IBO Technology faces liquidation amid significant financial decline

IBO Technology Company Limited, under liquidation, announced a significant revenue decrease of 78.1% to 199.02 million yuan for the year ended March 31, 2024, from 907.27 million yuan in 2023. The company reported a net loss attributable to owners of 804.02 million yuan, escalating from 243.56 million yuan in the previous year, primarily due to 667.12 million yuan in impairment losses from deconsolidated subsidiaries and increased cost of sales. Trading of its shares has been suspended since April 29, 2024, following a winding-up order by the Hong Kong High Court on the same date.

For the six months ended September 30, 2024, IBO Technology reported zero revenue and gross profit, a 100% decrease from 199.02 million yuan and 7.18 million yuan, respectively, in the prior corresponding period. Despite this, the company posted a profit attributable to owners of 4.71 million yuan, a reversal from a 135.39 million yuan loss in 2023, primarily due to other gains or losses, net, of 5.506 million yuan and equity-settled share-based payments of 4.698 million yuan.

The company is undergoing a proposed restructuring, including a legally binding term sheet with a potential investor for at least HK$90 million in financing and new share subscriptions. However, its subsidiary, IBO Information (Shenzhen) Limited, entered bankruptcy liquidation on December 24, 2024, with an administrator appointed on March 5, 2025. These developments highlight material uncertainties about the Group’s ability to continue as a going concern.