BEIJING April 23, 2021 / PRNewswire / – MMTEC, Inc. (NASDAQ: MTC) (“MMTEC”, “we”, “our” or the “Company”), a China-based technology company providing access to the US financial markets, today released its financial results for the year ended December 31 2020 announced.
Comparison of operating results for the years ended December 31, 2020 and 2019.
Revenue. Revenues increased from $ 200,797 in 2019 to $ 742,125 in 2020. For the years ended December 31, 2020 and 2019, we had revenues from performing market data services for our client of $ 73,524 and $ 75,044, respectively. As a result of the strategy adjustment, our company had revenues of $ 21,113 and $ 86,788 in investor relationship management services for the years ended December 31, 2020 and 2019, respectively. As a result of our acquisition of MMBD Trading Limited, which is a wholly owned subsidiary, MM Global Securities, INC., which is engaged in a single activity as a stock broker dealer, our company also had commission income of $ 643,145 and $ 33,680, and other related income of $ 4,343 and $ 5,285, for the years ended December 31, 2020 and 2019, respectively.
Cost of sales. The cost of income mainly consists of internal labor costs and related benefits, and other overhead costs that are directly attributable to services provided. For the years ended December 31, 2020 and 2019, the income expense was $ 7,405 and $ 90,890, respectively.
Gross profit and gross margin. Our gross profit was $ 734,720 for the year ended December 31, 2020, representing a gross margin of 99.0%. Gross profit was $ 109,907 for the year ended December 31, 2019, representing a gross margin of 54.7%. The increase in our gross margin was mainly due to the increase in commission income and commission income, which was stated without charges.
Loss due to operations. As a result of the foregoing, the operating loss for the year ended December 31, 2020 was $ 3,184,151, compared to $ 2,940,776 for the year ended December 31, 2019, an increase of $ 243,375, or 8.3%.
Other income (costs). Other income (expense) mainly includes interest income from bank deposits, other income (expense), government grants, gains (losses) on foreign currency transactions and losses on investments using the equity method. Other income, net, was $ 2,555 for the year ended December 31, 2020, compared to other income of $ 697,542 for the year ended December 31, 2019, a change of $ 694,987, mainly due to a decrease of interest income from bank deposits of $ 6,892, a decrease in the government grant of $ 724,795, a decrease in the loss on investments under the equity method of $ 3,308, an increase in the foreign currency transaction loss of $ 35,248 and an increase of the other income with $ 68,640.
Net Loss. As a result of the factors described above, our net loss was $ 3,181,596, or $ 0.16 per share (basic and diluted), for the year ended December 31, 2020. Our net loss was $ 2,243,234, or $ 0.16 per share. 11 per share (basic and diluted), for the year ended December 31, 2019.
About MMTEC, Inc.
Our company, headquartered in Beijing, China, develops and implements a range of platforms, such as the ETN Counter Business System, PTN Private Fund Investment Management System, which form a business chain enabling Chinese-speaking hedge funds, mutual funds and registered investments. advisers, proprietary trading groups and brokerage firms to participate in securities market transactions and settlements worldwide. In 2020, the company used an in-house designed and built system with the US brokerage license and Cayman fund management qualification to form a range of MOM funds, with the main purpose of discovering and discovering small and medium-sized institutional investors help them set up the fund. to issue securities fund products.
More information about the company can be found at: www.51mm.com
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements other than statements of historical fact. When the company uses words such as “can”, “will”, “intend”, “should”, “believe”, “expect”, “anticipate”, “project”, “estimate” or relate to historical matters, it makes forward-looking statements. In particular, the Company’s statements regarding its continued growth, business prospects and other similar statements are forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from the company’s expectations as discussed in the forward-looking statements. These statements are subject to uncertainties and risks, including, but not limited to: the company’s objectives and strategies; the future business development of the company; demand for and acceptance of products and services; changes in technology; economic circumstances; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the company with the Securities and Exchange Commission, including the most recently filed annual report of the Company on Form 20-F and subsequent filings. For these reasons, among others, investors are cautioned not to place undue reliance on forward-looking statements in this press release. Additional factors are discussed in the company’s filings with the United States Securities and Exchange Commission, available for review at www.sec.gov. The company undertakes no obligation to publicly update these forward-looking statements to reflect events or conditions that arise after the date hereof.
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SOURCE MMTEC, Inc.