Kasei Holdings Plc Posting of Annual Report and Notice of AGM

 
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                             [e-mail] 
Chief Investment Officer 
 
First Sentinel 
Corporate Adviser                     [phone] 
Brian Stockbridge                     [e-mail] 
 
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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December 21, 2022 08:23 ET (13:23 GMT)