VERDE RESOURCES, INC.

VERDE RESOURCES, INC. Annual Report Summary - Plain English Edition

Let’s cut through the noise and see how Verde Resources really performed this year – perfect for busy folks who want facts, not fluff.

---

1. The Big Picture: Growth vs. Costs

• Revenue jumped 30% to $65 million (up from $50M last year).
• Profits dropped to $5M (from $8M) because the company spent heavily on new projects and executive payouts.

---

2. Executive Pay: Who Got What?

• CEO Jack Wong: Still works for $0 salary and took no stock options. His pay depends 100% on company success.
• COO Eric Bava:
  • Salary: $167,554 (up 84% from last year).
  • Stock: Received 670,000 shares worth $181,235 in August 2024.
  • Total pay jumped 143% this year.
• Ex-CGO Jeremy Concannon:
  • Earned $53,538 salary + $365,175 in stock for less than a year’s work.
  • Left before receiving a second stock grant (1.35M shares) in 2025.
• Other Executives: Dr. Nam Tran, Dale Ludwig, and others got undisclosed stock grants in mid-2024.

---

3. Stock Strategy: Good News, Bad News

• Debt Cleanup: Settled over $1.1M in debt by issuing shares instead of cash (helps cash flow, hurts shareholders).
• Dilution Alert: Issued 13.7 million new shares (4.05M to Concannon + 9.65M for debt), bringing total shares to 1.26 billion.
• Big Shareholders: Relies heavily on Aegis Ventures Limited and others to settle debts, which could reduce independence.

---

4. Risks You Can’t Ignore

• CEO Dependency: If Jack Wong leaves, a major deal with Ergon could collapse.
• Dilution Trend: Shareholders’ stakes keep getting watered down to pay executives and debts.
• Executive Pay Surges: COO’s pay more than doubled, and departing execs cashed out big.

---

5. What’s Missing?

The company shared limited details about:

• Specifics on new projects funded by this year’s spending.
• Financial health metrics like cash reserves or debt levels.
• Plans to address profit declines despite revenue growth.

Less transparency = higher risk for investors.

---

Should You Invest? Key Takeaways

✅ Potential Upside: Revenue growth shows demand, CEO is financially aligned with shareholders.
⚠️ Red Flags: Plummeting profits, heavy stock dilution, questionable executive payouts.
🔍 Watch For: More details on how new projects will boost profits, and whether dilution slows.

Bottom Line: Verde is growing sales but burning profits and shareholder value. High-risk, speculative play – only for investors comfortable with volatility and limited transparency.

---

Not financial advice. Always do your own research or consult a professional before investing. 😊