We Read a 35-Page Financial Report. Here Are the 4 Most Surprising Things We Found
Introduction: More Than Just Numbers
To most people, a corporate financial report is a digital paperweight—a dense, 35-page document filled with impenetrable jargon and endless tables. It’s the kind of thing you download for a specific number and then promptly forget. On the surface, these reports seem designed to be anything but interesting.
But if you know where to look, these documents can hide compelling stories of strategy, struggle, and sometimes, outright conflict. Tucked away in footnotes and appendices are the narratives that drive a company’s future. They reveal the quiet wins, the hidden risks, and the boardroom dramas that never make it into press releases.
We recently went through the interim financial statement for Matex International Limited, a Singapore-based specialty chemicals company, covering the first half of 2025. Beyond the headline figures, we found a story of surprising contradictions that built toward a dramatic climax. Here are four interconnected takeaways that reveal how a company’s operational struggles and financial maneuvers can trigger a full-blown corporate war.
——————————————————————————–
1. Their Sales Fell, But Each Sale Became More Profitable
At first glance, the top-line news isn’t great. The company’s Group revenue fell by a significant 27.19%, dropping from S$3.5 million in the first half of 2024 to S$2.5 million in the first half of 2025. This decline was attributed by the company to “inflation and economic uncertainty hurting consumer demand” and “intense competition.”
But here’s the surprising twist: despite selling less, the company became more profitable on each sale. The gross profit margin actually improved, rising from 20.64% to 22.07%.
How is that possible? The report explains that the cost of sales—what it costs to produce the goods they sell—decreased even faster than revenue, falling by 28.49%. The company credits this to “more cost-effective sourcing.” This is a significant detail. It suggests that even as the company struggles with overall market demand, it is gaining efficiency in its core operations, a fundamentally positive sign for its underlying business health.
2. Their Losses Deepened, But Their Finances Got Stronger
Looking at the bottom line, the picture seems to worsen. The Group’s net loss for the period increased by over 51%, growing from S$1.5 million in the first half of 2024 to S$2.3 million in the same period of 2025.
However, in a striking contrast, the company’s financial foundation became much stronger. The Group’s total equity—a key measure of its net worth—increased from S$7.9 million to S$9.8 million. Similarly, its positive working capital, which represents its ability to cover short-term liabilities, grew from S$6.2 million to S$8.3 million.
The reason for this apparent contradiction is a single, crucial event: in January 2025, the company completed a share placement that raised S$4.158 million in gross proceeds. This injection of fresh cash completely reshaped its balance sheet, giving it a longer runway. This cash infusion, orchestrated by the existing board, would prove to be a critical factor in the corporate drama that was about to unfold.
3. A Sneaky Culprit Was Behind a Big Chunk of the Loss: Foreign Exchange
A major contributor to the company’s increased net loss wasn’t a failure in its primary business but a force entirely outside of its control: currency fluctuations. Administrative expenses jumped by 32.87% to S$2.5 million, a significant increase that demands explanation.
Digging into the report’s review of financial performance reveals the main driver: a net foreign exchange loss of approximately S$0.4 million.
To put that into context, during the same period in the previous year (1H 2024), the company enjoyed a net foreign exchange gain of S$0.2 million. That S$0.6 million negative swing between the two periods was a major factor in the company’s deeper losses. This highlights just how vulnerable an international business can be to the volatility of currency markets and serves as a reminder that not all losses stem from poor operational performance.
4. The Real Story Isn’t in the Numbers—It’s a Full-Blown Boardroom War
While the previous points show a company grappling with operational and market challenges, the final discovery reveals how the board’s response to these pressures led directly to a full-blown war with its own shareholders. The most shocking discovery in the entire 35-page report isn’t in a financial table. It’s buried deep in “Note 16: Events occurring after the reporting period,” and it details the conflict that exploded just after the financial period ended.
Here is a summary of the dramatic sequence of events:
- Shareholder Revolt: A controlling shareholder, Nanyang (holding nearly 30% of the company), demanded an Extraordinary General Meeting (EGM) to remove two directors.
- Legal Battles: The board attempted to issue a massive block of 210 million new shares to two individuals at a low price, a move that would have significantly diluted existing shareholders. Nanyang filed a lawsuit to block it, and the court later indicated it would have granted an injunction to stop the issuance, validating the shareholders’ position.
- More Shareholder Pressure: A second group of shareholders also demanded an EGM to remove the very same directors and install their own candidates.
- Mass Resignations: Following an EGM on September 16, 2025, the Chief Executive Officer, an Executive Director, and the Non-Executive Chairman all resigned on the same day.
- A New Regime: A new Executive Director and a new Non-Executive Chairman were appointed that same day. A new Chief Financial Officer was appointed just twelve days later, on September 28, 2025.
- The Aftermath: All parties eventually signed a “Settlement Agreement,” and the controversial plan to issue new shares was officially terminated.
In a matter of weeks, the company’s entire senior leadership structure was dismantled and replaced as a direct result of a power struggle with its major shareholders. This is the kind of transformative event that financial statements alone can never fully capture.
——————————————————————————–
Conclusion: Beyond the Balance Sheet
This financial report for Matex International Limited is a perfect example of why the real story is often found between the lines. It paints a picture of a company facing operational headwinds, but one that simultaneously strengthened its financial position through a capital raise. More importantly, it reveals how that capital became a central piece in a power struggle that culminated in a complete change of leadership.
Matex ended the period with worsening operational losses but a much stronger balance sheet, and it is now under completely new management. This raises the ultimate question that no financial report can answer yet: With fresh capital in the bank and a new team at the helm, can Matex reverse its sales decline and resolve the internal conflicts that exploded into public view? The next financial report will be one to watch.
WATCH THE EXPLAINER VIDEO BELOW:
LISTEN TO THE PODCAST BELOW: