SOLOWIN HOLDINGS Reports Unaudited Financial Results for The First Six Months of Fiscal Year 2025
Rhea-AI Summary
SOLOWIN HOLDINGS (NASDAQ: SWIN) reported unaudited financial results for H1 FY2025 ended September 30, 2024, showing significant declines. Revenue decreased 60% to $1.06 million from $2.64 million year-over-year, primarily due to reduced investment advisory fees. The company reported a loss per share of $0.39 compared to earnings of $0.10 in the same period last year.
Expenses increased substantially to $7.35 million from $1.30 million, mainly due to higher general and administrative costs, marketing expenses, and employee benefits. Notable developments include SOLOWIN's selection for the HKMA's Project Ensemble Sandbox and new partnerships with Web3 industry players. The company's cash position improved to $2.46 million as of September 30, 2024, from $2.14 million as of March 31, 2024.
Positive
- Selected for HKMA's Project Ensemble Sandbox alongside major financial institutions
- Cash and cash equivalents increased to $2.46M from $2.14M
- Net cash provided by operating activities was $0.78M vs -$2.37M last year
- New revenue stream from virtual assets transaction services launched
Negative
- Revenue declined 60% to $1.06M from $2.64M year-over-year
- Net loss increased to $6.26M compared to net income of $1.25M last year
- Loss per share of $0.39 vs earnings per share of $0.10 year-over-year
- Investment advisory fees decreased 80% to $318K from $1.56M
- Expenses increased significantly to $7.35M from $1.30M
- Asset management revenue decreased 24% to $380K from $498K
News Market Reaction – SWIN
In the trading session that priced this news, SWIN gained 20.91%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Mr. Shing Tak Tam, Chief Executive Officer of SOLOWIN, commented, "Amid macroeconomic headwinds and volatile market conditions in
To navigate these challenges, we have taken extensive measures to mitigate negative trends and pursue new breakthroughs and business opportunities. Our ongoing business transformation is driven by advancements in Web3 and the latest Fintech developments, as we expand partnerships with key Web3 industry players such as OSL, China AMC, and Zodia Custody. This collaboration allows us to explore emerging opportunities for sustainable growth, leveraging the rise of artificial intelligence and the expanding adoption of digital assets.
We remain confident in our brand strength, robust strategies, and commitment to long-term, sustainable growth within the financial services industry. Notably, in December 2024, SOLOWIN was shortlisted — alongside industry leaders like China AMC (HK), HSBC, Hang Seng Bank, and Fosun Wealth Holdings — to participate in the Hong Kong Monetary Authority's (HKMA) Project Ensemble Sandbox. As part of this initiative, SOLOWIN became one of the first-phase testers, initially focusing on the "Fixed Income and Investment Funds" use case for local applications of tokenized currencies and assets.
Looking ahead, we believe our steady yet adaptable strategies, coupled with strong execution, will enable us to navigate uncertainties and seize opportunities, ultimately delivering long-term value to our shareholders."
First Six Months of Fiscal Year 2025 Financial Results
Revenue
Revenue decreased by
For the six months ended September 30, | ||||||||||||||||
2024 | 2023 | |||||||||||||||
(in thousands) | % of revenue | (in thousands) | % of revenue | |||||||||||||
Securities brokerage commissions and handling income | $ | 75 | 8 | % | $ | 16 | 1 | % | ||||||||
Investment advisory fees | 318 | 30 | % | 1,559 | 59 | % | ||||||||||
Corporate consultancy service income | 237 | 22 | % | - | - | |||||||||||
Asset management income | 380 | 36 | % | 498 | 18 | % | ||||||||||
Virtual assets transaction income | 15 | 1 | % | - | - | |||||||||||
Interest income | 30 | 3 | % | 17 | 1 | % | ||||||||||
Referral income | - | - | 550 | 21 | % | |||||||||||
Total | $ | 1,055 | 100 | % | $ | 2,640 | 100 | % | ||||||||
- Revenue from securities brokerage commissions and handling income increased to
$75,000 $16,000
- Revenue from investment advisory fees decreased by
80% to$318,000 $1,559,000
- Revenue from corporate consultancy service increased to
$237,000
- Revenue from asset management from related parties decreased by
24% to$380,000 $498,000
- Virtual assets transaction income of
$15,000
- Revenue from interest income increased by
$13,000 76% to$30,000 $17,000
- The Company did not have referral income for the six months ended September 30, 2024, compared to
$550,000
Expenses
Expenses increased to
- Commission and handling expenses – Commission and handling expenses increased to
$18,000 $4,000
- General and administrative expenses – General and administrative expenses increased to
$2,016,000 $648,000
- Marketing and promotion expenses – The Company's marketing and promotion expenses consist primarily of advertising and other promotional activities. The Company's marketing and promotion expenses increased by
$929,000 $934,000 $5,000
- (Reversal of) Provision for Expected Credit Losses – The Company recorded reversal of provision for expected credit losses of
$412,000 $155,000
- Employee Benefits Expenses – The Company employee benefits expenses increased substantially by
$3,875,000 788% , to$4,367,000 $492,000
- Referral fee – For the six months ended September 30, 2024, the Company incurred referral fee of
$139,000
- Share of Results of an Associate – For the six months ended September 30, 2024, the Company recorded a share of results of an associate amounting to
$27,000
- Impairment loss of long-term investments – For the six months ended September 30, 2024, the Company recorded an impairment loss of
$259,000
(Loss) Income from Operations
Loss from operations increased to
Other Income
Other income for the six months ended September 30, 2024 mainly consisted of interest income from loan receivables. No other income was received for the six months ended September 30, 2023.
Net (Loss) Income
Net loss increased to
Basic and Diluted (Loss) Earnings per Share
Basic and diluted loss per share increased to
Financial Condition
As of September 30, 2024, cash and cash equivalents increased to
Net cash provided by operating activities was
Net cash provided by investing activities was
Net cash provided by financing activities decreased to
About SOLOWIN HOLDINGS
Solowin Holdings (NASDAQ: SWIN) is a
For more information, please visit the Company's website at https://solowin.io or its investor relationship page at https://ir.solowin.io.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. We have attempted to identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "continue" or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and other factors discussed in the Company's filings with the SEC including the "Risk Factors" section of the Company's most recent Annual Report on Form 20-F as well as in its other reports filed or furnished from time to time with the SEC. 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 review other factors that may affect its future results in the Company's filings with the SEC, which are available for review at www.sec.gov.
For investor and media inquiries please contact:
SOLOWIN HOLDINGS
Investor Relations Department
Email: ir@solomonwin.com.hk
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
SOLOWIN HOLDINGS | ||||||||
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
AS OF SEPTEMBER 30, 2024 AND MARCH 31, 2024 | ||||||||
(Amount in | ||||||||
As of | As of | |||||||
2024 | 2024 | |||||||
$'000 | $'000 | |||||||
(Unaudited) | (Audited) | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 2,459 | 2,140 | ||||||
Cash segregated for regulatory purpose | 5,862 | 5,111 | ||||||
Receivables from: | ||||||||
Customers, net of allowance for expected credit losses of | 203 | 2,668 | ||||||
Customers - related parties, net of allowance for expected credit losses of | 333 | 220 | ||||||
Brokers-dealers and clearing organizations, net of allowance for expected credit losses of | 865 | 664 | ||||||
Prepaid expenses and other current assets, net | 731 | 1,392 | ||||||
Loan receivables, net of allowance for expected credit losses of nil and | - | 574 | ||||||
Amount due from related parties | 4 | 26 | ||||||
Total current assets | 10,457 | 12,795 | ||||||
Non-current assets: | ||||||||
Investment in an associate | 227 | 254 | ||||||
Long-term investments, net | 401 | - | ||||||
Property and equipment, net | 135 | 150 | ||||||
Operating right-of-use assets, net | 729 | 1,057 | ||||||
Intangible assets, net | 129 | 77 | ||||||
Refundable deposits | 631 | 618 | ||||||
Prepaid expenses, net | 403 | 450 | ||||||
Total non-current assets | 2,655 | 2,606 | ||||||
TOTAL ASSETS | 13,112 | 15,401 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Payables to customers | 5,682 | 5,111 | ||||||
Payables to clearing organizations | 170 | - | ||||||
Accruals and other current liabilities | 303 | 232 | ||||||
Contract liabilities | 151 | - | ||||||
Income taxes payable | 55 | 55 | ||||||
Operating lease liabilities - current | 534 | 631 | ||||||
Amount due to a director | 3 | 3 | ||||||
Amount due to a related party | 6 | 6 | ||||||
Total current liabilities | 6,904 | 6,038 | ||||||
Non-current liabilities: | ||||||||
Operating lease liabilities - non-current | 196 | 439 | ||||||
Total non-current liabilities | 196 | 439 | ||||||
TOTAL LIABILITIES | 7,100 | 6,477 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
Shareholders' equity | ||||||||
Ordinary shares ( | 2 | 1 | ||||||
Additional paid-in capital | 18,219 | 14,908 | ||||||
Accumulated losses | (12,239) | (5,984) | ||||||
Accumulated other comprehensive income (losses) | 30 | (1) | ||||||
Total shareholders' equity | 6,012 | 8,924 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 13,112 | 15,401 | ||||||
SOLOWIN HOLDINGS | |||||||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) | |||||||||
INCOME AND | |||||||||
COMPREHENSIVE (LOSS) INCOME | |||||||||
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 | |||||||||
(Amount in | |||||||||
For the six months | |||||||||
2024 | 2023 | ||||||||
$'000 | $'000 | ||||||||
Revenues | |||||||||
Securities brokerage commissions and handling income | 75 | 16 | |||||||
Investment advisory fees | 318 | 1,559 | |||||||
Corporate consultancy service income | 237 | - | |||||||
Asset management income - related parties | 380 | 498 | |||||||
Virtual assets transaction income | 15 | - | |||||||
Interest income | 30 | 17 | |||||||
Referral income | - | 550 | |||||||
Total revenues | 1,055 | 2,640 | |||||||
Expenses | |||||||||
Marketing and promotion expenses | 934 | 5 | |||||||
Commission and handling expenses | 18 | 4 | |||||||
Professional fee | 539 | 180 | |||||||
Information technology expenses | 309 | 208 | |||||||
Office expenses | 447 | 113 | |||||||
(Reversal of) provision for expected credit losses | (412) | 155 | |||||||
Employee benefits expenses | 4,367 | 492 | |||||||
Referral fee | 139 | - | |||||||
Share of results of an associate | 27 | - | |||||||
Impairment loss of long-term investments | 259 | - | |||||||
General and administrative expenses | 721 | 147 | |||||||
Total expenses | 7,348 | 1,304 | |||||||
Other income | |||||||||
Interest income | 34 | - | |||||||
Other income | 4 | - | |||||||
Total other income | 38 | - | |||||||
(Loss) income before income tax expense | (6,255) | 1,336 | |||||||
Income tax expense | - | 88 | |||||||
Net (loss) income | (6,255) | 1,248 | |||||||
Other comprehensive income | |||||||||
Foreign currency translation adjustment | 31 | 10 | |||||||
Total comprehensive (loss) income | (6,224) | 1,258 | |||||||
Basic and diluted net (loss) income per share | (0.39) | 0.10 | |||||||
Weighted average number of shares outstanding - basic and diluted | 15,961,639 | 12,252,747 | |||||||
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SOURCE SOLOWIN HOLDINGS