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Highlights

  • MOH Nippon expects a ¥1.15 billion loss for the 11-month period ended 31 March 2025, versus a ¥2.08 billion profit in FY2024.

  • Group revenue dropped to ¥4.01 billion, all earned in H1, compared to ¥11.1 billion in FY2024.

  • No revenue was generated in H2 FY2025 due to delayed new projects, halting crowdfunding activity.

  • Company invested in three projects: Saipan (¥1.5B), Toretore Ichiba (¥9M), and Soemon-cho (¥3.2B).

  • Management expects a return to revenue generation in FY2026, including from cold-chain logistics using patented FrostiX technology.

Real estate crowdfunding platform MOH Nippon Plc (LSE:MOH) has reported a sharp swing to loss in its latest trading update, citing stalled projects and an absence of second-half revenue for the financial period ended 31 March 2025.

Following a change in accounting year-end, the period under review spans 11 months for MOH Nippon and 12 months for its operating subsidiary, Minnadeooyasan-Hanbai Co. Ltd. The company expects to report an unaudited consolidated loss of ¥1.15 billion, a stark reversal from the ¥2.08 billion profit recorded in the previous year.

Revenue Collapse Tied to Project Delays

Total revenue plunged to ¥4.01 billion, all recorded in the first half of the year, as new real estate projects stalled, halting the firm’s core crowdfunding activity. The bulk of revenue in H1 stemmed from the Soemon-cho project, a joint venture with related-party Toshi-Souken Invest Bank Inc. (TSIB) that yielded approximately ¥4.0 billion, split between real estate sales and crowdfunding.

Since September 2024, MOH Nippon has generated no new revenue, although it continues to manage investments from 38 existing fund products.

Strategic Investments Underway

Despite the operational pause, the Group made three notable investments during the financial period:

  1. Saipan Project (¥1.5B): A long-term hospitality development aimed at recurring income. Delays persist, but progress is expected over summer 2025.

  2. Toretore Project (¥9M): A seafood market redevelopment using FrostiX HybridIce technology to establish a cold-chain hub. Construction is paused due to cost surges; work expected to resume in Q3 2025.

  3. Soemon-cho Project (¥3.2B): Development of a Hard Rock Hotel & Residences in Osaka’s entertainment district. The project already delivered significant H1 returns and is expected to contribute long-term rental income and capital growth.

Outlook: Turnaround Expected

Management remains optimistic, citing progress in negotiations on delayed projects, particularly those involving cold-chain logistics infrastructure incorporating proprietary FrostiX technologies. These developments are expected to revive revenue streams in FY2026.

The company aims to pivot back to growth by leveraging its technology and real estate strategy to unlock new funding opportunities and regional partnerships.

Final results for the period ended 31 March 2025 are expected to be published in the coming weeks.