Workflow
加和国际控股(08513) - 2025 - 中期业绩

Report Overview GEM Characteristics and Disclaimer The announcement details MaxWin International Holdings Limited's interim results for the six months ended June 30, 2025, emphasizing GEM market risks and the precedence of the English version - The GEM market targets small and medium-sized companies, entailing higher investment risks, potentially greater market volatility, and no guaranteed liquidity2 - Hong Kong Exchanges and Clearing Limited and the Stock Exchange are not responsible for the content of this announcement, make no representation, and accept no liability for any loss2 - This announcement is prepared in English, with the Chinese version being a translation; in case of any inconsistency, the English version shall prevail3 Financial Statements Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, revenue grew 44.9% to S$7,060 thousand, gross profit turned positive, and loss per share significantly narrowed to 0.02 Singapore cents Key Financial Performance (For the six months ended June 30) | Metric | 2025 (S$ thousand) | 2024 (S$ thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 7,060 | 4,869 | 44.9% Increase | | Cost of sales | (5,517) | (4,987) | 10.6% Increase | | Gross profit/(loss) | 1,543 | (118) | Turned from loss to profit | | Operating loss | (128) | (1,486) | Loss narrowed by 91.4% | | Loss for the period | (192) | (1,581) | Loss narrowed by 87.8% | | Basic and diluted loss per share (Singapore cents) | (0.02) | (0.23) | Loss narrowed by 91.3% | - Other income increased from S$50 thousand in 2024 to S$175 thousand in 20255 - Administrative expenses increased from S$1,322 thousand in 2024 to S$1,655 thousand in 20255 Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets and equity decreased, cash and cash equivalents significantly reduced, and increased receivables and borrowings impacted liquidity and leverage ratios Key Financial Position (As of June 30) | Metric | 2025 (S$ thousand) | December 31, 2024 (S$ thousand) | Change | | :--- | :--- | :--- | :--- | | Total assets | 8,341 | 8,753 | 4.7% Decrease | | Equity attributable to owners of the Company | 1,938 | 2,141 | 9.5% Decrease | | Total equity | 1,923 | 2,126 | 9.6% Decrease | | Total liabilities | 6,418 | 6,627 | 3.2% Decrease | | Current assets | 6,658 | 6,491 | 2.6% Increase | | Current liabilities | 3,764 | 3,550 | 6.0% Increase | - Trade and other receivables increased from S$4,132 thousand as of December 31, 2024, to S$4,992 thousand as of June 30, 20257 - Cash and cash equivalents decreased from S$1,779 thousand as of December 31, 2024, to S$759 thousand as of June 30, 20257 Interim Condensed Consolidated Statement of Changes in Equity Equity attributable to owners decreased from S$2,141 thousand to S$1,938 thousand for the six months ended June 30, 2025, driven by a S$192 thousand loss and S$11 thousand in exchange differences - Equity attributable to owners of the Company decreased from S$2,141 thousand as of January 1, 2025, to S$1,938 thousand as of June 30, 20259 - Loss for the period resulted in an increase in accumulated losses by S$192 thousand9 - Exchange differences from translating foreign operations amounted to S$11 thousand, leading to a negative foreign currency translation reserve9 Unaudited Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash used in operations increased, investing cash outflow decreased, and financing activities shifted to a net outflow, leading to a S$1,020 thousand net decrease in cash Key Cash Flows (For the six months ended June 30) | Metric | 2025 (S$ thousand) | 2024 (S$ thousand) | Change | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | (792) | (683) | Outflow increased by 16.0% | | Net cash used in investing activities | (18) | (227) | Outflow decreased by 92.1% | | Net cash (used in)/generated from financing activities | (210) | 466 | Shifted from net inflow to net outflow | | Net decrease in cash and cash equivalents | (1,020) | (444) | Decrease increased by 129.7% | | Cash and cash equivalents at end of period | 759 | 1,154 | 34.2% Decrease | - Proceeds from borrowings significantly decreased from S$2,101 thousand in 2024 to S$500 thousand in 202512 - Repayment of principal portion of lease liabilities decreased from S$745 thousand in 2024 to S$671 thousand in 202512 Notes to the Financial Statements Company Information and Basis of Preparation The Cayman Islands-registered company operates in Singapore (medical device components) and China (big data solutions), with interim financial statements prepared using consistent accounting policies and presented in S$ thousand - The Company is registered in the Cayman Islands, with principal activities in Singapore (manufacturing and sales of medical device injection molded components and mold fabrication services) and China (big data solutions, technical support, and data services)13 - The interim condensed consolidated financial statements adopt the same accounting policies and methods of computation as those used in the annual consolidated financial statements for the year ended December 31, 202414 - The financial statements are presented in thousands of Singapore Dollars15 New Standards Adopted and Amendments to Standards and Estimates The Group adopted IAS 21 (Amendment) "Lack of Exchangeability" from January 1, 2025, with significant judgments and estimates consistent with the prior year, acknowledging potential differences in actual results - The Group first adopted and applied IAS 21 (Amendment) "Lack of Exchangeability" from January 1, 202517 - The significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty in preparing the interim condensed consolidated financial statements are the same as those applied to the consolidated financial statements for the year ended December 31, 202418 Financial Risk Management The Group faces market, credit, and liquidity risks, with unchanged risk management policies since December 31, 2024, and fair values of short-term receivables and payables approximating carrying amounts - The Group's business faces market risks (foreign currency risk and interest rate risk), credit risk, and liquidity risk19 - Risk management policies have not changed since December 31, 202420 Revenue and Segment Information For the six months ended June 30, 2025, all segments, including new data solutions and services (S$341 thousand), achieved revenue growth, leading to an overall gross profit turnaround Segment Revenue and Gross Profit (For the six months ended June 30) | Segment | 2025 Revenue (S$ thousand) | 2025 Gross Profit (S$ thousand) | 2024 Revenue (S$ thousand) | 2024 Gross Profit/(Loss) (S$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Components | 4,550 | 1,019 | 4,037 | 36 | | Sub-component parts | 2,169 | 485 | 832 | (154) | | Data solutions and services | 341 | 39 | – | – | | Total | 7,060 | 1,543 | 4,869 | (118) | - Sales of goods increased from S$4,645 thousand in 2024 to S$6,594 thousand in 202527 - Sales of services increased from zero in 2024 to S$341 thousand in 2025, while revenue from mold fabrication services decreased from S$224 thousand in 2024 to S$125 thousand in 202527 Other Income Total other income for the six months ended June 30, 2025, surged by 250% to S$175 thousand, mainly driven by increased scrap sales Composition of Other Income (For the six months ended June 30) | Item | 2025 (S$ thousand) | 2024 (S$ thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Government grants | 21 | 27 | 22.2% Decrease | | Scrap sales | 154 | 23 | 569.6% Increase | | Total | 175 | 50 | 250.0% Increase | Expense Details Total expenses for the six months ended June 30, 2025, rose 12.1% to S$7,261 thousand, driven by increased cost of inventories sold and legal fees, while other depreciation and employee benefits decreased Major Expense Components (For the six months ended June 30) | Item | 2025 (S$ thousand) | 2024 (S$ thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Cost of inventories sold | 3,283 | 2,404 | 36.6% Increase | | Employee benefit expenses | 1,861 | 1,919 | 3.0% Decrease | | Depreciation of property, plant and equipment | 113 | 191 | 40.9% Decrease | | Depreciation of right-of-use assets | 482 | 757 | 36.3% Decrease | | Legal and professional fees | 430 | 185 | 132.4% Increase | | Research and development expenses | 264 | 293 | 9.9% Decrease | | Total expenses | 7,261 | 6,475 | 12.1% Increase | - Total directors' emoluments increased from S$188 thousand in 2024 to S$200 thousand in 202531 Finance Costs Finance costs for the six months ended June 30, 2025, decreased by 32.7% to S$64 thousand, mainly due to lower interest on lease liabilities despite increased bank borrowing interest Composition of Finance Costs (For the six months ended June 30) | Item | 2025 (S$ thousand) | 2024 (S$ thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Interest expense on lease liabilities | 39 | 75 | 48.0% Decrease | | Interest expense on bank borrowings | 25 | 13 | 92.3% Increase | | Interest expense on trust receipt loans | – | 7 | 100.0% Decrease | | Total | 64 | 95 | 32.7% Decrease | Income Tax Expense For the six months ended June 30, 2025, no income tax expense was recognized due to no taxable profit, and no withholding tax was provided for Chinese subsidiaries' retained earnings - Total income tax expense for the six months ended June 30, 2025, was zero33 - The corporate income tax rate in Singapore is 17%, while companies in the Cayman Islands and British Virgin Islands are exempt from income tax343536 - The corporate income tax rate in China is 25%, but no withholding tax was provided as retained earnings of Chinese subsidiaries are not expected to be distributed in the foreseeable future3839 Loss Per Share Basic and diluted loss per share for the six months ended June 30, 2025, significantly narrowed by 91.3% to 0.02 Singapore cents, driven by reduced loss attributable to owners Loss Per Share (For the six months ended June 30) | Metric | 2025 | 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company (S$ thousand) | (192) | (1,581) | Loss narrowed by 87.8% | | Weighted average number of ordinary shares in issue (thousand shares) | 818,455 | 682,046 | 20.0% Increase | | Basic and diluted loss per share (Singapore cents) | (0.02) | (0.23) | Loss narrowed by 91.3% | - Diluted loss per share was the same as basic loss per share as there were no outstanding potential ordinary shares during the period41 Property, Plant and Equipment Property, plant and equipment net book value decreased from S$425 thousand to S$328 thousand as of June 30, 2025, due to depreciation and write-offs, partially offset by additions - The net book value of property, plant and equipment decreased from S$425 thousand as of January 1, 2025, to S$328 thousand as of June 30, 202543 - Additions during the period amounted to S$18 thousand, depreciation was S$113 thousand, and write-offs were S$2 thousand4344 Right-of-Use Assets and Lease Liabilities As of June 30, 2025, right-of-use assets and lease liabilities significantly decreased by 73.2% and 35.9% respectively, indicating reduced leasing activities and lower associated depreciation and cash outflows Right-of-Use Assets and Lease Liabilities (As of June 30) | Metric | 2025 (S$ thousand) | December 31, 2024 (S$ thousand) | Change | | :--- | :--- | :--- | :--- | | Right-of-use assets | 176 | 658 | 73.2% Decrease | | Lease liabilities (Total) | 1,196 | 1,867 | 35.9% Decrease | | Depreciation expense of right-of-use assets (For the six months ended June 30) | 482 | 757 | 36.3% Decrease | - There were no additions or disposals of right-of-use assets during the period45 - Total cash outflow for leases decreased from S$820 thousand in 2024 to S$710 thousand in 202546 Trade and Other Receivables Total trade and other receivables increased by 20.8% to S$4,992 thousand as of June 30, 2025, mainly due to higher trade receivables, with no loss allowance recognized for trade receivables or contract assets Trade and Other Receivables (As of June 30) | Item | 2025 (S$ thousand) | December 31, 2024 (S$ thousand) | Change | | :--- | :--- | :--- | :--- | | Trade receivables | 3,729 | 2,707 | 37.8% Increase | | Other receivables | 417 | 440 | 5.2% Decrease | | Prepayments | 250 | 393 | 36.4% Decrease | | Deposits paid | 596 | 592 | 0.7% Increase | | Total | 4,992 | 4,132 | 20.8% Increase | - Trade receivables are primarily denominated in Singapore Dollars and US Dollars, with credit terms generally ranging from 30 to 90 days51 - No loss allowance was recognized for trade receivables and contract assets as of the reporting date54 Share Capital As of June 30, 2025, the Company's issued share capital remained at S$1,412 thousand (818,455,377 shares) and share premium at S$20,516 thousand, following a new share issuance on July 29, 2024 - As of June 30, 2025, the number of issued and fully paid ordinary shares was 818,455,377, with share capital of S$1,412 thousand and share premium of S$20,516 thousand56 - On July 29, 2024, the Company issued 136,409,229 new shares, generating proceeds of S$1,690 thousand56 Trade and Other Payables Total trade and other payables slightly increased by 0.2% to S$1,391 thousand as of June 30, 2025, with trade payables decreasing and other payables increasing, and no overdue amounts exceeding 90 days Trade and Other Payables (As of June 30) | Item | 2025 (S$ thousand) | December 31, 2024 (S$ thousand) | Change | | :--- | :--- | :--- | :--- | | Trade payables | 1,035 | 1,055 | 1.9% Decrease | | Other payables and accrued expenses | 356 | 333 | 6.9% Increase | | Total | 1,391 | **1,388 | 0.2% Increase | - Trade payables are primarily denominated in US Dollars and Singapore Dollars58 - The aging analysis of trade payables shows no overdue amounts exceeding 90 days58 Related Party Transactions Key management includes Mr. Poon Sui Ho and Ms. Xu Bin, with related party borrowings being unsecured, carrying 0% to 4.80% annual interest, and having extendable one-year repayment terms - Key management includes Executive Directors Mr. Poon Sui Ho and Ms. Xu Bin6061 - Borrowings are unsecured, with annual interest rates ranging from 0% to 4.80%, and a repayment period of one year, extendable62 Management Discussion and Analysis Business Review For the six months ended June 30, 2025, revenue grew 44.9% to S$7.1 million, and net loss significantly narrowed by 87.5% to S$0.2 million, driven by increased medical device component sales - The Group's revenue was approximately S$7.1 million, representing a 44.9% year-on-year increase64 - Net loss was approximately S$0.2 million, a significant 87.5% year-on-year reduction, primarily due to increased one-off sales orders for medical device injection molded plastic components64 Outlook Amid a challenging global economic outlook, the Group will prudently manage costs, growth, and risks, leveraging its expertise and diversified segments for sustainable development and business resilience - Global economic recovery is weaker than expected, with an uncertain outlook; the Group will remain vigilant and prudently manage operating costs, business growth, and risks65 - The Group believes its business segment diversification can promote sustainable development and will continue to take action to mitigate operational risks and maximize resource utilization65 Financial Review For the six months ended June 30, 2025, revenue grew 44.9% to S$7.1 million, gross profit turned positive with a 21.9% margin, administrative expenses increased, and loss for the period significantly reduced - Revenue increased by 44.9% to S$7.1 million, primarily attributable to increased one-off sales orders for medical device injection molded plastic components in Singapore and big data solutions and services in China66 - Cost of sales increased by 10.0% to S$5.5 million, consistent with revenue growth67 - Gross profit turned from a gross loss of S$0.1 million in the prior period of 2024 to a gross profit of S$1.5 million, with gross margin increasing from 2.4% to 21.9%68 - Administrative expenses increased by 30.8% to S$1.7 million, mainly due to increased legal and professional fees incurred for business development6970 - Loss for the period decreased from S$1.6 million to S$0.2 million71 Liquidity, Financial Resources and Capital Structure As of June 30, 2025, liquidity and leverage ratios deteriorated due to decreased cash, increased borrowings, and higher receivables/inventories, though no assets were pledged - The current ratio decreased from 1.83 times as of December 31, 2024, to 1.77 times as of June 30, 2025, primarily due to decreased cash, increased borrowings, and higher inventories/receivables72 - The debt-to-equity ratio increased from 2.0 times as of December 31, 2024, to 2.1 times as of June 30, 2025, mainly due to increased borrowings and decreased total equity72 - Cash and cash equivalents decreased from S$1.8 million as of December 31, 2024, to S$0.8 million as of June 30, 2025, while total borrowings increased from S$0.5 million to S$1.1 million73 - The Group did not pledge any assets as of the reporting date73 Employees and Remuneration Policy As of June 30, 2025, the Group's employee count increased to 94, with total staff costs stable at S$1.9 million, supported by training, career development, and competitive remuneration - As of June 30, 2025, the Group's total number of employees was 94, an increase from 88 as of June 30, 202474 - Total staff costs for the six months ended June 30, 2025, were approximately S$1.9 million, consistent with the prior period75 - The company provides on-the-job training, career development support, and remuneration and benefits, while adopting an equal opportunity policy75 Interim Dividend The Board does not recommend an interim dividend payment for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 202576 Commitments, Contingent Liabilities and Material Investments As of June 30, 2025, the Group had no material commitments, contingent liabilities, or investments, nor any other future plans for significant capital assets beyond this announcement - As of June 30, 2025, the Group had no material commitments, contingent liabilities, or material investments777879 - Other than as disclosed in this announcement, there were no other future plans for material investments or capital assets80 Significant Acquisitions and Disposals For the six months ended June 30, 2025, the Group did not undertake any significant acquisitions or disposals of subsidiaries - For the six months ended June 30, 2025, the Group did not undertake any significant acquisitions or disposals of subsidiaries81 Foreign Exchange Risk The Group faces foreign exchange risk from purchases denominated in Singapore Dollars, US Dollars, and Renminbi, but this risk was not significant during the reporting periods, and no hedging instruments were used - The Group faces foreign exchange risk from purchases denominated in Singapore Dollars, US Dollars, and Renminbi82 - Foreign exchange risk was not significant during the reporting periods, and no financial instruments were used for hedging82 Capital Structure and Post Balance Sheet Events The Group's capital structure remained unchanged for the period ended June 30, 2025, with no significant post-balance sheet events affecting business or financial performance identified by the Directors - The Group's capital structure remained unchanged for the period ended June 30, 202583 - No significant events concerning the Group's business or financial performance were identified subsequent to the interim period-end84 Shareholder and Governance Information Directors' and Chief Executive's Interests As of June 30, 2025, Mr. Poon Sui Ho held a 4.13% long position in the Company's shares, with no other directors or chief executives holding any disclosable interests - Mr. Poon Sui Ho held a long position of 33,832,000 shares, representing 4.13% of the Company's share capital85 - As of June 30, 2025, no directors or chief executives of the Company held any interests in underlying shares in respect of physically settled, cash settled, or other equity derivatives86 Substantial Shareholders' and Other Persons' Interests As of June 30, 2025, Ms. Wu Haiyan and Mr. Xie Jianlong were substantial shareholders, holding 6.44% and 7.53% long positions respectively, with no other disclosable interests known - Ms. Wu Haiyan held 52,694,000 shares, representing 6.44% of the share capital87 - Mr. Xie Jianlong held a long position of 61,612,000 shares, representing 7.53% of the share capital87 Dealings in Listed Securities For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - 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 securities88 Share Option Scheme The Company adopted a 10-year share option scheme on December 19, 2017, for 40,000,000 options (4.9% of shares), with no grants or outstanding options for the six months ended June 30, 2025 - The Company adopted a share option scheme on December 19, 2017, with a 10-year validity, allowing for the issuance of 40,000,000 share options, representing approximately 4.9% of issued shares89 - For the six months ended June 30, 2025, no share options were granted, and none remained outstanding91 Corporate Governance The Company maintains high corporate governance standards, complying with GEM Listing Rules, with the exception of the combined Chairman and CEO roles, which the Board deems in the best interest of the Company and shareholders - The Company has complied with the GEM Listing Rules Appendix C1 Corporate Governance Code, except for the combined roles of Chairman and Chief Executive Officer held by Mr. Poon, which the Board believes serves the best interests of the Company and its shareholders92 - All Directors have fully complied with the required standards for Directors' dealings in the Company's securities93 Audit Committee The Audit Committee, comprising three independent non-executive directors and chaired by Professor Cheung Ka Yu, reviewed the Group's unaudited interim financial information for the six months ended June 30, 2025, confirming its compliance with relevant standards - The Audit Committee comprises three independent non-executive directors, with Professor Cheung Ka Yu as Chairman94 - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial information for the six months ended June 30, 2025, and considers it to be in compliance with applicable accounting standards, the GEM Listing Rules, and other applicable legal requirements95 Board Composition As of the announcement date, the Board of Directors comprises four executive directors (Mr. Poon Sui Ho, Ms. Xu Bin, Mr. Lee Yan Kong, Mr. Yeung Kei Kwan) and three independent non-executive directors (Mr. Foo Sze An, Professor Cheung Ka Yu, Ms. Chan Yee Wah) - Executive Directors include Mr. Poon Sui Ho, Ms. Xu Bin, Mr. Lee Yan Kong, and Mr. Yeung Kei Kwan96 - Independent Non-executive Directors include Mr. Foo Sze An, Professor Cheung Ka Yu, and Ms. Chan Yee Wah96