MOG Digitech issues supplemental 2024 report, books RMB134.63 million impairments and discloses HK$80 million Wealth Guardian deposits

MOG Digitech Holdings Limited released a supplemental announcement to its 2024 Annual Report, providing additional data on option capacity, sizeable impairment charges and a delayed-disclosure fund placement.

Key updates

1. Share option headroom As at 31 March 2025, 2.16 million share options—equal to 0.19% of issued share capital—remained available for grant under the company’s option scheme.

2. RMB134.63 million impairment recognised in 2024 • Intangible assets: RMB55.24 million written off, entirely tied to a credit facility contract provided by Positive Oasis vendor Mr Tang Jun. • Goodwill: RMB37.56 million impairment, comprising RMB27.96 million from Positive Oasis and RMB9.60 million from Create Tune Development. • Investment in associate Beijing Yuntu: RMB41.83 million impairment after fair-value assessment set the investment’s recoverable amount at RMB73.00 million.

3. Credit facility termination drives write-down Mr Tang declined to extend the RMB400 million revolving credit line beyond 31 December 2024, eliminating expected economic benefits and triggering full impairment of the related intangible asset. Lower-than-planned demand for trade-financing and hardware sales further weighed on Positive Oasis performance; segment revenue fell from RMB36.50 million in 2023 to RMB11.50 million in 2024, with profit shrinking from RMB32.30 million to RMB4.70 million.

4. Receivable assignment to vendor On 31 December 2024, Shenzhen PO transferred RMB40.21 million of government-related receivables to Mr Tang at par. Consideration plus 2% annual interest is due by 31 December 2026, secured against the assigned receivables. An initial RMB10.00 million was recovered post-assignment, reducing the outstanding transfer price.

5. HK$80 million deposit with Wealth Guardian Between 31 October and 6 November 2024, wholly-owned subsidiary MOG (HK) placed HK$80 million (≈RMB75.20 million) into a designated account at New Zealand-registered Wealth Guardian Investment Limited to earn tiered interest of up to 4% p.a. All funds were withdrawn on 14 and 17 March 2025, generating HK$0.53 million interest.

6. Listing Rules breach and remediation The deposits constituted an “advance to an entity,” pushing the assets ratio above 8% and making the placement a discloseable transaction under Chapters 13 and 14 of the Hong Kong Listing Rules. The company attributed the late disclosure to an “inadvertent misinterpretation” of the rules. Planned remedial actions include: • A full review of financial-reporting and internal-control procedures by Q2 2026. • Targeted training for directors, senior management and relevant staff on Chapters 13, 14 and 14A. • Enhanced transaction-monitoring thresholds and documentation. • Ongoing consultation with external advisers before releasing significant funds or entering potential notifiable transactions.

Except for the supplementary information above, all other disclosures in the 2024 Annual Report remain unchanged.