June 29, 2022 — Huobi Technology, a Hong Kong-listed company, released its mid-year financial report for the period ending March 31, 2022. The report highlights significant growth in revenue alongside strategic shifts in virtual asset ecosystem services and global compliance efforts.
Financial Performance Overview
- Revenue: HK$351.8 million, up 34.4% YoY (vs. HK$261.7 million in 2021).
- Gross Profit: HK$101 million, down 24.5% YoY (vs. HK$134 million).
- Net Loss: HK$48.8 million (compared to a HK$54.1 million profit in 2021).
The loss reflects increased investments in new business ventures and compliance licensing across major markets.
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Key Business Segments
Energy/Electronics:
- Revenue: HK$210.4 million (30.9% YoY growth).
- Primary driver of traditional income streams.
Technology Solutions:
- Revenue: HK$44.6 million.
- SaaS revenue dropped sharply to HK$5.9 million (from HK$61.5 million), attributed to declining crypto trading volumes amid market downturns.
Virtual Asset Ecosystem:
- Revenue: HK$96.8 million.
Includes:
- Asset Management: HK$8.2 million (4 licensed funds under Huobi Asset Management).
- Trust/Custody: HK$12.5 million.
- Crypto Lending/OTC: HK$76.1 million.
- Trading platform and mining operations inactive during reporting period.
Strategic Holdings & Compliance
- Total Assets: HK$1.335 billion (+87.4% YoY).
- Cryptocurrency Holdings: HK$398 million (BTC, ETH, stablecoins; exact quantities undisclosed).
- Cash Reserves: HK$374.6 million.
Global Compliance Progress
- Hong Kong: Applying for Type 1 & 7 licenses under SFO for compliant virtual asset trading.
- Singapore: Submitted Digital Payment Token license application to MAS.
- Huobi Tech Capital: Established post-reporting period to explore Web3.0, DeFi, and NFT opportunities.
FAQ Section
Q: Why did Huobi Tech report a net loss despite revenue growth?
A: Higher operational costs from new business expansions and compliance licensing applications impacted profitability.
Q: What cryptocurrencies does Huobi Tech hold?
A: Bitcoin, Ethereum, and stablecoins (specific amounts not disclosed).
Q: Is Huobi planning layoffs?
A: The group confirmed routine adjustments to align with market conditions but did not specify figures.
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Future Outlook
Huobi Tech continues prioritizing regulatory compliance and ecosystem diversification, positioning itself as a leader in virtual asset services. The company’s focus on strategic holdings and global licensing underscores its long-term growth strategy.
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