Summary
Strategic Placement and Capital Allocation. The Company has completed a share placement that raised S$7.02 million in gross proceeds with the issuance of 26 million new shares at an issue price of S$0.27 each in February. The strategic allocation of these net proceeds is highly targeted toward the group's highest-velocity growth nodes: 1) Loan Book Expansion and Strategic M&A. The majority of the capital, equating to approximately S$4.78 million, is strictly earmarked to aggressively scale the SKCR credit business. By expanding the equity base backing the loan portfolio, Skylink can negotiate vastly larger block discounting facilities from its banking partners, generating a compounding multiplier effect on its capacity to issue high-margin hire-purchase agreements. Furthermore, management has indicated a general openness to evaluating potential synergistic mergers and acquisitions. 2) Electric Vehicle Fleet Proliferation. Approximately S$2.00 million will be deployed directly to fund the acquisition of new Electric Commercial Vehicles (ECVs) and support broader ESG-aligned mobility initiatives. This targeted capital deployment ensures the firm is optimally positioned to capture the market premium associated with sustainable B2B logistics solutions. Strategic M&A for Vertical Integration. On 15 January 2026, the Group completed the acquisition of the business and related assets of Chuang Li Partners. The business will operate as a joint venture, with Skylink holding an 80% stake, capturing immediate cost synergies across the Group's internal leasing fleet whilst expanding its third-party customer base. This acquisition enhances Skylink's engineering capabilities by adding specialised commercial vehicle bodywork customisation services. The transaction involves an aggregate consideration of up to S$1.75 million, which features a base consideration of S$0.75 million and a performancebased deferred consideration of up to S$1.0 million.
Fleet and Capacity Expansion. In December 2025, the Group acquired a fleet of 132 commercial vehicles from a third-party seller. This acquisition provides an immediate, accretive recurring revenue stream with zero client acquisition costs, whilst optimising the Group's fleet replacement cycles. The Engineering segment also benefits directly, securing additional revenue through bodywork repair and maintenance services under a threemonth warranty arrangement with the seller. To support this rapid physical scaling, Skylink signed a new lease for a B2 industrial property at Jurong Port Road, adding 15,000 square feet of space. This nearly doubles its total engineering specialist workshop area to 33,300 square feet, significantly enhancing its capacity for heavy-duty vehicle MRO, body fabrication, and full-body spray painting. Attractive Dividend Policy. Underpinning its commitment to delivering tangible shareholder value following its recent Catalist board listing, the Board has proposed a highly attractive and definitive dividend recommendation to distribute 30% of the net profit after tax for FY2026.
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