承 擔 刊登業績公告及中期報告 SINOHOPE TECHNOLOGY HOLDINGS LIMITED 新火科技控股有限公司 （於英屬處女群島註冊成立的有限公司） （股份代號：1611） | --- | --- | --- | --- | |-------------------------------------------------------------------|-------------------------------------|------------------------------|---------------| | | | | | | 財務摘要 | | | | | | 截至三月三十一日止六個月 二零二四年 | 二零二三年 | 變 動 | | | 千港元 | 千港元 （重新呈列） | % | | 收 益 | 655,608 | 2,397,095 | (72.6)% | | 毛 利╱（損） | | | | | | 32,141 | (14,388) | 323.4% | | 毛 利╱（損）率 | 4.9% | (0.60)% | 916.7% | | 除 所 得 稅 前 溢 利 ...

财联社2月15日电（编辑 胡家荣）受益于比特币大涨，港股数字货币概念股应声走强。截至发稿，新火科技控股(01611.HK)、OSL集团(00863.HK)分别上涨14.96%、12.02%。 首先来看一下，比特币的走势。该品种一度向上触及52000美元/枚，日内涨5.01%。根据CoinGecko的数据显示，比特币今年迄今22%的涨幅使其市值自2021年12月以来首次突破1万亿美元。 截至发稿，比特币上涨4.87%，报51857.7美元。 注：比特币的走势 对于比特币价格的上涨可能与近期获批并在交易所上市的比特币现货ETF有关。这些ETF由多家机构发行，包括Grayscale、Bitwise、Hashdex、iShares、Valkyrie、Ark 21Shares、Invesco Galaxy、VanEck、WisdomTree、Fidelity和Franklin等。特别是iShares，作为全球资产管理巨头贝莱德的一部分，其发行的比特币ETF（IBIT）受到了广泛关注。 根据BitMEX Research的数据，贝莱德的比特币ETF（IBIT）在所有比特币ETF中表现突出，在过去7个工作日内实现了1.37 ...

Digital Asset Custody and Web 3.0 Initiatives - SINOHOPE changed its English brand name to SINOHOPE, focusing on digital asset custody business to help enterprises securely and conveniently use digital assets[5] - The company launched the "Hong Kong VASP License Guardian Program" to assist institutions in applying for Hong Kong VASP licenses, providing IT infrastructure and compliance consulting services[13] - SINOHOPE is optimistic about Hong Kong's development prospects in virtual assets, fintech, and Web 3.0, and is committed to advancing compliant virtual asset services and technology[16][19] - The company believes that the future of Web 3.0 in Hong Kong can enhance liquidity, attract global investment, and drive financial technology transformation through blockchain innovation[19] - The company's MPC self-custody business has established strategic partnerships with over 50 leading industry players, including HashKey Exchange, Canaan Technology (NASDAQ: CAN), and CertiK[39] - The company launched a new WaaS (Wallet-as-a-Service) offering as part of its MPC self-custody business, enabling institutions to securely and rapidly build and integrate MPC enterprise-grade wallets to serve millions of users[39] - Hong Kong established the Web 3.0 Association in April and launched the Web3 Hub Ecosystem Fund, signaling strong support for Web 3.0 development[42] - Hong Kong introduced a new licensing regime for virtual asset service providers (VASP) in June, further advancing its Web 3.0 initiatives[42] - The company launched a one-stop Web3 product building solution for developers, offering full-stack blockchain technology and infrastructure support, including L1 public chain design, L2 OP/ZK expansion, DeFi/NFT/GameFi applications, and MPC/AA wallet services[68] Financial Transactions and Asset Management - Hbit Limited, a wholly-owned subsidiary, had approximately $18.1 million worth of cryptocurrency deposited on FTX, including $13.2 million in client assets and $4.9 million in proprietary assets, which may be unrecoverable due to FTX's bankruptcy filing on November 11, 2022[22] - The company completed the sale of its stake in Animoca Brands Corporation Limited in April 2023, and no longer holds any interest in the company[26] - The company entered into a conditional sale agreement with New Wave Capital Limited on March 24, 2023, to sell six target companies for a total consideration of HKD 115,000,308[26] - New Huo Technology launched a 100% virtual asset investment fund in collaboration with LD Capital US in May, managed by New Huo Asset Management (Hong Kong) Limited[40] - New Huo Asset Management signed a technical consulting agreement with Gaosheng Limited, a subsidiary of Bingo Group, in July to establish a fund focused on intellectual property commercialization[40] - New Huo Technology partnered with Alpha Blockchain Capital in October to launch the Alpha Blockchain SP1, a 100% virtual asset investment fund[40] - New Huo Investment Limited sold 100% of Win Techno Inc.'s issued share capital for $3.27 million (approximately HK$25.5 million) in November 2022[46] - The company received a $14 million interest-free shareholder loan from its controlling shareholder, Mr. Li Lin, to address liabilities arising from the FTX incident[47] - As of September 30, 2023, the company had drawn approximately $13.2 million (approximately HK$103.6 million) in Tether from the shareholder loan[48] - The company sold its entire equity interest in Animoca Brands Corporation Limited for $809,000 (approximately HK$6.31 million) in March 2023[49] - New Huo Asset Management (Hong Kong) Limited entered into a technical advisory services agreement with Gaosheng Limited to establish a limited partnership fund aimed at investing in the commercialization of intellectual property involving various products[53] - The company sold 100% of the issued share capital of New Huo Solutions Limited for HKD 205,706,355.00[125] - The company sold 80% of the issued share capital of HBTPower Limited and HBTPower Inc. for USD 6,624,740.00 (approximately HKD 52,002,023.00)[125] - The net proceeds from the subscription of Subscription Shares I and II were HKD 154.4 million and HKD 170.2 million, respectively[128] - The company invested HKD 148.7 million to acquire 100% equity of FIL Limited, a Hong Kong-registered company engaged in cryptocurrency mining activities[193] - The company holds a 50% stake in the fund as of September 30, 2023, and is cautiously optimistic about the cryptocurrency mining ecosystem[194] - The company holds a 96.6% stake in the fund company as of September 30, 2022, and is optimistic about the cryptocurrency industry, focusing on top 50 cryptocurrencies and virtual asset futures[196] - The company signed a sale agreement for New Huo Solutions with a total consideration of HKD 205,706,355.00, but the transaction was not completed as of September 30, 2023[197] Share Issuance and Capital Structure - The company entered into a subscription agreement with Mr. Du Jun, the CEO and executive director, to issue 74,700,000 shares at HK$2.08 per share, totaling HK$155,376,000[67] - The company also entered into a subscription agreement with ON CHAIN Technology LIMITED to issue 82,300,000 shares at HK$2.08 per share[67] - The company issued 74,700,000 ordinary shares to Mr. Du Jun at a net price of HKD 2.07 per share[98][99] - The subscription price for shares was determined based on the closing price of HKD 2.30 per share on the Hong Kong Stock Exchange as of April 26, 2023[100] - The company has utilized the net proceeds as follows: approximately HKD 120 million for repaying outstanding loans, HKD 23.5 million for business development, and HKD 50 million for general working capital[102] - As of the reporting date, approximately HKD 131.5 million of the net proceeds remain unused, with HKD 105 million allocated for repaying loans by February 2024 and HKD 26.5 million for business development in 2024[102] - The company entered into a subscription agreement II with ON CHAIN Technology LIMITED on April 26, 2023, agreeing to issue 82,300,000 subscription shares II at a price of HKD 2.08 per share[124] - The company issued a total of 157,000,000 subscription shares at a price of HKD 2.08 per share on October 10, 2023, increasing the total number of issued shares from 308,960,665 to 465,960,665[146] Corporate Governance and Shareholder Structure - The company revised its share option plan to align with the updated listing rules effective from January 1, 2023[54] - The company changed its stock ticker from "Huobi Tech" to "New Huo Tech" (English) and from "火幣科技" to "新火科技控股" (Chinese), effective from November 22, 2022[56] - The company further changed its stock ticker from "NEW HUO TECH" to "SINOHOPE TECH" (English), effective from October 16, 2023, while the Chinese ticker remained unchanged[57] - The company's share option plan was further amended on July 28, 2023, to allow vesting periods exceeding one fiscal year, enabling continuous assessment of participants' performance[115] - As of September 30, 2023, the total number of unexercised share options was 53,334, a significant decrease from 1,075,334 on September 30, 2022[113] - The company's Chairman, Mr. Li Lin, holds a 40.47% stake in the company through controlled entities[142][144] - Avenir Capital Inc. holds a 37.73% stake in the company as a beneficial owner[144] - HBCapital Limited holds a 2.73% stake in the company as a beneficial owner[144] - Mr. Shen Nanpeng holds an 11.94% stake in the company through controlled entities[144] - SC China Enterprises Limited and SNP China Holding Limited each hold an 11.94% stake in the company through controlled entities[144] - SC China Venture IV Management, L.P. and Sequoia Capital China Venture Fund IV, L.P. each hold a 9.86% stake in the company through controlled entities[144] - Sequoia Capital CV IV Senior Holdco. Ltd. and Sequoia Capital CV IV Holdco, Ltd. each hold a 9.86% stake in the company, with the latter as a beneficial owner[144] - The company granted 25,400,000 share options on October 16, 2023, with an exercise price of HKD 1.89 per share[163] - The weighted average remaining contract period for unexercised share options as of September 30, 2023, was 2,570 days[162] - The company did not purchase, redeem, or sell any of its listed securities during the 2023 fiscal year[164] - The company did not enter into any agreements that would require the issuance of shares as of September 30, 2023[165] Financial Performance and Risk Management - The company's foreign exchange risk is primarily concentrated in USD to RMB and JPY fluctuations, managed through natural hedging and forward foreign exchange contracts[73] - The company's asset-to-liability ratio decreased to 218.5% as of September 30, 2023, compared to 317.5% in the previous year[74] - Total borrowings amounted to HKD 467.2 million, consistent with the previous year's figure of HKD 467.1 million[74] - Bank financing for wholly-owned subsidiaries in Mainland China and Hong Kong was zero as of September 30, 2023, down from HKD 23.6 million in the previous year[74] - The company expects the recent restructuring to alleviate debt burden and allow focus on core businesses, with no significant impact on operations[97] - The company's distributable reserves as of September 30, 2023, showed a surplus of approximately HKD 201.86 million, including accumulated losses of HKD 380.26 million and other reserves of HKD 582.12 million[122] - The company's total employee cost for 2023 was HKD 101.9 million, a significant decrease from HKD 215.9 million in 2022, due to business sales, restructuring, and cost-cutting policies[199] Business Strategy and Focus - The company successfully sold its energy-related and electric/electronic products business on June 19, 2023, to focus on building a leading one-stop compliant digital asset service platform[151] - The company's current three major business segments are digital asset services, frontier technology business, and future investment layout, including digital asset exchanges, asset management, digital asset custody, mining farms and pools, SaaS, data center services, incubation, investment, M&A of potential projects, CeFi, DeFi, Web3.0, NFT, metaverse, and infrastructure sectors[178] - The company's New World Pioneer Mining Fund No. 1 Limited Partnership Fund is registered under the Hong Kong Limited Partnership Fund Ordinance and aims to invest in the cryptocurrency mining ecosystem, including acquiring interests in companies engaged in mining activities and supporting the mining ecosystem[192] Awards and Recognition - The company has been awarded the "Hong Kong Outstanding Asset Management Enterprise Award" by Corphub in May 2022[181] - The company has been awarded the "Best New Economy Company Award" at the 5th Golden Port Stock Annual Awards Ceremony in March 2021[184] Auditing and Compliance - The company's financial statements for the year ended September 30, 2023, have been audited by Deloitte Touche Tohmatsu, and a resolution to reappoint Deloitte as the company's auditor will be proposed at the upcoming annual general meeting[175] - The company has not been notified of any significant non-compliance with relevant laws and regulations that would have a material impact on its business and operations as of September 30, 2023[176] ESG and Stakeholder Engagement - The company has established a governance framework to ensure that its ESG strategies align with its growth strategies and has appointed Riskory Consultancy Limited as an independent ESG consultant[189] - The company places high importance on stakeholder engagement and communication, actively collecting feedback to assist in formulating operational and ESG strategies[191] - The company has partnered with the Singapore Blockchain Association as a founding member in Asia and is a member of the Hong Kong FinTech Association[179] - The company has implemented consistent statistical and disclosure methods to ensure meaningful data comparison in the future[188] Stablecoin Regulation - The Hong Kong Monetary Authority (HKMA) completed the first market consultation on the stablecoin regulatory framework and plans to submit it to the Legislative Council for review in early 2024[43]

Financial Performance - For the year ended September 30, 2023, the revenue from cryptocurrency trading business was HKD 2,810,576, a decrease of 68.6% compared to HKD 8,939,449 in 2022[2]. - The total revenue, including other businesses, was HKD 2,833,569, reflecting a decline of 68.7% from HKD 9,056,726 in the previous year[2]. - Gross profit for the year was HKD 10,389, down 90.6% from HKD 110,850, resulting in a gross margin of 0.4%, down from 1.2%[2]. - The loss before tax from continuing operations increased by 48.9% to HKD (282,173) compared to HKD (189,513) in 2022[2]. - The loss attributable to owners of the company for the year was HKD (275,959), a 47.7% increase from HKD (186,868) in the previous year[2]. - Basic and diluted loss per share from continuing operations was 88.29 HK cents, up 45.6% from 60.64 HK cents in 2022[2]. - The total revenue from continuing operations for the year ended September 30, 2023, was approximately HKD 2,833.6 million, a significant decrease of about 68.7% or HKD 6,223.1 million compared to HKD 9,056.7 million for the year ended September 30, 2022[36]. - The net loss for the year ended September 30, 2023, was approximately HKD 288.7 million, compared to a net loss of approximately HKD 206.5 million for the year ended September 30, 2022[36]. - The company reported a loss attributable to owners of the company from continuing operations of HKD 275,959,000, compared to HKD 186,868,000 in the previous year, marking an increase of approximately 47.6%[79]. - The company reported a loss of HKD 288,694,000 for the year ended September 30, 2023, compared to a loss of HKD 206,501,000 in the previous year, representing an increase in loss of approximately 39.7%[89]. Revenue Breakdown - The revenue from technology solutions business was approximately HKD 10 million for the year ended September 30, 2023, a decrease of about 87.6% or HKD 70.4 million from HKD 80.4 million in the previous year[38]. - The asset management services generated revenue of approximately HKD 4.3 million for the year ended September 30, 2023, a decrease of about 51.7% or HKD 4.6 million from HKD 8.9 million in the previous year[42]. - The revenue from custody, compliance, and consulting services was approximately HKD 1.1 million for the year ended September 30, 2023, down about 95.7% or HKD 24.3 million from HKD 25.4 million in the previous year[44]. - The revenue from virtual asset lending and cryptocurrency trading business included approximately HKD 1.6 million and HKD 2,810.6 million, respectively, for the year ended September 30, 2023[46]. - The revenue from energy-related and electric/electronic products in fiscal year 2023 was approximately HKD 160.9 million, down by about HKD 235.2 million or 59.4% from HKD 396.1 million in 2022, primarily due to slow global economic recovery[57]. Asset Management and Sales - The company completed the sale of Win Techno Inc. for USD 3,270,000 (approximately HKD 25.5 million) on November 1, 2022[4]. - The company entered into a sale agreement for shares in Animoca Brands Corporation Limited for USD 809,000 (approximately HKD 6.31 million), completed in April 2023[9]. - The company has agreed to sell its equity in New Huo Solutions Limited for a consideration of HKD 205,706,355.00[31]. - The company has also agreed to sell 80% of its equity in HBTPower Limited and HBTPower Inc. for a total consideration of approximately USD 6,624,740.00 (around HKD 52,002,023.00)[33]. - The company completed the sale of its target company for HKD 115 million, resulting in a recognition of approximately HKD 6 million in revenue post-sale[51][59]. Corporate Changes and Strategy - The company has changed its English name from "New Huo Technology Holdings Limited" to "Sinohope Technology Holdings Limited" as of September 13, 2023[21]. - The company has revised its share option plan to align with listing rules, effective from January 1, 2023[23]. - The company has approved the modification of the vesting period for share options, which may extend beyond one fiscal year, effective from July 28, 2023[24]. - The company has established a partnership with Gao Sheng Limited for a fund focused on intellectual property commercialization, combining expertise in virtual asset investment management and film production[15]. - The company is focusing on expanding its services in the Web3 sector, offering a one-stop solution for developers to facilitate entry into this emerging market[74]. - The company is optimistic about the future of virtual assets in Hong Kong, highlighting the establishment of a new licensing regime for centralized virtual asset trading platforms and the development of a regulatory framework for stablecoins[70][71]. Financial Position and Liabilities - The company’s net assets decreased to HKD 213,776,000 from HKD 147,086,000, reflecting a significant increase of approximately 45.1%[93]. - The company’s total assets decreased from HKD 808,112,000 to HKD 671,487,000, a decline of about 16.9%[91]. - The company’s current liabilities increased to HKD 424,630,000 from HKD 415,563,000, showing a slight increase of approximately 2.6%[91]. - The company’s non-current liabilities decreased significantly from HKD 505,743,000 to HKD 110,238,000, a reduction of about 78.2%[93]. - The company’s equity attributable to owners increased from HKD 134,929,000 to HKD 206,350,000, reflecting an increase of approximately 53.0%[93]. Cash Flow and Investments - The company reported a net cash outflow from operating activities of HKD 79,137,000 in 2023, compared to a net inflow of HKD 10,510,000 in 2022[143]. - The company reported a net cash outflow from operating activities of approximately HKD 245.2 million for the fiscal year 2023, down from HKD 314.8 million in fiscal year 2022[182]. - The net cash inflow from investing activities for fiscal year 2023 was approximately HKD 11.5 million, a significant decrease from HKD 133.9 million in fiscal year 2022[183]. - Financing activities generated a net cash inflow of approximately HKD 302.1 million in fiscal year 2023, compared to HKD 232.8 million in fiscal year 2022[185]. Regulatory and Compliance - The company has submitted an application to the Securities and Futures Commission for a license to operate as a virtual asset trading platform under the Securities and Futures Ordinance, but withdrew the application in January 2023 due to changes in business focus and planning[49]. - The launch of the "Hong Kong VASP Application Guardian Program" aims to assist institutions in applying for VASP licenses, enhancing compliance and operational capabilities[74]. - The company emphasizes its commitment to long-term strategies and compliance, aiming to create inclusive value for society and reasonable returns for shareholders[75]. Discontinued Operations - The group has terminated its contract manufacturing business after selling its stake in Pindong Industrial Co., Ltd., and this business is classified as discontinued operations[109]. - The total revenue from discontinued operations was HKD 160,926,000 in 2023, down from HKD 396,138,000 in 2022, indicating a significant decline of approximately 59.3%[143]. - The cost of sales for discontinued operations was HKD 150,792,000 in 2023, compared to HKD 322,294,000 in 2022, reflecting a decrease of about 53.3%[143].

附註： (ii) 於報告期間的所有已發行股份在所有方面與當時現有已發行股份享有同等地位。 | --- | --- | |-----------------------------------------------------------------------------|---------| | | 千港元 | | | | | 於 二 零 二 一 年 十 月 一 日（經 審 核） | 107,152 | | 行使購股權發行股份 | 5,099 | | | | | 於 二 零 二 二 年 九 月 三 十 日（經 審 核）、二 零 二 二 年 十 月 一 日 及 | | | 二 零 二 三 年 三 月 三 十 一 日（未 經 審 核） | 112,251 | 24. 以權益結算及股份為基礎付款的交易 於 股 份 授 權 限 額 更 新 前，根 據 該 計 劃 可 供 發 行 的 股 份 總 數 為30,000,000股，佔 本 公 司 緊 隨 本 公司股份開始在香港聯交所買賣後已發行股本10%（「先 前 股 份 授 權 限 額」）。本 公 司 股 東 於 二 零二一年三月十九日在股東週年大會上批准更新先前股份 ...

(ii) 提供技術解決方案服務；及 分 部 資 產 包 括 未 分 配 公 司 資 產（主 要 包 括 部 分 物 業、廠 房 及 設 備、使 用 權 資 產、其 他 應 收 款 項、按公允價值計入其他全面收益的金融資產、按公允價值計入損益的金融資產以及現金 及 銀 行 結 餘）以 外 的 所 有 資 產。 未分配公司收入 除所得稅前虧損 (232,960) | --- | --- | --- | --- | --- | |------------------------------------|--------------------------------|--------------------------------------|----------------------------------|---------------------------| | | 生態系統 千港元 （未經審核） | 解決方案服務 千港元 （未經審核） | 合約製造 千港元 （未經審核） | 總 計 千港元 （未經審核） | | 來自外部客戶收益 | 96,810 | 44,544 | 210,447 | 351,801 ...

Economic Environment - The company reported a challenging environment in 2022, with global inflation pressures and tightening financial policies leading to increased risks of "stagflation" [4]. - The technology sector is experiencing consolidation trends, with significant events in the virtual asset industry, such as the collapses of Luna and FTX, prompting a reevaluation of risk management [8]. Compliance and Regulatory Landscape - The company emphasizes the importance of compliance and security as key focuses for organizations entering the cryptocurrency space, with clearer regulatory frameworks emerging globally [8]. - The company is actively monitoring the evolving regulatory landscape for virtual assets, with initiatives from G20 and local governments indicating a trend towards clearer regulations [8]. - The company has received licenses from the Hong Kong Securities and Futures Commission for asset management and investment advice, enhancing its compliance capabilities [108]. - The company emphasizes compliance in its operations, with a dedicated compliance team actively participating in the regulatory process for digital assets [108]. - The group aims to enhance regulatory confidence in virtual asset categories through its initiatives and partnerships [155]. Financial Performance - The financial performance for the fiscal year ending September 30, 2022, is detailed in the financial statements on pages 107 to 207 of the annual report [18]. - The annual report includes a summary of the group's financial performance over the past five fiscal years on page 208 [19]. - The group recorded total revenue of approximately HKD 9,452.9 million for the fiscal year ending September 30, 2022, a significant increase of approximately 1,447.8% or HKD 8,842.2 million compared to HKD 610.7 million for the fiscal year ending September 30, 2021 [176]. - The group's gross profit for the fiscal year 2022 was approximately HKD 184.7 million, a decrease of about 39% or HKD 117.9 million from HKD 302.6 million in the previous fiscal year [176]. - The basic loss per share for the fiscal year 2022 was HKD 0.647913, compared to a basic earnings per share of HKD 0.460276 in the previous fiscal year [177]. Revenue Streams - The revenue generated from asset management services for the fiscal year 2022 was approximately HKD 8.9 million [64]. - The revenue from trust, custody, and advisory services for the fiscal year 2022 was approximately HKD 26.2 million [66]. - Revenue from the energy-related and electric/electronic products business was approximately HKD 396.3 million, an increase of about HKD 20 million or 5.3% from HKD 376.3 million in the previous year [178]. - The technology solutions business generated revenue of approximately HKD 72.8 million in fiscal year 2022, down from HKD 99.2 million in the previous year [181]. - Revenue from the software as a service (SaaS) business decreased by 93.8% or approximately HKD 114.9 million, from approximately HKD 122.5 million in the previous year to about HKD 7.6 million in fiscal year 2022 [183]. Shareholder Information - The total number of shares available for issuance under the share option plan is 30,720,566, representing about 10% of the company's issued share capital [77]. - The company must seek shareholder approval if the total value of options granted exceeds HKD 5,000,000 [52]. - Mr. Li holds 185,757,696 shares, representing 60.12% of the company's equity [86]. - Sequoia Capital CV IV Holdco, Ltd. owns 30,467,072 shares, accounting for approximately 9.86% of the total issued share capital [89]. - The company has a public float of approximately 11.94% of its total issued share capital [117]. Employee and Career Development - The company is committed to providing career development opportunities for its employees, recognizing their knowledge and skills as vital assets [20]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to sustainable development and has outlined its environmental, social, and governance initiatives in its report [97]. - The company integrates environmental, social, and governance considerations into its decision-making processes, aligning them with growth strategies [114]. - The group has established effective management policies and control systems regarding environmental, social, and governance matters for the fiscal year 2022 [143]. - The group aims to reduce greenhouse gas emissions intensity (in tons of CO2 equivalent per employee) over the next three years, using 2021 as the baseline year [189]. - The group has a dedicated working group to monitor and evaluate its performance in environmental, social, and governance (ESG) aspects [161]. Business Strategy and Development - The company has established a strategic investment and acquisition department, Huobi Tech Capital, to explore opportunities in Web 3.0, DeFi, NFT, and the Metaverse [126]. - The company aims to become a leading one-stop compliant virtual asset service platform, providing services such as cloud services, data center services, and software as a service (SaaS) [128]. - The company is focused on developing a blockchain ecosystem and virtual asset ecosystem to drive high-quality industry development [128]. - New Huo Asset Management aims to bridge traditional and virtual asset investments, providing integrated investment solutions to professional investors [186]. Awards and Recognition - The company has been recognized with awards such as the "Outstanding Asset Management Company Award" in May 2022, reflecting its industry standing [110]. - The group received the "Outstanding Listed Company Award 2021" and the "2020 Outstanding Brand Award" at the respective award ceremonies [157][158].

Revenue and Profitability - Revenue for the year ended September 30, 2022, reached HKD 9,452,864, a significant increase of 1,447.8% compared to HKD 610,713 in 2021[2] - Cryptocurrency trading revenue was HKD 8,939,289, representing a 100% increase as it was not reported in the previous year[2] - Gross profit decreased to HKD 184,694, down 39.0% from HKD 302,631 in the previous year, resulting in a gross margin of only 2.0%[2] - The company reported a loss attributable to owners of HKD 199,670, compared to a profit of HKD 141,477 in the previous year, marking a decline of 241.1%[2] - The total revenue for the fiscal year ending September 30, 2022, was approximately HKD 9,452.9 million, an increase of about 1,447.8% or HKD 8,842.2 million compared to HKD 610.7 million for the fiscal year ending September 30, 2021[49] - The net loss for the fiscal year 2022 was approximately HKD 206.5 million, compared to a net profit of approximately HKD 141.5 million in the fiscal year 2021[49] - The basic loss per share for the fiscal year 2022 was HKD 0.647913, compared to a basic earnings per share of HKD 0.460276 in the previous year[49] - The total comprehensive loss for the year amounted to HKD 219.0 million, compared to a comprehensive income of HKD 146.0 million in 2021[84] Financial Position - Cash and cash equivalents decreased significantly to HKD (144,487), down 156.0% from HKD 257,822 in the previous year[2] - Total equity fell to HKD 147,086, a decrease of 47.2% from HKD 278,605 in the previous year[2] - The group reported a loss before tax of approximately HKD 196.4 million for the fiscal year 2022, compared to a profit of approximately HKD 181.5 million in 2021[74] - The income tax expense decreased from approximately HKD 40.0 million in 2021 to approximately HKD 10.1 million in 2022, a reduction of about HKD 29.9 million[75] - The group recorded a loss after tax of approximately HKD 206.5 million in 2022, compared to a profit of approximately HKD 141.5 million in 2021[76] - The company’s net asset value decreased to HKD 147,086 thousand in 2022, reflecting a significant reduction in financial stability[88] - The company’s debt-to-asset ratio was approximately 317.5%, up from 105.7% in 2021[165] - Total borrowings amounted to approximately HKD 467.1 million, an increase from HKD 294.4 million in 2021[165] Operational Performance - The company operates three reportable segments: contract manufacturing, technology solutions services, and virtual asset ecosystem[100] - The technology solutions business generated revenue of approximately HKD 72.8 million in fiscal year 2022, down from HKD 99.2 million in the previous year[53] - The revenue from the Software as a Service (SaaS) business decreased by 93.8% from approximately HKD 122.5 million in 2021 to about HKD 7.6 million in 2022 due to major client losses and a decline in virtual asset trading volume[55] - The virtual asset lending and over-the-counter trading business generated revenue of approximately HKD 8,939.3 million, becoming the main source of income for the company[65] - The company sold Win Techno Inc. for a consideration of USD 3,270,000 (approximately HKD 25.5 million) after the reporting period[54] Investments and Partnerships - New Huo Solutions agreed to invest USD 10,000,000 (approximately HKD 78,000,000) in the New World Pioneer Mining Fund[4] - New Huo Solutions also committed to invest USD 15,000,000 (approximately HKD 117,000,000) in the NH MultiStrategy Crypto Fund SP[8] - The company is collaborating with Wan Fang Family Office to establish a digital family office platform for high-net-worth investors[11] - The partnership aims to bridge traditional investors with virtual asset investments, providing services such as wallet integration and inheritance consulting[11] Custodial Services - The annual cap for custodial fees under the new custodial service agreements is set at HKD 73,000,000 for the years 2021, 2022, and 2023[28] - The annual cap for the HB custodial service agreement is set at HKD 14,000,000 for the years 2021, 2022, and 2023[32] - The annual cap for the OF custodial service agreement is set at HKD 11,600,000 for the years 2021, 2022, and 2023[36] - The new custodial service agreements with Orion Financial and HB Infinite became effective on December 27, 2021, and have a term until September 30, 2024[20] - The custodial fees will be calculated based on a percentage of the asset value held in the custodial account, with a minimum withdrawal fee of 0.1% of the asset value in USDT[21] Administrative and Operational Costs - Administrative expenses increased by 160.4% from approximately HKD 128.4 million in 2021 to about HKD 334.3 million in 2022, primarily due to employee benefits and one-time relocation costs[71] - Financing costs rose by approximately 38.7% from about HKD 13.7 million in 2021 to approximately HKD 19.0 million in 2022, consistent with the increase in borrowings[73] - Total employee costs for the fiscal year 2022 amounted to approximately HKD 215.9 million, up from HKD 141.0 million in 2021, primarily due to hiring high-end professionals for virtual asset and financial-related licenses[186] Corporate Governance and Compliance - The company has adopted corporate governance practices in line with the Hong Kong Stock Exchange's listing rules, with a dual role arrangement for the chairman and CEO[189] - The board composition includes independent non-executive directors, ensuring checks and balances in decision-making[197] - The audit committee, consisting of three independent non-executive directors, reviewed the annual financial performance for the year ending September 30, 2022[195] - The company has implemented anti-money laundering policies and procedures to mitigate risks associated with its trust and custodial services[185] Future Outlook and Strategic Initiatives - The group plans to develop a new hybrid virtual asset service platform called Sinohope, combining centralized and decentralized services[79] - The group aims to leverage government support and regulatory improvements in Hong Kong to explore business opportunities in the virtual asset sector[79] - The company has implemented measures to expand its IT infrastructure and hire experienced personnel to support business growth in the virtual asset sector[180] - The company plans to continue monitoring the impact of COVID-19 on its financial situation and business performance[187]

Financial Performance - The group recorded total revenue of approximately HKD 351.8 million for the six months ended March 31, 2022, an increase of about 34.4% or HKD 90.1 million compared to HKD 261.7 million for the same period in 2021[55]. - The group reported a loss of HKD 48.8 million for the 2022 period, compared to a profit of HKD 54.1 million in the 2021 period, with basic and diluted loss per share of HKD 15.84[56]. - Revenue from energy-related and electric/electronic products business was HKD 210.4 million, an increase of approximately 30.9% or HKD 49.7 million from HKD 160.7 million in the previous period[59]. - The technology solutions business generated revenue of approximately HKD 38.7 million, primarily due to cloud-related services[61]. - Revenue from software as a service (SaaS) significantly declined by 90.6% or HKD 55.7 million to HKD 5.9 million, mainly due to a decrease in virtual asset trading volume[63]. - The group reported a total comprehensive loss of HKD 41,900,000 for the six months ended March 31, 2022, compared to a total comprehensive income of HKD 58,521,000 for the same period in 2021[127]. - The group recorded a loss before tax of approximately HKD 44.6 million in 2022, compared to a profit of about HKD 73.3 million in 2021, attributed to increased administrative expenses and development costs[80]. - The group’s net asset value decreased to HKD 244,800,000 from HKD 278,605,000, a decline of 12.1%[125]. Revenue Sources - Revenue from virtual asset lending and over-the-counter trading business amounted to HKD 76.1 million[73]. - The asset management services generated revenue of HKD 8.2 million during the 2022 period[67]. - The trust and custody services generated revenue of HKD 12.5 million during the 2022 period[68]. - Other income increased from HKD 3.0 million in 2021 to HKD 10.2 million in 2022, primarily due to gains in cryptocurrency fair value[76]. Expenses and Costs - Administrative expenses rose by approximately HKD 92.7 million or 174.2% from about HKD 53.2 million in 2021 to about HKD 145.9 million in 2022, driven by increased employee costs for high-end talent and expenses related to developing existing and new businesses[77]. - The cost of sales for the energy-related and electric/electronic products business was HKD 172.0 million, an increase of approximately 38.3% or HKD 47.6 million from HKD 124.4 million in the previous period[59]. - The company experienced a substantial increase in depreciation expenses, with property, plant, and equipment depreciation rising to HKD 5,305,000 in 2022 from HKD 3,151,000 in 2021[130]. Investments and Acquisitions - The group made significant investments in the cryptocurrency sector, including a $10 million investment in the New World Pioneer Mining Fund and a $15 million investment in the Huobi Multi Strategy Crypto Fund SP[104][108]. - The group acquired 100% equity in Fil Limited for approximately HKD 148.7 million, which is involved in generating revenue through cryptocurrency mining activities[110]. - The group plans to further invest in the cryptocurrency mining ecosystem through its funds to enhance financial returns, reflecting optimism about the sector's prospects[110]. Regulatory Compliance and Strategy - The group is actively engaging with global regulators to foster a fair digital asset market environment through initiatives like the "Crypto Market Integrity Alliance" launched in February 2022[12]. - The company is focused on building a compliant trading platform in response to global regulatory trends, with significant developments in regions like Central African Republic adopting Bitcoin as legal tender[15]. - The company aims to establish a "one-stop virtual asset compliance service platform" to lead traditional financial institutions into the virtual asset world[114]. Market Trends and Economic Outlook - The International Monetary Fund (IMF) has revised global economic growth forecasts down to 3.6% for 2022 and 2023, reflecting ongoing economic uncertainties[8]. - The total value of mergers and acquisitions in the cryptocurrency sector surged to $55 billion in 2021, a nearly 50-fold increase from $1.1 billion the previous year[18]. Human Resources - The total employment cost for the group during the period was approximately HKD 91.5 million, an increase from HKD 60.3 million in the previous period[113]. - The group has 797 employees as of March 31, 2022, compared to 728 employees as of September 30, 2021[113]. Financial Position - The group had a net cash position of HKD 297.3 million as of March 31, 2022, compared to HKD 260.9 million as of September 30, 2021[85]. - Total assets as of March 31, 2022, amounted to HKD 1,005,150,000, compared to HKD 785,005,000 as of September 30, 2021, reflecting a growth of 28.0%[125]. - The company’s total liabilities as of March 31, 2022, were primarily composed of short-term financial obligations, with no significant differences between the fair value and book value of these liabilities[184]. Risk Management - The overall risk management focuses on minimizing potential adverse impacts on financial performance due to market risks, including foreign currency and interest rate risks[154]. - The company does not have a formal written risk management policy but regularly meets to assess and manage financial risks[154]. - The expected credit loss rate for trade receivables is assessed as minimal, with overdue amounts of 0 to 60 days at 0.14% and over 60 days ranging from 2.07% to 29.58%[158].

Financial Performance - Revenue for the six months ended March 31, 2022, was HKD 351,801,000, representing a 34.4% increase from HKD 261,722,000 in the previous year[2] - Gross profit decreased to HKD 101,173,000, with a gross margin of 28.8%, down 22.4 percentage points from 51.2% in the prior year[2] - The company reported a loss attributable to shareholders of HKD 48,787,000, compared to a profit of HKD 54,106,000 in the same period last year[5] - Basic and diluted loss per share was HKD 15.84, compared to earnings of HKD 17.62 in the previous year[6] - The group reported a loss before tax of HKD 44,568,000 for the six months ended March 31, 2022[31] - The group incurred a loss of HKD 48.8 million during the period, compared to a profit of HKD 54.1 million in the same period of 2021[136] Assets and Liabilities - Total assets increased to HKD 1,005,150,000 from HKD 785,005,000 as of September 30, 2021[8] - Current liabilities rose to HKD 575,144,000, up from HKD 276,279,000 in the previous period[10] - Non-current liabilities increased significantly to HKD 515,296,000 from HKD 323,245,000[10] - Total assets for the group as of March 31, 2022, amounted to HKD 1,335,240,000, with segment assets of HKD 387,135,000 for contract manufacturing, HKD 123,130,000 for technology solution services, and HKD 718,401,000 for the virtual asset ecosystem[35] - The total liabilities for the group as of March 31, 2022, were HKD 1,090,440,000, with segment liabilities of HKD 244,601,000 for contract manufacturing, HKD 87,717,000 for technology solution services, and HKD 317,109,000 for the virtual asset ecosystem[35] Revenue Breakdown - For the six months ended March 31, 2022, external customer revenue from contract manufacturing was HKD 210,447,000, from technology solution services was HKD 44,544,000, and from the virtual asset ecosystem was HKD 96,810,000, totaling HKD 351,801,000[31] - Revenue from major customers included Customer A contributing HKD 110,076,000, up from HKD 64,184,000 in 2021, and Customer B contributing HKD 38,725,000, up from HKD 29,761,000[43] - Revenue from the Chinese market (including Hong Kong) reached HKD 128,588,000, significantly increasing from HKD 20,813,000 in the previous year[40] - Sales of coil products generated HKD 118,543,000, a substantial rise from HKD 68,613,000 in the prior year[47] Cryptocurrency Operations - The group actively trades cryptocurrencies, purchasing them for resale to gain profits from price fluctuations, applying fair value measurement for virtual assets[18] - The group recognizes cryptocurrency collateral received from counterparties as assets, recorded at fair value under liabilities[19] - Borrowings denominated in cryptocurrencies are initially recognized at fair value, consistent with the treatment of cryptocurrency inventory[20] - The company reported a net gain of HKD 9,462,000 from cryptocurrency fair value, with no such income reported in the previous year[49] Expenses and Costs - The group’s administrative expenses for the six months ended March 31, 2022, were HKD 49,830,000, and financing costs were HKD 5,300,000[31] - Financing costs totaled HKD 7,246,000, slightly increasing from HKD 6,896,000 in the previous year[53] - Administrative expenses rose by approximately 174.2% from HKD 53.2 million in 2021 to HKD 145.9 million in 2022[155] Cash Flow and Financing - Cash and bank balances decreased to HKD 374,566,000 from HKD 552,175,000[8] - Net cash used in operating activities was approximately HKD 267.9 million in 2022, compared to HKD 1.8 million in 2021[164] - Net cash used in investing activities was approximately HKD 76.1 million in 2022, significantly higher than HKD 2.2 million in 2021[166] - Net cash from financing activities was approximately HKD 170.8 million in 2022, compared to cash used of HKD 5.2 million in 2021[167] Taxation - The company's income tax expense for the period was HKD 4,219,000, a decrease from HKD 19,214,000 in the previous year, reflecting a significant reduction of approximately 78%[58] - The estimated taxable profits in Hong Kong were subject to a tax rate of 16.5%, consistent with the previous year, indicating stable tax policy[58] Stock Options and Employee Compensation - The company granted 6,192,000 stock options on April 3, 2019, with an exercise price of HKD 3.13 per share[92] - The fair value of the stock options granted on April 3, 2019, was approximately HKD 8,854,000, equating to HKD 1.4299 per option[93] - The total expense for share-based payments during the six months ended March 31, 2022, was HKD 369,000, compared to HKD 1,562,000 for the same period in 2021[109] Employee and Operational Metrics - The company had 797 employees as of March 31, 2022, an increase from 728 employees on September 30, 2021[178] - The total employment cost for the period was approximately 91.5 million HKD, compared to 60.3 million HKD in the previous period[178] Future Plans and Investments - The company plans to establish a "one-stop virtual asset compliance service platform" to lead traditional financial institutions into the virtual asset world[179] - Huobi Solutions has committed to invest USD 10 million (approximately HKD 78 million) in the New World Pioneer Mining Fund No. 1 Limited Partnership[124] - Huobi Solutions has agreed to invest USD 15 million (approximately HKD 117 million) in the Huobi Multi Strategy Crypto Fund SP[128]