HONG KONG - RC365 Holding PLC (LSE: RCGH), a fintech and payment solutions company, has reported its interim financial results for the six months ending September 30, 2024. The company saw a decrease in revenue to HK$6.1 million from HK$6.8 million in the first half of the previous year. However, the loss after tax has significantly reduced to HK$7.4 million, compared to a HK$34.9 million loss in the same period last year.
The gross margin for the period was reported at 89.2%, a drop from the previous year's 99.5%. Cash and cash equivalents as of September 30, 2024, stood at HK$16.3 million, down from HK$19.3 million on March 31, 2024.
On the operational front, RC365 has seen substantial growth in its new payment card services, issuing 891 cards during the period, bringing the total to over 1,500. The company also maintained steady demand for its IT services. Strategically, RC365 has been progressing its expansion into virtual banking, having acquired a Money Lenders Licence in Hong Kong. This move is part of the company's development of the upgraded RCPAY app, RC3.0 App, which will include virtual banking features.
The company has also extended its reach into new key markets, notably Japan and Malaysia. RC365 has more than doubled its corporate customer base in Japan and continued to develop its RC365 Solutions subsidiary in Malaysia, bolstered by a HK$0.7 million grant from the Hong Kong government.
Post the reporting period, RC365 completed the sale of its RCPAY Limited subsidiary in Hong Kong for HK$0.4 million.
Chi Kit (Michael) LAW, CEO of RC365, expressed satisfaction with the company's execution of its growth strategy and the progress made in key areas such as card programme rollouts and customer base expansion in Japan. He highlighted the importance of the Money Lenders Licence for virtual banking expansion and expressed anticipation for the launch of new services and the RC3.0 App.
This financial update is based on a press release statement from RC365 Holding PLC.
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