Asiafin Holdings Corp. (ASFH) Q2 2026 Earnings Call Transcript

Hello, good evening and good morning to everyone here today. My name is Clarissa. I'm from the marketing team from Asia Fin and I'd like to welcome everyone to the Asia Fin Q2 2026 earnings webinar. Hosting the webinar here today, we have Casey Wong, our CEO, CFO, Chanti Karaku, and our executive director, Dato Sean Xia. At the end of this session, there will be a Q&A session. Please note that this call is being recorded and a replay will be made available on the AsiaFin website. So without further ado, I'd like to pass this call over to Casey.

Hello. Good day, everyone. Good morning for those in the US and good evening to the rest of us in Asia. I hope everyone is well and good. Let me begin my update for this quarter two and first half of 2026. Asiafin delivered substantial improvement in revenue and profitability during the second quarter and first half of 2026, demonstrating stronger operating leverage, improved gross margins, good subscription renewals and disciplined cost management. Most notably, we became profitable with net income attributed to common shareholders of approximately $421,000 for the second quarter of 2026 compared to a net loss of approximately $198,000 in the corresponding quarter of 2025. This is all in US dollar by the way. For the first six months of 2026, revenue increased 71.4% year over year while the company continued to strengthen its profitability and financial position. Revenue increased 50.5% in the second quarter alone reflecting our revenue recognition initiatives. We are particularly encouraged by the significant improvement in gross profit and gross margin during this period gross margin increased to 50.1 in second quarter compared with 31 in the corresponding quarter last year while the company moved from an operating loss to a operating income and from a net loss to a net income attributed to our strict control on operating expenses. The improvement in revenue was primarily attributed to the achievement of our team's project milestone tracking and substitution renewal during the quarter and the first half of the year, resulting in higher revenue recognition compared with the corresponding period in 2025. At the same time, the reduction in selling general and administrative expenses contributed to the improvement in our overall operating performance okay so building on the progress achieved during the first half of 2026 we remain focused on executing our existing projects strengthening our fintech regtech and rpa robotic process automation businesses and continue to develop our technology solution and customer base across the asia and middle east region Moving forward, we are also looking at a U.S. expansion. As reiterated by our Executive Director, Dr. Sean Xia, who is also here today, AsiaFin owns the intellectual property for all of our core products and solutions. This provides AsiaFin with greater control over its technology asset and creates opportunities to scale our solutions across multiple markets without relying on third-party ownership of our core IP. We will continue to focus on converting our technology capabilities and assisting customer relationship into higher value, recurring revenue, and software-as-a-service SaaS opportunities. That's all I have. I'll pass this to Chanti.

Thank you, Casey. I will now walk through the group's financial performance for the second quarter ended June 30, 2026. Cash and cash equivalents, including short-term investment, were approximately $1.58 million as of June 30, 2026, compared to approximately $1.75 million as of December 31, 2025. Revenue for the quarter was approximately 1.52 million, an increase of 50.5% compared to approximately 1.01 million in the second quarter of 2025. The revenue growth continued across payment processing, which is fintech, and the regulatory technology, which is red tech segments. Gross profit was approximately 760,000 or 50.1% gross margin compared to approximately 312,000, or 31% gross margin, in the second quarter of 2025. The improvement in gross margin reflects stronger revenue growth and improved operational efficiency during the quarter. Selling general and administrative expenses were approximately 341,000, a decrease of 34.9% compared to approximately 523,000 in the second quarter of 2025. Net income was approximately $421,000 compared to a net loss of approximately $208,000 for the second quarter of 2025. Net income attributed to common shareholders was approximately $431,000 compared to a net loss of approximately $198,000 for the second quarter of 2025. Total comprehensive income was approximately $400,000 compared to a comprehensive loss of approximately $109,000 for the second quarter of 2025. Basic and diluted earning per share was 0.0053 compared to a net loss per share of 0.0024 for the second quarter of 2025.

I will now pass back the floor to Clarissa. thank you chanti we will now begin our q a session so participants who are interested in submitting a question you can do so via the q a box at the bottom of your screen so now we will open the floor to questions somebody raised a question okay where she added a question any update about the listing oh okay dr sean you want to answer the question oh sure yes okay uh you say the question relating to this thing okay this is an ongoing process okay for issue finn to look for an uplifting opportunity for the company okay currently like

i say there are some changes in the u.s capital market that actually makes the rigorous approval for any asian company to list in the us so we are nonetheless we're still working very closely with our service provider, okay, talking into potentially looking to target company that we can work together. So again, we do not have a lot of information to discuss during a quarterly meeting.

But again, if you have any further questions, okay, we can answer accordingly. because again it is uh it is more like a an ongoing exercise for the company and uh we are looking at all avenues okay to do the other thing right now okay that's what i have for now yeah yeah uh as as you may know uh we are sec reporting company we cannot disclose any information without uh uh informing the sec so uh you know that is why it is not convenient for us to answer this kind of question but you can uh you know uh speak to us uh personally then we can uh we can give you an update any other question so if there are no questions i'll hand this back over to casey for the closing remarks okay uh thank you for all of you for joining our call today i see some friends i look forward to the next q3 earning call so in the meantime please stay tuned to our other social media channels our linkedin facebook instagram for more updates as we progress through the year so if there's nothing else if there's no questions i don't see any hands raising uh then uh have a good day thank you everybody all right thank you