BEIJING, May 22, 2020 /PRNewswire/-- MMTEC, Inc.
(NasdaqCM:MTC) ("MMTec" or the "Company") a China based technology company that provides
access to the U.S. financial markets announced its financial
results for the year ended December 31, 2019.
Comparison of Results of Operations for the Years Ended
December 31, 2019 and 2018
Revenue. Revenues increased from $26,882 in
2018 to $200,797, or 647%, in 2019 due to the
increase in the revenue of the original market data service
business and the addition of the IR business, as well as the
acquisition of MMBD Trading brings increased commission income. For
the years ended December 31, 2019 and
2018, our revenue from performing market data services for our
customers increased to $75,044 from
$26,882, respectively. In additional,
we have expanded our investor relations management services
business to help maintain the relationship between listed companies
and the company's equity, debt investors or potential investors.
Our revenue from investor relations management services was
$86,788 for the year ended
December 31, 2019. Following our
acquisition of MMBD Trading and its wholly-owned subsidiary and a
securities broker-dealer, we received $33,680 in commission revenue and other related
revenue of $5,285 for the year ended
December 31, 2019.
Cost of Revenue. For the years ended December 31, 2019 and 2018, our cost of revenue
was $90,890 and $16,308, respectively. Due to the increase in
revenue, the corresponding business cost has increased.
Gross Profit and Gross Margin. Our gross profit was
$109,907 for the year ended
December 31, 2019, representing gross
margin of 54.7%. Gross profit was $10,574 for the year ended December 31, 2018, representing gross margin of
Loss from Operations. As a result of business
expansion and increase in NASDAQ data service fee for the year
ended December 31, 2019, loss from
operations amounted to $2,940,776, as
compared to $2,327,540 for the year
ended December 31, 2018, an increase
of $613,236, or 26.3%.
Other Income (Expense). Other income (expense) mainly
includes interest income from bank deposits, other miscellaneous
expense, government subsidies, foreign currency transaction gain
(loss) and loss on equity method investment controlled by major
shareholders. Other income, net, totaled $697,542 for the year ended December 31, 2019, as compared to other expense
of $21,462 for the year ended
December 31, 2018, a change of
$719,004, which was mainly
attributable to an increase in interest income from bank deposits
of $36,887, an increase in government
subsidy of $724,795, an increase in
other expenses of $13,972, an
decrease in loss on equity method investment controlled by major
shareholders of $12,463, and a
decrease in foreign currency transaction loss of $41,181.
Net Loss. As a result of the factors described above, our
net loss was $2,243,234, or
$0.11 per share (basic and diluted),
for the year ended December 31, 2019.
Our net loss was $2,349,002, or
$0.06 per share (basic and diluted),
for the year ended December 31,
ABOUT MMTEC, INC.
Headquartered in Beijing,
China, our Company was founded on January 4, 2018. We have developed and deployed a
series of platforms, including the ETN Counter Business System, the
PTN Private Fund Investment Management System, the Personal Mobile
Transaction Client System, the PC Transaction Client System, the
Individual and Institutional Integrated Account Management System,
and the Quantitative Investment Transaction Platform, which
comprise a business chain that enables Chinese language speaking
hedge funds, mutual funds, registered investment advisors,
proprietary trading groups, and brokerage firms to engage in
securities market transactions and settlements globally. For
additional information about the Company please refer to its
corporate website at http://www.51mm.com.
This press release may contain certain "forward-looking
statements" relating to the business of MMTEC, Inc. and its
subsidiary companies. All statements other than statements of
historical fact included herein are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements regarding the Company's the general
ability of the Company to achieve its commercial objectives, the
business strategy, plans and objectives of the Company and its
subsidiaries, and any other statements of non-historical
information. These forward-looking statements are often identified
by the use of forward-looking terminology such as "believes,"
"expects" or similar expressions, involve known and unknown risks
and uncertainties. Although the Company believes that the
expectations reflected in these forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties,
and these expectations may prove to be incorrect. Investors should
not place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. The Company's
actual results could differ materially from those anticipated in
these forward-looking statements as a result of a variety of
factors, including those discussed in the Company's periodic
reports that are filed with the Securities and Exchange Commission
and available on its website at http://www.sec.gov. All
forward-looking statements attributable to the Company or persons
acting on its behalf are expressly qualified in their entirety by
these factors. Other than as required under the securities laws,
the Company does not assume a duty to update these forward-looking
SOURCE MMTEC, Inc.