OIO Holdings Limited: Net Profit Declines in FY2024 – Proceed with Caution

Business Description

OIO Holdings Limited is a Singapore-based company that operates in the technology sector. The company’s core business activities include providing blockchain-related services and solutions. The company has a global footprint, with operations in several countries. [[1]]

Financial Statement Analysis

Based on the financial report provided, the key findings from the analysis of the primary financial statements are as follows:

Income Statement

The company’s net profit for the financial year ended 31 December 2024 (FY2024) declined compared to the previous year, as indicated by the increase in accumulated losses from S\$29,663,685 in the unaudited financial statements to S\$29,718,783 in the audited financial statements. [[1]]

Balance Sheet

The company’s reserves decreased by S\$55,098, or 2.6%, from the unaudited financial statements to the audited financial statements, due to a reclassification of the de-recognition of non-controlling interests from merger reserves to accumulated losses. [[1]]

Cash Flow Statement

The company made a reclassification to correct the presentation of share-based payment expenses, which were initially recorded as operating cash outflows but should have been presented as changes in trade and other payables. This reclassification had no impact on the net changes used in operating activities. [[2]]

Investor Implications

Based on the financial report, there are a few key considerations for investors:

Holding the Stock

Given the decline in net profit and the reclassification of certain items in the financial statements, investors currently holding the stock may want to proceed with caution. The company’s financial performance and profitability should be closely monitored for any further deterioration.

Not Holding the Stock

Investors not currently holding the stock may want to adopt a wait-and-see approach. The company’s ability to address the decline in profitability and improve its financial performance will be crucial in determining the attractiveness of the investment.

Disclaimer

It is important to note that this analysis is based solely on the information provided in the financial report and may not reflect the company’s overall performance and future prospects. Investors should conduct their own due diligence and seek professional advice before making any investment decisions.

Date and Financial Year

This report is dated 8 April 2025 and covers the financial year ended 31 December 2024 (FY2024).

Special Activities

The financial report did not mention any special activities or actions the company is taking to improve its profitability.

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