The Straits Trading Company, weighed down by a series of non-cash impairment and value adjustments of its various real estate businesses and investments, has reported a net loss of $234 million for its FY2025.
In the year earlier, it reported earnings of 11%.
Of note, Straits Trading recognised a non-cash impairment loss of approximately $102.3 million following the loss of control over the Sanlin Mall joint venture in Shanghai, held via its Straits Real Estate (SRE) unit.
After the appointment of receivers and managers over the mortgaged property under the share mortgage in December 2025, SRE’s shareholder powers in respect of the joint venture were suspended.
As such, Straits Trading discontinued equity accounting and reclassified the investment to other investment securities in accordance with accounting standards.
With stronger revenue from its resources and property valuations, the company's revenue for the year was up 10.4% to $623.3 million.
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The company says that the losses booked are a reflection of its "prudent and deliberate reassessment of asset values in line with current market conditions."
Straits Trading says its underlying assets and financial position remain healthy, with sufficient liquidity to meet both operational and financial requirements.
A bright spot for the company is its 52%-held Malaysia Smelting Corporation, which reported earnings of $30.7 million, up from $27.7 million in FY2024, thanks to higher tin prices.
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Executive chairman Chew Gek Khim calls FY2025 a "watershed year" for the company.
"While non-cash impairment and valuation adjustments affected near-term results, our underlying operations remained resilient, with the intrinsic value and cash-generating capability of our core assets intact," she says.
As at the end of 2025, the company's operating cash flows before changes in working capital totalled $81.3 million, up from $77.5 million in FY2024.
Cash and bank balances grew to $488.4 million from $448.8 million a year ago and net gearing decreased from 82.0% as at Dec 31 2024 to 61.8% as at Dec 31 2025.
Chew says the company is "well positioned to navigate current headwinds and advance growth initiatives, including the senior living sector."
Despite the losses, the company plans to maintain its dividend at 8 cents per share.
Straits Trading shares closed at $1.75, up 1.16% for the day, up 20.69% in the past year.
