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.”