Dear Shareholders, On behalf of the Board of Directors of IPC Corporation Ltd (“IPC” or the “Group”), it is my pleasure to present to you our annual report for the financial year ended 31 December 2025 (“FY2025”). The Group’s main business and investments in hospitality are primarily focused in Japan and China for FY2025.
2025 presented unprecedented challenges amidst disrupted global orders and heightened tensions between the US and China, casting a shadow of uncertainty over social and economic landscapes worldwide. Despite the US Federal Reserve cutting interest rates in 2025, the economic benefits were offset by a weaker US dollar against most trading currencies.
In Japan, our hotel management company thrived, buoyed by record tourism driven by a weak JPY. Capitalising on the positive sentiment in the tourism industry, we have successfully divested our investment in Nest Hotel Japan Corporation ("NHJC"), a 37.3% stake held in preference shares, for JPY 2.6 billion, unlocking cash for strategic review and new investments.
However, the Group’s Grand nest HOTEL zhuhai in Zhuhai, China and property assets faced significant headwinds. The year was challenging with intense competition from additional room supplies from repurposed properties as a result of the prolonged property slump. This was further compounded by government spending cuts on lodging and F&B for civil servants and a slowdown in domestic consumption.
The Group recorded sales of S$1.922 million for the year ended 31 December 2025 compared to S$2.235 million for the previous financial year. The decrease was mainly due to the decrease in the sales revenue in Zhuhai, China.
Through the divestment of the 37.3% stake in NHJC, a fair value gain of S$9.827 million was realised. However, after netting off the impairment loss of S$1.093 million, remeasurement of depreciation of S$1.617 million on the property, plant and equipment in Zhuhai, China and the write-down on properties developed for sale of S$1.093 million in Zhuhai, China, the Group recorded a net other gain of S$5.894 million for FY2025.
The Group’s profit before tax was S$2.245 million, but a S$5.508 million capital gain tax provision from disposing financial assets led to a S$3.271 million loss after tax.
We remain committed to turning around our hotel business in China, optimising costs, and navigating the challenging environment expected to persist in 2026. To enhance shareholder value, we will actively seek new investment opportunities and prioritising cash conservation. Given this focus, no dividend is declared for this financial year. Thank you for your understanding and cooperation.
For the sixth year running, our directors have again taken a voluntary 20% reduction in their remuneration for FY2025. I would like to thank them for their understanding, as well as for their guidance and advice to the Group.
To close, I would also like to express my gratitude to all employees, shareholders and business partners. We appreciate your unwavering commitment in the midst of all the challenges. Let us look forward to a brighter and stronger 2026 for IPC!
Chairman & Chief Executive Officer