UNITED STATES

 SECURITIES AND EXCHANGE COMMISSION

 Washington, D.C. 20549

 FORM 10-K

 ANNUAL REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the fiscal year ended December 31, 2024

 OR

 TRANSITION REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the Transition Period from _________ to _________

 Commission File Number 001-34502

 Future FinTech Group Inc.

 (Exact name of registrant as specified in its charter)

 Florida

 98-0222013

 (State or other jurisdiction of

 (I.R.S. Employer

 incorporation or organization)

 Identification Number)

 Americas Tower, 1177 Avenue of The Americas
 Suite 5100, New York, NY

 10036

 (Address of principal executive offices)

 (Zip Code)

 Registrant's Telephone Number: 888 - 622-1218

 Securities registered pursuant to Section 12(b)
of the Act:

 Title of each class

 Trading Symbol(s)

 Name of each exchange on which registered

 Common Stock, $0.001 par value

 FTFT

 Nasdaq Capital Market

 Securities registered pursuant to Section 12(g)
of the Act:

 None

 (Title of class)

 Indicate by check mark if the registrant is a
well-known seasoned issuer, as defined in rule 405 of the Securities Act. Yes No

 Indicate by check mark if the registrant is not
required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No

(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements
for the past 90 days. Yes No

has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405
of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes
 No

 Indicate by check mark if disclosure of delinquent
filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant's knowledge,
in definitive proxy statement or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. Yes No

is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.
See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company,"
and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 Large accelerated filer

 Accelerated filer

 Non-accelerated filer

 Smaller reporting company

 Emerging growth company

 If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act.

has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial
reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or
issued its audit report.

 If securities are registered pursuant to Section
12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction
of an error to previously issued financial statements.

 Indicate by check mark whether any of those error
corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's
executive officers during the relevant recovery period pursuant to §240.10D-1(b).

is a shell company (as defined in rule 12b-2 of the Exchange Act). Yes No

 The aggregate market value of voting and nonvoting
stock held by non-affiliates of the registrant, based upon the closing price of $0.48 per share for shares of the registrant's Common
Stock on June 28, 2024, the last business day of the registrant's most recently completed second fiscal quarter as reported by the
NASDAQ Capital Market, was approximately $ 7.54 million. (The Company effected a 1 for 10 reverse stock split on April 1, 2025)

 The number of shares of Common Stock outstanding as of April 11, 2025
was 3,050,770.

 Auditor Firm ID:
 6901
 Auditor Name:
 Fortune CPA, Inc.
 Auditor Location:
 California

 Annual
Report on Form 10-K for Fiscal Year Ended December 31, 2023

 ITEM 1 – BUSINESS

 ITEM 1A – RISK FACTORS

 ITEM 1B – UNRESOLVED STAFF COMMENTS

 ITEM 1C – Cybersecurity

 ITEM 2 – PROPERTIES

 ITEM 3 – LEGAL PROCEEDINGS

 ITEM 4 – MINE SAFETY DISCLOSURES

 ITEM 5 – MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

 ITEM 6 – [RESERVED]

 ITEM 7 – MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 ITEM 7A – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 ITEM 8 – FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 ITEM 9 – CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

 ITEM 9A – CONTROLS AND PROCEDURES

 ITEM 9B – OTHER INFORMATION

 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS.

 ITEM 10 – DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 ITEM 11 – EXECUTIVE COMPENSATION

 ITEM 12 – SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 ITEM 13 – CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

 ITEM 14 – PRINCIPAL ACCOUNTING FEES AND SERVICES

 ITEM 15 – EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

 SIGNATURE

 i

 NOTE CONCERNING FORWARD-LOOKING STATEMENTS

 This Annual Report on Form 10-K for the fiscal
year ended December 31, 2024 ("Annual Report") of Future Fintech Group, Inc. (together with our direct or indirect subsidiaries,
"we," "us," "our", "the Company" or "Future FinTech") includes forward-looking
statements regarding, among other things, Future FinTech's plans, strategies and prospects, both business and financial. Although
Future FinTech believes that its plans, intentions and expectations reflected in or suggested by these forward-looking statements are
reasonable, Future FinTech cannot assure you that it will achieve or realize these plans, intentions or expectations. Forward-looking
statements are inherently subject to risks, uncertainties and assumptions including, without limitation, the factors described under " Risk
Factors " from time to time in Future FinTech's filings with the SEC. Many of the forward-looking statements contained
in this presentation may be identified by the use of forward-looking words such as "believe", "expect", "anticipate",
"should", "planned", "will", "may", "intend", "estimated", "aim",
"on track", "target", "opportunity", "tentative", "positioning", "designed",
"create", "predict", "project", "seek", "would", "could", "continue",
"ongoing", "upside", "increases" and "potential", among others. Important factors that
could cause actual results to differ materially from the forward-looking statements we make in this presentation are set forth in other
reports or documents that we file from time to time with the SEC, and include, but are not limited to:

 fluctuations in the supply of products from our suppliers;

 the expected growth of the supply chain financing industry in China, brokerage and investment banking business in Hong Kong and global financial technology industry;

 changes in general economic conditions and conditions adversely affecting the businesses in which Future FinTech is engaged;

 changes in U.S., China and global financial and equity markets, including market disruptions and significant interest rate fluctuations, which may impede our access to, or increase the cost of, external financing for our operations and investments;

 our success in implementing our business strategy, integrating the business that we have recently acquired and introducing new products and services;

 our ability to attract and retain customers;

 d evelopment of our litigation
with FT Global Capital, Inc.;

 impact of competitive activities on our business;

 the result of future financing efforts;

 risks associated with conducting business internationally and especially in the People's Republic of China ("PRC", or "China"), including currency fluctuations and devaluation, currency restrictions, local laws and restrictions and possible social, political and economic instability; and

 other economic, financial and regulatory factors beyond the Company's control.

 Any or all of our forward-looking statements in
this report may turn out to be inaccurate. They can be affected by inaccurate assumptions we might make or by known or unknown risks or
uncertainties. Consequently, no forward-looking statement can be guaranteed. Actual future results may vary materially as a result of
various factors, including, without limitation, the risks outlined under "Item 1A. Risk Factors" in this Annual Report. In
light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this filing will in
fact occur. You should not place undue reliance on these forward-looking statements.

 We undertake no obligation to update forward-looking
statements to reflect subsequent events, changed circumstances or the occurrence of unanticipated events except as required by law.

 ii

 Future Fintech Group, Inc. is a holding company
incorporated in Florida and it is not an operating company. As a holding company with no material operations of its own, the Company conducts
its business through its subsidiaries. It is the holding company that the investors will hold an interest.

 Unless otherwise stated, as used in this report
"we," "us," "Company," "our," or "Future FinTech" refers to Future FinTech
Group Inc., a Florida holding company, and "VIE" refers to the PRC variable interest entity, Cloud Chain E-Commerce (Tianjin)
Co., Ltd. (E-Commerce Tianjin).

 Summary of Significant Risk Factors

 The following is a summary
of significant risk factors and uncertainties that may affect our business, which are discussed in more detail below in "Part I — Item
1A — Risk Factors" included in this Annual Report on Form 10-K:

 Risks Related to Our Business

 We
are involved, and may become involved in the future, in disputes and other legal or regulatory proceedings that, if adversely decided
or settled, could materially and adversely affect our business, financial condition and results of operations a nd
cause the value of our securities to significantly decline or be worthless. (see page 22 of this report)

 An occurrence of an uncontrollable event such as the COVID-19 pandemic may negatively affect our operations and financial results. (see page 23 of this report)

 The supply chain financing service industry is an emerging and rapidly evolving industry in China and we might not achieve the development as we expected. (see page 24 of this report)

 The 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. (see page 24 of this report)

 We are subject to cyber security risks and may incur increasing costs in an effort to minimize those risks and to respond to cyber incidents. (see page 27 of this report)

 Our business depends on internet, our websites, network infrastructure and processing system. (see page 26 of this report)

 Risks Related to Doing Business in the PRC

 Changes in China's economic, political or social conditions or government policies could have a material adverse effect on our business and results of operations. (see page 28 of this report)

 Uncertainties 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. (see page 30 of this report)

 iii

 The Chinese government exerts substantial influence over the manner in which we must conduct our business as well as more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers, and may intervene or influence our operations at any time, which could result in a material change in our operations, and significantly limit or completely hinder our ability to offer or continue to offer securities to investors and, and cause the value of our shares of common stock to significantly decline or be worthless. (see page 31 of this report)

 There 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. (see page 32 of this report)

 We could be restricted from paying dividends to shareholders due to PRC laws and other contractual requirements. To the extent cash and/or assets in the business are in the PRC and/or Hong Kong or our PRC and/or Hong Kong entities, and the WFOE, such funds and/or assets may not be available to fund operations or for other use outside of the PRC and/or Hong Kong due to interventions in or the imposition of restrictions and limitations on the ability of us or our subsidiaries by the PRC government to transfer cash and/or assets. (see page 33 of this report)

 The Holding Foreign Companies Accountable Act, or the HFCA Act, and the related regulations are evolving quickly. Further implementations and interpretations of or amendments to the HFCA Act or the related regulations, or a PCOAB's determination of its lack of sufficient access to inspect our auditor, might pose regulatory risks to and impose restrictions on us because of our operations in mainland China. A potential consequence is that our shares of common stock may be delisted by the exchange. The delisting of our common stock, or the threat of our common stock being delisted, may materially and adversely affect the value of your investment. Additionally, the inability of the PCAOB to conduct full inspections of our auditor deprives our investors of the benefits of such inspections. (see page 36 of this report)

 The filing with the China
 Securities Regulatory Commission ("CSRC") is required in connection with any offering under New Overseas Listing Rules,
 and we currently are not in compliance with such rules and we may face sanctions and penalties by the CSRC or other PRC regulatory
 agencies for failure to timely file with the CSRC. (see page 35 of this report)

 Risks Related to Our Common Stock

 We 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. (see page 37 of this report)

 In recent years, our Common Stock has been in danger of being delisted from the NASDAQ Stock Market ("NASDAQ"). (see page 38 of this report)

 Other risks and uncertainties, including those listed under "Part
I—Item 1A — Risk Factors".

 These factors should not be construed as exhaustive,
and should be read with the other cautionary statements, and other information in this Annual Report on Form 10-K, and our other
filings with the SEC.

 iv

 ITEM 1 – BUSINESS

 Overview

 Future FinTech is a holding company incorporated
under the laws of the State of Florida. The Company historically engaged in the production and sale of fruit juice concentrates (including
fruit purees and fruit juices), fruit beverages (including fruit juice beverages and fruit cider beverages) in the PRC. Due to drastically
increased production costs and tightened environmental laws in China, the Company had transformed its business from fruit juice manufacturing
and distribution to financial technology related service businesses. The main business of the Company included supply chain financing
services and trading in China, asset management business in Hong Kong and cross-border money transfer service in UK. The Company also
expanded into brokerage and investment banking business in Hong Kong and cryptocurrency mining farm in the U.S. The Company had
a contractual arrangements with a VIE E-Commerce Tianjin in China, which has generated minimal revenue and business since 2021 due to
the negative impact caused by COVID-19. The Company started the process to close it down in November 2023 and completed deregistration
and dissolution of the VIE with local authority on March 7, 2024. Due to worsened investment market sentiment in Hong Kong, the Company
sold its ownership in Nice Talent Asset Management Limited ("NTAM") to a third party for HK$2.4 million (approximately $300,000)
in November 2024 and is no longer in asset management business in Hong Kong. On December 6, 2024, the Company agreed to sell all issued
and outstanding shares of FTFT SuperComputing Inc. a wholly owned subsidiary of the Company ("FTFT SuperComputing") to DDMM
Capital LLC (the "Buyer") for a purchase price that equals to: (i) the assumption of the obligations of FTFT SuperComputing
totaling $973,072.24 and (ii)$1,000,000, which was paid to an account at Olshan Frome Wolosky LLP to satisfy, in part, the right of payment
held by FT Global Capital, Inc. arising from the judgment entered in favor of FT Global and against the Company registered in the Southern
District of New York and all matters pertaining to such litigation. The closing of the transactions contemplated by the Agreement took
place on December 9, 2024. On December 18, 2024, the Company sold all of its interest and ownership of Future Fintech Digital Capital
Management LLC, FTFT UK Limited, DigiPay FinTech Limited, GlobalKey SharedMall Limited, Future Fintech Labs Inc., and Future Fintech Digital
Number One GP, LLC (USA) to Alec Orudjiev, the general counsel of FT Global for $25,000 through the court ordered auction by the United
States Marshal for the Southern District of New York. Currently, the main business of the Company is supply-chain financing services and
trading in China.

 There are legal and operational risks associated
with being based in and having a substantial majority of operations in China and Hong Kong. These risks could result in a material change
in our operations and/or the value of our common stock or could significantly limit or completely hinder our ability to offer or continue
to offer securities to investors and cause the value of our shares to significantly decline or be worthless. In the past few years, the
PRC government initiated a series of regulatory actions and statements to regulate business operations in China with little advance notice,
including cracking down on illegal activities in the securities market, enhancing supervision over China-based companies listed overseas
using variable interest entity structure, adopting new measures to extend the scope of cybersecurity reviews, and expanding the efforts
in anti-monopoly enforcement. On July 6, 2021, the General Office of the Communist Party of China Central Committee and the General Office
of the State Council jointly issued an announcement to crack down on illegal activities in the securities market and promote the high-quality
development of the capital market, which, among other things, requires the relevant governmental authorities to strengthen cross-border
oversight of law-enforcement and judicial cooperation, to enhance supervision over China-based companies listed overseas, and to establish
and improve the system of extraterritorial application of the PRC securities laws. On February 15, 2022, Cybersecurity Review Measures
published by Cyberspace Administration of China or the CAC, National Development and Reform Commission, Ministry of Industry and Information
Technology, Ministry of Public Security, Ministry of State Security, Ministry of Finance, Ministry of Commerce, People's Bank of
China, State Administration of Radio and Television, China Securities Regulatory Commission ("CSRC"), State Secrecy Administration
and State Cryptography Administration became effective, which provides that, Critical Information Infrastructure Operators ("CIIOs")
that intend to purchase internet products and services and Online Platform Operators engaging in data processing activities that affect
or may affect national security shall be subject to the cybersecurity review by the Cybersecurity Review Office. On July 7, 2022, CAC
promulgated the Measures for the Security Assessment of Data Cross-border Transfer, effective on September 1, 2022, which requires the
data processors to apply for data cross-border security assessment coordinated by the CAC under the following circumstances: (i) any data
processor transfers important data to overseas; (ii) any critical information infrastructure operator or data processor who processes
personal information of over 1 million people provides personal information to overseas; (iii) any data processor who provides personal
information to overseas and has already provided personal information of more than 100,000 people or sensitive personal information of
more than 10,000 people to overseas since January 1st of the previous year; and (iv) other circumstances under which the data cross-border
transfer security assessment is required as prescribed by the CAC. On February 17, 2023, the CSRC released New Overseas Listing Rules
with five interpretive guidelines, which took effect on March 31, 2023. The New Overseas Listing Rules require Chinese domestic enterprises
to complete filings with CSRC and report related information under certain circumstances, such as: a) an issuer making an application
for initial public offering and listing in an overseas market; b) an issuer making an overseas securities offering after having been listed
on an overseas market; c) a domestic company seeking an overseas direct or indirect listing of its assets through single or multiple acquisition(s),
share swap, transfer of shares or other means. According to the Notice on Arrangements for Overseas Securities Offering and Listing by
Domestic Enterprises, published by the CSRC on February 17, 2023, a company that (i) has already completed overseas listing or (ii) has
already obtained the approval for the offering or listing from overseas securities regulators or exchanges but has not completed such
offering or listing before effective date of the new rules and also completes the offering or listing before September 30, 2023 are considered
as an existing listed company and is not required to make any filing until it conducts a new offering in the future. Furthermore, upon
the occurrence of any of the material events specified below after an issuer has completed its offering and listed its securities on an
overseas stock exchange, the issuer shall submit a report thereof to the CSRC within 3 business days after the occurrence and public disclosure
of the event: (i) change of control; (ii) investigations or sanctions imposed by overseas securities regulatory agencies or other competent
authorities; (iii) change of listing status or transfer of listing segment; or (iv) voluntary or mandatory delisting. The New Overseas
Listing Rules stipulate the legal consequences to the companies for breaches, including failure to fulfill filing obligations or filing
documents having false statement or misleading information or material omissions, which may result in a fine ranging from RMB1 million
to RMB10 million, and in cases of severe violations, the relevant responsible persons may also be barred from entering the securities
market. On February 24, 2023, the CSRC, the Ministry of Finance, the National Administration of State Secretes Protection and the
National Archives Administration released the Provisions on Strengthening the Confidentiality and Archives Administration Related to the
Overseas Securities Offering and Listing by Domestic Companies, or the Confidentiality and Archives Administration Provisions, which took
effect on March 31, 2023. PRC domestic enterprises seeking to offer securities and list in overseas markets, either directly or indirectly,
shall establish and improve the system of confidentiality and archives work, and shall complete approval and filing procedures with competent
authorities, if such PRC domestic enterprises or their overseas listing entities provide or publicly disclose documents or materials involving
state secrets and work secrets of state organs to relevant securities companies, securities service institutions, overseas regulatory
agencies and other entities and individuals. It further stipulates that (i) providing or publicly disclosing documents and materials which
may adversely affect national security or public interests, and accounting records or photocopies thereof to relevant securities companies,
securities service institutions, overseas regulatory agencies and other entities and individuals shall be subject to corresponding procedures
in accordance with relevant laws and regulations; and (ii) any working papers formed in the territory of the PRC by securities companies
and securities service agencies that provide domestic enterprises with securities services relating to overseas securities issuance and
listing shall be stored in the territory of the PRC, the outbound transfer of which shall be subject to corresponding procedures in accordance
with relevant laws and regulations. As of the date of this report, these new laws and guidelines that became effective have not impacted
the Company's ability to conduct its business, accept foreign investment or list on a U.S. or other foreign stock exchange except
for the filing requirement under New Overseas Listing Rules. The Company is still processing the filings with CSRC for its offerings since
the effective of New Overseas Listing Rules and has not complied the filing requirements yet which would subject the Company to fines
and other penalties for violation of New Overseas Listing Rules. In addition, new rules and regulations could be adopted and there are
uncertainties in the interpretation and enforcement of existing laws and guidelines, which could materially and adversely impact our business
and financial outlook and may impact our ability to accept foreign investments or continue to list on a U.S. or other foreign stock exchange.
Any change in foreign investment regulations, and other policies in China or related enforcement actions by China government could result
in a material change in our operations and the value of our securities and could significantly limit or completely hinder our ability
to offer our securities to investors or cause the value of our securities to significantly decline or be worthless.

 In the opinion of our PRC counsel Fengdong Law
Firm, subsidiaries of the Company are incorporated and operating in mainland China have received all required permissions from Chinese
authorities to operate their current business in China, including Business licenses and Bank Account Open Permits, as of the date of this
report.

 In the opinion of Fengdong Law Firm, as of the
date of this report, we, our subsidiaries in China are not subject to permission requirements from the CSRC or CAC or any other entity
that is required to approve of their operations and have not received or were denied such permissions by any PRC authorities. Currently,
we are required to file with CSRC for any offerings under New Overseas Listing Rules. The Company is still processing the filings with
CSRC for its offerings since the effective of New Overseas Listing Rules and has not complied the filing requirements yet which would
subject the Company to fines and other penalties for violation of New Overseas Listing Rules. Given the current PRC regulatory environment,
it is uncertain whether we, our subsidiaries, will be able to obtain permission from the PRC government to offer our securities to foreign
investors, and even when such permission is obtained, whether it will be denied or rescinded. If we or any of our subsidiaries do not
receive or maintain such permissions or approvals, inadvertently conclude that such permissions or approvals are not required, or applicable
laws, regulations, or interpretations change and we or our subsidiaries are required to obtain such permissions or approvals, it could
significantly limit or completely hinder our ability to offer or continue to offer our securities to investors and cause the value of
our securities to significantly decline or become worthless. Failure to take timely and appropriate measures to adapt to any of these
or similar regulatory compliance challenges could materially and adversely affect our current corporate structure and business operations.

 The Company's auditor,
Fortune CPA Inc. is headquartered in California and the Public Company Accounting Oversight Board (United States) (the "PCAOB")
currently has access to inspect the working papers of our auditor. On December 15, 2022, the PCAOB Board determined that the PCAOB was
able to secure complete access to inspect and investigate registered public accounting firms headquartered in mainland China and Hong
Kong and voted to vacate its previous determinations to the contrary. However, should PRC authorities obstruct or otherwise fail to facilitate
the PCAOB's access in the future, the PCAOB Board will consider the need to issue a new determination. On December 29, 2022, a legislation
entitled "Consolidated Appropriations Act, 2023" (the "Consolidated Appropriations Act"), was signed into law
by President Biden. The Consolidated Appropriations Act contained, among other things, an identical provision to Accelerating Holding
Foreign Companies Accountable Act, which reduces the number of consecutive non-inspection years required for triggering the prohibitions
under the HFCA Act from three years to two. The Holding Foreign Companies Accountable Act and related regulations currently
does not affect the Company as the Company's auditor is subject to PCAOB's inspection and investigation.

 As a holding company,
we may rely on dividends and other distributions on equity paid by our subsidiaries for our cash and financing requirements. If any of
our subsidiaries incurs debt on its own behalf in the future, the instruments governing such debt may restrict their ability to pay dividends
to us. However, neither any of our subsidiaries or the VIE has made any dividends, other distributions or cash transfers to our holding
company or any U.S. investors as of the date of this report. In the future, cash proceeds raised from overseas financing activities may
be transferred by us to our PRC subsidiaries via capital contribution or shareholder loans, as the case may be. As a holding company,
we may rely principally on dividends and other distributions on equity paid by our subsidiaries for our cash and financing requirements
we may have. As of the date of this report, we do not have cash management policies and procedures in place that dictate how funds are
transferred through our organization. Rather, the funds can be transferred in accordance with the applicable PRC laws and regulations. See
" Dividend Distribution and Cash Transfer Between the Holding Company and Subsidiaries."

 As of the date of this
report, no dividends or distributions have been made between the holding company, its subsidiaries, and consolidated VIE, or to investors
including U.S. investors. The holding company and its subsidiaries, do not have any plan to distribute dividend in the foreseeable future.
To the extent cash and/or assets in the business are in the PRC and/or Hong Kong or our PRC and/or Hong Kong entities,, such funds and/or
assets may not be available to fund operations or for other use outside of the PRC and/or Hong Kong due to interventions in or the imposition
of restrictions and limitations on the ability of us or our subsidiaries by the PRC government to transfer cash and/or assets. See " Dividend
Distribution and Cash Transfer Between the Holding Company and Subsidiary." and "Risk Factor - We could be restricted from
paying dividends to shareholders due to PRC laws and other contractual requirements. To the extent cash and/or assets in the business
are in the PRC and/or Hong Kong or our PRC and/or Hong Kong entities, and the WFOE, such funds and/or assets may not be available to fund
operations or for other use outside of the PRC and/or Hong Kong due to interventions in or the imposition of restrictions and limitations
on the ability of us or our subsidiaries by the PRC government to transfer cash and/or assets."

 On April 18, 2022, the
Company and Future Fintech (Hong Kong) Limited, a wholly owned subsidiary of the Company jointly acquired 100% equity interest of KAZAN
S.A., a company incorporated in Republic of Paraguay for $288. The Company owns 90% and FTFT HK owns 10% of Kazan S.A., respectively.
Kazan S.A. has no operation before the acquisition. The Company is developing bitcoin and other cryptocurrency mining and related service
business in Paraguay. The Company has changed its name from KAZAN S.A to FTFT Paraguay S.A. on July 28, 2022 and it was dissolved in December
2023 as the Company was not able to develop the business in Paraguay as planned.

 On February 27, 2023,
Future FinTech (Hong Kong) Limited ("Buyer"), a company incorporated in Hong Kong and a wholly owned subsidiary of Future
FinTech Group Inc. (the "Company") entered into a Share Transfer Agreement (the "Agreement") with Alpha Financial
Limited, a company incorporated in Hong Kong ("Seller") and sole owner and shareholder of Alpha International Securities (Hong
Kong) Limited, a company incorporated in Hong Kong ("Alpha HK") and Alpha Information Service (Shenzhen) Co., Ltd., a company
incorporated in China ("Alpha SZ"). Alpha HK holds Type 1 'Securities Trading', Type 2 'Futures Contract
Trading' and Type 4 'Securities Consulting' financial licenses issued by the Hong Kong Securities and Futures Commission.
Alpha SZ provides technical support services to Alpha HK. The share transfer transaction was approved by the Securities and Futures
Commission of Hong Kong ("SFC") in August 2023 and the acquisition was closed on November 7, 2023. The names of the two entities
were subsequently changed to 'FTFT International Securities and Futures Limited' and 'FTFT Information Services (Shenzhen)
Co. Ltd.', respectively.

 On September 4, 2024, the Company deregistered
and dissolved the Tianjin Future Private Equity Fund Management Partnership, a Limited Partnership under the laws of China.

 On December 6, 2024, the Company and FTFT SuperComputing
Inc. a wholly owned subsidiary of the Company ("FTFT SuperComputing") entered into a Stock Purchase Agreement (the "Agreement")
with DDMM Capital LLC (the "Buyer"). Pursuant to the terms of the Agreement, the Company sold all of the issued and
outstanding shares of FTFT SuperComputing to the Buyer for a purchase price that equals to: (i) the assumption of the obligations of FTFT
SuperComputing totaling $973,072.24 and (ii)$1,000,000, which was paid to an account at Olshan Frome Wolosky LLP to satisfy, in part,
the right of payment held by FT Global Capital, Inc. arising from the judgment entered in favor of FT Global and against the Company registered
in the Southern District of New York and all matters pertaining to such litigation. The closing of the transactions contemplated by the
Agreement took place on December 9, 2024.

 On December 18, 2024, the Company sold all of
its interest and ownership of Future Fintech Digital Capital Management LLC, FTFT UK Limited, DigiPay FinTech Limited, GlobalKey SharedMall
Limited, Future Fintech Labs Inc., and Future Fintech Digital Number One GP, LLC (USA) to Alec Orudjiev, the general counsel of FT Global
for $25,000 through the court ordered auction by the United States Marshal for the Southern District of New York.

 In August 2024, NTAM
raised HK$3,007,200 (approximately $385,538) by way of rights subscription offered to its existing shareholders. NTAM issued additional
168 shares with HK$17,900 each. Three existing shareholders of NTAM subscribed shares and Future Fintech (Hong Kong) Limited did not participate
in the subscription and an outsider investor purchased the shares. After the right subscription, the shareholding percentage of NTAM by
Future Fintech (Hong Kong) Limited passively decreased from 77.14% to 42.86%.

 On October 18, 2024,
Future FinTech (Hong Kong) Limited., a wholly owned subsidiary of the Company ("Seller"), Nice Talent Asset Management Limited,
a limited company organized under the laws of Hong Kong ("NTAM") and Ms. Siu Chin Wei, a natural person and unrelated third
party with an identity card of Hong Kong ("Siu" or the "Buyer") entered into a Sales and Purchase Agreement of
Shares, pursuant to which Seller sold its 42.86% ownership of NTAM to the Buyer for HK$2.4 million (approximately $300,000) and the transaction
was closed on November 27, 2024.

 On January 26, 2023,
the Company filed with the Florida Secretary of State's office Articles of Amendment (the "Amendment") to amend
its Second Amended and Restated Articles of Incorporation, as amended ("Articles of Incorporation"). As a result of the Amendment,
the Company has authorized and approved a 1-for-5 reverse stock split of the Company's authorized shares of common stock from 300,000,000
shares to 60,000,000 shares, accompanied by a corresponding decrease in the Company's issued and outstanding shares of common stock
(the "2023 Reverse Stock Split").

 On March 27, 2025, the
Company filed with the Florida Secretary of State's office Articles of Amendment (the "Amendment") to amend its
Second Amended and Restated Articles of Incorporation, as amended ("Articles of Incorporation"). As a result of the Amendment,
the Company has authorized and approved a 1-for-10 reverse stock split of the Company's authorized shares of common stock from 60,000,000
shares to 6,000,000 shares, accompanied by a corresponding decrease in the Company's issued and outstanding shares of common stock
("2025 Reverse Stock Split", collectively with 2023 Reverse Stock Split as "Reverse Splits"). The common stock
will continue to be $0.001 par value. The Company rounded up the fractional shares that result from the 2025 Reverse Stock Split and no
fractional shares will be issued in connection with the 2025 Reverse Stock Split and no cash or other consideration will be paid in connection
with any fractional shares that would otherwise have resulted from the 2025 Reverse Stock Split. No changes are being made to the number
of preferred shares of the Company which remain as 10,000,000 preferred shares as authorized but not issued. The amendment to the Articles
of Incorporation of the Company took effect at 1:00pm E.T. on April 1, 2025.

 The Company operated
a blockchain based online shopping platform, Chain Cloud Mall ("CCM") Chain Cloud Mall through its VIE and its business was
materially and negatively affected during the outbreak of COVID-19 because the Company was unable to implement its promotion strategy
to enroll new members through training of such members and distributors via meetings and conferences which was not possible during the
outbreak of COVID-19. CCM has generated minimal revenue and business since 2021, despite the Company transformed the member-based business
model of CCM to a sale agent based "Enterprise Communication as A Service" or eCAAS platform during the second quarter of
2021. The Company started a process to close it down in November 2023 and completed deregistration and dissolution of the VIE with local
authority on March 7, 2024.

 The Company currently has one directly controlled
subsidiary Future FinTech (Hong Kong) Limited, a company incorporated under the laws of Hong Kong.

 SkyPeople Foods Holdings Limited ("SkyPeople
BVI") was a wholly owned subsidiary of the Company and a company organized under the laws of the British Virgin Islands, which held
100% of the equity interest of HeDeTang Holdings (HK) Ltd. ("HeDeTang HK"), a company organized under the laws of the Hong
Kong Special Administrative Region of the People's Republic of China ("Hong Kong"), and HeDeTang HK held 73.42% of the
equity interest of SkyPeople Juice Group Co., Ltd., ("SkyPeople (China)"), a company incorporated under the laws of the PRC.
SkyPeople (China) had eleven subsidiaries in the PRC, which were mainly involved in the production and sales of fruit juice concentrates,
fruit juice beverages and other fruit-related products in the PRC and overseas markets. On February 27, 2020, SkyPeople BVI (the "Seller")
completed the transfer of its ownership of HeDeTang HK to New Continent International Co., Ltd. (the "Buyer"), an unrelated
third party and a company incorporated in the British Virgin Islands for a total price of RMB 0.6 million (approximately $85,714), pursuant
to a Share Transfer Agreement entered into by the Seller and the Buyer on September 18, 2019 and approved at the special shareholders
meeting of the Company on February 26, 2020 (the "Sale Transaction"). SkyPeople BVI had no operational assets or business
after the transfer and the Company dissolved SkyPeople BVI on July 27, 2020.

 Our organizational structure as of December 31,
2024 is set forth in the diagram:

 VIE Contractual Arrangements

 On July 31, 2019, Cloud
Chain Network and Technology (Tianjin) Co., Limited ("CCM Network" or "CCM Tianjin", formerly known as Chain Cloud
Mall Network and Technology (Tianjin) Co., Limited), Cloud Chain E-Commerce (Tianjin) Co., Ltd., formerly known as Chain Cloud Mall E-Commerce
(Tianjin) Co., Ltd. ("E-Commerce Tianjin"), a limited liability company incorporated under the laws of China, and Mr. Zeyao
Xue and Mr. Kai Xu, citizens of China and together 100% shareholders of E-Commerce Tianjin, entered into the following agreements, or
collectively, the "Variable Interest Entity Agreements" or "VIE Agreements," pursuant to which CCM Network has
contractual rights to control and operate the business of E-commerce Tianjin (the "VIE"). Mr. Zeyao Xue is a major shareholder
of the Company. Mr. Kai Xu was the Chief Operating Officer of the Company then and currently is the Deputy General Manager of FT
Commercial Group Ltd., a wholly owned subsidiary of the Company and the vice president of blockchain division of the Company. The
VIE was consolidated for accounting purposes but was not an entity in which we own equity.

 Pursuant to Chinese law
and regulations, a foreign owned enterprise cannot apply for and hold a license for operation of certain e-commerce businesses. CCM Network
is an indirectly wholly foreign owned enterprise of the Company ("WFOE"). In order to comply with Chinese law and regulations,
CCM Network agreed to provide E-Commerce Tianjin an Exclusive Operation and Use Rights Authorization to operate and use the Chain Cloud
Mall System owned by CCM Network.

 The following is a summary
of the contractual arrangements relating to E-Commerce Tianjin.

 Contractual Arrangements with The Consolidated
Affiliated Entity and Its Respective Shareholders

 The contractual arrangements
with the VIE and its shareholders allowed us to consolidate financial results of the VIE in our financial statements because we have satisfied
conditions for consolidation of the VIE under U.S. GAAP, pursuant to which E-Commerce Tianjin is considered a VIE under the Statement
of Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810 "Consolidation",
because the equity investments in E-Commerce Tianjin no longer have the characteristics of a controlling financial interest, and the Company,
through CCM Network, is the primary beneficiary of E-Commerce Tianjin for accounting purposes. A VIE is an entity that either has a total
equity investment that is insufficient to finance its activities without additional subordinated financial support, or whose equity investors
lack the characteristics of a controlling financial interest, such as through voting rights, right to receive the expected residual returns
of the entity. The variable interest holder, if any, that has a controlling financial interest in a VIE is deemed to be the primary beneficiary
of, and must consolidate, the VIE. CCM Network had a controlling financial interest in, receives the economic benefits from, is the primary
beneficiary of and has the power to direct the activities of the VIE to the extent that it has satisfied the conditions for consolidation
of the VIE under U.S. GAAP. Pursuant to the contractual arrangements with CCM Network, E-Commerce Tianjin shall pay service fees equal
to all of its net profit after tax to CCM Network. Such contractual arrangements are designed so that the E-Commerce Tianjin would operate
for the benefit of CCM Network and ultimately, the Company.

 As a result of the contractual
arrangements with the VIE, we were regarded as the primary beneficiary of the VIE for accounting purposes, and we treat the VIE and its
subsidiaries as the consolidated affiliated entities under U.S. GAAP. We have consolidated the financial results of the VIE in our consolidated
financial statements in accordance with U.S. GAAP.

 Exclusive Technology Consulting and Service
Agreement.

 Pursuant to the Exclusive
Technology Consulting and Service Agreement, CCM Network agreed to act as the exclusive consultant of E-Commerce Tianjin and provide technology
consulting and services to E-Commerce Tianjin. In exchange, E-Commerce Tianjin agreed to pay CCM Network a technology consulting and service
fee, the amount of which is to be equivalent to the amount of net profit before tax of E-Commerce Tianjin, payable on a quarterly basis
after making up losses of previous years (if necessary) and deducting necessary costs and expenses related to the business operations
of E-Commerce Tianjin. Without the prior written consent of CCM Network, E-Commerce Tianjin may not accept the same or similar technology
consulting and services provided by any third party during the term of the agreement. All the benefits and interests generated from the
agreement, including but not limited to intellectual property rights, know-how and trade secrets, will be CCM Network's sole and
exclusive property. This agreement has a term of 10 years and may be extended unilaterally by CCM Network with CCM Network's written
confirmation prior to the expiration date. E-Commerce Tianjin cannot terminate the agreement early unless CCM Network commits fraud, gross
negligence or illegal acts, or becomes bankrupt or winds up.

 Exclusive Purchase Option Agreement and Power
of Attorney.

 Pursuant to the Exclusive
Purchase Option Agreement, Mr. Zeyao Xue and Mr. Kai Xu granted to CCM Network and any party designated by CCM Network the exclusive right
to purchase, at any time during the term of this agreement, all or part of the equity interests in E-Commerce Tianjin, or the "Equity
Interests," at a purchase price equal to the registered capital paid by Mr. Zeyao Xue and Mr. Kai Xu for the Equity Interests, or,
in the event that applicable law requires an appraisal of the Equity Interests, the lowest price permitted under applicable law. Pursuant
to powers of attorney executed by Mr. Zeyao Xue and Mr. Kai Xu, they irrevocably authorized any person appointed by CCM Network to exercise
all shareholder rights, including but not limited to voting on their behalf on all matters requiring approval of E-Commerce Tianjin's
shareholder, disposing of all or part of the shareholder's equity interest in E-Commerce Tianjin, and electing, appointing or removing
directors and executive officers. The person designated by CCM Network is entitled to dispose of dividends and profits on the equity interest
without reliance on any oral or written instructions of Mr. Zeyao Xue and Mr. Kai Xu. The powers of attorney will remain in force for
so long as Mr. Zeyao Xue and Mr. Kai Xu remain the shareholders of E-Commerce Tianjin. Mr. Zeyao Xue and Mr. Kai Xu have waived all the
rights which have been authorized to CCM Network's designated person under the powers of attorney.

 Equity Pledge Agreement.

 Pursuant to the Equity
Pledge Agreements, Mr. Zeyao Xue and Mr. Kai Xu pledged all of the Equity Interests to CCM Network to secure the full and complete performance
of the obligations and liabilities on the part of E-Commerce Tianjin and them under this and the above contractual arrangements. If E-Commerce
Tianjin, Mr. Zeyao Xue, or Mr. Kai Xu breaches their contractual obligations under these agreements, then CCM Network, as pledgee, will
have the right to dispose of the pledged equity interests. Mr. Zeyao Xue and Mr. Kai Xu agree that, during the term of the Equity Pledge
Agreements, they will not dispose of the pledged equity interests or create or allow any encumbrance on the pledged equity interests,
and they also agree that CCM Network's rights relating to the equity pledge should not be interfered with or impaired by the legal
actions of the shareholders of E-Commerce Tianjin, their successors or designees. During the term of the equity pledge, CCM Network has
the right to receive all of the dividends and profits distributed on the pledged equity. The Equity Pledge Agreements will terminate on
the second anniversary of the date when E-Commerce Tianjin, Mr. Zeyao Xue and Mr. Kai Xu have completed all their obligations under the
contractual agreements described above.

 Spousal Consent Letters. The
spouse of Mr. Kai Xu (Mr. Zeyao Xue is not married), the shareholder of E-Commerce Tianjin has signed a spousal consent letter agreeing
that the equity interests in E-Commerce Tianjin held by and registered under the name of such shareholder will be disposed pursuant to
the contractual agreements with CCM Network. The spouse of such shareholder agreed not to assert any rights over the equity interest in
E-Commerce Tianjin held by such shareholder.

 The VIE is consolidated
for accounting purposes but is not an entity in which we own equity. Since 2021, the VIE has generated minimal revenue and business for
the Company due to negative impact by COVID-19 and the Company started a process to close it down in November 2023. On March 7, 2024,
the Company completed deregistration and dissolution of the VIE with the approval by CCM Network, E-Commerce Tianjin, Mr. Zeyao Xue and
Mr. Kai Xu.

 Dividend Distribution and Cash Transfer
Between the Holding Company and Subsidiaries

 Our PRC operating entities receive a substantial
part of our revenue in the RMB. Under our current corporate structure, to fund any cash and financing requirements we may have, the Company
may rely on dividend payments from its ten direct wholly-owned subsidiaries. Under existing PRC foreign exchange regulations, payments
of current account items, such as profit distributions and trade and service-related foreign exchange transactions, can be made in foreign
currencies without prior approval from State Administration of Foreign Exchange or the SAFE by complying with certain procedural requirements.
Therefore, our Chinese subsidiaries are able to pay dividends in foreign currencies to us without prior approval from SAFE, subject to
the condition that the remittance of such dividends outside of the PRC complies with certain procedures under PRC foreign exchange regulation,
such as the overseas investment registrations by our shareholders or the ultimate shareholders of our corporate shareholders who are PRC
residents. Approval from or registration with appropriate government authorities is, however, required where the RMB is to be converted
into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies.
The PRC government may also at its discretion restrict access in the future to foreign currencies for current account transactions. For
the Company and our subsidiaries in Hong Kong, BVI, Japan, Cayman, UK, Dubai and U.S. ("Non-PRC Entities"), there is no restrictions
on foreign exchange for such entities and they are able to transfer cash among these entities across borders. Also, there is no restrictions
and limitations on the abilities of Non-PRC Entities to distribute earnings from their businesses, including from subsidiaries to the
parent company or from the Company to the U.S. investors.

 Current PRC regulations permit our PRC subsidiaries
to pay dividends to the Company only out of their accumulated profits, if any, determined in accordance with Chinese accounting standards
and regulations. In addition, each of our subsidiaries in China is required to set aside at least 10% of its after-tax profits each year,
if any, to fund a statutory reserve until such reserve reaches 50% of its registered capital. Each such entity in China is also required
to further set aside a portion of its after-tax profits to fund the employee welfare fund, although the amount to be set aside, if any,
is determined at the discretion of its board of directors. Although the statutory reserves can be used, among other ways, to increase
the registered capital and eliminate future losses in excess of retained earnings of the respective companies, the reserve funds are not
distributable as cash dividends except in the event of liquidation. Under the existing laws of Hong Kong, funds from capital accounts
can be repatriated and remitted overseas without restrictions, and there is no foreign exchange control imposed.

 To the extent cash and/or assets in the business
are in the PRC and/or Hong Kong or our PRC and/or Hong Kong entities, such funds and/or assets may not be available to fund operations
or for other use outside of the PRC and/or Hong Kong due to interventions in or the imposition of restrictions and limitations on the
ability of us or our subsidiaries by the PRC government to transfer cash and/or assets. See " Risk Factor - We could be restricted
from paying dividends to shareholders due to PRC laws and other contractual requirements. " and " Risk Factor - We could
be restricted from paying dividends to shareholders due to PRC laws and other contractual requirements. To the extent cash and/or assets
in the business are in the PRC and/or Hong Kong or our PRC and/or Hong Kong entities, such funds and/or assets may not be available to
fund operations or for other use outside of the PRC and/or Hong Kong due to interventions in or the imposition of restrictions and limitations
on the ability of us or our subsidiaries by the PRC government to transfer cash and/or assets." We intend to keep any future
earnings to re-invest in and finance the expansion of our business, and we do not anticipate that any cash dividends will be paid in the
foreseeable future. We currently don't have any cash management policies and procedures in place that dictate how funds are
transferred through our organization. Rather, the funds can be transferred in accordance with the applicable PRC laws and regulations.

 Cash dividends, if any, on our shares of common
stock will be paid in U.S. dollars. If we are considered a PRC tax resident enterprise for tax purposes, any dividends we pay to our overseas
shareholders may be regarded as China-sourced income and as a result may be subject to PRC withholding tax at a rate of up to 10.0%. Pursuant
to the Arrangement between the Mainland of China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation
and the Prevention of Fiscal Tax Evasion With Respect to Taxes On Income, or the Double Tax Avoidance Arrangement, the 10% withholding
tax rate may be lowered to 5%, if the recipient of the relevant dividends qualifies certain necessary requirements, including without
limitation that (a) the Hong Kong project must be the beneficial owner of the relevant dividends; and (b) the Hong Kong project must directly
hold no less than 25% share ownership in the PRC project during the 12 consecutive months preceding its receipt of the dividends. The
5% withholding tax rate, however, does not automatically apply and in current practice, a Hong Kong project must obtain a tax resident
certificate from the Hong Kong tax authority to apply for the 5% lower PRC withholding tax rate. As the Hong Kong tax authority will issue
such a tax resident certificate on a case-by-case basis, we cannot assure you that we will be able to obtain the tax resident certificate
from the relevant Hong Kong tax authority and enjoy the preferential withholding tax rate of 5% under the Double Taxation Arrangement
with respect to any dividends paid by our PRC subsidiaries to its immediate holding company, Future FinTech (Hong Kong) Limited. As of
the date of this report, we have not applied for the tax resident certificate from the relevant Hong Kong tax authority. Future FinTech
(Hong Kong) Limited intends to apply for the tax resident certificate if and when its PRC subsidiaries plan to declare and pay dividends
to Future FinTech (Hong Kong) Limited.

 Impact of COVID-19 on our Business

 In December 2019, a novel strain of coronavirus
was reported and has spread throughout China and other parts of the world. On March 11, 2020, the World Health Organization characterized
the outbreak as a "pandemic". In early 2020, Chinese government took emergency measures to combat the spread of the virus,
including quarantines, travel restrictions, and the temporary closure of office buildings and facilities in China. In response to
the evolving dynamics related to the COVID-19 outbreak, the Company was following the guidelines of local authorities as it prioritizes
the health and safety of its employees, contractors, suppliers and business partners. Our offices in China were closed and the employees
worked from home at the end of January 2020 until late March 2020. The quarantines, travel restrictions, and the temporary closure of
office buildings have materially negatively impacted our business. The outbreak has had and might continue to have disruption to our supply
chain, logistics providers, customers or our marketing activities with the new variants of COVID-19, which could materially adversely
impact our business and results of operations. There were outbreaks in various cities and provinces in China due to Omicron variant, such
as Xi'an city, Hong Kong, Shanghai, Beijing and other cities in 2022, which have resulted quarantines, travel restrictions, and
temporary closure of office buildings and facilities in these cities. In December 2022, the Chinese government eased its strict zero
COVID-19 policy which resulted in a surge of new COVID-19 cases during December 2022 and January 2023, which has disrupted our business
operations in China. The Company's promotion strategy of CCM Shopping Mall previously mainly relied on the training of members
and distributors through meetings and conferences. Chinese government put a restriction on large gatherings in 2020 and 2021, which made
the promotion strategy for our online e-commerce platforms difficult to implement and the Company experienced difficulties to subscribe
new members for its online e-commerce platforms. Since 2021, CCM generated minimal revenue and business for the Company. The Company
started a process to close it down in November 2023 and completed deregistration and dissolution of the VIE with local authority on March
7, 2024.

 While the potential economic impact brought by
new variants of COVID-19 may be difficult to assess or predict, a widespread pandemic could result in significant disruption of global
financial markets, reducing our ability to access capital, which could negatively affect our liquidity. Further, as we do not have access
to a revolving credit facility, there can be no assurance that we would be able to secure commercial debt financing in the future in the
event that we require additional capital. In the event that we do need to raise capital in the future and there is any outbreak due to
new variants, outbreak-related instability in the securities markets could adversely affect our ability to raise additional capital.

 Company Strategy and Principal Products and
Services

 Our core business historically was in the production
and sale of fruit juice concentrates (including fruit purees and fruit juices), fruit beverages (including fruit juice beverages and fruit
cider beverages) in the PRC and internationally. Due to drastically increased production cost and tightened environmental laws in China,
the Company has transformed its main business from fruit juice manufacturing and distribution to a real-name blockchain e-commerce platform
that integrates blockchain and internet technology in fiscal year 2019. Due to the outbreak of COVID-19, the Chinese government put
a restriction on large gatherings. These restrictions made the promotion strategy for our online e-commerce platforms difficult to implement
and the Company experienced difficulties to subscribe new members for its online e-commerce platforms. Since 2021, CCM e-commerce platform
has generated minimal revenue and business for the Company. The Company started a process to close it down in November 2023 and completed
deregistration and dissolution of the VIE with local authority on March 7, 2024. In November 2024, the Company sold NTAM to a third party
for HK$2.4 million. Currently, the Company mainly generates its revenues from its supply chain financing/trading business. During the
fiscal year of 2024, the supply chain financing business and asset management business of NTAM contributed 7% and 86% of our revenues,
respectively. During the fiscal year of 2023, the supply chain financing business and asset management business of NTAM contributed 59%
and 37% of our revenues, respectively.

 On February 27, 2023,
Future FinTech (Hong Kong) Limited ("Buyer"), a company incorporated in Hong Kong and a wholly owned subsidiary of Future
FinTech Group Inc. (the "Company") entered into a Share Transfer Agreement (the "Agreement") with Alpha Financial
Limited, a company incorporated in Hong Kong ("Seller") and sole owner and shareholder of Alpha International Securities (Hong
Kong) Limited, a company incorporated in Hong Kong ("Alpha HK") and Alpha Information Service (Shenzhen) Co., Ltd., a company
incorporated in China ("Alpha SZ"). Alpha HK holds Type 1 'Securities Trading', Type 2 'Futures Contract
Trading' and Type 4 'Securities Consulting' financial licenses issued by the Hong Kong Securities and Futures Commission.
Alpha SZ provides technical support services to Alpha HK. The share transfer transaction was approved by the Securities and Futures
Commission of Hong Kong ("SFC") in August 2023 and the acquisition was closed on November 7, 2023. The names of the two entities
were subsequently changed to 'FTFT International Securities and Futures Limited' and 'FTFT Information Services (Shenzhen)
Co. Ltd.', respectively.

 The Company is in the
process of transition and developing its financial technology related business, including supply chain financing/trading, and investment
banking and brokerage services.

 Supply Chain Financing
Service and Trading in China

 Since the second quarter
of 2021, we started supply chain financing service and trading business, which currently includes coal, aluminum ingots, sand and steel
supply chain financing service and trading business.

 Our supply chain finance business mainly serves
the receivables and payables of industrial customers, obtains the creditor's rights or commodity goods rights of large state-owned
enterprises through trade execution, provides customers with working capital, accelerates capital turnover, and then expands the business
scale and improves the industrial value.

 Through our supply chain service ability and customer
resources, we can tap into low-risk assets, flexibly carry out financial services around the actual financial needs of certain industries,
and reduce the overall risk of the business by using the control of business flow, goods logistics and capital flow in the process of
commodity circulation.

 We focus on bulk commodity goods such as sand,
steel, coal and aluminum ingots and take large state-owned or listed companies as the core service targets; We use our own funds as the
operation basis, actively uses a variety of channels and products for financing, such as banks, commercial factoring companies, accounts
receivable, asset-backed securities, and other innovative financing methods to obtain sufficient funds.

 We sign purchase and sale agreements with suppliers
and buyers. The suppliers are responsible for the supply and transportation of goods to the end users' designated freight yard or
transfer the title to us in certain warehouses. We also provide trading service as we don't take control over the ownership of the
goods but receive lower margin for the transaction. For the sale of goods where we obtain control of the goods before transferring it
to the customer, we recognize revenue based on the gross revenue amount billed to customers as sales of goods. We consider multiple factors
when determining whether we obtain control of third-party goods, including evaluating if we can establish the price of the goods, retain
inventory risk for tangible goods or have the responsibility for ensuring acceptability of the goods. We recognize net revenue as agent
services for the sales of coals, aluminum ingots, sand and steel when no control obtained throughout the transactions. We select
the customers and suppliers that have good credit and reputation.

 Asset Management,
Brokerage and Investment Banking Services in Hong Kong.

 The Company acquired 90% of the issued and outstanding
shares of Nice Talent Asset Management Limited ("NTAM"), a Hong Kong-based asset management company in August 2021. NTAM was
founded in 2018 and it engages asset management and advisory services. NTAM is licensed under the Securities and Futures Commission of
Hong Kong (SFC) for carrying out regulated activities in "Advising on Securities" and "Asset Management". NTAM
offers diversified asset management portfolio for professional investors. Assets of NTAM's clients are held in banks, where clients
gave the banks their authorization allowing NTAM to place trading instructions on behalf of the clients in order to manage the clients'
assets. NTAM mainly engages in following asset management services for its clients: (1) Equity Investment, (2) Debt investment, (3) Precious
metals and currencies investment, (4) Derivative Investment and (5) External Asset Management Services (EAM). NTAM's main revenue
is generated from providing professional advices to clients and management fees for managing the investment of the clients. In order to
retain talent in view of the increased turnover in the industry in Hong Kong, top performers of NTAM who had worked with the company for
years were granted the right to subscribe for new shares of NTAM with cash. As a result, in July 2023, 19 shares of NTAM were issued to
Ms. Lau Kwai Chun at a cash consideration of HK$1,786,301 and in December 2023, 11 shares of NTAM were issued to Aspenwood Capital Partner
Limited at a cash consideration of HK$1,034,174. Due to the abovementioned 30 new shares issuance, the Company's holding of NTAM
decreased from 90% to 77.14%. In August 2024, NTAM issued additional 168 shares with HK$17,900 each for a total of HK$3,007,200 by way
of rights subscription offer to three existing shareholders of NTAM and Future Fintech (Hong Kong) Limited did not participate in the
subscription and an outsider investor purchased the shares. After the right subscription, the shareholding percentage of NTAM by Future
Fintech (Hong Kong) Limited decreased from 77.14% to 42.86%. In November 2024, the Company closed the sale of its remaining 42.86%
ownership of NTAM to a third party for HK$2.4 million and is no longer in asset management business in Hong Kong.

 In November 2023, the Company completed the acquisition
of Alpha International Securities (Hong Kong) Ltd. and changed its names to FTFT International Securities and Futures Limited ("FTFT
International"). Founded in 2010, FTFT International focuses on three main areas of financial services: (1) online brokerage services
consisting of Hong Kong equities as well as US equities where its works with its partner, a US brokerage firm, (2) underwriting
and distribution of Hong Kong IPOs, and (3) underwriting U.S. dollar-denominated bonds issued by Chinese companies in Hong Kong.
FTFT International Securities holds Type 1 "Securities Trading", Type 2 "Futures Trading" and Type 4 "Securities
Advisory" financial licenses issued by the HK SFC. FTFT International provides customers with a full range of financial services
in Hong Kong including online brokerage services, IPOs, financial advisory services and US dollar-based Chinese municipal and enterprise
bond issuance services. FTFT International has over 60,000 customer accounts, and since 2020 it has underwritten 29 IPOs in Hong
Kong. In terms of offshore US dollar-based Chinese bond issuance, since 2020 FTFT International has underwritten nine Chinese municipal
and enterprise bonds in Hong Kong.

 Competition and our Competitive Advantages

 Brokerage and Investment Banking Services

 The online brokerage market is highly competitive
and rapidly evolving. Our primary competitors include online brokers and other firms providing brokerage services. Nevertheless, we believe
that our diverse product offerings, advanced technology infrastructure, efficient trade execution, top quality customer services and competitive
pricing together make us one of the top performers in this market.

 Although some of our competitors may have greater
financial resources or a larger customer base than we do, we believe that our proprietary trading platform, comprehensive customer services,
innovative products and services, unparalleled user experience, robust infrastructure and advanced technology, and strong brand recognition
are powerful competitive strengths in the fast-evolving online brokerage market.

 Supply Chain Finance Market in China

 We believe our supply chain finance business has
the following competitive strengths and set us apart from our competitors:

 (1) Independent risk control management system

 At the beginning of its establishment, we established
a complete and independent risk control management system for our supply chain fianc business, and have strictly implemented the
unified and comprehensive risk control management for customer access, contract signing, business execution, and capital allocation.

 (2) High-quality customer groups

 The criteria for our corporate clients are generally
the wholly owned or controlled subsidiaries of large state-owned companies or publicly listed companies. At present, our customers are
mainly in the coal, sand and metal industries, power generation, construction and heating industries, which includes subsidiary of China
Datang Corporation, one of the five large-scale power generation enterprises in China.

 (3) Standardization of financing process and system

 To improve operational efficiency and decision-making
timeliness, we have established a standardized financing process and system to provide supply chain finance and services.

 (4) Access to capital market

 One of the key elements to the supply chain finance
is to have access to sufficient funds in order to expand its business and increase number of clients. Our supply chain business will take
the advantage as a subsidiary of the public company of Future FinTech as well as its other financial technology business development to
obtain enough funds for its further development and provide comprehensive financial services to its clients.

 Marketing and Sales

 We market our supply chain financing services
to large state-owned or controlled enterprises and public company, with a focus on energy, construction and metal industries. Our supply
chain finance business has established a high-quality team that fully understands our strategy and market situation and is sensitive to
market changes to find target customers and expand our business. Based on standardized operation, our team has established a good reputation
in the cooperation with existing customers, and to reach out to their respective upstream and downstream business partners to expand our
business scope.

 FTFT International Securities and Futures Ltd.
("FTFT Securities"), founded in 2010, is a HKSFC approved and licensed corporation (Central Number: ATR(516)) and holds type
1, type 2 and type 4 activities licenses. FTFT Securities is also a Hong Kong stock exchange participant and strictly follows the securities
and futures regulations to provide customers with safe and reliable securities trading services.

 FTFT Securities is committed to build a financial
services platform that is in line with the customers' business philosophy, and to provide customers with safe, efficient, convenient
investment experience.

 At present, the main business of the FTFT Securities
is: Hong Kong stock brokerage business, equity capital market business (ECM) and debt capital market business (DCM). In the future, the
company will combine its own business advantages with the group, deeply cultivate overseas market, and provide more comprehensive and
cutting-edge financial services for global customers.

 Government Regulations

 Regulations on Cybersecurity Review

 On December 28, 2021, Cybersecurity Review Measures
was published by Cyberspace Administration of China or the CAC, National Development and Reform Commission, Ministry of Industry and Information
Technology, Ministry of Public Security, Ministry of State Security, Ministry of Finance, Ministry of Commerce, People's Bank of
China, State Administration of Radio and Television, China Securities Regulatory Commission, State Secrecy Administration and State Cryptography
Administration, effective on February 15, 2022, which provides that, Critical Information Infrastructure Operators ("CIIOs")
that purchase internet products and services and Online Platform Operators engaging in data processing activities that affect or may affect
national security shall be subject to the cybersecurity review by the Cybersecurity Review Office.

 Trial Administrative Measures of Overseas Securities
Offering and Listing by Domestic Enterprises

 On February 17, 2023, the CSRC released New Overseas
Listing Rules with five interpretive guidelines, which took effect on March 31, 2023. The New Overseas Listing Rules require Chinese domestic
enterprises to complete filings with CSRC and report related information under certain circumstances, such as: a) an issuer making an
application for initial public offering and listing in an overseas market; b) an issuer making an overseas securities offering after having
been listed on an overseas market; c) a domestic company seeking an overseas direct or indirect listing of its assets through single or
multiple acquisition(s), share swap, transfer of shares or other means. According to the Notice on Arrangements for Overseas Securities
Offering and Listing by Domestic Enterprises, published by the CSRC on February 17, 2023, a company that (i) has already completed overseas
listing or (ii) has already obtained the approval for the offering or listing from overseas securities regulators or exchanges but has
not completed such offering or listing before effective date of the new rules and also completes the offering or listing before September
30, 2023 are considered as an existing listed company and is not required to make any filing until it conducts a new offering in the future.
Furthermore, upon the occurrence of any of the material events specified below after an issuer has completed its offering and listed its
securities on an overseas stock exchange, the issuer shall submit a report thereof to the CSRC within 3 business days after the occurrence
and public disclosure of the event: (i) change of control; (ii) investigations or sanctions imposed by overseas securities regulatory
agencies or other competent authorities; (iii) change of listing status or transfer of listing segment; or (iv) voluntary or mandatory
delisting. The New Overseas Listing Rules stipulate the legal consequences to the companies for breaches, including failure to fulfill
filing obligations or filing documents having false statement or misleading information or material omissions, which may result in a fine
ranging from RMB1 million to RMB10 million, and in cases of severe violations, the relevant responsible persons may also be barred from
entering the securities market.

 Regulations Relating to Pledged Assets and Rights in PRC

 On January 1, 2021, the Civil Code of China took
effective which replaced the Guarantee Law, Contract Law, Property Law and General Provisions of Civil Law. The credit control measures
used in supply chain finance business mostly are subject to the relevant provisions of the Civil Code. Article 681 of the Civil Code stipulates
that a guarantee contract is a contract to ensure the realization of creditor's rights. The guarantor and the creditor may agree
when the debtor fails to pay its due debts or the event agreed by the parties occur, the guarantor shall pay the debts or bear responsibility.
Article 696 of the Civil Code stipulates that if the creditor transfers all or part of the creditor's rights without notifying the
guarantor, the transfer shall have no effect on the guarantor. The guarantor and the creditor may agree to prohibit the transfer of creditor's
rights. Also, if the collateral lien is not registered, it cannot be used against a bona fide third party. A bona fide third party means
a buyer who has paid a reasonable price and obtained the property in normal business activities. In supply chain finance business, the
bulk goods are usually used as collaterals for the financing and the pledge must be registered in order to be used against the claim from
a bona fide buyer. Certain accounts receivable may be pledged pursuant to the Civil Code. Article 440 of the Civil Code stipulates that
the debtor or a third party that has the disposal rights to the assets may pledge such assets, including bills of exchange, promissory
notes and cheques, bonds and certificates of deposit, warehouse receipt and bill of lading, etc. The Decision On Implementation of Unified
Registration of Tangible Assets and Rights Guarantees by the State Council became effective on January 1, 2021. The types of tangible
assets and right guarantees covered by the unified registration include production equipment, raw materials, semi-finished products and
products, accounts receivable, deposit certificate, warehouse receipt and bill of lading, finance lease and factoring, etc. The tangible
assets and rights guarantee covered by the unified registration shall be registered by the parties through the unified registration and
publicity system of tangible assets financing under the credit investigation center of the People's Bank of China, and parties shall
be responsible for the authenticity, integrity and legitimacy of the registered contents. The registration authority does not conduct
substantive examination of the registered contents.

 Regulations Relating
to Securities Services in Hong Kong.

 The Securities and Futures
Ordinance (Cap. 571) of Hong Kong, or the HKSFO, including its subsidiary legislation, is the principal legislation regulating the securities
and futures industry in Hong Kong, including the regulation of securities and futures markets and leveraged foreign exchange trading,
the offering of investments to the public in Hong Kong, and intermediaries and their conduct of regulated activities. In particular, Part
V of the HKSFO and the relevant guidelines and codes issued by the HKSFC deal with licensing and registration matter.

 The HKSFO is administered
by the HKSFC, which is the statutory regulatory body that governs the securities and futures markets and non-bank retail leveraged
foreign exchange market in Hong Kong.

 The HKSFC is an independent
statutory body which administers the HKSFO and is responsible for regulating the securities and the futures industry in Hong Kong, including
Brokers, investment advisers, fund managers, and intermediaries carrying out the regulated activities as listed in "—Licensing
Regime Under the HKSFO—Types of Regulated Activities" below. The HKSFC works to strengthen and protect the integrity and soundness
of Hong Kong's securities and futures markets for the benefit of investors and the industry.

 Licensing Regime
Under the HKSFO

 The functions of the
HKSFC, as a gatekeeper of standards for individuals and corporations seeking approval to enter into the securities and futures markets
of Hong Kong, include the following:

 grant licenses to those who are appropriately qualified and can demonstrate their fitness and properness to be licensed under the HKSFO;

 maintain online a public register of licensed persons and registered corporations;

 monitor the ongoing compliance of licensing requirements by licensees, substantial shareholders of licensed corporations, and directors of licensed corporations; and

 initiate policies on licensing issues.

 The HKSFC operates a
system of authorizing corporations and individuals (through licenses) to act as financial intermediaries. Under the HKSFO, a corporation
that is not an authorized financial institution (as defined in section 2(1) of the Banking Ordinance (Cap. 155) of Hong Kong) and is:

 carrying on a business in a regulated activity (or holding out as carrying on a regulated activity), or

 actively marketing, whether in Hong Kong or from a place outside Hong Kong, to the public such services it provides, would constitute a regulatory activity if provided in Hong Kong,

 must be licensed by the
HKSFC to carry out that regulatory activity, unless one of the exemptions under the HKSFO applies.

 In addition to the licensing
requirements on corporations, any individual who: (i) performs any regulated function in relation to a regulated activity carried
on as a business, or (ii) holds himself out as performing such regulated activity, must be licensed separately under the HKSFO as
a Licensed Representative accredited to his principal.

 Types of Regulated
Activities Under the HKSFO

 The HKSFO provides a
licensing regime under which a person needs a license to carry on different types of regulated activities as specified in Schedule 5 of
the HKSFO. The different types of regulated activities are set out as follows:

 Type
 1: dealing in securities;

 Type
 2: dealing in futures contracts;

 Type
 3: leveraged foreign exchange trading;

 Type
 4: advising on securities;

 Type
 5: advising on futures contracts;

 Type
 6: advising on corporate finance;

 Type
 7: providing automated trading services;

 Type
 8: securities margin financing;

 Type
 9: asset management;

 Type
 10: providing credit rating services;

 Type
 11: Dealing in OTC derivative products or advising on OTC derivative
products; and

 Type
 12: Providing client clearing services for OTC derivative transactions.

 The Type 12 regulated
activity came into operation on September 1, 2016 pursuant to the Securities and Futures (Amendment) Ordinance 2014 (Commencement)
Notice 2016 (L.N. 27 of 2016), in so far as it relates to paragraph (c) of the new definition of "excluded services"
in Part 2 of Schedule 5 to the HKSFO. The licensing requirement with respect to Type 12 regulated activity is, as of the date of this
annual report, not yet in operation and the effective date will be appointed by the Hong Kong Secretary for Financial Services and the
Treasury by notice published in the Gazette.

 As of the date of this annual report, our subsidiary FTFT Securities
are licensed under the HKSFO to conduct the following regulated activities:

 Company

 Type of Regulated Activities

 FTFT International Securities and Futures Ltd. ("FTFT Securities")

 Type 1, Type 2 and Type 4

 Licensed Corporation

 For application as a
licensed corporation, the applicant has to be incorporated in Hong Kong or an overseas company registered with the Companies Registry
of Hong Kong. The licensed corporation has to satisfy the HKSFC that it has proper business structure, good internal control systems and
qualified personnel to ensure the proper management of risks that it will encounter in carrying on the proposed regulated activities as
detailed in its business plan submitted to the HKSFC. Detailed guidelines to meet the requirements and expectations of the HKSFC are contained
in the following publications of the HKSFC:

 "Guidelines on Competence";

 "the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission," or the Code of Conduct;

 "the Management, Supervision and Internal Control Guidelines for Persons Licensed by or Registered with the HKSFC";

 "Corporate Finance Adviser Code of Conduct"; and

 "Fund Manager Code of Conduct."

 Responsible Officers

 For each regulated activity
conducted by a licensed corporation, it must appoint no less than two responsible officers, at least one of them must be an executive
director, to directly supervise the business of such regulated activity. A responsible officer is an individual approved by the HKSFC
to supervise the regulated activity or activities of the licensed corporation to which he or she is accredited. For each regulated activity
of a licensed corporation, it should have at least one responsible officer available at all times to supervise the business.

 Qualification and Experience Required for
Being a Responsible Officer

 A person who intends
to apply to be a responsible officer must demonstrate that he or she fulfills the requirements on both competence and sufficient authority.
An applicant should possess appropriate ability, skills, knowledge, and experience to properly manage and supervise the corporation's
regulated activity or activities. Accordingly, the applicant has to fulfill certain requirements on academic and industry qualifications,
relevant industry experience, management experience, and local regulatory framework paper as stipulated by the HKSFC.

 Managers-in-Charge of Core Functions,
or MICs

 A licensed corporation
is required to designate certain individuals as MICs and provide to the HKSFC information about its MICs and their reporting lines. MICs
are individuals appointed by a licensed corporation to be principally responsible, either alone or with others, for managing each of the
following eight core functions of the licensed corporation:

 (a)

 overall management oversight;

 (b)

 key business lines;

 (c)

 operational control and review;

 (d)

 risk management;

 (e)

 finance and accounting;

 (f)

 information technology;

 (g)

 compliance; and

 (h)

 anti-money laundering and counter-terrorist financing.

 The management structure
of a licensed corporation (including its appointment of MICs) should be approved by the board of the licensed corporation. The board should
ensure that each of the licensed corporation's MICs has acknowledged his or her appointment as MIC and the particular core function(s)
for which he or she is principally responsible.

 Fit and Proper Requirement

 Persons who apply for
licenses under the HKSFO must satisfy and continue to satisfy after the grant of such licenses by the HKSFC that they are fit and proper
persons to be so licensed. Generally, a fit and proper person means one who is financially sound, competent, honest, reputable, and reliable.

 Section 129(1) of
the HKSFO sets out a number of matters that the HKSFC shall have regard to in assessing the fitness and properness of a person, an individual,
corporation, or institution, which includes:

 financial status or solvency;

 educational or other qualifications or experience having regard to the nature of the functions to be performed;

 ability to carry on the regulated activity concerned competently, honestly, and fairly; and

 reputation, character, reliability, and financial integrity of the applicant and other relevant persons as appropriate.

 The above fit and proper
criteria serve as the fundamental basis when the HKSFC considers each license or registration application. Detailed guidelines are contained
in "the Fit and Proper Guidelines," "the Licensing Information Booklet," and "the Guidelines on Competence"
published by the HKSFC.

 The Fit and Proper Guidelines
apply to a number of persons including the following:

 an individual who applies for license or is licensed under Part V of the HKSFO;

 a licensed representative who applies for approval or is approved as a responsible officer under Part V of the HKSFO;

 a corporation which applies for license or is licensed under Part V of the HKSFO;

 an authorized financial institution which applies for registration or is registered under Part V of the HKSFO;

 an individual whose name is to be or is entered in the register maintained by the Hong Kong Monetary Authority under section 20 of the Banking Ordinance (Cap. 155) of Hong Kong; and

 an individual who applies to be or has been given consent to act as an executive director of a registered institution under section 71C of the Banking Ordinance (Cap. 155 of Hong Kong).

 Section 129(2) of the HKSFO empowers
the HKSFC to take into consideration any of the following in considering whether a person is fit and proper:

 decisions made by such relevant authorities as stated in section 129(2)(a) of the HKSFO or any other authority or regulatory organization, whether in Hong Kong or elsewhere, in respect of that person;

 in the case of a corporation, any information relating to:

 any other corporation within the group of companies; or

 any substantial shareholder or officer of the corporation or of any of its group companies;

 in the case of a corporation licensed under section 116 or 117 of the HKSFO or registered under section 119 of the HKSFO or an application for such license or registration:

 any information relating to any other person who will be acting for or on its behalf in relation to the regulated activity; and

 whether the person has established effective internal control procedures and risk management systems to ensure its compliance with all applicable regulatory requirements under any of the relevant provisions;

 in the case of a corporation licensed under section 116 or section 117 of the HKSFO or an application for the license, any information relating to any person who is or to be employed by, or associated with, the person for the purposes of the regulated activity; and

 the state of affairs of any other business which the person carries on or proposes to carry on.

 The HKSFC is obliged
to refuse an application to be licensed if the applicant fails to satisfy the HKSFC that the applicant is a fit and proper person to be
licensed. The onus is on the applicant to make out a case that the applicant is fit and proper to be licensed for the regulated activity.

 Continuing Obligations
of Licensed Corporations

 Licensed corporations,
licensed representatives, and responsible officers must remain fit and proper as defined under the HKSFO at all times. They are required
to comply with all applicable provisions of the HKSFO and its subsidiary rules and regulations as well as the codes and guidelines issued
by the HKSFC.

 Outlined below are some
of the key continuing obligations of the licensed corporations within the Group under the HKSFO:

 maintenance of minimum paid-up share capital and liquid capital, and submission of financial returns to the HKSFC in accordance with the requirements under the Securities and Futures (Financial Resources) Rules (as discussed in more detail below);

 maintenance of segregated account(s), and custody and handling of client securities in accordance with the requirements under the Securities and Futures (Client Securities) Rules (Chapter 571H of the Laws of Hong Kong);

 maintenance of segregated account(s), and holding and payment of client money in accordance with the requirements under the Securities and Futures (Client Money) Rules (Chapter 571I of the Laws of Hong Kong);

 maintenance of proper records in accordance with the requirements prescribed under the Securities and Futures (Keeping of Records) Rules (Chapter 571O of the Laws of Hong Kong);

 maintenance of insurance against specific risks for specified amounts in accordance with the requirements under the Securities and Futures (Insurance) Rules (Chapter 571AI of the Laws of Hong Kong);

 payment of annual fees and submission of annual returns to the HKSFC within one month after each anniversary date of the license; and

 implementation of appropriate policies and procedures relating to client acceptance, client due diligence, record keeping, identification, and reporting of suspicious transactions and staff screening, education, and training in accordance with the requirements under the Guideline on Anti-Money Laundering and Counter-Terrorist Financing issued by the HKSFC;

 Obligation for substantial
shareholders

 A person shall, in relation
to a corporation, be regarded as a substantial shareholder of the corporation if he, either alone or with any of his associates—

 (a)

 has an interest in shares in the corporation—

 (i)

 the aggregate number of which shares is equal to more than 10% of the total number of issued shares of the corporation; or

 (ii)

 which entitles the person, either alone or with any of his associates and either directly or indirectly, to exercise or control the exercise of more than 10% of the voting power at general meetings of the corporation; or

 (b)

 holds shares in any other corporation which entitles him, either alone or with any of his associates and either directly or indirectly, to exercise or control the exercise of 35% or more of the voting power at general meetings of the other corporation, or of a further corporation, which is itself entitled, either alone or with any of its associates and either directly or indirectly, to exercise or control the exercise of more than 10% of the voting power at general meetings of the corporation.

 A person shall be regarded
as being entitled to exercise or control the exercise of 35% or more of the voting power at general meetings of a corporation indirectly
if he, either alone or with any of his associates, has an interest in shares in a further corporation which entitles him, either alone
or with any of his associates, to exercise or control the exercise of 35% or more of the voting power at general meetings of the further
corporation which is itself entitled, either alone or with any of its associates, to exercise or control the exercise of 35% or more of
the voting power at general meetings of the first-mentioned corporation.

 Under section 132 of
the HKSFO, a person (including a corporation) has to apply for HKSFC's approval prior to becoming or continuing to be, as the case
may be, a substantial shareholder of a corporation licensed under section 116 of the HKSFO. A person who has become aware that he has
become a substantial shareholder of a licensed corporation without HKSFC's prior approval should, as soon as reasonably practicable
and in any event within three business days after he becomes so aware, apply to the HKSFC for approval to continue to be a substantial
shareholder of the licensed corporation.

 An application to the
HKSFC regarding the change of the substantial shareholder of NTAM to Future FinTech (Hong Kong) Limited was approved by the HKSFC on June
17, 2021.

 Supervision by the HKSFC

 HKSFC supervises
licensed corporations and intermediaries operating in the market. HKSFC conducts on-site inspections and off-site monitoring
to ascertain and supervise intermediaries' business conduct and compliance with relevant regulatory requirements and to assess and
monitor the financial soundness of intermediaries.

 Disciplinary Power of the HKSFC

 Under Part IX of the
HKSFO and subject to the due process for exercising disciplinary powers laid down in section 198 of the HKSFO, the HKSFC may exercise
any of the following disciplinary actions against a regulated person (including a licensed person or a registered institution) if that
person is found to be guilty of misconduct or the HKSFC is of the opinion that a regulated person is not fit and proper to be or remain
the same type of regulated person (sections 194 and 196 of the HKSFO).

 revocation or suspension of a license or a registration;

 revocation or suspension of part of a license or registration in relation to any of the regulated activities for which a regulated person is licensed or registered;

 revocation or suspension of the approval granted to a responsible officer;

 public or private reprimand on a regulated person;

 prohibition of a regulated person from applying to be licensed or registered or to be approved as a responsible officer;

 prohibition of a regulated person from applying to be given consent to act or continue to act as an executive officer of a registered institution;

 prohibition of a regulated person from re-entry to be licensed or registered; and

 pecuniary penalty of not exceeding the amount of HK$10 million or three times the amount of the profit gained or loss avoided as a result of the misconduct.

 Hong Kong Regulations Relating to Securities and
Futures Brokerage Providers FTFT Securities is a licensed corporation of the Securities and Futures Commission of Hong Kong ("SFC")
holding Type 1 ("Dealing in Securities"), Type 2 ("Dealing in Futures Contracts"), Type 4 ("Advising on
Securities") licenses. The Securities and Futures Ordinance ("SFO"), including its subsidiary legislation, is the principal
legislation regulating the securities and futures industry in Hong Kong. In particular, Part V of the SFO deals with licensing and registration
matters. The SFO is administered by SFC which is an independent statutory body in Hong Kong set up to regulate the securities and futures
markets and the non-bank leveraged foreign exchange market in Hong Kong.

 In addition, the Companies (Winding Up and Miscellaneous
Provisions) Ordinance including its subsidiary legislation provides that SFC is responsible for authorizing the registration of prospectuses
for offerings of shares and debentures in Hong Kong and/or granting exemptions from strict compliance with the provisions in the Hong
Kong Companies (Winding Up and Miscellaneous Provisions) Ordinance. The SFO provides that SFC is also responsible for authorizing certain
securities (including the relevant offering documents) that are not shares or debentures.

 The Hong Kong securities and futures industry
(with respect to listed instruments) is also governed by the rules and regulations introduced and administered by the Hong Kong Stock
Exchange and the Hong Kong Futures Exchange (jointly as "HKEX").

 Intellectual Property Regulations in China

 Domain Name

 The MIIT promulgated the Measures on Administration
of Internet Domain Names, or the Domain Name Measures, on August 24, 2017, which took effect on November 1, 2017. The MIIT is the major
regulatory body responsible for the administration of PRC internet domain names, under supervision of which the China Internet Network
Information Center, or CNNIC, is responsible for the daily administration of ".cn" domain names and Chinese domain names.
CNNIC adopts a "first-to-file" principle with respect to the registration of domain names. Applicants for registration of
domain names must provide the true, accurate and complete information of their identities to domain name registration service institutions.
The applicants will become the holder of such domain names upon the completion of the registration procedure.

 Trademark

 The Trademark Law of the PRC promulgated in August
2013 which took effect in May 2014 (the "Trademark Law"), and revised in 2019, and its implementation rules protect registered
trademarks. The Trademark Office of National Intellectual Property Administration, PRC, formerly the PRC Trademark Office of the State
Administration of Market Regulation is responsible for the registration and administration of trademarks throughout the PRC. The Trademark
Law has adopted a "first-to-file" principle with respect to trademark registration. Where registration is sought for
a trademark that is identical or similar to another trademark which has already been registered or given preliminary examination and approval
for use in the same or similar category of commodities or services, such application for registration of this trademark may be rejected.
Trademark registrations are effective for a renewable ten-year period, unless otherwise revoked.

 Copyright

 In accordance with the Copyright Law of the PRC
promulgated by the SCNPC on September 7, 1990, amended on February 26, 2010 and November 11, 2020, Chinese citizens, legal persons or
other entities own the copyright in their works whether published or not, including written works, oral works, music, comedy, arts of
talking and singing, dance and acrobatics, work of art and architecture work, photographic works, cinematographic work and work created
by the method similar to the film production method; engineering design drawing, product design drawing, map, sketch and other graphic
works and model works, computer software and other works specified by laws and administrative regulations. The rights a copyright owner
has include but not limited to the following rights of the person and property rights: the right of publication, right of authorship,
right of modification, right of integrity, right of reproduction, distribution right, rental right, right of network communication, translation
right and right of compilation.

 In accordance with the Regulations on the Protection
of Computer Software promulgated by the State Council on December 20, 2001 and last amended on January 30, 2013, Chinese citizens, legal
persons or other entities own the copyright, including the right of publication, right of authorship, right of modification, right of
reproduction, distribution right, rental right, right of network communication, translation right and other rights software copyright
owners shall have in software developed by them, regardless of whether it has been published.

 In accordance with the Measures for the Registration
of Computer Software Copyright promulgated by the National Copyright Administration on April 6, 1992 and last amended on February 20,
2002, software copyrights, exclusive licensing contracts for software copyrights and software copyright transfer contracts shall be registered,
and the National Copyright Administration shall be the competent authority for the administration of software copyright registration and
designates the Copyright Protection Center of China as a software registration authority. The Copyright Protection Center of China shall
grant a registration certification to a computer software copyright applicant who complies with regulations. Under the Copyright Law,
the term of protection for copyrighted software is 50 years.

 Intellectual Property

 The Company currently
has 36 registered Internet Domain names, including ftft.com, ftftx.com,ftftcapital.com, and alpahkint.com. All these Domain names are
owned by the subsidiaries of the Company.

 We have taken measures to protect the confidentiality
of our proprietary technologies and intellectual property. We rely on a combination of know-how, trade secret laws, as well as confidentiality
agreements to protect our proprietary rights. We will take the necessary action to seek remuneration if we believe our intellectual property
rights have been infringed upon.

 Human Capital Resources

 We understand that our success depends on our
ability to attract, train and retain our employees. We strive to attract, recruit, and retain employees through competitive compensation
and benefit programs, learning and development opportunities that support career growth and advancement opportunities, and employee engagement
initiatives that foster a strong Company culture. In addition to cash compensation, we offer customary benefits in accordance with local
regulatory requirements as well as performance-based stock awards to our employees. We also recognize the importance of keeping our employees
safe. In response to the COVID-19 pandemic, we implemented changes that we determined were in the best interest of our employees and have
followed local government orders to prevent the spread of COVID-19.

 Employees

 As of December 31, 2024, we had 36 full-time employees
and 4 part-time employees, among which 31 are located in the PRC, 5 are located in Hong Kong. None of our employees are covered by
a collective bargaining agreement as of the date of this Report. We consider our relationships with our employees to be good.

 ITEM 1A – RISK FACTORS

 Our business and an investment in our securities
are subject to a variety of risks. The following risk factors describe the most significant events, facts or circumstances that could
have a material adverse effect upon our business, financial condition, results of operations, ability to implement our business plan and
the market price for our securities. Additional risks and uncertainties that presently are not considered material or are not known to
us, and therefore are not mentioned herein, may impair our business operations. Many of these events are outside of our control.
If any of these risks actually occurs, our business, financial condition or results of operations may be materially adversely affected.
In such case, the trading price of our common stock could decline and investors in our common stock could lose all or part of their investment.

 Risks Related to Our Business

 We 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 a nd cause the value of our securities to significantly decline or be worthless.

 In January 2021, FT Global Capital, Inc. ("FT
Global"), a former placement agent of Future FinTech Group Inc. (the "Company" or "Defendant") filed a lawsuit
against the Company in the Superior Court of Fulton County, Georgia in January 2021, relating to alleged breaches of an exclusive
placement agent agreement between FT Global and the Company in July 2020. The Company timely removed the case to the United States District
Court for the Northern District of Georgia (the "Court") on February 9, 2021 based on diversity of jurisdiction. On April
11, 2024, the Court entered a judgment awarding FT Global $8,875,265.31 and on April 16, 2024, the Court issued an amended judgment, awarding
FT Global $10,598,379.93, which includes $7,895,265.31 in damages, $1,723,114.62 in prejudgment interest, and $980,000.00 in attorney's
fees. On May 9, 2024, the Company filed a post-trial motion to set aside the jury verdict and for a new trial and the Court denied
the motion on March 3, 2025. The Company filed notice of appeal to appeal the judgement to the United States Court of Appeals for the
Eleventh Circuit on April 2, 2025.

 FT Global has registered the Court's judgment
in the United States District Court for Southern District of New York ("NY Court"), where FT Global has brought a motion requiring
the Company to turn over its stock in its subsidiary companies. The Company has filed an opposition to the motion, arguing that
according to the New York statute the NY Court should first determine that the value of the stock in the subsidiary is insufficient to
satisfy the judgment as the Company believe the request for turnover is premature before a valuation hearing. On August 28, 2024, NY Court
granted FT Global's motion for turnover of Defendant's shares in Defendant's wholly-owned subsidiaries as Defendant
1) failed to satisfy the $10.8 million judgment rendered in the Northern District of Georgia and registered in the Southern District of
New York, and 2) is in possession of money and property in which it has an interest. The NY Court ordered Defendant shall turn over the
shares, membership, or limited partnership interests in all of its subsidiaries, and the corporate seals of its China and Hong Kong-based
subsidiaries, to the U.S. Marshal for auction or sale until the judgment is satisfied. Pursuant to the order issued by the United States
District Court for the Southern District of New York on August 28, 2024, the United States Marshal for the Southern District of New York
("U.S. Marshal") sold the securities of the subsidiaries of the Company other than those in Hong Kong and China in auction of:
(i) all of the membership interests in Future Fintech Digital Capital Management LLC; (ii) all of the outstanding shares of FTFT UK Limited;
(iii) the corporate seal of DigiPay FinTech Limited; (iv) the corporate seal of GlobalKey SharedMall Limited; (iv) all of the outstanding
shares of Future Fintech Labs Inc.; and (v) all of the outstanding shares of Future Fintech Digital Number One GP, LLC (USA) to Alec Orudjiev,
the general counsel of FT Global for $25,000 on December 18, 2024. On December 6, 2024, the Company agreed to sell all issued and outstanding
shares of FTFT SuperComputing Inc. a wholly owned subsidiary of the Company ("FTFT SuperComputing") to DDMM Capital LLC (the
"Buyer") for a purchase price that equals to: (i) the assumption of the obligations of FTFT SuperComputing totaling $973,072.24
and (ii)$1,000,000, which was paid to an account at Olshan Frome Wolosky LLP to satisfy, in part, the right of payment held by FT Global
Capital, Inc. arising from the judgment entered in favor of FT Global and against the Company registered in the Southern District of New
York and all matters pertaining to such litigation. The Company has appealed the turnover order of the NY Court for the auction of securities
of the subsidiaries of the Company in Hong Kong and China to the United States Court of Appeals for the Second Circuit and is waiting
for the final decision of the Court of Appeals. On February 6, 2025, FT Global filed a motion ("Motion") in the NY Court,
amended on February 12, 2025, seeking a turnover order for 39,825,939 unissued shares of the Company's common stock for sale to
satisfy the judgement. The amended motion directs the requested relief not only at the Company but also at Transhare Corporation,
the Company's Florida-based transfer agent. The Company believes the Motion lacks merit, as the issuance of unissued shares in this
manner would violate corporate governance principles, Florida corporate law, and federal securities regulations. The Company has
opposed the Motion, which is now fully briefed and awaits decision by the NY Court. The litigation against FT Global has been long
and costly which has materially and adversely affect our business, financial condition and results of operations. If the NY Court grants
the Motion, we will have to turn over for all the unissued shares of common stock of the Company and the existing shareholders will be
significantly diluted and the value of our securities will significantly decline or become worthless.

 From time to time, we may be a defendant in lawsuits and regulatory
actions relating to our business. Due to the inherent uncertainties of litigation and regulatory proceedings, we cannot accurately predict
the ultimate outcome of any such proceedings. An unfavorable outcome could have a material adverse effect on our business, financial condition
and results of operations. In addition, any significant litigation, regardless of its merits, could divert management's attention
from our operations and may result in substantial legal costs. The Company has also been named in a putative securities class action case
and a derivatives case described in Item 3 Legal Proceedings below. While the Company believes it has adequate defenses, the defense of
those cases could become costly and could significantly divert management attention from its business.

 An occurrence of an uncontrollable event
such as the COVID-19 pandemic may negatively affect our operations and financial results.

 In recent years, there have been outbreaks of
epidemics in various countries. At the end of 2019, there was an outbreak of a novel strain of coronavirus (COVID-19), which has been
spread rapidly to many parts of the world, including China, Hong Kong, UK and the U.S. In March 2020, the World Health Organization declared
COVID-19 a pandemic. The COVID-19 pandemic resulted in, among other things, quarantines, travel restrictions, and the temporary closure
of office buildings and facilities in China, Hong Kong, UK and in the U.S.

 A large part of our revenues are generated in
China and Hong Kong. Consequently, our results of operations was adversely affected during the outbreak, especially between 2020 and 2022. There
have been outbreaks of Omicron variant in various cities in China in 2022 which resulted quarantines, travel restrictions, and temporary
closure of office buildings and facilities in these cities. In December 2022, the Chinese government eased its strict zero COVID-19
policy which resulted in a surge of new COVID-19 cases during December 2022 and January 2023, which has disrupted our business operations
in China.

 A widespread pandemic
could result in significant disruption of global financial markets, reducing our ability to access capital, which could negatively affect
our liquidity. In addition, a recession or market correction resulting pandemic could materially negatively affect our business and the
value of our common stock.

 In general, our business could be adversely affected
by the epidemics, including, but not limited to, COVID-19, avian influenza, severe acute respiratory syndrome (SARS), the influenza A
virus, the Ebola virus, or other outbreaks. In response to an epidemic or other outbreaks, governments and other organizations may adopt
regulations and policies that could lead to severe disruption to our daily operations, including temporary closure of our offices and
other facilities. These severe conditions may cause us and/or our partners to make internal adjustments, including but not limited to,
temporarily closing down business, limiting business hours, and setting restrictions on travel and/or visits with clients and partners
for a prolonged period of time. Various impacts arising from severe conditions may cause business disruption, resulting in material, adverse
effects to our financial condition and results of operations.

 Economic conditions have had and may continue
to have an adverse effect on our customers' spending on our products and services.

 The worldwide economy remains volatile and may
have entered in global recession. The adverse effect of a sustained international economic downturn, including sustained periods of decreased
spending, high unemployment levels, declining consumer or business confidence and continued volatility and disruption in the credit and
capital markets in China, would likely result in reduced demand for our products and services. To the extent an economic downturn develops,
we could experience a reduction in sales volume. If we are unable to reduce our operating costs and expenses proportionately, many of
which are fixed, our results of operations would be adversely affected.

 The supply chain financing service industry
is an emerging and rapidly evolving industry in China and we might not achieve the development as we expected.

 The supply chain financing service industry in
China is highly dynamic and rapidly evolving. Operating in this industry demands applying cutting-edge technologies to digitalize supply
chain financing workflows and optimize payment cycles, which is an emerging and relatively new business model in China. In addition, we
are facing uncertainties relating to the intensifying competition, inflation, general economy conditions and evolving regulatory environment
in China's supply chain financing service industry. There have been limited proven methods to project available technology, regulatory
and industry standards on which we can rely, and the slowdown of domestic industries of infrastructure, the delay, unexpected or adverse
developments in this sector may adversely and materially affect our operational and financial performances. As market develops, regulatory
environment and our business continue to develop, we may need to adjust our business model and continue to upgrade our products and service
offerings, and if we fail to respond to and adapt to these developments promptly, or at all, our business, financial condition, results
of operations and prospects may be materially and adversely affected.

 The 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.

 The supply chain financing service industry in
the PRC is increasingly competitive, and there is no guarantee that we will be able to compete effectively and implement our business
strategies. We face intense competition primarily from third-party supply chain financing service providers. Some of these competitors
may have established strong brand recognition, robust technological capabilities and significant financial resources or offer comparable
technology solutions or own similar business scale to us. Intensifying competition may result in certain developments in this industry,
such as downward competitive pressure on price, expansion by existing competitors, adoption by our competitors of innovative technology
solutions or comparatively effective branding efforts, any of which may have a material adverse impact on our financial condition, results
of operations and growth prospects. Increased investments made and lower prices or innovative services offered by our competitors may
require us to divert significant managerial, financial and human resources in order to remain competitive, and ultimately may place a
greater pressure on us to maintain our market share and negatively impact the revenues growth and profitability of our business. Furthermore,
our business is subject to rapid changes in the industries we operate in, such as the introduction of new business models, and the entry
of new and well-funded competitors or industry disruptors. We may face even more intensified competition as a result of certain alliances,
acquisitions or consolidations within the industries where we operate that result in emergence of stronger competitors. Existing and new
competitors may leverage their established platforms or market positions, or introduce innovative business models, to launch products
or services that may attract a large customer base and achieve rapid growth, which may materially and adversely affect our business and
results of operations. If we are not able to compete effectively, the number of our customers and partners may decrease and our market
share and profitability may be negatively affected, which could materially and adversely affect our business, financial condition, results
of operations and prospects, as well as our reputation and brand.

 Our 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.

 Our supply chain finance
business faces various risk in its operation, including (i) risk of failure to collect our receivables in time after the delivery of commodities;
(ii) risk of unable to supply/deliver the commodity according to the contract requirements such as issues of quality and/or quantity of
goods. If we fail to control such risk and strictly implement our new supplier and client evaluation standards as well as the background
investigation for our risk control, we might not receive payment for the goods delivered or lose control of the title of the goods or
breach contracts to supply goods according to their terms, which will materially and adversely affect our business, financial condition
and results of operations. Also, if the market for commodities fluctuates sharply, our downstream customers might default on their purchase
obligation and cause losses to us, especially when the market of infrastructure in China slows down.

 The 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.

 The financial services
industry, including the brokerage and investment banking services industry in Hong Kong, is intensely competitive, highly fragmented,
and subject to rapid change, and we expect it to remain so. We compete mostly in Hong Kong, and on the basis of a number of factors, including
the ability to adapt to evolving financial needs of a broad spectrum of clients, our ability to identify market demands and business opportunities
to win client mandates, the quality of our advice, our employees and deal execution, the range and price of our products and services,
our innovation, our reputation, and the strength of our relationships. We expect to continue to invest capital and resources in our businesses
in order to grow and develop them to a size where they are able to compete effectively in their markets, have economies of scale, and
are themselves able to produce or consolidate significant revenues and profit. We cannot assure you that the planned and anticipated growth
of our brokerage and investment banking business will be achieved or in what timescale. There may be difficulties securing financing for
investment for growth and in recruiting and retaining the skilled human resources required to compete effectively. If we fail to compete
effectively against our competitors, our business, financial conditions, results of operations, and prospects will be materially and adversely
affected.

 As a provider of brokerage
and investment banking business services for Hong Kong and Chinese investors on a global basis, our business generally requires us to
react promptly to the evolving demand of our clients and be able to provide innovative financial solutions tailored to their needs. We
may not be able to compete effectively with our competitors at all times and always be able to provide appropriate financial solutions
that promptly and accurately address our clients' needs. If this were to happen, our ability to attract new or retain existing clients
will suffer, which would materially and adversely affect our revenues and earnings.

 We primarily compete
with other providers of financial services to Asian investors. We may face pricing pressure as some of our competitors may seek to obtain
higher market share by reducing fees and commissions. Some of our competitors include large global financial institutions or state-owned
PRC financial institutions operating or headquartered in Hong Kong, many of which have longer operating histories, far broader financial
and other resources, and significantly greater name recognition than us and have the ability to offer a wider range of products, which
may enhance their competitive position. They also regularly support services we do not provide, such as commercial lending, margin lending
and other financial services and products, which puts us at a competitive disadvantage and could result in pricing pressures or lost opportunities,
which in turn could materially and adversely affect our results of operations. In addition, we may be at a competitive disadvantage with
regard to some of our competitors that have larger customer bases and greater human resources.

 We 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.

 As part of our business strategy, we review acquisition
and strategic investment prospects that we believe would complement our current product and service offerings, augment our market coverage,
enhance our technological capabilities or otherwise offer growth opportunities. From time to time, we review investments in new business
and we expect to make investments in, and to acquire, business, products or technologies in the future. We have completed acquisitions
of a money transfer company in UK and brokerage and investment banking firm in Hong Kong in 2023. In the event of any future acquisitions,
we may expend significant costs and cash, incur substantial debt and/or issue equity securities and dilute the percentage ownership of
current shareholders, all of which could have a material adverse effect on our operating results and the price of our stock. We cannot
guarantee that we will be able to successfully integrate any business, products, technologies or personnel that we may acquire in the
future, and our failure to do so could have a material adverse effect on our business, operating results and financial condition. For
example, we had to sell NTAM as it was unable to generate net profit due to high labor cost and slow down of capital market in Hong Kong.

 We may not be able to prevent others from
unauthorized use of our intellectual property, which could harm our business and competitive position.

 Our success depends, in part, on our ability to
protect our proprietary technologies. The process of seeking intellectual property protection can be lengthy and expensive and we cannot
guarantee that our existing or future intellectual property rights will be fully protected or bring us the commercial advantages. We also
cannot guarantee that our current or potential competitors do not have, and will not obtain, intellectual property rights that will prevent,
limit or interfere with our ability to use our technology or sell our products and services in the PRC or other countries.

 The implementation and enforcement of PRC intellectual
property laws historically have not been vigorous or consistent. Accordingly, intellectual property rights and confidentiality protections
in the PRC are not as effective as those in the United States and other countries. We may need to resort to litigation to enforce or defend
our rights or to determine the enforceability, scope and validity of our proprietary rights or those of others. Such litigation will require
significant expenditures of cash and management efforts and could harm our business, financial condition and results of operations. An
adverse determination in any such litigation will impair our intellectual property rights and may harm our business, competitive position,
business prospects and reputation.

 Intellectual property infringement claims
may adversely impact our results of operations.

 As we develop and introduce new products and services,
we may be increasingly subject to claims of infringement of another party's intellectual property. If a claim for infringement is
brought against us, such claim may require us to modify our products or services, cease selling certain products or engage in litigation
to determine the validity and scope of such claims. Any of these events may harm our business and results of operations.

 Our business depends on internet, our websites,
network infrastructure and processing systems.

 Our supply chain financing, and assets management
and financial services depend upon the widespread use of the internet. Factors which could reduce the widespread use of the internet include,
without limitation, actual or perceived lack of security of information or privacy protection, cyberattacks or other disruptions or damage
to the internet or to users' computers, whatever the cause, could reduce customer satisfaction with our platforms and services and
harm our business. Any system interruption that results in the unavailability of our websites, apps or reduced performance of our transaction
and information systems could reduce our ability to conduct our business. We use internally and externally developed systems for our websites
and our transaction and information processing systems. We expect to experience system interruptions due to software failure. Capacity
constraints can cause system disruptions, slower response times, delayed page presentation, degradation in levels of customer service
and other problems. We may also experience difficulties with our infrastructure upgrades. Any future difficulties with our transaction
and information processing systems or difficulties upgrading, expanding or integrating aspects of our systems may cause system disruptions,
slower response times, and degradation in levels of customer service, additional expense, impaired quality and speed of our services or
other problems.

 If the location where all of our computer and
communications hardware is located is compromised, our business, prospects, financial condition and results of operations could be harmed.
If we suffer an interruption or degradation of services at the location for any reason, our business could be harmed. Our success, and
in particular, our ability to successfully receive and fulfil customers' requests and provide high-quality customer service, largely
depends on the efficient and uninterrupted operation of our computer and communications systems. These limitations could have an adverse
effect on our business. Our disaster recovery plan may be inadequate, and we do not carry business interruption insurance to compensate
us for the losses that could occur. Despite our implementation of network security measures, our servers are vulnerable to computer viruses,
physical or electronic break-ins and similar disruptions, the occurrence of any of which could lead to interruptions, delays, loss of
critical data or the inability to accept and fulfil customer requests. The occurrence of any of the foregoing risks could harm our business.

 We are subject to cyber security risks and
may incur increasing costs in an effort to minimize those risks and to respond to cyber incidents.

 Our supply chain financing, assets management
and financial services are dependent on the secure operation of our website and systems as well as the operation of the internet generally.
Our business involves the storage of customers' proprietary information, and security breaches could expose us to a risk of loss
or misuse of this information, litigation, and potential liability. A number of large internet companies have suffered security breaches,
some of which have involved intentional ransomware attacks. From time to time, we and many other internet businesses also may be subject
to a denial of service attacks wherein attackers attempt to block customers' access to our website with ransomware. If we are unable
to avert a denial of service attack for any significant period, we could sustain substantial loss from payment of ransom fee, lost sales
and customer dissatisfaction. We may not have the resources or technical sophistication to anticipate or prevent rapidly evolving types
of cyberattacks.

 Cyberattacks may target us, our customers, our
suppliers, banks, payment processors, e-commerce in general or the communication infrastructure on which we depend. If an actual or perceived
attack or breach of our security occurs, customer and/or supplier perception of the effectiveness of our security measures could be harmed
and we could lose customers, vendors or both. Actual or anticipated attacks and risks may cause us to incur increasing costs, including
costs to deploy additional personnel and protection technologies, train employees, and engage third party experts and consultants. A person
who is able to circumvent our security measures might be able to misappropriate our or our customers' proprietary information, cause
interruption in our operations, damage our computers or those of our customers, or otherwise damage our reputation and business. Any compromise
of our security could result in a violation of applicable privacy and other laws, significant legal and financial exposure, damage to
our reputation, and a loss of confidence in our security measures, which could harm our business.

 As 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.

 The PRC has not adopted management and financial
reporting concepts and practices similar to those in the United States. We have had difficulty in hiring and retaining a sufficient number
of qualified financial and accounting employees who are familiar with US GAAP and reporting requirements to work in the PRC. As a result
of these factors, we may experience difficulty in establishing and maintaining accounting and financial controls, collecting financial
data, budgeting, managing our funds and preparing financial statements, books of account and corporate records and instituting business
practices that meet investors' expectations in the United States.

 Rules adopted by the SEC, or the Commission, pursuant
to Sarbanes-Oxley Section 404 require annual assessment of our internal controls over financial reporting. The standards that must
be met for management to assess the internal controls over financial reporting as effective are relatively new and complex, and they require
significant documentation, testing and possible remediation to meet the detailed standards. This assessment will need to include disclosure
of any material weaknesses identified by our management in our internal control over financial reporting. During the evaluation and testing
process, if we identify one or more material weaknesses in our internal control over financial reporting as we have done previously and
this year, we will be unable to assert that our internal controls are effective. We have concluded that our internal control over financial
reporting is not effective. If we continue to be unable to conclude that our internal control over financial reporting is effective, we
could lose investor confidence in the accuracy and completeness of our financial reports, which could harm our business and cause the
price of our stock to decline.

 We 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.

 We believe that our existing working capital and
cash available from operations will enable us to meet our working capital requirements for at least the next twelve months. However, if
cash from future operations is insufficient, or if cash is used for acquisitions or other currently unanticipated uses, we may need additional
capital. The development and marketing of new products and services and the expansion of our business and associated support personnel
require a significant commitment of resources. In addition, if the markets for our products and services develop more slowly than anticipated,
or if we fail to establish significant market share and achieve sufficient net revenues, we may continue to consume significant amounts
of capital. As a result, we could be required to raise additional capital. To the extent that we raise additional capital through the
sale of equity or convertible debt securities or other methods, the issuance of such securities could result in dilution of the shares
held by existing shareholders. If additional funds are raised through the issuance of debt securities, such securities may provide the
holders certain rights, preferences, and privileges senior to those of common shareholders, and the terms of such debt could impose restrictions
on our operations. We cannot guarantee that additional capital, if required, will be available on acceptable terms, or at all. If we are
unable to obtain sufficient amounts of additional capital, we may be required to reduce the scope of our planned business development
and marketing efforts, which could harm our business, financial condition and operating results.

 If 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.

 As a public company, we do and will continue to
incur significant legal, accounting, investor relations and other expenses, including costs associated with public company reporting requirements.
We also have incurred and will incur costs associated with current corporate governance requirements, including requirements under Section
404 and other provisions of Sarbanes-Oxley, as well as rules implemented by the SEC and the stock exchange on which our common stock
is traded. The expenses incurred by public companies for reporting and corporate governance purposes have increased dramatically over
the past several years. These rules and regulations have increased our legal and financial compliance costs substantially and make some
activities more time consuming and costly. If our costs and demands upon management increase disproportionately to the growth of our business
and revenue, our operating results could be harmed.

 There are inherent uncertainties involved
in estimates, judgments and assumptions used in the preparation of financial statements in accordance with generally accepted accounting
principles in the United States, or U.S. GAAP. Any changes in estimates, judgments and assumptions could have a material adverse effect
on our business, financial condition and operating results.

 The preparation of financial statements in accordance
with U.S. Generally Accepted Accounting Principles ("U.S. GAAP") involves making estimates, judgments and assumptions that
affect reported amounts of assets (including intangible assets), liabilities and related reserves, revenue, expenses and income. Estimates,
judgments and assumptions are inherently subject to change in the future, and any such changes could result in corresponding changes to
the amounts of assets, liabilities, revenue, expenses and income. Any such changes could have a material adverse effect on our business,
financial condition and operating results.

 Risks Related to Doing Business in the PRC

 Changes in China's economic, political
or social conditions or government policies could have a material adverse effect on our business and results of operations.

 A substantial of the Company's operations
are located in the PRC. Accordingly, the Company's business, financial condition, and results of operations may be influenced by
the political, economic, and legal environments in the PRC, in addition to the general state of the PRC economy. The Company's results
may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect
to laws and regulations, cybersecurity, anti-monopoly, anti-inflationary measures, currency conversion and remittance abroad, and rates
and methods of taxation, among other things, and such change of rules and policies can happen quickly with little advance notice.

 A substantial of the Company's sales, purchases
and expense transactions are in RMB. The RMB is not freely convertible into foreign currencies under the current law. In China, foreign
exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People's
Bank of China, the central bank of China. Remittances in currencies other than RMB may require certain supporting documentation in order
to affect the remittance.

 The Chinese economy differs from the economies
of most developed countries in many respects, including the amount of government involvement, level of development, growth rate, control
of foreign exchange and allocation of resources. Although the Chinese government has implemented measures emphasizing the utilization
of market forces for economic reform, the reduction of state ownership of productive assets and the establishment of improved corporate
governance in business enterprises, a substantial portion of productive assets in China is still owned by the government. In addition,
the Chinese government continues to play a significant role in regulating industry development by imposing industrial policies. The Chinese
government also exercises significant control over China's economic growth through allocating resources, controlling payment of
foreign currency-denominated obligations, setting monetary policy, and providing preferential treatment to particular industries or companies.

 While the Chinese economy has experienced significant
growth over the past decades, growth has been uneven, both geographically and among various sectors of the economy. The Chinese government
has implemented various measures to encourage economic growth and guide the allocation of resources. Some of these measures may benefit
the overall Chinese economy, but may have a negative effect on us. For example, our financial condition and results of operations may
be adversely affected by government control over blockchain related financial technology, capital investments or changes in tax regulations.
In addition, in the past the Chinese government has implemented certain measures, including more regulations on U.S. listed Chinese companies
and control the pace of economic growth. These measures may cause decreased economic activity in China, and since COVID-19, China's
economic growth has slowed down. The prolonged slowdown in the Chinese economy may reduce the demand for our products and services and
materially and adversely affect our business and results of operations.

 Furthermore, we and our China based operating
entities, as well as our investors, face uncertainty about future actions by the Chinese government that could significantly affect our
financial performance and operations. Failure to take timely and appropriate measures to adapt to any of these or similar regulatory compliance
challenges could materially and adversely affect our business operations.

 If we become subject to additional scrutiny,
criticism and negative publicity involving U.S.-listed China-based companies, we may have to expend significant resources to investigate
and resolve the matter which could harm our business operations, any offering and our reputation and could result in a loss of your investment
in our shares, especially if such matter cannot be addressed and resolved favorably.

 Recently, U.S. public companies that have substantially
operations in China have been the subject of intense scrutiny, criticism and negative publicity by investors, financial commentators and
regulatory agencies. Much of the scrutiny, criticism and negative publicity has centered around financial and accounting irregularities,
a lack of effective internal controls over financial accounting, inadequate corporate governance policies or a lack of adherence thereto
and, in some cases, allegations of fraud. As a result of the scrutiny, criticism and negative publicity, the publicly traded stock of
many U.S.-listed China-based companies has decreased in value and, in some cases, has become virtually worthless. Many of these companies
have been subject to shareholder lawsuits and SEC enforcement actions and have conducted internal and external investigations into the
allegations. It is not clear what effect this sector-wide scrutiny, criticism and negative publicity will have on us and our business.
If we become the subject of any unfavorable allegations, whether such allegations are proven to be true or untrue, we will have to expend
significant resources to investigate such allegations and/or defend our company. This situation may be a major distraction to our management.
If such allegations are not proven to be groundless, our business operations will be severely hindered and your investment in our shares
could be rendered worthless.

 Uncertainties 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.

 The PRC legal system is based on written statutes,
and prior court decisions have limited value as precedents. Since these laws and regulations are relatively new and the PRC legal system
continues to rapidly evolve, the interpretations of many laws, regulations and rules are not always uniform and enforcement of these
laws, regulations and rules involves uncertainties. The enforcement of laws and that rules and regulations in China can change quickly
with little advance notice and the risk that the Chinese government may intervene or influence our operations at any time, or may exert
more control over offerings conducted overseas and/or foreign investment in China- based issuers, could result in a material change in
our operations and/or the value of our shares of common stock.

 On July 6, 2021, the General Office of the Communist
Party of China Central Committee and the General Office of the State Council jointly issued an announcement to crack down on illegal activities
in the securities market and promote the high-quality development of the capital market, which, among other things, requires the relevant
governmental authorities to strengthen cross-border oversight of law-enforcement and judicial cooperation, to enhance supervision over
China-based companies listed overseas, and to establish and improve the system of extraterritorial application of the PRC securities laws.
Since this announcement is relatively new, uncertainties still exist in relation to how soon legislative or administrative regulation
making bodies will respond and what existing or new laws or regulations or detailed implementations and interpretations will be modified
or promulgated, if any, and the potential impact such modified or new laws and regulations will have on companies like us and our shares
of common stock.

 On February 15, 2022, Cybersecurity Review Measures
published by Cyberspace Administration of China, National Development and Reform Commission, Ministry of Industry and Information Technology,
Ministry of Public Security, Ministry of State Security, Ministry of Finance, Ministry of Commerce, People's Bank of China, State
Administration of Radio and Television, China Securities Regulatory Commission, State Secrecy Administration and State Cryptography Administration
became effective, which provides that, Critical Information Infrastructure Operators ("CIIOs") that purchase internet products
and services and Online Platform Operators engaging in data processing activities that affect or may affect national security shall be
subject to the cybersecurity review by the Cybersecurity Review Office. As confirmed by our PRC counsel Fengdong Law Firm, we are currently
not subject to cybersecurity review with the Cyberspace Administration of China ("CAC") under these new measures, because
E-Commerce Tianjin is not a cyberspace operator with personal information of more than 1 million users or has activities that affect or
may affect national security. Nevertheless, the aforementioned draft measures and any related implementation rules to be enacted may subject
us to additional compliance requirement in the future.

 We cannot rule out the possibility that the
PRC government will institute a licensing regime or pre-approval requirement covering our industry at some point in the future. If such
a licensing regime or approval requirement were introduced, we cannot assure you that we would be able to obtain any newly required license
in a timely manner, or at all, which could materially and adversely affect our business and impede our ability to continue our operations.

 From time to time, we may have to resort to administrative
and court proceedings to enforce our legal rights. Since PRC administrative and court authorities have significant discretion in interpreting
and implementing statutory and contractual terms, however, it may be more difficult to evaluate the outcome of administrative and court
proceedings and the level of legal protection we enjoy in the PRC legal system than in more developed legal systems. Furthermore, the
PRC legal system is based in part on government policies and internal rules (some of which are not published in a timely manner or at
all) that may have retroactive effect. As a result, we may not be aware of our violation of these policies and rules until sometime after
the violation. Such uncertainties, including uncertainties over the scope and effect of our contractual, property (including intellectual
property) and procedural rights, and any failure to respond to changes in the regulatory environment in China could materially and adversely
affect our business and impede our ability to continue our operations.

 The Chinese government exerts substantial
influence over the manner in which we must conduct our business as well as more oversight and control over offerings that are conducted
overseas and/or foreign investment in China-based issuers, and may intervene or influence our operations at any time, which could result
in a material change in our operations, and significantly limit or completely hinder our ability to offer or continue to offer securities
to investors and, and cause the value of our shares of common stock to significantly decline or be worthless.

 The Chinese government has exercised and continues
to exercise substantial control over virtually every sector of the Chinese economy through regulation and state ownership. Our ability
to operate in China may be harmed by changes in its laws and regulations, including those relating to taxation, environmental regulations,
land use rights, property and other matters. The central or local governments of these jurisdictions may impose new, stricter regulations
or interpretations of existing regulations that would require additional expenditures and efforts on our part to ensure our compliance
with such regulations or interpretations. Accordingly, government actions in the future, including any decision not to continue to support
recent economic reforms and to return to a more centrally planned economy or regional or local variations in the implementation of economic
policies, could have a significant effect on economic conditions in China or particular regions thereof, and could require us to divest
ourselves of any interest we then hold in Chinese properties.

 As such, our business is subject to various government
and regulatory interferences. We could be subject to regulation by various political and regulatory entities, including various local
and municipal agencies and government sub-divisions. The Company may incur increased costs necessary to comply with existing and newly
adopted laws and regulations or penalties for any failure to comply. Our operations could be adversely affected, directly or indirectly,
by existing or future laws and regulations relating to its business or industry, which could result in a material change in our operation
and the value of our shares of common stock.

 On February 17, 2023, the CSRC released New Overseas
Listing Rules with five interpretive guidelines, which took effect on March 31, 2023. The New Overseas Listing Rules require Chinese domestic
enterprises to complete filings with CSRC and report related information under certain circumstances, such as: a) an issuer making an
application for initial public offering and listing in an overseas market; b) an issuer making an overseas securities offering after having
been listed on an overseas market; c) a domestic company seeking an overseas direct or indirect listing of its assets through single or
multiple acquisition(s), share swap, transfer of shares or other means. According to the Notice on Arrangements for Overseas Securities
Offering and Listing by Domestic Enterprises, published by the CSRC on February 17, 2023, a company that (i) has already completed overseas
listing or (ii) has already obtained the approval for the offering or listing from overseas securities regulators or exchanges but has
not completed such offering or listing before effective date of the new rules and also completes the offering or listing before September
30, 2023 are considered as an existing listed company and is not required to make any filing until it conducts a new offering in the future.
Furthermore, upon the occurrence of any of the material events specified below after an issuer has completed its offering and listed its
securities on an overseas stock exchange, the issuer shall submit a report thereof to the CSRC within 3 business days after the occurrence
and public disclosure of the event: (i) change of control; (ii) investigations or sanctions imposed by overseas securities regulatory
agencies or other competent authorities; (iii) change of listing status or transfer of listing segment; or (iv) voluntary or mandatory
delisting. The New Overseas Listing Rules stipulate the legal consequences to the companies for breaches, including failure to fulfill
filing obligations or filing documents having false statement or misleading information or material omissions, which may result in a fine
ranging from RMB1 million to RMB10 million, and in cases of severe violations, the relevant responsible persons may also be barred from
entering the securities market. The Company is still processing the filings with CSRC for its offerings since the effective of New Overseas
Listing Rules and has not complied the filing requirements yet which would subject the Company to fines and other penalties for violation
of New Overseas Listing Rules.

 On February 24, 2023, the CSRC revised the Provisions
on Strengthening the Management of Confidentiality and Archives Related to the Overseas Issuance of Securities and Overseas Listing by
Domestic Companies which were issued in 2009 (the "Archives Rules"). The revised Archives Rules took effect on March 31, 2023.
The revised Archives Rules expands their application to cover indirect overseas offering and listing, stipulating that a domestic company
which plans to publicly disclose any documents and materials containing state secrets or working secrets of government agencies, shall
first obtain approval from competent authorities according to law, and file with the secrecy administrative department at the same level.

 Furthermore, given recent statements by the Chinese
government indicating an intent to exert more oversight and control over offerings that are conducted overseas, although we are currently
not required to obtain permission from any of the PRC central or local government and has not received any denial to list on the U.S.
exchange, it is uncertain when and whether we will be required to obtain permission from the PRC government to list on U.S. exchanges
in the future, and even when such permission is obtained, whether it will be denied or rescinded, which could significantly limit or completely
hinder our ability to offer or continue to offer our securities to investors and cause the value of our shares to significantly decline
or be worthless.

 There 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.

 On December 28, 2019, the amended Securities Law
of the PRC (the "PRC Securities Law") was promulgated, which became effective on March 1, 2020. According to Article 177 of
the PRC Securities Law ("Article 177"), the securities regulatory authority of the State Council may establish a regulatory
cooperation mechanism with securities regulatory authorities of another country or region for the implementation of cross-border supervision
and administration. Article 177 further provides that overseas securities regulatory authorities shall not engage
in activities pertaining to investigations or evidence collection directly conducted within the territories of the PRC, and that no Chinese
entities or individuals shall provide documents and information in connection with securities business activities to any organizations
and/or persons aboard without the prior consent of the securities regulatory authority of the State Council and the competent departments
of the State Council.

 As advised by our PRC counsel Fengdong Law Firm, Article 177 is only
applicable where the activities of overseas authorities constitute a direct investigation or evidence collection by such authorities within
the territory of the PRC. A substantial of our business operation is conducted in the PRC. In the event that the U.S. securities regulatory
agencies carry out an investigation on us such as an enforcement action by the Department of Justice, the SEC or other authorities, such
agencies' activities will constitute conducting an investigation or collecting evidence directly within the territory of the PRC
and accordingly fall within the scope of Article 177. In that case, the U.S. securities regulatory agencies may have to
consider establishing cross-border cooperation with the securities regulatory authority of the PRC by way of judicial assistance, diplomatic
channels or establishing a regulatory cooperation mechanism with the securities regulatory authority of the PRC. However, there is no
assurance that the U.S. securities regulatory agencies will succeed in establishing such cross-border cooperation in this particular case
and/or establish such cooperation in a timely manner.

 Furthermore, as Article 177 is
still a recently promulgated provision and, as the date of this report, there have not been implementing rules or regulations regarding
the application of Article 177, it remains unclear as to how it will be interpreted, implemented or applied by the Chinese Securities
Regulatory Commission or other relevant government authorities. As such, there are uncertainties as 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. If the U.S.
securities regulatory agencies are unable to conduct such investigations, there exists a risk that they may determine to suspend or de-register
our registration with the SEC and may also delist our securities from Nasdaq or other applicable trading market within the U.S.

 Under the PRC Enterprise Income Tax Law,
we may be classified as a PRC "resident enterprise" for PRC enterprise income tax purposes. Such classification would likely
result in unfavorable tax consequences to us and our non-PRC shareholders and have a material adverse effect on our results of operations
and the value of your investment.

 Under the PRC Enterprise Income Tax Law,
or the "EIT Law," that became effective in January 2008, an enterprise established outside the PRC with "de facto management
bodies" within the PRC is considered a "resident enterprise" for PRC enterprise income tax purposes and is generally
subject to a uniform 25% enterprise income tax rate on its worldwide income. Under the implementation rules to the EIT Law, a "de
facto management body" is defined as a body that has material and overall management and control over the manufacturing and business
operations, personnel and human resources, finances, and properties of an enterprise. In addition, a circular, known as SAT Circular 82,
issued in April 2009 by the State Administration of Taxation, or the "SAT," specifies that certain offshore incorporated enterprises
controlled by PRC enterprises or PRC enterprise groups will be classified as PRC resident enterprises if the following are located or
resident in the PRC: senior management personnel and departments that are responsible for daily production, operation and management;
financial and personnel decision making bodies; key properties, accounting books, company seal, and minutes of board meetings and shareholders'
meetings; and half or more of the senior management or directors having voting rights. Further to SAT Circular 82, the SAT issued a bulletin,
known as SAT Bulletin 45, which took effect in September 2011, to provide more guidance on the implementation of SAT Circular 82 and clarify
the reporting and filing obligations of such "Chinese-controlled offshore incorporated resident enterprises." SAT Bulletin
45 provides procedures and administrative details for the determination of resident status and administration on post-determination matters.
Although both SAT Circular 82 and SAT Bulletin 45 only apply to offshore enterprises controlled by PRC enterprises or PRC enterprise groups,
not those controlled by PRC individuals or foreign individuals, the determining criteria set forth in SAT Circular 82 and SAT Bulletin
45 may reflect the SAT's general position on how the "de facto management body" test should be applied in determining
the tax resident status of offshore enterprises, regardless of whether they are controlled by PRC enterprises, PRC enterprise groups,
or by PRC or foreign individuals.

 If the PRC tax authorities determine that the
actual management organ of Future FinTech Group Inc. is within the territory of China, it may be deemed to be a PRC resident enterprise
for PRC enterprise income tax purposes and a number of unfavorable PRC tax consequences could follow. First, we will be subject to the
uniform 25% enterprise income tax on our world-wide income, which could materially reduce our net income. In addition, we will also be
subject to PRC enterprise income tax reporting obligations. Finally, dividends payable by us to our investors and gains on the sale of
our shares may become subject to PRC withholding tax, at a rate of 10% in the case of non-PRC enterprises or 20% in the case of non-PRC
individuals (in each case, subject to the provisions of any applicable tax treaty), if such gains are deemed to be from PRC sources. It
is unclear whether non-PRC shareholders of our company would be able to claim the benefits of any tax treaties between their country of
tax residence and the PRC in the event that we are treated as a PRC resident enterprise. Any such tax may reduce the returns on your investment
in our shares. Although up to the date of this report, Future FinTech Group Inc. has not been notified or informed by the PRC tax authorities
that it has been deemed to be a resident enterprise for the purpose of the EIT Law, we cannot assure you that it will not be deemed to
be a resident enterprise in the future.

 We could be restricted from paying dividends
to shareholders due to PRC laws and other contractual requirements. To the extent cash and/or assets in the business are in the PRC and/or
Hong Kong or our PRC and/or Hong Kong entities, such funds and/or assets may not be available to fund operations or for other use outside
of the PRC and/or Hong Kong due to interventions in or the imposition of restrictions and limitations on the ability of us or our subsidiaries
by the PRC government to transfer cash and/or assets.

 We are a holding company incorporated in the State
of Florida and do not have any assets or conduct any business operations other than our investments in our subsidiaries and affiliates.
As a result of our holding company structure, we rely entirely on dividend payments from our subsidiaries. PRC accounting standards and
regulations currently permit payment of dividends only out of accumulated profits, a portion of which is required to be set aside for
certain reserve funds. Furthermore, if our subsidiaries in China incur debt on its own in the future, the instruments governing the debt
may restrict its ability to pay dividends or make other payments. Although we do not intend to pay dividends in the future, our inability
to receive all of the profit from our China subsidiaries' operations may provide an additional obstacle to our ability to pay dividends
if we so decide in the future. To the extent cash and/or assets in the business are in the PRC and/or Hong Kong or our PRC and/or Hong
Kong entities, such funds and/or assets may not be available to fund operations or for other use outside of the PRC and/or Hong Kong due
to interventions in or the imposition of restrictions and limitations on the ability of us or our subsidiaries by the PRC government to
transfer cash and/or assets.

 Governmental control of currency conversion
may affect the value of shareholder investments.

 The PRC government imposes controls on the convertibility
of RMB into foreign currencies and, in certain cases, the remittance of currency out of the PRC. RMB is currently not a freely convertible
currency. Shortages in the availability of foreign currency may restrict our ability to remit sufficient foreign currency to satisfy foreign
currency obligations. Under existing PRC foreign exchange regulations, payments of current account items, including profit distributions,
interest payments and expenditures from the transaction, can be made in foreign currencies without prior approval by complying with certain
procedural requirements. Approval from appropriate governmental authorities, however, is required where RMB is to be converted into foreign
currency and remitted out of the PRC to pay capital expenses such as the repayment of bank loans denominated in foreign currencies. In
addition, the PRC government could restrict access to foreign currencies for current account transactions in the future. If the foreign
exchange control system prevents us from obtaining sufficient foreign currency to satisfy our currency demands, we may not be able to
pay certain of our expenses as they come due.

 The fluctuation of the RMB may harm shareholder
investments.

 The value of the RMB against the U.S. dollar and
other currencies may fluctuate and is affected by, among other things, changes in the PRC's political and economic conditions. Any
significant revaluation of the RMB may materially and adversely affect our cash flows, revenue and financial condition. For example, to
the extent that we need to convert U.S. dollars we receive from an offering of our securities into RMB for our operations in China, appreciation
of the RMB against the U.S. dollar would diminish the value of the proceeds of the offering and could harm our business, financial condition
and results of operations. Conversely, if we decide to convert our RMB into U.S. dollars for business purposes and the U.S. dollar appreciates
against the RMB, the U.S. dollar equivalent of the RMB we convert would be reduced. In addition, the depreciation of significant U.S.
dollar denominated assets could result in a charge to our income statement and a reduction in the value of these assets.

 PRC 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.

 The State Administration of Foreign Exchange or
SAFE promulgated the Circular on Relevant Issues Relating to Domestic Resident's Investment and Financing and Roundtrip Investment
through Special Purpose Vehicles, or SAFE Circular 37, in July 2014 that requires PRC residents or entities to register with SAFE or its
local branch in connection with their establishment or control of an offshore entity established for the purpose of overseas investment
or financing. In addition, such PRC residents or entities must update their SAFE registrations when the offshore special purpose vehicle
undergoes material events relating to any change of basic information (including change of such PRC citizens or residents, name, and operation
term), increases or decreases in investment amount, transfers or exchanges of shares, or mergers or divisions. SAFE Circular 37 is issued
to replace the Notice on Relevant Issues Concerning Foreign Exchange Administration for PRC Residents Engaging in Financing and Roundtrip
Investments via Overseas Special Purpose Vehicles, or SAFE Circular 75. SAFE promulgated the Notice on Further Simplifying and Improving
the Administration of the Foreign Exchange Concerning Direct Investment in February 2015, which took effect on June 1, 2015. This notice
has amended SAFE Circular 37 requiring PRC residents or entities to register with qualified banks rather than SAFE or its local branch
in connection with their establishment or control of an offshore entity established for the purpose of overseas investment or financing.

 If our shareholders who are PRC residents or entities
do not complete their registration as required, our PRC subsidiaries may be prohibited from distributing its profits and proceeds from
any reduction in capital, share transfer or liquidation to us, and we may be restricted in our ability to contribute additional capital
to our PRC subsidiaries.

 The failure or inability of the relevant shareholders
to comply with the registration procedures set forth in these regulations may subject us to fines and legal sanctions, such as restrictions
on our cross-border investment activities, on the ability of our wholly foreign-owned subsidiaries in China to distribute dividends and
the proceeds from any reduction in capital, share transfer or liquidation to us. Moreover, failure to comply with the various foreign
exchange registration requirements described above could result in liability under PRC law for circumventing applicable foreign exchange
restrictions. As a result, our business operations and our ability to distribute profits to you could be materially and adversely affected.

 Any 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.

 In February 2012, SAFE promulgated the Notices
on Issues Concerning the Foreign Exchange Administration for Domestic Individuals Participating in Stock Incentive Plan of Overseas Publicly-Listed
Company, replacing earlier rules promulgated in March 2007. Pursuant to these rules, PRC citizens and non-PRC citizens who reside in
China for a continuous period of not less than one year who participate in any stock incentive plan of an overseas publicly listed company,
subject to a few exceptions, are required to register with SAFE through a domestic qualified agent, which could be the PRC subsidiary
of such overseas listed company, and complete certain other procedures. In addition, an overseas entrusted institution must be retained
to handle matters in connection with the exercise or sale of stock options and the purchase or sale of shares and interests. We and our
executive officers and other employees who are PRC citizens or who have resided in the PRC for a continuous period of not less than one
year will be subject to these regulations. Failure to complete the SAFE registrations may subject them to fines and legal sanctions and
may also limit our ability to contribute additional capital into our PRC subsidiary and limit our PRC subsidiary's ability to distribute
dividends to us. We also face regulatory uncertainties that could restrict our ability to adopt additional incentive plans for our directors,
executive officers and employees under PRC law.

 Because 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.

 All of our present officers and directors reside
outside of the United States, other than Mingjie Zhao. In addition, all of our subsidiaries and assets are located outside
of the United States. Therefore, it may be difficult for investors in the United States to enforce their legal rights based on the civil
liability provisions of the U.S. securities laws against us in the courts of either the United States or the Hong Kong/PRC and, even if
civil judgments are obtained in courts of the United States, to enforce such judgments in the PRC or Hong Kong courts. Further, it is
unclear if extradition treaties now in effect between the United States, Hong Kong and the PRC would permit effective enforcement against
us or our officers and directors of criminal penalties under the U.S. Federal securities laws or otherwise.

 It may also be difficult for you or overseas regulators
to conduct investigations or collect evidence within China. For example, in China, there are significant legal and other obstacles to
obtaining information needed for shareholder investigations or litigation outside China or otherwise with respect to foreign entities.
Although the authorities in China may establish a regulatory cooperation mechanism with its counterparts of another country or region
to monitor and oversee cross-border securities activities, such regulatory cooperation with the securities regulatory authorities in the
Unities States may not be efficient in the absence of practical cooperation mechanism. Furthermore, according to Article 177 of the PRC
Securities Law, or "Article 177," which became effective in March 2020, no overseas securities regulator is allowed to directly
conduct investigation or evidence collection activities within the territory of the PRC. Article 177 further provides that Chinese entities
and individuals are not allowed to provide documents or materials related to securities business activities to foreign agencies without
prior consent from the securities regulatory authority of the PRC State Council and the competent departments of the PRC State Council.
While detailed interpretation of or implementing rules under Article 177 have yet to be promulgated, the inability for an overseas securities
regulator to directly conduct investigation or evidence collection activities within China may further increase difficulties faced by
you in protecting your interests.

 The filing with the China Securities Regulatory
Commission ("CSRC") is required in connection with any offering under New Overseas Listing Rules, and we cannot assure you
that we will be able to timely make such filing, in which case we may face sanctions by the CSRC or other PRC regulatory agencies for
failure to timely file with the CSRC for this offering.

 On February
17, 2023, the CSRC released the New Overseas Listing Rules, which took effect on March 31, 2023. The New Overseas Listing Rules require
Chinese domestic enterprises to complete filings with relevant CSRC and report related information under certain circumstances, such as:
a) an issuer making an application for initial public offering and listing in an overseas market; b) an issuer making an overseas securities
offering after having been listed on an overseas market; c) a domestic company seeking an overseas direct or indirect listing of its assets
through single or multiple acquisition(s), share swap, transfer of shares or other means. According to the Notice on Arrangements for
Overseas Securities Offering and Listing by Domestic Enterprises, published by the CSRC on February 17, 2023, a company that (i) has already
completed overseas listing or (ii) has already obtained the approval for the offering or listing from overseas securities regulators or
exchanges but has not completed such offering or listing before effective date of the new rules and also completes the offering or listing
before September 30, 2023 are considered as an existing listed company and is not required to make any filing until it conducts a new
offering in the future. Furthermore, upon the occurrence of any of the material events specified below after an issuer has completed its
offering and listed its securities on an overseas stock exchange, the issuer shall submit a report thereof to th e CSRC within 3
business days after the occurrence and public disclosure of the event: (i) change of control; (ii) investigations or sanctions imposed
by overseas securities regulatory agencies or other competent authorities; (iii) change of listing status or transfer of listing segment;
or (iv) voluntary or mandatory delisting. The New Overseas Listing Rules stipulate the legal consequences to the companies for breaches,
including failure to fulfill filing obligations or filing documents having false statement or misleading information or material omissions,
which may result in a fine ranging from RMB1 million to RMB10 million, and in cases of severe violations, the relevant responsible persons
may also be barred from entering the securities market. Our PRC counsel has advised us based on their understanding of the current PRC
laws, rules and regulations relating to the CSRC's filing requirements, we are required to carry out filing procedures as required
if we conduct any overseas offerings or offerings within other circumstances under rules with the CSRC. The Company is still processing
the filings with CSRC for its offerings since the effective of New Overseas Listing Rules and has not complied the filing requirements
yet which would subject the Company to fines and other penalties for violation of New Overseas Listing Rules. Given the current PRC regulatory
environment, it is uncertain when and whether we and our PRC subsidiaries will be required to obtain other permissions or approvals from
the PRC government to list on U.S. exchanges in the future, and even if and when such permissions or approvals are obtained, whether they
will be denied or rescinded. If we or any of our PRC subsidiaries do not receive or maintain such permissions or approvals, inadvertently
conclude that such permissions or approvals are not required, or applicable laws, regulations, or interpretations change and we or our
subsidiaries are required to obtain such permissions or approvals in the future, it could significantly
limit or completely hinder our ability to offer or continue to offer our securities to investors and cause the value of our securities
to significantly decline or become worthless.

 The Holding Foreign Companies Accountable
Act, or the HFCA Act, and the related regulations are evolving quickly. Further implementations and interpretations of or amendments to
the HFCA Act or the related regulations, or a PCOAB's determination of its lack of sufficient access to inspect our auditor, might
pose regulatory risks to and impose restrictions on us because of our operations in mainland China and Hong Kong. A potential consequence
is that our shares of common stock may be delisted by the exchange. The delisting of our common stock, or the threat of our common stock
being delisted, may materially and adversely affect the value of your investment. Additionally, the inability of the PCAOB to conduct
full inspections of our auditor deprives our investors of the benefits of such inspections.

 The Holding Foreign Companies Accountable Act,
or the HFCA Act, was enacted on December 18, 2020. In accordance with the HFCA Act, trading in securities of any registrant on a national
securities exchange or in the over-the-counter trading market in the United States may be prohibited if the PCAOB determines that it cannot
inspect or fully investigate the registrant's auditor for three consecutive years beginning in 2021, and, as a result, an exchange
may determine to delist the securities of such registrant. On June 22, 2021, the U.S. Senate passed the Accelerating Holding Foreign Companies
Accountable Act, which, would amend the HFCA Act and require the SEC to prohibit an issuer's securities from trading on any U.S.
stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead of three, thus reducing the time
period before our securities may be prohibited from trading or delisted if our auditor is unable to meet the PCAOB inspection requirement. On
December 29, 2022, a legislation entitled "Consolidated Appropriations Act, 2023" (the "Consolidated Appropriations
Act"), was signed into law by President Biden. The Consolidated Appropriations Act contained, among other things, an identical provision
to Accelerating Holding Foreign Companies Accountable Act, which reduces the number of consecutive non-inspection years required for triggering
the prohibitions under the HFCA Act from three years to two.

 On November 5, 2021, the SEC adopted the PCAOB
rule to implement HFCA Act, which provides a framework for the PCAOB to determine whether it is unable to inspect or investigate completely
registered public accounting firms located in a foreign jurisdiction because of a position taken by one or more authorities in that jurisdiction.

 On December 2, 2021, SEC adopted amendments to
finalize rules implementing the submission and disclosure requirements in the HFCA Act. The rules apply to registrants the SEC identifies
as having filed an annual report with an audit report issued by a registered public accounting firm that is located in a foreign jurisdiction
and that the PCAOB is unable to inspect or investigate (the "Commission-Identified Issuers"). A Commission-Identified Issuer
will be required to comply with the submission and disclosure requirements in the annual report for each year in which it was identified.
If a registrant is identified as a Commission-Identified Issuer based on its annual report for the fiscal year ended December 31, 2021,
the registrant will be required to comply with the submission or disclosure requirements in its annual report filing covering the fiscal
year ended December 31, 2022.

 On December 16, 2021, the PCAOB issued its determinations
(the "Determination") that they are unable to inspect or investigate completely PCAOB-registered public accounting firms headquartered
in mainland China and in Hong Kong. The Determination includes lists of public accounting firms headquartered in mainland China and Hong
Kong that the PCAOB is unable to inspect or investigate completely.

 On August 26, 2022, the PCAOB signed a Statement
of Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the People's Republic of China governing
inspections and investigations of audit firms based in China and Hong Kong. On December 15, 2022, the PCAOB Board determined that the
PCAOB was able to secure complete access to inspect and investigate registered public accounting firms headquartered in mainland China
and Hong Kong and voted to vacate its previous determinations to the contrary. However, should PRC authorities obstruct or otherwise fail
to facilitate the PCAOB's access in the future, the PCAOB Board will consider the need to issue a new determination.

 The enactment of the HFCA Act and related regulations
and any additional actions, proceedings, or new rules resulting from these efforts to increase U.S. regulatory access to audit information
could cause investors uncertainty for affected issuers and the market price of our ordinary shares could be adversely affected, and we
could be delisted if our auditor is unable to meet the PCAOB inspection requirement.

 The lack of access to PCAOB inspections prevents
the PCAOB from fully evaluating audits and quality control procedures of the auditors based in China and Hong Kong. As a result, investors
may be deprived of the benefits of such PCAOB inspections. The inability of the PCAOB to conduct inspections of auditors in China and
Hong Kong makes it more difficult to evaluate the effectiveness of these accounting firm's audit procedures or quality control procedures
as compared to auditors outside of China that are subject to the PCAOB inspections.

 Our auditor, Fortune CPA Inc., an independent
registered public accounting firm that is headquartered in California, as an auditor of companies that are traded publicly in the United
States and a firm registered with the PCAOB, is subject to laws in the United States pursuant to which the PCAOB conducts inspections
to assess its compliance with the applicable professional standards. Our auditor is currently subject to PCAOB inspections and is not
included in the PCAOB Determinations. Although we believe that the Holding Foreign Companies Accountable Act and the related regulations
do not currently affect us, we cannot assure you that there will not be any further implementations and interpretations of or amendments
to the Holding Foreign Companies Accountable Act or the related regulations, which might pose regulatory risks to and impose restrictions
on us because of our operations in China and Hong Kong. A potential consequence is that our shares may be delisted by the exchange on
which they are listed. If our securities are unable to be listed on another securities exchange, such a delisting would substantially
impair your ability to sell or purchase our securities when you wish to do so, and the risk and uncertainty associated with a potential
delisting would have a negative impact on the market price of our shares.

 Risks Related to Our Common Stock

 We 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.

 We are authorized to issue 10,000,000 shares of
preferred stock. The Board is authorized under our articles of incorporation, as amended, to provide for the issuance of shares of preferred
stock by resolution and by filing a certificate of designations under Florida law, to fix the designation, powers, preferences and rights
of the shares of each such series of preferred stock and the qualifications, limitations or restrictions thereof without any further vote
or action by the shareholders. As of December 31, 2023, there were no shares of preferred stock issued and outstanding. Any shares of
preferred stock that are issued are likely to have priority over our Common Stock with respect to dividend or liquidation rights. In the
event of issuance, the preferred stock could be utilized under certain circumstances as a method of discouraging, delaying or preventing
a change in control, which could have the effect of discouraging bids to acquire us and thereby prevent shareholders from receiving the
maximum value for their shares. We have no present intention to issue any shares of preferred stock in order to discourage or delay a
change of control or for any other reason. However, there can be no assurance that preferred stock will not be issued at some time in
the future.

 Zeyao Xue has control over key decision
making as a result of his control of a substantial amount of our voting stock.

 Mr. Zeyao Xue, indirectly and directly beneficially
owns 385,287 shares, or approximately 12.6%, of our outstanding common stock as of April 11, 2025. Mr. Zeyao Xue's beneficial ownership
of 12.6% of Future FinTech's issued and outstanding common stock will likely give him the ability to control the outcome of matters
submitted to shareholders for approval, including but not limited to the election of directors and any merger, consolidation, or sale
of all or substantially all of the Company's assets. This concentrated control could delay, defer, or prevent a change of control,
merger, consolidation, or sale of all or substantially all of the Company's assets that other shareholders support, or conversely
this concentrated control could result in the consummation of such a transaction that other shareholders do not support. This concentrated
control could also discourage a potential investor from acquiring the common stock of the Company due to the limited voting power of such
shares. As a shareholder, even a controlling shareholder, Mr. Zeyao Xue is entitled to vote his shares, and shares over which he has voting
control, in his own interests, which may not always be in the interests of our shareholders generally.

 Anti-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.

 As a Florida corporation, we are subject to certain
provisions of the Florida Business Corporation Act that have anti-takeover effects and may inhibit a non-negotiated merger or other
business combination. Our Articles of Incorporation and Bylaws also contain other provisions which could have anti-takeover effects. These
provisions include, without limitation, the authority of our Board of Directors to issue additional shares of preferred stock and to fix
the relative rights and preferences of the preferred stock without the need for any shareholder vote or approval, as discussed above,
and advance notice procedures to be complied with by our shareholders in order to make shareholder proposals or nominate directors, such
as:

 authorize the issuance of "blank check" preferred stock that could be issued by the Board to thwart a takeover attempt;

 require that directors only be removed from office upon a majority shareholder vote;

 provide that vacancies on the board of directors, including newly created directorships, may be filled only by a majority vote of directors then in office;

 limit who may call special meetings of shareholders; and

 For more information regarding these and other
provisions, see the exhibit titled " Description of Our Securities — Anti-Takeover Effects of Certain Provisions of Florida
Law."

 In recent years, our Common Stock has been
in danger of being delisted from the NASDAQ Stock Market ("NASDAQ").

 Our common stock is currently listed on the Nasdaq
Capital Market. The NASDAQ Stock Market LLC has requirements that a company must meet in order to remain listed on NASDAQ, for example,
NASDAQ rules require us to maintain a minimum bid price of $1.00 per share of our common stock. We may be unable to meet NASDAQ listing
requirements, including minimum bid price, minimum levels of stockholders' equity or market values of our common stock in which
case, our common stock could be delisted. If our common stock were to be delisted, the liquidity of our common stock would be materially
adversely affected and the market price of our common stock could decrease.

 On May 13, 2024, the Company received a letter
from the Nasdaq Stock Market ("Nasdaq") notifying the Company that, because the closing bid price for the Company's
common stock listed on Nasdaq was below $1.00 for 30 consecutive trading days, the Company no longer meets the minimum bid price requirement
for continued listing on Nasdaq under Nasdaq Marketplace Rule 5550(a)(2), which requires a minimum bid price of $1.00 per share
(the "Minimum Bid Price Requirement"). The Company has a period of 180 calendar days from the date of notification,
until November 11, 2024 (the "Compliance Period"), to regain compliance with the Minimum Bid Price Requirement.
On November 12, 2024, the Company received a written notification from the NASDAQ Stock Market Listing Qualifications Staff (the "Staff")
indicating that the Company has been granted an additional 180 calendar day period or until May 12, 2025, to regain compliance with the
$1.00 minimum closing bid price requirement for continued listing on the NASDAQ Capital Market pursuant to NASDAQ Listing Rule. On April
1, 2025, the Company filed with the Florida Secretary of State's office Articles of Amendment (the "Amendment") to
amend its Second Amended and Restated Articles of Incorporation, as amended ("Articles of Incorporation"). As a result of
the Amendment, the Company has authorized and approved a 1-for-10 reverse stock split of the Company's authorized shares of common
stock from 60,000,000 shares to 6,000,000 shares, accompanied by a corresponding decrease in the Company's issued and outstanding
shares of common stock (the "2025 Reverse Stock Split"). The common stock will continue to be $0.001 par value. The Company's
shares of common stock began to trade on the NASDAQ Stock Market on the post-Reverse Stock Split basis under the symbol "FTFT"
on April 4, 2025.

 ITEM 1B – UNRESOLVED STAFF COMMENTS

 Item 1C. Cybersecurity

 Cybersecurity Risk Management and Strategy

 We face various cyber risks, including, but not
limited to, risks related to unauthorized access, misuse, data theft, computer viruses, system disruptions, ransomware, malicious software
and other intrusions. We utilize a multilayered, proactive approach, as part of our overall risk mitigation strategy, to identify, evaluate,
mitigate and prevent potential cyber and information security threats through our cybersecurity risk management efforts. We have an IT
manager who is responsible for the identification, evaluation, and management of cybersecurity risks and controls. Our IT manager has
related experience including: (i) network architecture design and planning: working on overall design and planning of network architecture,
selection of related equipment and software, and its implementation; (ii) information security architecture design and planning: assisting
the development of information security strategy, technical architecture and management system plan, design, and implementation; (iii)
daily maintenance, emergency response support, maintenance report preparation, major IT project support, etc. and (iv) provide support
for the operation and maintenance of various IT infrastructure, and ensure the stability of the company's IT infrastructure. To
oversee and identify risks from cybersecurity threats associated with our use of third-party service providers, we maintain third-party
risk management efforts designed to help protect against the misuse of information technology and security breaches, including requirements
in the agreements with such third parties.

 We have not, to date, identified any cybersecurity
threats that have materially affected or are reasonably likely to materially affect our business strategy, results of our operations,
or financial condition.

 Cybersecurity Governance and Oversight

 Management is responsible for the cybersecurity
risk management program as well as actions to identify, assess, mitigate, and remediate material issues. The Company's cybersecurity
risk management program is supervised by our IT manager, who reports directly to the Company's Chief Executive Officer. The IT manager
and his team are responsible for leading cybersecurity strategy, policy, standards, architecture and processes.

 The Audit Committee of the Board of Directors
is charged with oversight of cybersecurity matters and receives reports from the IT manager and Chief Executive Officer on, among other
things, the Company's cyber risks and threats, the status of projects to strengthen the Company's information security systems,
and the emerging threat landscape. In accordance with our Cyber Incident Response Plan, the Audit Committee will be promptly informed
by management of cybersecurity incidents with the potential to materially adversely affect the Company or its information systems and
is regularly updated about incidents with lesser impact potential. At least annually, the Board reviews and discusses the Company's
technology strategy in combination with the Company's strategic objectives with executive management.

 In an effort to detect and defend against cyber
threats, the Company plans to provide its employees with various cybersecurity and data protection training programs which will cover
timely and relevant topics, including social engineering, phishing, password protection, confidential data protection, asset use and mobile
security, and educate employees on the importance of reporting all incidents promptly.

 ITEM 2 – PROPERTIES

 Our principal executive office is located at
Americas Tower, 1177 Avenue of The Americas, Suite 5100, New York, NY 10036 and we lease the office for a term of one year from
December 1, 2020, which has been renewed until December 1, 2025. We also lease offices at Room 603A, Tower A, Oriental Media Center,
No.4, Guanghua Rd, Chaoyang District, Beijing, China for a term from September 26, 2024 to September 25, 2026; FTFT International
Securities and Futures Limited leases an office at 02B-03A Floor 23, Sino Plaza, 255-257 Gloucester Road, Causeway Bay, Hong Kong
from May 7, 2024 to May 6, 2027. Our Xi'an office is at 12 floor, Hang Tou Cai Fu Building, Hang Tian Zhong Road, Changan
District, Xi'an, China from January 1, 2025 to December 31, 2026.

 ITEM 3 – LEGAL PROCEEDINGS

 Legal case with FT Global Capital, Inc.

 In January 2021, FT Global
Capital, Inc. ("FT Global"), a former placement agent of the Company filed a lawsuit against the Company in the Superior Court
of Fulton County, Georgia. FT Global served the complaint upon the Company in January 2021. In the complaint, FT Global alleges
claims, most of which attempt to hold the Company liable under legal theories that relate back to an alleged breach of an exclusive placement
agent agreement between FT Global and the Company in July 2020 which had a term of three months. FT Global claims that the Company
failed to compensate FT Global for securities purchase transactions between December 2020 and April 2021, pursuant to the terms of the
expired exclusive placement agent agreement. Allegedly, the exclusive placement agent agreement required the Company to pay FT Global
for capital received during the term of the agreement and for the 12-month period following the termination of the agreement involving
any investors that FT Global introduced and/or wall-crossed to the Company. However, the Company believes the securities purchase transactions
at issue did not involve the one investor which FT Global introduced or wall-crossed to the Company during the term of the agreement.
 FT Global claims approximately $7,000,000 in damages and attorneys' fees.

 The Company timely removed the case to the United
States District Court for the Northern District of Georgia (the ("Court") on February 9, 2021 based on diversity of jurisdiction.
On March 9, 2021, the Company filed a motion to dismiss based on FT Global's failure to state a claim which is pending before the
Court. On November 10, 2021, the Court entered an Order granting the Company's motion to dismiss FT Global's fraud claim and
breach of contract claim as to the disclosure of its confidential and proprietary information. The Court denied the Company's motion
to dismiss FT Global's i) breach of contract claim for failure to pay FT Global pursuant to the terms of the exclusive placement
agent agreement; ii) claim for breach of the covenant of good faith and fair dealing; and iii) claim for attorney's fees, and the
court concluded that additional information can be obtained through discovery. On October 12, 2022, the Company filed a motion for summary
judgment on all claims asserted by FT Global in this lawsuit. On November 2, 2022, FT Global filed its opposition to the Company's
motion for summary judgment. On November 16, 2022, the Company filed its reply in support of its motion for summary judgment on all claims
asserted by FT Global in this lawsuit. On August 31, 2023, the Court entered an Order denying the Company's motion for summary judgment.
The trial began on April 8, 2024 and ended on April 11, 2024, on which date the jury returned a verdict in favor of FT Global. On April
11, 2024, the Court entered a judgment awarding FT Global $8,875,265.31 and on April 16, 2024, the Court issued an amended judgment, awarding
FT Global $10,598,379.93, which includes $7,895,265.31 in damages, $1,723,114.62 in prejudgment interest, and $980,000.00 in attorney's
fees. On May 9, 2024, the Company filed a post-trial motion to set aside the jury verdict and for a new trial and the Court denied the
motion on March 3, 2025. The Company filed notice of appeal to appeal the judgement to the United States Court of Appeals for the Eleventh
Circuit on April 2, 2025 and the Company will continue to vigorously defend the action against FT Global.

 FT Global has registered the Court's judgment
in the United States District Court for Southern District of New York ("NY Court"), where FT Global has brought a motion requiring
the Company to turn over its stock in its subsidiary companies. The Company has filed an opposition to the motion, arguing that
according to the New York statute the NY Court should first determine that the value of the stock in the subsidiary is insufficient to
satisfy the judgment as the Company believe the request for turnover is premature before a valuation hearing. On August 28, 2024, NY Court
granted FT Global's motion for turnover of Defendant's shares in Defendant's wholly-owned subsidiaries as Defendant
1) failed to satisfy the $10.8 million judgment rendered in the Northern District of Georgia and registered in the Southern District of
New York, and 2) is in possession of money and property in which it has an interest. The NY Court ordered Defendant shall turn over the
shares, membership, or limited partnership interests in all of its subsidiaries, and the corporate seals of its China and Hong Kong-based
subsidiaries, to the U.S. Marshal for auction or sale until the judgment is satisfied. Pursuant to the order issued by the United States
District Court for the Southern District of New York on August 28, 2024, the United States Marshal for the Southern District of New York
("U.S. Marshal") sold the securities of the subsidiaries of the Company other than those in Hong Kong and China in auction of:
(i) all of the membership interests in Future Fintech Digital Capital Management LLC; (ii) all of the outstanding shares of FTFT UK Limited;
(iii) the corporate seal of DigiPay FinTech Limited; (iv) the corporate seal of GlobalKey SharedMall Limited; (iv) all of the outstanding
shares of Future Fintech Labs Inc.; and (v) all of the outstanding shares of Future Fintech Digital Number One GP, LLC (USA) to Alec Orudjiev,
the general counsel of FT Global for $25,000 on December 18, 2024. On December 6, 2024, the Company agreed to sell all issued and outstanding
shares of FTFT SuperComputing Inc. a wholly owned subsidiary of the Company ("FTFT SuperComputing") to DDMM Capital LLC (the
"Buyer") for a purchase price that equals to: (i) the assumption of the obligations of FTFT SuperComputing totaling $973,072.24
and (ii)$1,000,000, which was paid to an account at Olshan Frome Wolosky LLP to satisfy, in part, the right of payment held by FT Global
Capital, Inc. arising from the judgment entered in favor of FT Global and against the Company registered in the Southern District of New
York and all matters pertaining to such litigation. The Company has appealed the turnover order of the NY Court for the auction of securities
of the subsidiaries of the Company in Hong Kong and China to the United States Court of Appeals for the Second Circuit and is waiting
for the final decision of the Court of Appeals. On February 6, 2025, FT Global filed a motion ("Motion") in the NY Court,
amended on February 12, 2025, seeking a turnover order for 39,825,939 (before 1 for 10 reverse split) unissued shares of the Company's
common stock for sale to satisfy the judgement. The amended motion directs the requested relief not only at the Company but also
at Transhare Corporation, the Company's Florida-based transfer agent. The Company believes the Motion lacks merit, as the issuance
of unissued shares in this manner would violate corporate governance principles, Florida corporate law, and federal securities regulations.
 The Company has opposed the Motion, which is now fully briefed and awaits decision by the NY Court.

 Shareholders Lawsuit
(LaBelle and Janzen)

 The LaBelle case is
a putative securities class action filed in January 2024 and is pending in the District of New Jersey. Denise LaBelle ("Plaintiff")
alleges that the Company and certain of its officers violated Sections 10(b) and 20(a) of the Securities Exchange Act by making materially
false or misleading statements in the company's public filings and disclosures relating to the former Chief Executive Officer of
the Company Mr. Shanchun Huang and charges filed by the SEC against Mr. Shanchun Huang with manipulative trading in the stock of the
Company using an offshore account shortly before he became the Company's CEO in 2020 and failing to disclose his beneficial ownership.
Mr. Huang has denied the allegations of trading before he became CEO. Plaintiff claims that these alleged misstatements caused the
Company's stock to trade at artificially inflated prices, harming investors when the truth was revealed. The lead plaintiff
and lead counsel were appointed in September 2024. The Company was served in September 2024, and the Plaintiff is currently seeking
substituted service on the individual defendants. Once service is resolved, the Plaintiff is expected to file an amended complaint,
which the Company and other defendants intend to move to dismiss.

 The Janzen action
is a consolidated shareholder derivative case filed by Jeff Janzen on May 31, 2024, also pending in the District of New Jersey, brought
nominally on behalf of Future FinTech. Plaintiff alleges that certain current and former officers and directors breached fiduciary
duties by allowing or failing to prevent the same alleged misconduct at issue in LaBelle, including mismanagement and misleading public
disclosures. The derivative case has been stayed by stipulation, pending resolution of the anticipated motion to dismiss in LaBelle,
but plaintiff has reserved the right to participate in mediation and settlement discussions relating to the class action.

 Settlement with
SEC

 On December 17, 2019,
the Company announced that it received a subpoena from the SEC's Division of Enforcement requiring the Company to produce documents
and other information and the Company has cooperated with the SEC's investigation and information request. On July 3, 2023, the
SEC announced a settlement of the investigation with the Company. Without admitting or denying the SEC's findings, the Company has
consented to: (i) cease and desist from committing or causing any violations and any future violations of Sections 17(a)(2) and (3) of
the Securities Act, Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act, and Rules 12b-20, 13a-1, 13a-13 and 13a-15(a) thereunder;
(ii) pay a civil money penalty in the amount of $1,650,000 to the Securities and Exchange Commission for transfer to the general
fund of the United States Treasury, subject to Exchange Act Section 21F(g)(3) and the payment shall be made in the following installments:
the first installment of $150,000 shall be paid within ten (10) days of July 3, 2023 (the "Order Date"); the second installment
of $375,000 shall be paid within 90 days of the Order Date; the third installment of $375,000 shall be paid within 180 days of the Order
Date; the fourth installment of $375,000 shall be made within 270 days of the Order Date; and the last installment of $375,000 shall be
made within 360 days of the Order Date; (iii) retain, within sixty (60) days of the Order Date, at Company's own expense, a qualified
independent consultant (the "Consultant") not unacceptable to the SEC staff, to test, assess, and review the Company's
internal accounting controls and internal control over financial reporting (collectively, "review), and the Consultant, at the conclusion
of the review, which in no event shall be no more than 180 days after the Order Date, to submit a report of the Consultant to the Company
and the SEC staff and the report shall address the Consultant's findings and shall include a description of the review performed,
the conclusions reached, and the Consultant's recommendations for changes or improvements; and (iv) adopt, implement, and maintain
all policies, procedures and practices recommended in the report of the Consultant within 120 days of receiving the report from the Consultant.
The Company has made all installment payments of the penalties except for the last one which will due on 360 days of the Order Date. On
July 26, 2023, the Company also has engaged an independent consultant to test, assess, and review the Company's internal accounting
controls and internal control over financial reporting. The consultant has completed its test, assess and review and issued a final report
in December 2023. The Company has adopted and are implementing and maintaining policies, procedures and practices recommended in the report
of the Consultant.

 ITEM 4 – MINE SAFETY DISCLOSURES

 ITEM 5 – MARKET FOR REGISTRANT'S
COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

 Our Common Stock is currently traded on the Nasdaq
Capital Market under the symbol "FTFT." Prior to December 31, 2018, our stock traded on the Nasdaq Global Market, and before
that, on the NYSE Amex.

 As of April 11, 2025, there were 3,050,770 shares
of our Common Stock issued and outstanding, and the Company had approximately 47 record holders of Common Stock. The number of holders
of record does not include the number of persons whose stock is in nominee or "street name" accounts through brokers.

 Dividend Policy

 We have never declared or paid any cash dividends
on our Common Stock. The payment of dividends is at the discretion of the Board and is contingent on our revenues and earnings, capital
requirements, financial condition and the ability of our operating subsidiaries to obtain governmental approval to send funds out of the
PRC. We currently intend to retain all earnings, if any, for use in business operations. Accordingly, we do not anticipate declaring any
dividends in the near future.

 The PRC's national currency, the RMB or
yuan, is not a freely-convertible currency. Please refer to the Risk Factors " Governmental control of currency conversion may
affect the value of shareholder investment," and " PRC 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 ".

 Recent Sales of Unregistered Securities and Use of Proceeds

 The Company did not make any sales of unregistered
securities during the fiscal year ended December 31, 2024 that were not previously disclosed in a quarterly report on Form 10-Q or a current
report on Form 8-K.

 Securities Authorized for Issuance Under Equity Compensation Plans

 The following table sets forth information as
of December 31, 2024, with respect to our equity compensation plans previously approved by stockholders and equity compensation plans
not previously approved by stockholders. The number of shares are pre-2025 Reverse Stock Split.

 Equity Compensation Plan Information

 Plan Category

 Number of
 securities
 to be issued
 upon
 exercise of
 outstanding
 options,
 warrants
 and rights

 Weighted
 average
 exercise
 price of
 outstanding
 options,
 warrants
 and rights

 Number of
 securities
 remaining
 available for
 future
 issuance
 under equity
 compensation
 plans
 (excluding
 securities
 reflected in
 column (a))

 (a)

 (b)

 (c)

 Equity compensation plans approved by stockholders (1)

 -

 $
 -

 5,000,000

 Equity compensation plans not approved by stockholders

 -

 $
 -

 -

 Total

 -

 $
 -

 5,000,000

 (1)

 Consists of Company's 2024 Omnibus Equity
 Plan, which was approved by the Company's shareholders at its annual meeting of stockholders on December 5, 2024, which was approved
 and adopted by the Board on October 12, 2024, to provide equity awards to employees, directors and consultants of the Company (the "2024
 Plan"). There are 5,000,000 shares of commons stock available for awards under 2024 Plan. On March 10, 2025, the Compensation Committee
 of the Board granted stock awards of 5,000,000 shares of common stock of the Company, pursuant to the Company's 2024 Omnibus Equity
 Plan, to sixteen officers and employees of the Company and its subsidiaries, including: 300,000 shares to Hu Li, Chief Executive Officer
 of the Company.

 On December 23, 2023, the Compensation Committee
of the Board of Directors (the "Board") of the Company granted stock awards of 2,890,000 shares of common stock of the Company,
pursuant to the Company's 2023 Omnibus Equity Plan, to sixteen officers and employees of the Company and its subsidiaries (the
"Grantees"), including: 200,000 shares to Shanchun Huang, then Chief Executive Officer and President of the Company, 40,000
shares to Peng Lei, Chief Operating Officer of the Company, and 30,000 shares to Hu Li, then Corporate Secretary of the Company (collectively,
the "Grants"). The Grants vested immediately on the Grant Date and each of the Grantees also entered into an Unrestricted
Stock Award Agreement with the Company on December 23, 2023. On October 4, 2024, the Company granted the remaining 2,110,000 share
under 2023 Omnibus Equity Plan to 4 employees of the Company and its subsidiaries.

 ITEM 6 – [RESERVED]

 Not Applicable.

 ITEM 7 – MANAGEMENT'S DISCUSSION
AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 The following discussion and analysis of the
consolidated financial condition and results of operations should be read in conjunction with the consolidated financial statements and
related notes appearing elsewhere in this report. This discussion and analysis contains forward-looking statements that involve risks,
uncertainties and assumptions. Our actual results could differ materially from the results described in or implied by these forward-looking
statements as a result of various factors, including those discussed below and elsewhere in this Annual Report on Form 10-K, particularly
under the heading "Risk Factors."

 Overview

 Future FinTech is a holding company incorporated
under the laws of the State of Florida and it is not a Chinese operating company. As a holding company with no material operations of
our own, we conduct a substantial majority of our operations through our subsidiaries and this structure involves unique risks to investors.
The Company historically engaged in the production and sale of fruit juice concentrates (including fruit purees and fruit juices), fruit
beverages (including fruit juice beverages and fruit cider beverages) in People's Republic of China. Due to drastically increased
production costs and tightened environmental laws in China, the Company had transformed its business from fruit juice manufacturing and
distribution to supply chain financing services and trading in China, asset management business in Hong Kong and cross-border money transfer
service in UK. The Company also expanded into brokerage and investment banking business in Hong Kong and cryptocurrency mining farm in
the U.S. The Company had a contractual arrangements with a VIE E-Commerce Tianjin in China, which has generated minimal revenue
and business since 2021 due to the negative impact caused by COVID-19. The Company started the process to close it down in November 2023
and completed deregistration and dissolution of the VIE with local authority on March 7, 2024. Due to worsened investment market sentiment
in Hong Kong, the Company sold its ownership in Nice Talent Asset Management Limited ("NTAM") to a third party for HK$2.4
million (approximately $300,000) in November 2024 and is no longer in asset management business in Hong Kong. On December 6, 2024, the
Company agreed to sell all issued and outstanding shares of FTFT SuperComputing Inc. a wholly owned subsidiary of the Company ("FTFT
SuperComputing") to DDMM Capital LLC (the "Buyer") for a purchase price that equals to: (i) the assumption of the
obligations of FTFT SuperComputing totaling $973,072.24 and (ii)$1,000,000, which was paid to an account at Olshan Frome Wolosky LLP to
satisfy, in part, the right of payment held by FT Global Capital, Inc. arising from the judgment entered in favor of FT Global and against
the Company registered in the Southern District of New York and all matters pertaining to such litigation. The closing of the transactions
contemplated by the Agreement took place on December 9, 2024. On December 18, 2024, the Company sold all of its interest and ownership
of Future Fintech Digital Capital Management LLC, FTFT UK Limited, DigiPay FinTech Limited, GlobalKey SharedMall Limited, Future Fintech
Labs Inc., and Future Fintech Digital Number One GP, LLC (USA) to Alec Orudjiev, the general counsel of FT Global for $25,000 through
the court ordered auction by the United States Marshal for the Southern District of New York. Currently, the main business of the Company
is supply-chain financing services and trading in China.

 On August 6, 2021, the Company completed acquisition
of 90% of the issued and outstanding shares of Nice Talent Asset Management Limited ("NTAM"), a Hong Kong-based asset management
company, from Joy Rich Enterprises Limited ("Joy Rich"). NTAM is licensed under the Securities and Futures Commission of Hong
Kong ("SFC") to carry out regulated activities in Type 4: Advising on Securities and Type 9: Asset Management. In order to
retain talent in view of the increased turnover in the industry in Hong Kong, top performers of NTAM who had worked with the company for
years were granted the right to subscribe for new shares of NTAM with cash. As a result, in July 2023, 19 shares of NTAM were issued to
Ms. Lau Kwai Chun at a cash consideration of HK$1,786,301 and in December 2023, 11 shares of NTAM were issued to Aspenwood Capital Partner
Limited at a cash consideration of HK$1,034,174. Due to the abovementioned 30 new shares issuance, the Company's holding of NTAM
decreased from 90% to 77.14%. In August 2024, NTAM issued additional 168 shares with HK$17,900 each for a total of HK$3,007,200 by way
of rights subscription offer to three existing shareholders of NTAM and Future Fintech (Hong Kong) Limited did not participate in the
subscription and an outsider investor purchased the shares. After the right subscription, the shareholding percentage of NTAM by Future
Fintech (Hong Kong) Limited decreased from 77.14% to 42.86%. In November 2024, the Company sold its remaining 42.86% ownership of
NTAM to a third party for HK$2.4 million and is no longer in asset management business in Hong Kong.

 On April 18, 2022, the
Company and Future Fintech (Hong Kong) Limited, a wholly owned subsidiary of the Company jointly acquired 100% equity interest of
KAZAN S.A., a company incorporated in Republic of Paraguay for $288. The Company owns 90% and FTFT HK owns 10% of Kazan S.A.,
respectively. Kazan S.A. has no operation before the acquisition. The Company plans to develop bitcoin and other cryptocurrency mining
and related services in Paraguay. The Company has changed its name from KAZAN S.A to FTFT Paraguay S.A. on July 28, 2022 and it was dissolved
in December 2023 as the Company was not able to develop the business in Paraguay as planned.

 On February 27, 2023,
Future FinTech (Hong Kong) Limited ("Buyer"), a company incorporated in Hong Kong and a wholly owned subsidiary of Future
FinTech Group Inc. (the "Company") entered into a Share Transfer Agreement (the "Agreement") with Alpha Financial
Limited, a company incorporated in Hong Kong ("Seller") and sole owner and shareholder of Alpha International Securities (Hong
Kong) Limited, a company incorporated in Hong Kong ("Alpha HK") and Alpha Information Service (Shenzhen) Co., Ltd., a company
incorporated in China ("Alpha SZ"). Alpha HK holds Type 1 'Securities Trading', Type 2 'Futures Contract
Trading' and Type 4 'Securities Consulting' financial licenses issued by the Hong Kong Securities and Futures Commission.
Alpha SZ provides technical support services to Alpha HK. The share transfer transaction was approved by the Securities and Futures
Commission of Hong Kong ("SFC") in August 2023 and the acquisition was closed on November 7, 2023. The names of the two entities
were subsequently changed to 'FTFT International Securities and Futures Limited' and 'FTFT Information Services (Shenzhen)
Co. Ltd.', respectively.

 On September 4, 2024, the Company deregistered
and dissolved the Tianjin Future Private Equity Fund Management Partnership, a Limited Partnership under the laws of China.

 On December 6, 2024, the Company and FTFT SuperComputing
Inc. a wholly owned subsidiary of the Company ("FTFT SuperComputing") entered into a Stock Purchase Agreement (the "Agreement")
with DDMM Capital LLC (the "Buyer"). Pursuant to the terms of the Agreement, the Company sold all of the issued and
outstanding shares of FTFT SuperComputing to the Buyer for a purchase price that equals to: (i) the assumption of the obligations of FTFT
SuperComputing totaling $973,072.24 and (ii)$1,000,000, which was paid to an account at Olshan Frome Wolosky LLP to satisfy, in part,
the right of payment held by FT Global Capital, Inc. arising from the judgment entered in favor of FT Global and against the Company registered
in the Southern District of New York and all matters pertaining to such litigation. The closing of the transactions contemplated by the
Agreement took place on December 9, 2024.

 On December 18, 2024, the Company sold all of
its interest and ownership of Future Fintech Digital Capital Management LLC, FTFT UK Limited, DigiPay FinTech Limited, GlobalKey SharedMall
Limited, Future Fintech Labs Inc., and Future Fintech Digital Number One GP, LLC (USA) to Alec Orudjiev, the general counsel of FT Global
for $25,000 through the court ordered auction by the United States Marshal for the Southern District of New York.

 On January 26, 2023,
the Company filed with the Florida Secretary of State's office Articles of Amendment (the "Amendment") to amend
its Second Amended and Restated Articles of Incorporation, as amended ("Articles of Incorporation"). As a result of the Amendment,
the Company has authorized and approved a 1-for-5 reverse stock split of the Company's authorized shares of common stock from 300,000,000
shares to 60,000,000 shares, accompanied by a corresponding decrease in the Company's issued and outstanding shares of common stock
(the "2023 Reverse Stock Split").

 On March 27, 2025, the
Company filed with the Florida Secretary of State's office Articles of Amendment (the "Amendment") to amend its
Second Amended and Restated Articles of Incorporation, as amended ("Articles of Incorporation"). As a result of the Amendment,
the Company has authorized and approved a 1-for-10 reverse stock split of the Company's authorized shares of common stock from 60,000,000
shares to 6,000,000 shares, accompanied by a corresponding decrease in the Company's issued and outstanding shares of common stock
("2025 Reverse Stock Split", collectively with 2023 Reverse Stock Split as "Reverse Splits"). The common stock
will continue to be $0.001 par value. The Company rounded up the fractional shares that result from the 2025 Reverse Stock Split and no
fractional shares will be issued in connection with the 2025 Reverse Stock Split and no cash or other consideration will be paid in connection
with any fractional shares that would otherwise have resulted from the 2025 Reverse Stock Split. No changes are being made to the number
of preferred shares of the Company which remain as 10,000,000 preferred shares as authorized but not issued. The amendment to the Articles
of Incorporation of the Company took effect at 1:00pm E.T. on April 1, 2025.

 The Company operated
a blockchain based online shopping platform, Chain Cloud Mall ("CCM") Chain Cloud Mall through its VIE and its business was
materially and negatively affected during outbreak of COVID-19 because the Company was unable to implement its promotion strategy to enroll
new members through training of such members and distributors via meetings and conferences which was not possible during the outbreak
of COVID-19. CCM has generated minimal revenue and business since 2021, despite the Company transformed the member-based business
model of CCM to a sale agent based "Enterprise Communication as A Service" or eCAAS platform during the second quarter of
2021. The Company started a process to close it down in November 2023 and completed deregistration and dissolution of the VIE with local
authority on March 7, 2024.

 There are legal and operational risks associated
with being based in and having a substantial majority of operations in China and Hong Kong. These risks could result in a material change
in our operations and/or the value of our common stock or could significantly limit or completely hinder our ability to offer or continue
to offer securities to investors and cause the value of our shares to significantly decline or be worthless. In the past few years, the
PRC government initiated a series of regulatory actions and statements to regulate business operations in China with little advance notice,
including cracking down on illegal activities in the securities market, enhancing supervision over China-based companies listed overseas
using variable interest entity structure, adopting new measures to extend the scope of cybersecurity reviews, and expanding the efforts
in anti-monopoly enforcement. On July 6, 2021, the General Office of the Communist Party of China Central Committee and the General Office
of the State Council jointly issued an announcement to crack down on illegal activities in the securities market and promote the high-quality
development of the capital market, which, among other things, requires the relevant governmental authorities to strengthen cross-border
oversight of law-enforcement and judicial cooperation, to enhance supervision over China-based companies listed overseas, and to establish
and improve the system of extraterritorial application of the PRC securities laws. On February 15, 2022, Cybersecurity Review Measures
published by Cyberspace Administration of China or the CAC, National Development and Reform Commission, Ministry of Industry and Information
Technology, Ministry of Public Security, Ministry of State Security, Ministry of Finance, Ministry of Commerce, People's Bank of
China, State Administration of Radio and Television, China Securities Regulatory Commission ("CSRC"), State Secrecy Administration
and State Cryptography Administration became effective, which provides that, Critical Information Infrastructure Operators ("CIIOs")
that intend to purchase internet products and services and Online Platform Operators engaging in data processing activities that affect
or may affect national security shall be subject to the cybersecurity review by the Cybersecurity Review Office. On July 7, 2022, CAC
promulgated the Measures for the Security Assessment of Data Cross-border Transfer, effective on September 1, 2022, which requires the
data processors to apply for data cross-border security assessment coordinated by the CAC under the following circumstances: (i) any data
processor transfers important data to overseas; (ii) any critical information infrastructure operator or data processor who processes
personal information of over 1 million people provides personal information to overseas; (iii) any data processor who provides personal
information to overseas and has already provided personal information of more than 100,000 people or sensitive personal information of
more than 10,000 people to overseas since January 1st of the previous year; and (iv) other circumstances under which the data cross-border
transfer security assessment is required as prescribed by the CAC. On February 17, 2023, the CSRC released New Overseas Listing Rules
with five interpretive guidelines, which took effect on March 31, 2023. The New Overseas Listing Rules require Chinese domestic enterprises
to complete filings with CSRC and report related information under certain circumstances, such as: a) an issuer making an application
for initial public offering and listing in an overseas market; b) an issuer making an overseas securities offering after having been listed
on an overseas market; c) a domestic company seeking an overseas direct or indirect listing of its assets through single or multiple acquisition(s),
share swap, transfer of shares or other means. According to the Notice on Arrangements for Overseas Securities Offering and Listing by
Domestic Enterprises, published by the CSRC on February 17, 2023, a company that (i) has already completed overseas listing or (ii) has
already obtained the approval for the offering or listing from overseas securities regulators or exchanges but has not completed such
offering or listing before effective date of the new rules and also completes the offering or listing before September 30, 2023 are considered
as an existing listed company and is not required to make any filing until it conducts a new offering in the future. Furthermore, upon
the occurrence of any of the material events specified below after an issuer has completed its offering and listed its securities on an
overseas stock exchange, the issuer shall submit a report thereof to the CSRC within 3 business days after the occurrence and public disclosure
of the event: (i) change of control; (ii) investigations or sanctions imposed by overseas securities regulatory agencies or other competent
authorities; (iii) change of listing status or transfer of listing segment; or (iv) voluntary or mandatory delisting. The New Overseas
Listing Rules stipulate the legal consequences to the companies for breaches, including failure to fulfill filing obligations or filing
documents having false statement or misleading information or material omissions, which may result in a fine ranging from RMB1 million
to RMB10 million, and in cases of severe violations, the relevant responsible persons may also be barred from entering the securities
market. On February 24, 2023, the CSRC, the Ministry of Finance, the National Administration of State Secretes Protection and the
National Archives Administration released the Provisions on Strengthening the Confidentiality and Archives Administration Related to the
Overseas Securities Offering and Listing by Domestic Companies, or the Confidentiality and Archives Administration Provisions, which took
effect on March 31, 2023. PRC domestic enterprises seeking to offer securities and list in overseas markets, either directly or indirectly,
shall establish and improve the system of confidentiality and archives work, and shall complete approval and filing procedures with competent
authorities, if such PRC domestic enterprises or their overseas listing entities provide or publicly disclose documents or materials involving
state secrets and work secrets of state organs to relevant securities companies, securities service institutions, overseas regulatory
agencies and other entities and individuals. It further stipulates that (i) providing or publicly disclosing documents and materials which
may adversely affect national security or public interests, and accounting records or photocopies thereof to relevant securities companies,
securities service institutions, overseas regulatory agencies and other entities and individuals shall be subject to corresponding procedures
in accordance with relevant laws and regulations; and (ii) any working papers formed in the territory of the PRC by securities companies
and securities service agencies that provide domestic enterprises with securities services relating to overseas securities issuance and
listing shall be stored in the territory of the PRC, the outbound transfer of which shall be subject to corresponding procedures in accordance
with relevant laws and regulations. As of the date of this report, these new laws and guidelines that became effective have not impacted
the Company's ability to conduct its business, accept foreign investment or list on a U.S. or other foreign stock exchange except
for the filing requirement under New Overseas Listing Rules. The Company is still processing the filings with CSRC for its offerings since
the effective of New Overseas Listing Rules and has not complied the filing requirements yet which would subject the Company to fines
and other penalties for violation of New Overseas Listing Rules. In addition, new rules and regulations could be adopted and there are
uncertainties in the interpretation and enforcement of existing laws and guidelines, which could materially and adversely impact our business
and financial outlook and may impact our ability to accept foreign investments or continue to list on a U.S. or other foreign stock exchange. Any
change in foreign investment regulations, and other policies in China or related enforcement actions by China government could result
in a material change in our operations and the value of our securities and could significantly limit or completely hinder our ability
to offer our securities to investors or cause the value of our securities to significantly decline or be worthless.

 In the opinion of our PRC counsel Fengdong Law
Firm, subsidiaries of the Company are incorporated and operating in mainland China have received all required permissions from Chinese
authorities to operate their current business in China, including Business licenses and Bank Account Open Permits, as of the date of this
report.

 In the opinion of Fengdong Law Firm, as of the
date of this report, we, our subsidiaries in China are not subject to permission requirements from the CSRC or CAC or any other entity
that is required to approve of their operations and have not received or were denied such permissions by any PRC authorities. Currently,
we are required to file with CSRC for any offerings under New Overseas Listing Rules. The Company is still processing the filings with
CSRC for its offerings since the effective of New Overseas Listing Rules and has not complied the filing requirements yet which would
subject the Company to fines and other penalties for violation of New Overseas Listing Rules. Given the current PRC regulatory environment,
it is uncertain whether we, our subsidiaries, will be able to obtain permission from the PRC government to offer our securities to foreign
investors, and even when such permission is obtained, whether it will be denied or rescinded. If we or any of our subsidiaries do not
receive or maintain such permissions or approvals, inadvertently conclude that such permissions or approvals are not required, or applicable
laws, regulations, or interpretations change and we or our subsidiaries are required to obtain such permissions or approvals, it could
significantly limit or completely hinder our ability to offer or continue to offer our securities to investors and cause the value of
our securities to significantly decline or become worthless. Failure to take timely and appropriate measures to adapt to any of these
or similar regulatory compliance challenges could materially and adversely affect our current corporate structure and business operations.

 The Company currently has one directly controlled
subsidiaries: Future FinTech (Hong Kong) Limited, a company incorporated under the laws of Hong Kong.

 SkyPeople Foods Holdings Limited ("SkyPeople
BVI") was a wholly owned subsidiary of the Company and a company organized under the laws of the British Virgin Islands, which held
100% of the equity interest of HeDeTang Holdings (HK) Ltd. ("HeDeTang HK"), a company organized under the laws of the Hong
Kong Special Administrative Region of the People's Republic of China ("Hong Kong"), and HeDeTang HK held 73.42% of the
equity interest of SkyPeople Juice Group Co., Ltd., ("SkyPeople (China)"), a company incorporated under the laws of the PRC.
SkyPeople (China) had eleven subsidiaries in the PRC, which were mainly involved in the production and sales of fruit juice concentrates,
fruit juice beverages and other fruit-related products in the PRC and overseas markets. On February 27, 2020, SkyPeople BVI (the "Seller")
completed the transfer of its ownership of HeDeTang HK to New Continent International Co., Ltd. (the "Buyer"), an unrelated
third party and a company incorporated in the British Virgin Islands for a total price of RMB 0.6 million (approximately $85,714), pursuant
to a Share Transfer Agreement entered into by the Seller and the Buyer on September 18, 2019 and approved at the special shareholders
meeting of the Company on February 26, 2020 (the "Sale Transaction"). SkyPeople BVI had no operational assets or business
after the transfer and the Company dissolved SkyPeople BVI on July 27, 2020.

 Supply Chain Financing
Service and Trading in China

 Since the second quarter
of 2021, we started supply chain financing service and trading business, which currently includes coal, aluminum ingots, sand and steel
supply chain financing service and trading business.

 Our supply chain finance business mainly serves
the receivables and payables of industrial customers, obtains the creditor's rights or commodity goods rights of large state-owned
enterprises through trade execution, provides customers with working capital, accelerates capital turnover, and then expands the business
scale and improves the industrial value.

 Through our supply chain service ability and customer
resources, we can tap into low-risk assets, flexibly carry out financial services around the actual financial needs of certain industries,
and reduce the overall risk of the business by using the control of business flow, goods logistics and capital flow in the process of
commodity circulation.

 We focus on bulk commodity goods such as sand,
steel, coal and aluminum ingots and take large state-owned or listed companies as the core service targets; We use our own funds as the
operation basis, actively uses a variety of channels and products for financing, such as banks, commercial factoring companies, accounts
receivable, asset-backed securities, and other innovative financing methods to obtain sufficient funds.

 We sign purchase and sale agreements with suppliers
and buyers. The suppliers are responsible for the supply and transportation of goods to the end users' designated freight yard or
transfer the title to us in certain warehouses. We also provide trading service as we don't take control over the ownership of the
goods but receive lower margin for the transaction. For the sale of goods where we obtain control of the goods before transferring it
to the customer, we recognize revenue based on the gross revenue amount billed to customers as sales of goods. We consider multiple factors
when determining whether we obtain control of third-party goods, including evaluating if we can establish the price of the goods, retain
inventory risk for tangible goods or have the responsibility for ensuring acceptability of the goods. We recognize net revenue as agent
services for the sales of coals, aluminum ingots, sand and steel when no control obtained throughout the transactions. We select
the customers and suppliers that have good credit and reputation.

 Asset Management,
Brokerage and Investment Banking Services in Hong Kong.

 The Company acquired
90% of the issued and outstanding shares of Nice Talent Asset Management Limited ("NTAM"), a Hong Kong-based asset management
company in August 2021. NTAM was founded in 2018 and it engages asset management and advisory services. NTAM is licensed under the Securities
and Futures Commission of Hong Kong (SFC) for carrying out regulated activities in "Advising on Securities" and "Asset
Management". NTAM offers diversified asset management portfolio for professional investors. Assets of NTAM's clients are held
in banks, where clients gave the banks their authorization allowing NTAM to place trading instructions on behalf of the clients in order
to manage the clients' assets. In order to retain talent in view of the increased turnover in the industry in Hong Kong, top performers
of NTAM who had worked with the company for years were granted the right to subscribe for new shares of NTAM with cash. As a result, in
July 2023, 19 shares of NTAM were issued to Ms. Lau Kwai Chun at a cash consideration of HK$1,786,301 and in December 2023, 11 shares
of NTAM were issued to Aspenwood Capital Partner Limited at a cash consideration of HK$1,034,174. Due to the abovementioned 30 new shares
issuance, the Company's holding of NTAM decreased from 90% to 77.14%. In August 2024, NTAM issued additional 168 shares with HK$17,900
each for a total of HK$3,007,200 by way of rights subscription offer to three existing shareholders of NTAM and Future Fintech (Hong Kong)
Limited did not participate in the subscription and an outsider investor purchased the shares. After the right subscription, the shareholding
percentage of NTAM by Future Fintech (Hong Kong) Limited decreased from 77.14% to 42.86%. In November 2024, the Company closed the
sale of its remaining 42.86% ownership of NTAM to a third party for HK$2.4 million and is no longer in asset management business in Hong
Kong.

 NTAM mainly engages in following asset management services for its
clients:

 (1) Equity Investment

 NTAM manages clients' investment portfolio
in stocks of the companies listed on the international market with strong liquidity. At the same time, it selects companies that have
unique or differentiated businesses, realizing above average profit growth.

 (2) Debt investment

 When NTAM manages clients' investment portfolio
in bonds that are denominated in major international currencies such as US dollar, euro and sterling, the issuer of debts shall have good
credit rating and asset liability ratio. Through active management, NTAM focuses on bonds with higher yield to maturity among bonds with
the same maturity and credit rating.

 (3) Precious metals and currencies investment

 NTAM also manages clients' investment portfolio
in major international currencies and precious metals, including US dollar, Euro, British pound, Japanese yen, Australian dollar and offshore
Chinese yuan. Precious metals include gold, platinum and silver. With research on the fundamentals of market supply and demand to predict
the trend of commodity prices, NTAM endeavors to improve the rate of return for clients through dual currency investment, options and
structured products.

 (4) Derivative Investment

 NTAM also manages clients' investment portfolio
in financial derivatives in different asset classes, such as options and structured products.

 (5) External Asset Management Services (EAM)

 This business takes customer demand as the service
purpose, cooperates with several private banks which provide asset custody services, and innovatively introduces the function of investment
bank to provide exclusive private solutions for clients.

 NTAM's main revenue is generated from providing
professional advices to clients and management fees for managing the investment of the clients.

 Impact of COVID-19 on our Business

 In December 2019, a novel strain of coronavirus
was reported and has spread throughout China and other parts of the world. On March 11, 2020, the World Health Organization characterized
the outbreak as a "pandemic". In early 2020, Chinese government took emergency measures to combat the spread of the virus,
including quarantines, travel restrictions, and the temporary closure of office buildings and facilities in China. In response to
the evolving dynamics related to the COVID-19 outbreak, the Company was following the guidelines of local authorities as it prioritizes
the health and safety of its employees, contractors, suppliers and business partners. Our offices in China were closed and the employees
worked from home at the end of January 2020 until late March 2020. The quarantines, travel restrictions, and the temporary closure of
office buildings have materially negatively impacted our business. The outbreak has had and might continue to have disruption to our supply
chain, logistics providers, customers or our marketing activities with the new variants of COVID-19, which could materially adversely
impact our business and results of operations. There were outbreaks in various cities and provinces in China due to Omicron variant, such
as Xi'an city, Hong Kong, Shanghai, Beijing and other cities in 2022, which have resulted quarantines, travel restrictions, and
temporary closure of office buildings and facilities in these cities. In December 2022, the Chinese government eased its strict zero
COVID-19 policy which resulted in a surge of new COVID-19 cases during December 2022 and January 2023, which has disrupted our business
operations in China. The Company's promotion strategy of CCM Shopping Mall previously mainly relied on the training of members
and distributors through meetings and conferences. Chinese government put a restriction on large gatherings in 2020 and 2021, which made
the promotion strategy for our online e-commerce platforms difficult to implement and the Company experienced difficulties to subscribe
new members for its online e-commerce platforms. Since 2021, CCM generated minimal revenue and business for the Company. The Company
started a process to close down its operations in November 2023 and completed deregistration and dissolution of the VIE with local authority
on March 7, 2024.

 While the potential economic impact brought by
new variants of COVID-19 may be difficult to assess or predict, a widespread pandemic could result in significant disruption of global
financial markets, reducing our ability to access capital, which could negatively affect our liquidity. Further, as we do not have access
to a revolving credit facility, there can be no assurance that we would be able to secure commercial debt financing in the future in the
event that we require additional capital. In the event that we do need to raise capital in the future and there is any outbreak due to
new variants, outbreak-related instability in the securities markets could adversely affect our ability to raise additional capital.

 Discontinued Operations

 On June 16, 2023, QR (HK) Limited was dissolved
and deregistered.

 On December 5, 2023, FTFT PARAGUAY S.A. was dissolved.

 On March 7, 2024, Chain Cloud Mall Network and
Technology (Tianjin) Co., Limited was dissolved and deregistered.

 On September 4, 2024, Tianjin Future Private Equity
Fund Management Partnership (Ltd Partnership) was dissolved and deregistered.

 On November 27, 2024, Nice Talent Asset Management
Limited ("NTAM") was disposed of for a consideration of US$ 0.31 million (HK$2.40 million).

 On December 9, 2024, FTFT SuperComputing Inc.
was disposed of for a consideration of US$1.97 million, of which (i) the assumption of the obligations of FTFT SuperComputing totaling
$973,072.24 and (ii) $1,000,000 was paid to an account at Olshan Frome Wolosky LLP to satisfy, in part, the right of payment held by FT
Global Capital, Inc. arising from the judgment entered in favor of FT Global and against the Company registered in the Southern District
of New York.

 On December 18, 2024, the Company sold all of its interest and ownership
of Future Fintech Digital Capital Management LLC, FTFT UK Limited, DigiPay FinTech Limited, GlobalKey SharedMall Limited, Future Fintech
Labs Inc., and Future Fintech Digital Number One GP, LLC (USA) to Alec Orudjiev, the general counsel of FT Global for $25,000 through
the court ordered auction by the United States Marshal for the Southern District of New York. Currently, the main business of the Company
is supply-chain financing services and trading in China

 Segment Information Reclassification

 The Company's businesses mainly are Supply
Chain Financing and Trading Services and Asset Management Services.

 Use of Estimates

 The Company's consolidated financial statements
have been prepared in accordance with U.S. GAAP and this requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure at contingent assets and liabilities at the date of the consolidated financial statements
and reported amounts of revenue and expenses during the reporting period. The significant areas requiring the use of management estimates
include the allowance for doubtful accounts receivable, estimated useful life and residual value of property, plant and equipment, impairment
of long-lived assets, provision for staff benefit, valuation of change in fair value of warrant liability, recognition and measurement
of deferred income taxes and valuation allowance for deferred tax assets. Although these estimates are based on management's knowledge
of current events and actions management may undertake in the future, actual results may ultimately differ from those estimates.

 Fair Value of Financial Instruments

 On January 1, 2009, the Company adopted FASB Accounting
Standard Codification Topic on Fair Value Measurements and Disclosures ("ASC 820"), which defines fair value, establishes
a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. ASC 820 does not require any new
fair value measurements, but provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source
of the information. In February 2008, FASB deferred the effective date of ASC 820 by one year for certain non-financial assets and non-financial
liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually).
The Company adopted the provisions of ASC 820, except as it applies to those non-financial assets and non-financial liabilities for which
the effective date has been delayed by one year.

 ASC 820 establishes a three-level valuation hierarchy
of valuation techniques based on observable and unobservable input, which may be used to measure fair value and include the following:

 Level 1 - Quoted prices in active markets for
identical assets or liabilities.

 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.

 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. Classification within the hierarchy
is determined based on the lowest level of input that is significant to the fair value measurement.

 Revenue Recognition

 The Company adopted ASC 606, Revenue from Contracts
with Customers, from January 1, 2018. The adoption had no impact on the Company's retained earnings as of January 1, 2018 as well
as the Company's financial statements for the year ended December 31, 2019. To achieve that core principle, we apply the five steps
defined under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii)
determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize
revenue when (or as) the entity satisfies a performance obligation. We assess its revenue arrangements against specific criteria in order
to determine if it is acting as principal or agent. Revenue is recognized upon the transfer of control of promised goods or services to
a customer. Historically, the Company has not had any returned products. Accordingly, no provision has been made for returnable goods.
The Company is not required to rebate or credit a portion of the original fee if it subsequently reduces the price of its products.

 Foreign Currency and Other Comprehensive Income

 The financial statements of the Company's
foreign subsidiaries are measured using the local currency as the functional currency; however, the reporting currency of the Company
is the United States dollar ("USD"). Assets and liabilities of the Company's foreign subsidiaries have been translated
into USD using the exchange rate at the balance sheet date, while equity accounts are translated using historical exchange rate. The average
exchange rate for the period has been used to translate revenues and expenses. Translation adjustments are reported separately and accumulated
in a separate component of equity (cumulative translation adjustment).

 Other comprehensive income for the years ended
December 31, 2024 and 2023 represented foreign currency translation adjustments and were included in the consolidated statements of comprehensive
income.

 There is no guarantee the RMB amounts could have
been, or could be, converted into USD at rates used in translation.

 Income Taxes

 Income taxes are provided on an asset and liability
approach for financial accounting and reporting of income taxes. Any tax paid by subsidiaries during the year is recorded. Current tax
is based on the profit or loss from ordinary activities adjusted for items that are non-assessable or disallowable for income tax purpose
and is calculated using tax rates that have been enacted at the balance sheet date. Deferred income tax liabilities or assets are recorded
to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and the financial reporting
amounts at each period end. A valuation allowance is recognized if it is more likely than not that some portion, or all, of a deferred
tax asset will not be realized.

 ASC 740 provides guidance for recognizing and
measuring uncertain tax positions, and it prescribes a threshold condition that a tax position must meet for any of the benefits of the
uncertain tax position to be recognized in the financial statements. ASC 740 also provides accounting guidance on derecognizing, classification
and disclosure of these uncertain tax positions.

 Impairment of Long-Lived Assets

 In accordance with the FASB ASC 360-10, Accounting
for the Impairment or Disposal of Long-Lived Assets, long-lived assets, such as property, plant and equipment and purchased intangibles
subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an
asset may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technological or other
industrial changes. Determination of recoverability of assets to be held and used is by comparing the carrying amount of an asset to future
net undiscounted cash flows to be generated by the assets.

 If such assets are considered to be impaired,
the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets.
Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.

 Recent Accounting Pronouncements

 We have reviewed all the recently issued, but
not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company.
See Note 2. Summary of Significant Accounting Policies, to our Consolidated Financial Statements for a description of applicable recent
accounting pronouncements.

 Comparison of Operation Results of years ended
December 31, 2024 and 2023

 Revenue

 The following table presents our consolidated
revenues for our main products and services for the fiscal years 2024 and 2023, respectively, (in thousands):

 Year ended

 Change

 2024

 2023

 %

 Supply Chain Financing/Trading

 $

 $
 20,826

 $
 (19,843
)

 (95.28
)%

 1,175

 34.90
 %

 Total

 $
 2,158

 $
 21,697

 $
 19,539

 (158.50
)%

 Revenue decreased from $21.7 million in 2023 to
$2.16 million in 2024, decrease of $19.54 million or 158.5%. The decrease in overall revenue was mainly due to the sale of the subsidiary
NTAM which generated $12.88 million revenue from asset management business in 2023 as well as decrease in revenues generated from supply
chain financing and trading business. As the real estate, infrastructure and overall economy in China have slowed down in 2024, the demand
for sand and steel has dropped during 2024 comparing to the same period of 2023, and coal price has decreased in China and the market
demand has also decreased during 2024 as comparing to the same period of 2023.

 Other revenues increased from $0.87 million for
the year ended December 31, 2023 to $1.18 million for the same period of 2024, mainly due to the increased debt recovery consulting service
fee as well as U.S. dollar bond service income, as we did not have such income in 2023.

 Gross Margin

 (in thousands)

 2024

 2023

 Gross
 profit

 Gross
 margin

 Gross
 profit

 Gross
 margin

 Supply Chain Financing/Trading

 $

 17.8
 %

 2.03
 %

 1,097

 93.36
 %

 80.09
 %

 Total

 $
 1,272

 58.94
 %

 $
 1,121

 51.95
 %

 Overall gross profit increased from approximately
$1.12 million in 2023 to approximately $1.27 million in 2024, mainly due to new consulting and US dollar bond services business in 2024
comparing to 2023.

 Operating Expenses

 The following table presents consolidated operating
expenses and operating expenses as a percentage of revenue for 2024 and 2023, respectively, (in thousands):

 2024

 2023

 % of
 revenue

 % of
 revenue

 General and administrative

 $
 6,213

 287.91
 %

 $
 7,244

 33.39
 %

 Research and development expenses

 14.5
 %

 1.57
 %

 Stock compensation expense

 31.09
 %

 3,468

 15.98
 %

 Selling expenses

 29.47
 %

 1.33
 %

 (Recovery) Provision of doubtful debts

 27,350

 1,267.38
 %

 (788
)

 (3.63
)%

 Impairment Loss

 -

 -

 14,161

 65.27
 %

 Total operating expenses

 $
 35,207

 1,631.46
 %

 $
 24,713

 113.9
 %

 General and administrative expenses decreased
by $1 million, or 13.89%, from $7.2 million to $6.2 million for the year ended 2024, compared to the same period of last fiscal year.
The decrease in general and administrative expenses was mainly due to decreased professional service fees and rental fee during the year
ended December 31, 2024.

 Selling expenses increased by $0.35 million to
$0.63 million in 2024 as compared to $0.28 million in 2023, the increase in selling expenses was mainly due to increase in selling expenses
from our supply chain business.

 Bad debt provision increased by $27.35 million
during the year 2024, compared to the same period of last fiscal year. The increase was due to bad debt provision in 2024 because a different
bad debt provision accounting treatment method used in 2024.

 Loss from Operations

 Loss from operations increased by $1.41 million
to $34.23 million for 2024 from $32.82 million for 2023, mainly due to decrease in cost of revenue.

 Noncontrolling Interests

 Nature
Worldwide Resources Ltd. holds 40% interest in DCON DigiPay Limited ("DCON Digipay"). Each of Bin Wu and Lixiong Huang holds
25% and 20% interest in FTFT Capital Investments L.L.C., respectively.

 Loss per Share

 Basic and diluted loss per share from continuing
operations were $1.63 and $1.63 in fiscal 2024, as compared to $2.21 and $2.2 in fiscal 2023, respectively. Basic and diluted loss per
share attributable to discontinued operations was $0.06 and $0.06 for fiscal year 2024 as compared to basic and diluted income per share
$0.07 and $0.07 for fiscal year 2023 respectively.

 Liquidity and Capital Resources

 As of December 31, 2024, we had cash and cash
equivalents of $4.84 million, a decrease of $12.57 million, from $17.41 million as of December 31, 2023. The decrease in cash, cash equivalents
was mainly due the loss in provision of doubtful debt for the year ended December 31, 2024 comparing to the same period of 2023.

 Our working capital has historically been generated
from our operating cash flows, advances from our customers and loans from bank facilities. Our working capital was $8.27 million as of
December 31, 2024, a decrease of $28.49 million from $36.76 million as of December 31, 2023, mainly due to decrease in current assets.

 In 2024, net cash used in our operating activities
was $21.23 million compared to net cash used in operating activities of $14.56 million in 2023. The increase in net cash used by operating
activities was primarily due to an increase in provision of doubtful debt during the year ended December 31, 2024.

 In 2024, net cash provided in our investing activities
was $16.29 million compared to net cash used in operating activities of $8.78 million in 2023 mainly due to decrease in repayment for
loan receivable.

 In 2024, cash used by financing activities was
$2.5 million as compared to cash used in financing activities negative $2.4 million in 2023. The increase in cash used by financing activities
was mainly due to proceeds from the issuance of common stock from a private placement, net of issuance costs.

 Off-Balance Sheet Arrangements

 As of December 31, 2024, we did not have any off-balance
sheet arrangements.

 ITEM 7A – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK

 ITEM 8 – FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 The information called for by this item is included
in the Company's consolidated financial statements beginning on page F-1 of this Annual Report on Form 10-K.

 ITEM 9 – CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE

 ITEM 9A – CONTROLS AND PROCEDURES

 Evaluation of Disclosure Controls and Procedures

 Our management, with the participation of our
CEO and CFO, has evaluated the effectiveness of the Company's disclosure controls and procedures, as defined in Rule 13a-15(e) and
15d-15(e) of the Exchange Act, as of December 31, 2024.

 The term "disclosure controls and procedures"
as defined in Rules 13a-15(e) and 15d-15(e) means controls and other procedures of the Company that are designed to ensure that information
required to be disclosed by a company in reports, such as this report, that it files or submits under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in the SEC rules and forms. Disclosure controls and procedures include, without
limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files
or submits under the Exchange Act is accumulated and communicated to the company's management, including its principal executive
and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any
controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives,
and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

 Based on that evaluation, our CEO and CFO concluded
that our disclosure controls and procedures were not effective as of December 31, 2024, due to a material weakness in our internal control
over financial reporting., we currently are training our staff with the appropriate level of knowledge, experience and training in U.S.
GAAP and SEC reporting requirements.

 Management's Report on Internal Controls
Over Financial Reporting

 Our management is responsible for establishing
and maintaining adequate internal control over financial reporting. Our internal control over financial reporting is designed to provide
reasonable assurances regarding the reliability of financial reporting and the preparation of our consolidated financial statements in
accordance with U.S. GAAP. Our accounting policies and internal controls over financial reporting, established and maintained by management,
are under the general oversight of the Board's audit committee.

 Our internal control over financial reporting
includes those policies and procedures that:

 pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;

 provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP, and that receipts and expenditures are being made only in accordance with authorizations of our management and directors; and

 provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on the financial statements.

 Because of its inherent limitations, internal
control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree or compliance
with the policies or procedures may deteriorate.

 Management assessed our internal control over
financial reporting as of December 31, 2024.

 The standard measures adopted by management in
making its evaluation are the measures in the Internal-Control Integrated Framework published by the Committee of Sponsoring Organizations
of the Treadway Commission.

 Based on management's assessment, our CEO
and CFO concluded that our internal control over financial reporting as of December 31, 2024 was ineffective. We have taken, and are taking,
certain actions to remediate the material weakness related to our lack of U.S. GAAP and SEC reporting experience. We engaged a consultant
with U.S. GAAP knowledge and experience to supplement our current internal accounting personnel and assist us in the preparation of our
financial statements to ensure that our financial statements are prepared in accordance with U.S. GAAP. We also engaged an internal control
consulting firm in July 2023 to review, test and improve our internal accounting controls and internal control over financial reporting.
We have adopted and are implementing policies, procedures and practices recommended in the report of the consultant and have arranged
training of internal control for our employees and management on disclosure controls and procedures. We believe the measures described
above will remediate the material weakness. The Company continues to make efforts to implementing its existing and newly adopted procedures
to improve our disclosure controls and internal controls over financing reporting.

 Changes to Internal Control over Financial
Reporting

 Other than discussed above, there has been no
change to our internal control over financial reporting that occurred during the period covered by this annual report on Form 10-K that
has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 ITEM 9B – OTHER INFORMATION

 None

 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS
THAT PREVENT INSPECTIONS.

 ITEM 10 – DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 Directors and Executive Officers

 The following table sets forth as of April 11,
2025, the names, positions and ages of our current executive officers and directors. Our directors serve until the next annual meeting
of shareholders or until their successors are elected and qualified. Our officers are elected by the Board and their terms of office are,
except to the extent governed by an employment contract, at the discretion of the Board.

 Name of Current Director

and/or Executive Officer

 Age

 Position(s)

 Hu Li (1)

 Chief Executive Officer ("CEO"), President and Director

 Ming Yi (2)

 Chief Financial Officer ("CFO")

 Peng Lei (3)

 Chief Operating Officer ("COO")

 Fuyou Li (4)(5)

 Independent Director and Chairman of the Board of Directors

 Mingyong Hu (4)(6)

 Independent Director

 Mingjie Zhao (4)(7)

 Independent Director

 Ying Li (8)

 Vice President and Director

 (1)

 Hu Li was appointed as CEO, President and a member of the Board of Directors of the Company on August 5, 2024.

 (2)

 Ming Yi was appointed as CFO of the Company on November 30, 2020.

 (3)

 Peng Lei was appointed as the COO of the Company on July 28, 2023.

 (4)

 Member of the audit committee and compensation committee.

 (5)

 Fuyou Li was appointed a member of the Board of Directors of the Company on May 8, 2015 and as the Chairman of the Board on June 23, 2021.

 (6)

 Mingyong Hu was appointed a member of the Board of Directors of the Company on October 1, 2024.

 (7)

 Mingjie Zhao was appointed a member of the Board of Directors of the Company on July 15, 2020.

 (8)

 Ms. Ying Li was appointed as a member of the Board on June 23, 2021.

 Hu Li, Chief Executive officer, President and Director of the Board

 Mr. Hu Li has served as the Chief Executive Officer,
President of the Company and a member of the Board since August 5, 2024. Mr. Li has
served as the Corporate Secretary of the Company since June 2019. Mr. Li has served as a director and Chief Executive Officer of FTFT
International Securities and Futures Limited, a wholly owned subsidiary of the Company since January 2024. Mr. Li has served as a director
of the Board of Directors of Shineco, Inc. (Nasdaq: SISI) since September 2021. Mr. Li served as the chief supervisor of Anhui Yihai Mining
Equipment Co., Ltd., a public company in China NEEQ Market (Stock Symbol: 831451) from February 2018 to July 2021. From September 2015
to February 2018, Mr. Li served as the Vice General Manager of Shaanxi Huipu Financial Leasing Co., Ltd. Mr. Li obtained his master's
degree in Business Administration (MBA) from Xi'an Technology University in 2008 and bachelor's degree from Xi'an Fanyi
University in 1996. The Board believes that Mr. Hu's significant experience in investment
and management will be an asset to the Company and the Board.

 Ming Yi, Chief Financial Officer

 On November 30, 2020, the Board of the Directors
appointed Mr. Ming Yi as the Chief Financial Officer ("CFO") of the Company.

 Mr. Yi has
served as an independent director of Hudson Capital Inc. (Nasdaq: HUSN) since March 31, 2020. Mr. Yi was the Chief Financial Officer
of SSLJ.com Limited from July 2018 to July 2019. From June 2011 to August 2018, Mr. Yi was the Chief Financial Officer and a board member
of Wave Sync Corp. (formerly known as China Bio-Energy Corp). From September 2009 to April 2011, he served as a senior manager at Qi He
Certified Public Accountants Co. Ltd. Form July 2007 to August 2010, Mr. Yi was a senior auditor at Ernst & Young. Mr. Yi received
his Bachelor of Science degree in Accounting from School of Business Administrations of Liaoning University in 2004 and his Master of
Science degree in Accounting and Finance from Victory University, Australia in 2006. Mr. Yi is a Certified Public Accountant in Australia.

 Peng Lei, Chief Operating Officer

 On July 28, 2023, the Company appointed Mr. Peng
Lei as the Chief Operating Officer ("COO") of the Company.

 Mr. Peng Lei has served as general manager of
Future Commercial Management Co., Ltd., a wholly owned subsidiary of the Company since July 2022. From July 2019 to July 2022, Mr. Lei
served as the general manager of Xi'an Dingtaiheng Supply Chain Management Co., Ltd. and Ningbo Tielin Supply Chain Management Co.,
Ltd. From March 2014 to July 2019, Mr. Lei served as a director and general manager of Changan Parking Investment Management (Shanghai)
Co., Ltd. From April 2010 to March 2014, Mr. Lei was the manager of Xi'an Zhonglou Sub-branch of Shanghai Pudong Development Bank.
Mr. Lei received his Ph. D. degree and master's degree in finance from the School of Economics and Finance of Xi'an Jiaotong
University in September 2011 and July 2009, respectively. Mr. Lei received his bachelor's degree in international finance from the
School of Management of Xi'an Jiaotong University in July 1999.

 Fuyou Li, Director and Chairman of the Board

 Mr. Fuyou Li has served as a member of the Board
and a member of the audit and compensation committees of the Board since May 8, 2015. Mr. Li was appointed as the Chairman of the Board
on June 23, 2021. Mr. Li graduated from Xi'an Jiaotong University with a doctor's degree in economics. He has taught international
finance as a professor at Xi'an Jiaotong University from 2000 to July 2023. The Board believes his qualifications, professional
background and expertise in international finance are important to the Company and the Board.

 Mingyong Hu, Director

 On October 1, 2024, the Board appointed Mingyong
Hu as a member of the Board of Directors of the Company. Mr. Hu is also the Chairman of Audit committee of the Board and a member of the
Compensation Committee of the Board.

 Mr. Mingyong Hu was the founder and CFO of Beijing
Xiaowu Supply Chain Technology Co., Ltd. from August 2021 to April 2024. From March 2019 to July 2021, Mr. Hu was the executive vice president
of Zhenghua Guotai International Trading Co., Ltd. From October 2017 to March 2019, Mr. Hu was the general manager of Zhongrong Dinghui
(Beijing) Equity Investment Fund Management Co., Ltd. From January 2016 to October 2017, Mr. Hu was the executive vice president of Zhongsheng
Wantong Equity Investment Fund Management (Beijing) Co., Ltd. From June 2007 to December 2015, Mr. Hu was a partner and executive deputy
general manager of Zhonghao Investment Group Co., Ltd.

 Mr. Mingyong Hu received his bachelor's
degree in accounting from Hunan University in July 2001. Mr. Hu is a Certified Public Accountant of China, and he also holds Certification
of Securities Professional and Fund Qualification Certificate in China.

 Mingjie Zhao, Director

 Mr. Mingjie
Zhao was appointed as a member of the Board and Chairman of the Compensation Committee and a member of Audit Committee of the Board on
July 15, 2020. Mr. Zhao has served as a director of New York Hua Yang, Inc. since April 2018. From July 2016 to March 2018, Mr. Zhao served
as Chief Executive Officer of TD Holdings, Inc. (formerly known as China Commercial Credit Inc. and Nasdaq: GLG). Mr. Zhao was the
Chief Operating Officer and a director of New York Hua Yang, Inc. from September 2011 to July 2016. Mr. Zhao obtained his Master of Business
Administration degree from University of Bridgeport in Connecticut in May 2003 and his Bachelor of Science degree from China Eastern Normal
University in Shanghai, China in July 1985. The Board believes that Mr. Zhao's experience and extensive knowledge in management
and public company is essential to the Compan y.

 Ying Li, Director and Vice President

 Ms. Ying Li was appointed as a member of the Board
on June 23, 2021 and she has served as a director of Alpha International Securities (HONG KONG) Limited since September 9, 2020 and as
a director of Alpha International Financial Holdings Limited since February 5, 2020. The Company acquired FTFT International Securities
and Futures Limited in November 2023 and changed its name to FTFT International Securities and Futures Limited. Ms. Li has served as the
vice president of the Company and a director of Future FinTech (Hong Kong) Limited, a wholly owned subsidiary of the Company since July
2016. From October 2011 to December 2019, Ms. Li served as the secretary of the Board of the Company. Ms. Li received her bachelor's
degree in English from Xi'an International Studies University in July 2010. The Board believes that Ms. Li's extensive business
and operational knowledge of the Company qualifies her as a member of the Board.

 All of our directors and officers reside outside of the United States,
except for Mr. Mingjie Zhao. Mr. Peng Lei, Mr. Hu Li, Mr. Ming Yi, Ms. Ying Li and Fuyou Li reside in China.

 Board Diversity Matrix

 Board Diversity Matrix (As of April 11, 2025)

 Total Number of Directors

 Female

 Male

 Non-

Binary

 Did Not
 Disclose Gender

 Part I: Gender Identity

 Directors

 Part II: Demographic Background

 Asian (other than South Asian)

 Section 16(a) Beneficial Ownership Reporting
Compliance

 Section 16(a) of the Exchange Act requires that
directors, certain officers of the Company and ten percent shareholders file reports of ownership and changes in ownership with the Commission
as to the Company's securities beneficially owned by them. Such persons are also required by SEC rules to furnish the Company with
copies of all Section 16(a) forms they file.

 Based solely on its review of copies of such forms
received by the Company, or on written representations from certain reporting persons, the Company believes that, all Section 16(a) filing
requirements applicable to its officers, directors and greater than ten percent shareholders were complied with during the fiscal year
ended December 31, 2024,.

 Code of Ethics

 We have adopted a code of business conduct and
ethics that applies to all of our employees, officers and directors, including those officers responsible for financial reporting. Our
code of business conduct and ethics is available on our website at www.ftft.com and may be found by first clicking on "Investors,"
then "Corporate Governance" and then "Governance Documents." We intend to disclose any amendments to the code,
or any waivers of its requirements, on our website.

 Committees of the Company's Board of Directors

 The Board held 10 regularly scheduled and special
meetings during fiscal year 2024. All of the directors attended (in person or by telephone) all of the Board meetings and any committees
of the Board on which they served during the fiscal year. Directors are expected to use their best efforts to be present at the shareholders
annual meeting. All of our directors attended the December 5, 2024 shareholders annual meeting by tele-conference or in person.

 Audit Committee

 On April 25, 2008, the Board formed an audit committee.
Messrs. Hu, Li and Zhao currently serve on the audit committee, which is chaired by Mr. Lau. Each member of the audit committee is "independent"
as that term is defined in the rules of the SEC and within the meaning of such term as defined under the rules of the NASDAQ Capital Market.
The Board has determined that each audit committee member has sufficient knowledge in financial and auditing matters to serve on the audit
committee. The audit committee held 4 meetings during fiscal year 2024, and all audit committee members attended each of those meetings.
Our Board has determined that Mr. Hu is an "audit committee financial expert," as defined under the applicable SEC rules.
The audit committee has a written charter, which is available on the Company's website at

 Management is responsible for the Company's
internal controls and the financial reporting process. The independent accounting firm is responsible for performing an independent audit
of the Company's consolidated financial statements in accordance with the standards of the Public Company Accounting Oversight Board
(United States) ("PCAOB") and issuing reports thereon. The audit committee's responsibility is to monitor these processes.
The audit committee meets with management, the leader of the internal audit function, and the independent accounting firm to facilitate
communication. In addition, the audit committee appoints the Company's independent accounting firm and pre-approves all audit and
non-audit services to be performed by the independent accounting firm.

 Compensation Committee

 On April 25, 2008, the Board formed a compensation
committee. Messrs. Hu, Li and Zhao currently serve on the compensation committee, which is chaired by Mr. Zhao. Each member of the compensation
committee is "independent" as that term is defined in the SEC rules and within the meaning of such term as defined under the
rules of the NASDAQ Capital Market, a "nonemployee director" for purposes of Section 16 of the Exchange Act. No interlocking
relationship exists between the Board or the compensation committee and the Board or compensation committee of any other company, nor
has any interlocking relationship existed during the last fiscal year. The compensation committee held 3 meetings during fiscal year 2024.
The compensation committee has a written charter, which is available on the Company's website at

 Our Board has delegated to the compensation committee
the responsibility, among other things, to determine any and all compensation payable to our executive officers, including annual salaries,
incentive compensation, long-term incentive compensation and any other compensation, and to administer our equity and incentive compensation
plans applicable to our executive officers. Decisions regarding executive compensation made by the compensation committee are considered
final and are not generally subject to Board review or ratification. Under the terms of its written charter, the compensation committee
has the power and authority to delegate any of its duties and responsibilities to subcommittees as the compensation committee may deem
appropriate in its sole discretion. Historically, the compensation committee has not generally delegated any of its duties and responsibilities
to subcommittees, but rather has taken such actions as a committee, as a whole. Deliberations and decisions by the compensation committee
concerning executive officers are made by the compensation committee, without the presence of the any executive officer of the Company.

 Other Committees

 The Board may on occasion establish other committees,
as it deems necessary or required. We do not currently have a standing nominating committee, or a committee performing similar functions.
The full Board currently serves this function. Our directors believe that it is not necessary to have such committees, at this time, because
the functions of such committees can be adequately performed by the Board. The independent directors of the Board will assess all candidates,
whether submitted by management or shareholders, and make recommendations for election or appointment by the Board. Other than the Rule 14a-19 under
the Exchange Act, there have been no material changes to the procedures by which security holders may recommend nominees to the Board.

 Board Leadership Structure

 Our Board of Directors is currently comprised
of five members, including three independent directors who serve as members of our audit committee and compensation committee. Our Board
leadership structure consists of a Chairman of the Board. Currently, Mr. Fuyou Li, an independent director, serves as Chairman of
the Board. The Board of Directors believes that this leadership structure, with Mr. Fuyou Li serving as the Chairman and Mr. Hu
Li serving as Chief Executive Officer, is appropriate at this time because it enables the Board, as a whole, to engage in oversight of
management, promote communication and collaboration between management and the Board, and oversee governance matters, while allowing our
Chief Executive Officer to focus on his primary responsibility, the operational leadership and strategic direction of the Company. In
addition to chairing the Board, Mr. Li is a member of the Audit and Compensation Committees.

 Board independence and oversight of the senior
management of the Company are enabled by the presence of independent directors who have a wide range of expertise and skills and have
oversight over critical functions of the Company, such as the review of business development, evaluation and compensation of executive
management, the nomination of directors. Our independent directors collectively provide additional strength and balance to our Board leadership
structure.

 Compensation Committee Interlocks and Insider Participation

 None of the Company's executive officers
has served as a member of a compensation committee, or other committee serving an equivalent function, of any other entity whose executive
officers serve as a director of the Company or member of the Company's compensation committee.

 Family Relationships

 There are no family relationships between any
current executive officer or director of the Company.

 ITEM 11 – EXECUTIVE COMPENSATION

 Compensation Discussion and Analysis

 Compensation Objectives

 We operate in a highly competitive and rapidly
changing industry. The key objectives of our executive compensation programs are to:

 attract, motivate and retain executives who drive our success and industry leadership; and provide executive officers, with a salary and/or stock award on the market value of that role, and

 the individual's demonstrated ability to perform that role.

 Stock Incentive Plans

 The Board of Directors of the Company approved
and adopted the Future FinTech Group Inc. 2024 Omnibus Equity Plan (the "2020 Equity Plan") on October 12, 2024, which was
approved by the shareholders at the shareholders annual meeting on December 5, 2024., to provide equity awards to employees, directors
and consultants of the Company (the "2024 Plan"). There are 5,000,000 shares of commons stock available for awards under 2024
Plan. On March 10, 2025, the Compensation Committee of the Board granted stock awards of 5,000,000 shares of common stock of the Company,
pursuant to the Company's 2024 Omnibus Equity Plan, to sixteen officers and employees of the Company and its subsidiaries, including:
300,000 shares to Hu Li, Chief Executive Officer of the Company (All the share numbers stated here are before the 1 for 10 reverse stock
split effected in April 1, 2025)

 The Board of Directors of the Company approved
and adopted the Future FinTech Group Inc. 2023 Omnibus Equity Plan (the "2023 Equity Plan") on October 12, 2023, which was
approved by the shareholders at the shareholders annual meeting on December 5, 2023. The 2023 Equity Plan has a total of 5,000,000 shares
of Common Stock. On December 23, 2023 (the "Grant Date"), the Compensation Committee of the Board of Directors (the "Board")
of the Company granted stock awards of 2,890,000 shares of common stock of the Company, pursuant to the Company's 2023 Equity Plan,
to sixteen officers and employees of the Company and its subsidiaries (the "Grantees"), including: 200,000 shares to Shanchun
Huang, Chief Executive Officer and President of the Company, 40,000 shares to Peng Lei, Chief Operating Officer of the Company, and 30,000
shares to Hoo Lee, Corporate Secretary of the Company (collectively, the "Grants"). The Grants vested immediately on
the Grant Date and each of the Grantees also entered into an Unrestricted Stock Award Agreement with the Company on December 23, 2023.
On October 4, 2024, the Company granted the remaining 2,110,000 share under 2023 Omnibus Equity Plan to 4 employees of the Company and
its subsidiaries. (All the share numbers stated here are before the 1 for 10 reverse stock split effected in April 1, 2025)

 We believe that the future success of the Company
depends, in large part, upon the ability of the Company to maintain a competitive position in attracting, retaining and motivating key
personnel.

 What Our Executive Compensation Program is
Designed to Reward

 Our executive compensation program is designed
to reward each individually named executive officer's contribution to the advancement of our overall performance and execution of
our goals, ideas and objectives. It is designed to reward and encourage exceptional performance at the individual level in the areas of
organization, creativity and responsibility while supporting our core values and ambitions. This in turn aligns the interest of our executive
officers with the interests of our shareholders, and thus with our interests.

 Determining Executive Compensation

 The Board's compensation committee reviews
and approves the compensation for executive officers annually. The compensation committee considers the overall performance of the past
year and the financial and operating plans for the upcoming year in determining the compensation for the executive officers.

 A named executive officer's base salary
is determined by an assessment of his/her sustained performance against individual job responsibilities, including, where appropriate,
the impact of his/her performance on our business results, current salary in relation to the salary range designated for the job, experience
and mastery, and potential for advancement. The compensation committee also annually reviews market compensation levels with comparable
jobs in the industry to determine whether the total compensation for our officers remains in the targeted median pay range.

 Role of Executive Officers in Determining Executive Compensation

 The compensation committee determines the compensation
for the CEO, which is based on various factors, such as level of responsibility and contributions to our performance. The CEO recommends
the compensation for our executive officers (other than the compensation of the CEO) to the compensation committee. The compensation committee
reviews the recommendations made by the CEO and determines the compensation of the CFO and the other executive officers.

 Employment Agreements

 We entered into an Employment Agreement with
our CEO, Mr. Hu Li, on August 5, 2024 with a term of three year subject to renewal. Mr. Li receives compensation in the amount of
$7,000 per month and will be eligible for an annual cash and equity bonus in the Board's sole discretion.

 On November 16, 2020,
the Company entered into an employment agreement with Mr. Yang Liu as COO of the Company and the term of the agreement is for one (1)
year, which has been renewed until November 16, 2023. The agreement provides that Mr. Liu receives compensation in the amount of $1 per
year. On July 27, 2023, Mr. Yang Liu resigned from his position as the COO of the Company, effective on July 28, 2023. On July 28,
2023, the Board of Directors of the Company appointed Mr. Peng Lei as the COO of the Company. In connection with his appointment as COO,
the Company entered into an employment agreement (the "Agreement") with Mr. Peng Lei on August 1, 2023. The Agreement provides
that Mr. Lei will receive compensation in the amount of $50,000 per year before tax and the term of the Agreement is for one (1) year
which was renewed until August 1, 2025.

 On December 1, 2020, the Company entered into
an employment agreement with Mr. Ming Yi as CFO of the Company and the term of the agreement is for one (1) year, which has been renewed
until December 1, 2025. The agreement provides that Mr. Yi receives compensation in the amount of $4,000 per month before tax.

 Summary Compensation of Named Executive Officers

 Our executive officers do not receive any compensation
from the Company for also serving as directors of the Company. The following table sets forth information concerning cash and non-cash
compensation paid by the Company to our named executive officers for the years ended December 31, 2024 and 2023.

 Name and Principal Position

 Year

Ended

 Salary

($)

 Bonus

($)

 Stock

Awards

($)

 Option

Awards

 Non-Equity

Incentive Plan

($)

 Non-Qualified

Deferred

Earnings

($)

 All Other

($)

 Total

($)

 Yongke Xue (1)

 12/31/2023

 $

 4,683

 -

 -

 -

 -

 -

 $

 4,683

 Shanchun Huang (2)

 12/31/2023

 $

 $

 -

 $

 248,000

 -

 -

 -

 -

 $

 248,001

 12/31/2024

 $

 90,740

 -

 -

 -

 -

 -

 $

 90,740

 Ming Yi (3)

 12/31/2023

 $

 44,276

 $

 -

 $

 44,276

 12/31/2024

 $

 47,180

 -

 -

 -

 -

 -

 $

 47,180

 Hu Li (4)

 12/31/2024

 $

 49,389

 $

 $

 49,389

 Peng Lei (5)

 12/31/2023

 $

 51,213

 $

 49,600

 $

 100,813

 12/31/2024

 $

 50,753

 $

 50,753

 (1)

 On March 4, 2020, Mr. Yongke Xue resigned as the CEO of the Company
and on June 23, 2021, Mr. Xue was appointed as the president of the Company.. Mr. Yongke Xue passed away on November 24, 2023.

 (2)

 On March 4, 2020, Mr. Shanchun Huang was appointed as the CEO of the
Company. The compensation committee of the Board granted him a stock award for 200,000 shares of common stock of the Company under 2023
Equity Plan on December 23, 2023. Mr. Shanchun Huang was resigned as CEO and President of the Company on August 5, 2024.

 (3)

 On November 30, 2020, the Board of the Directors appointed Mr. Ming
Yi as the CFO of the Company.

 (4)

 On August 5, 2024, Mr. Hu Li was appointed ad
CEO and President of the Company.

 (5)

 Mr. Peng Lei served as general manager of Future Commercial Management
Co., Ltd., a wholly owned subsidiary of the Company since July 2022 and was appointed as COO of the Company on July 28, 2023. On December
23, 2023, the compensation committee of the Board granted him a stock award of 40,000 shares of common stock of the Company under 2023
Equity Plan.

 *

 All share granted before January 31, 2023 have been retroactively restated
to reflect Reverse Stock Split effected on February 1, 2023 but not restated to reflect the 1 for 10 reverse split effected on April 1,
2025.

 Outstanding Equity Awards at December 31, 2024

 No outstanding equity awards held by named executive
officers as of December 31, 2024.

 Compensation of Directors

 The following table sets forth information concerning
cash and non-cash compensation paid by us to our directors during 2024.

 Name

 Fees Paid

in Cash

($)

 Stock

Awards

 Option

Awards

 Non-Equity

Incentive

Plan

($)

 Non-Qualified

Deferred

Earnings

($)

 All Other

($)

 Total

($)

 Shanchun Huang(1)

 $

 —

 —

 —

 —

 —

 —

 $

 —

 Ying Li

 $

 —

 —

 —

 —

 —

 —

 $

 —

 Fuyou Li (2)

 $

 18,000

 —

 —

 —

 —

 —

 $

 18,000

 Johnson Lau (3)

 $

 20,833

 —

 —

 —

 —

 —

 $

 20,833

 Mingyong Hu (4)

 $

 3,000

 —

 —

 —

 —

 —

 $

 3,000

 Hu Li (5)

 $

 —

 —

 —

 —

 —

 —

 $

 ---

 Mingjie Zhao (6)

 $

 25,000

 —

 —

 —

 —

 $

 25,000

 (1)
 Mr. Shanchuan Huang resigned as Chief Executive Officer, President
and Director of the Company on August 5, 2024.

 (2)

 On May 8, 2015, the Board appointed Mr. Fuyou Li as a member of the Board of Directors and a member of both the audit committee and compensation committee. Before June 30, 2021, Mr. Li was entitled for $8,850 per annum as compensation for his service as director of the Company and a member of the audit committee and compensation committee. On June 23, 2021, the Board appointed Mr. Fuyou Li as the Chairman of the Board and his annual compensation increased to $18,000 after June 30, 2021.

 (3)

 On December 23, 2014, the Board appointed Johnson Lau as a member of the Board of Directors of the Company and he served as the Chairman of Audit Committee and a member of Compensation Committee of the Board. Mr. Lau is entitled for $25,000 per annum as compensation for his services as a director of the Company and chair of the audit committee and a member of compensation committee. Mr. Lau resigned as the member of the Board, Chairman of the Audit Committee and a member of Compensation Committee, effective on September 30, 2024.

 (4)

 Mr. Mingyong Hu was appointed as a member of the Board, Chairman of the Audit Committee and a member of Compensation Committee of the Board, effective immediately, to fill the vacancy following the resignation of Mr. Lau.

 (5)

 Mr. Hu Li was appointed as Chief Executive Officer, President and Director of the Company on August 5, 2024, following the resignation of Mr. Shanchun Huang.

 (6)

 On July 15, 2020, the Board appointed Mr. Mingjie Zhao as a member of the Board and Chairman of the Compensation Committee and a member of Audit Committee of the Board. Mr. Zhao is entitled for $25,000 per annum as compensation for his current services as a director of the Company and chair of the compensation committee and a member of audit committee.

 ITEM 12 – SECURITY OWNERSHIP OF CERTAIN
BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 Security Ownership of Certain Beneficial Owners and Management

 The following table provides information concerning
beneficial ownership of our capital stock as of April 11, 2025, by:

 each shareholder or group of affiliated shareholders who owns more than 5% of our outstanding capital stock;

 each of our named executive officers;

 each of our directors; and all of our directors and

 executive officers as a group.

 The following table lists the number of shares and percentage of shares
beneficially owned based on 3,050,770 shares of our Common Stock outstanding as of April 11, 2025. The Company effected a 1 for 10 reverse
split on April 1, 2025.

 Beneficial ownership is determined in accordance with the SEC rules,
and generally includes voting power and/or investment power with respect to the securities held. Shares of Common Stock subject to options
and warrants currently exercisable or exercisable within 60 days of April 11, 2025 or issuable upon conversion of convertible securities
which are currently convertible or convertible within 60 days of April 11, 2025 are deemed outstanding and beneficially owned by the person
holding those options, warrants or convertible securities for purposes of computing the number of shares and percentage of shares beneficially
owned by that person, but are not deemed outstanding for purposes of computing the percentage beneficially owned by any other person.
Except as indicated in the footnotes to this table, and subject to applicable community property laws, the persons or entities named have
sole voting and investment power with respect to all shares of our Common Stock shown as beneficially owned by them.

 Unless otherwise indicated in the footnotes, the
principal address of each of the shareholders, named executive officers, and directors below is c/o Future FinTech Group, Inc., Americas
Tower, 1177 Avenue of The Americas, Suite 5100, New York, NY 10036.

 Shares Beneficially Owned

 Name of Beneficial Owner

 Number

 Percent

 Directors and Named Executive Officers

 Hu Li

 30,000

 *

 %

 Ming Yi

 2,400

 *

 %

 Ying Li

 -

 -

 Mingjie Zhao

 -

 -

 Peng Lei

 14,940

 *

 %

 Fuyou Li

 -

 -

 Mingyong Hu

 -

 -

 All current directors and name executive officers as a group (8 persons)

 47,340

 1.5

 %

 5% or Greater Shareholders

 Zeyao Xue (1)

 385,287

 12.6

 %

 All 5% or Greater Shareholders

 385,287

 12.6

 %

 *

 Less than 1%

 (1)

 Including 352,277 shares directly owned by Mr. Zeyao Xue and 33,011
shares indirectly and beneficially owned by Mr. Zeyao Xue, which consists of (i) 29,342 shares that are directly owned by Golden
Dawn International Limited ("Golden Dawn"), a British Virgin Islands company and (ii) 3,668 shares that are directly owned
by China Tianren Organic Food Holding ("China Tianren"). Mr. Zeyao Xue holds all of the issued and outstanding capital stock
of Fancylight Limited, which is an indirect 100% owner of Golden Dawn and China Tianren. As such, Mr. Zeyao Xue holds the beneficial ownership
of shares owned by Golden Dawn and China Tianren. The address of Zeyao Xue is No.3, Xijuyuan Xiang, Lianhu District, Xi'an City,
Shaanxi Province, China.

 ITEM 13 – CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS, AND DIRECTOR INDEPENDENCE

 For details of related party transactions, see
Note 16 "Related Party Transaction" to our consolidated financial statements.

 Director Independence

 We currently have five directors. Three of our
current directors, Messrs. Mingyong Hu, Fuyou Li and Mingjie Zhao, have been determined by our Board to be "independent directors"
as defined under the rules of the NASDAQ Capital Market, constituting a majority of independent directors of the Board as required by
the rules of the NASDAQ Capital Market.

 ITEM 14 – PRINCIPAL ACCOUNTING FEES AND
SERVICES

 The following table shows the fees that we paid
or accrued for audit and other services for fiscal years 2024 and 2023. All of the services described in the following fee table were
approved in conformity with the audit committee's pre-approval process.

 Audit Fees

 2024

 2023

 Audit Fees

 $
 354,440

 $
 312,000

 Tax Fees

 —

 All Other Fees

 63,000

 78,350

 Total

 $
 417,440

 $
 390,350

 Audit Fees

 The amounts set forth opposite "Audit Fees"
above reflect the aggregate fees billed or billable by auditors Fortune
CPA Inc. ("Fortune CPA") for the audit of our annual consolidated financial statements, review of quarterly financial information
and audit services that are normally provided by the principal accountant in connection with regulatory filings or engagements.

 Fortune CPA provided professional services for
the audit of our fiscal years 2024 and 2023 financial statements and $354,440 and $312,000 were paid to Fortune CPA for audit of our fiscal
years 2024 and 2023 financial statements, respectively.

 All Other Fees

 Our former auditor Onestop Assurance PAC ("Onestop
Assurance") provided professional services for the audit of our fiscal year 2022 financial statements and $78,350 was paid in 2023
for review of our filings and Form S-8 and $63,000 was paid for review of our 2023 annual report in 2024.

 Tax Fees

 The Board audit committee's policy is to
pre-approve all audit services and all non-audit services that our independent accountants are permitted to perform for us under applicable
federal securities regulations. The audit committee's policy utilizes an annual review and general pre-approval of certain categories
of specified services that may be provided by the independent accountant, up to pre-determined fee levels. Any proposed services not qualifying
as a pre-approved specified service, and pre-approved services exceeding the pre-determined fee levels, require further specific pre-approval
by the audit committee. The audit committee has delegated to the Chairman of the audit committee the authority to pre-approve audit and
non-audit services proposed to be performed by the independent accountants. Our audit committee was established in April 2008. All the
services provided by our auditors in fiscal years 2024 were pre-approved by the audit committee.

 Changes in Registrant's Certified Accountant

 On August 2, 2023, the
Audit Committee of the Board of Directors of Future FinTech Group, Inc. (the "Company") dismissed Onestop Assurance PAC ("Onestop
Assurance") as the Company's independent registered public accounting firm, effective immediately.

 Onestop Assurance'
audit reports on the Company's consolidated financial statements as of and for the fiscal years ended December 31, 2022 and December
31, 2021 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 the audit reports on the consolidated financial statements of the Company for the fiscal years ended
December 31, 2022 and December 31, 2021 contained an uncertainty about the Company's ability to continue as a going concern.

 During the Company's
two fiscal years of 2022 and 2021 and in the subsequent interim period through August 1, 2023, there were (i) no disagreements between
the Company and Onestop Assurance on any matter of accounting principles or practices, financial statement disclosure or auditing scope
or procedure, which disagreements, if not resolved to the satisfaction of Onestop Assurance, would have caused Onestop Assurance to make
reference to the subject matter of the disagreement in their reports on the financial statements for such years, and (ii) no "reportable
events" as that term is defined in Item 304(a)(1)(v) of Regulation S-K.

 On August 2, 2023, the
Audit Committee of the Board of Directors of the Company approved the engagement of Fortune CPA, Inc. ("Fortune CPA") as the
Company's independent registered public accounting firm, effective immediately. The Audit Committee also approved Fortune CPA to
act as the Company's independent registered public accounting firm for the fiscal year ended December 31, 2023.

 During the Company's
two fiscal years of 2022 and 2021 and through August 1, 2023, neither the Company nor anyone on its behalf consulted Fortune CPA regarding
(i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that
might be rendered on the consolidated financial statements of the Company; or (ii) any matter that was either the subject of a disagreement
or a reportable event as described above; and there was neither a written report nor was oral advice provided to the Company by Fortune
CPA that was an important factor considered by the Company in reaching a decision as to an accounting, auditing or financial reporting
issue.

 The Company reported its change in auditors in
Current Report on Form 8-K,
filed on Augst 8, 2023.

 ITEM 15 – EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

 (a) (1) FINANCIAL STATEMENTS:

 The following documents are filed as part of or are included in this
Annual Report:

 1.

 Financial statements listed in the Index to Financial Statements, filed as part of this Annual Report beginning on page F-1; and

 2.

 Exhibits

 (b) EXHIBITS:

 Exhibit Index

 Exhibit

Number

 Description

 2.1

 Share Exchange Agreement, dated as of February 22, 2008 by and among Pacific Industry Holding Group Co., Ltd., "Pacific," Terrence Leong, SkyPeople Fruit Juice, Inc., the "Registrant," and the shareholders of Pacific. Incorporated by reference to Exhibit 2.1 to our Current Report on Form 8-K filed with the Commission on February 28, 2008.

 3.1

 Second Amended and Restated Articles of Incorporation, dated June 6, 2017. Incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed with the Commission on June 9, 2017.

 3.2

 Certificate of Designations, Preferences and Rights of the Registrant's Series A Convertible Preferred Stock. Incorporated by reference to Exhibit 3.1 to the Form 8-K filed with the Commission on February 28, 2008.

 3.3

 Certificate of Designations, Preferences, Rights and Limitations of the Registrant's Series B Convertible Preferred Stock. Incorporated by reference to Exhibit 3.2 to the Form 8-K filed with the Commission on February 28, 2008.

 3.4

 Amended and Restated Bylaws, dated June 6, 2017. Incorporated by reference to Exhibit 3.2 to our Current Report on Form 8-K filed with the Commission on June 9, 2017.

 3.5

 Articles of Amendment to the Articles of Incorporation of the Registrant filed with the Department of State of Florida on March 10, 2016. Incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed with the Commission on March 15, 2016.

 3.6

 Articles of Amendment to the Articles of Incorporation of the Registrant filed with the Department of State of Florida on March 14, 2018. Incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed with the Commission on March 16, 2018.

 3.7

 Articles of Amendment to the Articles of Incorporation of the Registrant filed with the Department of State of Florida on March 18, 2021. Incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed with the Commission on March 23, 2021.

 3.8

 Articles of Amendment to the Second Amended and Restated Articles of Incorporation of the Registrant filed with Department of State of Florida on January 26, 2023. Incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed with the Commission on January 31, 2023.

 3.9

 Articles of Amendment to the Second Amended and Restated Articles of Incorporation of the Registrant filed with Department of State of Florida on April 1, 2025. Incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed with the Commission on April 1, 2025.

 4.1

 Form of Warrant. Incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K filed with the Commission on April 13, 2017.

 4.2

 Form of Placement Agent Warrant. Incorporated by reference to Exhibit 4.2 to our Current Report on Form 8-K filed with the Commission on December 28, 2020.

 4.3

 Description of Securities of the Registrant registered under Section 12 of the Securities Exchange Act of 1934, as amended.*

 Exhibit

Number

 Description

 10.1

 Indemnification Agreement. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the Commission on July 14, 2011.

 10.2

 Exclusive Operation and Use Rights Authorization Letter by Chain Cloud Mall Network and Technology (Tianjin) Co., Ltd., dated July 31, 2019. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the Commission on August 6, 2019.

 10.3

 Exclusive Technology Consulting and Service Agreement by and between Chain Cloud Mall Network and Technology (Tianjin) Co., Ltd. and Chain Cloud Mall E-commerce (Tianjin) Co., Ltd, dated July 31, 2019. Incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed with the Commission on August 6, 2019.

 10.4

 Exclusive Purchase Option Agreement by and among Chain Cloud Mall Network and Technology (Tianjin) Co., Ltd., Chain Cloud Mall E-commerce (Tianjin) Co., Ltd. Zeyao Xue and Kai Xu, dated July 31, 2019. Incorporated by reference to Exhibit 10.3 to our Current Report on Form 8-K filed with the Commission on August 6, 2019.

 10.5

 Equity Pledge Agreement by and among by and among Chain Cloud Mall Network and Technology (Tianjin) Co., Ltd., Chain Cloud Mall E-commerce (Tianjin) Co., Ltd. and Zeyao Xue, dated July 31, 2019. Incorporated by reference to Exhibit 10.4 to our Current Report on Form 8-K filed with the Commission on August 6, 2019.

 10.6

 Equity Pledge Agreement by and among by and among Chain Cloud Mall Network and Technology (Tianjin) Co., Ltd., Chain Cloud Mall E-commerce (Tianjin) Co., Ltd. and Kai Xu, dated July 31, 2019. Incorporated by reference to Exhibit 10.5 to our Current Report on Form 8-K filed with the Commission on August 6, 2019.

 10.7

 Power of Attorney issued by Zeyao Xue, dated July 31, 2019. Incorporated by reference to Exhibit 10.6 to our Current Report on Form 8-K filed with the Commission on August 6, 2019.

 10.8

 Power of Attorney issued by Kai Xu, dated July 31, 2019. Incorporated by reference to Exhibit 10.7 to our Current Report on Form 8-K filed with the Commission on August 6, 2019.

 10.9

 Consulting Service Agreement by and between Future FinTech Group Inc. and Dragon Investment Holding Limited (Malta) dated January 25, 2020. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the Commission on January 29, 2020

 10.10

 Director Agreement by and between Future FinTech Group Inc. and Mingjie Zhao dated July 15, 2020. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the Commission on July 17, 2020.

 Exhibit

Number

 Description

 10.11

 Share Purchase Agreement by and between FTFT UK Limited and Rahim Shah dated September 1, 2021. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the Commission on September 7, 2021.

 10.12

 Collateral Deed by and between FTFT UK Limited and Rahim Shah dated September 1, 2021. Incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed with the Commission on September 7, 2021.

 10.13

 FTFT North American Ohio Cryptocurrency Mining Farm Cooperation Agreement by and between Future FinTech Group Inc. and APC Service Ltd. dated December 13, 2021. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the Commission on December 17, 2021.

 10.14

 Form of Unrestricted Stock Award Agreement by and between Future FinTech Group Inc. and Grantees dated on July 12, 2022. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the Commission on July 15, 2022.

 10.15

 Share Transfer Agreement by and between Future FinTech (Hong Kong) Limited and Alpha Financial Limited dated February 27, 2023. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the Commission on March 1, 2023.

 10.16

 Employment Agreement by and between the Company and Peng Lei dated August 1, 2023. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the Commission on August 2, 2023.

 10.17

 Form of Unrestricted Stock Award Agreement by and between Future FinTech Group Inc. and Grantees dated on December 23, 2023. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the Commission on December 26, 2023.

 10.18

 Securities Purchase Agreement by and between Future FinTech Group, Inc. and Streeterville Capital, LLC, dated December 27, 2023. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the Commission on December 27, 2023.

 10.19

 Convertible Promissory Note, issued by Future FinTech Group, Inc. to Streeterville Capital, LLC, dated December 27, 2023. Incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed with the Commission on December 27, 2023.

 10.20

 Form of Securities Purchase Agreement dated January 5, 2024. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the Commission on January 8, 2024.

 10.21

 Amendment to Convertible Promissory Note dated February 11, 2024. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the Commission on February 14, 2024.

 10.22

 Employment Agreement by and between Future FinTech Group, Inc. and Mr. Hu Li, dated August 5, 2024. Incorporated
by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the Commission on August 9, 2024.

 10.23

 Director Agreement by and Between the
Company and Mingyong Hu dated October 1, 2024. Incorporated
by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the Commission on October 4, 2024.

 10.24

 Stock Purchase Agreement by and among Future FinTech Group Inc., FTFT SuperComputing Inc. and DDMM Capital LLC
dated on December 6, 2024. Incorporated by reference to Exhibit
10.1 to our Current Report on Form 8-K filed with the Commission on December 11, 2024.

 14.1

 Code of Business Conduct and Ethics Incorporated by reference to Exhibit 14.1 to our Annual Report on Form 10-K filed with the Commission on April 16, 2024.

 16.1

 Letter from Onestop Assurance PAC to SEC, dated August 8, 2023. Incorporated by reference to Exhibit 16.1 to our Current Report on Form 8-K filed with the Commission on August 10, 2023.

 19.1

 Insider Trading Policy Incorporated by reference to Exhibit 19.1 to our Annual Report on Form 10-K filed with the Commission on April 16, 2024.

 21.1

 Description of Subsidiaries of the Registrant*

 23.1

 Consent of Fortune CPA Inc.*

 31.1

 Rule 13a-14(a) Certification of Principal Executive Officer of Registrant*

 31.2

 Rule 13a-14(a) Certification of Principal Financial Officer of Registrant*

 32.1

 Section 1350 Certification of Principal Executive Officer of Registrant.

 32.2

 Section 1350 Certification of Principal Financial Officer of Registrant.

 97.1

 Clawback Policy Incorporated by reference to Exhibit 97.1 to our Annual Report on Form 10-K filed with the Commission on April 16, 2024.

 101.INS

 101.SCH

 101.CAL

 101.DEF

 101.LAB

 101.PRE

 *

 Filed herewith

 Furnished herewith

 (c)

 Other Financial Statement Schedules - None.

 SIGNATURES

 Pursuant to the requirements of Section 13 or
15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

 Future FinTech Group Inc.

 By:

 /s/ Hu Li

 Hu Li

 Chief Executive Officer, President and Director

 (principal executive officer)

 POWER OF ATTORNEY

 KNOW ALL PERSONS BY THESE PRESENTS, that each
person whose signature appears below constitutes and appoints Hu Li and Ming Yi, and each of them, their attorneys-in-fact and agents,
each with the power of substitution, for them in any and all capacities, to sign any and all amendments to this Report on Form 10-K, and
to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, hereby
ratifying and confirming all that said attorneys-in-fact, or substitutes, may do or cause to be done by virtue hereof.

 Pursuant to the requirement of the Securities
Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacity and on
the dates indicated.

 Signature

 Name and Title

 Date

 /s/ Hu Li

 Hu Li

 Chief Executive Officer, President and Director

(principal executive officer and Director)

 /s/ Ming Yi

 Ming Yi

 Chief Financial Officer

(Principal Financial and Accounting Officer)

 /s/ Fuyou Li

 Fuyou Li

 Chairman of the Board of Directors and Director

 /s/ Mingjie Zhao

 Mingjie Zhao, Director

 /s/ Mingyong Hu

 Mingyong Hu, Director

 /s/ Ying Li

 Ying Li, Director

 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

 Audited Consolidated Financial Statements of
Future FinTech Group Inc.

 Report of Independent Registered Public Accounting Firm (PCAOB ID: 6901)

 Consolidated Balance Sheets

 Consolidated Statements of Operations

 Consolidated Statements of Comprehensive Income (Loss)

 Consolidated Statements of Changes in Equity

 Consolidated Statements of Cash Flows

 Notes to Consolidated Financial Statements

 F- 1

 REPORT OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 To the Board of Directors and

 Stockholders of Future FinTech Group Inc.

 Opinion on the Financial Statements

 We have audited the accompanying consolidated
balance sheets of Future FinTech Group Inc. (the "Company") and its subsidiaries as of December 31, 2024 and 2023, and the
related consolidated statements of operation, changes in stockholders' equity, and cash flows for the years then ended, and the
related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly,
in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and
its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

 The Company's Ability to Continue
as a Going Concern

 The accompanying consolidated financial statements
have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the
Company has suffered losses from operations. Therefore, the Company has stated substantial doubt about its ability to continue as a going
concern. Management's plans in regard to these matters are also described in Note 2. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.

 Basis for Opinion

 These financial statements are the responsibility
of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We are
a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required
to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations
of the Securities and Exchange Commission and the PCAOB.

 We conducted our audits in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged
to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding
of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the entity's
internal control over financial reporting. Accordingly, we express no such opinion.

 F- 2

 Our audits included performing procedures to assess
the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 Critical Audit Matters

 The critical audit matters communicated below
are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to
the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our
especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion
on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions
on the critical audit matters or on the accounts or disclosures to which they relate.

 Going Concern

 As described further in Note 2 to the financial
statements, the Company financial statements are prepared assuming that the Company will continue as a going concern.

 We determined the Company's ability to continue
as a going concern is a critical audit matter due to the estimation and uncertainty regarding the Company's future cash flows and
the risk of bias in management's judgments and assumptions in estimating these cash flows.

 Our audit procedures related to the Company's
assertion on its ability to continue as a going concern included the following, among others:

 We reviewed the Company's working capital
and liquidity ratios, operating expenses, and uses and sources of cash used in management's assessment of whether the Company has
sufficient liquidity to fund operations for at least one year from the financial statement issuance date. This testing included the inquiries
with management, analyzing the subsequent company financial position, and consideration the positive and negative evidence impacting management's
arrangements in place as of the report date.

 /s/ Fortune CPA, Inc

 We have served as the Company's auditor since 2023.

 Orange, CA

 PCAOB # 6901

 F- 3

 CONSOLIDATED BALANCE SHEETS

 2024

 2023*

 ASSETS

 CURRENT ASSETS

 Cash and cash equivalents

 $
 4,842,741

 $
 17,412,865

 Short - term investments

 1,391

 959,028

 Accounts receivable, net

 2,088,962

 4,409,812

 Advances to suppliers and other current assets

 4,974,277

 3,437,925

 Loan receivables

 7,094,764

 14,895,086

 Other receivables, net

 1,694,752

 7,589,038

 Amount due from related parties

 20,000

 12,151

 Assets related to discontinued operations

 -

 5,774,564

 TOTAL CURRENT ASSETS

 $
 20,716,887

 $
 54,490,469

 Property, plant and equipment, net

 $
 2,599,194

 $
 2,812,151

 Right of use assets - operation lease

 523,792

 448,035

 Intangible assets

 532,822

 588,982

 Debt investment

 1,530,243

 -

 Assets related to discontinued operation

 -

 2,601,113

 TOTAL NON-CURRENT ASSETS

 $
 5,186,051

 $
 6,450,281

 TOTAL ASSETS

 $
 25,902,938

 $
 60,940,750

 LIABILITIES

 CURRENT LIABILITIES

 Accounts payable

 $
 2,219,301

 $
 3,301,715

 Accrued expenses and other payables

 9,938,495

 11,115,595

 Advances from customers

 30,559

 303,711

 Convertible notes payables

 553,086

 Lease liability - operation lease

 334,017

 353,268

 Amounts due to related parties

 37,907

 103,530

 Liability related to discontinued operation

 -

 1,449,820

 TOTAL CURRENT LIABILITIES

 $
 13,113,365

 $
 17,728,362

 NON-CURRENT LIABILITIES

 Lease liability - operation lease

 192,754

 106,525

 Liability related to discontinued operation

 $
 -

 $
 690,819

 TOTAL NON-CURRENT LIABILITIES

 192,754

 797,344

 TOTAL LIABILITIES

 $
 13,306,119

 $
 18,525,706

 Commitments and contingencies (Note 23)

 STOCKHOLDERS' EQUITY

 Future FinTech Group, Inc, Stockholders' equity

 Common stock, $ 0.001 par value; 60,000,000 shares authorized; 24,470,844 shares and 17,834,874 shares issued and outstanding as of December 31, 2024 and December 31, 2023 respectively*

 $
 24,470

 $
 17,835

 Additional paid-in capital

 237,474,153

 233,890,997

 Statutory reserve

 Accumulated deficit

 ( 218,885,534
)

 ( 185,929,662
)

 Accumulated other comprehensive loss

 ( 4,248,561
)

 ( 4,094,276
)

 Total Future FinTech Group, Inc. stockholders' equity

 14,462,885

 43,983,251

 Non-controlling interests

 ( 1,866,066
)

 ( 1,568,207
)

 Total stockholders' equity

 12,596,819

 42,415,044

 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 $
 25,902,938

 $
 60,940,750

 *
 all shares and per share data have been retroactively restated to reflect reverse stock split effected on February 1, 2023.

 The accompanying notes are an integral part of
these consolidated financial statements.

 F- 4

 CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS)

 For the Years Ended,

 2024

 2023*

 Revenue

 $
 2,158,125

 $
 21,697,205

 Cost

 886,108

 20,575,600

 Gross profit

 1,272,017

 1,121,605

 Operating Expenses

 General and administrative expenses

 6,212,895

 7,243,721

 Research and development expenses

 312,865

 340,408

 Stock-based compensation

 670,980

 3,468,000

 Selling expenses

 635,918

 288,314

 Provision (Recovery) of doubtful debts

 27,350,439

 ( 787,868
)

 Impairment loss

 -

 14,160,931

 Total operating expenses

 35,183,097

 24,713,506

 Loss from operations

 ( 33,911,080
)

 ( 23,591,901
)

 Other (expenses) income

 Interest income

 1,105,674

 1,314,230

 Interest expenses

 ( 108,454
)

 ( 892
)

 Other (expenses) income, net

 ( 1,319,982
)

 ( 10,541,007
)

 Total other expenses, net

 ( 322,762
)

 ( 9,227,669
)

 Loss from Continuing Operations before Income Tax

)

 ( 32,819,570
)

 Income tax provision

 -

 -

 Deferred income tax

 -

 ( 7,833
)

 Loss from Continuing Operations

)

 ( 32,827,403
)

 Discontinued Operations (Note 21)

 Loss from discontinued operations

 -

 ( 1,574,978
)

 Gain on disposal of discontinued operations

 1,054,155

 386,482

 Net Loss

 $
 ( 33,179,687
)

 $
 ( 34,015,899
)

 Less: Net Loss attributable to non-controlling interests of discontinued operations

 ( 190,840
)

 ( 108,046
)

 Less: Net Loss attributable to non-controlling interests of continued operations

 ( 32,975
)

 ( 254,625
)

 Net loss attributable to Future Fintech Group Inc.

 $
 ( 32,955,872
)

 $
 ( 33,653,228
)

 Other comprehensive income (loss)

 Loss from continued operations

 $
)

 $
 ( 32,827,403
)

 Foreign currency translation – continued operations

 ( 154,285
)

 ( 494,786
)

 Comprehensive loss - continued operation

 ( 34,388,127
)

 ( 33,322,189
)

 Gain (Loss) from discontinued operations

 $
 1,054,155

 $
 ( 1,188,496
)

 Foreign currency translation - discontinued operation

 114,723

 23,515

 Comprehensive income (loss) - discontinued operation

 1,168,878

 ( 1,164,981
)

 Comprehensive Loss

 $
 ( 33,219,249
)

 $
 ( 34,487,170
)

 Less: Net loss attributable to non-controlling interests of continued operations

 ( 32,975
)

 ( 254,625
)

 Less: Net loss attributable to non-controlling interests of discontinued operations

 ( 190,840
)

 ( 108,046
)

 COMPREHENSIVE LOSS ATTRIBUTABLE TO FUTURE FINTECH GROUP INC. STOCKHOLDERS

 $
 ( 32,995,434
)

 ( 34,124,499
)

 Earnings (loss) per share:

 Basic loss per share from continued operation

 $
)

 $
 ( 2.21
)

 Basic earnings (loss) per share from discontinued operation

 0.06

)

 $
 ( 1.57
)

 $
 ( 2.28
)

 Diluted Earnings (loss) per share:

 Diluted loss per share

 $
)

 $
 ( 2.20
)

 Diluted earnings (loss) per share from discontinued
 operation

 0.06

)

 $
 ( 1.57
)

 $
 ( 2.27
)

 Weighted average number of shares outstanding

 Basic

 Diluted

 20,970,181

 14,788,834

 *
 Reclassification- certain reclassifications have been made to the financial statements for the period ended December 31, 2023 to conform to the presentation for the period ended December 31, 2024, with no effect on previously reported net income (loss).

 The accompanying notes are an integral part of
these consolidated financial statements.

 F- 5

 CONSOLIDATED STATEMENTS OF STOCKHOLDERS'
EQUITY

 Accumulative

 Additional

 Other

 Non-

 Common Stock

 paid-in

 Statutory

 Accumulated

 comprehensive

 controlling

 Shares

 capital

 reserve

 Deficits

 income

 interests

 Total

 Balance at December 31, 2022

 14,645,653

 $

 14,646

 $

 222,751,657

 $

 $

 ( 152,276,434

)

 $

 ( 3,623,005

)

 $

 ( 1,279,580

)

 $

 65,685,641

 Issuance of common stocks-non cash

 299,221

 7,387,398

 -

 -

 -

 -

 7,387,697

)

 Net loss from continued operation

 -

 -

 -

 -

 ( 32,572,778

)

 -

 ( 254,625

)

 ( 32,827,403

)

 Net loss from discontinued operations

 -

 -

 -

 -

 ( 1,466,932

)

 -

 ( 108,046

)

 ( 1,574,978

)

 Contribution by non-controlling interests

 -

 -

 286,832

 -

 -

 -

 74,044

 360,876

 Share-based payments-omnibus equity plan

 2,890,000

 2,890

 3,465,110

 -

 -

 -

 -

 3,468,000

 Disposition of Discontinued operation

 -

 -

 -

 -

 386,482

 23,515

 -

 409,997

 Foreign currency translation adjustment

 -

 -

 -

 -

 -

 ( 494,786

)

 -

 ( 494,786

)

 Balance at December 31, 2023

 17,834,874

 $

 17,835

 $

 233,890,997

 $

 $

 ( 185,929,662

)

 $

 ( 4,094,276

)

 $

 ( 1,568,207

)

 $

 42,415,044

 Issuance of common stocks-conversion of debt

 2,375,434

 2,375

 622,625

 -

 -

 -

 -

 625,000

 Issuance of common stocks-cash

 2,150,536

 2,150

 2,578,493

 -

 -

 -

 -

 2,580,643

 Net loss from continued operation

 -

 -

 -

 -

 ( 34,200,867

)

 -

 ( 32,975

)

)

 Share-based payments-omnibus equity plan

 2,110,000

 2,110

 668,870

 -

 -

 -

 -

 670,980

 Disposition of Discontinued operation

 -

 -

 ( 286,831

)

 -

 114,723

 ( 264,884

)

 808,002

 Foreign currency translation adjustment

 -

 -

 -

 -

 -

 ( 269,008

)

 -

 ( 269,008

)

 Balance at December 31, 2024

 24,470,844

 $

 24,470

 $

 237,474,153

 $

 $

 ( 218,885,534

)

 $

 ( 4,248,561

)

 $

 ( 1,866,066

)

 $

 12,596,819

 All shares and per share data have been retroactively restated to reflect
reverse stock split effected on February 1, 2023.

 The accompanying notes are an integral part of
these consolidated financial statements.

 F- 6

 CONSOLIDATED STATEMENTS OF CASH FLOWS

 For the Year Ended

 2024

 2023

 CASH FLOWS FROM OPERATING ACTIVITIES

 Net loss

 $
 ( 33,179,687
)

 $
 ( 34,015,899
)

 Net income (loss) from discontinued operation

 1,054,155

 ( 1,188,496
)

 Net loss from continuing operations

)

 ( 32,827,403
)

 Adjustments to reconcile net income to net cash provided by operating activities

 Depreciation

 209,254

 201,363

 Amortization

 Provision (Recovery) of doubtful debts

 27,350,439

 ( 716,914
)

 Impairment of goodwill

 -

 14,148,298

 Impairment of short term investment

 9,315

 12,633

 Interest expenses related to convertible note

 77,363

 -

 Share-based payments

 670,980

 3,468,000

 Changes in operating assets and liabilities

 Accounts receivable

 2,637,772

 5,564,429

 Other receivables

 ( 10,366,870
)

 ( 7,312,243
)

 Advances to suppliers and other current assets

 ( 5,106,927
)

 1,219,839

 Operating lease assets and liabilities

 ( 8,779
)

 11,757

 Accounts payable

 ( 1,082,414
)

 ( 4,407,094
)

 Accrued expenses

 ( 1,177,100
)

 6,946,335

 Advances from customers

 ( 273,152
)

 ( 929,882
)

 Net cash used in operating activities – continued operations

 ( 21,236,926
)

 ( 14,563,847
)

 Net cash provided by (used in) operating activities – discontinued operations

 10,093,999

 ( 24,066
)

 CASH FLOWS FROM INVESTING ACTIVITIES

 Additions to property, plant and equipment

 ( 34,056
)

 ( 65,653
)

 Disposal of property and equipment

 230,738

 32,490

 Additions to loan receivables

 ( 421,249
)

 ( 9,966,830
)

 Repayment of loan receivable

 280,833

 14,107,063

 Payment for Short term Investment

 946,669

 -

 Increase of financial products

 ( 1,391
)

 -

 Debt investment

 ( 1,530,243
)

 -

 Acquisition of a subsidiary, net of cash

 -

 4,679,434

 Disposal of a subsidiary, net of cash

 ( 1,101,201
)

 ( 5,993
)

 Net cash (used in) provided by investing activities from continued operations

 ( 1,629,900
)

 8,780,511

 Net cash used in investing activities from discontinued operations

 ( 2,064,479
)

 ( 745,440
)

 CASH FLOWS FROM FINANCING ACTIVITIES

 Proceeds from the issuance of common stock, net of issurance costs

 2,580,643

 -

 Notes payable

 ( 3,589,582
)

 Proceeds from amounts due from related parties, net

 166,766

 83,055

 Repayment of amounts due to related parties, net

 ( 240,238
)

 -

 Proceeds from secured convertible promissory note

 -

 Net cash provided by (used in) financing activities from continued operations

 2,507,171

 ( 2,405,804
)

 Net cash provided by financing activities from discontinued operations

 -

 582,056

 Effect of change in exchange rate

 ( 239,989
)

 ( 188,642
)

 NET DECREASE IN CASH AND CASH EQUIVALENTS

 ( 12,570,124
)

 ( 8,565,232
)

 Cash and cash equivalents, from the continuing operations beginning of year

 17,412,865

 27,597,510

 Cash and restricted cash at end of year

 4,842,741

 19,032,278

 Less: Cash and cash equivalents from the discontinued operations, end of year

 -

 ( 1,619,413
)

 Cash and cash equivalents, from the continuing operations end of year

 4,842,741

 17,412,865

 SUPPLEMENTARY DISCLOSURE OF SIGNIFICANT NON-CASH TRANSACTION

 Conversion of debt

 625,000

 -

 SUPPLEMENTAL CASH FLOW INFORMATION:

 Income taxes paid

 $
 -

 $
 510,838

 Interest paid

 108,454

 -

 The accompanying notes are an integral part of
these consolidated financial statements.

 F- 7

 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 FOR YEARS ENDED DECEMBER 31, 2024 AND 2023

 1. CORPORATE INFORMATION

 Future FinTech Group Inc. (the "Company")
is a holding company incorporated under the laws of the State of Florida. The Company historically engaged in the production and sale
of fruit juice concentrates (including fruit purees and fruit juices), fruit beverages (including fruit juice beverages and fruit cider
beverages) in the PRC. Due to drastically increased production costs and tightened environmental laws in China, the Company had transformed
its business from fruit juice manufacturing and distribution to financial technology related service businesses. The main business of
the Company includes supply chain financing services and trading in China, asset management business in Hong Kong and cross-border money
transfer service in UK. The Company also expanded into brokerage and investment banking business in Hong Kong and cryptocurrency mining
farm in the U.S. The Company had a contractual arrangements with a VIE E-Commerce Tianjin in China, which has generated minimal revenue
and business since 2021 due to the negative impact caused by COVID-19. The Company started the process to close it down in November 2023
and completed deregistration and dissolution of the VIE with local authority on March 7, 2024.

 On February 27, 2023, Future FinTech (Hong Kong)
Limited ("Buyer"), a company incorporated in Hong Kong and a wholly owned subsidiary of Future FinTech Group Inc. (the "Company")
entered into a Share Transfer Agreement (the "Agreement") with Alpha Financial Limited, a company incorporated in Hong Kong
("Seller") and sole owner and shareholder of Alpha International Securities (Hong Kong) Limited, a company incorporated
in Hong Kong ("Alpha HK") and Alpha Information Service (Shenzhen) Co., Ltd., a company incorporated in China ("Alpha
SZ"). Alpha HK holds Type 1 'Securities Trading', Type 2 'Futures Contract Trading' and Type 4 'Securities
Consulting' financial licenses issued by the Hong Kong Securities and Futures Commission. Alpha SZ provides technical support services
to Alpha HK. The share transfer transaction was approved by the Securities and Futures Commission of Hong Kong ("SFC")
in August 2023 and the acquisition was closed on November 7, 2023. The names of the two entities were subsequently changed to 'FTFT
International Securities and Futures Limited' and 'FTFT Information Services (Shenzhen) Co. Ltd.', respectively.

 On October 30, 2023, Future FinTech (Hong Kong)
Limited, a wholly owned subsidiary of the Company acquired 100 % equity interest of Alpha International Securities (HONG KONG) Limited
a company incorporated in Hong Kong for $ 1,791,174 (HKD 14,010,421), which is in the securities business. The Company has changed its name
from Alpha International Securities (HONG KONG) Limited to FTFT International Securities and Futures Limited on November 1, 2023.

 On October 30, 2023, Future FinTech (Hong
Kong) Limited, a wholly owned subsidiary of the Company acquired 100 % equity interest of Alpha Information Services (Shenzhen) Co.,
Ltd for $ 210,788 (HKD 1,649,528), which provides information services for FTFT International Securities and Futures Limited. The
Company has changed its name from Alpha Information Services (Shenzhen) Co., Ltd to Future information service (Shenzhen) Co., Ltd
on November 3, 2023.

 F- 8

 The Company's business and operations are
principally conducted by its subsidiaries in the PRC, Hong Kong and UK.

 On January 26, 2023, the Company filed with the
Florida Secretary of State's office Articles of Amendment (the "Amendment") to amend its Second Amended and Restated
Articles of Incorporation, as amended ("Articles of Incorporation"). As a result of the Amendment, the Company has authorized
and approved a 1-for-5 reverse stock split of the Company's authorized shares of common stock from 300,000,000 shares to 60,000,000
shares, accompanied by a corresponding decrease in the Company's issued and outstanding shares of common stock (the "Reverse
Stock Split"). The common stock will continue to be $ 0.001 par value. The Company rounds up to the next full share of the Company's
shares of common stock any fractional shares that result from the Reverse Stock Split and no fractional shares is issued in connection
with the Reverse Stock Split and no cash or other consideration is paid in connection with any fractional shares that would otherwise
have resulted from the Reverse Stock Split. No changes are being made to the number of preferred shares of the Company which remain as
 10,000,000 preferred shares as authorized but not issued. The amendment to the Articles of Incorporation of the Company took effect on
February 1, 2023. The Reverse Stock Split and Amendment were authorized and approved by the Board of Directors of the Company without
shareholders' approval, pursuant to 607.10025 of the Florida Business Corporation Act of the State of Florida.

 The Company started a process to close it down
in November 2023 and completed deregistration and dissolution of the VIE with local authority on March 7, 2024.

 The reverse stock split would be reflected in
our December 31, 2024 and December 31, 2023 statements of changes in stockholders' equity, and in per share data for all periods
presented.

 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 Basis of preparation and principle of consolidation

 These consolidated financial statements ("financial
statements") have been prepared in conformity with accounting principles generally accepted in the United States of America, or
US GAAP.

 The Company's functional currency of subsidiaries
in China is the Chinese Renminbi (RMB). Other subsidiaries outside of China use U.S. Dollar (USD), Hong Kong Dollar (HKD), Great Britain
Pound ("GBP") and AED (United Arab Emirates Dirham) as the functional currency; however, the accompanying consolidated financial
statements have been translated and presented in USD.

 According to US GAAP Accounting Standard Codification
("ASC") 810-10-15-8, for legal entities other than limited partnerships, the usual condition for a controlling financial interest
is ownership of a majority voting interest, and, therefore, as a general rule ownership by one reporting entity, directly or indirectly,
of more than 50 percent of the outstanding voting shares of another entity is a condition pointing toward consolidation. The power to
control may also exist with a lesser percentage of ownership, for example, by contract, lease, agreement with other stockholders, or by
court decree.

 F- 9

 The consolidated financial statements include
the financial statements of the Company and its subsidiaries. All transactions and balances among the Company and its subsidiaries
have been eliminated upon consolidation.

 Discontinued Operations

 On June 16, 2023, QR (HK) Limited was dissolved
and deregistered.

 On December 5, 2023, FTFT PARAGUAY S.A. was dissolved.

 On March 7, 2024, Chain Cloud Mall Network and
Technology (Tianjin) Co., Limited was dissolved and deregistered. The loss on disposal was $ 45,487.54.

 On September 4, 2024, Tianjin Future Private Equity
Fund Management Partnership (Ltd Partnership) was dissolved and deregistered. The loss on disposal was $ 22.46.

 On October 18, 2024, Nice Talent Asset Management
Limited ("NTAM") was disposed of for a consideration of US$ 0.31 million (HK$ 2.40 million). The loss on disposal was $ 2.32 million.

 On December 6, 2024, FTFT Super Computing Inc. was disposed of for
a consideration of US$ 1.97 million, of which (i) the assumption of the obligations of FTFT Super Computing totaling $ 973,072.24 and (ii)
$ 1,000,000 was paid to an account at Olshan Frome Wolosky LLP to satisfy, in part, the right of payment held by FT Global Capital, Inc.
arising from the judgment entered in favor of FT Global and against the Company registered in the Southern District of New York. The gain
on disposal was $ 3.42 million.

 Based on the disposal plan and in accordance with
ASC 205-20, the Company presented the operating results from these operations as a discontinued operation.

 Segment Information Reclassification

 The Company classified business segment into asset
management service, supply chain financing and trading, and others.

 Uses of Estimates in the Preparation of Financial
Statements

 The Company's consolidated financial statements
have been prepared in accordance with US GAAP and this requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements
and reported amounts of revenue and expenses during the reporting period. The significant areas requiring the use of management estimates
include, but not limited to, the allowance for doubtful accounts receivable, estimated useful life and residual value of property, plant
and equipment, impairment of long-lived assets, provision for staff benefit, recognition and measurement of deferred income taxes and
valuation allowance for deferred tax assets. Although these estimates are based on management's knowledge of current events and
actions management may undertake in the future, actual results may ultimately differ from those estimates and such differences may be
material to our consolidated financial statements.

 Going Concern

 The Company's financial statements are prepared
assuming that the Company will continue as a going concern.

 The Company incurred operating losses and had
negative operating cash flows and may continue to incur operating losses and generate negative cash flows as the Company implements its
future business plan. The Company's operating losses amounted $ 36.62 million, and it had negative operating cash flows amounted
$ 21.24 million as of December 31, 2024. These factors raise substantial doubts about the Company's ability to continue as a going
concern. The Company has raised funds through issuance of convertible notes and common stock.

 F- 10

 The Company had net working capital of $ 7.60 million. The Company had
current liabilities of $ 13.11 million which is expected to get repaid within twelve months. As of December 31, 2024, the Company had cash
of $ 4.84 million, accounts receivable of $ 2.09 million and loan receivables of $ 7.09 million, which were expected to be liquid and used
to repay the liabilities. As such, the Company believed it had sufficient cash to settled the liabilities within the next 12 months.

 The ability of the Company to continue as a going
concern is dependent upon its ability to successfully execute its new business strategy and eventually attain profitable operations. The
financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 Research and development

 Research and development expenses include salaries,
contracted services, as well as the related expenses for our research and product development team, and expenditures relating to our efforts
to develop, design, and enhance our service to our clients. The Company expenses research and development costs as they are incurred.

 Impairment of Long-Lived Assets

 In accordance with the ASC 360-10, Accounting
for the Impairment or Disposal of Long-Lived Assets, long-lived assets, such as property, plant and equipment and purchased intangibles
subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an
asset may not be recoverable, or it is reasonably possible that these assets could become impaired as a result of technological or other
industrial changes. The determination of recoverability of assets to be held and used is made by comparing the carrying amount of an asset
to future undiscounted cash flows to be generated by the assets.

 If such assets are considered to be impaired,
the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets.
Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell.

 Fair Value of Financial Instruments

 The Company has adopted FASB ASC Topic on Fair
Value Measurements and Disclosures ("ASC 820"), which defines fair value, establishes a framework for measuring fair value
in GAAP, and expands disclosures about fair value measurements. ASC 820 establishes a three-level valuation hierarchy of valuation techniques
based on observable and unobservable input, which may be used to measure fair value and include the following:

 Level 1 – Quoted prices in active markets for identical assets
or liabilities.

 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.

 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.

 Our cash and cash equivalents and restricted cash
and short-term investments are classified within level 1 of the fair value hierarchy because they are value using quoted market price.

 Earnings (Loss) Per Share

 Under ASC 260-10, Earnings Per Share, basic
EPS excludes dilution for Common Stock equivalents and is calculated by dividing net income (loss) available to common stockholders by
the weighted-average number of Common Stock outstanding for the period.

 F- 11

 Diluted EPS is calculated by using the treasury
stock method, assuming conversion of all potentially dilutive securities, such as stock options and warrants. Under this method, (i) exercise
of options and warrants is assumed at the beginning of the period and shares of Common Stock are assumed to be issued, (ii) the proceeds
from exercise are assumed to be used to purchase Common Stock at the average market price during the period, and (iii) the incremental
shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) are included in the denominator
of the diluted EPS computation. The numerators and denominators used in the computations of basic and diluted EPS are presented in the
following table.

 For the year ended December 31, 2024:

 Income

 Share

 Pre-share
 amount

 Loss from continued operations attributable to Future Fintech Group, Inc.

 $
 ( 34,200,867
)

 $
)

 Income from discontinued operations attributable to Future Fintech Group, Inc.

 $

 $
 0.06

 Basic EPS:

 Loss to common stockholders from continuing operations

 $
 ( 34,200,867
)

 $
)

 Income available to common stockholders from discontinued operations

 $

 $
 0.06

 Dilutive EPS:

 Warrants

 -

 -

 Diluted earnings per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continued operations attributable to Future Fintech Group, Inc.

 $
 ( 34,200,867
)

 20,970,181

 $
)

 Diluted earnings per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinued operations

 $

 20,970,181

 $
 0.06

 For the year ended December 31, 2023:

 Income

 Share

 Pre-share
 amount

 Loss from continued operations attributable to Future Fintech Group, Inc.

 $
 ( 32,572,778
)

 $
 ( 2.21
)

 Loss from discontinued operations attributable to Future Fintech Group, Inc.

 $
 ( 1,080,450
)

 $
)

 Basic EPS:

 Loss to common stockholders from continuing operations

 $
 ( 32,572,778
)

 $
 ( 2.21
)

 Loss available to common stockholders from discontinued operations

 $
 ( 1,080,450
)

 $
)

 Dilutive EPS:

 Warrants before 1-for-5 reverse stock split

 -

 210,526

 -

 Warrants after 1-for-5 reverse stock split

 -

 -

 Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continued operations attributable to Future Fintech Group, Inc.

 $
 ( 32,572,778
)

 14,788,834

 $
 ( 2.20
)

 Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinued operations

 $
 ( 1,080,450
)

 14,788,834

 $
)

 F- 12

 Cash, cash equivalents and restricted cash

 Cash and cash equivalents included cash on hand
and demand deposits placed with banks or other financial institutions, which are unrestricted as to withdrawal and use and with an original
maturity of three months or less.

 Deposits in banks in the PRC are only insured
by the government up to RMB 500,000, in the HK are only insured by the government up to HKD 500,000, in the United Kingdom are only insured
by the government up to GBP 18,000, in the United States of America are only insured by the Federal Deposit Insurance Corporation up to
USD 250,000, and are consequently exposed to risk of loss.

 The Company believes the probability of a bank
failure, causing loss to the Company, is remote.

 Cash that is restricted as to withdrawal for use
or pledged as security is reported separately on the face of the consolidated balance sheets, and is not included in the total cash and
cash equivalents in the consolidated statements of cash flows.

 Receivable and Allowances

 Accounts receivable are recognized and carried
at the original invoice amounts less an allowance for any uncollectible amount. We have a policy of reserving for uncollectible accounts
based on our best estimate of the amount of probable credit losses in our existing accounts receivable. We perform ongoing credit evaluations
of our customers and maintain an allowance for potential bad debts if required.

 Other receivables, and loan receivables are recognized
and carried at the initial amount when occurred less an allowance for any uncollectible amount. We have a policy of reserving for uncollectible
accounts based on our best estimate of the amount of probable impairment losses in our existing receivable.

 Allowances for doubtful accounts are maintained
for expected credit losses resulting from the Company's customers' inability to make required payments. The allowances are
based on the Company's regular assessment of various factors, including the credit-worthiness and financial condition of specific
customers, historical experience with bad debts and customer deductions, receivables aging, current economic conditions, reasonable and
supportable forecasts of future economic conditions, and other factors that may affect the Company's ability to collect from customers.
The Company maintains an allowance for credit losses in accordance with ASC Topic 326, Credit Losses ("ASC 326") and records
the allowance for credit losses as an offset to accounts receivable and contract assets, and the estimated credit losses charged to the
allowance is classified as "bad debt expense" in the consolidated statements of comprehensive income. We determine whether
an allowance for doubtful accounts is required by evaluating specific accounts where information indicates the customers may have an inability
to meet financial obligations. In these cases, we use assumptions and judgment, based on the best available facts and circumstances, to
record a specific allowance for those customers against amounts due to reduce the receivable to the amount expected to be collected. These
specific allowances are re-evaluated and adjusted as additional information is received. The amounts calculated are analyzed to determine
the total amount of the allowance. We may also record a general allowance as necessary.

 Direct write-offs are taken in the period when
we have exhausted our efforts to collect overdue and unpaid receivable or otherwise evaluate other circumstances that indicate that we
should abandon such efforts.

 The Company has assessed its receivable including
credit term and corresponding all its receivables in December 2024. Upon such credit terms, bad debt expense was $ 27.35 million and $( 787,868)
during the years ended December 31, 2024 and 2023, respectively. Accounts receivables of $ 1.15 million and nil have been outstanding for
over 90 days as of December 31, 2024 and December 31, 2023, respectively.

 Revenue Recognition

 We apply the five steps defined under ASC 606:
(i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction
price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the
entity satisfies a performance obligation. We assess its revenue arrangements against specific criteria in order to determine if it is
acting as principal or agent. Revenue arrangements with multiple performance obligations are divided into separate distinct goods or services.
We allocate the transaction price to each performance obligation based on the relative standalone selling price of the goods or services
provided. Revenue is recognized upon the transfer of control of promised goods or services to a customer. Control is generally transferred
when the Company has a present right to payment and title and the significant risks and rewards of ownership of products or services are
transferred to its customers.

 F- 13

 We do not make any significant judgment in evaluating
when control is transferred. Revenue is recorded net of value-added tax.

 Revenue recognitions are as follows:

 Sales of coals, aluminum ingots, sand and steel

 The Company recognize revenue when the receipt
of merchandise is confirmed by the customers, which is the point that the title of the goods is transferred to the customer. Revenue was
$ 0.83 million and $ 20.44 million during the year ended December 31, 2024 and 2023, respectively.

 Sales agent services of coals, aluminum ingots,
sand and steel

 For the sale of third-party products where the
Company obtains control of the product before transferring it to the customer, the Company recognizes revenue based on the gross revenue
amount billed to customers as sales of goods listed above. The Company considers multiple factors when determining whether it obtains
control of third-party products, including evaluating if it can establish the price of the product, retains inventory risk for tangible
products or has the responsibility for ensuring acceptability of the product. The Company recognizes net revenue as agent services for
the sales of coals, aluminum ingots, sand and steel when no control obtained throughout the transactions. Revenue was $ 0.15 million
and $ 0.33 million during the year ended December 31, 2024 and 2023, respectively.

 Daily Bargain Detail Report will be submitted
to accountant each day, and accountant posts commission based on received settlement report.

 Property, Plant and Equipment

 Property, plant and equipment are stated at cost
less accumulated depreciation and any impairment losses. Depreciation is computed using the straight-line method over the useful lives
of the assets. Major renewals and betterments are capitalized and depreciated; maintenance and repairs that do not extend the life of
the respective assets are expensed as incurred. Upon disposal of assets, the cost and related accumulated depreciation are removed from
the accounts and any gain or loss is included in the consolidated statements of operations and comprehensive income.

 Depreciation related to property, plant and equipment
used in production is reported in cost of sales, and includes amortized amounts related to capital leases. We estimated that the residual
value of the Company's property and equipment ranges from 3 % to 5 %. Property, plant and equipment are depreciated over their estimated
useful lives as follows:

 Building

 30 years

 Machinery and equipment

 5 - 10 years

 Furniture and office equipment

 3 - 5 years

 Motor vehicles

 5 years

 Intangible Assets

 Acquired intangible assets are recognized based
on their cost to the Company, which generally includes the transaction costs of the asset acquisition, and no gain or loss is recognized
unless the fair value of noncash assets given as consideration differs from the assets' carrying amounts on the Company's
book. These assets are amortized over their useful lives if the assets are deemed to have a finite life and they are reviewed for impairment
by testing for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The
fair value of an intangible asset is the amount that would be determined if the entity used the assumptions that market participants would
use if they were pricing the intangible asset. The useful life of the Company's intangible assets is five - ten years, which is
determined by using the time period that an intangible is estimated to contribute directly or indirectly to a Company's future cash
flows.

 F- 14

 Foreign Currency and Other Comprehensive Income
(Loss)

 The financial statements of the Company's
foreign subsidiaries are measured using the local currency as the functional currency; however, the reporting currency of the Company
is the USD. Assets and liabilities of the Company's foreign subsidiaries have been translated into USD using the exchange rate at
the balance sheet dates, while equity accounts are translated using historical exchange rate. The exchange rate we used to convert RMB
to USD was 7.19:1 and 7.08:1 at the balance sheet dates of December 31, 2024 and December 31, 2023, respectively. The average exchange
rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert RMB to USD were 7.12:1
and 7.05:1 for fiscal year 2024 and fiscal year 2023, respectively.

 The exchange rate we used to convert HKD to USD
was 7.76:1 and 7.82:1 at the balance sheet dates of December 31, 2024 and December 31, 2023. The average exchange rate for the period
has been used to translate revenues and expenses. The average exchange rates we used to convert HKD to USD were 7.80:1 and 7.83:1 for
fiscal year 2024 and fiscal year 2023.

 The exchange rate we used to convert GBP to USD
was 0.79:1 and 0.78:1 at the balance sheet dates of December 31, 2024 and December 31, 2023. The average exchange rate for the period
has been used to translate revenues and expenses. The average exchange rates we used to convert GBP to USD were 0.78:1 and 0.80:1 for
fiscal year 2024 and fiscal year 2023.

 The exchange rate we used to convert AED to USD
was 3.65:1 and 3.66:1 at the balance sheet dates of December 31, 2024 and December 31, 2023. The average exchange rate for the period
has been used to translate revenues and expenses. The average exchange rates we used to convert AED to USD were 3.66:1 and 3.66:1 for
fiscal year 2024 and fiscal year 2023.

 Translation adjustments are reported separately
and accumulated in a separate component of equity (cumulative translation adjustment).

 Government subsidies

 Government subsidies primarily consist of financial
subsidies received from provincial and local governments for operating a business in their jurisdictions and compliance with specific
policies promoted by the local governments. For certain government subsidies, there are no defined rules and regulations to govern the
criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the
relevant government authorities. The government subsidies of operating nature with no further conditions to be met are recorded of operating
expenses in "Other income" in the consolidated statements when received.

 The amendments in this update require disclosures
about transactions with a government that have been accounted for by analogizing to a grant or contribution accounting model to increase
transparency about (1) the types of transactions, (2) the accounting for the transactions, and (3) the effect of the transactions on an
entity's financial statements.

 Income Taxes

 We use the asset and liability method of accounting
for income taxes in accordance with ASC Topic 740, "Income Taxes." Under this method, income tax expense is recognized for
the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting
from matters that have been recognized in an entity's financial statements or tax returns. Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to
be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations
in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based
on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets
will not be realized.

 ASC Topic 740-10-30 clarifies the accounting for
uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold and measurement
attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC
Topic 740-10-25 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure,
and transition. We have no material uncertain tax positions for any of the reporting periods presented.

 F- 15

 Goodwill

 The Company tests goodwill for impairment for
its reporting units on an annual basis, or when events occur or circumstances indicate the fair value of a reporting unit is below its
carrying value. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that
implied fair value of the goodwill within the reporting unit is less than its carrying value.

 The Company's evaluation of goodwill for
impairment involves the comparison of the fair value of the reporting unit to its carrying value. The Company uses the discounted cash
flow model to estimate fair value, which requires management to make significant estimates and assumptions related to forecasts of future
revenue and operating margin. In addition, the discounted cash flow model requires the Company to select an appropriate weighted average
cost of capital based on current market conditions as of December 31, 2024 and December 31, 2023. A high degree of auditor judgment and
an increased extent of effort were required when performing audit procedures to evaluate the reasonableness of management's estimates
and assumptions related to the forecasts. Based upon the assessment, the Company has concluded that goodwill is nil as of December 31,
2024 and December 31, 2023.

 Short-term investments

 Short-term investments consist primarily of investments
in fixed deposits with original maturities between three months and one year and certain investments in wealth management products and
other investments that the Company has the intention to redeem within one year. Fair valued or carried at amortized costs. As of December
31, 2024 and December 31, 2023, the short-term investments amounted to $ 1,391 and $ 0.96 million, respectively. Due to fluctuations of
the quoted shares included in its investment portfolios, the Company recognized an impairment to the investment portfolio of $ 12,633 in
2023.

 Long-term investments

 Long-term investments consist primarily of investments
in debt investment with original maturities between three years and more. Fair valued or carried at amortized costs. As of December 31,
2024 and December 31, 2023, the long-term investments amounted to $ 1.83 million and nil, respectively. Due to the Company has received
repayment $ 0.25 million (RMB 1,800,000) debt investment, the Company did not recognize an impairment.

 Lease

 We adopted ASU No. 2016-02, Leases (Topic 842),
or ASC 842, from January 1, 2020. We determine if an arrangement is a lease or contains a lease at lease inception. For operating leases,
we recognize a right-of-use ("ROU") asset and a lease liability based on the present value of the lease payments over the
lease term on the consolidated balance sheets at commencement date. As most of our leases do not provide an implicit rate, we estimate
our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments.
The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments,
and in economic environments where the leased asset is located. The ROU assets also include any lease payments made, net of lease incentives.
Lease expense is recorded on a straight-line basis over the lease term. Our leases often include options to extend and lease terms include
such extended terms when we are reasonably certain to exercise those options. Lease terms also include periods covered by options to terminate
the leases when we are reasonably certain not to exercise those options.

 Share-based compensation

 The Company awards share options and other equity-based
instruments to its employees, directors and consultants (collectively "share-based payments"). Compensation cost related to
such awards is measured based on the fair value of the instrument on the grant date. The Company recognizes the compensation cost over
the period the employee is required to provide service in exchange for the award, which generally is the vesting period. The amount of
cost recognized is adjusted to reflect the expected forfeiture prior to vesting. When no future services are required to be performed
by the employee in exchange for an award of equity instruments, and if such award does not contain a performance or market condition,
the cost of the award is expensed on the grant date. The Company recognizes compensation cost for an award with only service conditions
that has a graded vesting schedule on a straight-line basis over the requisite service period for the entire award, provided that the
cumulative amount of compensation cost recognized at any date at least equals the portion of the grant-date value of such award that is
vested at that date.

 F- 16

 Statutory reserves

 Pursuant to the laws applicable to the PRC, PRC
entities must make appropriations from after-tax profit to the non-distributable "statutory surplus reserve fund". Subject
to certain cumulative limits, the "statutory surplus reserve fund" requires annual appropriations of 10 % of after-tax profit
until the aggregated appropriations reach 50 % of the registered capital (as determined under accounting principles generally accepted
in the PRC ("PRC GAAP") at each year-end). For foreign invested enterprises and joint ventures in the PRC, annual appropriations
should be made to the "reserve fund". For foreign invested enterprises, the annual appropriation for the "reserve fund"
cannot be less than 10 % of after-tax profits until the aggregated appropriations reach 50 % of the registered capital (as determined under
PRC GAAP at each year-end).

 New Accounting Pronouncements

 In November 2023, the FASB issued ASU No. 2023-07,
"Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures." This ASU expands required public entities'
segment disclosures, including disclosure of significant segment expenses that are regularly provided to the chief operating decision
maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment
items and interim disclosures of a reportable segment's profit or loss and assets. ASU 2023 07 is applied retrospectively to all
periods presented in financial statements, unless it is impracticable. This ASU is effective for fiscal years beginning after December
15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company adopted
this guidance effective July 1, 2024 and the adoption of this ASU is not expected to have a material impact on its financial statements.

 In December 2023, the FASB issued ASU No. 2023-09,
"Income Taxes (Topic 740): Improvements to Income Tax Disclosures". This ASU requires additional quantitative and qualitative
income tax disclosures to enable financial statements users better assess how an entity's operations and related tax risks and tax
planning and operational opportunities affect its tax rate and prospects for future cash flows. The ASU is effective for annual reporting
periods beginning after December 15, 2024, with early adoption permitted and can be applied on either a prospective or retroactive basis.
The Company plans to adopt this guidance effective July 1, 2025 and the Company is currently evaluating the impact of adopting this ASU
on its financial statements.

 Management does not believe that any other recently
issued, but not yet effective accounting pronouncements, if adopted, would have a material impact on the accompanying consolidated financial
statements.

 3. ACCOUNTS RECEIVABLE

 Accounts receivable, net consist of the following:

 2024

 2023

 Supply Chain Financing/Trading

 $
 2,038,730

 $
 3,251,822

 50,232

 1,157,990

 Total accounts receivable, net

 $
 2,088,962

 $
 4,409,812

 F- 17

 The following table sets forth our concentration
of accounts receivable, net of specific allowances for doubtful accounts.

 2024

 2023

 Debtor A

 $
 34.54
 %

 $
 27.31
 %

 Debtor B

 18.99
 %

 19.86
 %

 Debtor C

 17.78
 %

 12.47
 %

 Total accounts receivable, net

 $
 71.31
 %

 $
 59.64
 %

 4. OTHER RECEIVABLES

 As of December 31, 2024, the balance of other
receivables was $ 1.69 million deposit paid and prepayments to third parties.

 As of December 31, 2023, the balance of other receivables was $ 7.59
million.

 On February 3, 2023, Future Fintech Group Inc.
entered into a "Consulting Agreement" with a third party for its professional service of potential acquisition projects.
Future Fintech Group Inc. provided initial amount of cash deposit to the third party in the amount of $ 2.40 million. As of December 31,
2024, the project has been terminated, therefore a full provision for bad debts made.

 On December 6, 2023, Future Fintech (Hong Kong)
Limited entered into a "Mobile Software Application Development Agreement" with a third-party. Future Fintech (Hong Kong)
Limited shall pay $ 4.00 million. Future Fintech (Hong Kong) Limited provided initial amount of cash deposit to the third party in the
amount of $ 2.00 million. Development shall take 250 man-days. As of December 31, 2024, the project has been terminated, therefore a full
provision for bad debts.

 On December 6, 2023, Future Fintech (Hong Kong)
Limited entered into a "Augmented Reality (AR) Group Development and Service Agreement" with a third-party. Future Fintech
(Hong Kong) Limited shall pay $ 5.00 million. Future Fintech (Hong Kong) Limited provided initial amount of cash deposit to the third party
in the amount of $ 2.50 million. Development shall take 180 man-days. As of December 31, 2024, the project has been terminated, therefore
a full provision for bad debts made.

 In addition, other receivables included total $ 0.70 million deposit
paid and prepayments to third parties.

 F- 18

 5. LOAN RECEIVABLES

 As of December 31, 2024, the balance of loan receivables
was $ 7.09 million, which was from a third party.

 On July 14, 2022, Future Private Equity Fund Management
(Hainan) Co., Limited entered into a "Loan Agreement" with a third party. Pursuant to the Loan Agreement, Future Private Equity
Fund Management (Hainan) Co., Limited loaned an amount of $ 7.00 million (RMB 50 million) to the third party at the annual interest rate
of 8 % from July 15, 2022 to July 14, 2025, guarantee by Junde Chen. To strengthen the liquidity, the Company negotiated with the borrower
to early settle part of the loan. As of April 17, 2023, the Company has received repayment $ 4.87 million (RMB 35 million). As of December 31, 2024, the balance of loan receivables was $ 2.09
million. The amount of
$ 2.09 million (RMB 15 million) will be repaid within 12 months.

 On December 8, 2023, Future Private Equity Fund
Management (Hainan) Co., Limited entered into a "Loan Agreement" with a third party. Pursuant to the Loan Agreement, Future
Private Equity Fund Management (Hainan) Co., Limited loaned an amount of $ 4.86 million (RMB 35 million) to the third party at the annual
interest rate of 5 % from December 8, 2022 to December 8, 2025. As of December 31, 2024, the balance of loan receivables was $ 4.85 million.

 On August 29, 2024, Future Supply Chain (Xi'an)
Co., Ltd entered into a "Loan Agreement" with a third party. Pursuant to the Loan Agreement, Future Supply Chain (Xi'an) Co.,
Ltd loaned an amount of $ 0.14 million (RMB 1 million) to the third party at the annual interest rate of 12 % from August 29, 2024 to November
30, 2025. As of December 31, 2024, the balance of loan receivables was $ 0.14 million.

 As of December 31, 2023, the balance of loan receivables
was $ 14.90 million, which was from a third party.

 On March 10, 2022, FTFT HK entered into a "Loan
Agreement" with a third party. Pursuant to the Loan Agreement, FTFT HK loaned an amount of $ 5.00 million to the third party at the
annual interest rate of 10 % from March 10, 2022 to September 9, 2024. To strengthen the liquidity, the Company negotiated with the borrower
to early settle part of the loan. As of April 17, 2023, the Company has received repayment $ 2.16 million. The company assesses that the
loan cannot be recovered, therefore a full provision for bad debts made in 2024.

 On July 14, 2022, Future Private Equity Fund Management
(Hainan) Co., Limited entered into a "Loan Agreement" with a third party. Pursuant to the Loan Agreement, Future Private Equity
Fund Management (Hainan) Co., Limited loaned an amount of $ 7.28 million (RMB 50 million) to the third party at the annual interest rate
of 8 % from July 15, 2022 to July 14, 2025, guarantee by Junde Chen. To strengthen the liquidity, the Company negotiated with the borrower
to early settle part of the loan. As of April 17, 2023, the Company has received repayment $ 5.09 million (RMB 35 million).

 On December 8, 2023, Future Private Equity Fund
Management (Hainan) Co., Limited entered into a "Loan Agreement" with a third party. Pursuant to the Loan Agreement, Future
Private Equity Fund Management (Hainan) Co., Limited loaned an amount of $ 4.94 million (RMB 35 million) to the third party at the annual
interest rate of 5 % from December 8, 2022 to December 8, 2025.

 On December 8, 2023, Future Fin Tech (Hong Kong)
Limited entered into a "Loan Agreement" with a third party. Pursuant to the Loan Agreement, Future Fin Tech (Hong Kong) Limited
loaned an amount of $ 5.00 million to the third party at the annual interest rate of 5 % from December 8, 2022 to December 8, 2024. The
company assesses that the loan cannot be recovered, therefore a full provision for bad debts made in 2024.

 F- 19

 6. SHORT - TERM INVESTMENTS

 As of December 31, 2024 and 2023, the balance
of short - term investments was $ 1,391 and $ 0.96 million. On September 6, 2021, Future Private Equity Fund Management (Hainan) Co., Ltd.
invested $ 1.87 million (RMB 13,000,000) to entrust Shanghai Yuli Enterprise Management Consulting Firm to invest in various types
of investment portfolios. Due to fluctuations of the quoted shares included in its investment portfolios, the Company recognized an impairment
to the investment portfolio of nil and $ 12,633 for the years ended December 31, 2024 and 2023.

 7. ADVANCES TO SUPPLIERS AND OTHER CURRENT
ASSETS

 The amount of advances to suppliers and other
current assets consisted of the followings:

 2024

 2023

 Prepayments for Supply Chain Financing/Trading

 $
 4,351,414

 $
 2,743,539

 Prepaid expenses

 34,867

 29,693

 587,996

 664,693

 Total

 $
 4,974,277

 $
 3,437,925

 8. DEBT INVESTMENT

 As of December 31, 2024, debt investment was $ 1.53
million.

 On May 20, 2024, Future Commercial Management
Co., Ltd. entered into a "Debt Transfer Agreement" with a third-party. Future Commercial Management Co., Ltd. paid $ 0.71 million
(RMB 5.00 million) to purchase $ 2.12 million (principal amount RMB 7.50 million, interest RMB 7.35 million) in debt. The debt has pledge
of three properties, amount $ 2.08 million (RMB 8.02 million). The debt is expected to be repaid $ 1.14 million (RMB 8.00 million) within
 3 years. The company will perform debt impairment test end of the fiscal year.

 On July 4, 2024, Future Commercial Management
Co., Ltd., an indirectly wholly owned subsidiary of the Company, entered into a "Entrustment Agreement" with Xi'an Qifeng
Future Supply Chain Co., Ltd. ("Xi'an Qifeng") to entrust Xi'an Qifeng for acquisition of certain debt assets.
On September 26, 2024, Xi'an Qifeng through its authorized agent entered into a "Debt Transfer Agreement" with China
Zhongxin Financial Assets Management Co., Ltd. Gansu Branch, pursuant to which Future Commercial Management Co., Ltd. paid $ 1.12 million
(RMB 7.50 million) to purchase 60 % rights and ownership in debt assets which is amount of RMB 94.05 million (the total debt assets are of
principal amount RMB 87.90 million, interest RMB 68.84 million). The debt has been pledged with one property amount $ 5.62 million (RMB 39.36
million). The debt has an annual interest rate of 12 % and payment requirement of principal $ 0.07 million (RMB 0.5 million) per month until
it's fully repaid. In 2024, the Company has received repayment $ 0.25 million (RMB 1,800,000).

 F- 20

 9. ACQUISITION

 Alpha International Securities (Hong
Kong) Limited

 On October 30, 2023, Future FinTech (Hong Kong)
Limited, a wholly owned subsidiary of the Company acquired 100 % equity interest of Alpha International Securities (Hong Kong) Limited
a company incorporated in Hong Kong for $ 1,791,174 (HKD 14,010,421). The Company is securities business. The Company has changed its name
from Alpha International Securities (Hong Kong) Limited to FTFT International Securities and Futures Limited on November 1, 2023.

 Alpha Information Services (Shenzhen) Co.,
Ltd

 On October 30, 2023, Future FinTech (Hong Kong)
Limited, a wholly owned subsidiary of the Company acquired 100 % equity interest of Alpha Information Services (Shenzhen) Co., Ltd for
$ 210,788 (HKD 1,649,528). The Company is provided information services for FTFT International Securities and Futures Limited. The Company
has changed its name from Alpha Information Services (Shenzhen) Co., Ltd to Future information service (Shenzhen) Co., Ltd on November
3, 2023.

 The following table summarizes the allocation
of estimated fair values of net assets acquired and liabilities assumed:

 Accounts receivable

 $
 1,526,360

 Other current assets

 171,038

 Property, plant and equipment, net

 1,458

 Intangible assets

 127,846

 Right of use assets

 8,875

 Lease liability-current

 ( 8,875
)

 Accounts payable

 ( 4,123,903
)

 Accrued expenses and other payables

 ( 552,484
)

 Net identifiable assets acquired

 $
 ( 2,849,685
)

 Add: goodwill

 172,213

 Total purchase price for acquisition net of $ 4,679,434 of cash

 $
 ( 2,677,472
)

 The Company has included the operating results
of FTFT International Securities and Futures Limited in its consolidated financial statements since the Acquisition Date. US$ 294,437 in
net sales and US$ 88,408 in net income of FTFT International Securities and Futures Limited were included in the consolidated financial
statements for the years ended December 31, 2023.

 The Company has included the operating results
of Future information service (Shenzhen) Co., Ltd in its consolidated financial statements since the Acquisition Date. US$ 1,390 in net
sales and US$ 50,80 in net loss of Future information service (Shenzhen) Co., Ltd were included in the consolidated financial statements
for the years ended December 31, 2023.

 10. LEASES

 The Company's noncancelable operating leases
consist of leases for office spaces and computer processing center. The Company is the lessee under the terms of the operating leases.
For the year ended December 31, 2024, the operating lease cost was $ 0.54 million.

 The Company's operating leases have remaining
lease terms of approximately 28 months. As of December 31, 2024, the weighted average remaining lease term and weighted average discount
rate were 2.33 years and 4.75 %, respectively.

 F- 21

 Maturities of lease liabilities were as follows:

 Operating

 As of December 31, 2024

 Lease

 From January 1, 2025 to December 31, 2025

 $
 349,256

 From January 1, 2026 to December 31, 2026

 165,979

 From January 1, 2027 to March 31, 2027

 31,330

 Total

 $
 546,565

 Less: amounts representing interest

 $
 19,794

 Present Value of future minimum lease payments

 526,771

 Less: Current obligations

 334,017

 Long term obligations

 $
 192,754

 The Company leases office space and equipment
under various short-term operating leases. As permitted by ASC 842, the Company has elected the practical expedient for short-term leases,
whereby lease assets and lease liabilities are not recognized on the balance sheet. Short term leases cost was $ 0.14 million for the year
ended December 31, 2024.

 11. PROPERTY, PLANT AND EQUIPMENT, NET

 Property and equipment consist of the following:

 2024

 2023

 Office equipment, fixtures and furniture

 $
 129,322

 $
 280,461

 Vehicle

 721,562

 730,998

 Leasehold Improvement

 62,339

 108,360

 Subtotal

 913,222

 1,119,819

 Less: accumulated depreciation and amortization

 ( 534,926
)

 ( 561,708
)

 Construction in progress

 2,226,408

 2,259,634

 Impairment

 ( 5,511
)

 ( 5,593
)

 Total

 $
 2,599,194

 $
 2,812,151

 Depreciation expense included in general and administration
expenses for the years ended December 31, 2024 and 2023 was $ 209,254 and $ 201,363 respectively. Depreciation expense included in cost
of sales for the year ended December 31, 2024 and 2023 was $0 and $0, respectively.

 F- 22

 12. INTANGIBLE ASSETS

 Intangible assets consist of the following:

 2024

 2023

 Trademarks

 $

 $

 System and software

 2,702,821

 2,730,549

 Subtotal

 2,703,668

 2,731,396

 Less: accumulated depreciation and amortization

 ( 366,441
)

 ( 311,131
)

 Less: impairment

 ( 1,804,405
)

 ( 1,831,283
)

 Total

 532,822

 588,982

 Amortization expense included in general and administration
expenses for the years ended December 31, 2024 and 2023 was $ 57,035 and $ 57,035, respectively. Amortization expense included in cost of
sales for the years ended December 31, 2024 and 2023 was $ 0 and $ 0, respectively.

 The estimated amortization is as follows:

 As of December 31,

 Estimated
 amortization
 expense

 From January 1, 2025 to December 31, 2025

 $

 From January 1, 2026 to December 31, 2026

 From January 1, 2027 to December 31, 2027

 From January 1, 2028 to December 31, 2029

 From January 1, 2029 to December 31, 2030

 Thereafter

 119,699

 Total

 $
 404,874

 The trading rights of license plates 1 and 2 on
the Hong Kong Stock Exchange have no expiration date and do not require amortization, amount was $ 127,948.

 F- 23

 13. ACCOUNT PAYABLES

 The amount of account payables were consisted
of the followings:

 2024

 2023

 Supply Chain Financing/Trading payment

 $
 347,003

 $
 728,010

 1,872,298

 2,573,705

 Total

 $
 2,219,301

 $
 3,301,715

 14. ACCRUED EXPENSES AND OTHER PAYABLES

 The amount of accrued expenses and other payables
were consisted of the followings:

 2024

 2023

 Legal fee and other professionals

 $
 64,488

 $
 507,765

 Wages and employee reimbursement

 228,721

 493,071

 Provision for legal case

 8,625,308

 8,875,265

 Suppliers

 1,019,978

 507,973

 Accruals

 -

 731,521

 Total

 $
 9,938,495

 $
 11,115,595

 In January 2021, FT Global Capital, Inc. ("FT
Global"), a former placement agent of the Company filed a lawsuit against the Company in the Superior Court of Fulton County, Georgia.
FT Global served the complaint upon the Company in January 2021. In the complaint, FT Global alleges claims, most of which attempt to
hold the Company liable under legal theories that relate back to an alleged breach of an exclusive placement agent agreement between FT
Global and the Company in July 2020 which had a term of three months. FT Global claims that the Company failed to compensate FT Global
for securities purchase transactions between December 2020 and April 2021, pursuant to the terms of the expired exclusive placement agent
agreement. On April 11, 2024, on which date the jury returned a verdict in favor of FT Global and the Court entered a judgment awarding
FT Global $ $ 10,598,380. As of December 31, 2024, the Company has been payment $ 1.97 million.

 15. CONVERTIBLE NOTES PAYABLE

 As of December 31, 2024 and 2023, convertible
debt consisted of the following:

 2024

 2023

 Beginning

 $

 $
 -

 Addition

 -

 Interest expenses

 77,363

 Payment

 -

 -

 Conversion

 ( 625,000
)

 -

 Balance

 $
 553,086

 $

 On December 27, 2023, the Company principal amount of $ 1.10 million
coverable promissory note. Floor Price was $ 0.2272 per share of Common Stock. The Note shall be unsecured. On the date hereof, Company
will reserve 5,000,000 shares of Common Stock from its authorized and unissued Common Stock to provide for all issuances of Common Stock
under the Note (the "Share Reserve"). Lender elects to redeem a portion of the Note in redemption conversion shares. Lender
redemption conversion shares 2,375,434, amount $ 625,000, at a price of $ 0.2631 per share in 2024.

 F- 24

 16. RELATED PARTY TRANSACTION

 As of December 31, 2024, the amount due to the
related parties was consisted of the followings:

 Name

 Note

 Ming Yi

 $
 8,871

 Chief Financial Officer of the Company

 Accrued expenses, interest free and payment on demand.

 Shanchun Huang

 29,036

 Member of the BOD,.,Legal person of FTFT UK Limited

 Accrued expenses, interest free and payment on demand.

 Total

 $
 37,907

 As of December 31, 2024, the amount due from the
related parties was consisted of the followings:

 Name

 Note

 Hu Li

 $
 20,000

 Legal person of Future information service (shenZhen)

 Loan receivables*, interest free and payment on demand.

 Total

 $
 20,000

 During 2024, the Company had the following transactions
with related parties:

 Name

 Note

 JKNDC Limited

 $
 6,933,009

 JKNDC LImited's owner is Tsoi Tsz Leung.

 Consultancy fee

 Nice Talent Partner Limited

 3,000,000

 Controlled by NTAM's BOD CHAN Siu Kei

 Consultancy fee

 As of December 31, 2023, the amount due to the
related parties was consisted of the followings:

 Name

 Note

 Chao Li

 $
 73,893

 Corporate legal representative

 Other payables, interest free and payment on demand.

 Ming Yi

 29,513

 Chief Financial Officer of the Company

 Accrued expenses, interest free and payment on demand.

 Xiaochen Zhao

 Corporate legal representative

 Accrued expenses, interest free and payment on demand.

 Total

 $
 103,530

 As of December 31, 2023, the amount due from the
related parties was consisted of the followings:

 Name

 Note

 Kai Xu

 $
 12,151

 Deputy General Manager of a subsidiary of the Company

 Loan receivables*, interest free and payment on demand.

 Total

 $
 12,151

 During 2023, the Company had the following transactions
with related parties:

 Name

 Note

 JKNDC Limited

 $
 7,664

 JKNDC LImited's owner is Tsoi Tsz Leung.

 Other income, net

 Nice Talent Partner Limited

 459,867

 Controlled by NTAM's BOD CHAN Siu Kei

 Consultancy fee

 *
 The related party transactions have been approved by the Company's Audit Committee.

 F- 25

 17. INCOME TAX

 The Company is incorporated in the United States
of America and is subject to United States federal taxation. The applicable tax rate is 21 % in 2024 and 2023. No provisions for income
taxes have been made, as the Company had no U.S. taxable income for the years ended December 31, 2024 and 2023. For the years ended December
31, 2024 and 2023, the Company had current income tax expenses of nil, respectively.

 The Company evaluates the level of authority for
each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures
the unrecognized benefits associated with the tax positions. For the year ended December 31, 2024, the Company had no unrecognized tax
benefits. Due to uncertainties surrounding future utilization, the Company estimates there will not be sufficient future income to realize
the deferred tax assets for certain subsidiaries.

 The amount of unrecognized deferred tax liabilities
for temporary differences related to the dividend from foreign subsidiaries is not determined because such determination is not practical.

 The Company has not provided deferred taxes on
undistributed earnings attributable to its PRC and Hong Kong subsidiaries as they are to be permanently reinvested.

 The Company had no material adjustments to its
liabilities for unrecognized income tax benefits according to the provisions of ASC Topic 740, Income Taxes. Since the Company intends
to reinvest its earnings to further expand its businesses in mainland China, its PRC subsidiaries do not intend to declare dividends to
their immediate foreign holding companies in the foreseeable future. Accordingly, the Company has not recorded any deferred taxes in relation
to US tax on the cumulative amount of undistributed retained earnings since January 1, 2008.

 Effective on January 1, 2008, the PRC Enterprise
Income Tax Law, EIT Law, and Implementing Rules imposed a unified enterprise income tax rate of 25 % on all domestic-invested enterprises
and foreign-invested enterprises in the PRC, unless they qualify under certain limited exceptions. The tax rate for pre-tax profits below
RMB 1 million to RMB 3 million is 5 %; the tax rate for pre-tax profits between RMB 1 million to RMB 3 million is 10 %. Other Subsidiaries
and VIE were subject to an enterprise income tax rate of 25 %.

 Each of Future Fin-Tech (Hong Kong) Limited, QR
(HK) Limited and Nice Talent Asset Management Limited is incorporated in Hong Kong and is subject to Hong Kong Profits Tax on the taxable
income as reported in its statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. The applicable tax rate
below HKD 2 million is 8.5 %, exceeding HKD 2 million is 16.5 % in Hong Kong.

 FTFT UK Limited is incorporated in United Kingdom
and is subject to United Kingdom Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance
with relevant United Kingdom tax laws. The applicable tax rate is 19 % in United Kingdom.

 FTFT Capital Investments L.L.C is incorporated
in Dubai, United Arab Emirates. The applicable tax rate is nil in Dubai, United Arab Emirates.

 Digipay Fintech Limited is incorporated in British
Virgin Island. The applicable tax rate is nil in British Virgin Island.

 Significant components of the provision for income
taxes are as follows:

 2024

 2023

 Current tax

 $
 -

 $
 -

 Deferred tax - book-tax difference

 -

 7,833

 The provision for income taxes

 $
 -

 $
 7,833

 Reconciliation of the differences between the
statutory EIT rate applicable to profits of the consolidated entities and the income tax expenses of the Company:

 2024

 2023

 Loss before taxation

 $
)

 $
 ( 32,819,570
)

 Notional tax on profit before CIT and Hong Kong

 Computed expected tax expense

 ( 8,558,461
)

 ( 8,204,893
)

 Others, primarily the difference in tax rates

 ( 13,628,152
)

 6,545,297

 Deferred tax assets losses not recognized

 22,186,612

 1,659,596

 Total

 $
 -

 $
 -

 F- 26

 18. IMPAIRMENT LOSS

 The Company recorded nil of impairment loss in
the year ended 2024.

 The Company recorded $ 14.16 million of impairment
loss in the year ended 2023 relating to the short - term investments $ 12,633 and impairment of goodwill $ 14.15 million.

 Future Private Equity Fund Management (Hainan)
Co., Ltd. invested $ 1.83 million (RMB 13,000,000) to entrust Shanghai Yuli Enterprise Management Consulting Firm to invest in various types
of investment portfolios. The Company may still suffer significant impairment loss or downward adjustments of our investments in the future,
due to the potential worsening global economic conditions and the recent disruptions to, and volatility in, the continuing low market
price of shares caused the Company to recognize a fair-value loss in 2023. According to the market value, the Company's balance
of the short - term investments was $ 12,633 on December 31, 2023.

 Goodwill represents the excess of the cost over
the net tangible and identified intangible assets of acquired businesses. The Company evaluate goodwill for impairment annually as of
the first day of our fiscal fourth quarter, or more frequently if events or changes in circumstances indicate the carrying value of goodwill
may not be recoverable. Based on the impairment analysis performed in the fourth quarter. The Company recorded $ 14.15 million of impairment
loss in fiscal year 2023 related with goodwill mainly arose from acquisition of Nice Talent Asset Management Limited, Khyber Money Exchange
Ltd., Alpha International Securities (Hong Kong) Limited and Alpha Information Services (Shenzhen). Goodwill impairment test as of December
31, 2023 using compare the carrying amount of the reporting unit (including goodwill) with its fair value. If the carrying amount exceeds
the fair value, compare the implied fair value of the reporting unit's goodwill with the carrying amount of goodwill. If the carrying
amount of goodwill exceeds the implied fair value, an impairment loss should be recognized.

 19. SHARE BASED COMPENSATION

 On February 1, 2023, the Company has authorized
and approved a 1-for-5 reverse stock split of the Company's authorized shares of common stock from 300,000,000 shares to 60,000,000
shares.

 Statutory reserve

 During the years ended December 31, 2024 and 2023,
the Company collectively attributed nil of retained earnings for their statutory reserves, respectively.

 F- 27

 Restricted net assets

 PRC laws and regulations permit payments of dividends
by the Company's subsidiaries incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with
PRC accounting standards and regulations. In addition, the Company's subsidiaries incorporated in the PRC are required to annually
appropriate 10 % of their net income to the statutory reserve prior to payment of any dividends, unless the reserve has reached 50 % of
their respective registered capital. Furthermore, registered share capital and capital reserve accounts are also restricted from distribution.
As a result of the restrictions described above and elsewhere under PRC laws and regulations, the Company's subsidiaries incorporated
in the PRC are restricted in their ability to transfer a portion of their net assets to the Company in the form of dividends. The restriction
amounted to $ 24,733,624 (RMB 176,144,932) as of December 31, 2024. Except for the above or disclosed elsewhere, there is no other restriction
on the use of proceeds generated by the Company's subsidiaries to satisfy any obligations of the Company.

 Payments-omnibus equity plan

 On July 12, 2022 (the "Grant Date"),
the Compensation Committee of the Board of Directors (the "Board") of the Company granted 3,047,000 shares of common stock
of the Company, par value $ 0.001 (the "Shares"), pursuant to the Company's 2020 Omnibus Equity Plan, to certain officers
and employees of the Company and its subsidiaries (the "Grantees"), including: 800,000 shares to Shanchun Huang, Chief Executive
Officer of the Company; 800,000 shares to Yongke Xue, President of the Company; 100,000 shares to Ming Yi, Chief Financial Officer of
the Company, 547,000 shares to Peng Lei, general manager of a subsidiary of the Company, 300,000 shares to Pang Dong, general manager
of a subsidiary the Company, and 500,000 shares to Kai Xu, Deputy General Manager of a subsidiary of the Company and vice president of
blockchain division of the Company (collectively, the "Grants"). The Grants vested immediately on the Grant Date and each
of the Grantees also entered into an Unrestricted Stock Award Agreement with the Company on July 12, 2022. As the closing price of the
Company stock was $ 0.42 on July 12, 2022, the Company recorded an expense of $ 1.28 million in the third quarter of fiscal year 2022. As
of the date of this report, the Shares have been issued to the Grantees. The share numbers in this Note 22 are pre-reverse stock split
effected on February 1, 2023.

 On October 12, 2023, the Compensation Committee
of the Board of Directors of the Company granted 2,890,000 shares of common stock of the Company, par value $ 0.001, pursuant to the Company's
2023 Omnibus Equity Plan, to certain officers and employees of the Company and its subsidiaries (the "Grantees"). As the closing
price of the Company stock was $ 1.20 on December 23, 2023, the Company recorded an expense of $ 3.47 million in the third quarter of fiscal
year 2023. As of the date of this report, the Shares have been issued to the Grantees.

 On October 4, 2024, the Compensation Committee of the Board of Directors
of the Company granted 2,110,000 shares of common stock of the Company, par value $ 0.001, pursuant to the Company's 2023 Omnibus
Equity Plan, to certain officers and employees of the Company and its subsidiaries (the "Grantees"). As the closing price
of the Company stock was $ 0.318 on October 9, 2023, the Company recorded an expense of $ 0.67 million in the third quarter of fiscal year
2024. As of the date of this report, the Shares have been issued to the Grantees.

 F- 28

 20. COMMON STOCK

 Securities Purchase Agreement

 On December 24, 2020, the Company entered into
a securities purchase agreement with certain purchasers, pursuant to which the Company sold to the purchasers in a registered direct offering,
an aggregate of 4,210,530 units, each consisting of one share of our common stock and a warrant to purchase 1 share of our Common Stock,
at a purchase price of $ 1.90 per unit, for aggregate gross proceeds to the Company of $ 8,000,007, before deducting fees to the placement
agent and other offering expenses payable by the Company. On December 29, 2020, the Company issued Units consisting of an aggregate of
 4,210,530 shares of our Common Stock and warrants to purchase up to an aggregate of 4,210,530 shares of our Common Stock at an exercise
price of $ 2.15 per share (the "Investors' Warrants"). The Investors' Warrants have a term of five years and are
exercisable by the holder at any time after the date of issuance. In connection with the offering, the Company also issued placement agent
a warrant to purchase 210,526 shares of our Common Stock (the "Placement Agent Warrant") on substantially the same terms
as the Investors' Warrants, except that the Placement Agent Warrant has an exercise price of $ 2.375 per share and are not exercisable
until June 24, 2021. December 31, 2023 and 2024, outstanding warrant has 210,526 shares of our Common Stock. Warrants after 1-Furu-5 reverse stock split was 42,108 shares.

 Underlying Shares

 Weighted Average Exercise Price

 Weighted Average Term (Years)

 Options outstanding at December 31, 2023

 $
 2.375

 1.00

 Granted

 -

 -

 -

 Forfeited

 -

 -

 -

 Cancelled

 -

 -

 -

 Options outstanding at December 31, 2024

 $
 2.375

 1.00

 Options exercisable at December 31, 2024

 $
 2.375

 1.00

 On August 6, 2021, the Company, through its wholly
owned subsidiary Future FinTech (Hong Kong) Limited., completed its acquisition of 90 % of the issued and outstanding shares of Nice Talent
Asset Management Limited from Joy Rich Enterprises Limited (the "Nice Shares") for HK$ 144,000,000 (the "Purchase Price")
which shall be paid in the shares of common stock of the Company (the "Company Shares"). 60 % of the purchase price ($ 11.22
million) was paid in 2,244,156 shares of common stock of the Company on August 4, 2021, at a price of $ 5 per share. 40 % of the Purchase
Price ($ 7.39 million) was paid in 299,221 shares of common stock of the Company on October 17, 2023.

 On January 5, 2024, the Company entered into
a securities purchase agreement with certain purchasers identified on the signature page thereto, pursuant to which the Company
sold to the purchasers in a private placement, an aggregate of 2,150,536 share of its common stock, par value $ 0.001 per share at a purchase
price of $ 1.20 per share, for aggregate net proceeds to the Company of $ 2,580,644. On January 18, 2024, the Company issued 2,150,536
shares of common stock pursuant to this Agreement.

 Common stocks issued in connection with the convertible notes

 On December 27, 2023, the Company entered into
a Securities Purchase Agreement with Streeterville Capital, LLC, a Utah limited liability company (the "Lender"), pursuant
to which the Company sold and issued to the Lender a Convertible Promissory Note (the "Note") in the principal amount of $ 1,100,000.

 On July 3, 2024, that Lender elects to redeem
a portion of the Note in redemption conversion shares. Lender redemption conversion shares 136,649, amount $ 50,000, at a price of
$ 0.3659 per share.

 On July 18, 2024, that Lender elects to redeem
a portion of the Note in redemption conversion shares. Lender redemption conversion shares 217,139, amount $ 75,000, at a price of
$ 0.3454 per share.

 On August 26, 2024, that Lender elects to redeem
a portion of the Note in redemption conversion shares. Lender redemption conversion shares 408,329, amount $ 100,000, at a price
of $ 0.2449 per share.

 On October 24, 2024, that Lender elects to redeem
a portion of the Note in redemption conversion shares. Lender redemption conversion shares 390,625, amount $ 100,000, at a price
of $ 0.256 per share.

 On November 11, 2024, that Lender elects to redeem
a portion of the Note in redemption conversion shares. Lender redemption conversion shares 390,625, amount $ 100,000, at a price
of $ 0.256 per share.

 On November 14, 2024, that Lender elects to redeem
a portion of the Note in redemption conversion shares. Lender redemption conversion shares 393,855, amount $ 100,000, at a price
of $ 0.2539 per share.

 On December 18, 2024, that Lender elects to redeem
a portion of the Note in redemption conversion shares. Lender redemption conversion shares 438,212, amount $ 100,000, at a price
of $ 0.2282 per share.

 The share numbers in this Note 22 are pre-reverse
stock split effected on February 1, 2023.

 F- 29

 21. DISCONTINUED OPERATIONS

 On June 16, 2023, QR (HK) Limited was dissolved
and deregistered.

 On December 5, 2023, FTFT PARAGUAY S.A. was dissolved.

 On March 7, 2024, Chain Cloud Mall Network and
Technology (Tianjin) Co., Limited was dissolved and deregistered.

 On September 4, 2024, Tianjin Future Private Equity
Fund Management Partnership (Ltd Partnership) was dissolved and deregistered.

 On October 18, 2024, Nice Talent Asset Management
Limited was disposed of for a consideration of USD 0.31 million (HKD 2.40 million).

 On December 6, 2024, FTFT SuperComputing
Inc. was disposed of for a consideration of USD 1.97 million.

 Loss from discontinued operations for fiscal years
2024 and 2023 was as follows:

 2024

 2023

 Revenue

 $
 -

 $
 13,168,348

 Cost – third party

 -

 8,423,457

 Cost – related party

 -

 978,801

 Gross profit

 -

 3,766,090

 OPERATING EXPENSES:

 General and administrative

 -

 4,211,836

 Research and Development expenses

 -

 2,577

 Selling expenses

 -

 310,737

 Bad debt provision

 -

 70,955

 Total

 -

 4,596,105

 OTHER INCOME (EXPENSE)

 Interest income

 -

 30,655

 Interest expense

 -

 Other expense

 -

 ( 780,899
)

 Total

 -

 ( 750,244
)

 Loss from discontinued operations before income tax

 -

 ( 1,580,259
)

 Income tax provision

 -

 5,281

 Loss from discontinued operation before noncontrolling interest

 $
 -

 ( 1,574,978
)

 Gain on disposal of discontinued operations

 1,054,155

 386,482

 Less: Net loss attributable to non-controlling interests

 ( 190,840
)

 ( 108,046
)

 LOSS FROM DISCONTINUED OPERATION

 $

 $
 ( 1,080,450
)

 The major components of assets and liabilities
related to discontinued operations are summarized below:

 2024

 2023

 Cash and cash equivalents

 $
 -

 $
 1,619,413

 Accounts receivable

 -

 1,296,065

 Other receivables

 -

 2,459,259

 Advances to suppliers and other current assets

 -

 399,827

 Property, plant and equipment, net

 -

 1,767,037

 Right of use assets - operation lease

 -

 834,076

 Total assets related to discontinued operations

 $
 -

 $
 8,375,677

 Accounts payable

 $
 -

 $
 18,346

 Accrued expenses and other payables

 -

 881,886

 Advances from customers

 -

 2,604

 Amount Due to Related Party

 -

 401,516

 Lease liability - operation lease

 -

 145,468

 Lease liability - operation lease non-current

 -

 690,819

 Total liabilities related to discontinued operations

 $
 -

 $
 2,140,639

 F- 30

 22. SEGMENT REPORTING

 In its operation of the business, management,
including our chief operating decision maker, who is our Chief Executive Officer, reviews certain financial information, including segmented
internal profit and loss statements prepared on a basis consistent with GAAP. The Company operates in three segments: supply chain financing service
and trading business, asset management service and others.

 The Company began to provide supply chain financing
services during the second quarter of 2021. The Company began to provide sand and steel supply chain financing services during the first
quarter of 2023. The Company began to provide brokerage services during the October 2023.

 Some of our operation might not individually meet
the quantitative thresholds for determining reportable segments and we determine the reportable segments based on the discrete financial
information provided to the chief operating decision maker. The chief operating decision maker evaluates the results of each segment in
assessing performance and allocating resources among the segments. Since there is an overlap of services and products between different
subsidiaries of the Company, the Company does not allocate operating expenses and assets based on the product segments. Therefore, operating
expenses and asset information by segment are not presented. Segment profit represents the gross profit of each reportable segment.

 For fiscal year 2024:

 Supply
 Chain
 Financing/
 Trading

 Total

 Reportable segment revenue

 $
 983,246

 $
 870,864

 $
 304,015

 $
 2,158,125

 Inter-segment loss

 -

 -

 -

 -

 Revenue from external customers

 983,246

 870,864

 304,015

 2,158,125

 Segment gross profit

 $
 163,892

 $
 813,747

 $
 294,378

 $
 1,272,017

 For fiscal year 2023:

 Supply
 Chain
 Financing/
 Trading

 Total

 Reportable segment revenue

 $
 20,769,323

 $
 298,505

 $
 629,377

 $
 21,697,205

 Inter-segment loss

 -

 -

 -

 -

 Revenue from external customers

 20,769,323

 298,505

 629,377

 21,697,205

 Segment gross profit

 $
 465,020

 $
 294,437

 $
 362,148

 $
 1,121,605

 F- 31

 Loss from Continuing Operations before Income Tax:

 For the Years Ended,

 2024

 2023

 Supply chain financing/trading

 3,753,106

 848,031

 581,483

 206,030

 4,340,920

 636,436

 Corporate and Unallocated

 26,830,350

 32,250,678

 Total operating expenses and other expense

 35,505,859

 33,941,175

 Loss from Continuing Operations before Income Tax

)

 ( 32,819,570
)

 Segment assets:

 2024

 2023

 Supply chain financing/trading

 5,717,948

 12,437,136

 5,066,369

 5,088,522

 13,252,693

 14,062,310

 Corporate and Unallocated

 1,865,928

 23,117,744

 Assets related to discontinued operation

 -

 6,235,038

 Total assets

 25,902,938

 60,940,750

 Assets subject to attribution to business segments
largely include property, plant and equipment, receivable and right of use assets. All other items are reflected in Corporate and Unallocated.

 23. COMMITMENTS AND CONTINGENCIES

 Legal case with FT Global Litigation

 In January 2021, FT Global Capital, Inc. ("FT
Global"), a former placement agent of the Company filed a lawsuit against the Company in the Superior Court of Fulton County, Georgia.
FT Global served the complaint upon the Company in January 2021. In the complaint, FT Global alleges claims, most of which attempt to
hold the Company liable under legal theories that relate back to an alleged breach of an exclusive placement agent agreement between FT
Global and the Company in July 2020 which had a term of three months. FT Global claims that the Company failed to compensate FT Global
for securities purchase transactions between December 2020 and April 2021, pursuant to the terms of the expired exclusive placement agent
agreement. Allegedly, the exclusive placement agent agreement required the Company to pay FT Global for capital received during the term
of the agreement and for the 12-month period following the termination of the agreement involving any investors that FT Global introduced
and/or wall-crossed to the Company. However, the Company believes the securities purchase transactions at issue did not involve the one
investor which FT Global introduced or wall-crossed to the Company during the term of the agreement. FT Global claims approximately $ 7,000,000
in damages and attorneys' fees.

 F- 32

 The Company timely removed the case to the United
States District Court for the Northern District of Georgia (the ("Court") on February 9, 2021 based on diversity of jurisdiction.
On March 9, 2021, the Company filed a motion to dismiss based on FT Global's failure to state a claim which is pending before the
Court. On November 10, 2021, the Court entered an Order granting the Company's motion to dismiss FT Global's fraud claim and
breach of contract claim as to the disclosure of its confidential and proprietary information. The Court denied the Company's motion
to dismiss FT Global's i) breach of contract claim for failure to pay FT Global pursuant to the terms of the exclusive placement
agent agreement; ii) claim for breach of the covenant of good faith and fair dealing; and iii) claim for attorney's fees, and the
court concluded that additional information can be obtained through discovery. On October 12, 2022, the Company filed a motion for summary
judgment on all claims asserted by FT Global in this lawsuit. On November 2, 2022, FT Global filed its opposition to the Company's
motion for summary judgment. On November 16, 2022, the Company filed its reply in support of its motion for summary judgment on all claims
asserted by FT Global in this lawsuit. On August 31, 2023, the Court entered an Order denying the Company's motion for summary judgment.
The trial began on April 8, 2024 and ended on April 11, 2024, on which date the jury returned a verdict in favor of FT Global. On April
11, 2024, the Court entered a judgment awarding FT Global $ 8,875,265.31 and on April 16, 2024, the Court issued an amended judgment, awarding
FT Global $ 10,598,379.93, which includes $ 7,895,265.31 in damages, $ 1,723,114.62 in prejudgment interest, and $ 980,000.00 in attorney's
fees.. On May 9, 2024, the Company filed a post-trial motion to set aside the jury verdict and for a new trial and the Court denied
the motion on March 3, 2025. The Company filed notice of appeal to appeal the judgement to the United States Court of Appeals for the
Eleventh Circuit on April 2, 2025 and the Company will continue to vigorously defend the action against FT Global.

 FT Global has registered the Court's judgment
in the United States District Court for Southern District of New York ("NY Court"), where FT Global has brought a motion requiring
the Company to turn over its stock in its subsidiary companies. The Company has filed an opposition to the motion, arguing that
according to the New York statute the NY Court should first determine that the value of the stock in the subsidiary is insufficient to
satisfy the judgment as the Company believe the request for turnover is premature before a valuation hearing. On August 28, 2024, NY Court
granted FT Global's motion for turnover of Defendant's shares in Defendant's wholly-owned subsidiaries as Defendant
1) failed to satisfy the $ 10.8 million judgment rendered in the Northern District of Georgia and registered in the Southern District of
New York, and 2) is in possession of money and property in which it has an interest. The NY Court ordered Defendant shall turn over the
shares, membership, or limited partnership interests in all of its subsidiaries, and the corporate seals of its China and Hong Kong-based
subsidiaries, to the U.S. Marshal for auction or sale until the judgment is satisfied. Pursuant to the order issued by the United States
District Court for the Southern District of New York on August 28, 2024, the United States Marshal for the Southern District of New York
("U.S. Marshal") sold the securities of the subsidiaries of the Company other than those in Hong Kong and China in auction of:
(i) all of the membership interests in Future Fintech Digital Capital Management LLC; (ii) all of the outstanding shares of FTFT UK Limited;
(iii) the corporate seal of DigiPay FinTech Limited; (iv) the corporate seal of GlobalKey SharedMall Limited; (iv) all of the outstanding
shares of Future Fintech Labs Inc.; and (v) all of the outstanding shares of Future Fintech Digital Number One GP, LLC (USA) to Alec Orudjiev,
the general counsel of FT Global for $ 25,000 on December 18, 2024. On December 6, 2024, the Company agreed to sell all issued and outstanding
shares of FTFT SuperComputing Inc. a wholly owned subsidiary of the Company ("FTFT SuperComputing") to DDMM Capital LLC (the
"Buyer") for a purchase price that equals to: (i) the assumption of the obligations of FTFT SuperComputing totaling $ 973,072.24
and (ii)$ 1,000,000, which was paid to an account at Olshan Frome Wolosky LLP to satisfy, in part, the right of payment held by FT Global
Capital, Inc. arising from the judgment entered in favor of FT Global and against the Company registered in the Southern District of New
York and all matters pertaining to such litigation. The Company has appealed the turnover order of the NY Court for the auction of securities
of the subsidiaries of the Company in Hong Kong and China to the United States Court of Appeals for the Second Circuit and is waiting
for the final decision of the Court of Appeals. On February 6, 2025, FT Global filed a motion ("Motion") in the NY Court,
amended on February 12, 2025, seeking a turnover order for 39,825,939 (before 1 for 10 reverse split) unissued shares of the Company's
common stock for sale to satisfy the judgement. The amended motion directs the requested relief not only at the Company but also
at Transhare Corporation, the Company's Florida-based transfer agent. The Company believes the Motion lacks merit, as the issuance
of unissued shares in this manner would violate corporate governance principles, Florida corporate law, and federal securities regulations.
 The Company has opposed the Motion, which is now fully briefed and awaits decision by the NY Court.

 F- 33

 Shareholders Lawsuit
(LaBelle and Janzen)

 The LaBelle case is
a putative securities class action filed in January 2024 and is pending in the District of New Jersey. Denise LaBelle ("Plaintiff")
alleges that the Company and certain of its officers violated Sections 10(b) and 20(a) of the Securities Exchange Act by making materially
false or misleading statements in the company's public filings and disclosures relating to the former Chief Executive Officer of
the Company Mr. Shanchun Huang and charges filed by the SEC against Mr. Shanchun Huang with manipulative trading in the stock of the
Company using an offshore account shortly before he became the Company's CEO in 2020 and failing to disclose his beneficial ownership.
Mr. Huang has denied the allegations of trading before he became CEO. Plaintiff claims that these alleged misstatements caused the
Company's stock to trade at artificially inflated prices, harming investors when the truth was revealed. The lead plaintiff
and lead counsel were appointed in September 2024. The Company was served in September 2024, and the Plaintiff is currently seeking
substituted service on the individual defendants. Once service is resolved, the Plaintiff is expected to file an amended complaint,
which the Company and other defendants intend to move to dismiss.

 The Janzen action is
a consolidated shareholder derivative case filed by Jeff Janzen on May 31, 2024, also pending in the District of New Jersey, brought
nominally on behalf of Future FinTech. Plaintiff alleges that certain current and former officers and directors breached fiduciary
duties by allowing or failing to prevent the same alleged misconduct at issue in LaBelle, including mismanagement and misleading public
disclosures. The derivative case has been stayed by stipulation, pending resolution of the anticipated motion to dismiss in LaBelle,
but plaintiff has reserved the right to participate in mediation and settlement discussions relating to the class action.

 24. RISKS AND UNCERTAINTIES

 PRC Regulations

 There are substantial uncertainties regarding
the interpretation and application of PRC laws and regulations including, but not limited to, the laws and regulations governing our business
and the enforcement and performance of our arrangements with customers in certain circumstances. We are considered foreign persons or
foreign funded enterprises under PRC laws and, as a result, we are required to comply with PRC laws and regulations related to foreign
persons and foreign funded enterprises. These laws and regulations are sometimes vague and may be subject to future changes, and their
official interpretation and enforcement may involve substantial uncertainty. The effectiveness of newly enacted laws, regulations or amendments
may be delayed, resulting in detrimental reliance. New laws and regulations that affect existing and proposed future businesses may also
be applied retroactively. We cannot predict what effect the interpretation of existing or new PRC laws or regulations may have on our
business.

 Customer concentration risk

 For the year ended December 31, 2024, two customers
accounted for 35.86 % and 13.57 % of the Company's total revenues. For the year ended December 31, 2023, one customer accounted for
 85.84 % of the Company's total revenues.

 Vendor concentration risk

 For the year ended December 31, 2024, one vendor
accounted for 90.77 % of the Company's total purchases. For the year ended December 31, 2023, one vendor accounted for 87.58 % of
the Company's total purchases.

 25. SUBSEQUENT EVENTS

 The Company has evaluated subsequent events through
the date of the issuance of the consolidated financial statements and no subsequent event is identified.

 F- 34

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