Fintech Chain says 75pc of its revenue bump came from blockchain
Link copied to
The ASX has well over 35 stocks which count blockchain as a core, partial, or future operation, but very few are actually making money.
Hong Kong company Fintech Chain — which popped up in March this year when it invented the word “blockchainisation” — offered its investors a 184 per cent profit bump purely on the back of blockchain tech.
“The increase in gross profit resulted from successful implementation of Fintech Chain’s blockchain technology,” the company (ASX:FTC) said in its half year report.
Half year profit swung to 9.6m renminbi (RMB) ($1.9m), with 75 per cent of that coming from the blockchain arm of the business.
In the prior corresponding period, the company made an 11.5m RMB loss.
Fintech Chain, which changed its name from TTG Fintech earlier this year, has two products.
There is the clearing and settlement software dubbed Financial Electronic Authentication (FEA) which can handle digital currency payments as well as fiat currency, and T-Linx which is a point-of-sales (POS) system, which is now integrated with the former allowing merchants to accept payments in, for example, Bitcoin.
Local spokesman Chris Ryan says that bounce came from selling the FEA system into Chinese banks, payments providers such as Alipay and Tenpay, as well as merchants.
He says Chinese banks are keen on digital currency transactions as they view it like a barter system.
However, the company warns that demand for their service fluctuates in line with the value of blockchain tokens.
Currently Bitcoin is down 64 per cent over the last 12 months and the number two cryptocurrency, Ethereum, is down 75 per cent.
Fintech Chain believes widespread future acceptance will underpin demand for its services.
The company made 28.3m RMB in revenue, compared to 7m RMB in the same period last year, and is holding 10.7m RMB in cash.
Fintech Chain shares were flat at 5.1c.