OIO Holdings Limited: 2Q & 1H 2025 Financial Results Analysis

OIO Holdings Limited has released its unaudited condensed interim financial statements for the second quarter and six months ended 30 June 2025. The results reflect challenging business conditions, continued losses, and ongoing efforts to stabilize operations. Below, we break down the key financial metrics, performance trends, and notable corporate developments disclosed in the report.

Key Financial Metrics & Comparative Table

Performance Review & Historical Trends

• Revenue: Revenue declined sharply both YoY and QoQ. For 2Q 2025, revenue dropped nearly half compared to the same period last year, while first half revenue was down more than 40% YoY. The decrease was mainly attributed to lower digital wallets and staking services income and the absence of agency service income which had contributed S\$41,000 in 1H 2024.
• Gross Profit Margin: The gross profit margin fell from 67.6% to 48.5% for 1H and from 64.7% to 46.0% for 2Q, reflecting both lower revenue and a less favorable cost structure.
• Net Loss: While the Group remains loss-making, net loss narrowed substantially. For 2Q 2025, net loss was S\$200,199, a significant improvement from S\$1,278,688 a year ago. For 1H 2025, net loss declined 15.5% YoY to S\$932,227.
• Earnings Per Share: EPS loss per share improved in both 2Q and 1H comparisons, tracking the reduction in net loss.
• Net Liability Value: The Group’s negative equity position worsened, with net liability value per share deteriorating from (2.68) cents at end-2024 to (3.03) cents as of 30 June 2025.

Exceptional Items & Notable Expenses

• Impairments: The Group recognized further impairment on crypto assets (S\$125,674 in 1H 2025), building upon significant impairments in FY2024. Goodwill and software development costs remain fully impaired.
• Disposal Losses: Losses on disposal of crypto assets amounted to S\$306,243 in 1H 2025, a reversal from disposal gains of S\$473,975 in 1H 2024.
• Cost Reductions: Administrative expenses fell by 38.7% YoY in 1H 2025, reflecting cost-cutting measures, absence of previous amortization and depreciation charges, and reduced professional and staff costs.
• Finance Costs: Finance costs dropped as convertible notes were converted to equity in late 2024, eliminating related interest expenses.

Cash Flow and Balance Sheet Overview

• Operating Cash Flow: The Group continued to report operating cash outflows (S\$531,000 in 1H 2025), offset by inflows from disposal of crypto assets and new shareholder loans.
• Liquidity: Cash and bank balances remain very low (S\$29,391 as at 30 June 2025), with significant reliance on shareholder support and conversion of crypto assets for liquidity.
• Negative Working Capital & Equity: Negative working capital (S\$0.89 million) and negative equity (S\$6.65 million) persist, but the Board asserts the Group remains a going concern due to shareholder loans, support undertakings, and the potential to liquidate crypto assets if needed.

Corporate Actions & Funding

• Share Capital: No new shares were issued in 2Q 2025, except for 1,000,000 ordinary shares under the Performance Share Plan. All convertible notes have been converted, removing related dilution overhang.
• Loans and Support: Shareholder loans increased by S\$400,000 in 2Q 2025 and have been extended for repayment after 1 July 2026. The controlling shareholder has undertaken to provide up to S\$2.0 million in financial support over the next 12 months.
• No Dividends: No dividends were declared or recommended, in line with the company’s loss position and focus on conserving cash.

Chairman’s Statement and Management Tone

The report does not include a separate Chairman’s Statement, but management commentary is measured and pragmatic. The tone acknowledges ongoing losses, subdued revenues, and the company’s dependence on shareholder support. Despite negative equity and working capital, management remains committed to cost discipline, revenue base expansion, and exploring blockchain and cryptocurrency opportunities. There is explicit recognition of the need for further fundraising and operational turnaround.

Industry Trends and Outlook

• Market Environment: The cryptocurrency market reached a historic \$4 trillion capitalization in July 2025, with increasing regulatory recognition globally. OIO intends to leverage these trends via strategic partnerships and alliances, while maintaining financial discipline.
• Opportunities and Risks: The Group is actively seeking new business and fundraising opportunities to stabilize and grow operations, but remains exposed to ongoing market volatility, funding risks, and liquidity constraints.

Related-Party Transactions & Unusual Items

• No general mandate for interested person transactions is in place. Related-party transactions include shareholder loans and professional/consulting fees paid to a related party.
• There are no share buybacks, placements, or asset sales during the period.

Legal and Contingent Liabilities

• The Group continues to carry a provision for contingent liability (S\$176,637) related to a revenue-sharing agreement stemming from a historical loan arrangement in connection with its Moonstake acquisition.
• No litigation, asset revaluations, or other extraordinary events were disclosed.

Conclusion: Outlook Weak, Stabilization Remains Work-in-Progress

OIO Holdings Limited’s 2Q and 1H 2025 results indicate ongoing operational challenges and financial stress. While net losses narrowed significantly and cost controls gained traction, revenues remain weak, and the Group’s negative equity and working capital positions persist. Liquidity is dependent on continued shareholder support and asset conversions.

Management is taking appropriate steps to conserve cash and explore new revenue opportunities, but until the Group returns to positive operating cash flow and profitability, its outlook remains weak. Investors should monitor the company’s fundraising activities, business development initiatives, and the broader crypto market for signs of recovery or further deterioration.

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