Xinhuo Technology's 2023 interim financial report: virtual asset trading business accounts for 95.21% of total revenue, Hong Kong license application has been revoked

According to news from PANews on June 1, according to a report by the Financial Associated Press, Hong Kong stock Xinhuo Technology recently released its interim financial report as of March 31, 2023. During the reporting period, the company achieved revenue of HK$2.506 billion, a year-on-year increase of 612.3% from HK$352 million in 2022. Among them, virtual asset transactions and loans contributed HK$2.386 billion, accounting for 95.21%. Behind the rapid growth of performance, losses are also further expanding. During the reporting period, the net profit was a loss of HK$232 million, and the loss in the same period in 2022 was HK$49 million.

It is worth noting that Xinhuo Technology stated in its 2022 financial report that due to changes in business focus and planning, the company has withdrawn its application for a digital asset activity license to the Monetary Authority of Singapore in November 2022. In the 2023 interim report, Xinhuo Technology announced for the same reason that it would withdraw its application for a virtual asset trading license in Hong Kong, China.

Xinhuo Technology stated in its financial report that Hong Kong is implementing a licensing system for the supervision and licensing of virtual asset trading platforms. The group has submitted an application to the Hong Kong Securities Regulatory Commission and has been licensed to conduct securities and futures regulations with Hong Kong as a virtual asset trading platform. Due to the adjustment of business focus and planning, the Group has withdrawn its application in January 2023 for Type 1 and Type 7 regulated activities. The Group will assess its future business strategies and plans, and assess whether it will apply for a VASP license.