MOG Digitech (01942) reported 2025 revenue of RMB 839.37 million, down 33.06% from RMB 1.25 billion in 2024, reflecting weaker demand in its core digital payment solutions unit. Despite the top-line contraction, gross profit rose 5.04% to RMB 165.79 million, lifting gross margin to 19.8% from 12.6% a year earlier on a more favourable sales mix.
Net loss attributable to shareholders narrowed 37.86% to RMB 89.04 million (2024: RMB 143.22 million). Basic loss per share improved to RMB 0.07 from RMB 0.18. Reported loss before tax shrank to RMB 84.22 million versus RMB 150.75 million, aided by the absence of the prior-year goodwill and intangible asset impairments (2024: RMB 92.79 million combined). Income tax expense of RMB 6.16 million compared with a credit of RMB 8.26 million in 2024.
Segment performance • Digital payment solutions: Revenue fell 48.22% year on year to RMB 522.28 million, pressured by intensified competition in China; share of group sales slid to 62% from 80%. • Optical product retail, franchise & licence management: Revenue increased 9.86% to RMB 191.39 million, benefitting from asset-light franchising agreements and marketing activities in Malaysia. • E-commerce: Sales jumped 82.40% to RMB 108.68 million, supported by growth in welfare-card related transactions. • Financing services & money lending: Revenue rose 48.01% to RMB 17.03 million, following additional capital injection into the lending platform.
Cost structure and expenses Selling and distribution expenses eased 3.65% to RMB 103.45 million, while administrative expenses climbed 50.66% to RMB 109.16 million, reflecting higher consultancy, technology development and staffing costs. Provision for impairment losses on trade and other receivables increased to RMB 22.08 million (2024: RMB 6.68 million). Impairment on investment in an associate was RMB 26.21 million, lower than the RMB 41.83 million recorded previously.
Cash flow, balance sheet and capital position Cash and bank balances were RMB 98.12 million, supplemented by RMB 54.02 million in fixed deposits. Net assets grew 29.55% to RMB 808.65 million, driven by equity raisings. Interest-bearing borrowings stood at RMB 25.00 million; the gearing ratio declined to 0.05 from 0.07. The current ratio improved to 5.1 (2024: 3.8).
Capital activities • February 2024 & October 2024: Two placements raised a combined HK$229 million (approx. RMB 208 million), fully deployed by end-2025, mainly into insurance and fintech initiatives and working capital. • February 2025: Subscription under specific mandate raised HK$209.88 million (approx. RMB 196.88 million), channelled into financing and money-lending operations and general corporate purposes. • July 2025: Second placement raised HK$107.45 million (approx. RMB 99.31 million); 95.8% utilised by year-end, chiefly for further fintech investment. • August–October 2025: Disposal of 13 Malaysian subsidiaries for RM12.10 million (approx. RMB 37.40 million), generating an RMB 8.45 million disposal gain. • August 2025: Invested US$6.00 million (approx. RMB 42.01 million) for a 5.09% stake in stablecoin-based payment platform KUN, recognised as FVOCI.
Dividends The Board proposed no final dividend for 2025 (2024: nil).
Outlook Management plans to deepen its insurance and financial-technology footprint, broaden product offerings in China’s digital-payment market, pursue selective M&A opportunities, enhance proprietary optical brands in Malaysia, and upgrade IT infrastructure and lens-production capabilities through to 2027.
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