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Future FinTech Group Inc. (FTFT-16.11%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a decrease in total revenue to $5.18 million from $23.74 million for the same period in the previous year. The decrease is attributed to a decline in the supply chain financing and trading segment due to reduced demand and lower prices in the Chinese market.
Asset management services revenue increased to $3.71 million from $3.27 million, driven by the hiring of more account managers.
The company reported a gross profit of $1.51 million, with a gross margin of 29.25%, up from 5.95% in the previous year. This increase is due to higher profit margins in supply chain financing and trading, as well as other business segments.
Operating expenses rose to $6.83 million from $3.94 million, primarily due to increased bad debt provisions and general administrative expenses.
Future FinTech reported a net loss from continuing operations of $4.93 million, compared to $2.39 million in the previous year, mainly due to increased operating expenses.
The filing highlights a legal proceeding with FT Global Capital, Inc., resulting in a judgment against Future FinTech for $10.6 million, which the company is actively contesting.
Future FinTech's liquidity decreased, with cash and cash equivalents at $6.52 million as of September 30, 2024, down from $19.02 million at the end of 2023.
The company continues to face challenges due to the slowdown in the Chinese economy and ongoing legal disputes, impacting its financial results and operations.
Future FinTech's management is focused on addressing these challenges while exploring opportunities for growth in its asset management and financial services segments.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Future FinTech Group Inc. quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.