TIDMKASH
21 December 2022
KASEI HOLDINGS PLC
("Kasei" or the "Company")
Posting of Annual Report and Notice of AGM
Kasei Holdings PLC (AQSE: KASH) is pleased to announce its Annual Report and
financial statements for the year ended 31 July 2022 (the "Annual Report"),
Notice of Annual General Meeting (the "AGM"), and Form of Proxy for the AGM
have each been post to shareholders today and are available on the Company's
website https://kaseiholdings.com/ .
The Company's AGM will be held at 72 Charlotte Street, London W1T 4QQ on 24
January 2023 at 4.00pm.
For further information please contact:
Jai Patel info@kaseiholdings.com
Chief Investment Officer
First Sentinel
Corporate Adviser +44 7876 888 011
Brian Stockbridge brian@first-sentinel.com
About Kasei:
The Company is a technology specialist investor that focuses on
cryptocurrencies and blockchain technologies.
The Company's goal is to provide investors with broad based exposure to the
fast-growing ecosystem of digital assets, managed using traditional financial
portfolio construction techniques. The Company also intends to invest in
venture capital and private equity investments in the blockchain ecosystem.
The Company will leverage the Board's expertise, experience, and networks in
the cryptocurrency sector and management of digital assets and decentralised
finance, to drive value creation and to establish the business. The Board has a
proven capability in portfolio management to achieve significant growth.
The Company's website is located at https://kaseiholdings.com
Group Strategic Report
For the Period Ended 31 July 2022
Introduction
Kasei Holdings PLC (AQSE: KASH) is a digital asset and Web 3.0 investment
company established in July 2021 to provide investors with broad based exposure
to the digital asset ecosystem.
Business review
The company began trading on the Aquis Stock Exchange on 3rd November 2021 with
a goal of deploying capital into the digital ecosystem in accordance with its
investment strategy. The company began deployment in a buoyant market using
drawdowns towards the end of 2021 to average down as macro uncertainties began
to surface.
2022 saw a significant shift in the macro environment that has had a drastic
effect on all asset prices. Persistent inflation due to COVID19 was exacerbated
by the war in Ukraine and central banks across the globe began embarking on a
significant tightening of monetary policy after years of accommodation. As a
result, equity and bond markets have suffered dramatic falls and the nascent
digital asset ecosystem has similarly seen significant drawdowns.
The steep declines in asset prices have brought into sharp focus many of the
unsustainable business models in the space. The collapse of the Terra Luna
ecosystem triggered a sharp deleveraging that led to the insolvency of large
hedge funds such as 3 Arrows Capital in addition to the halting of withdrawals
from centralised yield providers such as Celsius.
Kasei Holdings did establish a position in Terra (LUNA) as the ecosystem began
to see significant growth. However, as the sustainability of some of the
ecosystem's protocols began to diminish, the company began exiting its
positions and had liquidated approximately 70% of its exposure prior to the
collapse of the ecosystem.
The company has also avoided exposure to any providers purporting to provide
yields which in retrospect were merely credit exposures to questionable
business models. The company does however stake its assets where participating
in network security is rewarded.
Finally, the recent collapse of FTX has shone an even harsher light on the
entire sector and has triggered a liquidation cascade across the board. The
company is pleased to report that it has not suffered any adverse impact due to
any of the insolvencies and does not have any direct credit exposures. Our
internal operational and risk management practices have stood up well in the
face of a significant test and we hope to weather these turbulent times
accordingly.
The directors are satisfied with the performance to date given the overall
decline in the market and we have continued to maintain outperformance versus
the largest two assets Bitcoin and Ethereum. The drawdown has also enabled us
to add exposure to high conviction ecosystems. Given the external environment
the company has reduced overheads where possible to ensure the company has
sufficient working capital to weather the crypto winter. Approximately £280,000
of initial fixed costs due to the formation and listing of the company are
non-recurring leaving the company enough scope to take advantage of new
opportunities as they arise.
Our portfolio as of 31st October was as follows:
Asset Quantity Price Valuation (USD)
BTC 28.21 20,375.00 574,823.58
ETH 145.78 1,565.00 228,151.18
BETH 105.98 1,535.00 162,679.30
QNT 2,500.00 165.00 412,500.00
SOL 494.82 32.85 16,254.67
LINK 5,000.00 8.00 40,000.00
DAG 2,150,000.00 0.07 145,125.00
AR 1,750.00 10.15 17,762.50
AVAX 1,000.00 19.15 19,150.00
ZONE 742,187.50 0.00 2,968.75
HBAR 250,000.00 0.01 1,500.00
HNT 2,502.18 4.00 10,008.72
LTX 74,975.00 0.42 31,114.63
ALGO 4,000.00 0.35 1,400.00
ADS 125,000.00 0.13 16,062.50
Principal risks and uncertainties
The digital asset industry is in an early stage of growth and adoption and as
such carries significant risk. Asset prices are highly volatile and many of the
protocols may ultimately fail. As such it is imperative for a diversified
approach to be adopted as currently the winners are unclear. In addition, a
stringent risk management framework is essential. We believe that the board's
expertise in managing volatile asset classes stands us in good stead to
navigate the volatile landscape. The company continues to believe that
significant growth and adoption lies ahead and intends to navigate the many
pitfalls diligently.
Security of holding digital assets also remains challenging. However, more and
more institutional grade custody solutions are appearing and the company
continues to monitor the landscape in order to ensure all measures are taken to
maximise security and custody of its assets using trusted partners and
regulated entities.
Bear markets and crypto winters are the perfect time for protocols to
concentrate on building and for investors to analyse which projects have been
battle tested and yet remain. As such we see the current malaise as an
opportunity to concentrate resources and focus on the opportunities that will
arise.
Financial key performance indicators
The company's business objective is to provide investors with broad based
access to the digital asset ecosystem. Holding assets in a diversified manner
and using yield generating strategies and stringent risk management has led to
outperformance vs a core strategy of holding BTC or ETH. The price performance
of Quant network (QNT), the company's largest altcoin position has been a key
highlight and has enhanced the company's commitment to focus on utility within
the asset class.
Directors' statement of compliance with duty to promote the success of the
Group
This statement is intended by the Board of Directors to set out how they have
approached and met their responsibilities under s172(1)(a) to (f) of the
Companies Act 2006 in the year ending 31 July 2022.
Stakeholders of the Company include employees, shareholders, suppliers,
creditors of the business and the community in which it operates.
The Directors, both collectively and individually, consider that they have
acted in good faith to promote the success of the Company for the benefit of
its stakeholders as a whole (having regard to the matters set out in s172 of
the Act) in the decisions taken during the period. In particular:
To ensure that the Board take account of the likely consequences of their
decisions in the long-term, they receive regular and timely information on all
the key areas of the business including financial performance, operational
matters, health and safety, environmental reports, risks and opportunities. The
Company's performance and progress is also reviewed regularly at Board
meetings.
The Directors' intentions are to behave responsibly towards all stakeholders
and treat them fairly and equally, so that they all benefit from the long-term
success of the Company.
The Directors have overall responsibility for determining the Company's
purpose, values and strategy and for ensuring high standards of governance. The
primary aim of the Directors is to promote the long-term sustainable success of
the Company, generating value for stakeholders and contributing to the wider
society. In the future, the Board will continue to review and challenge how the
Company can improve its engagement with its stakeholders.
This report was approved by the board and signed on its behalf.
Brendan Kearns
Director
19th December 2022
Directors' Report
For the Period Ended 31 July 2022
The directors present their report and the financial statements for the period
ended 31 July 2022.
Direcors' responsibilities statement
The directors are responsible for preparing the Group Strategic Report, the
Directors' Report and the consolidated financial statements in accordance with
applicable law and regulations.
Company law requires the directors to prepare financial statements for each
financial year. Under that law the directors have elected to prepare the
financial statements in accordance with applicable law and United Kingdom
Accounting Standards (United Kingdom Generally Accepted Accounting Practice),
including Financial Reporting Standard 102 'The Financial Reporting Standard
applicable in the UK and Republic of Ireland'. Under company law the directors
must not approve the financial statements unless they are satisfied that they
give a true and fair view of the state of affairs of the Company and the Group
and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
* select suitable accounting policies for the Group's financial statements
and then apply them consistently;
* make judgments and accounting estimates that are reasonable and prudent;
* state whether applicable UK Accounting Standards have been followed,
subject to any material departures disclosed and explained in the financial
statements;
* prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Company's transactions and disclose with
reasonable accuracy at any time the financial position of the Company and the
Group and to enable them to ensure that the financial statements comply with
the Companies Act 2006. They are also responsible for safeguarding the assets
of the Company and the Group and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
Principal activity
The principal activity of the Company in the year under review was that of an
investment company providing investors with broad based exposure to the digital
asset ecosystem.
Results and dividends
The loss for the period, after taxation, amounted to £513,273.
The Directors do not propose a dividend in respect of the year ended 31st July
2022..
Directors
The directors who served during the period were: B Coyne (appointed 9 July
2021)
S Davis (appointed 5 August 2021)
B Kearns (appointed 28 July 2021)
J Patel (appointed 9 July 2021)
J Thomason (appointed 4 August 2021)
Future developments
The company intends to continue to leverage the Board's expertise to identify
compelling investments within the digital asset ecosystem.
Disclosure of information to auditors
Each of the persons who are directors at the time when this Directors' Report
is approved has confirmed that:
* so far as the director is aware, there is no relevant audit information of
which the Company and the Group's auditors are unaware, and
* the director has taken all the steps that ought to have been taken as a
director in order to be aware of any relevant audit information and to
establish that the Company and the Group's auditors are aware of that
information.
Auditors
Under section 487(2) of the Companies Act 2006, Brindley Goldstein LTD will be
deemed to have been reappointed as auditors 28 days after these financial
statements were sent to members or 28 days after the latest date prescribed for
filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
Brendan Kearns
Director
19th December 2022
Independent Auditors' Report to the Members of KASEI HOLDINGS PLC
Opinion
We have audited the financial statements of KASEI HOLDINGS PLC (the 'parent
Company') and its subsidiaries (the 'Group') for the period ended 31 July 2022,
which comprise the Group Statement of Comprehensive Income, the Group and
Company Balance Sheets, the Group Statement of Cash Flows, the Group and
Company Statement of Changes in Equity and the related notes, including a
summary of significant accounting policies. The financial reporting framework
that has been applied in their preparation is applicable law and United Kingdom
Accounting Standards, including Financial Reporting Standard 102 'The Financial
Reporting Standard applicable in the UK and Republic of Ireland' (United
Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
* give a true and fair view of the state of the Group's and of the parent
Company's affairs as at 31 July 2022 and of the Group's loss for the period
then ended;
* have been properly prepared in accordance with United Kingdom Generally
Accepted Accounting Practice; and
* have been prepared in accordance with the requirements of the Companies Act
2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing
(UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards
are further described in the Auditors' responsibilities for the audit of the
financial statements section of our report. We are independent of the Group in
accordance with the ethical requirements that are relevant to our audit of the
financial statements in the United Kingdom, including the Financial Reporting
Council's Ethical Standard and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use
of the going concern basis of accounting in the preparation of the financial
statements is appropriate.
Based on the work we have performed, we have not identified any material
uncertainties relating to events or conditions that, individually or
collectively, may cast significant doubt on the Group's or the parent Company's
ability to continue as a going concern for a period of at least twelve months
from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to
going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the Annual Report
other than the financial statements and our Auditors' Report thereon. The
directors are responsible for the other information contained within the Annual
Report. Our opinion on the financial statements does not cover the other
information and, except to the extent otherwise explicitly stated in our
report, we do not express any form of assurance conclusion thereon. Our
responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the course of the audit, or otherwise
appears to be materially misstated. If we identify such material
inconsistencies or apparent material misstatements, we are required to
determine whether this gives rise to a material misstatement in the financial
statements themselves. If, based on the work we have performed, we conclude
that there is a material misstatement of this other information, we are
required to report that fact.
We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
* the information given in the Group Strategic Report and the Directors'
Report for the financial period for which the financial statements are
prepared is consistent with the financial statements; and
* the Group Strategic Report and the Directors' Report have been prepared in
accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the parent
Company and its environment obtained in the course of the audit, we have not
identified material misstatements in the Group Strategic Report or the
Directors' Report.
We have nothing to report in respect of the following matters in relation to
which the Companies Act 2006 requires us to report to you if, in our opinion:
* adequate accounting records have not been kept by the parent Company, or
returns adequate for our audit have not been received from branches not
visited by us; or
* the parent Company financial statements are not in agreement with the
accounting records and returns; or
* certain disclosures of directors' remuneration specified by law are not
made; or
* we have not received all the information and explanations we require for
our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on
page 4, the directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view, and for
such internal control as the directors determine is necessary to enable the
preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the directors are responsible for
assessing the Group's and the parent Company's ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either intend to
liquidate the Group or the parent Company or to cease operations, or have no
realistic alternative but to do so.
Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an Auditors' Report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on
the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and
regulations. We design procedures in line with our responsibilities, outlined
above, to detect material misstatements in respect of irregularities, including
fraud. The extent to which our procedures are capable of detecting
irregularities, including fraud is detailed below:
The objectives of our audit are to identify and assess the risks of material
misstatement of the financial statements due to fraud or error; to obtain
sufficient appropriate audit evidence regarding the assessed risks of material
misstatement due to fraud or error; and to respond appropriately to those
risks. Owing to the inherent limitations of an audit, there is an unavoidable
risk that material misstatements in the financial statements may not be
detected, even though the audit is properly planned and performed in accordance
with the ISAs (UK).
* In identifying and assessing risks of material misstatement in respect of
irregularities, including fraud and non- compliance with laws and
regulations, our procedures included the following:
* We obtained an understanding of the legal and regulatory frameworks
applicable to the Group and the industry
in which it operates. We determined that the following laws and regulations
were most significant: FRS 102 and the Companies Act 2006.
* We obtained an understanding of how the Group is complying with those legal
and regulatory frameworks by making enquiries of management.
* We challenged assumptions and judgments made by management in its
significant accounting estimates.
We did not identify any key audit matters relating to irregularities, including
fraud.
A further description of our responsibilities for the audit of the financial
statements is located on the Financial Reporting Council's website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our
Auditors' Report.
Use of our report
This report is made solely to the Company's members, as a body, in accordance
with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been
undertaken so that we might state to the Company's members those matters we are
required to state to them in an Auditors' Report and for no other purpose. To
the fullest extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company and the Company's members, as a body, for our
audit work, for this report, or for the opinions we have formed.
Charles Goldstein (Senior Statutory Auditor)
Brindley Goldstein LTD
Chartered Accountants and Statutory Auditors 103 High Street
Waltham Cross London
EN8 7AN
Date: 19/12/2022
Company Balance Sheet As at 31 July 2022
2022
Note £
Fixed assets
Intangible assets 11 1,460,292
Investments 12 50,250
1,510,542
Current assets
Debtors: amounts falling due within one year 13 189,058
Cash at bank and in hand 14 648,338
837,396
Creditors: amounts falling due within one year (264,490)
Net current assets 572,906
Total assets less current liabilities 2,083,448
Net assets excluding pension asset 2,083,448
Net assets 2,083,448
Capital and reserves
Called up share capital 17 290,617
Share premium account 3,639,253
Other reserves (1,333,596)
Loss/(profit) for the period (512,826)
Profit and loss account carried forward (512,826)
2,083,448
The financial statements were approved and authorised for issue by the board
and were signed on its behalf on
B Kearns
Director
19/12/2022
Consolidated Statement of Changes in Equity For the Period Ended 31 July 2022
Share
Called up premium Other Profit and
share account reserves loss account Total equity
capital £ £ £ £
£
Loss for the period - - - (513,273) (513,273)
Other movement - - (1,333,596) - (1,333,596)
Shares issued during the 290,617 3,639,253 - - 3,929,870
period
Other reserves movement - - 157,500 - 157,500
At 31 July 2022 290,617 3,639,253 (1,176,096) (513,273) 2,240,501
Company Statement of Changes in Equity For the Period Ended 31 July 2022
Share
Called up premium Other r Profit and
share account eserves loss account Total equity
capital £ £ £ £
£
Loss for the period - - - (512,826) (512,826)
Other movement - - (1,333,596) - (1,333,596)
Shares issued during the 290,617 3,639,253 - - 3,929,870
period
At 31 July 2022 290,617 3,639,253 (1,333,596) (512,826) 2,083,448
Consolidated Statement of Cash Flows For the Period Ended 31 July 2022
2022
£
Cash flows from operating activities
(Loss)/profit for the financial period (513,273)
Adjustments for:
Impairments of fixed assets 1,468,358
Loss on disposal of intangible assets 110,358
Taxation charge (171,091)
(Increase)/decrease in debtors (17,967)
Increase in creditors 57,437
Net fair value gains/(losses) recognised in OCI (1,333,595)
Net cash generated from operating activities (399,773)
Cash flows from investing activities
Purchase of intangible fixed assets (3,958,693)
Sale of intangible assets 919,685
Purchase of unlisted and other investments (250)
Net cash from investing activities (3,039,258)
Cash flows from financing activities
Issue of ordinary shares 4,087,369
Net cash used in financing activities 4,087,369
Net increase in cash and cash equivalents 648,338
Cash and cash equivalents at the end of period 648,338
Cash and cash equivalents at the end of period comprise:
Cash at bank and in hand 648,338
648,338
END
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