Garden Stage Limited

What they do

Garden Stage Ltd, through its subsidiaries IWin Securities Limited and IWin Asset Management Limited, provides securities brokerage and asset management services in Hong Kong. The company also manages investment funds, such as IWin Growth SPC Fund 2 SP, and has eligibility rights to trade on the Stock Exchange of Hong Kong (SEHK).

Revenue drivers

• Securities brokerage — Primary revenue source, generating fees and commissions from executing trades on behalf of clients.
• Asset management — Provides asset management services through IWin Asset Management Limited, earning management fees and performance fees.
• Fund management — Operates investment funds, including IWin Growth SPC Fund 2 SP, generating income from fund management activities.

Recent performance

For the fiscal year ended March 31, 2026, the company reported annual revenue of $7.3 million, up from $5.5 million in the prior year. Net loss widened to $13.8 million from $4.3 million in 2025. As of March 31, 2026, total assets were $41.9 million, with shareholder equity of $24.2 million and cash of $17.5 million.

Strategy

The company has been actively raising capital through securities purchase agreements and a registered direct offering, with multiple transactions during fiscal 2026. It granted share-based awards in June 2025 under an equity incentive plan, likely to attract and retain talent. The company also entered into an agreement to acquire Mental Form BVI Limited (MFBVI), indicating expansion through acquisition.

Risks

• Sustained losses — The company has recorded net losses each fiscal year from 2022 through 2026, with the loss widening to $13.8 million in 2026.
• Revenue volatility — Annual revenue fluctuated significantly, from $3.3 million in 2023 to $1.4 million in 2024 and $7.3 million in 2026, indicating unstable income streams.
• Customer concentration — Accounts receivable concentration risk exists, with a small number of counterparties accounting for a significant portion of receivables in prior years.
• Share dilution — Multiple securities purchase agreements and share issuances throughout 2025 and 2026 may dilute existing shareholders.

Outlook

Management has not provided explicit forward-looking guidance in the excerpt. The company continues to pursue growth through acquisitions, such as the agreement with MFBVI, and raising capital to support operations.