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IPC Corporation Ltd
 
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Chairman's Message

Dear Shareholders,

On behalf of the Board of Directors, I present to you the Annual Report of IPC Corporation Limited ("IPC" or "The Group") for the financial year ended 31 December 2016 (FY 2016).

The Group recorded lower sales of S$3.920 million for FY 2016 compared to S$22.889 million for the previous financial year. The result, as expected, was due to the divestment of IPC’s seven hotels in Japan at the end of FY 2015.

The decrease in sales for FY 2016 compared to the previous year was mainly due to the absence of sales from the Oiso project in Japan and the absence of rental income from the seven hotels which were sold. As a result, The Group’s gross profit decreased by 92.1 percent to S$1.274 million compared to S$16.175 million in FY 2015.

The other losses of S$9.444 million was mainly from the currency translation losses reclassified to income statement upon deconsolidation of subsidiaries in Japan after the full redemption of capital in Q1 FY 2016. In addition, the re-measurement of depreciation and amortisation due to the reclassification of non-current asset held for sale to prepaid leasehold properties and property, plant and equipment resulted in Group loss before tax of S$13.156 million. An after-tax loss of S$11.540 million for FY 2016 was recorded.
During the year under review, The Group continued to operate the Grand nest HOTEL zhuhai, our boutique hotel in China, with 217 theme designed rooms and integrated meeting and conference facilities for the business segment. The year ended with improved operating revenue and gross operating profits for the hotel.

However, as the operating climate of overall business in China was subdued and expected to remain so, at least for a foreseeable future, The Group had put on hold the addition of more rooms on the available space that is annexed to Grand nest HOTEL zhuhai.

Undeniably, many external volatile factors have casted a shadow on the sectors in which we operate. However, The Group will continue to focus on hospitality business expansion and to seek investment opportunities to strengthen its operating performance.

I would like to thank my fellow board members for their commitment and dedication during the past year. My personal gratitude, and that of the board, goes to all employees, customers and other business partners. This has not been an easy year for The Group, but we are up to the challenges that have come our way. I am confident that with your support, we will be ready to face future opportunities with invigorated enthusiasm.


NGIAM MIA JE PATRICK
Chairman & Chief Executive Officer


IPC Corporation Ltd
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