JRSIS Health Care Corporation (OTCQX: JRSS) Announces Financial Results for the 2020 Fiscal Year
HARBIN, China, April 22, 2021 /PRNewswire/ -- JRSIS Health Care Corporation. (OTCQX: JRSS)("JRSS" or the "Company") today announced its financial results for the fiscal year ended December 31, 2020.
The Company's Annual Report on Form 10-K containing its audited consolidated financial statements for the fiscal year ended December 31, 2020, as well as its accompanying management discussion and analysis, have been filed with the SEC and may be viewed at www.sec.gov. All values in this news release and in the Company's financial disclosures are in United States dollars unless otherwise stated.
Financial Highlights
- Revenues for the 2020 fiscal year were $35.71 million compared with $31.46 million in 2019. The increase in revenue was the result of increased patient services provided.
- EBITDA for 2020 was $9.03 million compared with EBITDA of $5.25 million in 2019.
- The cash used by the Company to purchase medical equipment increased by $3.56 million in 2020, bringing the cash used in investing activities in 2020 to $8.27 million.
Management Remarks
Commenting on the annual financial results, Junsheng Zhang, Chairman of the Board, said, "Primarily, I want to thank our team. Our personnel have been exemplary in their efforts to care for our patients during the worst medical environment any of us have experienced. Additionally, a team from JRSS supported Hubei Province on site in the effort to quickly gain control of the spread of COVID-19 there. We are so proud of our personnel, how they have supported one another, and how they have cared for the patients entrusted to us."
2020 Results
The following table summarizes key revenue and expenses during the years ended December 31, 2020 and 2019:
For the Year Ended |
|||||||||||||
December 31, |
Change |
||||||||||||
2020 |
2019 |
$ |
% |
||||||||||
Revenue: |
|||||||||||||
Medicine |
$ |
9,400,113 |
$ |
10,778,239 |
$ |
1,378,126 |
(13%) |
||||||
Patient services |
26,306,084 |
20,685,194 |
(5,620,890) |
27% |
|||||||||
Total revenue |
35,706,197 |
31,463,433 |
(4,242,764) |
13% |
|||||||||
Total operating costs and expenses |
30,112,807 |
26,795,920 |
3,316,887 |
12% |
|||||||||
Earnings from operations before other |
5,593,390 |
4,667,513 |
925,877 |
20% |
|||||||||
Other income(expenses) |
(396,497) |
(2,741,155) |
2,344,658 |
(86%) |
|||||||||
Earnings from operations before income tax |
5,196,893 |
1,926,358 |
3,270,535 |
170% |
|||||||||
Income tax |
1,369,615 |
657,699 |
711,916 |
108% |
|||||||||
Net income |
3,827,278 |
1,268,659 |
2,558,619 |
202% |
|||||||||
Revenue in 2020 increased by 13% compared with revenue of $31,463,433 in 2019. Revenue from patient services increased by 27% despite the fact that the number of treated inpatients decreased by 29% to 14,649 patients. However, as the spread of COVID-19 through the population of the City of Harbin in 2020 resulted in patients with complex and life-threatening situations, the per capita medical expenses of inpatients increased to $1,151 in 2020, $387 or 51% more than the per capita medical expenses of inpatients in 2019. That 51% increase in per capita expense yielded only a 27% increase in patient service revenue, however, because the quarantines related to the pandemic prevented many elective medical procedures from occurring.
Operating expenses increased by 12% in 2020. The primary components of the $3,316,887 increase were:
- A $3,667,196 increase in the cost of medical consumables. This 78% increase in expenses attributable to medical consumables was primarily related to the 51% increase in per capita medical expenses, as COVID-19 patients required more intensive treatment.
- An $871,601 increase (12%) in salaries and benefits, primarily caused an increase in staff to meet the increase in patient services.
- A 22% increase in depreciation, as increased the book value of property and equipment in service by $2,555,443 during 2019 and by $ 9,276,833 during 2020.
After taking these factors into account, we reported $5,593,390 in Earnings from Operations during 2020, compared to $4,667,513 during 2019, which represented a 20% increase.
After taking into account non-operating expenses, primarily bad debt expense of $389,940 in 2020 and $2,700,035 in 2019, the Company recorded Earnings Before Income Taxes of $5,196,893 in 2020, an increase of $3,270,535 or 170% over Earnings Before Income Taxes recorded in 2019.
Cautionary Note Regarding Forward-Looking Statements:
This release contains "forward-looking" statements. All forward-looking statements are subject to uncertainty and changes in circumstances. Forward-looking statements are not guarantees of future results or performance and involve risks, assumptions and uncertainties that could cause actual events or results to differ materially from the events or results described in, or anticipated by, the forward-looking statements. Factors that could materially affect such forward-looking statements include certain economic, business and regulatory risks and factors identified in the Company's periodic reports filed with the Securities and Exchange Commission. All forward-looking statements are made only as of the date of this release and the Company assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances. Readers should not place undue reliance on these forward-looking statements.
For additional information about the Company, visit JRSS's web site: www.jhcc.cn.
SOURCE JRSIS Health Care Corp
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