HashKey (3887) H2 2025 earnings summary

Executive summary

• Revenue remained stable at HK$723.1 million for FY2025, with a marginal 0.3% increase year-over-year.

• Net loss narrowed to HK$1,084.3 million from HK$1,189.6 million in FY2024, while adjusted loss (Non-IFRS) increased to HK$736.6 million due to fair value losses on digital assets.

• The group completed its IPO and was listed on the Hong Kong Stock Exchange, strengthening its capital base.

• Trading volume reached HK$590.8 billion, with Hong Kong operations contributing HK$530.0 billion, up 72.3% year-over-year.

• Assets on platforms grew 60.5% to HK$18.4 billion, peaking above HK$20.0 billion during the year.

Financial highlights

• Gross profit declined 23.3% to HK$408.5 million, with gross margin dropping to 56.5% from 73.9% due to increased liquidity costs and market downturn.

• Transaction facilitation services revenue rose 1.0% to HK$522.8 million, while on-chain services revenue fell 33.3% to HK$83.2 million.

• Asset management services revenue surged 49.8% to HK$117.1 million, driven by carry interest recognition and AUM growth.

• Cost of revenue increased 67.2% to HK$314.6 million, mainly from higher liquidity costs.

• R&D, sales & marketing, and G&A expenses all decreased, with G&A dropping significantly due to lower share-based payments.

• Finance costs rose to HK$197.1 million, primarily from interest on redemption liabilities.

• Cash and cash equivalents increased 814.8% to HK$2,806.5 million.

Outlook and guidance

• Strategic focus on compliance, technology, and ecosystem synergy, with Hong Kong as the core hub.

• Plans to expand digital asset products, stablecoin services, and on-chain solutions, leveraging regulatory clarity in key markets.

• Continued investment in AI integration and Web3 convergence to drive innovation and operational efficiency.

• No dividend recommended for FY2025.