VCPlus Limited Q3 & 9M 2025 Financial Results Analysis

VCPlus Limited, a Singapore-listed fintech and blockchain consultancy, has released its unaudited condensed interim financial statements for the third quarter and nine months ended 30 September 2025. The report provides insights into the company’s operating performance, financial position, cash flows, and strategic developments for the period.

Key Financial Metrics: Q3 and 9M 2025

Historical Performance Trends

• Revenue Decline: Revenue fell sharply both on quarterly and year-to-date basis. The nine-month revenue was S\$160,000, a drop of 77% YoY from S\$695,000. The third quarter revenue was only S\$4,000, down from S\$114,000 a year ago. Management attributes this to increased competition and loss of a significant client after a contract expired.
• Losses Widened: Net losses increased to S\$961,000 for 9M 2025, from S\$724,000 in 9M 2024 (+33.0% YoY). Q3 net losses were S\$342,000, up 43% YoY. Dilutive effects from fundraising increased share count, further impacting per-share metrics.
• Cost Controls: Operating expenses decreased by S\$319,000 YoY, primarily due to reduced cost of services, employee expenses, and other overheads.

Fundraising and Share Dilution

• During the period, VCPlus Limited raised S\$2.13 million through two share placements, resulting in an increase of 670 million shares (from 5.0 billion to 5.67 billion shares outstanding).
• Funds were used for business expansion (custodial services and RWA initiatives) and working capital, including professional fees and staff costs.
• No treasury shares or subsidiary holdings as of 30 September 2025.

Cash Flow and Financial Position

• Cash Position: Cash and cash equivalents increased to S\$808,000 from S\$140,000 at the end of 2024, mainly due to fundraising. Operating cash outflow remains high at S\$1.11 million for 9M 2025.
• Assets: Total assets rose to S\$3.09 million from S\$2.18 million, driven by fundraising and renewal of office lease (ROU asset).
• Liabilities: Total liabilities decreased to S\$916,000 (from S\$1.17 million), as advances from directors were repaid and trade payables fell, partially offset by new lease liabilities.
• Net Asset Value: NAV per share increased to S\$0.04 as at Q3 2025 (from S\$0.02 at YE 2024), mainly due to new capital injection.

Business Review & Strategic Direction

• Custody Plus: The Group’s MAS-licensed subsidiary is focusing on infrastructure for tokenization of real-world assets (RWA), aiming to link traditional finance with blockchain-based solutions. The business strategy revolves around being a central orchestrator for the RWA ecosystem.
• APEC Solutions: Undergoing a strategic pivot to blockchain consulting, with a recent engagement to develop stablecoin-based cross-border payments for the aviation industry. The company aims to replicate this model in other verticals.

Related-Party Transactions and Exceptional Items

• No general mandate for interested person transactions; no disclosable IPTs during the period.
• Provision for doubtful debts increased, with S\$32,000 impairment recognized in trade receivables.
• No dividends declared or recommended, in line with accumulated losses and lack of distributable profits.

Chairman’s Statement

“The Board of Directors of the Company hereby confirm that, to the best of their knowledge, nothing has come to their attention which may render the unaudited financial statements of the Company and the Group for the financial period ended 30 September 2025 to be false or misleading in any material aspect.”

Tone: The statement is neutral and factual, with no overt optimism or pessimism. It does not provide forward-looking commentary nor does it express confidence or concern about future prospects.

Significant Events & Outlook

• No material litigation, asset revaluations, or macroeconomic disruptions reported.
• Fundraising strengthened balance sheet, but operating losses and cash burn remain concerns.
• Strategic transformation towards blockchain consulting and RWA tokenization is highlighted as future growth avenues.

Conclusion & Investment Recommendations

Overall Assessment: VCPlus Limited’s financial performance for Q3 and 9M 2025 is weak, marked by steep revenue declines, widening losses, and ongoing cash burn. While management has taken steps to control costs and pivot strategically towards higher-growth blockchain verticals, the results have not yet translated to improved top-line or bottom-line performance. The business remains highly dependent on successful execution of its new strategy, competitive recovery, and prudent cash management.

• If you are currently holding the stock: Consider reviewing your position carefully. The company has improved its balance sheet with new funds and is undertaking strategic changes, but operating losses and revenue declines persist. Unless you have strong confidence in management’s ability to execute its blockchain consulting and RWA tokenization strategy, it may be prudent to reduce exposure or set stricter risk parameters.
• If you are not currently holding the stock: Exercise caution before initiating a position. The company’s fundamentals are weak, and turnaround prospects are not yet proven. Potential investors may wish to wait for evidence of sustained revenue recovery and successful execution of new business initiatives before considering entry.

Disclaimer: This analysis is based solely on the information disclosed in the company’s Q3 & 9M 2025 financial report. It does not constitute investment advice, and investors should do their own due diligence or consult a professional advisor before making investment decisions. Past performance is not indicative of future results, and all investments carry risk.

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