SOS Limited Reports 2024 semi-annual financial results

Core Viewpoint - SOS Limited reported a significant increase in net revenue for the first half of 2024, primarily driven by the recovery of the Chinese economy and increased demand for natural rubber products, despite a halt in cryptocurrency mining operations [2][3][10]. Revenue Performance - Total net revenue for the six months ended June 30, 2024, was $60.5 million, representing a 47.1% increase from $41.8 million in the same period of 2023 [3][10]. - Commodities Trading accounted for 91.7% of total revenue, with $55.5 million, while Hosting Services contributed 7.8% with $4.7 million, and Others contributed 0.5% with $329,000 [2][3][6]. Operating Costs and Expenses - Operating costs rose to $58.1 million, a 39.3% increase from $41.7 million in the first half of 2023, aligning with the revenue growth [7]. - Selling expenses increased to $2.2 million from $1.1 million, primarily due to promotional activities related to the commodity business [8]. - General and administrative expenses were $14.5 million, up 54.3% from $9.4 million, largely due to $4 million in depreciation for a new subsidiary [9]. Profitability Metrics - The company reported a GAAP net loss of $10.9 million, slightly higher than the $10.7 million loss in the first half of 2023, with a gross profit margin of 4.0%, up from 0.2% the previous year [10][11]. Cash Flow Analysis - Cash and cash equivalents at the end of June 2024 were $246.7 million, down from $249.9 million a year earlier, indicating a decrease of $3.2 million [13]. - The company raised a total of $24.79 million through financing activities during the period, including $7.8 million in March and $16.99 million in June [15].