PCRD 1H 2025 Financial Results: Revenue Down, Loss Widens, Dividend Declared

Pacific Century Regional Developments Limited – H1 2025 Financial Analysis – Net Loss Attributable to Equity Holders Increased

Date of Report: 01/08/2025

Reporting Period: Six months ended 30 June 2025 (1H 2025)

Business Description

Pacific Century Regional Developments Limited (PCRD) is an investment holding company. [[6]] The company’s operations are managed as a single segment across four geographical locations: Singapore, India, Hong Kong and Cayman Islands. [[7]] The company derives revenue from dividend income. [[7]] The company also provide management and consultancy service. [[7]]

Key Financial Highlights and Investor Action Items

Dividend

An interim dividend of 2.20 cents per ordinary share has been declared. [[21]] This is higher than the previous corresponding period’s interim dividend of 1.12 cents per ordinary share. [[21]]
The dividend is one-tier tax exempt. [[21]]

Income Statement Analysis

Revenue: Revenue decreased significantly by 76.7% from S\$7.458 million in 1H 2024 to S\$1.737 million in 1H 2025. [[1]] This is attributed to the winding down of an investee fund, which resulted in no further distributions from financial assets. [[19]]
Net Loss: The net loss attributable to equity holders increased by 36.1% from S\$17.545 million in 1H 2024 to S\$23.873 million in 1H 2025. [[1]]
Expenses: Total expenses increased by 14.9%, primarily due to net foreign exchange losses. [[1, 19]]
PCCW Impact: The company holds a 22.65% stake in PCCW. [[19]] The Group’s share of loss from PCCW for 1H2025 of \$17.1 million as compared to a share of loss of \$18.0 million for 1H2024. [[10, 19]]

Balance Sheet Analysis

Total Assets: Total assets increased slightly from S\$464.515 million in 2024 to S\$480.081 million in 1H 2025. [[3]]
Net Assets: Net assets decreased significantly from S\$258.790 million in 2024 to S\$68.034 million in 1H 2025. [[3]] This is mainly due to a dividend declared in 1H2025 of S\$157.7million. [[13]]
Borrowings: Net borrowings (borrowings less cash on hand) decreased to S\$89.4 million as at 30 June 2025 compared to net borrowings of S\$193.3 million at the end of 2024. [[13]]

Cash Flow Analysis

Operating Activities: Net cash used in operating activities was S\$6.616 million in 1H 2025. [[4]]
Investing Activities: Net cash provided by investing activities was S\$102.208 million in 1H 2025. [[4]] This was mainly due to dividends received from PCCW. [[4]]
Financing Activities: Net cash provided by financing activities was S\$60.721 million. [[4]]
Cash and Cash Equivalents: Cash and cash equivalents at the end of the period were S\$163.933 million. [[4]]

Company Actions to Improve Profitability

PCRD will adopt a prudent dividend policy that prioritises strengthening the company’s financial position to support sustainable growth while striving to provide stable returns for shareholders. This policy will be regularly reviewed in order to adapt to changing circumstances and optimise shareholder value. [[20]]
HKT is positioning itself as a leader in providing artificial intelligence (“AI”) technologies and applications to both consumers and enterprises while also deploying AI to redefine its own operations. [[20]]

Summary of Strengths and Risks

Strengths:
- Significant cash and cash equivalents position.
- Increase in Interim Dividend.
- Decrease in net borrowings.
Risks:
- Significant decrease in revenue.
- Increase in net loss attributable to equity holders.
- Significant decrease in net assets.
- Dependence on PCCW’s performance.

Investment Recommendations and Disclaimer

For Current Holders:

Given the increased net loss and revenue decline, current holders should closely monitor PCCW’s performance and the effectiveness of PCRD’s strategies to improve profitability. The increased interim dividend may provide some short-term relief, but the long-term sustainability of this dividend policy needs to be assessed in light of the company’s financial health.

For Potential Investors:

Potential investors should exercise caution. While the company has a strong cash position, the increased net loss and revenue decline raise concerns. A thorough evaluation of PCCW’s prospects and PCRD’s ability to diversify its revenue streams is crucial before making any investment decisions.

Disclaimer: This analysis is based solely on the provided financial report and does not constitute financial advice. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions.