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IPC reverses into the black with S$25m FY2018 net profit
IPC Corporation recorded a net profit of S$25 million for the full year ended Dec 31, 2018, reversing from a loss of S$4.8 million a year ago.
The reversal was driven by fair value gains, mainly the group's preference shares investment in Nest Hotel Japan Corporation (NHJC), offset by the write-down on the 24 per cent interest in the land held for development, Ju Ren Da Sha. NHJC is in the business of hotel management, operations and investment, and manages 12 hotels in Japan.
Revenue increased to S$9 million from S$4.1 million mainly due to the sale of the entire 24 per cent interest in Ju Ren Da Sha. But gross profit was down 15.9 per cent to S$0.678 million due to the decrease in the sales revenue of Grand nest Hotel, Zhuhai, China, as a result of the following the weakening of the yuan and inclement weather causing some cancellations of conferences reservations.
Earnings per share was 29.27 Singapore cents, compared to a loss per share of 5.59 Singapore cents a year ago.
IPC closed at S$0.30 on Wednesday, up S$0.005, before results were out.