Audited financial statements are a key topic for many of our investors. And we fully understand your interest. As we have communicated on multiple occasions, transparency and reporting are crucial, particularly in the financial sector and within our company. Thus, we appreciate your concern.
Over the past few months, we've received questions about when Hive Finance Group's consolidated financials for 2023 and 2024 will be published. While we hoped to release them sooner, this process has proven more complex and time-consuming than anticipated. Let us explain why. Why does it take so long?
1. From Startup to Structure: Our First Full Audit
Following the recent leadership change, Hive Finance Group initiated a complete financial audit for 2023 and 2024. The new management has introduced higher quality standards and ambitious goals, which are ultimately beneficial for the entire organisation and its stakeholders. This is the first time the entire group is undergoing a consolidated audit process. As expected, the first time is never simple. Coordination across multiple companies, countries, and accounting teams requires extensive cross-checks and reconciliations.
Furthermore, audit firms are under huge workload pressure, especially top-tier auditors we've engaged. Due to their high demand, time allocation becomes a matter of compromise, which affects the audit timeline.
2. Transfer Pricing Methodology Implementation
Another very important milestone for our group of companies was achieved in April 2024. When Hive Finance Group completed its Transfer Pricing Methodology in collaboration with Deloitte. This is a needed document for a group of related companies operating internationally. It ensures that intercompany transactions are fully compliant with tax regulations in different jurisdictions.
After we received this methodology, we had to make adjustments to reflect compensating payments between entities for the years 2022, 2023, and 2024. These accounting entries affected previously prepared financial statements and required additional work to reconcile group balances. Importantly, this does not affect the group's overall financial results. However, it does require full clarity before we can complete any audit.
We Are Committed
We understand investors' concern and urgency to see results, but we want to ensure that this is a significant, multi-country, multi-stakeholder process. Auditors, tax advisors, accountants, and group leaders are involved. For us, the main requirement is quality, and quality cannot be rushed. "Preparing the group’s financial statements is one of our top priorities. Even though the process is complex and requires coordination across multiple countries and partners, I’m confident that the final result will bring long-term value to our investors and the organization," - says Aleksejus Tonkich, CFO of Hive finance.
At the same time, we do not want to set false expectations about timing. The new structure we're implementing is long-term, and once it's in place, future audits will be significantly faster and smoother.
What to Expect?
- Audited financial reports will be published as soon as the process is finalised and approved.
- We will continue sharing regular performance updates through monthly reviews and platform data.
These internal improvements are driven by a commitment to higher quality standards, not financial performance. In fact, the numbers speak for themselves. Hive5 has already funded over 105 million EUR in total loan volume since inception. Most importantly, investors continue to receive their returns on time as there are no delays across any loan repayments to date. To date, hive5 has already paid out 2.5 million EUR in interest to its investors.
Thank you for your trust. We'll share updates as soon as there is meaningful news, but until then, be assured that the work is ongoing, strategic, and aligned with our growth as a professional financial group.
If you have any further questions, our team is always available: support@hive5.co
