Lion Asiapac’s September Quarter Used S$1.1 Million in Operating Cash: Why There Is No Dividend

Lion Asiapac Limited (SGX: BAZ) declared no dividend for the quarter ended 30 September 2026. In its unaudited results announced on 30 October, the company said it needed to conserve cash for future operations. The decision follows a quarter in which sales fell and operating activities used cash. [S1, p. 1] [S1, p. 3] [S1, p. 8] [S1, p. 25] [S1, p. 26]

That makes cash generation the question for shareholders. The existing FY2026 analysis covered the annual dividend decision and the audited cash-flow adjustment; this new quarter shows how the remaining businesses performed after that year-end. [S1, p. 3] [S1, p. 8]

Sales fell, but the group stayed just profitable

Quarterly revenue was S$4.125 million, down from S$8.036 million a year earlier. The company attributed the decline mainly to fewer trading orders and reduced supply of roofing solutions. Roofing accounted for S$4.035 million of this quarter’s revenue, while trading contributed S$90,000. [S1, p. 3] [S1, p. 12] [S1, p. 23]

The group reported S$16,000 of profit after tax, compared with S$221,000 from continuing operations in the year-earlier quarter. That comparison needs care: the prior quarter also included a S$7.560 million loss from discontinued operations following the disposal of Compact Energy. The current quarter’s small profit therefore says more about the remaining businesses than a comparison with last year’s overall loss would. [S1, p. 3] [S1, p. 16]

Cash flow gives a more cautious picture

Operating activities used S$1.121 million of cash this quarter. The cash-flow statement shows S$1.484 million flowing out through the trade and other payables movement, partly offset by reductions in inventories and contract assets. Management likewise pointed to payments to suppliers as the main reason for the operating cash outflow. [S1, p. 8] [S1, p. 24]

The group drew S$3.353 million of borrowings and repaid S$2.761 million. It also paid S$59,000 of interest, which the statement classifies under financing activities. Those flows helped limit the quarter’s decline in cash, but borrowing is not a substitute for cash consistently generated by operations. Bank borrowings stood at S$4.629 million at 30 September, up from S$4.105 million at June’s year-end; management said additional short-term facilities supported roofing working capital. [S1, p. 5] [S1, p. 8] [S1, p. 21] [S1, p. 24]

What the cash balance can—and cannot—tell shareholders

The group reported S$45.800 million of cash and cash equivalents on its balance sheet. Its cash-flow statement showed S$15.167 million after excluding S$28.258 million subject to foreign-exchange controls in China and S$2.375 million of deposits pledged for bank facilities. These categories matter when considering how readily group cash could support a payout. [S1, p. 20]

The listed parent’s own cash balance was S$3.847 million, down from S$3.895 million at 30 June. Its retained earnings also fell from S$5.708 million to S$5.418 million. Neither the large group cash headline nor the small quarterly group profit, on its own, establishes capacity for a parent-company dividend. [S1, p. 5] [S1, p. 7]

For now, the answer is clear: no September-quarter dividend was declared, and the company cited a need to conserve cash. The next useful evidence is whether the remaining businesses turn sales into operating cash without further reliance on short-term borrowing. [S1, p. 8] [S1, p. 24] [S1, p. 25]