DEAR SHAREHOLDERS,  

I would like to begin by thanking all our long- standing shareholders for supporting the corporate actions we undertook in FY2024 to build a stronger entity. At the same time, a warm welcome to all our new shareholders who have joined the RGD family through our recent placement exercise.  

FY2024 was a milestone year, marked by a series of exciting developments intended to unlock value for our shareholders. A key highlight was our acquisition of interests in five coal mines in Central Kalimantan through acquisition of shareholding interests in two IDX-listed entities. By moving upstream into Coal Mining, we are establishing a synergistic income pillar and building a vertically integrated business model. This will in turn enable us to capture margins across the entire supply chain, from source to customer, secure a steady coal supply for our operations, and improve logistics efficiency within our supply chain, all of which are expected to contribute to the Group’s overall profitability.  

TWIN ENGINES OF GROWTH  

The acquisitions support the Group’s two-pronged growth strategy. Beyond enabling direct coal sales from the five coal mines, it will also strengthen our existing Shipping Services, allowing our expanded fleet to transport coal to our customers. This in- house cargo capability will not only create revenue synergies but also set us apart from our peers.  

Shipping Services: Fleet Expansion  

In FY2024, we added 8 sets of TBBG, raising our fleet size to 29 and carrying capacity by 30% to 276,000 deadweight tonnage as at 31 December 2024.  

Our ongoing fleet expansion has allowed us to tap Indonesia’s favourable market dynamics, providing the flexibility to pursue higher-value commodities and projects with varying turnaround durations and expand into new shipping routes. Beyond coal, it has also enabled us to transport other natural resources such as sand, bauxite, nickel, and granite. Our expanded fleet will also support the operational needs of the five coal mines.  

The impact of our fleet expansion strategy is evident from Shipping Services’ expanding contribution. Year after year, revenue and gross profit from this segment have been consistently growing, driven by higher capacity and business activity.  

To keep up with the growth momentum, as at 31 December 2024, we have ordered 12 additional sets of TBBG, which are currently under construction. If construction proceeds smoothly, 7 sets of TBBG are scheduled for delivery in 2025, with the remaining 5 expected in 2026.  

Coal Mining: Direct Sales to Customers  

Since IPO, the Group has been relying on a main supplier to procure coal for our Trading business. However, supply constraints due to rainy weather and depleting reserves have impacted availability, resulting in the absence of revenue from our Trading business in FY2024.  

To reduce reliance on external sources, the Group will undertake direct coal sales once the five coal mines, in which we have a stake, commence commercial scale production. With this in mind, we have ceased the Trading business carried out by our subsidiary, DNS.  

In September 2024, TRIOP’s mine commenced coal production and completed its maiden coal shipment and sales, in line with the Group’s earlier guidance. This initial shipment of 48,000 tonnes (GAR 4,200 kcal/kg) was exported to China, with China Resources Group as the buyer.  

On infrastructure-related matters, the jetty supporting the five mines and the main 85km hauling road are now operational. It should be noted that construction costs of the jetty and hauling road are borne by a third party, and not the Group. We will pay a toll for using the hauling road and jetty.  

FY2024 FINANCIAL HIGHLIGHTS 

The Group ended FY2024 with revenue down 24.3% to S$79.9 million, reflecting the absence of Trading, which accounted for nearly 50% of revenue in FY2023. Shipping Services and Coal Mining business generated 77% and 21% of total revenue, respectively.   

Despite lower revenue, gross profit improved 16.2% to S$37.5 million in FY2024, predominantly driven by the higher-margin Shipping Services and Coal Mining business. As a result, gross profit margin improved from 30.5% in FY2023 to 46.9% in FY2024. Net profit in FY2024 stood at S$26.1 million, compared to S$27.1 million in FY2023.  

DIVIDEND  

To reward shareholders, we are pleased to declare a final tax-exempt dividend of 0.72 Singapore cents per share for FY2024, subject to shareholders’ approval at the upcoming annual general meeting on 28 April 2025 (“2025 AGM”).  

UNLOCKING VALUE  

In March 2025, we divested 15% of our issued shares in SINI, an IDX-listed entity, realising a gain of approximately S$4.27 million above the book value¹. This strategic move unlocks shareholder value and enables the Group to reallocate resources to enhance asset utilisation. We retain a 16.22% stake in SINI and continue to hold interests in its four coal mines.  

LOOKING AHEAD

We are very excited about our growth journey, with Shipping Services driven by continued fleet expansion and Coal Mining gaining momentum with phased production commencement. Once production across the five coal mines reaches a steady state, we anticipate a more significant contribution to our financial performance. As these two business pillars are complementary in nature, we can leverage economies of scale and enhance operational synergies.  

According to the International Energy Agency, global coal demand is set to reach an all time high, growing by 1% in 2024 to reach a record 8.8 billion metric tonnes (MT), superceding the previous estimate that demand would plateau. For the next three years, coal demand is expected to stay at this level, driven by strong growth in the two largest coal consumers, China and India.  

We recognise the ESG concerns surrounding coal. However, we believe that coal remains essential to support the energy transition in Indonesia and the region. Affordable baseload power is still needed to generate electricity for the mass population. At present, coal remains the most cost-effective, reliable, and accessible option.  

Indonesia’s growing power demand is also driven by its ambition to become a major player in the electric vehicle industry. New coal power plants are being built to support the growing production of essential metals like aluminium, nickel, copper, and cobalt, which are key materials for electric vehicle (EV) batteries.   

While Indonesia remains committed to phasing out coal-fired power generation by 2040, the current energy infrastructure and economic considerations will require the continued use of coal in the near term.  

We will continue to play our part as a responsible corporate citizen by taking stock and managing our environmental footprint, in compliance with regulations.  

APPRECIATION  

On behalf of the Board of Directors, I would like to thank the management team and staff for their hard work over the past year. To our customers, business partners, and valued shareholders, thank you for placing your trust in us.  

Mr Francis Lee 
Executive Director and CEO  

¹ The book value is based on SINI’S unaudited consolidated financial statement for the financial year ended 31 December 2024.