SOS Limited Reports 2024 semi-annual financial results
SOS reported its semi-annual financial results for the six months ended June 30, 2024. Net revenue increased by 47.1% to $60.5 million, primarily due to higher sales of natural rubber. The company's revenue breakdown was: 91.7% from Commodities Trading, 7.8% from Hosting Services, and 0.5% from Others. Gross profit ratio improved from 0.2% to 4.0%. However, GAAP net loss increased slightly to $10.9 million from $10.7 million in the same period last year. Operating costs rose by 39.3% to $58.1 million, while general and administrative expenses increased by 54.3% to $14.5 million. The company's cash and cash equivalents stood at $246.7 million, a decrease of $3.2 million from the previous year. SOS raised $24.79 million through share issuance during the period.
SOS ha riportato i risultati finanziari semestrali per i sei mesi conclusisi il 30 giugno 2024. Il fatturato netto è aumentato del 47,1% raggiungendo 60,5 milioni di dollari, principalmente a causa dell'aumento delle vendite di gomma naturale. La suddivisione dei ricavi dell'azienda è stata: 91,7% dal commercio di materie prime, 7,8% dai servizi di hosting e 0,5% da altre fonti. Il rapporto di utile lordo è migliorato dallo 0,2% al 4,0%. Tuttavia, la perdita netta secondo i principi contabili GAAP è aumentata leggermente a 10,9 milioni di dollari rispetto ai 10,7 milioni dello stesso periodo dell'anno scorso. I costi operativi sono aumentati del 39,3% arrivando a 58,1 milioni di dollari, mentre le spese generali e amministrative sono cresciute del 54,3% a 14,5 milioni di dollari. Le disponibilità liquide e mezzi equivalenti ammontano a 246,7 milioni di dollari, con una diminuzione di 3,2 milioni rispetto all'anno precedente. SOS ha raccolto 24,79 milioni di dollari attraverso l'emissione di azioni durante il periodo.
SOS informó sus resultados financieros semestrales para los seis meses que terminaron el 30 de junio de 2024. Los ingresos netos aumentaron un 47.1% alcanzando los 60.5 millones de dólares, principalmente debido a un incremento en las ventas de caucho natural. La distribución de ingresos de la empresa fue: 91.7% de comercio de materias primas, 7.8% de servicios de hosting y 0.5% de otros. La relación de utilidad bruta mejoró del 0.2% al 4.0%. Sin embargo, la pérdida neta según GAAP aumentó ligeramente a 10.9 millones de dólares desde los 10.7 millones en el mismo período del año pasado. Los costos operativos crecieron un 39.3% alcanzando los 58.1 millones de dólares, mientras que los gastos generales y administrativos aumentaron un 54.3% a 14.5 millones de dólares. El efectivo y equivalentes de efectivo suman 246.7 millones de dólares, una disminución de 3.2 millones con respecto al año anterior. SOS recaudó 24.79 millones de dólares a través de la emisión de acciones durante el período.
SOS는 2024년 6월 30일로 종료된 6개월 간의 반기 재무 결과를 발표했습니다. 순 수익은 47.1% 증가하여 6050만 달러에 이르렀습니다, 주로 천연 고무 판매 증가에 기인합니다. 회사의 수익 분포는 다음과 같았습니다: 91.7%는 원자재 거래, 7.8%는 호스팅 서비스, 0.5%는 기타입니다. 총 이익률은 0.2%에서 4.0%로 개선되었습니다. 그러나 GAAP 기준 순손실은 작년 같은 기간의 1070만 달러에서 약간 증가하여 1090만 달러가 되었습니다. 운영 비용은 39.3% 증가하여 5810만 달러에 도달했고, 일반 및 관리 비용은 54.3% 증가하여 1450만 달러에 이르렀습니다. 회사 현금 및 현금성 자산은 2억 4670만 달러입니다, 전년 대비 320만 달러 감소했습니다. SOS는 해당 기간 동안 주식 발행을 통해 2479만 달러를 모금했습니다.
SOS a publié ses résultats financiers semestriels pour les six mois se terminant le 30 juin 2024. Le chiffre d'affaires net a augmenté de 47,1 % pour atteindre 60,5 millions de dollars, principalement en raison d'une hausse des ventes de caoutchouc naturel. La répartition des revenus de l'entreprise était : 91,7 % provenant du commerce de matières premières, 7,8 % des services d'hébergement et 0,5 % d'autres sources. Le ratio de bénéfice brut s'est amélioré, passant de 0,2 % à 4,0 %. Cependant, la perte nette selon les normes GAAP a légèrement augmenté à 10,9 millions de dollars contre 10,7 millions de dollars au même période l'année dernière. Les coûts d'exploitation ont augmenté de 39,3 % pour atteindre 58,1 millions de dollars, tandis que les frais généraux et administratifs ont crû de 54,3 % pour atteindre 14,5 millions de dollars. Les liquidités et équivalents de liquidités s'élevaient à 246,7 millions de dollars, soit une baisse de 3,2 millions par rapport à l'année précédente. SOS a levé 24,79 millions de dollars par le biais d'une émission d'actions pendant la période.
SOS hat seine halbjährlichen Finanzberichte für die sechs Monate bis zum 30. Juni 2024 veröffentlicht. Der Nettoumsatz stieg um 47,1% auf 60,5 Millionen Dollar, hauptsächlich bedingt durch höhere Verkaufszahlen von Naturkautschuk. Die Umsatzaufteilung des Unternehmens war: 91,7% aus Rohstoffhandel, 7,8% aus Hosting-Diensten und 0,5% aus Sonstigem. Die Bruttogewinnquote verbesserte sich von 0,2% auf 4,0%. Allerdings stieg der GAAP-Nettoverlust leicht auf 10,9 Millionen Dollar, verglichen mit 10,7 Millionen Dollar im gleichen Zeitraum des Vorjahres. Die Betriebskosten erhöhten sich um 39,3% auf 58,1 Millionen Dollar, während die allgemeinen und verwaltungsbezogenen Ausgaben um 54,3% auf 14,5 Millionen Dollar anstiegen. Die liquiden Mittel und Zahlungsmitteläquivalente betrugen 246,7 Millionen Dollar, ein Rückgang von 3,2 Millionen Dollar im Vergleich zum Vorjahr. SOS hat in diesem Zeitraum 24,79 Millionen Dollar durch die Ausgabe von Aktien aufgenommen.
- Net revenue increased by 47.1% to $60.5 million
- Gross profit ratio improved from 0.2% to 4.0%
- Cash and cash equivalents remain strong at $246.7 million
- Raised $24.79 million through share issuance
- GAAP net loss increased slightly to $10.9 million
- Operating costs rose by 39.3% to $58.1 million
- General and administrative expenses increased by 54.3% to $14.5 million
- Cash and cash equivalents decreased by $3.2 million from the previous year
Insights
SOS 's semi-annual results show mixed signals. Revenue increased by
The gross profit margin improved significantly from
The company's cash position remains strong at
The shift in focus towards commodities trading and hosting services, away from cryptocurrency mining, suggests a strategic realignment. This could potentially lead to more stable revenue streams in the future, but investors should monitor the profitability of these new focus areas closely.
SOS's pivot from cryptocurrency mining to commodities trading is noteworthy. The company's revenue now heavily relies on commodities trading (
The planned resumption of cryptocurrency mining operations in October 2024 adds an element of uncertainty. Crypto markets are volatile and the impact on SOS's financials could be significant, either positively or negatively.
The increase in hosting services revenue from
Investors should watch for improvements in operational efficiency and profitability in the coming quarters, as the current net loss position is concerning despite revenue growth.
Results of operations
Revenue
As of June 30, 2024, SOS focuses on three product and service lines including Commodities Trading, Hosting Service and Others. Commodities Trading contributes
Six months ended | ||||||||
Revenue by Products and Services | US$ | Percentage | ||||||
Commodities Trading | 55,466 | 91.7 | % | |||||
Hosting Services | 4,719 | 7.8 | % | |||||
Others | 329 | 0.5 | % | |||||
Total revenue -net | $ | 60,514 | 100 | % | ||||
Six months ended | ||||||||
Revenue by Products and Services | US$ | Percentage | ||||||
Commodity Trading | 37,815 | 90.5 | % | |||||
Cryptocurrency Mining | 350 | 0.8 | % | |||||
Hosting Services | 1,225 | 2.9 | % | |||||
Others | 2,416 | 5.8 | % | |||||
Total revenue -net | $ | 41,806 | 100 | % | ||||
Net revenue was
Unaudited Condensed Consolidated Statements of Comprehensive Loss (US$ thousands, except share data and per share data, or otherwise notes) | ||||||||
Six months ended | ||||||||
30-Jun- | 30-Jun- | |||||||
US$ | US$ | |||||||
Revenue | 41,835 | 60,531 | ||||||
Business taxes and surcharges | (29) | (17) | ||||||
Net revenue | 41,806 | 60,514 | ||||||
Operating costs | (41,716) | (58,083) | ||||||
Gross profit | 90 | 2,431 | ||||||
Gross profit ratio | 0.2 | % | 4.0 | % | ||||
Revenue and Service by Products | ||||||||||||||||
Six months ended | Six months ended | |||||||||||||||
Revenue by Products and Services | US$ | Percentage | US$ | Percentage | ||||||||||||
Commodity Trading | 37,815 | 90.5 | % | 55,466 | 91.7 | % | ||||||||||
Cryptocurrency Mining | 350 | 0.8 | % | - | - | % | ||||||||||
Hosting Services | 1,225 | 2.9 | % | 4,719 | 7.8 | % | ||||||||||
Others | 2,416 | 5.8 | % | 329 | 0.5 | % | ||||||||||
Total | 41,806 | 100 | % | 60,514 | 100 | % | ||||||||||
Operating Costs and Expenses
Operating costs were
Selling Expenses
Selling expenses mainly relate to our commodity business and include freight-out expenses, custom clearing agency fee, warehouse rental expense, promotional expense, sales commission and payroll expenses to sales team. Selling expenses increased to
General and Administrative Expenses
General and administrative expenses were
Operating Loss
GAAP net loss was
Income Tax
The Company obtained the tax return
GAAP net loss attributable to ordinary shareholders was
GAAP Basic EPS was
Cash Flow
Unaudited Condensed Consolidated Statement of Cash Flow (US$ thousands, except share data and per share data, or otherwise noted) | ||||||||
Six | Six | |||||||
30-Jun-23 | 30-Jun-24 | |||||||
Unaudited | Unaudited | |||||||
US$ | US$ | |||||||
Cash Flow from Operating Activities: | ||||||||
Net loss | (10,697) | (10,902) | ||||||
Less: Net income from discontinued operation | - | 1 | ||||||
Net loss from continuing operation | (10,697) | (10,903) | ||||||
Adjustments: | ||||||||
Depreciation and amortization | 106 | 8,765 | ||||||
Share-based compensation | 2,053 | 807 | ||||||
Amortization of right of use assets | 268 | 281 | ||||||
Accretion of finance leases | 19 | 6 | ||||||
Impairment of cryptocurrencies | 81 | - | ||||||
Operating cash flows before movements in working capital | (8,170) | (1,044) | ||||||
Changes in working capital: | ||||||||
Inventory | 1,224 | (155) | ||||||
Accounts receivable | 56 | 297 | ||||||
Other receivables | (12,320) | (115,566) | ||||||
Amount due from related parties | 23,916 | 29,739 | ||||||
Intangible assets | (350) | - | ||||||
Accrued liabilities | (3,510) | 25,642 | ||||||
Accounts payable | 1,089 | (24,016) | ||||||
Tax payable | 211 | 400 | ||||||
Other payables | (3,857) | 32,588 | ||||||
Amount due to related parties | (1) | (999) | ||||||
Lease liabilities | (269) | (282) | ||||||
Net cash used in operating activities from continuing operations | (1,981) | (53,396) | ||||||
Net cash used in in generating from discontinued operating activities | - | 1 | ||||||
Net cash used in operating activities | (1,981) | (53,395) | ||||||
Cash flows from financing activities: | ||||||||
Repayment of principle portion of lease liabilities | (288) | (288) | ||||||
Proceeds from share issuance, net of issuance costs | - | 24,836 | ||||||
Net cash generated from/(Used in) financing activities | (288) | 24,548 | ||||||
Net decrease in cash and cash equivalents | (2,269) | (28,847) | ||||||
Cash and cash equivalents at beginning of the period | 259,492 | 279,177 | ||||||
Effect of exchange rates on cash and cash equivalents | (7,339) | (3,603) | ||||||
Cash and cash equivalents at end of the period | 249,884 | 246,727 | ||||||
Supplemental cash flow information | ||||||||
Cash paid for income tax | 646 | - | ||||||
Cash Flow Used in Operating Activities
As of June 30, 2024, the Company had cash and cash equivalents of
Cash Flow Generated from Investing Activities
The Company experienced little investing activities for this period.
Cash Flow Used in Financing Activities
The Company raised funds of
About SOS Limited
SOS is an emerging blockchain-based and big data-driven marketing solution provider. SOS is also engaged in blockchain and cryptocurrency operations, which currently include cryptocurrency mining and may expand into cryptocurrency security and insurance in the future. Since April 2021, we launched commodity trading via our subsidiary SOS International Trading Co. Ltd and Weigou International Trading Co Ltd. Major trading commodity includes mineral resin, soy bean, wheat, sesame, liquid sulfur, petrol coke and latex etc. For more information, please visit: http://www.sosyun.com/.
Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking statements" within the meaning of the federal securities laws, including, but not limited to, our expectations for future financial performance, business strategies or expectations for our business. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. SOS cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Words such as "may," "can," "should," "will," "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "target," "look" or similar expressions may identify forward-looking statements. Specifically, forward-looking statements may include statements relating to the Company's:
- ability to execute its business plan;
- changes in the market for SOS' products and services; and
- expansion plans and opportunities.
These forward-looking statements are based on information available as of the date of this press release and our management's current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.
These risks and uncertainties include, but not are limited to, the risk factors described by SOS in its filings with the Securities and Exchange Commission ("SEC"). These risk factors and those identified elsewhere in this press release, among others, could cause actual results to differ materially from historical performance and include, but are not limited to:
- US government's policies and regulatory oversight of crypto-currency mining operation and our other operations;
- SOS's cryptocurrency mining, commodity trading and marketing solutions businesses are still under development, with many uncertainties in integration of these various business segments;
- Failure to manage the newly launched commodities trading business effectively;
- Loss of key customers in the commodity trading business;
- failure to access a large quantity of power at reasonable costs could significantly increase SOS operating expenses and adversely affect our demand for SOS's mining activities;
- shortages in, or rises in the prices of mining machines may adversely affect the Company's business;
- any significant or prolonged failure in the data warehouse facilities and data mining facilities that SOS operates or services it provides, including events beyond its control, would lead to significant costs and disruptions and would reduce the attractiveness of its facilities, harm its business reputation and have a material adverse effect on its results of operation;
- security breaches or alleged security breaches of our data warehouses could disrupt SOS operations and have a material adverse effect on its business, financial condition and results of operation; and
- other risks and uncertainties indicated in SOS's SEC reports or documents filed or to be filed with the SEC by SOS.
Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and you should not place undue reliance on these forward-looking statements in deciding whether to invest in our securities. We do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
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SOURCE SOS Limited
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