Image for representation purposes only. Reuters

Ipco International, which operates as a developer and turnkey contractor, on Tuesday said it expects a net loss in the first-half on account of foreign exchange translations relating to its units.

Ipco, whose board affirmed its view that the company can remain a going concern, said losses due to the translation effect on the operations of the group's foreign currency denominated subsidiaries.

Ipco's investment portfolio consists of residential development in Washington, natural gas distribution in Hubei Province, China and high-tech semiconductors in Singapore.

The group swung to a net loss of S$935,000 in its first quarter ended July 31, from a net profit of S$34,000 a year ago.

In a regulatory filing in September, the company said that its financial results for the next 12 months are likely to be affected by the performance of its three principal operating subsidiaries - ESA Electronics Pte Ltd, Excellent Empire Ltd and Capri Investments LLC.

Independent auditors of Ipco have raised questions over its ability to continue as a business, citing the company's net current liability position and a lack of evidence to support expectations of future cash flows.

Ipco's board, in August, reaffirmed its view that the going concern assumption was valid was based on optimism about three subsidiaries.

Ipco expects to release its half-year results on or before December 14.