Zhitong Technology Innovation: Taiwan's first "micro-strategy" company is born, can the Bitcoin + emerging market finance dual engines explode in growth?

Zhitong Kechuang (8932), the first company in Taiwan to adopt a bitcoin investment strategy, let's take an in-depth look at two of its recent major operational transformation strategies. (Summary: Zhitong Science and Technology Innovation (8932) stock price hit a new high, investment in Bitcoin treasury company SORA market continues to ferment) (Background supplement: Zhitong Science and Technology Innovation 8932 Board of Directors Announces Investment in SORA, Becoming the First Public Company in Taiwan to Invest in Bitcoin Strategy) A Board Resolution Shaking Taiwan's Capital Market On August 8, 2025, The resolution of the board of directors of Zhitong Kechuang Co., Ltd. (Taiwan stock code: 8932) cast a shock bomb on Taiwan's capital market: the resolution passed two surprising decisions: first, to become the first listed company in Taiwan to introduce the "Bitcoin reserve strategy", and on the other hand, to acquire the full equity of Letul Investments and obtain the license of India's non-bank financial company (NBFC). This move not only shocked the Taipei stock market, but also made the regional capital circle rethink the feasible path of "digital assets + cross-border finance". These two resolutions make Zhitong the first listed company in Taiwan to publicly adopt the "Bitcoin Reserve Strategy" and extend its operating tentacles to one of the world's most promising and complex emerging markets. This is not due to PUBG in difficult business situations, on the contrary, it is the company's initiative at its peak. Before announcing this major transformation, Zhitong's scientific and technological innovation physique was very strong. Looking at the financial statements for the first half of 25 years, the gross profit margin of 64% and the operating profit margin of 50% prove its strong profitability and market competitiveness. More importantly, the company has abundant cash and cash balances and a healthy balance sheet, providing capital backing for strategic expansion. The strong performance of its share price over the past few years also reflects the high recognition of its existing business by the capital market. Revenue performance Annual growth rate of cumulative revenue in the first half of 2025 exceeds 60% Profitability Gross margin of about 64.70%, operating profit ratio of about 50.25% Earnings per share (EPS) In the second quarter of 2025, it reached 0.96 yuan, a new high Cash position Cash balance at the end of the period and about NT$900 million Market Performance The stock price has risen by more than 30% in the past year and more than 600% in the past three years Current Market Capitalization Approximately NT$34.1 billion *As of August 2025, some data may change due to stock price or earnings updates. Dual Engine Launch: Bitcoin Reserves and Cross-border Finance Zhitong's transformation plan is driven by two seemingly independent but interconnected engines. Targeting Bitcoin, a store of value asset in the digital world, the other borders the financial needs of emerging markets. Join hands with SORA to join the Bitcoin asset layout Zhitong did not directly rush into the cryptocurrency market to buy bitcoin as the market expected, but chose a more roundabout and sophisticated path. The Company announced its subscription for a US$2 million, three-year convertible bond (CB) issued by Nasdaq-listed Top Win International Limited (now AsiaStrategy, trading symbol: SORA). The choice of this financial instrument is inherently strategic: convertible bonds combine the capital-preserving properties of bonds with the appreciation potential of stocks, and if SORA's share price rises, Zhitong can convert it into equity and enjoy capital gains; If the performance is not as expected, it can still be used as a creditor to demand debt and interest, providing a safe space for forward-looking investments. SORA's strategic partner is also the well-known Web3 investment fund Sora Ventures, formerly known as Top Win, which recently changed its name to "AsiaStrategy" with the aim of becoming the Asian version of "Strategy", focusing on driving bitcoin reserve strategies for Asian listed companies. SORA has established partnerships with Metaplanet, a well-known bitcoin listed company, in Japan, and with local financial groups in Korea, and has accumulated valuable practical experience in assisting companies in dealing with bitcoin-related compliance, accounting standards and regulatory responses. According to Zhitong insiders, this cooperation has a dual goal: at the capital level, through SORA's professional operations, indirectly participate in the upward potential of Bitcoin's price; At the strategic level, it is more important to "learn from teachers", with the help of SORA's compliance, accounting standards, and international network resources in Japan, Hong Kong, South Korea and other places, to help Zhitong implement its own bitcoin and digital asset business faster in the future. Obtained India's NBFC financial license While laying out digital assets, Zhitong has set foot on the land of the South Asian continent. The Company announced the acquisition of New Delhi-based Letul Investments Private Limited with a non-banking financial company (NBFC) license issued by the Reserve Bank of India (RBI) at its core. This license is Zhitong's ticket and pass to enter the Indian market. Having an NBFC license means that Zhitong is legally licensed to engage in lending, payment and other digital financial services in India. Compared to applying from scratch, buying a licensed company directly is undoubtedly the fastest and most efficient way to enter this highly regulated market. This move is not only a financial investment, but also the key for Zhitong to establish an overseas entity operation base and obtain key financial assets, kicking off its "cross-border finance" business. Why did Zhitong choose Bitcoin at this moment? Zhitong's board of directors said to the moving area, why choose Bitcoin indirect investment? The main reason is an in-depth study based on global macroeconomic trends and the characteristics of Bitcoin assets. Before entering the investment decision, our board of directors and research team conducted in-depth research on Bitcoin, and historically, Bitcoin has gone through four halving cycles since 2009, and the price trend has been upward in the medium and long term. In the current macro environment, under the trend of global monetary easing and legal currency depreciation, Bitcoin's 'scarcity' and 'decentralization' advantages are becoming more and more prominent. After the passage of the US Bitcoin ETF, more and more institutional investors regarded Bitcoin as a strategic reserve asset, completely opening up the acceptance of the capital market. Zhitong has conducted long-term thorough research on Bitcoin, and for the future trend of Bitcoin, Zhitong's board of directors preliminarily revealed the observation forecast of the study: Short-term (within 1 year): The price will still be highly volatile, but market acceptance and ETF capital inflows will continue to support demand; Medium term (1-3 years): If the macro environment continues the current trend, we believe that bitcoin is still expected to break through the previous high; Long-term (more than 3–5 years): Bitcoin could become "digital gold" with several multiples of its market cap potential. Based on the tone of the research conclusion, Zhitong decided to adopt a "long-term holding + capital leverage strategy" rather than short-term speculation. Zhitong's view is gaining more and more recognition among global institutional investors. Since the U.S. Securities and Exchange Commission (SEC) approved Bitcoin spot ETFs in early 2024, a large amount of traditional capital has poured into the Bitcoin market on an unprecedented scale. Bitcoin ETFs, mainly issued by giants such as BlackRock and Fidelity, continue to record large net inflows, indicating that the positioning of bitcoin by institutions has changed from a speculative asset to a strategic reserve that can be included in long-term asset allocation. Research reports by organizations such as Fidelity and ARK Invest have repeatedly argued that using Bitcoin as part of a portfolio can help boost long-term returns and diversify risk. Wisdom...