IPC Corporation Ltd FY2025 Financial Results: No Dividend Declared, Loss After Tax Due to Capital Gains Tax Provision

IPC Corporation Ltd FY2025 Financial Analysis: Weaker Performance Amid Asset Divestment and China Headwinds

IPC Corporation Ltd, a property and investment holding company listed on the Singapore Exchange, has released its results for the 6 months and full year ended 31 December 2025. The report highlights a challenging year for the Group, marked by operational headwinds in China, significant asset reclassifications, and a major divestment. Below is a structured analysis of the key financial metrics, trends, management commentary, and events impacting the business.

Key Financial Metrics and Performance Table

Metric	2H 2025 (6m to Dec)	1H 2025 (6m to Jun)	2H 2024 (6m to Dec)	YoY Change	QoQ Change
Revenue (S\$’000)	1,131	791	1,188	-4.8%	+43.0%
Gross Profit/(Loss) (S\$’000)	(786)	144	504	NM	NM
Net Profit/(Loss) After Tax (S\$’000)	(2,143)	(1,128)	6,350	NM	NM
Earnings Per Share (Basic, cents)	(2.51)	(1.32)	7.45	NM	NM
Dividend per share (cents)	0	0	0	No change	No change

Historical Performance Trends

Revenue for FY2025 was S\$1.922 million, a 14% decline from S\$2.235 million in FY2024, mainly due to weaker sales in Zhuhai, China.
Gross profit swung to a loss of S\$0.642 million for FY2025 (versus a profit of S\$0.87 million in FY2024), primarily due to higher depreciation charges from asset reclassification and weaker sales.
Net profit after tax for FY2025 was a loss of S\$3.271 million, a sharp reversal from a profit of S\$6.065 million in FY2024.
Earnings per share (EPS) turned negative, at -3.84 cents (FY2024: +7.11 cents).

Asset Divestment and One-Offs

IPC divested its financial assets at FVPL (a preference share investment in Nest Hotel Japan Corporation, NHJC) for JPY2.6 billion. This generated a fair value gain of S\$9.827 million, but was offset by an impairment loss of S\$1.093 million, higher depreciation (S\$1.617 million), and a write-down on properties developed for sale (S\$1.093 million).
The disposal also resulted in a capital gains tax provision of S\$5.508 million, turning pre-tax profit of S\$2.245 million into a net loss after tax for the year.

Balance Sheet and Cash Flow Highlights

Net assets per share fell to S\$0.53 (Group) from S\$0.57 a year ago.
Cash and cash equivalents surged to S\$17.7 million (from S\$1.2 million), mainly from the divestment of the NHJC investment.
Borrowings increased slightly to S\$6.35 million. Bank borrowings remain secured against Group property assets.
No new share issuance, buybacks, or dilution occurred during the year.

Directors’ Remuneration

Executive directors voluntarily maintained a 20% reduction in their remuneration for the sixth consecutive year.

Related Party Transactions

A related party transaction was recorded: Disposal of property, plant and equipment to Director Ms. Lauw Hui Kian for S\$165,000. No general mandate for interested person transactions is in place.

Dividend Policy

No dividend was declared for FY2025, compared to no dividend in the prior year. The company is preserving cash to pursue strategic business opportunities.

Chairman’s Statement and Management Commentary

“The business environment in China is expected to remain challenging for Grand nest HOTEL zhuhai, China, which faces additional room supplies from repurposed properties as result of the prolonged property slump. This is further compounded by slowdown in domestic consumption and institutional spending.”

The tone is clearly cautious and negative, reflecting ongoing headwinds in China and a conservative approach to cash management.

Significant Events and Outlook

Major divestment of a Japanese asset delivered a one-off gain but also triggered a large capital gains tax expense.
Reclassification of assets (from held for sale to property, plant and equipment) led to higher depreciation and asset impairments.
No mention of legal cases, natural disasters, or regulatory penalties.
The group sees a difficult operating environment in China, with excess supply and weak demand in property and hospitality sectors.

Conclusion and Recommendations

Overall Assessment: IPC Corporation Ltd delivered a weak set of results for FY2025, swinging from profit to loss. Despite a strong cash position from divestment, operational headwinds in China, asset impairments, and lack of recurring profits indicate fundamental challenges. The absence of dividends and management’s negative tone about the outlook reinforce a conservative and defensive posture.

Investor Action Recommendations

If you are currently holding the stock: Consider reducing exposure or holding only if you are confident in management’s ability to redeploy cash into accretive investments. The company faces structural headwinds in its core China market, and there is no immediate catalyst for a turnaround.
If you are not currently holding the stock: It is advisable to remain on the sidelines until there is evidence of a sustainable turnaround in operating performance or clear visibility on new, profitable investments. The risks currently outweigh the potential rewards, given the weak operational outlook and lack of dividends.

Disclaimer: This analysis is based solely on information disclosed in the company’s latest financial report and does not constitute investment advice. Investors should perform their own due diligence and consult a qualified financial advisor before making any investment decisions.