Company Information This section provides essential corporate details, including board members, committees, key personnel, registered offices, and financial advisors [Board of Directors](index=3&type=section&id=Board%20of%20Directors) This section lists the company's Board of Directors, including executive directors Mr. Li Thet (Chairman) and Ms. Wong Yuet Lin (Chief Executive Officer), and three independent non-executive directors - The Board of Directors is chaired by **Mr. Li Thet**, with **Ms. Wong Yuet Lin** serving as Chief Executive Officer[3](index=3&type=chunk) [Audit Committee](index=3&type=section&id=Audit%20Committee) The Audit Committee is chaired by Ms. Leung Tsz Ying, with Mr. Wong Po Keung and Mr. Lau Chun Ho as members - The Audit Committee is chaired by **Ms. Leung Tsz Ying**[3](index=3&type=chunk) [Remuneration Committee](index=3&type=section&id=Remuneration%20Committee) The Remuneration Committee is chaired by Mr. Wong Po Keung, with Mr. Li Thet, Mr. Lau Chun Ho, and Ms. Leung Tsz Ying as members - The Remuneration Committee is chaired by **Mr. Wong Po Keung**[3](index=3&type=chunk) [Nomination Committee](index=3&type=section&id=Nomination%20Committee) The Nomination Committee is chaired by Mr. Li Thet, with Mr. Wong Po Keung, Mr. Lau Chun Ho, and Ms. Leung Tsz Ying as members - The Nomination Committee is chaired by **Mr. Li Thet**[3](index=3&type=chunk) [Company Secretary](index=3&type=section&id=Company%20Secretary) Mr. Yip Kit Chau serves as the Company Secretary - The Company Secretary is **Mr. Yip Kit Chau**[3](index=3&type=chunk) [Authorized Representatives](index=3&type=section&id=Authorized%20Representatives) Mr. Li Thet and Mr. Yip Kit Chau are the company's authorized representatives - The authorized representatives are **Mr. Li Thet** and **Mr. Yip Kit Chau**[3](index=3&type=chunk) [Auditor](index=3&type=section&id=Auditor) The company's auditor is PricewaterhouseCoopers - The company's auditor is **PricewaterhouseCoopers**[3](index=3&type=chunk) [Registered Office](index=3&type=section&id=Registered%20Office) The company's registered office is located at Cricket Square, Cayman Islands - The company's registered office is located at **Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands**[3](index=3&type=chunk) [Principal Place of Business in Hong Kong](index=3&type=section&id=Principal%20Place%20of%20Business%20in%20Hong%20Kong) The company's principal place of business in Hong Kong is Unit 813, 8th Floor, 68 Kimberley Road, Tsim Sha Tsui, Kowloon - The company's principal place of business in Hong Kong is **Unit 813, 8th Floor, 68 Kimberley Road, Tsim Sha Tsui, Kowloon, Hong Kong**[3](index=3&type=chunk) [Principal Share Registrar and Transfer Office in Cayman Islands](index=3&type=section&id=Principal%20Share%20Registrar%20and%20Transfer%20Office%20in%20Cayman%20Islands) The principal share registrar and transfer office in the Cayman Islands is Conyers Trust Company (Cayman) Limited - The principal share registrar and transfer office in the Cayman Islands is **Conyers Trust Company (Cayman) Limited**[3](index=3&type=chunk) [Hong Kong Share Registrar and Transfer Office](index=4&type=section&id=Hong%20Kong%20Share%20Registrar%20and%20Transfer%20Office) The Hong Kong share registrar and transfer office is Tricor Investor Services Limited - The Hong Kong share registrar and transfer office is **Tricor Investor Services Limited**[4](index=4&type=chunk) [Legal Advisers](index=4&type=section&id=Legal%20Advisers) The legal advisers as to Hong Kong law are Linklaters - The legal advisers as to Hong Kong law are **Linklaters**[4](index=4&type=chunk) [Principal Bankers](index=4&type=section&id=Principal%20Bankers) The company's principal bankers include DBS Bank Ltd. and Bank of Communications Co., Ltd. Hong Kong Branch - Principal bankers include **DBS Bank Ltd.** and **Bank of Communications Co., Ltd. Hong Kong Branch**[4](index=4&type=chunk) [Company Website](index=4&type=section&id=Company%20Website) The company's website is www.fsmtech.com, but information on the website does not form part of this interim report - The company's website is **www.fsmtech.com**[4](index=4&type=chunk) [Stock Code](index=4&type=section&id=Stock%20Code) The company's stock code is 1721 - The company's stock code is **1721**[4](index=4&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) During the reporting period, the company's revenue increased by 13.3% year-on-year to 7,981 Thousand SGD, and gross profit rose to 3,604 Thousand SGD, with gross margin improving to 45.2%; however, due to net exchange losses and increased mobile game R&D expenses, loss attributable to owners expanded to 3,973 Thousand SGD 2025 First Half Condensed Consolidated Statement of Profit or Loss Key Data (Thousand SGD) | Indicator | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 7,981 | 7,043 | +13.3% | | Cost of sales | (4,377) | (4,228) | +3.5% | | Gross profit | 3,604 | 2,815 | +28.0% | | Other income | 50 | 13 | +284.6% | | Other (losses)/gains, net | (2,868) | 1,181 | -343.0% | | Selling and distribution expenses | (388) | (229) | +69.4% | | Administrative expenses | (2,271) | (2,575) | -11.8% | | Mobile game R&D expenses | (1,547) | (1,432) | +8.0% | | Operating loss | (3,420) | (227) | +1406.6% | | Finance (costs)/income, net | (169) | 110 | -253.6% | | Loss before income tax | (3,589) | (117) | +2976.1% | | Income tax expense | (384) | (296) | +29.7% | | Loss for the period attributable to owners of the Company | (3,973) | (413) | +862.0% | | Basic and diluted loss per share (Singapore cents) | (0.3973) | (0.0413) | +862.0% | - Gross margin improved from **40.0%** in the same period of 2024 to **45.2%** in 2025[63](index=63&type=chunk) - Net exchange (losses)/gains shifted from a gain of **1,181 Thousand SGD** in 2024 to a loss of **2,870 Thousand SGD** in 2025, significantly contributing to the expanded loss[31](index=31&type=chunk)[64](index=64&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended 30 June 2025, the company reported a total comprehensive loss of 2,291 Thousand SGD, an increase from 900 Thousand SGD in the prior year, primarily due to increased loss for the period, partially offset by other comprehensive income from currency translation differences 2025 First Half Condensed Consolidated Statement of Comprehensive Income Key Data (Thousand SGD) | Indicator | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Loss for the period | (3,973) | (413) | | Currency translation differences | 1,682 | (487) | | Other comprehensive income/(loss) for the period, net of tax | 1,682 | (487) | | Total comprehensive loss for the period attributable to owners of the Company | (2,291) | (900) | - Currency translation differences shifted from a loss of **487 Thousand SGD** in the same period of 2024 to a gain of **1,682 Thousand SGD** in 2025, positively impacting comprehensive income[6](index=6&type=chunk) [Condensed Consolidated Statement of Financial Position](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of 30 June 2025, the company's total assets were 48,216 Thousand SGD, a decrease from 31 December 2024, with total equity at 27,870 Thousand SGD and total liabilities at 20,346 Thousand SGD, where non-current liabilities represent a larger proportion 30 June 2025 Condensed Consolidated Statement of Financial Position Key Data (Thousand SGD) | Indicator | 30 June 2025 | 31 December 2024 | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Non-current assets | 10,083 | 10,600 | -4.9% | | Current assets | 38,133 | 41,294 | -7.6% | | **Total assets** | **48,216** | **51,894** | **-7.1%** | | **Equity** | | | | | Total equity | **27,870** | **30,161** | **-7.5%** | | **Liabilities** | | | | | Non-current liabilities | 15,168 | 16,004 | -5.2% | | Current liabilities | 5,178 | 5,729 | -9.6% | | **Total liabilities** | **20,346** | **21,733** | **-6.5%** | | **Total equity and liabilities** | **48,216** | **51,894** | **-7.1%** | - Cash and cash equivalents decreased from **36,225 Thousand SGD** to **32,773 Thousand SGD**, reflecting cash outflows[7](index=7&type=chunk) - Accumulated losses shifted from a retained profit of **3,624 Thousand SGD** as of 31 December 2024 to a loss of **358 Thousand SGD** as of 30 June 2025[7](index=7&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of 30 June 2025, the company's total equity decreased from 30,161 Thousand SGD at the beginning of the year to 27,870 Thousand SGD, primarily due to a loss for the period of 3,973 Thousand SGD, partially offset by a 1,682 Thousand SGD increase in reserves from currency translation differences 2025 First Half Condensed Consolidated Statement of Changes in Equity Key Data (Thousand SGD) | Indicator | Balance at 1 January 2025 | Loss for the period | Currency translation differences | Balance at 30 June 2025 | | :--- | :--- | :--- | :--- | :--- | | Share capital | 1,695 | – | – | 1,695 | | Reserves | 24,842 | – | 1,682 | 26,533 | | (Accumulated losses)/Retained earnings | 3,624 | (3,973) | – | (358) | | **Total equity** | **30,161** | **(3,973)** | **1,682** | **27,870** | - In the first half of 2025, reserves increased by **1,682 Thousand SGD** due to currency translation differences, compared to a decrease of **487 Thousand SGD** in the same period of 2024[8](index=8&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended 30 June 2025, net cash used in operating activities was 3,315 Thousand SGD, net cash generated from investing activities was 214 Thousand SGD, and net cash used in financing activities was 296 Thousand SGD, resulting in a net decrease of 3,397 Thousand SGD in cash and cash equivalents 2025 First Half Condensed Consolidated Statement of Cash Flows Key Data (Thousand SGD) | Indicator | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | (3,315) | (304) | | Net cash generated from investing activities | 214 | 369 | | Net cash used in financing activities | (296) | (310) | | Net decrease in cash and cash equivalents | (3,397) | (245) | | Cash and cash equivalents at 1 January | 36,225 | 38,936 | | Effect of exchange rate changes | (55) | 19 | | Cash and cash equivalents at 30 June | 32,773 | 38,710 | - Net cash used in operating activities significantly increased from **304 Thousand SGD** in the same period of 2024 to **3,315 Thousand SGD** in 2025[9](index=9&type=chunk) - Cash inflow from investing activities primarily stemmed from **271 Thousand SGD** in interest received, while property, plant and equipment purchases amounted to **60 Thousand SGD**[9](index=9&type=chunk) [Notes to the Condensed Consolidated Interim Financial Information](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) This section details the basis of preparation, significant accounting policies, estimates, financial risk management, segment information, revenue breakdown, other gains/losses, finance income/costs, income tax expense, loss per share, dividend policy, balance sheet item specifics, capital commitments, and related party transactions for the condensed consolidated interim financial information - The Group primarily engages in **precision engineering, sheet metal fabrication, and online mobile game development and publishing**[10](index=10&type=chunk) - Financial information is presented in **Singapore Dollars (SGD)** and prepared in accordance with **International Accounting Standard 34 "Interim Financial Reporting"**[11](index=11&type=chunk)[12](index=12&type=chunk) [General Information](index=9&type=section&id=General%20Information) This section introduces FSM Holdings Limited and its subsidiaries (the Group), outlining their principal business activities in precision engineering, sheet metal fabrication, and online mobile game development and publishing, and states the company's incorporation in the Cayman Islands - The Group's principal activities are **precision engineering, sheet metal fabrication, and online mobile game development and publishing**[10](index=10&type=chunk) - The Company was incorporated in the **Cayman Islands on 5 February 2018**[10](index=10&type=chunk) - The condensed consolidated interim financial information is presented in **Singapore Dollars ("SGD")**[11](index=11&type=chunk) [Basis of Preparation](index=9&type=section&id=Basis%20of%20Preparation) This section clarifies that the condensed consolidated interim financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2024 - The condensed consolidated interim financial information is prepared in accordance with **International Accounting Standard 34 "Interim Financial Reporting"**[12](index=12&type=chunk) - It should be read in conjunction with the Group's annual financial statements for the year ended **31 December 2024**[12](index=12&type=chunk) [Significant Accounting Policies](index=9&type=section&id=Significant%20Accounting%20Policies) This section states that the accounting policies applied in preparing these condensed consolidated interim financial statements are consistent with those followed in the annual consolidated financial statements, and lists adopted and unadopted standard amendments - The accounting policies applied in preparing these condensed consolidated interim financial statements are **consistent with those followed in the annual consolidated financial statements for the year ended 31 December 2024**[13](index=13&type=chunk) [Amendments to Standards Adopted by the Group](index=9&type=section&id=Amendments%20to%20Standards%20Adopted%20by%20the%20Group) This section lists amendments to standards that became mandatory for accounting periods beginning on or after 1 January 2025 and have been adopted by the Group, noting no significant impact on the Group's results or financial position - The adoption of amendments to **IAS 21 and IFRS 1 "Lack of Exchangeability"** had no significant impact on the Group's results and financial position[14](index=14&type=chunk) [Current Standards Amendments Not Yet Adopted](index=10&type=section&id=Current%20Standards%20Amendments%20Not%20Yet%20Adopted) This section lists issued but not yet effective standard amendments that have not been early adopted by the Group, and anticipates no material impact on the Group's financial statements - Unadopted standard amendments include **IFRS 10 and IAS 28 (Amendments) "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture"**[15](index=15&type=chunk) - These new standards, amendments, and annual improvements are not expected to have a **material impact** on the Group's transactions for the current or future reporting periods and the foreseeable future[15](index=15&type=chunk) [Estimates and Financial Risk Management](index=10&type=section&id=Estimates%20and%20Financial%20Risk%20Management) This section explains that preparing interim financial information requires management judgments, estimates, and assumptions, and notes that the Group faces market, credit, and liquidity risks, with no changes in risk management policies since 31 December 2024 - The preparation of interim financial information requires management to make **judgments, estimates, and assumptions**, and actual results may differ from these estimates[16](index=16&type=chunk) - The Group's business is exposed to various financial risks: **market risk (including foreign currency risk and interest rate risk), credit risk, and liquidity risk**[17](index=17&type=chunk) - Risk management policies have **not changed** since 31 December 2024[18](index=18&type=chunk) [Estimates](index=10&type=section&id=Estimates) This section emphasizes that the significant judgments and sources of estimation uncertainty made by management in applying accounting policies for interim financial information are the same as those for the annual consolidated financial statements - The significant judgments made by management in applying accounting policies and the key sources of estimation uncertainty are **the same as those applied to the consolidated financial statements for the year ended 31 December 2024**[16](index=16&type=chunk) [Financial Risk Management](index=11&type=section&id=Financial%20Risk%20Management) This section outlines the financial risk factors faced by the Group, including market risk, credit risk, and liquidity risk, and states that the carrying amounts of most financial instruments are reasonable approximations of fair value, except for specific items - The Group's business is exposed to various financial risks: **market risk (including foreign currency risk and interest rate risk), credit risk, and liquidity risk**[17](index=17&type=chunk) - Except for rental deposits, trade and other receivables, the company has no other significant financial instruments, and the carrying amounts of these balances, net of impairment, are **reasonable approximations of fair value**[19](index=19&type=chunk) [Segment Information](index=11&type=section&id=Segment%20Information) The Group's chief operating decision maker identifies two reportable segments: manufacturing business and online business, with manufacturing revenue growing by 10.5% and online business revenue by 32.4% - The Group identifies two reportable segments: **manufacturing business (precision engineering and sheet metal fabrication)** and **online business (development, publishing, and operation of online mobile games)**[20](index=20&type=chunk)[21](index=21&type=chunk) Segment Revenue (Thousand SGD) | Segment | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Manufacturing business | 6,797 | 6,149 | +10.5% | | Online business | 1,184 | 894 | +32.4% | | **Total** | **7,981** | **7,043** | **+13.3%** | [Overview of Segments and Principal Businesses](index=11&type=section&id=Overview%20of%20Segments%20and%20Principal%20Businesses) This section details the Group's two main reportable segments: the manufacturing business, focused on precision engineering and sheet metal fabrication, and the online business, dedicated to developing, publishing, and operating online mobile games - The manufacturing business focuses on **sheet metal fabrication for precision engineering and precision machining services**[20](index=20&type=chunk) - The online business develops, publishes, and operates **online mobile games**[21](index=21&type=chunk) [Segment Profit/(Loss) Before Income Tax](index=12&type=section&id=Segment%20Profit%2F(Loss)%20Before%20Income%20Tax) The manufacturing business recorded a reportable segment result of 1,369 Thousand SGD in the first half of 2025, while the online business recorded a loss of 2,232 Thousand SGD, leading to a Group loss before income tax of 3,589 Thousand SGD Segment Results (Thousand SGD) | Segment | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Manufacturing business | 1,369 | 2,251 | | Online business | (2,232) | (2,374) | | **Total reportable segment results** | **(863)** | **(123)** | | Loss before income tax | (3,589) | (117) | - Revenue growth in the manufacturing business primarily came from revenue recognized **"at a point in time"**, while all online business revenue was recognized **"over time"**[22](index=22&type=chunk) [Segment Assets](index=13&type=section&id=Segment%20Assets) As of 30 June 2025, manufacturing business assets totaled 26,910 Thousand SGD, and online business assets were 1,125 Thousand SGD, bringing total segment assets to 28,035 Thousand SGD Segment Assets (Thousand SGD) | Segment | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Manufacturing business | 26,910 | 35,081 | | Online business | 1,125 | 2,369 | | **Total segment assets** | **28,035** | **37,450** | | Corporate assets | 20,181 | 14,444 | | **Total assets** | **48,216** | **51,894** | - Total non-current assets by location show **7,045 Thousand SGD** in Singapore and **2,797 Thousand SGD** in Malaysia[24](index=24&type=chunk) [Segment Liabilities](index=14&type=section&id=Segment%20Liabilities) As of 30 June 2025, manufacturing business liabilities were 3,793 Thousand SGD, and online business liabilities were 696 Thousand SGD, totaling 4,489 Thousand SGD for segment liabilities Segment Liabilities (Thousand SGD) | Segment | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Manufacturing business | 3,793 | 3,423 | | Online business | 696 | 1,636 | | **Total segment liabilities** | **4,489** | **5,059** | | Corporate liabilities | 15,857 | 16,674 | | **Total liabilities** | **20,346** | **21,733** | [Disaggregation of Revenue from Contracts with Customers](index=14&type=section&id=Disaggregation%20of%20Revenue%20from%20Contracts%20with%20Customers) The Group's revenue primarily originates from Singaporean customers, who contributed 6,797 Thousand SGD in the first half of 2025, with other countries contributing 1,184 Thousand SGD Revenue by Customer Location (Thousand SGD) | Customer Location | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Singapore | 6,797 | 6,149 | | Other countries | 1,184 | 894 | | **Total** | **7,981** | **7,043** | [Information About Major Customers](index=15&type=section&id=Information%20About%20Major%20Customers) In the first half of 2025, two major customers (Customer A and Customer B) contributed 3,489 Thousand SGD and 2,975 Thousand SGD in revenue, respectively, collectively accounting for 70.9% of total revenue Major Customer Revenue (Thousand SGD) | Customer | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Customer A | 3,489 | 3,381 | | Customer B | 2,975 | 2,447 | - Two customers contributed **over 10%** of the Group's total revenue in both reporting periods[29](index=29&type=chunk) [Revenue](index=15&type=section&id=Revenue) The Group's revenue primarily derives from sales of fabricated sheet metal products, provision of machining services, and sales of in-game virtual items, with sales of goods contributing 6,663 Thousand SGD and sales of in-game virtual items contributing 1,184 Thousand SGD in the first half of 2025 Revenue Composition (Thousand SGD) | Revenue Source | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Sales of goods | 6,663 | 6,123 | | Machining services | 134 | 26 | | Sales of in-game virtual items | 1,184 | 894 | | **Total** | **7,981** | **7,043** | - Revenue from sales of goods increased by **8.8%** year-on-year, machining services by **415.4%**, and sales of in-game virtual items by **32.4%**[30](index=30&type=chunk) [Other (Losses)/Gains, Net](index=16&type=section&id=Other%20(Losses)%2FGains,%20Net) In the first half of 2025, the Group recorded net other losses of 2,868 Thousand SGD, primarily due to net exchange losses of 2,870 Thousand SGD, compared to net exchange gains of 1,181 Thousand SGD in the prior year Other (Losses)/Gains, Net (Thousand SGD) | Indicator | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Net exchange (losses)/gains | (2,870) | 1,181 | | Gain on disposal of property, plant and equipment | 2 | – | | **Total** | **(2,868)** | **1,181** | - Net exchange losses were the primary reason for the shift from net other gains to net other losses[31](index=31&type=chunk) [Finance (Costs)/Income, Net](index=16&type=section&id=Finance%20(Costs)%2FIncome,%20Net) In the first half of 2025, the Group recorded net finance costs of 169 Thousand SGD, mainly comprising the discounted value of shareholder loans (non-cash finance costs) of 417 Thousand SGD and other finance costs, partially offset by bank interest income of 271 Thousand SGD Finance (Costs)/Income, Net (Thousand SGD) | Indicator | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Finance income (bank deposits) | 271 | 536 | | Finance costs (release of discounted value of shareholder loan) | (417) | (396) | | Other finance costs | (23) | (30) | | **Finance (costs)/income, net** | **(169)** | **110** | - Non-cash finance costs from the discounted value of shareholder loans increased from **396 Thousand SGD** in the same period of 2024 to **417 Thousand SGD** in 2025[32](index=32&type=chunk) [Loss Before Income Tax](index=17&type=section&id=Loss%20Before%20Income%20Tax) In the first half of 2025, the Group's loss before income tax significantly increased to 3,589 Thousand SGD from 117 Thousand SGD in the prior year, primarily influenced by cost of inventories sold, employee benefit expenses, depreciation and amortization, and mobile game advertising Loss Before Income Tax Composition (Thousand SGD) | Item | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Cost of inventories sold | 1,684 | 1,565 | | Employee benefit expenses | 3,933 | 4,196 | | Depreciation of property, plant and equipment | 369 | 604 | | Depreciation of right-of-use assets | 166 | 186 | | Mobile game R&D expenses (excluding staff costs, amortisation and depreciation) | 26 | 23 | | Mobile game advertising | 317 | 174 | | Auditor's remuneration (audit services) | 186 | 173 | - Employee benefit expenses decreased from **4,196 Thousand SGD** to **3,933 Thousand SGD**, but mobile game advertising expenses increased from **174 Thousand SGD** to **317 Thousand SGD**[33](index=33&type=chunk) [Income Tax Expense](index=17&type=section&id=Income%20Tax%20Expense) In the first half of 2025, the Group's income tax expense increased to 384 Thousand SGD from 296 Thousand SGD in the prior year, mainly due to increased taxable profits from the Singapore manufacturing business Income Tax Expense (Thousand SGD) | Indicator | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Current income tax | 391 | 343 | | Deferred income tax | (7) | (47) | | **Income tax expense** | **384** | **296** | - Income tax expense increased by **29.7%**, primarily due to increased taxable profits from the **Singapore manufacturing business**[34](index=34&type=chunk)[67](index=67&type=chunk) [Singapore Corporate Income Tax](index=17&type=section&id=Singapore%20Corporate%20Income%20Tax) Singapore corporate income tax is calculated at a rate of 17% and applies to the taxable income of subsidiaries incorporated in Singapore - Singapore corporate income tax is calculated at a rate of **17%**[35](index=35&type=chunk) [Malaysia Corporate Income Tax](index=18&type=section&id=Malaysia%20Corporate%20Income%20Tax) Malaysia corporate income tax is calculated at a rate of 24% and applies to the taxable income of subsidiaries incorporated in Malaysia - Malaysia corporate income tax is calculated at a rate of **24%**[36](index=36&type=chunk) [China Corporate Income Tax](index=18&type=section&id=China%20Corporate%20Income%20Tax) China corporate income tax offers tax incentives for small and micro-profit enterprises, with an effective tax rate of 5% on the first 3 million RMB of annual taxable income - For small and micro-profit enterprises, the effective corporate income tax rate is **5%** on the first **3 million RMB** of annual taxable income[37](index=37&type=chunk) [Hong Kong Profits Tax](index=18&type=section&id=Hong%20Kong%20Profits%20Tax) Hong Kong profits tax operates on a two-tiered system, with the first 2 million HKD of assessable profits taxed at 8.25% and the remainder at 16.5%; no provision for profits tax was made for the Group's Hong Kong subsidiaries during the reporting period due to absence of taxable profits - Hong Kong profits tax two-tiered system: **8.25%** on the first **2 million HKD** of profits, and **16.5%** on the remainder[38](index=38&type=chunk) - No Hong Kong profits tax provision was made for the Group's Hong Kong-incorporated subsidiaries for the six months ended 30 June 2025, as they generated **no assessable profits** in or derived from Hong Kong[38](index=38&type=chunk) [Cayman Islands and British Virgin Islands Corporate Income Tax](index=18&type=section&id=Cayman%20Islands%20and%20British%20Virgin%20Islands%20Corporate%20Income%20Tax) The Group is not subject to any corporate income tax in the Cayman Islands and British Virgin Islands - The Group is **not subject to any tax** in the Cayman Islands and British Virgin Islands[39](index=39&type=chunk) [Loss Per Share](index=18&type=section&id=Loss%20Per%20Share) In the first half of 2025, basic loss per share significantly increased to 0.3973 Singapore cents from 0.0413 Singapore cents in the prior year, with diluted loss per share being the same as basic loss per share due to the absence of potentially dilutive shares Loss Per Share (Singapore cents) | Indicator | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Loss attributable to owners of the Company (Thousand SGD) | (3,973) | (413) | | Weighted average number of ordinary shares in issue (Thousand shares) | 1,000,000 | 1,000,000 | | **Basic loss per share (Singapore cents)** | **(0.3973)** | **(0.0413)** | [Basic](index=18&type=section&id=Basic) Basic loss per share is calculated by dividing the loss attributable to owners of the Company by the weighted average number of ordinary shares in issue - Basic loss per share was **0.3973 Singapore cents**[41](index=41&type=chunk) [Diluted](index=18&type=section&id=Diluted) Diluted loss per share is the same as basic loss per share due to the absence of potentially dilutive shares - Diluted loss per share is **equal to basic loss per share** as there are no potentially dilutive shares[41](index=41&type=chunk) [Interim Dividend](index=19&type=section&id=Interim%20Dividend) The Board of Directors does not recommend the payment of an interim dividend for the six months ended 30 June 2025 - The Directors do not recommend the payment of an interim dividend for the six months ended **30 June 2025**[42](index=42&type=chunk) [Property, Plant and Equipment](index=19&type=section&id=Property,%20Plant%20and%20Equipment) As of 30 June 2025, the carrying value of property, plant and equipment was 9,641 Thousand SGD, a decrease from 9,969 Thousand SGD at the beginning of the year, primarily affected by depreciation and currency translation differences Property, Plant and Equipment Movement (Thousand SGD) | Indicator | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | At 1 January | 9,969 | 10,685 | | Additions | 60 | 165 | | Depreciation | (369) | (604) | | Currency translation differences | (19) | 10 | | **At 30 June** | **9,641** | **10,256** | - Depreciation expense decreased from **604 Thousand SGD** in the same period of 2024 to **369 Thousand SGD** in 2025[43](index=43&type=chunk) [Trade and Other Receivables](index=20&type=section&id=Trade%20and%20Other%20Receivables) As of 30 June 2025, total trade and other receivables amounted to 2,931 Thousand SGD, with net trade receivables at 2,512 Thousand SGD, and the Group typically grants customers credit terms of 30 to 90 days Trade and Other Receivables (Thousand SGD) | Indicator | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Trade receivables, net | 2,512 | 2,482 | | Prepayments | 183 | 273 | | Deposits | 74 | 73 | | Other receivables | 162 | 291 | | **Total** | **2,931** | **3,119** | - The aging analysis of trade receivables shows that amounts aged **0 to 30 days** represent the highest proportion at **1,480 Thousand SGD**[44](index=44&type=chunk) [Trade and Other Payables and Provision for Restoration Costs](index=21&type=section&id=Trade%20and%20Other%20Payables%20and%20Provision%20for%20Restoration%20Costs) As of 30 June 2025, total trade and other payables amounted to 3,910 Thousand SGD, including trade payables of 1,399 Thousand SGD and accrued expenses of 2,246 Thousand SGD, with a non-current provision for restoration costs of 102 Thousand SGD Trade and Other Payables and Provision for Restoration Costs (Thousand SGD) | Indicator | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Non-current: Provision for restoration costs | 102 | 100 | | Current: Trade payables | 1,399 | 913 | | Current: Accrued expenses | 2,246 | 2,660 | | Current: Other payables | 265 | 351 | | **Total** | **4,012** | **4,024** | - Trade payables increased from **913 Thousand SGD** as of 31 December 2024 to **1,399 Thousand SGD** as of 30 June 2025[45](index=45&type=chunk) [Contract Liabilities](index=22&type=section&id=Contract%20Liabilities) As of 30 June 2025, contract liabilities were 119 Thousand SGD, primarily comprising unamortized revenue from sales of in-game virtual items, expected to be fulfilled within one year or less Contract Liabilities (Thousand SGD) | Indicator | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Sales of in-game virtual items | 119 | 385 | | **Total** | **119** | **385** | - Contract liabilities primarily consist of **unamortized revenue from sales of in-game virtual items**[46](index=46&type=chunk) - The Group expects to fulfill the remaining performance obligations for these contract liabilities within **one year or less**[47](index=47&type=chunk) [Borrowings](index=22&type=section&id=Borrowings) As of 30 June 2025, the Group's total borrowings amounted to 14,138 Thousand SGD, mainly consisting of shareholder loans of 13,928 Thousand SGD and other bank financing Borrowings (Thousand SGD) | Indicator | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Shareholder loan | 13,928 | 14,589 | | Other bank financing | 210 | 286 | | **Total borrowings** | **14,138** | **14,875** | | Of which: Non-current liabilities | 13,982 | 14,722 | | Of which: Current liabilities | 156 | 153 | - The shareholder loan is **interest-free, unsecured, and for a term of five years**, provided by Maodong Limited, wholly owned by Mr. Li[49](index=49&type=chunk) - Other bank financing is **secured by two machines**[49](index=49&type=chunk) [Share Capital](index=23&type=section&id=Share%20Capital) As of 30 June 2025, the company's authorized share capital was 2,000,000,000 ordinary shares of 0.01 HKD each, with 1,000,000,000 shares issued and fully paid, amounting to 1,695 Thousand SGD - The issued and fully paid share capital consists of **1,000,000,000 ordinary shares of 0.01 HKD each**, with a share capital amount of **1,695 Thousand SGD**[50](index=50&type=chunk) [Capital Commitments](index=23&type=section&id=Capital%20Commitments) As of 30 June 2025, the Group had capital commitments of 90 Thousand SGD, contracted but not provided for, primarily related to the purchase of property, plant and equipment - As of 30 June 2025, the Group had capital commitments of **90 Thousand SGD**, contracted but not provided for in the condensed consolidated interim financial statements, related to the purchase of property, plant and equipment[51](index=51&type=chunk) [Related Party Transactions](index=24&type=section&id=Related%20Party%20Transactions) This section discloses the Group's transactions and balances with related parties, including shareholder loan interest, remuneration for directors' children and spouses, and key management compensation - Related parties include **Mr. Li Thet (Director and Shareholder), Maodong (a company wholly owned by Mr. Li), Ms. Wong Yuet Lin (Director), and their children**[52](index=52&type=chunk) [Names and Relationships with Related Parties](index=24&type=section&id=Names%20and%20Relationships%20with%20Related%20Parties) This section lists the names of related parties with whom the Group has transactions or balances and their relationships with the Group, including directors, shareholders, and their family members - Related parties include **Mr. Li Thet (Director and Shareholder), Maodong (a company wholly owned by Mr. Li), Ms. Wong Yuet Lin (Director), and her children**[52](index=52&type=chunk) [Transactions with Related Parties](index=24&type=section&id=Transactions%20with%20Related%20Parties) This section discloses transactions with related parties for the first half of 2025, including shareholder loan interest from Maodong of 417 Thousand SGD, and remuneration payable or paid to directors' children of 183 Thousand SGD Transactions with Related Parties (Thousand SGD) | Transaction Type | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Interest on shareholder loan from Maodong | 417 | 396 | | Remuneration payable or paid to directors' children | 183 | 115 | | Remuneration payable or paid to directors' spouses | – | 128 | [Key Management Compensation](index=25&type=section&id=Key%20Management%20Compensation) In the first half of 2025, total key management (executive directors) compensation amounted to 350 Thousand SGD, including fees, salaries, allowances, benefits, and defined contribution retirement schemes Key Management Compensation (Thousand SGD) | Compensation Type | Six Months Ended 30 June 2025 | Six Months Ended 30 June 2024 | | :--- | :--- | :--- | | Fees and salaries, other allowances and benefits, bonuses | 340 | 301 | | Defined contribution retirement schemes | 10 | 9 | | **Total** | **350** | **310** | - Key management compensation increased by **12.9%** year-on-year[54](index=54&type=chunk) [Balances with Related Parties](index=25&type=section&id=Balances%20with%20Related%20Parties) As of 30 June 2025, balances with related parties primarily consisted of a shareholder loan from Maodong of 13,928 Thousand SGD Balances with Related Parties (Thousand SGD) | Related Party | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Shareholder loan from Maodong | 13,928 | 14,589 | [Management Discussion and Analysis](index=25&type=section&id=Management%20Discussion%20and%20Analysis) The Management Discussion and Analysis reviews the Group's manufacturing and online business performance, outlines the global economic outlook, and details the Group's strategies, while financially analyzing changes in revenue, gross profit, expenses, and loss for the period, and disclosing information on liquidity, shareholder loans, capital structure, asset pledges, major investment plans, contingent liabilities, capital commitments, foreign exchange risk, employees, remuneration policies, and share option scheme - The Group is committed to maintaining close relationships with manufacturing business customers, deploying external development strategies, and upgrading machinery to enhance production efficiency and competitiveness[59](index=59&type=chunk) - The Group will continuously review expenses and actively implement measures to reduce production and operating costs to improve overall operational efficiency[59](index=59&type=chunk) - The Group is dedicated to enhancing its online business through the development and optimization of mobile game products, and may explore opportunities to acquire high-quality mobile games from external developers and studios[60](index=60&type=chunk) [Business Review](index=26&type=section&id=Business%20Review) This section reviews the Group's manufacturing and online business performance during the reporting period, noting a 10.5% revenue growth in manufacturing, driven by increased demand in Singapore, and a 32.4% revenue growth in online business, with new games in testing and continuous advertising investment - The Group has two main business segments: **manufacturing business and online business**[56](index=56&type=chunk) [Manufacturing Business](index=26&type=section&id=Manufacturing%20Business) The manufacturing business focuses on precision engineering sheet metal fabrication and precision machining services, with production facilities in Singapore and Malaysia, and in the first half of 2025, revenue was approximately 6.8 million SGD, a 10.5% year-on-year increase, primarily due to rising demand in the Singapore market - The manufacturing business segment is dedicated to **sheet metal fabrication for precision engineering and precision machining services**, with production facilities in **Singapore and Malaysia**[57](index=57&type=chunk) - In the first half of 2025, manufacturing business revenue was approximately **6.8 million SGD**, an increase of **10.5%** year-on-year, primarily due to increased market demand in the **Singapore sheet metal manufacturing industry**[57](index=57&type=chunk) - Output in Singapore's precision engineering sector recorded year-on-year growth of **0.4%** and **10.3%** in Q1 and Q2 2025, respectively, driven by increased capital investment from **AI-related semiconductor manufacturers**[57](index=57&type=chunk) [Online Business](index=26&type=section&id=Online%20Business) The online business focuses on mobile game development, with its latest game in testing across various regions globally and continuous advertising investment, generating approximately 1.2 million SGD in revenue in the first half of 2025, a 32.4% year-on-year increase - The online business has established a dedicated development team focused on creating mobile games for a **global audience**[58](index=58&type=chunk) - During the reporting period, the latest game was in its **testing phase**, undergoing multiple tests in various regions including the **United States, Canada, Europe, and Asian markets**, with continuous investment in advertising and promotion[58](index=58&type=chunk) - In the first half of 2025, the online business generated approximately **1.2 million SGD** in revenue, an increase of **32.4%** year-on-year[58](index=58&type=chunk) [Business Outlook](index=27&type=section&id=Business%20Outlook) Facing global economic uncertainties, the Group will continue to strengthen customer relationships in its manufacturing business, upgrade machinery, reduce costs, optimize its online business, and explore opportunities to acquire high-quality mobile games and diversify revenue streams - The International Monetary Fund forecasts **3.0% global output growth in 2025**, but highlights downside risks such as trade restrictions, geopolitical tensions, and widening fiscal deficits[59](index=59&type=chunk) - The Group will focus on maintaining close relationships with manufacturing business customers, deploying external development strategies, and upgrading machinery and using robotics to **enhance production efficiency and competitiveness**[59](index=59&type=chunk) - The Group will continuously review expenses and actively implement measures to **reduce production and operating costs** to improve overall operational efficiency[59](index=59&type=chunk) - The Group is committed to enhancing its online business through the development and optimization of mobile game products, and may explore opportunities to **acquire high-quality mobile games** from external developers and studios[60](index=60&type=chunk) - The Board will also explore other business opportunities to **diversify revenue sources** and generate long-term sustainable value for shareholders[60](index=60&type=chunk) [Financial Review](index=27&type=section&id=Financial%20Review) The financial review provides a detailed analysis of changes in the Group's revenue, gross profit, various expenses, and loss for the period, indicating that revenue growth was primarily driven by the manufacturing business, but exchange losses led to an overall expanded loss - Group revenue increased by **13.3%** year-on-year, primarily driven by increased market demand in the **Singapore sheet metal manufacturing industry**[61](index=61&type=chunk) - Gross profit grew by **28.0%**, and gross margin improved to **45.2%**, mainly due to increased revenue and improved gross margin in the manufacturing business[63](index=63&type=chunk) - Net exchange losses of approximately **2.9 million SGD** were recorded, compared to net exchange gains of approximately **1.2 million SGD** in the prior year, primarily due to the appreciation of the SGD against the USD and HKD[64](index=64&type=chunk) - Administrative expenses decreased by **11.8%**, mainly due to effective cost-saving measures[65](index=65&type=chunk) - Mobile game R&D expenses increased by **8.0%**, primarily due to increased staff costs incurred in developing and optimizing the Group's mobile games[66](index=66&type=chunk) - Income tax expense increased by **29.7%**, primarily due to increased taxable profits from the **Singapore manufacturing business**[67](index=67&type=chunk) - Loss for the period attributable to owners of the Company expanded to approximately **3.97 million SGD**[68](index=68&type=chunk) [Revenue](index=27&type=section&id=Revenue) In the first half of 2025, the Group's total revenue was 7,981 Thousand SGD, a 13.3% year-on-year increase, with the manufacturing business contributing 85.16% and the online business 14.84% Revenue Details (Thousand SGD) | Business Segment | Six Months Ended 30 June 2025 | Proportion (%) | Six Months Ended 30 June 2024 | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Manufacturing business | 6,797 | 85.16 | 6,149 | 87.31 | | Online business | 1,184 | 14.84 | 894 | 12.69 | | **Total** | **7,981** | **100.00** | **7,043** | **100.00** | - Revenue growth was primarily due to **increased market demand in the Singapore sheet metal manufacturing industry**, leading to higher manufacturing business revenue[61](index=61&type=chunk) [Gross Profit and Gross Margin](index=28&type=section&id=Gross%20Profit%20and%20Gross%20Margin) The Group's gross profit increased from 2.8 million SGD to 3.6 million SGD, and gross margin improved from 40.0% to 45.2%, primarily due to increased revenue and improved gross margin in the manufacturing business - Gross profit increased by approximately **0.8 million SGD** to **3.6 million SGD**[63](index=63&type=chunk) - Gross margin increased from **40.0%** to **45.2%**[63](index=63&type=chunk) - The increase in gross profit was primarily due to **increased revenue and improved gross margin in the manufacturing business**[63](index=63&type=chunk) [Other (Losses)/Gains, Net](index=28&type=section&id=Other%20(Losses)%2FGains,%20Net) In the first half of 2025, the Group recorded net exchange losses of approximately 2.9 million SGD, compared to net exchange gains of approximately 1.2 million SGD in the prior year, mainly due to the appreciation of the SGD against the USD and HKD - Net exchange losses of approximately **2.9 million SGD** were recorded, compared to net exchange gains of approximately **1.2 million SGD** in the prior year[64](index=64&type=chunk) - The losses were primarily due to the **appreciation of the SGD against the USD and HKD**[64](index=64&type=chunk) [Administrative Expenses](index=28&type=section&id=Administrative%20Expenses) Administrative expenses decreased by 11.8% from 2.6 million SGD to 2.3 million SGD, primarily due to effective cost-saving measures - Administrative expenses decreased by approximately **0.3 million SGD** or **11.8%** to approximately **2.3 million SGD**[65](index=65&type=chunk) - The decrease was primarily due to **effective cost-saving measures**[65](index=65&type=chunk) [Mobile Game Research and Development Expenses](index=28&type=section&id=Mobile%20Game%20Research%20and%20Development%20Expenses) Mobile game research and development expenses increased from 1.4 million SGD to 1.5 million SGD, primarily due to increased staff costs incurred in developing and optimizing mobile games - R&D expenses increased by approximately **0.1 million SGD** to approximately **1.5 million SGD**[66](index=66&type=chunk) - The increase was primarily due to **increased staff costs incurred in developing and optimizing the Group's mobile games**[66](index=66&type=chunk) [Income Tax Expense](index=28&type=section&id=Income%20Tax%20Expense) Income tax expense increased by 29.7% from 0.3 million SGD to 0.4 million SGD, primarily due to increased taxable profits from the Singapore manufacturing business - Income tax expense increased by approximately **0.1 million SGD** or **29.7%** to approximately **0.4 million SGD**[67](index=67&type=chunk) - The increase primarily stemmed from **increased taxable profits from the Singapore manufacturing business**[67](index=67&type=chunk) [Loss for the Period Attributable to Owners of the Company](index=28&type=section&id=Loss%20for%20the%20Period%20Attributable%20to%20Owners%20of%20the%20Company) Due to the aforementioned factors, the loss for the period attributable to owners of the Company expanded from 0.41 million SGD to 3.97 million SGD - Loss for the period attributable to owners of the Company was approximately **3.97 million SGD** (prior year: loss of approximately **0.41 million SGD**)[68](index=68&type=chunk) [Interim Dividend](index=28&type=section&id=Interim%20Dividend) The Board of Directors resolved not to declare any interim dividend for the six months ended 30 June 2025 - The Board of Directors resolved **not to declare any interim dividend** for the six months ended 30 June 2025[69](index=69&type=chunk) [Liquidity and Financial Resources](index=29&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's working capital and capital expenditure are primarily funded through shareholders' equity, operating cash, trade financing, bank loans, and shareholder loans; as of 30 June 2025, net current assets were approximately 33.0 million SGD, the current ratio was approximately 7.4 times, and the gearing ratio was approximately 52.5% - The Group's working capital and capital expenditure requirements have been primarily funded through a combination of **shareholders' equity, cash generated from operations, trade financing, bank loans, and shareholder loans**[71](index=71&type=chunk) - As of 30 June 2025, the Group's total equity attributable to owners of the Company was approximately **27.9 million SGD** (31 December 2024: approximately **30.2 million SGD**)[71](index=71&type=chunk) - As of 30 June 2025, the Group's net current assets were approximately **33.0 million SGD** (31 December 2024: approximately **35.6 million SGD**)[71](index=71&type=chunk) - As of 30 June 2025, the Group's current ratio was approximately **7.4 times** (31 December 2024: approximately **7.2 times**)[72](index=72&type=chunk) - As of 30 June 2025, the Group's gearing ratio was approximately **52.5%** (31 December 2024: approximately **51.6%**)[72](index=72&type=chunk) [Shareholder Loan](index=29&type=section&id=Shareholder%20Loan) Maodong (wholly owned by Mr. Li) provided the Company with an interest-free, unsecured, five-year shareholder loan totaling 100 million HKD (approximately 16.77 million SGD), primarily for general working capital and online business development - Maodong, wholly owned by Mr. Li, provided the Company with a shareholder loan totaling **100 million HKD (equivalent to approximately 16.77 million SGD)**[73](index=73&type=chunk) - The shareholder loan is **interest-free, unsecured, and for a term of five years**[73](index=73&type=chunk) - The Group primarily uses the shareholder loan for **general working capital and online business development**[73](index=73&type=chunk) [Capital Structure](index=29&type=section&id=Capital%20Structure) There have been no changes to the Group's capital structure since the listing of the company's shares on the Main Board of the Stock Exchange, with share capital consisting solely of ordinary shares - There have been **no changes** to the Group's capital structure since the listing of the Company's shares on the Main Board of the Stock Exchange[74](index=74&type=chunk) - The Company's share capital consists solely of **ordinary shares**[74](index=74&type=chunk) [Pledge of Assets](index=29&type=section&id=Pledge%20of%20Assets) As of 30 June 2025, the Group's other bank financing was secured by machinery with a carrying value of 0.4 million SGD - As of 30 June 2025, the Group's other bank financing was secured by the Group's machinery with a carrying value of **0.4 million SGD**[75](index=75&type=chunk) [Material Investments, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=29&type=section&id=Material%20Investments,%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) For the six months ended 30 June 2025, the Group held no material investments, material acquisitions, or disposals of subsidiaries, associates, and joint ventures - For the six months ended 30 June 2025, the Group held **no material investments, material acquisitions, or disposals of subsidiaries, associates, and joint ventures**[76](index=76&type=chunk) [Future Plans for Material Investments or Capital Assets](index=30&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) Other than those disclosed in the prospectus, the Group had no other future plans for material investments or additions to capital assets as of 30 June 2025 - Other than those disclosed in the prospectus, the Group had **no other future plans for material investments or additions to capital assets** as of 30 June 2025[78](index=78&type=chunk) [Contingent Liabilities](index=30&type=section&id=Contingent%20Liabilities) As of 30 June 2025, the Group had no material contingent liabilities, guarantees, or litigation that would significantly impact its financial position or operating results - As of 30 June 2025, the Group had **no material contingent liabilities, guarantees, or litigation** that would significantly impact its financial position or operating results[79](index=79&type=chunk) [Capital Commitments](index=30&type=section&id=Capital%20Commitments) As of 30 June 2025, the Group's capital commitments amounted to approximately 0.09 million SGD, related to the purchase of property, plant and equipment - As of 30 June 2025, the Group's capital commitments of approximately **0.09 million SGD** were related to the purchase of property, plant and equipment[80](index=80&type=chunk) [Events After the Reporting Period](index=30&type=section&id=Events%20After%20the%20Reporting%20Period) There were no significant events after the reporting period up to the date of this interim report - There were **no significant events** after the reporting period up to the date of this interim report[81](index=81&type=chunk) [Foreign Exchange Risk](index=30&type=section&id=Foreign%20Exchange%20Risk) The Group is exposed to foreign exchange risk from fluctuations in the SGD against the USD and HKD, but did not engage in derivative agreements or use financial instruments for hedging during the reporting period - The Group is exposed to foreign exchange risk due to **fluctuations in the exchange rates of SGD against USD and HKD**[82](index=82&type=chunk) - During the reporting period, the Group was **not involved in any derivative agreements** and did not use any financial instruments to hedge its foreign exchange risk[82](index=82&type=chunk) - Management monitors the Group's foreign exchange risk and will consider **hedging significant foreign exchange exposures** when necessary[82](index=82&type=chunk) [Employees and Remuneration Policy](index=30&type=section&id=Employees%20and%20Remuneration%20Policy) As of 30 June 2025, the Group employed 208 full-time and part-time employees, with total employee benefit expenses of approximately 3.9 million SGD; remuneration policy is based on qualifications, experience, and performance, with on-the-job training provided - As of 30 June 2025, the Group employed **208 full-time and part-time employees** (31 December 2024: 229 employees)[83](index=83&type=chunk) - Total employee benefit expenses (including directors' emoluments) for the reporting period were approximately **3.9 million SGD** (prior year: approximately **4.2 million SGD**)[83](index=83&type=chunk) - Employee salaries are determined based on each employee's **qualifications, experience, performance, and suitability**[83](index=83&type=chunk) - The Group also provides **on-the-job training** to employees to enhance technical capabilities and occupational health and safety[83](index=83&type=chunk) [Share Option Scheme](index=30&type=section&id=Share%20Option%20Scheme) The company adopted a share option scheme on 22 June 2018, expiring on 22 June 2028, to reward and retain employees; no share options have been granted, exercised, cancelled, or lapsed since its adoption - The Company adopted a share option scheme on **22 June 2018**, with an expiry date of **22 June 2028**[84](index=84&type=chunk) - The scheme aims to **reward or compensate employees** for their contributions to the Group, and/or enable the Group to **recruit and retain competent staff and attract talent**[84](index=84&type=chunk) - Since the adoption of the scheme, **no share options have been granted, exercised, cancelled, or lapsed**; there were also no outstanding share options as of 30 June 2025[84](index=84&type=chunk) [Other Information](index=30&type=section&id=Other%20Information) This section covers corporate governance, changes in directors' information, disclosure of directors' and substantial shareholders' interests in shares, purchase/sale/redemption of the company's listed securities, the Audit Committee's review, and directors' compliance with securities dealing - The company has complied with **all applicable code provisions of the Corporate Governance Code**[86](index=86&type=chunk) - **Mr. Li Thet**, through his wholly-owned company Maodong Limited, holds **60.23%** of the company's issued share capital[88](index=88&type=chunk)[91](index=91&type=chunk) [Corporate Governance](index=31&type=section&id=Corporate%20Governance) The company is committed to maintaining high standards of corporate governance and has adopted and complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules - The Company is committed to achieving and maintaining a **high level of corporate governance** to safeguard shareholders' interests and enhance corporate value and accountability[86](index=86&type=chunk) - For the six months ended 30 June 2025, the Company has **complied with all applicable code provisions of the Corporate Governance Code**[86](index=86&type=chunk) [Changes in Directors' Information](index=31&type=section&id=Changes%20in%20Directors'%20Information) This section discloses changes in directors' information, including Ms. Leung Tsz Ying's appointment as a member of the Nomination Committee and Mr. Wong Po Keung's appointment as an independent non-executive director and committee member of other listed companies - **Ms. Leung Tsz Ying** was appointed as a member of the Company's Nomination Committee, effective **25 March 2025**[89](index=89&type=chunk) - **Mr. Wong Po Keung** was appointed as an independent non-executive director and a member of relevant committees for **Weijun Bio-Tech Holdings Limited and Weijun Group Holdings Limited**[89](index=89&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=31&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of 30 June 2025, Mr. Li Thet held 60.23% of the company's issued share capital through controlled corporate interests; other than this, no other directors or chief executives had disclosable interests or short positions in shares Directors' Long Positions in Shares | Director Name | Nature of Interest | Number of Shares Held/Interested | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Li | Controlled corporation interest | 602,340,000 | 60.23% | - **Mr. Li** is deemed to be interested in the shares held by Maodong[88](index=88&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares of the Company](index=32&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of 30 June 2025, Maodong, as beneficial owner, held 60.23% of the company's issued share capital, making it a substantial shareholder of the company Substantial Shareholders' Long Positions in Shares | Shareholder Name | Nature of Interest | Number of Shares Held/Interested | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Maodong | Beneficial owner | 602,340,000 | 60.23% | - Maodong is **directly and wholly owned by Mr. Li**[91](index=91&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=33&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended 30 June 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and the company held no treasury shares - For the six months ended 30 June 2025, neither the Company nor any of its subsidiaries **purchased, sold, or redeemed any of the Company's listed securities**[93](index=93&type=chunk) - The Company holds **no treasury shares**[93](index=93&type=chunk) [Audit Committee](index=33&type=section&id=Audit%20Committee) The Audit Committee has reviewed the Group's unaudited condensed consolidated interim results for the six months ended 30 June 2025 and discussed accounting principles and practices with management, with no disagreements - The Company's Audit Committee has reviewed the Group's **unaudited condensed consolidated interim results** for the six months ended 30 June 2025[94](index=94&type=chunk) - The Audit Committee had **no disagreements** with management regarding the accounting principles and practices discussed[94](index=94&type=chunk) [Directors' Securities Transactions](index=33&type=section&id=Directors'%20Securities%20Transactions) The Group has adopted the Model Code as the code of conduct for directors' securities transactions, and all directors confirmed full compliance with the code during the reporting period - The Group has adopted the **Model Code** as the code of conduct for directors' securities transactions[95](index=95&type=chunk) - All Directors confirmed their **full compliance with the Model Code** for the six months ended 30 June 2025[95](index=95&type=chunk)

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2025年8月31日 | | | 狀態: | 新提交 | | --- | --- | --- | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | | | | 公司名稱: | FSM Holdings Limited | | | | | | 呈交日期: | 2025年9月1日 | | | | | | I. 法定/註冊股本變動 | | | | | | | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | 於香港聯交所上市 (註1) 是 | | | 證券代號 (如上市) | 01721 | 說明 | | | | | | | 法定/註冊股份數目 | | 面值 | 法定/註冊股本 | 增加 / 減少 (-) HKD 本月底結存 2,000,000,000 HKD 0.01 HKD 20,000,000 上月底結存 2,000,000,000 HKD 0.01 HKD 20,000,000 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股 ...

Core Viewpoint - FSM HOLDINGS (01721) reported a revenue of SGD 7.981 million for the six months ending June 30, 2025, representing a year-on-year increase of 13.32% [1] - The company recorded a loss attributable to owners of SGD 3.973 million, which is an increase of 861.99% compared to the previous year [1] - The basic loss per share was SGD 0.3973 [1] Financial Performance - Revenue for the period reached SGD 7.981 million, marking a 13.32% increase year-on-year [1] - Loss attributable to owners expanded to SGD 3.973 million, reflecting a significant increase of 861.99% year-on-year [1] - Basic loss per share was reported at SGD 0.3973 [1]

Core Viewpoint - FSM HOLDINGS reported a revenue of SGD 7.981 million for the six months ending June 30, 2025, representing a year-on-year increase of 13.32% [1] - The company recorded a loss attributable to owners of SGD 3.973 million, which is an increase of 861.99% compared to the previous year [1] - The basic loss per share was SGD 0.3973 [1] Financial Performance - Revenue for the period was SGD 7.981 million, up 13.32% year-on-year [1] - Loss attributable to owners was SGD 3.973 million, a significant increase of 861.99% year-on-year [1] - Basic loss per share stood at SGD 0.3973 [1]

Announcements and Company Information [HKEX Disclaimer](index=1&type=section&id=1.1%20HKEX%20Disclaimer) HKEX and the Stock Exchange are not responsible for the content of this announcement, do not guarantee its accuracy or completeness, and disclaim liability for any losses arising from reliance on it - HKEX and the Stock Exchange bear no responsibility for the content of this announcement, nor do they guarantee its accuracy or completeness[1](index=1&type=chunk) [Company Information and Reporting Period](index=1&type=section&id=1.2%20Company%20Information%20and%20Reporting%20Period) FSM Holdings Limited (Stock Code: 1721) announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025, with comparative data for 2024 - FSM Holdings Limited (Stock Code: 1721) announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025[2](index=2&type=chunk) - The reporting period covers the six months ended June 30, 2025, with comparative figures for the corresponding period in 2024[2](index=2&type=chunk) Condensed Consolidated Financial Statements [Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=2.1%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, revenue increased by 13.3% to 7,981 thousand SGD, but net loss for the period expanded to 3,973 thousand SGD due to a significant increase in other net losses, resulting in a basic loss per share of 0.3973 Singapore cents Condensed Consolidated Statement of Profit or Loss | Metric | Six Months Ended June 30, 2025 (thousand SGD) | Six Months Ended June 30, 2024 (thousand SGD) | | :--- | :--- | :--- | | Revenue | 7,981 | 7,043 | | Cost of sales | (4,377) | (4,228) | | Gross profit | 3,604 | 2,815 | | Other income | 50 | 13 | | Other (losses)/gains, net | (2,868) | 1,181 | | Selling and distribution expenses | (388) | (229) | | Administrative expenses | (2,271) | (2,575) | | Mobile game research and development expenses | (1,547) | (1,432) | | Operating loss | (3,420) | (227) | | Finance income | 271 | 536 | | Finance costs | (440) | (426) | | Finance (costs)/income, net | (169) | 110 | | Loss before income tax | (3,589) | (117) | | Income tax expense | (384) | (296) | | Loss for the period attributable to owners of the Company | (3,973) | (413) | | Basic and diluted loss per share (Singapore cents) | (0.3973) | (0.0413) | - Revenue increased by **13.3%** from **7,043 thousand SGD** in the same period of 2024 to **7,981 thousand SGD** in 2025[3](index=3&type=chunk) - Loss for the period attributable to owners of the Company significantly expanded from **413 thousand SGD** in the same period of 2024 to **3,973 thousand SGD** in 2025[3](index=3&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=2.2%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the total comprehensive loss was 2,291 thousand SGD, an increase from 900 thousand SGD in the prior year, primarily due to the loss for the period and currency translation differences Condensed Consolidated Statement of Comprehensive Income | Metric | Six Months Ended June 30, 2025 (thousand SGD) | Six Months Ended June 30, 2024 (thousand SGD) | | :--- | :--- | :--- | | Loss for the period | (3,973) | (413) | | Currency translation differences | 1,682 | (487) | | Other comprehensive income/(loss) for the period, net of tax | 1,682 | (487) | | Total comprehensive loss for the period attributable to owners of the Company | (2,291) | (900) | - Total comprehensive loss for the period attributable to owners of the Company increased from **900 thousand SGD** in the same period of 2024 to **2,291 thousand SGD** in 2025[5](index=5&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=2.3%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets were 48,216 thousand SGD, a decrease from December 31, 2024, with total equity at 27,870 thousand SGD and total liabilities at 20,346 thousand SGD, reflecting a reduction in current liabilities Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (thousand SGD) | December 31, 2024 (thousand SGD) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 10,083 | 10,600 | | Current assets | 38,133 | 41,294 | | **Total assets** | **48,216** | **51,894** | | **Equity** | | | | Share capital | 1,695 | 1,695 | | Reserves | 26,533 | 24,842 | | (Accumulated losses)/retained earnings | (358) | 3,624 | | **Total equity** | **27,870** | **30,161** | | **Liabilities** | | | | Non-current liabilities | 15,168 | 16,004 | | Current liabilities | 5,178 | 5,729 | | **Total liabilities** | **20,346** | **21,733** | | **Total equity and liabilities** | **48,216** | **51,894** | - Total assets decreased from **51,894 thousand SGD** as of December 31, 2024, to **48,216 thousand SGD** as of June 30, 2025[6](index=6&type=chunk) - Total equity decreased from **30,161 thousand SGD** to **27,870 thousand SGD**, primarily due to accumulated losses[6](index=6&type=chunk) Notes to the Condensed Consolidated Interim Financial Information [General Information](index=5&type=section&id=3.1%20General%20Information) The Group primarily engages in precision engineering, sheet metal fabrication, and online mobile game development and publishing, with the company incorporated in the Cayman Islands in 2018 and financial information presented in Singapore dollars - The Group's principal activities include precision engineering, sheet metal fabrication, and the development and publishing of online mobile games[8](index=8&type=chunk) - The Company was incorporated in the Cayman Islands on February 5, 2018[8](index=8&type=chunk) - The condensed consolidated interim financial information is presented in Singapore dollars ("SGD")[9](index=9&type=chunk) [Basis of Preparation](index=5&type=section&id=3.2%20Basis%20of%20Preparation) The condensed consolidated interim financial information is prepared in accordance with IAS 34 "Interim Financial Reporting" and IFRS, and should be read in conjunction with the annual financial statements for the year ended December 31, 2024 - The condensed consolidated interim financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[10](index=10&type=chunk) - This information should be read in conjunction with the Group's annual financial statements for the year ended December 31, 2024[10](index=10&type=chunk) [Significant Accounting Policies](index=5&type=section&id=3.3%20Significant%20Accounting%20Policies) The accounting policies applied in preparing these interim financial statements are consistent with those of the 2024 annual consolidated financial statements, except for the adoption of standard amendments effective January 1, 2025, which had no material impact on results or financial position - The accounting policies and methods of computation applied in preparing these condensed consolidated interim financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2024[11](index=11&type=chunk) [Amendments to Standards Adopted](index=5&type=section&id=3.3.1%20Amendments%20to%20Standards%20Adopted) The Group adopted amendments to IAS 21 and IFRS 1 (Amendments) effective January 1, 2025, which had no material impact on the Group's results or financial position - Adopted amendments to standards include IAS 21 and IFRS 1 (Amendments) "Lack of Exchangeability"[12](index=12&type=chunk) - These amendments are effective for annual periods beginning on or after January 1, 2025, but had no material impact on the Group's results or financial position[12](index=12&type=chunk) [Current Standards Amendments Not Yet Adopted](index=6&type=section&id=3.3.2%20Current%20Standards%20Amendments%20Not%20Yet%20Adopted) The report lists issued but not yet effective standard amendments for the fiscal year beginning January 1, 2025, which are not expected to have a significant impact on the current or future reporting periods - Several issued but not yet effective standard amendments are listed, including annual improvements to IFRS 7, 9, 10, 18, 19, and IAS 28[14](index=14&type=chunk) - These new standards, amendments, and annual improvements are not expected to have a significant impact on the Group's current or future reporting periods and foreseeable transactions[14](index=14&type=chunk) [Estimates and Financial Risk Management](index=6&type=section&id=3.4%20Estimates%20and%20Financial%20Risk%20Management) The preparation of interim financial information involves management judgments, estimates, and assumptions, where actual results may differ; the Group faces market, credit, and liquidity risks, but risk management policies remain unchanged since December 31, 2024, and most financial instruments' carrying amounts approximate fair value - The preparation of interim financial information requires management to make judgments, estimates, and assumptions, and actual results may differ from these estimates[15](index=15&type=chunk) - The Group's operations are exposed to market risks (including foreign exchange risk and interest rate risk), credit risk, and liquidity risk[16](index=16&type=chunk) - Risk management policies have remained unchanged since December 31, 2024[17](index=17&type=chunk) [Estimates](index=6&type=section&id=3.4.1%20Estimates) The preparation of interim financial information relies on management's judgments, estimates, and assumptions, which are consistent with the key judgments and sources of estimation uncertainty applied in the 2024 annual consolidated financial statements - The preparation of interim financial information requires management to make judgments, estimates, and assumptions, and actual results may differ from these estimates[15](index=15&type=chunk) - The significant judgments made by management in applying the accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements for the year ended December 31, 2024[15](index=15&type=chunk) [Financial Risk Management](index=7&type=section&id=3.4.2%20Financial%20Risk%20Management) The Group's business faces market risks (foreign exchange and interest rates), credit risk, and liquidity risk; the condensed consolidated interim financial information does not include financial risk management disclosures required by annual financial statements, and risk management policies remain unchanged since December 31, 2024 - The Group's business is exposed to market risks (including foreign exchange risk and interest rate risk), credit risk, and liquidity risk[16](index=16&type=chunk) - Risk management policies have remained unchanged since December 31, 2024[17](index=17&type=chunk) [Fair Value Estimation](index=7&type=section&id=3.4.3%20Fair%20Value%20Estimation) The Company has no significant financial instruments other than rental deposits, trade and other receivables, trade and other payables, cash and cash equivalents, short-term deposits, borrowings, and lease liabilities, whose carrying amounts approximate fair value due to their short-term nature - The Company has no significant financial instruments other than rental deposits, trade and other receivables, trade and other payables, cash and cash equivalents, short-term deposits, borrowings, and lease liabilities[18](index=18&type=chunk) - The carrying amounts of these balances, net of impairment (if applicable), are reasonable approximations of their fair values due to their short-term nature[18](index=18&type=chunk) [Segment Information](index=7&type=section&id=3.5%20Segment%20Information) The Group's business is divided into two reportable segments: manufacturing and online business, with manufacturing revenue growing 10.5% and online business revenue growing 32.4% in H1 2025, while manufacturing assets constitute a larger proportion and major customers are concentrated in Singapore - The Group's business is divided into two reportable segments: Manufacturing Business (precision engineering and sheet metal fabrication) and Online Business (development, publishing, and operation of online mobile games)[19](index=19&type=chunk)[20](index=20&type=chunk) - For the six months ended June 30, 2025, Manufacturing Business revenue was **6,797 thousand SGD**, and Online Business revenue was **1,184 thousand SGD**[21](index=21&type=chunk) - Manufacturing Business assets account for **26,910 thousand SGD** of the total segment assets, while Online Business assets account for **1,125 thousand SGD**[23](index=23&type=chunk) [Overview of Segments and Principal Activities](index=7&type=section&id=3.5.1%20Overview%20of%20Segments%20and%20Principal%20Activities) The Group's chief operating decision maker has identified two reportable segments: the Manufacturing Business, focused on precision engineering and sheet metal fabrication, and the Online Business, involved in developing, publishing, and operating online mobile games - The chief operating decision maker has identified two reportable segments: Manufacturing Business and Online Business[19](index=19&type=chunk)[20](index=20&type=chunk) - The Manufacturing Business focuses on sheet metal fabrication for precision engineering and precision machining services[19](index=19&type=chunk) - The Online Business involves the development, publishing, and operation of online mobile games[20](index=20&type=chunk) [Segment Profit/(Loss) Before Income Tax](index=8&type=section&id=3.5.2%20Segment%20Profit%2F%28Loss%29%20Before%20Income%20Tax) For the six months ended June 30, 2025, the Manufacturing Business recorded a profit of 1,369 thousand SGD, while the Online Business recorded a loss of 2,232 thousand SGD, resulting in a total segment loss of 863 thousand SGD Segment Profit/(Loss) Before Income Tax | Metric | Six Months Ended June 30, 2025 (thousand SGD) | Six Months Ended June 30, 2024 (thousand SGD) | | :--- | :--- | :--- | | **Reportable segment revenue** | | | | Manufacturing Business | 6,797 | 6,149 | | Online Business | 1,184 | 894 | | **Total** | **7,981** | **7,043** | | **Reportable segment results** | | | | Manufacturing Business | 1,369 | 2,251 | | Online Business | (2,232) | (2,374) | | **Total** | **(863)** | **(123)** | | Corporate income | 130 | 881 | | Corporate expenses | (2,856) | (875) | | **Loss before income tax** | **(3,589)** | **(117)** | - In H1 2025, the Manufacturing Business achieved a profit of **1,369 thousand SGD**, while the Online Business incurred a loss of **2,232 thousand SGD**[21](index=21&type=chunk) - Loss before income tax for H1 2025 was **3,589 thousand SGD**, a significant increase from **117 thousand SGD** in the same period of 2024[21](index=21&type=chunk) [Segment Assets](index=9&type=section&id=3.5.3%20Segment%20Assets) As of June 30, 2025, the Group's total segment assets were 28,035 thousand SGD, with the Manufacturing Business accounting for 26,910 thousand SGD and the Online Business for 1,125 thousand SGD; non-current assets are primarily located in Singapore and Malaysia Segment Assets | Metric | June 30, 2025 (thousand SGD) | December 31, 2024 (thousand SGD) | | :--- | :--- | :--- | | Manufacturing Business | 26,910 | 35,081 | | Online Business | 1,125 | 2,369 | | **Total segment assets** | **28,035** | **37,450** | | Corporate assets | 20,181 | 14,444 | | **Total assets** | **48,216** | **51,894** | Non-current Assets by Location | Non-current Asset Location | June 30, 2025 (thousand SGD) | December 31, 2024 (thousand SGD) | | :--- | :--- | :--- | | Singapore | 7,045 | 7,336 | | Hong Kong | 212 | 305 | | China | 29 | 101 | | Malaysia | 2,797 | 2,858 | | **Total non-current assets** | **10,083** | **10,600** | - Manufacturing Business assets constitute the majority of total segment assets, amounting to **26,910 thousand SGD**[23](index=23&type=chunk) [Segment Liabilities](index=10&type=section&id=3.5.4%20Segment%20Liabilities) As of June 30, 2025, the Group's total segment liabilities were 4,489 thousand SGD, with the Manufacturing Business liabilities at 3,793 thousand SGD and Online Business liabilities at 696 thousand SGD; corporate liabilities represent a larger proportion of total liabilities Segment Liabilities | Metric | June 30, 2025 (thousand SGD) | December 31, 2024 (thousand SGD) | | :--- | :--- | :--- | | Manufacturing Business | 3,793 | 3,423 | | Online Business | 696 | 1,636 | | **Total segment liabilities** | **4,489** | **5,059** | | Corporate liabilities | 15,857 | 16,674 | | **Total liabilities** | **20,346** | **21,733** | - Manufacturing Business liabilities were **3,793 thousand SGD**, and Online Business liabilities were **696 thousand SGD**[25](index=25&type=chunk) - Corporate liabilities, at **15,857 thousand SGD**, significantly exceeded segment liabilities[25](index=25&type=chunk) [Disaggregation of Revenue from Contracts with Customers](index=10&type=section&id=3.5.5%20Disaggregation%20of%20Revenue%20from%20Contracts%20with%20Customers) The Group's revenue primarily originates from Singaporean customers, with 6,797 thousand SGD from Singapore and 1,184 thousand SGD from other countries for the six months ended June 30, 2025 - The Group's revenue primarily derives from sales to customers in Singapore[26](index=26&type=chunk) Revenue by Customer Location | Customer Location | Six Months Ended June 30, 2025 (thousand SGD) | Six Months Ended June 30, 2024 (thousand SGD) | | :--- | :--- | :--- | | Singapore | 6,797 | 6,149 | | Other countries | 1,184 | 894 | | **Total** | **7,981** | **7,043** | [Information About Major Customers](index=11&type=section&id=3.5.6%20Information%20About%20Major%20Customers) For the six months ended June 30, 2025, two major customers (Customer A and Customer B) each contributed over 10% of the Group's total revenue, with Customer A contributing 3,489 thousand SGD and Customer B contributing 2,975 thousand SGD - For the six months ended June 30, 2025, two customers (Customer A and Customer B) individually contributed over **10%** of the Group's total revenue[28](index=28&type=chunk) Major Customer Revenue | Major Customer | Six Months Ended June 30, 2025 (thousand SGD) | Six Months Ended June 30, 2024 (thousand SGD) | | :--- | :--- | :--- | | Customer A | 3,489 | 3,381 | | Customer B | 2,975 | 2,447 | [Revenue](index=11&type=section&id=3.6%20Revenue) For the six months ended June 30, 2025, the Group's total revenue was 7,981 thousand SGD, primarily from sales of goods (6,663 thousand SGD) and sales of virtual game items (1,184 thousand SGD), with a significant increase in processing service revenue Revenue by Source | Revenue Source | Six Months Ended June 30, 2025 (thousand SGD) | Six Months Ended June 30, 2024 (thousand SGD) | | :--- | :--- | :--- | | Sales of goods | 6,663 | 6,123 | | Processing services | 134 | 26 | | Sales of virtual game items | 1,184 | 894 | | **Total** | **7,981** | **7,043** | - Sales of goods remained the primary revenue source, while processing service revenue significantly increased from **26 thousand SGD** to **134 thousand SGD**[29](index=29&type=chunk) - Revenue from sales of virtual game items increased from **894 thousand SGD** to **1,184 thousand SGD**[29](index=29&type=chunk) [Other (Losses)/Gains, Net](index=12&type=section&id=3.7%20Other%20%28Losses%29%2FGains,%20Net) For the six months ended June 30, 2025, the Group recorded a net exchange loss of 2,870 thousand SGD, resulting in other net losses of 2,868 thousand SGD, compared to a net exchange gain of 1,181 thousand SGD in the prior year Other (Losses)/Gains, Net | Metric | Six Months Ended June 30, 2025 (thousand SGD) | Six Months Ended June 30, 2024 (thousand SGD) | | :--- | :--- | :--- | | Exchange (losses)/gains, net | (2,870) | 1,181 | | Gain on disposal of property, plant and equipment | 2 | – | | **Total** | **(2,868)** | **1,181** | - Exchange differences shifted from a gain of **1,181 thousand SGD** in the same period of 2024 to a loss of **2,870 thousand SGD** in 2025[30](index=30&type=chunk) [Finance (Costs)/Income, Net](index=12&type=section&id=3.8%20Finance%20%28Costs%29%2FIncome,%20Net) For the six months ended June 30, 2025, the Group's net finance costs were 169 thousand SGD, primarily due to non-cash finance costs from the discounted value of shareholder loans, contrasting with net finance income of 110 thousand SGD in the prior year Finance (Costs)/Income, Net | Metric | Six Months Ended June 30, 2025 (thousand SGD) | Six Months Ended June 30, 2024 (thousand SGD) | | :--- | :--- | :--- | | Finance income - bank deposits | 271 | 536 | | Finance costs - unwinding of discount on shareholder loans | (417) | (396) | | Finance costs - other bank borrowings | (5) | (8) | | Finance costs - lease liabilities | (15) | (20) | | Finance costs - restoration costs | (3) | (2) | | **Finance (costs)/income, net** | **(169)** | **110** | - Net finance position shifted from an income of **110 thousand SGD** in the same period of 2024 to a cost of **169 thousand SGD** in 2025[31](index=31&type=chunk) - Non-cash finance costs arising from the discounted value of shareholder loans were the primary finance expense[31](index=31&type=chunk) [Loss Before Income Tax](index=13&type=section&id=3.9%20Loss%20Before%20Income%20Tax) For the six months ended June 30, 2025, loss before income tax significantly increased to 3,589 thousand SGD from 117 thousand SGD in the prior year, mainly due to exchange losses, higher employee benefits expenses, and depreciation and amortization Loss Before Income Tax Deductions | Deducted Item | Six Months Ended June 30, 2025 (thousand SGD) | Six Months Ended June 30, 2024 (thousand SGD) | | :--- | :--- | :--- | | Cost of inventories sold | 1,684 | 1,565 | | Subcontractor fees | 131 | 95 | | Impairment (reversal)/provision for inventories | (20) | 217 | | Employee benefits expenses (including directors' emoluments) | 3,933 | 4,196 | | Depreciation expense of property, plant and equipment | 369 | 604 | | Depreciation expense of right-of-use assets | 166 | 186 | | Amortisation of intangible assets | 5 | 4 | | Operating lease expenses for short-term leases | 115 | 31 | | Mobile game research and development expenses (excluding staff costs, amortisation and depreciation expenses) | 26 | 23 | | Mobile game advertising | 317 | 174 | | Legal and professional fees | 154 | 201 | | Auditor's remuneration - audit services | 186 | 173 | - Loss before income tax increased from **117 thousand SGD** in the same period of 2024 to **3,589 thousand SGD** in 2025[32](index=32&type=chunk) - Employee benefits expenses, mobile game research and development expenses, and advertising expenses were key operating costs[32](index=32&type=chunk) [Income Tax Expense](index=13&type=section&id=3.10%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was 384 thousand SGD, an increase from the prior year, primarily due to higher taxable profits from the Singapore manufacturing business, with varying corporate income tax rates and preferential policies across operating regions Income Tax Expense | Metric | Six Months Ended June 30, 2025 (thousand SGD) | Six Months Ended June 30, 2024 (thousand SGD) | | :--- | :--- | :--- | | Current income tax | 391 | 343 | | Deferred income tax | (7) | (47) | | **Income tax expense** | **384** | **296** | - Income tax expense increased from **296 thousand SGD** in the same period of 2024 to **384 thousand SGD** in 2025[33](index=33&type=chunk) [Singapore Corporate Income Tax](index=13&type=section&id=3.10.1%20Singapore%20Corporate%20Income%20Tax) Singapore corporate income tax is calculated at a rate of 17% on the taxable income of subsidiaries incorporated in Singapore, consistent with the prior year's rate - Singapore corporate income tax is calculated at a rate of **17%**[34](index=34&type=chunk) - The rate applies to the taxable income of subsidiaries incorporated in Singapore, consistent with the 2024 comparative period[34](index=34&type=chunk) [Malaysia Corporate Income Tax](index=14&type=section&id=3.10.2%20Malaysia%20Corporate%20Income%20Tax) Malaysia corporate income tax is calculated at a rate of 24% on the taxable income of subsidiaries incorporated in Malaysia, consistent with the prior year's rate - Malaysia corporate income tax is calculated at a rate of **24%**[35](index=35&type=chunk) - The rate applies to the taxable income of subsidiaries incorporated in Malaysia, consistent with the 2024 comparative period[35](index=35&type=chunk) [China Corporate Income Tax](index=14&type=section&id=3.10.3%20China%20Corporate%20Income%20Tax) China's small and micro-profit enterprises enjoy tax incentives, with an effective corporate income tax rate of 5% on the first 3 million RMB of annual taxable income, a benefit utilized by one of the Group's subsidiaries - China's small and micro-profit enterprises enjoy tax incentives, with an effective corporate income tax rate of **5%** on the first **3 million RMB** of annual taxable income[36](index=36&type=chunk) - One of the Group's subsidiaries qualifies as a small and micro-profit enterprise and benefits from these tax incentives[36](index=36&type=chunk) [Hong Kong Profits Tax](index=14&type=section&id=3.10.4%20Hong%20Kong%20Profits%20Tax) Hong Kong Profits Tax operates on a two-tiered system, with the first 2 million HKD of profits taxed at 8.25% and the remainder at 16.5%; the Group's Hong Kong subsidiaries made no provision for profits tax due to no taxable profits - Hong Kong Profits Tax has a two-tiered system: the first **2 million HKD** of profits is taxed at **8.25%**, and the remainder at **16.5%**[37](index=37&type=chunk) - The Group's subsidiaries incorporated in Hong Kong made no provision for Hong Kong Profits Tax due to no taxable profits[37](index=37&type=chunk) [Cayman Islands and British Virgin Islands Corporate Income Tax](index=14&type=section&id=3.10.5%20Cayman%20Islands%20and%20British%20Virgin%20Islands%20Corporate%20Income%20Tax) For the six months ended June 30, 2025 and 2024, the Group was not subject to any taxation in the Cayman Islands and British Virgin Islands - The Group is not subject to any taxation in the Cayman Islands and British Virgin Islands[38](index=38&type=chunk) [Loss Per Share](index=14&type=section&id=3.11%20Loss%20Per%20Share) For the six months ended June 30, 2025, basic loss per share significantly expanded to 0.3973 Singapore cents from 0.0413 Singapore cents in the prior year; diluted loss per share was the same as basic loss per share due to the absence of dilutive potential shares - Basic loss per share is calculated by dividing the loss attributable to owners of the Company by the weighted average number of ordinary shares outstanding[39](index=39&type=chunk) [Basic](index=14&type=section&id=3.11.1%20Basic) For the six months ended June 30, 2025, the loss attributable to owners of the Company was 3,973 thousand SGD, with a weighted average of 1,000,000 thousand ordinary shares outstanding, resulting in a basic loss per share of 0.3973 Singapore cents Basic Loss Per Share | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Loss attributable to owners of the Company (thousand SGD) | (3,973) | (413) | | Weighted average number of ordinary shares outstanding (thousand shares) | 1,000,000 | 1,000,000 | | Basic loss per share (Singapore cents) | (0.3973) | (0.0413) | - Basic loss per share increased from **0.0413 Singapore cents** in the same period of 2024 to **0.3973 Singapore cents** in 2025[40](index=40&type=chunk) [Diluted](index=15&type=section&id=3.11.2%20Diluted) For the six months ended June 30, 2025 and 2024, diluted loss per share was equal to basic loss per share due to the absence of any dilutive potential ordinary shares - Diluted loss per share was equal to basic loss per share due to the absence of any dilutive potential ordinary shares[41](index=41&type=chunk) [Interim Dividend](index=15&type=section&id=3.12%20Interim%20Dividend) The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: nil)[42](index=42&type=chunk) [Property, Plant and Equipment](index=15&type=section&id=3.13%20Property,%20Plant%20and%20Equipment) As of June 30, 2025, the carrying amount of property, plant and equipment was 9,641 thousand SGD, a decrease from 9,969 thousand SGD at the beginning of the year, primarily affected by depreciation expense and currency translation differences Property, Plant and Equipment | Metric | Six Months Ended June 30, 2025 (thousand SGD) | Six Months Ended June 30, 2024 (thousand SGD) | | :--- | :--- | :--- | | At January 1 | 9,969 | 10,685 | | Additions | 60 | 165 | | Depreciation | (369) | (604) | | Disposals | – | – | | Currency translation differences | (19) | 10 | | **At June 30** | **9,641** | **10,256** | - The carrying amount of property, plant and equipment decreased from **9,969 thousand SGD** as of January 1, 2025, to **9,641 thousand SGD** as of June 30, 2025[43](index=43&type=chunk) - Depreciation expense was **369 thousand SGD**, with additions of **60 thousand SGD**[43](index=43&type=chunk) [Trade and Other Receivables](index=16&type=section&id=3.14%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables amounted to 2,931 thousand SGD, slightly lower than 3,119 thousand SGD as of December 31, 2024, with trade receivables primarily aged between 0 and 30 days Trade and Other Receivables | Metric | June 30, 2025 (thousand SGD) | December 31, 2024 (thousand SGD) | | :--- | :--- | :--- | | Trade receivables, net | 2,512 | 2,482 | | Prepayments | 183 | 273 | | Deposits | 74 | 73 | | Other receivables | 162 | 291 | | **Total** | **2,931** | **3,119** | Ageing Analysis of Trade Receivables | Trade Receivables Ageing | June 30, 2025 (thousand SGD) | December 31, 2024 (thousand SGD) | | :--- | :--- | :--- | | 0 to 30 days | 1,480 | 1,324 | | 31 to 60 days | 1,017 | 1,106 | | 61 to 90 days | 5 | 50 | | Over 90 days | 10 | 2 | | **Total** | **2,512** | **2,482** | - Net trade receivables were **2,512 thousand SGD**, with credit terms typically ranging from **30 to 90 days**[44](index=44&type=chunk) [Trade and Other Payables and Provision for Restoration Costs](index=17&type=section&id=3.15%20Trade%20and%20Other%20Payables%20and%20Provision%20for%20Restoration%20Costs) As of June 30, 2025, total trade and other payables amounted to 3,910 thousand SGD, slightly lower than 3,924 thousand SGD as of December 31, 2024, with trade payables primarily aged between 0 and 30 days Trade and Other Payables and Provision for Restoration Costs | Metric | June 30, 2025 (thousand SGD) | December 31, 2024 (thousand SGD) | | :--- | :--- | :--- | | Non-current provision for restoration costs | 102 | 100 | | Current trade payables | 1,399 | 913 | | Other payables and accrued expenses — accrued expenses | 2,246 | 2,660 | | Other payables and accrued expenses — others | 265 | 351 | | **Total current liabilities** | **3,910** | **3,924** | | **Total** | **4,012** | **4,024** | Ageing Analysis of Trade Payables | Trade Payables Ageing | June 30, 2025 (thousand SGD) | December 31, 2024 (thousand SGD) | | :--- | :--- | :--- | | 0 to 30 days | 356 | 434 | | 31 to 60 days | 283 | 438 | | 61 to 90 days | 155 | 362 | | Over 90 days | 41 | 243 | | **Total** | **913** | **1,399** | - Current trade payables increased from **913 thousand SGD** as of December 31, 2024, to **1,399 thousand SGD** as of June 30, 2025[45](index=45&type=chunk) [Contract Liabilities](index=18&type=section&id=3.16%20Contract%20Liabilities) As of June 30, 2025, contract liabilities were 119 thousand SGD, primarily comprising unamortized revenue from the sale of virtual mobile game items, expected to be fulfilled within one year or less Contract Liabilities | Metric | June 30, 2025 (thousand SGD) | December 31, 2024 (thousand SGD) | | :--- | :--- | :--- | | Sales of virtual game items | 119 | 385 | | **Total** | **119** | **385** | - Contract liabilities primarily consist of unamortized revenue from the sale of virtual mobile game items[46](index=46&type=chunk) - The Group expects to provide services to fulfill these contract liabilities within one year or less[47](index=47&type=chunk) [Borrowings](index=18&type=section&id=3.17%20Borrowings) As of June 30, 2025, the Group's total borrowings amounted to 14,138 thousand SGD, mainly comprising shareholder loans and other bank borrowings; shareholder loans are interest-free, unsecured, and for a five-year term, while other bank borrowings are secured by machinery Borrowings | Metric | June 30, 2025 (thousand SGD) | December 31, 2024 (thousand SGD) | | :--- | :--- | :--- | | Shareholder loans | 13,928 | 14,589 | | Other bank borrowings | 210 | 286 | | **Total borrowings** | **14,138** | **14,875** | | Of which non-current liabilities | 13,982 | 14,722 | | Current liabilities | 156 | 153 | - Shareholder loans are interest-free, unsecured, and for a five-year term, totaling **100 million HKD** (approximately **16.77 million SGD**)[49](index=49&type=chunk) - Other bank borrowings primarily refer to financing arrangements with banks for the purchase of machinery, secured by two machines[49](index=49&type=chunk) [Share Capital](index=19&type=section&id=3.18%20Share%20Capital) As of June 30, 2025, the Company's authorized share capital was 2,000,000,000 ordinary shares of 0.01 HKD each, totaling 3,390 thousand SGD; issued and fully paid share capital was 1,000,000,000 shares, totaling 1,695 thousand SGD, consistent with December 31, 2024 Share Capital | Share Capital Type | Number of Shares | Share Capital (thousand SGD) | | :--- | :--- | :--- | | Authorized share capital (ordinary shares of 0.01 HKD each) | 2,000,000,000 | 3,390 | | Issued and fully paid share capital (ordinary shares of 0.01 HKD each) | 1,000,000,000 | 1,695 | - The number and amount of issued and fully paid share capital remained unchanged during the reporting period[52](index=52&type=chunk) [Capital Commitments](index=19&type=section&id=3.19%20Capital%20Commitments) As of June 30, 2025, the Group's contracted but unprovided capital commitments were 90 thousand SGD, primarily related to the purchase of property, plant and equipment, consistent with December 31, 2024 Capital Commitments | Capital Commitment Item | June 30, 2025 (thousand SGD) | December 31, 2024 (thousand SGD) | | :--- | :--- | :--- | | Capital expenditure related to the purchase of property, plant and equipment | 90 | 90 | - The Group's capital commitments primarily relate to the purchase of property, plant and equipment, amounting to **90 thousand SGD**[52](index=52&type=chunk) Management Discussion and Analysis [Business Review](index=20&type=section&id=4.1%20Business%20Review) Both the Group's manufacturing and online businesses achieved growth during the reporting period; the manufacturing business benefited from increased demand in Singapore, with revenue growing 10.5%, while the online business saw revenue growth of 32.4% through new game testing and advertising investment - The Group operates two main business segments: Manufacturing Business and Online Business[53](index=53&type=chunk) [Manufacturing Business](index=20&type=section&id=4.1.1%20Manufacturing%20Business) The Manufacturing Business focuses on sheet metal fabrication for precision engineering and precision machining services, with production facilities in Singapore and Malaysia; benefiting from increased demand in the Singapore market, segment revenue grew by 10.5% year-on-year to approximately 6.8 million SGD - The Manufacturing Business segment is dedicated to sheet metal fabrication for precision engineering and precision machining services, with production facilities located in Singapore and Malaysia[54](index=54&type=chunk) - For the six months ended June 30, 2025, Manufacturing Business revenue was approximately **6.8 million SGD**, representing a **10.5%** increase from the same period last year[55](index=55&type=chunk) - Revenue growth was primarily driven by increased customer sales orders due to rising demand in the Singapore sheet metal manufacturing market[55](index=55&type=chunk) [Online Business](index=21&type=section&id=4.1.2%20Online%20Business) The Online Business focuses on mobile game development, publishing, and operations; during the reporting period, the latest game was in testing phase, undergoing trials in multiple regions with continuous advertising investment, leading to a 32.4% year-on-year revenue growth to approximately 1.2 million SGD - The Online Business has established a dedicated development team focused on creating mobile games for a global audience[56](index=56&type=chunk) - The latest game is in its testing phase, undergoing trials in the US, Canada, several European countries, and Asian markets, with continuous advertising investment[56](index=56&type=chunk) - For the six months ended June 30, 2025, Online Business revenue was approximately **1.2 million SGD**, representing a **32.4%** increase from the same period last year[56](index=56&type=chunk) [Business Outlook](index=21&type=section&id=4.1%20Business%20Outlook) Facing global economic uncertainties, the Group will strengthen customer relationships in its manufacturing business, upgrade machinery for efficiency, and actively control costs; the online business will enhance its product portfolio through game development and potential acquisitions, while the Board explores other opportunities for revenue diversification - The global economic outlook faces downside risks, including trade restrictions, geopolitical tensions, and widening fiscal deficits[57](index=57&type=chunk) - The Group will maintain close relationships with manufacturing business customers, deploy external development strategies, and upgrade machinery and utilize robotics to enhance production efficiency and competitiveness[58](index=58&type=chunk) - The Online Business will strengthen its product portfolio by developing and optimizing mobile game products, and potentially exploring opportunities to acquire high-quality mobile games[59](index=59&type=chunk) - The Board will also explore other business opportunities to diversify revenue streams, aiming to enhance the Group's performance and deliver long-term sustainable value to shareholders[59](index=59&type=chunk) [Financial Review](index=22&type=section&id=4.2%20Financial%20Review) For the six months ended June 30, 2025, the Group's revenue grew by 13.3%, with improvements in both gross profit and gross margin; however, net loss for the period significantly expanded due to exchange losses and increased R&D expenses, while administrative expenses decreased through cost-saving measures [Revenue](index=22&type=section&id=4.2.1%20Revenue) For the six months ended June 30, 2025, the Group's total revenue was 7,981 thousand SGD, a 13.3% increase from the prior year, primarily driven by increased revenue from the manufacturing business Revenue by Business Segment | Business Segment | Six Months Ended June 30, 2025 (thousand SGD) | Share (%) | Six Months Ended June 30, 2024 (thousand SGD) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Manufacturing Business | 6,797 | 85.16 | 6,149 | 87.31 | | Online Business | 1,184 | 14.84 | 894 | 12.69 | | **Total** | **7,981** | **100.00** | **7,043** | **100.00** | - The Group's revenue increased by approximately **0.9 million SGD** or **13.3%** compared to the same period in 2024[61](index=61&type=chunk) - This growth was primarily due to increased revenue from the Manufacturing Business, driven by rising demand in the Singapore sheet metal manufacturing market[61](index=61&type=chunk) [Gross Profit and Gross Margin](index=23&type=section&id=4.2.2%20Gross%20Profit%20and%20Gross%20Margin) The Group's gross profit increased from 2.8 million SGD in the prior year to 3.6 million SGD in 2025, with the gross margin improving from 40.0% to 45.2%, mainly attributable to increased revenue and improved gross margin in the manufacturing business - Gross profit increased by approximately **0.8 million SGD** from **2.8 million SGD** to **3.6 million SGD**[62](index=62&type=chunk) - Gross margin increased from **40.0%** to **45.2%**[62](index=62&type=chunk) - The increase in gross profit was primarily due to increased revenue and improved gross margin in the Manufacturing Business[62](index=62&type=chunk) [Other (Losses)/Gains, Net](index=23&type=section&id=4.2.3%20Other%20%28Losses%29%2FGains,%20Net) The Group recorded a net exchange loss of approximately 2.9 million SGD in H1 2025, compared to a net exchange gain of approximately 1.2 million SGD in the prior year, mainly due to the appreciation of the Singapore dollar against the US dollar and Hong Kong dollar - The Group recorded a net exchange loss of approximately **2.9 million SGD** in H1 2025[63](index=63&type=chunk) - In the same period of 2024, there was a net exchange gain of approximately **1.2 million SGD**[63](index=63&type=chunk) - The loss was primarily due to the appreciation of the Singapore dollar against the US dollar and Hong Kong dollar[63](index=63&type=chunk) [Administrative Expenses](index=23&type=section&id=4.2.4%20Administrative%20Expenses) The Group's administrative expenses decreased by 11.8% from 2.6 million SGD in the prior year to 2.3 million SGD in 2025, primarily due to effective cost-saving measures - Administrative expenses decreased by approximately **0.3 million SGD** or **11.8%** from **2.6 million SGD** to **2.3 million SGD**[64](index=64&type=chunk) - The decrease was primarily due to effective cost-saving measures[64](index=64&type=chunk) [Mobile Game Research and Development Expenses](index=23&type=section&id=4.2.5%20Mobile%20Game%20Research%20and%20Development%20Expenses) The Group's mobile game research and development expenses increased from 1.4 million SGD in the prior year to 1.5 million SGD in 2025, mainly due to higher staff costs incurred for developing and optimizing mobile games - Research and development expenses increased by approximately **0.1 million SGD** from **1.4 million SGD** to **1.5 million SGD**[65](index=65&type=chunk) - The increase in expenses was primarily due to higher staff costs incurred for developing and optimizing mobile games[65](index=65&type=chunk) [Income Tax Expense](index=23&type=section&id=4.2.6%20Income%20Tax%20Expense) The Group's income tax expense increased by 29.7% from 0.3 million SGD in the prior year to 0.4 million SGD in 2025, primarily due to increased taxable profits from the Singapore manufacturing business - Income tax expense increased by approximately **0.1 million SGD** or **29.7%** from **0.3 million SGD** to **0.4 million SGD**[66](index=66&type=chunk) - The increase was primarily due to increased taxable profits from the Singapore Manufacturing Business[66](index=66&type=chunk) [Loss for the Period Attributable to Owners of the Company](index=24&type=section&id=4.2.7%20Loss%20for%20the%20Period%20Attributable%20to%20Owners%20of%20the%20Company) Due to the aforementioned financial factors, the Group recorded a loss attributable to owners of the Company of approximately 3.97 million SGD in H1 2025, a significant increase from 0.41 million SGD in the prior year - Loss for the period attributable to owners of the Company was approximately **3.97 million SGD** (2024: loss of approximately **0.41 million SGD**)[67](index=67&type=chunk) [Interim Dividend](index=24&type=section&id=4.2.8%20Interim%20Dividend) The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025 (2024: nil)[68](index=68&type=chunk) [Liquidity and Financial Resources](index=24&type=section&id=4.3%20Liquidity%20and%20Financial%20Resources) The Group's working capital and capital expenditure are primarily funded by equity, operating cash, trade finance, bank loans, and shareholder loans; as of June 30, 2025, net current assets were 33.0 million SGD, the current ratio was 7.4 times, and the gearing ratio was 52.5% - The Group's working capital and capital expenditure requirements are primarily funded through a combination of equity, cash generated from operations, trade finance, bank loans, and shareholder loans[69](index=69&type=chunk) - As of June 30, 2025, the Group's total equity attributable to owners of the Company was approximately **27.9 million SGD** (December 31, 2024: approximately **30.2 million SGD**)[69](index=69&type=chunk) Liquidity and Financial Resources | Metric | June 30, 2025 (million SGD) | December 31, 2024 (million SGD) | | :--- | :--- | :--- | | Net current assets | 33.0 | 35.6 | | Cash and cash equivalents and short-term bank deposits | 32.8 | 36.3 | | Borrowings | 14.1 | 14.9 | | Lease liabilities | 0.5 | 0.7 | | Current ratio | 7.4 times | 7.2 times | | Gearing ratio | 52.5% | 51.6% | [Capital Structure](index=25&type=section&id=4.4%20Capital%20Structure) There have been no changes to the Group's capital structure since the Company's shares were listed on the Main Board of the Stock Exchange, with share capital consisting solely of ordinary shares - There have been no changes to the Group's capital structure since the Company's shares were listed on the Main Board of the Stock Exchange[73](index=73&type=chunk) - The Company's share capital consists solely of ordinary shares[73](index=73&type=chunk) [Pledge of Assets](index=25&type=section&id=4.5%20Pledge%20of%20Assets) As of June 30, 2025, the Group's other bank borrowings were secured by machinery with a carrying amount of 0.4 million SGD, a decrease from 0.5 million SGD as of December 31, 2024 - The Group's other bank borrowings are secured by the Group's machinery with a carrying amount of **0.4 million SGD** (December 31, 2024: **0.5 million SGD**)[74](index=74&type=chunk) [Material Investments, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=25&type=section&id=4.6%20Material%20Investments,%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) For the six months ended June 30, 2025, the Group held no material investments, material acquisitions, or disposals of subsidiaries, associates, and joint ventures - For the six months ended June 30, 2025, the Group held no material investments, material acquisitions, or disposals of subsidiaries, associates, and joint ventures[75](index=75&type=chunk) [Future Plans for Material Investments or Capital Assets](index=25&type=section&id=4.7%20Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) Other than those disclosed in the prospectus, the Group had no other future plans for material investments or additions to capital assets as of June 30, 2025 - Other than those disclosed in the prospectus, the Group had no other future plans for material investments or additions to capital assets as of June 30, 2025[76](index=76&type=chunk) [Contingent Liabilities](index=25&type=section&id=4.8%20Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities, guarantees, or lawsuits that would significantly impact its financial position or operating results - As of June 30, 2025, the Group had no material contingent liabilities, guarantees, or lawsuits that would significantly impact its financial position or operating results[77](index=77&type=chunk) [Capital Commitments](index=26&type=section&id=4.9%20Capital%20Commitments) As of June 30, 2025, the Group's capital commitments were approximately 0.09 million SGD, related to the purchase of property, plant and equipment, consistent with December 31, 2024 - The Group's capital commitments were approximately **0.09 million SGD** (December 31, 2024: **0.09 million SGD**) related to the purchase of property, plant and equipment[78](index=78&type=chunk) [Events After the Reporting Period](index=26&type=section&id=4.10%20Events%20After%20the%20Reporting%20Period) There have been no significant events after the reporting period up to the date of this announcement - There have been no significant events after the reporting period up to the date of this announcement[79](index=79&type=chunk) [Foreign Exchange Risk](index=26&type=section&id=4.11%20Foreign%20Exchange%20Risk) The Group faces foreign exchange risk from fluctuations in the SGD against the USD and HKD, primarily arising from transactions and asset/liability balances denominated in these currencies; no derivative instruments or hedging were used during the reporting period, and management will monitor and consider hedging significant risks - The Group is exposed to foreign exchange risk due to fluctuations in the exchange rates of the Singapore dollar against the US dollar and Hong Kong dollar[80](index=80&type=chunk) - This risk arises from transactions and asset/liability balances denominated in US dollars and Hong Kong dollars[80](index=80&type=chunk) - No derivative instruments or financial instruments were used to hedge foreign exchange risk during the reporting period, and management will monitor and consider hedging when necessary[80](index=80&type=chunk) [Employees and Remuneration Policy](index=26&type=section&id=4.12%20Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 208 full-time and part-time employees, a decrease from 229 as of December 31, 2024; remuneration is determined based on qualifications, experience, and performance, with directors' remuneration reviewed by the Remuneration Committee and approved by the Board - As of June 30, 2025, the Group employed **208** full-time and part-time employees (December 31, 2024: **229** employees)[81](index=81&type=chunk) - Employee salaries are determined based on each employee's qualifications, experience, performance, and suitability[81](index=81&type=chunk) - Directors' remuneration is reviewed by the Remuneration Committee and approved by the Board[81](index=81&type=chunk) [Share Option Scheme](index=27&type=section&id=4.13%20Share%20Option%20Scheme) The Company adopted a share option scheme in 2018 to reward and retain employees; as of June 30, 2025, no options had been granted, exercised, cancelled, or lapsed under the scheme, with an authorized limit for 100,000,000 share options - The Company adopted a share option scheme on June 22, 2018, to reward or compensate employees, and to recruit and retain talent[82](index=82&type=chunk) - Since the adoption of the scheme, no share options have been granted, exercised, cancelled, or lapsed[82](index=82&type=chunk) - As of June 30, 2025, the number of share options available for grant under the scheme's authorized limit was **100,000,000** shares[82](index=82&type=chunk) [Corporate Governance](index=27&type=section&id=4.14%20Corporate%20Governance) The Company is committed to maintaining high standards of corporate governance and has adopted and complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules - The Company is committed to achieving and maintaining high standards of corporate governance to protect shareholders' interests, enhance corporate value, and ensure accountability[83](index=83&type=chunk) - The Company has adopted and complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules[83](index=83&type=chunk) [Changes in Directors' Information](index=27&type=section&id=4.15%20Changes%20in%20Directors%27%20Information) Ms. Leung Tsz Ying was appointed as a member of the Nomination Committee on March 25, 2025; Mr. Wong Po Keung was appointed as an independent non-executive director and committee member of Wai Chun Bio-Technology and Wai Chun Group Holdings on May 12, 2025 - Ms. Leung Tsz Ying was appointed as a member of the Company's Nomination Committee, effective March 25, 2025[84](index=84&type=chunk) - Mr. Wong Po Keung was appointed as an independent non-executive director and chairman of the audit committee of Wai Chun Bio-Technology and Wai Chun Group Holdings, and a member of other committees, effective May 12, 2025[84](index=84&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=28&type=section&id=4.16%20Purchase,%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and the Company held no treasury shares - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[86](index=86&type=chunk) - The Company held no treasury shares[86](index=86&type=chunk) [Audit Committee](index=28&type=section&id=4.17%20Audit%20Committee) The Company's Audit Committee has reviewed the Group's unaudited condensed consolidated interim results for the six months ended June 30, 2025, and discussed accounting principles and practices with management, with no disagreements - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim results for the six months ended June 30, 2025[87](index=87&type=chunk) - The Audit Committee discussed the accounting principles and practices adopted by the Group with management and had no disagreements[87](index=87&type=chunk) [Directors' Securities Transactions](index=28&type=section&id=4.18%20Directors%27%20Securities%20Transactions) The Group has adopted the Model Code set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions; all directors confirmed full compliance with the Model Code for the six months ended June 30, 2025 - The Group has adopted the Model Code set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions[88](index=88&type=chunk) - All directors confirmed full compliance with the Model Code for the six months ended June 30, 2025[88](index=88&type=chunk) [Publication of Interim Results and Interim Report](index=28&type=section&id=4.19%20Publication%20of%20Interim%20Results%20and%20Interim%20Report) This interim results announcement will be published on the HKEX website and the Company's website; the interim report for the six months ended June 30, 2025, will be dispatched to shareholders (upon request) and published on the HKEX and Company websites in due course - This interim results announcement will be published on the HKEX website (www.hkex.com.hk) and the Company's website (www.fsmtech.com)[89](index=89&type=chunk) - The interim report for the six months ended June 30, 2025, will be dispatched to the Company's shareholders (upon request) and published on the HKEX and Company websites in due course[89](index=89&type=chunk)

Core Viewpoint - FSM HOLDINGS (01721) anticipates a significant increase in losses for the six months ending June 30, 2025, projecting a loss attributable to shareholders of approximately 3.8 million to 4.2 million Singapore dollars, compared to a loss of about 413,000 Singapore dollars in the same period of 2024 [1] Financial Performance - The expected increase in losses is primarily attributed to a foreign exchange loss of approximately 2.9 million Singapore dollars during the period, resulting from the appreciation of the Singapore dollar against the US dollar and Hong Kong dollar [1] - In contrast, the same period in 2024 recorded a foreign exchange gain of approximately 1.181 million Singapore dollars [1]

Core Viewpoint - FSM HOLDINGS (01721.HK) is expected to report a significant increase in losses for the six months ending June 30, 2025, with estimated losses ranging from approximately 3,800,000 SGD to 4,200,000 SGD compared to a loss of about 413,000 SGD for the same period in 2024 [1] Financial Performance - The anticipated increase in losses is primarily attributed to a foreign exchange loss of approximately 2,900,000 SGD during the period, resulting from the appreciation of the Singapore dollar against the US dollar and Hong Kong dollar [1] - In contrast, the same period in 2024 recorded a foreign exchange gain of approximately 1,181,000 SGD [1]

Core Viewpoint - FSM HOLDINGS (01721) is expected to report a significant increase in losses for the six months ending June 30, 2025, with estimated losses ranging from approximately 3.8 million SGD to 4.2 million SGD, compared to a loss of about 413,000 SGD for the same period in 2024 [1] Financial Performance - The anticipated increase in losses is primarily attributed to a foreign exchange loss of approximately 2.9 million SGD due to the appreciation of the Singapore dollar against the US dollar and Hong Kong dollar during the period [1] - In contrast, the company recorded a foreign exchange gain of approximately 1.181 million SGD in the same period of 2024 [1]

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 之 內 容 概 不 負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或 任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 FSM Holdings Limited （於開曼群島註冊成立之有限公司） （股份代號：1721） 盈利警告 由於本公司仍在落實本集團於本期間之中期業績，故本公告所載資料僅為本公司 管理層基於董事會目前可得資料進行之初步評估。有關資料未經本公司核數師審 核，以及董事會轄下之審核委員會審閱。因此，本集團於本期間之實際中期業績 可能有別於本公告所載之資料。本集團本期間的中期業績公告將按上市規則預期 於二零二五年八月底公佈。 – 1 – 股東及潛在投資者於買賣本公司證券時務請審慎行事。 承董事會命 FSM Holdings Limited 主席 Li Thet 香港，二零二五年八月十五日 於本公告日期，董事會包括兩名執行董事Li Thet先生及黃月蓮女士；及三名獨立 非執行董事黃保強先生、劉振豪先生及梁子盈女士。 – 2 – 本公告乃由FSM H ...

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 的 內 容 概 不 負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部 或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 FSM Holdings Limited（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈，本公司將 於二零二五年八月二十七日（ 星期三 ）舉行董事會會議，藉以考慮及批准（ 其中包 括 ）本 公 司 及 其 附 屬 公 司於 截 至 二 零 二 五 年 六月 三 十 日 止 六 個 月 之 中期 業 績 及 派 發中期股息（ 如有 ）。 承董事會命 FSM Holdings Limited 主席 Li Thet 香港，二零二五年八月十五日 於本公告日期，本公司董事會包括兩名執行董事Li Thet先生及黃月蓮女士；及三 名獨立非執行董事黃保強先生、劉振豪先生及梁子盈女士。 FSM Holdings Limited （於開曼群島註冊成立之有限公司） （股份代號：1721） 董事會會議日期 ...