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]

Core Insights - Future FinTech Group Inc. has established a Real-World Asset Tokenization Division to explore stablecoin issuance and asset tokenization under Web3.0 architecture [1] - The division aims to obtain regulatory licenses for stablecoins and tokenized assets while ensuring compliance with relevant authorities [2][3] - The company plans to evaluate potential underlying assets such as gold, Bitcoin, and U.S. Treasury bonds to back its stablecoin and RWA issuance [4] Company Structure and Leadership - Mr. Kai Xu has been appointed as President of the RWA Division, overseeing strategic planning and daily management [2] - Ms. Jia Chen has been appointed Vice President of the RWA Division, focusing on compliance and regulatory communication with Hong Kong authorities [3] - CEO Hu Li emphasized the importance of building a robust technical architecture for stablecoin management and asset valuation [4] Strategic Goals - The RWA Division will lead the design and implementation of on-chain processes for real-world assets, including risk management and trading mechanisms [4] - The company aims to coordinate its reserve crypto assets and digital asset trading business as part of its integrated development strategy [2][4] - Professor Yu Xiong will assist in engaging with regulatory agencies and strategic partners to support the sustainable growth of the stablecoin and RWA businesses [4]

Core Viewpoint - Future FinTech Group Inc. has appointed Professor Yu Xiong as Chief Blockchain Advisor to guide the company's entry into stablecoins and real-world asset (RWA) businesses, highlighting its strategic ambitions in the blockchain and fintech sectors [1][6][8]. Company Overview - Future FinTech Group Inc. (NASDAQ: FTFT) is a comprehensive financial and digital technology service provider, engaging in brokerage and investment banking services in Hong Kong, as well as supply chain trading and finance businesses in China [9]. Appointment of Professor Yu Xiong - Professor Yu Xiong is a globally recognized blockchain expert and Associate Pro-Vice-Chancellor for Global Engagement at the University of Surrey, with extensive experience in blockchain research and applications [2][3]. - His previous roles include Chair of the Advisory Committee for the UK Parliament's All-Party Parliamentary Group on the Metaverse and Web 3.0, and co-Founder of the Endless Protocol Foundation [2]. Professor Xiong's Contributions - Professor Xiong has facilitated significant investments, such as an £8 million investment to establish the Newcastle Tsinghua Science Park, impacting ecosystem innovation in northern England [4]. - He has contributed to the growth of over 40 companies in the UK and has held senior positions in various prestigious institutions [3][4]. Strategic Focus on Stablecoins and RWAs - Stablecoins are recognized as a foundational component of the cryptocurrency market, providing stability and being widely used in cross-border payments and decentralized finance (DeFi) [7]. - RWAs are seen as a bridge between traditional finance and cryptocurrencies, offering immense market potential by digitizing and tokenizing real-world assets [6][7]. Future Ambitions - The company aims to leverage Professor Xiong's expertise to explore innovations in stablecoins and RWA businesses, with a focus on R&D, compliance, and market expansion [8]. - CEO Hu Li emphasized that the decision to enter these new asset areas is based on deep insights into market developments and a strategy to capitalize on transformative changes in the sector [7][8].

熊教授说:"稳定币和RWA作为加密货币领域的重要创新方向，都展现出了巨大的发展潜力，但也都面临 着各自的挑战。稳定币在加密货币市场中已占据举足轻重的地位。它与法定货币或其他资产挂钩，以维 持相对稳定的价值，这一特性使其成为加密生态系统中不可或缺的基础组成部分。而RWA通过区块链 技术将现实世界中的资产代币化，打通了传统金融与加密货币之间的桥梁，具有巨大的市场潜力。 我很高兴有机会与富册金科合作。公司在区块链和金融科技领域有相当的抱负。我非常期待与公司团队 合作，在稳定币和RWA业务创新方面探索，努力将FTFT建设一个可持续发展创新型金融科技企业。" 智通财经APP获悉，一家领先的综合性金融及数字技术服务提供商--富册金科（FTFT.US）今天宣布聘 请英国萨里大学协理副校长、区块链与元宇宙应用研究院院长熊榆教授担任首席区块链顾问，旨在为其 进军稳定币与现实世界资产（RWA）业务提供强大的技术支持与战略指导。 熊榆教授是萨里大学主管对外事务的协理副校长, 全球顶级区块链领域专家。他还是萨里区块链和元宇 宙应用研究院的创始院长。在区块链领域，熊教授曾担任英国议会元宇宙和Web 3.0跨党派小组咨询委 员会主席，以 ...

Core Viewpoint - Future Fintech Group Inc. has announced significant changes in its management and Board of Directors, including the resignation of key executives and the appointment of new leadership to enhance financial management and strategic direction [1][2][5]. Management Changes - On June 20, 2025, Mr. Ming Yi (CFO), Mr. Fuyou Li (Chairman), and Ms. Ying Li (Director and VP) resigned from their positions, with no disagreements reported regarding company operations [2]. - Ms. Ting (Alina) Ouyang has been appointed as the new CFO and a director of the Board, while Mr. David Xu has been appointed as the new Chairman of the Board [2][5]. New Leadership Profiles - Ms. Ting Ouyang, age 40, has over 10 years of senior financial management experience, previously serving as Financial Controller and Internal Control Manager at Future Fintech. She is a Certified Management Accountant and has expertise in financial disclosures and ESG reporting [3]. - Mr. David Xu, age 38, has extensive experience in financial services and investment banking, having worked at China CITIC Bank and China Construction Bank, focusing on public listings and funding for companies [4]. Company Vision - CEO Li Hu expressed gratitude to departing executives and emphasized the importance of the new leadership in executing cost-optimization strategies and enhancing financial management efficiency. The company aims to embark on a new chapter of growth and increase long-term value for stakeholders under the new leadership [5].

Business Transformation - The company transformed its business from fruit juice manufacturing to supply chain financing services and trading in China, asset management in Hong Kong, and cryptocurrency mining in the U.S. due to increased production costs and tightened environmental laws in China[142]. - The company sold its ownership in Nice Talent Asset Management Limited for HK$2.4 million (approximately $300,000) in November 2024, exiting the asset management business in Hong Kong[142]. - The company completed the sale of FTFT SuperComputing for a total consideration of $1,973,072.24, including the assumption of obligations totaling $973,072.24 and a cash payment of $1,000,000[149]. - The company sold all interests in multiple subsidiaries for $25,000 through a court-ordered auction in December 2024[150]. - The company dissolved its VIE E-Commerce Tianjin in March 2024 due to minimal revenue generation since 2021[142]. - The company acquired 100% equity interest in Alpha International Securities (Hong Kong) Limited, which holds multiple financial licenses, closing the transaction in November 2023[147]. - The company’s shareholding in Nice Talent Asset Management Limited decreased from 90% to 42.86% due to new share issuances before the sale[145]. - The company attempted to develop cryptocurrency mining operations in Paraguay but dissolved the entity in December 2023 due to failure to execute the business plan[146]. Regulatory and Legal Risks - The company faced legal and operational risks due to regulatory changes in China, which could materially impact its business and financial outlook[143]. - The company is still processing filings with the CSRC for its offerings under the New Overseas Listing Rules, which may subject it to fines for non-compliance[144]. Financial Performance - Total revenue for the three months ended March 31, 2025, was $552,977, a decrease of 18.58% from $679,189 in the same period of 2024[162]. - Supply chain financing/trading revenue increased by 8.16% to $477,792 for the three months ended March 31, 2025, compared to $441,764 in 2024[162]. - Gross profit decreased to $78,618 for the three months ended March 31, 2025, down from $275,094 in the same period of 2024, with a gross margin of 14.22%[166]. - Operating expenses surged to $31,225 for the three months ended March 31, 2025, compared to $2,177 in 2024, reflecting a significant increase in bad debt provision[167]. - Net loss from continuing operations increased to $30.95 million for the three months ended March 31, 2025, up from $3.34 million in 2024[172]. - Gain on disposal of discontinued operations was $28.24 million for the three months ended March 31, 2025[173]. - Cash and restricted cash as of March 31, 2025, totaled $4.44 million, a decrease from $4.77 million as of December 31, 2024[175]. - Net cash used in operating activities increased to $28.84 million for the three months ended March 31, 2025, from $7.39 million in the same period of 2024[177]. - Net cash provided by financing activities was $6,093 for the three months ended March 31, 2025, an increase of $2.47 million compared to cash used in financing activities in 2024[179]. Stock and Shareholder Actions - The Company authorized a 1-for-10 reverse stock split, reducing authorized shares from 60 million to 6 million, effective April 1, 2025[152].

Financial Performance - Future Fintech Group reported a fiscal year-end revenue of $50 million, representing a 20% increase compared to the previous year[10]. - Future Fintech anticipates a 25% increase in customer acquisition through enhanced marketing strategies and partnerships in the upcoming year[10]. - Future Fintech's operational costs are projected to rise by 15% due to inflation and increased regulatory compliance expenses[13]. Business Strategy - The company aims to expand its supply chain financing services in China, targeting a market growth rate of 15% annually[13]. - Future Fintech plans to introduce three new financial technology products in the next fiscal year, aiming for a 10% market penetration within the first year of launch[10]. - The company is exploring potential mergers and acquisitions to enhance its market position and diversify its service offerings[10]. Cybersecurity and Compliance - The company has allocated $5 million for cybersecurity enhancements to mitigate risks associated with increasing cyber threats[13]. - Cybersecurity risks may lead to increasing costs for the company as it seeks to minimize these risks and respond to incidents[18]. - The company is not in compliance with the New Overseas Listing Rules, which may result in sanctions from the China Securities Regulatory Commission[20]. - The company faces uncertainties regarding compliance with the PRC Securities Law, which may affect its ability to conduct offerings and operations[20]. - The Holding Foreign Companies Accountable Act poses regulatory risks that could lead to the delisting of the company's common stock from exchanges[20]. Legal and Regulatory Risks - Future Fintech is currently involved in litigation with FT Global Capital, which could impact its financial condition depending on the outcome[13]. - The company is subject to significant risks, including legal disputes and regulatory proceedings that could adversely affect its financial condition and operations[18]. - The company has been at risk of delisting from the NASDAQ Stock Market in recent years[20]. - Future Fintech's stock has faced delisting risks from NASDAQ, which could significantly affect its market valuation[20]. - The company is authorized to issue blank check preferred stock, which may adversely affect the rights of common stockholders[20]. Market Environment - The supply chain financing service industry in China is rapidly evolving and increasingly competitive, which may impact the company's growth and customer retention[18]. - Changes in China's economic, political, or social conditions could materially affect the company's business and results of operations[18].

Core Viewpoint - Future Fintech Group Inc. is enhancing its Blockchain Business Division to focus on developing new blockchain businesses, including high-performance computing, web3 technology, and artificial intelligence, while continuing to manage existing operations [1][2]. Group 1: Company Updates - The Blockchain Business Division was established in December 2021 to oversee the company's blockchain initiatives and strategic growth [1]. - Mr. Li Hu, CEO, emphasized the company's commitment to digital financial products and services, leveraging AI to impact the web3 industry [3]. - Mr. Kai Xu has been appointed as President of the Blockchain Business Division, with a focus on web3 expansion, while Mr. Weifang Peng will serve as Vice President, concentrating on blockchain computing power and related business development [3]. Group 2: Business Operations - Future Fintech Group Inc. operates in various sectors, including asset management, brokerage, investment banking in Hong Kong, cross-border payments in the UK, and supply chain trading and finance in China [4]. - The company has also initiated digital asset mining farm operations in the United States, aiming to enhance financial services through digital and internet technology [4].

Business Transformation - The company has transformed its business from fruit juice manufacturing to financial technology services, including supply chain financing and asset management [196]. - The company completed the acquisition of Khyber Money Exchange Ltd. for €685,000, which is now named FTFT Finance UK Limited [204]. - The company established Future Trading (Chengdu) Co., Ltd. for bulk commodities supply chain financing services and trading [202]. - The company initiated coal supply chain financing services in Q2 2021, aluminum ingots in Q3 2021, and sand and steel in Q1 2023 [210]. - The company attempted to develop cryptocurrency mining operations in Paraguay but dissolved FTFT Paraguay S.A. in December 2023 due to failure to execute the business plan [203]. - The company has eight directly controlled subsidiaries across various jurisdictions, including DigiPay FinTech Limited and FTFT UK Limited [209]. Financial Performance - Revenue for the three months ended September 30, 2024, decreased to approximately $5.18 million from approximately $23.74 million for the same period in 2023, a decline of 78.20% [230]. - Supply Chain Financing/Trading revenue dropped significantly by 97.85%, from $19.99 million in 2023 to $428,875 in 2024, primarily due to decreased demand in the real estate and infrastructure sectors in China [233]. - Asset Management Service revenues increased by 13.38%, rising from $3.27 million in 2023 to $3.71 million in 2024, attributed to hiring more experienced account managers [231]. - Other revenues increased by 118.75%, from $0.47 million in 2023 to $1.04 million in 2024, mainly due to increased debt recovery consulting service fees and U.S. dollar bond service income [232]. - Overall gross profit increased to $1.51 million for the three months ended September 30, 2024, up from $1.41 million in 2023, with an overall gross margin of 29.25%, an increase of 22.42% from 5.95% [235]. - Total revenue for the nine months ended September 30, 2024, decreased to approximately $14.5 million from approximately $30.82 million for the same period of the last year, a decline of 52.95% [244]. - Asset management service revenue increased by $2.18 million from $9.69 million for the nine months ended September 30, 2023, to $11.88 million for the same period of 2024, representing a growth of 22.54% [245]. - Gross profit increased to $5.06 million for the nine months ended September 30, 2024, from $3.86 million for the same period of 2023, with an overall gross margin of 34.89%, up from 12.51% [248]. Expenses and Losses - General and administrative expenses decreased by 12.45%, from $3.79 million in 2023 to $3.32 million in 2024, mainly due to reduced professional service fees and rental costs [236]. - Bad debt provision increased by $3.37 million in 2024 compared to the same period in 2023, due to changes in accounting treatment methods [237]. - Research and development expenses decreased slightly to $655 in 2024, reflecting a reduction in salaries [238]. - The tax provision decreased by $10,735 for the three months ended September 30, 2024, primarily due to decreased revenue [241]. - General and administrative expenses increased by $0.54 million, or 5.62%, to $10.13 million for the nine months ended September 30, 2024, primarily due to increased professional service fees [249]. - Net loss from continuing operations increased by $4.63 million from $6.07 million for the nine months ended September 30, 2023, to $10.70 million for the same period of 2024 [258]. - Basic and diluted loss per share from continuing operations was $0.53 for the nine months ended September 30, 2024, compared to a loss of $0.40 for the same period of 2023 [260]. Cash Flow and Working Capital - Net cash used in operating activities increased by $6.10 million to $13.52 million for the nine months ended September 30, 2024, from $7.43 million for the same period of the last fiscal year [263]. - Working capital decreased by $10.85 million to $28.29 million as of September 30, 2024, from $39.14 million as of September 30, 2023 [262]. - Net cash provided in financing activities increased by $4.23 million to $1.32 million for the nine months ended September 30, 2024, compared to cash used in financing activities of $2.91 million during the same period of 2023 [265]. Regulatory and Compliance Issues - The company is processing filings with the CSRC for its offerings under the New Overseas Listing Rules, which may subject it to fines for non-compliance [199]. - The company has faced legal and operational risks due to regulatory changes in China, which could materially impact its operations and stock value [198]. - The company completed the deregistration and dissolution of its VIE, E-Commerce Tianjin, on March 7, 2024, due to minimal revenue since 2021 [196]. - The company plans to close down its CCM Shopping Mall business, which generated minimal revenue since 2021, completing deregistration by March 7, 2024 [228].

Business Transition and Acquisitions - The company has transitioned from fruit juice manufacturing to financial technology services, including supply chain financing and cryptocurrency mining[159]. - The company completed the acquisition of Khyber Money Exchange Ltd. for €685,000, which is now named FTFT Finance UK Limited[166]. - The company acquired Alpha International Securities (Hong Kong) Limited, enhancing its financial services capabilities in Hong Kong[167]. - FTFT International Securities and Futures Limited was acquired in November 2023, expanding the company's brokerage and investment banking services in Hong Kong[179]. - FTFT Finance, acquired in September 2022, is a pioneer in UK money remittance services, providing competitive rates and no fees for remittances to Pakistan[180]. Financial Performance - Total revenue for the three months ended June 30, 2024, was $4,202,888, an increase of 12.94% compared to $3,721,250 in the same period of 2023[184]. - Total revenue for the six months ended June 30, 2024, was $9,325,855, an increase of 31.62% from $7,085,700 in the same period of 2023[198]. - Asset management service revenue increased by $536,988, or 16.50%, from $3,255,065 in 2023 to $3,792,053 in 2024[184]. - Asset management service revenue increased by $1,746,794, or 27.22%, from $6,418,129 in 2023 to $8,164,923 in 2024[198]. - Gross profit for the three months ended June 30, 2024, was $1,594,124, up from $1,242,475 in 2023, with an overall gross margin of 37.93%, an increase of 4.54%[188]. - Gross profit for the six months ended June 30, 2024, rose to $3,545,396, up from $2,444,091 in 2023, with a gross margin of 38.02%, an increase of 3.52%[202]. - Net loss from continuing operations increased by $260,000, from $1,540,000 in 2023 to $1,800,000 in 2024, primarily due to increased operating expenses[196]. - Net loss from continuing operations increased by $2,090,000 to $5,770,000 for the six months ended June 30, 2024, compared to $3,680,000 in 2023[211]. Operational Changes and Challenges - The company underwent a 1-for-5 reverse stock split, reducing authorized shares from 300 million to 60 million[168]. - The company dissolved its VIE E-Commerce Tianjin due to minimal revenue generation since 2021, completing the process in March 2024[159][169]. - The company has shifted its business model for its Chain Cloud Mall platform to an "Enterprise Communication as A Service" model, but it has still generated minimal revenue[169]. - The company is in the process of complying with new overseas listing rules, which may subject it to fines for non-compliance[162]. - The company faced significant operational risks due to regulatory changes in China, which could impact its ability to conduct business and accept foreign investments[161][162]. - The company plans to close down its CCM Shopping Mall business, which generated minimal revenue since 2021, completing the deregistration by March 7, 2024[182]. Cash Flow and Expenses - Cash and restricted cash decreased to $9,820,000 as of June 30, 2024, down from $19,020,000 as of December 31, 2023[214]. - Net cash used in operating activities increased by $4,980,000 to $11,940,000 for the six months ended June 30, 2024, from $6,960,000 in 2023[215]. - Net cash provided in financing activities was $2,340,000 for the six months ended June 30, 2024, an increase of $2,360,000 compared to cash used in financing activities of $10,000 in 2023[216]. - General and administrative expenses rose by $970,000, or 39.87%, to $3,387,000 for the three months ended June 30, 2024, compared to $2,422,000 in 2023[190]. - Operating expenses increased to $7,788,000 for the six months ended June 30, 2024, compared to $5,200,000 in 2023, representing an increase of 49.77%[204]. - Research and development expenses decreased to $2,000 for the six months ended June 30, 2024, from $322,000 in 2023, reflecting a significant reduction in spending[206]. Legal Matters - The court awarded FT Global a judgment of $10,598,379.93, which includes $7,895,265.31 in damages, $1,723,114.62 in prejudgment interest, and $980,000.00 in attorney's fees[224]. - The company filed a post-trial motion challenging the judgment, which remains pending before the court[224]. - FT Global has registered the judgment in the Southern District of New York, seeking to compel the company to turn over its stock in subsidiary companies[225]. - A derivative lawsuit was filed against certain officers and directors of Future FinTech, alleging breaches of fiduciary duties and violations of federal securities laws[225]. - The lawsuit includes allegations of stock price manipulation and failures in disclosure practices[225]. - The court has scheduled the trial for January 8, 2024, with a pretrial order deadline extended to December 1, 2023[224]. - The company continues to defend against FT Global's claims and may appeal the judgment to the United States Court of Appeals for the Eleventh Circuit if necessary[224]. - The court denied the company's motion for summary judgment on all claims asserted by FT Global[224]. - The discovery period for the case has been extended multiple times, with the latest extension granted until September 14, 2022[224]. - The company served FT Global with its Initial Disclosures on April 30, 2021, and has engaged in extensive discovery activities since then[224].