NEXT TECHNOLOGY HOLDING INC (FORMERLY KNOWN AS WETRADE GROUP INC) FORM 10-K FOR THE FISCAL YEAR ENDED DECEMBER 31, 2024
The report is an annual report filed by Next Technology Holding Inc. (formerly Wetrade Group Inc.) with the Securities and Exchange Commission (SEC) for the fiscal year ended December 31, 2024. The company is a smaller reporting company and has not filed reports required by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months. The report does not contain disclosure of delinquent filers. The company’s aggregate market value of voting and non-voting common equity held by non-affiliates was $26,003,894.23 as of June 28, 2024, and as of March 27, 2025, there were 436,265,135 shares of common stock outstanding.
Overview
Next Technology Holding Inc (Formerly known as “WeTrade Group Inc”) was incorporated in the State of Wyoming on March 28, 2019. The company currently pursues two corporate strategies: providing software development services and acquiring and holding Bitcoin.
Software development
Next Technology Holding provides AI-enabled software development services to its customers, including developing, designing, and implementing various SaaS software solutions for businesses of all types, including industrial and other businesses.
Bitcoin Acquisition Strategy
Next Technology Holding’s Bitcoin acquisition strategy generally involves acquiring Bitcoin with its liquid assets that exceed working capital requirements. The company views its Bitcoin holdings as held for trading and expects to continue accumulating Bitcoin, though it has not set a specific target for the amount it seeks to hold. The company may periodically sell Bitcoin for general corporate purposes, enter into additional capital raising transactions collateralized by its Bitcoin holdings, and consider pursuing additional strategies to create income streams or generate funds using its Bitcoin holdings. The company believes Bitcoin offers the opportunity for appreciation in value due to its limited supply and has the potential to serve as a hedge against inflation in the long term.
Change of Officer and Director
On January 31, 2024, Mr. Liu Wei Hong was appointed as the chief executive officer of the company. On August 12, 2024, Mr. Tian Yang was appointed as a director of the company and Chair of the Audit Committee, replacing Mr. Lim Kian Wee. On October 21, 2024, Ms. Eve Chan was appointed as the Chief Financial Officer, replacing Mr. Ken Tsang.
As of the end of 2024, the company’s board of directors and committees are as follows:
- Mr. Lichen Dong is the Chairman of the Board.
- The Audit Committee is composed of all four independent directors (Lichen Dong, Tian Yang, Mahesh Thapaliya and Jianbo Sun), with Tian Yang as the Chair.
- The Nominating Committee is composed of all four independent directors, with Lichen Dong as the Chair.
- The Compensation Committee is composed of all four independent directors, with Jianbo Sun as the Chair.
Result of Operations
The following tables provide a comparison of the company’s results of operations for the fiscal years ended December 31, 2024 and 2023:
Results of Operations for the fiscal years ended December 31, 2024 and 2023
| Metric | 2024 | 2023 (Restated*) |
|---|---|---|
| Service revenue | $1,800,000 | $2,500,000 |
| Cost of revenue | $(730,000) | $(1,070,864) |
| Gross Profit | $1,070,000 | $1,429,136 |
| General and administrative expenses | $(1,086,804) | $(2,666,238) |
| Total operating expenses | $(1,086,804) | $(2,666,238) |
| Loss from operations | $(16,804) | $(1,237,102) |
| Impairment of long-term investment | $(13,396,000) | - |
| Other income | $43,190,557 | $4,387,976 |
| Income before income taxes | $29,777,753 | $3,150,874 |
| Income tax expense | $(8,234,503) | $(130,415) |
| Net income from continuing operation | $21,543,250 | $3,020,459 |
- In July 2024, the company dissolved its subsidiary WeTrade Technology (Shanghai) Co., Ltd. in the PRC, which qualified as a discontinued operation.
Revenue from Operations For the fiscal year ended December 31, 2024 and 2023, total revenue was $1.80 million and $2.50 million, respectively, generated mainly from AI software development and SaaS software solutions for industrial and other business users.
Cost of revenue Cost of revenue mainly consists of staff payroll, system development costs, and outsourcing staff cost for system development, which is in line with the increase in revenue during the period.
General and Administrative Expenses General and administrative expenses decreased from $2.67 million in 2023 to $1.09 million in 2024, primarily due to reductions in compliance fees, annual blockchain consulting fees, and other professional service fees.
Impairment of long-term investment In April 2024, the company acquired 20% of an associate company for $13.40 million. The company has fully provided for impairment losses on this long-term equity investment.
Other income Other income increased from $4.39 million in 2023 to $43.19 million in 2024, primarily due to a $43.18 million gain in the fair value of the company’s Bitcoin holdings.
Income tax expense Income tax expense increased from $0.13 million in 2023 to $8.23 million in 2024, mainly due to the increase in taxable income.
Net income from continuing operation As a result of the factors described above, net income from continuing operation increased from $3.02 million in 2023 to $21.54 million in 2024, primarily due to the gain in fair value of digital assets, offset by the increase in income tax expense and impairment loss of the long-term investment.
Balance Sheet
The following table summarizes the company’s balance sheets as of December 31, 2024 and 2023:
| Metric | December 31, 2024 | December 31, 2023 (Restated*) |
|---|---|---|
| Cash and Cash equivalents | $668,387 | $668,387 |
| Digital Assets | $78,322,430 | $35,137,576 |
| Receivables | $1,800,000 | $1,000,000 |
| Prepayments | $12,125,500 | $12,125,500 |
| Total assets | $92,916,317 | $48,931,463 |
| Accounts payable | $730,000 | $800,000 |
| Amount due to related parties | $972,000 | $1,692,672 |
| Other liabilities | $1,351,752 | $1,730,415 |
| Deferred tax liabilities | $8,234,503 | - |
| Total liabilities | $11,288,255 | $4,223,087 |
| Total stockholders’ equity | $81,628,062 | $44,708,376 |
- In July 2024, the company dissolved its subsidiary WeTrade Technology (Shanghai) Co., Ltd. in the PRC, which qualified as a discontinued operation.
As of December 31, 2024, the company had total assets of $92.92 million, primarily consisting of $78.32 million in digital assets and $13.93 million in other receivables and prepayments. Total liabilities were $11.29 million, including $8.24 million in deferred tax liabilities. Stockholders’ equity was $81.63 million.
Cash Flows
The following table summarizes the company’s cash flows for the years ended December 31, 2024 and 2023:
| Metric | 2024 | 2023 (Restated*) |
|---|---|---|
| Net cash flows used in continued operating activities | $- | $(12,703,077) |
| Net cash flows provided by discontinued operating activities | $- | $32,909,276 |
| Net cash flows provided by operating activities | $- | $20,206,199 |
| Net cash flow used in continued investing activities | $- | $(37,115,500) |
| Net cash flows provided by discontinued investing activities | $- | $4,500,000 |
| Net cash flows used in investing activities | $- | $(32,615,500) |
| Net cash provided by continued financing activities | $- | $13,054,762 |
| Net cash provided by financing activities | $- | $13,054,762 |
| Change in Cash and Cash Equivalents | $- | $645,461 |
| Cash and Cash Equivalents - End of Year | $668,387 | $668,387 |
- In July 2024, the company dissolved its subsidiary WeTrade Technology (Shanghai) Co., Ltd. in the PRC, which qualified as a discontinued operation.
Operating activities Net cash flows used in continued operating activities was nil in 2024, primarily due to net income from continuing operations of $21.54 million, adjusted for fair value gain on digital assets, impairment of long-term investment, and deferred tax expense.
Investing activities The company’s continuing cash flow used in investing activities was nil for the fiscal year ended December 31, 2024.
Financing activities Cash generated from financing activities was nil for the year ended December 31, 2024.
Inflation Inflation does not materially affect the company’s business or the results of its operations.
Critical Accounting Policies The company prepares its financial statements in accordance with generally accepted accounting principles of the United States (GAAP). Key accounting policies include revenue recognition, use of estimates, and accounting for accounts receivable.
Recent Accounting Pronouncements The company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe any of these will have a material impact on the company’s financial statements.
Post-Balance Sheet Events In September 2024, the company entered into an amended Bitcoin trading contract to purchase up to 5,167 Bitcoin over a 12-month period ending September 2025. The company indicated its intent to exercise the option to purchase 5,000 Bitcoin, which it completed on March 12, 2025, issuing shares and warrants as partial payment.
