Lion Group Holding Ltd.

LGHL, or Lion Group Holding Company Limited, operates as a one-stop trading platform operator and an innovator in financial technology product development, building a highly diversified business system. Financial product trading services: Providing Total Return Swap (TRS) trading, where clients inject principal, and Lion Group provides financing based on the agreed leverage ratio, assisting clients in buying and selling stocks within a specified range. Clients reap the investment returns from stocks amplified by leverage, while the group earns funding returns. For example, in the Stock Connect business, clients can trade A-shares, expanding their investment scope. At the same time, the group's Contract for Difference (CFD) trading is globally leading, offering clients a rich variety of trading targets, covering stocks, indices, foreign exchange, commodities, etc. Investors can profit by predicting price fluctuations. Additionally, futures and securities brokerage services are also offered, leveraging abundant licensing resources to enable clients to conveniently participate in futures and securities trading across multiple global markets, such as participating in stock trading in the Hong Kong and U.S. securities markets through its platform. Innovative Financial Services: In the SPAC field, Lion Group has a professional and experienced management team that assists private companies in going public, providing comprehensive services from initial planning to listing operations, while also generating profits for itself. For example, it successfully helped a tech startup enter the capital market through the SPAC method. In the emerging over-the-counter individual stock options business, Lion Group is developing rapidly. Utilizing advanced electronic trading platforms ensures transparent and efficient trading, while a professional risk control team monitors and assesses market risks in real-time to ensure the safety of investor transactions. It also offers personalized services to clients, such as options portfolio design and risk management consulting. Financial Technology Research and Application: The group focuses on the research and development of financial technology. Its intelligent investment advisory robot "LionAI" has entered the internal testing phase. In the future, it will provide customers with artificial intelligence services such as digital virtual humans, intelligent financial Q&A, and intelligent customer service robots, applied to core business sectors such as insurance, securities, and wealth management. This will enable smart functions like intelligent account opening, payment, investment underwriting, stock selection and diagnosis, and asset allocation, enhancing customer service experience and investment decision-making efficiency. Emerging Field Layout: Lion Group is actively laying out its presence in the metaverse and NFT sectors. Its subsidiary has independently developed and operates a one-stop NFT trading platform, launching a metaverse language NFT project based on the works of Chinese artist Xu Bing, generating revenue through online auctions and blind box sales. Its metaverse project employs a unique underlying architecture to build a user-driven value system, where creators own the sub-universe, and participants can create intrinsic economic value. In 2024, the group also announced a strategic investment in Hong Kong Agunua Technology Co., Ltd., intending to gain exclusive operating rights to the Solomon International Green Asset Exchange (SIGX), entering the carbon finance market to provide carbon finance products and services to clients.

Transaction fees and commission income: In TRS trading, the Lion Group charges transaction commissions. In contracts for difference (CFD) trading, futures, and securities brokerage, a certain percentage of fees is charged to clients based on the transaction amount or the number of transactions. As the trading scale expands and the number of clients increases, fee income steadily grows. For example, in 2023, the fee income from futures and securities brokerage reached [X] million dollars. In the over-the-counter options business, transaction fees are charged to clients for providing options trading services. In the fourth quarter of 2023, the income from the over-the-counter options business reached 8 million dollars (unaudited). Capital gains: In the TRS business, the group generates capital gains through leveraged funding provided to clients. In the client loan business, interest fees and lending spreads are charged. For example, providing large-scale funding services to a major corporate client can yield considerable capital gains. Value-added services and project revenue: Providing clients with personalized services such as options portfolio design and risk management consulting for a fee. In the SPAC business, obtaining corresponding service fees and investment returns after successfully helping private companies go public. In the operation of the NFT trading platform, generating profits through transaction commissions, project collaborations, and other means. For example, in popular NFT project transactions, the platform takes a [X]% transaction fee from each trade. If the investment in Agunua Technology progresses smoothly, there is potential to generate revenue from the operation of the carbon credit electronic trading platform in the future.

Transaction fees and commission income model: It brings continuous and stable cash flow to the company, ensuring daily operations and business expansion. Stable income can be invested in technology research and development, optimizing the trading platform, improving trading efficiency and security, attracting more customers, forming a virtuous cycle, and enhancing competitiveness in the financial trading service sector. Capital income model: Fully utilize the company's financial resources and licensing advantages to achieve capital appreciation. At the same time, provide financing services to clients, meet market investment demands, and promote the flow and allocation of funds in the financial market. Value-added services and project revenue models: On one hand, meet the diverse and specialized service needs of customers, enhancing customer loyalty and satisfaction; on the other hand, explore new business areas, create new profit growth points, promote the diversified development of the company's business, and enhance the company's overall strength and market influence. By laying out in emerging fields such as the metaverse, NFTs, and carbon finance, align with industry development trends, and lay the foundation for the company's long-term future development.

Mainstream cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH): If the trading platform under the group subsequently expands its cryptocurrency trading services, the platform's trading rules, user numbers, and trading activity will affect the market liquidity and price discovery of mainstream cryptocurrencies like Bitcoin and Ethereum. For example, when the platform attracts a large number of investors to participate in cryptocurrency trading, it may increase the trading volume of Bitcoin and Ethereum, making their price fluctuations more reflective of market supply and demand. Cryptocurrencies related to the metaverse and NFTs: Due to the Lion Group's layout in the metaverse and NFT fields, its business development status affects related cryptocurrencies. In metaverse projects, if the virtual world economic system they build thrives, it may increase the demand and value of cryptocurrencies used for virtual asset transactions. On NFT trading platforms, if trading is active, the usage and value of cryptocurrencies closely related to NFT transactions (such as certain platform native tokens) may also rise.