MOG Digitech reports profit plunge, revenue declines amid strategic shifts

MOG Digitech Holdings Limited reported a profit of RMB545 thousand for the six months ended June 30, 2025, a substantial decrease from RMB3,398 thousand in the same period of 2024. Total revenue for the period was RMB512,168 thousand, down 16.5% from RMB613,426 thousand in 2024, primarily due to a decline in the digital payment solutions business. Despite the overall revenue decrease, the e-commerce segment saw a notable increase of 94.4%, reaching RMB59,458 thousand, driven by the launch of a welfare card.

Gross profit increased by 4.2% to RMB91,232 thousand, improving the gross profit margin from 14.3% to 17.8%, mainly attributed to the optical product retail business in Malaysia. However, administrative expenses rose by 32.2% to RMB38,187 thousand, impacted by increased staff costs and IT-related fees. Finance costs also increased by 57.1% to RMB1,055 thousand, largely due to interest expense on leased properties in Hong Kong.

The company's current ratio improved from 3.82 times in December 2024 to 5.06 times by June 2025, while its gearing ratio remained low at 0.02 times. As of June 30, 2025, total equity stood at RMB812.1 million. The group did not recommend an interim dividend for the reporting period.