OIO Holdings Limited: FY2025 Financial Results – Key Insights and Shareholder Considerations

Executive Overview

OIO Holdings Limited (SGX: OIO), a Singapore-based blockchain technology and digital assets company, has released its unaudited condensed interim financial statements for the fourth quarter and full year ended 31 December 2025. This report is published under the SGX Catalist Rules due to a material uncertainty regarding the Group’s going concern status, as highlighted by its auditors in the previous financial year. Investors and shareholders should pay close attention to these developments, as they are likely to have a significant impact on the Group’s share price and future outlook.

Key Financial Highlights

• Revenue Decline: FY2025 revenue dropped 45.0% year-on-year to S\$325,615 from S\$592,046. The fourth quarter revenue fell 66.6% to S\$52,631, reflecting weak performance in digital wallet and staking services and the absence of agency service fee income.
• Loss Narrowed: Net loss for FY2025 was S\$1,944,468, a 54.9% improvement from FY2024’s loss of S\$4,309,661. The fourth quarter loss stood at S\$716,708, down from S\$2,906,281 in the prior year.
• Gross Profit Margin Reduction: Gross profit margin dropped to 45.0% in FY2025 from 66.3% in FY2024, with gross profit falling 62.7% to S\$146,374.
• Negative Equity: The Group’s total equity deficit increased from S\$5.85 million to S\$7.66 million, raising concerns about capital adequacy and solvency.
• Working Capital: The Group recorded negative working capital of S\$1.3 million, up from S\$0.9 million, reflecting increased short-term liabilities.
• Cash Position: Cash and bank balances stood at S\$11,746, a marginal decrease compared to S\$14,324 at the end of FY2024.
• Crypto Asset Holdings: Intangible assets, mainly crypto assets, decreased sharply to S\$417,636 from S\$1,431,265, primarily due to disposal and impairment.

Material Developments and Price-Sensitive Information

1. Going Concern Risks and Auditor Commentary

The Company’s auditors previously flagged a material uncertainty relating to going concern. Although management describes mitigating actions—including shareholder loans, extension of repayment terms, and ongoing financial support from the controlling shareholder—these remain critical risks. If not resolved, they could impact the Group’s ability to operate continuously, potentially affecting share value.

2. Shareholder Loans and Financial Support

• On 31 December 2025, the controlling shareholder extended the repayment date of an interest-free loan of S\$1.1 million to 1 July 2027, and provided an additional S\$900,000 loan with similar terms. Furthermore, a subsequent S\$300,000 loan was received post-year-end to pay down liabilities.
• The controlling shareholder has committed to providing ongoing financial support for at least 15 months following year-end to ensure the Group can meet its obligations.
• Should this support cease or shareholders withdraw their backing, OIO’s ability to continue may be jeopardized, making this highly price-sensitive and relevant for investors.

3. Negative Equity and Working Capital

• The Group’s negative equity and working capital position are critical red flags. Despite management’s assertion that crypto assets can be converted to fiat currencies, there is no assurance that these will be sufficient to cover liabilities as they fall due.

4. Impairments and Asset Disposals

• Significant impairments were recorded in FY2024—including full impairment of goodwill (S\$1.8 million) and software development (S\$1.0 million). In FY2025, further impairment of crypto assets (S\$344,000) and disposals (S\$822,000) contributed to asset declines.
• The ongoing impairment and disposal of assets may impact future earnings and balance sheet health.

5. Convertible Notes Conversion

• Convertible notes issued in 2022 (US\$1.49 million) were converted into 30.1 million new ordinary shares in December 2024, eliminating related interest costs but causing dilution for existing shareholders.
• Share capital increased to 219,048,924 shares, with no outstanding convertibles, treasury shares, or subsidiary holdings as at year-end.

6. Absence of Dividend

• No dividend was declared or recommended for FY2025, citing continued losses and the need to conserve cash for business operations.
• This may disappoint income-focused investors and could pressure share price if expectations were for a payout.

Operational and Strategic Review

• Operational Focus: The Group operates two main segments: blockchain agency and consulting services, and staking services. The latter is conducted via Moonstake Pte Ltd and Moonstake Limited; agency services are provided by OIO Singapore Private Limited.
• Revenue Breakdown: All revenue in FY2025 was derived from digital wallets and staking services, with no agency service fee income recorded.
• Cost Discipline: Administrative costs decreased by S\$900,000 due to lower professional fees, no amortisation of impaired software, and cost-cutting measures. Other operating expenses decreased by S\$2.3 million driven by absence of impairment losses recorded in the previous year.
• Cash Flow: Net cash used in operating activities was S\$1.1 million, offset by S\$0.4 million from conversion of crypto assets and S\$882,000 inflow from shareholder loans.
• Future Outlook: The Group plans to pursue revenue-generating initiatives, strategic alliances, and fund-raising alternatives, but faces uncertainty until these bear fruit.

Industry Trends and Outlook

OIO Holdings faces a rapidly evolving digital assets and blockchain sector, with increasing regulatory clarity and institutional adoption. However, the Group’s financial challenges, negative equity, and dependence on shareholder support pose substantial risks. Ongoing efforts to raise funds and improve revenue may be critical to its survival and future growth prospects.

Shareholder and Investor Advisory

• Going Concern Warning: The Company’s ability to continue as a going concern is dependent on ongoing shareholder support and conversion of crypto assets. Any change in these circumstances could materially affect share value.
• Equity Dilution: Convertible notes conversion has diluted existing shareholders; future fund-raising could lead to further dilution.
• Impairments and Asset Risks: Ongoing impairments and asset disposals highlight risks to the Group’s asset base and future profitability.
• No Dividend: Continued losses and absence of dividend may dampen investor sentiment.
• Potential for Share Price Volatility: The combination of financial uncertainty, negative working capital and equity, and dependence on shareholder loans make OIO Holdings highly sensitive to news and developments. Investors should monitor announcements closely.

Disclaimer

This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence and consult with professional advisors before making any investment decisions. The information herein is based on unaudited financial statements as at 31 December 2025 and may be subject to further revision or audit modifications.

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