Core Viewpoint - Guoen Holdings (08121.HK) reported a total revenue increase of approximately 13.79% to about HKD 79.72 million for the six months ending September 30, 2025, despite a decrease in profit attributable to shareholders [1] Financial Performance - Total revenue increased by approximately 13.79% to about HKD 79.72 million compared to the same period last year [1] - Profit recorded was approximately HKD 0.75 million, a decrease from HKD 3.04 million for the six months ending September 30, 2024 [1] Cost and Expenses - The decrease in profit was primarily due to: 1. Increased operating costs from service costs [1] 2. Increased employee costs from administrative expenses [1] 3. A reduction in marketing-related expenses offsetting some selling expenses [1] Dividend Policy - The board has decided not to recommend the payment of an interim dividend for the six months ending September 30, 2025, consistent with the previous period [1] Revenue Sources - The increase in total revenue was mainly attributed to higher income from creative and technology services, partially offset by a decrease in income from social media management services and digital advertising [1]

Guoen Holdings Limited 國恩控股有限公司 (Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立的有限公司） (Stock Code: 8121) （股份代號：8121） NOTIFICATION LETTER 通知信函 Date as postmarked Dear Non-registered Holder(s)(Note 1), Guoen Holdings Limited (the "Company") – Notification of publication of 2025 Interim Report (the "Current Corporate Communication") The English and Chinese versions of the Company's Current Corporate Communications are available on the Company's website at www.guruonline.com.hk and the we ...

Guoen Holdings Limited 國恩控股有限公司 (Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立的有限公司） Guoen Holdings Limited (the "Company") – Notice of publication of 2025 Interim Report (the "Current Corporate Communication") The English and Chinese versions of the Company's Current Corporate Communications are now available on the Company's website at www.guruonline.com.hk and the website of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") at www.hkexnews.hk respectively (the "Websit ...

Core Insights - The company, Guoen Holdings (08121), reported a 13.79% year-on-year increase in total revenue, reaching HKD 79.72 million [1] - Net profit decreased by 75.44% to HKD 747,000, with earnings per share at HKD 0.03 [1] - The decline in profit is attributed to increased operating costs from service costs leading to a decrease in gross profit, as well as rising employee costs from administrative expenses during the period [1]

Financial Performance - Revenue for the six months ended September 30, 2025, was HKD 79,715,000, an increase of 13.5% compared to HKD 70,056,000 for the same period in 2024[4] - Gross profit for the six months ended September 30, 2025, was HKD 11,644,000, down 17.6% from HKD 14,133,000 in the previous year[4] - The company reported a net profit attributable to owners of HKD 747,000 for the six months ended September 30, 2025, compared to a profit of HKD 3,041,000 for the same period in 2024, representing a decrease of 75.5%[4] - The basic and diluted earnings per share for the six months ended September 30, 2025, were HKD (0.04), compared to HKD 0.27 for the same period in 2024[4] - The company reported a net profit before tax of HKD 747,000 for the six months ended September 30, 2025, compared to HKD 3,041,000 for the same period in 2024, reflecting a decrease of approximately 75.5%[18][19] - Profit attributable to owners of the company decreased to approximately HKD 750,000 from HKD 3,040,000, mainly due to increased operational costs and administrative expenses[53] Revenue Breakdown - Revenue from digital advertising services for the six months ended September 30, 2025, was HKD 5,553,000, a decrease of 16.6% from HKD 6,662,000 in 2024[15] - Revenue from social media management services decreased to HKD 12,926,000 for the six months ended September 30, 2025, down 5.3% from HKD 13,655,000 in 2024[15] - Creative and technology services revenue increased to HKD 61,236,000 for the six months ended September 30, 2025, up 22.9% from HKD 49,739,000 in 2024[15] - Revenue from external customers in China increased to HKD 9,386,000 in 2025 from HKD 8,805,000 in 2024, marking a growth of about 6.6%[20] - Revenue from social media management services was approximately HKD 12,930,000, accounting for about 16.21% of total revenue, a decrease from 19.49% in the previous period[46] - Revenue from digital advertising services was approximately HKD 5,550,000, representing about 6.97% of total revenue, down from 9.51%[46] - Revenue from creative and technology services rose to approximately HKD 61,240,000, making up about 76.82% of total revenue, up from 71.00%[46] Assets and Liabilities - Total assets as of September 30, 2025, were HKD 84,301,000, slightly up from HKD 83,628,000 as of March 31, 2025[5] - Current liabilities decreased to HKD 40,553,000 as of September 30, 2025, from HKD 43,617,000 as of March 31, 2025, indicating improved liquidity[5] - The company’s total equity increased to HKD 45,123,000 as of September 30, 2025, from HKD 41,768,000 as of March 31, 2025[5] - The total cash and cash equivalents at the end of the period decreased to HKD 27,588,000 in 2025 from HKD 34,114,000 in 2024, reflecting a decline of 19.1%[9] - Trade receivables as of September 30, 2025, amounted to HKD 51,064,000, a decrease from HKD 52,572,000 as of March 31, 2025, representing a decline of 2.9%[32] - The expected credit loss provision for trade receivables was HKD 8,870,000 as of September 30, 2025, consistent with the provision of HKD 8,844,000 as of March 31, 2025, indicating stability in credit risk assessment[32] Cash Flow and Financing - The net cash used in operating activities for the six months ended September 30, 2025, was HKD (3,594,000), compared to HKD (1,130,000) for the same period in 2024, indicating a significant increase in cash outflow[9] - The financing activities generated a net cash inflow of HKD 1,821,000 for the six months ended September 30, 2025, a decrease of 84.8% from HKD 11,948,000 in 2024[9] - The company issued new shares raising HKD 3,000,000 during the reporting period, contributing to an increase in total equity[6] - The company raised approximately HKD 17.3 million by issuing 16,672,000 rights shares at a subscription price of HKD 1.04 per share, with a net amount of approximately HKD 15.2 million after completion of the rights issue[54] - The intended use of the net proceeds from the rights issue includes approximately HKD 6 million for developing online advertising business in China, HKD 4 million for digital social media management and marketing services, and HKD 5.2 million for general working capital[54] Employee and Operational Costs - Total employee costs for the six months ended September 30, 2025, were HKD 16,323,000, a decrease from HKD 17,403,000 in 2024, reflecting a reduction of about 6.2%[27] - The employee cost for the group was approximately HKD 16,320,000, compared to HKD 17,400,000 for the six months ended September 30, 2024[68] - Selling expenses decreased by approximately 17.35% from HKD 3,020,000 to HKD 2,500,000, attributed to reduced marketing expenses and sales staff costs[49] - Administrative expenses increased by approximately 6.62% from HKD 9,290,000 to HKD 9,910,000, primarily due to rising administrative staff costs[50] Corporate Governance and Compliance - The board is committed to adhering to the corporate governance code as per GEM listing rules, with measures in place to enhance internal controls and professional training[88] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated results for the period and found them compliant with applicable accounting standards[91] - The company has not disclosed any interests or conflicts of interest related to competitive businesses during the period[83] - The company has not adopted any stock option plans as of the report date[81] Market and Risk Factors - The group faces risks related to attracting and retaining key personnel, potential delays in customer payments, and reliance on third-party platforms[75] - The company has no foreign currency hedging policy but will continue to monitor foreign currency risks[60]

Core Insights - The company, Guoen Holdings (08121), reported a 13.79% year-on-year increase in total revenue, reaching HKD 79.72 million [1] - Net profit decreased by 75.44% to HKD 747,000, with earnings per share at HKD 0.03 [1] - The decline in profit is attributed to increased operating costs from service costs leading to a decrease in gross profit, as well as rising employee costs from administrative expenses during the period [1] Financial Performance - Total revenue increased to HKD 79.72 million, reflecting a growth of approximately 13.79% compared to the previous year [1] - Net profit fell to HKD 747,000, marking a significant decrease of 75.44% year-on-year [1] - Earnings per share were reported at HKD 0.03 [1] Cost Analysis - The reduction in profit is primarily due to increased operating costs associated with service costs, which negatively impacted gross profit [1] - Administrative expenses, particularly employee costs, also contributed to the overall increase in operational costs during the reporting period [1]

Financial Performance - Total revenue increased by approximately 13.79% from HK$70,060,000 to HK$79,720,000 for the six months ending September 30, 2025[4] - Gross profit decreased from HK$14,130,000 to HK$11,640,000, with a gross margin decline from 20.17% to 14.61%[4] - Profit attributable to owners decreased significantly from HK$3,040,000 to HK$750,000 for the six months ending September 30, 2025[5] - Basic and diluted earnings per share decreased to HK$0.03 from HK$0.23 for the six months ending September 30, 2025[7] - The pre-tax profit for the six months ended September 30, 2025, was HKD 747,000, compared to HKD 3,041,000 for the same period in 2024, indicating a decrease of approximately 75.5%[22] Revenue Breakdown - Revenue from creative and technology services increased, partially offset by a decrease in revenue from social media management and digital advertising services[4] - Revenue from digital advertising services for the six months ended September 30, 2025, was HKD 5,553,000, down 16.6% from HKD 6,662,000 in 2024[19] - Social media management services generated revenue of HKD 12,926,000 for the six months ended September 30, 2025, a slight decrease of 5.3% compared to HKD 13,655,000 in 2024[19] - Creative and technology services saw a significant increase in revenue, reaching HKD 61,236,000 for the six months ended September 30, 2025, up 22.9% from HKD 49,739,000 in 2024[19] - The revenue breakdown shows digital advertising at HKD 5,553,000, social media at HKD 12,926,000, and creative services at HKD 61,236,000 for the six months ended September 30, 2025[22] Operating Costs and Expenses - Operating costs increased due to higher service costs and administrative expenses, particularly employee costs[6] - Selling expenses decreased by approximately 17.35% from about HKD 3,020,000 to approximately HKD 2,500,000 during the period[54] - Administrative expenses increased by approximately 6.62% from about HKD 9,290,000 to approximately HKD 9,910,000, primarily due to rising administrative employee costs[55] - Total employee costs amounted to HKD 8,934,000 for the three months ended September 30, 2025, a decrease of 9% from HKD 9,817,000 in the same period of 2024[31] Cash Flow and Liquidity - The company reported a net cash used in operating activities for the six months ended September 30, 2025, was HKD (3,594) million, compared to HKD (1,130) million for the same period in 2024, indicating a worsening cash flow situation[11] - The company’s financing activities generated a net cash inflow of HKD 1,821 million for the six months ended September 30, 2025, down from HKD 11,948 million in the previous year, indicating reduced financing activities[11] - The current liquidity ratio is approximately 2.08, an increase from 1.92 as of March 31, 2025, primarily due to a decrease in current liabilities[65] - The company has no interest-bearing loans or borrowings as of September 30, 2025, maintaining a stable financial position[66] Assets and Liabilities - As of September 30, 2025, total assets amounted to HKD 84,301 million, a slight increase from HKD 83,628 million as of March 31, 2025, reflecting a growth of approximately 0.8%[8] - The company's cash and cash equivalents decreased to HKD 27,588 million from HKD 29,391 million, representing a decline of about 6.1%[11] - Total equity increased to HKD 45,123 million as of September 30, 2025, up from HKD 41,768 million as of March 31, 2025, marking an increase of approximately 8.5%[9] - The total liabilities decreased to HKD 45,123 million as of September 30, 2025, down from HKD 41,768 million, indicating improved financial stability[10] Shareholder Information - The company raised HKD 3,000 million through a new share placement during the reporting period, contributing to the increase in total equity[9] - The company completed a rights issue on September 20, 2024, issuing 16,672,000 shares at a subscription price of HKD 1.04 per share[69] - As of September 30, 2025, the company's issued share capital was approximately HKD 2,948,040, with 30,008,000 shares issued[70] - As of September 30, 2025, the company has a total of 7,476,500 shares held by Mr. Yin Di, representing 24.92% ownership[83] Corporate Governance - The board is committed to adhering to the corporate governance code and has implemented measures to enhance internal control systems[94] - The audit committee consists of three independent non-executive directors, with a focus on financial reporting and internal control oversight[97] - The audit committee has reviewed the unaudited condensed consolidated results for the period and believes they comply with applicable accounting standards[98]

Core Viewpoint - The company expects a significant decline in profit for the six months ending September 30, 2025, with an estimated profit attributable to shareholders of approximately HKD 300,000, compared to HKD 3.04 million for the same period ending September 30, 2024 [1] Summary by Relevant Categories Financial Performance - The anticipated profit for the upcoming six-month period is projected to be around HKD 300,000, a decrease from the HKD 3.04 million recorded in the previous year [1] Operational Challenges - The board attributes the expected decline in profit primarily to increased operating costs due to service costs, which have led to a reduction in gross profit [1] - Additionally, there has been an increase in administrative expenses, particularly in employee costs, contributing to the overall financial performance decline [1]

Core Viewpoint - Guoen Holdings (08121) issued a profit warning, expecting a profit attributable to shareholders of no less than approximately HKD 300,000 for the six months ending September 30, 2025, a significant decrease from approximately HKD 3.04 million in the same period last year [1] Financial Performance - The expected profit for the upcoming period is projected to be around HKD 300,000, which represents a decline of approximately 90.1% compared to the previous year's profit of HKD 3.04 million [1] - The board attributes this change primarily to increased operating costs due to service costs and higher employee costs contributing to administrative expenses [1]

Core Viewpoint - The company expects a significant decrease in profit attributable to shareholders for the six months ending September 30, 2025, projecting a profit of no less than approximately 300,000 HKD, compared to 3,040,000 HKD in the same period last year [1] Summary by Relevant Categories Financial Performance - The anticipated profit for the upcoming period is approximately 300,000 HKD, a decline from the previous year's profit of 3,040,000 HKD [1] Cost Factors - The board attributes the profit decline primarily to increased operating costs due to service costs, which have led to a reduction in gross profit [1] - Additionally, there has been an increase in administrative expenses related to employee costs [1]