Financial Overview: Revenue Decline and Massive Loss
New Huo Group has released its interim results for the six months ended March 31, 2026, posting an unaudited loss of approximately HKD 244.9 million, a sharp increase of about 1,890% compared to the HKD 12.3 million loss recorded in the same period of 2025. The significant widening of loss was primarily driven by a substantial decline in the group's core revenue stream—crypto asset trading. Revenue from this segment reached HKD 1,944.7 million, down approximately 43.4% year-on-year, reflecting the impact of crypto market volatility and intensified competition on trading volumes.
Asset Management and Quantitative Trading: Client Base Continues to Expand
Despite the pressure on trading revenue, New Huo’s asset management business displayed resilience. As of the reporting date, assets under management (AUM) stood at approximately USD 145.6 million, remaining relatively stable. Notably, the number of clients using New Huo’s quantitative trading services increased by about 12.9% compared to the same period last year, indicating improved client stickiness in institutional and professional services. Continued investment in the asset management segment may lay the groundwork for future profitability recovery.
Trust and Custody: Private Banking Accounts Surge 7-Fold
The trust and custody business emerged as a standout in this reporting period. The number of successfully opened private banking-level accounts surged from 37 to 305, representing a 724% increase; accounts with intentions to open also rose from 106 to 668, a 530% increase. The rapid expansion of private banking accounts suggests rising demand for compliant custody services among high-net-worth individuals and institutions, with New Huo establishing a clear first-mover advantage in this niche market.
OTC Trading and Japanese Licensed Exchange: Steady Growth
The over-the-counter (OTC) crypto trading business also exhibited positive momentum. The number of OTC trading clients increased from 8 to 31, achieving a monthly compound growth rate of 31.1%. Meanwhile, the group’s Japanese licensed exchange, BitTrade, recorded cumulative registered users of 288,214. As a platform registered with Japan’s Financial Services Agency, BitTrade holds scarce value in an increasingly tightening global regulatory environment. The growing user base of BitTrade will help New Huo attract institutional clients in the Asia-Pacific region.
Overall, New Huo Group is navigating a period of core trading revenue decline, but its diversified businesses—asset management, custody, OTC, and licensed exchange—have demonstrated growth potential, which may help improve its financial structure in the coming fiscal year.