Group 1 - The top five Chinese concept stocks that experienced the largest declines in closing prices are: Futu Holdings down 26.42%, QuantumScape down 17.95%, Tianrui Xiang down 17.81%, BQ Pets down 16.58%, and Huize down 16.15% [1][1][1] - Futu Holdings (FTFT) latest price is 2.340 with a decline of 0.840 and a trading volume of 3.5571 million [1][1][1] - QuantumScape (QSG) latest price is 9.600 with a decline of 2.100 and a trading volume of 36.1601 million [1][1][1] - Tianrui Xiang (TIRX) latest price is 2.630 with a decline of 0.570 and a trading volume of 0.2324 million [1][1][1] - BQ Pets (BQ) latest price is 3.070 with a decline of 0.610 and a trading volume of 0.2371 million [1][1][1] - Huize (HUIZ) latest price is 3.530 with a decline of 0.680 and a trading volume of 1.1731 million [1][1][1]

Core Viewpoint - Future FinTech Group Inc. has entered a joint venture with Innovatelab LLC to commercialize the 'Vacuum Parcel' technology for ultra-high-speed rail transportation, which is expected to revolutionize the industry [1][2]. Company Summary - Future FinTech Group Inc. holds a 55% equity position in the joint venture, while Innovatelab LLC holds 45% [1]. - The company will be responsible for investment capital and external financing, while Innovatelab LLC will focus on technology and R&D [1]. - The CEO of Future FinTech, Mr. Li Hu, emphasized the growing global demand for high-speed rail and the potential of Dr. Liu's invention to meet these needs [6]. Industry Summary - The new rail system aims to achieve operational speeds comparable to aircraft by utilizing pipelines as operational tracks, addressing the technical challenge of reducing drag in low-vacuum pipelines [2]. - The technology is expected to be significantly more cost-effective than existing high-speed rail systems and will enhance safety and effectiveness in rail transit [2]. - The joint venture's technology differs from Elon Musk's Hyperloop system by using an open pipeline to create a vacuum-wrapped state, allowing for low air resistance and high speeds [4]. - Dr. Marvin Liu, the inventor of the technology, has over 20 years of research experience and holds a patent for the invention [5]. - The project will be implemented step-by-step, including model testing and system integration, to ensure commercial feasibility [6].

Core Viewpoint - FTFT has signed a cooperation agreement with Innovatelab LLC to develop a groundbreaking vacuum tube transportation technology, securing global exclusive rights for the project, which aims to redefine high-speed rail and transportation systems [1][3]. Company Summary - FTFT will hold a 55% stake in the new joint venture, while Innovatelab LLC will hold 45%, combining their strengths in intellectual property, research, development, finance, and industrial project development [1]. - The CEO of FTFT, Li Hu, emphasized the potential of this technology to revolutionize high-speed transportation, likening it to a "ground flight" era, and expressed openness to collaboration with global stakeholders, including Elon Musk [4]. Industry Summary - The new technology simplifies the Hyperloop concept by using a moving vacuum to reduce air resistance, allowing trains to operate at speeds close to that of aircraft in an open system, thus addressing significant technical challenges faced by Hyperloop projects [3]. - The technology is expected to create a trillion-dollar market demand and drive rapid development in related industries, establishing a strong competitive edge in the rail transportation sector [1]. - The inventor, Dr. Liu Ma-wen, noted that the technology has already completed several critical model tests, achieving expected results, and is seen as a breakthrough in high-speed transportation science [4].

Core Points - Future FinTech Group Inc. will hold a special meeting of shareholders on September 2, 2025, at 10:00 a.m. Hong Kong time [1] - Shareholders as of the record date on July 2, 2025, are encouraged to submit their votes via the Proxy Card [2] - Future FinTech Group Inc. operates as a comprehensive financial and digital technology service provider, offering brokerage, investment banking, and supply chain finance services [3]

[FORM 10-Q Cover Page](index=1&type=section&id=FORM%2010-Q%20Cover%20Page) This Quarterly Report (Form 10-Q) covers the period ended June 30, 2025, for a Non-accelerated filer and Smaller reporting company - This is a Quarterly Report (Form 10-Q) for the period ended June 30, 2025[2](index=2&type=chunk) - The registrant is classified as a **Non-accelerated filer** and a **Smaller reporting company**[5](index=5&type=chunk) Common Stock Outstanding | Class | Outstanding at July 23, 2025 | | :--- | :--- | | Common Stock, $0.001 par value per share | 3,450,770 | [TABLE OF CONTENTS](index=3&type=section&id=TABLE%20OF%20CONTENTS) This section provides an organized listing of all chapters and sub-sections within the report [PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations and comprehensive income (loss), statements of stockholders' equity, and statements of cash flows for the periods ended June 30, 2025 and 2024, along with accompanying notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) This section provides a snapshot of the company's assets, liabilities, and equity at specific points in time Key Balance Sheet Data (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Current Assets | $20.30 million | $20.72 million | $(0.41) million | | Total Assets | $24.58 million | $25.90 million | $(1.33) million | | Total Current Liabilities | $8.83 million | $13.11 million | $(4.28) million | | Total Liabilities | $10.03 million | $13.31 million | $(3.28) million | | Total Stockholders' Equity | $14.55 million | $12.60 million | $1.95 million | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20INCOME%20(LOSS)) This section details the company's revenues, expenses, and net income or loss over specific reporting periods Key Income Statement Data (Six Months Ended June 30, 2025 vs. 2024) | Metric | 2025 (6 Months) | 2024 (6 Months) | Change | | :--- | :--- | :--- | :--- | | Revenue | $1.16 million | $0.95 million | $0.21 million | | Gross Profit | $0.27 million | $0.53 million | $(0.27) million | | Total Operating Expenses | $32.72 million | $3.48 million | $29.25 million | | Loss from Operations | $(32.46) million | $(2.94) million | $(29.51) million | | Total Other Income (Expenses) | $3.36 million | $(1.21) million | $4.57 million | | Income (Loss) from Continuing Operations before Income Tax | $(29.09) million | $(4.15) million | $(24.94) million | | Gain on disposal of discontinued operations | $28.24 million | $0.65 million | $27.59 million | | NET Income (LOSS) | $(0.86) million | $(5.12) million | $4.27 million | | Net income (loss) attributable to Future Fintech Group, Inc. | $(2.72) million | $(5.09) million | $2.37 million | Earnings Per Share (Six Months Ended June 30, 2025 vs. 2024) | Metric | 2025 (6 Months) | 2024 (6 Months) | | :--- | :--- | | Basic EPS from continuing operation | $(10.27) | $(2.08) | | Basic EPS from discontinued operation | $9.31 | $(0.47) | | Total Basic EPS | $(0.96) | $(2.55) | | Diluted EPS from continuing operation | $(10.27) | $(2.08) | | Diluted EPS from discontinued operation | $9.30 | $(0.47) | | Total Diluted EPS | $(0.97) | $(2.55) | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20STOCKHOLDERS'%20EQUITY) This section outlines changes in the company's equity accounts, including common stock, additional paid-in capital, and accumulated deficits Stockholders' Equity Changes (Six Months Ended June 30, 2025) | Item | Amount (June 30, 2025) | | :--- | :--- | | Common stock, shares | 3,110,770 | | Common stock, amount | $3.11 thousand | | Additional paid-in capital | $240.47 million | | Accumulated deficits | $(221.61) million | | Total Stockholders' Equity | $14.55 million | - The company issued **121,205 common shares** from debt conversion and **500,000 shares** for share-based payments during the six months ended June 30, 2025[18](index=18&type=chunk) - A **1-for-10 reverse stock split** was effected on April 1, 2025, impacting share numbers and prices[23](index=23&type=chunk)[114](index=114&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) This section reports the cash generated and used by the company across its operating, investing, and financing activities Key Cash Flow Data (Six Months Ended June 30, 2025 vs. 2024) | Cash Flow Activity | 2025 (6 Months) | 2024 (6 Months) | Change | | :--- | :--- | :--- | :--- | | Net Cash Used in Operating Activities | $(27.73) million | $(10.79) million | $(16.93) million | | Net Cash Provided by Investing Activities from Continuing Operations | $0.62 million | $0.21 million | $0.41 million | | Net Cash (Used in) Provided by Financing Activities | $(0.01) million | $2.45 million | $(2.46) million | | Net Increase (Decrease) in Cash and Restricted Cash | $1.02 million | $(8.20) million | $9.22 million | | Cash and Restricted Cash at End of Year | $5.79 million | $7.96 million | $(2.17) million | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides detailed explanations and additional information supporting the condensed consolidated financial statements [1. Corporate Information](index=11&type=section&id=1.%20CORPORATE%20INFORMATION) This section outlines the company's business transformation, recent corporate actions, and structural changes - The Company transitioned its business from fruit juice manufacturing to financial technology-related services, including supply chain financing and trading in China, and brokerage/investment banking in Hong Kong[22](index=22&type=chunk) - A **1-for-10 reverse stock split** of common stock was authorized and approved, effective April 1, 2025, reducing authorized shares from **60,000,000 to 6,000,000**[23](index=23&type=chunk) - The Company completed deregistration and dissolution of its VIE, E-Commerce Tianjin, on March 7, 2024[22](index=22&type=chunk) [2. Summary of Significant Accounting Policies](index=11&type=section&id=2.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This section details the key accounting principles and policies applied in preparing the financial statements [Discontinued Operations](index=12&type=section&id=Discontinued%20Operations) This section describes the company's disposal of various subsidiaries and VIEs, and the resulting financial impact - Several subsidiaries and a VIE were dissolved, deregistered, or disposed of between March 2024 and February 2025, including Chain Cloud Mall Network, Tianjin Future Private Equity Fund Management, Nice Talent Asset Management, FTFT Super Computing Inc., and multiple other fintech/digital asset entities[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) - The disposal of FTFT Super Computing Inc. resulted in a gain of **$3.42 million**, and the disposal of multiple other entities in February 2025 resulted in a gain of **$28.24 million**[28](index=28&type=chunk)[29](index=29&type=chunk) [Going Concern](index=12&type=section&id=Going%20Concern) This section addresses the company's ability to continue operations, citing significant operating losses and negative cash flows - The Company incurred operating losses of **$29.09 million** and negative operating cash flows of **$27.73 million** as of June 30, 2025, raising substantial doubt about its ability to continue as a going concern[34](index=34&type=chunk) - The Company's ability to continue as a going concern is dependent on successfully executing its new business strategy and achieving profitable operations, having raised funds through convertible notes and common stock[35](index=35&type=chunk)[34](index=34&type=chunk) [New Accounting Pronouncements](index=20&type=section&id=New%20Accounting%20Pronouncements) This section discusses the adoption and evaluation of recent accounting standards updates - The Company adopted ASU No. 2023-07 (Segment Reporting) effective July 1, 2024, with no material impact expected on financial statements[72](index=72&type=chunk) - The Company adopted ASU No. 2023-09 (Income Taxes) effective July 1, 2025, and is currently evaluating its impact[73](index=73&type=chunk) [3. Accounts Receivable](index=20&type=section&id=3.%20ACCOUNTS%20RECEIVABLE) This section provides a breakdown of accounts receivable by segment and highlights concentration risks and bad debt expenses Accounts Receivable by Segment (June 30, 2025 vs. December 31, 2024) | Segment | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Supply Chain Financing/Trading | $1.21 million | $1.98 million | | Trading Commission and Consulting service | $0.42 million | $0.10 million | | Fast-Moving Consumer Goods | $7.12 thousand | $- | | Total accounts receivable, net | $1.64 million | $2.09 million | Accounts Receivable Concentration (June 30, 2025 vs. December 31, 2024) | Debtor | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Debtor A | 24.2% | 34.6% | | Debtor B | 22.7% | 19.0% | | Debtor C | 19.1% | 17.8% | | Total accounts receivable, net | 66.0% | 71.4% | - Bad debt expense significantly increased to **$28.76 million** for the six months ended June 30, 2025, from **$0.44 million** in the prior year[51](index=51&type=chunk) [4. Other Receivables](index=21&type=section&id=4.%20OTHER%20RECEIVABLES) This section presents the balances of other receivables at the end of the reporting periods Other Receivables (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Other receivables balance | $0.92 million | $1.49 million | [5. Loan Receivables](index=21&type=section&id=5.%20LOAN%20RECEIVABLES) This section details the company's loan receivables, including outstanding balances and interest rates Loan Receivables Balance (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Loan receivables balance | $6.98 million | $7.09 million | - A **$7.00 million loan (8% interest)** from July 2022 had **$2.09 million** outstanding as of June 30, 2025, with early repayments received[81](index=81&type=chunk) - A **$4.88 million loan (5% interest)** from December 2023 had **$4.89 million** outstanding as of June 30, 2025[82](index=82&type=chunk) [6. Advances to Suppliers and Other Current Assets](index=22&type=section&id=6.%20ADVANCES%20TO%20SUPPLIERS%20AND%20OTHER%20CURRENT%20ASSETS) This section provides a breakdown of prepayments to suppliers and other current assets Advances to Suppliers and Other Current Assets (June 30, 2025 vs. December 31, 2024) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Prepayments for Supply Chain Financing/Trading | $3.99 million | $4.35 million | | Prepaid expenses | $0.20 million | $34.87 thousand | | Others | $0.75 million | $0.56 million | | Total | $4.94 million | $4.94 million | [7. Leases](index=22&type=section&id=7.%20LEASES) This section details the company's operating lease costs, remaining lease terms, and discount rates - Operating lease cost for the six months ended June 30, 2025, was **$0.09 million**[88](index=88&type=chunk) - Weighted average remaining lease term is **1.60 years** with a weighted average discount rate of **4.88%** as of June 30, 2025[88](index=88&type=chunk) Maturities of Lease Liabilities (As of June 30, 2025) | Period | Operating Lease | | :--- | :--- | | From July 1, 2025 to June 30, 2026 | $0.20 million | | From July 1, 2026 to June 30, 2027 | $0.11 million | | Total | $0.31 million | | Present Value of future minimum lease payments | $0.30 million | | Current obligations | $0.19 million | | Long term obligations | $0.11 million | [8. Property and Equipment](index=22&type=section&id=8.%20PROPERTY%20AND%20EQUIPMENT) This section presents the net book value of property and equipment and associated depreciation expenses Property and Equipment, Net (June 30, 2025 vs. December 31, 2024) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Office equipment, fixtures and furniture | $50.82 thousand | $50.87 thousand | | Vehicle | $0.39 million | $0.38 million | | Building | $62.60 thousand | $62.34 thousand | | Construction in progress | $2.24 million | $2.23 million | | Total (net) | $2.42 million | $2.46 million | - Depreciation expense for the six months ended June 30, 2025, was **$50.97 thousand**, a decrease from **$60.30 thousand** in the prior year[91](index=91&type=chunk) [9. Intangible Assets](index=23&type=section&id=9.%20INTANGIBLE%20ASSETS) This section details the company's intangible assets, including trading rights and software, and related amortization expenses Intangible Assets, Net (June 30, 2025 vs. December 31, 2024) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trading rights of license plates | $0.13 million | $0.13 million | | System and software | $0.63 million | $0.63 million | | Total (net) | $0.50 million | $0.53 million | - Amortization expense for the six months ended June 30, 2025, was **$28.52 thousand**, consistent with the prior year[92](index=92&type=chunk) - Type 1 and Type 2 licenses by Hong Kong Securities and Futures Commission, valued at **$0.13 million**, have no expiration date and do not require amortization[93](index=93&type=chunk) [10. Account Payables](index=23&type=section&id=10.%20ACCOUNT%20PAYABLES) This section provides a breakdown of accounts payable by business segment Account Payables by Segment (June 30, 2025 vs. December 31, 2024) | Segment | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trading Commission and Consulting service payment | $3.95 million | $1.87 million | | Fast-Moving Consumer Goods payment | $0.55 million | $- | | Supply Chain Financing/Trading payment | $- | $0.35 million | | Total | $4.50 million | $2.22 million | [11. Accrued Expenses and Other Payables](index=24&type=section&id=11.%20ACCRUED%20EXPENSES%20AND%20OTHER%20PAYABLES) This section details accrued expenses and other payables, highlighting changes due to legal settlements Accrued Expenses and Other Payables (June 30, 2025 vs. December 31, 2024) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Legal fee and other professionals | $2.28 million | $64.49 thousand | | Wages and employee reimbursement | $0.58 million | $0.23 million | | Provision for legal case | $- | $8.63 million | | Accruals | $0.83 million | $0.72 million | | Total | $3.69 million | $9.64 million | - The decrease in total payables is primarily due to the settlement of the FT Global lawsuit, where the Company paid **$1.97 million** in FY2024 and **$0.53 million** in H1 2025 towards the **$10.6 million** judgment[95](index=95&type=chunk) [12. Convertible Notes Payable](index=24&type=section&id=12.%20CONVERTIBLE%20NOTES%20PAYABLE) This section outlines the balances, interest, and conversions related to the company's convertible notes Convertible Notes Payable (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Beginning Balance | $0.55 million | $1.10 million | | Interest expenses | $13.65 thousand | $77.36 thousand | | Conversion | $(0.14) million | $(0.63) million | | Balance | $0.43 million | $0.55 million | - The Company issued a **$1.10 million convertible promissory note** in December 2023, with a floor price of **$2.272 per share**[96](index=96&type=chunk) - Conversions in 2025 amounted to **$0.14 million (61,205 shares)** and in 2024 to **$0.63 million (237,543 shares)**[96](index=96&type=chunk) [13. Related Party Transaction](index=25&type=section&id=13.%20RELATED%20PARTY%20TRANSACTION) This section discloses amounts due from and to related parties, including key executives Amounts Due From Related Parties (June 30, 2025) | Name | Amount (US$) | Relationship | Note | | :--- | :--- | :--- | :--- | | Hu Li | $20.00 thousand | CEO | Prepaid expenses, interest free, payment on demand | | Kai Li | $3.77 thousand | Corporate legal representative of a subsidiary | Prepaid expenses, interest free, payment on demand | | Ting Ouyang | $0.55 thousand | CFO | Prepaid expenses, interest free, payment on demand | | Total | $24.32 thousand | | | Amounts Due To Related Parties (December 31, 2024) | Name | Amount (US$) | Relationship | Note | | :--- | :--- | :--- | :--- | | Ting Alina Oyang | $8.87 thousand | CFO | Accrued expenses, interest free, payment on demand | | Total | $8.87 thousand | | | [14. Income Tax](index=25&type=section&id=14.%20INCOME%20TAX) This section discusses the company's income tax provisions, deferred tax assets, and applicable tax rates by jurisdiction - No income tax provision was made for the six months ended June 30, 2025 and 2024, as the Company had no U.S. taxable income[98](index=98&type=chunk) - The Company has not recognized deferred tax assets for certain subsidiaries due to uncertainties surrounding future utilization and insufficient future income[99](index=99&type=chunk) - PRC subsidiaries are subject to enterprise income tax rates of **2.5%, 10%, or 25%**, while Hong Kong subsidiaries are subject to **16.5%**[102](index=102&type=chunk)[103](index=103&type=chunk) [15. Share Based Compensation](index=26&type=section&id=15.%20SHARE%20BASED%20COMPENSATION) This section details the share-based compensation expenses incurred from equity plan grants - On March 10, 2025, the Company granted **500,000 common shares** under its 2024 Omnibus Equity Plan, resulting in a **$1.09 million expense** in Q1 2025[104](index=104&type=chunk) - On October 4, 2024, **211,000 common shares** were granted under the 2023 Omnibus Equity Plan, resulting in a **$0.67 million expense** in Q3 2024[105](index=105&type=chunk) [16. Common Stock](index=27&type=section&id=16.%20COMMON%20STOCK) This section provides information on outstanding warrants, private placements, and the impact of a reverse stock split - As of June 30, 2025, there were **4,211 outstanding warrants** (post-reverse stock split) with an exercise price of **$118.75/share**[107](index=107&type=chunk)[108](index=108&type=chunk) - In January 2024, the Company issued **215,054 common shares** in a private placement for net proceeds of **$258,064**[108](index=108&type=chunk) - The Company effected a **1-for-10 reverse stock split** on March 27, 2025, which became effective April 1, 2025[114](index=114&type=chunk) [17. Statutory Reserves and Restricted Net Assets](index=28&type=section&id=17.%20STATUTORY%20RESERVES%20AND%20RESTRICTED%20NET%20ASSETS) This section explains the restrictions on dividend payments from PRC subsidiaries and the amount of restricted net assets - PRC laws restrict dividend payments from subsidiaries to retained earnings and require a **10% annual appropriation to statutory reserve** until it reaches **50% of registered capital**[115](index=115&type=chunk) - The restriction on transferring net assets from PRC subsidiaries to the Company amounted to **$23.98 million** as of June 30, 2025[115](index=115&type=chunk) [18. Discontinued Operations](index=28&type=section&id=18.%20DISCONTINUED%20OPERATIONS) This section details the financial impact of the company's disposal of various subsidiaries and entities - The Company completed several disposals of subsidiaries between March 2024 and February 2025, including FTFT Super Computing Inc. (gain of **$3.42 million**) and multiple fintech/digital asset entities (gain of **$28.24 million**)[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk) Financial Performance of Discontinued Operations (Six Months Ended June 30, 2025 vs. 2024) | Metric | 2025 (6 Months) | 2024 (6 Months) | | :--- | :--- | | Revenues | $- | $8.38 million | | Gross Profit | $- | $3.01 million | | Loss from discontinued operations before income tax | $- | $(1.62) million | | Gain on disposal of discontinued operations | $28.24 million | $0.65 million | | Income (Loss) from Discontinued Operation | $26.37 million | $(0.94) million | Assets and Liabilities of Discontinued Operations (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | | Total assets related to discontinued operations | $- | $0.60 million | | Total liabilities related to discontinued operations | $- | $0.49 million | [19. Segment Reporting](index=30&type=section&id=19.%20SEGMENT%20REPORTING) This section provides financial data broken down by the company's three reportable business segments - The Company operates in three reportable segments: Fast-Moving Consumer Goods (FMCG), Trading Commission and Consulting service, and Supply Chain Financing and Trading[120](index=120&type=chunk) Revenue by Segment (Six Months Ended June 30, 2025 vs. 2024) | Segment | 2025 (6 Months) | 2024 (6 Months) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Fast-Moving Consumer Goods (FMCG) | $0.86 million | $- | $0.86 million | 100.00% | | Trading Commission and Consulting service | $0.29 million | $0.44 million | $(0.15) million | (33.72)% | | Supply Chain Financing/Trading | $1.34 thousand | $0.51 million | $(0.51) million | (99.74)% | | Total Revenue | $1.16 million | $0.95 million | $0.21 million | 22.16% | Gross Profit by Segment (Six Months Ended June 30, 2025 vs. 2024) | Segment | 2025 (6 Months) | 2024 (6 Months) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Fast-Moving Consumer Goods (FMCG) | $19.19 thousand | $- | $19.19 thousand | 100.00% | | Trading Commission and Consulting service | $0.24 million | $0.43 million | $(0.18) million | (42.63)% | | Supply Chain Financing/Trading | $1.34 thousand | $0.11 million | $(0.10) million | (98.74)% | | Total Gross Profit | $0.27 million | $0.53 million | $(0.27) million | (50.20)% | Segment Assets (June 30, 2025 vs. December 31, 2024) | Segment | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Supply Chain Financing/Trading | $1.90 million | $5.72 million | | Fast-Moving Consumer Goods | $98.95 thousand | $- | | Trading Commission and Consulting service | $7.27 million | $5.07 million | | Corporate and Unallocated | $15.30 million | $14.52 million | | Assets related to discontinued operation | $- | $0.60 million | | Total assets | $24.58 million | $25.90 million | [20. Debt Restructuring](index=31&type=section&id=20.%20DEBT%20RESTRUCTURING) This section details the settlement agreement with FT Global and the resulting gain on debt restructuring - The Company entered into a settlement and forbearance agreement with FT Global on June 17, 2025, to pay **$4.0 million** over 18 months and issue **1.7 million shares** of common stock[125](index=125&type=chunk) - This debt restructuring resulted in a recognized gain of **$3.07 million**[126](index=126&type=chunk) [21. Commitments and Contingencies](index=32&type=section&id=21.%20COMMITMENTS%20AND%20CONTINGENCIES) This section outlines the company's legal proceedings, including a settled litigation and ongoing shareholder lawsuits - The FT Global litigation was settled on June 17, 2025, for **$4.0 million cash** and **1.7 million common shares**, resolving federal court judgments[125](index=125&type=chunk)[192](index=192&type=chunk) - The Company is appealing a **$10.6 million judgment** in the FT Global case and a turnover order for unissued shares[128](index=128&type=chunk)[129](index=129&type=chunk) - Two shareholder lawsuits (LaBelle and Janzen) are pending in the District of New Jersey, alleging securities violations and breach of fiduciary duties related to the former CEO[130](index=130&type=chunk)[131](index=131&type=chunk) [22. Risks and Uncertainties](index=33&type=section&id=22.%20RISKS%20AND%20UNCERTAINTIES) This section discusses regulatory uncertainties in China and vendor concentration risks faced by the company - Substantial uncertainties exist regarding the interpretation and application of PRC laws and regulations affecting the Company's business[132](index=132&type=chunk) - For the six months ended June 30, 2025, no customer accounted for more than **10% of total revenue**, but two vendors accounted for **89.21% and 10.79% of total purchases**, indicating vendor concentration risk[133](index=133&type=chunk)[134](index=134&type=chunk) [23. Subsequent Events](index=33&type=section&id=23.%20SUBSEQUENT%20EVENTS) This section reports significant events occurring after the reporting period, including equity sales agreements and a planned shareholder meeting - On July 24, 2025, the Company entered into an Equity SPA to sell up to **15 million common shares** at **$2.00 per share**, aiming for gross proceeds of up to **$30 million**, subject to shareholder approval[135](index=135&type=chunk)[136](index=136&type=chunk) - On July 28, 2025, the Company entered another agreement to issue and sell up to **$10 million** in common stock, having received approximately **$0.80 million** in proceeds[137](index=137&type=chunk)[138](index=138&type=chunk) - A special shareholders meeting is scheduled for September 2, 2025, to approve these transactions and increase authorized common shares from **6 million to 600 million**[139](index=139&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, highlighting key business changes, segment performance, and liquidity [Overview of Our Business](index=35&type=section&id=Overview%20of%20Our%20Business) This section describes the company's structure, business transformation, and recent strategic changes - The Company is a Florida holding company with no material operations of its own, conducting business through subsidiaries, primarily in China and Hong Kong[143](index=143&type=chunk) - The Company has shifted from fruit juice manufacturing to supply chain financing and trading, commission-based trading and consulting services, and fast-moving consumer goods (FMCG)[144](index=144&type=chunk)[145](index=145&type=chunk) - Recent strategic changes include exiting VIE operations in China, disposing of Hong Kong asset management and cryptocurrency mining operations, and dissolving multiple subsidiaries[147](index=147&type=chunk) [Supply Chain Financing Service and Trading in China](index=36&type=section&id=Supply%20Chain%20Financing%20Service%20and%20Trading%20in%20China) This section details the company's supply chain financing and trading activities for bulk commodities and its brokerage services in Hong Kong - The Company provides supply chain financing and trading services for bulk commodities like coal, aluminum ingots, sand, and steel, primarily serving large state-owned or listed companies[148](index=148&type=chunk)[151](index=151&type=chunk) - The business model involves obtaining creditor's rights or commodity goods rights, providing working capital, and using various financing channels (banks, factoring, ABS) to manage risk and expand[149](index=149&type=chunk)[151](index=151&type=chunk) - The Company also provides brokerage and investment banking services in Hong Kong through FTFT International Securities and Futures Limited, holding Type 1, 2, and 4 financial licenses[153](index=153&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, comparing revenues, gross profits, and expenses across different periods [Comparison of Three Months ended June 30, 2025 and 2024](index=37&type=section&id=Comparison%20of%20Three%20Months%20ended%20June%2030%2C%202025%20and%202024) This section compares the company's financial performance for the three months ended June 30, 2025, against the same period in 2024 Revenue Breakdown (Three Months Ended June 30, 2025 vs. 2024) | Segment | 2025 (3 Months) | 2024 (3 Months) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Fast-Moving Consumer Goods (FMCG) | $0.39 million | $- | $0.39 million | 100.00% | | Trading Commission and Consulting service | $0.22 million | $0.20 million | $13.28 thousand | 6.50% | | Supply Chain Financing/Trading | $- | $64.67 thousand | $(64.67) thousand | (100.00)% | | Total Revenue | $0.61 million | $0.27 million | $0.34 million | 125.02% | Gross Profit Breakdown (Three Months Ended June 30, 2025 vs. 2024) | Segment | 2025 (3 Months) | 2024 (3 Months) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Fast-Moving Consumer Goods (FMCG) | $10.33 thousand | $- | $10.33 thousand | 100.00% | | Trading Commission and Consulting service | $0.18 million | $0.20 million | $(19.35) thousand | (9.88)% | | Supply Chain Financing/Trading | $- | $62.03 thousand | $(62.03) thousand | (100.00)% | | Total Gross Profit | $0.19 million | $0.26 million | $(71.05) thousand | (27.56)% | - Total operating expenses increased by **$0.20 million (15.17%)** to **$1.50 million**, primarily due to a **$0.67 million increase in bad debt provision**, partially offset by a **$0.57 million decrease in general and administrative expenses**[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk) - Net other income significantly increased by **$2.93 million (1,259.48%)** to **$3.16 million**, mainly due to a **$3.1 million gain on debt restructuring**[162](index=162&type=chunk) - Net income from continuing operations increased by **$2.66 million (328.85%)** to **$1.85 million**[164](index=164&type=chunk) [Comparison of Six Months ended June 30, 2025 and 2024](index=38&type=section&id=Comparison%20of%20Six%20Months%20ended%20June%2030%2C%202025%20and%202024) This section compares the company's financial performance for the six months ended June 30, 2025, against the same period in 2024 Revenue Breakdown (Six Months Ended June 30, 2025 vs. 2024) | Segment | 2025 (6 Months) | 2024 (6 Months) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Fast-Moving Consumer Goods (FMCG) | $0.86 million | $- | $0.86 million | 100.00% | | Trading Commission and Consulting service | $0.29 million | $0.44 million | $(0.15) million | (33.72)% | | Supply Chain Financing/Trading | $1.34 thousand | $0.51 million | $(0.51) million | (99.74)% | | Total Revenue | $1.16 million | $0.95 million | $0.21 million | 22.16% | Gross Profit Breakdown (Six Months Ended June 30, 2025 vs. 2024) | Segment | 2025 (6 Months) | 2024 (6 Months) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Fast-Moving Consumer Goods (FMCG) | $19.19 thousand | $- | $19.19 thousand | 100.00% | | Trading Commission and Consulting service | $0.24 million | $0.43 million | $(0.18) million | (42.63)% | | Supply Chain Financing/Trading | $1.34 thousand | $0.11 million | $(0.10) million | (98.74)% | | Total Gross Profit | $0.27 million | $0.53 million | $(0.27) million | (50.20)% | - Total operating expenses surged by **$29.25 million (841.35%)** to **$32.72 million**, driven by a **$28.32 million increase in bad debt provision** and a **$1.09 million stock compensation expense**[170](index=170&type=chunk)[171](index=171&type=chunk)[174](index=174&type=chunk) - Net other income increased by **$4.57 million (378.41%)** to **$3.36 million**, primarily due to a **$3.07 million gain on debt restructuring**[175](index=175&type=chunk) - Net loss from continuing operations increased by **$24.94 million (600.94%)** to **$29.09 million**[177](index=177&type=chunk) - Gain on disposal of discontinued operations was **$28.24 million**, significantly higher than **$0.65 million** in the prior year[178](index=178&type=chunk) Earnings Per Share (Six Months Ended June 30, 2025 vs. 2024) | Metric | 2025 (6 Months) | 2024 (6 Months) | | :--- | :--- | | Basic EPS from continuing operation | $(10.27) | $(2.08) | | Basic EPS from discontinued operation | $9.31 | $(0.47) | | Diluted EPS from continuing operation | $(10.27) | $(2.08) | | Diluted EPS from discontinued operation | $9.30 | $(0.47) | [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's ability to meet its short-term and long-term financial obligations, including cash and working capital trends Cash and Working Capital (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and restricted cash | $5.79 million | $4.77 million | $1.02 million | | Working capital | $11.47 million | $7.60 million | $3.87 million | - Net cash used in operating activities increased by **$16.93 million** to **$27.73 million**, primarily due to increased net loss from continuing operations, decreased accrued expenses, and decreased other receivables[182](index=182&type=chunk) - Net cash provided by investing activities increased by **$0.41 million** to **$0.62 million**, driven by increased repayment for debt investment and loan receivables[183](index=183&type=chunk) - Net cash used in financing activities was **$0.01 million**, a decrease of **$2.46 million** compared to the prior year, mainly due to reduced proceeds from common stock issuance[184](index=184&type=chunk) [Off-balance sheet arrangements](index=42&type=section&id=Off-balance%20sheet%20arrangements) This section confirms the absence of any off-balance sheet arrangements as of the reporting date - As of June 30, 2025, the Company did not have any off-balance sheet arrangements[185](index=185&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section states that there are no applicable quantitative and qualitative disclosures about market risk for the company - Not applicable[186](index=186&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management evaluated the effectiveness of disclosure controls and procedures, concluding they were not effective as of June 30, 2025, due to a material weakness in internal control over financial reporting related to insufficient accounting personnel with U.S. GAAP and SEC reporting experience. Remediation efforts are underway - Disclosure controls and procedures were **not effective** as of June 30, 2025, due to a **material weakness** in internal control over financial reporting[187](index=187&type=chunk) - The material weakness is attributed to a lack of sufficient accounting personnel with appropriate knowledge, experience, and training in U.S. GAAP and SEC reporting requirements[187](index=187&type=chunk) - Remediation actions include engaging an outside consultant, adopting new policies and procedures, and arranging internal control training for employees and management[188](index=188&type=chunk) [PART II. OTHER INFORMATION](index=43&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) Provides updates on significant legal proceedings, including the FT Global litigation, which was settled for $4.0 million cash and 1.7 million common shares, and ongoing shareholder lawsuits (LaBelle and Janzen) alleging securities violations and breach of fiduciary duties - The FT Global litigation was settled on June 17, 2025, for **$4.0 million in cash payments** over 18 months and the issuance of **1.7 million common shares** (0.34 million to FT Global, 0.06 million to legal counsel, and rights to 1.3 million additional shares)[192](index=192&type=chunk) - The LaBelle case is a putative securities class action alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act due to materially false or misleading statements related to the former CEO's alleged manipulative trading and non-disclosure of beneficial ownership[194](index=194&type=chunk) - The Janzen action is a consolidated shareholder derivative case alleging breach of fiduciary duties by officers and directors for failing to prevent misconduct similar to that in the LaBelle case[195](index=195&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) This section states that risk factors are not applicable for this quarterly report, implying no material changes from previously disclosed risks - Not applicable[196](index=196&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not make any previously undisclosed unregistered sales of equity securities during the six months ended June 30, 2025 - The Company did not make any sales of unregistered securities during the six months ended June 30, 2025, that were not previously disclosed[197](index=197&type=chunk) [Item 3. Defaults upon Senior Securities](index=44&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[198](index=198&type=chunk) [Item 4. Mine Safety Disclosure](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosure) This item is not applicable to the company - Not applicable[199](index=199&type=chunk) [Item 5. Other Information](index=44&type=section&id=Item%205.%20Other%20Information) No other information was reported in this section - None[200](index=200&type=chunk) [Item 6. Exhibits](index=44&type=section&id=Item%206.%20Exhibits) Lists the exhibits filed with the Form 10-Q, including certifications of principal executive and financial officers, and XBRL-related documents - The report includes certifications of Principal Executive Officer and Principal Financial Officer, as well as Inline XBRL Instance, Schema, Calculation, Definition, Label, and Presentation Linkbase Documents[201](index=201&type=chunk) [SIGNATURES](index=45&type=section&id=SIGNATURES) This section contains the official signatures of the company's principal executive and financial officers, certifying the report's accuracy - The report was signed by Hu Li, Chief Executive Officer, and Ting Alina Oyang, Chief Financial Officer, on August 19, 2025[204](index=204&type=chunk)

Core Insights - Future FinTech Group Inc. has entered a strategic cooperation agreement with MaxQuant AI to enhance financial product innovation and create an AI-driven intelligence system for financial services [1][5] - Future Securities, a subsidiary of Future FinTech, is licensed by the Hong Kong Securities and Futures Commission and has over 15 years of experience in the financial services industry [2] - The MaxQuant AI platform features advanced technologies including a News Intelligence Engine, Predictive Analytics Core, and Cross-Asset Intelligence to identify investment opportunities across various asset classes [3] Company Overview - Future FinTech Group Inc. operates as a comprehensive financial and digital technology service provider, offering brokerage and investment banking services in Hong Kong and engaging in supply chain trading and finance in China [6] Collaboration Details - The partnership aims to leverage the strengths of both companies to drive innovation in the financial services industry and enhance investor experiences [5] - Future Securities plans to launch a '6-Months Free' trial for the MaxQuant AI platform, allowing investors to access its features without cost during this period [2] Technology and Innovation - The MaxQuant AI platform has shown exceptional accuracy in identifying investment opportunities during internal testing, providing critical timing points for investors [4] - The collaboration is expected to inject fresh momentum into the digital transformation of financial services and create greater value for investors [5]

Core Viewpoint - FTFT.US's subsidiary, 富册国际证券期货有限公司, has signed a strategic cooperation agreement with MaxQuant AI Platform to develop an intelligent stock selection system for global investors, combining professionalism and compliance [1][2]. Group 1: Partnership Details - The collaboration has been in development for three years, resulting in a system that leverages both companies' expertise in finance and AI technology [1]. - 富册证券 is a licensed institution by the Hong Kong Securities and Futures Commission, holding qualifications for securities trading, futures trading, and providing advice on securities trading [1]. Group 2: System Features - The intelligent stock selection system includes a News Intelligence Engine for precise asset analysis and real-time market dynamics capture [2]. - Predictive Analytics Core utilizes a multi-agent AI system to generate high-confidence trading signals, enhancing investment decision-making [2]. - Cross-Asset Intelligence analyzes various assets, including stocks, commodities, forex, and cryptocurrencies, to identify potential investment opportunities [2]. Group 3: Internal Testing and Future Plans - During internal testing, the system demonstrated accurate judgment capabilities, effectively identifying key investment moments such as buy signals, stop-loss points, and take-profit points [2]. - The partnership aims to explore innovations in financial products and upgrades in customer service, enhancing the overall investor experience [2]. Group 4: Leadership Perspectives - MaxQuant AI Platform's founder, Jeffery Zeng, expressed optimism about the partnership, highlighting its potential to drive digital transformation and innovation in the financial industry [3]. - 富册证券's CEO, 李虎, emphasized that the collaboration represents a significant move in financial technology, aiming to provide valuable investment services and enhance the company's competitiveness in the industry [3].

Core Viewpoint - Future FinTech Group Inc. is taking significant steps to expand its financial services by applying for a Hong Kong Type 1 Virtual Asset Service Provider license, which will enhance its capabilities in the emerging fintech sector [1][2][4]. Group 1: Company Developments - Future FinTech's subsidiary, Future Securities, has signed a commission agreement with a compliance consultant to assist in applying for the VASP license and a Type 9 Asset Management License [1][2]. - The application for the VASP license is part of a broader strategy to enhance the company's service offerings in the virtual asset market, which is experiencing rapid growth [4][5]. - Future Securities has established a dedicated team to ensure compliance and effective preparation of application materials, collaborating with legal and compliance advisors [6]. Group 2: Market Context - The global virtual asset market is expanding, attracting significant attention and opportunities, particularly in Hong Kong, which is recognized for its strong regulatory framework and proactive approach to virtual assets [4][5]. - The VASP license will allow Future Securities to operate within a compliance framework, providing clients with diversified investment options and enhancing the company's market competitiveness [5][7]. Group 3: Strategic Vision - The CEO of Future FinTech emphasized that obtaining the VASP license is a strategic move that will enhance the company's reputation and customer trust while allowing it to capitalize on opportunities within Hong Kong's financial ecosystem [7][8]. - Future Securities aims to innovate in the virtual asset field while leveraging its strengths in traditional finance to build a unique service platform [8][9].

Core Viewpoint - The company, FTFT, is taking significant steps to expand its financial services by applying for a Virtual Asset Service Provider (VASP) license in Hong Kong, which will allow it to operate in the emerging virtual asset market [1][2][3] Group 1: Company Actions - FTFT's wholly-owned subsidiary, FTFT International Securities Limited, has signed an agreement with a compliance consultant to apply for the VASP license and a 9th asset management license [1] - The application aims to cover both traditional and virtual asset management services, indicating a strategic move to diversify offerings [1][2] - The company has established a dedicated team to prepare the application materials and is collaborating closely with legal and compliance advisors to ensure a smooth application process [2] Group 2: Market Context - The global virtual asset market is rapidly growing, and FTFT recognizes the potential and opportunities within this sector [2] - Hong Kong's status as an international financial center with a robust regulatory framework is conducive to the development of virtual assets [2] - The successful acquisition of the VASP license will enhance FTFT's market competitiveness and industry influence, providing clients with more diverse investment options [2] Group 3: Leadership Perspective - The CEO of FTFT, Li Hu, emphasized that the application for the VASP license is a strategic move for the company's development and reflects Hong Kong's proactive approach to virtual asset regulation [3] - The company aims to leverage its traditional financial strengths to create a unique virtual asset service platform while maintaining a strong focus on risk management and compliance [3] - FTFT is committed to contributing to the healthy development of Hong Kong's virtual asset market through innovation and improved service quality [3]

Core Insights - FTFT has officially established a "Real World Asset Tokenization Division" (RWA Division) to explore the technical pathways and compliance feasibility for issuing stablecoins and tokenizing core assets under its umbrella [1] - The company aims to apply for regulatory licenses related to the issuance and circulation of stablecoins, marking a new phase in the integration of RWA and stablecoin business under the Web 3.0 framework [1] Group 1 - The RWA Division will be led by former Blockchain Division President Xu Kai, who will oversee strategic planning and daily management [1] - The primary focus of the division includes communication with U.S. regulatory bodies to apply for relevant licenses for RWA and stablecoins, as well as exploring the feasibility of tokenizing core or potential acquisition assets [1][2] - Former Vice President of FTFT Securities, Chen Jia, has been appointed as Vice President of the RWA Division, responsible for communication with Hong Kong regulatory bodies and lawyers, and applying for additional virtual asset-related licenses [1] Group 2 - FTFT CEO Li Hu stated that the next major task is to build a technical framework for stablecoin issuance and management, evaluating underlying assets such as gold and Bitcoin to be linked with U.S. Treasury bonds [2] - The RWA Division will lead the design and implementation of the on-chain process for real-world assets, establishing a comprehensive asset valuation, risk management, and trading mechanism [2] - The company's blockchain chief advisor, Professor Xiong Yu, will assist in communication and collaboration with regulatory agencies and partners to ensure the healthy development of stablecoin and RWA business in compliance [2]