Full Press Release Details
Haoxi Health Technology Limited Reports Unaudited Financial Results
for The Six Months Ended December 31, 2023
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
Chairman and Chief Executive Officer of the Company, stated that, "We are pleased to record an increase in revenue of 157% to US$23.50
million and in gross profit of 65% to US$1.20 million during the first six months ended December 31, 2023. The growth we achieved during
this period underscores our commitment to providing innovative and effective online marketing solutions. Looking ahead, we remain committed
to leveraging the power of popular media platforms in China to drive success for our advertiser clients and deliver sustainable value
to our shareholders. With our experience in the online marketing industry, we believe HAO is prepared to enhance its financial performance
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
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 $9.16 million and $23.50 million for the six months
ended December 31, 2022 and 2023, respectively. The increase in our revenue is mainly attributable to the increase in the number of clients
we served, which increased from 183 for the six months ended December 31, 2022 to 338 in the comparative period ended December 31,2023,
as well as an increase in the average revenue per client from $50,070 for the six months ended December 31, 2022 to $69,538 for the six
months ended December 31, 2023. The higher average revenue per client in the current year is mainly attributable to higher advertisement
expenditure by our health care industry clients.
The average revenue per client under our advertisement
pricing model consists of two components: 1) the average per unit-of-service price, which is the average price per click-through that
we charge our advertiser customers, and 2) the quantity of services, which is actual number of click-throughs with respect to each advertiser.
The following table shows the components that impact our revenue and their correlation.
| Six Months Ended December 31, | ||||||||||
| 2022 | 2023 | |||||||||
| Revenue per click-through ($) | 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.
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 $13.87 million or 164%, from $8.43 million for the six months ended December 31, 2022 to $22.30
million for the six months ended December 31, 2023. The increase in cost of revenue was basically in line with the increase in revenue.
Gross profit and gross margin
Our gross profit increased by $0.47 million, from
$0.73 million for the six months ended December 31, 2022 to $1.20 million for the six months ended December 31, 2023. Gross profit as
a percentage of revenue ("profit margin") was 5.11% for the six months ended December 31, 2023, lower than 7.97% for the six
months ended December 31, 2022, mainly due to market competition. The Company needed to provide rebates to some customers, in order to
maintain and expand the customer base.
Selling and marketing expenses
Our selling and marketing expenses primarily consist
of payroll costs and office related expenses. Selling and marketing expenses increased by 44% from $14,312 in the six months ended December
31,2022 to $20,564 in the six months ended December 31, 2023. It was mainly due to an increase in bonuses paid to our sales staff, which
were calculated based on sales performance.
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 $132,326,
or 66%, from $199,284 for the six months ended December 31, 2022 to $331,610 for the six months ended December 31, 2023. The increase
was mainly attributable to an increase in salary and bonuses of the management team and professional fees in connection with our IPO.
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 $7,000, or 29%, from $23,842 for the six months ended December 31, 2022 to $30,842 for the six months ended December 31, 2023. It was
mainly attributable to the increase in salaries of R&D staff.
We had income taxes of $39,001 and $40,030 for
the six months ended December 31, 2022 and 2023, respectively.
As a result of the foregoing, we had net income
of $0.45 million and $0.76 million for the six months ended December 31, 2022 and 2023, respectively.
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
For more information, please contact:
WFS Investor Relations Inc.
Janice Wang, Managing Partner
Email: services@wealthfsllc.com
Phone: +86 13811768599
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$0.0001 per share, 150,000,000 shares authorized, and 12.210,000 and 7,730,000 shares issued and outstanding. | 1,221 | 1,221 | ||||||
| Class B Ordinary Shares (Par value US$0.0001 per share, 50,000,000 shares authorized, and 17,270,00 and 17,270,000 shares issued and outstanding. | 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
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME