Rectitude Holdings Ltd.

Analysis for Ticker: RECT

Rectitude Holdings Ltd operates a business in Singapore specializing in the wholesale and distribution of industrial safety equipment like protective clothing and footwear while expanding into green energy systems. The financial math for this company is a disaster because the people at the top are essentially using the business as a private bank account. Imagine a child who sells lemonade but takes all the money out of the jar to buy candy for themselves before paying for more lemons and then asks their friends to pay for the lemons instead. Before even asking the public for capital the two people running the entity Chairman Jian Zhang and Xu Yukai took 4,15$ million out of the accounts as dividends for themselves. They essentially sold the public an empty jar while promising it was full of lemonade. The extraction sequence began in the year 2023 when Chairman Zhang started selling goods from his own private Chinese company Zhikai International Trade to the public company. In the year 2023 the company bought 459.691$ in products from the Chairman. By 06/2024 the company went public and raised 8$ million from ordinary investors. Instead of using the cash to grow operations the company immediately took 7,68$ million of that new capital and handed it to an unnamed third party as an unsecured loan. At the same time the Chairman increased his personal sales to the company to 840.241$. They also paid 331.100$ for accounting services to a firm owned by director Ang Siew Sang.