Link: https://links.sgx.com/1.0.0/corporate-announcements/K4MI9XHXE6I4WQ3K/702862c8693db4521c2b5d50084bc89cc037caacfb0a6a9263cc4defd7d4cad4

Summary:

• Revenue rose 1.8% YoY to S$2.84 million in 1H 2025, mainly from favorable FX effects; underlying Malaysia hotel revenue in local currency fell on weaker business performance.

• Gross profit increased 1.1% YoY to S$1.29 million.

• Net profit fell 41.4% YoY to S$451,000 due to higher costs, lower other income, and reduced hotel segment performance.

• Total comprehensive income dropped 67.1% YoY to S$277,000, mainly on FX translation losses.

• Earnings per share: 0.48 Singapore cents (1H 2024: 0.82 cents).

• Administrative expenses declined 21.2% YoY, but other expenses rose 10.4% (mainly due to higher repairs and maintenance).

• Operating cash flow was S$705,000, slightly lower YoY; cash and cash equivalents grew to S$3.98 million.

• No interim dividend declared for 1H 2025; will be reviewed year-end.

• Net asset value per share was unchanged at S$0.85.

• Hospitality segment profit dropped due to lower occupancy/rates (competition from new hotels, minimum wage hikes, higher operating costs in Malaysia).

• Ongoing property activities: Awaiting contractor bids for a new Kea Farm high-rise; Entertainment Complex hotel/function room conversion pending plan approval.

• Outlook: Hotel business faces continued margin and demand pressures; management remains cautious and is seeking new, sustainable opportunities.