ICFG Limited

National Storage Mechanism | Additional information RNS Number : 0916B ICFG Limited 29 September 2025 29 September 2025 ICFG LIMITED ("ICFG" or the "Company") Interim Results for the six months ended 30 June 2025 ICFG (LON: ICFG) is pleased to announce the Company's unaudited interim results for the six months ended 30 June 2025. For further information, please contact: ICFG Limited Via IFC Enkhmaral Batkhuyag, Interim CEO Strand Hanson Limited (Financial Adviser) Rory Murphy / Abigail Wennington / David Asquith +44 (0) 207 409 3494 Novum Securities (Broker) Jon Bellis / Colin Rowbury +44 (0) 207 399 9400 IFC Advisory Limited (Financial PR and IR) Tim Metcalfe / Zach Cohen +44 (0) 203 934 6630 ICFG LIMITED STATEMENT OF MANAGEMENT'S RESPONSIBILITIES We confirm that to the best of our knowledge: �� the condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted for use in the UK; �� the interim management report includes a fair, balanced and understandable review of the information required by: (a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and (b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so. Approved by the Board on 27 September 2025 and signed on its behalf. NICOLA JANE WALKER DIRECTOR COMPANY INFORMATION GENERAL ICFG Limited (the "Company") is a company limited by shares, incorporated in Guernsey on 28 May 2021 under The Companies (Guernsey) Law, 2008, (as amended). The Company's registration number is 69264 and its registered office is Les Echelons Court, Les Echelons, St Peter Port, Guernsey, GY1 1AR. On 12 February 2025, the Company successfully completed its reverse takeover of ICFG Pte Ltd and was readmitted to the main market of the London Stock Exchange under the ticker symbol "ICFG," with its shares registered under ISIN GG00BPGZTM87 and SEDOL BPGZTM8. The Company and its subsidiaries are collectively referred to as the "Group" in this Interim Financial Report. PRINCIPAL ACTIVITY The principal activity of ICFG Limited is the provision of technology-driven financial services in emerging markets. Primarily in financial services and microfinance, investment banking, AI and fintech solutions, real estate development and management. BOARD OF DIRECTORS The Board is responsible for leading and controlling the Company and has overall authority for the management and conduct of its business, strategy and development. The Board is also responsible for ensuring the maintenance of a sound internal controls and risk management (including financial, operational and compliance controls) and for reviewing the overall effectiveness of systems in place as well as for the approval of any changes to the capital, corporate and/or management structure of the Company. The Board consisted of following Directors during the period: Chairman, Executive Director Mr Ankhbold Bayanmunkh Chief Executive Officer, Executive Director Mr Oliver Stuart Fox Executive Director Mr Hirohito Namiki Non-Executive Director Mr Robert George Shepherd Non-Executive Director Ms Nicola Jane Walker Non-Executive Director Mr Amar Lkhagvasuren Oliver Fox was Chief Executive Officer and a Director until 19 August 2025. He resigned from his role and Ms. Enkhmaral Batkhuyag has been appointed as Interim Chief Executive Officer, currently a non-Board position, from 19 August 2025. CORPORATE GOVERNANCE As a Company with a listing in the equity shares (transition) category, the Company is not required to comply with the provisions of the UK Corporate Governance Code 2024 published by the Financial Reporting Council of the UK. However, the Company has elected to comply with the UK Corporate Governance Code and to use it as a benchmark and seek to comply with its provisions to the extent appropriate for its size and stage of development. In line with this commitment, the Board has also established an Audit Committee, a Nomination Committee, a Remuneration Committee and a Risk Committee each with formally delegated duties and responsibilities and with written terms of reference. The Company holds quarterly board meetings with additional board meetings held as issues which require the attention of the Board arise. The Board is responsible for the management of the business of the Company, setting the strategic direction of the Company and establishing the policies of the Company. It is the Directors' responsibility to oversee the financial position of the Company and monitor the business and affairs of the Group, on behalf of the Shareholders, to whom they are accountable. The primary duty of the Directors is to act in the best interests of the Company at all times. The Board also addresses issues relating to internal control and the Company's approach to risk management and has formally adopted an anti-corruption and bribery policy as well as a share dealing code. The Company is led by an effective and entrepreneurial Board, whose role is to promote the long-term sustainable success of the Company, generating value for Shareholders and contributing to wider society. The Board works to ensure that it has the policies, processes, information, time and resources it needs in order to function effectively and efficiently. The Board ensures that the necessary resources are in place for the Company to meet its objectives and measure performance against them. PRESENTATION OF NUMBERS As the Reverse Takeover was completed on 12th February 2025, the income statement for the six months ended 30th June 2025 comprised of the information of the subsidiaries for the period 1st Jan 2025 to 30th June 2025 and for ICFG Limited for the period 12th Feb to 30th June 2025. Please refer to Note 25 for more information. REPORTING CURRENCY CHANGE Reporting Currency Change The Company has decided to change the Group wide reporting (presentation) currency to U.S. Dollars (USD). The reporting currency is primarily used for the presentation of consolidated financial statements and may differ from the functional currencies of individual subsidiaries. There are several key reasons for selecting USD as Group reporting currency: Alignment within the Group and Stakeholders : USD is widely used in global financial reporting and is often the preferred currency for international stakeholders, investors, and financial institutions. The Group operates across multiple jurisdictions with varying currencies, thus aligning with USD enhances transparency and comparability, particularly for users of the financial statements. Simplification of Consolidation Process : From a practical perspective, using a single reporting currency-USD-streamlines the financial consolidation process. It requires currency conversion only at the reporting date exchange rate, simplifying the preparation and analysis of consolidated financials. Consistency and Comparability : Reporting in USD ensures consistency across group entities and enhances comparability over time, especially as the Group expands its global footprint and engage with international markets. Accordingly, the reporting currency of the Group has been changed to USD, effective from the beginning of this reporting period. The Board of Directors formally approved this change on 23 September 2025. CHIEF EXECUTIVE OFFICER'S STATEMENT I am pleased to present the interim report and unaudited financial statements for ICFG Limited (the "Company") for the six months to 30 June 2025. REVERSE TAKEOVER OF ICFG PTE. LTD. AND READMISSION TO TRADING ON THE MAIN MARKET OF THE LONDON STOCK EXCHANGE On 12 February 2025, the Company announced the successful completion of a reverse takeover of ICFG Pte Ltd, an acquisition previously announced on 14 March 2023. ICFG Pte Ltd, with its subsidiaries, is a group of companies with its primary operations in the micro-finance sector, offering loans and investment products to businesses and individuals, primarily in Asia, and has developed technologies, including a mobile application, to sell certain of its product lines. In the H1 2024 comparative period, the Company was a cash shell with no operations. OPERATIONS ICFG Limited, listed on the main market of the London Stock Exchange under the ticker "ICFG," is the holding company of the Group. Through its 80.49% interest in InvesCore NBFI JSC, a leading non-bank financial institution in Mongolia, the Group consolidates a diversified portfolio of subsidiaries across several countries. In Mongolia, the Group owns InvesCore Property LLC (real estate development and management), InvesCore Capital LLC (investment banking and brokerage), AI Lab LLC (fintech and technology development, majority-owned), and Core Development and Engineering LLC (construction and engineering). In the Kyrgyz Republic, it controls Pocket KG LLC (digital lending and payments) and InvesCore CA JSC (microfinance). In Kazakhstan, it operates InvesCore KZ Ltd and InvesCore Finance MFO LLP (microfinance and fintech services), while in Uzbekistan it holds InvesCore UE LLC (investment consulting). Collectively, these businesses extend ICFG's presence across financial services, technology, and property in Mongolia and Central Asia. In the first half of 2025, ICFG expanded its footprint with new branches in Dornogovi Mongolia and Kyrgyzstan, while its Kazakhstan subsidiary improved market ranking and loan growth. The Group advanced its digital transformation through AI-driven credit scoring, big data analytics, and enhanced customer platforms, alongside a strengthened cybersecurity framework. Investment in people and culture also remained a priority, with leadership development and staff engagement initiatives reinforcing the Group's values. In H1 2025, the Company achieved total net operating income of US$25 million, an increase from US$21.9 million in H1 2024. Profit before tax also rose to US$15.3 million, up from US$14.8 million in the same period last year. As part of the reverse takeover process, ICFG Limited issued 177,840,000 new ordinary shares to the former shareholders of ICFG Pte Ltd at a valuation of GB��0.64 per share. This transaction was recognised as a share-based payment expense totaling US$154.9 million. As a result, our total comprehensive income for the period was significantly reduced. KEY ACHIEVEMENTS The first half of 2025 marked several milestones that reflect both operational momentum and growing reputation in the financial services sector. ICFG Group achieved a landmark milestone by becoming the first Mongolian financial institution listed on the London Stock Exchange. This enhances international visibility and also broadens access to global investors. ICFG Group's support for small and medium enterprises advanced with the successful completion of the SME Support Program, jointly executed with Rio Tinto, creating greater financing opportunities for Mongolia's business community. In March 2025, SIBJ Capital acquired Insur LLC, the sole owner of Connect Life LLC. Connect Life LLC will focus on delivering digital-based insurance and pension savings solutions. This strategic investment reflects ICFG Group's commitment to building a presence in the insurance sector, particularly within the InsurTech space, and supports its broader mission to provide accessible financial services through fintech innovation. In May 2025, InvesCore NBFI secured US$5 million in financing from Triple Jump B.V., a Dutch impact investment manager committed to support inclusive and sustainable development in emerging markets. In June 2025, InvesCore NBFI was officially recognised as one of Mongolia's "Top 100 Enterprises" by the Government of Mongolia and Mongolian National Chamber of Commerce and Industry for its achievements and contributions to Mongolia's economic and social developments. In June 2025, InvesCore NBFI successfully secured an additional loan equivalent to US$3 million from the international impact investment Fund EMF Microfinance Fund, AgmvK (EMF). This marks the sixth round of funding from EMF, bringing total financing received from EMF to US$16 million. This milestone reflects the continued confidence of international investors in InvesCore NBFI's growth, market expansion, financial stability, sound corporate governance, and commitment to transparency. CONVERTIBLE LOAN FACILITY On 28 January 2025, the Company received ��200,000 for the last tranches of The Series C Convertible Loans with an interest rate equating to a fixed amount of five per cent. per annum. In total ��1.5m of the Series C Convertible Loan was received by the Company. On 12 February 2025, the Series C Convertible Loan, in addition to two earlier convertible loans announced in 2023, converted into ordinary shares in ICFG Limited in accordance with the terms of these loans. In total convertible loans of ��3.5m plus interest accrued converted into 6,357,116 shares that were issued on completion of the reverse takeover. On 4 December 2024, the Company announced it had obtained a further unsecured committed facility of up to ��2 million via a convertible loan note instrument (the "Series D Convertible Loan"). The Series D Convertible Loan was made available in two tranches over December 2024 and January 2025 an interest rate equating to a fixed amount of ten per cent. per annum. The two tranches (totaling ��2,000,000) were received by the Company. The Series D Convertible loan provides the lender the option to convert the loan principle plus interest into ordinary shares of the Company at the readmission price of 64 pence by 31 December 2025 or repayment be made by the Company in cash. BOARD AND MANAGEMENT CHANGE Mr. Oliver Stuart Fox resigned as Chief Executive Officer ("CEO") of the Company on 19 August 2025. In addition, Mr. Benjamin Proffitt resigned as Chief Financial Officer ("CFO"), a non-Board role on 19 August 2025. Their resignations followed the successful completion of the reverse takeover. As the Company enters a new chapter following its reverse takeover, the Board has made interim appointments from within the Group, selecting individuals with a strong understanding of the business. Ms. Enkhmaral Batkhuyag has been appointed interim Chief Executive Officer and will be appointed as Executive Director, subject to customary due diligence. In addition, Ms. Tserennadmid Ganbaatar has been appointed interim Chief Financial Officer of the Company. FORWARD LOOKING STATEMENT The Company remains confident in its ability to deliver growth in the second half of the year, supported by a resilient balance sheet, diversified revenue streams, and prudent cost and risk management. While macroeconomic challenges persist, including inflationary pressures, interest rate volatility, and foreign exchange fluctuations, the Company believes its strong capital position and disciplined execution provide a solid foundation to navigate the evolving environment. The Company's strategic priorities remain consistent, with ongoing investment in digital capabilities, customer service, and operational efficiency aimed at driving sustainable, long-term value creation. Subject to no material changes in market conditions, the Board anticipates the Group's full-year performance to be broadly in line with current management expectations. On behalf of the Board, I thank the shareholders and advisors of the Company for their continued support. ENKHMARAL BATKHUYAG INTERIM CHIEF EXECUTIVE OFFICER 27 September 2025 DIRECTORS REPORT STATEMENT OF DIRECTORS' RESPONSIBILITIES The Directors are responsible for preparing the interim report and unaudited financial statements, in accordance with applicable law and regulations. The Directors confirm to the best of their knowledge that: �� the condensed set of unaudited financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting' of UK-adopted International Accounting Standards; �� this interim report includes a fair review of the information required by DTR 4.2.7R of the FCA's Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial period and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial period; �� the interim report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties transactions and changes therein); and �� the condensed set of unaudited financial statements, which has been prepared in accordance with the applicable set of accounting standards, gives a true and fair view of the assets, liabilities, financial position and profit or loss as required by DTR 4.2.10R. The Directors are responsible for keeping proper accounting records that are sufficient to show and explain the Company's transactions and which disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that its financial statements comply with The Companies (Guernsey) Law, 2008 (as amended). They are also responsible for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities. PRINCIPAL RISKS AND UNCERTAINTIES The following is a summary of key risks that, alone or in combination with other events or circumstances, the Directors has determined could have a material adverse effect on the Company's business, financial condition, results of operations and prospects. The Company has considered circumstances such as the probability of the risk materialising, the potential impact which the materialisation of the risk could have on the Company's business, financial condition, and prospects, and the attention that management would, on the basis of current expectations, have to devote to these risks if they were to materialise: �� Slower global economic growth, persistent inflationary pressures, and elevated interest rates continue to create uncertainty in capital markets and weigh on consumer and business confidence. These conditions may reduce demand for the Group's products and services, as both households and businesses may limit spending, borrowing, or investment. Inflationary pressures may also drive up the Group's operating costs, including staff expenses, funding costs, and general administrative overheads, while elevated interest rates could further increase the cost of borrowing and reduce margins. If such conditions persist or worsen, they could materially and adversely affect the Group's revenues, profitability, liquidity position and overall financial performance. �� Volatility in foreign exchange markets, particularly between the US dollar, British pound and other operational currencies, may adversely affect the Group's financial performance. As the Group generates revenues and incurs costs across multiple jurisdictions, fluctuations in exchange rates may result in mismatches between revenue and cost bases, adversely affecting reported profitability and cash flows. While hedging strategies may be used, they may not fully mitigate these risks, and adverse movements could materially affect the Group's business, results of operations and prospects. �� The Group faces competition in each business activity and the products and services it offers in microlending and other neo-banking services, investment banking, property management and IT development. Competitors may leverage greater scale, pricing flexibility, brand strength, or more innovative technologies to attract customers, while mergers and acquisitions could further consolidate their market power. If the Group is unable to keep pace with such developments or effectively align its products and services with market needs, its market share, growth, financial condition, and prospects could be materially adversely affected. The Group faces competition in each business activity and the products and services it offers in microlending and other neo-banking services, investment banking, property management and IT development. �� The Group, particularly through InvesCore NBFI, is exposed to counterparty credit risk, where a failure by counterparties to meet their financial obligations could significantly impact its business, financial condition, and results of operations. Large defaults could hinder the Group's ability to achieve its objectives, and exposure is further constrained by regulatory limits set by the respective authorities, which cap single borrower exposure relative to equity for microfinance entities. Additional risks and uncertainties not presently known to the Directors, or that the Directors currently consider to be immaterial, may individually or cumulatively also have a material adverse effect on the Company's business, prospects, results of operations, and financial position. If any or a combination of these risks actually occurs, the business, prospects, results of operations and/or financial position of the Company's business could be materially and adversely affected. We continue to actively monitor these risks and implement appropriate mitigation strategies to protect the Group's financial health and strategic objectives. GOING CONCERN The Directors believe that the Company has adequate financial resources to continue its operational existence for at least 12 months from the date of the approval of these financial statements. Accordingly, the Directors believe that it is appropriate to continue to adopt the going concern basis in preparing the financial statements. Signed on behalf of the Board by: NICOLA JANE WALKER DIRECTOR 27 September 2025 ICFG LIMITED UNAUDITED CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE 6 MONTH PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025 Note Consolidated 30 June 2025 Consolidated 30 June 2024 USD'000 Unaudited USD'000 Unaudited Interest income calculated using EIR 5 41,336 29,594 Interest and similar expense 5 (15,042) (10,688) Net interest income 26,294 18,906 Fee and commission income 6,111 3,676 Fee and commission expense (284) (87) Net fee and commission income 5,827 3,589 Revenue from contracts with customers 552 2,180 Cost of sales (148) (811) Rental income 468 382 Total revenue from contracts with customers 872 1,751 Net trading Income 443 5 Impairment losses on financial assets 6 (9,514) (2,776) Other operating income 7 968 466 Net operating income 24,890 21,941 Employee costs (5,131) (3,815) Depreciation of property, plant and equipment (406) (289) Amortization of right-of-use assets (218) (245) Amortization of intangible assets (108) (90) Other operating expenses ( 3,438 ) (2,697) Share Based Payments on Reverse Acquisition 25 (154,891) - Profit/(Loss) before tax (139,302) 14,805 Income tax expense 8 (4,591) (3,679) Profit/(Loss) for the period (143,893) 11,126 ICFG LIMITED UNAUDITED CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE 6 MONTH PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025 (CONTINUED) Note Consolidated 30 June 2025 Consolidated 30 June 2024 USD'000 Unaudited USD'000 Unaudited Profit for the period attributable to: Owners of the parent company (146,356) 9,077 Non-controlling interests 2,463 2,049 Other comprehensive income: Items not to be classified in profit or loss (net of taxes): - Net change in Fair value of equity investments at FVTOCI (28) 55 Items that will or may be classified in profit or loss (net of taxes): - Exchange gain/(loss) arising from translation of foreign operations 603 481 Other comprehensive income/(loss) for the period, net of taxes 575 536 Other comprehensive income/(loss) for the period attributable to: Owners of the parent company (617) 521 Non-controlling interests 42 15 Total comprehensive income for the period (143,318) 11,662 Total comprehensive income attributable to: Owners of the parent company (145,823) 9,598 Non-controlling interests 2,505 2,064 Earnings per share (USD per share) 9 (0.90) 1.63 The accompanying notes form an integral part of these financial statements ICFG LIMITED UNAUDITED CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2025 Note Consolidated 30 June 2025 Consolidated 31 December 2024 USD'000 Unaudited USD'000 Unaudited Assets Cash and bank balances 10 25,033 40,376 Bank balances held on behalf of customers - 117 Loans and advances to customers 11 235,447 214,849 Financial assets at FVTPL 12 1,065 1,147 Financial assets at FVOCI 12 5,991 6,401 Financial assets at amortised cost 163 - Derivative financial assets 141 - Other financial assets 13 2,641 1,598 Other non-financial assets 2,560 1,311 Inventories 3,130 3,394 Repossessed collateral 780 691 Assets held for sale 2,228 967 Property, plant and equipment 5,691 5,896 Intangible assets 2,285 1,252 Right-of-use assets 1,007 1,048 Deferred tax assets 103 381 Goodwill 82 85 Total assets 288,347 279,513 Liabilities Borrowed funds 15 96,559 94,928 Bonds payable 16 41,426 36,634 Private placement of deposits 17 54,623 59,647 Convertible liability 3,727 - Derivative financial liabilities - 176 Due to customers 10 452 Other financial liabilities 5,865 4,431 Contract liability 288 133 Lease liabilities 1,040 1,096 Other non-financial liabilities 1,036 1,049 Current tax liabilities 2,545 2,361 Deferred tax liabilities 70 - Total liabilities 207,189 200,907 ICFG LIMITED UNAUDITED CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2025 (CONTINUED) Note Consolidated 30 June 2025 Consolidated 31 December 2024 USD'000 Unaudited USD'000 Una udited Equity Share capital 1 8 5,145 5,145 Share premium 148,679 - Merger Reserve 15,331 - Fair value reserve 1,558 1,313 Retained earnings ( 103,669 ) 55, 201 Translation reserve (11,589) (6,345) Total equity attributable to the owners of the parent 55,455 5 5,314 Non-controlling interests 14 25,703 23,29 2 Total equity 81,158 78,606 Total liabilities and equity 288,347 279,513 The accompanying notes form an integral part of these financial statements The financial statements were approved and authorised for issue by the Board of Directors on 27 September 2025 and were signed on its behalf by: Nicola Jane Walker Director ICFG LIMITED UNAUDITED CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE 6 MONTH PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025 Share capital Merger reserve Fair value reserve Translation reserve Retained earnings Total equity attributable to the owners of the parent Non-controlling interest s Total Equity USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 Balance at 31 December 2023 5,145 - 3,213 (6,820) 46,124 47,662 17,818 65,480 Profit for the period - - - - 9,077 9,077 2,049 11,126 Other comprehensive income - - (1,900) 476 - (1,424) 15 (1,409) Total comprehensive income - - (1,900) 476 9,077 7,653 2,064 9,717 Merger - - - - - - - - Addition - - - - - - 3,636 3,636 Dividends paid - - - - - - (227) (227) Total transactions with shareholders - - - - - - 3,409 3,409 Balance at 31 December 2024 (Unaudited) 5,145 - 1,313 (6,344) 55,201 55,315 23,291 78,606 The accompanying notes form an integral part of these financial statements ICFG LIMITED UNAUDITED CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE 6 MONTH PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025 (CONTINUED) Share capital Share premium Merger reserve Fair value reserve Translation reserve Retained earnings Total equity attributable to the owners of the parent Non-controlling interest s Total Equity USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 Balance at 31 December 2024 5,145 - - 1,313 (6,344) 55,201 55,315 23,291 78,606 Profit for the period - - - - - (146,356) (146,356) 2,463 (143,893) Other comprehensive income - - - (80) (2,945) - (3,025) 42 (2,983) FX translation - - - 108 (2,300) (12,694) (14,885) 792 (14,093) Total comprehensive income - - - 28 (5,244) (159,050) (164,266) 3,297 (160,969) Merger - - 15,331 - - 15,331 - 15,331 Issued share capital - 146,209 - - - - 146,209 173 146,382 Addition - 2,470 - 217 - 179 2,866 (48) 2,818 Dividends paid - - - - - - - (1,010) (1,010) Total transactions with shareholders 5,145 148,679 15,331 217 179 164,406 (885) 163,521 Balance at 30 June 2025 (Unaudited) 5,145 148,679 15,331 1,558 (11,589) (103,669) 55,455 25,703 81,158 ICFG LIMITED UNAUDITED CONDENSED STATEMENT OF CASH FLOWS FOR THE 6 MONTH PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025 Note Consolidated 30 June 2025 Consolidated 30 June 2024 USD'000 Unaudited USD'000 Unaudited Cash flows from operating activities Profit for the period (143,893) 11,126 Adjustments: Depreciation of property, plant and equipment 406 289 Amortisation of right-of-use assets 218 245 Amortisation of intangibles 107 90 Gain on sales of property, plant and equipment, net (20) - Loss on write-off of property, plant and equipment, net - - Loss on disposal of property, plant and equipment, net 14 - Gain on sales of repossessed collateral - - Impairment loss/(reversal) on repossessed collateral (25) 248 Loss on sales of non-current asset held for sale - - Unrealised loss from foreign exchange rate differences 178 (61) Interest income from non-customer loans 5 - (294) Interest Expense 5 15,037 10,688 Dividend income (55) (113) Fair value change of financial instruments at FVTPL (318) 26 Fair value change of financial instruments at FVTOCI 20 - Gain on securities trading, net 5 (30) Loss on disposal of foreclosed properties (2) - Impairment losses on financial instruments 12 9,786 2,528 Income tax expense 8 4,591 3,679 NCI 917 - Other non-cash items 263 52 (112,771) 28,473 Changes in operating assets and liabilities: Cash received from customers for pending allocation of securities 114 - Increase in loans to customers 11 (38,206) (28,778) Due from banks with original maturities of more than 3 months 853 - Derivatives - (83) Finance lease receivables - (2,827) Other financial assets 13 (4,171) 3,734 Other non-financial assets (1,542) (1,324) Due to customers (430) - Inventories 113 1,057 Repossessed collateral - (163) Liability at FVTPL - (1,924) Other financial liabilities (422) 1,453 Contract liabilities 164 58 Other non-financial liabilities 257 384 Cash used in operations (156,041) 60 ICFG LIMITED UNAUDITED CONDENSED STATEMENT OF CASH FLOWS FOR THE 6 MONTH PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025 (CONTINUED) Note Consolidated 30 June 2025 Consolidated 30 June 2024 USD'000 Unaudited USD'000 Unaudited Income taxes paid 8 (3,935) (3,211) Interest received on non-customer loans 5 (172) 207 Interest paid 5 (14,186) (7,572) Net cash flows used in operating activities (174,334) (10,576) Cash flows from investing activities Purchases of property, plant and equipment (597) (344) Sales of property, plant and equipment 103 92 Purchases of intangibles (1,217) (60) Purchases of investments 12 (4,747) (7,305) Proceeds from sale of investments 12 4,939 2,142 Proceeds from maturity of investments - 362 Dividends received 55 113 Net cash flows used in investing activities (1,464) (5,000) Cash flows from financing activities Issued share capital 154,599 - Addition to NCI 173 - Dividend paid to NCI (1,010) (227) Proceeds from drawdown of borrowings 15/23 57,184 84,619 Repayment of principal of borrowings 15/23 (52,038) (65,080) Proceeds from private placement of deposit 17 32,248 41,702 Repayment of private placement of deposit 17 (36,097) (36,424) Proceeds from issued bonds 16/23 13,401 7,781 Repayment of issued bonds 16/23 (6,833) (2,942) Principal lease payment (211) (389) Net cash from financing activities 161,416 29,040 Net increase/(decrease) in cash and cash equivalents (14,382) 13,524 Cash and cash equivalents at beginning of period 40,376 24,405 Cash acquired on merger 931 - Exchange movement on cash and cash equivalents (2,177) (312) Cash and cash equivalents at end of period 24,748 37,617 The accompanying notes form an integral part of these financial statements ICFG LIMITED NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS FOR THE 6 MONTH PERIOD FROM 1 JANUARY 2025 TO 30 JUNE 2025 1. Reporting entity Please see the audited historical financial information of the Group for details on the reporting entity and group companies. 2. Basis of preparation The Interim Condensed Consolidated Financial statements are presented in United States Dollars ("USD" or "US$"). The functional currency of the parent Company (ICFG Limited) is GBP. This Interim Condensed Consolidated Financial Statements has been prepared in accordance with IAS 34 as issued by the International Accounting Standards Board. They do not include all of the information required in annual financial statements in accordance with IFRS, and should be read in conjunction with the consolidated historical financial information for the year ended 31 December 2024. As at 30 June 2025, the Group's total asset amount was USD ('000) 288,347 and the total liability amount was USD ('000) 207,189. The Group is in a net asset position. The Interim condensed consolidated financial statements have been prepared on a going concern basis which contemplates continuity of normal business activities and the realization of assets and settlement of liabilities in the ordinary course of business. The directors have determined that it is appropriate to prepare the Interim condensed consolidated financial statements on a going concern basis taking into consideration the financial position of the Group for the period ended 30th June 2025. Changes in accounting policies (a) New standards, interpretations and amendments adopted from 1 January 2025 The following amendments are effective for the period beginning after 1 January 2025: - Lack of Exchangeability (Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates) - IFRS Practice Statement - Management Commentary (Voluntary adoption from 23 June 2025) These amendments to various IFRS Accounting Standards are mandatorily effective for reporting periods beginning on or after 1 January 2025. The adoption of the above amendments did not have a material impact on the Group. (b) New standards, interpretations and amendments not yet effective There are a number of amendments to the standards, and interpretations which have been issued by the IASB that are effective in future accounting periods that the Group has decided not to adopt earlier. The following amendments are effective for the period beginning 1 January 2025: - IFRS 18 - Presentation and Disclosure in Financial Statements - FRS 19 - Subsidiaries without Public Accountability: Disclosures - Amendments to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments - Annual Improvements to IFRS - Volume 11 - Contracts Referencing Nature-dependent Electricity The Group does not anticipate that any other standards issued by the IASB, which are yet to become effective, will have a material impact on the Group. Please see the audited historical financial information of the Group for further details on the basis of preparation of this interim historical financial information. As the Reverse Takeover was completed on 12th February 2025, the income statement for the six months ended 30th June 2025 comprised of the information of the subsidiaries for the period 1st Jan 2025 to 30th June 2025 and for ICFG Limited for the period 12th Feb to 30th June 2025. Please refer to Note 25 for more information. 3. Critical accounting estimates and judgements The Group relies on certain estimates and assumptions concerning the future. Estimates and judgements are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions. The estimates and assumptions taken in production of these Interim Condensed Consolidated Financial Statements have been applied consistently with the approach taken for the audited historical financial information of the Group. Please see the audited historical financial information of the Group for further details on the basis of critical accounting estimates and judgements made in the preparation of this Interim Condensed Consolidated Financial Statements. 4. Accounting policies Please see the audited historical financial information of the Group for details on the accounting policies applied in the preparation of this Interim Condensed Consolidated Financial. 5. Net interest income 30 June 2025 30 June 2024 Interest income calculated using the EIR: USD'000 USD'000 Loans and advances to customers 40,728 29,299 Financial investments 446 119 Term deposit at bank 120 141 Current account at bank 42 35 Total interest income 41,336 29,594 Interest and similar expense: Private placement of trust deposits (4,646) (3,695) Borrowed funds (6,629) (4,527) Issued bonds (3,579) (1,938) Interest expense on financial liabilities at FVTPL - (159) Derivative financial instruments (53) (265) Accretion of interest on lease liabilities (135) (103) Other financing costs - (1) Total interest expense (15,042) (10,688) Net interest income 26,294 18,906 Interest income split by geographical markets is as follows: 30 June 2025 30 June 2024 By primary geographic markets: USD'000 USD'000 Mongolia 38,270 27,900 Other Asian countries 3,066 1,694 Total interest income 41,336 29,594 6. Impairment losses on financial assets 30 June 2025 30 June 2024 USD'000 USD'000 Loans and advances to customers (8,056) (2,609) Repayment of written-off loans 272 134 Other financial assets (1,730) (301) Total (9,514) (2,776) 7. Other operating income 30 June 2025 30 June 2024 USD'000 USD'000 Dividend income 55 113 Reversal of impairment of other real estate 25 - Gain on sales of property, plant and equipment, net 20 - Gain on sales of assets held for sale 2 - Property management income 182 144 Cleaning and maintenance services income 63 44 Other income 621 165 Total other operating income 968 466 8. Income tax The income tax expense for the periods ended 30 June 2025 and 2024 is: 30 June 2025 30 June 2024 Income tax expense USD'000 USD'000 Current tax expense Current tax on profits for the period 4,244 3,639 Deferred tax expense Deferred tax charge 347 40 Total income tax 4,591 3,679 A reconciliation of income tax expense applicable to profit before tax for the periods ended 30 June 2025 and 2024 are as follows: 30 June 2025 30 June 2024 USD'000 USD'000 Loss before tax (139,302) 14,805 Income tax expenses at statutory rate of 25% based on net profit before taxation (34,825) 3,883 Effect of lower tax rate on profit below MNT 6 billion 216 (265) Effect on expenses that are non-deductible 290 (63) Different tax rate applied in overseas jurisdiction (90) (278) Effect on income not taxable - 431 Effect on income subject to flat 5% and 10% 38,991 (29) Income tax credit 9 - Tax expense 4,591 3,679 Movements in the income tax payable for the reporting period is as follows: 30 June 2025 31 Dec 2024 USD'000 USD'000 Balance at 1 January 2,872 2,904 Balance acquired on merger - - Current tax expense for the period 4,233 3,639 Income taxes paid (3,935) (3,211) Tax reduction 9 - Foreign exchange on translation (634) (460) Balance at the reporting period 2,545 2,872 During the periods ended June 2025 and 2024, the Group was subject to incremental tax rates on certain bands of profit below the minimum 15% level mandated by the OECD's Pillar Two Model Rules. However, due to the application of higher income tax rates on certain bands of profit within the tax jurisdictions in which the Group operates, the effective rate of tax paid by the Group on its taxable profit exceeds this 15% threshold. As a consequence, the provisions of the OECD Pillar Two Model Rules are not considered to have any impact on the Group's tax exposures. As at 1 January 2025 As at 30 June 2025 USD'000 USD'000 Deferred tax assets/(liabilities) Revaluation of financial investments measured at FVOCI (82) (58) Fair value change in derivatives - 32 Timing difference from loan interest 189 210 Lease liabilities 2 2 Cash and cash equivalents 2 2 Other financial assets 45 - Trade payable 225 (12) Right of use assets 2 2 Property, plant and equipment (2) (2) Others - (134) FCTR - (9) Gross deferred tax assets 381 103 Gross deferred tax liabilities - (70) Net deferred tax assets 381 33 As at 1 January 2024 As at 31 December 2024 USD'000 USD'000 Deferred tax assets/(liabilities) Revaluation of financial investments measured at FVOCI 24 (82) Timing difference from loan interest 141 189 Timing difference in revenue recognition 3 - Lease liabilities 22 2 Cash and cash equivalents 7 2 Other financial assets - 45 Trade payable - 225 Amortization of intangible assets (252) - Right of use assets (17) 2 Property, plant and equipment - (2) FCTR - - Gross deferred tax assets 28 381 Gross deferred tax liabilities (101) - Net deferred tax (liabilities)/assets (72) 381 9. Earnings per share (a) Basic Earnings per share is calculated based on the net loss attributable to shareholders after accounting for the share-based payment expense arising from the reverse acquisition, in accordance with IFRS 2. Basic earnings per share is calculated by dividing the loss attributable to equity holders of the Group by the weighted average number of ordinary shares in issue during the period. 30 June 2025 30 June 2024 USD'000 USD'000 Profit from continuing operations attributable to equity holders of the Group (143,893) 11,126 Weighted average number of ordinary shares in issue 160,197,580 6,814,384 Basic and fully diluted loss per share from continuing operations - USD (0.90) 1.63 As at 30 June 2025 and 2024 there were no potentially dilutive instruments in issue for consideration in arriving at the fully diluted loss per share. 10. Cash and bank balances 30 June 2025 31 December 2024 USD'000 USD'000 Cash in hand 43 - Current account at bank 24,551 36,170 Demand deposits - - Term deposits 441 1,427 Accumulated interest receivable 2 24 Total cash and bank balances 25,037 37,621 Less: Allowance for impairment losses (4) (4) Net cash and bank balances 25,033 37,617 Less: Deposit with original maturity more than three months (289) - Cash and cash equivalent 24,744 37,617 Summary of the allowance for impairment losses on cash and cash equivalent balances with other banks is as follows: 30 June 2025 31 December 2024 USD'000 USD'000 Current account at bank (4) (4) Deposits at bank - - Total allowance for impairment losses (4) (4) Movement of provision for impairment of other receivables is as follows: 30 June 2025 31 December 2024 USD'000 USD'000 Balance at 01 January (4) (5) Net charge/(reversal) for the period - 1 Balance at reporting period (4) (4) As of 30 June 2025 and 31 December 2024, the Group's cash and cash equivalent balances denominated in various currencies are as follows: 30 June 2025 31 December 2024 USD'000 USD'000 Mongolian tugrugs (MNT) 21,114 28,796 Japanese Yen (JPY) 496 787 United States Dollar (USD) 1,215 6,878 Kyrgyzstani Som (KGS) 1,341 399 Kazakhstani Tenge (KZT) 350 440 Uzbekistani Som (UZK) 162 177 Euro (EUR) 299 140 British Pound Sterling (GBP) 32 - Singapore Dollar (SGD) 24 - Total 25,033 37,617 11. Loans and advances to customers Balance of loans and advances - by product type: 30 June 2025 31 December 2024 USD'000 USD'000 Consumer loan 12,673 16,524 Digital loan 86,245 72,522 Business loan 60,377 81,336 Vehicle loan 91,587 54,568 Credit card loan - 170 Total loans and advances to customers 250,882 225,119 Less: Deferred loan origination fees (1,319) (993) Less: Allowances for loans and advances to customers (14,116) (9,277) Net loans and advances to customers 235,447 214,849 * Investments in finance leases (lease receivables) were reclassified to Loan and advances to customers at the year ended 31 December 2024. The split of the expected credit loss allowance by the main product type is as follows: Consumer loans Digital Business loan Vehicle loan Credit card loan Total USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 Balance at 1 January 2025 1,112 1,593 5,751 821 - 9,277 Increased during the period 508 4,259 202 1,281 - 6,250 Write-off - (1,792) (867) (55) - (2,714) Foreign exchange movements 107 522 429 245 - 1,303 Balance at 30 June 2025 1,727 4,582 5,515 2,292 - 14,116 Balance at 1 January 2024 795 1,618 2,316 436 2 5,167 Increased during the period 310 404 3,442 374 (2) 4,528 Write-off - - - - - - Foreign exchange movements 7 (429) (7) 11 - (418) Balance at 31 December 2024 1,112 1,593 5,751 821 - 9,277 Balance of loans and advances - by stage: 30 June 2025 31 December 2024 USD'000 USD'000 Gross carrying amount Stage 1 203,366 202,635 Stage 2 20,545 10,832 Stage 3 25,652 10,659 249,563 224,126 Less: Allowance for impairment losses Stage 1 (1,575) (673) Stage 2 (2,368) (2,291) Stage 3 (10,173) (6,313) (14,116) (9,277) Provision for impairment of loan receivable The Group applies the IFRS 9 general three-stage approach to measure expected credit losses. To measure expected credit losses on a collective basis, loan receivables are grouped based on similar credit risk profile and aging. Movement in the impairment allowance of loan receivables is as follows: 30 June 2025 31 December 2024 USD'000 USD'000 At 1 January (9,277) (5,167) Increased during the period (6,250) (4,528) Written off 2,714 - Foreign exchange movement (1,303) 418 At Reporting period (14,116) (9,277) Movement between stages of loan receivables is as follows: Stage 1 Stage 2 Stage 3 Total USD'000 USD'000 USD'000 USD'000 At 1 January 2025 201,962 8,541 4,346 214,849 Issued during the period 192,643 - - 192,643 Repaid during the period (150,642) (1,712) 219 (152,135) Movement to Stage 1 1,313 (1,066) (247) - Movement to Stage 2 (17,829) 17,981 (152) - Movement to Stage 3 (11,492) (2,721) 14,213 - Foreign exchange movement (11,146) (1,239) 7,275 (5,110) 204,809 19,784 25,654 250,247 - Change in interest receivables 244 889 805 1,938 Fee deferral (1,213) (57) (49) (1,319) Impairment allowance (1,575) (2,368) (10,173) (14,116) Foreign exchange movement (474) (71) (758) (1,303) At 30 June 2025 201,791 18,177 15,479 235,447 Stage 1 Stage 2 Stage 3 Total USD'000 USD'000 USD'000 USD'000 At 1 January 2024 128,744 4,461 4,180 137,385 Issued during the period 302,660 - - 302,660 Repaid during the period (207,126) (2,773) (3,634) (213,533) Movement to Stage 1 706 (539) (167) - Movement to Stage 2 (8,006) 8,074 (68) - Movement to Stage 3 (8,383) (1,065) 9,448 - Foreign exchange movement (7,136) 2,324 (1,013) (5,825) 201,459 10,482 8,746 220,687 Change in interest receivables 1,556 255 824 2,635 Fee deferral (953) (10) (30) (993) Impairment allowance (673) (2,291) (6,313) (9,277) Foreign exchange movement 573 105 1,119 1,797 At 31 December 2024 201,962 8,541 4,346 214,849 The Group applies the IFRS 9 general three-stage approach to measure expected credit losses. To measure expected credit losses on a collective basis, loan receivables are grouped based on similar credit risk profile and aging. ECL is estimated by using seven periods of historical data and current period data. The historical probability of default is calculated by considering both actual and forward-looking macroeconomic factors. The Group incorporates factors such as GDP growth, fluctuations in coal and copper prices, and the policy rate of the Central Bank, which are deemed to primarily impact expected credit losses. The carrying value of the loans and advances approximates their fair value. Movement of expected credit losses movement between stages is as follows: Stage 1 Stage 2 Stage 3 Total USD'000 USD'000 USD'000 USD'000 Balance at 1 January 2025 673 2,291 6,313 9,277 Issued during the period 2,610 928 6,234 9,772 Repaid during the period (941) (1,057) (1,524) (3,522) Movement to Stage 1 348 (70) (278) - Movement to Stage 2 (284) 371 (87) - Movement to Stage 3 (1,305) (166) 1,471 - Write-off - - (2,714) (2,714) Foreign exchange 474 71 758 1,303 Balance at 30 June 2025 1,575 2,368 10,173 14,116 Stage 1 Stage 2 Stage 3 Total USD'000 USD'000 USD'000 USD'000 Balance at 1 January 2024 1,561 382 3,224 5,167 Issued during the period 260 2,117 3,857 6,234 Repaid during the period (919) (185) (602) (1,706) Movement to Stage 1 (387) 167 220 - Movement to Stage 2 53 (223) 170 - Movement to Stage 3 87 28 (115) - Write-off - - - - Foreign exchange 18 5 (441) (418) Balance at 31 December 2024 673 2,291 6,313 9,277 12. Financial investments Financial assets at FVOCI: 30 June 2025 31 December 2024 USD'000 USD'000 Debt instruments MIK Bond - - Golomt Bond 5,414 5,335 Equity Securities Listed Golomt Bank JSC 557 706 Xac Bank JSC 5 342 Khan Bank JSC 15 18 Total 5,991 6,401 FVTOCI debt instruments are held within the business model for the purposes of both collecting contractual cash flows and selling financial assets. Contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial assets at FVTPL: 30 June 2025 31 December 2024 USD'000 USD'000 Debt instruments Listed InvesCore Global Q ETF LLC 16 3 MGMTGE 11.5% bond - 304 ABS 117 39 GLMTMO 1105/20/27 bond - 14 Omni 2 112 - Unlisted InvesCore A Bond 2.9 - 148 Active Bond 2.2 28 29 Pocket Bond 1.6 - 15 Pocket Bond 1.1 - 6 Unet Bond 1.3 - 1 Equity Securities Listed stocks Golomt Bank - 71 Xac Bank - 7 QQQ 17JAN25 460P options - 1 MGL Aqua JSC 483 231 APU 5 6 TDB 50 61 Q Pay 130 64 Private fund units InvesCore Ri Cycle Private Fund LLC 124 130 Interest Receivables - 17 Total 1,065 1,147 13. Other financial assets 30 June 2025 31 December 2024 USD'000 USD'000 Due from borrowers 2,678 688 Due from related parties 104 390 Due from employees 84 317 Receivables related to underwriting services - - Other receivables 1,749 544 Total other financial assets 4,615 1,939 Less: Allowance for impairment losses (1,974) (341) Net other financial assets 2,641 1,598 Receivables from borrowers include direct expenses incurred during the transfer of collateral assets to the Group according to the fiduciary contract, such as legal expenses and taxes related to collateral assets. Movement in the impairment allowance for these receivables is as follows: 30 June 2025 31 December 2024 USD'000 USD'000 As at 1 January (341) (206) Impairment loss for the period (1,695) (199) Write-off during the period 13 64 Foreign exchange translation 44 - As at reporting period (1,974) (341) 14. Non-controlling interests InvesCore NBFI JSC, a subsidiary 80.69% owned by the Group (2024: 80.82%), AI Lab LLC, a subsidiary 60% owned by the Group (2024: 60%), and InvesCore CA MFC, a subsidiary 70.99% owned by the Group (2024: 59.39%) have significant non-controlling interests (NCI). Summarized financial information for InvesCore NBFI JSC and AI Lab LLC, before intra-group eliminations, is presented below along with the amounts attributable to NCI: For the period ended 30 June 2025 31 December 2024 USD'000 USD'000 Statement of Comprehensive income: Interest income calculated using the EIR 41,319 29,502 Interest and similar expense (14,986) (10,551) Net interest income 26,333 18,951 Fee and commission income 5,507 3,105 Fee and commission expense (126) (57) Net fee and commission income 5,381 3,048 Revenue from contracts with customers 793 499 Total revenue from contracts with customers 793 499 Net trading income 313 - Impairment losses on financial instruments (9,786) (2,780) Other operating income 457 98 Total operating income 23,491 19,816 Employee costs (3,567) (2,818) Depreciation of property, plant and equipment (323) (204) Amortization of right-of-use assets (227) (171) Amortization of intangible assets (117) (94) Other operating expenses (2,614) (2,082) Profit before tax 16,643 14,447 Tax expense (4,455) (3,542) Profit for the period 12,188 10,905 Profit attributable to NCI 2,463 2,049 Other comprehensive income allocated to NCI 42 15 Total comprehensive income attributable to NCI 2,505 2,064 Dividends paid to NCI (1,010) (227) Statement of cash flows: Cash flows to operating activities (19,446) (11,785) Cash flows to investing activities (498) (5,269) Cash flows from financing activities 6,575 30,656 Net cash flow (13,369) 13,602 30 June 2025 31 December 2024 USD'000 USD'000 Statement of financial position: Assets: Cash and bank balance 24,453 37,127 Loans and advances to customers 235,426 161,921 Other financial assets 2,092 1,659 Other non-financial assets 2,161 985 Repossessed collateral 780 217 Property, plant and equipment 4,042 3,294 Intangible assets 2,564 1,438 Right-of-use assets 1,007 1,459 Deferred tax assets 91 12 Liabilities: Borrowed funds 95,236 77,944 Bond payables 41,426 24,769 Current tax liabilities 2,452 2,675 Other financial liabilities 57,895 8,128 Contract liabilities 22 169 Other non-financial liabilities 553 1,164 Lease liabilities 1,068 1,187 Accumulated non-controlling interests 25,740 21,090 15. Borrowed funds At 30 June 2025 At 31 December 2024 Book value Fair value Book value Fair value USD'000 USD'000 USD'000 USD'000 From banks - Secured 44,616 43,135 43,358 44,116 - Unsecured 11,826 12,158 13,630 11,317 From financial institutions - Secured 1,159 1,159 - - - Unsecured 36,545 29,566 34,879 37,913 From individuals - unsecured 18 13 19 21 From corporates- unsecured 966 966 1,329 1,329 Accrued interest payable 1,811 1,811 2,091 2,091 96,941 88,808 95,306 96,787 Less: Deferred fee expense (382) (382) (378) (378) Total borrowed fund, net 96,559 88,426 94,928 96,409 The currency profile of the Group 's borrowed funds is as follows: 30 June 2025 31 December 2024 USD'000 USD'000 MNT 66,036 52,407 USD 21,608 35,976 KGS 7,207 5,862 JPY - - EUR 544 537 SGD 1,164 146 Total 96,559 94,928 30 June 2025 31 December 2024 USD'000 USD'000 Golomt Bank JSC (i) 34,597 27,213 MKK Frontiers LLC (ii) 2,520 1,933 Bogd Bank JSC (iii) 1,957 4,098 Trade and Development Bank JSC (iv) - 794 Xac Bank JSC (v) 3,345 5,280 Global gender SF (vi) 3,577 4,497 Triple Jump B.V. (hedged by MFX) (vii) 4,995 - Khan Bank JSC (viii) 2,790 2,921 ResponsAbility SICAV (MNT) (ix) 994 1,248 Khuvsgul Geology JSC (x) 558 780 Individual Kim (xi) 18 19 Responsibility Global Micro Fund (MNT) (xii) 994 1,248 Bridge Japan LLC (xiii) 520 520 European Bank for Reconstruction and Development (EBRD) (xiv) 2,800 3,874 Asian Development Bank (xv) 4,916 6,670 EMF Microfinance Fund Agmvk (xvi) 5,916 7,871 Microfinance Enhancement Facility SA, SICAV-SIF (xvii) 3,330 3,331 M Bank JSC (xviii) 837 1,753 Enabling Qapital Ltd. (xix) 408 716 Bank of Asia CJSC (xx) 305 417 FinanceCreditBank OJSC (xxi) 1,223 1,227 Khugjliin Khurdasguur Khujirt Fund (xxii) - 29 Arig Bank LLC (xxiii) 1,395 1,461 Blue Orchard Microfinance Fund (xxiv) 12,562 12,991 Lendahand (xxv) 1,250 1,043 Baitushum Bank OJSC (xxvi) 525 574 OJSC O Bank (xxvii) 1,640 561 IVCH SG Pte Ltd (xxviii) 1,159 146 Accrued interest payable 1,810 2,091 Total borrowed fund 96,941 95,306 Less: Deferred fee expense (382) (378) Total borrowed fund, net 96,559 94,928 The Group did not default on principal or interest payments with regard to all liabilities as of 30 June 2025 and 31 December 2024. As of 30 June 2025, the Group is fully compliant with contractual covenants imposed by the lenders. Fixed rates of interest ranges from 5% to 24% and floating rate of interest range from 10% to 10.3%. Lenders Currency Principal amount disbursed Principal amount outstanding Interest type Type of loan Payment USD'000 USD'000 (i) Golomt Bank JSC MNT 8,371 8,375 Fixed Secured Interest and principal are payable on monthly basis. Golomt Bank JSC MNT 20,926 21,045 Fixed Unsecured Interest and principal are payable at the end of the term. Golomt Bank JSC USD 173 173 Fixed Secured Interest and principal are payable on semi-annual basis. Golomt Bank JSC MNT 7,115 5,042 Fixed Secured Interest and principal are payable at the end of the term. (ii) MKK Frontiers LLC MNT 2,401 2,520 Fixed Secured Interest and principal are payable on monthly basis. (iii) Bogd Bank JSC MNT 8,785 1,957 Fixed Unsecured Interest and principal are payable on monthly basis. (v) Xac Bank JSC MNT 8,820 3,345 Fixed Secured Interest and principal are payable on monthly basis. (vi) Global gender SF MNT 4,293 3,577 Floating Unsecured To be repaid in 6 equal installments. (vii) Triple Jump B.V. (hedged by MFX) USD 4,995 4,995 Fixed Unsecured To be repaid in 6 equal installments. (viii) Khan Bank JSC MNT 17,020 2,790 Fixed Secured Interest and principal are payable on monthly basis. (ix) Responsibility SICAV-MNT MNT 1,192 994 Floating Unsecured To be repaid in 6 equal installments. (x) Khuvsgul Geology JSC MNT 647 558 Fixed Unsecured The next payment is due on 28 Oct 2024. (xi) Individual Kim MNT 18 18 Fixed Unsecured Interest and principal are payable at the end of the term. (xii) Responsibility Global Micro fund-MNT MNT 1,192 994 Floating Unsecured To be repaid in 6 equal installments. (xiii) Bridge Japan LLC USD 517 520 Fixed Unsecured Interest is due annually and principal amount is due at the end of the term. (xiv) European Bank for Reconstruction and Development MNT 2,404 827 Fixed Unsecured To be repaid in 6 equal installments. European Bank for Reconstruction and Development MNT 2,359 1,973 Fixed Unsecured To be repaid in 6 equal installments. (xv) Asian Development Bank USD 1,998 771 Floating Unsecured To be repaid in 6 equal installments. Asian Development Bank USD 3,996 2,081 Fixed Unsecured To be repaid in 6 equal installments. Asian Development Bank MNT 3,823 2,064 Fixed Unsecured To be repaid in 6 equal installments. (xvi) EMF Microfinance Fund Agmvk USD 5,001 5,916 Fixed Unsecured To be repaid in 6 equal installments. (xvii) Microfinance Enhancement Facility SA, SICAV-SIF USD 5,031 3,330 Fixed Unsecured Interest amount is payable semiannually on June 30 and December 31 of each year, beginning on June 30, 2024. (xviii) M Bank JSC MNT 3,348 837 Fixed Secured Interest and principal are payable on monthly basis. (xix) Enabling Qapital Ltd. KGS 508 408 Fixed Unsecured Interest and principal are payable on monthly basis. (xx) Bank of Asia CJSC KGS 676 305 Fixed Unsecured Interest and principal are payable at the end of the term. (xxi) FinanceCreditBank OJSC KGS 1,342 1,223 Fixed Unsecured Interest and principal are payable at the end of the term. (xxiii) Arig Bank LLC MNT 1,471 1,395 Fixed Secured Interest is due monthly and principal amount is due at the end of the term. (xxiv) BlueOrchard Microfinance Fund USD 12,320 12,562 Floating Unsecured Interest is due semiannually and principal amount is due per the repayment schedule. (xxv) Lendahand USD 1,862 1,250 Fixed Unsecured To be repaid in 6 equal installments. (xxvi) Baitushum Bank OJSC KGS 572 525 Fixed Secured Interest and principal are payable on monthly basis. (xxvii) OJSC O Bank KGS 2,858 1,640 Fixed Secured Interest and principal are payable on monthly basis. (xxviii) IVCH SG PTE Ltd SGD 1,159 1,159 Fixed Unsecured No fixed repayment term. Maturity of facility is 31st Dec 2025 Please see note 23 for a reconciliation in movements of borrowed funds in the periods. Please see note 22 for a maturity analysis of borrowed funds at the reporting dates. 16. Bonds payable At 30 June 2025 At 31 December 2024 Book value Fair value Book value Fair value USD'000 USD'000 USD'000 USD'000 Type of bond Listed bonds 2,001 2,001 2,010 2,010 Non-listed bonds 38,890 38,890 34,093 34,093 Accrued interest payable 844 844 803 803 41,735 41,735 36,906 36,906 Less: Deferred fee expense (309) (309) (272) (272) Total bonds payable 41,426 41,426 36,634 36,634 The currency profile of the Group 's bonds payable is as follows: 30 June 2025 31 December 2024 USD'000 USD'000 MNT 39,425 34,624 KGS 2,001 2,010 Total 41,426 36,634 30 June 2025 31 December 2024 USD'000 USD'000 Listed bond issued by InvesCore CA MFC (i) 2001 2,010 Non-listed bond issued by InvesCore NBFI JSC (ii) 16,016 12,767 Non-listed bond issued by InvesCore Wallet (iii) 8,923 6,716 Non-listed bond issued by InvesCore ABS (iv) 13,951 14,607 Accrued interest payable 844 803 41,735 36,906 Less: Deferred fee expense (309) (272) Total bonds payable 41,426 36,634 Bond issue name Currency Outstanding balance USD'000 (i) Listed bond issued by InvesCore CA MFC KGS 2,001 (ii) Bond-INVC MNT 1,869 (ii) Bond-INVD MNT 3,628 (ii) Bond-INVE MNT 10,519 (iii) IW Bond MNT 8,923 (iv) ABS MNT 13,951 (vii) Accumulated interest payable 844 All bonds carry a fixed interest rate of interest and range between 17% - 19% per annum and are unsecured. Please see note 23 for a reconciliation in movements of bonds payable in the period. 17. Private placement of trust deposits At 30 June 2025 At 31 December 2024 Book value Fair value Book value Fair value USD'000 USD'000 USD'000 USD'000 Individuals 33,405 33,405 42,655 42,655 Corporates 16,459 16,459 13,303 13,303 Accrued interest payables 4,759 4,759 3,689 3,689 Total private placement of trust deposits 54,623 54,623 59,647 59,647 The currency profile of the Group 's private placement of trust deposits is as follows: Interest rate 30 June 2025 31 December 2024 USD'000 USD'000 MNT 10%-22% 52,231 57,526 USD 3%-8.5% 2,254 185 JPY 5% 138 1,936 Total 54,623 59,647 18. Share capital On 12 February 2025 the Company has entered into the acquisition of the entire issued and paid-up share capital of ICFG Pte Ltd together with its subsidiaries by way of issuing 177,840,000 new Ordinary shares in the Company to the previous shareholders of ICFG Pte Ltd at valuation of 0.64 pence per share. Also coincident with the allotment of the consideration shares and readmission of the Company to the London Stock Exchange, the Company issued 6,357,116 new Ordinary Shares to the holders of the A, B and C convertible notes in full conversion of amounts due (principal and interest) of USD 4,557,186 as at the 12 February 2025. The Group's share capital as of 30 June 2025 consists of 203,957,116 common shares and 31 December 2024 consists of 6,814,384 common shares with a par value of GBP 0.59 (USD 0.80) each. About the Group's shareholders are provided below: 30 June 2025 31 December 2024 Number of shares Ordinary shares Share Premium Number of shares Share capital USD'000 USD'000 USD'000 At 1 January 19,760,000 5,145 2,470 6,814,384 5,145 Capital increase 184,197,116 - 146,209 - - merger - - - - - At reporting period 203,957,116 5,145 148,679 6,814,384 5,145 The opening number of shares as at 1 January 2025 reflects the legal acquirer's share structure following the reverse acquisition completed on 12 February 2025. Comparative figures as at 31 December 2024 reflect the accounting acquirer's share capital prior to the transaction. 19. Related party transactions (i) Identifying related parties Transactions and outstanding balances between fully consolidated entities are eliminated. Transactions between ICFG Limited and the Group meet the definition of related party transactions. They are disclosed separately in the Group's consolidated financial statements. R elated part y Country of incorporation Relationship Type of main transactions ICFG LIMITED Guernsey Parent company Borrowed fund Related parties of the Group that are not its subsidiaries as follows: - associates (entities that are under the significant influence of the Group; however, there were no associates in both 2025 and 2024); - joint ventures (entities in which SIBJ Capital LLC shares control with another party; however, there were no joint ventures in both 2025 and 2024); - key management personnel and directors; and - entities over which key management personnel and directors or their close family members have solely or jointly a direct or indirect significant influence (collectively referred to as other related parties). Key management personnel and directors are those people who have authority and responsibility for planning, directing, and controlling the activities of the Group, directly or indirectly. The Group considers the members of the Board of Directors (the BoD) and C-suites of the parent and its subsidiaries to be key management personnel and directors for the purposes of IAS 24. Other related parties of the Group with which there have been transactions or outstanding balances in the period of report are identified as follows: R elated part y Country of incorporation Relationship Transactions iCore Partners LLC Mongolia Key management personnel has joint control over Loans and advances InvesCore Leasing LLC Mongolia Abico LLC Mongolia Sales and purchases of goods and services InvesCore Asset Management LLC Mongolia Mongolia Talent Network LLC Mongolia InvesCore Japan Co., Ltd Japan IC Reit LLC Mongolia Finberry LLC Mongolia Transfers of intangible assets Amar Daatgal LLC Mongolia Key management personnel has control over Sales and purchases of goods and services Business Media LLC Mongolia Datacom LLC Mongolia Mongolia Investment Rating Agency LLC Mongolia Corex LLC Mongolia Key management personnel is a member of key personnel Sales and purchases of goods and services The Group receives management advisory services from its parent, with the associated considerations paid, as disclosed below. 2025 2024 USD'000 USD'000 Transactions with the shareholders Investment received in share capital - - Additionally, the Group provides non-banking services to its subsidiaries, key management personnel and directors, and other related parties, including the provision of loans, accepting trust deposits and purchase of fixed-income securities. Allowances for impairment were recognized in respect of loans to other related parties. Group companies also provide investment banking services, facility management services, property leasing services, and IT automation services on an intra-group basis and to other related parties. All these transactions are conducted under prevailing market terms, similar to third-party transactions. ii) Transactions with related parties As the transactions are not individually material, the amounts included in the Group's consolidated Financial statements, aggregated by category or nature of transactions, for the periods ended 30 June 2025 and 31 December 2024 are as follows: Sales to related parties Purchases from related parties 2025 2024 2025 2024 USD'000 USD'000 USD'000 USD'000 Other related parties: iCore Partners LLC 11 2 -�� -�� InvesCore Leasing LLC 9 10 -�� -�� InvesCore Asset Management LLC - 14 -�� -�� Mongolia Talent Network LLC 27 44 8 46 IC Reit LLC 8 - - -�� -�� Corex LLC 4 9 -�� -�� Blockchain Solution LLC 7 44 -�� -�� Land and House LLC 127 367 -�� -�� MGL AquaJSC - 210 Directors and key management personnel of the Company - - 107 14 Total 193 700 115 60 Total remuneration awarded to key management personnel and directors, as shown below, represents salaries, bonuses, and employer contributions to social and health insurance received during the period, as well as awards made as part of the latest remuneration decisions related to the period. The Group did not award any other long-term benefits or share-based payments. Figures are provided for the period that individuals met the definition of key management personnel and directors (2025H1: 36), and (2024H1: 42) as outlined below: 30 June 2025 30 June 2024 USD'000 USD'000 Short-term benefit: K ey management personnel Directors K ey management personnel Directors Salary and bonuses 546 84 433 184 Employer contribution to social and health insurance 70 11 53 5 616 95 486 189 iii) Outstanding balances of transactions with other related parties At 30 June and 31 December, the outstanding balances of transactions with other related parties are follows: Notes 30 June 2025 31 December 2024 USD'000 USD'000 Amount due to related parties Directors 304 284 Key management personnel 71 66 iCore Partners LLC 2 2 InvesCore Asset Management LLC - 1 InvesCore Leasing LLC 2 2 IC REIT LLC - - Mongolia Talent Network LLC 3 2 InvesCore Japan Co., Ltd 454 452 Corex LLC 1 1 Blockchain Solution LLC 4 28 Total amount due to related parties 841 838 Notes 30 June 2025 31 December 2024 USD'000 USD'000 Amount due from related parties Key management personnel 25 79 InvesCore Japan Co., Ltd 179 178 ICore Partners LLC 9 3 InvesCore Leasing LLC - 1 Mongolia Talent Network LLC 11 8 Finberry LLC 9 10 Corex LLC - 1 Blockchain Solution LLC - 3 Land and House LLC 179 124 Colo Thinking LLC - 1 Total receivables due from related parties 19 412 408 20. Financial instruments - Risk management Risk management The Group is exposed through its operations to the following financial risks: a) Credit risk b) Market risk i) Interest rate risk ii) Foreign exchange risk Other market price risk c) Liquidity risk In common with all other businesses, the Group is exposed to risks that arise from its use of financial instruments. This note describes the Group's objectives, policies and procedures for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these Historical Financial Information. There have been no substantive changes in the Group's exposure to financial instrument risks, its objectives, policies and procedures for managing those risks, or the methods used to measure them from previous periods unless otherwise stated in this note. Principal financial instruments The principal financial instruments used by the Group, from which financial instrument risk arises, are as follows: - Loans and advances to customers - Cash and cash equivalents - Other financial assets - Private placement of trust deposit - Other financial liabilities Financial instruments by category Fair value through profit or loss Amortized cost Fair value through other comprehensive income 30 June 2025 31 December 2024 30 June 2025 31 December 2024 30 June 2025 31 December 2024 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 Financial assets Cash and bank balance - - 25,033 37,617 - - Loans and advances to customers - - 235,447 172,211 - - Financial assets at FVOCI - - - - 5,991 6,856 Financial assets at FVTPL 1,065 1,547 - - - - Financial assets at amortised cost - - 163 - - - Derivative financial assets 141 - - - - - Other financial assets - - 2,641 2,561 - - Total financial assets 1,206 1,547 263,284 212,389 5,991 6,856 Fair value through profit or loss Amortized cost Fair value through other comprehensive income 30 June 2025 31 December 2024 30 June 2025 31 December 2024 30 June 2025 31 December 2024 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 Financial liabilities Borrowed funds - - (96,559) (79,846) - - Bond payables - - (41,426) (24,768) - - Private placement of trust deposits - - (54,623) (48,462) - - Convertible liability - - (3,727) - - - Derivative financial liabilities - - - - - - Liability at FVTPL - - - - - - Other financial liabilities (304) - (5,561) (9,235) - - Total financial Liabilities (304) - (201,896) (162,311) - - Net financial assets 902 1,547 61,388 50,078 5,991 6,856 Financial instruments not measured at fair value Financial instruments not measured at fair value include cash and cash equivalents, loans to customers, other financial assets, borrowings, bonds, convertible debt, trust deposit liabilities, and other financial liabilities. Due to their short-term nature, the carrying value of cash and cash equivalents, other financial assets, and other payables approximates their fair value. General objectives, policies and procedures The Board has overall responsibility for the determination of the Group's risk management objectives and policies and, whilst retaining ultimate responsibility for them, it has delegated the authority for designing and operating processes that ensure the effective implementation of the objectives and policies to the Group's credit committee. The management receives monthly reports from the Group Chief Financial Officer through which it reviews the effectiveness of the procedures put in place and the appropriateness of the objectives and policies it sets. The Group's internal auditors also review the risk management policies and processes and report their findings to the Audit Committee. The overall objective of the management is to set policies that seek to reduce risk as much as possible without unduly affecting the Group's competitiveness and flexibility. Further details regarding these policies are set out below: a) Credit risk Credit risk is defined as the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Group is primarily exposed to credit risk due to customers potentially being unable to fulfill their obligations under loan agreements, impairment of collateral, and the inability to meet obligations with the collateral. The Credit Committee manages the Group's credit risk in an integrated manner by regularly discussing and resolving issues. If necessary, these issues are escalated and discussed at Board meetings. The Group follows the "Risk Management Policy" issued for the Credit Committee in its loan activities. According to the policy, the risk management process consists of five interrelated stages. 1. Risk identification 2. Risk analysis and measurement 3. Risk assessment - Quantitative and qualitative approaches appropriate to the nature of the risk 4. Risk treatment 5. Monitoring and review The main purpose of credit risk management is to optimize the level of risks and expected returns of loan activities. The Group adheres to the following principles in their credit risk management activities: 1. Accountability 2. Independence 3. Operating within the framework of policies and procedures 4. Providing complete loan documentation 5. Consistency 6. Adherence to limits set and diversification of the loan portfolio a) Credit risk (continued) To manage the level of credit risk, the Group sets limits on the amount of risk it is willing to accept for individual borrowers or groups of borrowers. The level of exposure to credit risk is managed through ongoing analysis of borrowers' and potential borrowers' ability to meet interest and principal repayment obligations. Credit limits are adjusted as needed to mitigate risk. Furthermore, exposure to credit risk is managed by securing collateral and obtaining corporate or personal guarantees. The maximum exposure to credit risk, excluding collateral and other credit enhancements, is as follows: (In thousands of USD) 30 June 2025 Gross maximum exposure 31 December 2024 Gross maximum exposure Cash and bank balance 25,037 40,500 Loans and advances to customers 249,563 224,126 Debt instruments at FVOCI 5,414 5,335 Other financial assets 4,615 1,852 Total 284,629 271,813 Other credit enhancements refers to strategies and tools to mitigate risks associated with loan such as collateral, guarantees and insurance. InvesCore NBFI collateralises real states with LTV ratios of up-to 80% and cars with LTV ratios of up-to 70% in keeping with loan procedure regulations. Furthermore, InvesCore NBFI collaborates with the 7 top Mongolian insurance companies (Practical insurance, Mandal insurance, Nomin insurance, Bodi insurance, Khaan insurance, Tenger insurance and Munkh insurance) to insure car purchase loans and investment loans. Where financial instruments are recorded at fair value, the amounts shown above represent the current credit risk exposure, but they do not reflect the maximum risk exposure that could arise in the future due to changes in their values. a) Credit risk (continued) Credit quality analysis The following table sets out information about the credit quality of financial assets measured at amortized cost based on the Group's internal credit quality grading. Unless specifically indicated, the amounts in the table represent gross carrying amounts for financial assets. Explanation of the terms 'Stage 1', 'Stage 2' and 'Stage 3' is included in Note 4 (d). 30 June 2025 (In thousands of USD) PD range Stage 1 Stage 2 Stage 3 Total Performing 0.2 - 3.2% 243,881 - - 243,881 Past due 5 - 57.7% - 19,916 - 19,916 Substandard 25 -100% - - 9,843 9,843 Doubtful 50 -100% - - 7,421 7,421 Loss 100% - - 5,756 5,756 Gross amount 243,881 19,916 23,020 286,817 Fee deferral (1,154) (83) (82) (1,319) Loss allowance (3,622) (2,368) (10,173) (16,163) Net carrying amount 239,105 17,465 12,765 269,335 31 December 2024 (In thousands of USD) PD range Stage 1 Stage 2 Stage 3 Total Performing 0.02-4.8% 252,259 - - 252,259 Past due 3-71.3% - 8,013 - 8,013 Substandard 100% - - 3,810 3,810 Doubtful 100% - - 5,359 5,359 Loss 100% - - 3,595 3,595 Gross amount 252,259 8,013 12,764 273,036 Fee deferral (918) (31) (44) (993) Loss allowance (1,064) (2,291) (6,313) (9,668) Net carrying amount 250,277 5,691 6,407 262,375 a) Credit risk (continued) Collateral and other credit enhancements The Group maintains collateral coverage in order to mitigate credit risk. The following table sets out the principal types of collateral held against different types of financials assets. Amounts arising from ECL To mitigate the credit risk associated with financial assets, the Group requires collateral primarily for business and consumer loans. The type of collateral varies depending on the loan product. For business loans, collateral includes both movable and immovable assets. For consumer loans, the underlying assets financed by the loan proceeds are typically used as collateral. For digital loans disbursed through the Pocket platform, the Group relies on the borrower's credit scoring model and does not require collateral. The details of the fair value of collateral for loans provided to customers by the Group are as follows: Over-collateralized assets Under-collateralized assets Carrying value of the assets Fair value of collateral Carrying value of the assets Fair value of collateral At 30 June 2025 Business loan 54,761�� 100,815�� 14,221�� 320�� Consumer loan 10,744�� 19,601�� 688�� 13�� Auto loan 89,304�� 115,744�� 348�� 101�� Total 154,809�� 236,160�� 15,257�� 434�� Over-collateralized assets Under-collateralized assets Carrying value of the assets Fair value of collateral Carrying value of the assets Fair value of collateral At 30 June 2024 Business loan 13,255 29,441 7,963 2,745 Consumer loan 21,002 127,898 991 57 Auto loan 33,545 100,115 866 1,193 Total 67,802 257,454 9,820 3,995 The loan collateral must be sufficient to cover the principal, accrued interest, and penalty interest on high-risk loans. The collateral is valued based on its market value and benchmark valuation standards. Management continuously monitors the valuation of the collateral. Inputs, assumptions and methodology used for estimating impairment Significant increase in credit risk When assessing whether the risk of default on a financial instrument has increased significantly since initial recognition, the Group considers relevant and readily available information without undue cost or effort. This includes both quantitative and qualitative analysis, drawing on the Group's historical experience, expert credit assessments, and forward-looking information. The Group uses three criteria to determine whether there has been a significant increase in credit risk: - quantitative test based on movement in probability of default (PD); - qualitative indicators; and - a backstop indicator: If a financial asset is more than 30 days past due, or has been restructured, and if both internal and external ratings have decreased by two or more grades, it is assigned to Stage 2. If a financial asset is more than 90 days past due and therefore considered defaulted, it is allocated to Stage 3. Credit risk grades The Group allocates each exposure to a credit risk grade based on a variety of data that is determined to be predictive of the risk of default and applying experienced credit judgement. Credit risk grades are defined using qualitative and quantitative factors that are indicative of the risk of default. Each exposure is allocated to a credit risk grade at initial recognition based on available information about the borrower. Exposures are subject to ongoing monitoring, which may result in exposure being moved to a different credit risk grade. The monitoring typically involves use of the following data to determine the impairment of financial asset: the borrower's financial condition, credit usage, contract restructuring, repayment history, income stability, economic trends, and references from law enforcement agencies. Sources of date include: - Internally collected data on customer behavior, such as credit card usage; - External data from credit reference agencies; - Internally collected payment records, detailing overdue status and payment ratios; - Internally collected data on utilization of the approved credit limit; - Internally collected record of instances of forbearance requests and approvals; - Internal research on anticipated changes in economic, business, and financial conditions; - External data from law enforcement agencies. Generating the term structure of PD Determining whether credit risk has increased significantly The Group assesses whether credit risk has increased significantly since initial recognition at each reporting period. Determining whether an increase in credit risk is significant depends on the characteristics of the financial instrument and the borrower. Credit risk may also be deemed to have increased significantly since initial recognition based on qualitative factors linked to the Group's credit risk management procedures, which may not be fully captured in the quantitative analysis in a timely manner. Such qualitative factors are based on the Group's expert judgement and relevant historical experience and are applied to the exposures that meet certain heightened risk criteria, such as placement on a watch list. As a backstop, the Group considers that a significant increase in credit risk occurs no later than when an asset is more than 30 days past due. Days past due are determined by counting the number of days from the earliest elapsed due date in respect of which full payment has not been received. Due dates are determined without considering any grace period that might be available to the borrower. If there is evidence that there is no longer a significant increase in credit risk relative to initial recognition, then the loss allowance on a financial instrument return to being measured as 12-month ECL. Some qualitative indicators of increased credit risk, such as delinquency or forbearance, may suggest a heightened risk of default that continues even after the indicator itself has ceased to exist. For instance, when the contractual terms of a loan have been modified, evidence that the criteria for recognizing lifetime ECL are no longer met includes a history of up-to-date payment performance in accordance with the modified contractual terms. The Group monitors the effectiveness of the criteria used to identify significant increases in credit risk through regular reviews to ensure that: - The criteria are capable of identifying significant increases in credit risk before exposure is in default. - The criteria do not align solely with the point in time when an asset becomes 30 days past due. - The average time between the identification of a significant increase in credit risk and default is reasonable. - Exposures are not generally transferred directly from 12-month ECL measurement to credit-impaired status. - There is no unwarranted volatility in loss allowance due to transfers between 12-month ECL (Stage 1) and lifetime ECL measurements (Stage 2). Definition of default The Group considers a financial asset to be in default when: - Insolvency: The borrower is considered insolvent for the following reasons: o Significant financial deterioration o Having difficulty pay interest or principal payment o Likelihood of bankruptcy or other financial restructuring - The asset is past due by more than 90 days. In assessing whether a borrower is in default, the Group considers indicators based on data developed internally and obtained from external sources: - Qualitative: e.g., breaches of covenant - Quantitative: e.g., overdue status and non-payment on another obligation to the Group Inputs into the assessment of whether a financial instrument is in default, and their significance, may vary over time to reflect changes in circumstances. Incorporation of forward-looking information The Group incorporates forward-looking information into both the assessment of whether the credit risk of an instrument has increased significantly since its initial recognition and the measurement of ECL. The key drivers for credit risk include GDP growth, unemployment rates, and interest rates. Due to the short average life of the Group's loan portfolio, the sensitivity to these key drivers is insignificant. Modified financial assets The contractual terms of a loan may be modified for various reasons, such as changing market conditions, customer retention efforts, and other factors unrelated to the current or potential credit deterioration of the customer. Exposures with no past due amounts and no restructuring are classified as Stage 1 exposures. Exposures that are past due within 90 days or loans that have been restructured are classified as Stage 2 exposures. Exposures that are past due more than 90 days or that have defaulted are classified as Stage 3 exposures. Measurement of ECL The key inputs into the measurement of Expected Credit Losses (ECL) are based on the term structure of the following variables: - Probability of Default (PD) - Loss Given Default (LGD) - Exposure at Default (EAD) For exposures in Stage 1, the 12-month ECL is calculated by multiplying the 12-month PD by LGD and EAD. Lifetime ECL is calculated similarly but uses the lifetime PD instead of the 12-month PD. LGD represents the expected loss magnitude in the event of default. LGD models take into consideration the structure of the financial asset, any collateral involved, the seniority of the claim, the industry of the counterparty, and the recovery cost associated with collateral integral to the asset. LGD estimates are adjusted for various economic scenarios and are calculated using a discounted cash flow approach, with the effective interest rate serving as the discount factor. EAD represents the anticipated exposure in the event of a default. The Group determines EAD based on the current exposure to the counterparty, considering potential changes allowed under the contract and arising from amortization. For a financial asset, EAD is the gross carrying amount at the time of default. For lending commitments, EAD encompasses potential future amounts that may be drawn under the contract, estimated using historical data and forward-looking forecasts. In the case of financial guarantees, EAD equals the exposure under the guarantee at the point when it becomes payable. As described above, and subject to using a maximum of a 12-month PD for Stage 1 financial assets, the Group measures ECL by considering the risk of default over the maximum contractual period, which includes any borrower's extension options, over which it is exposed to credit risk. This measurement applies even if, for credit risk management purposes, the Group considers a longer period. The maximum contractual period extends to the date at which the Group has the right to demand repayment of an advance or terminate a loan commitment or guarantee. Credit risk arising on cash at bank deposits The Group maintains cash at bank in a variety of banks across the portfolio of operations, giving rise to a level of credit risk associated with the credit worthiness of the banks with whom funds are held. As at the reporting date, a total of 97% (2024: 97%) of all funds held were lodged with banks with a credit rating of B2 or above. a) Market risk Market risk arises from the Group's use of interest bearing, tradable and foreign currency financial instruments. It is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rates (interest rate risk), foreign exchange rate (currency risk) or other market factors (other market price risk) i) Interest rate risk The Group defines interest rate risk as potential loss due to a negative impact from adverse changes in interest rates and their implied volatility. The Group's lending, funding and investment activities give rise to interest rate risk. The immediate impact of variation in interest rate is on the Group's net interest income, while a long-term impact is on the Group's net worth as the economic value of the Group's assets, liabilities and off-balance sheet exposures will be affected. The Group's risk function periodically monitors the compliance against its risk appetite on the Group's interest rate position. The following table presents the sensitivity analysis demonstrating the potential impact of a reasonable change in interest rates, while holding all other variables constant, on the Group's statement of comprehensive income. The sensitivity analysis measures the effect of assumed changes in interest rates on net interest income for one year, based on the floating rate of financial assets and financial liabilities held as of 30 June 2025 and 31 December 2024. Change in interest rate in basis point Currency Sensitivity of net interest expense USD'000 Borrowed funds +120 MNT 87 +120 USD 267 ii) Foreign currency risk Foreign currency risk is the risk that the fair value of financial instruments fluctuates as a result of changes in foreign currency rates. This risk arises from foreign currency transactions and recognized assets and liabilities denominated in the foreign currencies. As of 30 June 2025, and 31 December 2024, the Group's net exposure to foreign exchange risk is as follows: USD JPY Other Total 30 June 2025 31 December 2024 30 June 2025 31 December 2024 30 June 2025 31 December 2024 30 June 2025 31 December 2024 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 Financial assets Cash and bank balance 1,215 14,053 496 981 2,208 440 3,919 15,474 Loans and advances to customers 788 765 175 235 24,705 - 25,668 1,000 Financial assets at FVOCI 5,414 5,085 - - - - 5,414 5,085 Financial assets at FVTPL 9 335 - - - - 9 335 Derivative financial assets 1,998 4,820 - 2,513 85 - 2,083 7,333 Other financial assets 352 276 - - 26 60 378 336 Total financial assets 9,776 25,334 671 3,729 27,024 500 37,471 29,563 Financial liability Borrowed funds (22,761) (36,477) - - (7,762) (537) (30,523) (37,014) Bond - - - - (2,070) - (2,070) - Private placement of trust deposits (2,393) (1,017) (148) (2,042) - - (2,541) (3,059) Other financial liabilities (454) (770) - - (5,627) (464) (6,081) (1,234) Total financial liabilities (25,608) (38,264) (148) (2,042) (15,459) (1,001) (41,215) (41,307) Net exposure to foreign currency (15,832) (12,930) 523 1,687 11,565 (501 (3,744) (11,744) * Other currencies include the Euro, Singapore Dollar and the British Pound. ii) Foreign currency risk The following table presents sensitivities of profit or loss to reasonable possible changes in exchange rates applied as of 30 June 2025 against the functional currency of the Group, with all other variables held constant: Impact on profit or loss 2025 2024 USD'000 USD'000 USD strengthening by 20% (2022: 20%) 7,077 12,720 USD weakening by 20% (2022: 20%) (7,077) (12,720) JPY strengthening by 20% (2022: 20%) 164 1,154 JPY weakening by 20% (2022: 20%) (164) (1,154) Others strengthening by 20% (2022: 20%) 8,497 300 Others weakening by 20% (2022: 20%) (8,497) (300) c) Liquidity risk Liquidity risk refers to the risk that the Group may be unable to fulfill its short-term financial obligations as they come due. The Group's policy is designed to ensure it always has adequate cash on hand to meet its liabilities promptly. To achieve this objective, the Group maintains cash reserves and utilizes agreed-upon facilities, such as overdraft facilities with multiple financial institutions, to cover anticipated needs. The Group prepares its annual budget by assessing its cash flow requirements. Additionally, the Group conducts monthly liquidity risk assessments, which are presented to the Board of Directors for review and decision-making on further actions to maintain financial stability. The following table sets out the contractual maturities (representing undiscounted contractual cash-flows) of financial liabilities: As at 30 June 2025 Up to 3 Between 3 and 12 Between 1 and 2 Between 2 and 5 Total months months Years Years USD'000 USD'000 USD'000 USD'000 USD'000 Financial liabilities Borrowed funds 27,131 33,388 36,592 14,616 111,727 Bond payables 11,677 31,126 1,131 1,621 45,555 Private placement of trust deposits 19,184 36,914 1,148 - 57,246 Other financial liabilities 2,290 751 (251) (1) 2,789 Lease liabilities 60 148 299 304 811 Total financial liabilities 60,342 102,327 38,919 16,540 218,128 As at 31 December 2024 Financial liabilities Borrowed funds 23,863 49,119 30,189 13,517 116,688 Bond payables 3,932 28,353 8,384 2,103 42,772 Derivative financial liabilities 17,784 47,001 220 - 65,005 Due to customers 452 - - - 452 Other financial liabilities 3,005 1,405 34 - 4,444 Liability at FVTPL 4,391 666 1,332 - 6,389 Lease liabilities 104 339 388 455 1,286 Total financial liabilities 53,531 126,883 40,547 16,075 237,036 d) Disclosure of capital The Group controls 'adjusted capital', which consists of all components of the equity other than cash flow hedge reserves (e.g. share capital, additional paid-in capital, non-controlling interest, retained earnings and revaluation surplus). The primary objectives of the Group's capital management are: - Ensure the Group's ability to operate as a going concern, thereby sustaining returns for shareholders and providing benefits to other stakeholders; - Provide shareholders with appropriate returns by setting prices for products and services based on the level of risk involved. The Group determines the amount of capital it needs relative to its risk exposure. It actively manages its capital structure and adjusts it in response to changes in economic conditions and the risk profile of its underlying assets. To maintain or modify its capital structure, the Group may adjust dividend payments, conduct share buybacks, issue new shares, or sell assets to reduce debt. These actions are taken to optimize the Group's financial position and align its capital with its risk tolerance and business strategy. Consistent with the industry, the Group monitors its capital using the debt-to-adjusted capital ratio. This ratio is computed as net debt divided by adjusted capital, defined as follows: Net debt equals total debt (as reported in the statement of financial position) minus cash and cash equivalents. Due to recent market uncertainty, the Group's strategy is focused on maintaining a robust cash position and achieving a favorable debt-to-adjusted-capital ratio. This strategy aims to ensure access to finance at reasonable costs by sustaining a high credit rating. The debt-to-adjusted-capital ratios as of 30 June 2025 and 31 December 2024 were as follows: 2025 2024 USD'000 USD'000 Total liabilities 207,189 200,907 Less: Cash and bank balances (25,033) (40,493) Net liabilities 182,156 160,414 Total equity 55,455 54,854 Gearing ratio (%) 328% 292% e) Operational risk management In the operational risk management framework of the Group, operational risk is defined as the potential for loss arising from inadequate or failed internal processes, human errors, system failures, or external events. All employees are accountable for preventing situations that could lead to operational risk incidents and for promptly reporting any significant operational risk incidents. Roles and responsibilities are allocated based on the Three Lines of Defense as outlined below: The First Line of Defense, comprising Business Units and supporting units, is responsible for several key tasks within the operational risk management framework: ensuring the implementation and execution of robust, effective, and efficient controls; reporting on the effectiveness of operational risk controls; accepting operational risk based on the approved risk acceptance matrix; and implementing follow-up measures commensurate with the level of operational risk identified. The Second Line of Defense, represented by the Risk Management Department, holds several responsibilities within the operational risk management framework: reviewing and challenging all process assessments and follow-up measures; monitoring the performance of operational risk metrics; and escalating operational risk matters to the Risk Management Committee for appropriate attention and action. e) Operational risk management (continued) The Third Line of Defense, Internal Audit, is tasked with providing assurance on the effectiveness of governance, risk management, and internal controls. This includes assessing how the first and second lines of defense fulfill their risk management and control objectives. The risk appetite statement is reviewed and approved annually by the Board of Directors. Monitoring of risk appetite occurs on a monthly basis, with reports provided to the monthly Risk Management Committee and quarterly to the Board Risk Management Committee. i) Fraud Risk Fraud risk is managed through a comprehensive Anti-Fraud Policy and Whistleblowing Policy, forming the cornerstone of a robust framework where the intolerance for fraud is clearly outlined. These policies ensure that all employees grasp the significance of identifying and reporting any fraudulent incidents. By cultivating a culture of vigilance and accountability, every employee is empowered to actively engage in detecting and reporting potential fraud, thereby strengthening the Group's dedication to mitigating fraud risk and upholding the integrity of its operations. ii) Health and Safety The Group addresses Occupational Health and Safety (OHS) risks through a comprehensive framework, incorporating established OHS procedures and designating an OHS officer to oversee compliance and safety measures. Regular OHS annual training and awareness programs ensure that all employees are well-versed in safety protocols and best practices. To oversee and mitigate risks, the Group tracks OHS incident metrics monthly, presenting detailed reports to the Risk Management Committee for review and action. Furthermore, the presence of an OHS incident response team ensures prompt and effective responses to any safety incidents, thereby reducing potential risks and fostering a safe working environment. iii) Product or Service Malfunction and/or Deficiency The Group effectively manages product and service errors or deficiencies within an operational risk framework, employing a robust system that commences with thorough product development procedures. These procedures require risk assessments prior to product launch to proactively identify and mitigate potential risks. The Group upholds a stringent control environment to ensure continuous oversight and compliance with regulatory standards. Regular risk reporting facilitates timely identification and documentation of any emerging issues, allowing for swift resolution. Moreover, a well-defined customer complaint resolution procedure ensures swift investigation and resolution of any reported deficiencies. Certified by ISO 9001, the Group adheres to international quality management standards, reinforcing its commitment to excellence and continuous improvement. This certification underscores the Group's dedication to maintaining high standards of quality and reliability, thereby safeguarding its reputation and ensuring customer satisfaction. iv) Business Disruption The management of business disruptions is facilitated through the implementation of a Business Continuity Plan (BCP), which assures resilience and prompt recovery in unforeseen circumstances. This plan incorporates well-defined risk tolerances related to business disruptions, such as core system uptime ratios and internet service availability, to sustain vital operations. It delineates comprehensive protocols for addressing diverse disruption scenarios, ensuring the uninterrupted continuity of essential functions with minimal disruptions. Routine testing and revisions of the BCP are conducted to ensure its ongoing effectiveness and applicability. Through imposing rigorous standards for system uptime and service reliability, the Group emphasizes the significance of operational continuity. e) Operational risk management (continued) v) Legal and Compliance risk The Group effectively mitigates legal and compliance risks through the collaborative efforts of its Legal Unit and Risk and Compliance units, dedicated to proactively prevent such risks. The Group employs thorough legal assessments and compliance protocols, with the legal team meticulously scrutinizing all operations to ensure conformity with pertinent legal standards. Additionally, the legal team offers timely recommendations to address any identified instances of non-compliance. The Group reinforces compliance with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations through robust policies and procedures, complemented by mandatory annual training for all staff. Through the integration of these strategies, the Group fortifies its defenses against legal and compliance risks, thereby safeguarding its operations and reputation. vi) Information technology The Group manages IT risk through a multifaceted approach anchored by adherence to the ISO 27001 standard, renowned for its stringent framework in information security management. An integral part of this strategy involves a dedicated IT team responsible for implementing and upholding these standards, ensuring the establishment of robust security measures for safeguarding sensitive data and systems. This team conducts regular risk assessments, oversees IT infrastructure, and promptly addresses any identified vulnerabilities. Furthermore, the Group enforces stringent access controls, employs data encryption measures, and maintains continuous monitoring to counter cyber threats effectively. Through the utilization of the IT team's expertise and compliance with internationally recognized standards, the Group effectively mitigates IT risks, thereby ensuring the security and integrity of its technological assets. 21. Fair value disclosures Financial instruments measured at fair value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the valuation date. The fair value hierarchy of financial instruments measured at fair value is provided below. (In thousands of USD) Level 1 Level 2 Level 3 Total At 30 June 2025 Financial assets Financial assets at FVOCI 5,991 - - 5,991 Financial assets at FVTPL 941 124 - 1,065 Derivative financial assets - 141 - 141 Financial liabilities Due to customers (10) - - (10) 6,922 265 - 7,187 (In thousands of USD) Level 1 Level 2 Level 3 Total At 31 December 2024 Financial assets Financial assets at FVOCI 1,066 5,335 - 6,401 Financial assets at FVTPL 1,017 130 - 1,147 Derivative financial assets - - - - Financial liabilities Derivative financial liabilities - (176) - (176) Financial liability at FVTPL (318) - - (318) 1,765 5,289 - 7,054 Description of valuation techniques and inputs used in fair value measurement for Level 1, Level 2 and Level 3: Financial instruments Fair value hierarchy Valuation technique Inputs Sensitivity to changes in significant unobservable inputs Financial assets Level 1 Market price Share price, transaction price Increase in the net assets value will increase the fair value and vice versa Financial Liabilities Embedded Level 2 Interest rate parity analysis Policy rate, bond yield of similar credit Increase in the JPY bond yield rate and decrease in the MNT interest rate will increase/decrease the fair value and vice-versa Derivative financial instruments Level 2 Interest rate parity analysis Policy rate, Government bond yield, Z-spread, SOFR rates, and SHIBOR rates Increase in USD interest rate and decrease in the MNT interest rate will increase/decrease the fair value and vice-versa Debt instruments Level 3 Market value approach Rating migration rates of Moody's, historical data from external sources, and future cash flows Increase in default rate and market rate of interest will decrease the fair value and vice versa Equity instruments Level 3 Net assets value Share price and transaction price Increase in the net assets value will increase the fair value and vice versa There were no changes in the valuation approach used during the periods ended 30 June 2024 and 31 December 2023. Additionally, there were no transfers between Levels 1, 2, and 3 of the fair value hierarchy for assets recorded at fair value. The Group discloses fair values for financial instruments at amortized cost based on the following methodologies and assumptions: - Loans and advances to customers are valued by first categorizing them into portfolios with similar characteristics. The fair value determination involves adjusting contractual cash flows for ECLs and expectations of customer behavior, which are informed by observed historic data. These adjusted cash flows are then discounted at a weighted average lending rate that is appropriate for each portfolio, resulting in an estimate of their fair value. - Trust deposits are valued using a replacement cost method, which assumes that if the deposits were to be replaced, it would be done in the most advantageous market available. The fair value calculation involves discounting contractual cash flows using a funding interest rate profile that incorporates credit spreads reflecting the maturity profile of each deposit. - Debt securities in issue are valued based on quoted market prices where available. When quoted prices are not available, the fair value is determined using a discounted cash flow model. This model uses current market rates applicable to instruments with similar terms and maturity to estimate the present value of future cash flows. 22. Maturity analysis of assets and liabilities At 30 June 2025 Less than 12 months More than 12 months Total USD'000 USD'000 USD'000 Assets Financial Assets Cash and bank balance 25,033 - 25,033 Bank balances held on behalf of customers - - - Loans and advances to customers 74,170 161,277 235,447 Financial assets at FVTPL 941 124 1,065 Financial assets at FVOCI 639 5,352 5,991 Financial assets at amortised cost 163 - 163 Derivative financial assets 141 - 141 Other financial assets 2,613 28 2,641 Non-Financial Assets Other non-financial assets 2,407 154 2,561 Inventories 3,130 - 3,130 Repossessed collateral - 780 780 Property, plant and equipment - 5,691 5,691 Intangible assets - 2,285 2,285 Right-of-use assets 68 939 1,007 Assets held for sale 2,228 - 2,228 Deferred tax assets - 103 103 Goodwill - 82 82 Total assets 111,532 176,815 288,347 Liabilities Financial Liabilities Borrowed funds (43,350) (52,506) (95,856) Bond payables (39,425) (2,001) (41,426) Private placement of trust deposits (53,576) (1,047) (54,623) Convertible liability (3,727) (3,727) Due to customers (10) - (10) Other financial liabilities (6,535) (33) (6,568) Contract liabilities (288) - (288) Lease liabilities (401) (639) (1,040) Non-Financial Liabilities Current tax liabilities (2,545) - (2,545) Deferred tax liabilities - (70) (70) Other non-financial liabilities (1,036) - (1,036) Total liabilities (150,893) (56,296) (207,189) Net position (39,361) 120,519 81,158 At 31 December 2024 Less than 12 months More than 12 months Total USD'000 USD'000 USD'000 Assets Financial Assets Cash and bank balance 40,376 - 40,376 Bank balances held on behalf of customers 117 - 117 Loans and advances to customers 61,273 153,576 214,849 Financial assets at FVTPL 1,147 - 1,147 Financial assets at FVOCI 1,379 5,022 6,401 Other financial assets 1,572 26 1,598 Non-Financial Assets Other non-financial assets 1,311 - 1,311 Inventories 3,394 - 3,394 Repossessed collateral - 691 691 Property, plant and equipment - 5,896 5,896 Intangible assets - 1,252 1,252 Right-of-use assets - 1,048 1,048 Assets held for sale 967 - 967 Deferred tax assets - 381 381 Goodwill - 85 85 Total assets 111,536 167,977 279,513 Liabilities Financial Liabilities Borrowed funds (46,509) (48,419) (94,928) Bond payables (27,358) (9,276) (36,634) Private placement of trust deposits (59,461) (186) (59,647) Derivative financial liabilities - (176) (176) Due to customers (452) - (452) Other financial liabilities (4,397) (34) (4,431) Contract liabilities (133) - (133) Lease liabilities (87) (1,009) (1,096) Non-Financial Liabilities Current tax liabilities (2,361) - (2,361) Other non-financial liabilities (1,049) - (1,049) Total liabilities (141,807) (59,100) (200,907) Net position (30,271) 108,877 78,606 23. Notes supporting cash flow Reconciliation of financing liabilities with financing activities. Borrowed Funds Bonds Payable Private placement of deposit Lease liabilities Total USD'000 USD'000 USD'000 USD'000 USD'000 As at 31 Dec 2024 94,782 36,634 59,647 1,096 192,159 Proceeds 57,004 13,401 32,248 236 102,889 Repayment of principal (52,866) (6,833) (36,097) (211) (96,007) Interest accrued 6,512 3,579 4,646 172 14,909 Interest paid (7,062) (3,664) (3,406) (172) (14,304) Variable lease payment adjustment - - - (39) (39) Foreign exchange (1,811) (1,691) (2,415) (42) (5,959) As at 30 June 2025 96,559 41,426 54,623 1,040 193,648 Borrowed Funds Bonds Payable Private placement of deposit Lease liabilities Total USD'000 USD'000 USD'000 USD'000 USD'000 As at 31 Dec 2023 59,413 19,651 41,113 1,154 121,331 Proceeds 84,383 7,781 41,702 568 134,434 Repayment of principal (65,080) (2,942) (36,424) (389) (104,835) Interest accrued 3,949 1,940 4,502 - 10,391 Interest paid (3,335) (1,880) (2,796) 103 (7,908) Variable lease payment adjustment (241) - (28) (1) (270) Foreign exchange 757 218 393 12 1,380 As at 30 June 2024 79,846 24,768 48,462 1,447 154,523 24. Segment information A) Segment information by business line The Group comprises multiple strategic business units which offer differing products and services, being Non-banking financial services, Investment banking services and Real estate trading and services. The Group therefore assesses the performance of all activities within these individual strategic business units. 30 June 2025 Non-banking financial activities Investment banking activities Trading of real estates Other Total USD'000 USD'000 USD'000 USD'000 USD'000 Segment results Interest income calculated using the effective interest rate 41,256 25 9 46 41,336 Interest and similar expense (14,851) (30) (44) (117) (15,042) Net interest income 26,405 (5) (35) (71) 26,294 Fee and commission income 5,507 403 201 - 6,111 Fee and commission expense (111) (173) - - (284) Net fee and commission expense 5,396 230 201 - 5,827 Revenue from contracts with customers - (9) 231 330 552 Cost of sales - - 452 16 468 Rental income - - (148) - (148) Total revenue from contracts with customers - (9) 535 346 872 Net trading income 313 130 - - 443 Impairment losses on financial instruments (9,514) - - - (9,514) Other operating income 138 (4) 778 56 968 Total operating income 22,738 342 1,479 331 24,890 Employee costs (3,141) (277) (685) (1,028) (5,131) Depreciation of property, plant and equipment (281) (28) (39) (58) (406) Amortisation of right of use (173) (22) (23) - (218) Amortisation of intangible assets (97) (6) (2) (3) (108) Other operating expenses (1,890) (127) (657) (155,655) (158,329) Profit/(Loss) before tax 17,156 (118) 73 (156,413) (139,302) Income tax expense (4,428) (12) (30) (121) (4,591) Profit/(Loss) for the period 12,728 (130) 43 (156,534) (143,893) Profit for the period attributable to: Owners of the parent 10,228 (130) 43 (156,446) (146,305) Non-controlling interest 2,500 - - (88) 2,412 Segment assets 275,320 2,021 4,638 6,368 288,347 Segment liabilities 197,554 395 1,529 7,711 207,189 Non-controlling interest 357 (14) - 27,794 28,137 30 June 2024 Non-banking financial activities Investment banking activities Trading of real estates Other Total USD'000 USD'000 USD'000 USD'000 USD'000 Segment results Interest income calculated using the effective interest rate 29,464 27 102 1 29,594 Interest and similar expense (10,384) (75) (218) (11) (10,688) Net interest income 19,080 (48) (116) (10) 18,906 Fee and commission income 3,105 449 122 - 3,676 Fee and commission expense (57) (30) - - (87) Net fee and commission expense 3,048 419 122 - 3,589 Revenue from contracts with customers - - 1,964 216 2,180 Cost of sales - - 359 23 382 Rental income - - (811) - (811) Total revenue from contracts with customers - - 1,512 239 1,751 Net trading income - 5 - - 5 Impairment losses on financial instruments (2,780) 4 - - (2,776) Other operating income 98 52 196 120 466 Total operating income 19,446 432 1,714 349 21,941 Employee costs (2,436) (263) (399) (717) (3,815) Depreciation of property, plant and equipment (183) (28) (18) (60) (289) Amortisation of right of use (147) (18) (56) (24) (245) Amortisation of intangible assets (84) - (1) (5) (90) Other operating expenses (1,600) (130) (572) (393) (2,695) Profit before tax 14,996 (7) 668 (850) 14,805 Income tax expense (3,542) (3) (75) (59) (3,679) Profit for the period 11,454 (10) 593 (909) 11,126 Profit for the period attributable to: Owners of the parent 9,279 (10) 593 (782) 9,080 Non-controlling interest 2,175 - - (129) 2,046 Segment assets 223,412 2,069 5,555 2,881 233,917 Segment liabilities 163,196 1,385 2,930 460 167,971 Non-controlling interest 398 - - 20,692 21,090 B) Segment information by geography - Non-banking financial activities Non-banking financial services within the Group is made up of the core Mongolian market operations and operations in other Central Asian jurisdictions, most notably the Kyrgyz Republic. The segmental information below shows the performance and assets of the non-banking financial services strategic business unit within these two key geographical jurisdictions. 30 June 2025 Non-banking financial activities - Mongolia Non-banking financial activities - Other Asian Countries Non-banking financial activities - Total USD'000 USD'000 USD'000 Segment results Interest income calculated using the effective interest rate 38,230 3,051 41,281 Interest and similar expense (14,124) (846) (14,970) Net interest income 24,106 2,205 26,311 Fee and commission income 5,501 6 5,507 Fee and commission expense (110) (15) (125) Net fee and commission expense 5,391 (9) 5,382 Revenue from contracts with customers - - - Cost of sales - - - Rental income - - - Total revenue from contracts with customers - - - Net trading income 263 50 313 Impairment losses on financial instruments (9,691) (95) (9,786) Other operating income 384 63 447 Total operating income 20,453 2,214 22,667 Employee costs (2,587) (554) (3,141) Depreciation of property, plant and equipment (290) (21) (311) Amortisation of right of use (148) (46) (194) Amortisation of intangible assets (107) (8) (115) Other operating expenses (2,229) (284) (2,513) Profit before tax 15,092 1,301 16,393 Income tax expense (4,385) (43) (4,428) Profit for the period 10,707 1,258 11,965 Profit for the period attributable to: Owners of the parent 10,707 1,180 11,887 Non-controlling interest - 78 78 Segment assets 251,903 25,452 277,355 Segment liabilities 188,716 9,603 198,319 Non-controlling interest - 357 357 30 June 2024 Non-banking financial activities - Mongolia Non-banking financial activities - Other Asian Countries Non-banking financial activities - Total USD'000 USD'000 USD'000 Segment results Interest income calculated using the effective interest rate 27,771 1,693 29,464 Interest and similar expense (9,484) (900) (10,384) Net interest income 18,287 793 19,080 Fee and commission income 3,068 37 3,105 Fee and commission expense (44) (13) (57) Net fee and commission expense 3,024 24 3,048 Revenue from contracts with customers - - - Cost of sales - - - Rental income - - - Total revenue from contracts with customers - - - Net trading income - - - Impairment losses on financial instruments (2,704) (76) (2,780) Other operating income (152) 250 98 Total operating income 18,455 991 19,446 Employee costs (2,131) (305) (2,436) Depreciation of property, plant and equipment (168) (15) (183) Amortisation of right of use (136) (11) (147) Amortisation of intangible assets (80) (4) (84) Other operating expenses (1,323) (277) (1,600) Profit before tax 14,617 379 14,996 Income tax expense (3,514) (28) (3,542) Profit for the period 11,103 351 11,454 Profit for the period attributable to: Owners of the parent 8,996 283 9,279 Non-controlling interest 2,108 67 2,175 Segment assets 209,504 13,908 223,412 Segment liabilities 157,760 5,436 163,196 Non-controlling interest - 398 398 25. Reverse Takeover On 12 February 2025, the company acquired the entire issued and paid-up share capital of ICFG Pte Ltd for 177,840,000 firm Consideration Shares at a deemed valuation of USD 0.80 per share (nominal value USD 0.80), valuing the Company at USD 146,209,000. The acquisition has been treated as a reverse acquisition and hence accounted for in accordance with IFRS 2. Although the transaction resulted in ICFG Pte Ltd becoming a wholly owned subsidiary of the Company, the transaction constitutes a reverse acquisition as the previous shareholders of ICFG Pte Ltd own a substantial majority of the Ordinary Shares of the Company and the executive management of ICFG Pte Ltd became the executive management of ICFG Limited. In substance, the shareholders of ICFG Pte Ltd acquired a controlling interest in the Company and the transaction has therefore been accounted for as a reverse acquisition. The reverse acquisition falls under IFRS 2 rather than IFRS 3 as the activities of ICFG Limited (the 'Legal Parent') do not constitute a business. The following table summarises the consideration paid for the Legal Parent through the reverse acquisition and the amounts of the assets acquired and liabilities assumed on the acquisition date. The financial comparatives relate to Legal Subsidiary rather than the Legal Parent as the consolidated financial statements represent a continuation of the financial statements of the Legal Subsidiary. In accordance with IFRS 2, the value of obtaining the listing under a reverse acquisition is calculated on the net assets of the legal parent. The share-based payment of USD 154,891,000 arising from the acquisition is attributable to the value of the parent company being an LSE main market listed entity to the Legal Subsidiary and has been recognised as an expense in the statement of comprehensive income. Consideration as at 30 July 2025 USD'000 Firm consideration shares (177,840,000 ordinary shares) 141,652 Convertible loan conversion 4,557 Total Consideration 146,209 Fair value of shares acquired in ICFG Pte Ltd 146,209 Net liabilities of ICFG Limited acquired 8,682 Share based payment expense 154,891 As the Reverse Takeover was completed on 12th February 2025, the income statement for the six months ended 30th June 2025 comprised of the information of the subsidiaries for the period 1st Jan 2025 to 30th June 2025 and for ICFG Limited for the period 12th Feb to 30th June 2025. 26. Subsequent events Management is not aware of any other events that occurred after the end of the reporting period until the date the Interim Condensed Consolidated Financial Statements were approved for release, which would have any impact on these Interim Condensed Consolidated Financial Statements. Other than the Board and Management changes noted in the Chief Executive Officer's Statement, the following events took place since 30 June 2025. ICFG Loan Notes: On 15 September 2025, ICFG raised ��330,000 through the issuance of loan notes under an unsecured loan note instrument. The Series A Loan Notes are issued in denominations of ��10,000 (or multiples thereof) up to an aggregate maximum of ��1 million. They carry a fixed annual interest rate of 10%, with principal and accrued interest repayable 12 months from the date of issue. The Series A Loan Notes have no conversion rights. Invescore NBFI Financing Facility: Invescore NBFI obtained a financing facility equivalent to US$20 million from FMO Entrepreneurial Development Bank (Netherlands). The senior loan is denominated in MNT, with a five-year term. In accordance with FMO's sustainability mandate, at least 10% of the facility will be allocated to green initiatives as defined by the "FMO Master Green List," while the remaining 90% will be directed to micro and SME sub-loans, particularly targeting underserved agricultural, rural, women-led, and youth-owned businesses, supporting both financial inclusion and climate action objectives. Connect Life LLC Insurance Licence: On 24 July 2025, Connect Life LLC was granted a specialised life insurance licence by the Financial Regulatory Commission of Mongolia. The licence permits the company to offer a full suite of life insurance and annuity products-including term life, whole life, endowment, pension, and annuity solutions-across Mongolia. Connect Life LLC is wholly owned by Insur LLC, in which SIBJ Capital holds a 51% equity interest. ICFG LIMITED OFFICERS AND ADVISORS Directors Mr Ankhbold Bayanmunkh, Chairman Mr Oliver Stuart Fox , Chief Executive Officer, Executive Director (resigned on 19 August 2025) Mr Hirohito Namiki , Executive Director Mr Robert George Shepherd, Independent Non-Executive Director Ms Nicola Jane Walker, Independent Non-Executive Director Mr Amar Lkhagvasuren, Independent Non-Executive Director Administrator and Company Secretary New Street Management Limited Les Echelons Court Les Echelons, St Peter Port Guernsey GY1 1AR Registered and Head Office Les Echelons Court Les Echelons , St Peter Port Guernsey GY1 1AR Telephone Number +44 1481 743030 Financial Adviser Strand Hanson Limited 26 Mount Row London W1K 3SQ UK Broker Novum Securities Limited 2nd Floor 7, 10 Chandos St, London W1G 9DO Auditor and Reporting Accountant PKF Littlejohn LLP 15 Westferry Circus London E14 4HD UK Counsel to the Company Carey Olsen (Guernsey) LLP Carey House, Les Banques St. Peter Port GY1 4BZ Guernsey Registrars MUFG Corporate Markets (Guernsey) Limited Mont Crevelt House Bulwer Avenue St Sampson Guernsey GY2 4LH Financial public relations advisers to the Company IFC Advisory Limited Birchin Court 20 Birchin Lane London EC3V 9DU UK This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy. END IR PPUQABUPAGQQ

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