Happiness Biotech Announced Financial Results for Fiscal Year Ended March 31, 2021

Rhea-AI Summary

Happiness Biotech Group Limited (HAPP) reported a 9.9% revenue increase year-over-year for the fiscal year ended March 31, 2021, totaling $71.48 million. However, sales from healthcare products plummeted 30.2% to $45.39 million, attributed to COVID-19 impacts. General and administrative expenses surged 44.5% to $5.03 million. Net income dropped significantly to $691,956, or $0.03 per share, down from $12.69 million or $0.53 per share the previous year. The company is shifting focus to e-commerce and automobile sales, closing 10 experience stores due to poor performance.

Positive

• Revenue growth of 9.9% to $71.48 million.
• Expansion into e-commerce and automobile sales showing early success.

Negative

• Healthcare product sales fell 30.2% to $45.39 million.
• Net income decreased significantly to $691,956 from $12.69 million.
• General and administrative expenses increased 44.5%.

NANPING, China, Aug. 2, 2021 /PRNewswire/ -- Happiness Biotech Group Limited (the "Company" or Nasdaq: HAPP), an innovative China-based nutraceutical and dietary supplements producer and e-commerce services provider, today announced its financial results for the fiscal year ended March 31, 2021.

FY 2020 Financial Highlights:

• Revenue increased $6,422,750 or 9.9% to $71,484,703 for the year ended March 31, 2021, as compared with $65,061,953 for the fiscal year ended March 31, 2020. The increase was primarily due to the new goods or service provided including online sale, automobile sale and advertising service in 2021.
• Sales from the healthcare products dropped down significantly to $45,389,702 during fiscal year 2021, a decrease of 30.2% as compared with fiscal year ended March 31, 2020, due to adverse impact of COVID-19 starting from January 2020.
• General and administrative expenses was $5,030,899 for the fiscal year ended March 31, 2021, representing an increase of $1,548,440 or 44.5%, compared with $3,482,459 for the fiscal year ended March 31, 2020. The increase was primarily attributable to the shares our employees from April 1, 2020 through March 31, 2021 as well as the service charges by internet search engine of key words, brand promotion costs of online sales.
• The Company reported $691,956 of net income attributable to common shareholders, or $0.03 per basic and diluted share in the fiscal year ended March 31, 2021, compared to net income attributable to common shareholders of $12.69 million, or $0.53 per basic and diluted share, in the comparative period.

"2020 was a very tough year for us, as travelling is restricted from time to time during the whole year due to COVID-19, the performance of our experience stores were getting worse. In 2021, we closed 10 experience stores due to their poor performance to avoid further losses. Meanwhile, we began to explore new business opportunities in e-commerce and automobile sale industries. It is exciting that our new business has achieved good results in less than half a year. In order to reduce the cost of trial and error, we chose B2B's business model from the beginning. Utilizing the supply chain and marketing resources accumulated over the years, we aim to provide business solutions for SMEs. Our online store, Internet information and advertising services and automobile business are essentially based on our B2B business model for small and medium-sized enterprises.

We are very grateful for our success in attracting a group of great talents and investors in the past year, who are the key driven for the development of our new business. Although the profit margin of our new business is relatively low compared with our traditional healthcare products business at the beginning due to upfront cost, we believe that with the maturity of our business model and the continuous improvement of operation efficiency, we will obtain higher gross margin and exponential growth in scale," said Mr. Xuezhu Wang, CEO of the Company.

About Happiness Biotech Group Limited

Headquartered in Nanping, China, Happiness Biotech Group Limited has three business operations: nutraceutical and dietary supplements, e-commerce and automobile sales. The nutrition and dietary supplements business is focusing on the research, development, manufacture and marketing of various products made from Chinese herbal extracts and other ingredients. Over the past 17 years, we have established a product portfolio consisting of 23 PRC National Medical Products Administration registered "Blue-Cap" SKUs of nutraceutical and dietary supplements products. Our e-commerce business focuses on providing e-commerce solutions and services for small and medium-sized enterprises. Our mission for the e-commerce segment is to enable small and medium-sized enterprises to fully leverage the power of e-commerce to grow rapidly. We started our automobile sale business in November 2020. The mission for our automobile sale business is to connect different car dealers and offer better overall sales experience and services to purchasers, and to streamline the automotive industry transaction. For more information, please visit: www.happ.org.cn

Forward-Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. 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 following:  the Company's goals and strategies; the Company's future business development; product and service demand and acceptance; changes in technology; economic conditions; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China, the COVID-19 outbreak and its impact on our operations and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission.  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 U.S. Securities and Exchange Commission, 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.

 

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SOURCE Happiness Biotech Group Limited

FAQ

What are the financial results for Happiness Biotech Group Limited for FY 2021?

Happiness Biotech reported a revenue of $71.48 million for FY 2021, an increase of 9.9% from the previous year.

How did COVID-19 impact Happiness Biotech's healthcare product sales?

Healthcare product sales decreased by 30.2% to $45.39 million due to the adverse effects of COVID-19.

What is the recent net income reported by HAPP?

Happiness Biotech reported a net income of $691,956 for the fiscal year ended March 31, 2021.

What new business opportunities is Happiness Biotech pursuing?

The company is exploring e-commerce and automobile sales, having closed 10 underperforming experience stores.