Press Release: NIP Group Inc. Reports First Half 2025 Unaudited Financial Results

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Positioned for Adjusted EBITDA Profitability in the Second Half of 2025

Strategic Digital Infrastructure Expansion Accelerates Diversified Growth, Targeting 11.3 EH/s Upon Full Deployment by 2026

ABU DHABI, United Arab Emirates, Dec. 02, 2025 (GLOBE NEWSWIRE) -- NIP Group Inc. ("NIP Group" or the "Company") $(NIPG)$, a leading digital entertainment company, today announced its unaudited financial results for the first half of 2025. The period marked a pivotal stage in the Company's transformation, as it realigned and optimized its entertainment portfolio while launching a second growth engine in mining and digital infrastructure, positioning NIP Group for adjusted EBITDA profitability in the second half of 2025 and laying a stronger foundation for sustainable long-term growth.

First Half of 2025 Financial Highlights

   -- Total net revenues for the first half of 2025 increased by 55.5% 
      year-over-year to US$61.2 million, driven by a 110.6% year-over-year 
      increase from talent management services and a 30.1% year-over-year 
      increase in event production, reflecting the success of the Company's 
      ongoing diversification strategy. The first-half results did not include 
      contributions from mining and digital assets operations, which commenced 
      in the second half of 2025. 
 
   -- Net loss for the first half of 2025 was US$136.3 million, compared with 
      US$4.7 million in the same period of 2024, primarily due to non-cash 
      goodwill and intangible asset impairments totaling US$125.9 million 
      associated with Ninjas in Pyjamas' market value adjustments. 
 
   -- Adjusted EBITDA for the first half of 2025, which excludes interest 
      expense, net, income tax (benefit) expense, depreciation and amortization, 
      share-based compensation expense, and goodwill and intangible asset 
      impairment, was negative US$7.1 million, compared with negative US$2.6 
      million in the same period of 2024. 

Strategic and Operational Highlights

Expansion into Digital Infrastructure

NIP Group established its Mining and Digital Assets Division in the second half of 2025, marking its official entry into the digital infrastructure and Bitcoin mining sector. The division embodies the Company's second growth engine, complementing its entertainment portfolio with a scalable source of recurring revenue that also supports the computing power required for NIP Group's next-generation entertainment ecosystem.

In September 2025, the Company completed the acquisition of its first tranche of mining assets ("Tranche 1"), bringing 3.11 exahash per second (EH/s) of installed hash rate online. Building on that success, NIP Group announced a second asset-purchase agreement ("Tranche 2") to significantly expand its total mining capacity. As consideration for both acquisitions, the Company issued a certain number of its Class A ordinary shares to the sellers. The Company expects to close Tranche 2 in December 2025. Once both tranches are fully deployed, total installed mining capacity will reach 11.3 EH/s, positioning NIP Group among the top listed Bitcoin miners globally and the largest in the Middle East.

Based on current Bitcoin network conditions and utilization assumptions, the combined capacity is expected to yield approximately 150(1) Bitcoin per month at full scale, subject to the global network hash rate. This provides meaningful cash-flow visibility and establishes mining as a strong, complementary revenue stream within NIP Group's diversified portfolio.

To lead this division, NIP Group appointed Carl Agren as Chief Operating Officer of Mining and Digital Assets. Mr. Agren brings extensive experience in blockchain infrastructure and AI computing. He previously served as CEO of Phoenix Technology, one of the world's leading blockchain infrastructure operators, and co-founded G42 Cloud (now Core42), the largest AI and cloud-computing company in the Middle East. He will be based in Abu Dhabi, operating from NIP Group's regional headquarters under the Abu Dhabi Investment Office (ADIO) partnership framework.

____________________

(1) The estimated monthly Bitcoin production is based on current network conditions, including assumptions regarding NIP Group's average operating hash rate, network hash rate, mining difficulty, and block rewards. Actual results may vary depending on future changes in these factors.

Entertainment Portfolio Development

In entertainment, NIP Group advanced its diversification strategy, with talent management revenues growing 110.6% year-over-year, driven by expansion in online advertising and promotion services. Event production revenues rose 30.1% year-over-year, reflecting the expansion of its live entertainment footprint with the launch of NIP Culture & Entertainment (Beijing) joint venture and its debut event, the Qianfan Music Season: Wonderland Festival, which drew more than 70,000 attendees, underscoring NIP Group's ability to scale large-format live events.

Meanwhile, esports revenues were temporarily impacted by softer sponsorships and the timing of league confirmation. Revenue associated with league confirmation is expected to be recognized in the second half of 2025. NIP Group's esports sponsorship pipeline has also shown early signs of improvement, providing a healthier foundation for future growth.

The Company implemented cost optimization measures across teams, streamlined operations, and rebuilt its Western esports structure, positioning NIP Group for stronger performance going forward.

Sustainability and Governance

The Company published its inaugural Sustainability Report, highlighting progress in governance, workforce diversity and community engagement. Women represent 47.8% of NIP Group's global workforce, and employees completed over 5,500 hours of professional training in 2024. In November 2025, the Company also adopted its 2025 Share Incentive Plan to enhance retention and better align employee incentives with shareholder interests.

Management Commentary

Mario Ho, Chairman and Co-CEO of NIP Group, commented, "The first half of 2025 was a period of recalibration, rebuilding and disciplined execution for NIP Group. We strengthened our legacy entertainment businesses to improve efficiency and revenue quality, while building our second growth engine in mining and digital infrastructure. We saw strong growth in talent management and continued expansion in event production. In esports, we expect league revenue to be recognized in the second half of the year and our sponsorship pipeline is improving, which provides a healthier foundation for future growth."

Hicham Chahine, Co-CEO of NIP Group, stated, "The establishment of our Mining and Digital Assets Division introduces a new recurring cash flow stream and supports our long-term strategy of building a resilient, diverse ecosystem at the intersection of gaming, entertainment, and next-generation computing. As the first gaming entertainment company to establish a significant digital assets infrastructure presence, our dual-engine strategy uniquely positions NIP Group for scalable growth in the high-demand crypto and AI sectors. We successfully launched our Bitcoin mining operations in September with the acquisition of on-rack mining machines totaling 3.11 EH/s of capacity. With the recently announced second asset-purchase agreement, our total installed capacity will be approximately 11.3 EH/s. At full deployment, this capacity is expected to generate approximately 150 Bitcoins per month, positioning NIP Group among the top public Bitcoin miners globally and the largest in the Middle East. Our immediate priorities are disciplined execution and ramp-up, and we expect to begin seeing the positive financial impact of this division in the coming quarters."

Ben Li, CFO of NIP Group, added, "Our financial results for the first half of 2025 reflect meaningful top-line expansion, with total revenues increasing by 55.5% year-over-year to US$61.2 million, supported by growth in talent management and event production, underscoring the effectiveness of our diversification strategy. During the period, we recorded non-cash goodwill and intangible asset impairments totaling US$125.9 million, reflecting a prudent reassessment of historical valuations with no impact on operations or cash flow. With the launch of our Mining and Digital Assets Division, we are establishing new recurring revenue streams that will enhance profitability over time. Backed by a solid cash position and continued financial discipline, we remain focused on executing our strategy and achieving adjusted EBITDA profitability in the second half of 2025."

First Half of 2025 Financial Results

Total net revenues

Total net revenues were US$61.2 million for the first half of 2025, a year-over-year increase of 55.5% from US$39.3 million in the same period of 2024.

The following table sets forth a breakdown of the Company's net revenues by business segments for the period indicated.

 
                                For the Six Months Ended June 30, 
                             --------------------------------------- 
                                    2024                 2025 
                             -------------------  ------------------ 
                                US$         %        US$        % 
                                (US$ in thousands, except for %) 
Net revenues: 
Esports teams operation           8,781     22.3      3,762      6.2 
Talent management service        21,901     55.7     46,133     75.4 
Event production                  8,662     22.0     11,268     18.4 
                             ----------  -------  ---------  ------- 
Total                            39,344    100.0     61,163    100.0 
 
 
   -- Esports teams operation. Net revenues from esports teams operation during 
      the first half of 2025 were US$3.8 million, representing a change of 
      57.2% from US$8.8 million in the same period of 2024. The decline was 
      primarily due to fewer sponsors and the absence of league revenue share 
      recognition in the first half of 2025 due to a timing change compared 
      with the same period of 2024, as the league only confirms revenue share 
      on a full-year basis in 2025. The related league revenue share is 
      expected to be recognized in the second half of 2025 upon annual 
      confirmation. 
 
   -- Talent management service. Net revenues from talent management services 
      grew by 110.6% to US$46.1 million in the first half of 2025, from US$21.9 
      million in the same period of 2024. The increase was driven by the 
      strategic shift within the Company's talent management service operations 
      to expand its online advertising and promotion services. 
 
   -- Event production. Net revenues from event production increased by 30.1% 
      to US$11.3 million in the first half of 2025, from US$8.7 million in the 
      same period of 2024. The growth was attributed to the Company's expansion 
      of its live entertainment business, particularly the launch of 
      large-scale music festivals. 

Cost of revenues

Cost of revenues for the first half of 2025 was US$62.4 million, compared to US$37.0 million in the same period of 2024.

The following table sets forth a breakdown of the Company's cost of revenues by business segments for the periods indicated.

 
                                For the Six Months Ended June 30, 
                             --------------------------------------- 
                                    2024                 2025 
                             -------------------  ------------------ 
                                US$         %        US$        % 
                                (US$ in thousands, except for %) 
Cost of revenues: 
Esports teams operation           6,019     16.3      5,525      8.8 
Talent management service        23,204     62.7     46,649     74.8 
Event production                  7,757     21.0     10,226     16.4 
                             ----------  -------  ---------  ------- 
Total                            36,980    100.0     62,400    100.0 
 
 
   -- Esports teams operation. Cost of revenues from esports teams 
      operation for the first half of 2025 decreased by 8.2% to US$5.5 million, 
      from US$6.0 million in the same period of 2024. The decline was primarily 
      attributable to roster adjustments for the Company's League of Legends 
      Pro League $(LPL)$ teams under a more disciplined spending strategy, which 
      resulted in a reduction in player salaries. 
 
   -- Talent management service. Cost of revenues from talent management 
      service for the first half of 2025 increased by 101.0% to US$46.6 million, 
      from US$23.2 million in the same period of 2024. The increase was mainly 
      due to higher costs for online advertising and promotion services, 
      generally in line with revenue growth. 
 
   -- Event production. Cost of revenues from event production for the first 
      half of 2025 increased by 31.8% to US$10.2 million from US$7.8 million in 
      the same period of 2024, slightly higher than the segment's revenue 
      growth. 

Gross profit

Gross loss for the first half of 2025 was US$1.2 million, compared with gross profit of US$2.4 million in the same period of 2024. Gross margin for the first half of 2025 was negative 2.0%, compared with 6.0% in the same period of 2024. The decrease in gross profit margin was mainly attributable to the decline in esports teams operation revenues.

   -- Esports teams operation. Gross loss from esports teams was US$1.8 million 
      in the first half of 2025, compared with gross profit of US$2.8 million 
      in the same period of 2024. Gross margin decreased to negative 46.9% in 
      the first half of 2025 from 31.5% in the same period of 2024, primarily 
      due to a decrease in high-margin sponsorships revenues and the absence of 
      league revenue share recognition during the period. 
 
   -- Talent management service. Gross loss from talent management service 
      narrowed to US$0.5 million in the first half of 2025 from gross loss of 
      US$1.3 million in the same period of 2024. Gross margin improved to 
      negative 1.1% in the first half of 2025, from negative 5.9% in the same 
      period of 2024, primarily reflecting a change in revenue mix from the 
      Company's strategic shift to reduce the proportion of lower-margin online 
      live-streaming services. 
 
   -- Event production. Gross profit from event production increased to US$1.0 
      million in the first half of 2025, from US$0.9 million in the same period 
      of 2024. The gross profit margin decreased slightly to 9.2% in the first 
      half of 2025 from 10.5% in the same period of 2024. 

Selling and Marketing Expenses

Selling and marketing expenses for the first half of 2025 were US$3.1 million, representing an increase of 10.8% from US$2.8 million in the same period of 2024. The increase was mainly attributable to increased marketing and promotion expenses for the talent management business.

General and Administrative Expenses

General and administrative expenses for the first half of 2025 increased by 92.1% to US$9.0 million, from US$4.7 million in the same period of 2024. The increase was primarily due to the reinstatement of certain management salaries, higher share-based compensation expenses, and increased professional service fees related to post-listing matters.

Goodwill and Intangible Asset Impairment

The Company recorded non-cash goodwill impairment of US$106.3 million and intangible asset impairment of US$19.5 million in the first half of 2025, primarily associated with the Ninjas in Pyjamas brand. The impairments were recognized following an assessment that reflected Ninjas in Pyjamas' weaker-than-expected performance and a decline in the recoverable amount of its business compared with the assumptions applied at the time of acquisition.

Other loss for the first half of 2025 was US$0.1 million, compared with other loss of US$0.5 million in the same period of 2024. The decrease was primarily due to higher government subsidies in 2025.

Net loss for the first half of 2025 was US$136.3 million, compared with US$4.7 million in the same period of 2024.

Adjusted EBITDA, which is calculated as net loss excluding interest expense, net, income tax (benefit) expense, depreciation and amortization, share-based compensation expenses, and goodwill and intangible asset impairment, was negative US$7.1 million for the first half of 2025, compared with negative US$2.6 million in the same period of 2024.

Cash and cash equivalents

As of June 30, 2025, the Company had cash and cash equivalents of US$10.2 million, compared with US$9.6 million as of December 31, 2024.

Outlook

NIP Group enters the second half of 2025 with enhanced visibility across both entertainment and digital infrastructure operations. The Company expects improvement in revenue and profitability in the second half of 2025 supported by efficiency gains in its entertainment division, ramp-up of its mining capacity and incentive frameworks in Abu Dhabi.

For the second half of 2025, the Company expects to achieve adjusted EBITDA profitability. This outlook reflects the Company's current estimates based on market trends and overall business operations and is subject to change.

Use of Non-GAAP Financial Measures

Adjusted EBITDA is calculated as net loss excluding interest expense, net, income tax (benefit) expense, depreciation and amortization, share-based compensation expense and goodwill and intangible asset impairment. This non-GAAP financial measure is presented to enhance investors' overall understanding of financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measure to the most directly comparable GAAP financial measure. As non-GAAP financial measures have material limitations as analytical metrics and may not be calculated in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measures as a substitute for, or superior to, such metrics prepared in accordance with GAAP.

The following table sets forth a breakdown of non-GAAP financial measures of the Company for the periods indicated.

 
                                      For the Six Months Ended June 30, 
                                   --------------------------------------- 
                                         2024                 2025 
                                   -----------------  -------------------- 
                                          US$                 US$ 
                                      (US$ in thousands, except for %) 
Net loss                                  (4,666)             (136,324) 
Add: 
Interest expense, net                        340                   686 
Income tax (benefit) expense                (931)               (2,987) 
Depreciation and amortization((1)          2,698                 3,270 
Share-based compensation expense               -                 2,427 
Goodwill and intangible asset 
 impairment                                    -               125,858 
Adjusted EBITDA                           (2,559)               (7,070) 
Adjusted EBITDA margin((2)                  (6.5)                (11.6) 
 
 

Notes:

(1) Primarily consists of depreciation related to property and equipment, as well as amortization related to intangible assets

(2) Adjusted EBITDA as a percentage of revenues.

Exchange Rate Information

The functional currency of the Company's PRC subsidiaries is RMB, which is the local currency used by the subsidiaries to determine financial position and operational results. The functional currency of Ninjas in Pyjamas is SEK, which is the local currency used by the subsidiary to determine financial position and operational results. The Group's financial statements are reported using U.S. Dollars ("$"). The results of operations denominated in functional currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in functional currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in equity (deficit). Gains or losses from foreign currency transactions are included in the results of operations.

The following table outlines the currency exchange rates published by the Federal Reserve Board that were used in unaudited condensed consolidated financial statements:

 
                                                       As of 
                                          -------------------------------- 
                                          December 31, 2024  June 30, 2025 
                                          -----------------  ------------- 
Balance sheet items, except for equity 
accounts 
RMB against $                                        7.2993         7.1636 
SEK against $                                       11.0676         9.4881 
 
 
                                        For the Six Months Ended June 30, 
                                       ----------------------------------- 
                                             2024               2025 
                                       -----------------  ---------------- 
Items in the statements of operation 
and comprehensive loss 
RMB against $                                     7.2150            7.2526 
SEK against $                                    10.5473           10.1567 
 
 

Conference Call

The Company's management team will hold a conference call at 9:00 a.m. U.S. Eastern Time on Tuesday, December 2, 2025 (6:00 p.m. Abu Dhabi Time on the same day) to discuss the financial results. Details for the conference call are as follows:

 
  Event Title:          NIP Group Inc. First Half 2025 Earnings Call 
  Registration Link:    https://register-conf.media-server.com/regi 
                        ster/BI5f1d9f847ec14d1898b2559733bb1c49 
 
 

All participants must use the link provided above to complete the online registration process prior to the conference call. Upon registering, each participant will receive a set of participant dial-in numbers and a unique access PIN, which can be used to join the conference call.

A live and archived webcast of the conference call will be available at the Company's investor relations website at https://ir.nipg.com/.

About NIP Group

NIP Group (NASDAQ: NIPG) operates at the nexus of Bitcoin mining, compute infrastructure and global digital entertainment. Rooted in a decade of gaming DNA and industry leadership, the Company brings a cultural and community-driven edge to digital asset operations. Headquartered in Abu Dhabi with teams worldwide, NIP Group pairs significant compute capacity with a global gaming and entertainment ecosystem including esports teams, live events and content networks, reaching hundreds of millions of fans.

Safe Harbor Statements

This press release contains statements that constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Among other things, the business outlook and quotations from management in this press release, as well as NIP Group's strategic and operational plans, contain forward-looking statements. NIP Group may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. All statements that are not historical or current facts, including but not limited to statements about NIP Group's beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: NIP Group's growth strategies; its future business development, results of operations and financial condition; its ability to maintain and enhance the recognition and reputation of its brand; developments in the relevant governmental laws, regulations, policies toward NIP Group's industry; and general economic and business conditions globally and in the countries or regions where NIP Group has operations; and assumptions underlying or related to any of the foregoing. These statements are based on various assumptions, whether identified in this press release, and on the current expectations of NIP Group's management and are not predictions of actual performance.

NIP Group cannot assure you that the forward-looking statements in this press release will prove to be accurate. These forward-looking statements are subject to a number of risks and uncertainties. Further information regarding these and other risks is included in NIP Group's filings with the SEC. There may be additional risks that NIP Group does not presently know or that NIP Group currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In light of the significant uncertainties in these forward-looking statements, nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. The forward-looking statements in this press release represent the views of NIP Group as of the date of this press release. Subsequent events and developments may cause those views to change. However, while NIP Group may update these forward-looking statements in the future, there is no current intention to do so, except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing the views of NIP Group as of any date subsequent to the date of this press release. Except as may be required by law, NIP Group does not undertake any duty to update these forward-looking statements.

For investor and media inquiries, please contact:

NIP Group Inc.

Investor Relations: ir@nipgroup.gg

Public Relations: pr@nipgroup.gg

 
 
                            NIP GROUP INC. 
                 UNAUDITED CONSOLIDATED BALANCE SHEETS 
        (In U.S. dollars, except for share and per share data, 
                          or otherwise noted) 
 
                                                      As of 
                                            -------------------------- 
                                            December 31,    June 30, 
                                                2024          2025 
                                            ------------  ------------ 
 
ASSETS 
Current assets: 
     Cash and cash equivalents              $  9,559,298  $ 10,212,644 
     Short-term investments                    2,995,607     3,035,387 
     Accounts receivable, net                 28,379,548    28,627,929 
     Advance to suppliers                      1,066,329     3,336,877 
     Amounts due from related parties            896,177       733,068 
     Prepaid expenses and other current 
      assets, net                              1,518,143     2,945,921 
Total current assets                          44,415,102    48,891,826 
                                             -----------   ----------- 
Non-current assets: 
     Property and equipment, net               3,043,272     2,862,184 
     Intangible assets, net                  127,981,521   117,958,928 
     Right-of-use assets                       1,965,772     1,663,757 
     Goodwill                                131,909,760    43,121,508 
     Deferred tax assets                       2,088,820       587,672 
     Other non-current assets                  1,162,119     2,376,895 
Total non-current assets                     268,151,264   168,570,944 
                                             -----------   ----------- 
Total assets                                $312,566,366  $217,462,770 
                                             ===========   =========== 
 
LIABILITIES 
Current liabilities: 
     Short-term borrowings                  $ 10,550,327  $ 15,997,331 
     Long-term borrowing, current portion        273,998     3,620,908 
     Accounts payable                         19,070,470    19,729,880 
     Payable related to league tournaments 
      rights, current                            732,236       782,666 
     Accrued expenses and other 
      liabilities                              6,527,390     9,506,759 
     Deferred revenue                          1,038,307     1,456,885 
     Operating lease liabilities, current        768,955       638,444 
     Amount due to related parties, 
      current                                  1,372,808     1,838,513 
Total current liabilities                     40,334,491    53,571,386 
                                             -----------   ----------- 
Non-current liabilities: 
     Long-term borrowing, non-current          3,376,519     1,032,861 
     Amount due to related party, 
      non-current                                131,017             - 
     Payable related to league tournaments 
      rights, non-current                      1,546,701     1,588,727 
     Operating lease liabilities, 
      non-current                              1,093,079       962,597 
     Deferred tax liabilities                 23,661,207    21,513,134 
     Long-term Accounts payable                        -     2,093,919 
                                             ----------- 
Total non-current liabilities:                29,808,523    27,191,238 
                                             -----------   ----------- 
Total liabilities                           $ 70,143,014  $ 80,762,624 
                                             ===========   =========== 
 
 
NIP GROUP INC. 
 UNAUDITED CONSOLIDATED BALANCE SHEETS 
 (In U.S. dollars, except for share and per share data, 
 or otherwise noted) 
 
                                                 As of 
                                     December 31,       June 30, 
                                         2024             2025 
                                    --------------  ---------------- 
 
Commitments and contingencies 
 
MEZZANINE EQUITY 
     Redeemable non-controlling 
      interests                         2,958,555       2,660,247 
Total mezzanine equity              $   2,958,555   $   2,660,247 
                                     ------------    ------------ 
 
EQUITY: 
     Class A Ordinary Shares 
      (US$0.0001 par value; 
      461,995,682 and 461,995,682 
      shares authorized as of 
      December 31, 2024 and June 
      30, 2025, respectively, 
      75,392,253 and 78,729,929 
      issued and outstanding as of 
      December 31, 2024 and June 
      30, 2025, respectively)               7,539           7,873 
     Class B Ordinary 
      Shares(US$0.0001 par value; 
      38,004,318 and 38,004,318 
      shares authorized, issued 
      and outstanding as of 
      December 31, 2024 and June 
      30, 2025, respectively)               3,800           3,800 
     Subscription receivable               (3,808)         (4,142) 
     Additional paid-in capital       373,890,499     376,317,052 
     Statutory reserve                     72,420          72,420 
     Accumulated deficit             (128,921,657)   (264,919,552) 
     Accumulated other 
      comprehensive income (loss)     (10,522,210)     16,819,110 
Total equity attributable to the 
 shareholders of NIP Group Inc.       234,526,583     128,296,561 
Non-controlling interests               4,938,214       5,743,338 
Total equity                          239,464,797     134,039,899 
                                     ============    ============ 
Total liabilities, mezzanine 
 equity and equity                  $ 312,566,366   $ 217,462,770 
 
 
                            NIP GROUP INC. 
          UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND 
                          COMPREHENSIVE LOSS 
        (In U.S. dollars, except for share and per share data, 
                          or otherwise noted) 
 
                                  For the Six Months Ended June 30, 
                               --------------------------------------- 
                                      2024                 2025 
                               -------------------  ------------------ 
 
Net revenue - third parties     $      38,892,846   $    61,055,171 
Net revenue - related parties             451,626           108,019 
                                   --------------    -------------- 
Total net revenue                      39,344,472        61,163,190 
                                   --------------    -------------- 
Cost of revenue - third 
 parties                              (36,816,220)      (62,399,604) 
Cost of revenue - related 
 parties                                 (164,238)                - 
                                   --------------    -------------- 
Total cost of revenue                 (36,980,458)      (62,399,604) 
                                   --------------    -------------- 
Gross profit                            2,364,014        (1,236,414) 
 
Operating expenses: 
     Selling and marketing 
      expenses                         (2,790,316)       (3,091,081) 
     General and 
      administrative 
      expenses                         (4,684,201)       (8,998,050) 
     Impairment of goodwill                     -      (106,349,111) 
     Impairment of intangible 
      assets                                    -       (19,508,648) 
Total operating expenses               (7,474,517)     (137,946,890) 
 
Operating loss                         (5,110,503)     (139,183,304) 
 
Other income (expense): 
     Other (expense) income, 
      net                                (145,598)          559,021 
     Interest expense, net               (340,486)         (685,819) 
                                   --------------    -------------- 
     Total other expense, net            (486,084)         (126,798) 
                                   --------------    -------------- 
 
Loss before income tax 
 expenses                              (5,596,587)     (139,310,102) 
     Income tax benefits                  931,032         2,987,381 
Net loss                               (4,665,555)     (136,322,721) 
                                   ==============    ============== 
     Net loss attributable to 
      non-controlling 
      interest                            (18,925)         (324,826) 
                                   --------------    -------------- 
     Net loss attributable to 
      NIP Group Inc.                   (4,646,630)     (135,997,895) 
     Preferred shares 
      redemption value 
      accretion                       (35,930,980)                - 
     Net loss attributable to 
      NIP Group Inc.'s 
      shareholders                    (40,577,610)     (135,997,895) 
                                   ==============    ============== 
 
Other comprehensive income 
(loss): 
     Foreign currency 
      translation income 
      attributable to 
      non-controlling 
      interest, net of nil 
      tax                                     135             1,628 
     Foreign currency 
      translation loss 
      attributable to 
      ordinary shareholders, 
      net of nil tax                   (8,229,041)      (15,947,580) 
                                   --------------    -------------- 
     Total comprehensive loss   $     (12,894,461)  $  (152,268,673) 
                                   ==============    ============== 
     Total comprehensive loss 
      attributable to 
      non-controlling 
      interest                            (18,790)         (323,198) 
     Total comprehensive loss 
      attributable to NIP 
      Group Inc.                      (12,875,671)     (151,945,475) 
 
Net loss per ordinary share 
     Basic and Diluted                      (1.04)            (2.40) 
 
Weighted average number of 
ordinary shares outstanding 
     Basic and Diluted                 38,888,512        56,572,425 
 

(END) Dow Jones Newswires

December 02, 2025 06:30 ET (11:30 GMT)

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