Core Viewpoint - HashKey has officially listed on the Hong Kong Stock Exchange, marking it as the first fully cryptocurrency-based company in the Hong Kong market, despite a lackluster stock performance on its debut day [1][18]. Company Overview - HashKey is recognized as Hong Kong's largest licensed cryptocurrency exchange operator, with a market capitalization of HKD 15.6 billion [1]. - The company was founded by prominent figures in the blockchain space, including "blockchain father" Xiao Feng and Wanxiang Group Chairman Lu Weiding, who is also the largest shareholder [1][4]. Stock Performance - On its first trading day, HashKey's stock price opened with a slight increase of nearly 1% but soon turned negative, closing at HKD 6.67, a decrease of 0.15% [1]. - By the second trading day, the stock price further declined to HKD 5.63 [1]. Business Strategy - HashKey emphasizes a compliance-first approach, having established itself in 2018 when the regulatory framework for virtual assets in Hong Kong began to take shape [7]. - The company has obtained 13 licenses across six different jurisdictions, adhering to principles of licensing, compliance, and regulation [8]. Financial Performance - HashKey's revenue has shown significant growth, with projections indicating revenues of HKD 5.18 billion from transaction facilitation services in 2024, accounting for 71.8% of total revenue [9]. - Despite revenue growth, the company has reported substantial losses, with cumulative losses exceeding HKD 2.3 billion over three years [12]. Market Position - HashKey aims to cover the entire value chain of digital assets, including trading facilitation, on-chain services, and asset management [11]. - The company is positioned as the largest asset management service provider headquartered in Hong Kong, with a cumulative asset management scale of HKD 7.8 billion [11]. Industry Context - The listing of HashKey is seen as a significant milestone for the development of virtual assets in Hong Kong, representing a shift towards more regulated and compliant operations in the cryptocurrency sector [19]. - The company’s founder, Xiao Feng, expressed confidence in the long-term potential of the virtual asset industry, citing the importance of regulatory frameworks [17].

Core Viewpoint - HashKey Holdings Limited has passed the main board listing hearing, aiming to become the "first virtual asset stock in Hong Kong" with an IPO plan to raise approximately $500 million (around HKD 3.9 billion) [1] Group 1: Regulatory Compliance and Market Position - HashKey is one of the first virtual asset trading platforms (VATP) approved by the Hong Kong Securities and Futures Commission to provide services to both professional and retail investors [4] - The company holds multiple licenses covering securities trading, investment consulting, automated trading services, and asset management, establishing a comprehensive compliance framework [4] - As of September 30, 2025, HashKey supports trading of 80 digital asset tokens and is the largest onshore digital asset trading platform in Asia, with over 75% market share in Hong Kong based on 2024 trading volume [4] Group 2: Business Structure and Revenue Sources - HashKey's revenue primarily comes from three segments: trading facilitation services, on-chain services, and asset management services, with trading facilitation being the core revenue source [5] - In 2024, the revenue from trading facilitation services was HKD 721 million, and for the first half of 2025, it was HKD 284 million [5] - The concentration of clients has significantly decreased, with the top five clients' revenue contribution dropping from 79.6% in 2022 to 22.8% in the first half of 2025 [5] - As of September 30, 2025, HashKey's staked asset scale reached HKD 29 billion, and its self-developed HashKey Chain has achieved tokenization of real-world assets (RWA) valued at HKD 1.7 billion [5] - The assets under management reached HKD 7.8 billion, with the HashKey Blockchain Investment Fund's historical return rate approximately double the industry average [5] Group 3: Financial Performance and Challenges - HashKey is currently in an expansion phase, recording net losses of HKD 585 million, HKD 580 million, and HKD 1.19 billion for the years 2022 to 2024, with a net loss of HKD 507 million in the first half of 2025 [7] - The gross margin has decreased from 97.2% in 2022 to 65.0% in the first half of 2025, indicating rising operational costs due to business scale expansion [7] - As of August 31, 2025, the company held cash and cash equivalents of HKD 1.657 billion and digital assets worth HKD 592 million, with 84% being mainstream tokens, indicating a solid cash reserve [7] - The regulatory environment poses significant considerations, as the People's Bank of China has reiterated a strict stance against virtual currency trading, potentially limiting HashKey's expansion in mainland markets [7]