MFI

By Michael Kim NASDAQ:MFI READ THE FULL MFI RESEARCH REPORT Ahead of 2H25/full-year 2025 results likely to be announced later next month, we highlight MFI’s (NASDAQ:MFI) key strategic/financial initiatives: 1. Digital assets strategy taking shape: As expected, Mr. Yuan is increasingly leveraging his considerable background/expertise, particularly as it relates to digital assets. Beyond Mr. Yuan’s appointment as Chairman of the Board and Chief Executive Officer, the company recently announced plans to launch a Digital Asset Treasury (DAT) initiative to further diversify the platform, thereby enhancing the company’s growth prospects, revenue profile, earnings power, and shareholder value over time. While the field of companies implementing DAT strategies has become increasingly crowded more recently, key differentiating factors for MFI include the firm’s focus on Bitcoin Cash (BCH, $8.9 billion market cap) – a well-established cryptocurrency emphasizing the enablement of faster, cheaper on-chain transactions/payments – as well as Mr. Yuan’s expertise. For background, Mr. Yuan co-founded HTX, a digital asset ecosystem of blockchain businesses across trading, financial derivatives, research, investments, incubation, and content, as well as Coldlar Wallet, a technology company dedicated to solutions for the safe storage of crypto assets. Moreover, the company announced plans to launch BCH mining capabilities to reduce acquisition costs and hedge against market volatility, as well as a digital assets-denominated life insurance business (subject to regulatory approvals) to further diversify MFI’s cryptocurrency platform and related cash flows. 2. Equity capital raise: In order to enhance financial flexibility, fund MFI’s DAT initiative, and augment liquidity for working capital and general corporate purposes, the company recently completed a Private Investment in Public Equity (PIPE) offering. In December 2025, MFI issued 50 million Class A ordinary shares and pre-funded warrants at $10.00 per share to accredited institutional investors, raising gross proceeds of $500 million. 3. Management transition: In early June 2025, MFI’s Board appointed Mr. Haoyu Wang to serve as the company’s Chief Executive Officer following the resignation of MFI’s prior CEO (and co-founder), Mr. Chi Weng Tam. Fast forward to November, Mr. Wang resigned from the firm due to personal reasons, with the Board subsequently appointing Mr. Dawei Yuan, the sole director, officer, and shareholder of Fire Lucky Investment Co., Ltd., and holder of 100% of company’s Class B ordinary shares (representing 98% of the aggregate voting power of MFI’s outstanding ordinary shares). In addition, Ms. Yang Liu, Chief Financial Officer, will take on the role of Chief Compliance Officer, succeeding Mr. Wang. SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR. DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks SCR provides and Zacks SCR receives payments totaling a maximum fee of up to $50,000 annually for these services provided to or regarding the issuer. Full Disclaimer HERE.

By Michael Kim NASDAQ:MFI READ THE FULL MFI RESEARCH REPORT Pre-market open on 10/3/25, mF International (NASDAQ:MFI) filed a Form 6-K disclosing financial results for the first six months of 2025. In USD, MFI reported a net loss of $1.05 per share (adjusted for the 8 to 1 share consolidation on July 10, 2025) for 1H25 versus our net loss forecast of $0.13 per share. Relative to our model, while total revenues came in right in line with our estimate, the EPS miss was mostly a function of a lower gross margin and higher operating expenses, particularly G&A. Revenues totaled $1.9 million in 1H25, up from $1.6 million in 1Q24 mostly driven by higher initial setup, installation and customization, subscription, hosting, support and maintenance, white label, and quotes/news/package subscription services fees reflecting stepped-up customer engagements. Less favorably, liquidity services revenue declined by 32% from 1H24 levels based on lower underlying transaction volumes. After factoring in cost of revenue of $1.2 million, gross profit totaled $0.7 million for 1H25 representing a gross margin of 36%, down from 42% in 1H24. The year-over-year compression primarily related to higher employee-related costs tied to bonuses and salary increases and amortization of intangible assets given a step up in capitalized product development costs. In aggregate, MFI’s operating expenses totaled $2.5 million in 1H25, up from $1.5 million in 1H24. Much of the step up can be attributed to higher General & Administrative expenses related to stepped up compensation and higher legal and professional fees (previously capitalized prior to the company’s IPO in April 2024). Furthermore, Selling & Marketing expenses increased driven by the engagement of business development consultants. Following our review of 1H25 results, we highlight the following key takeaways: 1. Change-of-control: On June 25, 2025, Gaderway Investments, owned by MFI’s former Chairman, Mr. Tai Wai Lam, and former Chief Executive Officer, Mr. Chi Weng Tam closed on the sale of 100% of the company’s Class B ordinary shares to Fire Lucky Investment Co., Ltd., controlled by Mr. Dawei Yuan, for $7.8 million. With Class B shares entitled to 20 votes per share, Mr. Yuan controls 98% of the aggregate voting power of MFI’s outstanding ordinary shares. As such, we would not be surprised to see Mr. Yuan increasingly leverage his considerable background/expertise, particularly as it relates to digital assets, to shift MFI’s strategic vision/business model, thereby enhancing the company’s growth prospects, revenue profile, and earnings power over time. For background, Mr. Yuan co-founded HTX, a digital asset ecosystem of blockchain businesses across trading, financial derivatives, research, investments, incubation, and content, as well as Coldlar Wallet, a technology company dedicated to solutions for the safe storage of crypto assets. Following suit, the Board appointed Mr. Haoyu Wang to serve as the company’s Chief Executive Officer effective June 2, 2025. The transition follows the resignation of MFI’s prior CEO (and co-founder) Mr. Chi Weng Tam. Prior to joining the company, Mr. Wang held senior management roles at Hangzhou Hengqing Ruixing Private Equity Fund Management Co., Ltd. and Trend Up Investment (HK) Limited. Mr. Wang graduated from Xiamen University, with a Bachelor’s degree in Software Engineering, and received a Master’s degree in Business Economics from Monash University, Australia. Similarly, the Board appointed Ms. Yang Liu to serve as MFI’s Chief Financial Officer following the resignation of Mr. Yun Pan Lau effective June 2, 2025. Furthermore, MFI recently established two wholly-owned subsidiaries: CAT Strategy Limited, an investment holding entity to manage the company’s investment activities, and Master Info Limited to provide administrative support. 2. Pending capital raise?: In September, MFI filed a prospectus as part of a previously-filed “shelf” registration statement to potentially raise up to $700 million via the sale of equity, debt, and/or warrants. While difficult the handicap the odds/timing of a potential equity offering, we suspect prospective proceeds would likely be earmarked to fund incremental strategic growth initiatives. Separately, Fire Lucky recently provided the company with a $1 million unsecured term loan carrying a 5% annual interest rate and maturing on December 25, 2025, likely to cover near-term working capital needs. After updating our model for 1H25 actuals, we are lowering our 2025, 2026, and 2027 split-adjusted EPS estimates from ($0.16)/$0.17/$0.45 to ($1.53)/($0.57)/($0.24) primarily reflecting an extended profitability inflection timeline. Looking ahead, key modeling inputs include reaccelerating revenue growth reflecting an expanding client base, a broader geographic footprint, a more favorable macro backdrop, with rising volatility typically correlated with higher FX/bullion trading volumes, and rising demand for the company’s liquidity services to hedge risk. Stepping back, we look for a higher-quality revenue profile in light of an ongoing mix shift in favor of higher-growth recurring White Label and Hosting, Support & Maintenance fees, as the client base scales, and away from one-time installation and ad hoc customization services. Importantly, client retention remains high given auto-renewing contracts and discounts for prepaid agreements (thereby minimizing billing/credit risk). Turning to the bottom line, beyond meaningful revenue growth, key drivers likely include:1) gross margins seem set to revert back to the historical 50% to 60% range following depressed levels in 2024 in light of employee bonuses; 2) MFI’s online portal drives lower Customer Acquisition Costs (CACs) across markets/regions; 3) even as business activity builds, incremental headcount needs seem limited reflecting the company’s experienced staff and existing infrastructure; 4) we look for Selling & Marketing expenses to step down following strategic initiatives to expand into new markets and enhance MFI’s brand in 2024; 5) given a more mature product set, we expect R&D costs to remain manageable, with a portion of related expenses capitalized; and 6) we forecast interest expense to wind down in the back half of next year, as management pays off the $780,000 of bank borrowings coming due in April to November 2026. Despite our lower earnings outlook, we are raising our price target to $45 implying meaningful upside potential from the stock’s current price. Our revision primarily reflects a lower risk profile in light of MFI’s recent change-of-control. Despite ongoing uncertainty around the strategic/financial implications related to the recent ownership/management transition, we expect Mr. Yuan to increasingly leverage his considerable background/expertise, particularly as it relates to digital assets, to enhance MFI’s business model, growth opportunities, revenue profile, and ultimately the company’s earnings power. Furthermore, Mr. Yuan owns 100% of Class B shares representing 68% of total ordinary shares outstanding (and 98% of voting power), thereby reinforcing strong management/shareholder alignment. SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR. DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks SCR provides and Zacks SCR receives payments totaling a maximum fee of up to $50,000 annually for these services provided to or regarding the issuer. Full Disclaimer HERE.

HONG KONG, May 30, 2025 /PRNewswire/ -- mF International Limited (the "Company" or "mF International") (Nasdaq: MFI), a Hong Kong-based experienced financial trading solution provider, today announced the results of its annual general meeting of shareholders held in Hong Kong on May 30, 2025. At the meeting, the shareholders of the Company approved, ratified, and/or confirmed the following resolutions: The re-appointment of Yu Certified Public Accountant, P.C as the Company's independent registered public accounting firm for the year ending December 31, 2025; The re-appointment of Mr. Tai Wai (Stephen) Lam as a director of the Company, to hold office until the next annual general meeting; The re-appointment of Mr. Chi Weng Tam as a director of the Company, to hold office until the next annual general meeting; The re-appointment of Mr. Sum (Philip) Cheng as a director of the Company, to hold office until the next annual general meeting; The re-appointment of Ms. Lai Sum (Christina) Liu as a director of the Company to hold office until the next annual general meeting; The re-appointment of Mr. Cheuk Ho Chan as a director of the Company, to hold office until the next annual general meeting; That each of the issued and outstanding 4,204,775 Class A ordinary shares of no par value, each with 1 vote per share, and 9,046,892 Class B ordinary shares of no par value, each with 20 votes per share, be consolidated on an 8:1 basis. About mF International Limited mF International Limited is a British Virgin Islands holding company with three operating subsidiaries in Hong Kong. The Company's principal Hong Kong subsidiary, m-FINANCE, is a Hong Kong-based experienced financial trading solution provider principally engaged in the development and provision of financial trading solutions via internet or platform as software as a service, or SaaS. m-FINANCE has approximately 20 years of experience providing real-time mission critical forex, bullion/commodities trading platform solutions, financial value-added services, mobile applications and financial information for brokers and institutional clients in the region. With clients located over mainland China, Hong Kong and Southeast Asia, m-FINANCE provides customers with the mF4 Trading Platform, Trader Pro, Bridge and Plugins, CRM System, ECN System, Liquidity Solutions, Cross-platform "Broker+" Solution, Social Trading Apps and other value-added services. For more information, please visit the Company's website: https://ir.m-finance.com/. 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. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "views," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar words. 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, except as may be required by law. 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 registration statement and other filings with the U.S. Securities and Exchange Commission. For investor and media inquiries, please contact: mF International Limited Investor Relations Department Email: [email protected] ICR, LLC Robin Yang Email: [email protected] Phone: +1 (646) 308-1475 View original content:https://www.prnewswire.com/news-releases/mf-international-limited-announces-results-of-annual-general-meeting-302469348.html SOURCE mF International Limited