Business
Zhongchao Inc. Reports the First Half of Fiscal Year 2020 Financial Results
Revenues and operating income grew 21.1% and 49.2%, respectively SHANGHAI, Sept. 21, 2020 /PRNewswire/ -- Zhongchao Inc. (NASDAQ: ZCMD) ("Zhongchao" or the
About this update from Zhongchao Inc.
[{"type":"text","content":"Revenues and operating income grew 21.1% and 49.2%, respectively\n\n\nSHANGHAI, Sept. 21, 2020 /PRNewswire/ -- Zhongchao Inc. (NASDAQ: ZCMD) (\"Zhongchao\" or the \"Company\"), a healthcare services company offering patient management, online healthcare information, professional training and educational services, today announced its unaudited financial results for the six months ended June 30, 2020.\nKey Financial Highlights for the First Half 2020 as compared to the First Half 2019\nFor the Six Months Ended June 30,\n($ millions, except per share data)\n2020\n2019\n% Change\nRevenues\n$8.46\n$6.99\n21.1%\nGross profit\n$5.62\n$4.75\n18.3%\nGross margin\n66.4%\n68.0%\n-1.6 pp\nIncome from operations\n$1.88\n$1.26\n49.2%\nOperating margin\n22.2%\n18.0%\n4.2 pp\nNet income attributable to ordinary shareholders of Zhongchao \n$1.46\n$1.73\n-15.7%\nEarnings per share\n$0.06\n$0.08\n-23.9%\n* pp: percentage points\nRevenues increased by 21.1% to $8.46 million for the first half of 2020, primarily due to increased contribution from the patient-aid projects launched in the fourth quarter of 2018 (the \"Patient-Aid Projects\") as well as COVID-19 related online training courses. Gross profit increased by 18.3% to $5.62 million while gross margin decreased by 1.6 percentage points to 66.4% for the first half of 2020. Operating income increased by 49.2% to $1.88 million for the first half of 2020, primarily due to increased gross profit and partially offset by increased operating expenses. Net income attributable to the Company's ordinary shareholders decreased by 15.7% to $1.46 million for the first half of 2020, primarily driven by decreased government subsidies and increased income tax expenses that exceeded the increase in operating income. Earnings per share was $0.06 for the first half of 2020, compared to $0.08 for the same period of last year.Weiguang Yang, Chairman and Chief Executive Officer of Zhongchao, commented, \"With revenues increasing by 21.1% to a record $8.46 million and operating income increasing by 49.2% to $1.88 million, our first half of 2020 financial results highlight continued strength in our businesses. Bucking the trend of economic standstill for an extended period time during the first half of the year triggered by the COVID-19 pandemic, we saw increasing orders from existing and new non-for-profit organizat...