Future FinTech Group Inc. reported a significant decline in its financial performance for the fiscal year ended December 31, 2024, with total revenues dropping to $2.16 million from $21.7 million in 2023, marking a decrease of 158.5%. This decline was primarily attributed to the sale of its subsidiary, Nice Talent Asset Management Limited (NTAM), which had generated $12.88 million in revenue in the previous year. The company also faced reduced demand in its supply chain financing and trading business due to a slowdown in the Chinese economy, particularly in the real estate and infrastructure sectors.
The company's gross profit increased slightly from approximately $1.12 million in 2023 to about $1.27 million in 2024, driven by new consulting and U.S. dollar bond services. However, operating expenses surged to $35.18 million, up from $24.71 million in the prior year, largely due to a substantial increase in the provision for doubtful debts, which rose by $27.35 million. As a result, Future FinTech reported a loss from operations of $33.91 million, compared to a loss of $23.59 million in 2023.
Strategically, Future FinTech has undergone significant organizational changes, including the dissolution of its variable interest entity (VIE), E-Commerce Tianjin, which had generated minimal revenue since 2021 due to the COVID-19 pandemic. The company also divested from NTAM and FTFT SuperComputing Inc. to focus on its core business of supply chain financing services and trading in China. The acquisition of Alpha International Securities and Alpha Information Services in late 2023 is part of its strategy to expand its financial services offerings in Hong Kong.
As of December 31, 2024, Future FinTech had cash and cash equivalents of $4.84 million, a decrease from $17.41 million in 2023. The company reported a working capital of $8.27 million, down from $36.76 million the previous year. The outlook remains uncertain, with management acknowledging substantial doubt about the company's ability to continue as a going concern due to ongoing operating losses and negative cash flows. Future FinTech is actively working to execute its new business strategy and achieve profitable operations, but the potential for regulatory changes in China and market conditions could significantly impact its future performance.
About Future FinTech Group Inc.
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