OSL GROUP disclosed its interim results for 2025. In 1H25, the company recorded a net loss of HK$400 million compared to a loss of HK$180 million in the same period last year, while achieving operating revenue of HK$200 million, up 57.9% year-over-year.

**Strong Revenue Performance with High Growth in Digital Asset Trading and SaaS Revenue**

1) Record-high revenue in the first half: OSL GROUP achieved total revenue of HK$195 million in 1H25, up 57.9% year-over-year, with core business revenue (excluding fair value gains/losses from digital asset price fluctuations) reaching HK$189 million, up 187% year-over-year.

2) Revenue breakdown: In 1H25, the company's digital asset trading, digital asset fair value changes, SaaS service fees, automated trading service fees, custody services, and other revenue were HK$100 million, -HK$6 million, HK$90 million, HK$3 million, and HK$6 million respectively, representing year-over-year changes of +4.4%, +7.8%, +259.1%, -21.5%, and +16.7%, contributing 51.4%, -3.2%, 46.5%, 1.7%, and 2.8% of total revenue respectively. The high growth in SaaS revenue was mainly due to partial inclusion of OSL PAY revenue in SaaS.

**Dual-Engine Growth Through Organic Expansion and Strategic Acquisitions Maintains High-Speed Growth in Digital Asset Trading Business**

In terms of business scale, OSL GROUP's total trading volume reached HK$68.2 billion in 1H25, up 200.4% year-over-year, primarily driven by increased institutional investor participation and growing demand for digital asset trading. The company's assets under custody reached HK$5.69 billion at period end, up 50% year-over-year.

Regarding product innovation, the company has maintained strong product expansion momentum since 2025. In May, the company launched the fiat gateway solution OSL Pay; in June, the institutional trading solution Omnibus Pro was comprehensively upgraded; in July, the company introduced stablecoin payment service solution OSL BizPay, RWA tokenization service Tokenworks, and stablecoin issuance management platform StableX, continuously improving its global institutional digital asset service product matrix.

In terms of strategic acquisitions, the company is accelerating its global expansion. It has currently obtained virtual asset-related licenses in Hong Kong, Australia, Japan, Italy, and other regions, with license acquisition in Indonesia, the EU, North America, the Middle East, and emerging markets progressing steadily. Overseas markets are already contributing revenue, with the company generating HK$56 million in revenue from Europe in 1H25.

**Payment Business Accelerates Expansion, Expected to Become Second Growth Curve**

The new business OSL Pay has shown strong revenue performance since its launch in April 2025, becoming a major growth engine for the company. In 1H25, OSL Pay generated revenue of HK$55.94 million, accounting for 29% of total revenue (revenue generated only in May-June since launch, with higher contribution expected in the second half).

As a key component of the company's payment infrastructure, OSL Pay provides licensed and compliant digital asset fiat gateways for global clients. In the future, the company will steadily explore the construction of global digital asset payment infrastructure and stablecoin payment business based on its existing core business, creating compliant and efficient global digital asset payment solutions.

**Investment Analysis: Maintain Strong Buy Rating**

The company is expected to achieve operating revenue of HK$7.0 billion, HK$10.6 billion, and HK$14.7 billion in 2025-2027E, representing year-over-year growth of +87%, +51%, and +38% respectively, with net profit attributable to shareholders of HK$190 million, HK$340 million, and HK$930 million, representing year-over-year changes of -61%, +80%, and +174% respectively. The company's dynamic P/S ratios for 2025-2027E are 16.7x, 11.1x, and 8.0x.

**Risk Warnings**: Regulatory policy risks; significant cryptocurrency price volatility; overseas expansion risks.