Lion Group Tumbles 7% on Declined Revenue

The last year was a loser, but this year Lion expects roaring returns.
Benjamin WangMar 31,2021,20:22

The stock in Lion Group Holding Ltd. (Nasdaq: LGHL) fell 6.81% Wednesday to $4.65 per share after the company announced weaker revenue and lossses for the full year 2020.

The company said revenue for the full year was $10.2 million, down 44.8% year-over-year from $18.5 million. The revenue decrease was due to a decline in market-making commission, futures, and securities brokerage income, as well as a decrease in insurance brokerage income, said the company.

Market-making commission income decreased by 45.2% to $7.0 million from US$12.8 million in the prior year; net loss for 2020 was $3.4 million, or 33 cents per ADS, compared with a net income of $8.2 million, or 49 cents in the same period of last year.

Chunning Wang, the chief executive officer of Lion, said in today’s announcement, “Similar to other companies, our various business segments were adversely affected by the COVID-19 pandemic. Our financial performance is subject to changing global market conditions, particularly the fluctuation and volatility of trading activities on major exchanges worldwide, which resulted in decreases in revenue and margins for Lion this year. Despite these challenges, we made efforts to remain competitive in the industry, largely attributable to our diverse new products and service offerings.”

He added, “As we head into the new year, we remain confident in our long-term strategies and ongoing developments. We expect businesses will return to normal in June this year once large populations have received the vaccine.”

Looking forward, Lion said it expects revenue for the full year of 2021 to grow by 260% to 300% to reach between $37 million and $41.7 million.

Early this month, the company said it will cooperate with Constant Epoch Technology Development and Ruoxi to form Skyline I Acquisition Corp., a SPAC company.

Last month, the company announced a strategic partnership with Grandshores Technology. Lion hired Grandshores as a consultant to provide blockchain technology support, advice on operations, and consulting services in operating digital asset trading platforms, said the company.

Topics:Lion Group; China; U.S.
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