 |
Corporate Information
|
|
CHAIRMAN'S MESSAGE
On behalf of the Board of Directors,
I am pleased to present to you the Annual Report of IPC Corporation Limited ("IPC" or "The Group") for the financial year ended 31 December 2009 ("FY2009").
Year 2009 started with a host of global uncertainties and economic turmoil resulting from the Lehman debacle in 2008. The Group therefore took a cautious and proactive stand by focusing its attention on opportunities resulting from distressed asset sales particularly in Japan and, in the later part of the year, in the United Sates of America ("USA"), whilst still capitalising its strengths and foothold in China.
FINANCIAL OVERVIEW
Notwithstanding the global uncertainties, Group revenue for FY2009 was S$20.029 million, an increase of 4.8% when compared to the previous year.
The revenue achieved in FY2009 was primarily contributed by the successful sales of all 51 units of an apartment project in Tsukuba, Japan, and property development consultancy services rendered for a commercial and residential property development in Kunming, China.
Consequently, gross profit from the continuing operations increased significantly to S$3.584 million as compared to S$1.545 million achieved in FY2008.
Other income of S$1.115 million recorded in the period under review was mainly derived from rental income, interest income and write-back of provision for bad debt
The 13.4% reduction in operating expenses and the significant increase in gross profit were negatively weighed down by the unrealised translation foreign exchange loss of S$1.737 million.
As a result, the Group registered an after-tax loss from operations of S$2.709 million for the financial year ended 31 December 2009.
As at 31 December 2009, the Group's cash and cash equivalents remain at a strong position of S$55.39 million as compared to S$56.2 million in the previous corresponding period.
With our healthy cash position, IPC shall continue to proactively seek for opportunities in the area of investments and acquiring of properties
DEVELOPMENTS IN FY2008
As part of its strategic plan of buying residential apartments at distressed prices in Japan, the Group made its first acquisition of an apartment project in Tsukuba which comprises 51 newly completed units in June 2009. By the end of FY2009, all the 51 units were completely and successfully sold.
The Group has been in search and assessment for property projects in Japan to acquire for resale as well as for income producing assets in Japan and this effort shall continue into FY2010.
During the last quarter, the Group also made its foray into the USA by forming Palladio Properties LLC on 14 October 2009 with the objective of buying and selling of foreclosure properties. Several Single Family Residential units were purchased since and contribution is expected in FY2010. Efforts to buy more foreclosure properties shall continue into FY2010.
In China, the Group has accumulated a wealth of experience and knowledge in the property business. With that, the Group has switched from being a pure property developer to focusing on property consulting and investment (PCI) activity. Pursuant to this change of development strategy, the Group will extend its PCI service and activity to other second tier cities in China, providing consulting services for local small to mid-size developers and government agencies for residential and commercial development projects. This would enable the Group's knowledge to be capitalised and generate fee-based income as well as create an opportunity for the Group to participate in selected development projects by making an investment. In 2009, the Group succeeded in rendering its PCI service in a major resettlement development project in Kunming, a residential and commercial development project which will have about 600,000 sqm of build-up area when completed.
FUTURE PLANS AND PROSPECTS
Having established a presence and connection in Japan, the Group will continue its strategic thrust in buy-sell activities as well as continue in its search for income producing properties for investment.
The Group will also continue to implement and execute its strategies in the USA and China.
DIVIDEND
In appreciation of the support demonstrated by our shareholders in FY2009, the Board of Directors is recommending a final dividend of S$0.0025 per ordinary share.
WORD OF APPRECIATION
On behalf of the Board of Directors, I would like to take this opportunity to thank our shareholders, management team, business associates and our valued customers for their dedication, support and contributions made to the Group for the past year. We look forward to your continual support as we strive to create greater shareholder value for all in 2010.
NGIAM MIA JE PATRICK
Chairman & Chief Executive Officer
|
|
