Group 1: Core Insights - OSL Group is a licensed digital asset trading and payment platform, being the only publicly listed virtual asset exchange in Hong Kong focused on digital asset trading and payment [1] - The company has established a digital asset ecosystem comprising brokerage, payment, asset management, exchange, and institutional services, with revenue primarily driven by brokerage and payment businesses [1][2] - The digital asset industry is experiencing favorable growth opportunities due to monetary policy shifts, clearer global regulatory frameworks, and the influx of institutional funds [2] Group 2: Business Transformation and Advantages - OSL is transitioning from a single trading platform to a comprehensive digital asset financial infrastructure provider, with four key advantages: the rise of payment services, competitive trading fee rates, a global compliance network, and a strong focus on compliance, security, and liquidity [2] - The payment business, particularly OSL Pay and BizPay, is expected to become a new revenue engine and synergize with trading operations [2] - The company has obtained licenses in multiple jurisdictions, including Hong Kong, Japan, Australia, the EU, and Bermuda, with plans to expand into the Middle East and Indonesia [2] Group 3: Financial Projections - The company forecasts non-IFRS revenues of HKD 4.67 billion, 7.64 billion, and 12.20 billion for 2025-2027, with year-on-year growth rates of 119%, 64%, and 60% respectively [3] - The projected compound annual growth rate for non-IFRS revenue from 2024 to 2026 is 89%, indicating significant growth potential as the payment business matures [3] - The company is compared to leading digital asset exchanges and financial platforms, suggesting a strong market position and growth trajectory [3]

Core Viewpoint - OSL Group is a leading licensed digital asset trading and payment platform in Hong Kong, with a diversified business ecosystem including brokerage, payment, and exchange services, and is expected to experience rapid revenue growth from 2025 to 2027 [1][5] Company Background - OSL Group is the only publicly listed virtual asset trading platform in Hong Kong focused on digital asset trading and payment, having obtained multiple important licenses through continuous acquisitions across over 10 jurisdictions including Hong Kong, Japan, Australia, and the EU [1] Business Performance - OSL has established a digital asset ecosystem comprising brokerage, payment, asset management, exchange, and institutional services, with brokerage and payment businesses currently contributing the majority of revenue; OSL Pay, launched for only two months in H1 2025, accounted for 29% of the group's revenue [2] Market Opportunities - The digital asset industry is poised for growth due to shifts in monetary policy, clearer global regulatory frameworks, and the influx of institutional funds; the Federal Reserve's easing monetary policy may inject liquidity into the market, while new regulations in key regions enhance compliance and regulatory assurance [3] OSL's Transformation and Advantages - OSL is transitioning from a single trading platform to a comprehensive digital asset financial infrastructure provider, creating four key advantages: the rise of payment services, significant trading fee advantages, a developed global compliance network, and a combination of compliance, security, and liquidity [4] Profit Forecast and Rating - The company is projected to achieve non-IFRS revenues of HKD 4.67 billion, 7.64 billion, and 12.20 billion from 2025 to 2027, with year-on-year growth rates of 119%, 64%, and 60% respectively; the company is rated "Buy" based on its growth potential and the expected revenue elasticity from its payment services [5]

Core Viewpoint - OSL Group is a leading licensed digital asset trading and payment platform in Hong Kong, with a diversified business ecosystem including brokerage, payment, and exchange services. The payment business (OSL Pay) has emerged as a new growth engine, contributing 29% of revenue in just two months since its launch in the first half of 2025. The company is expected to experience rapid revenue growth from 2025 to 2027 due to its global compliance licenses and liquidity advantages [1][5]. Company Background - OSL Group is the only publicly listed virtual asset trading platform in Hong Kong focused on digital asset trading and payment. It has obtained multiple important licenses through continuous acquisitions and currently holds licenses in over 10 jurisdictions, including Hong Kong, Japan, Australia, the EU (Italy), and Bermuda [1][2]. Business Performance - OSL has established a digital asset ecosystem comprising brokerage, payment, asset management, exchange, and institutional services. The brokerage business, primarily OTC and RFQ services, contributes about half of the revenue, while the payment business, which serves web3 wallet clients, contributed 29% of the group's revenue in just two months of operation in the first half of 2025 [2][3]. Market Opportunities - The digital asset industry is poised for growth due to shifts in monetary policy, clearer global regulatory frameworks, and the influx of institutional funds. The Federal Reserve is in a rate-cutting cycle, which may inject liquidity into the market. Key regulatory developments in the EU, the US, and Hong Kong are expected to enhance compliance and regulatory assurance in the digital asset sector [3][4]. OSL's Transformation and Advantages - OSL is transitioning from a single trading platform to a comprehensive digital asset financial infrastructure provider, creating four key advantages: 1) The rise of payment services, with OSLPay and BizPay expected to become new revenue engines; 2) Competitive trading fee rates; 3) A global compliance network established through licenses in multiple regions; 4) A combination of compliance, security, and liquidity, with direct bank connections and over 50 global liquidity providers [4][5]. Profit Forecast and Rating - The company is projected to achieve non-IFRS revenues of HKD 4.67 billion, 7.64 billion, and 12.20 billion from 2025 to 2027, with year-on-year growth rates of 119%, 64%, and 60%, respectively. The company is rated "Buy" based on its potential for significant revenue growth and transformation into a comprehensive digital asset financial infrastructure provider [5].

Investment Rating - The report assigns an investment rating of "Buy" for OSL Group, marking its first coverage [5][10]. Core Insights - OSL Group is a licensed digital asset trading and payment platform, uniquely positioned as Hong Kong's only publicly listed virtual asset exchange focused on digital asset trading and payment services. The company has obtained multiple important licenses across over 10 jurisdictions, including Hong Kong, Japan, Australia, the EU (Italy), and Bermuda [5][6]. - The company is transitioning from a single trading platform to a comprehensive digital asset financial infrastructure provider, leveraging four key advantages: the rise of payment services, significant trading fee advantages, a global compliance network, and a triad of compliance, security, and liquidity [7][68]. Summary by Sections Market Performance - As of November 19, 2025, OSL Group's closing price is HKD 15.03, with a market capitalization of HKD 11,942.77 million. The stock has seen a one-year high of HKD 20.30 and a low of HKD 6.84 [3]. Business Overview - OSL Group has developed a digital asset ecosystem comprising brokerage, payment, asset management, exchange, and institutional services. The brokerage business contributes approximately half of the revenue, while the payment business, launched only two months prior, accounted for 29% of the revenue in the first half of 2025 [6][8]. Financial Projections - The report forecasts non-IFRS revenues for OSL Group to be HKD 4.67 billion, HKD 7.64 billion, and HKD 12.20 billion for the years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 119%, 64%, and 60% [8][10]. Strategic Initiatives - OSL is expanding its payment services, with OSL Pay generating significant revenue shortly after its launch. The company is also pursuing acquisitions to enhance its service offerings and expand its operational capabilities [39][69]. Competitive Positioning - OSL Group's fee structure is competitive, with trading fees ranging from 0% to 0.05%, and no deposit fees, positioning it favorably against other major platforms [73]. Regulatory Environment - The report highlights a favorable regulatory landscape for digital assets, with significant developments in compliance frameworks across various jurisdictions, enhancing the stability and credibility of the digital asset market [61][62]. Growth Drivers - The anticipated easing of monetary policy by the Federal Reserve and the establishment of clear regulatory frameworks are expected to drive growth in the digital asset sector, benefiting OSL Group as it captures institutional interest and expands its market presence [58][66].

Core Viewpoint - OSL Group has announced a strategic plan to invest up to $30 million in collaboration with industry partners to accelerate the global development of its PayFi ecosystem, reflecting a strong growth trajectory in the digital asset space [1] Financial Performance - As of the latest report, OSL Group's stock rose by 3.82% to HKD 17.13, with a trading volume of HKD 22.24 million [1] - In the first half of 2025, OSL Pay generated revenue of HKD 55.9 million, accounting for 29% of the group's total revenue, primarily driven by the European market [1] Strategic Developments - OSL launched OSL Pay in April 2025 to optimize fiat and cryptocurrency exchanges, followed by the introduction of OSL Biz Pay for enterprise payment services in July [1] - Citigroup initiated coverage on OSL Group with a "Buy/High Risk" rating and a target price of HKD 21.8, which corresponds to a projected price-to-sales ratio of 22 times for 2025 [1] Market Outlook - Citigroup expressed optimism regarding OSL Group's focus on establishing a compliant digital asset exchange and payment gateway amid increasing regulatory scrutiny, leveraging its first-mover advantage in the Hong Kong cryptocurrency OTC market [1] - The firm anticipates that the growth of the PayFi business and the global expansion of regulated digital asset market operations will drive revenue growth of 80%, 60%, and 36% from 2025 to 2027 [1]

Core Viewpoint - OSL Group is experiencing a significant stock increase following the announcement of a strategic plan to invest up to $30 million in collaboration with industry partners to accelerate the global development of its PayFi ecosystem [1] Group 1: Financial Performance - As of the latest report, OSL Group's stock rose by 3.82% to HKD 17.13, with a trading volume of HKD 22.24 million [1] - In the first half of 2025, OSL Pay generated revenue of HKD 55.9 million, accounting for 29% of the group's total revenue, primarily from the European market [1] Group 2: Strategic Initiatives - OSL launched OSL Pay in April 2025 to optimize fiat and cryptocurrency exchanges, followed by the introduction of OSL Biz Pay for enterprise payment services in July [1] - The company is focusing on establishing a compliant digital asset exchange and payment gateway amid increasing regulatory scrutiny [1] Group 3: Analyst Ratings and Projections - Citigroup initiated coverage on OSL Group with a "Buy/High Risk" rating and a target price of HKD 21.8, reflecting a projected price-to-sales ratio of 22 times for 2025 [1] - The firm anticipates revenue growth of 80%, 60%, and 36% for OSL Group from 2025 to 2027, driven by the expansion of PayFi business and global growth in the regulated digital asset market [1]

Core Viewpoint - OSL Group reported strong mid-year performance with significant revenue growth, driven by its new payment business, OSL Pay, which has become a key growth engine since its launch in April [1] Financial Performance - Core business revenue reached HKD 189 million, a year-on-year increase of 187% [1] - Total revenue amounted to HKD 195 million, reflecting a year-on-year growth of 58% [1] - OSL Pay generated revenue of HKD 55.94 million, accounting for 29% of total revenue [1] - Total transaction volume on the platform was HKD 68.2 billion, up 200% year-on-year [1] - Custodial assets reached HKD 56.94 billion, marking a 50% increase year-on-year [1] Business Development - OSL Pay has shown strong revenue performance since its launch, indicating its role as a major growth driver [1] - The company plans to explore and expand its payment business while building a compliant and efficient global digital asset payment solution [1] - OSL Group is accelerating its internationalization strategy and has completed several significant acquisitions [1]

Core Viewpoint - OSL Group reported strong mid-year performance with significant revenue growth, driven by its new payment business, OSL Pay, which has become a key growth engine since its launch in April [1] Financial Performance - Core business revenue reached HKD 189 million, a year-on-year increase of 187% [1] - Total revenue amounted to HKD 195 million, reflecting a year-on-year growth of 58% [1] - OSL Pay generated revenue of HKD 55.94 million, accounting for 29% of total revenue [1] - Total transaction volume on the platform was HKD 68.2 billion, up 200% year-on-year [1] - Custodial asset scale reached HKD 56.94 billion, marking a 50% increase year-on-year [1] Business Development - OSL Pay has shown strong revenue performance since its launch, indicating its role as a major growth driver for the company [1] - The company aims to explore and expand its payment business while building a compliant and efficient global digital asset payment solution [1] - OSL Group is accelerating its internationalization strategy and has completed several significant acquisitions [1]

Core Insights - OSL Group reported significant revenue growth but faces profitability pressures, with total revenue reaching HKD 195 million, a 58% year-on-year increase, and core business revenue soaring by 187% to HKD 189 million [1][2] - The newly launched OSL Pay contributed HKD 55.94 million in just three months, accounting for 29% of total revenue, highlighting its role as a new growth engine for the company [1][2] Business Performance - The total trading volume on the OSL platform surged to HKD 68.2 billion, marking a 200% increase year-on-year, indicating a substantial rise in market activity [2] - OSL's custody asset scale reached HKD 56.94 billion, up 50% year-on-year, with the ETF custody asset market share remaining the largest in Hong Kong, reflecting growing demand for compliant custody services from institutional investors [2] Operational Challenges - The workforce expanded dramatically by 240%, from 167 employees in June 2024 to 568 in June 2025, leading to increased operational costs and pressure on profit margins [2][3] - The company acknowledged the need to enhance operational efficiency and improve financial profitability, suggesting that profit performance may not keep pace with revenue growth [2][3] Industry Context - OSL's performance illustrates the typical trajectory of compliance development in the digital asset industry, benefiting from improved regulatory frameworks and participation from traditional financial institutions [3] - The rapid rise of OSL Pay indicates a genuine market demand for digital asset payment channels, aligning with industry trends discussed at the recent Bitcoin Asia conference [3] - The significant increase in personnel and associated costs, along with compliance expenses during international expansion, will continue to test OSL's operational capabilities [3]

Core Insights - OSL Group reported significant growth in its interim results for the six months ending June 30, 2025, driven by a dual strategy of organic growth and strategic acquisitions [1][2] - The company's core business revenue reached HKD 189 million, a year-on-year increase of 187%, while total revenue was HKD 195 million, up 58% [1] - The newly launched OSL Pay generated HKD 55.94 million in revenue, accounting for 29% of total revenue, and the platform's total trading volume reached HKD 68.2 billion, a 200% increase year-on-year [1] - The assets under custody grew to HKD 56.94 billion, reflecting a 50% year-on-year increase [1] Business Strategy - OSL Pay has emerged as a key growth driver since its launch in April 2025, providing a licensed and compliant digital asset deposit and withdrawal channel for global clients [1][2] - The company is focused on expanding its payment business while enhancing its core operations to create a compliant and efficient global digital asset payment solution [1] - OSL Group is accelerating its international strategy through significant acquisitions and strengthening its technology, compliance, and customer service capabilities [1][3] Market Position - OSL Group maintains the largest market share in ETF custody assets in Hong Kong, indicating strong recognition from users and investors for its compliant digital asset services [2] - The company is actively expanding its compliance services into markets such as Japan, Australia, and Europe, while also exploring opportunities in Southeast Asia [3] - OSL Group aims to solidify its position as a leading enterprise-level compliant digital economy infrastructure platform by leveraging its global licensing network and technological advantages [2]