NHT Global(US:NHTC)2020-08-09 09:31Financial Data and Key Metrics Changes - Total revenue for Q2 2020 was $16.4 million, a decrease of 30% compared to $23.4 million in Q2 2019, primarily due to the COVID-19 pandemic's impact on operations [15] - Operating income was $183,000 compared to an operating loss of $4,000 in Q2 2019, indicating a return to profitability [18] - Net income totaled $34,000 or breakeven per diluted share, down from net income of $397,000 or $0.04 per diluted share in Q2 2019 [18] - Gross profit margin decreased to 70.6% from 76.9% in the prior year due to increased logistics costs and product promotions [16] - Selling, general and administrative expenses decreased by 35% to $4.3 million from $6.6 million a year ago [17] Business Line Data and Key Metrics Changes - The active member base decreased by 4% to 54,400 at June 30 from 56,500 at March 31, and down 31% from 78,300 at June 30 of the previous year [15] - Commission expenses as a percentage of total revenue declined to 43.4% from 48.7% in the prior year quarter due to proactive cost reduction efforts [16] Market Data and Key Metrics Changes - Economic activity in key markets, particularly Greater China, has begun to resume, with some restrictions on travel and gatherings being lifted [15] - Operations in Peru continued to be adversely impacted by COVID-19, although shipping into larger cities resumed in late Q1 [12] Company Strategy and Development Direction - The company is focused on diversifying operations into new and emerging markets, although progress has been delayed due to COVID-19 [11] - New product launches occurred in China, Peru, and India, indicating ongoing efforts to expand product offerings despite challenges [12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the improvement of the macroeconomic situation in the second half of 2020 [13] - The company has successfully transitioned to a digital operation, allowing continued engagement with customers through online activities [9] - Management emphasized the importance of health and safety for members, employees, and customers as foundational to success [13] Other Important Information - The company maintained a strong liquidity position with total cash and cash equivalents at $93.2 million and zero debt [18] - A quarterly cash dividend of $0.20 per share was declared, reflecting confidence in the company's financial stability [19] Q&A Session Summary - No specific questions or answers were documented in the provided content, thus this section is not applicable.