Here Are 5 Surprising Truths We Found In Miyoshi Limited’s FY2025 Financial Report.
We dove into the latest full-year financial report for Miyoshi Limited, a Singapore-based manufacturing company. We’ve distilled the most surprising and impactful takeaways that paint a picture far more complex than you might expect.
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1. Their Revenue Plummeted, But Their Losses Actually Shrank
At first glance, the numbers seem contradictory. Miyoshi’s full-year revenue for FY2025 dropped by a significant 16.91%, falling to $32.87 million from $39.56 million the previous year. You would expect a company selling less to lose more money. Yet, their net loss for the year actually improved slightly, shrinking from $3.43 million in FY2024 to $3.35 million in FY2025.
This wasn’t the result of brilliant cost-cutting or operational improvements. The entire positive shift in the bottom line can be attributed to a huge, one-time spike in ‘Other income’. The report reveals the specific event that masked the company’s operational performance:
The secret lies in a one-time event: a $1.61 million “Gain on disposal and re-measurement of assets held for sale” in FY2025, an income source that didn’t exist in the previous year.
This one-time gain was so significant that it improved the company’s pre-tax loss position. However, as we’ll see later, a surprise tax increase clawed back much of that apparent gain. This single transaction dramatically altered the final loss figure, perfectly illustrating why it’s crucial to look beyond headline numbers to distinguish between one-off windfalls and the health of the core business.
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2. Their Cash in the Bank Increased, But Not From Selling Products
The balance sheet presents another paradox. Despite losing money and experiencing a steep drop in sales, the company’s cash position improved significantly. Their “Cash and bank balances” grew from $3.93 million in FY2024 to $5.96 million in FY2025. How does a money-losing company end up with more cash?
The “Statement of Cash Flows” tells the real story. The money didn’t come from selling its products; in fact, its core “Net cash used in operating activities” was negative, at a loss of $0.92 million.
The cash infusion came from a completely different source: “Net cash generated from investing activities,” which was a strongly positive 3.53 million. This was almost entirely driven by **4.02 million** in “Proceeds from disposal of assets held for sale.” While the company was selling assets, it was also investing, using $1.13 million for the “Purchase of property, plant and equipment,” adding a layer of nuance to its strategy.
This isn’t a repeatable operational success; it’s a one-time liquidity event that shrinks the company’s long-term asset base. They traded a piece of their future potential for present stability. This distinction is critical: Miyoshi didn’t earn this cash, it unlocked it by selling off a productive asset. It’s the financial equivalent of selling the family silver to pay the bills.
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3. One Core Business Segment Is in an Alarming Freefall
While the overall revenue decline was concerning, digging into the segment-by-segment breakdown reveals a particularly alarming trend in one of their core business lines: Data Storage.
Revenue from this segment collapsed by a staggering 59.19% in just one year. It fell from $1.475 million in FY2024 to a mere $602,000 in FY2025. This isn’t a minor dip; it’s a freefall. The report is blunt in its explanation for this collapse:
The report states this was because “there were discontinued orders from China customers who switched suppliers.”
This isn’t just a story about a weak market; it reveals a direct competitive threat and the loss of key customers, signaling a significant risk to the long-term viability of this business segment.
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4. They Paid More Taxes, Even While Losing Money
Here’s an interesting quirk of global finance that often surprises people. Despite reporting a “Loss before income tax” of $2.725 million in FY2025, Miyoshi’s “Income tax expense” actually went up. The company paid 58.73% more in taxes, with the bill rising from $395,000 in FY2024 to $627,000 in FY2025.
How can a company that lost money end up with a higher tax bill? This happens because taxes are paid at the local level. Even if the consolidated Group reports a loss, profitable subsidiaries in specific countries still owe tax in those jurisdictions. A profit in the Philippines can trigger a tax bill, regardless of a loss in China.
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5. Management’s Outlook Is Anything But Rosy
After uncovering a smaller loss and more cash in the bank, one might assume that management would be optimistic. However, their own commentary paints a much more sober picture. The leadership is keenly aware that the positive-looking numbers were driven by asset sales, not a business turnaround. Their official outlook is deeply cautious.
In their own words, they see a difficult road ahead:
“As the business environment continues to face headwinds amid the uncertain global economic outlook due to the tariff imposed by USA, war in Ukraine, Middle East crisis and increasing operating costs, the Group continues to maintain a cautious outlook in the next 12 months.”
This cautious stance is reinforced by their financial decisions. They know the $2 million increase in the bank wasn’t earned through operations but came from the one-off factory sale. Accordingly, the board is not paying a dividend in order to “conserve cash amidst the current challenging business environment.” Despite the one-time cash injection, leadership’s own assessment is that the company must focus on cost discipline and operational efficiency to navigate a very difficult period.
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Conclusion: Reading Between the Lines
A company’s financial story is rarely as simple as a single profit or loss number suggests. The Miyoshi report shows how a seemingly improved bottom line can hide deeper truths about declining sales, struggling business segments, and strategic pivots like selling off core assets.
This leaves one critical question: Is a company truly on the path to recovery if it has to sell pieces of its foundation just to survive the present?
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