Core Insights - Nordic Fibreboard experienced a decline in consolidated net sales for Q1 2025, totaling € 1.51 million, which is an 11% decrease from € 1.97 million in Q1 2024 [1] - The company's main activity, fibreboard production and wholesale, generated sales revenue of € 1.73 million in Q1 2025, down from € 1.95 million in Q1 2024 [1] - The real estate management segment saw a significant drop in sales revenue to € 1 thousand in Q1 2025 from € 12 thousand in Q1 2024, attributed to the termination of rental agreements [2][11] Financial Performance - The consolidated EBITDA for Q1 2025 was negative € 85 thousand, with an EBITDA margin of negative 5%, compared to a positive EBITDA of € 53 thousand and a margin of 3% in Q1 2024 [3][22] - The Group's net loss for Q1 2025 was € 228 thousand, worsening from a net loss of € 73 thousand in Q1 2024 [5][22] - The gross margin decreased from 19% in Q1 2024 to 15% in Q1 2025, indicating reduced profitability [3] Revenue Breakdown - Revenue from fibreboard production and sales was € 1,734 thousand in Q1 2025, down from € 1,949 thousand in Q1 2024 [6] - The real estate management segment reported revenue of € 1 thousand in Q1 2025, a decrease from € 12 thousand in Q1 2024 [6][11] - Sales in the largest market, Finland, decreased by € 58 thousand to € 614 thousand in Q1 2025, while Baltic market sales increased by € 110 thousand [8][9] Geographical Sales Analysis - Fibreboard sales to the European Union were € 1,639 thousand in Q1 2025, down from € 1,692 thousand in Q1 2024 [10] - Sales to Africa decreased from € 167 thousand in Q1 2024 to € 87 thousand in Q1 2025, with no sales recorded in Asia and the Middle East during Q1 2025 [10][9] Cash Flow and Financial Position - As of March 31, 2025, total assets were € 8.7 million, down from € 9.1 million a year earlier, while total liabilities increased to € 5.3 million from € 4.8 million [13][22] - The Group's operating result for Q1 2025 showed a negative cash flow of € 528 thousand, compared to a negative cash flow of € 9 thousand in Q1 2024 [15][22] - The net cash flow result for Q1 2025 was a positive € 27 thousand, contrasting with a cash outflow of € 1 thousand in Q1 2024 [15][22] Outlook - The company anticipates continued challenges in 2025, particularly in the construction sector, with Finland being the largest export market [16] - Nordic Fibreboard aims to increase sales volumes and has signed cooperation agreements with new customers [17] - Plans for 2025 include improvements in digital solutions and investments in factory energy system modernization [18]

Summary of Key Points from J.P. Morgan Asia Pacific Credit Research Call Industry Overview - **China Property Sector**: - Anticipated average earnings decline of **30% YoY** for developers in FY24, attributed to margin squeeze from price cuts and impairments, particularly for distressed companies like Vanke [2][6] - SOE property managers expected to see earnings growth slow from **30% YoY** in FY23 to **13% YoY** in FY24 due to mild margin squeeze and lackluster community services [2][6] - Private property managers forecasted to experience an average earnings drop of **16% YoY** due to weak top-line growth and impairments [2][6] Company-Specific Insights - **AIA**: - Net income slightly missed consensus expectations, but the report supports the credit profile [3] - Downgraded to **Neutral** from Overweight due to concerns over solvency ratio decline, despite stable fundamentals [3][7] - New business value (NBV) rose **18%** to **$4,712 million**, with significant growth in Hong Kong (**23%**) and Mainland China (**20%**) [4][7] - Underlying Contractual Service Margin (CSM) grew **9.1%** to **$56.2 billion** [7] - **Swire Properties**: - Reported FY24 results with a **11% YoY** drop in recurring underlying profit due to lower rental income and increased SG&A/financing costs [8] - Management remains pessimistic about Hong Kong office market, expecting weakness for the next **1-2 years** due to oversupply [8] - Optimistic outlook for Mainland China retail, expecting growth driven by improved domestic demand and renovations [8] Additional Insights - **Market Performance**: - J.P. Morgan Asia Credit Index showed varied performance across segments, with JACI YTD return at **2.1%** and JACI IG at **1.9%** [10] - The credit research ratings distribution indicates **26%** Overweight, **58%** Neutral, and **16%** Underweight across the global credit research universe [26] Risks and Considerations - AIA faces downside risk from a potential further decline in solvency ratio, although management is expected to manage this effectively [3][7] - Swire Properties' outlook on Hong Kong retail remains cautious due to challenges from strong HKD and increasing Mainland-bound consumption [8] This summary encapsulates the critical insights from the J.P. Morgan Asia Pacific Credit Research call, focusing on the China property sector, specific company performances, and broader market trends.