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INDEX TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

  Page
Interim condensed consolidated financial statements  
Condensed Consolidated Balance Sheets as of December 31, 2025 (unaudited) and June 30, 2025 F-2
Unaudited Interim Condensed Consolidated Statements of Income and Comprehensive Loss for the Six Months Ended December 31, 2025 and 2024 F-3
Unaudited Interim Condensed Consolidated Statements of Changes In Shareholders’ Equity for the Six Months Ended December 31, 2025 and 2024 F-4
Unaudited Interim Condensed Consolidated Statements of Cash Flows for the Six Months Ended December 31, 2025 and 2024 F-5

 

F-1

 

 

MILLENNIUM GROUP INTERNATIONAL HOLDINGS LIMITED

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2025 AND JUNE 30, 2025

 

    December 31,     June 30,  
    2025     2025  
    (Unaudited)     (Audited)  
ASSETS            
Current assets:            
Cash and cash equivalents $6,864,849  $10,689,219 
Restricted cash  -   87,842 
Accounts receivable, net  6,270,041   7,100,656 
Prepayments, other receivables and other current assets  1,958,340   1,391,295 
Inventory  1,760,994   1,538,816 
Total current assets  16,854,224   20,807,828 
Non-current assets:                
Property, plant and equipment, net  7,630,262   7,447,205 
Right-of-use assets, net  3,564,490   3,177,674 
Intangible assets, net  50,406   100,667 
Deferred tax assets, net  169,195   165,983 
Other non-current assets  4,554,144   4,547,727 
Total non-current assets  15,968,497   15,439,256 
Total Assets $32,822,721  $36,247,084 
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY                
Current Liabilities:                
Bank borrowings $4,705,798  $6,108,552 
Lease obligation – current  386,029   223,543 
Accounts payable  3,879,957   3,580,584 
Other payables and accrued liabilities  1,289,573   1,024,301 
Tax payable  202,135   212,801 
Total current liabilities  10,463,492   11,149,781 
                 
Non-current liabilities:                
Lease obligation – non-current  387,156   187,355 
Total non-current liabilities  387,156   187,355 
Total liabilities  10,850,648   11,337,136 
                 
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  (3,341,388)  (3,708,980)
Accumulated deficit  (10,141,023)  (6,813,840)
Total shareholders’ equity  21,950,357   24,909,948 
Non-controlling interest  21,716   - 
Total liabilities and shareholders’ equity $32,822,721  $36,247,084 

 

F-2

 

 

MILLENNIUM GROUP INTERNATIONAL HOLDINGS LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS

FOR THE SIX MONTHS ENDED DECEMBER 31, 2025 AND 2024

 

   2025   2024 
Revenues $10,857,414  $14,147,044 
Cost of revenues  (9,699,288)  (11,295,418)
Gross Profit  1,158,126   2,851,626 
           
Operating expenses:          
Selling and marketing  (1,061,066)  (1,843,288)
General and administrative  (3,564,244)  (3,789,427)
Total operating expenses  (4,625,310)  (5,632,715)
           
(Loss) from operations  (3,467,184)  (2,781,089)
           
Other income (loss):          
Other income  315,257   147,510 
Other expenses  (1,046)  (203,071)
Interest expense  (111,655)  (191,583)
   202,556   (247,144)
           
(Loss) before tax expenses  (3,264,628)  (3,028,233)
           
Income tax expense  (64,177)  (62,690)
           
Net (loss) attributable to ordinary shareholders $(3,328,805) $(3,090,923)
Net (loss) attributable to non-controlling interest  (1,622)  - 
           
Net (loss) attributable to MILLENNIUM GROUP INTERNATIONAL HOLDINGS LIMITED  (3,327,183)  (3,090,923)
           
Other Comprehensive Income (Loss)          
Foreign currency translation adjustment $367,592  $(31,659)
           
Total Comprehensive (Loss) attributable to MILLENNIUM GROUP INTERNATIONAL HOLDINGS LIMITED $(2,959,591) $(3,122,582)
           
Net (loss) per share attributable to ordinary shareholders basic and diluted $(0.30) $(0.27)
           
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, 2025 AND 2024

 

                            Accumulated     Retained              
    Ordinary Share           Additional           other     Earnings     Non-        
    No. of           paid-in     Statutory     comprehensive     (Accumulated     Controlling        
    Shares     Amount     capital     Reserve     (loss)     Deficit)     Interest     Total  
          $     $     $     $     $     $     $  
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 
                                                                 
Balance as of July 1, 2025 (audited)  11,250,000   22,500   34,361,149   1,049,119   (3,708,980)  (6,813,840)  -   24,909,948 
Foreign currency translation adjustment  -   -   -   -   367,592   -   -   367,592 
Acquisition of non-controlling interest                          23,338   23,338 
Net loss  -   -   -   -   -   (3,327,183)  (1,622)  (3,328,805)
Balance as of December 31, 2025  11,250,000   22,500   34,361,149   1,049,119   (3,341,388)  (10,141,023)  21,716   21,972,073 

 

F-4

 

 

MILLENNIUM GROUP INTERNATIONAL HOLDINGS LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED DECEMBER 31, 2025 AND 2024

 

   2025   2024 
Cash Flows from Operating Activities:        
Net (loss) $(3,328,805) $(3,090,923)
Adjustments to reconcile net (loss) to net cash (used in) operating activities:          
Depreciation and amortization  544,119   543,362 
Impairment (reversal) of inventories  79,792   (56,960)
Gain (loss) on disposal of property, plant and equipment  291,806   269,664 
Provision (reversal) for bad debts  (273,908)  259,455 
Impairment of property, plant and equipment  58,358   - 
Changes in operating assets and liabilities:          
Deferred tax  -   (1,136)
Accounts receivable  1,228,850   577,970 
Prepayments, other receivables and other assets  (532,258)  (166,507)
Inventory  (273,758)  1,800,330 
Prepaid tax  (2,325)  (201,487)
Right-of-use assets  (333,595)  166,022 
Lease obligation  364,203   (154,706)
Accounts payable  227,336   527,213 
Other payables and accruals  243,794   (980,508)
Tax payable  (15,343)  70,835 
Net Cash used in Operating Activities  (1,721,734)  (437,376)
           
Cash Flows from Investing Activities:          
Purchases of property, plant and equipment  (1,071,072)  (964,949)
Prepayment land cost  -   (165,165)
Proceeds from sale of property, plant and equipment  107,447   290,672 
         - 
Net Cash (used in) Investing Activities  (963,625)  (839,442)
           
Cash Flows from Financing Activities:          
Repayment of bank borrowings  (4,158,400)  (5,725,970)
Proceeds from contributions by non-controlling interest  23,338   - 
Proceeds from bank borrowings  2,706,339   4,881,974 
Net Cash (used in) Financing Activities  (1,428,723)  (843,996)
           
Effect of Exchange Rate Changes on Cash and Cash Equivalents  201,871   (23,227)
           
Net Decrease in Cash and Cash Equivalents  (3,912,212)  (2,144,041)
           
Cash, Cash Equivalents and Restricted Cash – Beginning of Period  10,777,061   13,346,584 
           
Cash, Cash Equivalents and Restricted Cash – End of Period $6,864,849  $11,202,543 
           
Supplemental Disclosure of Cash Flow Information:          
Cash paid for interest $121,298  $193,050 
Cash paid for income taxes $(64,033)  (128,961)

  

F-5