OUE to book net loss for FY2025 on China exposure, impairment loss
It owns 29.07% of an investee company whose business is adversely impacted by the slowdown of the property market in China
[SINGAPORE] OUE is expected to book a net loss for the financial year ended Dec 31, 2025, said the group in a bourse filing on Friday (Feb 13).
The expected losses are mainly due to the share of results of equity-accounted investees, which are the estimated losses from Gemdale Properties and Investment Corporation.
The investee company, which is 29.07 per cent owned by OUE, has business in China and was adversely impacted by the prevailing slowdown of the property market and the current economic environment in the country.
OUE’s share of results of equity-accounted investees, which include Gemdale, recorded a loss of S$46 million in the first half ended Jun 30, 2025. A loss ranging from S$220 million to S$240 million is expected to be recorded for the full year ended Dec 31, 2025.
Additionally, OUE is expected to record an impairment loss due to its investment in Gemdale.
The provisional negative goodwill of S$94.9 million, which was recognised for the acquisition of additional equity interests in Gemdale in the first half was reversed in H2 2025, said OUE.
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It added that the loss attributable to share of results of equity-accounted investees, the expected impairment of the group’s investment in Gemdale and the reversal of the provisional negative goodwill are largely non-cash in nature.
They also have no material impact on OUE’s operational cashflows and corporate funding requirements, said OUE.
OUE is expected to announce its FY2025 results by Feb 27.
The counter ended Friday flat at S$1.19, before the news.
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