IPC CORPORATION LTD
AND ITS SUBSIDIARIES
SGX APPENDIX 7.2 ANNOUNCEMENT
FOR THE 6 MONTHS ENDED
30 JUNE 2024
Contents | Page |
Condensed interim consolidated statement of comprehensive income | 1 |
Condensed interim statements of financial position | 2 |
Condensed interim statements of changes in equity | 3 |
Condensed interim consolidated statement of cash flows | 4 |
Notes to the condensed interim consolidated financial statements | 5 |
Other information required by Listing Rule Appendix 7.2 | 12 |
CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE 6 MONTHS ENDED 30 JUNE 2024
Group | ||||
6 months ended 30 Jun | ||||
Notes | 2024 | 2023 | % | |
S$'000 | S$'000 | |||
Sales | 3 | 1,047 | 1,714 | (38.9) |
Cost of sales | (681) | (1,738) | (60.8) | |
Gross profit/(loss) | 366 | (24) | NM | |
Other income | 5 | 882 | 246 | NM |
Other gains/(losses), net | 5 | 43 | (3,854) | NM |
Expenses | 5 | |||
Distribution and marketing | (96) | (93) | 3.2 | |
Administrative | (1,356) | (1,517) | (10.6) | |
Finance | (124) | (143) | (13.3) | |
(1,576) | (1,753) | (10.1) | ||
Profit/(loss) before income tax | (285) | (5,385) | (94.7) | |
Income tax credit/(expense) | 6 | - | (47) | (100.0) |
Total profit/(loss) | (285) | (5,432) | (94.8) | |
Other comprehensive income/(loss) | ||||
Items that may be reclassified subsequently to profit or | ||||
loss: | ||||
Currency translation gain/(loss) arising from consolidation | 59 | (1,242) | NM | |
Items that will not be reclassified subsequently to profit or | ||||
loss: | ||||
Financial assets, at FVOCI - equity investments | ||||
- Fair value gain/(loss) | (24) | 20 | NM | |
Other comprehensive income/(loss), net of tax | 35 | (1,222) | NM | |
Total comprehensive income/(loss) | (250) | (6,654) | (96.2) | |
Earnings/(losses) per share for profit/(loss) attributable | ||||
to equity holders of the Company | ||||
(cents per share) | ||||
- Basic | (0.33) | (6.37) | ||
- Diluted | (0.33) | (6.37) |
NM:Not meaningful (change more than 100%)
NA:Not applicable
IPC CORPORATION LTD AND ITS SUBSIDIARIES | Page 1 |
CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION
AS AT 30 JUNE 2024
Group | Company | |||||
30 Jun 2024 | 31 Dec 2023 | 30 Jun 2024 | 31 Dec 2023 | |||
Notes | (Audited) | (Audited) | ||||
S$'000 | S$'000 | S$'000 | S$'000 | |||
ASSETS | ||||||
Current assets | ||||||
Cash and cash equivalents | 2,760 | 787 | 276 | 256 | ||
Trade and other receivables | 753 | 457 | 308 | 423 | ||
Properties developed for sale | 13 | 7,721 | 7,783 | - | - | |
Assets held for sale | 13 | 36,070 | 36,011 | - | - | |
Other assets | 31 | 31 | - | - | ||
47,335 | 45,069 | 584 | 679 | |||
Non-current assets | ||||||
Financial assets, at FVPL | 9 | 4,494 | 4,494 | 4,494 | 4,494 | |
Financial assets, at FVOCI | 10 | 82 | 106 | - | - | |
Other receivables | 41 | 4 | - | - | ||
Investment in associated companies | - | - | - | - | ||
Investment in subsidiaries | 11 | - | - | 44,120 | 44,120 | |
Property, plant and equipment | 441 | 442 | 299 | 357 | ||
5,058 | 5,046 | 48,913 | 48,971 | |||
Total assets | 52,393 | 50,115 | 49,497 | 49,650 | ||
LIABILITIES | ||||||
Current liabilities | ||||||
Trade and other payables | 3,861 | 4,030 | 2,877 | 2,157 | ||
Lease liabilities | 2 | 2 | 2 | 2 | ||
Current income tax liabilities | 6 | 9 | 127 | 9 | 120 | |
Borrowings | 14 | 1,109 | 3,686 | - | - | |
4,981 | 7,845 | 2,888 | 2,279 | |||
Non-current liabilities | ||||||
Lease liabilities | 1 | 2 | 1 | 2 | ||
Borrowings | 14 | 5,183 | - | - | - | |
5,184 | 2 | 1 | 2 | |||
Total liabilities | 10,165 | 7,847 | 2,889 | 2,281 | ||
NET ASSETS | 42,228 | 42,268 | 46,608 | 47,369 | ||
EQUITY | ||||||
Capital and reserves attributable to equity | ||||||
holders of the Company | ||||||
Share capital | 8 | 33,190 | 33,190 | 33,190 | 33,190 | |
Currency translation reserve | (6,282) | (6,341) | - | - | ||
Fair value reserve | (1,311) | (1,287) | - | - | ||
Retained earnings | 16,631 | 16,706 | 13,418 | 14,179 | ||
Total equity | 42,228 | 42,268 | 46,608 | 47,369 |
IPC CORPORATION LTD AND ITS SUBSIDIARIES | Page 2 |
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE 6 MONTHS ENDED 30 JUNE 2024
Attributable to Equity Holders of the Company | ||||||
Currency | Fair | |||||
Share | translation | value | Retained | Total | ||
capital | reserve | reserve | earnings | equity | ||
S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | ||
2024 | ||||||
As at 1 January | 33,190 | (6,341) | (1,287) | 16,706 | 42,268 | |
Total comprehensive income/(loss) for the period | ||||||
Profit/(loss) for the period | - | - | - | (285) | (285) | |
Other comprehensive income/(loss) for the period | - | 59 | (24) | - | 35 | |
- | 59 | (24) | (285) | (250) | ||
Unclaimed dividends | - | - | - | 210 | 210 | |
As at 30 June | 33,190 | (6,282) | (1,311) | 16,631 | 42,228 | |
2023 | ||||||
As at 1 January | 33,190 | (4,773) | (1,244) | 17,337 | 44,510 | |
Total comprehensive income/(loss) for the period | ||||||
Profit/(loss) for the period | - | - | - | (5,432) | (5,432) | |
Other comprehensive income/(loss) for the period | - | (1,242) | 20 | - | (1,222) | |
- | (1,242) | 20 | (5,432) | (6,654) | ||
As at 30 June | 33,190 | (6,015) | (1,224) | 11,905 | 37,856 |
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
FOR THE 6 MONTHS ENDED 30 JUNE 2024
Share capital | Retained | Total | ||
earnings | equity | |||
S$'000 | S$'000 | S$'000 | ||
2024 | ||||
As at 1 January | 33,190 | 14,179 | 47,369 | |
Total comprehensive income/(loss) for the period | ||||
Profit/(loss) for the period | - | (971) | (971) | |
- | (971) | (971) | ||
Unclaimed dividends | - | 210 | 210 | |
As at 30 June | 33,190 | 13,418 | 46,608 | |
2023 | ||||
As at 1 January | 33,190 | 17,117 | 50,307 | |
Total comprehensive income/(loss) for the period | ||||
Profit/(loss) for the period | - | (895) | (895) | |
- | (895) | (895) | ||
As at 30 June | 33,190 | 16,222 | 49,412 | |
IPC CORPORATION LTD AND ITS SUBSIDIARIES | Page 3 |
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE 6 MONTHS ENDED 30 JUNE 2024
Group | |||
6 months ended 30 June | |||
2024 | 2023 | ||
S$'000 | S$'000 | ||
Cash flows from operating activities | |||
Profit/(loss) before tax | (285) | (5,385) | |
Adjustments for | |||
- Depreciation | 40 | 595 | |
- Unrealised translation losses/(gains) | (16) | 25 | |
- Impairment loss on assets held for sale | - | 3,855 | |
- Gain on disposal of property, plant and equipment | (38) | - | |
- Reversal of payable due to striking off of creditor company | (663) | - | |
- Interest income | (1) | (6) | |
- Interest expenses | 124 | 143 | |
(839) | (773) | ||
Change in working capital | |||
- Other assets | - | 2 | |
- Properties | 75 | 546 | |
- Trade and other receivables | (333) | (133) | |
- Trade and other payables | 495 | 4,456 | |
Cash generated from/(used in) operations | (602) | 4,098 | |
Interest received | 1 | 6 | |
Income tax paid, net | (118) | (47) | |
Net cash provided by/(used in) operating activities | (719) | 4,057 | |
Cash flows from investing activities | |||
Purchases of property, plant and equipment | (78) | - | |
Proceeds from disposal of property, plant and equipment | 77 | (7) | |
Net cash provided by/(used in)investing activities | (1) | (7) | |
Cash flows from financing activities | |||
Interest paid | (124) | (143) | |
Unclaimed dividends | 210 | - | |
Proceeds from borrowings | 5,222 | - | |
Repayment of borrowings | (2,617) | (576) | |
Principal payment of lease liabilities | (1) | (2) | |
Net cash provided by/(used in)financing activities | 2,690 | (721) | |
Net increase/(decrease) in cash and cash equivalents | 1,970 | 3,329 | |
Cash and cash equivalents at beginning of financial period | 787 | 1,629 | |
Effects of currency translation on cash and cash equivalents | 3 | (27) | |
Cash and cash equivalents at end of financial period | 2,760 | 4,931 |
IPC CORPORATION LTD AND ITS SUBSIDIARIES | Page 4 |
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE 6 MONTHS ENDED 30 JUNE 2024
-
CORPORATE INFORMATION
IPC Corporation Ltd (the "Company") is listed on the Singapore Exchange and incorporated and domiciled in
Singapore. The address of its registered office is 1 Fusionopolis Place, #03-20 Galaxis (West Lobby), Singapore 138522.
The principal activities of the Company are investment holding, property investment and property development.
The principal activities of its subsidiary companies are investment holding, property investment and property development, investing and reselling properties, property consulting, hospitality services, operate fast food outlets and manufacture of food products. - BASIS OF PREPARATION
The condensed interim financial statements for the 6 months ended 30 June 2024 have been prepared in accordance with SFRS(I) 1-34Interim Financial Reporting issued by the Accounting Standards Council Singapore. The condensed interim financial statements do not include all the information required for a complete set of financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance of the Group since the last interim financial statements for the period ended 31 December 2023.
The accounting policies adopted are consistent with those of the previous financial year which were prepared in accordance with SFRS(I)s except for those effective beginning on or after 1 January 2024 as follows: - Amendments to SFRS(I) 1-1: Classification of Liabilities as Current or Non-current
- Amendments to SFRS(I) 16: Lease Liability in a Sale and Leaseback
- Amendments to SFRS(I) 1-1:Non-current Liabilities with Covenants
- Amendments to SFRS(I) 1-7 and SFRS(I) 7: Supplier Finance Arrangements
The Group does not expect any significant impact arising from applying these amendments.
The condensed interim financial statements are presented in Singapore Dollar (SGD or $) and all values in the tables are rounded to the nearest thousand ($'000), except when otherwise indicated.
The preparation of interim financial statements in conformity with SFRS(I)s requires management to exercise its judgement in the process of applying the Group's accounting policies. It also requires the use of certain critical accounting estimates and assumptions. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements.
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the carrying amounts of assets within the next interim period are included in the following notes:
- Note 9 - Valuation of investment in convertible preference shares
- Note 11 - Investments in subsidiaries with property-related assets
- Note 13 - Impairment assessment of property-related assets
3. SEGMENT AND REVENUE INFORMATION
These operating segments are reported in a manner consistent with internal reporting provided to Chief
Operating Decision Maker ("CODM") that are used to make strategic decisions. The CODM comprises the Chief
Executive Officer, the Managing Director and the Finance and Administration Director.
The CODM considers the business from both a geographic and business segment perspective. Geographically, management manages and monitors the business in three primary geographic areas namely China, Japan and Singapore. All the geographic areas are engaged primarily in the investment and property related business, which includes properties and income producing assets.
Business under "Properties" relate to property development, investing and reselling of properties. Business under "Hotel management" relates to rendering of hotel management services. Business under "Investment" relates to investment in convertible preference shares in Nest Hotel Japan Corporation ("NHJC"). Other services included within Singapore include investments which are included in the "Others" column
IPC CORPORATION LTD AND ITS SUBSIDIARIES | Page 5 |
3.1 | REPORTABLE SEGMENTS | ||||||
Hotel | |||||||
Properties | management | Investment | Others | Total | |||
China | China | Japan | Singapore | ||||
S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | |||
Group | |||||||
6 months ended 30 June 2024 | |||||||
Revenue and other income | |||||||
- external sales | 58 | 989 | - | - | 1,047 | ||
- other income | 203 | 14 | - | 664 | 881 | ||
- Interest income | - | - | - | 1 | 1 | ||
- inter-segment income | 211 | - | - | - | 211 | ||
472 | 1,003 | - | 665 | 2,140 | |||
Cost of revenue and operating expenses | (238) | (848) | - | (1,007) | (2,093) | ||
Inter-segment expense | - | (211) | - | - | (211) | ||
Interest expense | - | (123) | - | (1) | (124) | ||
Depreciation | (13) | (16) | - | (11) | (40) | ||
Other gains/(losses), net | (2) | (1) | - | 46 | 43 | ||
Profit/(loss) before income tax | 219 | (196) | - | (308) | (285) | ||
Income tax expense | - | - | - | - | - | ||
Profit/(loss) after income tax | 219 | (196) | - | (308) | (285) | ||
As at 30 June 2024 | |||||||
Total assets | 44,090 | 2,813 | 4,494 | 996 | 52,393 | ||
Total assets include: | |||||||
Additions to: | |||||||
- property, plant and equipment | 2 | 76 | - | - | 78 | ||
Total liabilities | 6,665 | 487 | - | 3,004 | 10,156 | ||
6 months ended 30 June 2023 | |||||||
Revenue and other income | |||||||
- external sales | 476 | 1,238 | - | - | 1,714 | ||
- other income | 217 | 19 | - | 4 | 240 | ||
- Interest income | 1 | 1 | - | 4 | 6 | ||
- inter-segment income | 218 | - | - | - | 218 | ||
912 | 1,258 | - | 8 | 2,178 | |||
Cost of revenue and operating expenses | (748) | (846) | - | (1,159) | (2,753) | ||
Inter-segment expense | - | (218) | - | - | (218) | ||
Interest expense | - | (143) | - | - | (143) | ||
Depreciation | (555) | (9) | - | (31) | (595) | ||
Other gains/(losses), net | (3,855) | - | - | 1 | (3,854) | ||
Profit/(loss) before income tax | (4,246) | 42 | - | (1,181) | (5,385) | ||
Income tax expense | (47) | - | - | - | (47) | ||
Profit/(loss) after income tax | (4,293) | 42 | - | (1,181) | (5,432) | ||
As at 30 June 2023 | |||||||
Total assets | 46,450 | 682 | 665 | 1,495 | 49,292 | ||
Total assets include: | |||||||
Additions to: | |||||||
- property, plant and equipment | 1 | 6 | - | - | 7 | ||
Total liabilities | 8,366 | 729 | - | 2,341 | 11,436 |
IPC CORPORATION LTD AND ITS SUBSIDIARIES | Page 6 |
3.1 REPORTABLE SEGMENTS (continued) Revenue from major products and services
Revenue from external customers are derived mainly from the sale of properties and hotel management.
Group | ||
6 months ended 30 Jun | ||
2024 | 2023 | |
S$'000 | S$'000 | |
Properties | 58 | 476 |
Hotel management | 989 | 1,238 |
1,047 | 1,714 | |
Timing of transfer of good or service | ||
Point in time | 315 | 799 |
Over the time | 732 | 915 |
1,047 | 1,714 |
Geographical information
The Group's business segments operate in three main geographic areas:
- Singapore - the Group is headquartered in Singapore and has operations in Singapore. The operations in this area are principally investments.
- China - the operations in this area are principally property investment, property development and hotel management.
- Japan - investment in convertible preference shares in NHJC.
Group | ||
Sales | ||
6 months ended 30 Jun | ||
2024 | 2023 | |
S$'000 | S$'000 | |
China | 1,047 | 1,714 |
1,047 | 1,714 |
4. FINANCIAL ASSETS AND FINANCIAL LIABILITIES
Set out below is an overview of the financial assets and financial liabilities of the Group and the Company as at 30 June 2024 and 31 December 2023:
Group | Company | ||||
30.6.24 | 31.12.23 | 30.6.24 | 31.12.23 | ||
(Audited) | (Audited) | ||||
S$'000 | S$'000 | S$'000 | S$'000 | ||
Financial assets, at FVPL | 4,494 | 4,494 | 4,494 | 4,494 | |
Financial assets, at FVOCI | 82 | 106 | - | - | |
Financial assets, at amortised cost | 3,233 | 1,183 | 565 | 661 | |
Financial liabilities, at amortised cost | 10,156 | 7,720 | 2,880 | 2,161 |
IPC CORPORATION LTD AND ITS SUBSIDIARIES | Page 7 |
5. PROFIT/(LOSS) BEFORE INCOME TAX
Profit/(loss) is arrived at after charging/(crediting) the following:
5.1 SIGNIFICANT ITEMS
Group | |||
6 months ended 30 Jun | |||
2024 | 2023 | ||
S$'000 | S$'000 | ||
Other income | |||
Interest income | (1) | (6) | |
Rental income (on operating leases) | (202) | (217) | |
Reversal of payable due to striking off of creditor company | (663) | - | |
Others | (16) | (23) | |
Expense | |||
Depreciation | 40 | 595 | |
Interest expenses | 124 | 143 | |
Other (gains)/losses | |||
Foreign exchange losses/(gains), net | (5) | (1) | |
Impairment loss on assets held for sale | - | 3,855 | |
Gain from disposal of property, plant and equipment | (38) | - | |
5.2 | RELATED PARTY TRANSACTIONS | ||
There are no material related party transactions. |
6. TAXATION
The Group calculates the period income tax expense using the tax rate that would be applicable to the expected total annual earnings. The major components of income tax expense in the condensed interim consolidated statement of comprehensive income are:
Group | |||||||||||
6 months ended 30 Jun | |||||||||||
2024 | 2023 | ||||||||||
S$'000 | S$'000 | ||||||||||
Local taxes | |||||||||||
- Current period | - | 47 | |||||||||
Tax Movement: | |||||||||||
Group | Company | ||||||||||
30.6.24 | 31.12.23 | 30.6.24 | 31.12.23 | ||||||||
(Audited) | (Audited) | ||||||||||
S$'000 | S$'000 | S$'000 | S$'000 | ||||||||
Beginning of the period/year | 127 | - | 120 | - | |||||||
Tax charged for the period/year | - | 177 | - | 120 | |||||||
Tax paid for the period/year | (118) | (50) | (111) | - | |||||||
End of the period/year | 9 | 127 | 9 | 120 | |||||||
7. | NET ASSET VALUE | ||||||||||
Group | Company | ||||||||||
30.6.24 | 31.12.23 | 30.6.24 | 31.12.23 | ||||||||
(Audited) | (Audited) | ||||||||||
Net asset per ordinary share | S$0.50 | S$0.50 | S$0.55 | S$0.56 |
IPC CORPORATION LTD AND ITS SUBSIDIARIES | Page 8 |
8. | SHARE CAPITAL | ||||
No. of | |||||
ordinary shares | Amount | ||||
Issued share | Share | ||||
capital | capital | ||||
'000 | S$'000 | ||||
Group and Company | |||||
30 June 2024 | |||||
Beginning and end of financial period | 85,292 | 33,190 | |||
31 December 2023 | |||||
Beginning and end of financial year | 85,292 | 33,190 |
The Company do not hold any treasury shares as at 30 June 2024 and 31 December 2023.
The Company's subsidiaries do not hold any shares in the Company as at 30 June 2024 and 31 December 2023.
9. | FINANCIAL ASSETS, AT FVPL | ||
Group and Company | |||
30.6.24 | 31.12.23 | ||
(Audited) | |||
S$'000 | S$'000 | ||
Financial assets, at FVPL | |||
Unquoted investments | |||
- equity investments - Asia Pacific | 4,494 | 4,494 |
10. | FINANCIAL ASSETS, AT FVOCI | ||
Group | |||
30.6.24 | 31.12.23 | ||
(Audited) | |||
S$'000 | S$'000 | ||
Financial assets, at FVOCI | |||
Quoted investments | |||
- equity investments - United States | 82 | 106 |
11. | Investment in subsidiaries | ||
Company | |||
30.6.24 | 31.12.23 | ||
(Audited) | |||
S$'000 | S$'000 | ||
Equity investments at cost | |||
Cost | 38,337 | 38,337 | |
Loans to subsidiaries | 57,465 | 57,465 | |
95,802 | 95,802 | ||
Less: Accumulated impairment | (51,682) | (51,682) | |
44,120 | 44,120 |
The Company assesses impairment in the investments in the subsidiaries by using the net assets of the subsidiaries, adjusted to include the fair values of the property-related assets of the subsidiaries where applicable at the end of the financial year. The valuation techniques in estimating the fair values of the property-related assets are disclosed in Note 13.
IPC CORPORATION LTD AND ITS SUBSIDIARIES | Page 9 |