Executive Summary / Key Takeaways

• Strategic Pivot to "New Finance": Greenpro Capital Corp. is undergoing a high-stakes transformation, shifting from traditional business advisory and real estate to pioneering "New Finance" through Shariah-compliant digital banking and Real-World Asset (RWA) tokenization in Asia.
• Nascent Digital Growth Amidst Traditional Decline: While the digital business segment is showing early revenue generation, it is currently overshadowed by significant declines in traditional service and rental revenues, leading to an increased net loss and operational challenges.
• Technological Edge in Islamic Digital Finance: Greenpro's conditional approval for an Islamic Digital Bank capable of fiat-crypto settlement, coupled with its Shariah-compliant Green-X DAX platform and RWA projects like Green Token (XGT), provides a unique technological and regulatory differentiator in a rapidly evolving market.
• Going Concern and Funding Imperative: The company faces substantial doubt about its ability to continue as a going concern, necessitating successful execution of its digital strategy and securing additional financing to fund its ambitious expansion and overcome current liquidity pressures.
• Speculative Opportunity with Significant Risks: The investment thesis for GRNQ is highly speculative, hinging on the successful monetization of its digital initiatives and its ability to navigate a complex regulatory and competitive landscape, offering potential long-term upside if the digital pivot gains traction.

Greenpro's Vision for "New Finance" in Asia

Greenpro Capital Corp. (NASDAQ:GRNQ) is charting an ambitious course, evolving from its roots as a provider of cross-border business solutions and accounting outsourcing for small and medium-sized enterprises (SMEs) in Asia. Incorporated in 2013 and listed on NASDAQ for seven years, Greenpro has historically served clients across Hong Kong, Malaysia, China, Thailand, and Singapore, offering a suite of services from tax planning to corporate advisory. This foundation is now undergoing a significant strategic pivot towards what the company terms "New Finance" and Real-World Asset (RWA) innovation, aiming to capitalize on the burgeoning digital economy and the specific demands of Shariah-compliant finance in Asia.

The broader financial industry is experiencing a profound digital transformation, with the rise of fintech, increasing adoption of blockchain technology, and a growing emphasis on ESG (Environmental, Social, and Governance) principles. Within this landscape, Greenpro is carving out a distinctive niche by focusing on Islamic digital finance. Its wholly-owned subsidiary, Green-X Corp. (Green-X), operates a licensed digital asset exchange (DAX) platform in Labuan, Malaysia, specifically designed for security token issuers and investors. This platform is notably Shariah-compliant, a critical differentiator in attracting a specific segment of the Asian market.

Greenpro's technological differentiation is central to its "New Finance" strategy. The Green-X DAX platform facilitates the offering and trading of security tokens, providing a regulated environment for digital assets. A significant development is the conditional approval received from the Labuan Financial Services Authority (Labuan FSA) to establish and operate a next-generation Islamic Digital Bank through its subsidiary, Global Business Hub Limited. This digital bank is poised to be one of the world's first Shariah-compliant institutions capable of accepting both fiat and cryptocurrency deposits, offering a tangible benefit by bridging traditional and digital financial ecosystems for a specific, underserved market. This capability could unlock new revenue streams and enhance customer stickiness by offering a comprehensive financial solution.

The company's commitment to Real-World Asset (RWA) innovation is further exemplified by the listing of its Green Token (XGT) on the GreenX platform. XGT is positioned as the 5th RWA project on GreenX, a Shariah-compliant ESG Digital Asset Exchange. While specific quantifiable performance metrics for XGT's benefits are still emerging, the strategic intent is clear: to tokenize tangible and intangible assets, thereby increasing liquidity and transparency for investors. The XGT project has a total maximum supply of 168,000,000 tokens, with an initial offering for circulation of 2,500,000 XGT (equivalent to 1.49% of the total supply) at a private sale price of 0.20 USDT per token. This initiative aims to create new investment opportunities and potentially generate transaction and listing fees for Green-X. For investors, this technological roadmap suggests a potential competitive moat in the specialized area of Shariah-compliant digital assets and banking, opening access to new markets and potentially commanding premium services, which could translate into higher average selling prices and better margins over time.

In the competitive landscape, Greenpro operates against larger, more established global advisory firms like FTI Consulting and CBIZ, Inc. , as well as project-based consulting firms such as Resources Connection . FTI Consulting , with its broad global footprint and expertise in high-value, specialized consulting for larger clients, generally exhibits stronger cash flow generation and profitability margins. Greenpro, in contrast, leverages its deep regional expertise in Asia and its tailored services for SMEs, which can foster stronger customer loyalty in its niche. However, Greenpro's smaller scale and more modest financial performance, including lower profitability and cash flow, indicate a lag in overall market positioning and resource allocation compared to FTI (FCN).

CBIZ, Inc. , primarily focused on the U.S. middle-market with integrated accounting, tax, and advisory services, demonstrates consistent revenue growth and solid profitability. Greenpro differentiates itself with specialized cross-border advisory and wealth planning services for Asian SMEs, offering greater relevance in regions like Hong Kong and Malaysia. While Greenpro's regional insights provide a unique value proposition, it trails CBIZ (CBZ) in operational scale and efficiency, which could impact its innovation cycles and financial health. Resources Connection (RECN), known for flexible, on-demand project-based services, offers agility. Greenpro, with its comprehensive, long-term advisory and wealth planning, aims for deeper client relationships, but its efficiency and financial health appear weaker than RECN's more consistent trends. Indirect competitors, including AI-driven financial tools and online platforms, pose a threat by offering more accessible, digital-first solutions, potentially eroding Greenpro's market share in entry-level services. Greenpro's regional focus and Shariah-compliant digital offerings are its primary strategic responses to these competitive forces, aiming to create a defensible position.

The Current Financial Crossroads: A Tale of Two Businesses

Greenpro's strategic pivot is unfolding against a backdrop of challenging financial performance in its traditional segments. For the six months ended June 30, 2025, total revenue decreased by 23.5% to $779,847 from $1.02 million in the prior year. This decline was primarily driven by a significant 27.7% reduction in service business revenue, which fell to $706,110 from $976,422. Management attributed this to "fewer listing and non-listing advisory services were rendered." Revenue from related parties within the service segment saw an even steeper decline of 86.0%, dropping to $33,353 from $239,085.

The real estate business also experienced a downturn, with rental revenue decreasing by 31.5% to $29,560 from $43,151. This was largely due to the distribution of 40% of a Hong Kong subsidiary's real estate properties to a non-controlling interest in April 2024, resulting in fewer units available for leasing. These declines in traditional revenue streams contributed to a lower gross profit of $602,401 in the first half of 2025, compared to $895,975 in the same period of 2024.

Amidst these challenges, the digital business segment emerged as a new revenue contributor, generating $44,177 in the first six months of 2025, up from zero in the prior year. This revenue was primarily from the trading of digital assets ($43,425) and the sale of GX Token ($752). While nascent, this growth signals the early stages of the company's strategic shift.

However, the overall financial picture remains strained. The company's loss from operations increased to $1.29 million for the six months ended June 30, 2025, from $1.08 million in the prior year, primarily due to the decrease in service business revenue. Net other income also saw a substantial reduction, falling to $81,400 from $238,076, largely due to lower gains on disposal of investments. Consequently, the net loss for the period widened to $1.21 million, compared to $838,663 in the first half of 2024.

Liquidity is a critical concern. Cash and cash equivalents decreased to $833,234 as of June 30, 2025, from $1.12 million at December 31, 2024.

The company utilized $772,674 in net cash from operating activities during the first six months of 2025. To fund its operations and expansion, Greenpro raised $760,000 through private placements of common stock, contributing to $477,236 in net cash provided by financing activities.

Despite management's belief that existing shareholders or external financing will provide sufficient cash for the next twelve months, the accumulated deficit of $38.47 million as of June 30, 2025, and the ongoing net losses have led the company's independent registered public accounting firm to express substantial doubt about its ability to continue as a going concern.

Strategic Initiatives and Future Outlook

Greenpro's future hinges on the successful execution and monetization of its digital initiatives. The conditional approval for the Islamic Digital Bank is a cornerstone of this strategy, positioning Greenpro to tap into a significant and growing market for Shariah-compliant financial services that integrate traditional and digital assets. This move is expected to drive future revenue growth and diversify the company's income streams beyond its struggling traditional advisory and real estate segments. The development of this digital banking platform and the Green-X DAX will necessitate increased general and administrative (GA) expenses, as management has indicated.

Management anticipates a slight recovery in service business revenue as new markets are explored, and rental income is expected to remain stable. However, the primary growth vector is clearly the digital segment. The company's early adoption of ASU 2023-8, effective January 1, 2025, for fair value remeasurement of crypto assets, demonstrates its commitment to transparent accounting in the digital asset space. The ongoing development of the Green Token (XGT) as an RWA project further underscores Greenpro's dedication to innovation within the digital finance ecosystem. These strategic moves are designed to leverage Greenpro's regional expertise and Shariah-compliant offerings, creating a unique value proposition that differentiates it from larger, more generalized competitors.

Significant Hurdles and Risks

The path forward for Greenpro is fraught with significant risks. The "going concern" warning is paramount, highlighting the immediate need to reverse operational losses and generate positive cash flow. While the recent private placement provided some capital, there is no assurance that future financing, if needed, will be available on satisfactory terms, and any equity financing could lead to substantial dilution for existing shareholders.

The digital asset market itself presents considerable volatility and regulatory uncertainty. The company acknowledges that "during times of instability in the crypto assets market, we may not be able to sell our crypto assets at reasonable prices or at all." Furthermore, the evolving regulatory landscape, particularly concerning the classification of digital assets as securities, poses ongoing compliance and operational risks. Greenpro's operations in Asia and Southeast Asia expose it to foreign exchange rate fluctuations and broader geopolitical and economic risks, including potential restrictions on fund transfers and changing taxation policies. Finally, a pending legal proceeding with Millennium Fine Art Inc. (MFAI) seeking $66 million in damages related to an NFT contract adds another layer of financial and reputational risk, with an arbitration hearing scheduled for January 2026.

Conclusion

Greenpro Capital Corp. stands at a pivotal juncture, attempting a bold transformation from a traditional financial services provider to a pioneer in "New Finance" within the Asian market. Its strategic focus on Shariah-compliant digital banking and Real-World Asset tokenization, underpinned by the Green-X DAX platform and the upcoming Islamic Digital Bank, represents a unique and potentially lucrative technological differentiator. This pivot, if successful, could unlock significant long-term growth by tapping into underserved markets and leveraging its regional expertise.

However, the company's current financial performance, marked by declining traditional revenues and increasing net losses, casts a shadow over this ambitious vision, culminating in a "going concern" warning. The investment in GRNQ is therefore highly speculative, contingent on management's ability to swiftly and effectively execute its digital strategy, monetize its innovative offerings, and secure the necessary funding to sustain its operations. While the technological edge in Islamic digital finance offers a compelling narrative, investors must weigh this potential against the immediate financial challenges and the inherent risks of a rapidly evolving and highly regulated digital asset landscape.