Haoxi Health Technology Limited Reports Unaudited Financial Results for The Six Months Ended December 31, 2023

Core Viewpoint - Haoxi Health Technology Limited reported significant growth in revenue and net income for the six months ended December 31, 2023, indicating strong performance in the online marketing sector, particularly within the healthcare industry [2][3][12]. Financial Performance - Total revenue for the six months ended December 31, 2023, was US$23.50 million, an increase of US$14.34 million, or 157%, from US$9.16 million for the same period in 2022 [2][6]. - Gross profit for the same period was US$1.20 million, representing a 65% increase from US$0.73 million in the prior year [2][9]. - Net income rose to US$0.76 million, up by US$0.31 million, or 70%, from US$0.45 million for the six months ended December 31, 2022 [2][12]. Client Growth and Revenue Drivers - The number of clients served increased from 183 to 338, contributing to revenue growth [6]. - Average revenue per client increased from US$50,070 to US$69,538, primarily due to higher advertisement expenditure by healthcare industry clients [6][8]. Cost Structure - Cost of revenue increased by US$13.87 million, or 164%, from US$8.43 million to US$22.30 million, aligning with revenue growth [9]. - Gross profit margin decreased to 5.11% from 7.97% due to increased competition and the need for customer rebates [9]. Operating Expenses - Selling and marketing expenses rose by 44% from US$14,312 to US$20,564, driven by increased bonuses for sales staff [10]. - General and administrative expenses increased by 66% from US$199,284 to US$331,610, mainly due to higher salaries and professional fees related to the IPO [10]. - Research and development expenses grew by 29% from US$23,842 to US$30,842, reflecting increased salaries for R&D staff [11]. Recent Developments - The company entered into a Framework Contract for Cooperation with Wuhan Yiya Simei Dental Clinic to provide advertising services on popular social media platforms [4]. - A Bidding Data Promotion Rebate Agreement was established with Jinan Yanling Biotechnology Co., Ltd. for comprehensive advertising services [5]. Company Overview - Haoxi Health Technology Limited specializes in online marketing solutions for the healthcare industry, focusing on short video marketing and customer acquisition on platforms like Toutiao and Douyin [13].