GoFintech revenue surges in latest fiscal year, but loss deepens on one-off charges

Financial services provider GoFintech Quantum Innovation Ltd. (0290.HK) on Tuesday reported its revenue rose about 103% to HK$1.75 billion ($224 million) in its fiscal year through March from HK$863 million the previous year. Fair value gains on investments at fair value through profit or loss rose to HK$422 million from HK$50 million.

But the company recorded a net loss of HK$2.13 billion for the year, sharply wider than its loss of HK$2.53 million a year earlier. It attributed the big increase mainly to one-off items, including an impairment loss of about HK$2.46 billion related to its acquisition of CSOP Asset Management Ltd., as well as a deemed disposal loss of about HK$219 million after its stake in Wealthink AI-Innovation Capital Ltd. was diluted by a new share issue.

Excluding the impact of those items, its adjusted profit would have been about HK$548 million in the latest fiscal year, reversing a loss of HK$2.53 million a year earlier. Its adjusted EBITDA rose to HK$598 million from HK$49.59 million over that period. By business segment, trading and supply chain operations remained the largest revenue contributor at HK$1.57 billion, while revenue from securities brokerage and margin financing increased to about HK$117 million.

GoFintech’s shares climbed to a 52-week high of HK$10.14 in May before quickly retreating after that. The stock closed at HK$2.06 on June 30, nearly 80% below that peak.

By Lee Shih Ta

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