5 Shocking Truths We Uncovered in Incredible Holdings Latest Financial Report

Introduction:

In the latest quarterly report from Incredible Holdings Ltd., we uncovered a narrative of struggle, surprising paradoxes, and costly strategic missteps. We’ve distilled the complex data into the five most impactful takeaways that reveal what’s really going on inside the company.

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1. Their Revenue Didn’t Just Drop—It Vanished

The most stunning figure in the entire report is the near-total collapse of the company’s top line. In just one year, the Group’s revenue for the quarter plummeted by an astonishing 95.19%, falling from S104,000 to a mere S5,000.

This collapse was comprehensive, hitting every single one of its operating segments:

• Luxury Goods: Revenue fell from S$28,000 to zero.
• Loan Financing: Revenue fell from S$1,000 to zero.
• Distribution: Revenue fell 93.33% from S75,000 to S5,000.

The company’s own explanation points to fundamental market challenges. According to the report:

The reduced sales can be attributed to a decrease in customer demand. Also, as the business environment improved and recovered, several competitors emerged in the market, resulting in a fiercely competitive landscape.

This isn’t a slump; it’s a commercial blackout. A 95% revenue loss across all business lines signals that the company’s connection to its market has been severed, leaving its core business model in question.

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2. Their Profit Margin More Than Tripled as Sales Died

Here is where the story takes a bizarre turn. While revenue was in freefall, the Group’s gross profit margin increased dramatically, soaring from 12.5% to 40.0% in the same period. How is this possible?

The answer lies in the equally steep drop in the cost of doing business. The company’s cost of sales fell even more precipitously than its revenue, dropping 96.7% from S91,000 to just S3,000.

This paradox is a classic example of how a single metric can be misleading without context. A higher profit margin is almost always a good thing, suggesting efficiency and pricing power. In this case, however, it’s a mathematical side effect of a near-total halt in business activity. The company wasn’t becoming more profitable; it was simply doing almost no business at all.

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3. The Company’s Financial Cushion Is Almost Gone

A company’s total equity represents its net worth—what would be left if it sold all its assets and paid off all its debts. As of 30 September 2025, the Group’s total equity had dwindled to just S$73,000.

To put that number in perspective, the company holds S19.98 million in total assets but is weighed down by S19.905 million in total liabilities. To use an analogy, imagine owning a half-million-dollar home but having a mortgage of $499,817. Your net worth is technically positive, but you are one leaky faucet away from financial ruin.

The situation is even more precarious when looking at short-term health. The company has a negative working capital of S$4.76 million, meaning its current liabilities (debts due within a year) far exceed its current assets (cash and other items that can be quickly converted to cash). Perhaps the starkest metric of all is the net asset value per ordinary share, which stood at a minuscule 0.002 cents.

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4. A Costly Pivot to an Unrelated Business Was Scrapped

One of the outstanding audit issues highlighted in the report reveals a significant and costly strategic distraction. The company had to write off S$403,490 in FY2022 for a failed website development project.

The purpose of this project was bafflingly disconnected from the company’s core operations of luxury goods, distribution, and loan financing. The report describes the goal of the S$403,490 project as follows:

…develop a virtual platform for the Group that would generate future economic benefits upon commercialization, whereby the Company will provide services in relation to PDF conversion which is unrelated to the Group’s current business…

Management has since put the project “on hold due to business strategy reasons,” and the website is “currently not in use.” For a company whose primary markets were imploding, spending nearly half a million dollars on a failed pivot into PDF conversion services isn’t just a misallocation of resources—it’s a catastrophic failure of strategic focus at the highest level.

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5. Auditors Issued a “Disclaimer of Opinion”

The very reason this quarterly report exists is a major red flag. The first page states that the company is required to announce its quarterly financials because of the “disclaimer of opinion issued by the Company’s independent auditor for the financial year ended 31 December 2022.”

In the world of accounting, a “disclaimer of opinion” is one of the most serious notices an auditor can issue. It doesn’t just mean they found errors; it means they were unable to obtain sufficient evidence to form an opinion on the accuracy of the financial statements at all. In layman’s terms, it’s the professional equivalent of an auditor shrugging their shoulders and saying, “We were not given enough information to determine whether these numbers are real or imaginary.”

This casts a long shadow over the company’s historical financial data, raising fundamental questions about its transparency and record-keeping. While the report notes that the company is working to resolve these outstanding audit issues, the disclaimer itself fundamentally challenges the integrity of the company’s financial history.

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Conclusion: A Story in the Balance

Faced with a revenue wipeout, a balance sheet stretched to its breaking point, and the lingering fallout from costly misadventures, management has resorted to the only levers it has left: aggressive cost-cutting. The report confirms a reduction in staff and a move to a smaller office as evidence of these survival tactics.

While the company has survived this far, the numbers tell a story of a business at a critical crossroads. The question is no longer just about recovery, but about reinvention—can it find a viable path forward before the clock runs out?

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