Investment Rating - The report maintains a "Recommended" rating for HASHKEY HLDGS, with a target price of HKD 8.66, compared to the current price of HKD 4.50 [3][8]. Core Insights - HASHKEY HLDGS reported total revenue of HKD 723 million for 2025, a slight increase of 0.3% year-on-year, while the annual loss narrowed by 8.8% to HKD 1.084 billion, with an adjusted loss of HKD 737 million, which represents a year-on-year increase of 35.1% [1][7]. - The company is positioned as a leading compliant virtual asset exchange in Hong Kong, with a focus on expanding its digital asset ecosystem through RWA (Real World Assets) and AI initiatives [7]. - The trading facilitation services generated revenue of HKD 523 million, accounting for 72.3% of total revenue, with a significant increase in trading volume in Hong Kong, which reached HKD 5.3 trillion, up 72.3% year-on-year [7]. - The on-chain services faced revenue pressure, with a 33.3% decline to HKD 83 million, primarily due to digital currency price fluctuations [7]. - Asset management services saw a revenue increase of 49.8% to HKD 117 million, with assets under management reaching HKD 7.2 billion by the end of 2025 [7]. - The company is leveraging AI to enhance operational efficiency and innovate business models, including exploring AI agent payment solutions [7]. Financial Summary - For 2025, HASHKEY HLDGS reported total revenue of HKD 723 million, with a gross profit of HKD 408 million, resulting in a gross margin of 56.5%, down from 73.9% in 2024 [7]. - The company forecasts revenues of HKD 1.089 billion, HKD 1.678 billion, and HKD 2.610 billion for 2026, 2027, and 2028, respectively, with expected growth rates of 51%, 54%, and 56% [9]. - The projected EPS for 2026, 2027, and 2028 are -0.25, -0.10, and -0.03 HKD, respectively [9].

Investment Rating - The report maintains a "Recommended" rating for HASHKEY HLDGS, with a target price of HKD 8.66, compared to the current price of HKD 4.50 [3][8]. Core Insights - HASHKEY HLDGS reported total revenue of HKD 723 million for 2025, a slight increase of 0.3% year-on-year, while the annual loss narrowed by 8.8% to HKD 1.084 billion, with an adjusted loss of HKD 737 million, which represents a year-on-year increase of 35.1% [1][7]. - The company is positioned as a leading compliant virtual asset exchange in Hong Kong, with a focus on expanding its digital asset ecosystem through RWA (Real World Assets) and AI initiatives [7]. - The trading facilitation services generated HKD 523 million in revenue, accounting for 72.3% of total revenue, with a significant increase in trading volume in Hong Kong, reaching HKD 5.3 trillion, a year-on-year growth of 72.3% [7]. - The company has established itself as the largest regional onshore digital trading platform in Asia, with a notable increase in institutional trading volume, which rose to HKD 4.31 trillion, a year-on-year increase of 57.5% [7]. - The asset management services segment saw a revenue increase of 49.8% year-on-year, reaching HKD 117 million, with total assets under management growing to HKD 7.2 billion by the end of 2025 [7]. Financial Summary - For 2025, HASHKEY HLDGS reported a gross profit of HKD 408 million, with a gross margin of 56.5%, down from 73.9% in 2024, primarily due to a decline in the gross margin of trading facilitation services [7]. - The company anticipates revenue growth of 51% in 2026, reaching HKD 1.089 billion, and expects to narrow its net loss to HKD 681 million [9]. - The projected earnings per share (EPS) for 2026 is expected to be -0.25 HKD, with further improvements anticipated in subsequent years [9].

Investment Rating - The report assigns an "Accumulate" rating for HashKey HLDGS (03887) with a target price of HK$7.83 [2][5]. Core Insights - HashKey is positioned as a leading compliant digital asset exchange in Asia, capitalizing on the Web3 regulatory advantages and aiming to capture significant market share in the compliant digital asset space [4][14]. - The company has a strong market presence, holding over 75% of the market share among licensed platforms in Hong Kong, and is expanding into global markets such as Bermuda and Dubai [4][6]. - HashKey's business model is evolving from a retail-driven approach to focusing on institutional clients and Omnibus partners, enhancing revenue quality and sustainability [4][5]. - Financial forecasts indicate a significant revenue increase, with projected revenues of HK$7.21 billion in 2024, HK$7.0 billion in 2025, HK$11.5 billion in 2026, and HK$20.2 billion in 2027, despite ongoing net losses [2][5][47]. - The company is expected to benefit from upcoming regulatory developments in Hong Kong, including the issuance of stablecoin licenses, which could enhance its competitive position [6][4]. Financial Summary - Revenue projections for HashKey are as follows: - 2024: HK$721 million - 2025: HK$700 million - 2026: HK$1.149 billion - 2027: HK$2.020 billion - Corresponding net profits are projected to be negative, with estimates of -HK$1.19 billion in 2024, -HK$953 million in 2025, -HK$754 million in 2026, and -HK$150 million in 2027 [2][5]. - The company is expected to optimize its cost structure, leading to a gradual reduction in losses as operational leverage improves [4][5]. Business Model - HashKey operates through three main business segments: 1. **Transaction Facilitation Services**: This includes exchange services, OTC trading, and custody services, which are expected to contribute approximately 70% of total revenue [23][27]. 2. **On-chain Services**: This segment includes staking, tokenization, and blockchain infrastructure services [23][24]. 3. **Asset Management Services**: This involves managing digital asset investment funds, including venture capital and secondary market funds [24][27]. Market Position and Strategy - HashKey is strategically positioned as a compliant digital asset exchange, leveraging its licenses and regulatory framework to attract institutional and retail clients [4][14]. - The company has a concentrated ownership structure, with key stakeholders holding 75.19% of shares, ensuring strategic alignment and stability [15][16]. - The management team comprises experienced professionals from traditional finance and technology sectors, enhancing the company's operational capabilities [19][21].

Core Viewpoint - HashKey Holdings, led by Dr. Xiao Feng, has become the first cryptocurrency company to go public in Hong Kong, but its stock performance has been underwhelming, raising questions about its future growth potential in a challenging regulatory environment [2][4]. Group 1: Company Background - Dr. Xiao Feng, a pioneer in China's public fund industry, founded HashKey Group in Hong Kong in 2022 after a successful career with Bosera Funds and Wanxiang Group, focusing on blockchain technology [3][4]. - HashKey Holdings has established three main business segments: trading facilitation services, on-chain services, and asset management, with a goal to create a closed-loop business model [4][7]. Group 2: Business Performance - Trading facilitation services are the core revenue driver, accounting for 68% of total income, with significant contributions from retail and institutional clients [5][8]. - As of September 30, 2025, HashKey has facilitated a total trading volume of 1.3 trillion HKD, leading the regional onshore platform market [5][8]. - The company has seen a dramatic increase in trading volume, from 4.2 billion HKD in 2022 to 638.4 billion HKD in 2024, representing over 150 times growth [8]. Group 3: Financial Challenges - Despite some operational highlights, HashKey faces significant financial challenges, including a cumulative loss of 2.355 billion HKD from 2022 to 2024, with a single-year loss of 1.1896 billion HKD in 2024 [10][11]. - The company has experienced continuous negative cash flow, with a net outflow of 266 million HKD in the first half of 2025, raising concerns about its sustainability [10][11]. Group 4: Market Position and Competition - HashKey holds a 75% market share in Hong Kong's virtual asset trading volume, but it lags significantly behind offshore exchanges like Binance, which has a daily trading volume of 11.6 billion USD [11][14]. - The competitive landscape is dominated by major offshore exchanges, which benefit from less stringent regulations, making it difficult for compliant onshore platforms like HashKey to compete effectively [14][16]. Group 5: Regulatory Environment - HashKey's ability to list on the Hong Kong Stock Exchange does not indicate a relaxation of mainland China's strict regulations on cryptocurrency, as it operates under a different regulatory framework in Hong Kong [17][18]. - The company is positioned as a "risk buffer" for the mainland, allowing for controlled financial experimentation without impacting financial stability [17][18].

Core Viewpoint - HashKey, the first listed cryptocurrency company in Hong Kong, has passed the Hong Kong Stock Exchange hearing and is preparing for its IPO, aiming to raise up to $500 million for technology upgrades, market expansion, and operational management [1][3]. Company Overview - HashKey is one of the 11 licensed virtual asset trading platforms in Hong Kong, focusing on trading facilitation, on-chain services, and asset management, currently in the investment phase and not yet profitable [1][2]. - The company has a market share of over 75% in Hong Kong and is the largest onshore platform in Asia by trading volume, as well as a major player in on-chain staking services [2]. Financial Performance - HashKey reported losses of HKD 585.2 million, HKD 579.9 million, HKD 1.189 billion, and HKD 506.7 million for the years 2022, 2023, 2024, and the first half of 2025, respectively [7][9]. - Revenue figures for 2022, 2023, 2024, and the first half of 2025 were HKD 129.1 million, HKD 207.8 million, HKD 720.7 million, and HKD 283.9 million, showing a cumulative growth of over 458% from 2022 to 2024 [7][9]. - The trading volume surged from HKD 4.2 billion in 2022 to HKD 328 billion in 2023, and further to HKD 638.4 billion in 2024, but dropped to HKD 214 billion in the first half of 2025 due to strategic adjustments in a declining market [8][9]. Business Structure - The revenue structure for the first half of 2025 showed that trading facilitation contributed 68% of total revenue, on-chain services accounted for 18.7%, and asset management made up 13.3% [3]. - HashKey's asset management segment has a total asset management scale of HKD 7.8 billion, having completed over 400 early-stage blockchain project investments [3]. Market Position and Regulatory Environment - The successful hearing by the Hong Kong Stock Exchange indicates a willingness to include virtual asset platforms in the main board IPO review process, reflecting a more established regulatory environment in Hong Kong [3][4]. - The recent reaffirmation by the People's Bank of China and other departments to prohibit virtual currency speculation may limit HashKey's ability to expand into mainland China, but it could also enhance Hong Kong's position as a compliant digital asset hub [4][5]. Strategic Focus - HashKey aims to focus on institutional clients, which are five times more stable than retail clients, and plans to control costs while optimizing operational efficiency [11][12]. - The company is also looking to diversify its operations geographically, deepening its presence in Hong Kong while exploring markets in Singapore and the Middle East [12].

香港交易及結算所有限公司、香港聯合交易所有限公司與證券及期貨事務監察委員會對本聆訊後資料集的 內容概不負責，對其準確性或完整性亦不發表任何意見，並明確表示概不就因本聆訊後資料集全部或任何 部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 HashKey Holdings Limited （「本公司」） （於開曼群島註冊成立的有限公司） 的聆訊後資料集 警告 本聆訊後資料集乃根據香港聯合交易所有限公司（「聯交所」）及證券及期貨事務監察委員會（「證監會」）的 要求而刊發，僅用作提供資料予香港公眾人士。 本聆訊後資料集為草擬本，其內所載資料並不完整，亦可能會作出重大變動。 閣下閱覽本文件，即代 表 閣下知悉、接納並向本公司、本公司的保薦人、整體協調人、顧問或承銷團成員表示同意： 本公司招股章程根據香港法例第32章公司（清盤及雜項條文）條例送呈香港公司註冊處處長登記前，本公 司不會向香港公眾人士提出要約或邀請。倘在適當時候向香港公眾人士提出要約或邀請，有意投資者務請 僅依據於香港公司註冊處處長註冊的本公司招股章程作出投資決定，招股章程的文本將於發售期內向公眾 人士刊發。 (a) 本文件僅為向香港公眾人士提 ...