.2
INDEX TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
F-1
MILLENNIUM GROUP INTERNATIONAL HOLDINGS LIMITED
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2024 AND JUNE 30, 2024
| December 31, | June 30, | |||||||
| 2024 | 2024 | |||||||
| (Unaudited) | (Audited) | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 11,202,543 | $ | 13,346,584 | ||||
| Accounts receivable, net | 8,622,951 | 9,462,980 | ||||||
| Prepayments, other receivables and other current assets | 1,598,936 | 1,240,639 | ||||||
| Inventory | 1,985,373 | 3,715,494 | ||||||
| Total current assets | 23,409,803 | 27,765,697 | ||||||
| Non-current assets: | ||||||||
| Property, plant and equipment, net | 7,715,409 | 7,792,835 | ||||||
| Right-of-use assets, net | 3,305,260 | 3,474,737 | ||||||
| Intangible assets, net | 148,615 | 197,787 | ||||||
| Deferred tax assets, net | 329,874 | 329,594 | ||||||
| Other non-current assets | 4,246,374 | 4,076,456 | ||||||
| Total non-current assets | 15,745,532 | 15,871,409 | ||||||
| Total Assets | $ | 39,155,335 | $ | 43,637,106 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Bank borrowings | $ | 4,766,820 | $ | 5,582,665 | ||||
| Lease obligation – current | 224,515 | 218,578 | ||||||
| Accounts payable | 4,159,868 | 3,648,331 | ||||||
| Other payables and accrued liabilities | 1,713,288 | 2,684,556 | ||||||
| Tax payable | 69,681 | - | ||||||
| Total current liabilities | 10,934,172 | 12,134,130 | ||||||
| Non-current liabilities: | ||||||||
| Lease obligation – non-current | 297,702 | 456,933 | ||||||
| Total non-current liabilities | 297,702 | 456,933 | ||||||
| Total liabilities | 11,231,874 | 12,591,063 | ||||||
| COMMITMENTS AND CONTINGENCIES | - | - | ||||||
| SHAREHOLDERS’ EQUITY | ||||||||
| Ordinary shares: USD $0.002 par value per share, 125,000,000 authorized; 11,250,000 shares issued and outstanding | 22,500 | 22,500 | ||||||
| Additional paid-up capital | 34,361,149 | 34,361,149 | ||||||
| Statutory reserves | 1,049,119 | 1,049,119 | ||||||
| Accumulated other comprehensive loss | (3,919,929 | ) | (3,888,270 | ) | ||||
Accumulated deficit | (3,589,378 | ) | (498,455 | ) | ||||
| Total shareholders’ equity | 27,923,461 | 31,046,043 | ||||||
| Total liabilities and shareholders’ equity | $ | 39,155,335 | $ | 43,637,106 | ||||
F-2
MILLENNIUM GROUP INTERNATIONAL HOLDINGS LIMITED
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS AND
COMPREHENSIVE LOSS
FOR THE SIX MONTHS ENDED DECEMBER 31, 2024 AND 2023
| 2024 | 2023 | |||||||
| Revenues | $ | 14,147,044 | $ | 23,810,824 | ||||
| Cost of revenues | (11,295,418 | ) | (17,620,765 | ) | ||||
| Gross Profit | 2,851,626 | 6,190,059 | ||||||
| Operating expenses: | ||||||||
| Selling and marketing | (1,843,288 | ) | (2,968,425 | ) | ||||
| General and administrative | (3,789,427 | ) | (3,652,478 | ) | ||||
| Total operating expenses | (5,632,715 | ) | (6,620,903 | ) | ||||
| (Loss) from operations | (2,781,089 | ) | (430,844 | ) | ||||
| Other income/ (loss): | ||||||||
| Other income | 147,510 | 152,084 | ||||||
| Other expenses | (203,071 | ) | (293,216 | ) | ||||
| Interest expense | (191,583 | ) | (471,995 | ) | ||||
| (247,144 | ) | (613,127 | ) | |||||
| (Loss) before tax expenses | (3,028,233 | ) | (1,043,971 | ) | ||||
| Income tax credit/ (expense) | (62,690 | ) | 151,510 | |||||
| Net (loss) | $ | (3,090,923 | ) | $ | (892,461 | ) | ||
| Other Comprehensive Income (Loss) | ||||||||
| Foreign currency translation adjustment | $ | (31,659 | ) | $ | 806,172 | |||
| Total Comprehensive (Loss) | $ | (3,122,582 | ) | $ | (86,289 | ) | ||
| Net (loss) per share attributable to ordinary shareholders basic and diluted | $ | (0.27 | ) | $ | (0.08 | ) | ||
| Weighted average number of ordinary shares used in computing net income per share basic and diluted | 11,250,000 | 11,250,000 | ||||||
F-3
MILLENNIUM GROUP INTERNATIONAL HOLDINGS LIMITED
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS
OF CHANGES IN
SHAREHOLDERS’ EQUITY
FOR THE SIX MONTHS ENDED DECEMBER 31, 2024 AND 2023
| Accumulated | Retained | |||||||||||||||||||||||||||
| Ordinary Share | Additional | other | Earnings | |||||||||||||||||||||||||
| No. of | paid-in | Statutory | comprehensive | (Accumulated | ||||||||||||||||||||||||
| Shares | Amount | capital | Reserve | (loss) |
Deficit) | Total | ||||||||||||||||||||||
| $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Balance as of July 1, 2023 (audited) | 11,250,000 | 22,500 | 34,361,149 | 1,049,119 | (3,785,555 | ) | 8,271,589 | 39,918,802 | ||||||||||||||||||||
| Appropriations to statutory reserves | - | - | - | 74,802 | - | (74,802 | ) | - | ||||||||||||||||||||
| Foreign currency translation adjustment | - | - | - | - | 806,172 | - | 806,172 | |||||||||||||||||||||
| Net loss | - | - | - | - | - | (892,461 | ) | (892,461 | ) | |||||||||||||||||||
| Balance as of December 31, 2023 | 11,250,000 | 22,500 | 34,361,149 | 1,123,921 | (2,979,383 | ) | 7,304,326 | 39,832,513 | ||||||||||||||||||||
| Balance as of July 1, 2024 (audited) | 11,250,000 | 22,500 | 34,361,149 | 1,049,119 | (3,888,270 | ) | (498,455 | ) | 31,046,043 | |||||||||||||||||||
| Foreign currency translation adjustment | - | - | - | - | (31,659 | ) | - | (31,659 | ) | |||||||||||||||||||
| Net loss | - | - | - | - | - | (3,090,923 | ) | (3,090,923 | ) | |||||||||||||||||||
| Balance as of December 31, 2024 | 11,250,000 | 22,500 | 34,361,149 | 1,049,119 | (3,919,929 | ) | (3,589,378 | ) | 27,923,461 | |||||||||||||||||||
F-4
MILLENNIUM GROUP INTERNATIONAL HOLDINGS LIMITED
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED DECEMBER 31, 2024 AND 2023
| 2024 | 2023 | |||||||
| Cash Flows from Operating Activities: | ||||||||
| Net (loss) | $ | (3,090,923 | ) | $ | (892,461 | ) | ||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 543,362 | 689,807 | ||||||
| Impairment (reversal) of inventories | (56,960 | ) | 21,795 | |||||
| Gain (loss) on disposal of property, plant and equipment | 269,664 | (28,476 | ) | |||||
| Provision for bad debts | 259,455 | 52,887 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Deferred tax | (1,136 | ) | (231,117 | ) | ||||
| Accounts receivable | 577,970 | (1,401,648 | ) | |||||
| Prepayments, other receivables and other assets | (166,507 | ) | (1,781,779 | ) | ||||
| Inventory | 1,800,330 | 531,593 | ||||||
| Prepaid tax | (201,487 | ) | (292,461 | ) | ||||
| Right-of-use assets | 166,022 | (1,676,402 | ) | |||||
| Lease obligation | (154,706 | ) | 1,702,724 | |||||
| Accounts payable | 527,213 | (33,228 | ) | |||||
| Other payables and accruals | (980,508 | ) | 420,301 | |||||
| Related party balances | - | (357,619 | ) | |||||
| Tax payable | 70,835 | (3,428 | ) | |||||
| Net Cash used in Operating Activities | (437,376 | ) | (3,279,512 | ) | ||||
| Cash Flows from Investing Activities: | ||||||||
| Purchases of property, plant and equipment | (964,949 | ) | (18,526 | ) | ||||
| Prepayment land cost | (165,165 | ) | - | |||||
| Proceeds from sale of property, plant and equipment | 290,672 | 101,499 | ||||||
| Purchase of intangible assets | - | (17,742 | ) | |||||
| Net Cash (used in) provided by Investing Activities | (839,442 | ) | 65,231 | |||||
| Cash Flows from Financing Activities: | ||||||||
| Repayment of bank borrowings | (5,725,970 | ) | (8,220,651 | ) | ||||
| Proceeds from bank borrowings | 4,881,974 | 7,046,172 | ||||||
| Net Cash (used in) Financing Activities | (843,996 | ) | (1,174,479 | ) | ||||
| Effect of Exchange Rate Changes on Cash and Cash Equivalents | (23,227 | ) | 258,538 | |||||
| Net Decrease in Cash and Cash Equivalents | (2,144,041 | ) | (4,130,222 | ) | ||||
| Cash, Cash Equivalents and Restricted Cash – Beginning of Period | 13,346,584 | 27,576,622 | ||||||
| Cash, Cash Equivalents and Restricted Cash – End of Period | $ | 11,202,543 | $ | 23,446,400 | ||||
| Supplemental Disclosure of Cash Flow Information: | ||||||||
| Cash paid for interest | $ | 193,050 | $ | 471,955 | ||||
| Cash recovered from income taxes | $ | (128,961 | ) | - | ||||
F-5