Kandal M Venture Limited Announces Financial Results, including Higher Revenues and Gross Profits, for Full Year Fiscal Year Ended March 31, 2025

TA KHMAU, Cambodia, July 30, 2025 (GLOBE NEWSWIRE) -- Kandal M Venture Limited (Nasdaq: FMFC) (“Kandal” or the “Company”), a contract manufacturer of affordable luxury leather goods with manufacturing operations in Cambodia, today announced its financial results for its Full Year Fiscal Year Ended March 31, 2025. Recent developments: On June 26, 2025, the Company completed its initial public offering of 2,000,000 Class A ordinary shares at a public offering price of $4.00 per share. The Class A Ordinary Shares began trading on the Nasdaq Capital Market on June 25, 2025, under the symbol “FMFC.” On July 16, 2025, the Underwriter exercised its over-allotment option in full to purchase an additional 300,000 Class A ordinary shares at the public offering price of $4.00 per share, resulting in additional gross proceeds of $1.2 million, before deducting underwriting discounts and other related expenses. After giving effect to the full exercise of the over-allotment option, the total number of Class A ordinary shares sold by the Company in the Offering has increased to 2,300,000 Class A ordinary shares and the gross proceeds increased to $9.2 million, before deducting underwriting discounts and other related expenses. The over-allotment option closing date was July 16, 2025. Management Commentary “We are pleased that we completed our IPO on Nasdaq on June 25 of this year as our company enters a new phase of growth and increased global recognition,” said Mr. Duncan Miao, Director and Chairman of the Board of Kandal. “Looking ahead, we have exciting developments that we will announce as we expand our global presence and enhance our production, design and development capabilities.” Revenue For the years ended March 31, 2025 and 2024, revenue was generated primarily from handbags sales. Revenue increased by US$3,214,934 or approximately 23.0%, from US$13,971,743 for the year ended March 31, 2024 to US$17,186,677 for the year ended March 31, 2025. This increase reflects ongoing business growth and the sustained recovery of the global handbag market following the pandemic. Sales volumes rose across all existing customer accounts. Cost of sales Cost of sales primarily comprises raw material costs, direct labor costs and factory overheads. Cost of sales increased by US$3,224,831 or approximately 30.4%%, from US$10,604,640, for the year ended March 31, 2024 to US$13,829,471 for the year ended March 31, 2025. Gross profit and gross profit margin Gross profit decreased by US$9,897 or approximately 0.3%, from US$3,367,103, for the year ended March 31, 2024 to US$3,357,206 for the year ended March 31, 2025. The gross profit margin decreased by approximately 4.6 percentage points, from approximately 24.1% for the year ended March 31, 2024 to approximately 19.5% for the year ended March 31, 2025. This reduction was mainly due to shift in product mix, additional production supervisors and quality control personnel, lower efficiency from production of new designs, as well as higher indirect material costs and overheads. Selling and distribution expenses Selling and distribution expenses included export expenses, trucking costs and customs clearance fees. These expenses remained relatively stable at US$239,013 and US$304,406, amounting to approximately 1.7% and approximately 1.8% of revenue, for the years ended March 31, 2024 and 2025, respectively. Professional services fees The Company’s professional services fees consist mainly of fees paid to external lawyers and consultants. Professional services fees increased by US$822,461 or approximately 1,094.5% from US$75,147 for the year ended March 31, 2024 to US$897,608 for the year ended March 31, 2025, which was primarily due to one off IPO fees, financial advisor fees, legal fees, and audit fees during the year. Cash generated from operating activities Cash inflow from operating activities was principally from receipt of sales. Cash outflow used in operating activities was principally for payment of purchases of raw materials, staff costs and other operating expenses. For the year ended March 31, 2025, the Company had net cash generated from operating activities of US$2,134,565 mainly arising from net profit from operations of US$228,954, as adjusted for non-cash items and changes in operating assets and liabilities. Adjustments for non-cash items primarily consisted of (i) depreciation of property, plant and equipment of US$193,626; (ii) depreciation of right-of-use assets of US$69,241; (iii) write down of inventories of US$8,879; (iv) interest expenses of US$595,421; (v) interest income from loan to related party of US$370,705; (vi) provision for expected credit loss on VAT refundable of US$71,188; and (vii) write-off of VAT refundable of US$35,120. Changes in operating assets and liabilities mainly include (i) the increase in trade and other receivables of US$659,095; (ii) the decrease in inventories of US$147,511; and (iii) the increase in trade and other payables of US$1,958,462. Net income Consequently, net income decreased by US$909,859 or approximately 81.3% from US$1,119,532 for the year ended March 31, 2024 to US$209,673 for the year ended March 31, 2025, mainly due to the increased cost of goods sold, and one-off IPO expenses incurred during the year ended March 31, 2025. About Kandal M Venture Limited Kandal M Venture Limited is a contract manufacturer of affordable luxury leather goods with its manufacturing operations in Cambodia. Kandal M Venture Limited primarily manufactures handbags, such as shoulder bags, crossbody bags, tote bags, backpacks, top-handle handbags, satchels, and other smaller leather goods, such as wallets. For more information, please visit the Company’s website at www.kandalmv.com. Forward-Looking Statements Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. The Company cautions investors that actual results may differ materially from the anticipated results, and encourages investors to read the risk factors contained in the Company’s final prospectus and other reports it files with the SEC before making any investment decisions regarding the Company’s securities. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Contacts: Company:Kandal M Venture Limited Investor Relations Contact:Padachi Village, Prek Ho Commune, Takhmao Town, Kandal Province,Kingdom of CambodiaEmail: enquiry@fmfco.com.khTelephone: +855 23425205 Investor Relations Contact:Skyline Corporate Communications Group, LLCScott Powell, President1177 Avenue of the Americas, 5th FloorNew York, New York 10036Office: +1 (646) 893-5835 x2Email: info@skylineccg.comWebsite: www.skylineccg.com FINANCIAL STATEMENTS KANDAL M VENTURE LIMITEDCONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME March 31,2024 March 31,2025 US$ US$ Revenue 13,971,743 17,186,677 Cost of sales (10,604,640) (13,829,471)Gross profit 3,367,103 3,357,206 Operating expenses: Selling and distribution expenses (239,013) (304,406)General and administrative expenses (1,646,043) (2,677,883)Income from operations 1,482,047 374,917 Other income/(expenses): Interest expense (403,723) (582,013)Other income 219,309 436,050 Profit before income tax 1,297,633 228,954 Income tax expense (178,101) (19,281)Profit for the year 1,119,532 209,673 Other comprehensive income: Items that may be classified subsequently to profit or loss Exchange differences on translating foreign operations (313) — Total comprehensive income attributable to equity owners of the Company 1,119,219 209,673 Earnings per share attributable to owners of the Company Basic and diluted earnings per share 0.07 0.01 Weighted average number of ordinary shares used in computing basic and diluted earnings* 16,000,000 16,000,000 KANDAL M VENTURE LIMITEDCONSOLIDATED STATEMENTS OF FINANCIAL POSITION March 31,2024 March 31,2025 US$ US$ ASSETS Non-current assets Property, plant and equipment 689,517 512,601 Right-of-use assets 207,724 138,483 Deferred tax assets 13,629 29,787 Total non-current assets 910,870 680,871 Current assets Inventories 1,802,723 1,646,333 Trade and other receivables 945,030 1,497,817 Deferred initial public offering (“IPO”) costs 230,642 795,771 Amounts due from related parties 2,053,318 1,053,708 Loans to related parties 4,001,174 4,291,215 Cash and bank balances 235,348 102,697 Total current assets 9,268,235 9,387,541 Total assets 10,179,105 10,068,412 EQUITY AND LIABILITIES Equity attributable to owners of the Company Share capital* 160 160 Merger reserve 13 13 Capital reserve (2,500,000) (2,500,000)Foreign currency translation reserve 5,130 5,130 Retained earnings 2,663,128 2,872,801 Total (deficit) equity 168,431 378,104 Non-current liabilities Lease liabilities 168,549 87,632 Borrowings 4,360,385 — Total non-current liabilities 4,528,934 87,632 Current liabilities Trade and other payables 2,466,368 4,424,830 Lease liabilities 74,715 80,916 Borrowings 2,823,729 5,088,600 Income tax payable 116,928 8,330 Total current liabilities 5,481,740 9,602,676 Total liabilities 10,010,674 9,690,308 Total equity and liabilities 10,179,105 10,068,412 KANDAL M VENTURE LIMITEDCONSOLIDATED STATEMENTS OF CASH FLOWS March 31,2024 March 31,2025 US$ US$ Cash flows from operating activities Profit before income tax 1,297,633 228,954 Adjustments for: Depreciation of property, plant and equipment 198,360 193,626 Depreciation of right-of-use assets 69,241 69,241 Interest expense 421,713 595,421 Interest income from loan to related party (165,368) (370,705)Inventories write-down 65,770 8,879 Provision for expected credit losses – other receivables 11,532 71,188 Other receivables written off — 35,120 Operating cash flows before working capital changes 1,898,881 831,724 Changes in working capital: Inventories 1,519,269 147,511 Trade and other receivables (112,572) (659,095)Trade and other payables (43,699) 1,958,462 Cash generated from operations 3,261,879 2,278,602 Income tax paid (123,111) (144,037)Net cash generated from operating activities 3,138,768 2,134,565 Cash flows from investing activities Purchase of plant and equipment (22,972) (16,710)Deferred initial public offering (“IPO”) costs (230,642) (565,129)Net cash used in investing activities (253,614) (581,839) Cash flows from financing activities (Loans to)/repayment from related parties (3,783,461) 80,664 (Advances to)/repayments from related parties, net (5,110,245) 999,610 Proceeds from/(Repayments of) borrowings, net 6,373,131 (2,095,514)Interest paid on borrowings (399,226) (578,660)Payment of lease liabilities (68,989) (74,716)Interest paid on lease liabilities (22,487) (16,761)Net cash used in financing activities (3,011,277) (1,685,377) Net change in cash and cash equivalents (126,123) (132,651)Cash and cash equivalents at beginning of year 361,471 235,348 Cash and cash equivalents at end of year 235,348 102,697

Kandal M Venture Limited Announces Financial Results, including Higher Revenues and Gross Profits, for Full Year Fiscal Year Ended March 31, 2025

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