• Improved operating cash flow, minor negative of $2K
• No capital expenditure in the quarter
• Cash and cash equivalents of $469K, no external debt
• Collaborating with e-learning providers to promote offerings

Victor Group Holdings (ASX:VIG) released its cash flow report for the March 2025 quarter (Appendix 4C) and provided an update on key areas of activity. The company's IaaS, SaaS and PaaS service in China through its subsidiary Shenghan collected around $1.54 million in trade receivables, with all cash inflow contributed by this service. Compared to the previous quarter, the operating cash flow was significantly improved, with a minor negative operating cash flow of $2K recorded. The management team expects the operating cash flow to continue improving in the next quarter. The cash and cash equivalents position of the consolidated entities at the end of the quarter was $469K, and as the group has no external debts, the management believes external fund raising is not necessary for the current business in China. However, a financial support confirmation was provided by the major shareholder. In the e-learning and cloud education segment, the company has not collected trade receivables during the quarter but has collaborated with qualified and stable e-learning providers focused on IT vocational training to help promote its offerings. The management believes there will be further development in this area with the increasing enthusiasm for learning IT and AI-related vocational courses.

The management team expects the operating cash flow to continue improving in the next quarter.