NOCERA, INC. Segments Disclosure
Note 20 SEGMENT INFORMATION
The Company’s Chief Operating Decision Maker (“CODM”) is its Executive Director, Song-Yuan Teng, who is responsible for reviewing the results of operations and allocating resources across the Company’s reportable segments. During the periods presented, the Company’s reportable segments consisted of Fish Trading, Catering, and E-Commerce. These operating segments reflect the manner in which the CODM evaluates performance and allocates resources.
On December 31, 2025, the Company completed the disposal of its Catering segment (Meixin). The results of the Catering segment have been classified as discontinued operations for all periods presented. Accordingly, the segment information disclosed below excludes the results of the Catering segment. The Catering segment reported net sales of $2,597,349 and $4,890,187 for the years ended December 31, 2025 and 2024, respectively.
Segment performance is evaluated based on segment revenue and operating profit, which includes direct costs and segment-specific general
and administrative expenses, but excludes corporate overhead and interest. The CODM does not regularly review segment assets, and therefore
segment asset information is not presented.
Summary operating results for each of the Company’s reportable segments were as follows:
| For the year ended December 31, 2025 | ||||||||||||
| Fish Trading | E-Commerce | Total | ||||||||||
| $ | $ | $ | ||||||||||
| Revenue | 10,853,021 | 160,025 | 11,013,046 | |||||||||
| Cost of revenue | (10,831,353 | ) | (35,799 | ) | (10,867,152 | ) | ||||||
| Gross profit | 21,668 | 124,226 | 145,894 | |||||||||
| General and administrative expenses | (2,546,060 | ) | (52,518 | ) | (2,598,578 | ) | ||||||
| Segment operating losses | (2,524,392 | ) | 71,708 | (2,452,684 | ) | |||||||
| Income tax expenses | (143,397 | ) | – | (143,397 | ) | |||||||
| Segment losses | (2,667,789 | ) | 71,708 | (2,596,081 | ) | |||||||
| For the year ended December 31, 2024 | ||||||||||||
| Fish Trading | E-Commerce | Total | ||||||||||
| $ | $ | $ | ||||||||||
| Revenue | 11,853,106 | 345,033 | 12,198,139 | |||||||||
| Cost of revenue | (11,828,943 | ) | (108,627 | ) | (11,937,570 | ) | ||||||
| Gross profit | 24,163 | 236,406 | 260,569 | |||||||||
| General and administrative expenses | (1,469,207 | ) | (469,976 | ) | (1,939,183 | ) | ||||||
| Segment operating losses | (1,445,044 | ) | (233,570 | ) | (1,678,614 | ) | ||||||
| Income tax expenses | (121,575 | ) | – | (121,575 | ) | |||||||
| Segment losses | (1,566,619 | ) | (223,570 | ) | (1,800,189 | ) | ||||||
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.