Renaissance United Limited Announces Material Differences Between Audited and Unaudited FY2025 Financial Statements; No Dividend Declared

Renaissance United Limited: FY2025 Financial Results Analysis

Renaissance United Limited, a Singapore-incorporated company, has released its audited financial statements for the year ended 30 April 2025. The results, compared against prior unaudited figures, reveal several material adjustments with significant implications for investors. Below, we break down the key financial metrics, highlight notable adjustments, and provide a structured analysis of the company’s financial health and outlook.

Key Financial Metrics and Adjustments

Metric	FY2025 (Audited)	FY2025 (Unaudited)	Difference
Other Items of Income (S\$’000)	778	760	18
Operating Expenses (S\$’000)	(66,841)	(66,842)	1
Amortisation of Intangible Assets (S\$’000)	(3,651)	(3,724)	73
Impairment Loss of Intangible Assets (S\$’000)	(6,430)	(6,693)	263
Loss on Liquidation of a Subsidiary (S\$’000)	(778)	–	(778)
Other Expenses (S\$’000)	(4,635)	(4,146)	(489)
Loss for the Year (S\$’000)	(13,930)	(12,458)	(1,472)
Total Comprehensive Loss (S\$’000)	(14,394)	(13,683)	(711)
Loss per Share (cents)	0.161	0.139	0.022
Net Assets (S\$’000)	21,922	22,633	(711)

Note: No year-over-year or quarter-over-quarter comparisons are presented in the report; only FY2025 audited vs. unaudited data is available.

Summary of Material Adjustments

Losses Deepened: Audited loss for the year increased by S\$1.47 million compared to unaudited figures, mainly due to higher bad debt write-offs, liquidation losses, and increased depreciation and impairment expenses.
Net Assets Declined: Net assets were revised downwards by S\$711,000 following audit adjustments, primarily from increased write-offs and reclassifications.
Intangible Assets Write-Off: S\$409,000 of intangible assets (land use rights and service concession arrangements in China) were written off in the audited results.
Loss on Subsidiary Liquidation: A fully owned dormant subsidiary, Millgate Asia Limited, was liquidated, resulting in a S\$778,000 loss.
Bad Debt Impact: ESA Electronics Pte. Ltd. saw S\$405,000 in bad debts written off, a significant driver of the higher loss.
Tax Provision: Additional S\$36,000 in tax provisions for the Renaissance United Washington subsidiary increased the group’s tax expense.
Exchange Rate Impact: Adjustments to exchange differences resulted in a lower other comprehensive loss than previously reported.

Errors and Inconsistencies

Several rounding differences and reclassifications (notably a S\$966,000 deposit reclassified from current to non-current assets) were corrected during the audit.
An intercompany elimination of S\$1.62 million between receivables and payables was identified and adjusted.
A coding error led to S\$402,000 being reclassified from cash at bank to other receivables.

Exceptional Items and Corporate Actions

Impairment and Write-Offs: Significant impairment and write-off of intangible assets, largely relating to China subsidiaries, reflect ongoing asset revaluation and a conservative approach to asset carrying values.
Subsidiary Liquidation: The loss from the liquidation of Millgate Asia Limited was fully recognized in this period.

Balance Sheet Overview

Balance Sheet Item	Audited (S\$’000)	Unaudited (S\$’000)	Difference (S\$’000)
Non-Current Assets	50,261	49,486	775
Current Assets	22,819	25,545	(2,726)
Current Liabilities	43,941	43,378	563
Non-Current Liabilities	7,217	9,020	(1,803)
Net Assets	21,922	22,633	(711)

Dividends

No dividend information is provided in the report for this period.

Director Remuneration

No details on directors’ pay or remuneration are disclosed in the report.

Chairman’s Statement

No chairman’s statement is provided in the report.

Notable Events and Risks

There is no mention of natural disasters, legal disputes, major policy or tax changes, or macroeconomic events directly impacting the group in this reporting period.
No reference to fundraising, IPOs, share buybacks, placements, mandates, or related-party transactions.

Conclusion and Investment Recommendation

Renaissance United Limited’s FY2025 audited results reveal a deepening of losses compared to preliminary unaudited figures, driven by asset write-offs, bad debt provisions, and a loss from the liquidation of a wholly owned subsidiary. Net assets have declined, and the company continues to face operational headwinds, particularly within its China subsidiaries. The absence of dividend payments, negative earnings trajectory, and the lack of any clear turnaround signals suggest a persistently weak financial outlook.

For existing shareholders: Investors currently holding Renaissance United Limited may consider reducing exposure, especially if risk tolerance is low, given the worsening losses, ongoing asset impairments, and lack of dividend support. The company’s financial position continues to weaken, and there is no indication of near-term recovery or restructuring.

For potential investors: New investors are advised to remain on the sidelines until there are clear signs of stabilization or a credible turnaround plan. The lack of positive catalysts and persistent financial challenges make the risk/reward profile unattractive at this time.

Disclaimer: This analysis is strictly based on the financial data disclosed in the company’s FY2025 annual report and does not constitute investment advice. All investment decisions should be made after considering your individual financial situation and, where necessary, consulting with a licensed financial advisor.