The stock in Lion Group Holding Ltd. (Nasdaq: LGHL) fell.62% Wednesday to $3.65 per share after the company announced its unaudited financial results for the six months ended on June 30, 2020.
The company said revenue for the six months was $6.4 million, down 19.7% year-over-year from $8.0 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.
Lion said that the net income for the first half-year of 2020 was $2.4 million, or 32 cents per ADS, compared with $3.5 million, or 49 cents in the same period of last year.
Chunning Wang, the chief executive officer of Lion, said in today’s announcement, “As the COVID-19 outbreak disrupted business operations around the world in the first half of 2020, our businesses were negatively affected by border closures in particular. Travel restrictions in Hong Kong caused cancellations and prevented management from attending branding, business promotion, and exhibition activities, which limited our opportunities to acquire new customers.”
He added, “Uncertainty surrounding the COVID-19 outbreak is a challenge that our industry, and Lion will continue to navigate in the coming months, especially with recent flare-ups in our operating geographies.”
Looking forward, Lion said it expects revenue for the second half of 2020 to come in between $10 million and $13 million.
Early this month, the company filed its prospectus with the SEC in which Lion has filed to issue 17.8 million ADSs, issuable upon the exercise of warrants, and to resell 6.6 million shares owned by selling shareholders.