Huobi Tech’s Interim Revenue Doubled in 2021 with Diversified Business Development

Financial Highlights

  • The total revenue amounted to approximately HK$261.7 million, representing an increase of approximately 122.8% or HK$144.2 million
  • The gross profit was HK$134.0 million, up by 112.3 million or 516.5%; the gross profit margin was 51.2%, increased by 176.8%
  • The gross profit of power-related & electrical/electronic products businesses amounted to HK$36.4 million, representing a gross profit margin of 22.6%, which met the expectation
  • The revenue of the blockchain and virtual asset-related new business reached HK$100 million, accounting for 38.56% of the Group’s total revenue
  • The gross profit of technology solution business was HK$28.2 million, with a considerable gross profit margin of 73.1%
  • The Group had abundant capital with the cash and cash equivalents of HK$397.3 million

Huobi Technology Holdings Limited (“Huobi Tech” or the “Company”, stock code: 1611.HK) and together with its subsidiaries (the “Group”) is pleased to announce its unaudited interim results for the six months ended 31 March 2021 (“the Period”). In the Period, despite the considerable impact of the protracted global pandemic on the global economic development, the Group’s business progress and performance have achieved remarkable results, turning the tide against the trend.

The Group recorded a total revenue of approximately HK$262 million for the six months ended 31 March 2021, representing an increase of 122.8% as compared to the same period last year. The gross profit of the Group was HK$134 million, representing an increase of approximately 516.5% or HK$112.3 million compared with the same period of last year. The profit attributable to owners of the company was HK$54.1 million, witnessing the turnaround from loss to profit. During the period, the Group’s earnings per share registered 17.62 HK cents.

During the Period, the Group has embraced the general trend of the industry development and firmly diversified its business development. With its excellent achievements in the construction of blockchain and virtual asset ecosystem, the Group has substantially realized the application for a number of licenses regarding finance and virtual asset, the business under which has been carried out successfully and gradually. At the same time, the geographical distribution of its business covers Asia Pacific and North America, actively embracing the possibilities of its business development in different regions and achieving good communication and interaction with the regulators in the relevant regions.

During the period, the Group’s blockchain and virtual asset-related new business performed exceptionally, accounting for 38.56% of the Group’s total revenue from 6.5% in 2020 Interim Report. In particular, the technology solution business achieved substantial growth, with a revenue of approximately HK$38.6 million, a gross profit of HK$28.2 million and a corresponding gross profit margin of 73.1%. The Group provided data centre and cloud-based services to global customers in blockchain, virtual assets, fintech, big data as well as other innovative technology sectors. At the same time, the Group provides SaaS (“software as a service”) for customers of virtual asset trading platforms access to and use of the virtual asset trading platform related technology software in the hosted environment. This includes maintaining, supporting, and developing and implementing customizations to the Software in order to operate a virtual asset trading platform. During the Period, the business achieved substantial growth, with revenue up to HK$61.5 million, representing an increase of more than 200 times as compared to the same period last year. The gross profit was HK$59.4 million and the gross profit margin was 96.7%. The Group will continue to vigorously develop the blockchain and virtual asset-related new business to sustain a steady growth in the future.

At the same time, in terms of manufacturing business, the Group realized considerable growth in business revenue and gross profit during the period, benefiting from positive factors such as the alleviation of the impacts of the COVID-19 pandemic in the PRC, resumption of work and production, and gradual recovery of market. During the period, the Group’s revenue from manufacturing business was HK$161 million, up by 46.5% as compared to the same period last year. The Group’s gross profit margin in manufacturing business during the Period reached 22.6%, representing an increase of 5.7 percentage points compared with the same period of last year, thanks to the shift of sales portfolio to customers with higher gross profit.

In terms of virtual asset ecosystem, during the period, the subsidiaries of Huobi Tech filed for licenses in an orderly manner as planned, and the businesses under those licenses were gradually conducted: Huobi Asset Management (Hong Kong) Limited successfully secured regulatory approval from the Hong Kong Securities and Futures Commission (“SFC”) to manage 100% virtual asset portfolios and officially launched five virtual asset-related funds; Huobi Trust Company (“Huobi Trust US”) successfully obtained the Trust Company License (Nevada USA); and Huobi Trust Limited was approved to be registered as a trust company in Hong Kong.

Looking ahead, the Group will firmly maintain its layout of blockchain and virtual assets based on the healthy and orderly development of manufacturing business. Meanwhile, the Group continues to actively apply for virtual asset and finance-related licenses in major markets around the world to accelerate the process of compliance. Huobi Tech is committed to becoming the leading one-stop virtual asset service platform in Asia. The Group plans to apply to the SFC to be licensed to conduct the Type 1 and Type 7 regulated activities under the Securities and Futures Ordinance as a virtual asset trading platform in Hong Kong. At the same time, we have applied to the Monetary Authority of Singapore (“MAS”) to be licensed under the Payment Services Act 2019 as a Major Payment Institution providing, amongst other things, digital payment token services. The Group believes that its persistence in long-termism and business diversity will generate reasonable long-term returns to the shareholders in the future.

Scroll to Top