Lion Group (LGHL) Investor Presentation summary

Company overview and business highlights

• Operates a global one-stop investment platform offering TRS, CFD, OTC stock options, and futures/securities brokerage services.

• Reported $21.1M in total revenue for 2023, with 2,443 revenue-generating customer accounts.

• CFD trading volume surged to 704,764 lots in 2023, up from 116,611 in 2022.

• Nominal value of OTC stock options sold reached $181.5M in 2023, a significant increase from $10.9M in 2022.

Financial performance and segment analysis

• Total revenues rebounded from a $2.47M loss in 2022 to $21.1M in 2023; cash and equivalents rose to $28.95M.

• CFD trading segment revenue grew to $19.3M in 2023, while TRS trading posted a $6.7M loss.

• OTC stock options trading segment reported a $2.34M loss in 2023.

• Futures & securities brokerage revenue declined to $2.57M in 2023.

Market opportunities and growth drivers

• TRS market in China reached $696.2B notional principal in 2023, with rapid expansion and high concentration among top players.

• Northbound stock connect trading is a major driver of A-share market turnover, with northbound trades accounting for over 79% in 2023.

• CFD trading income among top brokers grew at a 19.9% CAGR from 2019-2023, with further 8% CAGR expected through 2025.

• OTC options market in China reached $542.3B notional principal in 2023, with 58.1% of underlying assets in stock indices.