• Positive operating cash flow from IaaS, SaaS & PaaS services
• Signed $1.2 million in new Cloud education contracts
• Maintained healthy cash position with no external debt

Victor Group Holdings Ltd (ASX:VIG) released its Appendix 4C cash flow report for the quarter ended 31 March 2026 and provided an update on the key areas of activity during the quarter. The company's principal activities include providing IaaS, SaaS & PaaS services, and education cloud platforms. During the quarter, the company's IaaS, SaaS & PaaS services in China collected around $3.97 million in trade receivables, contributing to positive operating cash flow. The company continued to deliver software solutions including data management and operating system software for various clients. In the e-learning and cloud education segment, while no trade receivables were collected during the quarter, the company signed approximately $1.2 million in new cloud education contracts. The company incurred $193,000 in procurement expenditure for cloud education content and platform services, and collaborated with qualified e-learning providers to promote its offerings.The company maintained a healthy cash position, with $393,000 in cash and cash equivalents at the end of the quarter. The group, including its subsidiaries, continues to carry no external debt, and the management believes no external fundraising is necessary for the current business in China. A financial support confirmation has been provided by the major shareholder to safeguard the company against any potential default on debts or payables.

The management team remains confident that the operating cash flow will stay healthy in the next quarter, underpinned by ongoing cash generation from the core IaaS operations. The company believes there will be further development in the e-learning and cloud education segment, supported by increasing market enthusiasm for IT and AI-related vocational courses.