Future FinTech Group Inc.
For the period ended Jun 30, 2026. Filed Aug 14, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 14, 2026
FTFT$3.29-13.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-15.
0001213900-26-057871
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-14.
0001213900-26-090012
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 88 previous paragraphs and 109 current paragraphs.
52 unchanged; 27 reworded; 24 added; 8 removed; 1 previous and 6 current paragraphs rearranged.
Tables are not compared: 5 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (24)
Current report
Change in Independent Registered Public Accounting Firm
Current report
On July 6, 2026, the Audit Committee of the Board of Directors of the Company approved the dismissal of Fortune CPA Inc. ("Fortune") as the Company's independent registered public accounting firm and approved the engagement of Wei, Wei & Co., LLP ("Wei, Wei & Co.") as the Company's independent registered public accounting firm, effective immediately, including to act as the Company's auditor for the fiscal year ending December 31, 2026. Fortune had served as the Company's independent registered public accounting firm since August 2023.
Current report
Fortune's audit reports on the Company's consolidated financial statements as of and for the fiscal years ended December 31, 2025 and December 31, 2024 did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles, except that each such report contained an explanatory paragraph regarding the Company's ability to continue as a going concern. During the Company's two most recent fiscal years and the subsequent interim period through July 6, 2026, there were no disagreements (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions thereto) with Fortune on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, and no reportable events (as described in Item 304(a)(1)(v) of Regulation S-K), except for the previously disclosed material weakness in the Company's internal control over financial reporting relating to insufficient staff with the appropriate level of knowledge, training and experience in U.S. GAAP and SEC reporting requirements. During the Company's two most recent fiscal years and the subsequent period from January 1, 2026 through July 6, 2026, the Company did not consult with Wei, Wei & Co. regarding any of the matters or events set forth in Item 304(a)(2)(i) or 304(a)(2)(ii) of Regulation S-K.
Current report
Segment Information
Current report
Results of Operations
Current report
Comparison of Three Months Ended June 30, 2026 and 2025
Current report
Overall gross profit increased by $14,774, or 8.25%, to $193,832 for the three months ended June 30, 2026 from $179,058 for the three months ended June 30, 2025. The increase was primarily due to higher gross profit from trading commission and consulting services, which was in line with higher revenue generated by this business segment for the three months ended June 30, 2026. The increase was partially offset by lower gross profit from FMCG, driven by the revenue decline of this segment for the three months ended June 30, 2026. Overall gross margin as a percentage of revenue was 58.14% for the three months ended June 30, 2026, representing an increase of 28.02 percentage points from 30.12% for the three months ended June 30, 2025, mainly due to a larger proportion of higher-margin consulting services revenue for the three months ended June 30, 2026.
Current report
General and administrative expenses decreased by $221,323, or 25.98%, from $852,026 for the three months ended June 30, 2025 to $630,703 for the three months ended June 30, 2026. The decrease was primarily attributable to reduced commission expenses and travelling expense that recognized in the three months ended June 30, 2026.
Current report
Other Income (Expenses), Net
Current report
Net other income decreased by $3,086,554, or 100.92%, from net other income of $3,058,504 for the three months ended June 30, 2025 to net other expenses of $28,050 for the three months ended June 30, 2026. The decrease was primarily attributable to the gain on debt restructuring during the three months ended June 30, 2025. On June 17, 2025, we entered into a settlement and forbearance agreement (“the Agreement”) with FT Global. Pursuant to the Agreement, we were required to pay an aggregate settlement amount of $4.0 million and issue a total of 107,368 shares of common stock. Upon the debt restructuring, we recognized a gain of $3.07 million, which was recorded as gain on debt restructuring in the unaudited condensed consolidated statement of operations and comprehensive income (loss).
Current report
Net income (loss) from continuing operations
Current report
Net income from continuing operations decreased by $3,672,665, or 210.73%, from net income of $1,742,837 for the three months ended June 30, 2025 to net loss of $1,929,828 for the three months ended June 30, 2026. The decrease was primarily due to the decrease in gain on debt restructuring as discussed above.
Current report
Comparison of Six Months Ended June 30, 2026 and 2025:
Current report
Revenue
Current report
Revenue from trading commission and consulting services increased by $62,539, or 23.07%, from $271,115 for the six months ended June 30, 2025 to $333,654 for the six months ended June 30, 2026. The increase was mainly due to a new consulting services project with related revenue recognized in the six months ended June 30, 2026, and no similar project occurred during the six months ended June 30, 2025.
Current report
Gross Profit
Current report
Operating Expenses
Current report
Stock-based compensation expenses increased by $302,500 or 27.88%, from $1,085,000 for the six months ended June 30, 2025 to $1,387,500 for the six months ended June 30, 2026. The increase was primarily attributable to a larger number of shares granted (312,500 shares in June 2026 compared to 31,250 shares in March 2025, in each case as adjusted for the reverse stock splits), partially offset by a lower grant-date share price ($4.44 compared to $34.72, as adjusted).
Current report
Selling expenses decreased by $228,575, or 51.87%, from $440,678 for the six months ended June 30, 2025 to $212,103 for the six months ended June 30, 2026. The decrease was primarily attributable to reduced business entertainment expenses and other relevant selling expenses as a result of the implementation of cost-control measures.
Current report
Other Income, Net
Current report
Gain on disposal of discontinued operations
Current report
On July 30, 2026, we received aggregate gross proceeds of $30,000,000 from the private placement of 30,000,000 shares of our common stock described in Note 23 to our unaudited condensed consolidated financial statements. We intend to use the net proceeds of the private placement for working capital and general corporate purposes. In addition, following the completion of the transfer of the 20% equity interest in Xi’an Changshida Information Technology Co., Ltd. on July 3, 2026, the cash consideration of RMB 40,000,000 (approximately $5.6 million) and the share consideration became payable in accordance with the related share purchase agreement, and the remaining cash installments of approximately $1.02 million under the FT Global settlement are payable through December 2026.
Current report
The following table sets forth a summary of our cash flows for the periods indicated:
Current report
Net cash provided by financing activities from continuing operations amounted to $1.90 million for the six months ended June 30, 2026, primarily consisting of proceeds from convertible notes payable of $2.00 million, which was partially offset by repayment made for amounts due to related parties of $0.10 million.
Removed paragraphs (8)
Previous report
Segment Information Reclassification
Previous report
Level 1 - Quoted prices in active markets for identical assets or liabilities.
Previous report
Level 2 - Input other than Level 1 that is observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other input that is observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Previous report
Level 3 - Unobservable input that is supported by little or no market activity and that is significant to the fair value of the assets or liabilities.
Previous report
Results of Operations for the Three Months Ended March 31, 2026 and 2025
Previous report
Other Income (Expense), Net
Previous report
Net Income from Discontinued Operations
Previous report
The following is a summary of cash provided by or used in each of the indicated types of activities during the three months ended March 31, 2026 and 2025, respectively.
Reworded paragraphs (27)
Previous wording
Since the second quarter of 2021, we have engaged in the coal supply chain financing service and trading business in China. During fiscal year 2025, we significantly scaled down this business segment due to reduced activity in the domestic bulk commodity trading market in China and management’s reassessment of credit exposure and capital allocation priorities. During the three months ended March 31, 2026, we generated no revenue from this segment. We continue to evaluate market conditions and our strategic focus, and there can be no assurance that we will resume this business at historical levels or that future market conditions will support meaningful growth in this segment.
Current wording
Since the second quarter of 2021, we have engaged in the coal supply chain financing service and trading business in China. During fiscal year 2025, we significantly scaled down this business segment due to reduced activity in the domestic bulk commodity trading market in China and management’s reassessment of credit exposure and capital allocation priorities. During the six months ended June 30, 2026, we generated no revenue from this segment. We continue to evaluate market conditions and our strategic focus, and there can be no assurance that we will resume this business at historical levels or that future market conditions will support meaningful growth in this segment.
Previous wording
We also provide business and financial consulting services, including listing-readiness and preparatory consulting services. As described in our 2025 Form 10-K, this business line remains in an early stage of development and is conducted primarily through Future FinTech (Hong Kong) Limited and, in certain limited circumstances, Future Information Service (Shenzhen) Co., Ltd. During the three months ended March 31, 2026, revenue from trading commission and consulting services increased compared to the same period in 2025, primarily due to revenue recognized from a new consulting services project during the period. Neither we nor our subsidiaries engage in underwriting, securities brokerage, placement agent services, investor solicitation, or similar activities in the United States or in any other jurisdiction where we do not hold the required license or registration.
Current wording
We also provide business and financial consulting services, including listing-readiness and preparatory consulting services. As described in our 2025 Form 10-K, this business line remains in an early stage of development and is conducted primarily through Future FinTech (Hong Kong) Limited and, in certain limited circumstances, Future Information Service (Shenzhen) Co., Ltd. During the six months ended June 30, 2026, revenue from trading commission and consulting services increased compared to the same period in 2025, primarily due to revenue recognized from a new consulting services project during the period. Neither we nor our subsidiaries engage in underwriting, securities brokerage, placement agent services, investor solicitation, or similar activities in the United States or in any other jurisdiction where we do not hold the required license or registration.
Previous wording
As disclosed in our 2025 Form 10-K, in September 2025, our Board of Directors approved a proposal to pursue a potential acquisition of TansGen SC Tech Limited as part of our ongoing strategic transition and expansion initiatives. As of March 31, 2026, no definitive acquisition agreement had been executed, and the Company continued to conduct financial, legal and operational due diligence and valuation procedures. The execution of any definitive agreement remains subject to completion of due diligence, negotiation of final terms, regulatory approvals, if applicable, and other customary conditions. There can be no assurance that a definitive agreement will be executed, that the proposed acquisition will be completed, or that, if completed, the transaction will achieve the anticipated strategic or financial benefits.
Current wording
As disclosed in our 2025 Form 10-K, in September 2025, our Board of Directors approved a proposal to pursue a potential acquisition of TansGen SC Tech Limited as part of our ongoing strategic transition and expansion initiatives. The proposed acquisition of TansGen SC Tech Limited has been terminated, and the Company is currently searching for other suitable acquisition targets. As of June 30, 2026, no definitive acquisition agreement had been executed, and the Company continued to conduct financial, legal and operational due diligence and valuation procedures. The execution of any definitive agreement remains subject to completion of due diligence, negotiation of final terms, regulatory approvals, if applicable, and other customary conditions. There can be no assurance that a definitive agreement will be executed, that the proposed acquisition will be completed, or that, if completed, the transaction will achieve the anticipated strategic or financial benefits.
Previous wording
On February 3, 2025, FTFT UK LIMITED, FTFT Finance UK Limited, Future Fintech Digital Number One US, LP, Future Fintech Digital Number One Offshore, LLC (Cayman), Future Fintech Digital Number One GP, LLC (USA), FTFT Digital Number One, Ltd. (Cayman), Future FinTech Labs Inc, Future Fintech Digital Capital, FTFT CAPITAL INVESTMENTS, DigiPay FinTech Limited, DCON DigiPay Limited-JPN and Global Key Shared Mall Ltd were disposed of for a consideration of US$25,000 after a court auction sale. The gain on disposal was $28.26 million.
Current wording
On February 3, 2025, FTFT UK LIMITED, FTFT Finance UK Limited, Future Fintech Digital Number One US, LP, Future Fintech Digital Number One Offshore, LLC (Cayman), Future Fintech Digital Number One GP, LLC (USA), FTFT Digital Number One, Ltd. (Cayman), Future FinTech Labs Inc, Future Fintech Digital Capital, FTFT CAPITAL INVESTMENTS, DigiPay FinTech Limited, DCON DigiPay Limited-JPN and Global Key Shared Mall Ltd were disposed of for a consideration of $25,000 after a court auction sale. The gain on disposal was $28.26 million.
Previous wording
The Company’s cash and cash equivalents and restricted cash and short-term investments are classified within level 1 of the fair value hierarchy because they are valued using quoted market prices.
Current wording
The Company’s cash and cash equivalents, restricted cash and short-term investments are classified within level 1 of the fair value hierarchy because they are valued using quoted market prices.
Previous wording
Other comprehensive income (loss) for the three months ended March 31, 2026 and 2025 represented foreign currency translation adjustments and were included in the unaudited condensed consolidated statements of operation and comprehensive loss.
Current wording
Other comprehensive income (loss) for the three and six months ended June 30, 2026 and 2025 represented foreign currency translation adjustments and were included in the unaudited condensed consolidated statements of operation and comprehensive income (loss).
Previous wording
Revenue from sales of FMCG decreased by $364,349, or 76.47%, from $476,451 for the three months ended March 31, 2025 to $112,102 for the three months ended March 31, 2026. The decrease was primarily due to intensified competition from other FMCG sellers on the e-commerce platform. Meanwhile, we reduced investment in marketing activities as a result of the implementation of cost-control measures, which also adversely affected sales conversion.
Current wording
Revenue from sales of FMCG decreased by $287,419, or 74.14%, from $387,684 for the three months ended June 30, 2025 to $100,265 for the three months ended June 30, 2026. The decrease was primarily due to intensified competition from other FMCG sellers on the e-commerce platform. Meanwhile, we reduced investment in marketing activities as a result of the implementation of cost-control measures, which also adversely affected sales conversion.
Previous wording
Revenue from trading commission and consulting services increased by $36,171, or 56.22%, from $64,339 for the three months ended March 31, 2025 to $100,510 for the three months ended March 31, 2026. The increase was mainly due to a new consulting services project with related revenue amortized over the service term in the three months ended March 31, 2026, and no similar project occurred during the three months ended March 31, 2025.
Current wording
Revenue from trading commission and consulting services increased by $26,368, or 12.75%, from $206,776 for the three months ended June 30, 2025 to $233,144 for the three months ended June 30, 2026. The increase was mainly due to a new consulting services project with related revenue recognized in the three months ended June 30, 2026, and no similar project occurred during the three months ended June 30, 2025.
Previous wording
Stock compensation expense decreased by $1,085,000 or 100.00%, from $1,085,000 for the three months ended March 31, 2025 to $ nil for the three months ended March 31, 2026. On March 10, 2025, the Compensation Committee of the Board of Directors of the Company granted 125,000 shares of common stock, pursuant to the Company’s 2024 Omnibus Equity Plan, to certain officers and employees of the Company and its subsidiaries. As the closing price of the Company stock was $8.68 on March 10, 2025, the Company recorded an expense of $1.09 million in the three months ended March 31, 2025.
Current wording
Stock compensation expense increased by $1,387,500 or 100.00%, from $ nil for the three months ended June 30, 2025 to $1,387,500 for the three months ended June 30, 2026. On May 29, 2026, the Compensation Committee of the Board of Directors of the Company granted 312,500 shares of common stock, pursuant to the Company’s 2025 Omnibus Equity Plan, to certain officers and employees of the Company and its subsidiaries. As the closing price of the Company stock was $4.44 on June 3, 2026, the Company recorded an expense of $1.39 million in the three months ended June 30, 2026.
Previous wording
Selling expenses decreased by $56,450, or 29.46%, from $191,630 for the three months ended March 31, 2025 to $135,180 for the three months ended March 31, 2026. The decrease was primarily attributable to reduced business entertainment expenses and other relevant selling expenses as a result of the implementation of cost-control measures.
Current wording
Selling expenses decreased by $172,125, or 69.11%, from $249,048 for the three months ended June 30, 2025 to $76,923 for the three months ended June 30, 2026. The decrease was primarily attributable to reduced business entertainment expenses and other relevant selling expenses as a result of the implementation of cost-control measures.
Previous wording
Revenue from supply chain financing/trading decreased by $1,341, or 100.00%, from $1,341 for the three months ended March 31, 2025 to $ nil for the three months ended March 31, 2026. The decrease was due to our management’s decision to temporarily suspend these operations resulting from lower coal prices and reduced market demand in China during the three months ended March 31, 2026.
Current wording
Revenue from supply chain financing/trading decreased by $1,341, or 100.00%, from $1,341 for the six months ended June 30, 2025 to $ nil for the six months ended June 30, 2026. The decrease was due to our management’s decision to temporarily suspend these operations resulting from lower coal prices and reduced market demand in China during the six months ended June 30, 2026.
Previous wording
Overall gross profit increased slightly by $2,177, or 3.07%, to $73,203 for the three months ended March 31, 2026 from $71,026 for the three months ended March 31, 2025. The increase was primarily due to the increase in gross profit from trading commission and consulting services which was in line with the increase in revenue for this business segment for the three months ended March 31, 2026. Although revenue from the FMCG segment decreased significantly for the three months ended March 31, 2026, gross profit from this business segment did not decrease simultaneously due to its low gross margin. Overall gross margin as a percentage of revenue was 34.43% for the three months ended March 31, 2026, representing an increase of 21.33 percentage points from 13.10% for the three months ended March 31, 2025, mainly due to the increase in proportion of consulting services revenue with higher gross margin for the three months ended March 31, 2026.
Current wording
Overall gross profit increased by $16,951, or 6.78%, to $267,035 for the six months ended June 30, 2026 from $250,084 for the six months ended June 30, 2025. The increase was primarily due to the increase in gross profit from trading commission and consulting services, which was in line with the increase in revenue for this business segment for the six months ended June 30, 2026. Although revenue from the FMCG segment decreased significantly for the six months ended June 30, 2026, gross profit from this business segment did not decrease simultaneously due to its low gross margin. Overall gross margin as a percentage of revenue was 48.91% for the six months ended June 30, 2026, representing an increase of 26.91 percentage points from 22.00% for the six months ended June 30, 2025, mainly due to a larger proportion of higher-margin consulting services revenue for the six months ended June 30, 2026.
Previous wording
General and administrative expenses decreased by $168,241, or 10.72%, from $1,570,100 for the three months ended March 31, 2025 to $1,401,859 for the three months ended March 31, 2026. The decrease was primarily attributable to reduced commission expenses that recognized in the three months ended March 31, 2025, but did not recur in the same period this year. The decrease was partially offset by an increase in travelling and business entertainment expenses driven by our new business expansion.
Current wording
General and administrative expenses decreased by $389,564, or 16.08%, from $2,422,126 for the six months ended June 30, 2025 to $2,032,562 for the six months ended June 30, 2026. The decrease was primarily attributable to commission expenses recognized in the six months ended June 30, 2025 that did not recur in the same period of 2026. The decrease was partially offset by an increase in business entertainment expenses driven by our new business expansion.
Previous wording
Allowance for (net recovery of) credit losses/doubtful accounts decreased by $27,999,779, or 100.50%, from an allowance for credit losses/doubtful accounts of $27,860,839 for the three months ended March 31, 2025 to a recovery of credit losses/doubtful accounts of $138,940 for the three months ended March 31, 2026. The decrease was due to the provision for bad debts on related party receivables in connection with the disposal of a subsidiary during the three months ended March 31, 2025. Our management will continue monitoring and putting effort into the collection of receivables to lower the level of the allowance.
Current wording
Allowance for credit losses/doubtful accounts decreased by $28,392,946, or 100.49%, from an allowance for credit losses/doubtful accounts of $28,254,490 for the six months ended June 30, 2025 to a net recovery of credit losses/doubtful accounts of $138,456 for the six months ended June 30, 2026. The decrease was due to the provision for bad debts on related party receivables in connection with the disposal of a subsidiary during the six months ended June 30, 2025. Our management will continue monitoring and putting effort into the collection of receivables to lower the level of the allowance.
Previous wording
Net other income decreased by $48,760, or 49.49%, from net other income of $98,528 for the three months ended March 31, 2025 to $49,768 for the three months ended March 31, 2026. The decrease was primarily attributable to lower investment income resulting from a decreased weighted average debt investment balance during this period, as well as higher interest expenses caused by the convertible notes payables issued in July 2025 and September 2025. The decrease was partially offset by an increase interest income recognized effective December 2025 for the three months ended March 31, 2026, and no such income was incurred during the three months ended March 31, 2025.
Current wording
Net other income decreased by $3,135,314, or 99.31%, from net other income of $3,157,032 for the six months ended June 30, 2025 to $21,718 for the six months ended June 30, 2026. The decrease was primarily attributable to the gain on debt restructuring during the six months ended June 30, 2025 as we entered into a settlement and forbearance agreement with FT Global. The decrease was also attributable to the higher interest expenses caused by the convertible notes payable issued in July 2025, September 2025 and May 2026. The decrease was partially offset by an increase in interest income recognized effective December 2025 for the six months ended June 30, 2026, and no such income was incurred during the six months ended June 30, 2025.
Previous wording
Net loss from continuing operations decreased by $29,262,887, or 95.82%, from $30,538,015 for the three months ended March 31, 2025 to $1,275,128 for the three months ended March 31, 2026. The decrease was primarily due to the decrease in allowance for credit losses/doubtful accounts as discussed above.
Current wording
Net loss from continuing operations decreased by $25,590,222, or 88.87%, from $28,795,178 for the six months ended June 30, 2025 to $3,204,956 for the six months ended June 30, 2026. The decrease was primarily due to the decrease in allowance for credit losses/doubtful accounts as discussed above.
Previous wording
Net income from discontinued operations before non-controlling interests was $27.83 million for the three months ended March 31, 2025, which was related to the transfer of FTFT UK LIMITED, FTFT Finance UK Limited, Future Fintech Digital Number One US, LP, Future Fintech Digital Number One Offshore, LLC (Cayman), Future Fintech Digital Number One GP, LLC (USA), FTFT Digital Number One, Ltd. (Cayman), Future FinTech Labs Inc, Future Fintech Digital Capital, FTFT CAPITAL INVESTMENTS, DigiPay FinTech Limited, DCON DigiPay Limited-JPN, and Global Key Shared Mall Ltd..
Current wording
Gain on disposal of discontinued operation was $28.26 million for the six months ended June 30, 2025, which was related to the transfer of FTFT UK LIMITED, FTFT Finance UK Limited, Future Fintech Digital Number One US, LP, Future Fintech Digital Number One Offshore, LLC (Cayman), Future Fintech Digital Number One GP, LLC (USA), FTFT Digital Number One, Ltd. (Cayman), Future FinTech Labs Inc, Future Fintech Digital Capital, FTFT CAPITAL INVESTMENTS, DigiPay FinTech Limited, DCON DigiPay Limited-JPN and Global Key Shared Mall Ltd.
Previous wording
For the three months ended March 31, 2026, basic and diluted loss per share from continuing operations were both $0.25, as compared to loss per share of $49.92 (both basic and diluted) for the three months ended March 31, 2025. For the three months ended March 31, 2026, basic and diluted earnings per share from discontinued operations were both $ nil, as compared to basic and diluted earnings per share of $42.44 and $42.37 for the three months ended March 31, 2025, respectively.
Current wording
For the six months ended June 30, 2026, basic and diluted loss per share from continuing operations were both $2.27, as compared to loss per share of $162.66 (both basic and diluted) for the same period last year. For the six months ended June 30, 2026, basic and diluted earnings per share from discontinued operations were both $ nil, as compared to basic and diluted earnings per share of $147.29 and $147.07 for the same period last year, respectively.
Previous wording
We currently finance our business operations primarily through convertible notes and the sale of our common stock. Our current cash primarily consists of cash on hand and cash in bank. As of March 31, 2026, we had cash and restricted cash of $3.68 million, representing a decrease of $1.40 million from $5.08 million as of December 31, 2025.
Current wording
We currently finance our business operations primarily through convertible notes and the sale of our common stock. Our current cash primarily consists of cash on hand and cash in bank. As of June 30, 2026, we had cash, cash equivalents and restricted cash of $4.22 million, representing a decrease of $0.86 million from $5.08 million as of December 31, 2025.
Previous wording
Our working capital has historically been generated from our operating cash flows, advances from our customers and convertible notes. Our working capital decreased slightly by $0.30 million, from $42.55 million as of December 31, 2025 to $42.25 million as of March 31, 2026.
Current wording
Our working capital has historically been generated from our operating cash flows, advances from our customers and convertible notes. Our working capital was $43.14 million as of June 30, 2026, representing an increase of $0.59 million compared with working capital of $42.55 million as of December 31, 2025. The increase was primarily attributable to foreign exchange rate impacts on investment funds and a decrease in current liabilities, such as accounts payable and accrued expenses and other payables.
Previous wording
Net cash used in operating activities from continuing operations amounted to $1.53 million for the three months ended March 31, 2026, primarily due to i) a net loss from continuing operations of $1.28 million adjusted for non-cash activities including net recovery of credit losses/doubtful accounts of $0.14 million, and ii) net changes in our operating assets and liabilities, which mainly include a) a decrease in other receivables of $0.50 million, and b) a decrease in accounts payable of $0.82 million.
Current wording
Net cash used in operating activities from continuing operations amounted to $3.21 million for the six months ended June 30, 2026, primarily due to i) a net loss from continuing operations of $3.20 million adjusted for non-cash activities including net recovery of credit losses/doubtful accounts of $0.14 million and share-based payments of $1.39 million, and ii) net changes in our operating assets and liabilities, which mainly include a) a decrease in accounts payable of $0.96 million, b) a decrease in accrued expenses and other payables of $0.81 million, which was partially offset by a decrease in other receivables of $0.4 million.
Previous wording
Net cash used in operating activities from continuing operations amounted to $19.57 million for the three months ended March 31, 2025, primarily due to i) a net loss from continuing operations of $30.54 million adjusted for non-cash activities including allowance for credit losses/doubtful accounts of $31.45 million, and share-based payments of $1.09 million, and ii) net changes in our operating assets and liabilities, which mainly include a) an increase in other receivables of $27.71 million, b) an increase in accrued expenses and other payables of $9.09 million, c) an increase in advances to suppliers and other current assets of $3.61 million.
Current wording
Net cash used in operating activities from continuing operations amounted to $18.47 million for the six months ended June 30, 2025, primarily due to i) a net loss from continuing operations of $28.80 million adjusted for non-cash activities including allowance for credit losses/doubtful accounts of $28.25 million, gain on debt restructuring of $3.07 million and share-based payments of $1.09 million, and ii) net changes in our operating assets and liabilities, which mainly include an increase in other receivables of $27.95 million, partially offset by a) an increase in accounts payable of $2.28 million, b) an increase in accrued expenses and other payables of $8.10 million.
Previous wording
Net cash provided by investing activities from continuing operations amounted to $1,439 for the three months ended March 31, 2026, primarily due to redemption of short-term investments of $15,829, which was partially offset by payment for short-term investments of $14,390.
Current wording
Net cash provided by investing activities from continuing operations amounted to $1,451 for the six months ended June 30, 2026, primarily due to redemption of short-term investments of $30,465, which was partially offset by payment for short-term investments of $29,014.
Previous wording
Net cash provided by investing activities from continuing operations amounted to $0.38 million for the three months ended March 31, 2025, primarily due to collection from debt investments of $0.24 million and repayment of loan receivables of $0.14 million.
Current wording
Net cash provided by investing activities from continuing operations amounted to $0.38 million for the six months ended June 30, 2025, primarily due to collection from debt investments of $0.24 million and repayment of loan receivables of $0.14 million.
Previous wording
Net cash used in financing activities from continuing operations amounted to $6,093 for the three months ended March 31, 2025, primarily consisting of payment made for amounts due from related parties of $2,508 and repayment of amounts due to related parties of $3,585.
Current wording
Net cash used in financing activities from continuing operations amounted to $13,193 for the six months ended June 30, 2025, primarily consisting of payment made for amounts due from related parties of $4,322 and repayment of amounts due to related parties of $8,871.
Previous wording
The Company has no long-term fixed contractual obligations or commitments other than leases that are disclosed in Note 7 in the notes to our unaudited condensed consolidated financial statements.
Current wording
Other than (i) the leases disclosed in Note 7 in the notes to our unaudited condensed consolidated financial statements, (ii) the remaining cash installments of approximately $1.02 million payable through December 2026 under the Settlement and Forbearance Agreement with FT Global Capital, Inc. described in Note 20, (iii) the cash consideration of RMB 40,000,000 (approximately $5.6 million) and share consideration payable in connection with the acquisition of a 20% equity interest in Xi’an Changshida Information Technology Co., Ltd. described in Note 23, and (iv) our obligations under the convertible notes payable described in Note 12, we had no other long-term fixed contractual obligations or commitments as of June 30, 2026.
Previous wording
As of March 31, 2026 and 2025, we did not have any off-balance sheet arrangements.
Current wording
As of June 30, 2026, we did not have any off-balance sheet arrangements.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
Allowance for credit losses/doubtful accounts decreased by $393,167, or 99.88%, from $393,651 for the three months ended June 30, 2025 to $484 for the three months ended June 30, 2026. The decrease was primarily due to the management’s efforts to collection of long overdue receivables from our customers, resulting in a smaller allowance for credit losses during the three months ended June 30, 2026. Our management will continue monitoring and putting effort into the collection of receivables to lower the level of the allowance.
Current report — wording carried from elsewhere
The following table summarizes our operating results for the six months ended June 30, 2026 and 2025, respectively, and sets forth the dollar and percentage increase or (decrease) between the periods.
Current report — wording carried from elsewhere
The following table sets forth the breakdown of our revenues for the six months ended June 30, 2026 and 2025, respectively:
Current report — wording carried from elsewhere
Revenue from sales of FMCG decreased by $651,768, or 75.42%, from $864,135 for the six months ended June 30, 2025 to $212,367 for the six months ended June 30, 2026. The decrease was primarily due to intensified competition from other FMCG sellers on the e-commerce platform. Meanwhile, we reduced investment in marketing activities as a result of the implementation of cost-control measures, which also adversely affected sales conversion.
Current report — wording carried from elsewhere
The following table sets forth the breakdown of the gross profit for the six months ended June 30, 2026 and 2025, respectively:
Current report — wording carried from elsewhere
The following table sets forth the breakdown of our operating expenses and operating expenses as a percentage of revenue for the six months ended June 30, 2026 and 2025, respectively:
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Net cash used in financing activities from continuing operations amounted to $117,721 for the three months ended March 31, 2026, primarily due to repayment of amounts due to related parties.