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]

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].

Core Insights - FTFT has appointed Professor Xiong Yu as Chief Blockchain Advisor to enhance its stablecoin and Real World Asset (RWA) business, aiming for strong technical support and strategic guidance [1][3] Group 1: Company Developments - FTFT is focusing on expanding its stablecoin and RWA business, which is seen as a bold decision based on deep market insights [3][4] - The company has faced challenges in its cryptocurrency business but is actively seeking breakthroughs and transformation [3] Group 2: Professor Xiong Yu's Background - Professor Xiong Yu is a leading expert in blockchain and has held significant positions, including Vice President at the University of Surrey and founding director of the Surrey Blockchain and Metaverse Applications Institute [1][2] - He has contributed to over 40 companies and has a strong track record in innovation commercialization, including facilitating an £8 million investment for the establishment of the Newcastle Tsinghua Technology Park [2] Group 3: Market Potential - Stablecoins are crucial in the cryptocurrency market, maintaining stable value by being pegged to fiat currencies or other assets, thus becoming an essential component of the crypto ecosystem [3] - RWA has significant market potential by tokenizing real-world assets through blockchain technology, bridging traditional finance and cryptocurrency markets [3]

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].