Executive Summary / Key Takeaways

• Strategic Pivot and Growth: Marvion Inc. (MVNC) has undergone a significant transformation, divesting its prior media and technology ventures to focus on logistics, warehousing, and financial consulting in Hong Kong. This strategic pivot has already yielded substantial revenue growth, with Q1 2025 revenues increasing by 138% year-over-year.
• Operational Expansion and Diversification: The company's newly operational warehouse is a cornerstone of its B2B logistics expansion, evidenced by a key partnership with SF Express (002352). Further diversification is underway with a solar photovoltaic (PV) system on warehouse rooftops, expected to generate stable revenue from mid-2025 through 2033.
• Future Growth Avenues: MVNC is strategically eyeing the Business-to-Consumer (B2C) e-commerce sector, particularly in furniture, aiming to leverage cross-border opportunities from China to Hong Kong with integrated logistics and assembly services, though this plan is currently deferred due to market volatility.
• Critical Liquidity Challenges: Despite revenue growth, MVNC faces significant liquidity hurdles, including a working capital deficit of $3.91 million and an accumulated deficit of $6.06 million as of March 31, 2025. The company's going concern status is dependent on continued financial support from major shareholders and securing additional financing.
• Key Factors to Monitor: Investors should closely watch MVNC's ability to secure necessary funding, successfully execute its B2B logistics expansion and solar revenue initiatives, and strategically re-enter the B2C e-commerce market when conditions stabilize, all while managing inherent geopolitical and concentration risks in Hong Kong.

A Strategic Pivot in Hong Kong's Logistics Landscape

Marvion Inc. (MVNC) has embarked on a profound strategic transformation, fundamentally reshaping its business identity and operational focus. Incorporated in Nevada in 2008 and formerly known as Bonanza Goldfields Corp., the company executed a pivotal Share Exchange Agreement on September 12, 2024. This transaction involved the acquisition of United Warehouse Management Corp. (UWMC) through a reverse merger, concurrently divesting its previous lifestyle, media, entertainment creation and distribution, and technology businesses. MVNC is now primarily engaged in logistics and warehousing services, complemented by financial consulting, operating through wholly-owned subsidiaries in Hong Kong and Singapore.

This strategic shift positions MVNC within the dynamic and growing Hong Kong logistics market, a sector increasingly influenced by e-commerce trends. Hong Kong consumers' strong preference for online shopping, projected to reach 84.1% by 2027, underscores a significant market opportunity. Furthermore, the mature online furniture e-commerce market in China, where 50% of consumers already purchase furniture online, presents a compelling cross-border opportunity for MVNC's integrated logistics services. The company's strategic response to these market drivers is centered on enhancing its physical infrastructure and diversifying its revenue streams beyond traditional logistics.

Operational Innovation and Diversified Revenue Streams

At the heart of MVNC's current strategy is its investment in robust operational infrastructure. The company initiated the development of a new warehouse building in October 2023, a facility structurally completed in April 2025 and awaiting final local government approval. This new warehouse is a critical asset, designed to support expanded logistics and warehousing services, including merchandise storage, packaging, and delivery. Its operational readiness is already delivering value, with a major HKEX-listed logistics partner utilizing the facilities for integrated warehousing and last-mile delivery. This expansion is further solidified by MVNC's appointment as the exclusive local delivery partner for SF Express in Yuen Long, a high-growth district with increasing e-commerce demand. This collaboration is expected to lock in recurring revenue and position MVNC for further expansion within the logistics sector.

Beyond core logistics, MVNC is pursuing innovative avenues for revenue diversification and sustainability. A notable initiative involves the installation of solar photovoltaic (PV) systems on the rooftops of its warehouses. This project is expected to commence generating revenue for the group in mid-2025 and continue until December 31, 2033, through the sale of generated power to CLP Power Hong Kong Limited (0002) under a Feed-in Tariff scheme. This initiative provides a long-term, stable revenue stream while simultaneously reducing the company's carbon footprint. The strategic intent behind these operational enhancements is to build a more resilient and environmentally conscious business model, offering tangible benefits through stable, predictable income streams and enhanced operational efficiency.

Looking further ahead, MVNC has articulated a vision to expand into Business-to-Consumer (B2C) opportunities, particularly in the furniture e-commerce sector. Leveraging its management's expertise in the furniture industry and the robust cross-border e-commerce growth between China and Hong Kong, the company aims to develop a "one-stop furniture shopping experience" platform. This platform would integrate logistics, delivery, and furniture assembly services. While the e-commerce platform plan is currently deferred due to "near-term market volatility due to the global tariff war," MVNC intends to retain the built infrastructure and re-enter this market when conditions stabilize, signaling a long-term commitment to this high-potential area.

Financial Performance: A Growth Story with Liquidity Challenges

MVNC's strategic pivot has translated into impressive top-line growth. For the three months ended March 31, 2025, the company reported revenues of $641,023, a substantial 138% increase from $269,209 in the same period of 2024. This growth was primarily driven by an increase in customers for its logistics and warehousing services. Gross profit also saw a significant boost, reaching $322,019 in Q1 2025, up from $124,352 in Q1 2024, attributable to the new business in these segments. Annually, the fiscal year ended December 31, 2024, saw revenue growth of 134% to $1.54 million and gross profit growth of 171% to $763,805 compared to 2023.

Despite this robust revenue expansion, profitability metrics present a mixed picture. While gross profit margin for the trailing twelve months (TTM) stands at a healthy 46.47%, the company recorded negative operating and net profit margins of -246.83% and -297.03%, respectively, for the TTM period. For Q1 2025, net income was $6,977, a notable decrease from $40,512 in Q1 2024, indicating that increased operating expenses and interest costs are outpacing revenue growth.

Operating cash flow, however, showed improvement, providing $176,329 in Q1 2025, up from $111,096 in Q1 2024. Capital expenditures, primarily for construction in progress, led to a negative free cash flow of -$55,241 for Q1 2025.

Liquidity and Capital Structure: The Path Forward

MVNC faces significant liquidity challenges that underscore its "going concern" status. As of March 31, 2025, the company reported a working capital deficit of $3.91 million and an accumulated deficit of $6.06 million. The company's auditor has expressed substantial doubt about its ability to continue as a going concern, highlighting its dependence on continued financial support from major shareholders and the successful securing of additional financing.

The company's material cash requirements are highly dependent on this external support over the next 12 to 18 months. This includes a vested earnout payment of $1.00 million related to the UWMC acquisition, due on or before June 30, 2025, and $170,000 in convertible notes that were due on December 31, 2024, for which the company is currently negotiating repayment plans. As a Nevada holding company, MVNC relies on cash transfers from its Hong Kong and British Virgin Islands subsidiaries, though no such transfers have occurred to date. Furthermore, the company does not anticipate paying dividends in the foreseeable future, intending to retain all earnings for business operation and expansion. The PRC government's controls on currency conversion and remittance from mainland China could also pose a risk to future cash flows, although MVNC currently has no PRC subsidiaries.

Competitive Positioning in a Dynamic Market

MVNC operates in the competitive Hong Kong logistics and warehousing sector, a market characterized by both established players and emerging opportunities driven by e-commerce. The company's competitive positioning is primarily built on its strategic assets and partnerships. The newly operational warehouse facility provides a tangible advantage, offering modern infrastructure for storage, packaging, and delivery services. The exclusive partnership with SF Express in Yuen Long further solidifies its market presence, providing a stable stream of recurring revenue and a strong foundation for B2B expansion.

While MVNC does not explicitly detail its competitive advantages in terms of proprietary technology in its core logistics operations, its strategic initiatives like the solar PV system represent an operational innovation that diversifies revenue and enhances sustainability, potentially offering a cost advantage or attracting environmentally conscious clients. The long-term vision for a B2C furniture e-commerce platform, integrating logistics and assembly, aims to create a differentiated "one-stop shop" experience, leveraging its existing infrastructure.

However, MVNC faces inherent competitive disadvantages due to its relatively smaller scale compared to larger, more established logistics providers. This can impact its ability to achieve economies of scale and compete on price or service breadth. The company also faces significant customer concentration, with four major customers accounting for 88.42% of Q1 2025 revenues, and vendor concentration, with two vendors comprising 39.85% of direct operating costs. These concentrations expose MVNC to heightened business risk if relationships with these key partners change. The deferral of its e-commerce platform due to "global tariff war" volatility also highlights its sensitivity to broader macroeconomic and geopolitical factors, which larger, more diversified competitors might be better equipped to absorb.

Strategic Outlook and Growth Initiatives

MVNC's outlook is firmly rooted in the continued expansion of its logistics and warehousing services and the successful execution of its diversification strategies. The company is committed to accelerating its B2B logistics and warehousing growth, leveraging its new facility and the SF Express partnership to secure more recurring revenue and expand its client base. The solar PV system is a concrete step towards long-term, stable revenue generation, providing a predictable income stream independent of its core logistics operations.

The deferred B2C e-commerce platform, while on hold, remains a significant long-term strategic initiative. This venture aims to capitalize on the robust e-commerce growth in Hong Kong and the mature online furniture market in China. By offering integrated logistics, delivery, and assembly services, MVNC seeks to capture higher-margin contracts and establish a strong foothold in a growing consumer market. The company's decision to retain the infrastructure built for this venture underscores its confidence in the long-term opportunities within the e-commerce sector, despite current market volatility. Successful execution of these initiatives will be paramount for MVNC to overcome its current financial challenges and realize its growth potential.

Conclusion

Marvion Inc. is in the midst of a transformative period, having strategically pivoted its core business to logistics and warehousing in Hong Kong. This shift has already demonstrated strong top-line growth, driven by an expanding customer base and the operational benefits of its new warehouse facility. The company's forward-looking initiatives, including the solar PV system for stable recurring revenue and the long-term vision for a B2C e-commerce platform, signal a clear strategy for diversification and sustained growth within its chosen markets.

However, the investment thesis for MVNC is heavily weighted by its critical liquidity position. The substantial working capital and accumulated deficits, coupled with the auditor's going concern warning, highlight the immediate need for additional financial support. The company's ability to secure this funding, manage its existing debt obligations, and effectively execute its strategic roadmap—particularly the B2B expansion and the solar energy project—will be the defining factors for its future success. Investors considering MVNC should closely monitor its capital raising efforts and the operational progress of its new ventures, as these will determine whether the company can successfully transition from a high-growth, high-risk proposition to a sustainable and profitable enterprise in the competitive Hong Kong logistics landscape.