Green Build Technology Limited FY2025 Financial Analysis: Navigating Uncertainty Amid Strategic Shifts

Green Build Technology Limited, a Singapore-listed company, released its condensed interim financial statements for the year ended 31 December 2025. The report highlights substantial challenges, including recurring losses, a material uncertainty regarding going concern, and ongoing strategic repositioning focused on hotel management and consultancy. This article summarizes the company’s key metrics, business developments, and outlook for investors.

Key Financial Metrics and Performance Comparison

Historical Performance Trends

• Revenue Growth: The company saw a sharp increase in revenue from S\$0.09 million in FY2024 to S\$1.22 million in FY2025, reflecting the consolidation of hotel management and consultancy services for a full year after the acquisition of Elements Plus. However, this growth is from a very low base, and the company remains loss-making.
• Profitability: Gross profit margin turned positive to 4.19% in FY2025 from a negative margin in FY2024, indicating improved cost management and better business mix. Nevertheless, net losses deepened to S\$1.05 million (from S\$0.60 million), mainly due to increased administrative expenses and a full year of hotel operations expenses versus just one month in the prior year.

Divestments, Fundraising, and Corporate Actions

• Discontinued Operations: The company completed the strike-off of its subsidiary RPM and discontinued all contracts with a major trade debtor in China, resulting in nil revenue from discontinued operations and a net loss of S\$0.12 million from these activities in FY2025 (against a net profit of S\$0.21 million in FY2024).
• Share Placement: 50,000,000 new ordinary shares were issued in a placement at S\$0.0153 per share, raising S\$765,000 (net proceeds S\$697,000) for working capital purposes. This resulted in share dilution but provided much-needed liquidity.
• No Dividends: No dividends were declared for FY2025 or FY2024 to conserve cash for ongoing and future projects.

Cash Flow and Balance Sheet Highlights

• Cash Position: Cash and bank balances increased marginally to S\$0.22 million as at end-FY2025, up from S\$0.99 million, mainly due to net inflow from financing activities (share placement) and investing activities, offset by operating losses.
• Net Liabilities: The group remains in a net liability position, with current liabilities exceeding current assets by S\$1.895 million. A significant proportion of liabilities comprises unpaid salaries and director fees, which are interest-free, unsecured, and repayable on demand.
• Lease Liabilities: The group derecognized S\$1.88 million in lease liabilities after not renewing a hotel property lease due to unaffordable rental increases.

Exceptional and Notable Items

• No audit review for the current financials; the prior year had a disclaimer of opinion by auditors regarding going concern, expected credit losses, and discontinued operations. The board confirms these issues have been adequately disclosed but not fully resolved yet.
• Major restructuring included the disposal of legacy China business and a pivot to Singapore-based hotel management and consultancy.
• Directors and former directors are owed a substantial sum (S\$1.21 million), which could pose future cash flow risks if demanded for repayment.

Macroeconomic and Business Environment

• The downturn in the Chinese real estate market, trade tensions, and a slowdown in property development are cited as factors intensifying competition and constraining new business opportunities.
• The group’s strategy is to focus on Singapore’s hospitality sector, leveraging its Elements Plus subsidiary and exploring new business and fundraising opportunities.

Chairman’s Statement

No direct Chairman’s Statement was presented, but the closing section states:

“BY ORDER OF THE BOARD

Li Mingyang

Chairman and Executive Director of the Board

26 February 2026″

The overall tone of the report is cautious but constructive. Management openly acknowledges going concern risks, emphasizes efforts to diversify revenue, and highlights active fundraising and restructuring measures. There is no overt optimism, but the company positions itself as taking responsible steps to stabilize and reposition.

Conclusion and Investor Recommendations

Outlook: The company’s financial performance remains weak, with continued net losses, a net liability position, and a material uncertainty on going concern, despite some improvement in revenue and gross margin. The company has taken concrete steps to restructure, raise funds, and diversify, but tangible profitability and financial stability have yet to be demonstrated.

• If you are currently holding this stock:
  • Exercise caution. Consider the risks of further dilution, ongoing losses, and potential liquidity challenges. Monitor for clear signs of turnaround—such as sustained profitability, positive operating cash flows, and resolution of legacy audit issues—before increasing exposure. If risk tolerance is low, it may be prudent to reduce exposure.
• If you are not currently holding this stock:
  • It is advisable to stay on the sidelines for now. Wait for evidence of successful execution on the new hotel management strategy, improved balance sheet health, and resolution of going concern uncertainties before considering an entry position. This stock is only suitable for speculative investors with a high risk tolerance.

Disclaimer: This analysis is strictly based on the company’s published financial statements and is not investment advice. All investments carry risk; past performance is not necessarily indicative of future results. Investors should conduct their own due diligence or consult a licensed professional before making any investment decisions.

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