Renaissance United Limited Announces Material Differences Between Audited and Unaudited FY2025 Financials – No Dividend Declared

Renaissance United Limited: FY2025 Financial Results Review

Renaissance United Limited (RUL), listed in Singapore, has released its audited financial statements for the year ended 30 April 2025, highlighting notable differences from previously announced unaudited figures. This analysis covers the key financial metrics, exceptional expenses, and material adjustments impacting the Group’s results and balance sheet.

Key Financial Metrics

RUL reported a total comprehensive loss for FY2025, with significant adjustments post-audit. Material differences arose from asset write-offs, impairment losses, liquidation of a subsidiary, and exceptional expenses. Below is a summary of main profit and loss items and equity changes.

Metric	Audited FY2025	Unaudited FY2025	Difference
Other Items of Income	S\$778,000	S\$760,000	+S\$18,000
Operating Expenses	S\$66,841,000	S\$66,842,000	-S\$1,000
Amortisation of Intangible Assets	S\$3,651,000	S\$3,724,000	-S\$73,000
Impairment Loss of Intangible Assets	S\$6,430,000	S\$6,693,000	-S\$263,000
Intangible Assets Written Off	S\$409,000	–	+S\$409,000
Loss on Liquidation of Subsidiary	S\$778,000	–	+S\$778,000
Other Expenses	S\$4,635,000	S\$4,146,000	+S\$489,000
Audited Loss for the Year	S\$13,930,000	S\$12,458,000	+S\$1,472,000
Audited Loss per Share	0.161 cents	0.139 cents	+0.022 cents
Total Comprehensive Loss	S\$14,394,000	S\$13,683,000	+S\$711,000
Net Assets	S\$21,922,000	S\$22,633,000	-S\$711,000

Exceptional Expenses and Material Adjustments

Intangible Assets Written Off: A S\$409,000 write-off related to land use rights and service concession agreements in China subsidiaries was recognized.
Impairment Loss: The final valuation led to a S\$263,000 reduction in impairment loss compared to unaudited accounts.
Loss on Liquidation: A S\$778,000 loss was recognized due to the liquidation of Millgate Asia Limited, a dormant subsidiary.
Depreciation and Other Expenses: Depreciation was revised upward by S\$140,000, and other expenses increased mainly due to bad debts written off and additional safety production expenses.
Tax Provision: Additional tax provision of S\$36,000 was made for the Group’s US subsidiary.

Statement of Financial Position Highlights

Net Assets: The Group’s net assets post-audit are S\$21.9 million, down S\$0.7 million from unaudited figures due to profit and loss adjustments.
Intangible Assets: Decreased by S\$72,000 following audit adjustments and asset write-offs.
Property, Plant & Equipment: Decreased by S\$120,000 primarily due to increased depreciation and asset disposals.
Borrowings: S\$1.8 million of long-term borrowings were reclassified to short-term liabilities in China subsidiaries.
Other Reserves and Accumulated Losses: Adjusted in line with exchange differences and liquidation of MAL.

Historical Performance Trends

The Group continues to record substantial losses year-over-year, driven largely by impairment charges, asset write-offs, and ongoing operating expenses. Losses have widened in the audited accounts compared to unaudited results, reflecting more conservative asset valuations and expense recognition.

Errors and Inconsistencies Identified

Audit adjustments uncovered overprovisions, asset reclassifications, and coding errors, particularly in receivables and cash balances.
Significant changes to expenses and losses highlight the importance of thorough audit processes and suggest internal controls could be strengthened.

Events Impacting Business

Liquidation of Subsidiary: Loss on liquidation of Millgate Asia Limited impacted both profit and foreign currency translation reserves.
Asset Write-Offs and Impairments: Ongoing write-offs and impairments in China subsidiaries indicate persistent operational and asset quality challenges.
Tax Provision Increase: Additional tax liabilities for the US subsidiary were recognized.

Dividend Policy

No dividends were proposed or declared for FY2025. The statement does not mention dividends for previous periods either, reflecting the Group’s weak profitability and retained losses.

Chairman’s Statement

The full Chairman’s Statement is not included in the report. As such, no comment on management’s tone or strategic outlook can be provided.

Directors’ Remuneration and Corporate Actions

No information about directors’ pay, share buybacks, placements, fundraising, or other corporate actions is disclosed in this report.

Conclusion and Investment Recommendations

Renaissance United Limited’s FY2025 results reveal a deepening loss position, sizeable asset write-offs, ongoing impairments, and the negative impact of subsidiary liquidation. Net assets have declined and no dividends are proposed, reflecting continued operational and asset quality challenges. Audit adjustments underscore the importance of internal controls and suggest risk remains elevated within the Group.

If you currently hold RUL stock: The outlook remains weak, with persistent losses and no sign of dividend resumption. Investors may consider reducing exposure or holding only if they anticipate a turnaround or asset monetization in future periods.
If you are not holding RUL stock: It is prudent to remain on the sidelines until there is clear evidence of operational improvement, profitability, or a strategic shift that could create value for shareholders.

Disclaimer: This analysis is based solely on the information presented in the company’s FY2025 audited financial statements. It does not constitute financial advice. Investors should consider their own investment objectives and consult a professional advisor before making investment decisions.