Fintech Chain Reports RMB 23.3M Customer Receipts Amid ASX Delisting Approval
Fintech Chain Limited reported a mixed quarter with strong customer receipts and new IoT SaaS product launch, while finalising its ASX delisting. The company’s cash position tightened amid loan repayments and rising operating costs.
- Q1 cash receipts of RMB 23.3 million with net operating inflows of RMB 2.6 million
- Cash balance declined from RMB 12.8 million to RMB 4.0 million due to loan repayments and costs
- Launch of new AI-driven IoT SaaS hardware product increased manufacturing expenses
- ASX delisting approved by 99.75% of shareholders, citing disproportionate listing costs
- Significant repayments on bank loans and related party payments disclosed
Quarterly Financial Overview
Fintech Chain Limited (ASX, FTC) has released its quarterly activities report for the period ending 30 June 2025, revealing a quarter marked by robust customer receipts but a notable reduction in cash reserves. The company recorded RMB 23.3 million in customer receipts, generating a positive net cash inflow from operations of RMB 2.6 million. However, cash on hand fell sharply from RMB 12.8 million at the start of the quarter to RMB 4.0 million by quarter-end, primarily due to significant loan repayments and increased operating expenses.
Operational Costs and Product Development
Operating costs rose to RMB 20.3 million, driven largely by product manufacturing and operating expenses which surged to RMB 13.1 million. This increase is attributed to the launch of a new SaaS hardware product, an AI Agent ingredient collection and sorting scale, reflecting Fintech Chain’s strategic push into Internet of Things (IoT) applications. Staff costs also increased, partly due to compensation paid to retrenched employees, while administration and corporate costs edged up, including fees related to the company’s ASX delisting process.
ASX Delisting and Strategic Rationale
On 27 June 2025, an overwhelming 99.75% of shareholders approved Fintech Chain’s delisting from the ASX. The company cited the ongoing administrative, compliance, and direct costs of maintaining the ASX listing as disproportionate to the benefits received. This move signals a strategic pivot to focus resources on product innovation and market expansion within China’s rapidly evolving digital payment landscape, where the company’s T-Linx SaaS platform continues to gain traction.
Debt Management and Related Party Transactions
Fintech Chain made substantial repayments on its borrowings during the quarter, including RMB 4.85 million to the Bank of Beijing and full repayment of an RMB 8 million loan from Guangfa Bank. The company also disclosed payments totaling RMB 656,785 to related parties, including directors’ fees and advisory fees linked to the delisting. Notably, loans from related parties, such as RMB 12 million borrowed from the wife of the company’s president, remain part of the company’s financing structure.
Outlook Amid Digital Transformation
Fintech Chain remains optimistic about its future, emphasizing its role in China’s digital transformation through the T-Linx SaaS platform, which integrates payment services across banks, merchants, and consumers. The company aims to deepen its offerings in financial institutions, digital financial scenarios, and supply chain finance, leveraging its innovative IoT hardware and software solutions to build an open digital financial ecosystem. Despite the cash flow pressures and delisting, the company’s strategic focus on technology and market needs positions it well for growth.
Bottom Line?
Fintech Chain’s ASX exit and IoT innovation mark a pivotal phase, but cash flow and debt management will be critical to watch.
Questions in the middle?
- How will the ASX delisting impact Fintech Chain’s access to capital and investor liquidity?
- What is the market reception and adoption rate of the new AI-driven IoT SaaS hardware product?
- How sustainable are the company’s operating cash flows given rising costs and loan repayments?
