➢ The total revenue amounted to approximately HK$610.7 million, representing an increase of approximately 120.8% or HK$334.1 million
➢ The gross profit was HK$302.6 million, up by 224.7 million or 288.7%; the gross profit margin was 49.6%, increased by 75.9%; the earnings per share was HK46.03 cents
➢ The revenue of blockchain-related and virtual asset ecosystem business reached HK$234.4 million, accounting for 38.4% of the total revenue, creating ongoing momentum for group's revenue growth
➢ The gross profit and gross profit margin of blockchain-related technology solution business reached HK$24.1 million and 24.3% respectively
➢ The revenue of Software-as-a-Service business increased dramatically by 17,400% to HK$122.5 million
➢ The gross profit of power-related & electrical/electronic products businesses amounted to HK$78.9 million, representing a gross profit margin of 21.0%, which is in line with expectatio
➢ The Group had abundant capital with the cash and cash equivalents of HK$522.1 million
[21 December 2021, Hong Kong] Huobi Technology Holdings Limited (“Huobi Tech“, stock code: 1611.HK) and together with its subsidiaries (the “Group”) is pleased to announce its annual results for the year ended 30 September 2021(“the Reporting Period”). Although the disruption of global supply chain and the rise of commodity prices have caused a certain impact on various industries during the year, the Group managed to accelerate diversified business expansion and made outstanding achievements during the Reporting Period through lean management, cost control and efficiency improvement.
The Group recorded a total revenue of approximately HK$610.7 million for the year ended 30 September 2021 (“Year 2021”), representing an increase of approximately 120.8% compared with the same period of last year. The gross profit of the Group was HK$302.6 million for Year 2021, representing an increase of approximately 288.7% or HK$224.7 million compared with the same period of last year. The profit attributable to owners of the company was HK$141.5 million, and earnings per share of the Group for Year 2021 was HK46.03 cents, witnessing the turnaround from loss to profit. Besides, the Group had abundant capital with the cash and cash equivalents of HK$552.2 million.
Diversified Business Development of Blockchain and Virtual Asset-Related Creating Ongoing Momentum for the Group's Revenue Growth
Globally, the regulatory pattern of virtual assets is gradually becoming clear, while the application of blockchain technology is constantly evolving as well. At the same time, compliance and mainstreaming have been inevitable trends in virtual asset market, and along with the entry of traditional financial institutions accelerated, above which will promote the whole industry to another dimension. As part of its efforts to implement the strategy of “ Based in Hong Kong with global perspective”, the Group constantly diversifies development of virtual asset ecosystem, steadily promotes the provision of licensed compliant services, and actively layouts several markets around the world by successively entering into cooperation with local institutions in Kyrgyz Republic and Switzerland, with a view to further meet the market demands.
As of the Reporting Period, blockchain related and virtual asset ecosystem business recorded revenue of HK$234.4 million. In terms of the virtual assets ecosystem, the aforementioned business aims to provide investors with virtual asset services including asset management, trust and custody, and the processes achieved by the group's subsidiaries also confirmed the effectiveness of the Group's strategic layout. During the Reporting Period, Huobi Asset Management (Hong Kong) Limited, which holds Type 4 (Advising on Securities) and Type 9 (Asset Management) licenses issued by Hong Kong Securities and Futures Commission (“Hong Kong SFC”), was permitted by Hong Kong SFC to manage 100% virtual asset funds and successfully launched five virtual asset fund products to professional investors, which the fund products were well received in the market; Huobi Trust US, which holds the Nevada Retail Trust Company License, officially became the custodian of USD-backed stable coin “HUSD”; and Huobi Trust HK, a registered company in Hong Kong with the Trust or Company Service Provider (TCSP) license, has successfully carried out the business, and its assets under custody has exceeded USD2 billion by the end of September of the same year.
In term of the blockchain-related services, both the technology solution business and provision of SaaS maintained steady growth. In particular, the technology solution business, which mainly provides data centre and cloud-based services for customers from innovative technology sectors including global blockchain, virtual assets, fintech and big data, recorded a revenue of HK$99.2 million, a gross profit of HK$24.1 million and a corresponding gross profit margin of 24.3% during the Reporting Period. Besides, the Group provides clients access to and use of the virtual asset trading platform related SaaS, which includes maintaining, supporting, developing and implementing customizations to the Software. The revenue from the SaaS business grew by17,400.0% to HK$122.5 million in Year 2021 as compared to the same period last year, while the gross profit was HK$111.6 million, representing a gross margin of 91.1%.
Power-related & electrical/electronic products business also achieved stable revenue and gross profit as a result of the full resumption of work and production as well as the recovery of market demand. During the Reporting Period, the revenue of the Group from the abovementioned business was HK$376.3 million, up by 55.3% as compared to the same period last year, while the gross profit was HK$78.9 million, representing a gross profit margin of 21.0%.
Continuous Optimisation of Business Layout with the Principle of Diversification and Compliance
Huobi Tech has been committed to its business layout of blockchain and virtual assets, while continuously speeding up the compliance process by actively applying for virtual asset and finance-related licenses in major markets around the world, all of which to build Huobi Tech itself as the leading one-stop compliant virtual asset service platform. In addition to vigorously developing the blockchain and virtual asset-related new business, the Group is actively developing compliant exchange platform businesses in Asian financial centres such as Hong Kong and Singapore. Huobi Singapore has applied to Monetary Authority of Singapore (“MAS”) to be licensed under the Payment Services Act 2019 as a Major Payment Institution; at the same time, the Group is also maintaining good communication with Hong Kong regulator as we plan to submit an application to the Hong Kong SFC for licenses to engage in Type 1 and Type 7 regulated activities under the Securities and Futures Ordinance as a trading platform in Hong Kong.
Looking forward, the Group will continue to adhere to the development principle of “diversification, compliance and professionalism” and persistently optimise the virtual asset business strategy. We are optimistic that the “one-stop compliant virtual asset service platform” the Group has been developing will bridge between traditional financial institutions and virtual asset world, thus consolidating and expanding the core competitiveness and achieving long-term development of the Group. Huobi Tech believes that both the Group and shareholders will receive reasonable returns as long as we adhere to forward-looking layout and steady expansion of the compliance business.