Our two business segments are complementary but generate revenue in different ways. The EDM segment provides end-to-end event solutions, covering areas such as event conceptualisation, planning, production, logistics and on-site execution. Revenue is generally recognised when the relevant event or service has been delivered. These projects tend to have shorter execution cycles.

The D&B segment, on the other hand, undertakes projects involving the design, fabrication, construction and installation of temporary or permanent structures and other built environments. These projects are typically larger and have longer execution periods, with revenue recognised progressively as the work is performed.

Having both capabilities allows Kin Global to offer clients a more integrated solution. Rather than being engaged only for a particular part of a project, we can potentially support clients from concept and design through construction, production and final event delivery. This broadens the scope of work that the Group can undertake and also creates opportunities for cross-selling between the two segments.

D&B is also a relatively new capability for the Group, which we started building in 2024. While still at an early stage of development, we believe having both EDM and D&B capabilities positions us to pursue a broader range of opportunities and undertake larger and more integrated projects over time.

D&B projects are generally longer-term in nature, with revenue recognised over time based on the progress of each project. As a result, the timing of project awards, commencement of work and stage of completion at each reporting date can have a significant impact on the amount of revenue recognised in a particular period. Larger D&B projects also typically have a longer lead time, from tender and award through to project commencement and execution, before translating into revenue recognition.

For example, 1H2025 benefited from substantial work performed on several large-scale D&B projects, which were subsequently completed in FY2025. In comparison, fewer D&B projects were at significant stages of execution during 1H2026. The year-on-year decline should therefore be viewed in the context of the project-based nature and timing of the business, rather than as a direct indication of the underlying capabilities of the D&B segment.

This timing effect is currently more pronounced because D&B remains a relatively young business within the Group, having only been established in 2024. At this stage of development, the timing and progress of individual large projects can have a more significant impact on the segment’s performance in any reporting period. Since our listing in April 2026, Kin Global’s listing status has strengthened our profile and credibility when engaging larger customers and pursuing larger-scale opportunities, supporting our efforts to broaden the D&B project base over time.

As the segment develops, our focus is on building scale progressively, broadening the range of customers and projects we undertake and maintain discipline in project selection and execution. While revenue contribution will continue to depend on the timing and progress of individual projects, a broader project base should support a more balanced contribution from the D&B segment over time.

The improvement in gross profit margin was mainly attributable to our continued project cost optimisation initiatives, including more disciplined procurement and cost management practices. These initiatives contributed to improved project margins across both our EDM and D&B segments.

The Group's overall margin also benefited from the revenue mix during the period, with EDM accounting for a larger proportion of Group revenue in 1H2026.

Despite the substantial reduction in revenue, we were able to maintain positive Adjusted PATMI after excluding non-recurring IPO-related expenses. We believe this reflects the importance of maintaining discipline in project selection, procurement and cost management, even as we continue to grow the business.

For D&B, as mentioned earlier, this remains a relatively young business for the Group and we are still building scale. As we grow the business, our focus will be on pursuing projects selectively and maintaining appropriate project economics rather than simply growing revenue.

While the improvement in gross profit margin is encouraging, the margin achieved in 1H2026 may not be representative of every reporting period, as margins will continue to be influenced by the mix, size and nature of projects undertaken. Over the longer term, our focus is on maintaining disciplined project selection, pricing and cost management while continuing to grow the business.

Historically, a meaningful portion of our revenue has been project-based, which means performance can vary depending on when larger projects are awarded and executed.

Building a stronger base of recurring and multi-year engagements can provide greater visibility over future activity and create a more stable underlying revenue base. It can also strengthen long-term customer relationships and potentially create opportunities for Kin Global to provide a broader range of services to the same customers over time.

Our intention is not necessarily to move away from large one-off projects, which can continue to be an important contributor to the Group. Rather, we aim to develop a more balanced portfolio, where recurring and multi-year engagements provide a stronger base while larger projects provide additional growth opportunities.

Over time, such a mix could reduce the extent to which the Group's performance is dependent on the timing of any single major project.

Customer concentration in FY2025 was partly a reflection of the size and scale of certain major projects undertaken during the year.

As we grow, we are seeking to diversify the business across a broader range of customers, projects and revenue streams. This includes expanding relationships with existing customers, developing new customer relationships, pursuing opportunities across both EDM and D&B, and building recurring and multi-year engagements.

Our move into areas such as sports and IP-led events also provides another avenue to diversify our revenue sources beyond traditional client-led projects.

That said, given the nature of our industry, large projects may continue to result in some level of customer concentration in individual reporting periods. Our longer-term objective is therefore to broaden the overall portfolio so that the Group becomes progressively less dependent on any single customer or project.

Under our traditional EDM model, Kin Global is primarily a service provider. We are engaged by a client to deliver an event and earn revenue based on the services provided.

When we take on the role of a promoter or organiser, the economics are different. Instead of earning primarily a service fee, we may participate in a broader range of revenue streams associated with the event, which could include sponsorships, ticketing, hospitality, partnerships and other commercial rights, depending on the structure of the event.

The PPA Asia 500 Singapore Open is an example of how we are seeking to move further up the value chain and develop capabilities beyond pure event execution. By taking a larger role, we can participate more directly in the commercial performance of the event. Where an event can be held on a recurring basis or developed into a repeatable event property, it may also create longer-term value beyond a single edition.

At the same time, this model has a different risk-and-return profile from our traditional service-based work. As promoter or organiser, Kin Global may commit more resources upfront, while commercial returns depends on factors such as sponsorship acquisition, ticket demand, marketing effectiveness and overall event economics.

We therefore intend to approach such opportunities selectively, taking into account the strength of the event concept, the credibility of our partners, expected market demand and the overall commercial viability. We also seek to manage the exposure through early commercial planning, discipline budgeting and cost control. This is not to replace our core service-based business, but to complement it with selected event properties where we believe the potential returns justify the additional responsibilities involved.

We are focused on the deployment of our IPO proceeds in areas that can strengthen Kin Global's existing capabilities, expand our addressable market or create new and complementary revenue streams.

We are particularly interested in opportunities that complement our EDM and D&B businesses, strengthen our ability to execute projects internally, provide access to new customers or markets, or allow us to participate in areas with longer-term growth potential. These may include businesses or partnerships that strengthen our existing capabilities or add new complementary capabilities to the Group. Ultimately, each opportunity will be assessed on its strategic and financial merits.

Importantly, we do not view acquisitions simply as a way to increase revenue. We would consider factors such as strategic fit, profitability and cash generation, management quality, valuation, integration potential and the opportunity for synergies with Kin Global's existing business.

Ultimately, our focus is on deploying capital prudently into opportunities where we believe Kin Global can add value and where the investment can support the Group's longer-term growth, while maintaining appropriate financial discipline.

Explore more on Kin Global Limited Website: https://www.kin.net/