IPC (AZA) H1 2024 earnings summary

Executive summary

• H1 2024 sales were S$1.047m, down 38.9% YoY; net loss narrowed to S$0.285m from S$5.432m, largely reflecting the prior-year asset impairment.

• Gross profit was S$0.366m versus a gross loss of S$0.024m, primarily because depreciation was no longer charged to cost of sales after the hotel and clubhouse were reclassified as assets held for sale in 2023.

Financial highlights

• Other income rose to S$0.882m from S$0.246m, mainly due to a S$0.663m reversal of a payable following the creditor company's striking off.

• Other gains were S$0.043m, mainly from disposal of property, plant and equipment; the prior-year S$3.854m loss mainly reflected impairment of assets held for sale.

• Administrative expenses fell 10.6% YoY to S$1.356m, mainly from Singapore operations; finance costs fell 13.3% to S$0.124m, reflecting a lower average borrowing rate in Zhuhai.

Outlook and guidance

• NHJC's business was expected to improve further in 2024, barring negative events, supported by expanding hotel management and stronger inbound tourism to Japan.

• No dividend was declared or recommended for H1 2024.