Dasmond Koh’s NoonTalk Media defends strategy amid going concern warning
The group has incurred three consecutive years of losses since its listing in November 2022
[SINGAPORE] NoonTalk Media defended its business strategy and cost controls in a bourse filing released on Singapore Exchange (SGX) on Monday (Oct 27) after its independent auditors flagged a “material uncertainty related to going concern” earlier this month.
Addressing questions from the Securities Investors Association (Singapore), or Sias, the Catalist-listed media production company outlined its plans to achieve profitability, which hinge on new ventures such as an international film awards show and a push into micro-dramas.
The auditor’s warning, dated Oct 16, was issued in light of NoonTalk’s financial statements for the financial year ended Jun 30, 2025. The group incurred a net loss of S$1.8 million for the year and net operating cash outflows of S$0.9 million.
This marks the third consecutive year of losses since its listing in November 2022. As at Jun 30, 2025, the group’s accumulated losses have reached S$9.2 million, and it has fallen into a net liability position of S$396,881.
Questioning the board’s effectiveness
Sias questioned how the board has exercised its oversight duties, given the persistent losses and net liability position.
NoonTalk’s board responded that it has “actively engaged with key management” on cost optimisation, which it said led to reduced losses and improved revenue. The group’s revenue increased to S$6.3 million in FY2025 from S$4.4 million in the prior year, while losses narrowed from S$3.8 million in FY2024.
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Despite the auditor’s warning, the board also maintained that its going concern assumption remains appropriate, citing cash balances, better cash flows, and the S$2 million interest-free, unsecured loan from ex-DJ and CEO Dasmond Koh.
NoonTalk said that it expects its projects, such as The Golden Singa Awards – an annual international Chinese-language film awards show – to “ensure a steady cash flow” as it develops, though it anticipates the project will contribute value “over the medium term rather than immediately”.
The company is also “actively seeking and assessing key management candidates” to strengthen its leadership team.
Potential inefficiencies in cost structure
The group incurred S$5.76 million in total cost of sales for FY2025.
Sias highlighted that the group’s administrative expenses, at S$2.27 million, significantly exceeded its gross profit of S$493,085, indicating potential inefficiencies.
In response to a request for a breakdown of the cost of sales, NoonTalk revealed a sharp spike in subcontracting costs, which nearly doubled to S$4 million from S$2.2 million in FY2024.
This offset savings from the group’s reduction in staff costs, which fell to S$1.7 million from S$2.1 million.
NoonTalk pointed out that it has “optimised” its staffing over the past three years, shifting towards contract and project-based roles. This has reduced its headcount from over 61 to around 40.
The group’s corporate expenses saw a decline, dropping to S$1.5 million from S$1.95 million in the previous year.
When asked if the board has worked with management to implement a structured cost transformation plan, they responded that “significant cost savings are expected to materialise in FY2026, with rental expenses being a major contributor to the reduction”.
New ventures and financing
Sias questioned the group’s new strategic pivots, including the Golden Singa Awards and a focus on “micro-dramas”.
NoonTalk described the micro-drama projects as a “vital and strategically aligned growth area” to tap the nascent local digital content market. It argued that its “extensive artiste network and comprehensive in-house production capabilities” give it an edge over smaller independent studios.
When asked about potential equity financing, such as a rights issue, and the risk of diluting minority shareholders, the board’s response was non-committal.
It stated it is “actively exploring a range of financing options”, and that while equity financing is a “common and viable option under consideration”, it is also reviewing “alternative instruments”. The board added that it is committed to “selecting financing solutions that balance shareholder interests”.
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