AGBA ‘strategically positioned’ to capitalize on Hong Kong’s return to growth

The company said, “The year 2023 posed significant macro-economic challenges for Hong Kong and China, particularly in relation to the Chinese real estate and financial markets. As an open economy heavily reliant on tourism, exports, and financial markets, Hong Kong faced a difficult year. However, there are now emerging signs of a recovery in the macro environment for both China and Hong Kong. The annual Chinese New Year celebrations in Hong Kong this year witnessed a record number of visitors from Mainland China, indicating an upswing in spending, including on financial products and services. Alongside these cyclical tailwinds, Hong Kong is experiencing structural growth driven by demographic factors and the increasing demand for its products and services from the Greater Bay Area. AGBA Group Holding is strategically positioned to capitalize on Hong Kong’s return to growth. The challenges faced in 2023 prompted successful changes to AGBA’s business model, resulting in increased focus and efficiency. The implementation of significant cost-cutting measures is expected to reduce normalized operating expenses to a level for strong growth and profitability. With its enhanced and streamlined business model, AGBA is well-prepared for growth in 2024. Growth will be further supported by the recent securing of substantial funds through a successful equity private placement in February 2024, in addition to completing and planning asset sales of non-core activities. These strategic initiatives have positioned AGBA as a formidable player in the market and facilitated the establishment of exciting and successful new partnerships. These collaborations are anticipated to further enhance AGBA’s growth potential and consolidate its position as an industry leader. Various factors contributing to a substantial decline in AGBA’s share price since its listing on Nasdaq in 2022. There now exists a notable disconnect between the current share price and the underlying business value. Given the improved macro environment and the growth prospects stemming from AGBA’s refined business model, closing this valuation gap presents significant upside potential for existing and new shareholders.”