Fitness Champs Holdings Ltd Annual Report: A Simple Guide

This guide helps you understand how Fitness Champs Holdings Ltd performed this year. Use this as a quick reference to decide if this company belongs in your portfolio.

1. What does this company do?

Fitness Champs is a Singapore-based sports operator. They teach swimming, including the government-backed "SwimSafer" program, and offer private lessons. They also sell branded sports gear. Their business relies on long-term school contracts. Since 2013, they have signed over 1,042 school contracts and certified more than 191,000 students.

2. Financial performance

It was a difficult year. Revenue fell 1.6% to S$4.15 million. More importantly, the company swung from a S$172,000 profit in 2024 to a S$1.37 million loss in 2025.

The main issue is a gap between rising labor costs and slowing demand. The company pays more to keep qualified coaches, but student numbers have dropped since the post-COVID boom. As a result, their profit margin—what remains after paying coaches and fees—shrank from 36% to 27%.

3. Major wins and challenges

• International Expansion: The company is expanding into Dubai, offering lessons in residential towers to reach new markets.
• Rebranding: They nearly doubled marketing spending to S$333,000. This paid for a new logo and materials to attract more customers.
• Share Consolidation: In May 2026, the company performed a 30-for-1 reverse stock split. This combined shares to keep the price above the $1 minimum required by the Nasdaq.

4. Financial health

The company faces significant pressure. They must keep their share price above $1 to stay on the Nasdaq. Management also noted that U.S. reporting rules are a major distraction, consuming cash and pulling focus away from growing the business.

5. Key risks

• The "Normalization" Trap: The post-COVID surge in demand has ended. Business has returned to lower, normal levels.
• Government Reliance: The business depends heavily on the "SwimSafer" program. Losing this government support would hurt revenue significantly.
• "Controlled Company" Status: Founder Joyce Lee holds shares with 50 votes each. She has total control, meaning regular shareholders have almost no say in company decisions.
• Legal Hurdles: Because the company is based in the Cayman Islands, it is very difficult for U.S. investors to take legal action if governance issues arise.

6. Competitive positioning

The market is crowded and fragmented. Fitness Champs competes with many private operators and community centers. Since swimming lessons are a "nice-to-have" expense, families may cut them first if the economy struggles.

7. Leadership and strategy

• CEO: Joyce Lee Jue Hui is a veteran coach with 26 years of experience.
• Strategy: Leadership is trying to balance international growth in Dubai with the high cost of remaining a U.S. public company.

8. Future outlook

The pandemic-era backlog of students is gone. The company now faces a normal market where they must spend more on marketing just to maintain their size. Returning to profit will be a significant challenge.

Investor Takeaway: When considering this stock, weigh the company's expansion efforts in Dubai against the reality of their recent losses and the high level of control held by the founder. The shift from a post-pandemic boom to a more competitive, cost-heavy environment suggests that the company is currently in a transition phase that may require patience and close monitoring of their ability to control expenses.