Half-year Report as of 30 September 2024

ORIENT is an information technology company that offers managed services as its core business, which include managed services in machine-to-machine networking, solutions for internet of things (IOT), cyber security, big data solutions as well as full spectrum of other managed services, announces its half year report ended 30 September 2024

The interim report and accounts is available on the Company's website at: www.orient-telecoms.com

I am pleased to present the interim financial statements for Orient Telecoms Plc for the six-month period ending September 30, 2024. In this period, the Group reported a net loss of £68,309, translating to earnings per share of (0.68) pence. The directors have also assessed the principal risks and uncertainties and have disclosed this in this report.

The condensed interim report has not been audited.

Financial Performance and Strategic Path to Profitability

The net loss reported for this period primarily stems from the expiration of several high-value contracts, leading to a temporary dip in revenue. While these transitions have posed short-term challenges, the management team has been diligently pursuing new opportunities to address the impact and rebuild revenue streams.

Efforts are well underway to secure significant new contracts that will offset the revenue loss and provide a stable foundation for future growth. Additionally, Orient Telecoms is actively engaging with key domestic institutions to explore potential collaborations, many of which are expected to materialize in the next 3-6 months. These initiatives are strategically aligned to not only stabilize revenues but also support long-term growth and profitability.

Through these proactive measures and a commitment to operational excellence, Orient Telecoms remains confident in its ability to navigate current challenges while positioning itself for sustained success in the future.

Strengthening Regional Managed Services and Strategic Engagements

Over the past six months, Orient Telecoms has continued to establish itself as a leader in managed service solutions across Southeast Asia. Our operational model prioritizes agility and customer-centered service, enabling enterprises to leverage top-tier connectivity solutions without the significant capital expenditure of managing network infrastructure. To further this vision, we are actively engaging some of the largest telcos worldwide to extend our managed service offerings across the region. These strategic partnerships position us to deliver robust, high-performance services in collaboration with industry leaders.

We have also made concerted efforts to connect with large institutions within Malaysia, particularly in the education sector. Management is actively pursuing opportunities to bring our state-of-the-art solutions to these institutions, where we can support their digital transformation goals with seamless, advanced network services.

Innovating with AI and Advanced Service Management

Orient Telecoms is also advancing its technology strategy, with significant progress in AI applications to enhance our managed services portfolio. Our technology team has made strides in building a custom operating system that improves operational efficiency and service management. This strong foundation is enabling us to explore additional AI applications, with active discussions underway to secure partnerships that will amplify our AI-driven capabilities.

Strengthened Marketing and Sales Efforts

Our marketing and sales teams have bolstered their efforts through strategic digital marketing initiatives and an expanded sales force to strengthen our market presence and attract more regional clients. This proactive approach is already supporting our growth objectives and enhancing brand visibility in competitive markets.

Increasing Visibility in the B2B Market

Orient Telecoms is committed to expanding our footprint in the B2B market. To achieve this, our marketing team is actively implementing a comprehensive outreach strategy aimed at connecting with potential clients across various platforms. We are leveraging targeted social media campaigns, which allow us to engage with businesses more directly and create awareness of our unique managed service solutions.

In addition to digital efforts, we're also strengthening our presence through participation in industry seminars and key regional technology events. These initiatives not only enhance our brand visibility but also provide valuable opportunities to network with industry leaders and demonstrate our expertise in connectivity solutions. Through this multifaceted approach, Orient Telecoms is focused on building lasting relationships and capturing new opportunities within the B2B market.

Commitment to Operational Excellence

Orient Telecoms is dedicated to delivering outstanding service quality that exceeds customer expectations. Our support framework ensures reliable, responsive service, allowing our clients to operate confidently with the assurance of swift and dependable assistance.

Positive Outlook

With a clear strategy, a focused effort on key sectors, and our commitment to ongoing innovation, Orient Telecoms is well-positioned for growth. We anticipate a strong financial performance by the close of our fiscal year in March 2025, as we continue to meet the evolving needs of our customers and expand our impact.

Sayed Mustafa Ali

Director

CONDENSED CONSOLIDATED STATEMENT OF COMPREHESIVE INCOME

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024

OTHER COMPREHENSIVE INCOME

Items that will or may be reflected to profit or loss:

The unaudited condensed interim financial statements were approved by the Board of Directors and authorized for issue on 12 December 2024 and were signed on its behalf by:

Sayed Mustafa Ali

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024

Period from 1 April 2024 to 30 September 2024 (Unaudited)

Period from 1 April 2023 to 30 September 2023 (Unaudited)

Period from 1 April 2023 to 31 March 2024 (Audited)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024

GENERAL INFORMATION

The Company was incorporated in England and Wales on 26 February 2016, as a public company limited by shares under the Act. The principal legislation under which the Company operates is the Act. The registered office of the Company is at Eastcastle House, 27/28 Eastcastle Street, London W1W 8DH United Kingdom.

Shares of the Company are traded on London Stock Exchange's main market for listed securities since 2017.

ACCOUNTING POLICIES

Basis of preparation

The consolidated financial information for the period ended 30 September 2024 have been prepared in accordance with IAS 34, Interim Financial Reporting. The condensed financial information is unaudited and does not constitute statutory financial statements. The interim financial information covers the six-month period from 1 April 2024 to 30 September 2024, with comparative figures for the corresponding period from 1 April 2023 to 30 September 2023.

The principal accounting policies used in preparing the interim financial statements are the same as those applied in the Company's financial statements as at and for the year ended 31 March 2024, which have been prepared in accordance with International Financial Reporting Standards as adopted by the UK ("IFRS") issued by the International Accounting Standards Board ("IASB"), including related interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC"). The auditors' report on those accounts was unqualified and unmodified.

The condensed financial information is presented in British Pound Sterling ("£").

Going concern

These interim financial statements have been prepared on a going concern basis.

The Company is already in an active discussion with some of the potential clients to secure new business in the forthcoming year.

The Company has enough cash balances to run its operations for next 24 months. The Company relies on outsourcing companies to perform its international service maintenance which helps the company to manage its cost better and also keep the lowest possible headcount on the payroll.

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of unaudited interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses for the current and its corresponding financial period under review. Actual results may differ from these estimates.

In preparing the unaudited interim financial statements, the significant judgements made by the management in applying the Company's accounting policies and the sources of estimates uncertainty were consistent as those applied to the 2024 Audited Financial Statements.

There were no changes in estimates of amounts of the Company that may have a material effect on financial period ended 30 September 2024.

REVENUE

Revenue represents the fair value of the consideration received or receivable for communication services. Revenue is recognised when it is probable that the economic benefits associated with a transaction will flow to the Company and the amount of revenue and associated costs can be measured reliably and over the period to which the charges relate.

Revenue is derived solely from Malaysia, Singapore and Thailand. Revenue excludes value added tax and other sales taxes.

PROFIT PER SHARE

Basic profit per ordinary share is calculated by dividing the loss attributable to equity holders of the company by the weighted average number of ordinary shares in issue during the period. Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. There are currently no dilutive potential ordinary shares.

Profit per share attributed to ordinary shareholders:

The Group subsidiary early terminated the lease agreement for an office with effect from 31 December 2023 and entered to a new lease period of three (3) years commence of 1st January 2024.

BANK

Cash and Cash equivalents are denominated in the following currencies:

SEGMENTAL ANALYSIS

As of 30 September 2024, the Group operated as a single operating segment, specializing in the provision of managed telecommunication services. While the Group's headquarters and corporate activities are based in the United Kingdom, the majority of its revenue originated from Malaysia totalling £88,137, accounting for 75% of total revenue. The remaining revenue was primarily generated from other countries within the South East Asia region.

• RISK ARISING FROM FINANCIAL ASSETS AND LIBILITIES AND FAIR VALUE DISCLOSURES

Categories of financial assets and liabilities

The following table categorises the carrying value of the financial assets and liabilities at the balance sheet date. In each case the fair value is not materially different to the carrying value.

Fair value

As at

30-Sep-24 Carrying value

£

Financial assets

The contractual maturities of financial assets are all within 1 period of the balance sheet date.

Fair value

As at

30-Sep-24 Carrying value

£

Financial liabilities

The contractual maturities of financial liabilities are all within 1 period of the balance sheet date.

Risk arising from financial assets and liabilities

The following paragraphs summarize the principal risks associated with the company's financial assets and liabilities and how those risks are managed.

Liquidity and capital risk management

The Company's capital structure consists of items in shareholders' equity. The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

This is done primarily through equity financing. Future financings are dependent on market conditions. There were no changes to the Company's approach to capital management during the period.

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. As at 30 September 2024, the Company had a cash balance of £277,426 to settle current liabilities of £128,632. The Company's current financial liabilities are due on demand and are subject to normal trade terms.

Interest rate risk

The Company does not currently have financial instruments that expose the Company to significant interest rate risk as the Company does not have any debt that bears variable interest rate.

Currency risk

The Company operates in two currencies: Pound Sterling ("GBP"), the functional currency of the parent company, and Ringgit Malaysia ("MYR"), the functional currency of the subsidiary. Currency risk arises primarily from the translation of the subsidiary's financial results into GBP for reporting purposes.

As at 30 September 2024, the Company's exposure to MYR-denominated assets and liabilities amounted to £115,584. A 5% fluctuation in the MYR/GBP exchange rate would result in an estimated impact of £5,779 on the Company's profit and net assets, assuming all other variables remain constant. The Company monitors foreign currency exposures regularly and considers appropriate risk management strategies as needed.

The following Group's financial instruments are denominated in MYR:

Price risk

The Company does not hold any equity securities and therefore is not exposed to price risk.

Credit risk

The company has receivables and remains confident in its ability to collect these amounts due to the creditworthiness of its customers and effective collection processes.

SHARE CAPITAL

At 30 September 2024, the total issued ordinary share of the Company were 10,000,000.

CHANGES IN ACCOUNTING POLICIES

There have been no changes in the accounting policies applied during the interim period, which remain consistent with those applied in the most recent annual financial statements.

SEASONAL OR CYCLICAL FACTORS

There are no seasonal factors that materially affect the Group's operation.

RELATED PARTY TRANSACTIONS

There were no related party transactions except for the payments of directors' transactions disclosed in the interim financial statements.

The amount due to related party is interest-free and they are payable on demand.

SIGNIFICANT EVENTS AND TRANSACTION

There were no significant events or transactions during the interim period that require disclosure.

CONTINGENT LIABIITIES AND CONTINGENT ASSETS

The company has no material contingent liabilities or contingent assets as at 30 September 2024.

CONTROL

The directors consider there is no ultimate controlling party.

SUBSEQUENT EVENT

No subsequent events have occurred that require disclosure.