Cosmos Group Holdings Inc. is a Hong Kong-based company engaged in physical arts and collectibles business, utilizing blockchain and NFT technologies to address provenance, authenticity, and ownership challenges.

# Company Summary - Cosmos Group Holdings Inc.

## Business Focus
- **Primary Business Area:**  
  - Engaged in physical arts and collectibles business, leveraging blockchain and NFT technologies.
  - Uses blockchain to create Digital Ownership Tokens (DOTs) to address provenance, authenticity, and ownership challenges in art and collectibles markets.
  - Provides services including authentication, valuation, certification (AVC), sale and purchase, hire purchase, custody, security, and exhibition of artworks and collectibles.

## Operations and Structure
- **Corporate Structure:**  
  - Nevada holding company, conducts operations through wholly owned subsidiaries based in Hong Kong and other jurisdictions.
  - The subsidiaries store, authenticate, and digitize physical artworks and collectibles, and sell ownership titles as DOTs.
- **Asset Management:**  
  - Stores physical artworks in warehouses; insures stored art pieces.
  - No long-term custody of DOTs or crypto assets; generally adopts a “sell then mint” process.
  - DOTs are minted on Binance Smart Chain and Polygon Chain; subsequent to December 15, 2022, DOTs are obtained from third parties.

## Revenue and Financials
- **Revenue (2024):**  
  - $6,408 from arts and collectibles technology (ACT) segment (mainly from consultancy services).  
  - No revenue from 2023 for ACT segment.
  - Discontinued operations revenue was approximately $51,266 in 2024 and $3,720,298 in 2023.
- **Net Income:**  
  - **2024:** $4,692,389 (net income from continuing operations and discontinued operations combined).  
  - **2023:** -$77,330,993 (net loss).

## Employees
- **Total Employees:** 35 in Hong Kong (0 executive directors, 35 operational management and staff).  
- **Management and Directors:** 3 executive directors and additional consultants.

## Customers
- **Number of Customers:**  
  - As of December 31, 2024, approximately **262 shareholders of record**, but no specific number of end customers provided.
  - No long-term contracts; revenue depends on individual transactions.
  - In 2024, there was one major customer; 2023 had no customer accounting for more than 10% revenue.

## Income
- **2024:**  
  - Large net income driven by other income (interest income, gains).
- **2023:**  
  - Largest reported net loss ($77.3 million).

## Business Model Highlights
- **NFT/Blockchain Technology:**  
  - Creates DOTs as ownership records for physical artwork/collectibles.
  - Addresses provenance, authenticity, and ownership transfer issues.
- **Distribution Channels:**  
  - Traditional sales (institutions, wealthy individuals).  
  - Auction houses (exploring partnerships with Christie’s, Sotheby’s, etc.).  
  - E-commerce via MetaMall platform for buying/selling DOTs.
  - Participation in art exhibitions and events.
- **Services Include:**  
  - Authentication, valuation, certification.  
  - Sale, purchase, hire purchase, custody, exhibition services.
- **Assets:**  
  - Physical artworks stored in warehouses; insured.
  - DOTs represent ownership titles, not custody of crypto assets.

## Current Status
- Recently shifted from a focus on NFT/DOT product development to operational sales.
- Business impacted by shifts in regulatory landscape, with reliance on third-party DOT sources post-December 2022.
- Revenue generation is minimal but large net income in 2024 suggests gains from other income sources.  
- Significant net loss in 2023 reflects discontinued operations and expenses.

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**Note:** The company primarily operates in Hong Kong, with legal and regulatory risks related to its structure and technology.

Cosmos Group Holdings Inc. is a Nevada holding company operating in art and collectibles as well as the financing sector, with a focus on growth in Asia and globally, leveraging blockchain technology for authentication and ownership of collectibles.

# Cosmos Group Holdings Inc. - Business Overview

## Company Overview
Cosmos Group Holdings Inc. is a Nevada holding company conducting operations through its subsidiaries based in Singapore and Hong Kong. The company primarily engages in two business segments:
1. **Physical Arts and Collectibles Business**
2. **Financing/Money Lending Business**

## Business Segments

### 1. Physical Arts and Collectibles
- **Services Offered**:
  - **Authentication, Valuation, and Certification (AVC)**: The company provides appraisal and valuation of art and collectibles through independent third-party appraisers.
  - **Sale and Purchase Services**: Facilitation of buying and selling physical artworks and collectibles.
  - **Hire Purchase Financing**: Potential option for customers to take possession of artwork while paying in installments.
  - **Custody, Security, and Exhibition (CSE)**: Secure storage, insurance, and exhibition services for artworks.
  
- **Digital Ownership Tokens (DOTs)**: Cosmos utilizes blockchain technology to create DOTs, providing proof of ownership and provenance for each collectible piece. Each DOT contains legal documentation embedded into the blockchain confirming the authenticity of the item.
  
- **Target Market and Customers**: The company focuses on customers in Hong Kong and intends to expand throughout Asia and globally. As of the latest reports, the company does not have customers from the United States.

### 2. Financing/Money Lending
- **Operations**: Conducted through licensed Hong Kong subsidiaries that provide unsecured personal loan financing to private individuals.
  
- **Revenue Generation**: Revenue is generated from interest received from loans provided to private individuals.

## Financial Performance
- **Revenue**: 
  - Did not report significant revenues as they are in the development stage.
  
- **Net Income**: Experienced a net loss of approximately **$25,149,399** for the year ended December 31, 2021, following a net income of **$467,725** in 2020.

- **Current Financial Position**: 
  - As of December 31, 2021, current assets were **$23,981,701** and current liabilities were **$22,748,075**.

## Employee Structure
- The company operates with a small team of **3 executive directors** and **20 consultants**.
  
- **Fulltime Employees**: Approximately **35 employees** in operational management positions.

## Corporate Structure
- The primary executive and registered office is located at **37th Floor, Singapore Land Tower, 50 Raffles Place, Singapore 048623**.

## Conclusion
Cosmos Group Holdings Inc. is strategically positioned in the art and collectibles market, leveraging blockchain technology to enhance customer experience while simultaneously providing lending services through its Hong Kong-based subsidiaries. The company is focused on growth with aspirations of expanding its client base and revenue streams while navigating the complexities of financial viability in a competitive and evolving market.

Cosmos Group Holdings Inc.

10-K / April 15, 2025

10-K / April 16, 2024

10-K / April 15, 2025

Company Summary - Cosmos Group Holdings Inc.

Business Focus

Operations and Structure

Revenue and Financials

Employees

Customers

Income

Business Model Highlights

Current Status