Datapulse Technology Limited: FY2025 Financial Review and Investor Analysis

Datapulse Technology Limited has released its condensed interim financial statements for the six months and full year ended 31 July 2025. The Group, primarily engaged in hotel operations, investment holding, investment trading, and management services, provides a comprehensive overview of its business performance, financial position, and outlook.

Key Financial Metrics

Performance Summary

• Revenue: The Group reported \$6.1 million in revenue for FY2025, down 2.1% YoY, primarily due to a slight decrease in hotel operations revenue and the expiration of an asset management agreement. QoQ, revenue was flat (+1.0%).
• Profitability: Net profit attributable to shareholders fell sharply by 81.8% YoY, mainly due to the absence of a one-off \$2.9 million reversal of impairment on a freehold building recognized in FY2024, as well as foreign exchange losses and lower other income.
• Earnings per Share (EPS): Basic EPS dropped from 1.89 cents (FY2024) to 0.35 cents (FY2025), and diluted EPS mirrored that decline.
• Dividend: No dividend was declared for FY2025 or FY2024, as the Group opted to reserve funds for business opportunities and working capital.
• Cash Position: Cash and bank balances decreased from \$14.2 million to \$10.6 million, mainly due to investment in quoted securities and repayment of loans and leases.

Historical Performance Trends

The Group’s profitability in FY2024 was buoyed by a significant one-time reversal of impairment (\$2.9 million) on its freehold building. Excluding this, core profits have remained modest. Revenue from hotel operations has been stable, with minor fluctuations due to foreign exchange effects (Korean Won depreciation), while the investments and asset management segments contributed little to topline growth.

Exceptional Earnings and Expenses

• FY2024’s profit included a \$2.9 million reversal of impairment on a freehold building, which did not recur in FY2025.
• FY2025 saw a foreign exchange loss of \$0.3 million due to remittances in KRW to SGD.
• Staff costs declined due to a reduction in headcount.
• The Group recognized a fair value gain on quoted debt securities in FY2025.

Asset Revaluation

No revaluation was performed in FY2025. The reversal of impairment in FY2024 was based on an independent valuation. No such event occurred in the current year.

Share Buybacks, Dilution, and Placements

• No shares were purchased, cancelled, or disposed of in FY2025. Treasury shares remained unchanged at 829,600.
• Warrants outstanding as of 31 July 2025 totaled 88,984,354. If fully exercised, share capital would increase to 325,817,927 shares. No new warrants were issued or exercised in FY2025.
• No new private placements or rights issues in FY2025.

Cash Flow Analysis

• Operating Activities: Net cash used was \$2.6 million, primarily from the purchase of quoted investments.
• Investing Activities: Generated \$0.3 million, mainly from interest received.
• Financing Activities: Used \$0.5 million, mainly for repayment of loans and leases.
• Overall, cash and bank balances decreased by \$3.6 million.

Dividend Policy and Distribution

• No dividend was declared for the current or previous financial years.
• The Group states its intention to reserve funds for business opportunities and working capital.

Directors’ Remuneration

• Directors’ fees for FY2025 were \$106,000, down from \$140,000 in FY2024.

Outlook and Risks

The Group expresses cautious optimism for the hotel sector in Seoul, supported by stable political and economic conditions, and growth in international tourism. However, it highlights key risks including foreign exchange volatility, rising labor costs, inflation, regional competition, and geopolitical uncertainties. The Group intends to focus on cost control, operational efficiency, and revenue optimization.

Significant Events and Corporate Actions

• No new subsidiaries, associates, or disposals in FY2025.
• No known subsequent events post-reporting period affecting these financials.
• No related-party transactions requiring disclosure.

Conclusion & Investment Recommendation

Overall Assessment: Datapulse Technology Limited’s FY2025 results reflect a marked decline in profitability, primarily due to the absence of exceptional gains that boosted FY2024’s bottom line and the adverse impact of currency translation losses. Core hotel operations remain steady, but topline and earnings growth are muted, and cash reserves have declined due to investment activities and loan repayments. The Group remains in a strong net asset position and has no significant debt.

If you are currently holding the stock: Investors should consider holding their positions if seeking long-term exposure to the Seoul hotel market, given the Group’s stable asset base and no immediate liquidity risk. However, the lack of dividends and muted profit growth may limit near-term upside. Monitor for any strategic initiatives, asset revaluations, or improved operating performance in future periods.

If you are not holding the stock: Prospective investors may wish to remain on the sidelines until there is clearer evidence of earnings growth, new business initiatives, or a resumption of dividend payouts. The stock currently offers asset-backed stability but limited profit momentum and no yield.

Disclaimer: This analysis is based solely on the company’s published financial statements for FY2025. It is not investment advice. Investors should conduct their own research and consider their individual financial situation and risk appetite before making investment decisions.

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