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Letter to Shareholders
Dear Fellow Shareholders,
2025 was a solid year for the Group, reflecting both the resilience of our operating platforms and the disciplined execution of our long-term investment strategy. We generated revenue of S$215.0 million, up 12.6% year-on-year, and EBITDA of S$97.0 million, underscoring the strength of our recurring cash flow base. Net profit attributed to shareholders for the year was S$10.7 million.
Our core segments - industrial parks, utilities, and resort operations were the primary contributors to earnings. As expected, our property development business recorded negative EBITDA of S$14.2 million, reflecting the timing of project cycles rather than underlying demand. Importantly, we are beginning to see early returns from investments made in prior years, providing us with confidence in the trajectory of future cash flows, including from property development.
The broader operating environment in Indonesia remained constructive. Despite global trade policy uncertainty and currency volatility, the economy expanded by approximately 5.1% in 2025. Structural reforms - particularly the ongoing centralisation of certain government functions are aimed at improving execution and capital allocation at the national level. While this transition may introduce short-term inefficiencies, we view it as a positive development for long-term economic coordination and investment clarity.
Social stability remains an important consideration. Events in parts of the country last year served as a reminder that sustained growth must be inclusive and locally grounded. In the Riau Islands, where we operate, conditions remained stable, reflecting the consistent engagement efforts of our teams with local stakeholders. This approach combining operational excellence with community alignment remains central to our license to operate.
Indonesia's long-term growth outlook remains compelling. The government's ambition to increase GDP growth to 8% per annum by 2029, as part of its transition from a middle-income to a high-income economy, will require broad-based progress across multiple sectors. We focus our capital on areas where we see durable demand and where our integrated platform provides a competitive advantage, namely manufacturing, tourism, and the digital economy.
Within our industrial parks, we have scaled our footprint from 450,000 m2 to over 700,000 m2 of leasable factory space over the past five years. Our value proposition remains consistent: high-quality infrastructure for power, water, and telecommunications, combined with cost-efficient land and labour, and seamless connectivity to Singapore. While land availability in Batam is a bit constrained, Bintan offers significant expansion potential, with over 300 hectares available for campus-style developments. Although near-term foreign direct investment flows may moderate amid global trade policy uncertainty, our tenant base is characterised by long-term commitments, typically structured over five to ten years, providing visibility and stability.
In tourism, Bintan Resorts delivered strong growth, with visitor arrivals increasing by 22.5% in 2025 as new capacity came online. We continue to invest in accessibility and sustainability, including the addition of new high-capacity ferries, the electrification of transport fleets, and renewable energy initiatives such as our 10.4 MWp floating solar facility. Encouragingly, domestic tourism is also expanding, supported by a growing Indonesian middle class. Our development pipeline positions us well to capture both international and domestic demand in the years ahead.
In the digital economy, Indonesia's large and youthful population supported by over 170 million smartphone users, continues to drive rapid adoption. While consumer applications dominate today, the more significant opportunity lies in productivity gains across the broader economy. Financial inclusion, in particular, remains underpenetrated, with a substantial portion of the population still unbanked. Digital platforms are increasingly enabling access to more efficient financing, market information, and logistics coordination, particularly for SMEs and rural communities.
Our strategy is to support this ecosystem through enabling infrastructure. While we have direct exposure through our fibre and logistics businesses, we are particularly well positioned to participate in the ongoing development of data centres. These facilities require reliable access to land, power, water, and connectivity, all of which we provide within our integrated parks. Batam's position as a key international cable landing point, combined with its proximity to Singapore, further enhances its attractiveness as a digital infrastructure hub.
Looking ahead, we remain focused on disciplined capital allocation and long-term value creation. While the global environment may remain uncertain, our businesses are anchored in sectors with strong structural tailwinds, and our balance sheet and cash flow generation provide flexibility to pursue growth opportunities selectively.
We enter 2026 with confidence grounded in the performance of our existing assets and the relevance of our investment strategy to Indonesia's continued development.
On behalf of the Board and management team, I thank you for your continued trust and support.
| Mr Lim Chee San | Mr Eugene Cho Park |
| Non-Executive Chairman and Independent Director | Executive Director and Chief Executive Officer |