Future FinTech Group (FTFT) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01We are involved, and may become involved in the future, in disputes and legal or regulatory proceedings that, could materially and adversely affect our business, financial condition and results of operations and cause the value of our securities to significantly decline or be worthless
2. 02An occurrence of an uncontrollable event such as the COVID-19 pandemic may negatively affect our operations and financial results
3. 03Economic conditions have had and may continue to have an adverse effect on our customers’ spending on our products and services
4. 04The supply chain financing service industry is an emerging and rapidly evolving industry in China and we might not achieve the development as we expected
5. 05The supply chain financing service industry is increasingly competitive in China. If we fail to compete effectively, we may lose our customers and partners, which could materially and adversely affect our business, financial condition and results of operations
6. 06Our supply chain finance business faces risks in receivables, timely supplies, credit evaluation and commodity price fluctuations all of which could materially and adversely affect our business, financial condition and results of operations
7. 07The brokerage and investment banking service industry are intensely competitive in Hong Kong. If we are unable to compete effectively, we may lose business and our results of operations and financial condition may be materially and adversely affected
8. 08We may engage in future acquisitions involving significant expenditures of cash, the incurrence of debt or the issuance of stock, all of which could have a materially adverse effect on our operating results
9. 09We may not be able to prevent others from unauthorized use of our intellectual property, which could harm our business and competitive position
10. 10Intellectual property infringement claims may adversely impact our results of operations
11. 11Our business depends on internet, our websites, network infrastructure and processing systems
12. 12We are subject to cyber security risks and may incur increasing costs in an effort to minimize those risks and to respond to cyber incidents
13. 13As a public company, we are obligated to maintain effective internal controls over financial reporting. Our internal controls may be determined not to be effective, which may adversely affect investor confidence in us and, as a result, decrease the value of our Common Stock
14. 14We may need additional capital to fund our future operations and, if it is not available when needed, we may need to reduce our planned development and marketing efforts, which may reduce our sales revenue
15. 15If our costs and demands upon management increase disproportionately to the growth of our business and revenue as a result of complying with the laws and regulations affecting public companies, our operating results could be harmed

Risks Related to Doing Business in the PRC

1. 16Changes in China’s economic, political or social conditions or government policies could have a material adverse effect on our business and results of operations
2. 17Uncertainties and quick change in the interpretation and enforcement of Chinese laws and regulations with little advance notice could result in a material and negative impact our business operations, decrease the value of our shares of common stock and limit the legal protections available to us
3. 18There are uncertainties under the PRC Securities Law relating to the procedures and requisite timing for the U.S. securities regulatory agencies to conduct investigations and collect evidence within the territory of the PRC
4. 19Governmental control of currency conversion may affect the value of shareholder investments
5. 20The fluctuation of the RMB may harm shareholder investments
6. 21PRC regulations relating to offshore investment activities by PRC residents may limit our PRC subsidiary’s ability to increase its registered capital or distribute profits to us or otherwise expose us or our PRC resident beneficial owners to liability and penalties under PRC law
7. 22Any failure to comply with PRC regulations regarding the registration requirements for employee stock incentive plans may subject the PRC plan participants or us to fines and other legal or administrative sanctions
8. 23Because our principal assets are located outside of the United States, it may be difficult for investors to use U.S. securities laws to enforce their rights against us, our officers and directors in the United States or to enforce judgments of United States courts against us or them in the PRC

Risks Related to Our Common Stock

1. 24We are authorized to issue blank check preferred stock, which may be issued without shareholder approval and which may adversely affect the rights of holders of our Common Stock
2. 25Zeyao Xue has control over key decision making as a result of his control of a substantial amount of our voting stock
3. 26Anti-takeover provisions in our charter documents and under Florida law could discourage, delay or prevent a change in control of our Company and may affect the trading price of our Common Stock
4. 27In recent years, our Common Stock has been in danger of being delisted from the NASDAQ Stock Market (“NASDAQ”)