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 13.2 million in client assets and 3.27 million (approximately HK14 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 103.6 million) in Tether from the shareholder loan[48] - The company sold its entire equity interest in Animoca Brands Corporation Limited for 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 HK155,376,000[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]
新火科技控股(01611) - 2023 - 年度财报