Fair-Value Report — Metaspacex (1796.HK)

Hong Kong interior fitting-out contractor (ex-Yield Go Holdings; rebranded "metaverse / China Digital Intelligence")

AVOID — Speculative SellFair value ~HKD 0.18 (0.10–0.40)Price HKD 0.57 · close ~2026-05-22creditor takeover · loss-making

⚠ Two myths to dispel. (1) It is not a metaverse/space company — it is a tiny HK fitting-out (renovation) contractor that earns 100% of revenue from one customer group, twice cosmetically rebranded. (2) The buyer Tse Shiu Hoi is not the chairman or an insider — he is the lender whose finance vehicle held a charge over the controlling shareholder's defaulted 75% block and is now seizing control out of that default. This is a distressed creditor takeover of a story-shell, not insider conviction.

A genuine on-market buy crossing 30% — but by a creditor enforcing collateral, into a loss-making, single-customer fitting-out contractor dressed up as a "metaverse" play with zero metaverse revenue. At HKD 0.57 it trades at ~3.7x a low-quality book, on a control/shell premium.

1 · The signal — corrected

Buyer	Tse Shiu Hoi — ultimate owner of Tse's Finance Ltd, the lender; NOT a director/chairman
Event	Controlling holder (China Sports / Huang Hou, 75%) defaulted on a loan secured by its shares; lender enforced, then bought on-market — crossing ~28% → 34% (reason 1101, @ HKD 0.69 & 0.46)
MGO	Crossing 30% normally triggers a mandatory offer; takeover-code announcements were pending — offer doc not yet confirmed (verify on HKEXnews)
Context	A rival 53.3% block sale (Shenzhen Haoyi, HK$64M) was terminated 14 May 2026; trading was suspended 10 Apr–15 May 2026

2 · Snapshot (price ~2026-05-22)

Price

HKD 0.57

52-wk 0.17–3.90

Market cap

HK$274M

480M shares

Book value

HK$72.8M

BVPS ~HK$0.152

Price / Book

3.7x

mostly contract assets

FY2025 revenue

HK$263.9M

−43%, GM 2.1%

FY2025 net loss

−HK$32.2M

99.8% one customer

3 · Business

IPO'd 2018 as Yield Go Holdings — an HK fitting-out / interior-decoration contractor (subsidiaries Hoi Sing Decoration, Milieu Wooden). Renamed Metaspacex (2024, with a "metaverse launch" and a token), then given a second Chinese name "China Digital Intelligence Technology Group" (2025). All revenue is fitting-out; there is no metaverse/Web3/digital revenue. Revenue is shrinking (−43%), gross margin is 2.1%, and ~99.8% comes from a single customer group — an extreme concentration risk.

4 · Valuation

Method. Loss-making with a low-quality, working-capital book (mostly contract assets) and net debt — value on tangible book with a discount, plus the control/shell premium as scenario optionality. No earnings to capitalize.

Scenario (weight)	Thesis	Fair value	vs HKD 0.57
🟢 Bull (20%)	New owner injects assets / re-rates the listing (shell value)	HKD 0.40	−30%
🟡 Base (40%)	Trades around (low-quality) book once the control dust settles	HKD 0.15	−74%
🔴 Bear (40%)	Loss-making, single-customer contractor at a discount to book	HKD 0.10	−82%
Probability-weighted	20 / 40 / 40	HKD 0.18	−68%

Reverse read: at 3.7x book for a shrinking, 2.1%-gross-margin, single-customer contractor with net debt, the price embeds a shell/control-event re-rating — not the fitting-out business, which on its own is worth at or below its ~HK$0.15 book.

5 · Conclusion

Rating: Avoid / Speculative Sell. A creditor seizing control of a loss-making story-shell is a high-risk special situation, not a value signal. Asset-based fair value is ~HKD 0.10–0.15; probability-weighted ~HKD 0.18 (−68%). The "metaverse/digital" branding has produced no revenue, the customer base is one client, and the equity is being fought over in a default. Steer clear unless explicitly trading the takeover mechanics.

6 · Key risks

Story-shell with zero new-economy revenue — two rebrands, no metaverse/digital income.
Customer concentration — ~99.8% of revenue from one customer group.
Distressed control event — collateral enforcement, pending takeover-code/MGO outcome, recent suspension; volatile and unpredictable.
Loss-making, net debt — −HK$32.2M, gross margin 2.1%, net debt ~HK$22M; book is largely contract assets.
Extreme volatility — 52-wk range 0.17–3.90.
Open item — MGO/whitewash documentation to be confirmed on HKEXnews.

Sources. HKEX FY2025 (Mar) results & 1H-FY2026 interim (revenue, loss, single-customer, equity, borrowings); interim substantial-shareholder notes (China Sports 75% pledged to Tse's Finance, 4 Mar 2024; lender enforcement Apr 2026); suspension/resumption (10 Apr–15 May 2026); terminated Shenzhen Haoyi block-sale (14 May 2026); price Investing.com ~2026-05-22. Scenario math via the valuation toolkit. Some takeover-code documents not retrievable this session — verify on HKEXnews.

Informational only; not investment advice. The author holds no position. Distressed control situations and story-shells carry elevated loss risk.

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