Core Viewpoint - Jowell Global Ltd. reported a modest revenue increase of 1.5% year-over-year for the first half of 2024, despite a decline in Gross Merchandise Value (GMV) by 7.0%, indicating challenges in the e-commerce market in China. Financial Performance - Total revenues for the first half of 2024 were $85.7 million, up from $84.4 million in the same period of 2023, reflecting a 1.5% increase [2][3]. - The net loss for the first half of 2024 was $3.8 million, a significant reduction of 47.1% compared to a net loss of $7.1 million in the same period of 2023 [2][8]. - The operating loss decreased to $4.0 million from $6.6 million year-over-year, primarily due to reduced marketing and operating expenses [7]. Revenue Breakdown - Revenue from health and nutritional supplements surged by approximately $11.1 million, or 182.1%, compared to the same period in 2023, driven by increased sales of premium products [3][4]. - Conversely, revenue from cosmetic products fell by 33.0% to $19.8 million, while household products remained relatively stable with a slight decrease of 0.1% [4]. Membership and Store Growth - The total number of VIP members as of June 30, 2024, reached approximately 2.7 million, marking an 8.5% increase from about 2.5 million a year earlier [2]. - The number of LHH stores increased by 1.0% to 26,795 as of June 30, 2024, compared to 26,528 in the same period of 2023 [2]. Cost Management - Total cost and operating expenses decreased by 1.5% to $89.6 million in the first half of 2024 from $91.0 million in the same period of 2023 [5]. - Fulfillment expenses dropped significantly by 56.8% to $0.8 million, attributed to cost reduction measures in logistics [6]. - Marketing expenses also saw a decline of 15.8% to $2.8 million, reflecting a decrease in promotional activities [6]. Cash Flow and Liquidity - The company reported a negative operating cash flow of $41,012 for the first half of 2024, with cash and cash equivalents at approximately $0.8 million as of June 30, 2024 [11][19]. - The working capital as of June 30, 2024, was $13.4 million, indicating a need for careful management of receivables and operational decisions in the current market environment [11].
Jowell Global Ltd. Announces First Half 2024 Unaudited Financial Results