MMTEC, Inc., a China based technology company that provides access to the US financial markets, announced its unaudited financial results for the six months ended June 30, 2019.
Second Half 2019 Summary
- Revenue was $177,543 for the six months ended June 30, 2019. The Company did not generate any revenue for the same period of 2018.
- Gross profit was $111,328 for the six months ended June 30, 2019. The Company had neither revenue nor associated costs for the same period of 2018.
- Loss from operations was $1,308,583 for the six months ended June 30, 2019, as compared to $1,064,245 for the same period of 2018.The increase was primarily attributable to the increase in selling and marketing costs for the financial advisory and investment banking business line.
- Net loss was $1,326,941 for the six months ended June 30, 2019, as compared to net loss of $1,062,249 for the same period of 2018.
- Loss per share both on a basic and fully diluted basis were $0.07 for the six months ended June 30, 2019, as compared to loss per share on a basic and fully diluted basis of $0.02 for the six months ended June 30, 2018.
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Mr. Zhen Fan, Chief Executive Officer of MMTEC, commented, “Our revenue increased to $177,543 for the first half of 2019 due to our adding financial advisory and investment banking business line and expanding our investor relations management services business. Loss from operations increased significantly as a result of increased the size and distribution of support team for financial advisory and investment banking business line and investor relations management services business. The Company maintains professional service teams in China and the US, offering extensive experience in domestic and international capital formation, restructuring, M&A, and related market knowledge.”
Mr. Fan continued, “While the volume of business has increased as compared to the same period last year, the growth was less than we had expected.
For institutional clients, we have invested significant resources in the Hong Kong securities market to attract Chinese-backed securities firms in Hong Kong to the US market. Also, as an entity that operates in the financial industry in China and the US, the Company finds itself subject to the challenges posed by the ongoing tension in the trade relations between the countries. We believe that the Sino- US trade friction resulted in adverse effect on our ability to grow and expand, thus falling short of our growth expectations.”
