BEIJING, October 29, 2024 – Haoxi Health Technology Limited (“HAO”), a Beijing-based online marketing solutions provider, today announced its financial results for the fiscal year that ended June 30, 2024. The company experienced substantial growth, driven by increased client spending and an expanding customer base, particularly within the healthcare sector.
Financial Highlights for Fiscal 2024
Key financial results for the fiscal year ending June 30, 2024, include:
- Net revenue: $48.52 million, a 72% increase compared to $28.23 million in 2023.
- Gross profit: Increased by 33% to $2.75 million, up from $2.06 million in the previous fiscal year.
- Net income: Rose by 33.0% to $1.29 million, compared to $0.97 million in the fiscal year ended June 30, 2023.
Zhen Fan, Chairman and Chief Executive Officer of HAO, commented on the results, stating, “HAO has realized financial growth in fiscal year 2024 with net revenue increasing from $28.23 million in fiscal 2023 to $48.52 million in fiscal 2024, a 72% increase. This growth is largely attributed to the rise in average revenue per existing client alongside an expanding customer base. These results are driven by our marketing strategies and the growing demand for our services, particularly within the healthcare sector.”
Fan continued, “While costs increased with revenue, from $26.17 million to $45.77 million, this aligns with our growth strategy. Gross profit improved to $2.75 million, though the margin dipped slightly to 5.7% due to competitive pressures. Overall, we achieved net income of $1.29 million for the fiscal year ending June 30, 2024, up from $0.97 million in the same period a year prior.”
Recent Developments
HAO has also pursued strategic partnerships and funding to further its growth, including:
- Strategic Partnership: On September 25, 2024, the company announced a strategic partnership with AI platform Gauss Intelligence (Beijing) Technology Co., Ltd., a subsidiary of Global Mofy AI Ltd (Nasdaq: GMM). This collaboration aims to leverage the advanced capabilities of Gausspeed, a generative AI platform, with HAO’s application scenarios to deliver AI marketing solutions.
- Follow-on Offering: On September 20, 2024, the HAO announced the closing of a follow-on offering underwritten by EF Hutton LLC, which is meant to raise aggregate gross proceeds of $12 million, before deducting underwriting discounts and other offering expenses.
Results of Operations
Hao generates revenue from one-stop online marketing solutions, including traffic acquisition, content production, data analysis, and advertising campaign optimization.
- Revenue: Net revenue increased from $28.23 million in the fiscal year ended June 30, 2023, to $48.52 million in the fiscal year ended June 30, 2024. This increase is primarily due to an increase in average revenue per client, rising from $71,830 in fiscal 2023 to $89,355 in fiscal 2024. The company served 393 and 543 customers in the fiscal years 2023 and 2024, respectively.
- Cost of Revenue: Costs rose from $26.17 million in fiscal 2023 to $45.77 million in the fiscal year ended June 30, 2024, which is in line with the revenue increase.
- Gross profit and Gross Margin: Gross profit increased from $2.06 million for the fiscal year ended June 30, 2023, to $2.75 million for the fiscal year ended June 30, 2024. However, gross margin decreased to 5.7% from 7.3% due to increased market competition.
- Selling and Marketing Expenses: Selling and marketing expenses rose by 30% from $32,133 in the fiscal year ended June 30, 2023, to $41,613 in the fiscal year ended June 30, 2024. This was due to marketing increases.
- General and Administrative Expenses: General and administrative expenses rose by 17%, from $775,961 in the fiscal year ended June 30, 2023, to $911,531 in the fiscal year ended June 30, 2024. The increase was primarily due to rising salaries, bonuses, and professional fees related to the company’s initial public offering.
- Research and Development Expenses: R&D expenses rose by 38%, from $58,161 in the fiscal year ended June 30, 2023, to $79,985 in the fiscal year ended June 30, 2024, primarily due to increased salaries for R&D staff.
- Income Taxes: Income taxes were $220,653 and $443,582 for the fiscal years ended June 30, 2023 and 2024, respectively.
- Net (Loss)/Income: Driven by the aforementioned results, the company reported a net income of $0.97 million and $1.29 million for the fiscal years ended June 30, 2023 and 2024, respectively.
About Haoxi Health Technology Limited
Haoxi Health Technology Limited, headquartered in Beijing, China, is an online marketing solutions provider focused on the healthcare industry. The company provides one-stop online marketing solutions, specializing in online short video marketing. It helps advertisers acquire and retain customers on popular platforms in China, such as Toutiao, Douyin, WeChat, and Sina Weibo.
For more information, please visit: http://ir.haoximedia.com.
Forward-Looking Statements
This press release includes forward-looking statements. These statements are not guarantees of future performance and involve risks and uncertainties. Investors should review the “Risk Factors” section of the company’s filings with the SEC. 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
