Core Viewpoint - Longyun International (MATH) has shown significant financial growth, with a notable increase in both revenue and net profit, indicating strong operational performance and potential investment opportunities [1]. Financial Performance - As of March 31, 2025, Longyun International reported total revenue of $44.57 million, representing a year-on-year growth of 165.86% [1]. - The company's net profit attributable to shareholders reached $15.89 million, marking a substantial increase of 531.99% compared to the previous year [1]. Company Overview - Metalpha Technology Holding Limited, formerly known as Longyun Network Technology Co., Ltd., provides supply chain management platform services in China [1]. - The company also offers cryptocurrency derivative services, including market-making on cryptocurrency-related products and collaborating with clients to create customized tools for experienced investors to establish or close investment positions or implement hedging strategies [1].

Core Viewpoint - Longyun International (MATH) has shown significant financial growth, with a notable increase in both revenue and net profit, indicating strong operational performance and potential investment opportunities [1]. Financial Performance - As of March 31, 2025, Longyun International reported total revenue of $44.5673 million, representing a year-on-year growth of 165.86% [1]. - The company's net profit attributable to shareholders reached $15.8948 million, marking a substantial increase of 531.99% compared to the previous year [1]. Market Activity - On August 12, Longyun International's stock opened with a rise of 5.07%, trading at $2.90 per share, with a total transaction volume of $5,846 [1]. - The company's total market capitalization stands at $115 million [1]. Business Operations - Longyun International, formerly known as Metalpha Technology Holding Limited, provides supply chain management platform services in China [1]. - The company also offers cryptocurrency derivative services, including market-making on cryptocurrency-related products and collaborating with clients to create customized tools for experienced investors to establish or close investment positions or implement hedging strategies [1].

Core Viewpoint - Longyun International (MATH) has shown significant financial growth, with a notable increase in both revenue and net profit, indicating strong performance in the supply chain management and cryptocurrency derivative services sectors [1]. Financial Performance - As of March 31, 2025, Longyun International reported total revenue of $44.57 million, representing a year-on-year growth of 165.86% [1]. - The company's net profit attributable to shareholders reached $15.89 million, marking a substantial increase of 531.99% compared to the previous year [1]. Company Overview - Metalpha Technology Holding Limited, formerly known as Longyun Network Technology Co., Ltd., provides supply chain management platform services in China [1]. - The company also offers cryptocurrency derivative services, including market-making on cryptocurrency-related products and collaborating with clients to create customized tools for experienced investors to establish or close investment positions or implement hedging strategies [1].

Core Viewpoint - Longyun International (MATH) has shown significant financial growth, with a notable increase in both revenue and net profit, indicating strong performance in the supply chain management and cryptocurrency derivative services sectors [1]. Financial Performance - As of March 31, 2025, Longyun International reported total revenue of $44.57 million, representing a year-on-year growth of 165.86% [1]. - The company's net profit attributable to shareholders reached $15.89 million, marking a substantial increase of 531.99% compared to the previous year [1]. Company Overview - Longyun International, formerly known as Metalpha Technology Holding Limited, provides supply chain management platform services in China [1]. - The company also offers cryptocurrency derivative services, including market-making on cryptocurrency-related products and collaborating with clients to create customized tools for experienced investors to establish or close investment positions or implement hedging strategies [1].

Core Viewpoint - Longyun International (MATH) has shown significant financial growth, with a notable increase in both revenue and net profit, indicating strong performance in the supply chain management and cryptocurrency derivative services sectors [1]. Financial Performance - As of March 31, 2025, Longyun International reported total revenue of $44.57 million, representing a year-on-year growth of 165.86% [1]. - The company's net profit attributable to shareholders reached $15.89 million, marking a substantial increase of 531.99% compared to the previous year [1]. Company Overview - Longyun International, formerly known as Metalpha Technology Holding Limited, provides supply chain management platform services in China [1]. - The company also offers cryptocurrency derivative product services, including market-making on cryptocurrency-related products and collaborating with clients to create customized tools for experienced investors [1].

Core Insights - Longyun International (MATH) opened with a significant increase of 15.27%, reaching a price of $4.00 per share, with a trading volume of $2.7 million and a total market capitalization of $158 million [1] Financial Performance - As of March 31, 2025, Longyun International reported total revenue of $44.57 million, representing a year-on-year growth of 165.86% [1] - The company's net profit attributable to shareholders was $15.89 million, showing a remarkable year-on-year increase of 531.99% [1] Company Overview - Metalpha Technology Holding Limited, formerly known as Longyun Network Technology Co., Ltd., provides supply chain management platform services in China [1] - The company also offers cryptocurrency derivative services, including market-making on cryptocurrency-related products and collaborating with clients to create customized tools for experienced investors to establish or close investment positions or implement hedging strategies [1]

Core Insights - Metalpha Technology Holding Limited reported significant growth in its wealth management business for the fiscal year ended March 31, 2025, achieving $44.6 million in income, which represents a 266% increase compared to the previous year [2][4] - The company turned a net profit of $15.9 million, a notable recovery from a net loss of $3.7 million in the prior year [2][4] - The CEO highlighted the transformative growth driven by the mass adoption of digital assets and clearer global regulations, positioning the company to lead in digital asset wealth management [4] Financial Performance - Income from Wealth Management Business: $44,567,257 for FY2025, up from $16,763,545 in FY2024 and $5,692,056 in FY2023 [4] - Gross Profit: $21,302,293 for FY2025, compared to $5,627,748 in FY2024 and $2,020,658 in FY2023 [4] - Profit for the Year: $15,894,755 for FY2025, a turnaround from a loss of $3,679,409 in FY2024 and a loss of $20,167,351 in FY2023 [4] Company Overview - Metalpha is focused on providing digital asset-focused wealth management services through an institutional-grade platform [5] - The company aims to lead in digital asset-based wealth management, emphasizing innovation and transparency for its clients [5]

PART I [Item 3. Key Information](index=8&type=section&id=ITEM%203.%20KEY%20INFORMATION) The company operates as a holding company with significant business, jurisdictional, and stock-related risks - Metalpha Technology Holding Limited is a Cayman Islands holding company that conducts its operations through subsidiaries in the British Virgin Islands, Panama, and Hong Kong[25](index=25&type=chunk) [Risk Factors](index=9&type=section&id=D.%20Risk%20Factors) The company faces substantial risks from its limited operating history, customer concentration, regulatory landscape, and PFIC status - The company has a limited operating history in the wealth management sector, having started in December 2021, and previously ceased all business operations in mainland China in March 2023[33](index=33&type=chunk) - For FY2025, the top three customers accounted for approximately **35.7% of the total transaction size**, indicating a significant, though decreasing, customer concentration risk[42](index=42&type=chunk)[211](index=211&type=chunk) - The company relies on its substantial shareholder, Northstar Digital Holding, which accounted for **10.5% of the total transaction size in FY2025** and provides critical technical and customer referral services[39](index=39&type=chunk)[40](index=40&type=chunk) - The company has received multiple non-compliance notifications from Nasdaq regarding minimum bid price and timely filing of reports, although compliance was subsequently regained for each instance[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk) - Based on its analysis, the company believes it was a **Passive Foreign Investment Company (PFIC)** for the fiscal year ended March 31, 2025, which can lead to adverse U.S. federal income tax consequences for U.S. shareholders[125](index=125&type=chunk)[366](index=366&type=chunk) [Item 4. Information on the Company](index=31&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) The company transitioned from supply chain management to a digital asset wealth management service provider [History and Development of the Company](index=31&type=section&id=A.%20History%20and%20Development%20of%20the%20Company) The company rebranded, divested its China business, and expanded into North America through a joint venture - The company changed its corporate name from Dragon Victory International Limited to Metalpha Technology Holding Limited in November 2022[127](index=127&type=chunk) - In March 2023, the company completed the disposition of all its business operations in mainland China, terminating its VIE structure and shifting focus away from the region[135](index=135&type=chunk) - In April 2024, the company partnered with Algos Electronics Corp. to establish a joint venture, NOWLIT FinTech Solutions Corp., in Canada to target the North American market[137](index=137&type=chunk) [Business Overview](index=32&type=section&id=B.%20Business%20Overview) The business generates income from cryptocurrency derivatives and a new licensed securities advising segment in Hong Kong Income from Wealth Management Services (FY2023-FY2025) | Fiscal Year Ended March 31, | 2023 | 2024 | 2025 | | :--- | :--- | :--- | :--- | | Income from Wealth Management Services | $5.7 million | $16.8 million | $41.4 million | - In FY2025, securities advising and asset management services, a new business line, accounted for **11.2% of total income**[141](index=141&type=chunk)[146](index=146&type=chunk) - The company's strategy focuses on large institutions and high-net-worth individuals, offering structured derivative products based on major cryptocurrencies like Bitcoin and Ethereum to provide risk-adjusted returns[143](index=143&type=chunk)[153](index=153&type=chunk) - The company's Hong Kong subsidiary, LSQ Capital Limited, holds Type 1 (Dealing in Securities), Type 4 (Advising on Securities), and Type 9 (Asset Management) licenses from the SFC[146](index=146&type=chunk)[217](index=217&type=chunk) [Item 5. Operating and Financial Review and Prospects](index=49&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) The company's strategic shift to crypto wealth management drove significant income growth and a return to profitability in FY2025 Financial Performance from Continuing Operations (FY2023-FY2025) | Fiscal Year Ended March 31, | 2023 | 2024 | 2025 | | :--- | :--- | :--- | :--- | | **Income** | $5.7 million | $16.8 million | $46.6 million | | **Profit/(Loss)** | ($11.9 million) | ($3.7 million) | $15.9 million | - Customer concentration has decreased over the past three years; the top three customers represented **90.3%** of transaction size in FY2023, **53.2%** in FY2024, and **35.7%** in FY2025[211](index=211&type=chunk) [Results of Operations](index=53&type=section&id=Results%20of%20Operations) The company achieved a significant turnaround in FY2025 with a $15.9 million net profit, driven by a 166% revenue increase Consolidated Results of Operations (FY2023-FY2025) | For the fiscal year ended March 31, | 2025 (US$) | 2024 (US$) | 2023 (US$) | | :--- | :--- | :--- | :--- | | **Revenue** | 44,567,257 | 16,763,545 | 5,692,056 | | **Gross profit** | 21,302,293 | 5,627,748 | 2,020,658 | | **Profit (loss) for the year from continuing operation** | 15,894,755 | (3,679,409) | (11,919,338) | | **Profit (loss) for the year** | 15,894,755 | (3,679,409) | (20,167,351) | | **EPS - basic and diluted (US$)** | 0.41 | (0.11) | (0.76) | [Liquidity and Capital Resources](index=56&type=section&id=C.%20Liquidity%20and%20Capital%20Resources) Cash increased to $6.9 million in FY2025, supported by positive operating cash flow and financing from a private placement Summary of Cash Flows (FY2023-FY2025) | For the Fiscal Year Ended March 31, | 2025 (US$) | 2024 (US$) | 2023 (US$) | | :--- | :--- | :--- | :--- | | Net cash from/(used in) operating activities | 71,990 | (11,599,148) | (1,140,324) | | Net cash (used in)/from investing activities | (23,309) | 32,678 | (20,423) | | Net cash from financing activities | 2,108,179 | 9,733,969 | 2,595,088 | | **Cash and cash equivalents at end of year** | **6,919,869** | **4,880,413** | **6,748,115** | [Critical Accounting Estimates](index=59&type=section&id=F.%20Critical%20Accounting%20Estimates) Critical estimates involve valuing digital assets as inventory at fair value, with payables using complex Level 3 models - Digital assets are accounted for as inventories under IAS 2 for commodity broker-traders and are measured at fair value less costs to sell, with changes in fair value recognized in profit or loss[257](index=257&type=chunk)[556](index=556&type=chunk) Fair Value Hierarchy Summary (As of March 31, 2025) | Description | Level 1 (US$) | Level 3 (US$) | Total (US$) | | :--- | :--- | :--- | :--- | | Digital assets | 221,162,809 | - | 221,162,809 | | Listed equity securities | 13,538,564 | - | 13,538,564 | | Unlisted equity securities | - | 240,001 | 240,001 | | Digital assets payable | - | (138,224,157) | (138,224,157) | | Digital assets payable – related party | - | (10,702,814) | (10,702,814) | - The fair value of Level 3 digital asset payables is determined using the Binomial Option Pricing Model and Black-Scholes Pricing Model, which rely on significant unobservable inputs like **expected volatility (ranging from 51.57% to 88.84%)**[264](index=264&type=chunk)[668](index=668&type=chunk) [Item 6. Directors, Senior Management and Employees](index=62&type=section&id=ITEM%206.%20DIRECTORS%2C%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) Leadership compensation totaled $0.5 million in FY2025, with share ownership concentrated in its largest shareholder, Northstar Digital Holding Major Shareholders (as of May 31, 2025) | Name of Beneficial Owners | Percentage of Ordinary Shares | Percentage of Aggregate Voting Power | | :--- | :--- | :--- | | Northstar Digital Holding | 27.8% | 27.8% | | LSQ Investment Fund SPC-Disruptive Opportunity Fund II SP | 9.4% | 9.4% | | Xianqun Hu | 9.3% | 9.3% | | Folius Digital Opportunities Master Fund Ltd. | 8.9% | 8.9% | | All directors and executive officers as a group | 5.9% | 5.9% | - For the fiscal year ended March 31, 2025, the aggregate cash compensation paid to directors and executive officers was approximately **$0.5 million**[280](index=280&type=chunk) - The company has a 2022 and a 2024 Share Incentive Plan to grant awards to employees and other eligible persons; the 2024 plan includes an evergreen provision to increase the share reserve annually[281](index=281&type=chunk)[282](index=282&type=chunk) [Item 7. Major Shareholders and Related Party Transactions](index=70&type=section&id=ITEM%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) The company has significant operational and financial interdependence with its major shareholder and key customer, Northstar Digital Holding - Substantial shareholder Northstar Digital Holding is also a key customer and provides technical management and customer introduction services, indicating a high degree of operational and financial interdependence[302](index=302&type=chunk) Balances with Northstar Digital Holding | As of March 31, | 2023 (US$) | 2024 (US$) | 2025 (US$) | | :--- | :--- | :--- | :--- | | Digital assets payables | 21.1 million | 2.9 million | nil | | Payables to customers | 4.6 million | 3,548 | 10,483 | - For FY2025, the aggregate value of derivative products entered into with other related parties (shareholders, directors, officers) was approximately **$28.7 million**[305](index=305&type=chunk) [Item 10. Additional Information](index=72&type=section&id=ITEM%2010.%20ADDITIONAL%20INFORMATION) Key disclosures include material financing contracts and the company's classification as a Passive Foreign Investment Company (PFIC) - The company believes it was a **Passive Foreign Investment Company (PFIC)** for its taxable year ended March 31, 2025, subjecting U.S. Holders to special adverse tax rules[366](index=366&type=chunk)[368](index=368&type=chunk) - The company entered into a securities subscription and warrant purchase agreement with Northstar Technologies in November 2022 for an aggregate consideration of **$4.5 million**, which included shares, Type A warrants, and Type B warrants[345](index=345&type=chunk) - As a Cayman Islands company, it is not subject to profits, income, gains, or appreciation taxes in its jurisdiction of incorporation[351](index=351&type=chunk) [Item 11. Quantitative and Qualitative Disclosures About Market Risk](index=82&type=section&id=ITEM%2011.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company is primarily exposed to digital asset price volatility, counterparty credit risk, and concentration risk - The company's primary market risk is **price risk** due to the significant price volatility of digital assets like Bitcoin and Ethereum[392](index=392&type=chunk)[393](index=393&type=chunk) - As of March 31, 2025, two counterparties accounted for more than 10% of digital assets payable, and two counterparties accounted for more than 10% of payables to customers, indicating **concentration risk**[398](index=398&type=chunk)[672](index=672&type=chunk) - The company's quantitative trading strategies are vulnerable to significant losses during unforeseen and extreme market events, and also face risks from defective algorithms, hacking, and counterparty failure[396](index=396&type=chunk)[660](index=660&type=chunk) PART II [Item 15. Controls and Procedures](index=86&type=section&id=ITEM%2015.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls were ineffective as of March 31, 2025, due to a lack of qualified accounting personnel - Management concluded that disclosure controls and procedures were **not effective** as of March 31, 2025, due to a lack of qualified internal accounting personnel with sufficient knowledge of IFRS and SEC reporting standards[405](index=405&type=chunk) - The company is a non-accelerated filer and is therefore exempt from the auditor attestation requirement for its internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act[410](index=410&type=chunk)[411](index=411&type=chunk) [Item 16. Corporate Governance and Other Matters](index=87&type=section&id=ITEM%2016.%20Corporate%20Governance%20and%20Other%20Matters) Key governance matters include a recent change in auditor, reliance on home country rules, and new cybersecurity disclosures - On April 3, 2024, the company dismissed its independent auditor WWC, P.C. and appointed OneStop Assurance PAC; WWC, P.C.'s prior audit report included a **going concern** paragraph[422](index=422&type=chunk)[423](index=423&type=chunk) - As a foreign private issuer, the company follows its home country (Cayman Islands) practices, exempting it from certain Nasdaq shareholder approval requirements for equity issuances[427](index=427&type=chunk)[428](index=428&type=chunk) - The company has implemented cybersecurity risk management processes overseen by the audit committee, with day-to-day management handled by a team including the CEO, COO, and CFO[433](index=433&type=chunk)[438](index=438&type=chunk)[439](index=439&type=chunk) PART III [Item 18. Financial Statements](index=93&type=section&id=ITEM%2018.%20FINANCIAL%20STATEMENTS) The audited IFRS financial statements show a return to profitability, with the auditor identifying digital asset accounting as a Critical Audit Matter [Report of Independent Registered Public Accounting Firm](index=98&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) The current auditor issued an unqualified opinion with a Critical Audit Matter, while the prior auditor's report included a going concern warning - The auditor for FY2025 and FY2024, OneStop Assurance PAC, identified the accounting for digital asset transactions and balances as a **Critical Audit Matter**, citing the materiality, estimation, judgment, and complex calculations involved[459](index=459&type=chunk)[460](index=460&type=chunk) - The previous auditor, WWC, P.C., included a **'Substantial Doubt about the Company's Ability to Continue as a Going Concern'** paragraph in their audit report for the financial statements as of March 31, 2023[465](index=465&type=chunk) [Consolidated Financial Statements](index=102&type=section&id=Consolidated%20Financial%20Statements) Financials show significant growth in assets and equity, with a $15.9 million profit in FY2025 reversing prior year losses Consolidated Statement of Financial Position Highlights | As of March 31, | 2025 (US$) | 2024 (US$) | | :--- | :--- | :--- | | **Total Assets** | 246,771,615 | 174,718,509 | | Digital assets | 221,162,809 | 126,468,184 | | **Total Liabilities** | 210,213,086 | 157,867,334 | | Digital assets payable (incl. related party) | 148,926,971 | 80,364,190 | | **Total Equity** | 36,558,529 | 16,851,175 | Consolidated Statement of Profit or Loss Highlights | For the year ended March 31, | 2025 (US$) | 2024 (US$) | 2023 (US$) | | :--- | :--- | :--- | :--- | | **Income from principal activities** | 44,567,257 | 16,763,545 | 5,692,056 | | **Profit (loss) for the year** | 15,894,755 | (3,679,409) | (20,167,351) |

Core Insights - Longyun International (MATH) experienced a significant stock price increase of 10.66%, reaching $3.84 per share with a trading volume of $1.6938 million and a total market capitalization of $147 million [1] Financial Performance - As of September 30, 2024, Longyun International reported total revenue of $19.7207 million, representing a year-over-year growth of 287.81% [1] - The company's net profit attributable to shareholders was $6.0449 million, showing a substantial increase of 256.73% compared to the previous year [1] Business Overview - Metalpha Technology Holding Limited, formerly known as Longyun Network Technology Co., Ltd., provides supply chain management platform services in China [1] - The company also offers cryptocurrency derivative services, including market-making on cryptocurrency-related products and collaborating with clients to create customized tools for experienced investors to establish or close investment positions or implement hedging strategies [1]

Core Viewpoint - Longyun International (MATH) has shown significant financial growth, with a notable increase in revenue and net profit, indicating strong performance in the supply chain management and cryptocurrency derivative services sectors [1]. Financial Performance - As of September 30, 2024, Longyun International reported total revenue of $19.72 million, representing a year-on-year growth of 287.81% [1]. - The company's net profit attributable to shareholders reached $6.04 million, marking a year-on-year increase of 256.73% [1]. Company Overview - Metalpha Technology Holding Limited, formerly known as Longyun Network Technology Co., Ltd., provides supply chain management platform services in China [1]. - The company also offers cryptocurrency derivative services, including market-making on cryptocurrency-related products and collaborating with clients to create customized tools for experienced investors [1].