Financial Performance - Revenue for the six months ended June 30, 2024, reached $163.348 million, an increase of 80.2% compared to $90.657 million in the same period of 2023[5] - Gross profit for the same period was $50.192 million, up 78.1% from $28.182 million year-over-year[5] - Net profit for the period surged to $11.107 million, a significant increase of 610.6% compared to $1.563 million in the prior year[5] - The company's revenue for the first half of 2024 reached approximately $163.35 million, an increase of about 80.2% compared to $90.66 million in the same period of 2023[12] - Net profit surged over six times to approximately $11.11 million, compared to $1.56 million in the previous year[12] - Operating profit surged to $14,027 thousand, compared to $2,524 thousand in the prior year, indicating a strong operational performance[71] - Basic earnings per share rose to 2.80 cents, compared to 0.39 cents in the previous year, reflecting improved profitability[71] - The total comprehensive income for the period was $10,922 thousand, compared to $1,526 thousand in the same period last year, highlighting overall financial strength[72] Revenue Sources - Revenue from beauty products reached $149.36 million, a significant increase from $69.83 million in the previous year, contributing approximately 91.4% of total revenue[12] - YesStyle platform's revenue grew approximately 75.1% to about $125.13 million, driven by record sales of beauty products[13] - Revenue generated from influencer referrals exceeded $33.93 million, more than doubling from $15.77 million in the previous year[14] - Revenue from the customer relationship management system increased over 100% to approximately $23,796,000, up from $11,524,000 in the previous period[15] - Revenue from the Balkans region was approximately $2,264,000 during the reporting period, compared to $872,000 in the previous period[67] Customer Metrics - The number of customers on the e-commerce platform increased to 1,304,000, up from 796,000 in the previous year[1] - The average order value increased to $84.0 from $78.9 in the previous year[1] - The return rate for YesStyle decreased to 0.4% from 0.8% in the previous year, indicating improved customer satisfaction[1] - YesStyle's loyalty program membership grew by approximately 18.4% to about 13,753,000 members, compared to 11,617,000 members as of December 31, 2023[15] Cost and Expenses - Cost of sales rose by approximately $50,681,000 or 81.1% to about $113,156,000, with product cost as a percentage of revenue increasing by 1.0 percentage point to 47.3%[23] - Selling expenses rose by approximately $7,496,000 or 67.3% to about $18,642,000, mainly due to increased marketing and promotional expenses[26] - Administrative expenses for the reporting period were approximately $18,234,000, an increase of about $3,671,000 or 25.2% compared to the previous period[28] - Employee costs increased by approximately $2,477,000 or 30.6%, primarily due to performance-related bonuses of about $1,820,000[28] Market Insights - The K-Beauty product market in the U.S. achieved a market share of 20.1%, valued at $477.1 million, surpassing French beauty products at 19.3% market share[17] - The North American K-Beauty market is projected to grow at a compound annual growth rate (CAGR) of 10.02%, reaching $9.9 billion by 2032[17] - The European K-Beauty market is expected to grow at a CAGR of 9.48%, with revenues projected to reach $5.6 billion by 2032[17] Operational Developments - A second autonomous mobile robot warehouse is planned to be operational in Q1 2025 to enhance operational efficiency and meet increasing customer demand[19] - The company has established three overseas warehouses in the U.S., U.K., and Germany to support the growing K-Beauty market[21] - A three-year exclusive distribution agreement with Too Cool For School was initiated, focusing on the U.S. market and leveraging social media platforms for marketing[20] - The company is actively recruiting influencers to enhance its digital marketing strategy and improve customer engagement[20] Financial Position - Total assets as of June 30, 2024, amounted to $87,766 thousand, up from $74,485 thousand at the end of 2023, indicating strong asset growth[73] - The company reported a total equity of $43,934 thousand, up from $35,054 thousand, reflecting a solid capital position[73] - Cash and bank balances decreased to approximately $6,868,000 from $25,181,000, a reduction of about $18,081,000 during the reporting period[34] - The debt-to-equity ratio improved from approximately 34.8% to 23.9% due to the amortization of lease liabilities[36] Shareholder Information - The total number of shares held by the directors and senior management as of June 30, 2024, amounts to 154,606,530 shares, representing approximately 38.68% of the company's issued share capital[44] - Liu Guozhu holds 124,670,980 shares, representing 31.19% of the company, and his spouse holds 29,935,550 shares, representing 7.49%[43] - The company confirmed dividend income of approximately $2,000 from the investment in 嘉泓物流 during the reporting period[38] - The board has decided not to declare any interim dividend for the six months ended June 30, 2024, consistent with the previous period[39] Stock Options and Employee Compensation - The company reported a total of 1,839,757 stock options granted, with 216,048 options exercised during the reporting period[51] - The total amount received from the exercise of stock options under the 2016 stock option plan during the reporting period was approximately $380,000, which was used for general operating funds[52] - The company has a total of 1,261,709 stock options remaining after accounting for exercised options[51] - The total compensation for key management personnel was $1,091,000 for the six months ended June 30, 2024, compared to $717,000 in the previous year[118] Compliance and Governance - The audit committee has reviewed the interim financial information for the six months ended June 30, 2024, although it has not been audited by the company's auditor[62] - The company has complied with the corporate governance code during the reporting period, with one exception regarding the internal audit function[64]
喆丽控股(02209) - 2024 - 中期财报