of 66.7% of FY2022 net profit attributable to shareholders
  • Its processing capacity expansion project is expected to be completed in 2H2023. This ensures sufficient growth headroom for any impending increase in processing volumeSINGAPORE, February 22, 2023 – Enviro-Hub Holdings Ltd (SGX: L23) (“Enviro-Hub” or the “Company”, and together with its subsidiaries, the “Group”) is pleased to announce its financial results for the full year ended 31 December 2022 (“FY2022”).

 
FY2022 Performance

(S$ million)	FY2022	FY2021	Change (%)
Revenue	44.1	40.4	9.2
Gross Profit	5.9	9.2	-36.0
Gross Profit Margin	13.4%	22.8%
Net Profit	6.2	5.6	10.5
Net Profit Attributable to Owners of the Company	2.2	2.7	-17.1
Diluted Earnings per share (S cents)	0.15	0.21
Dividend per share (S cents)	0.1	N.A

Revenue grew 9% y-o-y, reaching S$44.1 million in FY2022, primarily due to growth in the Group’s e-waste recycling business and contributions from the healthcare segment following the completion of the acquisition of Pastel Glove Sdn. Bhd. (“PGSB”) in October 2021. This

was partially offset by a decrease in income from the Group’s property investments and piling revenue.

Gross profit contracted 36.0% y-o-y to S$5.9 million during the same period due to gross losses in the Group’s healthcare and construction segments. This led to a narrowing in gross profit margins to 13.4%.

Other income rose 73.2% y-o-y to S$11.0 million in FY2022, mainly resulting from the provision of guaranteed income and greater fair value gains on investment properties.

As a result, net profit attributable to owners of the Company decreased 17.1% y-o-y to S$2.2 million in FY2022. The Group continued to generate positive net operating cashflow of S$1.9 million during the period. In FY2022, the Group disposed of around S$11.1 million worth of investment properties and assets held for sale, as the Group shifted its strategic focus toward its e-waste recycling and healthcare businesses.

The Group remains optimistic about its future growth trajectory in e-waste recycling and healthcare segments. As part of the Group’s commitment to consistently reward shareholders, it has proposed a final dividend of 0.1 S cents per share to show appreciation for the unwavering support of its shareholders despite the challenging operating environment. This represents a payout ratio of 66.7% of the Group’s net profit attributable to shareholders in FY2022.

Segmental Revenue (S$ million)	FY2022	FY2021	Change (%)
Recycling of e-waste	33.9	32.7	3.6
Property investments	1.8	2.4	-26.5
Piling contracts	2.4	3.7	-35.5
Manufacturing and trading of healthcare products	6.1	1.6	>100
Total Revenue	44.1	40.4	9.1

Commenting on the results, Executive Chairman of Enviro-Hub, Mr Raymond Ng said, “As we continue to navigate through a period of economic volatility, we are proud to

deliver continued revenue growth in our e-waste recycling segment. The rapid expansion of our retail pharmaceutical brand and our on-going strategic collaborations with healthcare providers in Malaysia reaffirms our commitment to improving the region’s health infrastructure. We are optimistic about the outlook of our core businesses and believe it will unlock sustainable returns for our shareholders.”

Business Outlook

As the global COVID-19 situation continues to show signs of improvement, most countries are progressively easing COVID-19 border restrictions. Despite this, the economic outlook remains uncertain as businesses face the combined impact of high inflation, rising interest rates, and the potential of a recession.

The Group’s e-waste recycling processing capacity expansion project is slated to complete by 2H2023.  The expansion will increase processing capacity by 41.7% to 5,100 tonnes per year. As such, the Group is well-positioned to capitalise on any potential increase in processing volume and contract size from new and existing customers.

Despite lower selling prices and muted plant utilisation rates across the rubber glove industry, the downside for Enviro-Hub is minimised by the undertaking provided by PGSB’s founder, Mr. Law Siau Woei (“LSW”). LSW undertakes to the Enviro-Hub that, in the event that PGSB incurs a net loss after tax (“NLAT”) for any of the financial years from 1 January 2022 to 31 December 2024, he shall be liable to make payment to PGSB equivalent to the NLAT for that relevant financial year.

That said, the Group remains optimistic about the structural growth of the rubber glove industry post-consolidation. According to Malaysia Rubber Glove Manufacturers Association (MARGMA) in September 2022, normalisation of glove supply-demand equilibrium will occur within six to nine months, while global demand for rubber gloves is projected to grow at 10 to 12% per year.

https://www.theedgemarkets.com/article/glove-supplydemand-equilibrium-six-nine-months-says-margma-president

The Group will continue to rationalise its expenses prudently and manage cash flow carefully, while streamlining its core businesses and making decisive structural reforms to maximise business performance.

• Enviro-Hub is opening its 8th retail pharmacy, R Pharmacy, on December 3rd in Pandan Indah, Malaysia
• Enviro-Hub aims to open 90 outlets across the country by 2024
• Currently, the Group is on track with its target to open more outlets in 2023

SINGAPORE, November 29, 2022–Enviro-Hub Holdings Ltd (SGX: L23) (“Enviro-Hub” or the “Company”, and together with its subsidiaries, the “Group”) is pleased to announce the opening of its eighth retail pharmacy in Malaysia, R Pharmacy, under its 40% jointly owned subsidiary, Pastel Care Sdn Bhd. The Group’s first outlet was unveiled on April 16th in Klang Valley, Malaysia. Since then, the pharmaceutical brand has grown exponentially and is on the verge of opening its eighth outlet. The new two-story outlet, at 8G Jalan Indah 1/23A, Pandan Indah 55100, Kuala Lumpur, will officially serve as the brand’s flagship store. To commemorate the occasion, renowned Singapore artistes, Xu Bin of award-winning popular series <<My Star Bride 过江新娘>> , and award-winning burgeoning actor, Damien Teo, will grace the grand opening as honorary guests together with Enviro-Hub’s Board of Directors.

Enviro-Hub aims to continue to grow the R Pharmacy brand to 90 outlets across the country by 2024. The Group’s aggressive expansion strategy will be mainly funded using internal resources.

CEO of R Pharmacy and Executive Director of Enviro-Hub, Mr Adrian Toh, said, “We are thrilled to announce the opening of our eighth R Pharmacy outlet in Malaysia six months after we opened our first pharmacy store. The new flagship store is truly a place for us to further our mission of reimagining the conventional pharmaceutical dispensary with a more premium customer experience and the largest store still date. The brand has already garnered immense interest regionally and we can’t wait to follow that up with more outlets by the end of 2023.”

R Pharmacy’s mission is to make leading healthcare products more accessible to their customers. Built with millennials in mind, the retail pharmacy will focus on health supplements and medication brands that prioritize reliability. In-house pharmacists will be present at each retail store to provide tailored advice and premium services to customers. With their extensive product offerings, R Pharmacy aspires to position itself as the heartland pharmaceutical store in Malaysia.

SINGAPORE, November 11, 2022–Enviro-Hub Holdings Ltd (SGX: L23) (“Enviro-Hub” or the “Company”, and together with its subsidiaries, the “Group”) is pleased to announce the appointment of Mr Adrian Toh to the role of Executive Director of the Group effective immediately.

Adrian will serve in a dual role of Executive Director and Chief Investment Officer. He will continue to oversee investor relations and the execution of all merger and acquisition transactions. In his new role, his responsibilities will be expanded to include additional financial
decision-making, strategic planning, and risk management. He is responsible for Enviro-Hub’s overall corporate strategy in driving business growth and driving further integration across the businesses to truly deliver a stronger proposition to the shareholders.

“I am excited and honored to transition into this new leadership role,” said Mr Adrian Toh, Executive Director of Enviro- Hub. “As we continue to execute our growth strategies, I will remain focused and committed to maintaining our strong financial position. In my expanded role, I look forward to continuing to contribute to the growth and success of the Company.”

Adrian joined the Group in 2021, where he has led as the Chief Investment Officer. He has played an integral role in the development and execution of Enviro-Hub’s corporate and financial strategy and has played a critical role in the growth of the Healthcare segment. Within
a brief span of one year with the Group, he led the opening of R-Pharmacy, which builds on Enviro-Hub’s ambition to become a leading integrated healthcare supplies player in the region. Last year, he led the acquisition of Pastel Glove Sdn. Bhd., a Malaysia-based glove maker
with a production capacity of one billion gloves per annum.

 

“I am pleased to announce Adrian’s appointment to Executive Director,” Executive Chairman of Enviro-Hub, Mr Raymond Ng said. “Adrian has been instrumental in the Company’s growth. Through his strategic focus and finance expertise, and commitment to the Company, he has been an exceptional leader. I look forward to reaching new levels of success and growth with his increased involvement in investment and strategic planning.”

• Enviro-Hub opens its first retail pharmacy, R Pharmacy, on April 16th, 2022 in Klang Valley, Malaysia
• Another five retail pharmacies are currently in the pipeline, with the joint venture targeting to launch a total of 25 outlets by the end of 2022
• Aimed at millennials, the new retail pharmacy brand will focus on delivering a diverse product portfolio and a personalised customer experience

SINGAPORE, April 19, 2022– Enviro-Hub Holdings Ltd. (SGX: L23) (“Enviro-Hub” or the “Company”, and together with its subsidiaries, the “Group”) is pleased to announce the opening of its first retail pharmacy in Malaysia, R Pharmacy, through its 40% jointly-owned company, Pastel Care Sdn. Bhd. The Group’s first outlet opened to the public on April 16th, in Klang Valley, Malaysia: G-8, Kompleks Niaga Taman Ltat. Jalan Bukit Jalil Indah 4. Taman Ltat. 57000. Bukit Jalil. Kl. Local artist, Academian and Miss World Malaysia, Dr Prof Wincci attended the opening ceremony as an honorary guest and band ambassador of R Pharmacy. This is the first of six retail
pharmacies that are currently under development.

R Pharmacy’s mission is to make leading healthcare products more accessible to its customers. Established with millennials in mind, the retail pharmacy will focus on health supplements and medication brands that prioritise reliability. In-house pharmacists will be present at each retail store to provide tailored advice and premium services to customers. With its extensive product offerings, R Pharmacy aspires to position itself as the heartland pharmaceutical store of Malaysia.

The opening of R Pharmacy builds on Enviro-Hub’s ambition to become a leading integrated healthcare supplies player in the region. Last year, Enviro-Hub acquired Pastel Glove Sdn. Bhd. (“Pastel Glove”), a Malaysia-based glove maker with a production capacity of one billion gloves per annum. Enviro-Hub aims to grow the R Pharmacy brand to a total of 25 outlets across Malaysia by the end of the current financial year ending 31 December 2022. The expansion will likely be mainly funded using internal resources.

Commenting on the new business venture, Executive Chairman of Enviro-Hub, Mr Raymond Ng said, “The opening of R Pharmacy reaffirms our big push into the health supplies industry. The recent global health crisis has shed light on the need for healthcare solutions that are reliable, accessible and affordable. By reinventing the way we think about pharmacies, I believe we can understand our customers better and connect them to more superior products and services. As we expand the R Pharmacy brand, we hope to set a new benchmark for quality retail healthcare.”

Director of R Pharmacy, Mr Adrian Toh, said, “We are delighted to open the first of six R Pharmacy stores which are in the pipeline in Malaysia now. After months of careful sourcing, we have curated a diverse product portfolio, offering customers everything from evidence-based health supplements to the most sought-after medicine brands. Coupled with a strong team of highly-skilled pharmacists, we are able to serve our customers with personalised advice and deliver a more holistic wellness experience.”