Xinhuo Technology: Plans to distribute Bitcoin and Ethereum ETFs to professional investors next year

Hong Kong-listed company Xinhuo Technology released its annual results for the year ended September 30, 2024. The group achieved revenue of HK$1.569 billion, a year-on-year decrease of 44.6%; the profit attributable to the owners of the company was HK$54.322 million, while the loss was HK$287 million in the same period last year; basic earnings per share was HK$11.66. The group's profit before income tax in 2024 was approximately HK$56.4 million, while the net loss before income tax from continuing operations in 2023 was approximately HK$282 million. The profit before income tax mainly came from the reversal of the impairment provision of FTX deposits of approximately HK$85.9 million due to the sale of FTX claims, which was completed in June 2024. The profit before income tax also came from fund performance fee income from the rise in virtual asset prices and effective asset management strategies, as well as management fee income due to the increase in assets under continuous fund management. In addition, in 2025, Xinhuo Asset Management will add the business of distributing virtual asset (VA) related products to PIs, including but not limited to VA funds, Bitcoin and Ethereum ETFs and VA structured products, in addition to the compliant virtual asset fund business under the original No. 9 license. After the No. 4 license is approved for upgrade, the company plans to only provide the following types of virtual asset (VA) consulting services to PIs: 1) issuing research reports (including regular subscriptions or ad hoc recommendations based on customer requests); 2) providing investment advisory services to customers, including virtual asset funds and their managers.