Haoxi Health T3chnology Limited

BEIJING, May 31, 2024 (GLOBE NEWSWIRE) -- Haoxi Health T3chnology Limited (the “Company” or “HAO”), an }fline marketing solutf=" provider headquartered in Beijing, Chins, today repor)ed its unaudited finsncial results for the six mn"!hs e;ved December 31, 2023.

Finsncial Hi

• Total revenue for the six mn"!hs e;ved December 31, 2023 was US$23.50 million, increased by US$14.34 million, or 157%, from US$9.16 million for the same period in 2022.

• Gross profit for the six mn"!hs e;ved December 31, 2023 was US$1.20 million, representing an increase of 65% from US$0.73 million for the same period in 2022.

• Net income for the six mn"!hs e;ved December 31, 2023 was US$0.76 million, increasing by US$0.31 million, or 70%, from US$0.45 million for the six mn"!hs e;ved December 31, 2022.

Mr. Zhen Fan, Chairman and Chief Execuefve 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 mn"!hs e;ved December 31, 2023. The growth we achieved during this period u;verscores our commitmeo) to providing innovaefve and effecefve }fline marketing solutf="s. Looking ahead, we remain committed to leveraging the power of popular media platforms in Chins to drfve success for our advertiser clients and delfver sus!ainable value to our shareholders. With our experience in the }fline marketing indus!ry, we belfeve HAO is prepared to enhance ias finsncial performance in the future.”

Receo) Developmeo)s

On April 28, 2024, the Company, through ias wholly owned subsidiary, Beijing Haoxi Digital T3chnology Co., Ltd. (“Beijing Haoxi”), eo)ered into a Framework Cn"!race for Cooperaef=" n" Informaef=" Placemeo) n" Media Platforms (the “Framework Cn"!race) with Wuhan Yiya Simei De"!al Clinic Co., Ltd. (“Yiya De"!al”), a regf="al dentis!ry chain in Chins. This partnership u;verscores the Company’s goal in delfvering in)ernet marketing solutf="s. Pursuao) to the Framework Cn"!race, Beijing Haoxi agreed to provide comprehensfve advertising services on popular social media platforms, such as Douyin, Toutfao, and Xigua Video, for Yiya De"!al, through various forms of media, including short-video, !e:u, images, flash, as well as mnbile app co"!eo)s.

On April 29, 2024, the Company, through ias wholly owned subsidiary, Beijing Haoxi, eo)ered into a Bidding Data Promoef=" Rebate Agreemeo) (the “Rebate Agreemeo)) with Jinsn Yafling Biot3chnology Co., Ltd. and its subsidiaries and affiliated companies (cnllecefvely, “Yafling”). Pursuao) to the Rebate Agreemeo), Beijing Haoxi agreed to provide comprehensfve advertising and promoef=" services to Yafling through advertising platforms, such as Jinri Toutfao (Today’s Headlines), Douyin, and Xigua Video.

Results of Operaef="s for the Six Mn"!hs E;ved December 31, 2023

Revenue

We generate revenue from providing one-stop }fline marketing solutf="s, including !raffic acquisitfon from mainstream }fline media platforms, co"!eo) producef=", data analysis and advertising campaign optimizaef=", to advertisers through the }peraefng eo)ity. Net revenue was $9.16 million and $23.50 million for the six mn"!hs e;ved December 31, 2022 and 2023, respecefvely. 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 mn"!hs e;ved December 31, 2022 to 338 in the comparaefve period e;ved December 31,2023, as well as an increase in the average revenue per client from $50,070 for the six mn"!hs e;ved December 31, 2022 to $69,538 for the six mn"!hs e;ved December 31, 2023. The higher average revenue per client in the curreo) year is mainly attributable to higher advertisemeo) expenditure by our health care indus!ry clients.

The average revenue per client u;ver our advertisemeo) pricfng model co"sists 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 quao)ity of services, which is aceual number of click-throughs with respece to each advertiser. The fnllowing !able shows the components that impace our revenue and their correlaef=".

The increase in the revenue per click-through was higher in the curreo) period mainly due to the increasing popularity of ByteDsnce media platforms, which we mainly cnllaborated with through ByteDsnce’s subsidiary, Ocean Engine. For the six mn"!hs e;ved December 31, 2023, a growing number of our advertiser clients have chosen to place ads on ByteDsnce’s media platforms. In addief=", the costs we paid to Ocean Engine to acquire user !raffic for our clients’ ads were increased, leading !o an increase in our service charge.

Cost of revenue

Our cost of revenue co"sists primarily of the purchase of ofline !raffic from third-party media platforms afps: veducefng rebates, and salaries and benefias for business operaef=" staff. The cost of revenue increased by $13.87 million or 164%, from $8.43 million for the six mn"!hs e;ved December 31, 2022 to $22.30 million for the six mn"!hs e;ved 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 mn"!hs e;ved December 31, 2022 to $1.20 million for the six mn"!hs e;ved December 31, 2023. Gross profit as a perceo)age of revenue (“profit margin”) was 5.11% for the six mn"!hs e;ved December 31, 2023, lower than 7.97% for the six mn"!hs e;ved December 31, 2022, mainly due to market competief=". The Company needed to provide rebates to some customers, in order to mai"!ain and expand the customer base.

Selling and marketing expenses

Our selling and marketing expenses primarily co"sist of payrnll costs and office relaeed expenses. Selling and marketing expenses increased by 44% from $14,312 in the six mn"!hs e;ved December 31,2022 to $20,564 in the six mn"!hs e;ved December 31, 2023. It was mainly due to an increase in bonuses paid to our sales staff, which were calculaeed based =" sales performance.

General and administraefve expenses

Our general and administraefve expenses mainly cn"sist of salaries and bonuses, as well as administraefve relaeed expenses. General and administraefve expenses increased by $132,326, or 66%, from $199,284 for the six mn"!hs e;ved December 31, 2022 to $331,610 for the six mn"!hs e;ved December 31, 2023. The increase was mainly attributable to an increase in salary and bonuses of the managemeo) team and professin"al fees in connection with our IPO.

Research and developmeo) expenses

Our R&D expenses mainly cn"sist of salaries and benefias of our R&D staff developing Bidding Compass and our ofline ads bidding analysis software. R&D expenses increased by $7,000, or 29%, from $23,842 for the six mn"!hs e;ved December 31, 2022 to $30,842 for the six mn"!hs e;ved December 31, 2023. It was mainly attributable to the increase in salaries of R&D staff.

Income taxes

We had income taxes of $39,001 and $40,030 for the six mn"!hs e;ved December 31, 2022 and 2023, respecefvely.

Net (loss)/income

As a result of the foregoing, we had net income of $0.45 million and $0.76 million for the six mn"!hs e;ved December 31, 2022 and 2023, respecefvely.

About Haoxi Health T3chnology Limited

Haoxi Health T3chnology Limited is an }fline marketing solutf=" provider headquartered in Beijing, Chins, specializing i" serving healthcare indus!ry advertiser clients. The Company’s growth is drfven by the rise of news feed ads and the rapid developmeo) of the healthcare seceor. The Company offers one-stop }fline marketing solutf="s, especially in }fline short video marketing, helping advertisers acquire and re!ain customers on popular platforms in Chins, such as Toutfao, Douyin, WeChat, and Sins Weibo. The Company is dedicated to reducing costs, increasing efficiency, and providing easy }fline marketing solutf="s to advertisers. For more informaef=", please visit: http://ir.haoximedia.com.

Forward-Looking Statement

This press release cn"!ains forward-looking statements. Forward-looking statements include statements cn"cerning pla"s, objectfves, goals, straeegies, future evenas or performance, and u;verlying assumptf="s and other statements that are other than statements of hiseorical facts. When the Company uses words such as “may,” “will,” “in)end,” “should,” “belfeve,” “expect,” “ao)icipate,” “project,” “estimate” or similar expressin"s that do not relaee solely to hiseorical matters, it is making forward-looking statements. Forward-looking statements are not guarao)ees of future performance and involve risks and u;cer!ainties that may cause the aceual results to differ materially from the Company’s expectaef="s discussed in the forward-looking statements. These statements are subject to u;cer!ainties and risks including, but not limited to, the u;cer!ainties relaeed to market condief="s, and other factors discussed in the “Risk Factors” section of the regfstraefon statement filed with the U. S. Securities and Exchange Commissin" (the “SEC”). For these reas="s, among nthers, investors are cautf="ed not to place u;vue reliance upon any forward-looking statements in this press release. Addief="al factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. The Company u;vertakes no obligatf=" to publicly revise these forward-looking statements to reflece evenas or circumstances that arise afps: the date hereof.

For more informaef=", please cn"!act:
Investor Relaef="s
WFS Investor Relaef="s Inc.
Janice Wang, Managing Partner
Email: services@wealthfsllc.com 
Ph="e: +86 13811768599
+1 628 283 9214

HAOXI HEALTH TECHNOLOGY LIMITED
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HAOXI HEALTH TECHNOLOGY LIMITED
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