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Asian Micro Holdings Limited: 2025 Interim Financial Statements · Investor Exchange

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  Time for another Investor Exchange podcast. Here are your hosts, Matt and Sally.
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  Welcome, curious minds, to the Deep Dive. Today, we're diving straight into
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  the freshly released financials of Asian Microholdings.
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  No long introductions, just getting right to the story behind the numbers.
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  Our mission here is simple.
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  Give you a clear, concise picture of Asian Microholdings Limited's financial health.
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  This is for their full year ended June 30th, 2025.
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  We'll untack the good, the challenging, the why, and, you know,
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  look at what's next. You'll walk away truly well-informed.
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  Precisely. And it's not just about reciting figures.
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  It's connecting them to the actual business operations. We want you to grasp
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  the broader implications, where the growth is, where the challenges are,
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  and what management's signaling for the next, say, 12 months.
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  Okay, let's unpack this then. Before we hit the numbers hard,
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  who exactly is Agent Micro Holdings Limited?
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  What kind of company are we looking at? Right. So it's a Singapore-incorporated
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  company listed on the Catalyst Exchange.
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  Ah, Catalyst, so maybe a growth-oriented company. Often, yes.
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  It's Singapore's sponsor-supervised platform. Sometimes less stringent profit
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  rules than the main board, which can tell you something about their stage or risk appetite.
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  Its main activity is investment holding, but the real action is in its subsidiaries.
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  Diverse interests there. This is key to reading their financials.
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  They've got three main reportable segments.
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  First, manufacturing and trading. This is focused on clean room grade plastic packaging.
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  Think hard disk drives, semiconductor customers. It's specialized stuff, high quality demands.
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  Second, there's the natural gas vehicle or NGV related business.
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  There's a trading NGV products, CNG refilling services, equipment maintenance,
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  mostly in Singapore, as we'll see.
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  And finally, a property business, leasing commercial properties and also property development.
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  Wow, that is quite a mix. High-tech packaging, NGV infrastructure, and real estate.
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  Okay, with that diversity in mind, let's dive into the FY 2025 financials.
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  What's the headline from the income statement?
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  Top line. The headline is definitely positive on the top line.
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  Group revenue saw a significant increase. How significant?
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  It jumped from $4.75 million in FY 2024 to $6.56 million for FY 2025.
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  Okay, for $4.75 to $6.56. That's what, nearly a 38% rise? Pretty substantial.
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  Exactly, almost 38% year on year. Impressive. Where did that growth primarily
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  come from? Was it spread out or did one area shine?
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  It was a pretty broad base, which is encouraging, but there's definitely a standout performer.
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  We saw higher revenue from the NGV business that went from about $6,4.1 million
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  to S4.8 million dollars.
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  Manufacturing and trading also ticked up from S634,000 to $745,000.
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  An honest increase there. Yeah, but the real story, the segment that really
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  moved the needle on revenue, that was property.
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  Ah, okay. How much did that move? It exploded. From just $15,000 in FY 2024, to S$999,000 in FY2025.
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  $15,000 to nearly a million. That's incredible. Almost a hundredfold jump. It really is something.
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  So that property segment is clearly the growth engine right now.
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  Did this massive jump translate into better overall profitability for the group? It did, yeah.
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  The group's gross profit margin improved, went from 21% in FY2024 up to 26% in FY2025.
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  21 to 26%. And yes, that improvement was largely driven by the better margins
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  coming from that property business, which obviously had that huge revenue surge. Right.
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  Which raises a key quiffen for you listening.
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  How sustainable is this? Is
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  this margin bump sustainable given that sudden massive growth in property?
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  Good question. Is it a one-off project effect or a new normal?
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  Exactly. Property can be lumpy, a big project finishes, revenue spikes.
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  You need to ask if there's a pipeline to keep this level up.
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  It could signal a strategic shift towards property, but that also brings its
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  own risks, capital needs, market cycles.
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  Definitely something to watch. So higher revenue, better margins.
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  What about the bottom line? Did they actually turn a profit?
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  Despite those improvements, no.
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  The group still reported a loss for the year.
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  Ah, okay. Still in the red. Still in the red, but, and this is important,
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  the loss significantly reduced.
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  It went from Z.703 million dollars in FY 2024 down to 723 million dollars in FY 2025.
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  Okay, so from losing about 730k down to losing 200k, that's a big improvement directionally.
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  It is. And that reduction is directly linked to the higher revenue and improved
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  gross profit, especially from NGV and, of course, property.
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  So the trend is positive, definitely narrowing that gap. Good trend, but still a loss.
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  Now, he mentioned earlier, or rather the report mentioned something about current
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  liabilities exceeding current assets, a going concern issue.
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  What does that mean for you, the listener, and how serious is it?
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  Right. That's a critical point.
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  As of June 30, 2025, their current liabilities were indeed higher than current
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  assets by F-594,000 dollars.
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  That often signals liquidity risk.
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  Basically, can they cover their short-term debts? But the directors explicitly
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  stated they believe preparing the financials on a going concern basis,
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  meaning they expect the company to continue operating, is appropriate.
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  Why? What are they basing that on? They're relying on two key things.
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  First, their belief that the group can generate enough cash flow to keep a positive cash balance.
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  And second, crucially, two existing major shareholders, one is also a director,
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  have agreed to provide ongoing financial support if needed.
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  Oh, OK. So shareholder backing is the safety net there. Exactly.
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  It addresses the immediate technical issue.
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  So while there's that flag, that going concern note, which is important to see,
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  they have secured backing.
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  That definitely helps understand their stability, at least in the near term.
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  It's a risk, but mitigated. It is mitigated, yes.
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  But relying on shareholders like that, while common for smaller or growing firms, Mm-hmm.
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  It does suggest a certain vulnerability, doesn't it? Yeah, it does raise questions
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  about long-term independent viability.
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  What would they need to achieve to sort of outgrow that reliance?
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  That's the key question, really.
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  Long-term, you want to see consistent positive cash flow from operations covering
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  those short-term debts. No external top-ups needed. Right.
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  Milestones would be sustained profitability, a healthy current ratio of assets
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  comfortably above liabilities, and funding growth from earnings,
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  not constant injections. This support is like financial life support.
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  Necessary now, perhaps, but ideally not forever.
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  Okay, so beyond the P&L, what were the significant movements on the balance
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  sheet and cash flow statement, especially given these liquidity points?
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  Well, on the balance sheet, non-current assets stayed pretty stable, around $3.39 million.
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  But current assets grew quite a bit from S3.24 million dollars to S4.49 million dollars.
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  And that increase was mainly? Primarily driven by development properties.
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  So you see that property strategy reflected right there on the asset side. Makes sense.
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  And liabilities. Current liabilities also rose from S$2.25 million up to $3.63 million.
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  Okay. Why the jump there? It was a mix. Trade payables, other payables,
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  accrued expenses, contract liability, and notably a loan from a director.
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  Ah, so internal financing showing up on the liability side too?
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  What about long-term debt? Non-current liabilities actually decreased slightly by us $40,000.
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  Mainly repayment of lease liability. So short-term obligations grew,
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  including that internal loan, while some long-term debt was paid down. Interesting dynamic.
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  Assets growing, but short-term liabilities growing faster, partly funded internally.
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  How did their actual cash position end up? Their cash and cash equivalents increased.
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  They finished the year with $2.60 million, up by $2.21 million from $4.4 million the year before.
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  Okay, so cash went up. Where did that cash come from? Primarily from financing activities.
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  Net cash generated from financing. Right, not operations. No,
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  that's the important part.
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  This increase was partially offset because they actually used net cash in both
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  operating activities and investing activities.
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  So operations and investments were still draining cash overall. Correct.
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  Which suggests that while they managed to boost the cash balance,
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  it wasn't the core business generating it.
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  It was financing likely those loans or other arrangements.
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  Which again raises that question about sustainability, right?
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  Relying on financing for liquidity isn't ideal long term.
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  Exactly. You want the day-to-day business, the operations, to be generating the cash eventually.
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  Okay. Let's get even more granular then. How did each specific business segment
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  and geographic market perform?
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  Let's dig into those contributions. Right. This is where the pieces really come together.
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  Manufacturing and trading saw revenue increase, as we said. Still posted an
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  operating loss, but it was significantly reduced. Oh, much reduced.
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  From S-536,000 loss down to S-279,000 loss.
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  So moving in the right direction. Okay. Better, but still negative.
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  What about NGV? Similar story for the NGV business.
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  Increased revenue and its operating loss also shrank. from S-553,000 down to S-313,000.
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  And remember, that's almost all Singapore-based. Okay, so both core legacy segments
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  improving their operating results, narrowing losses, but not yet profitable.
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  Correct, which brings us back to... Property, the standout. Tell us more about
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  that segment's profitability.
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  Right. The property business, as we saw, revenue soared, and its profitability flipped dramatically.
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  It went from a tiny $8,000 operating profit in FY 2024 to...
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  To a really robust S-416,000 profit in FY 2025.
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  Wow. So that's 416K profit basically offset a good chunk of the losses from
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  the other two segments. Pretty much, yes.
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  And this growth, this profit is largely attributed to Malaysia.
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  Malaysia specifically.
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  Yes. Property revenue in Malaysia jumped, just looking at the last six months,
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  from $7,000 to $504,000.
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  And for the full year, as we noted, $15,000 to $999,000.
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  That Malaysian property venture is clearly the current star performer.
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  Okay, so Malaysia property is driving the positive shift overall.
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  Any other interesting geographical notes or revenue patterns?
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  Well, Singapore is still the largest market overall, mainly because of that NGV business.
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  But we also see manufacturing and trading contributions from Thailand and the Philippines. Right.
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  And the financials also break down revenue recognized at a point in time versus overtime.
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  Ah, like product sales versus services or leases? Exactly.
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  And what's interesting is that over time, revenue increased significantly,
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  especially in NGV and property. Why is that significant?
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  Because over time, revenue often means more stable, recurring income streams.
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  Think long-term leases, service contracts.
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  It can suggest higher quality, more predictable earnings compared to one-off sales.
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  So it seems they're building more of that stable foundation in those segments.
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  That's a really valuable insight.
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  A shift towards recurring revenue is generally seen positively.
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  Okay, what other nuggets from the financials should you, the listener,
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  be aware of? First, dividends.
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  No dividend was declared for this period or the prior year. Okay, and they gave a reason.
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  Yes, explicitly stated it was to conserve cash, ensure sufficient funds for
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  daily business and operations.
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  Given the going concern discussion, that seems very prudent,
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  necessary, really. Absolutely, makes complete sense.
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  Now, we mentioned that loan from a director earlier. Any other significant related
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  party transactions? These can be quite revealing.
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  Definitely interesting here. Beyond that director loan, the group reported rental
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  expenses as $63,000 paid to a company called ACI Technology.
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  PTLTV. And the connection is? ACI Technology is owned by two major shareholders
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  of Asian microholdings, one of whom is also a director.
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  Okay, so paying rent to a related company. Correct.
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  And furthermore, there was another loan agreement signed October 22, 2024.
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  It's for an interest-free loan of up to RM5 million. Interest-free?
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  From whom? From the controlling shareholder, who is also the chief executive
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  officer and group managing director.
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  Wow, okay. As of June 30, 2025, RM1 million of that facility had been drawn down.
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  So more significant financial support from key insiders, renting from them, borrowing from them.
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  It really highlights how intertwined the company's finances are with its key stakeholders.
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  It shows immense commitment, maybe belief from those insiders,
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  but it also underscores that reliance on internal financial support we keep coming back to.
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  A real testament to their belief, but also a stark reminder of the underlying financial need.
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  What about capital expenditure? Were they investing heavily in new assets?
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  No, definitely playing it conservatively there.
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  CapEx for FY2025 was tiny, only $1,300.
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  $1,300, that's very low. Extremely low, down from $8,300 the year before.
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  It fits perfectly with that cash conservation strategy. Yeah, any other investments?
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  They did increase their shareholding in one subsidiary, Leverage Income SDN, BHT.
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  Took it from 49% up to, well, the report says 122,500 shares,
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  indicating a move to consolidate control within the existing structure rather
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  than new external spending. Okay, very focused internally.
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  So we've been through the performance, the balance sheet, the cash flow,
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  the segments. What does management say about the future? What's the outlook?
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  Their outlook statement is pretty cautious.
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  They expect the operating environment over the next 12 months to,
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  quote, remain challenging due to global economic uncertainties.
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  Okay, no sugarcoating there. Challenging and uncertain. No.
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  It's a realistic take, acknowledging the external headwinds.
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  They're not pretending it's going to be easy sailing.
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  So given that cautious outlook in their financial situation,
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  how are they planning to navigate these challenges?
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  What's the strategy? Despite the tough conditions, they're focusing on four key areas.
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  Enhancing operational efficiency. Makes sense. Exercising strict cost control.
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  Saw that in the low CapEx. Conserving cash again.
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  Dividends. CapEx fit here. Right. And finally, ensuring the long-term sustainability
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  of its existing businesses.
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  Efficiency, cost control, cash conservation, sustainability.
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  Sounds like hunkering down and strengthening the core. Exactly.
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  It's about resilience, prudent management, shoring up internally.
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  Not aggressive expansion right now. It's about surviving the storm and maybe emerging stronger.
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  Seems like a very necessary and prudent approach, given everything we've discussed.
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  Okay, what a deep dive that was. So, recapping.
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  Asian microholdings made real strides in revenue and gross profit,
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  largely thanks to that booming property business in Malaysia.
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  They slashed their annual loss significantly.
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  Definitely a positive trend. Indeed. But we have to remember the context,
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  the continued overall loss, that going concern note, the heavy reliance on shareholder
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  loans and support, and the cash flow being driven by financing, not operations.
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  So, yes, performance improved, but fundamental financial health questions remain.
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  Their conservative approach, low CapEx, no dividends, focus on costs that clearly
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  reflects management's cautious view on the challenging global outlook.
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  So what's the takeaway for you, our listener?
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  Asian Micro Holdings is this really interesting case study, a diversified company
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  juggling exciting growth, like in property, with some serious financial constraints.
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  Their ability to tap into shareholder relationships for that crucial financial
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  backing, while focusing hard on operational basics efficiency,
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  See, costs, that's going to be absolutely key for them navigating this tricky market. Absolutely.
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  And maybe a final thought for you to Pomber. How can a company like this balance
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  that explosive, capital-hungry growth in property with the simultaneous urgent
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  need to conserve cash and fix that underlying going concern issue?
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  Especially if those global economic headwinds management mentioned actually
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  pick up. It's a tough balancing.
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  Music.