Group 1 - The RWA market is projected to exceed $26 billion by the end of June 2025, representing a fivefold increase from approximately $5 billion in 2022, making it one of the most dynamic segments in the digital asset ecosystem [1][2] - The integration of traditional finance (TradFi) and decentralized finance (DeFi) is driving RWA development but also introduces complex security challenges beyond smart contract vulnerabilities, including oracle manipulation and legal enforcement issues [1][2] - Direct losses from RWA-related security incidents reached $14.6 million in the first half of 2025, a significant increase from $6 million in 2024, with losses primarily stemming from on-chain and operational vulnerabilities [1][2] Group 2 - The security landscape for RWA is evolving, shifting the risk focus from off-chain financial defaults to on-chain technical vulnerabilities and operational management errors [2] - Top-performing protocols in the RWA space are from traditional financial giants like BlackRock and Franklin Templeton, which demonstrate robust security through institutional-grade compliance and transparency mechanisms [2] - The growth of RWA is currently concentrated on a few key blockchains and protocols, with most RWA assets deployed on Ethereum, indicating that the overall stability of the RWA market heavily relies on the security and operational status of these core participants [2]

Core Viewpoint - The financing behavior of Delin Holdings, utilizing the "old before new" model, has led to significant stock price fluctuations, raising investor concerns about potential dilution and the implications of the financing strategy [2][3][4]. Financing Model - The "old before new" financing model involves two main steps: first, the major shareholder sells existing shares to a placement agent, who then sells them to market investors to quickly raise funds; second, the company issues an equal number of new shares to the major shareholder to restore their ownership percentage [2][9]. - This model is not uncommon in the Hong Kong market and has been used by companies like Tencent, Meituan, and Anta Sports for strategic development or shareholder structure optimization [2][9]. Market Reaction - Following the announcement of the financing plan, Delin Holdings' stock price dropped nearly 9%, with a trading volume of 988 million HKD, indicating a negative market response despite previous significant gains [3][4]. - The financing plan involves the placement of 201 million shares, representing approximately 11.96% of the expanded share capital, at a price of 2.95 HKD per share, which is an 11.94% discount to the closing price on August 6 [2][4][6]. Shareholder Impact - Although the major shareholder will maintain their ownership percentage through the issuance of new shares, the overall increase in total share capital will dilute the equity stakes of other shareholders [8][9]. - The financing plan includes a special subscription plan for the major shareholder to increase their stake, which may further complicate the equity structure [8]. Use of Proceeds - Approximately 30% of the net proceeds from the financing will be allocated to support strategic acquisitions and investments, including the expansion of the Real-World Asset (RWA) tokenization plan, which involves developing Bitcoin mining operations and establishing a licensed virtual asset trading network in Hong Kong [10][11]. - The RWA tokenization initiative aims to convert real-world assets into digital tokens for trading and other operations, with an initial target value of up to 500 million HKD in assets [11].

Core Viewpoint - Derin Holdings (01709) experienced a significant decline of over 7% in its stock price following the announcement of a share placement and capital raising plan [1] Group 1: Share Placement Details - The company announced a placement of 201 million shares, representing approximately 11.96% of the enlarged share capital, at a price of HKD 2.95 per share, which is about 11.94% lower than the closing price of HKD 3.35 on August 6 [1] - The expected net proceeds from this placement are approximately HKD 581 million [1] Group 2: Additional Share Issuance - The company will also issue 20 million shares to DA Wolf, a company wholly owned by executive director and controlling shareholder Chen Ningdi, at the same price of HKD 2.95 per share, with expected net proceeds of about HKD 58.57 million [1] Group 3: Use of Proceeds - Approximately 30% of the net proceeds will be allocated to support strategic acquisitions and/or investments, and to expand the RWA tokenization plan [1] - About 15% will be used for developing Bitcoin mining operations and establishing Bitcoin reserves [1] - Approximately 7% is earmarked for establishing a licensed virtual asset over-the-counter trading and retail network in Hong Kong, as well as applying for and upgrading compliance licenses for virtual asset-related businesses in Hong Kong and other jurisdictions [1] - Around 8% will be used for further development of the group's digital assets, cryptocurrency, and stablecoin-related business plans [1] - About 10% will be invested in the ONE Carmel premium residential project in the United States [1] - Another 10% will be allocated for information technology facilities and system upgrades [1] - Approximately 10% will be used to create exchange-traded funds and develop quantitative investments [1] - The remaining 10% will be used to supplement working capital and support daily operations [1]

Group 1 - Delin Holdings (01709) opened down over 7%, currently down 7.46% at HKD 3.1, with a trading volume of HKD 609 million [1] - The company announced a placement of 201 million shares at HKD 2.95 per share, representing a discount of approximately 11.94% from the closing price of HKD 3.35 on August 6, aiming to raise approximately HKD 581 million [1] - Additionally, the company plans to issue 20 million shares to DA Wolf, wholly owned by executive director and controlling shareholder Chen Ningdi, at the same price of HKD 2.95, expecting to raise about HKD 58.57 million [1] Group 2 - The net proceeds from the fundraising will be allocated as follows: approximately 30% for strategic acquisitions and/or investments, and expansion of the RWA tokenization plan; about 15% for developing Bitcoin mining operations and establishing Bitcoin reserves; around 7% for establishing a licensed virtual asset OTC and retail network in Hong Kong, and applying for compliance licenses in Hong Kong and other jurisdictions [1] - Approximately 8% will be used for further development of the group's digital assets, cryptocurrency, and stablecoin-related business plans; about 10% for investment in the high-quality residential project ONE Carmel in the U.S.; around 10% for investment in IT facilities and system upgrades; approximately 10% for creating exchange-traded funds and developing quantitative investments; and about 10% for supplementing working capital and supporting daily operations [1]

Core Technology Components - The technology architecture of RWA tokenization includes five main components: blockchain ledger, smart contracts, oracles, cross-chain technology, and off-chain asset custody and verification [3][4][5][6][10][11]. Blockchain Ledger - Provides decentralized records for asset ownership, transaction history, and token data, utilizing public chains like Ethereum, Solana, Polymesh, and Avalanche, as well as consortium chains like AntChain's "two chains and one bridge" architecture [4]. Smart Contracts - Automates the processes of tokenization, trading, revenue distribution, and compliance management, with standards such as ERC-3643 for compliant tokens and ERC-721/1155 for non-fungible assets [5]. Oracles - Ensures secure transmission of off-chain asset data to on-chain, maintaining consistency between tokens and assets, with projects like Chainlink and Pyth Network providing real-time data services [6]. Cross-Chain Technology - Facilitates interoperability of assets and data across multiple chains, utilizing cross-chain bridges and protocols [8][9]. Off-Chain Asset Custody and Verification - Custody is managed by regulated entities to ensure 1:1 anchoring, with periodic audits recorded on-chain, while verification involves IoT monitoring and AI for valuation accuracy [10][11]. RWA Tokenization Process - The process includes asset assessment and digitization, tokenization through smart contracts, compliance embedding, on-chain recording and trading, and automated revenue distribution [12][13][14][15][16]. Technical Challenges - Key challenges include smart contract security requiring formal verification and auditing, real-time synchronization of off-chain asset changes, scalability issues related to high gas fees on Ethereum, and balancing privacy with compliance [17][20]. Future Trends - The integration of AI and IoT is expected to enhance pricing accuracy, while dedicated blockchains and Layer 2 solutions will improve efficiency and reduce costs [20].