IPC (AZA) H1 2025 earnings summary

Executive summary

• H1 2025 sales were S$791k, down 24.5% YoY, while the net loss widened to S$1.128m from S$285k.

• Total comprehensive loss was S$2.844m, including a S$1.765m currency translation loss.

Financial highlights

• Gross profit fell to S$144k from S$366k, in line with lower hotel sales; other income decreased to S$208k from S$882k.

• Loss before tax was S$1.124m versus S$285k; income tax credit was S$4k versus a S$6k expense.

• Operating cash flow was a net outflow of S$55k; investing activities used S$561k and financing activities provided S$330k.

Outlook and guidance

• China’s business environment is expected to remain challenging; lower corporate demand and new hotels converted from commercial properties are expected to pressure hospitality.

• NHJC is expected to benefit from Japan’s tourism momentum after 14.45m foreign arrivals in the first four months of 2025, up 24.5% YoY.