MOH Nippon PLC on Tuesday said it expects to swing to a full-year loss due to a sharp drop in revenue, with no income generated in the second half of its financial year amid delays to key real estate projects.
The crowdfunding services provider for real estate investment in Japan said it expects to report a net loss of JP¥1.15 billion, around $7.77 million, for the 11 months ended March 31, compared with a profit of JP¥2.08 billion the previous year.
Revenue for the period is forecast at JP¥4.01 billion, sharply down from JP¥11.11 billion a year earlier. MOH Nippon said all of this year’s revenue was generated in the first half, with the Soemon-cho project in Osaka contributing JP¥4.0 billion from a combination of real estate sales and crowdfunding activity.
Since September, the company has recorded no new revenue due to delays in launching new investment projects, which also halted crowdfunding operations. MOH continues to manage investors across 38 existing fund products and said talks on new developments, including logistics facilities using patented FrostiX cold chain technology, are progressing.
During the year, MOH invested JP¥1.5 billion in a hospitality project in Saipan, JP¥9 million in a cold-chain seafood project in Shirahama, and JP¥3.2 billion into the redevelopment of a commercial property in Osaka’s Soemon-cho district. A further JP¥2.59 billion is due to related party TSIB for construction work on its Narita developments.
Operating expenses for the year totalled JP¥2.1 billion, of which 76.7% was attributed to advertising and promotion.
MOH acknowledged a range of setbacks, including delays to a tuna mariculture project, abandoned negotiations for a Canadian investment, and the lingering reputational impact from a business suspension in July 2024. A surge in Japanese land prices and stronger foreign investor demand have also made new deals harder to secure.
The company said it aims to fund future projects through expected proceeds from the sale of land and buildings from the second tranche of the Soemon-cho investment.
MOH plans to release audited results by July 31. Its shares down 27% at 20.00 pence in London on Tuesday.
Copyright 2025 Alliance News Ltd. All Rights Reserved.