Haoxi Health Technology Reports Strong Financial Performance for Fiscal Year 2024
BEIJING, Oct. 29, 2024 — Haoxi Health Technology Limited (“the Company” or “HAO”), an online marketing solutions provider headquartered in Beijing, China, released its financial results today for the fiscal year that ended June 30, 2024.
Financial Highlights for Fiscal 2024
HAO experienced substantial growth during the fiscal year, showcasing the effectiveness of its strategies and the rising market demand for its online marketing services, particularly within the healthcare sector.
- Net revenue for the fiscal year ending June 30, 2024, reached $48.52 million, reflecting a 72% increase from $28.23 million in 2023.
- Gross profit increased by 33% to $2.75 million for the fiscal year ended June 30, 2024, compared to $2.06 million in the prior year.
- Net income grew by 33.0% to $1.29 million in the fiscal year ended June 30, 2024, up from $0.97 million for the fiscal year ended June 30, 2023.
Mr. Zhen Fan, Chairman and Chief Executive Officer of HAO, stated, “HAO has experienced financial growth in the fiscal year ended June 30, 2024…. This growth is largely due to a rise in average revenue per client in 2024, which increased from $71,830 to $89,355, and an expanded customer base that grew from 393 to 543 clients. These results are attributed to our marketing strategies and the growing demand for our services, particularly in the healthcare sector.”
He added, “While costs rose in tandem with revenue, this was in line with our growth strategy to scale up sales. 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 ended June 30.”
Recent Developments
- Strategic Partnership with AI Platform: On September 25, 2024, the company announced a strategic partnership with Gauss Intelligence (Beijing) Technology Co., Ltd. (a subsidiary of Global Mofy AI Ltd (Nasdaq: GMM)). This collaboration aims to utilize the capabilities of Gausspeed, a generative AI platform, with HAO’s application scenarios to deliver cutting-edge AI marketing solutions.
- Follow-on Offering: On September 20, 2024, the company announced the completion of a follow-on offering, underwritten by EF Hutton LLC. The offering raised aggregate gross proceeds of $12 million, before deducting underwriting discounts and other offering expenses.
Results of Operations for the Fiscal Year Ended June 30, 2024
HAO generates income from its comprehensive one-stop online marketing services, including: traffic acquisition from major online platforms, content creation, data analysis, and advertising campaign optimization. These services are provided to advertisers through its operating entity, Beijing Haoxi Digital Technology Co. Ltd., located in the People’s Republic of China.
- Revenue: Net revenue rose to $48.52 million in the fiscal year 2024, up from $28.23 million in 2023. This increase was primarily because of a rise in the average revenue per client, from $71,830 in fiscal 2023 to $89,355 in the fiscal year ended June 30, 2024. The company served 393 and 543 customers in fiscal years 2023 and 2024, respectively. The higher average revenue per client in the current year is mainly attributable to higher advertisement expenditures made by our health care industry clients. The increase in our quantity of services was because more people determined to use online services since the beginning of the COVID-19 pandemic, and the strong recovery from our client base since January 2024 occurred when the COVID control measures were lifted in China. In addition we attribute the increase in services, in part to the increasing popularity of ByteDance media platforms, which we mainly collaborated with, among our advertiser customers.
- Cost of Revenue: The cost of revenue, primarily made up of online traffic purchases and staff salaries and benefits, increased by 75% to $45.77 million from $26.17 million in fiscal 2023. This increase aligned with the revenue increase.
- Gross Profit and Gross Margin: Gross profit increased to $2.75 million from $2.06 million in 2023. The gross profit margin, however, decreased slightly to 5.7% from 7.3% due to market competition.
- Selling and Marketing Expenses: These expenses increased by 30% to $41,613 for the fiscal year ended June 30, 2024, from $32,133 in the prior year, primarily due to a higher customer retention rate.
- General and Administrative Expenses: These expenses increased by 17% to $911,531. This increase was largely because of salary and bonus increases for the management team and professional fees associated with the January 30, 2024, initial public offering.
- Research and Development Expenses: R&D expenses increased by 38% to $79,985, primarily due to an increase in salaries for R&D staff working on Bidding Compass, the company’s online ads bidding analysis software.
- Income Taxes: Income taxes were $443,582 in the fiscal year ended June 30, 2024, compared to $220,653 for the fiscal year ended June 30, 2023.
- Net Income: As a result of the aforementioned factors, net income was $1.29 million for the fiscal year ended June 30, 2024, up from $0.97 million for the fiscal year ended June 30, 2023.
About Haoxi Health Technology Limited
Haoxi Health Technology Limited, headquartered in Beijing, China, is an online marketing solutions provider that specializes in offering services to healthcare industry clients. The company’s growth is driven by the increasing utilization of news feed ads and the rapid expansion 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 committed to reducing costs, improving efficiency, and providing convenient online marketing solutions to advertisers.
For further information, please visit: http://ir.haoximedia.com.
Forward-Looking Statement
This press release contains forward-looking statements. Forward-looking statements include, but are not limited to, 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 HAO 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. 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”). Investors ought not to place undue reliance upon any forward-looking statements in this press release because these forward-looking statements are not guarantees of future actions, performance, or results. Additional factors are discussed in the Company’s filings with the SEC, 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 hereof.
Investor Relations
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
