Zhongchao Inc. (Nasdaq: ZCMD) has reported improved performance for the full year 2020 but failed to impress investors nevertheless.
The Shanghai-based online healthcare information provider booked revenues of $17.99 million in 2020, up 21% year-over-year. Net income hit $4.46 million, or 18 cents per share, compared with $4 million in 2019, according to the report. Gross margin, however, was down by 2.7 percentage points to 66%.
Zhongchao attributed the revenue growth primarily to the increased orders for assistance services for patient-aid projects.
“Although our gross margin has a slight drawback, we expect to maintain a high-profit margin in the future for our reputation acknowledgment among leading pharmaceutical enterprises and non-for-profit organizations to design and produce high-quality professional content,” said Weiguang Yang, the chairman and chief executive officer of Zhongchao.
Founded in 2012, Zhongchao operates platforms MDMOOC for healthcare professionals and Sunshine Health Forums for the public. In response to the outbreak of Covid-19, the company has successfully developed and launched a coronavirus curriculum with over 60 courses covering a wide range of medical specialties.
In March 2021, the company reported it renewed the contract with China Association for Health Promotion and Education and GlaxoSmithKline Investment Ltd. to continue the medical education program "Pulmonary Arterial Hypertension Online Course – Connections with Famous Hospitals" in 2021.
Shares in Zhongchao were trading at $1.80 apiece as of Friday afternoon, down 2%.