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OneApex HY2025 Financial Results · Investor Exchange

• 0:02
  Time for another Investor Exchange podcast. Here are your hosts, Matt and Sally.
• 0:08
  Welcome to the Deep Dive. Today, we're zooming in on 1APEX Limited.
• 0:12
  We're looking at their financial health for the first half of their financial
• 0:15
  year, specifically the six months ending March 31st, 2025.
• 0:19
  That's their 1HY 2025.
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  We've got their latest results announcement, and we're basically going to make
• 0:25
  sense of what's really going on under the hood. Exactly.
• 0:27
  We're digging into that 1HY 2025 announcement, you know, that convinced interim
• 0:32
  financials, the notes that go with them.
• 0:34
  Right. The idea is to give you the key takeaways on how they performed.
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  Revenue, costs, profit, or loss in this case.
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  Assets, liabilities, what they see coming down the track, all without getting
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  bogged down in, you know, endless tables of numbers.
• 0:49
  Yeah, keep it clear. Our mission today is really to pinpoint the main things
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  driving their performance in this first half and what the company is thinking
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  about for the future. OK, so let's jump right in. What's the headline?
• 0:59
  The big picture. Well, the top level story is a net loss.
• 1:04
  And actually, the loss is quite a bit bigger than the same time last year. Bigger loss. OK. Yeah.
• 1:10
  They reported a $627,000 loss for this period, 1HY 2025.
• 1:17
  Compare that to a $264,000 loss in 1HY 2024.
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  So definitely heading deeper into the red overall. Hmm.
• 1:25
  Okay. And how did they break that down? Because they had that business sales. Right.
• 1:28
  Good point. The report splits it between continuing operations,
• 1:31
  that's mostly their property business now, and discontinued operations,
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  which is that financial services bit they sold off. Got it.
• 1:38
  So for the continuing operations, the loss before tax actually widened quite a bit.
• 1:42
  It went from S$184,000 last year to $603,000 this year.
• 1:47
  Wow. OK, so the ongoing business lost more money. Substantially more, yeah.
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  And the part they sold off, the discontinued bit. Interestingly,
• 1:54
  the loss before tax there decreased.
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  It was $67,000 in 1HY 2024 down to S$25,000 in 1HY 2025.
• 2:02
  OK. And on top of that, they booked a gain of $35,000 from the actual sale itself
• 2:06
  in this period. Ah, okay. So that part was losing less money before the sale,
• 2:10
  and the sale itself brought in a small profit.
• 2:12
  Exactly. So it kind of tells you that the main drag on the overall result this
• 2:15
  time was really coming from those continuing operations.
• 2:17
  Makes sense. And how does all this translate for shareholders,
• 2:20
  the loss per share figure? Yeah, that worsened too.
• 2:23
  Basic and diluted loss per share went from 0.1 cents, that's a tenth of a cent
• 2:27
  loss in 1HY 2024, to a loss of 0.7 cents in 1HY 2025.
• 2:33
  Okay, so a bigger loss overall and a bigger loss per share. Let's look at the top line then.
• 2:39
  Revenue. Where did the money come from? Well, for the continuing operations,
• 2:43
  revenue actually dropped. It was...
• 2:45
  $26,000 last year, down to $21,000 this year. Not a huge amount,
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  but still down. What's that from?
• 2:51
  The report says it's management fees from their property management division.
• 2:54
  So, yeah, the ongoing core business brought in slightly less.
• 2:57
  Okay. And the discontinued part, the financial services, I think you mentioned,
• 3:01
  that went the other way. Yeah, slightly.
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  For the operations they sold, revenue was actually up a bit.
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  $602,000 in 1HY 2025 compared to $556,000 in 1HY 2024.
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  But, and this is key, you have to remember, this division was sold off on February 6, 2025. Right.
• 3:18
  So, yeah, it generated more revenue while they still owned it compared to last
• 3:22
  year, but it's obviously not contributing anymore going forward.
• 3:25
  Okay, interesting. The bit they sold was actually seeing slightly better revenue
• 3:29
  trends. All right, let's flip over to the expenses.
• 3:32
  This must be where we see why that overall loss increased so much.
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  Yeah, this is where some big moves happened. First off, something positive, other income.
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  That jumped significantly from $33,000 last year to $216,000 this year.
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  Mostly higher interest income they earn. Plus, they got a property tax refund.
• 3:53
  OK, so that helped offset the lower revenue a bit. It definitely cushioned the blow. Yeah.
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  But what about the main operating costs, employee costs, things like that?
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  Employee benefits expense was pretty stable around S-465,000 versus S-491,000
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  last year. So not much change there.
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  Depreciation actually went down. S-27,000 dollars this period versus $52,000 last year.
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  They said that's because some assets are now fully depreciated.
• 4:18
  Right. So less wear and tear to account for on the books.
• 4:21
  Stable staff costs, lower depreciation. But there must be something else driving the loss up.
• 4:27
  Oh, other operating expenses. That looks like a big jump. That's the one. This is a major factor.
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  These costs surge from S-211,000 dollars up to $347,000.
• 4:38
  Wow. What's in there? Two main things flagged in the report,
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  write-offs of some fixed assets during the period and professional fees,
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  specifically fees related to selling off that financial services segment we keep mentioning.
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  Ah, okay. So the cost of making that strategic shift really hit the books in
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  this half year. Exactly.
• 4:56
  Selling a business isn't free, you know, legal fees, advisory fees. It adds up. Makes sense.
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  Any other big swings on the expense side? Finance costs? Finance costs actually
• 5:06
  dropped to zero. They had $15,000 last year.
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  That's good news means they had no outstanding bank loans in this period.
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  Okay, zero finance costs. That's a positive.
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  And this is probably the most significant difference when you compare the two
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  periods, their share of associate results.
• 5:19
  Right. I saw that line. What happened there? It went from a profit contribution
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  of $525,000 in 1HY 2024 down to zero.
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  Absolutely zero in 1HY 2025.
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  Half a million dollar swing. Just vanished.
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  Pretty much. It's tied directly to selling their associate company,
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  Tuis C-Town Dormitory Pete LTD.
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  That sale happened back in July 2024. Ah, okay. So last year's first half included
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  a big profit boost from that associate.
• 5:46
  Exactly. A boost that just wasn't there this year.
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  Losing that half million contribution is, well, a massive reason why the overall
• 5:53
  net loss looks so much worse this time around. Yeah, that totally changes the comparison.
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  Okay, let's talk a bit more about those discontinued operations.
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  Selling off the financial services arm seems like a really central event here.
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  It really was. So February 6th, 2025, they finalized selling their 51% stake
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  in one Apex Capital P LTD and one Apex Capital One Pete LTD.
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  That was their financial services business.
• 6:16
  And you mentioned they got a small gain on the sale itself. Yeah.
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  S$35,000 gain recorded on the disposal.
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  But remember, before they actually
• 6:23
  sold it, those operations lost $60,000 during this 1HY 2025 period.
• 6:28
  Okay. And to make things comparable, they've adjusted last year's numbers.
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  Explain that again. Why is that important? Right. So to help you understand
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  how the ongoing business, the property focus is actually doing,
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  they've represented the 1HY 2024 figures.
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  They've basically recalculated them as if the financial services part had already
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  been classified as discontinued from October 1st, 2024.
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  Ah, I see. It means you're comparing apples with apples when you look at the
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  continuing operations results for both periods.
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  It strips out the effect of the business they sold, giving a clearer view of
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  the core performance. Got it.
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  Got it. That makes sense for tracking the current strategy.
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  OK, let's shift gear to the balance sheet. What they own, what they owe.
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  Any major changes there? Oh, yeah. Big changes. Total assets dropped significantly.
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  They were at nearly S-25 million dollars, S-24.99 million dollars back in September 2024.
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  By March 2025, that was down to 13.81 million dollars.
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  Wow. Quite a drop. Where did that mainly come from? Mostly from current assets.
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  They fell by over S-11 million dollars. And digging into that,
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  what caused such a big fall in current assets?
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  Cash. It's almost entirely down to a massive drop in their cash and cash equivalents.
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  That line item decreased by S$11.00 million.
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  $11 million in cash, gone. Where did it go? The report breaks it down pretty
• 7:48
  clearly. Number one, the biggest chunk.
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  They paid out S$8.03 million in final and special dividends for the last financial
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  year. Okay, rewarding shareholders. Yep.
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  Number two, selling the financial services businesses actually resulted in a
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  net outflow of cash, about $7.31 million.
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  And number three, their day-to-day operating activities used up about $2.59 million in cash.
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  So dividends are the main driver, plus the disposal had a cash cost and the
• 8:18
  ongoing operations use cash. That explains the big drop.
• 8:22
  Exactly. What about their non-current assets, the longer term stuff? Yeah. And liabilities?
• 8:26
  Non-current assets actually edged up slightly, mostly due to buying some property,
• 8:30
  plant and equipment or PPE.
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  Okay. On the other side, total liabilities went down, mainly because they paid
• 8:35
  off income tax about as $1.25 million worth.
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  And they paid down other liabilities by around $7.91 million too.
• 8:42
  So they used some cash to reduce debt as well. Seems like it.
• 8:46
  And importantly, even with that big cash drop, their working capital,
• 8:49
  you know, current assets minus current liabilities stayed positive.
• 8:54
  It was S11.48 million dollars. OK, so they still have a decent buffer for short term obligations.
• 8:59
  Yeah, it suggests they still have short term financial flexibility despite the cash reduction.
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  Let's follow that cash flow story a bit more. The cash flow statement itself,
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  we know the overall cash went down S11 million dollars. Right.
• 9:11
  So looking at the three main sections, operating activities used a net as $2.59 million.
• 9:17
  That reflects the net loss, paying that income tax we mentioned,
• 9:21
  and just changes in working capital items.
• 9:23
  Okay. Cash used in operations. What about investing?
• 9:26
  Investing activities also used cash, a net outflow of several .37 million dollars.
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  That includes the cash impact from disposing of the subsidiaries,
• 9:35
  buying that PPE, but offset slightly by interest they received. Right.
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  And financing activities. Must be where the dividend shows up.
• 9:42
  Exactly. That's the big one. A huge outflow of $8.04 million from financing activities.
• 9:48
  And yeah, that's almost entirely driven by paying out those final dividends. So crystal clear.
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  Paying the dividend was the single biggest use of cash in this period.
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  By far. All right. So that's the picture for the first half.
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  What about looking ahead?
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  What does the report say about the outlook for OneApex?
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  Well, they start by mentioning the wider economic context, referencing a Ministry
• 10:10
  of Trade and industry report about Singapore's economy slowing down in Q1 2025.
• 10:15
  Setting the scene. Yeah.
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  Then, more specifically about their property business, their Apex Foodworks
• 10:21
  project sounds mostly done.
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  23 out of 24 units are sold.
• 10:25
  Oh, nice. And they recognize the revenue for those already back when they got
• 10:29
  the temporary occupation permit in May 2024. Yeah.
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  So that project is largely wrapped up successfully. Just one unit left to sell
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  there then. Yeah. What else are they planning in property?
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  They say they're going to keep actively monitoring the market for opportunities,
• 10:42
  potential acquisitions or investments.
• 10:43
  Makes sense. They're obviously focused on selling that last unit in Apex Foodworks too.
• 10:48
  And they also mentioned they plan to keep participating in commercial land tenders
• 10:51
  if the right opportunities come up.
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  Okay, so actively looking to grow the property side, potentially new projects.
• 10:56
  Seems to be the plan, signaling they want to redeploy capital into that area.
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  And speaking of capital, dividends for this period, after that big payout last year.
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  No interim dividend for 1HY 2025.
• 11:08
  The board decided not to declare one. And did they say why? Yes, explicitly.
• 11:13
  They want to retain the cash within the group, basically to support future growth plans.
• 11:18
  Especially, they note, after paying out those significant final and special dividends for FY 2024.
• 11:23
  So it looks like a clear signal, conserve cash now to invest in growing the
• 11:29
  business. Right. A strategic choice.
• 11:31
  Hold back on dividends now to fuel future property ventures.
• 11:35
  OK, let's try and wrap this up then. What are the key things you think we and
• 11:38
  the listeners should take away from this deep dive into One Apex's first half? OK, summing up.
• 11:44
  One HY 2025 was definitely a period of transition and impact.
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  They posted a bigger net loss.
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  Key reasons. That strategic decision to sell the financial services arm,
• 11:53
  which came with costs and also meant losing that big profit share from the associate
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  they'd sold earlier. All right. Those two factors were huge. Yeah.
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  Revenue from the ongoing property business was down slightly,
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  but other income, like interest, did help a bit.
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  And the cash position took a major hit primarily because of those large dividend
• 12:11
  payments from last year's profits.
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  So really a story of strategic repositioning. Exactly.
• 12:17
  It reflects a company actively changing shape, shedding one part of the business
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  to really double down on property development and investment.
• 12:24
  That seems to be the clear focus now. Yeah. And for you listening, hopefully,
• 12:29
  understanding these moving parts, the disposal, the associate profit vanishing,
• 12:33
  the dividend impact gives you real insight into why the numbers look the way
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  they do and where One Apex is trying to head next.
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  Which leads us to, you know, the final thought to leave you with. Consider this.
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  One apex is pivoting hard into property, right as the broader Singaporean economic
• 12:49
  landscape is showing signs of a slowdown.
• 12:52
  How do you think that strategic bet will play out? What are the specific opportunities,
• 12:56
  but also maybe the challenges this focus might create for them in the next six
• 13:00
  months or even further down the line? Something to mull over.