AM Group (01849) released unaudited results for the six months ended 31 December 2024.

Revenue and profitability • Group revenue declined 13.50% year-on-year to S$13.08 million, reflecting the deconsolidation of the PRC e-commerce subsidiary. • Gross profit inched up 2.03% to S$3.82 million, lifting gross margin to 29.20% (2023: 24.72%). • Net loss narrowed to S$0.04 million, an improvement of 74.36% from the prior-year loss of S$0.16 million. • Loss attributable to owners of the Company widened to S$2.27 million, offset by a S$2.23 million profit attributable to non-controlling interests.

Segment performance • Search-engine marketing (SEM) revenue rose 12.40% to S$11.24 million, with segment gross margin expanding from 17.8% to 25.2%. • Creative & technology services generated S$1.17 million (-1.67%). • Social-media marketing contributed S$0.67 million (-15.30%). • Revenue from the PRC online e-commerce platform was nil following its deconsolidation; the segment contributed S$3.14 million in the prior period.

Cost structure and expenses • Cost of services fell 18.66% to S$9.26 million, aligned with lower revenue and a more profitable SEM mix. • Selling expenses declined 4.64% to S$0.54 million. • General and administrative expenses dropped 14.07% to S$2.99 million, aided by the e-commerce deconsolidation. • Finance costs decreased 45.71% to S$0.04 million. • Income-tax expense rose 16.06% to S$0.38 million.

Balance sheet and liquidity • Cash and cash equivalents stood at S$11.39 million (30 June 2024: S$11.59 million). • Net current assets increased to S$4.69 million from S$4.53 million. • Interest-bearing bank borrowings totalled S$1.54 million, all denominated in Singapore dollars and secured against an investment property valued at S$2.71 million. • Gearing ratio remained stable at 20.0%.

Corporate actions • No interim dividend was declared. • The Board reported loss of control over the PRC subsidiary (MSIL Group) effective 30 June 2024 due to ongoing legal disputes, resulting in its deconsolidation. • The Group resolved to liquidate the BVI-incorporated Majestic Group, appointing Kroll (HK) Limited as liquidator on 9 March 2026.

Outlook Management highlighted continued momentum in SEM services amid evolving digital-advertising trends in Singapore and Malaysia, while acknowledging macroeconomic headwinds and the impact of restructuring in the PRC operations. The company’s shares remain suspended pending fulfilment of resumption guidance from the Hong Kong Stock Exchange.