OxPay Financial Limited: 1H2025 Financial Review and Outlook

OxPay Financial Limited, a Singapore-based payment solutions provider, has released its unaudited condensed interim consolidated financial statements for the six months ended 30 June 2025. This report provides a detailed analysis of the company’s financial performance, key trends, and recent corporate actions to inform investors and market watchers.

Key Financial Metrics and Performance Overview

*2H2024 is not specifically disclosed in the report; comparison is made to the previous year and year-end where appropriate.

Historical Performance and Trends

• Revenue Growth: The Group saw a 26% YoY increase in revenue, with 1H2025 revenue rising to S\$2.3 million from S\$1.8 million in 1H2024. This was mainly driven by increased sales in the Digital Commerce Enabling Solutions (DCES) segment in Malaysia, offset by a decrease in Merchant Payment Services (MPS) revenue in Singapore.
• Declining Margins: Despite revenue growth, gross profit margin fell sharply from 70% to 54%, primarily due to a less favorable revenue mix, with higher contributions from lower-margin DCES activities and absence of a one-off settlement that benefited 1H2024 results.
• Losses Widened: Net losses increased 12% YoY to S\$1.4 million, driven by higher administrative expenses, a one-off fine of S\$0.1 million, and increased finance costs from convertible loan interest.
• Net Asset Value: The company’s net asset value per share dropped significantly to 0.11 S\$ cents as at 30 June 2025, from 0.45 S\$ cents as at 31 December 2024.
• Negative Equity: The Group moved into a negative equity position of S\$0.2 million as at 30 June 2025, down from a positive S\$0.8 million at end-2024, although equity attributable to shareholders remains marginally positive.

Exceptional Items and Other Noteworthy Events

• Exceptional Expenses: A fine and penalty of S\$0.1 million was incurred in 1H2025, as announced by the company.
• Convertible Loans and Fundraising: The Group raised capital via a S\$2 million convertible loan (fully drawn in April 2025) and a subsequent S\$2.5 million convertible loan facility (entered into in May 2025). In June 2025, the company placed 35.4 million new shares, raising net proceeds of S\$404,000. These actions have diluted existing shareholders and increased financial leverage.
• Cash Flow: Cash and cash equivalents increased by S\$0.9 million during 1H2025, primarily due to financing activities (share placement and convertible loan), partially offset by operating losses and investment in property, plant and equipment.
• Related-Party Transactions: Both convertible loan facilities were provided by Oxley Capital Management, which is wholly owned by the company’s Non-Executive Non-Independent Chairman and controlling shareholder, Ching Chiat Kwong. These transactions were subject to shareholder approval.

Chairman’s Statement

“On behalf of the Board of Directors of the Company, we, the undersigned, hereby confirm to the best of our knowledge that nothing has come to the attention of the Board of Directors of the Company which may render the unaudited condensed interim consolidated financial statements of the Group for the six months financial period ended 30 June 2025 to be false or misleading in any material aspect.”

Ching Chiat Kwong
Non-Executive Non-Independent Chairman
Chin Mun Chung
Executive Director and Chief Executive Officer

Tone: The Chairman’s statement is neutral and procedural, focusing on the validity of the financial statements rather than providing explicit commentary on performance or outlook.

Macroeconomic and Industry Outlook

• Singapore’s payment industry remains robust, with projected growth from US\$23.5 billion in 2025 to US\$37.3 billion by 2030, at a CAGR of 9.63%.
• The Group will focus on micro, small, and medium enterprises, aiming to capture market share through user-friendly, multi-payment solutions.
• Management changes include the appointment of a new CEO and Chief Risk Officer, signaling a focus on product innovation and regulatory compliance.

Dividend

No dividend has been declared for 1H2025, consistent with prior periods, due to the company’s accumulated losses.

Share Capital and Dilution

• As of 30 June 2025, the company had 311,253,152 issued shares, up from 275,843,137 at end-2024 due to share placement and convertible loan agreements.
• Convertible loan facilities could result in further dilution if converted into shares.

Conclusion and Investor Recommendations

Overall Assessment: The company’s financial condition remains weak. Despite growing revenue, profitability continues to deteriorate amid rising costs and declining margins. The move into negative equity, continued operating losses, and reliance on related-party loans highlight ongoing financial stress. Liquidity is currently supported by recent fundraising, but future dilution risks are significant.

Recommendations

• For Current Shareholders: Consider reviewing your position. The ongoing losses, negative equity, and dilution risks warrant caution. Unless you have high conviction in the company’s turnaround plan and management’s ability to execute, holding may be high-risk. If you remain invested, monitor progress on margin recovery and cost control closely.
• For Prospective Investors: Exercise patience. The risk-reward profile is currently unfavorable given sustained losses, negative equity, and uncertainty over business turnaround. Wait for evidence of sustained profitability and improved balance sheet health before considering a position.

Disclaimer: This analysis is based solely on the company’s published financial report for the period ended 30 June 2025. It does not consider your individual investment profile or objectives. Please conduct your own due diligence or consult a licensed financial advisor before making any investment decisions.

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