William Gregozeski

William Gregozeski inquired about MoneyHero's capital allocation strategy for future positive cash flow, specifically whether it would be directed towards M&A or primarily focus on existing business growth and profitability. He also asked for an update on the reception of the newly launched Credit Hero Club and the outlook for the loan segment in Q4 and 2026, and finally, sought an outlook on the revenue mix and margin profiles of different segments for 2026.

Answer

Rohith Murthy, CEO, outlined a sequenced capital allocation philosophy: first, organic investment in the core engine, scaling Project Odyssey, and expanding higher-margin verticals (insurance, wealth, Credit Hero Club, real-time car insurance journeys) for highest return on invested capital. Second, disciplined M&A focused on clear revenue/cost synergies, stronger capabilities, strategic scale, and fit with their AI-enabled operating model. Regarding the Credit Hero Club, Murthy described it as a marquee membership program in Hong Kong, launched with TransUnion, providing free credit profiles and personalized offers, which will amplify seasonality like tax loans and provide contextual, real-time understanding of consumer credit needs during off-seasons. For the segment outlook, he detailed credit cards as core with low-to-medium margins, personal loans as cyclical but improving with higher approvals and better economics (driven by Credit Hero Club), and insurance (motor, home, general lines) as a core EBITDA anchor with higher margins and lower seasonality. Wealth (brokerage, savings, investments, digital assets) offers moderate-to-high margins and long-term upside. Murthy reiterated the strategy to shift towards recurring, higher-margin verticals, aiming to move them from 23% to the "next band" of contribution, while improving economics in cyclical categories, expecting strong operating leverage and significant EBITDA improvement in 2026 and beyond.

William R. Gregozeski inquired about MoneyHero's AI initiatives, seeking details on their application for cost savings and revenue generation, as well as the depth of AI integration. He also asked about key growth drivers for 2026, specific plans and milestones for the insurance business, and an update on the expansion of the wealth and crypto segments.

Answer

CEO Rohith Murthy detailed AI applications, including automating 70-80% of customer inquiries for lower service costs and higher first contact resolution, and an AI competitive intelligence platform reducing manual research by 90%. He highlighted near-term revenue drivers like an AI-assisted WhatsApp quote agent for auto insurance and AI media creation for marketing. For wealth and crypto, Mr. Murthy emphasized a regulatory-first, partner-led approach with no balance sheet exposure, citing the OSL partnership in Hong Kong and collaborations with licensed brokers. Regarding insurance, he outlined a strategy to expand supply depth with real-time integrations (e.g., 3-click travel insurance achieving 40%+ completion), streamline journeys using AI, and tighten unit economics, targeting 28-30% of group revenue from insurance and wealth in H2. For 2026, Mr. Murthy reiterated growth levers including continued scaling of insurance and wealth, conversion rate improvements, AI-driven efficiency, strengthened provider partnerships, and new initiatives like the Credit Hero Club and expansion in the Philippines.

William R. Gregozeski inquired about the specific AI initiatives MoneyHero Group is implementing, focusing on their depth, whether they drive cost savings or revenue generation, and also asked about key growth drivers for 2026, plans for the insurance business, and an update on the wealth and crypto expansion.

Answer

Interim CFO & Group Finance Director, MoneyHero, Danny Leung, detailed AI applications in customer support (automating 70-80% inquiries, 24/7 coverage), competitive intelligence (90% reduction in research time), and piloting a WhatsApp AI quote agent for auto insurance, emphasizing improved unit economics, operating leverage, and conversion. CEO & Director, MoneyHero, Rohith Murthy, then addressed wealth and crypto as a regulatory-first, partner-led adjacency, citing the OSL partnership and existing broker relationships. For insurance, he outlined a strategy to expand supply depth, streamline journeys with AI (e.g., 3-click travel insurance), and tighten unit economics, targeting 28-30% of group revenue from insurance and wealth in H2. Regarding 2026 growth, Mr. Murthy highlighted continued scaling of insurance and wealth, conversion rate improvements, AI-driven efficiency, provider partnerships, new initiatives like Credit Hero Club, and selective digital asset expansion.

William Gregozeski inquired about MoneyHero's specific AI initiatives, detailing their impact on cost savings and revenue generation, and the depth of AI integration. He also asked about key growth drivers for 2026, plans and milestones for the insurance business, and an update on the wealth and crypto expansion strategy.

Answer

Rohith Murthy, CEO of MoneyHero, explained that AI is embedded in customer acquisition, conversion, and service, leading to lower service costs, better conversion, and faster shipping with flat headcount. He highlighted AI customer support automating 70-80% of inquiries, an AI competitive intelligence platform cutting research time by 90%, and near-term revenue drivers like a WhatsApp AI quote agent for auto insurance and AI media creation for marketing. For 2026 growth, Mr. Murthy emphasized scaling insurance and wealth to 30%+ of revenue, continuous conversion rate improvements, AI-driven efficiency, strong provider partnerships, and new initiatives like the Credit Hero Club and selective digital asset partnerships. He detailed the insurance strategy, focusing on expanding supply depth with real-time integrations (e.g., 3-click travel insurance, auto insurance), streamlining journeys with AI, and tightening unit economics to achieve 28-30% insurance and wealth mix in H2. For wealth and crypto, he reiterated a capital-light, partner-led, regulatory-first approach, citing the OSL partnership in Hong Kong for compliant onboarding and investor education without balance sheet exposure.

Asked about the strategic implications of the new OSL partnership for entering the digital asset space, the sustainability of recent gross margin improvements as revenue scales, and the expected growth of operating costs in relation to the company's revenue targets and AI integration.

Answer

The OSL partnership is a strategic exploration of the high-margin digital asset space, with no definitive investment decisions made yet. The significant improvement in cost of revenue and gross margin is considered sustainable, driven by a strategic shift to higher-margin products and optimized rewards spending, not just short-term cuts. Operating costs are expected to grow at a much slower rate than revenue, creating operating leverage, due to a reset cost structure, scalable technology, and AI-driven efficiencies.

The analyst inquired about the impact of the recent reorganization on cost structure and margins, the outlook for advertising and marketing expenses, plans for AI and automation, and the strategy to leverage the NASDAQ listing and improve the stock price.

Answer

The reorganization has created a leaner, more efficient organization with significant cost savings (45% YoY reduction in employee expenses) and improved operating leverage, as seen in the reduced adjusted EBITDA loss. Marketing spend is now more disciplined and focused on ROI after a period of deliberate investment, with a 23% YoY reduction in Q4. The company is pursuing an "AI-first" strategy to enhance operational efficiency and scale the business without increasing headcount. Management believes executing its core efficiency strategy to drive profitable growth will ultimately lead the market to recognize the company's value and improve the stock price.

William Gregozeski of Greenridge Global LLC inquired about the expected cost per Bitcoin by year-end, considering recent equipment deployments, the Georgia acquisition, and optimizations, and asked if Cango plans share repurchases given the stock's undervaluation, or if cash will be prioritized for operational expansion.

Answer

CFO Yongyi Zhang stated Q2 cash cost was $83,000 and all-in cost $98,000 per BTC, expecting improved cost profile from 50 exahash deployment but also industry-wide headwinds in Q3. He affirmed that while the stock is undervalued, the primary focus is high-return operational expansion and business transformation, including AIGC, but the ongoing share repurchase program will be considered as part of a balanced approach to shareholder value.

William Gregozeski asked for an expected cost per BTC as Cango exits the year, considering new mining equipment, the Georgia acquisition, and ongoing optimizations. He also questioned whether the company plans share repurchases given the undervalued stock, or if it will prioritize cash for operational expansion.

Answer

CFO Michael Zhang stated that while Q2 cash cost per BTC was approximately $83,000 and all-in cost was $98,000, the full deployment of 50 EH in July is expected to improve the cost profile per coin. However, he anticipates industry-wide headwinds from increasing global network hash rates will also impact Q3 costs. Regarding stock value, Michael Zhang affirmed the belief that the stock is undervalued and the primary focus is on deploying cash for high-return operational expansion and business transformation, including AIDC, while also considering the ongoing share repurchase program.

William Gregozeski of Greenridge Global LLC asked for a breakdown of the $1.8 million in inventory, the timing for announcing new school wins, and specific details on current and future manufacturing capacity for bottles and cartons.

Answer

CFO Lisa Roger clarified that the inventory is now primarily composed of bottled products, built up during the summer to prepare for the school year. CEO Riccardo Delle Coste added that new school wins will be updated as schools return and final bids are awarded. Regarding capacity, Delle Coste projected that bottle manufacturing capacity will reach 20-25 million units annually with the new partner in 2026. Roger noted that carton capacity is not a constraint and is roughly three times the current sales volume.

The analyst asked about potential margin impacts from high-tariff raw materials, the expectation for sustained operating expenses after the Peru and Panama expansions, and the company's future dividend policy.

Answer

There will be no significant margin hit from tariffs, although a small amount of product was affected. There will be sustained operating cost increases from additional accounting staff and software upgrades, as well as carrying employees for the transition. Regarding the dividend, the board prefers the current flexibility but may consider a small, regular dividend supplemented by special dividends in the future, though no decision has been made.

William Gregozeski of Greenridge Global inquired about the potential margin impact from high-tariff raw materials, whether to expect sustained operating expenses from the Peru and Panama expansions, and the company's future dividend policy.

Answer

CEO Daniel O’Brien confirmed there would be no significant margin hit from tariffs, though a minor impact was unavoidable. He explained that sustained operating costs will increase due to the need for more accounting staff and software to support the expanded business. Regarding dividends, O'Brien stated the Board values flexibility but might consider a small, regular dividend augmented by special dividends in the future.

Inquired about the rationale behind the sale of the Florida, LLC, the use of proceeds from the sale, the specific terms of recent option grants, the sustainability of current gross margins, and the outlook for the agriculture business.

Answer

The executive explained the Florida, LLC sale was strategic, retaining a key supply agreement while adding a partner focused on sales growth. The cash will be held for now. He confirmed the strict vesting terms for options are tied to $100 million in drug revenue. Gross margins were high due to a favorable mix and are at the top end of the expected range, while the Ag business is stable with a cautiously positive outlook.

William Gregozeski of Greenridge Global asked about the rationale behind selling the Florida, LLC, the intended use for the cash proceeds, the specific vesting terms for the new option grants, the sustainability of the quarter's high gross margins, and the outlook for the agricultural business amid low corn prices.

Answer

CEO Dan O’Brien stated the Florida, LLC was sold for a profit to a new owner better equipped to grow its sales, while FSI retained the exclusive supply agreement. He noted the cash will be invested conservatively as it's insufficient to fully fund the drug business entry. O'Brien confirmed the options vest upon reaching $100 million in drug-specific revenue. He described the high gross margin as a partial anomaly due to favorable product mix but noted new, higher-margin food products could support this level. He characterized the ag business as flat but with a cautiously positive outlook for the 2025 early buy season.

William Gregozeski of Janney Montgomery Scott inquired about CNFinance's outlook on future borrowing costs, loan demand trends, and the targeted split between its trust and commercial models for 2024. He also asked whether recent compliance and borrower evaluation efforts were linked to the company's technology platform upgrades and questioned the company's plans for its recently expired share repurchase program.

Answer

Director and VP Jun Qian stated that the goal for 2024 is to continue lowering borrower financing costs from the 16.1% average seen in 2023. He noted that while loan demand has been soft, the company targets RMB 20 billion in total loan originations for 2024, maintaining a 30% mix for the commercial bank model. Mr. Qian clarified that compliance initiatives are separate from technology investments, which are focused on refining collateral evaluation and borrower rating systems. CFO Jing Li confirmed that the company intends to ask the Board of Directors to approve an extension of the share repurchase plan for another year.

William Gregozeski of Greenridge Global inquired about the sustainability of recent borrowing costs, the current demand for loans, the split between trust and commercial models, the connection between compliance initiatives and technology platform upgrades, and the company's plans for its recently expired share repurchase program.

Answer

Director and Vice President Jun Qian, speaking through translator Matthew Lou, stated that the company aims to continue lowering financing costs for borrowers from the 16.1% average seen in 2023. He noted that while loan demand was soft, the 2024 target for loan origination is RMB 20 billion, maintaining a 70/30 split between the trust and commercial bank models. Mr. Qian also clarified that compliance building and technology investments are separate initiatives, with tech upgrades focused on collateral evaluation and borrower rating models. CFO Jing Li added that the company intends to ask the Board of Directors to extend the share repurchase plan for another year.

William Gregozeski of Greenridge Global inquired about the sustainability of current borrowing costs, the demand for loans including the size and mix between trust and commercial models, the relationship between compliance initiatives and technology platform upgrades, and the company's plans for its recently expired share repurchase program.

Answer

Director and Vice President Jun Qian, speaking through translator Matthew Lou, stated that the goal for 2024 is to continue lowering borrower financing costs. He noted that while loan demand was soft, the company targets RMB 20 billion in total loan originations for 2024, maintaining a 70/30 split between the trust and commercial bank models. Mr. Qian also clarified that compliance building and technology investments are separate initiatives, with tech efforts focused on collateral evaluation and borrower rating systems. CFO Jing Li added that the company intends to ask the Board of Directors to approve a one-year extension of the share repurchase plan.

William Gregozeski of Greenridge Global inquired about the sustainability of current borrowing costs, the demand and mix for loans between trust and commercial models, the connection between compliance efforts and technology upgrades, and the company's plans for its recently expired share repurchase program.

Answer

Director and VP Jun Qian, speaking through translator Matthew Lou, stated that the goal for 2024 is to continue lowering financing costs for borrowers. He also noted that while loan demand was weaker than expected in 2023, the company targets RMB 20 billion in total loan originations for 2024, maintaining a 70/30 split between the trust and commercial bank models. Mr. Qian clarified that compliance building and technology investments are separate initiatives, with tech investments focused on collateral evaluation and borrower rating models. CFO Jing Li added that the company intends to ask the Board of Directors to extend the share repurchase plan for another year.

William Gregozeski of Greenridge Global inquired about the sustainability of recent borrowing costs, the current demand for loans, the target mix between trust and commercial models, the connection between compliance efforts and technology upgrades, and plans for the recently expired share repurchase program.

Answer

Director and Vice President Jun Qian, via translator Matthew Lou, explained that CNFinance aims to continue lowering borrower financing costs in 2024. He noted that while loan demand was weaker than expected, the company targets RMB 20 billion in total loan originations for 2024, maintaining a 70/30 split between the trust and commercial bank models. Qian also clarified that compliance initiatives are separate from technology investments, which are focused on improving collateral evaluation and borrower rating models. CFO Jing Li added that management intends to request a one-year extension of the share repurchase plan from the Board of Directors.

William Gregozeski of Janney Montgomery Scott inquired about the drivers behind the significant growth in trust lending volume to RMB 3.9 billion and its future outlook. He also asked for the company's loan origination forecast for 2024, including the expected mix between trust and commercial models, and sought details on the current financial health of the company's sales partners.

Answer

Jun Qian, Director and Vice President, explained that the growth in trust lending was driven by a strategic shift to Tier 1 cities and a focus on large-ticket products with high-value collateral. For 2024, he provided a conservative forecast of RMB 20 billion in total loan originations, roughly flat year-over-year, with 30-35% from the commercial bank model. Regarding sales partners, Mr. Qian noted their financial health has improved due to loosened installment payment terms and the company's assistance in disposing of non-performing loans to recover cash.

William Gregozeski asked for an update on SME loan demand, the outlook for origination growth for the rest of the year, and trends related to sales partner loan repurchases.

Answer

Jun Qian, Director and Vice President, noted that while broader market loan demand in China has decreased, CNFinance achieved significant year-over-year growth in loan originations and transactions in H1 2023. This was attributed to a low base from the pandemic-affected prior year and the company's relatively small market share. Mr. Qian confirmed the company is maintaining its full-year origination target of RMB 20 billion. He also interpreted the decrease in interest on loans to sales partners as a positive indicator of improving asset quality and fewer defaults.

The analyst inquired about current SME loan demand, the outlook for origination growth for the rest of the year, and the reasons behind the decrease in interest on loans to sales partners.

Answer

The company reported that while overall SME loan demand in China is decreasing, CNFinance saw significant year-over-year growth in loan origination due to a low 2022 base and its small market share. They are maintaining their full-year origination target of RMB20 billion. The decrease in interest on loans to sales partners is considered a positive indicator of improving asset quality and fewer defaults, meaning fewer partners have to repurchase defaulted loans.

William Gregozeski of Greenridge Global inquired about CLPS's target revenue mix by geography for fiscal years 2021 and 2022, and asked for specific plans on using the recently raised capital to fuel growth.

Answer

CFO Rui Yang stated that while Mainland China remains the primary market, revenue from outside China is expected to grow to approximately 12% in fiscal 2021 and 13% in fiscal 2022. Executive VP Wilson Wong detailed that the newly raised capital will fund global expansion, particularly in Southeast Asia via its Singapore headquarters and in the U.S. market, as well as for IT talent training. CFO Rui Yang added that the company closed a $16 million direct offering in March 2021.