Emerging Towns & Cities Singapore Ltd. Q3 2025 Financial Analysis

Emerging Towns & Cities Singapore Ltd. (“ETC”) has released its unaudited condensed interim financial statements for the third quarter and nine months ended 30 September 2025. The report reflects the company’s ongoing transition away from Myanmar property development (now fully divested) to focus on its live streaming e-commerce business in China.

Key Financial Metrics and Performance Overview

*Q2 2025 revenue not specifically listed; inferred from nine-month and quarterly progression.
†Quarter-over-quarter change is approximate as Q2 2025 figures are not directly disclosed.

Historical Performance Trends

• ETC has pivoted from Myanmar property development (discontinued, with disposal completed in December 2024) to live streaming e-commerce in China.
• Revenue from continuing operations (PRC e-commerce) has surged YoY, driven by expansion of both sales teams and subsidiaries (now 56 in China).
• Staff costs and operating expenses have also increased significantly, reflecting the scale-up of operations and marketing in China.
• For the nine months ended 30 September 2025, ETC recorded a small net loss (S\$146,000), but Q3 was profitable, indicating possible operational turnaround.

Exceptional Earnings, Expenses, and Corporate Actions

• Divestment: The disposal of its Myanmar business (DAS Group) was completed in December 2024, helping ETC to focus on its China business.
• Fundraising: Convertible bonds were issued in July 2025 for approximately 968 million shares, substantially increasing potential dilution (up to 121% of existing share capital).
• Asset Growth: Significant increases in property, plant, equipment, and right-of-use assets due to new leases and subsidiary expansion in China.
• No Dividend Proposed: ETC is reserving cash for working capital, with no dividend declared for the current or prior periods.

Macroeconomic & Industry Outlook

ETC’s new focus on live streaming e-commerce in China aligns with robust sector trends. The Chinese health foods and consumer goods market is growing, with e-commerce (including live streaming) outpacing traditional retail. However, macroeconomic conditions in China remain cautious, with domestic consumer sentiment still recovering. ETC is positioned to benefit from these trends, but admits that deteriorating macro conditions could impact performance.

Chairman’s Statement

“Emerging Towns & Cities Singapore Ltd. is committed to identifying and investing in niche markets where we can add value. Since 2Q2024, we have ventured into live streaming e-commerce and related businesses in the PRC. Barring any unforeseen circumstances, which include a deterioration of China’s macroeconomic environment, the Directors expect the Group to be profitable for the full year of 2025.”

The statement is cautiously optimistic, highlighting both growth in China and the risks from the broader economic environment.

Share Capital, Dilution, and Related-Party Transactions

• Convertible Bonds & Options: As at September 2025, ETC has outstanding convertible loan (~205 million shares), convertible bonds (968 million shares), and 15 million share options. If fully converted, these would more than double the share base, with material dilution for existing shareholders.
• No Share Buybacks: The company holds no treasury shares, and neither do its subsidiaries.
• No General Mandate for Related-Party Transactions: No general mandate for IPTs is in place.

Cash Flow and Working Capital

• Net cash generated from operating activities for 9M2025 was S\$4.8 million, showing improved operational efficiency.
• Investing activities used S\$962,000, mainly for capex in China.
• Financing activities used S\$669,000, mainly for lease liability payments, offset partially by proceeds from a bank loan.

Acquisitions and Subsidiary Expansion

• ETC incorporated 19 new subsidiaries in China during the reporting period, reflecting aggressive expansion in e-commerce.
• It also acquired a 49% stake in Sichuan Jiyu Technology Co., Ltd. (software development).
• Two minor subsidiaries were disposed of for negligible proceeds.

Risks and Forward-Looking Statements

• ETC’s future performance depends on the continued recovery of Chinese consumer sentiment and successful execution in the live streaming e-commerce market.
• Significant share dilution is possible if all convertibles and options are exercised.
• No dividend is likely in the short term, as the company prioritizes working capital for expansion.

Conclusion & Investor Recommendations

Overall, ETC’s Q3 2025 financial performance appears improving but cautious. The successful divestment of the loss-making Myanmar business and the profitable Q3 in China signal a turnaround. However, risks remain from potential dilution and macroeconomic uncertainties in China.

• If you currently hold ETC shares: Consider maintaining your position if you are comfortable with risk and believe in the China e-commerce story. Watch carefully for full-year profitability confirmation and potential dilution from convertibles. The absence of dividends means this is a growth, not an income, play.
• If you do not currently hold ETC shares: Consider waiting for sustained profitability and clarity regarding dilution before entering. The company’s rapid expansion is promising, but risk remains elevated due to industry competition and macroeconomic factors.

Disclaimer: This analysis is based solely on disclosed financial statements and does not account for real-time market conditions or external news. Investors should conduct further due diligence and consult professional advice before making investment decisions.

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