IPC (AZA) H1 2026 earnings summary

Executive summary

• H1 2026 sales rose 7.5% YoY to S$850k, but results shifted to a S$336k gross loss and a S$1.679m net loss.

• Higher depreciation following the FY2025 reclassification of assets held for sale to property, plant and equipment weighed on gross profit; cash also fell following payment of capital gains tax linked to the Japan investment disposal.

Financial highlights

• Sales were S$850k versus S$791k YoY; cost of sales increased to S$1.186m from S$647k, resulting in a S$336k gross loss versus S$144k gross profit.

• Other income declined to S$159k from S$208k, mainly due to the absence of prior-period license fees; other gains were S$150k versus S$17k, mainly from asset disposals.

• Loss before tax widened to S$1.685m from S$1.124m; net loss was S$1.679m versus S$1.128m, with a S$6k income tax credit in 2026.

• Total assets were S$51.756m at 30 June 2026 versus S$57.876m at 31 December 2025; net assets were S$44.345m versus S$44.826m.

Outlook and guidance

• Hotel operations face continued hospitality and MICE challenges from new room supply converted from other properties, the prolonged market slump, weaker domestic consumption and lower corporate spending; these factors may affect the next operating period and next 12 months.

• The commentary in the prior results announcement was stated to be in line with actual results.