TRADEGO

was live · ·

Jieli Trading Platform 2025 Annual Results Conference

[AI Key Points Summary]

Financial performance

- Total revenue reached 187 million Hong Kong dollars, a year-on-year increase of 43.8%, hitting a multi-year high

Net profit of 67.49 million Hong Kong dollars, an increase of 8.2% year-over-year

- Licensed financial services revenue exceeded 100 million Hong Kong dollars for the first time, reaching 103 million Hong Kong dollars, a year-on-year increase of 48.4%

Cash and cash equivalents of 311 million Hong Kong dollars, up 91.2% from the same period last year

Business Progress

TGM has participated in approximately 22 cumulative transaction projects, with total margin loan amounts exceeding 40 billion Hong Kong dollars

Completed the acquisition of a 33.4% stake in an asset management company holding Type 4 and Type 9 licenses

- Launched the Deep Trade AI Agent intelligent trading system based on large-scale AI language models

- The plan to transfer to the main board has been officially approved by the board of directors, with relevant intermediaries now fully engaged

Guidance for next quarter’s performance

Cautiously optimistic about TGM's revenue for the next fiscal year, aiming for steady growth

- Asset management business is expected to become one of the key growth drivers over the next 3-5 years

The Type 4 license will monetize research services, expected to contribute revenue in the next fiscal year

Continuously increasing R&D investment in AI-related fields to strengthen technological barriers and product competitiveness

Opportunity

Leveraging the policy benefits of Hong Kong's investment immigration and high-net-worth user resources to develop asset management business

In the direction of the AI investment research platform, research and data accumulation will be operated under licensed frameworks

Hong Kong’s proactive policies in innovative areas such as stablecoins and Web3 are paving the way for virtual asset business

- Monitor regulatory developments and market opportunities in the RW tokenized fund sector

Risk

- The Hong Kong IPO market experiences cyclical fluctuations

- Main board transfer applications are subject to regulatory review, creating uncertainties

[AI Conference Record]

Xue Jiao

Dear investors, analysts, and media friends, good afternoon. Welcome to the 2025 annual earnings presentation of Jiali Trading Treasure Fintech Limited. I am Xue Jiao, the host of this conference and the IR head of the company. First of all, I would like to extend my sincere gratitude to all those who have been supporting and following Jiali Trading Treasure for a long time.

The management team attending today's earnings conference includes Mr. An Liuyong, Chairman of the Board of Jiali Trading Treasure; Mr. William Wan Yong, Chief Administrative Officer; Mr. Danny Zhang Wenhua, Chief Technology Officer; Mr. Larry Wu Jieqiang, Chief Financial Officer; and Mr. Ray Liu Weihong, Head of Licensed Financial Business at TradeGo Markets TGM.

This earnings presentation will first feature the management discussing the company’s financial performance, business review for the year ended March 31, 2026, and future outlook, followed by a Q&A session. Please note that the business outlook and financial forecasts mentioned in this presentation are forward-looking statements, which may vary due to market and regulatory environment impacts. Please interpret them rationally.

Next, we invite the Chairman of the Board, Leon Liu Yong, to share with us the overall operating results, strategic layout, and future development blueprint for the 2025 fiscal year. Let’s welcome Leon.

Leon Liu Yong

Dear investors, analysts, and media friends, good afternoon. I am Li Yang from Jiali Trading Treasure. Welcome to the 2025 annual earnings presentation of Jiali Trading Treasure. Over the past year, Hong Kong's capital market has seen a significant recovery, with the average daily trading volume of Hong Kong stocks rebounding sharply, and the IPO fundraising amount reclaiming the top spot globally. Market liquidity and financing functions have fully recovered.

Against this macro backdrop, Jiali Trading Treasure, empowered by its fintech and licensed financial dual-wing strategy, delivered a report card showing over 40% revenue growth and substantial profit release. This is no accident but the result of the resonance between our long-term strategy and market opportunities. Today, I am honored to represent the company in reporting to you the historic achievements of the past year and the core strategic blueprint for the future.

I’d like to highlight a few key developments. First, the expansion of our licensed financial business continues. Our wholly-owned subsidiary, TradeGo Markets (TGM), has become one of the strongest growth drivers. During the year, TGM participated in approximately 22 transactions cumulatively, with total loan amounts exceeding 40 billion Hong Kong dollars, significantly boosting its business scale and industry standing.

To support TGM in seizing market opportunities and achieving greater development, the group has injected multiple rounds of capital, totaling more than 100 million Hong Kong dollars, greatly enhancing TGM's capital strength and business capacity. More importantly, we are building a more competitive financial licensing landscape for the future.

This is reflected in two strategic moves. The first is optimizing existing licenses to unlock the potential of current businesses. We are proceeding orderly with two key licensing tasks in accordance with regulatory guidance. One is prioritizing the relaxation of the Type 7 Automated Trading Services license, for which we have completed an independent third-party compliance review report and internal process optimization. The relevant materials have been submitted to the regulator.

On this basis, we will timely arrange the upgrade application for the Type 1 Securities Trading license. Currently, Hong Kong’s policy orientation towards innovative fields such as stablecoins and Web3 is positive. We will closely follow the regulatory direction, actively explore business development and industry merger and acquisition opportunities, paving the way in advance for legally compliant entry into innovative businesses like virtual assets, thereby expanding our strategic space.

The second move is to expand the scope of licenses and enter new tracks. Just recently, we have completed the equity acquisition and closing of an asset management company holding a Type 4 Advising on Securities license and a Type 9 Asset Management license. This marks the official strategic entry of Jet Power Trading into the fields related to asset management and investment advisory.

The Type 9 license allows us to leverage Hong Kong's positioning as an international wealth management center, combined with the benefits of investment immigration policies, utilizing the high-net-worth user resources accumulated by the company to build a professional asset management business. At the same time, we are very optimistic about the AI investment research platform direction, planning to operate the research and data沉淀 from our subsidiary under a licensed framework, with the potential to realize research service revenue in the next fiscal year, further enriching our income structure.

This not only perfects our license matrix but also achieves a critical leap in our business model, extending from transaction execution to the upstream part of the wealth management value chain, making our one-stop comprehensive financial service capabilities more complete. Second, the fintech engine continues to gain momentum. Technological innovation is our foundation.

Over the past year, we launched Deep Trade AI Agent, an intelligent trading system based on AI large language models and real-time data engines. Deep Trade represents a breakthrough in the deep application of cutting-edge artificial intelligence technology in financial services scenarios, aiming to bring investors innovative interactive and decision-making experiences.

Currently, this system has achieved significant trading volume growth effects, with trades facilitated by Deep Trade accounting for approximately 30% of the total trading volume on our brokerage platform, effectively promoting the overall turnover of the platform and helping improve the market ranking of our associated exchange participants. Meanwhile, our securities data services have won authoritative awards from the Hong Kong Stock Exchange for seven consecutive years, affirming our professional standing in the industry.

Our SaaS platform, Jet Power Financial Cloud, continues to evolve, serving more brokerage partners and advancing the digital transformation of the industry. In the next fiscal year, the company will continue to increase R&D investment in AI-related areas, strengthening technological barriers and product competitiveness. Third, capital market value has gained widespread recognition.

During the year, the company attracted attention and investments from renowned international long-term funds, representing professional capital's affirmation of our strategic direction. We also enhanced our capital strength through new share placements and conveyed firm belief in the company's intrinsic value through share repurchases and management buybacks.

Regarding the transfer to the main board, I would like to report important progress to everyone: the company's transfer plan has been officially approved by the board, and relevant intermediaries have fully intervened. All tasks are proceeding steadily according to plan. The company has met the material requirements for transferring to the main board and will submit the application as soon as possible.

The shift to the main board is not due to changing circumstances but a natural progression in the company's development stage. It will bring greater market visibility, better stock liquidity, more reasonable valuation levels, and attract a broader investor base, ultimately creating greater value for shareholders. Looking ahead, our strategic blueprint is taking shape, with steady growth in financial technology, robust expansion in licensed finance, and successful entry into innovative business segments through forward-looking asset management strategies.

Our next step is to make this ecosystem richer and operate more efficiently. Our goal is clear: to build Xie Li Trading Treasure into a leading, technology-driven comprehensive financial services platform. We have a clear roadmap, an execution team in place, and the trust and support of our shareholders and partners.

Next, I will hand over the floor to my colleague, who will provide a detailed breakdown of the financial data and business specifics. Once again, thank you all for your trust and support. We look forward to working together with you and witnessing Xie Li Trading Treasure enter a new phase of even greater success. Thank you all.

Xue Jiao

Thank you, Lian, for your remarks. Next, we will hand over to the Chief Financial Officer, Larry Wu Jieqiang, who will interpret the company's core financial data for 2025. Please welcome Larry.

Larry Wu Jieqiang

Good afternoon, investors and analysts. I am Larry, CFO of Jieli Trading Treasure. Chairman Lian has just introduced the company's development blueprint over the past year from a strategic perspective. Now, I will break down this fiscal year’s operating results and financial performance from a financial standpoint.

Let us first look at the key figures. This fiscal year, the group achieved total revenue of HKD 187 million, a 43.8% increase from HKD 130 million in the same period last year, reaching a multi-year high. It is worth noting that last year's base already reflected about 97% year-over-year growth. Building on that doubled high base, we achieved over 40% growth, which is relatively rare in the industry.

During the same period, net profit reached HKD 67.49 million, an 8.2% year-over-year increase, maintaining steady profit growth overall. Now let’s analyze the revenue structure. The group's revenue comprises two major segments: licensed financial services and integrated securities trading platform services, which are part of our fintech business.

The licensed financial services segment, operated by subsidiary TGM, recorded revenue exceeding HKD 100 million for the first time this fiscal year, reaching HKD 103 million, a 48.4% year-over-year increase. Its share of total revenue rose from 53% last year to 55%. Revenue from underwriting and distribution services amounted to HKD 85.26 million, a 44.6% year-over-year increase, reflecting TGM's success in securing and executing numerous key projects in a highly competitive market.

Revenue from securities brokerage and trading services reached HKD 14.25 million, representing a year-over-year increase of 50.1%. Interest income from IPO financing amounted to HKD 3.05 million, surging by 370% year-over-year. Margin financing business has started contributing revenue, opening up new income streams for the future.

The fintech business segment includes integrated terminal SaaS services for market data and trading, among which SaaS services stand out. Full-year revenue reached HKD 49.91 million, a year-on-year increase of 71.2%, accounting for 26.8% of total revenue. Our SaaS platform, Jiel Financial Cloud, continues to enhance product functionality and expand application scenarios.

Currently, it stably serves over a hundred brokerages, generating approximately HKD 16.24 million in client trading channel service revenue and around HKD 10.81 million in market data service revenue. Both sub-business segments have continued to grow steadily, showing strong resilience. Overall, the company's revenue structure is becoming increasingly diversified, driven by dual engines of licensed finance and fintech, not reliant on a single business line. Growth sustainability is continuously strengthening, and risk resistance capability is consistently improving.

Looking at profitability, this fiscal year the group's overall gross profit reached HKD 163 million, maintaining a high gross margin of 87.5%. Direct costs were HKD 23.28 million, increasing by 48.5% year-over-year, which aligns closely with revenue growth. On the expense side, employee costs amounted to HKD 41.07 million, rising slightly by 4.2%, maintaining reasonable and stable human resource investment, far below the rate of revenue growth.

Sales and administrative expenses reached HKD 20.15 million, growing by 109.7% year-over-year, primarily due to increased business expansion, marketing efforts, and system investments. Financing costs dropped to just over ten thousand Hong Kong dollars, mainly because the company has no bank loans, reflecting a very healthy asset-liability structure.

In terms of R&D, the group's R&D expenditure for this fiscal year was HKD 10.17 million, increasing by 3.3% year-over-year. We remain committed to technology-driven development, continuously increasing investments in dark pool trading, big data AI interaction systems, and real-time trading engines, further solidifying our technological barriers and consolidating our core competitiveness in the fintech field.

Net profit margin stands at 36.2%, maintaining an excellent level within the fintech industry. The company has no significant asset impairment, ensuring solid profit quality. Turning to the balance sheet status, as of March 31, 2026, the group's total assets amounted to HKD 467 million, representing a 109.5% increase from HKD 223 million in the same period last year.

Among these, cash and cash equivalents totaled HKD 311 million, increasing by HKD 148 million from HKD 163 million the previous year, marking a 91.2% growth. This substantial rise in cash reserves primarily stems from two sources: robust cash flow generated by operating activities and new share placements completed during the year. Ample cash provides absolute assurance for executing all strategic plans.

Total liabilities amount to HKD 53.46 million, mainly consisting of accounts payable and tax payables, with no bank loans. The debt-to-asset ratio is only about 11.4%, free from interest-bearing debt pressure or significant repayment risks. The financial structure remains secure, with net assets reaching HKD 414 million, reflecting a 123.0% year-on-year increase and continuous enhancement of shareholders' equity.

Over the past year, under the leadership of management, the company completed and advanced several key capital operations. First, new share placements. During this fiscal year, the company completed two placements based on general authorization. In July 2025, 80 million shares were placed, raising approximately HKD 49.63 million. In November 2025, a second placement of 70 million shares raised approximately HKD 92.02 million.

The two parties raised a total of approximately 142 million Hong Kong dollars, with all proceeds allocated for core business expansion and technology and system upgrades to enhance long-term competitiveness. Through multiple rounds of capital increases in TGM, we have completed three rounds of funding totaling 113 million Hong Kong dollars, while maintaining the company's ownership stake at 100%.

This capital directly enhanced TGM's underwriting capacity, Ma Zhan service capabilities, risk management abilities, and brand credibility, supporting its leapfrog development. Share repurchases and management buybacks: when the stock price was undervalued by the market, we decisively initiated share buybacks while management actively increased their holdings, sending the clearest signal of confidence to all shareholders.

Acquisition of Type 4 and Type 9 licensed assets: after the reporting period, we completed the acquisition of a 33.4% stake in a licensed asset management company through a wholly-owned subsidiary, swiftly entering the trillion-dollar asset management and investment advisory sector, facilitating another significant upgrade to our business model.

The transition to the main board is proceeding steadily. The application for the transition has been approved by the board of directors, and all intermediaries have fully commenced work. This is not only a change in trading venue but also a comprehensive upgrade in corporate governance transparency and market image, aimed at creating greater long-term value for all shareholders.

Dear shareholders and friends, over the past year, the company has delivered a report card featuring rapid growth, stable profitability, strong finances, and an optimal structure. This is the result of the entire team’s efforts and, more importantly, your trust and support as shareholders. Moving forward, the company will continue to adhere to sound, transparent, compliant, and efficient financial management principles, fully supporting the deepening of a dual-driven strategy powered by financial technology and licensed finance, ultimately achieving sustainable long-term growth in shareholder value.

That concludes my presentation. We will now move on to the Q&A session. I welcome your questions. Thank you all.

Xue Jiao

Dear investors and analyst friends, thank you for patiently waiting online. Due to the extensive agenda during the earlier board meeting, this earnings call started later than planned. We sincerely apologize for any inconvenience caused and appreciate your understanding and support.

We will now officially enter the Q&A session. Earlier, Chairman Leo and CFO Larry presented the company’s strategic achievements and financial performance for 2025. Next, we will proceed to the management Q&A portion of this earnings call. Questions will be taken via phone from analysts, combined with online interactions from investors.

First, let's invite the first questioner, Eva from SBI SoftBank China. Please, Eva, go ahead with your question.

Eva

Hello management, I'm an analyst at SBI and have two questions for the management team. I've noticed that over the past two years, the company's revenue and profits have both seen substantial growth. How does the management view the sustainability of this high growth, and where do they see the ceiling for future growth?

Additionally, regarding the company’s licensed financial services and fintech sectors, how will these two segments develop synergistically, and how will the revenue proportions between them evolve? Another question: I’ve noticed that the company has fully acquired 33% of a certain asset management firm. What impact will this have on the group's revenue structure going forward, and are there any plans to increase holdings or gain controlling stakes in the future? Thank you.

Leon Liu Yong

Thank you to the investors for their attention and to Eva from SBI for the question. We have maintained continuous growth for three consecutive years. This is due to the group’s early deployment and active investment in financial licenses. Of course, this would not have been possible without Hong Kong ranking among the top IPO markets globally for the past three years.

Currently, the number and quality of fundraising projects in the market and nearly five hundred new applications are continuously improving. Pre-IPO company projects continue to grow, while post-IPO services have also started contributing consistent revenue.

Recently, as you may have seen in our announcements, we acquired a licensed company and are actively deploying AI-driven information and wealth management services. In this new phase of development, the group will hold licenses numbered 1479 and 1. Let me break this down further.

For license number 1, we are expanding our proprietary trading platform to cover multiple products, multiple markets, and operate around the clock using AI-powered automated trading engines. License number 4 will leverage our years of accumulated AI big data and industry research to develop professional and platform-based services.

The Type 7 license will leverage our existing fintech infrastructure to create an integrated industry ecosystem. The Type 9 license is advancing orderly with IPO-related special fund investments, immigrant investor programs, and wealth management market expansion, presenting a dual-driver growth model. Management anticipates that these two businesses will mutually reinforce each other, sustainably supporting the group's step-by-step development across different stages of the industry’s evolution. Thank you.

William Wanyong

Alright, thank you, moderator, and thank you for the question. Regarding the acquisition of the Type 4 and Type 9 licensed companies and related business arrangements, let me explain from several aspects. First, regarding the impact on settlement and revenue: According to the company's April 30 announcement, this acquisition has officially completed settlement, and we now hold 33.4% of the target asset management company.

This exceeds the 30% threshold for significant influence, and it is expected to be accounted for using the equity method, recognizing investment income based on our shareholding percentage. In terms of its impact on the revenue structure, it may contribute investment income in the short term, while in the medium to long term, it is expected to significantly optimize our revenue structure.

For the Type 9 license, we will rely on Hong Kong's financial framework, including the Wealth Management Center’s investment immigration policies and the development of high-net-worth clients for asset management, to generate revenue through management fees and performance-based compensation. For the Type 4 license, we will leverage live report data, big data, and research沉淀 to formalize and productize our licensing capabilities. We will gradually start monetizing research services in the next fiscal year.

The second major part is about whether to further increase our stake to a controlling interest. At this stage, we will mainly focus on integration, empowerment, and business implementation, first solidifying our asset management operations. In the future, we will comprehensively evaluate strategic value, synergy effects, and shareholder returns to assess the possibility of increasing our stake at the appropriate time. Our attitude is open and prudent, but there is no clear timeline at present.

The third part concerns strategic planning, which I believe has three main directions. The first is to provide professional asset management and investment advisory services to existing clients. TGM's underwriting and securities brokerage businesses have already accumulated a large number of high-net-worth investors and institutional clients.

These clients, in addition to participating in IPO subscriptions and secondary market trading, have strong demands for asset allocation and wealth management. Within the licensed framework, we can offer clients in-depth services such as portfolio management and asset allocation advice, forming an internal closed loop of underwriting plus trading plus asset management.

Second, AI-driven investment research and data-driven asset management. The No. 4 license provides a compliant vehicle for licensing big data such as live reports and level reports, converting data research into compliant investment advice. We will combine intelligent tools like AI agents to gradually launch intelligent, data-driven investment products, infusing our asset management business with big data and AI-driven investment research capabilities.

This will create smart advisory and quantitative strategy products with differentiated competitive advantages. Third, exploring the RW tokenized fund sector. In April 2026, the Hong Kong Securities and Futures Commission issued a circular allowing tokenized open-ended funds to be listed and traded on licensed virtual asset trading platforms, with trading hours potentially extending to 7 days a week, 24 hours a day.

This presents a highly promising market. We will actively monitor regulatory developments and market opportunities in the RW tokenized fund space, leveraging our potential strengths and actual circumstances. Will we issue fund products? The answer is certainly yes, but we will emphasize timing and compliance.

In the first phase, we will primarily focus on separately managed account investments, initially serving institutional clients within the group and high-net-worth individuals. In the second phase, after the team matures and the risk control system is well-established, we will issue fund products at the appropriate time. Overall, asset management business is expected to become one of the key growth drivers for the company over the next three to five years. We will steadily promote this initiative with a focus on compliance and value creation. Thank you, host.

Xue Jiao

Thank you, Mr. Wan, for your response, and thank you, Eva, for your question. Now let's invite the second questioner, Mr. Kan He from Jingzhou Securities. Please go ahead, Mr. Kan.

Issue of what?

Dear management, I noticed that our underwriting revenue has significantly increased in this financial report. How does the company plan to address the cyclical fluctuations of Hong Kong IPOs? Additionally, how robust will the pipeline of IPO projects be in the coming quarters?

Additionally, apart from underwriting, could management provide some guidance on the clear growth drivers for the company’s licensed business platform, TGM, over the next year or two? Specifically, could you offer preliminary revenue and performance guidance for TGM in the next fiscal year, or at least provide directional judgment on the overall trend for TGM’s business in the coming year?

Ray Liu Weihong

Thank you for the investor’s question, and thank you, host. Let me briefly address these two questions. First, regarding the growth in IPOs and whether the outlook remains strong, I would like to emphasize that volatility in the Hong Kong IPO market exists regardless of whether conditions are favorable or challenging, which is entirely normal.

Most members of our team have experienced several cycles, so we have a thorough understanding of market dynamics. In response to this volatility, the company has adopted core strategies, focusing on differentiated business approaches and fundamental analysis, to ensure steady and sustainable growth.

Looking ahead to the next few quarters, the company will place greater emphasis on the quality of IPO projects rather than solely pursuing the number of projects. We hope that the businesses in the pipeline for IPO projects will not only participate in certain key nodes of the IPO but also extend to subsequent refinancing stages, achieving continuous development from point to line.

Although it's difficult to describe as strong, I believe every project is proceeding in an orderly manner. From an overall perspective, this year’s progress is similar to previous years. Projects are usually concentrated and gradually implemented around June, July, or at the end of the year in December and January.

Regarding the second question about clear growth drivers for the next year or two, we assess that over the past two to three years, we have accumulated around 400 professional investors, most of whom are institutional investors. Based on this foundation, we have identified a key growth driver for our licensed business TGM over the next two years.

As previously mentioned, our participation in projects evolves from point to line, and similarly, clients’ involvement in our projects deepens progressively from point to line. Additionally, as Mr. Wan just mentioned, the company recently acquired a payments firm with licenses four and nine, which further aids our business expansion from line to surface dimensions.

Moreover, we actively engage in effective communication with regulators regarding license seven and aim to provide relevant services to the market as soon as possible. On this basis, we hope that our IPO underwriting and license seven transactions will create synergies, forming a comprehensive effect with licenses nine, four, and nineteen, further enhancing our core competitiveness.

Looking ahead to next year, we are cautiously optimistic about revenue from our licensed business. Currently, there are many IPOs and private placement projects in the market with ample liquidity. Therefore, we are adopting a pragmatic strategy, striving for steady growth this year. Thank you.

Xue Jiao

Thank you, Mr. Rui, for your sharing and Mr. Kan for the question. Next, let’s invite the third questioner, Li Puyu from TF Securities, to ask a question.

Li Puyu

Alright, thank you, host, and hello, leaders. It's a great honor to attend the company’s earnings exchange meeting. We have seen very positive growth momentum in our SaaS business. However, the industry is generally facing challenges brought by AI.

So, I would like to ask, considering the market backdrop where AI is impacting and reshaping traditional securities brokerage businesses, how does management view our company’s ability to maintain robust growth in our SaaS business? What are your thoughts on AI’s transformative impact on vertical financial SaaS?

Danny Zhang Wenhua

Thank you for the investor's question. First, addressing your initial question, the core reason behind the significant growth of our SaaS business lies in the synergistic effects of three key factors: the convenience and cost-effectiveness of the product itself, the continuous expansion of use cases, and the solid support of our technological foundation.

Specifically, we rely on the Jielibao Financial Cloud platform to provide customers with plug-and-play, pay-per-use SaaS services. This flexible and efficient model has been highly recognized by our clients. In the current industry environment, profit margins for brokers' economic businesses are narrowing, and cost reduction needs are becoming more prominent. Small and medium-sized institutions are increasingly abandoning costly self-built systems in favor of our lightweight, maintenance-free subscription-based SaaS solutions.

Moreover, our SaaS services are built on a stable and reliable cloud-extended architecture with pre-integrated AI capabilities, continuously enhancing product value and premium pricing. Additionally, this year, we have further expanded the application scenarios of our SaaS services, introducing new features such as cloud market data interfaces, in-machine trading instructions, and outsourced operational services, among other multi-dimensional efforts that have collectively driven significant growth in our SaaS business.

As for how AI is reshaping vertical financial SaaS, we are clear in our assessment: AI does not replace but rather completely reconstructs. First, there is a reconstruction of value, upgrading from simple tool automation to empowering institutions with the ability to make intelligent decisions and conduct precise operations.

Second, there is a reconstruction of form; in the future, complex menu operations will no longer be necessary, and instead, conversational AI agents will deliver and automatically execute tasks. Third, there is a reconstruction of barriers; general large models are becoming increasingly homogenized, while compliance with financial vertical data regulations and the ability to implement real-world scenarios will become the core competitive advantage. Ultimately, this will eliminate low-barrier aggressive brokers while leading companies continue to enhance their responses to these challenges. Thank you.

Li Puyu

Alright, thank you, Mr. Danny. I have another question for the leadership: How does the company position itself within this transformation? Are we acting as a replacement or an enabler? Could you share the company's core strategies and latest developments in AI technology research and application implementation?

Danny Zhang Wenhua

Our positioning within the AI transformation is very clear. We actively embrace the AI wave, using AI to drive productivity changes, and firmly root ourselves in the financial industry as professional AI enablers rather than being replaced. We remain focused on delivering underlying technologies, intelligent systems, and SaaS services, with the core goal of helping clients reduce costs and increase efficiency, fostering coexistence and mutual prosperity with our clients.

At the AI application level, we are currently promoting full adoption internally, allowing AI to genuinely serve our daily work. For example, in our R&D center, we have implemented AI programming across all teams, significantly improving our development efficiency. In the design department, we leverage AI tools to simplify workflows, providing adaptive AI utilities, which have yielded immediate improvements in our work efficiency.

In terms of AI R&D strategy, we remain focused on practical applications, continuously advancing the development of various AI agent products. Already launched is our intelligent customer service system, capable of answering questions and delivering precise user recommendations, significantly enhancing the interactive experience of our TradeGo app.

This includes DeepTrade, an intelligent trading robot that builds end-to-end smart trading agents capable of automatically capturing market fluctuation gains. It lowers the barrier for professional trading and also prepares us technically for potentially extended trading hours on exchanges, enabling better service for our trading users.

Additionally, we have several planned AI applications in development, including LibraryPort, an AI-powered investment research platform that integrates large models to generate high-quality research reports in bulk and in a timely manner, supporting the future development of licensed business operations.

Then, based on the advantages of our own platform and data accumulation, we will output our core technical capabilities to the outside world through various means such as opening the MCP server and providing skills. Meanwhile, our integrated trading system, named TradBot, has also begun steady development.

In the future, we will empower the trading ecosystem with AI to drive the growth of our fintech business as a new engine. Thank you.

Li Puyu

That's all for my questions. Thank you, leader, for your answers.

Xue Jiao

Thank you, Mr. Bu Yu, for your question, and thank you, General Manager Danny, for your response earlier. Next, we will address a question from an online investor. The question is: Investors have noted that the company has been saying it plans to promote its transfer to the main board. What is the current progress regarding the transfer to the main board? What are the key milestones and timeline?

Additionally, investors are concerned about the likelihood of success. If the transfer to the main board is not completed as scheduled, what impact will it have on the company? To address this question, we have invited the company's CFO to respond. Let's welcome Larry.

Larry Wu Jieqiang

Thank you, moderator, and thank you to the online investors for your concern and questions. We appreciate everyone's attention to our company’s transfer process. Moving to the main board has always been an important part of our company’s capital market strategy. Our goal is to further enhance the international influence of our brand, increase stock liquidity, and create higher value for shareholders.

First, let me report on the conditions and current status of the transfer. According to the latest main board transfer rules of the Hong Kong Stock Exchange, specifically the simplified transfer mechanism, the company's management has conducted a rigorous self-assessment on various financial and non-financial indicators.

In terms of financial indicators, the company’s cumulative profits over the past three years have already reached the threshold required for main board listing. Based on market capitalization requirements, the company's valuation has consistently met the main board standards. Regarding compliance and governance, the company’s core business has not undergone significant changes over the past three fiscal years, and management has remained largely stable, thus meeting the basic requirements.

The trading volume of the company's shares in the secondary market indicates that the current stock trading activity meets the liquidity test requirements set by the Exchange. Based on the above situation, the board of directors has unanimously passed a resolution at today's meeting to proceed with the main board transfer process. This is the current status.

Secondly, here are the key milestones and timeline for the transfer. First, the transfer is a systematic project involving regulatory review. The key milestones include internal coordination and due diligence, which involves conducting a comprehensive compliance review of our company’s finance and business departments. We are currently in this phase.

Next is the formal submission and application phase, where we submit the transfer application documents to the Exchange through intermediaries. Thirdly, there will be regulatory inquiries and responses. The Exchange will conduct detailed inquiries into the company’s past compliance records, trading history, internal controls, and our application documents. The duration of this phase depends on the progress of the regulatory review.

The final milestone is obtaining approval for listing and going public. Due to potential impacts from external regulatory environments and market conditions, we have not yet set a specific timeline for completion. However, the management will strictly adhere to the process to push forward the transfer listing.

Thirdly, regarding the assessment of the likelihood of success and risks associated with the transfer mentioned by the applicant. Although the company has generally met the hard metrics such as profit, market capitalization, and trading volume, we must objectively remind investors that applying for a transfer is a challenging task. Regulatory authorities hold extremely high standards for the continuity of compliance records and the effectiveness of internal controls.

On the positive side, our company's operations are stable with solid core financials. On the cautious side, we are currently maintaining active communication with regulators, and management will make every effort to ensure all processes meet regulatory expectations. However, the final outcome of the board transfer depends on the review by the regulatory authorities.

Lastly, the investor asked about the potential impact if the board transfer does not proceed as planned. Management believes that even if the process is affected by external factors or requires a long preparation period, the company’s daily operations and financial health will not be materially harmed.

The company will continue to focus on its core business, enhance profitability, and ensure shareholder returns through various capital operations such as buybacks and dividends. Meanwhile, this platform can still provide necessary financing channels; the company has also completed two rounds of capital allocation in the past year.

In summary, our management will pursue the board transfer work with a transparent and prudent approach, and in accordance with regulatory requirements, will issue market announcements at key milestones and times. We thank investors for their patience and appreciate the support from all shareholders and investors. That concludes my response.

Xue Jiao

Thank you, Larry, for the response. Next, let's address another question from online investors. This investor asked about the statement made earlier by the chairman regarding the company attracting attention and investment from well-known international long-term funds. The investor would like to know if management could share specific details about recent changes in the company’s shareholder structure, such as updates on institutional investor liquidity and foreign participation levels. Let’s have Larry continue to address this question.

Larry Wu Jieqiang

Thank you for the great question—it’s an excellent perspective. First, regarding changes in the shareholder structure, we conducted a detailed analysis using the Live Report share tracing system, which is highly professional. We compared data from March 2025 and March 2026 and found six positive developments.

The first finding is a significant increase in market liquidity. The total number of shares outstanding in our group has risen from 680 million last year to 750 million currently, providing strong support for the stock price, with trading volumes being exceptionally high.

Second, the proportion of institutional investors remains high and has steadily increased. The company’s shareholder base has become more diversified and international. Notably, despite the significant expansion of the company’s equity base, the shareholding percentage of institutional investors has not only remained at nearly 40%, but also increased from 37.1% to 37.7%.

Institutional investors' recognition of the company’s long-term value shows a continued upward trend. More notably, through two private placements, the company attracted several high-quality international long-term funds to join as shareholders, further optimizing the composition of institutional investors and making the shareholder base more diversified and global.

The third positive finding is the notable increase in foreign participation, with growing interest from international investors. We observed that foreign ownership in the company has reached 20.56%, accounting for over one-fifth of the overall shareholder structure, indicating that the company is receiving increasing attention and recognition from global capital markets.

Even more noteworthy is that the company has attracted institutions such as iShares MSCI and other international fund products into its shareholder base. This reflects that the company’s investor base has expanded from the domestic market to global capital markets.

The fourth positive aspect is that the shareholder base has shown a significant globalization pattern. According to data from internationally renowned brokerage firms, our shareholders cover major financial regions around the globe, including mainland China, Singapore, North America, Australia, and Japan and South Korea. This increasingly globalized shareholder network lays a solid foundation for the company's international reputation and future capital operations.

Shareholders maintain stable holdings. The fifth point is that shareholders demonstrate strong stability in their holdings, with long-term confidence continuously solidifying. Based on shareholder behavior, over 25.34% of shareholders have kept their positions unchanged recently, while an additional 30.62% have increased their holdings. Combined, these two groups account for more than half of all shareholders.

This not only indicates that the company's shareholder base remains stable but also reflects that a considerable proportion of shareholders are expressing recognition of the company’s long-term value through concrete actions, providing a more solid confidence base for the company's performance in the capital market.

The sixth relatively positive aspect is that the company's management continues to send out positive signals, creating a resonance between internal and external confidence. Besides external investors who continue to increase and hold their shares long-term, executives within the company have issued voluntary share purchase announcements multiple times during this period, demonstrating firm confidence in the company’s future development prospects and long-term value through tangible actions.

The continuous recognition by external institutional investors and proactive share purchases by internal management mutually reinforce each other, creating a positive scenario of internal and external confidence resonance. In summary, through recent capital operations, our group has not only raised funds but also successfully attracted diversified shareholders, including well-known international institutions, opening new horizons for the company's long-term development and international perspective.

Lastly, let me mention one more point: the relevant data I just shared comes from the ongoing tracking and in-depth analysis of our live report’s shareholding traceability business, which is an actual demonstration of our data capabilities. Moving forward, we will continue to rely on this capability to create more value for the company and our clients. Thank you for the investor's questions. Thank you.

Xue Jiao

Regarding Larry’s previous sharing, due to time constraints, today’s Q&A session will conclude here. We thank all analysts and investors for their questions and for their attention to the company’s annual operations and future plans. If there are further questions, please feel free to contact us through the company website or the investor relations email.

This concludes all the agenda items for this earnings meeting. Once again, thank you for your participation and support. We look forward to working together with everyone and witnessing TradeGo achieve an even more brilliant new phase. Goodbye.

More details:TRADEGO IR

Note: The above content is generated by an AI language model based on publicly available data and third-party automated subtitles. The above content does not represent any position of Futu and does not constitute any investment advice. The Futu Group makes no express or implied guarantees or statements regarding the accuracy, timeliness, or completeness of the above content.

7449 Views