Summary by Moomoo AI
NEW FIRE TECHNOLOGY HOLDINGS LIMITED (“NEW FIRE TECHNOLOGY”) ISSUED A SUPPLEMENTAL ANNOUNCEMENT ON FEBRUARY 22, 2024 UPDATING THE IMPACT OF FTX EVENTS ON THE COMPANY'S FINANCIAL CONDITION. NIT FAILED TO WITHDRAW APPROXIMATELY HK$1.42 MILLION IN ASSETS FROM FTX IN NOVEMBER 2022 AND UNDERWENT A DEPRECIATION ASSESSMENT ON DEPOSITS AFTER FTX FILED FOR BANKRUPTCY. As of 30 September 2023, the Company confirmed an impairment loss of approximately HK$85.9 million, representing approximately 60.6% of the original amount. NIT IS ACTIVELY SEEKING SOLUTIONS, INCLUDING TRANSFERRING FTX CLAIM RIGHTS AND SIGNING AN EXCLUSIVE AGENT AGREEMENT WITH A PROFESSIONAL AGENT IN JUNE 2023. According to market price estimates, the recoverable amount of FTX deposits is about 39.4% of the original amount, but as the cryptocurrency market recovers, the company received in January 2024 indicates that the recoverable amount may increase to about 70%. NIT expects to complete the transfer of FTX claims over the next 12 months and will adjust the impairment loss provision based on the actual recoverable amount.