FNX Half Year Report

Half Year Results 31 December 2022

Review of Operations

Finexia Financial Group Limited has achieved commendable financial and operational results in the first half of the fiscal year 2023, aligning closely with our forecasts and the market guidance previously communicated. Our strategic focus remains on optimizing operations within our three core segments: Private Credit, Funds & Asset Management, and Equity Capital Markets.

Despite prevailing macroeconomic challenges, the Company has demonstrated resilience, achieving an 18% increase in top-line revenue to A$7,065,274 compared to the corresponding period. The resulting pre-tax operating profit stood at $2,444,545 (NPAT A$1,819,015, down from $2,566,652 in the previous year). The decline in net profit is primarily attributed to a shift in the Group’s tax position and a provision for an isolated secured loan, where the recovery outcome remains uncertain.

In the six months ending December 31, 2022, revenue across the three operational divisions surpassed the previous period, underscoring the success of our strategic approach. Going forward, the Group is committed to reporting financial performance with increased transparency across these divisions.

Encouragingly, the cash operating profit for the period reached A$3,112,395, contributing to the consolidation and growth of the Company's cash position and Net Tangible Assets (NTA) per share. As of December 31, 2022, the Group’s cash at bank stood at A$10.1M. The generation of sustainable recurring cash profit remains a key priority for management, playing a pivotal role in realizing our future dividend ambitions.

The Finexia Childcare Centre Incubation Fund (‘Childcare Fund’), launched in October 2022, has gained significant traction, with funding commitments standing at approximately $50M by the end of the reporting period. Management is pleased with the strong interest from both investors and childcare operators, providing substantial positive momentum for the remainder of the fiscal year. Based on current projections and the ongoing loan deal flow into the second half, the Company is confident that the previously communicated Group operating profit guidance target of A$4.3M will be maintained.

Key Highlights:

• Revenue increased by 18.0% to A$7,065,274.
• NPAT of $1,819,015.
• Successful launch of the Finexia Childcare Centre Incubation Fund (ARSN 658 543 625).
• Capital consolidation executed on November 21, 2022 (5:1 consolidation).
• Ongoing pursuit of opportunities to secure a wholesale funding facility to propel the Company's next growth phase, with further updates anticipated in the coming months.
• The Company remains committed to navigating challenges and leveraging opportunities, positioning itself for sustained growth in the evolving financial landscape.