HONG KONG, June 25, 2025 (GLOBE NEWSWIRE) -- Santech Holdings Ltd. ("Santech" or the "Company") $(STEC)$ today announced its unaudited financial results for the first half of fiscal year 2025 ended December 31, 2024.
Santech is a Cayman Islands holding company operating through its subsidiaries in Hong Kong and United States, primarily focusing on exploring opportunities in consumer technology, consumer healthcare and enterprise technology.
First Half of Fiscal Year 2025 Highlights
Continuing Operations
Net revenues
Total revenues from continuing operations in the six months ended December 31, 2024 decreased to nil from US$17.4 million in the same period of 2023, primarily due to Company having completely exited from overseas wealth management and asset management businesses during the reporting period. All remaining revenues from our prior overseas wealth management and asset management businesses during the reporting period have been reclassified under discontinued operations.
Operating Costs and Expenses
Cost of compensation and benefits from continuing operations in the six months ended December 31, 2024 decreased to nil from US$13.2 million in the same period of 2023.
Sales and marketing expenses from continuing operations decreased to nil from US$1.5 million in the same period of 2023.
All direct costs of revenue from overseas wealth management and asset management during the reporting period have been reclassified under discontinued operations.
General and administrative expenses from continuing operations in the six months ended December 31, 2024 decreased by 4.3% to US$2.4 million from US$2.5 million in the same period of 2023, primarily due to ongoing cost cutting and restructuring.
Other expenses, net from continuing operations in the six months ended December 31, 2024 were US$0.2 million, primarily due to the losses on early termination of operating lease.
Discontinued Operations
Results of discontinued operations are as follows:
Six Months Ended December Two Months Ended August
31, 2023 31, 2024
-------------------------- --------------------------
(US$'000) (US$'000)
Discontinued
operations
--------------------
Net revenues
Wealth management 2,442 11
Asset management 1,788 1,170
------------------- ----- ------------------- -----
Total net revenues 4,230 1,181
------------------- ----- ------------------- -----
Operating cost and
expenses
Compensation and
benefits 1,358 602
Sales and
marketing
expenses 315 -
General and
administrative
expenses 656 266
Asset impairment
loss 2,158 -
Total operating cost
and expenses 4,487 868
------------------- ----- ------------------- -----
(Loss)/income from
operations (257) 313
Other expense, net (4) (1)
------------------- ---- ------------------- ----
Income/(loss) before
income tax expense (261) 312
Income tax
(expense)/credit (145) (29)
------------------- ---- ------------------- ----
Net income/(loss)
from discontinued
operations (406) 283
Gain on disposal of
subsidiaries from
discontinued
operations, net - 138
(Loss)/income for
the year from
discontinued
operations, net of
income taxes (406) 421
=================== ==== =================== =====
In August 2024, the Company completely exited from its historical businesses in overseas wealth management and asset management and disposed of certain subsidiaries in Hong Kong, namely, Haiyin Insurance (Hong Kong) Co., Limited and Hywin International Insurance Broker Limited for nil consideration, and Haiyin International Asset Management Limited and Hywin Asset Management (Hong Kong) Limited for US$0.6 million to a third party. The disposal was completed on August 31, 2024. After the disposals, the Company no longer holds any financial services licenses or houses any personnel licensed to provide financial services in Hong Kong.
Net revenues
Total revenues from discontinued operations in the two months ended August 31, 2024 decreased by 72.1% to US$1.2 million from US$4.2 million in the six months ended December 31, 2023, primarily due to cessation of operations in wealth management and asset management.
Operating Costs and Expenses
Cost of compensation and benefits from discontinued operations in the two months ended August 31, 2024 decreased by 55.7% to US$0.6 million from US$1.4 million, in line with the decreases in transaction value of wealth management and asset management businesses.
Sales and marketing expenses decreased to nil from US$0.3 million in the six months ended December 31, 2023, due to discontinuation of sales and marketing activities.
General and administrative expenses from discontinued operations in the two months ended August 31, 2024 decreased by 59.5% to US$0.3 million from US$0.7 million in the six months ended December 31, 2023.
Asset impairment loss from discontinued operations in the six months ended December 31, 2023 represented impairment losses due to impairment of assets held in the PRC, and impairment of intangible assets including software and licenses due to disruption to our brand and our licensed financial services operations in Hong Kong.
Loss from disposal of subsidiaries under discontinued operations
Wealth management Asset management
business business Total
--------------------- --------------------- -----------
(US$'000) (US$'000) (US$'000)
--------------------- --------------------- -----------
Considerations
received - 641 641
Less: Net
assets
disposed of (134) (369) (503)
(Loss)/gain
from disposal
of
subsidiaries (134) 272 138
============== ==== ============== ===== ========
About Santech Holdings Limited
Santech Holdings Limited (NASDAQ: STEC) is a technology-focused company. The Company historically served a large number of high net-worth clients in China and Hong Kong in wealth management, asset management and health management, and accumulated a large customer base. The Company has since exited or disposed of its historical businesses in financial services, and is actively exploring innovative new opportunities in technology verticals, including and not limited to consumer technologies and enterprise technologies. For more information, please visit https://ir.santechholdings.com.
Safe Harbor Statement
This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "anticipate," "estimate," "forecast," "plan," "project," "potential," "continue," "ongoing," "expect," "aim," "believe," "intend," "may," "should," "will," "is/are likely to," "could" and similar statements. Statements that are not historical facts, including statements about the Company's beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Investor Contact:
Santech Holdings Limited
Email: ir@santechholdings.com
SANTECH HOLDINGS LTD.
CONSOLIDATED BALANCE SHEETS
(In thousands, except for number of shares and per
share data)
June 30, December 31,
2024 2024
--------- --------------
(US$'000) (US$'000)
Assets
Current assets:
Cash and cash equivalents 15,184 11,233
Deposits, prepayments and other current
assets 320 72
Total current assets 15,504 11,305
-------- -----------
Property and equipment, net 3 4
Right-of-use asset 1,235 -
-------- -----------
Total non-current assets 1,238 4
-------- -----------
Total Assets 16,742 11,309
======== ===========
Liabilities and Shareholders' equity
Current liabilities:
Commission payable 859 -
Income tax payable 91 -
Due to related parties 11,488 11,062
Other payables and accrued liabilities 433 7
Lease liability 1,059 -
-------- -----------
Total current liabilities 13,930 11,069
-------- -----------
Lease liability 250 -
Total non-current liabilities 250 -
-------- -----------
Total Liabilities 14,180 11,069
-------- -----------
Shareholders' Equity:
Ordinary shares (US$0.0001 par value;
authorized 500,000,000 shares; issued and
outstanding 56,000,000* shares (28,000,000
ADS) as of June 30, 2024, and December 31,
2024, respectively) 6 6
Additional paid-in capital 33,256 33,256
Accumulated deficit (30,700) (33,022)
-------- -----------
Total shareholders' equity 2,562 240
-------- -----------
Total Liabilities and shareholders' equity 16,742 11,309
======== ===========
SANTECH HOLDINGS LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
(In thousands, except for share and per share data,
or otherwise stated)
Six Months Ended December 31,
------------------------------
2023 2024
------------------------------ -------------
(US$'000) (US$'000)
Continuing operations
---------------------------
Net revenues
Insurance referral 17,351 -
Total net revenues 17,351 -
-------------------------- ----------
Operating cost and expenses
Compensation and benefits 13,210 -
Share-based compensation
expense 102 -
Sales and marketing
expenses 1,512 -
General and
administrative expenses 2,469 2,364
Total operating cost and
expenses 17,293 2,364
-------------------------- ----------
Income/(loss) from
operations 58 (2,364)
Other income/(expenses)
Interest expense, net (63) (17)
Other income/(expense), net 72 (245)
--------------------------
Total other
income/(expense), net 9 (262)
-------------------------- ----------
Income/(loss) before income
tax expense 67 (2,626)
Income tax
(expense)/credit - (117)
-------------------------- ----------
Net income/(loss) from
continuing operations 67 (2,743)
========================== ==========
Discontinued operations
---------------------------
(Loss)/income for the year
from discontinued
operations, net of income
taxes (406) 421
Net loss and comprehensive
loss for the period (339) (2,322)
========================== ==========
(Loss)/income per share
From continuing and
discontinued operations
Ordinary share - Basic (0.01) (0.04)
========================== ==========
Ordinary share - Diluted (0.01) (0.04)
========================== ==========
ADS - Basic (0.01) (0.08)
========================== ==========
ADS - Diluted (0.01) (0.08)
========================== ==========
From continuing operations
Ordinary share - Basic 0.00 (0.05)
Ordinary share - Diluted 0.00 (0.05)
ADS - Basic 0.00 (0.10)
ADS - Diluted 0.00 (0.10)
From continuing and
discontinued operations
Ordinary share - Basic (0.01) 0.01
Ordinary share - Diluted (0.01) 0.01
ADS - Basic (0.01) 0.02
ADS - Diluted (0.01) 0.02
Weighted average number
outstanding:
Ordinary share - Basic 56,000,000 56,000,000
========================== ==========
Ordinary share - Diluted 56,000,000 56,000,000
========================== ==========
ADS - Basic 28,000,000 28,000,000
========================== ==========
ADS - Diluted 28,000,000 28,000,000
========================== ==========
SANTECH HOLDINGS LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except for share and per share data,
or otherwise stated)
Additional Total
paid-in Accumulated Shareholders'
Ordinary shares capital deficit equity
--------------------- ----------
Number of
ordinary
shares Amount
(US$'000) (US$'000) (US$'000) (US$'000)
Balance
as of
June 30,
2024 56,000,000 6 33,256 (30,700) 2,562
========== ========= ========== ========= ======== =====
Net loss
for the
period - - - (2,322) (2,322)
---------- --------- ---------- --------- -------- ----
Balance
as of
December
31,
2024 56,000,000 6 33,256 (33,022) 240
========== ========= ========== ========= ======== =====
(END) Dow Jones Newswires
June 25, 2025 06:00 ET (10:00 GMT)
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