First Sponsor’s 1H profit soars 79% despite lower revenue
First Sponsor Group Limited reported a net profit of $26.7 million for the first half of 2025, a 79% increase from $14.9 million last year, despite a revenue drop to $153.9 million from $172.9 million. The profit surge was driven by strong returns from associate and joint venture investments, particularly from NSI N.V. Gross profit fell to $60.7 million, with margins narrowing to 39.4%. The Group's total borrowings were $1.34 billion, with cash reserves of $153 million, and declared an interim dividend of 1.1 Singapore cents per share.
Revenue fell to $153.9m from $172.9m, largely due to fewer property handovers in China.
First Sponsor Group Limited reported a net profit of $26.7m for the first half of 2025, a sharp increase from $14.9m in the same period last year.
This nearly 80% surge in earnings was achieved despite an 11% drop in revenue amid the Group’s stronger returns from its associate and joint venture investments, including a significant contribution from Dutch-listed commercial property firm NSI N.V.
Revenue fell to $153.9m from $172.9m, largely due to fewer property handovers in China, lower income from property financing, and a marginal decline in hotel revenue.
Gross profit also declined to $60.7m, with gross margins narrowing to 39.4% from 41.5%, reflecting lower-yielding residential sales from The Brilliance project in China.
Despite the downturn in topline figures, profit before tax rose slightly to $33.4m, supported by $27.3m in share of after-tax profit from associates and joint ventures — a more than fourfold increase from the year before.
The Group continued to hedge its foreign exchange exposure aggressively. It reported a $63.8m drop in the mark-to-market value of euro-denominated derivatives, offset by a $67.2m gain on Chinese yuan positions. Net derivative assets stood at $66.6m as of 30 June 2025.
First Sponsor ended the period with total borrowings of $1.34b and cash reserves of $153m. An interim dividend of 1.1 Singapore cents per share was declared, matching the payout from 1H2024.
