Sunrise Shares Holdings Ltd.: Financial Analysis for the 18-Months Ended 30 June 2025
Sunrise Shares Holdings Ltd. has released its audited financial statements for the 18-month period ended 30 June 2025. This analysis highlights the key financial metrics, notable business events, and material differences between the audited and unaudited results, providing investors with a comprehensive view of the company’s recent performance and outlook.
Key Financial Metrics and Performance Summary
| Metric |
18 Months Ended 30 Jun 2025 (Audited) |
18 Months Ended 30 Jun 2025 (Unaudited) |
Variance |
| Revenue |
S\$5,037,000 |
S\$5,037,000 |
– |
| Gross Profit |
S\$2,356,000 |
S\$2,356,000 |
– |
| Loss Before Tax |
(S\$2,541,000) |
(S\$2,254,000) |
(S\$288,000) |
| Net Loss |
(S\$2,620,000) |
(S\$2,333,000) |
(S\$288,000) |
| Total Assets |
S\$5,933,000 |
S\$6,623,000 |
(S\$690,000) |
| Total Equity |
S\$2,206,000 |
S\$2,922,000 |
(S\$716,000) |
| Dividend |
Not disclosed |
Not disclosed |
– |
Note: Period-over-period comparisons (YoY, QoQ) are not available as only one comparative period (18 months) is provided and the report does not disclose prior period figures or quarterly breakdowns.
Material Adjustments and Exceptional Items
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Impairment on Financial Assets: An allowance for expected credit losses (ECL) of S\$288,000 was recorded due to an extension of settlement on the remaining sale consideration for the disposal of Shenzhen Sunrise Development Limited. This resulted in a higher loss before tax in the audited results versus the unaudited figures.
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Goodwill and Share Capital Adjustment: The acquisition of Falcon Pace Sdn Bhd led to adjustments in goodwill and share capital. The fair value of consideration shares was re-measured according to the share price at the acquisition completion date, resulting in a reduction in both goodwill and share capital.
-
Foreign Currency Translation: The increase in currency translation reserves was linked to the acquisition of Falcon Pace and the translation of goodwill using different exchange rates at acquisition and reporting dates.
-
Gain on Disposal of Subsidiaries: There was an increase in gain on disposal of subsidiaries due to the reclassification of foreign currency translation reserves.
-
Lease Liabilities: There was a reclassification between current and non-current lease liabilities, impacting the statement of financial position.
Cash Flow Highlights
-
Net cash used in operating activities: (S\$1,885,000)
-
Net cash used in investing activities: (S\$901,000)
-
Net cash from financing activities: S\$1,761,000 (largely from loan drawdowns)
-
Cash and cash equivalents at period end: S\$681,000
Divestments, Acquisitions, and Corporate Actions
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Disposal of Subsidiaries: The company disposed of its equity interest in Shenzhen Sunrise Development Limited, which involved the extension of settlement terms and contributed to the impairment of financial assets.
-
Acquisition of Falcon Pace Sdn Bhd: The acquisition was completed during the period, with adjustments made to goodwill and share capital based on the acquisition date share price.
-
Fundraising: Loan drawdowns of S\$3.25 million and repayments of S\$1.27 million were recorded.
-
No Dividend Announced: There is no indication of dividend declaration for the period.
Historical Performance Trends
The company continues to operate at a loss, with negative net income and persistent operating cash outflows. The period saw further asset restructuring through both acquisition and disposal activities. Adjustments in goodwill and share capital underline the impact of fluctuating share prices and foreign currency movements. Shareholders’ equity declined primarily due to the losses incurred during the period and adjustments following the Falcon Pace acquisition.
Errors and Inconsistencies
-
Material adjustments were made between the unaudited and audited results, notably the recognition of impairment losses, revaluation of goodwill and share capital, and the reclassification of lease liabilities. These adjustments underscore the importance of reviewing audited results for a true representation of the company’s financial position.
Outlook and Risk Factors
The company faces ongoing challenges in generating positive earnings and cash flows. The impairment of receivables and persistent losses highlight credit and operational risks. The recent acquisition and divestment activities signal an ongoing restructuring effort, but the lack of dividend and operating profitability may concern income-focused investors. No specific mention was made in the report of legal disputes, natural disasters, or significant macroeconomic threats, but the company’s sensitivity to foreign exchange rates is evident.
Conclusion and Investor Recommendations
Overall Assessment: The financial performance of Sunrise Shares Holdings Ltd. appears weak, with continued losses, negative operating cash flow, and no dividend payout. The company is undergoing restructuring, as reflected by the acquisition and disposal of subsidiaries, but has yet to demonstrate a turnaround to profitability or generate positive cash flows from operations.
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For Current Shareholders: Consider reassessing your position in light of continued losses and weak cash flow. If you have a high risk tolerance and believe in management’s restructuring strategy, you may hold, but be prepared for potential further volatility and dilution.
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For Prospective Investors: Caution is advised. Given the ongoing losses, lack of dividend, and uncertainty surrounding the company’s turnaround, it may be prudent to wait for clearer evidence of operational improvement or profitability before investing.
Disclaimer: This analysis is based solely on the information provided in the company’s 18-month financial report ended 30 June 2025. It does not constitute investment advice. Investors should conduct their own due diligence and consider their personal financial situation before making any investment decision.
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