8I Holdings Posts S$1.09M Loss Amid Market Volatility and U.S. Tariffs

Market Headwinds and Financial Results

8I Holdings Limited (ASX: 8IH) has released its preliminary financial results for the year ended 31 March 2025, revealing a net loss of S$1.09 million. This marks a significant reversal from the modest profit of S$92,403 recorded in the previous year. The primary driver behind this downturn was a steep 75.6% drop in investment gains, which fell to S$172,912 from S$707,399 in FY2024.

The decline in investment performance was largely attributed to heightened global market volatility, particularly in the final quarter of the fiscal year. This volatility was triggered by the announcement of broad-based U.S. tariffs, which unsettled equity valuations across key sectors and dampened returns from both the Group’s exchange-traded fund (ETF) holdings and direct equity investments.

Strategic Shift and Operational Efficiency

Following a comprehensive restructuring completed in the prior year, 8I Holdings has repositioned itself as a streamlined investment holding company. The Group’s strategy now focuses on disciplined capital deployment into a diversified portfolio of low-cost ETFs and carefully selected undervalued stocks, emphasizing long-term value creation.

Despite the challenging market environment, 8IH implemented stringent cost-control measures that reduced administrative expenses from S$1.60 million to S$1.19 million and significantly lowered finance costs. These operational efficiencies, however, were insufficient to offset the decline in income, resulting in the reported net loss.

Financial Position and Dividend Policy

As of 31 March 2025, the Group’s net assets stood at S$11.58 million, down from S$13.06 million the previous year. The decrease reflects the net loss and lower income from non-core assets. Notably, 8IH declared no dividend for FY2025, maintaining a conservative approach amid ongoing market uncertainties.

Navigating a Complex Global Landscape

The global investment climate during FY2025 was marked by a mix of optimism and uncertainty. While early 2025 saw some market recovery, geopolitical tensions, especially the U.S.-China trade frictions and renewed U.S. tariffs, introduced fresh volatility. Regional challenges, including China’s uneven economic recovery and Europe’s inflation and energy concerns, further complicated the outlook.

8IH’s management remains cautiously optimistic, emphasizing a conservative risk profile with no leverage and a focus on sectors driven by long-term structural growth such as technology, healthcare, and clean energy. The Group’s value-driven investment philosophy aims to balance capital preservation with opportunities for sustainable growth.

Looking Ahead

Looking forward, 8I Holdings plans to continue its disciplined capital allocation and risk management approach. The Group is committed to maintaining portfolio resilience amid ongoing geopolitical and economic uncertainties, while seeking emerging opportunities that align with its strategic investment mandate. Transparency and steady performance remain central to its goal of delivering long-term shareholder value.