AM Group Holdings Limited released its audited results for the year ended 30 June 2024, reporting a sharp swing to a S$30.00 million loss attributable to shareholders (FY2023: loss of S$1.63 million). The deterioration stemmed largely from a S$26.12 million loss on the deconsolidation of the Majestic State International Limited (MSIL) Group amid ongoing legal disputes, coupled with softer top-line performance.
Revenue fell 25.2% year-on-year to S$36.06 million, with the online e-commerce platform operation in Mainland China plunging 48.5% to S$12.39 million and accounting for almost the entire revenue shortfall. Search-engine marketing revenue edged up 5.0% to S$20.01 million, while creative & technology services declined 40.2% to S$2.12 million; social-media marketing was stable at S$1.55 million.
Cost of services decreased 22.4% to S$27.25 million, but gross profit still contracted 32.7% to S$8.81 million as the product mix shifted away from higher-margin segments and direct manpower costs rose. Gross margin slipped to 24.4% (FY2023: 27.2%). Operating profitability was further hit by a S$2.65 million impairment on amounts due from the deconsolidated MSIL Group and by S$0.79 million in other income, mainly government grants, rental and interest income.
The balance sheet weakened following the deconsolidation. Total assets fell to S$17.57 million (FY2023: S$62.25 million), while net assets dropped to S$7.66 million (FY2023: S$38.41 million). Cash and cash equivalents stood at S$11.59 million, versus S$14.74 million a year earlier. Interest-bearing borrowings totalled S$1.59 million, lifting the gearing ratio to 20.8% (FY2023: 6.1%).
The board recommended no final dividend (FY2023: nil).
The auditor issued a disclaimer of opinion, citing insufficient access to MSIL Group records and the resulting inability to verify the appropriateness of the deconsolidation and related balances.
Trading in AM Group’s shares has been suspended since 24 September 2024 and will remain halted pending fulfilment of the Hong Kong Stock Exchange’s resumption conditions.