Insight into the latest financial report of GOFINTECH QUANT (00290): After squeezing out the "non-cash book water", the true growth has been achieved. The science and technology dark horse driven by dual wheels has already undergone a qualitative change.

In the Hong Kong stock market, it is not uncommon for accounting standards (especially those involving fair value and share-based payments) to cause "fake falls" in the books, and these times are often the perfect window to test the professionalism of investors and discover value opportunities. Recently, GOFINTECH QUANT (00290) officially released its performance report for 2025/2026. At first glance, a large amount of loss may confuse ordinary investors, but through professional financial "insight," we can see that this is entirely a "non-cash accounting game" caused by the company's share price increase. After deducting one-time non-cash impairment, the company's true fundamentals not only achieved a strong turnaround from loss to profit, but also delivered a historic explosive performance in revenue, operating profit, asset size, and strategic investment blueprint. I. Insight into Financial Reports: A "non-cash impairment" unrelated to daily operations The financial report shows that the Group recorded a nominal loss of approximately 2.131 billion Hong Kong dollars this fiscal year. However, a deep dive into the financial report notes and management discussions reveals that the core reason for the loss is a whopping 2.459 billion Hong Kong dollars in "impairment losses on acquired target shares." The logic behind this impairment is quite "dramatic" and proves the interesting nature of the market: the company previously acquired a 22.50% stake in Southern Dongying for 1.1 billion Hong Kong dollars and agreed to settle with shares priced at 0.79 Hong Kong dollars per share. However, when completed, due to the bullish market outlook for GOFINTECH QUANT itself, the company's stock price surged to 2.65 Hong Kong dollars in the secondary market. According to international accounting standards, the issued equity shares must be valued at the market price on the completion date (2.65 Hong Kong dollars), which increased the book cost to 3.723 billion Hong Kong dollars. The independent valuer offered an actual fair value assessment of around 1.27 billion Hong Kong dollars for the Southern Dongying stake, resulting in a one-time "impairment loss" on the books. Firstly, this impairment is purely a non-cash accounting provision and does not involve any actual cash outflow, so the company's financial chain and normal operations have not been damaged. Secondly, the fundamental reason for the impairment was the company's own stock price significantly rising. Challenging the actual operations of the company based on the "floating loss" caused by the excellent stock price performance clearly falls into a trap of thinking. II. Fighting Against the Trend: Significant turnaround in operating profit, overall positive core financial data If we exclude one-time accounting factors, the true operating performance of GOFINTECH QUANT will be fully revealed: Double explosion in revenue and investment income: During the reporting period, the total revenue and the total change in fair value of investment included in the income statement increased by 138.10% year-on-year, reaching a historical high of 2.175 billion Hong Kong dollars, demonstrating its strong ability to attract funds with a strategic combination of "traditional finance foundation and cutting-edge technology breakthrough." Real operating profit: Successfully turning losses into profits, with a net profit attributable to owners of approximately 548 million Hong Kong dollars, and adjusted EBITDA showing a profit of 598 million Hong Kong dollars. Doubling of asset size: By the end of the reporting period, the total asset size of the Group reached 91.28 billion Hong Kong dollars, an increase of 97.92% from the previous year-end, putting one step away from joining the hundred billion asset club. Adequate ammunition and stable financial chain: Successfully completing a 1.3 billion Hong Kong dollar share placement during the period, the Group held a total of 436 million Hong Kong dollars in cash and cash equivalents at the end of the period, providing reserve resources for the future landing of scientific and technological projects. III. Strategic Investments: Stroke of genius with high-quality assets Among the various business segments, GOFINTECH QUANT's equity investment segment undoubtedly became the biggest highlight in this financial report, with the segment achieving a revenue and fair value income total of as high as 423 million Hong Kong dollars in the reporting year, and a segment profit of 217 million Hong Kong dollars. Behind these impressive figures lies the company's precise strategic positioning: Investing in leading asset managementSouthern Dongying: In terms of business substance, the successful acquisition of a 22.50% stake in Southern Dongying was an absolute "stroke of genius." Southern Dongying, as a leading ETF issuer in Asia, has a huge asset management scale and strong profitability. Based on the data disclosed in GOFINTECH QUANT's performance announcement for the period from January 2 to March 31, 2026, the attributable profit of Southern Dongying has already reached 35.361 million Hong Kong dollars, and it is expected to not only bring stable and continuous investment returns in the future but also may lead to greater ecological synergy in asset management and cross-border financing fields. Deployment in hard technologyShanghai FOURSEMI Semiconductor: During the period, the company subscribed to 2.475 million shares of Shanghai FOURSEMI Semiconductor Co., Ltd. at a price of 40 Hong Kong dollars per share. As a precise financial investment in a semiconductor industry chain company with technological barriers, this transaction not only aligns with the development trend of cutting-edge hard technology but also, due to the scarcity of the target assets in the capital market, can bring excellent financial returns. IV. Ready to Burst: "Finance + Science and Technology" taking off together, valuation reshaping on the fast track According to the latest performance announcement, in addition to the blooming results of strategic equity investments, the Company's other core traditional financial sectors have also demonstrated extremely stable cash flow generation capabilities, showing excellent counter-cyclical resilience. Based on this foundation, GOFINTECH QUANT's cutting-edge layout in the field of science and technology will pave the way for explosive growth. According to market reports, GOFINTECH QUANT strategically invested in Hengsheng Technology, a quantum technology company led by top Chinese scientists, for commercializing top-notch quantum technology in the future, and the potential in this area should not be underestimated. With its formal inclusion in the Hong Kong Stock Connect on March 9, southbound funds are showing a clear trend of acceleration in allocation. In the past 60 days, net inflows of over 200 million Hong Kong dollars have been seen through the Hong Kong Stock Connect. The continued presence of mainland funds is effectively activating the company's market liquidity and valuation flexibility. The market is a voting machine in the short term and a weighing machine in the long term. By deeply analyzing this period's performance announcement, we have seen through the technical "floating losses" caused by accounting impairments and focused on the objective facts of significant growth in core operating profit and doubling of total assets. With the steady expansion of the scale of southbound funds holding, a new valuation species emerging in the field of traditional finance licensing advantage, as well as quantum and Web3 frontier areas, the process of value reassessment has just begun.