NHT Global(NHTC) - 2021 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for Q3 2021 was $14.3 million, a decrease of 12% compared to $16.2 million in Q2 2021, but an increase of 1% compared to $14.1 million in Q3 2020 [6][14] - Net income for Q3 2021 totaled $471,000 or $0.04 per diluted share, compared to $635,000 or $0.06 per diluted share in Q3 2020 [16] - Gross profit margin was 74.3%, consistent with the same quarter last year [15] Business Line Data and Key Metrics Changes - Order volume increased by 2% year-over-year, but declined 18% sequentially from Q2 2021 [8][9] - Active member base decreased by 2% to 45,950 from 46,860 at the end of Q2 2021, and down 14% from 53,300 at the end of Q3 2020 [15] Market Data and Key Metrics Changes - Revenue increased by 3% year-over-year outside Hong Kong, with emerging markets like Peru, Japan, CIS, and India showing growth [7][10] - The company faced challenges in core markets due to renewed government-mandated restrictions and lockdowns [6][12] Company Strategy and Development Direction - The company is focused on expanding into emerging markets and has launched new products, including the Skindulgence Probiotic Ampoule [10] - Technology updates included the introduction of new payment solutions to streamline the ordering process [11] - The company aims to manage product promotions and expenses prudently to preserve margins [9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment and anticipated ongoing impacts from the pandemic [14][18] - The company remains committed to supporting members and executing its strategy to emerge well-positioned post-pandemic [18] Other Important Information - The SEC investigation initiated in August 2016 concluded without further action, and the IRS completed its tax audit agreeing with the company's tax returns [12] - A quarterly cash dividend of $0.20 per share was declared, payable on November 26 [17] Summary of Q&A Session - No specific questions or answers were recorded in the provided content, indicating the end of the conference call without a Q&A segment [18]