Miyoshi Limited Cuts FY2026 Net Losses By Half But Liquidity Risks Loom Large

Shrinking Losses Amid Operational Shift and Liquidity Hurdles

Miyoshi Limited has officially released its full-year financial results for FY2026, revealing significant progress in narrowing its net losses despite navigating persistent macroeconomic headwinds. While high-level indicators point to ongoing industry challenges, the bottom-line metrics demonstrate a clear drive toward operational discipline and expense control across its regional manufacturing footprint.

However, a closer look at the financial disclosures reveals that while top-line figures show slight contractions, the underlying business shifts and balance sheet developments tell a much more complex story. From structural segment realignments to escalating cash flow pressures and pending debt demands, investors must carefully evaluate both the operational progress and the liquidity hurdles ahead.

Bottom Line Net Losses Narrow by 56%

For the financial year ended 31 August 2026, Miyoshi Limited achieved a sharp reduction in total losses. Net loss after tax narrowed by 56.68%, falling from S$3.21 million in FY2025 to S$1.39 million in FY2026. Correspondingly, basic and diluted loss per share improved by 50.00%, moving from (0.26) cents down to (0.13) cents.

This bottom-line improvement occurred despite a counter-intuitive drop in top-line performance, as full-year revenue contracted by 5.20% from S$32.87 million to S$31.16 million. Rather than reflecting pure procurement efficiency, raw materials and consumables used dropped 6.71% to S$17.80 million directly in tandem with a 20.63% production volume contraction in the Consumer Electronics segment. Margin relief was further supported by structural expense reductions, including an 11.90% decline in depreciation and amortisation to S$2.22 million and a 15.17% reduction in other operating expenses driven by lower utility costs, lower professional fees, and favorable foreign exchange movements.

• FY2026 Total Revenue: S$31.16 million (Down 5.20% from S$32.87 million in FY2025)
• FY2026 Net Loss After Tax: S$1.39 million (Narrowed 56.68% from S$3.21 million in FY2025)
• Loss Per Share: (0.13) cents (Improved 50.00% from (0.26) cents in FY2025)
• Net Operating Cash Flow: S$270,000 (Inflow compared to an outflow of S$411,000 in FY2025)

Automotive Overtakes Consumer Electronics as Primary Revenue Engine

A significant structural realignment occurred across Miyoshi’s core operational divisions during FY2026. The Automotive segment officially surpassed Consumer Electronics to become the Group’s primary revenue engine, growing 6.44% year-over-year to S$17.26 million. This growth was propelled by stronger product demand from customers of the Group’s manufacturing subsidiaries in China.

In contrast, the Consumer Electronics segment experienced a steep contraction, plunging 20.63% from S$14.96 million to S$11.88 million due to sustained demand weakness and lower order volumes in the Philippines. Meanwhile, the Data Storage business demonstrated robust expansion, surging 54.32% to reach S$929,000 from S$602,000 in FY2025, while rental income under the “Others” category held steady at S$1.09 million.

Strategic Asset Divestments Keep Cash Inflows Afloat

To navigate tight operational cash flow and buffer its financial position, Miyoshi actively relied on non-operating asset sales throughout the reporting period. A key transaction was the completed disposal of its entire 42.11% equity interest in Core Power (Fujian) New Energy Automobile Co., Ltd for RMB 4.00 million (approximately S$0.76 million), resulting in a direct gain on an asset held at FVTPL. Additionally, the Group recorded a S$1.24 million gain on the disposal and re-measurement of assets held for sale.

Looking beyond the financial year-end, Miyoshi signed a binding letter of agreement on 9 September 2026 to sell its industrial property at 26 Boon Lay Way (#01-80) for S$1.69 million, which is expected to yield an estimated net gain of approximately S$343,000 upon execution. While these asset sales generated S$1.59 million in net cash from investing activities, investors must recognize that non-recurring asset divestments represent a temporary liquidity bridge. Liquidating real estate and non-core investments provides immediate working capital relief, but it cannot substitute for underlying operational profitability or hide ongoing cash burn in core operations.

Debt Reclassification and Legal Setbacks Present Key Risks

Despite narrowing its net losses, Miyoshi faces pressing liquidity vulnerabilities and balance sheet stress. On 14 July 2026, subsidiary Miyoshi Technologies Phils., Inc. received a formal letter of demand from BDO Unibank regarding a US1.2625 million credit line. With US1.16 million (equivalent to S$1.476 million) remaining outstanding as of 31 August 2026, BDO declared the full sum immediately due and demandable, triggering a mandatory reclassification of non-current borrowings into current liabilities. To support the Group’s financing during this strain, Executive Director and CEO Andrew Sin extended a S$1.02 million loan to the company. This loan carried S$28,000 in interest expenses and operated alongside other active interested person transactions—including property leases with Min Han Enterprise (S$124,000) and service transactions with AA Holdings (S$183,000)—underscoring how heavily the business relies on controlling shareholders as commercial bank credit lines tighten.

Compounding these liquidity risks are adverse post-period legal outcomes. In a recent decision, the GAFTA Board of Appeal overturned a prior arbitral ruling, ruling that Miyoshi’s claim to recover a US285,000 (approximately S$365,000) advance payment from Great Himalayan Pte. Ltd. was time-barred. Consequently, Miyoshi is no longer entitled to recover the funds and has been ordered to bear appeal and arbitration expenses of US39,900 (approximately GBP 29,484). With cash and bank balances contracting from S$5.96 million to S$4.17 million over the year, the Board prioritized capital preservation by withholding payouts to shareholders.

“After deliberation, the Board has adopted a prudent approach to conserve cash amidst the current challenging business environment. As such, no dividend has been declared for FY2026.”

What Investors Should Watch Next

Miyoshi Limited presents a dual narrative of improving operational efficiency paired with significant balance sheet risk. On the positive side, management halved full-year net losses through expense management, expanded automotive revenue via China subsidiaries, and generated essential short-term capital through asset sales. On the negative side, cash reserves are dwindling, bank repayment demands in the Philippines present acute refinancing risk, legal disputes have turned unfavorable, and consumer electronics volumes remain depressed. Over the next 12 months, the company’s trajectory will depend on its ability to stabilize operational cash flow and resolve immediate debt obligations.

• Resolution of Bank Demand and Debt Restructuring: Progress regarding formal negotiations or settlement terms with BDO Unibank over the S$1.476 million immediate debt demand at the Philippines subsidiary.
• Execution of Property Sale: Definitive execution of the Sale and Purchase Agreement for 26 Boon Lay Way (#01-80) to realize the anticipated S$343,000 net gain and S$1.69 million cash inflow.
• Automotive Expansion vs Consumer Electronics Volume: Sustained automotive revenue momentum in China relative to order volume stabilization in the Philippines consumer electronics division.

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