Haoxi Health Technology Reports Robust Financials
BEIJING, October 29, 2024 (GLOBE NEWSWIRE) – Haoxi Health Technology Limited (HAO), a prominent online marketing solutions provider based in Beijing, China, has unveiled its financial results for the fiscal year that concluded on June 30, 2024.
Key Financial Highlights
HAO demonstrated considerable financial growth during the fiscal year:
- Net Revenue: Increased by 72% to $48.52 million, a substantial rise from $28.23 million in 2023.
- Gross Profit: Rose by 33% to $2.75 million.
- Net Income: Experienced a 33% increase, reaching $1.29 million.
- Customer Base: Expanded from 393 to 543 clients.
- Average Revenue Per Client: Increased from $71,830 to $89,355.
- Cash Position: Strengthened to $6.66 million, up from $1.20 million year-over-year.
Mr. Zhen Fan, Chairman and Chief Executive Officer of Haoxi Health Technology, commented on the company’s performance, saying, “HAO’s strong financial results reflect our successful marketing strategies and the growing demand for our specialized services, particularly within the healthcare sector.”
He further added that while costs grew in line with revenue, impacting the gross margin to some degree due to competitive factors, the company remained committed to its expansion strategy.
Recent Developments
HAO has also recently announced key strategic initiatives:
- Strategic Partnership: On September 25, 2024, a strategic partnership was announced with Gauss Intelligence (Beijing) Technology Co., Ltd, an AI platform, to deliver advanced AI marketing solutions.
- Follow-on Offering: The company successfully concluded a $12 million follow-on offering, underwritten by EF Hutton LLC, on September 20, 2024.
Operational Overview
HAO provides comprehensive online marketing solutions, including traffic acquisition, content creation, data analysis, and campaign optimization. Revenue is generated from one-stop online marketing, through its operating entity, Beijing Haoxi Digital Technology Co. Ltd. The surge in average revenue per client is attributed to higher advertising expenditures by health care industry’s clients. The growth in services has also benefited from the increasing popularity of ByteDance media platforms.
The company’s cost of revenue, consisting primarily of online traffic purchases, increased in line with revenue growth. Selling and marketing expenses were lower than anticipated, but general and administrative expenses rose due to increased salaries and professional fees associated with the IPO. Research and development expenses also rose, reflecting the planned development of the company’s online ads bidding analysis software, Bidding Compass.
Financial Outlook
With the recent capital infusion and strategic partnerships in place, HAO is positioned for continued growth in the online marketing sector, particularly in the healthcare industry. The positive financial results reflect the Company’s effort in meeting the growing market demands with its AI-integrated marketing solutions.
