Interim report
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The Hour Glass Limited and its Subsidiaries Company Registration No. 197901972D Condensed Interim Consolidated Financial Statements For the Half Year Ended 30 September 2025
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Table of Contents For the half year ended 30 September 2025 Page A. Condensed interim consolidated income statement 1 B. Condensed interim consolidated statement of comprehensive income 2 C. Condensed interim statements of financial position 3 D. Condensed interim statements of changes in equity 4 E. Condensed interim consolidated statement of cash flows 6 F. Business review and market outlook 7 G. Notes to the condensed interim consolidated financial statements 8 H. Other information required by Appendix 7.2 of the Listing Manual 20
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Page 1 of 21 A. Condensed interim consolidated income statement For the half year ended 30 September 2025 Note30 Sep 25 30 Sep 24 Change$'000 $'000 %Revenue 4 615,413 540,311 14%Other income 5 7,332 8,462 -13%Revenue and other income 622,745 548,773 13%Cost of goods sold 425,933 374,655 14%Employee benefits expense 37,364 35,748 5%Selling and promotion expenses 20,009 19,625 2%Depreciation of property, plant and equipment 9,031 7,012 29%Depreciation of right-of-use assets 16,503 16,076 3%Rental expenses 5,402 2,848 90%Finance costs 6 4,110 3,892 6%Foreign exchange loss 354 2,290 -85%Other expenses 7 13,187 12,590 5%Costs and expenses 531,893 474,736 12%Share of results of associates 5,723 4,599 24%Profit before taxation 96,575 78,636 23%Income tax expense 8 20,878 17,076 22%Profit for the period 75,697 61,560 23%Profit attributable to:Owners of the Company75,694 61,421 23%Non-controlling interests3 139 -98%75,697 61,560 23%Earnings per share (cents)Basic and diluted10 11.70 9.46 24% Half Year endedGroup
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Page 2 of 21 B. Condensed interim consolidated statement of comprehensive income For the half year ended 30 September 2025 30 Sep 25 30 Sep 24 Change$'000 $'000 %Profit for the period 75,697 61,560 23%Other comprehensive income:Item that may be reclassified subsequently to profit or loss:Foreign currency translation (970) 10,182 NMShare of other comprehensive income of associates (20) (35) -43%Other comprehensive income for the period, net of tax (990) 10,147 NMTotal comprehensive income for the period 74,707 71,707 4%Total comprehensive income attributable to:Owners of the Company75,137 72,066 4%Non-controlling interests(430) (359) 20%74,707 71,707 4%NM – Not Meaningful Half Year endedGroup
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Page 3 of 21 C. Condensed interim statements of financial position As at 30 September 2025 Note 30 Sep 25 31 Mar 25 30 Sep 25 31 Mar 25$'000 $'000 $'000 $'000AssetsNon-current assetsProperty, plant and equipment 12 210,629 205,649 12,445 12,254 Right-of-use assets 13 152,318 90,732 47,887 51,790 Investment properties 14 216,382 217,029 73,009 73,009 Intangible assets 15 75,716 6,895 2,562 3,090 Investment in subsidiaries - - 243,945 185,201 Investment in associates 100,100 97,737 - - Other receivables 8,993 10,588 3,288 4,850 Deferred tax assets 1,316 1,060 - - 765,454 629,690 383,136 330,194 Current assetsInventories 347,246 328,305 214,628 209,795 Trade and other receivables 29,712 31,815 11,932 15,962 Prepaid operating expenses 4,173 3,212 1,514 759 Amounts due from associates 132 484 2 349 Amounts due from subsidiaries - - 7,768 9,238 Cash and bank balances 196,108 178,689 53,840 50,018 577,371 542,505 289,684 286,121 Asset held for sale - 6,998 - - 577,371 549,503 289,684 286,121 Total assets 1,342,825 1,179,193 672,820 616,315 Equity and liabilitiesCurrent liabilitiesLoans and borrowings 16 86,519 54,811 40,000 - Trade and other payables 80,320 58,916 27,714 24,868 Amounts due to subsidiaries - - 3,533 3,396 Lease liabilities 29,160 27,787 16,415 16,881 Income tax payable 20,486 16,131 11,642 11,323 216,485 157,645 99,304 56,468 Net current assets 360,886 391,858 190,380 229,653 Non-current liabilitiesLease liabilities 130,162 69,217 33,850 37,098 Deferred tax liabilities 9,470 10,692 148 162 Other payables 847 814 179 154 140,479 80,723 34,177 37,414 Total liabilities 356,964 238,368 133,481 93,882 Net assets 985,861 940,825 539,339 522,433 Equity attributable to owners of the CompanyShare capital 17(a) 67,638 67,638 67,638 67,638 Treasury shares 17(b) (111,900) (108,216) (111,900) (108,216) Reserves 1,016,516 967,254 583,601 563,011 972,254 926,676 539,339 522,433 Non-controlling interests13,607 14,149 - - Total equity 985,861 940,825 539,339 522,433 Total equity and liabilities 1,342,825 1,179,193 672,820 616,315 Group Company
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Page 4 of 21 D. Condensed interim statements of changes in equity For the half year ended 30 September 2025 Foreigncurrency AssetShare Treasury translation Capital revaluation Revenue Totalcapital shares reserve reserve reserve reserve interests equity$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000GroupBalance at 1 April 202467,638 (104,701) (62,695) (142) 3,448 944,856 848,404 14,029 862,433 Total comprehensive income Profit for the period - - - - - 61,421 61,421 139 61,560 Other comprehensive incomeForeign currency translation - - 10,680 - - - 10,680 (498) 10,182 Share of other comprehensive income of associates- - (35) - - - (35) - (35) Total other comprehensive income - - 10,645 - - - 10,645 (498) 10,147 Total comprehensive income - - 10,645 - - 61,421 72,066 (359) 71,707 Contributions by and distributions to ownersPurchase of treasury shares - (2,887) - - - - (2,887) - (2,887) Dividends on ordinary shares - - - - - (38,886) (38,886) - (38,886) Dividends paid to non-controlling interests - - - - - - - (108) (108) Total transactions with owners in their capacity as owners- (2,887) - - - (38,886) (41,773) (108) (41,881) Balance at 30 September 202467,638 (107,588) (52,050) (142) 3,448 967,391 878,697 13,562 892,259 Foreigncurrency AssetShare Treasury translation Capital revaluation Revenue Totalcapital shares reserve reserve reserve reserve interests equity$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000GroupBalance at 1 April 202567,638 (108,216) (64,871) (142) 3,448 1,028,819 926,676 14,149 940,825 Total comprehensive income Profit for the period - - - - - 75,694 75,694 3 75,697 Other comprehensive incomeForeign currency translation - - (537) - - - (537) (433) (970) Share of other comprehensive income of associates- - (20) - - - (20) - (20) Total other comprehensive income - - (557) - - - (557) (433) (990) Total comprehensive income - - (557) - - 75,694 75,137 (430) 74,707 Contributions by and distributions to ownersPurchase of treasury shares - (3,684) - - - - (3,684) - (3,684) Dividends on ordinary shares - - - - - (25,875) (25,875) - (25,875) Dividends paid to non-controlling interests- - - - - - - (112) (112) Total transactions with owners in their capacity as owners- (3,684) - - - (25,875) (29,559) (112) (29,671) Balance at 30 September 202567,638 (111,900) (65,428) (142) 3,448 1,078,638 972,254 13,607 985,861 Total attributable to owners of the Company Non-controlling Total attributable to owners of the Company Non-controlling
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Page 5 of 21 D. Condensed interim statements of changes in equity (cont’d) For the half year ended 30 September 2025 Total equity $'000$'000$'000$'000CompanyBalance at 1 April 2024 67,638 (104,701) 519,878 482,815 Total comprehensive incomeProfit for the period- - 33,394 33,394 Total comprehensive income - - 33,394 33,394 Contributions by and distributions to ownersPurchase of treasury shares- (2,887) - (2,887) Dividends on ordinary shares- - (38,886) (38,886) Total transactions with owners in their capacity as owners- (2,887) (38,886) (41,773) Balance at 30 September 2024 67,638 (107,588) 514,386 474,436 Balance at 1 April 2025 67,638 (108,216) 563,011 522,433 Total comprehensive incomeProfit for the period- - 46,465 46,465 Total comprehensive income - - 46,465 46,465 Contributions by and distributions to ownersPurchase of treasury shares- (3,684) - (3,684) Dividends on ordinary shares- - (25,875) (25,875) Total transactions with owners in their capacity as owners- (3,684) (25,875) (29,559) Balance at 30 September 2025 67,638 (111,900) 583,601 539,339 Share capital Treasuryshares Revenue reserve
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Page 6 of 21 E. Condensed interim consolidated statement of cash flows For the half year ended 30 September 2025 Note30 Sep 25 30 Sep 24$'000 $'000Operating activitiesProfit before taxation 96,575 78,636 Adjustments for: Finance costs64,110 3,892 Interest income5(885) (2,500) Depreciation of property, plant and equipment9,031 7,012 Depreciation of right-of-use assets16,503 16,076 Amortisation of intangible assets 840 546 Amortisation of deferred income (109) (147) Foreign currency translation adjustment 716 826 Net (gain)/loss on disposal of property, plant and equipment (4) 984 Gain on disposal of asset held for sale5(510) - Share of results of associates (5,723) (4,599) Operating cash flows before changes in working capital120,544 100,726 Increase in inventories (17,743) (18,483) Decrease/(increase) in trade and other receivables 5,377 (3,162) Increase in prepaid operating expenses (958) (1,616) Decrease in amounts due from associates 354 101 Increase/(decrease) in trade and other payables 20,288 (2,304) Decrease in amounts due to associates - (105) Cash flows from operations127,862 75,157 Income taxes paid (18,738) (19,978) Interest paid (4,110) (3,892) Interest received 885 2,500 Net cash flows from operating activities105,899 53,787 Investing activities Acquisition of a subsidiary, net of cash acquired23(75,331) - Payments for purchase of property, plant and equipment12(10,311) (13,309) Additions to intangible assets(265) (1,091) Addition to/payments for purchase of investment properties(43) (4,788) Proceeds from disposal of asset held for sale7,508 - Proceeds from disposal of property, plant and equipment100 938 Dividend received from an associate5,132 2,952 Net cash flows used in investing activities(73,210) (15,298) Financing activities Proceeds from loans and borrowings 40,000 - Repayment of loans and borrowings (8,391) (12,961) Payment of principal portion of lease liabilities (15,154) (15,684) Dividends paid to non-controlling interests (112) (108) Dividends paid on ordinary shares (25,875) (38,886) Purchase of treasury shares (3,684) (2,887) Net cash flows used in financing activities(13,216) (70,526) Net increase/(decrease) in cash and cash equivalents19,473 (32,037) (2,054) 1,492 Cash and cash equivalents at beginning of financial period 178,689 237,573 Cash and cash equivalents at end of financial period196,108 207,028 Cash and cash equivalents at the end of the period comprise the following:30 Sep 25 30 Sep 24$'000 $'000Cash at bank and on hand 151,828 98,971 Fixed deposits with banks 44,280 108,057 196,108 207,028 Half Year ended Effects of exchange rate changes on cash and cash equivalentsGroup Group
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Page 7 of 21 F. Business review and market outlook For the half year ended 30 September 2025 F1. A review of the performance of the Group, to the extent necessary for a reasonable understanding of the Group’s business. It must include a discussion of the following: (a) any significant factors that affected the turnover, costs, and earnings of the Group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and (b) any material factors that affected the cash flow, working capital, assets or liabilities of the Group during the current financial period reported on. (a) Group performance review for the half year ended 30 September 2025 Revenue for the 6 months ended 30 September 2025 (“1H FY2026”) rose 14% to $615.4 million (1H FY2025: $540.3 million). Gross margin was 30.8% in 1H FY2026 versus 30.7% in 1H FY2025. Higher operating expenses incurred were due to the increase in the depreciation of property, plant and equipment compared to same period last year. The Group achieved a 23% increase in profit after tax of $75.7 million versus $61.6 million in 1H FY2025. An interim dividend of 2.00 cents per ordinary share (1H FY2025: 2.00 cents) for the half year ended 30 September 2025 is payable on 8 December 2025. (b) Cash flow, working capital, assets or liabilities of the Group As at 30 September 2025, group inventories were $347.2 million (31 March 2025: $328.3 million). Cash and bank balances stood at $196.1 million (31 March 2025: $178.7 million). Bank borrowings increased to $86.5 million (31 March 2025: $54.8 million). The Company distributed $25.9 million as the final FY2025 dividend to shareholders and purchased $3.7 million of its own shares in 1H FY2026. Consolidated net assets attributable to owners of the Company were $972.3 million or $1.51 per share, as at 30 September 2025. F2. A commentary at the date of announcement of the significant trends and competitive conditions of the industry in which the Group operates and any known factors or events that may affect the Group in the next reporting period and the next 12 months. While ongoing trade tensions and macroeconomic uncertainties continue to weigh on luxury consumer sentiment, the Group’s strategic partnerships with leading watch brands provide a resilient foundation for sustained performance. The Group expects to remain profitable for the full financial year.
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Page 8 of 21 G. Notes to the condensed interim consolidated financial statements For the half year ended 30 September 2025 1. Corporate information The Hour Glass Limited (the “Company") is a limited liability company incorporated and domiciled in Singapore and is listed on the Singapore Exchange Securities Trading Limited ("SGX-ST"). The Company’s immediate and ultimate holding company is TYC Investment Pte Ltd, a company incorporated in Singapore. The registered office and principal place of business of the Company is located at 302 Orchard Road, #11-01 Tong Building, Singapore 238862. The principal activities of the Company and its subsidiaries (collectively, the "Group") are those of retailing and distribution of watches, jewellery and other luxury products, investment in properties and investment holding. 2. Basis of preparation The condensed interim consolidated financial statements for the half year ended 30 September 2025 have been prepared in accordance with Singapore Financial Reporting Standards (International) (“SFRS(I)”) 1-34 Interim Financial Reporting issued by the Accounting Standards Council Singapore. The condensed interim consolidated financial statements do not include all the information required for a complete set of financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group’s financial position and performance of the Group since the last annual consolidated financial statements for the year ended 31 March 2025. The accounting policies adopted are consistent with those of the previous financial year which were prepared in accordance with SFRS(I), except for the adoption of new and amended standards as set out in Note 2.1. The condensed interim consolidated financial statements are presented in Singapore Dollars ("SGD" or "$") and all values in the tables are rounded to the nearest thousand ($'000), except when otherwise indicated. 2.1 New and amended standards adopted by the Group The Group has adopted all applicable SFRS(I) that are mandatory for financial years beginning on or after 1 April 2025. The adoption of these standards did not have any material effect on the financial performance or position of the Group. 2.2 Use of judgements and estimates In preparing the condensed interim consolidated financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. The significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 31 March 2025.
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Page 9 of 21 G. Notes to the condensed interim consolidated financial statements For the half year ended 30 September 2025 3. Seasonal operations The Group’s businesses are not affected significantly by seasonal or cyclical factors during the financial period. 4. Revenue Revenue represents sale of goods after deducting allowances for goods returned and trade discounts. Disaggregation of revenue from contracts with customers The Group derives revenue from contracts with customers through the transfer of goods at a point in time. The Group has determined that disaggregation of revenue using existing segments and geographical markets meet the disclosure objective in SFRS(I) 15.114. Information regarding operating segments is disclosed in Note 20. 5. Other income Group Half Year ended 30 Sep 25 30 Sep 24 $'000 $'000 Rental income 4,376 4,404 Interest income from cash and bank balances 885 2,500 Management fee income from associates 1,290 1,185 Gain on disposal of asset held for sale 510 – Others 271 373 7,332 8,462 6. Finance costs Group Half Year ended 30 Sep 25 30 Sep 24 $'000 $'000 Interest on loans and borrowings 1,761 2,140 Interest on lease liabilities 2,349 1,752 4,110 3,892 7. Other expenses Group Half Year ended 30 Sep 25 30 Sep 24 $'000 $'000 Net loss on disposal of property, plant and equipment – 984 Facility costs 5,578 4,598 Professional fees 2,664 2,139 General and administrative expenses 4,945 4,869 13,187 12,590
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Page 10 of 21 G. Notes to the condensed interim consolidated financial statements For the half year ended 30 September 2025 8. Income tax expense Major components of income tax expense The major components of income tax expense for the half years ended 30 September 2025 and 2024 are: Group Half Year ended 30 Sep 25 30 Sep 24 $'000 $'000 Consolidated income statement: Current income tax - Current income taxation 22,305 16,566 - Over provision in respect of previous years (124) (25) 22,181 16,541 Deferred income tax - Origination and reversal of temporary differences (1,303) 535 (1,303) 535 Income tax expense recognised in profit or loss 20,878 17,076 International Tax Reform – Pillar Two The Group is subject to the global minimum top-up tax under Pillar Two tax legislation and has applied the temporary relief from deferred tax accounting for the impacts of this top-up tax. The Group has performed an assessment of its potential exposure to Pillar Two income taxes based on the country-by-country reporting and financial information for the constituent entities in the Group. As at 30 September 2025, the Group did not have subsidiaries in countries where statutory tax rate is less than 15%. Hence any top-up tax is not expected to have material impact to the Group. The Group continues to follow Pillar Two legislative developments, as further countries enact the Pillar Two model rules, to evaluate the potential future impact on its consolidated results of operations, balance sheets and cash flows. 9. Dividends Group and Company Half Year ended 30 Sep 25 30 Sep 24 $'000 $'000 Declared and paid during the financial period Dividends on ordinary shares: - Final exempt (one-tier) dividend in respect of the year ended 31 March 2025: 4.00 cents (2024: 6.00 cents) 25,875 38,886
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Page 11 of 21 G. Notes to the condensed interim consolidated financial statements For the half year ended 30 September 2025 10. Earnings per share Group Half Year ended 30 Sep 25 30 Sep 24 Profit for the period attributable to owners of the Company ($’000) 75,694 61,421 Weighted average number of ordinary shares for calculation of basic and diluted earnings per share (’000) 646,993 649,119 Basic and diluted earnings per share (cents) 11.70 9.46 EPS is calculated by dividing the Group's profit attributable to owners of the Company with the weighted average number of ordinary shares during the period. The weighted average number of ordinary shares outstanding during the period is the number of ordinary shares outstanding at the beginning of the period, adjusted by the number of ordinary shares issued or bought back during the period multiplied by a time-weighting factor. The time-weighting factor is the number of days that the shares are outstanding as a proportion of the total number of days in the period. There is no dilutive effect for EPS as the Company does not have any outstanding share convertibles as at 30 September 2025. 11. Net asset value Group Company 30 Sep 25 31 Mar 25 30 Sep 25 31 Mar 25 Number of issued shares (’000) 64 5,794 647,682 645,794 647,682 Net asset value per ordinary share (in $) 1.51 1.43 0. 84 0.81 12. Property, plant and equipment During the half year ended 30 September 2025, the Group acquired assets amounting to $10,311,000 (30 September 2024: $13,309,000), and separately acquired assets through the acquisition of a subsidiary amounting to $4,211,000 (30 September 2024: $Nil) and disposed of assets with cost and carrying value amounting to $1,772,000 and $96,000 (30 September 2024: $6,730,000 and $1,922,000) respectively. 13. Right-of-use assets During the half year ended 30 September 2025, the Group recognised $70,748,000 (30 September 2024: $20,768,000) of additions and lease modifications based on new leases and changes in lease terms upon renewal, and $7,439,000 arising from acquisition of a subsidiary.
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Page 12 of 21 G. Notes to the condensed interim consolidated financial statements For the half year ended 30 September 2025 14. Investment properties Group Company 30 Sep 25 31 Mar 25 30 Sep 25 31 Mar 25 $’000 $’000 $’000 $’000 At 1 April 217,029 156,266 73,009 5,192 Additions during the half year / full year 43 80,312 – 71,899 Transferred to asset held for sale – (6,998) – – Loss from fair value adjustments recognised in profit or loss – (6,454) – (4,082) Foreign currency translation adjustment (690) (6,097) – – At 30 September / 31 March 216,382 217,029 73,009 73,009 Investment properties are stated at fair value, which has been determined based on latest valuations performed as at 31 March 2025. The valuations were performed by accredited independent valuers with recognised and relevant professional qualification and with recent experience in the location and category of the properties being valued. During the half year ended 30 September 2025, the Group disposed of the entire shop and office unit at 201 Elizabeth Street, Brisbane (the “Property”). The Property was classified as an asset held for sale as at 31 March 2025 in accordance with SFRS(I) 5 Non-current Assets Held for Sale and Discontinued Operations. During the half year ended 30 September 2025, the Group did not engage independent valuers to determine the fair value of the properties. However, management had taken into consideration those underlying factors that would have impact to the fair value of the investment properties since the last valuations completed in March 2025. There are no major aspects that could affect the fair value of the investment properties as at 30 September 2025. 15. Intangible assets Intangible assets comprise goodwill, brands and software cost capitalised. Goodwill acquired in business combinations are allocated at acquisition to the cash-generating units that are expected to benefit from the businesses. The goodwill of $68,858,000 (Note 23) is provisionally allocated to the watch business unit of THGRAU Pty Ltd, a subsidiary which was acquired during the year. The initial purchase price allocation to identifiable net assets acquired is being assessed and expected to be finalised within 12 months from the acquisition date. Brands relate to various brand names that were acquired in business combinations. Included in the carrying amount of brands is an amount of $164,000 (31 March 2025: $169,000) with indefinite useful life. The remaining balance of $3,591,000 (31 March 2025: $3,636,000) has a remaining amortisation period of 39 (31 March 2025: 39) years. Software has a carrying amount of $2,562,000 (31 March 2025: $3,090,000) and an average remaining amortisation period of 2 (31 March 2025: 2) years.
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Page 13 of 21 G. Notes to the condensed interim consolidated financial statements For the half year ended 30 September 2025 16. Loans and borrowings Group 30 Sep 25 31 Mar 25 $'000 $'000 Amount repayable within one year or on demand Secured loans 46,519 54,811 Unsecured loans 40,000 – 86,519 54,811 Amount repayable after one year Secured loans – – Unsecured loans – – – – The secured loans of $46,519,000 (31 March 2025: $54,811,000) are secured by certain properties held by subsidiaries and corporate guarantees given by the Company. 17. Share capital and treasury shares (a) Share capital Group and Company 30 Sep 25 31 Mar 25 No. of shares No. of shares '000 $'000 '000 $'000 Issued and fully paid ordinary shares: Balance at 1 April and 30 September / 31 March 705,012 67,638 705,012 67,638 As at 30 September 2025, the Company’s total issued shares is 645,794,480 ordinary shares (31 March 2025: 647,681,580) excluding 59,217,400 shares held as treasury shares (31 March 2025: 57,330,300). (b) Treasury shares Group and Company 30 Sep 25 31 Mar 25 No. of shares No. of shares '000 $'000 '000 $'000 At 1 April (57,330) (108,216) (55,083) (104,701) Acquired during the financial period (1,887) (3,684) (2,247) (3,515) At 30 September / 31 March (59,217) (111,900) (57,330) (108,216)
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Page 14 of 21 G. Notes to the condensed interim consolidated financial statements For the half year ended 30 September 2025 17. Share capital and treasury shares (cont’d) (b) Treasury shares (cont’d) Treasury shares relate to ordinary shares of the Company that are held by the Company. As at 30 September 2025, the Company held 59,217,400 treasury shares (30 September 2024: 56,925,100) which represents 9.170% (30 September 2024: 8.784%) of the total number of issued shares (excluding treasury shares). The Company does not have any outstanding share convertibles at the end of the period under review. None of the Company’s subsidiaries hold any shares in the Company at the end of the period under review. There were no sales, transfers, cancellation and/or use of subsidiary holdings as at the end of the period under review. Subsequent to the half year ended 30 September 2025, all 59,217,400 treasury shares held as at 30 September 2025 have been permanently cancelled against revenue reserve. The cancellation has no impact on the amount (in dollar terms) of issued and paid-up capital of the Company as the treasury shares were purchased out of profits of the Company. 18. Related party transactions Sale and purchase of goods and services In addition to those related party information disclosed elsewhere in the condensed interim consolidated financial statements, the following significant transactions between the Group and related parties who are not members of the Group took place at terms agreed between the parties during the period: Sale of goods Purchase of goods Service fee expense Rental expense Rental income Royalties income $'000 $'000 $'000 $'000 $'000 $'000 Half Year ended 30 Sep 25 Associates 68 (70) – – – 7 Directors and their close family members 428 – (300) – – – Directors-related companies – – (8) (239) 14 – Key management personnel and their close family members 26 (23) – (10) – – – – Half Year ended 30 Sep 24 Associates 294 (16) – – – 7 Directors and their close family members 1,855 – (300) – – – Directors-related companies – – (6) (239) 14 – Key management personnel and their close family members 9 – – (60) – –
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Page 15 of 21 G. Notes to the condensed interim consolidated financial statements For the half year ended 30 September 2025 19. Commitments The capital commitments of the Group as at 30 September 2025 are not significantly different from its capital commitments as at 31 March 2025. 20. Segment information For management purposes, the Group is organised into operating segments based on their products and services which are independently managed by the respective segment managers responsible for the performance of the respective segments under their charge. The segment managers report directly to the management of the Company who regularly reviews the segment results in order to allocate resources to the segments and to assess the segment performance. Reporting format The primary segment reporting format is determined to be geographical segments as the operating businesses are organised and managed separately according to the location of the Group’s assets, with each segment representing a strategic business unit to serve that market. Geographical segments The Group’s geographical segments are based on the location of the Group’s assets. Sales to external customers disclosed in geographical segments are based on the country of operation. Business segment The Group comprises only one business segment which is the retailing and distribution of watches and jewellery and other luxury products. All relevant information regarding the business segment has been disclosed elsewhere in the financial statements. Allocation basis and transfer pricing Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Transfer prices between geographical segments are set on an arm’s length basis in a manner similar to transactions with third parties. Segment revenue, expenses and results include transfers between geographical segments. These transfers are eliminated on consolidation.
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Page 16 of 21 G. Notes to the condensed interim consolidated financial statements For the half year ended 30 September 2025 20. Segment information (cont’d) South East AsiaNorth East& Oceania Asia Total Eliminations$'000 $'000 $'000 $'000Half Year ended 30 Sep 25Segment revenue: Sales to external customers 526,598 88,815 615,413 - 615,413 Inter-segment sales 1,414 - 1,414 (1,414) - Interest income 1,320 210 1,530 (645) 885 Other income 30,265 113 30,378 (23,931) 6,447 Revenue and other income 559,597 89,138 648,735 (25,990) 622,745 Segment results:Segment results 97,156 16,855 114,011 (19,049) 94,962 Finance costs (1)(4,110) Share of results of associates 5,723 Profit before taxation 96,575 Income tax expense (20,878) Profit for the period 75,697 Other segment information:Capital expenditure for the period 9,413 1,163 10,576 - 10,576 Depreciation and amortisation (2)21,812 4,562 26,374 - 26,374 Half Year ended 30 Sep 24Segment revenue: Sales to external customers 473,619 66,692 540,311 - 540,311 Inter-segment sales 2,539 - 2,539 (2,539) - Interest income 2,094 406 2,500 - 2,500 Other income 20,182 - 20,182 (14,220) 5,962 Revenue and other income 498,434 67,098 565,532 (16,759) 548,773 Segment results:Segment results 77,223 11,102 88,325 (10,396) 77,929 Finance costs (1)(3,892) Share of results of associates 4,599 Profit before taxation 78,636 Income tax expense (17,076) Profit for the period 61,560 Other segment information:Capital expenditure for the period 14,022 378 14,400 - 14,400 Depreciation and amortisation (2)20,062 3,572 23,634 - 23,634 (1) Includes interest on lease liabilities(2) Includes depreciation of right-of-use assetsSouth East Asia North East& Oceania Asia Total Eliminations$'000 $'000 $'000 $'00030 Sep 25Segment assets 1,078,606 164,119 1,242,725 - 1,242,725 Investment in associates 100,100 - 100,100 - 100,100 1,342,825 Segment liabilities 279,413 77,551 356,964 - 356,964 31 Mar 25Segment assets 963,675 117,781 1,081,456 - 1,081,456 Investment in associates 97,737 - 97,737 - 97,737 1,179,193 Segment liabilities 208,107 30,261 238,368 - 238,368 Group$'000 Group$'000
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Page 17 of 21 G. Notes to the condensed interim consolidated financial statements For the half year ended 30 September 2025 21. Financial assets and financial liabilities The table below summarises the financial assets and financial liabilities of the Group and Company as at 30 September 2025 and 31 March 2025. Group Company 30 Sep 25 31 Mar 25 30 Sep 25 31 Mar 25 $’000 $’000 $’000 $’000 Financial assets Trade and other receivables 36,942 41,248 15,220 20,812 Amounts due from associates 132 484 2 349 Amounts due from subsidiaries – – 7,768 9,238 Cash and bank balances 196,108 178,689 53,840 50,018 Total financial assets 233,182 220,421 76,830 80,417 Financial liabilities Trade and other payables 75,207 55,147 24,995 21,998 Loans and borrowings 86,519 54,811 40,000 – Amounts due to subsidiaries – – 3,533 3,396 Lease liabilities 159,322 97,004 50,265 53,979 Total financial liabilities 321,048 206,962 118,793 79,373 22. Fair value of assets and liabilities (a) Fair value hierarchy The Group categorises fair value measurements using a fair value hierarchy that is dependent on the valuation inputs used as follows: - Level 1 – Quoted prices (unadjusted) in active market for identical assets or liabilities that the Group can access at the measurement date, - Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, and - Level 3 – Unobservable inputs for the asset or liability. Fair value measurements that use inputs of different hierarchy levels are categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. There was no transfer between the different levels of the fair value hierarchy during the period under review.
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Page 18 of 21 G. Notes to the condensed interim consolidated financial statements For the half year ended 30 September 2025 22. Fair value of assets and liabilities (cont’d) (b) Assets and liabilities measured at fair value The following table shows an analysis of each class of assets and liabilities measured at fair value at the end of the reporting period: Group 30 Sep 25 $’000 Fair value measurements at the end of the reporting period using Quoted prices in active markets for identical instruments Significant observable inputs other than quoted prices Significant unobservable inputs Total (Level 1) (Level 2) (Level 3) Assets measured at fair value : Investment properties – – 216,382 216,382 – – 216,382 216,382 Group 31 Mar 25 $’000 Fair value measurements at the end of the reporting period using Quoted prices in active markets for identical instruments Significant observable inputs other than quoted prices Significant unobservable inputs Total (Level 1) (Level 2) (Level 3) Assets measured at fair value : Investment properties – – 217,029 217,029 Asset held for sale – – 6,998 6,998 – – 224,027 224,027 Information about the valuation techniques and significant unobservable inputs used in Level 3 fair value measurements were disclosed in the annual consolidated financial statements for the year ended 31 March 2025. (c) Fair value of financial instruments whose carrying amounts approximate their fair values Management has determined that the carrying amounts of cash and bank balances, trade and other receivables, amounts due from/(to) subsidiaries, amounts due from associates, trade and other payables and loans and borrowings, based on their notional amounts, reasonably approximate their fair values because these are mostly short term in nature or are repriced frequently.
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Page 19 of 21 G. Notes to the condensed interim consolidated financial statements For the half year ended 30 September 2025 23. Acquisition of a subsidiary On 30 April 2025, the Group’s wholly owned subsidiary, The Hour Glass Australia Pty Ltd (“THGA”) acquired 100% of the issued and paid-up share capital of THGRAU Pty Ltd (“THGRAU” and previously known as A.C.N. 685 541 851 Pty Ltd). The acquisition is in line with the Group’s strategy to continue expanding its presence in Australia and strengthen the Group’s retail footprint. The acquisition is expected to provide both an enlarged client base and operating synergies to THGA’s business. The following table summarises provisional fair values of the identifiable assets acquired and liabilities assumed at the acquisition date and the effects of the acquisition on the Group’s cash flows. $’000 Identifiable assets acquired and liabilities assumed Property, plant and equipment 4,211 Right-of-use assets 7,439 Inventories 2,455 Trade and other receivables 962 Total assets 15,067 Lease liabilities 7,439 Trade and other payables 1,155 Total liabilities 8,594 Net identifiable assets 6,473 Provisional goodwill on acquisition 68,858 Purchase consideration transferred and net cash outflow on acquisition 75,331 The initial purchase price allocation to identifiable net assets acquired is being assessed and expected to be finalised within 12 months from the acquisition date. No other intangible benefit has been recognised separately from goodwill as at 30 September 2025.
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Page 20 of 21 H. Other information required by Appendix 7.2 of the Listing Manual For the half year ended 30 September 2025 1. Whether the figures have been audited or reviewed, and in accordance with which auditing standard or practice. The condensed interim statements of financial position of The Hour Glass Limited and its subsidiaries as at 30 September 2025 and the related condensed interim consolidated income statement, condensed interim consolidated statement of comprehensive income, condensed interim statements of changes in equity and condensed interim consolidated statement of cash flows for the half year then ended and accompanying explanatory notes have not been audited nor reviewed. Where the figures have been audited or reviewed, the auditors' report (including any qualifications modifications or emphasis of a matter). Not applicable. Where the latest financial statements are subject to an adverse opinion, qualified opinion or disclaimer of opinion: (a) Updates on the efforts taken to resolve each outstanding audit issue. (b) Confirmation from the Board that the impact of all outstanding audit issues on the financial statements have been adequately disclosed. This is not required for any audit issue that is a material uncertainty relating to going concern. Not applicable. 2. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results. No forecast was previously provided for the half year ended 30 September 2025. 3. Dividend The Board of Directors has approved an interim dividend of 2.00 cents per ordinary share (2024: 2.00 cents) for the half year ended 30 September 2025, amounting to approximately $12,912,000 (2024: $12,962,000). (a) Current Financial Period Reported On Any dividend recommended for the current financial period reported on? Yes. Name of DividendInterim DividendDividend Type CashDividend amount per Ordinary Share 2.00 centsTax Rate (one-tier) tax exempt No scrip alternative will be offered for this interim dividend. (b) Corresponding Period of the Immediately Preceding Financial Year Any dividend declared for the corresponding period of the immediately preceding financial year? Yes. Name of DividendInterim Dividend (paid)Dividend Type CashDividend amount per Ordinary Share 2.00 centsTax Rate (one-tier) tax exempt
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Page 21 of 21 H. Other information required by Appendix 7.2 of the Listing Manual For the half year ended 30 September 2025 3. Dividend (cont’d) (c) Date Payable 8 December 2025 (d) Record Date 5.00 p.m. on 27 November 2025 Please refer to the Company’s announcement on Notice of Record Date for Interim Dividend dated 14 November 2025 for details on the books closure for the interim dividend. 4. If no dividend has been declared/recommended, a statement to that effect and the reason(s) for the decision. Not applicable. 5. If the Company has obtained a general mandate from shareholders for interested person transactions (“IPT mandate”), the aggregate value of such transactions as required under Rule 920 (1)(a)(ii). If no IPT mandate has been obtained, a statement to that effect. The Company does not have an IPT mandate. 6. Statement Pursuant to Rule 705(5) of the Listing Manual The Directors confirm that, to the best of their knowledge, nothing has come to the attention of the Board of Directors which may render the unaudited condensed interim consolidated financial statements of the Group and the Company (comprising the condensed interim statements of financial position, condensed interim consolidated income statement, condensed interim consolidated statement of comprehensive income, condensed interim statements of changes in equity and condensed interim consolidated statement of cash flows together with their accompanying notes) for the half year ended 30 September 2025 to be false or misleading in any material respect. Signed by Dr Henry Tay Yun Chwan and Mr Michael Tay Wee Jin on behalf of the Board of Directors. 7. Confirmation that the Company has procured undertakings from all its directors and executive officers (in the format set out in Appendix 7.7) under Rule 720(1) The Hour Glass Limited confirms that it has procured undertakings from all its directors and executive officers (in the format set out in Appendix 7.7) pursuant to Rule 720(1) of the SGX-ST Listing Manual. BY ORDER OF THE BOARD Christine Chan Company Secretary 14 November 2025