Dear Valued Shareholders,

On behalf of the Board of Directors (the “Board”), we are pleased to present the Annual Report for Polaris Ltd. (the “Company” and together with its subsidiaries, the “Group”) for the financial year ended 31 December 2024 (“FY2024”).

DEVELOPMENTS IN FY2024

In 2024, Singapore’s economy grew by 4.4%, an increase from a revised growth rate of 1.8% in the previous year. The Group recorded a modest rise in overall revenue, driven primarily by the continued expansion of its pre-loved luxury goods business and supported by growth in three of its four operating segments.

Building upon the momentum established in 2023, the Group’s pre-loved luxury goods business saw continued growth throughout 2024. With a presence in Indonesia, Korea,
the Philippines, South Africa, Thailand, and Singapore, this expansion was driven by the Group’s growing retail sourcing network.

The consumer electronics business faced a significant downturn, driven by heightened competition and a shorter-than-usual market expansion period during the new product launches. Customer services experienced moderate growth over the year; however, operations were discontinued in the second half of 2024 following a key business partner’s transition of services in-house. The Company successfully concluded its customer service business on a positive note, achieving increased profitability and ensuring a smooth handover process. Starting from a low initial base, the green protein business achieved growth in FY2024, with production and business processes continuing to evolve and improve.

FINANCIAL REVIEW

For FY2024, the Group recorded revenue of S$23.5 million, marking a 6% increase compared to S$22.1 million in the previous financial year ended 31 December 2023 (“FY2023”).

As mentioned earlier, this growth was primarily driven by the expansion of the pre-loved luxury goods segment, which recorded a 58% increase in turnover, rising from S$8.9 million in FY2023 to S$14.1 million in FY2024. The customer services segment also saw a 5% increase, rising from S$698,000 in FY2023 to S$731,000 in FY2024. Meanwhile, the green protein segment, which commenced operations in 2023, grew to S$0.2 million.

In contrast, the consumer electronics segment experienced a significant decline due to changing market conditions, with turnover decreasing from S$12.4 million in FY2023 to S$8.5 million in FY2024.

The Group reported a net loss of S$2.1 million in FY2024, representing an improvement from the net loss of S$2.3 million recorded in FY2023. This reduction was primarily attributable to decreased losses in both the corporate and pre-loved luxury goods segment. The corporate segment benefited from reduced operating expenses, while the pre-loved luxury goods segment saw strong revenue growth despite remaining loss-making. Additionally, the customer services segment contributed positively to the overall result, having recorded increased profitability during the year.

Cash and bank balances decreased from S$2.4 million as of 31 December 2023 to S$0.8 million as of 31 December 2024. This was primarily due to operating losses, an increase in receivables and intangible assets, loan repayments, and the acquisition of property, plant, and equipment. The Group did not take out any new loans in FY2024.

CORPORATE SOCIAL RESPONSIBILITY

Building on our previous years’ efforts, we continue to assess the environmental, social, and governance (“ESG”) matters relevant to our Group, reinforcing our commitment as responsible corporate citizens. Our focus remains on aligning business practices with sustainability objectives while making a positive impact on both the planet and our communities. In this year’s sustainability report, we have further expanded our coverage to reflect the progress and growth of our ESG initiatives.

Looking ahead, we are deepening our commitment to sustainability by expanding our efforts beyond Singapore, reflecting our growing presence in Indonesia and the Philippines. As part of this ongoing progress, we are beginning to track sustainability initiatives across these markets to ensure a more comprehensive approach. Additionally, with the release of International Sustainability Disclosure Standards by the International Sustainability Standards Board (“ISSB”), we have incorporated IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2: Climate-related Disclosures into our business operations and reporting. Achieving meaningful change requires collaboration, and we look forward to working alongside our employees, shareholders, and business partners to drive sustainable progress.

LOOKING AHEAD

The Group remains committed to sustainability and the circular economy, focusing on growing businesses that create a positive environmental impact while supporting the transition of existing industries toward more sustainable practices. Key initiatives in this space include the Group’s pre-loved luxury goods re-commerce business, the green protein business, and, previously, the customer services business, which has since been discontinued. These initiatives form the foundation of the Group’s sustainability strategy. In 2024, revenue from these activities grew significantly, contributing 64% of total revenue, up from 44% in 2023. This reflects the Group’s continued progress in advancing sustainable business models.

As the global market for pre-loved luxury goods becomes increasingly competitive, the Group remains confident in its ability to capture growth opportunities within its targeted markets and retail sourcing business model. Leveraging the insights and market intelligence gathered to date, the Group will prioritize same-store growth while also expanding through the opening of new stores in 2025. Additionally, the Group has entered the Thai market, marking a strategic step toward supporting its long-term growth objectives.

As the green protein business enters 2025, its focus will be on refining operations and identifying promising customer segments and markets. Additionally, efforts are underway to enhance shipping logistics in recognition of their importance in supporting overall operational efficiency.

Following a challenging 2024, the consumer electronics business is rebalancing its product portfolio with the aim of driving higher sales and profitability. As part of this strategy, the Company is expanding into the purchase and resale of coffee machines, leveraging its prior experience in this market.

WORDS OF APPRECIATION

We would like to express our sincere gratitude to Mr Carl Johan Pontus Soennerstedt for his invaluable contributions and guidance during his tenure as the Chief Executive Officer (“CEO”) of the Company. We also extend a warm welcome to our new CEO, Ms Dian Stefani Sugialam. Our deep appreciation goes to the Board of Directors and our dedicated staff for their unwavering commitment and hard work. Furthermore, we are grateful to our shareholders, business partners, customers, and service professionals for their continued trust and support. Together, we remain focused on building a sustainable future.

 

Sugiono Wiyono Sugialam
Executive Director

Dian Stefani Sugialam
Chief Executive Officer