Group 1: Company Overview - LionTeng Holdings (狮腾控股) is a company established in 2014 in Singapore, focusing on providing digital commerce solutions for the Southeast Asian market [1] - The company has recently seen a significant stock price increase of 27.36%, closing at HKD 20.2 per share amid a general market downturn [1][2] Group 2: Market Potential - Southeast Asia has emerged as one of the fastest-growing and most promising regions for e-commerce globally, with a growth rate of 18.6% in 2023 [2] - The Gross Merchandise Value (GMV) of Southeast Asia's e-commerce market is projected to reach USD 159 billion in 2024, reflecting a year-on-year growth of 15.2% [2] - The frequency of online shopping among consumers in Southeast Asia has increased nearly eightfold compared to a decade ago [2] Group 3: Challenges and Opportunities - Despite the optimistic market outlook, the e-commerce sector in Southeast Asia faces challenges such as rising costs due to tariffs and logistics, which are compressing profit margins [2] - There is a significant gap between the familiarity with AI technology among e-commerce sellers (68%) and its actual application rate (37%), indicating a potential area for growth [2][3] - LionTeng Holdings is positioned to benefit from the burgeoning e-commerce market and is expanding its influence in the Asian digital ecosystem [3] Group 4: Recent Developments - In March, LionTeng Holdings partnered with Hong Kong Telecom to launch ShopHK, aimed at assisting small and medium enterprises in entering the Southeast Asian e-commerce market [4] - The company announced plans to acquire 100% of Mento Digital Technology for USD 30 million, which specializes in AI and enterprise software solutions [4] Group 5: Financial Performance - Financial data indicates that LionTeng Holdings is facing significant challenges, with projected revenues of SGD 10.2 million in 2024, a decline of 19.5% year-on-year, and a net loss expected to widen to SGD 27 million [5] - The company's current financial situation raises questions about its ability to thrive in the capital-intensive AI sector and highly competitive market [5]

Core Viewpoint - LionTeng Holdings announced a subscription option agreement to acquire up to 100% of the shares of Mengtou Digital Technology for a total consideration of $30 million (approximately RMB 215 million) [1] Group 1: Acquisition Details - The acquisition is contingent upon Mengtou Digital Technology achieving a guaranteed revenue of no less than RMB 540 million and a guaranteed net profit after tax of no less than RMB 66 million over the three fiscal years from January 1, 2025, to December 31, 2027 [3] - The company has signed an exclusive joint venture agreement with Mengtou Digital Technology to develop and launch Geene, an innovative AI platform that integrates generative AI, blockchain, and big data technologies [3] Group 2: Company Background - Mengtou Digital Technology, established in 2011, is an AI and enterprise software company based in China, providing AI technology solutions to over 1,200 well-known state-owned and private enterprises across various industries including real estate, healthcare, retail, and manufacturing [4] - LionTeng Holdings is a big data, digital, and AI solutions company headquartered in Singapore, listed on the Hong Kong Stock Exchange, and has gained market attention for successfully completing Hong Kong's first De-SPAC transaction [4]

中国AI转型领域预计近期内将持续增长。根据赛迪顾问(市场研究公司)的数据，至2035年中国AI转型领 域市场规模将达2384亿美元(约合人民币1.83万亿元)。随着中国越来越多的企业投资数字化解决方案以 使自身业务流程适应未来需求，本公司认为新数据经济将成为中国经济增长的关键所在。 智通财经APP讯，狮腾控股(02562)发布公告，于2025年3月31日，本公司作为承授人与目标公司股东作 为授予人(授予人)订立认购期权契据(认购期权契据)，授予人同意授予本公司一项认购期权(认购期权)， 以收购盟拓数字科技(苏州)有限公司(盟拓数字科技或"目标公司"，连同其附属公司统称"目标集团")高 达100%股权。 各授予人已向本公司承诺，就2025年1月1日至2027年12月31日止三个财政年度，目标公司的收入总额不 得低于人民币5.4亿元(担保收入)及目标公司的除税后净利润总额不得低于人民币6600万元(担保除税后 净利润)。 此外，如本公司于2025年3月6日发布的公告所述，本公司已与目标公司签订独家合资协议，共同开发并 推出Geene — 一个革命性的AI平台，融合生成式AI、区块链和大数据技术，打造一个安全、高效 ...

Financial Performance - For the fiscal year ending December 31, 2024, revenue was SGD 101.9 million, a decrease of 19.5% year-over-year, primarily due to a strategic shift towards the higher-margin D2B business model[5]. - The company reported a net loss of SGD 269.8 million for the year, compared to a loss of SGD 17.3 million in 2023, largely due to expenses related to the special purpose acquisition company (SPAC) merger[5]. - Adjusted EBITDA loss significantly narrowed from SGD 9.2 million in 2023 to SGD 3.9 million in 2024, improving the adjusted EBITDA margin from -7.2% to -3.8%[5]. - The net loss attributable to shareholders for 2024 was SGD 269,767,000, compared to a loss of SGD 17,310,000 in 2023, indicating a significant increase in losses[19]. - The company recorded a net loss of SGD 269.8 million in 2024, compared to a net loss of SGD 17.3 million in 2023, resulting in a net loss margin of 264.8% for 2024, up from 13.7% in 2023[47]. Revenue Breakdown - Total revenue decreased to SGD 101,861,000 from SGD 126,595,000 in 2023, representing a decline of approximately 19.6%[16]. - Direct-to-Consumer (D2C) sales through omnichannel decreased to SGD 68,905,000 in 2024 from SGD 99,952,000 in 2023, a drop of about 31.1%[16]. - Digital solutions services (D2B) revenue increased to SGD 32,956,000 in 2024 from SGD 26,643,000 in 2023, marking a growth of approximately 23.6%[16]. - D2B sales revenue increased from 21.0% of total revenue in 2023 to 32.4% in 2024, indicating a strategic shift towards higher-margin business models[29]. - D2C revenue fell from SGD 100.0 million in 2023 to SGD 68.9 million in 2024, as some brand partners were transitioned to the D2B model[34]. Profitability and Margins - Gross profit remained stable at SGD 31.3 million, with a gross margin of 30.8%, reflecting a year-over-year increase of 5.7 percentage points[5]. - Overall gross margin improved from 25.1% in 2023 to 30.8% in 2024, attributed to the higher margin D2B model[38]. - Gross profit from the D2B model increased by 34.0% to SGD 24.1 million in 2024, while D2C gross profit decreased by 47.5% to SGD 7.2 million[37]. Expenses and Liabilities - General and administrative expenses surged from SGD 26.0 million in 2023 to SGD 117.5 million in 2024, mainly due to a significant increase in share-based payment expenses[43]. - The company's total liabilities as of December 31, 2024, amounted to SGD 455,000, while the net asset value was negative SGD 20,652,000[10]. - The company's current liabilities net position as of December 31, 2024, was SGD 75,912,000, which includes financial liabilities of SGD 121,577,000 to be settled in shares[15]. - Trade payables decreased from SGD 39,000 thousand in 2023 to SGD 15,458 thousand in 2024, a reduction of approximately 60.4%[21]. Cash Flow and Assets - The company reported cash and cash equivalents of SGD 47.9 million as of December 31, 2024, compared to SGD 13.4 million in 2023[9]. - The cash conversion cycle improved from -24 days in 2023 to -39 days in 2024, aligning with the company's strategy to expand its technology-driven D2B digital solutions[3]. - Trade receivables increased to SGD 19,057,000 in 2024 from SGD 17,012,000 in 2023, reflecting a rise of approximately 12.1%[20]. Strategic Initiatives - The company plans to continue expanding its presence in multiple markets, including Greater China, and aims to leverage opportunities in innovative digital solutions and AI transformation[4]. - The launch of Geene AI positions the company as a pioneer in the rapidly growing AI sector, enhancing its leadership role in the global AI ecosystem[4]. - The company aims to enhance its brand partnership network, particularly targeting Greater China brands looking to expand in Southeast Asia[61]. - The company will continue to invest in advanced technologies such as artificial intelligence and machine learning to drive automation and cost efficiency[61]. Corporate Governance and Future Outlook - The company has adopted high standards of corporate governance following the completion of a special purpose acquisition company merger on October 30, 2024[66]. - A non-binding letter of intent was signed on January 23, 2025, for a potential acquisition of up to 100% equity in a Chinese big data and digital transformation platform[65]. - The company plans to pursue strategic acquisitions and invest in digital solutions and platforms to expand market share and create long-term value[61]. Employee and Operational Metrics - As of December 31, 2024, the company had a total of 333 employees[64]. - The total employee compensation cost, including share-based payments, was SGD 30.1 million for the reporting period[64]. Audit and Reporting - The consolidated financial statements for the year ending December 31, 2024, have been verified by Deloitte Touche Tohmatsu, ensuring consistency with the amounts approved by the board on March 31, 2025[70]. - The annual general meeting is scheduled for June 27, 2025, with a record date for shareholder attendance set for the same day[71].

Core Viewpoint - LionTeng Holdings announced a non-binding investment intention letter for a potential acquisition of up to 100% equity in a target company, which is a Chinese big data and digital transformation platform established in 2011 [1] Group 1 - The potential acquisition is set to be negotiated further between the parties involved [1] - The target company is a limited liability company founded in China [1]