How Is Fintech Chain Growing Revenue 24% While Staying in the Red?
Fintech Chain Limited reported a 24% revenue increase to RMB55.9 million for FY2025 driven by new SaaS products, yet it remains in the red with a net loss of RMB4.8 million. The company has also applied for delisting from the ASX.
- 24% revenue growth to RMB55.9 million driven by new SaaS offerings
- Net loss narrowed slightly to RMB4.8 million despite rising expenses
- Increased labor and R&D costs impacted profitability
- Extended receivables and borrowings reflect economic pressures
- Application submitted for ASX delisting amid ongoing litigation
Revenue Growth Driven by SaaS Innovation
Fintech Chain Limited has posted a notable 24% increase in revenue for the fiscal year ended March 31, 2025, reaching RMB55.9 million. This growth was largely fueled by the rollout of new products within its T-Linx interconnected Software as a Service (SaaS) platform, including cloud services and marketing-related SaaS offerings. The company’s focus on digital transformation solutions for banks and merchants in China has helped expand its footprint despite a challenging economic environment.
Profitability Pressures and Expense Growth
Despite the revenue gains, Fintech Chain remains loss-making, reporting a net loss of RMB4.8 million, a slight improvement from the prior year’s RMB5.1 million loss. The company faced increased general and administrative expenses, rising from RMB13.3 million to RMB17.4 million, driven primarily by higher labor costs. Research and development expenses also edged up to RMB5.3 million as the company invested in upgrading its T-Linx system to better serve local living scenes and new payment scenarios.
Economic Headwinds and Financial Position
The broader economic slowdown in China has introduced challenges such as extended trade receivables and increased borrowings, with receivables rising to RMB20.8 million and borrowings to RMB32.5 million. These factors contributed to a net liabilities position of RMB16.8 million, up from RMB12.0 million the previous year. The company is actively adjusting its business strategies to navigate pricing pressures in the IoT hardware market and to capitalize on steady demand for digital payment solutions.
Strategic Initiatives and Market Positioning
Fintech Chain continues to innovate with products like the "Community Charging Pile Scene Payment Solution" and "Enterprise and Campus Canteen Scene Payment Solution," leveraging AI facial recognition and IoT applications. These initiatives aim to create closed-loop payment ecosystems in partnership with local banks, targeting regional commercial districts to build competitive market niches.
Corporate Developments and Legal Challenges
In a significant corporate move, Fintech Chain has applied for delisting from the Australian Securities Exchange, signaling a strategic shift in its capital market engagement. Meanwhile, the company is still involved in litigation related to a prior misappropriation case involving a former cashier, with limited compensation recovered so far and ongoing legal proceedings in Chinese courts. The financial statements remain preliminary and unaudited, adding a layer of uncertainty to the reported results.
Bottom Line?
Fintech Chain’s revenue momentum faces tests from economic pressures and legal uncertainties as it prepares to exit the ASX.
Questions in the middle?
- How will the ASX delisting impact Fintech Chain’s access to capital and investor confidence?
- What is the timeline and potential outcome of the ongoing litigation related to fund misappropriation?
- Can Fintech Chain sustain revenue growth while managing rising costs and tightening receivables?
