Link: https://links.sgx.com/1.0.0/corporate-announcements/A2UD1KPYLXNAK6FG/fbe2ea8ffc4f641908b6c526e23cb53e4875d5c2b19e20404c9aaf211a298288

Summary:

• What changed in sales (Revenue): S$66.96m, up 2% year-on-year. Hotels did better (S$33.39m, +8%) thanks to stronger travel. Property was steady (S$33.57m, +1%).

• Bottom line (Net profit/loss): The company still made a loss, but it’s smaller. Net loss was S$5.90m vs S$8.29m last year. Loss to shareholders was S$4.85m; EPS: -0.25 cents.

• Core performance (Operating results): Profit from running the business improved. Gross profit rose 8% to S$29.09m, and operating profit rose 18% to S$11.34m. However, interest costs remained heavy at S$15.20m, which kept the company in a net loss.

• Costs (Expenses): Admin costs increased to S$18.11m, mainly due to higher wages in Malaysia. Selling and marketing costs fell slightly to S$1.52m.

• Cash in and out (Cash flow): Day-to-day operations generated more cash (S$13.90m vs S$8.79m). The group also received cash from an asset sale in Dubai, lifting investing cash inflow to S$4.03m. Financing cash outflow was S$19.97m due to interest and loan repayments.

• Financial position (Balance sheet): Assets stand at S$1.18b and equity at S$470.48m. Net debt-to-equity is 1.02 (or 1.34 excluding non-controlling interests), meaning leverage is still high but manageable. Development properties reduced to S$543.87m as projects progressed and costs were recognized.

• Debt picture (Borrowings): Total borrowings are S$504.36m (S$289.87m short-term, S$214.49m long-term). Shareholder loans are S$57.66m and may be extended. Commercial papers outstanding total S$109.43m.

• Support from insiders (Related-party financing): Directors subscribed to S$79.75m of commercial paper. The controlling shareholder has committed to take up to S$83.78m of rights issue convertible bonds. Some shareholder loans were extended at 6.25% for one year.

• Shareholder returns (Dividend): No interim dividend—management is keeping cash for operations and debt service.

• What to watch next (Outlook):

  • Hotels in Malaysia should benefit from visa-free travel for Chinese visitors and preparations for Visit Malaysia 2026.

  • Malaysia property could see support from relaxed MM2H rules.

  • China property remains weak, which is a risk.

  • Overall, improving hotel trends are helping, but high interest costs and debt remain key constraints.