Fu-Wang Ceramic financial analysis: Finance Expenses BDT 183.6m, Operating Profit BDT 225.7m, debt 4.6x equity (Oct 2026)

Investment considerations: turnover up 82% since FY2019, profit after tax down 82%, borrowings 4.6x equity

Fu-Wang Ceramic Industry Ltd. makes floor tiles and glazed wall tiles at two units in Hotapara, Gazipur. The company was incorporated on 31 May 1995, converted to a public limited company in 1998 [1 p.47], began commercial production in October 1996 and listed on the Dhaka and Chittagong exchanges in May 1998 [1 p.4]. It has no subsidiaries, and every figure here is a company figure. The financial year ends on 30 June. The latest annual report in our corpus is FY2025 (year to 30-Jun-2025), signed by the auditor on 4-Nov-2025 [1 p.42]. The latest interim is the nine months to 31-Mar-2026 [4 p.3]. The FY2026 annual results had not been announced on DSE at 1-Nov-2026 [8], and the FY2026 accounts are not in the corpus at 1-Nov-2026.

Turnover rose and profit fell over FY2019-FY2025. Turnover net of supplementary duty (SD) and VAT grew from BDT 595.2m in FY2019 to BDT 1,080.3m in FY2025, a compound rate of 10.4% a year (derived) [3 p.4] [1 p.4] [12]. Over the same years profit after tax went from BDT 80.8m to BDT 14.3m and EPS from BDT 0.59 to BDT 0.11 [3 p.4] [1 p.4]. Gross margin was 37.9% in FY2019, the highest of the seven years, and 26.2% in FY2025 [12]. Three lines sit between gross profit and net profit: electricity and gas inside cost of goods sold, finance expenses on borrowings that reached BDT 6,642.9m at June 2025, and an income tax charge of BDT 53.1m on a pre-tax profit of BDT 67.5m [1 p.43] [1 p.44] [1 p.69].

Business: one product line, tiles, sold through 105 dealers from a 40m sft plant running at 65%

What Fu-Wang sells. The company 'is engaged in manufacturing and marketing of various types and sizes of Floor Tiles and Glazed Wall Tiles' and 'owns and operates two industrial units' [1 p.47]. The directors state that it produces 'tiles only. So there is no segment-wise product' [1 p.12]. The finished-goods note lists thirteen product lines at June 2025, from glazed wall tiles and glazed digital wall tiles to homogeneous, mirror-glaze and mirror-polish floor tiles [1 p.57]. In FY2025 the company added 51 new designs, 24 in wall tiles and 27 in floor tiles, and it sells nano-crystal polished tiles under the 'PICASSO' brand, introduced in 2024 [1 p.8].

How it sells. All turnover is local: the turnover note has one line, 'Local Sales', of BDT 1,428.7m gross in FY2025, from which BDT 348.4m of SD and VAT is deducted to reach turnover of BDT 1,080.3m [1 p.69]. Sales go through 105 dealers across the country [1 p.18], and the dealer receivables are split by Dhaka city, Sylhet division, Chittagong city and other divisions [1 p.58]. Commission to dealers was BDT 18.1m in FY2025 against BDT 27.7m in FY2024 [1 p.70]. The company also runs a sales centre at Hatirpool, Dhaka, with rent of BDT 3.9m in FY2025 [1 p.70].

Capacity and volume. Capacity is 40 million sft a year, 'calculated at 100% efficiency based on 3 shifts of 8 hours in a day' [1 p.47]. The FY2023 report prints that the company 'has utilized its 62% yearly production capacity' [3 p.44]. Actual production was 28.60m sft in FY2024 (72%) and 26.14m sft in FY2025 (65%) [2 p.72] [1 p.74]. Turnover per sft produced, a derived measure that mixes sales and production volumes, was BDT 37.69 in FY2024 and BDT 41.33 in FY2025 [12]. The company does not print sales volume in sft. The finished-tile stock at June 2025 was 4.48m sft valued at BDT 211.1m [1 p.57].

Raw materials and the clay mine. Of BDT 772.6m bought in FY2025, BDT 769.8m was imported and BDT 2.8m local [1 p.74]. The directors write that 'The Government has relaxed a little bit the embargo on extracting clay from our leasehold mine' and that 'as per Hon'ble High Court's order, we are extracting clay from our own mine' [1 p.7]. The raw-material stock note lists 94,642.63 tonnes of imported materials at June 2025, including 63,062.52 tonnes of plastic clay valued at BDT 645.5m and 19,957.76 tonnes of soda feldspar at BDT 445.6m [1 p.57].

Ownership. Directors and sponsors held 40,876,546 shares (30.00%) at June 2025, institutions 5.22%, foreigners 0.40% and the general public 64.38% [1 p.62]. The largest named holding is 13,650,384 shares (10.02%) held by Mr. Alexander Lee, nominee of Mr. Hsu Chin Hua, listed as a sponsor; Mr. Hsu Chin Hua holds a further 3,712,217 shares (2.72%) [1 p.16]. The same table prints 'Nil' against 'Share Holding 10% or more shares' [1 p.16].

Line items: electricity and gas BDT 398.2m, Finance Expenses BDT 183.6m and Operating Profit BDT 225.7m in FY2025

Turnover. Gross local sales were BDT 1,204.9m in FY2023, BDT 1,425.8m in FY2024 and BDT 1,428.7m in FY2025, and SD and VAT took 24.4%, 24.4% and 24.4% of the gross figure [2 p.67] [1 p.69] [12]. Turnover grew 18.3% in FY2024 and 0.2% in FY2025 [12]. The directors attribute FY2025 turnover to 'hard working and adopting marketing & sales policy' [1 p.18]. In the nine months to March 2026 turnover fell to BDT 634.7m from BDT 778.2m, and the company gives 'decrease in Turnover' as the reason for lower EPS [4 p.3] [4 p.1].

Cost of goods sold. The largest cost line is electricity and gas, booked in direct expenses: BDT 257.3m in FY2023, BDT 413.5m in FY2024 and BDT 398.2m in FY2025, equal to 28.2%, 38.4% and 36.9% of turnover [2 p.67] [1 p.69] [12]. Per sft produced this was BDT 14.46 in FY2024 and BDT 15.23 in FY2025 (derived) [12]. The company says it 'is self sufficient in generating power by its own generators' and that 'in case of gas shortfall and subsequent rationing if any, then the productivity will be reduced' [1 p.14]. Raw materials consumed were BDT 228.4m, BDT 298.8m and BDT 235.6m in FY2023-FY2025 (25.1%, 27.7% and 21.8% of turnover) [12]. Factory overheads rose from BDT 122.9m to BDT 160.3m in FY2025, within which depreciation went from BDT 66.5m to BDT 103.6m [1 p.69]. The FY2023 auditor noted that the company 'had adjust foreign exchange gain/loss with purchase value of raw material instead of showing foreign exchange gain/loss separately' [3 p.35]; FY2024 and FY2025 show a foreign exchange loss inside finance expenses (BDT 8.3m and BDT 0.3m) [1 p.71].

Operating expenses. Administrative expenses were BDT 26.7m and selling and distribution expenses BDT 28.3m in FY2025, together 5.1% of turnover against 7.3% in FY2023 [1 p.70] [12]. Dealer commission went from BDT 27.7m to BDT 18.1m and carriage outward from BDT 6.8m to BDT 4.8m [1 p.70]. Advertisement spend was BDT 0.15m [1 p.70]. The chief executive officer, Mr. Rafiquzzaman Bhuiyan, was paid BDT 7.9m in FY2025 against BDT 6.5m in FY2024 [1 p.74].

Finance expenses. Finance expenses were BDT 157.7m in FY2023, BDT 153.1m in FY2024 and BDT 183.6m in FY2025, of which interest against loans BDT 152.6m, BDT 139.0m and BDT 177.4m [2 p.69] [1 p.71]. Printed operating profit covered finance expenses 1.23x, 1.21x and 1.23x in those years, and 1.00x in the nine months to March 2026 [12]. All the term loans in note 12 carry an interest rate of 15.00% [1 p.63] [1 p.65]. Finance income, almost all interest on FDRs, was BDT 28.8m in FY2025 [1 p.71]. The long-term loan note also adds 'Bank interest' of BDT 111.4m and 'Interest on Capital Assets' of BDT 432.4m to the loan balance in FY2025 [1 p.63]. The filings do not say how much interest was capitalised into property, plant and equipment.

Tax. The FY2025 income tax expense was BDT 53.1m on a profit before tax of BDT 67.5m (78.8%): current tax BDT 28.0m and deferred tax BDT 25.1m [1 p.71]. Current tax is the highest of three bases. Tax on regular-rate taxable income is negative (taxable income BDT -44.1m after tax depreciation of BDT 218.2m), minimum tax at 1% of gross receipts is BDT 11.1m, and advance income tax deducted at source is BDT 28.0m, which the company takes as the charge [1 p.71]. Advance income tax paid and not yet adjusted stood at BDT 350.6m at June 2025 [1 p.59]. The auditor's second emphasis of matter notes that for the BDT 79.9m provision for income tax 'no Tax Assessment status were disclosed' [1 p.38].

FY2026 to date: nine-month EPS of BDT 0.01 and a loss in January-March 2026

The nine months to March 2026. Turnover was BDT 634.7m against BDT 778.2m a year earlier, and the January-March quarter fell to BDT 188.1m from BDT 289.9m [4 p.3]. Gross margin was 32.8% for the nine months, against 31.8% a year earlier [12]. Finance expenses were BDT 163.5m and profit before tax was BDT 24.0m, and income tax of BDT 22.7m left profit after tax of BDT 1.3m, EPS BDT 0.01 [4 p.3]. The third quarter alone was a loss of BDT 5.2m, EPS BDT (0.04), which DSE also carries in its Q3 announcement of 3-May-2026 [4 p.3] [8].

Quarter by quarter, FY2026 EPS was BDT 0.03, 0.02 and (0.04), against BDT 0.07, 0.04 and 0.04 in FY2025 [8]. FY2025 full-year EPS of BDT 0.11 less nine-month EPS of BDT 0.15 implies a fourth quarter of BDT -0.04 (derived), and EPS for the four quarters to March 2026 sums to BDT -0.03 (derived) [1 p.44] [8]. Net operating cash flow per share for the nine months was BDT (0.73), which the company attributes to an 'increase in Inventories' [4 p.5] [4 p.1]. Inventories rose to BDT 3,623.6m and property, plant and equipment to BDT 3,658.0m at March 2026, with BDT 713.6m spent on acquisitions in the nine months [4 p.2] [4 p.5].

Ratios: net margin from 13.6% to 1.3% in six years, and 1,571 inventory days at June 2025

Growth and margins. Turnover grew in five of the six years FY2020-FY2025, with a fall of 1.6% in FY2020 and a rise of 31.0% in FY2021 [12]. Gross margin stepped down from 37.9% and 37.8% in FY2019-FY2020 to 27.6% in FY2021, and has run at 23.5%-28.6% since [12]. Pre-tax margin fell from 18.6% in FY2019 to 6.2% in FY2025, and net margin from 13.6% to 1.3%, the lowest of the seven years [12].

Returns. Return on closing equity fell from 5.3% in FY2019 to 0.9% in FY2025 [12]. Equity grew by BDT 116.0m over six years, from BDT 1,519.5m to BDT 1,635.5m; retained earnings were BDT 196.8m at June 2025 and share capital of BDT 1,362.7m [1 p.43] [3 p.4]. At the seven year-ends FY2019-FY2025, NAV per share was between BDT 11.15 (FY2019, derived) and BDT 12.00 (FY2025, as printed) [12] [1 p.43]; the DSE interim NAVs were BDT 12.04 (Sep-2024), 12.08 (Dec-2024), 11.98 (Mar-2025), 12.03 (Sep-2025), 12.05 (Dec-2025) and 12.01 (Mar-2026) [8].

Efficiency and working capital. Inventory days on cost of goods sold were 1,318 at June 2023, 1,274 at June 2024 and 1,571 at June 2025, and 2,327 at March 2026 on nine-month cost annualised (derived) [12]. Raw-material stock at June 2025 was 10.5 times the year's consumption, against 6.5 times at June 2023 [12]. Purchases exceeded consumption in each year: BDT 721.1m bought and BDT 228.4m consumed in FY2023, BDT 757.9m and BDT 298.8m in FY2024, and BDT 772.6m and BDT 235.6m in FY2025 [2 p.67] [1 p.69]. Receivable days were 33 at June 2025 [12].

Leverage and cash conversion. Borrowings were 4.53x equity at June 2023, 3.30x at June 2024, 4.06x at June 2025 and 4.64x at March 2026; borrowings were 79.1% of total assets at March 2026 [12]. Operating cash flow was BDT -704.9m, BDT -13.8m and BDT -329.9m in FY2023-FY2025 [2 p.44] [1 p.46]. The FY2024 figure is printed as BDT -24.8m (NOCFPS BDT (0.18)) in the FY2024 report and as BDT -13.8m (NOCFPS BDT (0.10)) in the FY2025 comparatives [2 p.44] [1 p.46]. The FY2025 reconciliation shows a BDT 552.5m increase in inventories [1 p.72].

Balance sheet: BDT 7.6bn of borrowings, BDT 3.6bn of inventories and a BDT 2,440m land advance not reconciled in later filings

Debt. At June 2025 borrowings were BDT 6,642.9m: long-term loans of BDT 4,022.3m (BDT 1,275.0m due within a year) and short-term bank loans of BDT 2,620.6m [1 p.43]. AB Bank short-term loans were BDT 1,825.0m of the short-term total [1 p.66]. The term loans listed in note 12 include National Bank facilities with limits of BDT 2,312.3m (expiry 30-Jun-2029) and BDT 530.8m (expiry 23-Oct-2029) and a Premier Bank facility with a limit of BDT 537.1m (expiry 30-Dec-2027), each at 15.00%, for capital machinery, steel building and construction [1 p.64] [1 p.65]. The auditor's key audit matter says 'Evidently, the Company is using loan to operate the business and also, to acquire non-current assets' [1 p.40]. By March 2026 borrowings were BDT 7,599.1m [4 p.2].

The swing in FY2023-FY2024. At June 2023 short-term loans were BDT 6,770.1m, including BDT 2,045.6m from National Bank and BDT 3,750.8m from AB Bank, and capital work in progress was BDT 4,602.8m, up from BDT 295.9m a year earlier [2 p.64] [2 p.54]. The FY2023 auditor drew attention to the fact that 'Tk. 2,440,000,000 shown in Capital Work in Progress instead of Advance, Deposit & Pre-Payment for land purchase. The management of the company already paid the aforesaid amount as advance by making a notary deed and register deed is in under process' [3 p.35]. In FY2024 BDT 3,186.6m was adjusted out of capital work in progress, property, plant and equipment additions were BDT 883.5m, and short-term loans fell to BDT 2,939.8m [2 p.54] [2 p.64]. The FY2025 property schedule prints freehold land and land development of BDT 87.4m [1 p.79]. The filings we read do not reconcile the BDT 2,440m land advance with these later balances.

Capital work in progress and capitalised interest. In FY2025 BDT 676.5m was added to capital work in progress and BDT 915.4m transferred to plant, split equally between factory building (BDT 457.7m) and plant and machinery (BDT 457.7m), under a schedule column headed 'Interest on Capital Asset' [1 p.56] [1 p.79]. The directors' report says 'During the year company invested Tk. 7.40 crore in the Fixed Assets. Out of which around Tk. 47.93 lac invested from company's own source' [1 p.8]. Note 33 states 'There was no material capital expenditure authorized by the Board or contracted for as at 30 June, 2025' [1 p.73]. Our sweep of DSE news from October 2024 to November 2026 found no board-approved expansion or capex announcement [8].

Inventories. Of BDT 3,432.8m at June 2025, raw materials were BDT 2,478.5m, work in process BDT 504.5m, finished tiles BDT 211.1m and stores and spares BDT 231.7m [1 p.56]. The auditor lists inventory valuation as a key audit matter and describes procedures on slow-moving and obsolete items [1 p.40]; the notes print no provision for slow-moving inventory. Work in process has stayed near BDT 500m since June 2023 (BDT 499.6m, BDT 503.8m, BDT 504.5m) [2 p.54] [1 p.56].

Contingent liabilities. Note 42 lists seven VAT and supplementary-duty demands dating from 1997-2009, all under appeal, writ or civil suit. Taking the remanded balance of demand A, the printed amounts add to BDT 383.2m (derived), 23.4% of June 2025 equity [1 p.77] [1 p.78] [12]. The largest is a BDT 130.0m demand by the Commissioner of LTU-VAT against Unit-1, stayed by the High Court [1 p.78].

Audit: three qualified opinions in four years, and 'proper books of account ... have not been kept'

FY2025 opinion. Islam Quazi Shafique & Co. gave a qualified opinion, signed by Quazi Shafiqul Islam, FCA on 4-Nov-2025 [1 p.42]. The opinion paragraph, quoted in full: 'In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion section of our report, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at June 30, 2025 and its financial performance and its cash flows for the year then ended June 30, 2025 in accordance with International Financial Reporting Standards (IFRSs).' [1 p.38] The basis for qualification, quoted in full: 'As referred to note no. 16.00 “Unclaimed Dividend Account” shown amount Tk. 7,875,142/- in the financial statement where Unclaimed above 03 (Three) years amount Tk. 5,439,778 which have to transfer to Capital Market Stabilization Fund (CMSF) as per BSEC directive No. BSEC/CMRRCD/2021-386/03 dated: January 14, 2021. But the management of the company did not settle that amount during the period of our audit which is violation of said guidelines.' [1 p.38]

The emphasis of matters, quoted in full: '1 We didn't find the last year audited financial statements of Gratuity Fund and Workers' Profit Participation & Welfare Fund. 2 As referred to note no. 18.00 “Provision for Income Tax” Shown amount Tk. 79,871,492/- in the financial statements where no Tax Assessment status were disclosed in the financial statements that will be disclosed in the next quarter of the following reporting period.' [1 p.38] The report lists five key audit matters [1 p.39] [1 p.40] [1 p.41]. Under other legal requirements the auditor reports: '(ii) in our opinion, proper books of account as required by law have not been kept by the Company so far as it appeared from our examination of those books' [1 p.42].

The five key audit matters, each matter paragraph quoted in full from the page images. Revenue recognition: 'At year end the Company reported total turnover amount Tk. 1,080,313,529/- (Net off SD & VAT). Revenue is measured net of discounts, incentives and rebates earned by customers on the Company’s sales. Within a number of the Company’s markets, the estimation of discounts, incentives and rebates recognized based on sales made during the year is material and considered to be complex and judgmental. Therefore, there is a risk of revenue being misstated as a result of faulty estimations over discounts, incentives and rebates. There is also a risk that revenue may be overstated due to fraud through manipulation of the discounts, incentives and rebates recognized resulting from the pressure local management may feel to achieve performance targets.' [1 p.39] Impairment of property, plant and equipment: 'Property, Plant and equipment represent about 34.86% of total assets of the company which is thus a material items to the financial statements, Property, Plant and Equipment. Determining the level of impairment involves forecasting and discounting future cash flows and estimation of recoverable amounts which are inherently uncertain. This is one of the key judgmental areas that our audit has concentrated on.' [1 p.39] Inventory Valuation: 'The company had inventory of BDT 3,432,813,821/- at 30 June 2025, held in factory and across multiple product lines. Inventories are carried at the lower of cost and net realizable value. As a result, the Directors apply judgement in determining the appropriate values for slow-moving or obsolete items. This is one of the key judgmental areas that our audit has concentrated on.' [1 p.40] Long-Term Loan & Short-term loan: 'At reporting date, the position of Long-Term Loan Net of Current Maturity, short-term Loan outstanding and Current Maturity of Long-Term Loan was BDT 2,747,302,341 and 1,274,982,947 for the Company. Here, total liabilities Tk. 6,642,883,486 are represented by loans for the Company Evidently, the Company is using loan to operate the business and also, to acquire non-current assets. Loan, therefore, has been considered as key judgmental audit areas that our audit has concentrated on.' The auditor adds: 'Our procedures above did not identify any issues with regard to loans.' [1 p.40] Capital work in Progress: 'At reporting date, the position of Capital work in progress was BDT 1,314,986,833 for the Company. Evidently, the Company is using Capital work in progress to operate the business and also, to extending wealth maximization of the company. Capital work in progress, therefore, has been considered as key judgmental audit areas that our audit has concentrated on.' [1 p.41]

Statements that conflict with the auditor. The directors' statement says 'Proper books of account of the Company have been maintained' [1 p.15], and the corporate governance compliance report ticks condition 1(5)(xii), the statement that proper books of account have been maintained, as 'Complied' [1 p.31]. The corporate governance certificate from Atik Khaled Chowdhury, dated 26 October 2025, states: '(c) Proper books and records have been kept by the company as required under the Companies Act, 1994, the securities law and other relevant law' and '(d) The Governance of the Company is satisfactory' [1 p.28]. The unclaimed dividend note shows BDT 5.44m older than three years, of which BDT 4.43m relates to FY2019-20 [1 p.67].

Earlier years. FY2024 was unmodified with one emphasis of matter, quoted in full: 'As referred note no. 17.00 “Unclaimed Dividend Account” where Unclaimed above 03 (Three) years amount Tk. 4,435,042 shown in the financial statements which is under process of transfer to CMSF fund as per BSEC guideline. We communicate with the management of the company about that and they will take necessary steps to avoid this type of issue arising in future.' [2 p.36]

FY2023 was qualified. The three basis paragraphs, quoted in full: '1 As referred to note no. 17 “Unclaimed Dividend Account” shown amount Tk. 6,285,600 in the financial statement which amount was available at various bank account of the company instead of specific bank account which is not complied as per BSEC guidelines. 2 As referred to financial statement, the management of the company distributed its Worker’s Profit Participation Fund (WPPF) as per Labor Law 2006 (Amended 2018) but no audited WPPF account found. Even the management of the company did not maintain separate bank account for WPPF. 3 As referred to financial statement, the management of the company maintain its Gratuity fund (GF) but no audited GF account found. Even the management of the company did not maintain separate bank account for Gratuity Fund.' [3 p.35] The first emphasis of matter: '1. We draw attention that the management of the company had adjust foreign exchange gain/loss with purchase value of raw material instead of showing foreign exchange gain/loss separately.' [3 p.35] The FY2023 report also records that the FY2022 statements were audited by MABS & J Partners, 'who expressed a qualified opinion on those statements on November 17, 2022' [3 p.35].

Auditor rotation. The directors' report states that Islam Quazi Shafique & Co. had concluded 'three consecutive terms of auditors, so they will not be eligible for re-appointment as per BSEC Notification', and the board on 4-Nov-2025 recommended Ahmed Zaker & Co. as statutory auditor for FY2025-26 at a fee of Tk. 4,02,500 [1 p.9]. The AGM was called for 30-Dec-2025 [1 p.6]; its result is not in the filings or DSE news we read (passed), outcome unknown.

Peers: the highest borrowings-to-equity and inventory days of the three ceramics companies compared

Peer set. We compare Fu-Wang with the two DSE ceramics companies that have published AnalystBro notes: Monno Ceramic Industries, which describes itself as a maker in 'the country's porcelain tableware industry' [6 p.11], and RAK Ceramics (Bangladesh), which reports 'tiles and sanitaryware segments' [7 p.36]. Each column is the latest annual on a company basis from the company's own filing: Fu-Wang and Monno for the year to June 2025, RAK for the year to December 2025 (company statements, not consolidated) [1 p.44] [6 p.64] [7 p.109]. The businesses differ; margins are shown side by side, not ranked.

What the table shows. Fu-Wang's gross margin was 26.2%, Monno's 24.0% and RAK's 13.0% [12]. Borrowings were 4.06x equity at Fu-Wang, 0.41x at Monno and 0.26x at RAK [12]. Inventory days on cost of sales were 1,571, 622 and 206 [12]. Labels differ: Fu-Wang's 'Operating Profit' includes other income of BDT 1.6m and a gratuity provision, Monno's 'Profit from Operations' excludes other income of BDT 118.5m, and RAK prints 'Profit/(loss) from operating activities' [1 p.44] [6 p.64] [7 p.109]. Finance costs are gross; Fu-Wang and RAK print finance income separately (BDT 28.8m and BDT 11.6m). Fu-Wang charged WPPF of BDT 3.4m; RAK charged none in 2025 [1 p.44] [7 p.109]. Audit opinions: Fu-Wang qualified [1 p.38], Monno qualified [6 p.58], RAK's company statements unmodified [7 p.107].

Governance: two different chairs printed in one report, and dividends paid to non-sponsor holders

Board. The FY2025 report lists nine directors with attendance at 14 board meetings (the text reads 'Sixteen (14) meetings'): Mrs. Hasna Opgen Haffen, Chairman, nominee of Al Dewan Technical Services LLC (11); Mr. Javed Opgenhaffen, Director (08); Mr. Sadad Rahman, nominee director of Fu-Wang Trading Ltd. (04; died on 15 January 2025); Mr. Md. Shaheed Hossain Tanjil, nominee of JO Holdings Ltd. (14); Mr. Sayeed Rezaraj Ahmmad, Managing Director (Current Charge), nominee of NJ Holdings Ltd. (14); Mr. Omar Sharif, nominee of Opgenhaffen Holdings Ltd. (05); Mr. Mohammad Hamidur Rashid, FCA, independent director (03); Mr. Narayan Roy, FCA, independent director (06); and Mr. Haroon Mukhter, nominee of Fu-Wang Trading Ltd., appointed 26 June 2025 (Nill) [1 p.16].

Who chairs the board. The filing prints two chairs. The corporate profile lists 'Chairman : Mr. Narayan Roy, FCA', lists Mrs. Hasna Opgen Haffen among nominee directors, and names Mr. Mohammad Hamidur Rashid, FCA as the one independent director [1 p.3]; the directors' report is signed by 'Narayan Roy, FCA, Chairman' [1 p.10]. The attendance table and the related-party note name Mrs. Hasna Opgen Haffen as Chairman and Mr. Narayan Roy, FCA as independent director [1 p.16] [1 p.73]. The March 2026 statements carry a signature over 'Chairman' without a printed name [4 p.2]. The audit committee is chaired by Mr. Narayan Roy, FCA, with Mr. Md. Shaheed Hossain Tanjil and Mr. Omar Sharif, and met four times in FY2025 [1 p.23]. The Nomination and Remuneration Committee is chaired by Mr. Mohammad Hamidur Rashid, FCA, Independent Director, with Mr. Md. Shaheed Hossain Tanjil and Mr. Omar Sharif, Nominee Directors, as members and Mr. Md. A. Halim Thakur, Company Secretary, as secretary; it held one meeting in FY2025 with all members present [1 p.20] [1 p.21].

Independent directors. On 29 January 2026 the board decided 'to extend the Independent Directorship of Mr. Narayan Roy, FCA for second tenure i.e. 3 (three) years with effect from 1st February 2026' and 'not to extend the Independent Directorship of Mr. Mohammad Hamidur Rashid, FCA for second tenure as he expressed his unwillingness to continue' [5 p.1]. The compliance report marks the requirement for at least one female independent director as 'Under process' [1 p.29]. Three remarks read 'will be complaied': on page 29 against the proviso that 'the Board shall appoint the independent director, subject to prior consent of the Commission' [1 p.29], on page 34 against 5(3)(c), attendance of the audit committee chair at the AGM [1 p.34], and on page 35 against 6(3)(c), attendance of the NRC chair at the AGM [1 p.35]. Condition 1(2)(a), at least two independent directors, is ticked 'Complied' [1 p.29]; the corporate profile names one independent director [1 p.3]. No condition is ticked 'Not Complied' on pages 29-37 of the compliance report (page images read) [1 p.29] [1 p.37].

Pay and related parties. No director drew remuneration other than board meeting fees, which totalled BDT 373,750 in FY2025 [1 p.73] [1 p.74]. The related-party note lists board meeting fees by director: Mrs. Hasna Opgen Haffen 63.250, Mr. Sayeed Rezaraj Ahmmad 80.500, Mr. Javed Opgenhaffen 46.000, Mr. Md. Shaheed Hossain Tanjil 80.500, Mr. Omar Sharif 28.750, Mr. Haroon Mukhtar 0, Mr. Narayan Roy, FCA 34.500 and Mr. Mohammad Hamidur Rashid, FCA 17.250 (in BDT thousand, as printed) [1 p.73]. These eight lines add to BDT 350,750 (derived); the aggregate printed for board meeting fees is BDT 373,750 [1 p.74], a gap of BDT 23,000 (derived), and Mr. Sadad Rahman, a director until his death on 15 January 2025, is not in the p.73 list [1 p.16]. The other receivables include BDT 16.5m of 'Rent receivable from Hua-Thai Ceramic Industry Ltd.' and the property schedule shows land of BDT 12.6m 'Rent to Hua Thai Industry Ltd.' [1 p.58] [1 p.79]; the filings do not describe any relationship with Hua-Thai.

Dividends. Cash dividends have been paid to shareholders other than sponsors and directors: 1% for FY2019, 1.4% for FY2020, 2% for FY2021-FY2024 and 1% for FY2025 [3 p.4] [1 p.4]. The FY2025 dividend was BDT 9,539,254 on 95,392,547 public shares [1 p.8] [8], 66.6% of FY2025 profit after tax (derived) [12]. The company informed DSE on 16-Feb-2026 that the FY2025 dividend had been disbursed [8].

What's next: FY2026 results with no date notified, and term-loan expiries printed for 2027-2029

Dated items after 31-Oct-2026. The FY2026 audited results: no date notified on DSE at 1-Nov-2026 [8]. The board-date precedents are 28-Oct-2024 for FY2024 [2 p.72] and 4-Nov-2025 for FY2025, rescheduled from 28-Oct-2025 [8]; 1-Nov-2026 is past the 28-Oct-2024 precedent. The term loans printed in note 12 have expiry dates of 30-Dec-2027, 30-Jun-2029 and 23-Oct-2029 [1 p.64] [1 p.65]. Bangladesh's LDC graduation date is 24-Nov-2029 [9] [10]; Fu-Wang reports no export sales [1 p.69], and the filings do not link the graduation to any line. Credit rating: the FY2025 report prints the WASO rating of 'A' and 'ST3' as 'valid up to 23 December 2025' [1 p.10]; DSE posted the BBB+ / ST 3 rating on 24-Dec-2025 (DSE post date) [8]. For the next rating, no date notified.

Passed items, outcome unknown. The Environmental Clearance Certificate was renewed 'up to 06 July 2026' [1 p.10]; renewal after that date is not in the filings we read (passed), outcome unknown. The AGM of 30-Dec-2025 voted on the auditor change (passed), outcome unknown [1 p.6].

Risks: interest, energy, inventory valuation and a tax charge that exceeds profit after tax

Each risk is tied to the line it moves and to the filing evidence. The company's own risk list covers competition, interest rates, exchange rates, technology, the economy, energy costs and labour relations [1 p.12] [1 p.13] [1 p.14].

Open items: raw-material stock, capitalised interest, the land advance and the books of account

Open items in the filings read. First, the raw-material stock: BDT 2,478.5m at June 2025, with quantities and values printed by material [1 p.56] [1 p.57], and purchases of BDT 772.6m and consumption of BDT 235.6m in FY2025 [1 p.69]. Second, interest: note 12 adds BDT 432.4m of 'Interest on Capital Assets' to the loan, the PPE schedule carries a BDT 915.4m column with the same heading, and the amount capitalised is not stated [1 p.63] [1 p.79]. Third, the BDT 2,440m land advance named by the FY2023 auditor is not reconciled in the FY2024 or FY2025 notes we read [3 p.35]. Fourth, the FY2025 auditor's finding on books of account [1 p.42]; the board recommended a new statutory auditor for FY2025-26 [1 p.9].

Market multiples, stated as facts. At BDT 11.1 on 1-Nov-2026 the share traded at 0.92x March 2026 NAV of BDT 12.01 and 101x FY2025 EPS of BDT 0.11 [11] [4 p.2] [1 p.44]. Monno traded at 0.91x and RAK at 1.57x their latest annual NAV on the same day [12]. Over the year to 1-Nov-2026 the daily close ranged from BDT 10.0 (13-Nov-2025) to BDT 17.5 (2-Aug-2026 and 6-Aug-2026) [11].

FAQ

What does Fu-Wang Ceramic make?

Floor tiles and glazed wall tiles at two units in Hotapara, Gazipur, with capacity of 40 million sft a year; FY2025 production was 26.14m sft [1 p.47] [1 p.74].

When does Fu-Wang's financial year end?

30 June. FY2025 is the latest annual report in our corpus; the FY2026 accounts are not in the corpus at 1-Nov-2026 [1 p.44] [8].

What were Fu-Wang's FY2025 operating profit and finance expenses?

Operating Profit BDT 225.7m and Finance Expenses BDT 183.6m, as printed; profit after tax was BDT 14.3m [1 p.44].

How much does Fu-Wang owe banks?

BDT 6,642.9m at 30-Jun-2025 and BDT 7,599.1m at 31-Mar-2026, against equity of BDT 1,636.8m [1 p.43] [4 p.2].

Is Fu-Wang's audit opinion qualified?

Yes for FY2025, on BDT 5,439,778 of unclaimed dividend not transferred to the Capital Market Stabilization Fund; the auditor also reports that proper books of account have not been kept [1 p.38] [1 p.42].

What dividend did Fu-Wang pay for FY2025?

1% cash to shareholders other than sponsors and directors, BDT 9,539,254 in total, disbursed by 16-Feb-2026 [8].

How did Fu-Wang do in the nine months to March 2026?

Turnover BDT 634.7m against BDT 778.2m and EPS BDT 0.01 against BDT 0.15; January-March 2026 EPS was BDT (0.04) [4 p.3].

Sources

1. Fu-Wang Ceramic Industry Ltd. Annual Report 2024-2025 (year to 30-Jun-2025) · link · accessed 2026-11-01
2. Fu-Wang Ceramic Industry Ltd. Annual Report 2023-2024 (year to 30-Jun-2024) · link · accessed 2026-11-01
3. Fu-Wang Ceramic Industry Ltd. Annual Report 2022-2023 (year to 30-Jun-2023) · link · accessed 2026-11-01
4. Fu-Wang Ceramic Industry Ltd. un-audited financial statements, nine months to 31-Mar-2026 · link · accessed 2026-11-01
5. Fu-Wang Ceramic Industry Ltd. un-audited financial statements and board letter, six months to 31-Dec-2025 · link · accessed 2026-11-01
6. Monno Ceramic Industries Ltd. Annual Report 2024-2025 (peer; year to 30-Jun-2025) · link · accessed 2026-11-01
7. RAK Ceramics (Bangladesh) Ltd. Annual Report 2025 (peer; company statements, year to 31-Dec-2025) · link · accessed 2026-11-01
8. Dhaka Stock Exchange news archive for FUWANGCER, Oct-2024 to Nov-2026 (results, dividends, board meetings, audit opinion, credit rating) · link · accessed 2026-11-01
9. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-01
10. The Business Standard, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-01
11. AnalystBro price data (TradingView feed): DSE daily bars to 1-Nov-2026 · link · accessed 2026-11-01
12. AnalystBro model for this report (workbook tabs below) · link · accessed 2026-11-01