IPC (AZA) H2 2025 earnings summary

Executive summary

• FY2025 sales fell to S$1.922m from S$2.235m; a S$9.827m fair value gain on the NHJC divestment lifted profit before tax to S$2.245m, but S$5.508m capital gains tax drove a S$3.271m net loss.

• A 37.3% NHJC stake was sold for JPY2.6bn in cash at a 69.3% premium to its valuation, releasing funds for working capital and potential investments.

Financial highlights

• Sales were S$1.922m versus S$2.235m in FY2024, mainly reflecting lower Zhuhai revenue; gross loss was S$0.642m versus gross profit of S$0.870m.

• Net loss after tax attributable to equity holders was S$3.271m, versus net profit of S$6.065m; total comprehensive loss was S$3.721m.

• Other gains, net, were S$5.894m, including a S$9.827m fair value gain, offset by asset write-downs, impairment, additional depreciation and other losses.

• Operating cash outflow was S$4.969m; investing activities provided S$21.287m, primarily reflecting proceeds from financial asset disposals.

Outlook and guidance

• Challenging conditions are expected to persist in 2026; priorities include turning around the China hotel business, optimising costs and conserving cash.

• Strategic review and new investment opportunities targeting sustainable income generation remain priorities; no FY2025 dividend was declared.