1. Robust Financial Recovery Amid Hong Kong Market Resurgence

Long Investment Corp (formerly known as China Financial Leasing Group Limited) delivered its 2025 Annual Report amidst a remarkable turnaround in the Hong Kong capital markets. Key market indexes such as the Hang Seng Index (HSI) surged 27% in 2025, making it one of the world’s best-performing benchmarks. This recovery was driven by capital inflows, especially Southbound investments, and a shift towards the artificial intelligence (AI) hardware supply chain and specialist technology companies.

Hong Kong reclaimed its global leadership in IPO fundraising, completing over 100 new listings and raising HK\$285 billion, largely led by mega A+H listings and the technology sector. Average daily turnover in the cash market saw a historic 90% increase, reflecting renewed global investor confidence and Hong Kong’s positioning as an innovation hub.

2. Strategic Corporate Developments and Capital Actions

• Company Name Change: The group completed a formal renaming to Long Investment Corp (LONG投資集團) in late 2025, reflecting a refreshed strategic vision and positioning.
• Share Subscription: In October 2025, the company issued 69,379,496 new shares to an independent third party at HK\$1.25 per share, raising net proceeds of HK\$86.4 million. This major capital injection materially strengthens the balance sheet and provides liquidity for further investments, potentially supporting future growth and mitigating financing risk.
• Rights Issue (2024): The company raised HK\$19.5 million net proceeds through a rights issue, further bolstering capital reserves.

Shareholders should note: These fundraising activities have significantly increased the Group’s distributable reserves (to HK\$132.7 million by end-2025) and net asset value (NAV) per share. The NAV per share rose to HK\$0.36 from HK\$0.23 year-on-year, which could be a price-sensitive indicator for value investors.

3. Investment Portfolio Performance and Notable Shifts

• Portfolio Rebalancing Towards AI and Web3: The Group restructured its investment portfolio, increasing exposure to companies driving innovation in AI and Web3 technology. This includes both listed and unlisted equity, as well as digital assets (notably Ether).
• Key Financials:
  • Realised and unrealised losses on listed investments and digital assets for 2025: HK\$0.3 million and HK\$8.8 million, respectively.
  • Revaluation loss: HK\$4.3 million (for digital assets, primarily Ether).
  • Dividend income from listed equities: HK\$0.3 million; interest income from bonds and deposits: HK\$0.5 million.
  • Significant investments as of 31 Dec 2025: HK\$113.5 million in listed equities and funds, HK\$23.3 million in unlisted equities, HK\$8.8 million in digital assets.
• Major Holdings: Key listed investments include Hang Seng Index derivatives, Solowin Holdings, ChinaAMC Ether ETF, CSOP Hang Seng TECH ETF, Alibaba Group, ChinaAMC Bitcoin ETF, iShares Ethereum Trust ETF, and Global Future and Options Holdings (unlisted, digital assets derivatives platform).
• Digital Assets: The Group’s Ether holdings (carrying value: HK\$8.8 million after revaluation loss) are subject to high volatility. A 30% price move could impact profits by around HK\$2.6 million.

Investor Alert: The Group’s shift to AI, Web3, and digital assets exposes it to higher market volatility, regulatory changes, and valuation risk, especially for Level 3 (unlisted) financial assets where management judgment is significant. The Board has emphasized robust risk management and due diligence to safeguard net asset value.

4. Financial Results and Shareholder Returns

• 2025 Results: The Group posted a net loss attributable to shareholders of HK\$14.7 million, versus a loss of HK\$2.0 million in 2024. The loss was mainly due to fair value and revaluation losses on both listed and digital asset investments, despite higher portfolio turnover and increased market activity.
• No Final Dividend: The Board did not recommend a final dividend for 2025, citing the need to retain capital for future growth and market uncertainty.
• Net Asset Value: Net assets attributable to shareholders rose to HK\$149.4 million (from HK\$77.6 million in 2024) due to new share issuance and capital inflows, offsetting the annual loss.

Shareholder Impact: The absence of a dividend may disappoint income-focused investors, but the NAV increase and strategic repositioning could attract growth-oriented and technology-focused investors, potentially supporting future share price.

5. Risk Management and Corporate Governance

• Regulatory Compliance: The Group remained in material compliance with Hong Kong listing rules and relevant laws. No material contingent liabilities were reported.
• Market Risks: Key risks include price risk, credit risk, liquidity risk, interest rate risk, and significant volatility in digital assets. The Group’s investments are mainly in HKD or USD, limiting forex risk.
• Governance: The Board is committed to transparency, strict risk controls, and robust investment approval processes, especially for digital assets. The Audit Committee (composed entirely of independent non-executive directors) has reviewed and approved the 2025 accounts.
• Digital Asset Controls: All digital assets are currently held in institutional-grade custody (HashKey), with access restricted to authorized personnel.

Shareholder Relevance: Any future regulatory changes, particularly relating to digital assets or technology investments, could materially impact the Group’s strategy, investment returns, and share price.

6. Notable Post-Balance Sheet Events

• EGM and Share Option Scheme: In February 2026, shareholders approved a new general mandate for up to 83.25 million new shares and adopted a 2026 Share Option Scheme, which could result in further equity issuance and dilution, but also provides incentives for management and may align interests with shareholders.
• Market Volatility: Since the year-end, the Group’s portfolio and digital assets have experienced significant price declines:
  • Unrealized losses of HK\$16.8 million on listed securities as of the approval date of the report.
  • Further revaluation loss of HK\$2.4 million on Ether holdings, reflecting increased volatility in digital asset markets.

Shareholder Alert: These post-year-end losses are material and may impact the Group’s interim results and NAV. Investors should monitor further disclosures closely as significant negative swings in digital asset or technology markets could drive share price volatility.

7. Directors’ Interests

• Chairman Mr. Cai Wensheng (via controlled corporation) is the largest shareholder, holding 29.13% of total issued shares, aligning his interests with minority investors.

8. Outlook and Strategic Focus

The Board remains focused on capital appreciation through prudent selection of high-potential investments in AI, Web3, and digital assets, while continuing to strengthen risk controls and corporate governance. The Group is committed to maintaining a sufficient public float and capital flexibility to respond to market opportunities or shocks.

Conclusion: Price-Sensitive Issues for Investors

• The substantial capital raising and increase in NAV per share may support valuation, but the recent and ongoing mark-to-market losses in both listed and digital asset portfolios are price-sensitive and could create further volatility in the shares.
• The Company’s pivot to higher-risk/higher-return areas such as AI, Web3, and digital assets exposes it to greater market swings, valuation uncertainty, and regulatory risks—investors should weigh these factors carefully.
• Shareholders should also be aware of potential dilution from the new general mandate and share option scheme.