Lion Group Holdings (LGHL)

HONG KONG, Dec. 2, 2022 /PRNewswire/ -- Lion Group Holding Ltd. ("Lion" or "the Company") (NASDAQ: LGHL), operator of an all-in-one trading platform that offers a wide spectrum of products and services and developer of new growth products that include SPAC sponsorship, NFT, and metaverse-related initiatives, today announced its unaudited financial results for the six months ended June 30, 2022.

Mr. Chunning (Wilson) Wang, CEO of Lion, commented, "Our various business lines continued to be negatively impacted by persisting headwinds in 2022, especially the sudden and rapid decline in economic activity, triggering volatile global financial markets combined with the continued effects of COVID-19. We suffered losses in CFD (contract for difference) and TRS (total return swap) trading business due to unpredictable market events, including China's stringent zero-Covid policy, the Russia and Ukraine conflict, the energy crisis, and tense China-US relations. On the positive side, our futures and securities brokerage services expanded during this period, as a result of an increase in the number of executed futures contracts."

"TRS and CFD trading are major focus areas for Lion, and given the nature of TRS and CFD trading, we understand our business can benefit from gains in good times and risk losses during more difficult times.At the same time, we are prudently managing resources, while focusing on risk management, strategically reducing costs, and trimming less meaningful business areas to help mitigate the impacts of the more difficult business environment. On the other hand, we are pleased to say that given current visibility and assuming no major macroeconomic surprises, we believe that we have seen the bottom in the first half and are seeing positive signs of improvement in our TRS and CFD income for the remainder of the year."

"As we focus on our core business, we are also being responsive to changing business conditions by working closely with our customers, while remaining laser-focused on our strategy and long-term opportunities. We have evolved to incorporate NFT and Metaverse into our core business, and we are pleased to see revenue from the sale of MetaWords NFTs achieve US$0.4 million in the first half of 2022. In addition, we aim to secure new cooperation agreement in our TRS trading business in the second half of 2022, which can bring in new customers as a result of new synergies. We have also added 83 ETFs to the basket of securities eligible for customers to trade."

FINANCIAL RESULTS

For the Six Months Ended June 30, 2022

Revenues

Total revenue for the six months ended June 30, 2022 was severely affected by trading losses in CFD and TRS trading services, resulting in negative revenues of US$(4.3) million, compared to total revenues of US$3.6 million for the six months ended June 30, 2021. Total number of revenue-generating customer accounts decreased to 4,522 as of June 30, 2022, from 5,261 as of December 31, 2021 due to the decline in Lion's insurance business.

• CFD Trading Services Income (Losses). Loss generated from CFD trading services increased by US$5.8 million from a loss of US$(1.1) million for the six months ended June 30, 2021 to a loss of US$(6.9) million for the six months ended June 30, 2022, primarily attributable to an increase of US$5.4 million in trading losses and a decrease of US$0.4 million in commission income. The Company has suffered losses from CFD trades in the first half of 2022 as a result of fluctuation and volatility in the global financial markets in reaction to a series of unpredictable events, such as the Russia and Ukraine conflict, Europe's energy crisis, surging inflation and interest rate hikes in the U.S. and Europe, China's housing market slump, etc., which impacted the major stock indexes, commodity markets including crude oil and metals, and the foreign exchange market. Market making commission income decreased from US$1.0 million for the six months ended June 30, 2021 to US$0.7 million for the six months ended June 30, 2022, which was mainly attributable to China's tightened restrictions on promotion and advertisement related to online financial products and services, leading to the decreased number of new accounts opened through online advertising. Total revenue-generating CFD trading client accounts slightly decreased to 2,819 as of June 30, 2022, from 2,866 as of December 31, 2021. CFD trading volume slightly decreased to 110,526 lots for the six months ended June 30, 2022, from 116,726 lots for the six months ended June 30, 2021.
  
  TRS Trading Services Income (Losses). Revenues generated from TRS trading services decreased by US$4.4 million from an income of US$3.6 million for the six months ended June 30, 2021 to a loss of US$(0.8) million for the six months ended June 30, 2022, due to the trading gains/(losses) from the Company's proprietary TRS trading activities decreased by US$6.2 million from an income of US$3.2 million to a loss of US$(3.0) million, partially offset by an increase of US$1.5 million in interest income earned on loans provided to TRS trading customers and an increase of US$0.3 million in commissions and other income. The Company's proprietary TRS trading activities were significantly negatively impacted by the highly volatile Chinese stock markets in the first half of 2022 caused by China's dismal economic outlook, lock-downs in cities across China, and heightened geopolitical tensions, etc. TRS trading volume was US$293 million and US$248 million for the six months ended June 30, 2022 and 2021, respectively.
  
  Futures and Securities Brokerage Services. Revenues from futures and securities brokerage services increased from US$1.2 million for the six months ended June 30, 2021 to US$2.0 million for the six months ended June 30, 2022 as a result of an increase in the number of executed futures contracts, primarily due to Hong Kong's rapid economic rebound as the pandemic subsided domestically in 2021 and sophisticated investors wanting to take advantage of the volatile markets increased allocations to speculative trading. Futures brokerage trading volume increased by 76.8% to 795,559 lots from 449,986 lots.
  
  Others. Other income (loss) increased by US$1.5 million from a loss of US$(0.1) million for the six months ended June 30, 2021, to US$1.4 million for the six months ended June 30, 2022. The increase in other income was primarily attributed to trading gains realized from OTC call options of US$0.9 million, sale of MetaWords NFTs of US$0.4 million and interest, other income of US$0.2 million and the decrease of trading loss on equity securities of US$0.2 million generated in the first half of 2022, offset by the decrease of US$0.2 million in Bitcoin mining income as the Bitcoin mining operation has ceased since October 2021.

March 16 2022 - 08:00AM
PR Newswire (US)

SINGAPORE, March 16, 2022 /PRNewswire/ -- Lion Group Holding Ltd. ("Lion" or "the Company") (NASDAQ: LGHL), operator of an all-in-one trading platform that offers a wide spectrum of products and services and developer of new growth products that include SPAC sponsorship, NFT, and metaverse-related initiatives, today announced the Company has relocated its headquarters to Singapore. The new headquarters address is: 3 Phillip Street, #15-04 Royal Group Building, Singapore 048693, phone: +65 88773871.

"Singapore is one of the major financial centers in the world, with stable political policies, economic growth and social environment, along with a low tax rate. It has also developed a sizeable foreign trade, financial industry and banking industry, which will benefit long-term growth opportunities for Lion." Mr. Wang Chunning (Wilson), Chief Executive Officer of Lion said, "To enhance fund security and investor confidence, Lion International Financial (Singapore) Pte Ltd., a subsidiary of the Company, obtained a capital market service license issued by the Monetary Authority of Singapore in October 2021. We believe our corporate relocation enables Lion to explore new business opportunities in Southeast Asia as part of our strategic expansion plan."

HONG KONG, Nov. 18, 2021 /PRNewswire/ -- Lion Group Holding Ltd. ("Lion" or "the Company") (NASDAQ: LGHL), operator of an all-in-one trading platform that offers a wide spectrum of products and services and developer of new growth products that include SPAC sponsorship, NFT, and metaverse-related initiatives, today announced it signed a letter of intent with Hong Kong New Full Rich Ltd. ("New Full Rich"). Under this investment agreement, the two parties will cooperate to construct and operate an encrypted digital currency mine project ("the Project") in Tajikistan through Ganj Technology (the "Target Company"), a company owned by New Full Rich.

New Full Rich specializes in the construction, development and operation of overseas digital mines and digital mining business. The Target Company has received strong support from Tajikistan's government, including the President's Office and 12 government departments. The first phase of the Project will focus on a free trade economic zone, establishing a 150,000-load mining site that incorporates industry licenses, energy loads, electricity prices and other relevant operating conditions, in addition to signing a sole protection agreement with the free trade economic development zone. The first phase of construction for the digital mine infrastructure and power-on operation is expected to be completed in the first quarter of 2022, and the project's annual profit is expected to be no less than US$25 million. In addition, the two groups will gradually promote the construction of a 300,000-load mine field for the second phase of the Project.

Accordant to the agreement, Lion Group will issue 5,000,000 shares to New Full Rich at a price of US$3.00 per share in exchange for 20% of the Target Company's enlarged shares. Lion will work closely to execute the Project and expects to achieve profit sharing of US$5 million in 2022. In addition, Lion can exercise priority to purchase 10,000 WhatsMiner M series mining machines from New Full Rich with operational hashing power ranging from 60 to 62 terahashes per second. Upon installation and initial use of the mining machines, Lion expects to generate an estimate of approximately 3.38 BTC per day. According to the current price of cryptocurrency, daily income will be approximately US$220,000. After deducting 22% for electricity fees and subsequent machine maintenance costs, annual profit is expected to reach US$62 million with attractive return-on-investment in the long-term if operations go as expected.

Mr. Chunning (Wilson) Wang, CEO of Lion, commented: "Tajikistan has unique advantages in water resources, which is central to the development of the digital mining industry. Through this project with New Full Rich, Lion's investment and operations in digital mining in Central Asia will create valuable achievements and mark another solid step for Lion in the global digital asset industry. As the era of the digital economy continues to expand, we believe there is huge growth potential in the cryptocurrency market. Following this trend and seizing the opportunity, Lion will accelerate development and innovation in the global digital asset field as we continue to create meaningful value for our shareholders."

HONG KONG, Aug. 17, 2021 /PRNewswire/ -- Lion Group Holding Ltd. ("Lion" or "the Company") (NASDAQ: LGHL), today announced its latest strategic partnership with Dawa Future Graphic Technology Co., Ltd. ("Dawa Technology"). Through this partnership, the two companies will jointly innovate and develop the Metaverse AI tool – "Cloud Production Platform", establishing a new form of digital market and establish a leading position in the construction and development of the Metaverse field.

Dawa Technology is one of China's largest communities for VR, AR, XR developers and content creators, that gathers veteran researchers, developers, creators and project operation teams. Committed to becoming the most important support platform of the world's Metaverse development, Dawa Technology has developed more than 100 virtual idols and owns several of the most advanced digital video studios in China, including Asia's largest indoor motion capture studio that allows XR shooting, which is equipped with the world's top Vicon motion-capture system and leading LED technology. Dawa Technology owns cutting-edge technology in areas that include virtual idols, VR, virtual production, digital twins and other virtual technologies, as well as digital avatars, real-time visual effects, and AI creation tools, which are all necessary advanced technologies and components for the construction of Metaverse AI.

Qi Lu, founder and chairman of Dawa Technology, commented, "The Metaverse AI tool will solve a series of pain points in the construction of the Metaverse field, making the construction of the virtual world faster and more convenient. The 1.0 version of the cloud production platform will have core functions such as virtual asset management, film production pipelines, business systems, social systems, online education, and collaborative development. This will provide professional and complete new era digital content production solutions for individual users, institutions, and enterprises who intend to accelerate their entry into the Metaverse ecosystem. This cooperation will effectively promote the development of related businesses by leveraging the strong platform strength of Lion Group. We intend to use the complementary advantages between both parties to achieve breakthroughs in the field of creation of the Metaverse, and embrace the future together."

Mr. Wang Chunning (Wilson), Chief Executive Officer of Lion commented, "Metaverse represents a large potential market for Lion. Our cooperation with Dawa Technology to develop the Metaverse AI tool represents an important step of our entry into the Metaverse field. The Metaverse AI tool is fundamental to the creation and continuous growth of the Metaverse field. We believe this reshaped virtual world of human cognition has strong practical guiding significance and commercial value. We believe the value of the Metaverse production platform will grow rapidly over time. Concurrently, developments in the field of blockchain technology and NFT will also play a key role in shaping the Metaverse.  Earlier this year, we independently developed and operated the cross-chain high-expansion NFT one-stop trading platform Meta World, which was also one of the important layouts for the innovation and development of the Metaverse field. In the future, we intend to continue our efforts to develop future industries related to Metaverse."