Haoxi Health Technology Limited Reports Unaudited Financial Results for The Six Months Ended December 31, 2023
Haoxi Health Technology (HAO) reported its unaudited financial results for the six months ended December 31, 2023. The company recorded a significant increase in total revenue, reaching $23.50 million, a 157% rise from $9.16 million in the same period of 2022.
Gross profit rose by 65% to $1.20 million, while net income increased by 70% to $0.76 million. HAO's growth was driven by an increase in the number of clients served, from 183 to 338, and a higher average revenue per client, primarily from the healthcare sector.
Recent developments include partnerships with Wuhan Yiya Simei Dental Clinic and Jinan Yanling Biotechnology, focusing on delivering comprehensive advertising services on popular social media platforms. However, the company's gross margin decreased due to market competition, leading to higher costs and required customer rebates.
- Total revenue increased by 157% to $23.50 million.
- Gross profit rose by 65% to $1.20 million.
- Net income increased by 70% to $0.76 million.
- Number of clients served increased from 183 to 338.
- Recent partnerships with Wuhan Yiya Simei Dental Clinic and Jinan Yanling Biotechnology.
- Higher average revenue per client from $50,070 to $69,538.
- Gross margin decreased from 7.97% to 5.11% due to market competition.
- Cost of revenue increased by 164%, from $8.43 million to $22.30 million.
- Selling and marketing expenses increased by 44%, reaching $20,564.
- General and administrative expenses increased by 66%, totaling $331,610.
- R&D expenses rose by 29%, reaching $30,842.
Insights
The company's financial results for the six months ended December 31, 2023, show significant growth in revenue, gross profit and net income. The total revenue rose by
The number of clients almost doubled from 183 to 338 and the average revenue per client increased by
Investors should note the increase in operational costs, particularly in selling, marketing and administrative expenses. While these are in line with revenue growth, they will need to be closely monitored to ensure they do not disproportionately increase over time.
The strategic partnerships with ByteDance's platforms, including Douyin, Toutiao and Xigua Video, underscore the company's focus on leveraging popular media channels to drive advertising revenue. The recent contracts with Yiya Dental and Yanling Biotechnology indicate an expansion in the healthcare sector, a market known for substantial advertising budgets. This aligns well with the observed increase in revenue per client.
The engagement with ByteDance platforms, renowned for their high user engagement, supports the company's strategy to capture a larger market share. The rebating agreements are a common practice to attract and retain clients but could pressure the profit margins in a competitive market environment.
Investors should consider how these strategic moves might enhance long-term growth and market positioning. The company's ability to maintain its existing client base while attracting new high-value clients will be important for sustained growth.
BEIJING, May 31, 2024 (GLOBE NEWSWIRE) -- Haoxi Health Technology Limited (the “Company” or “HAO”), an online marketing solution provider headquartered in Beijing, China, today reported its unaudited financial results for the six months ended December 31, 2023.
Financial Highlights for the Six Months Ended December 31, 2023
- Total revenue for the six months ended December 31, 2023 was US
$23.50 million , increased by US$14.34 million , or157% , from US$9.16 million for the same period in 2022. - Gross profit for the six months ended December 31, 2023 was US
$1.20 million , representing an increase of65% from US$0.73 million for the same period in 2022. - Net income for the six months ended December 31, 2023 was US
$0.76 million , increasing by US$0.31 million , or70% , from US$0.45 million for the six months ended December 31, 2022.
Mr. Zhen Fan, Chairman and Chief Executive Officer of the Company, stated that, “We are pleased to record an increase in revenue of
Recent Developments
On April 28, 2024, the Company, through its wholly owned subsidiary, Beijing Haoxi Digital Technology Co., Ltd. (“Beijing Haoxi”), entered into a Framework Contract for Cooperation on Information Placement on Media Platforms (the “Framework Contract) with Wuhan Yiya Simei Dental Clinic Co., Ltd. (“Yiya Dental”), a regional dentistry chain in China. This partnership underscores the Company’s goal in delivering internet marketing solutions. Pursuant to the Framework Contract, Beijing Haoxi agreed to provide comprehensive advertising services on popular social media platforms, such as Douyin, Toutiao, and Xigua Video, for Yiya Dental, through various forms of media, including short-video, text, images, flash, as well as mobile app contents.
On April 29, 2024, the Company, through its wholly owned subsidiary, Beijing Haoxi, entered into a Bidding Data Promotion Rebate Agreement (the “Rebate Agreement) with Jinan Yanling Biotechnology Co., Ltd. and its subsidiaries and affiliated companies (collectively, “Yanling”). Pursuant to the Rebate Agreement, Beijing Haoxi agreed to provide comprehensive advertising and promotion services to Yanling through advertising platforms, such as Jinri Toutiao (Today’s Headlines), Douyin, and Xigua Video.
Results of Operations for the Six Months Ended December 31, 2023
Revenue
We generate revenue from providing one-stop online marketing solutions, including traffic acquisition from mainstream online media platforms, content production, data analysis and advertising campaign optimization, to advertisers through the operating entity. Net revenue was
The average revenue per client under our advertisement pricing model consists of two components: 1) the average per unit-of-service price, which is the average price per click-through that we charge our advertiser customers, and 2) the quantity of services, which is actual number of click-throughs with respect to each advertiser. The following table shows the components that impact our revenue and their correlation.
| Six Months Ended December 31, | ||||||||||
| 2022 | 2023 | |||||||||
| Revenue per click-through ($) | a | 0.51 | 0.97 | |||||||
| Average number of click-throughs with respect to each advertiser client | b | 98,432 | 71,627 | |||||||
| Average revenue per client ($) | c=a*b | 50,070 | 69,538 | |||||||
| Number of clients | d | 183 | 338 | |||||||
| Revenue ($) | e=c*d | 9,162,832 | 23,503,910 | |||||||
The increase in the revenue per click-through was higher in the current period mainly due to the increasing popularity of ByteDance media platforms, which we mainly collaborated with through ByteDance’s subsidiary, Ocean Engine. For the six months ended December 31, 2023, a growing number of our advertiser clients have chosen to place ads on ByteDance’s media platforms. In addition, the costs we paid to Ocean Engine to acquire user traffic for our clients’ ads were increased, leading to an increase in our service charge.
Cost of revenue
Our cost of revenue consists primarily of the purchase of online traffic from third-party media platforms after deducting rebates, and salaries and benefits for business operation staff. The cost of revenue increased by
Gross profit and gross margin
Our gross profit increased by
Selling and marketing expenses
Our selling and marketing expenses primarily consist of payroll costs and office related expenses. Selling and marketing expenses increased by
General and administrative expenses
Our general and administrative expenses mainly consist of salaries and bonuses, as well as administrative related expenses. General and administrative expenses increased by
Research and development expenses
Our R&D expenses mainly consist of salaries and benefits of our R&D staff developing Bidding Compass and our online ads bidding analysis software. R&D expenses increased by
Income taxes
We had income taxes of
Net (loss)/income
As a result of the foregoing, we had net income of
About Haoxi Health Technology Limited
Haoxi Health Technology Limited is an online marketing solution provider headquartered in Beijing, China, specializing in serving healthcare industry advertiser clients. The Company’s growth is driven by the rise of news feed ads and the rapid development of the healthcare sector. The Company offers one-stop online marketing solutions, especially in online short video marketing, helping advertisers acquire and retain customers on popular platforms in China, such as Toutiao, Douyin, WeChat, and Sina Weibo. The Company is dedicated to reducing costs, increasing efficiency, and providing easy online marketing solutions to advertisers. For more information, please visit: http://ir.haoximedia.com.
Forward-Looking Statement
This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the “Risk Factors” section of the registration statement filed with the U. S. Securities and Exchange Commission (the “SEC”). For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
For more information, please contact:
Investor Relations
WFS Investor Relations Inc.
Janice Wang, Managing Partner
Email: services@wealthfsllc.com
Phone: +86 13811768599
+1 628 283 9214
HAOXI HEALTH TECHNOLOGY LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
| December 31, 2023 | June 30, 2023 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 1,112,634 | $ | 1,203,203 | ||||
| Trade receivables, net | 218,492 | 7,748 | ||||||
| Supplier advances | 3,465,160 | 2,404,680 | ||||||
| Prepaid expense, receivables and other assets | 609,793 | 58,474 | ||||||
| Total current assets | 5,406,079 | 3,674,105 | ||||||
| Non-current assets | ||||||||
| Property and equipment, net | 135,033 | 143,836 | ||||||
| Operating right-of-use asset | 46,213 | 89,544 | ||||||
| Deferred listing costs | 587,471 | 556,756 | ||||||
| Total non-current assets | 768,717 | 790,132 | ||||||
| Total Assets | $ | 6,174,796 | $ | 4,464,237 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current Liabilities | ||||||||
| Short-term loans | $ | 722,230 | $ | 511,409 | ||||
| Accounts payable | 1,001,888 | 27,312 | ||||||
| Due to related parties | 81,564 | 20,210 | ||||||
| Advances from customers | 1,030,329 | 1,493,947 | ||||||
| Taxes payable | 982,535 | 328,093 | ||||||
| Accrued expenses and other liabilities | 209,486 | 41,518 | ||||||
| Salary and welfare payable | 39,520 | 37,145 | ||||||
| Operating right-of-use liabilities-current | 46,213 | 89,544 | ||||||
| Long-term payable-current | 13,982 | 27,344 | ||||||
| Total current liabilities | 4,127,747 | 2,576,521 | ||||||
| Non-current Liabilities | ||||||||
| Long-term payable | 71,140 | 72,104 | ||||||
| Long-term borrowing | 254,140 | 249,107 | ||||||
| Total non-current liabilities | 325,280 | 321,211 | ||||||
| Total Liabilities | 4,453,027 | 2,897,732 | ||||||
| Commitments and contingencies | ||||||||
| SHAREHOLDERS’ EQUITY: | ||||||||
| Class A Ordinary Shares (Par value US | 1,221 | 1,221 | ||||||
| Class B Ordinary Shares (Par value US | 1,727 | 1,727 | ||||||
| Additional paid-in capital | 2,176,796 | 2,176,796 | ||||||
| Retained earnings (Accumulated deficit) | 191,738 | (568,460 | ) | |||||
| Accumulated other comprehensive loss | (649,713 | ) | (44,779 | ) | ||||
| Total shareholders’ equity | 1,721,769 | 1,566,505 | ||||||
| Total liabilities and shareholders’ equity | $ | 6,174,796 | $ | 4,464,237 | ||||
HAOXI HEALTH TECHNOLOGY LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
| Six Months Ended December 31, | ||||||||
| 2023 | 2022 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Revenues | $ | 23,503,910 | $ | 9,162,832 | ||||
| Cost of revenues | (22,302,522 | ) | (8,432,603 | ) | ||||
| Gross profit | 1,201,388 | 730,229 | ||||||
| Operating expenses: | ||||||||
| Selling | 20,564 | 14,312 | ||||||
| General and administrative | 331,610 | 199,284 | ||||||
| Research and development | 30,842 | 23,842 | ||||||
| Total operating expenses | 383,016 | 237,438 | ||||||
| Income from operations | 818,372 | 492,791 | ||||||
| Other income (loss): | ||||||||
| Financial expenses | (16,789 | ) | (6,744 | ) | ||||
| Other income | (1,355 | ) | ||||||
| Total other income (loss), net | (18,144 | ) | (6,744 | ) | ||||
| Income before income taxes | 800,228 | 486,047 | ||||||
| Income tax expense | (40,030 | ) | (39,001 | ) | ||||
| Net income | $ | 760,198 | $ | 447,046 | ||||
| Comprehensive income | ||||||||
| Net income | $ | 760,198 | $ | 447,046 | ||||
| Foreign currency translation gain (loss) | (604,934 | ) | 65,529 | |||||
| Total Comprehensive income | $ | 155,264 | $ | 512,575 | ||||
| Earnings per ordinary share* | ||||||||
| – Basic and diluted | $ | 0.03 | $ | 0.02 | ||||
| Weighted average number of ordinary shares outstanding | ||||||||
| –Basic and diluted | 29,480,000 | 25,373,333 | ||||||
FAQ
What were the total revenue figures for Haoxi Health Technology (HAO) for the six months ended December 31, 2023?
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What was the change in gross profit for Haoxi Health Technology (HAO) for the six months ended December 31, 2023?
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