Alset International Limited FY2025 Financial Analysis: Performance, Trends, and Outlook

Alset International Limited released its unaudited financial statements for the year ended 31 December 2025. The report reveals substantial changes in revenue, profitability, and operational structure, with highlights on property development, food & beverage, and investment segments. Below, we analyze the key financial metrics, performance trends, and provide insights into future outlook for investors.

Key Financial Metrics and Comparative Analysis

Historical Performance Trends

Alset International’s revenue collapsed YoY from S\$22.4 million in FY2024 to S\$0.3 million in FY2025, primarily due to the absence of sales of lots from the Black Oak project. Gross profit also fell sharply, and net losses widened modestly. The property development segment contributed 18% of revenue, while food & beverage (mainly from a new café acquired in FY2025) contributed 82%. Investment business saw increased fair value losses, further pressuring earnings.

Exceptional Expenses and Earnings

• Impairment Losses: S\$5.7 million impairment on associates recognized in FY2025.
• Fair Value Losses: S\$3.2 million net fair value loss on financial assets at FVTPL, S\$0.8 million fair value loss on promissory notes, and S\$0.2 million fair value loss on derivative liabilities.
• Other Expenses: Net foreign exchange loss of S\$3.2 million and elevated ECL allowances on related parties and associates.
• Offsetting Factors: Bad debt write-offs, withholding tax expenses, and fair value losses on convertible promissory notes decreased compared to FY2024.

Divestments and Asset Sales

• Disposal of food & beverage operations (HWH International Inc.) to Alset Inc. on 20 November 2024.
• Proceeds from disposal of financial assets (S\$51.1 million) offset by purchases of financial assets (S\$62.9 million).

Related-Party Transactions

• Acquisition of F&B One Pte. Ltd. from Chan Heng Fai & Chan Tung Moe (S\$219,000).
• Management fee paid to Alset Inc. (S\$1.29 million).

Cash Flow and Working Capital

The Group ended FY2025 with S\$21.6 million in cash and cash equivalents, down S\$4.6 million from FY2024. Operating cash flow was positive at S\$3.9 million, aided by working capital adjustments (receivables and payables changes). Investing activities saw net outflows due to financial asset purchases. Financing activities were minimal, mainly lease payments.

Events Impacting Performance and Outlook

• Completion of lot sales at Black Oak and new contract-build agreements anticipated for FY2026.
• Challenges in land development due to floodplain and slope issues, with final approvals expected in Q1/Q2 2026.
• Continued strategy to source land with reimbursement for infrastructure costs.
• Retained food and beverage interests via listed shares in HWH International Inc. and new café operations.
• Investment business expansion into listed shares and potential for further investments.

Corporate Actions and Share Capital

• No share buybacks, dilution, placements, or outstanding convertibles.
• Share capital and issued shares were unchanged at 3,492,713,362.
• No dividend was declared or recommended for FY2025 due to net losses.

Chairman’s Statement

No explicit Chairman’s Statement was included in the report. The tone of management commentary is generally cautious, reflecting operational challenges and a focus on strategic flexibility in property development and prudent expansion in food & beverage and investment segments.

Directors’ Pay/Remuneration

The report notes increased staff costs, especially higher director salaries and bonus payments, contributing to the rise in administrative expenses.

Forecast and Outlook

Management expects contract-build agreements and property development approvals in 2026, with continued efforts to optimize sale and/or rent products for remaining lots. In food & beverage, the Group remains open to selective expansion aligned with long-term objectives. Investment segment will see ongoing exploration of listed shares and assets. There are no significant cyclical factors affecting turnover or earnings as per the report.

Conclusion & Investment Recommendations

Overall Assessment: The financial performance of Alset International Limited for FY2025 is weak, driven by a dramatic fall in property sales, persistent losses, and exceptional expenses. Although operating cash flow is positive, asset sales and impairment losses highlight ongoing challenges. The company is in a transition phase, strategically repositioning its property development and food & beverage segments. Management remains cautious and focused on capital discipline.

• If you currently hold this stock: Consider reviewing your exposure. The lack of dividends, persistent losses, and uncertain near-term outlook suggest caution. Unless you have strong conviction in management’s turnaround strategy and long-term property development plays, it may be prudent to reduce or exit your position, particularly if better opportunities exist elsewhere.
• If you are not currently holding this stock: It is advisable to remain on the sidelines. The company faces structural headwinds and operational uncertainties. Monitor for signs of successful execution in property development, improved profitability, or renewed growth in food & beverage and investment segments before considering entry.

Disclaimer: This article is based strictly on information disclosed in Alset International Limited’s FY2025 unaudited financial report. It does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making investment decisions.

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