DEAR SHAREHOLDERS,  

Since our IPO four years ago, we have been very focused on building up our Shipping Services – a crucial engine of growth.  

In FY2023, we added 7 more sets of tugboat and barge to raise our fleet size to 21 and expand our carrying capacity by almost 36% to 212,000 deadweight tonnage (“DWT”) as at 31 December 2023. Our continued fleet expansion strategy has enabled us to tap the favourable dynamics in Indonesia, where demand for chartering and transshipment services outstrips supply. With our expanded fleet size, we are in a better position to improve shipping efficiency and turnaround time, and to pursue higher value projects. It has also allowed us to diversify beyond coal to ship other commodities such as sand, bauxite, nickel and granite.  

Benefitting from higher shipping volume and freight rates, revenue from Shipping Services increased 45.8% to S$53.6 million in FY2023. Gross profit for the segment rose 52.7% to S$29.2 million, while gross profit margin increased to 54.5%, from 52.1% a year ago.  

Our Trading business continued to face supply constraints, recording lower trading volume. Along with lower average selling price arising from the downturn in Indonesia Coal Index, our Trading Business recorded a 63.5% decline in revenue to S$52.0 million. Gross profit declined 82.6% to S$3 million.  

Due to the performance from our Trading business, the Group ended the year with revenue of S$105.6 million and gross profit of S$32.3 million – a decline of 41.0% and 11.6%, respectively. Gross profit margin at the Group level, however, improved by 10.1 percentage points to 30.5%, driven by higher contribution from the higher value Shipping Services.  

We are working towards securing a steady coal supply to augment the Group’s growth.  

BUILDING OUR SECOND GROWTH ENGINE  

With our first growth catalyst, Shipping Services, firmly in place, we are now ready to establish our second engine of growth – coal handling, which will involve both coal mining and coal trading.  

Following shareholders’ approval in January 2024, the Group has since acquired all the issued shares in the capital of Batubara Development Pte. Ltd. (“Batubara Development”) which has interest in four coal mines in Central Kalimantan. The coal mines would give us the steady coal supply that we need to propel the Group’s growth.  

The green field, open-pit mines have an estimated proved and probable reserves of 162 million tonnes of coal, with GAR grade of approximately 4,000 kcal/ kg to 5,000 kcal/kg. With such mining assets, we are confident of raising the coal volume managed by the Group in a significant manner.  

EXTRACTING VALUE ACROSS THE SUPPLY CHAIN  

By diversifying into coal mining, we are adding another synergistic income pillar and creating a vertically-integrated business model, allowing us to capture margins across the entire supply chain – from source to customers.  

It will also further strengthen our existing Shipping Services as our growing number of vessels can be deployed to transport coal from our coal mines to our customers. This in-house cargo capability will not only create revenue synergies but also set us apart from our peers.  

EXECUTION ROADMAP  

Importantly, we are tapping our Founding Shareholders’ 20-year track record in coal mining to ensure a smooth project execution. We are in the midst of appointing a reputable mining specialist, who is familiar with the ground conditions, to operate our mines.  

Construction of related infrastructure is in progress. To minimise our financial exposure, the cost of constructing the jetty and hauling road is undertaken by a third party. Upon production commencement, the Group will have a tolling arrangement to pay for the usage of jetty and hauling road.  

Subject to weather conditions, we are targeting for two mines to commence production towards the end of 2024, while the remaining two in 2025. Our coal mining business will be spearheaded by the Group’s Chief Operating Officer and Executive Director, Salim Limanto who has over 11 years of management and business development experience in the coal mining, transportation and trading industries.  

TAPPING OPPORTUNITIES
IN INDONESIA’S GREEN TRANSITION  

Indonesia and the region will need to eventually balance off with renewables. However, in the short term, amidst the energy transition, Indonesia will still need affordable “baseload power” to generate electricity for the mass population who are mostly in the low income group. At this moment, coal remains the cheapest, most reliable, and most accessible energy source.  

Notably, Indonesia is ramping up its coal power generation to meet the increasing demand for electric vehicles (“EV”) in its growing green economy. With the country’s ambition to be a hub for EV manufacturing, the movement of different resources such as coal, bauxite,  

cobalt and copper within the Indonesian archipelago is expected to increase. This will in turn benefit our Shipping Services as well.  

DIVIDENDS  

To reward shareholders, we are pleased to declare a final tax-exempt dividend of 3.5 Singapore cents per share1 (“Final Dividend”) for FY2023, subject to shareholders’ approval at the upcoming annual general meeting on 29 April 2024 (“2024 AGM”).  

LOOKING AHEAD  

We are energised by our two-pronged growth strategy – fleet expansion and coal handling – to create value for shareholders. As at January 2024, we have added one more set of tugboat and barge. For the rest of 2024, 9 more sets of tugboat and barge (additional 70,000 DWT) will be rolled out, lifting carrying capacity to close to 300,000 DWT.  

On coal handling, as announced on 4 April 2024 and subject to shareholders’ approval at an extraordinary general meeting to be convened, we intend to acquire a strategic stake in PT Tri Oetama Persada (“PTTRIOP”) Which owns a coal mine with proved and probable reserves of 64 million tonnes in Central Kalimantan. This will lift our total proved and probable reserves of 226 million tonnes. PTTRIOP’s mine is situated next to the four coal mines owned by Batubara Development, enabling us to leverage economies of scale and extract greater synergies when we progressively commence production.  

To increase trading liquidity and provide greater flexibility in terms of the size of trades to investors with different investment profiles, subject to shareholders’ approval at the upcoming 2024 AGM, we will be conducting a share split of every one (1) existing ordinary share in the capital of the Company (“Share”) into five (5) ordinary Shares in the capital of the Company. This will allow more investors to participate in the growth of RGD.  

At the same time, we remain mindful of the impact that the Group’s operations may have on the wider environment, and will continue to take stock and explore ways to manage our environmental footprint, in compliance with regulations.  

APPRECIATION  

I want to congratulate our management team and employees for consistently delivering commendable results since our listing.  

A big thank you to our customers and business partners for their support. I would also like to convey my appreciation to the Board of Directors for their guidance, which has been crucial in driving the Group forward.  

To our valued shareholders, thank you for placing your trust in our growth story.  

Mr Francis Lee 
Executive Director and CEO