Good morning and good afternoon. My name is Tom Baumann of FNKIR, AsiaFin's investor relations firm. I'd like to welcome everyone to AsiaFin's third quarter 2025 financial results conference call. Hosting the call today are Casey Wong, AsiaFin's founder and group CEO, Dr. Sean Say, executive director, and Shanti Koo, AsiaFin's 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 November 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 at AsiaFin's website at www.asiafingroup.com. I would now like to turn a call over to Casey Wong, Asia Fin's founder and group CEO.
Thank you, Tom. Thank you, all of you that are attending this call. This is our third quarter for 2025, and we are glad to announce that the third quarter result has improved compared to last year. In fact, through the three quarters this year, we have almost achieved nearly the same revenue as we did for the full 2024 financial year. And then normally, the fourth quarter is normally our strongest quarter. Management has put in some controls from what you call initiative to make sure we recognize revenue and effort simultaneously. Because sometimes it's always the case where like a software company, our staff cost always goes first, whereas the revenue comes later. So we are putting in some initiative in place to make sure we recognize revenue as we incur costs. So this quarter result is showing some of the initiatives that we have put in and as a result we have seen a strong quarter. This is also our means of what we call land and expand kind of business, feast or famine. Some may be used to that term, where we explore a new country and then with some government initiative, We work very closely with central banks and large banks in order to start some government initiatives, whether it is related to payments like check clearing in the Middle East or like regtech business here in Malaysia. So with this strategy, we are able to grow the revenue and the business for each country and then from there we resell our other businesses. So we are going to do the same thing as we move into the Middle East. We already have explored the Saudi market, Saudi Arabia market with the first contract. We hope to grow the business in Saudi in this manner of land and expand the business through our local partners in Saudi Arabia. And at the same time, we are also starting some initiatives in other Middle East countries like Oman and UAE. So with this method, we are now actually also trying to explore new markets, for example, the North American market, probably working with New York-based companies or Canadian-based companies. There are some initiatives that we are doing. For the Saudi project, we already have two payments that have come in. It's in line with what we are progressing. We expect to achieve 30% of the project invoicing by this year. And then next year, we are going to put in all the innovation and all the robotic process automation features that we have sold to them. Not just because of that, our Orangefin business has also been growing. this last two years and we have seen some fruits, our RPA, Orangefin business year-to-date basis has more than doubled, up to 123% to over 450,000. Ashanti will give you more numbers, our CFO. But basically, we can see the contribution of Orangefin. It used to be loss-making business for the last few years, we hope to see it turn around this year. Of course, one of our main business that we are doing is our Ragtag business. Again, it is because of the government mandate, the Ragtag e-invoicing initiative in Malaysia has gotten us a lot of, no close, actually more than 100 companies that we are reporting for them, e-inversing. And now, in the last three quarters, we are focusing on larger corporations like banks that have come in. That's why we see that there is up to 65% of revenue that we have achieved this year. So the Ragtag business is one of our core business for the year. And moving forward, the next two years, we are also planning new initiative, working with the government mandates. okay so this is my update for the quarter uh i'm sure you would like to hear more on the numbers so i would like to turn this over to chanty our new cfo uh to review the results of the paper
yep thank you casey okay uh you're reporting on the financials revenue for the third quarter was 1.6 million, an increase of nearly 53% compared to the 1 million reported in the same quarter last year. The increase represents initial revenues from our new customer in Saudi Arabia and increases in the services provided to our customers in Asia, including contribution from our e-invoicing solution. Our gross profit was 737,000 or 46.8% gross margin compared to gross profit of 539 000 a gross margin of 52.2 percent in the same quarter last year sequentially our gross profit improved more than hundred one thousand five hundred basis points compared to thirty point nine percent gross margin in the second quarter the significant cons consi sorry the significant sequential improvement in gross margin reflects the contribution of revenue in Saudi Arabia following a period of higher startup costs which impacted our margins. Selling general and administrative expenses were $368,000 for the third quarter, up around 6% from the $348,000 in the third quarter last year, attributable to the international expenses related to the expansion into ASEAN and Saudi Arabia. We continue to expect selling, general and administrative expenses to grow more slowly than revenue as we drive operational leverage after investing to expand into new markets and introduce new solutions. We generated positive income for the quarter. The third quarter net income was $371,000 compared to $176,000 in the third quarter last year. Net income attributed to common shareholders was $380,000 or $0 per share compared to net income of $184,000 or $0 per share last year. On a year-to-date basis, our revenue for the nine months at that ended September 30, 2025 was $3.2 million compared to $2.1 million for the first nine months of 2024, an increase of 53%. Gross margin increased 310 basis points to 32.5% from 29.4% in the first nine months last year, reflecting the margin normalisation in Saudi Arabia. For the first nine months of 2025, selling general and administrative expenses were $1.4 million compared to selling general and administrative expenses of $970,000 last year. net loss attributed to common shareholders for the first nine months of the year was three three hundred thousand or zero dollar per share compared to a net loss to common shareholders of three hundred and seventy five thousand or zero dollar per share last year turning to the balance sheet we ended the quarter with cash and cash equivalents of seven hundred ninety five thousand compared to $1.3 million at the end of 2024. With that, I'll turn back the call to Tom for the question and answer session.
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, then click Submit. Alternatively, you can ask a live question using the raised 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'll now open the floor for questions. I'll just allow a few more seconds to see if anyone wants to submit a question. okay if there are no questions i would like to hand the call back to casey for closing remarks
thank you very much uh tom uh thank you for all of you that attending this call today uh i know some of you have questions but uh do you want to ask in the group i hope you will uh you know be patient as we uh we will as we close the year it's going to almost end of the year so hopefully we will have better results uh a good resource for the whole year okay so if there's nothing else uh thank you very much i hope you have a good day
