Addentax Group Corp. Announces Proposed Acquisition of Artificial Intelligence (AI)-empowered and Crypto-enabled Asset Management Platform, with Potential to Generate Approximately HKD 300 Million in Revenue

Rhea-AI Summary

Addentax Group (Nasdaq: ATXG) announced a proposed acquisition of the offshore wealth management and cross-border service business of Hong Kong-based Riches Group on Feb 6, 2026. If completed, Addentax expects the transaction could contribute approximately HKD 300 million in annualized revenue and provide AI-enabled advisory, regulated digital-asset custody experience, monthly transaction volumes historically exceeding HKD 100 million, access to over 4,000 advisors, and a client base serving thousands of households across jurisdictions.

Positive

• Potential ~HKD 300 million annualized revenue contribution
• Historical monthly transaction volumes exceeding HKD 100 million
• Adds a professional team of over 4,000 advisors
• Access to regulated digital asset custody and investment capabilities

Negative

• Proposed acquisition is subject to closing; financial contribution is preliminary and not guaranteed

News Market Reaction

-5.84% 197.0x vol

16 alerts

-5.84% News Effect

+66.3% Peak Tracked

-7.9% Trough Tracked

-$254K Valuation Impact

$4M Market Cap

197.0x Rel. Volume

On the day this news was published, ATXG declined 5.84%, reflecting a notable negative market reaction. Argus tracked a peak move of +66.3% during that session. Argus tracked a trough of -7.9% from its starting point during tracking. Our momentum scanner triggered 16 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $254K from the company's valuation, bringing the market cap to $4M at that time. Trading volume was exceptionally heavy at 197.0x the daily average, suggesting significant selling pressure.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Potential revenue: HKD 300 million Transaction volume: HK$100 million+ per month High-net-worth families: Over 1,000 families +3 more

6 metrics

Potential revenue HKD 300 million Estimated annualized contribution from proposed acquisition

Transaction volume HK$100 million+ per month Historical monthly transaction volumes from Riches Group services

High-net-worth families Over 1,000 families Families historically supported by Riches Group corporate/fiduciary services

Households served More than 10,000 households Households historically supported by Riches Group services

Institutional partners Over 100 institutions Riches Group strategic partnerships worldwide

Advisory team size Over 4,000 advisors Riches Group professional team expected to be integrated

Market Reality Check

Price: $0.3301 Vol: Volume 109,000 is 64% abo...

high vol

$0.3301 Last Close

Volume Volume 109,000 is 64% above the 20-day average of 66,288 (relative volume 1.64x). high

Technical Shares trade below the 200-day MA of 0.60, despite a 4.99% gain ahead of this news.

Peers on Argus

ATXG is up about 4.99% while peers show mixed moves: GVH (-11.58%), SGLY (-5.87%...

1 Up 2 Down

ATXG is up about 4.99% while peers show mixed moves: GVH (-11.58%), SGLY (-5.87%), CTNT (1.9%), LSH (-14.6%), PSIG (4.4%). Momentum scanner shows only one peer (JYD up 5.88%) moving in the same direction, indicating a stock-specific reaction rather than a sector-wide move.

Historical Context

1 past event · Latest: Oct 14 (Positive)

Pattern 1 events

Date	Event	Sentiment	Move	Catalyst
Oct 14	Web3/RWA cooperation	Positive	-1.0%	Talks to integrate Web3.0 payments and RWA tokenization with KINGS UNITED.

Pattern Detected

Limited history shows a prior positive fintech/Web3 cooperation update drawing a mild negative price reaction, suggesting occasional divergence between strategic tech news and short-term trading.

Recent Company History

In the last six months, ATXG disclosed strategic cooperation discussions with KINGS UNITED on October 14, 2025, targeting Web3.0 payment infrastructure and real‑world asset (RWA) enablement within its supply‑chain ecosystem. That update featured potential token transfers and digital settlement pilots but saw a modest -0.97% next‑day move. Today’s proposed AI‑ and crypto‑enabled asset‑management acquisition continues this pivot toward fintech and digital asset capabilities.

Market Pulse Summary

The stock moved -5.8% in the session following this news. A negative reaction despite the proposed R...

Analysis

The stock moved -5.8% in the session following this news. A negative reaction despite the proposed Riches Group acquisition and its estimated HKD 300 million annualized revenue contribution would fit a pattern where prior digital‑strategy news, such as the Web3/RWA update that saw a -0.97% move, did not translate into immediate price strength. With the stock already trading below the 0.60 200‑day MA, concerns could center on closing risk, integration challenges, and broader listing or governance overhangs.

Key Terms

ai-enabled financial solutions, digital currency/crypto service offerings, offshore wealth management, digital currency custody, +2 more

6 terms

ai-enabled financial solutions technical

"integration of Riches Group's offshore business ecosystem, AI-enabled financial solutions, and digital"

AI-enabled financial solutions are tools or services that use artificial intelligence—like pattern recognition, predictive models and automation—to analyze data, make recommendations, or carry out tasks such as trading, risk assessment, customer service, or portfolio management. They matter to investors because they can speed decisions, lower costs, and uncover insights humans might miss, but they also introduce model risk and reliance on data quality, so their performance and transparency affect investment outcomes and company value.

digital currency/crypto service offerings financial

"AI-enabled financial solutions, and digital currency/crypto service offerings."

Services that let people and businesses buy, sell, hold, move, accept or lend digital currencies and related tokens, including online exchanges, digital wallets, custody storage, payment processors and lending or staking platforms. Investors care because these services are the infrastructure that turns digital coins into usable money: they generate fees, drive user growth and revenue, and concentrate legal and security risks—similar to how banks and payment networks underpin traditional money.

offshore wealth management financial

"proposed strategic acquisition of the offshore wealth management and integrated cross-border service"

Offshore wealth management is the practice of holding, protecting and managing money and investments through banks, advisers or legal structures located outside one’s home country. For investors it matters because it can offer access to different currencies, legal protections, tax planning and privacy—like keeping valuables in a safety-deposit box abroad—but it also carries extra costs, cross-border rules and reputational or regulatory risks that can affect returns and compliance.

digital currency custody financial

"regulated digital asset-related services, including compliant digital currency custody and investment"

Digital currency custody is the set of tools, processes and legal arrangements used to hold and protect cryptocurrencies and tokens, including the secure storage of the secret codes (private keys) that control them. Think of it as a vault plus an identity system that prevents loss, theft or unauthorized access. It matters to investors because custody choices affect how safe, recoverable and tradable an asset is, the counterparty and regulatory risks involved, and ultimately the value and liquidity of holdings.

offshore company registration regulatory

"corporate and fiduciary services, including offshore company registration, tax planning, and global"

Registering a company offshore means setting up a legal business entity in a foreign jurisdiction rather than where its owners live or operate. Investors care because the choice of jurisdiction can affect taxes, legal protections, reporting rules and transparency—like using a mailbox in another neighborhood that changes which rules and taxes apply—so it influences a company’s risk, costs and how easy it is to understand the business.

global trust establishment regulatory

"offshore company registration, tax planning, and global trust establishment services, which have"

The process of creating a legal trust designed to hold and manage assets across multiple countries, setting who controls the assets, who benefits, and how they are handled under different legal systems. Investors care because this structure affects tax treatment, regulatory exposure, access to funds and succession or control, similar to placing valuable items in a secure, labeled locker with clear instructions for guardians in several locations.

AI-generated analysis. Not financial advice.

SHENZHEN, China, Feb. 6, 2026 /PRNewswire/ -- Addentax Group Corp. (Nasdaq: ATXG) (the "Company", "ATXG", "we", "us" or "our") today announced the proposed strategic acquisition of the offshore wealth management and integrated cross-border service business of Hong Kong-based Riches Group, a provider of global asset allocation and cross-border services. The Company believes that, if completed, the proposed acquisition would support the Company's global expansion strategy by facilitating the integration of Riches Group's offshore business ecosystem, AI-enabled financial solutions, and digital currency/crypto service offerings. Based on preliminary internal estimates and subject to final closing and integration, the Company anticipates that the proposed acquisition could contribute approximately HKD 300 million in annualized revenue.

Riches Group, headquartered in Hong Kong, has built a diversified service ecosystem, which includes global wealth management, international education, immigration consulting, and cross-border healthcare services. Riches Group has historically served high-net-worth clients across multiple jurisdictions. Subject to the completion of the proposed acquisition, the Company would gain access to Riches Group's core business assets, including its full suite of wealth management services, which range from private banking and fund custody to global fixed-income products and offshore/US dollar insurance. Based on information provided by Riches Group, these services have historically generated monthly transaction volumes exceeding HK$100 million. The proposed acquisition would also include Riches Group's cross-border lifestyle services, such as global property investment and management, international education planning, investment residency and citizenship, and medical travel services. Additionally, the acquisition is expected to cover Riches Group's corporate and fiduciary services, including offshore company registration, tax planning, and global trust establishment services, which have historically supported over 1,000 high-net-worth families and more than 10,000 households worldwide.

The proposed acquisition is expected to provide the Company with access to Riches Group's AI-enabled wealth advisory capabilities. Riches Group has developed proprietary algorithms designed to support data-driven, personalized asset allocation strategies, real-time risk assessments, and market insights. The Company believes that, if integrated following completion of the acquisition, these capabilities will enhance the precision and efficiency of the Company's global wealth management services. In addition, subject to completion of the acquisition, the Company would obtain access to Riches Group's experience in regulated digital asset-related services, including compliant digital currency custody and investment solutions operating within Hong Kong's regulatory framework. The Company believes that these capabilities could support the offering of regulated digital asset exposure as part of diversified offshore investment portfolios, consistent with applicable regulatory requirements and evolving market demand.

This proposed acquisition is designed to support the Company's expansion in the global fintech sector. Subject to completion of the acquisition, the Company intends to expand its offshore business footprint, gaining access to Riches Group's established network and leveraging its local expertise to enhance its presence in high-growth markets such as Southeast Asia, Europe, and North America. The Company also believes that, if completed, the acquisition could strengthen the Company's client network through the integration of Riches Group's high-net-worth client base and its strategic partnerships with over 100 international institutions. This expanded platform is expected to support the Company's ability to serve the global high-end financial needs of its clients. Moreover, following completion of the acquisition, the Company anticipates benefiting from the integration of Riches Group's professional team of over 4,000 advisors, along with its AI and digital currency R&D capabilities. The Company believes that these resources could support continued technological development and product innovation within the Company's cross-border financial services.

Looking ahead, subject to the completion of the proposed acquisition, the Company expects to be able to leverage its Nasdaq-listed platform, access to global capital markets, and brand profile together with Riches Group's offshore operational capabilities to support the development of an integrated cross-border financial services platform. The Company believes that this combination could enhance its ability to serve clients across multiple jurisdictions within the global financial technology sector.

"We are excited about the opportunity to integrate Riches Group's expertise and innovative capabilities into the Company's global growth strategy," said Hong Zhida, CEO of the Company. "If completed, this proposed acquisition is expected to allow us to accelerate our expansion in the offshore financial market, leverage AI and digital currency, and create greater value for our stockholders, clients, and partners."

About Addentax Group Corp.

Addentax Group Corp. is an integrated service provider specializing in garment manufacturing, logistics services, and property management and subleasing. For more information about the Company, please visit the website: https://www.addentax.com/.

Caution Concerning Forward Looking Statements

All statements other than statements of historical fact in this announcement are forward-looking statements in nature within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions are intended to identify such forward-looking statements. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to consider risk factors, including those described in the Company's filings with the SEC, that may affect the Company's future results. All forward-looking statements attributable to the Company and its subsidiaries or persons acting on their behalf are expressly qualified in their entirety by these risk factors. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. These forward-looking statements are based on information currently available to the Company and its current plans or expectations and are subject to a number of known and unknown uncertainties, risks and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These and other important factors are described in detail in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended March 31, 2025. Although we believe the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this press release and other statements made from time to time by us or our representatives might not occur.

Company Contact:

Public Relations Contact:

Addentax Group Corp.
Phone: + (86) 755 86961 405
yoongxin.chan@zgyingxi.com

Investor Relations Contact:

Sherry Zheng
WAVECREST GROUP INC.
1-718-213-7386
sherry@wavecrestipo.com

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SOURCE Addentax Group Corp.

FAQ

What is Addentax Group (ATXG) proposing to acquire on February 6, 2026?

Addentax proposes to acquire the offshore wealth management and cross-border services business of Riches Group. According to the company, the deal would add AI-enabled wealth advisory, regulated digital-asset custody experience, and cross-border lifestyle services to ATXG's platform.

How much revenue could the Riches Group acquisition add to ATXG (Nasdaq: ATXG)?

The company estimates the proposed acquisition could contribute approximately HKD 300 million in annualized revenue. According to the company, this figure is a preliminary internal estimate and is subject to final closing and integration.

What operational assets would ATXG gain from acquiring Riches Group?

ATXG would gain Riches Group's wealth management services, cross-border lifestyle offerings, corporate and fiduciary services, and AI R&D capabilities. According to the company, these assets include private banking, fund custody, and compliant digital currency custody solutions.

What client scale and transaction volumes does Riches Group report for ATXG investors?

Riches Group has historically served over 1,000 high-net-worth families and 10,000+ households, with monthly transaction volumes exceeding HKD 100 million. According to the company, these metrics reflect the business ecosystem ATXG would access if the deal closes.

What are the main uncertainties investors should note about ATXG's proposed acquisition?

The transaction is proposed and subject to completion, so benefits are not guaranteed. According to the company, expected revenue and integration outcomes are preliminary and depend on final closing, regulatory approvals, and successful integration.