mF International Ltd

Operating activities

Net cash used in operating activities, HK$24.6 million (US$3.1 million), for the six months ended June 30, 2026 was driven by the current period’s net loss of HK$2.1 billion (US$271 million) as adjusted for non-cash items and the change in operating assets and liabilities. Adjustments for non-cash items principally comprised the following: depreciation of property and equipment of HK$0.2 million, amortization of intangible assets of HK$0.01 million, amortization of right-of-use assets of HK$1.2 million, recovery of the allowance of credit loss of HK$0.002 million, option premium income of HK$8.1 million, realized gain on disposal of digital assets of HK$0.2 million, investment income of HK$5.2 million, change in fair value of marketable securities of HK$1.6 million, change in fair value of derivative liabilities of HK$2.2 million, change in fair value of digital assets of HK$2.1 billion, others of HK$0.02 million and deferred tax benefits of HK$0.006 million. Changes in operating assets and liabilities of HK$4.5 million which mainly included (a) a decrease in deposits and other current assets of HK$1.0 million, mainly due to the refund of rental deposit for Fortis Tower office; (b) a decrease in accrued expenses and other payables of HK$2.1 million due to more legal and professional fee was paid during the period end; (c) a decrease in contract liabilities of HK$7.2 million, which was mainly due to a lower receipt in advance from customers; (d) a decrease in accounts receivable of HK$0.1 million, which was mainly due to efficient management of our days sales outstanding; (e) a decrease in prepaid expenses of HK$4.8 million; (f) an increase in tax payable of HK$0.02 million; (g) payments of office lease to a related party of HK$1.2 million.

Net cash used in operating activities, HK$2.6 million, for the six months ended June 30, 2025 was driven by the net loss of HK$13.7 million as adjusted for non-cash items and the change in operating activities. Adjustments for non-cash items principally comprised the following items: depreciation of property and equipment, HK$0.1 million, amortization of intangible assets, HK$3.1 million, amortization of right-of-use assets, HK$0.7 million, a reduction in allowance for credit loss, HK$0.002 million, and an increase in deferred tax benefits, HK$0.2 million. Cash outflow from the change in operating activities included payments to service vendors, HK$1.3 million, deposit payment, HK$0.2 million, and operating lease payment for our office facility, HK$0.7 million. Our overall cash outflow was partially offset by customer collections, HK$0.8 million, a decrease in prepayments to our vendors, HK$5.2 million, and advance cash receipts from our customers, HK$3.6 million.