Future FinTech Reports First Quarter Results
BEIJING, July 7, 2020 /PRNewswire/ -- Future FinTech Group Inc. (NASDAQ: FTFT) ("Future FinTech", "FTFT" or "the Company"), a leading blockchain e-commerce and financial technology company, today announced its financial results for the first quarter of fiscal 2020.
Revenue for the three months ended March 31, 2020 increased 25% to $0.2 million compared to $0.16 million for the first quarter of fiscal 2019. Sale of goods decreased to $0.001 million compared to $0.14 million last year, primarily due to the negative impact of COVID-19 during this period, as the staff could not work in the office and shipments stopped. Revenue from CCM Shopping Mall Membership increased to $0.20 million from $0.02 million last year, reflecting the growth of the on-line business.
Operating expenses increased to $6.14 million for the three months ended March 31, 2020 from $1.02 million for the first quarter last year, primarily due to a one-time bad debt provision of $4.2 million for other receivables from HeDeTang Holdings (HK) Ltd. ("HeDeTang HK"), which was sold to New Continent International Co., Ltd during the first quarter of 2020 and non-cash stock related compensation of $1.19 million for a Consulting Service Agreement that the Company entered into on January 25, 2020 with Dragon Investment Holding Limited (Malta).
The loss from operations for the first quarter of fiscal 2020 was $5.936 million, as compared to $0.990 million for the first quarter of fiscal 2019.
The Company sold its fruit juice related business, HeDeTang Hong Kong during the first quarter of 2020, resulting in a gain on disposal of discontinued operations for $123.69 million.
Net income attributable to Future FinTech's Common shareholders of common stock for the three months ended March 31, 2020 was $117.21 million or $3.46 per diluted share, compared to net loss of $1.89 million, or loss of $0.05 per diluted share, for the first quarter of fiscal 2019.
The information in this press release is subject to the more complete presentation set forth in in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 which was filed with the Securities and Exchange Commission on July 6, 2020.
Shanchun Huang, Future FinTech's Chief Executive Office, said, " We are pleased to have sold our traditional fruit juice related business in first quarter, which was highly competitive and we have suffered significant losses for such business. Now, we are more focused on the development of financial technology and financial service business. We are actively looking for acquisition opportunities around the world in such areas. We believe that the combination of blockchain technology that we have expertise with financial technology services will enable our company to grow rapidly in this field and increase the value of shareholders."
About Future FinTech Group Inc.
Future FinTech Group Inc. ("Future FinTech", "FTFT" or the "Company") is a leading blockchain technology R&D and application company incorporated in Florida. The Company's operations include a blockchain-based online shopping mall platform, Chain Cloud Mall ("CCM"), a cross-border e-commerce platform (NONOGIRL), an incubator for blockchain based application projects, and a digital payment system ("DCON"). The Company is also engaged in development of blockchain based e-Commerce technology, as well as financial technology. For more information, please visit http://www.ftftex.com/.
Safe Harbor Statement
Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.
All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2019 and our other reports and filings with SEC. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.
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