BEIJING, Oct. 15, 2020 /PRNewswire/ — MMTEC, Inc. (NASDAQ: MTC) (“MMTEC”, “we”, “our” or the “Company”), a China based technology company that provides access to the U.S. financial markets, today announced its unaudited financial results for the six months ended June 30, 2020.
First Half 2020 Summary
- Revenues increased by 85.35% from $177,543 to $329,070 following the October 18, 2019 consolidation of MMBD Trading Limited and MM Global Securities, Inc. into the Company. MM Global generated commission fees on customer securities transactions by providing brokerage service.
- Cost of revenue decreased by 89.39% from $66,215 to $7,026 due to the 90.35% decline of revenues from the investor relationship advisory services.
- Gross profit increased by 189.27% to $322,044 as compared to $111,328 for the same period in 2019, while the gross profit margin was 97.86%, as compared to 62.70% for the same period in 2019.
- Loss from operations was $1,041,361 for the six months ended June 30, 2020, as compared to $1,308,583 for the same period of 2019. The decrease was primarily attributable to the increase in revenue and the decrease in payroll and related benefits in selling and marketing costs and general and administrative.
- Net loss was $1,011,152 for the six months ended June 30, 2020, as compared to net loss of $1,326,941 for the same period of 2019.
- Loss per share both on a basic and fully diluted basis were $0.05 for the six months ended June 30, 2020, as compared to loss per share on a basic and fully diluted basis of $0.07 for the six months ended June 30, 2019.
Xiangdong Wen, the Company’s Chief Executive Officer and Chairman, commented, “Our revenue increased to $329,070 for the first half of 2020 as a result of our increased sales force in the broker- dealer business. Loss from operations decreased significantly as a result of the revenue increase and decrease in the size and distribution of support team for investor relations management services business and market data services business.”
Mr. Wen continued, “As for the Company’s future strategy, in the face of the trade tension between China and the United States, the Company intend to increase its investment in the following two areas to address challenges of the changing market environment.
First, the Company believes that Chinese investors will continue demand investments in U.S. securities and diversified asset allocations. To this end, the Company set up the asset management department to form a series of Manager of Managers (“MOM”) funds, with the main goal of attracting small and medium-sized institutional investors and helping them set up the fund to issue securities fund products. The Company will also help those investors with marketing and promotion of subscriptions by ordinary investors, to help ordinary investors realize the allocation of overseas assets and obtain high-quality asset management services. In addition, the Company remains optimistic about the opening up of China’s securities markets, and plans to establish a new U.S. team to service small and medium-sized overseas investment institutions, especially Wall Street institutions, to invest in Chinese securities market, acting as a bridge for Sino-US securities investment transactions.”Operating Results for Six Months Ended June 30, 2020
We derive our revenues from (1) data services and related technical support (the “Market data services”); (2) investor relations management services business to help maintain the relationship between listed companies and the company’s equity, debt investors or potential investors(the “Investor relations management services”); and (3) commissions through customer securities transactions (“Commissions”).