Good morning and good afternoon. My name is Tom Baumann of FNKIR, Asia Fin's investor relations firm. I'd like to welcome everyone to Asia Fin's second quarter 2025 financial results conference call. Hosting the call today are Casey Wong, Asia Fin's founder and group CEO, Dr. Sean Say, executive director, and Shanti Koo, Asia Fin's newly appointed CFO. Before I turn the call over to management, I would like to refer you to page 2 of the company's earnings release dated August 13, 2025, which contains AsiaFin's Safe Harbor Disclaimer. During today's call, management may make forward-looking statements. These statements are based on current expectations and assumptions, and as a result, are subject to risks and uncertainties. Many factors could cause actual results to differ materially from the forward-looking statements on this call. After the speaker's remarks, there will be a question and answer session. Please note that this call is being recorded and a replay may be accessed via AsiaFin's website at asiafingroup.com. I would now like to turn the call over to Casey Wong, AsiaFin's founder and group CEO.
Thank you, Tom. All right, we have closed the second quarter, going into the third quarter so we are going into the second part of the year uh last uh first quarter results were not as uh as good as we expected but uh this quarter we have seen some good results shanti will go through the financial numbers i will talk about the the non-financial accomplishment then that we had done this second quarter. First, when we announced during the first quarter, we have announced that we have a Saudi contract, but we were not able to do any invoicing on the first quarter. But this quarter, we managed to invoice and sign and invoice the contract. And we are on the way. So we are target to complete phase one of the project, which is which we foresee 70% of the project to be invoiced within the end of this year. Because the cut-life timeframe for phase one is targeted to be remembered if it doesn't delay the project. Second thing, so this is the Saudi project. And then we will have more news as we move forward for the next quarter on the Saudi establishment. Secondly, we have rolled out AsiaFin RPA solutions in Asia and also in Saudi. It's one of the products that we have also sold to the bank in Saudi Arabia. So this also means that the Orangefin company is turning around the corner. Hopefully, we will foresee good results this year with Orangefin. I think it can also be seen in the results that we have announced. okay and then uh of course on the on the malaysian front uh we are continuing to uh to uh roll out our e-invoice uh solution under our rectaq recta e-invoice solution uh we have made an announcement that we have crossed the 100 plus companies 100 companies that we uh report uh e-invoice okay so in Malaysia only. So we are targeting to expand our RegTech into the GCC, looking at some of opportunities there. So these are some of the highlights of the circuit quarter that we have achieved. So now I would like to hand over the call to Shanti.
Thank you, thank you, Casey. Revenue for the second quarter was $1 million, an increase of nearly 86% compared to $542,000 reported in the same quarter last year. The increase represents initial revenues from our new customer in Saudi Arabia and increases in services provided to our customers in Asia. Our gross profit was 312 or 30.9% gross margin compared to gross profit of $54,000 or 10% gross margin in the same quarter last year. Our significant improvement in gross margin, both on a year-over-year and a sequential basis, reflects the contribution of revenue in Saudi Arabia following a period of higher startup costs which impacted our margins. Selling and general administration expenses were $523,000 for the second quarter, up to 60.4% from the $326,000 in the second quarter last year. The increase was primarily attributed to the higher salary expenses as we recruited more employees to support our business expansion and an increase in the credit loss allowance. a narrowing of 26.9% compared to the loss of $285,000 in the second quarter last year. As we scale, we continue to progress toward positive operating income. Similarly, our net loss continues to narrow as well. The second quarter net loss was $208,000 compared to $285,000 in the second quarter last year. Net loss attributed to common shareholders was $198,000 or $0 per share compared to net loss of $281,000 or $0 per share last year. On a year-to-date basis, our revenue for six months ended 30 June 2025 was $1.6 million compared to $1.1 million for the first half of 2024, an increase of 53.3%. Again, this year reflects incremental revenue from new regions, including Saudi Arabia, and expansion with existing customers. Our gross margin increased more than 1,100 basis points to 18.7% from 7.2% in the first six months last year, reflecting the margin normalization in Saudi Arabia. year. For the first six months of 2025, selling general and administrative expenses were $1 million compared to selling general and administrative expenses of $622,000 last year. Operating costs for the first six months of the year was $698,000 compared to an operating loss of 567,000 net loss attributed to common shareholders for the first six months of the year was 680,000 or $0 per share compared to net loss to common shareholders of 559,000 or $0 per share last year turning to balance sheet we ended the quarter with cash and cash equivalents of 1.03 million compared to 1.3 million at the end of 2024. With this, I turn back the call to Tom.
Thank you, Shanti. We will now begin the Q&A session. There are two ways to participate. First, you can submit a question using the Q&A widget. To do this, locate the Q&A icon at the bottom of your screen. Click it to open the text box, type your question, and then click submit. Alternatively, you can ask a live question using the raise hand icon, also located at the bottom of your screen. This will notify the IR team that you would like to ask a live question on today's call. When called upon, please remember to unmute your line and proceed with your question. We will now open the floor for questions.
Okay, if there are no questions, I would like to hand the call back to kc for closing remarks thank you uh tom thank you shanti uh it's the first time we have to have a question so that's uh good it's either we have been doing very well or okay so i don't know what else okay so thank you everybody uh i think uh i have uh no further remarks hopefully uh we are looking forward to the third quarter uh we uh we hope that we can give you better results for the second quarter and of course our last quarter is always the best for everybody here. Thank you.
