AM Group H1 FY2026: Revenue Falls 7.1%, Loss Widens to S$1.41 Million on Weaker SEM Demand and Higher Overheads

Bulletin Express
Apr 30

AM Group Holdings Limited (AM Group, 01849.HK) reported an unaudited net loss of S$1.41 million for the six months ended 31 December 2025, versus a S$0.04 million loss in the prior-year period. The decline was driven by lower search-engine marketing (SEM) revenue and a sharp rise in professional fees booked under general and administrative expenses.

Revenue and Gross Profit • Group revenue declined 7.1% year-on-year to S$12.16 million. • SEM, which contributed 85.6% of total turnover, fell 7.4% to S$10.41 million. • Creative & technology services were broadly flat at S$1.16 million, while social-media marketing slid 12.4% to S$0.59 million. • Gross profit contracted 12.4% to S$3.34 million, cutting the gross margin to 27.5% (H1 FY2025: 29.2%).

Cost Dynamics • Cost of services decreased 4.9% to S$8.81 million, broadly tracking the revenue decline. • General and administrative expenses jumped 37.6% to S$4.11 million, mainly due to higher professional fees related to compliance matters. • Selling expenses were trimmed 2.6% to S$0.52 million.

Cash Flow and Balance Sheet • Operating activities used S$1.64 million in cash (H1 FY2025: S$2.25 million outflow). • Cash and bank balances stood at S$7.09 million at 31 December 2025, down from S$9.03 million at end-June 2025. • Net current assets fell to S$0.55 million from S$2.14 million over the same period. • Interest-bearing bank borrowings totalled S$1.42 million, lifting the gearing ratio to 39% (30 June 2025: 30%). • Net asset value declined to S$3.67 million, versus S$4.96 million at the prior fiscal year-end.

Dividend The board did not declare an interim dividend (H1 FY2025: nil).

Legal and Corporate Updates • The group has lost control over its MSIL subsidiary following ongoing legal disputes; the entity was deconsolidated effective 30 June 2024. • Majestic Group, a BVI subsidiary, was placed into liquidation on 9 March 2026, with Kroll (HK) Limited appointed as liquidator.

Trading in AM Group shares remains suspended since 24 September 2024 pending fulfilment of resumption conditions set by the Hong Kong Stock Exchange.

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