-- Full Year Revenue of
Full Year 2021 Financial and Operational Highlights
- Total revenues were
$170.9 million , an increase of 76.4% from$96.9 million in 2020. - Net loss was
$6.4 million , a decrease of 278.1% compared to net income of$3.6 million in 2020. - Total VIP members1 as of
December 31, 2021 were approximately 2.2 million, an increase of 13.6% compared to approximately 2.0 million as ofDecember 31, 2020 . - Total LHH stores2 as of
December 31, 2021 were 26,043, an increase of 6.2% compared to 24,513 as ofDecember 31, 2020 .
Mr.
“Looking ahead to 2022, in spite of the complex and ever-evolving market environment and the lasting impacts of the pandemic, we remain confident about the market opportunities in the new retail market. Our cross-platform online and offline sales and distribution networks offer convenient shopping and delivery solutions upon customers’ various needs. Leveraging our expertise reaching consumers via diversified channels, we are able to provide efficient sales and marketing solutions for our branded partners. We will continue to optimize our platforms and product offerings to meet the increasingly diverse consumer demands.”
Ms.
Impact of COVID-19 Pandemic
Beginning in late 2019, there was an outbreak of COVID-19 (coronavirus) which spread quickly across many parts of
Our operations in 2021 were not significantly impacted by the pandemic as COVID-19 is considered generally under control in
Full Year 2021 Financial Results
Total Revenues
Total revenues were
Revenues (in thousand) | Full Year Ended | % | |||||||
2021 | 2020 | change | |||||||
US$ | US$ | YoY | |||||||
Product sales | |||||||||
| 78,841 | 18,701 | 321.6 | ||||||
| 56,104 | 52,372 | 7.1 | ||||||
| 35,943 | 25,733 | 39.7 | ||||||
| 24 | 73 | (67.1 | ) | |||||
Total | 170,912 | 96,879 | 76.4 |
Total operating expenses were
- Costs of revenues were
$159.3 million , an increase of 84.3% from the$86.4 million in 2020. The increase was primarily due to the increased units sold, as well as the increased weighted average unit cost as we added more leading brands into our cosmetic brands portfolio. Cost of sales as a percentage of total revenues was 93.2%, up from 89.2% in 2020. - Fulfillment expenses were
$3.8 million , an increase of 65.6% from the$2.3 million in 2020. The increase in our fulfillment expenses is primarily attributable to the increase in warehouse rent as we rented more spaces in 2021 to store products. The fulfillment expenses as a percentage of total revenues was 2.2 %, down from 2.3% in 2020. The decrease was mainly due to more customers elected to self-pickup products purchased from the Company’s facilities which reduced outbound freight costs. - Sales and marketing expenses were
$9.4 million , an increase of 812.5% from the$1.0 million in 2020. The increase was primarily due to the increased marketing and promotion activities and the increased expenditure for further enhancing brand awareness in strategic geographic areas. Sales and marketing expense as percentage of total revenues was 5.5%, up from 1.1% in 2020. - General and administration expenses were
$5.5 million , an increase of 166.8% from$2.1 million in 2020. The increase was primarily due to an increase in general and administrative personnel, share-based compensation expenses and additional expenses related to being a publicly traded company. General and administration expenses as percentage of total revenues was 3.2%, up from 2.1% in 2020.
Operating loss
Operating loss was
Net loss
Net loss was
Earnings per share
The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). The Company’s each Preferred Share has voting rights equal to two Ordinary Shares of the Company and each Preferred Share is convertible into one Ordinary Share at any time. Except for voting rights and conversion rights, the Ordinary Shares and the Preferred Shares shall rank pari passu with one another and shall have the same rights, preferences, privileges and restrictions. For the full year ended
Cash and cash equivalents
As of
About
Exchange Rate
The Company’s financial information is presented in
This press release contains translations of certain RMB amounts into
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
For investor and media inquiries, please contact:
In
Ms.
Email: IR@1juhao.com
Ms.
Email: ally@blueshirtgroup.com
In
Ms.
Email: Julia@blueshirtgroup.com
CONSOLIDATED BALANCE SHEETS
2021 | 2020 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash | $ | 18,249,737 | $ | 18,244,055 | ||||
Restricted cash | 2,999,990 | - | ||||||
Accounts receivable | 4,966,226 | 306,450 | ||||||
Accounts receivable - related parties | 480,111 | 682,315 | ||||||
Advance to suppliers | 5,211,542 | 2,125,548 | ||||||
Advance to suppliers - related parties | - | 583,387 | ||||||
Inventories, net | 12,316,766 | 7,398,248 | ||||||
Deferred offering costs | - | 420,968 | ||||||
Prepaid expenses and other current assets | 2,082,409 | 253,673 | ||||||
Total current assets | 46,306,781 | 30,014,644 | ||||||
Long-term investment | 4,861,824 | - | ||||||
Property and equipment, net | 524,428 | 12,794 | ||||||
Intangible assets, net | 386,510 | 34,933 | ||||||
Right of use lease assets, net | 5,284,379 | 3,674,255 | ||||||
Other non-current asset | 1,090,471 | 121,848 | ||||||
Deferred tax assets | 273,525 | 6,380 | ||||||
Total Assets | $ | 58,727,918 | $ | 33,864,854 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Short-term loan | $ | 2,672,366 | $ | - | ||||
Accounts payable | 5,054,867 | 5,688,809 | ||||||
Accounts payable - related parties | 2,333,455 | - | ||||||
Trade notes payable | - | 580,896 | ||||||
Deferred revenue | 2,060,872 | 1,701,321 | ||||||
Deferred revenue - related parties | 93,170 | - | ||||||
Current portion of operating lease liabilities | 1,317,006 | 721,003 | ||||||
Accrued expenses and other liabilities | 1,341,690 | 1,209,105 | ||||||
Due to related parties | 134,381 | 1,240,008 | ||||||
Taxes payable | 43,019 | 1,011,775 | ||||||
Total current liabilities | 15,050,826 | 12,152,917 | ||||||
Non-current portion of operating lease liabilities | 3,993,641 | 2,967,193 | ||||||
Total liabilities | 19,044,467 | 15,120,110 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ Equity | ||||||||
Common stock, | 2,568 | 2,115 | ||||||
Preferred stock, | 75 | 75 | ||||||
Additional paid-in capital | 40,827,231 | 14,171,120 | ||||||
Statutory reserves | 394,541 | 394,541 | ||||||
Retained earnings (Accumulated deficit) | (3,036,045 | ) | 3,353,031 | |||||
Accumulated other comprehensive income | 1,495,081 | 823,862 | ||||||
Total Stockholders’ Equity | 39,683,451 | 18,744,744 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 58,727,918 | $ | 33,864,854 |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the Years Ended | |||||||||
2021 | 2020 | ||||||||
Net Revenues | |||||||||
Revenues - third party | $ | 169,390,433 | $ | 95,356,627 | |||||
Revenues - related party | 1,521,566 | 1,522,546 | |||||||
Total Net Revenues | 170,911,999 | 96,879,173 | |||||||
Operating Expenses: | |||||||||
Cost of revenues | (159,259,496 | ) | (86,404,697 | ) | |||||
Fulfillment expenses | (3,757,991 | ) | (2,269,768 | ) | |||||
Marketing expenses | (9,380,401 | ) | (1,027,895 | ) | |||||
General and administrative expenses | (5,506,614 | ) | (2,063,997 | ) | |||||
Total operating expenses | (177,904,502 | ) | (91,766,357 | ) | |||||
Income (Loss) From Operations | (6,992,503 | ) | 5,112,816 | ||||||
Other Income (Expenses), net | |||||||||
Interest expense | (92,257 | ) | - | ||||||
Investment income | 301,778 | - | |||||||
Government subsidy income | 318,783 | - | |||||||
Other income (expense), net | (115,393 | ) | 6,106 | ||||||
Other Income, net | 412,911 | 6,106 | |||||||
Income (Loss) Before Income Taxes | (6,579,592 | ) | 5,118,922 | ||||||
Provision (Benefit) for Income Taxes | (190,516 | ) | 1,532,230 | ||||||
Net Income (loss) | $ | (6,389,076 | ) | $ | 3,586,692 | ||||
Earnings Per share – Basic and Diluted | $ | (0.26 | ) | $ | 0.18 | ||||
Weighted Average Shares Outstanding – Basic and diluted | 24,562,248 | 20,222,976 | |||||||
Net Income (loss) | $ | (6,389,076 | ) | $ | 3,586,692 | ||||
Other Comprehensive income, net of tax | |||||||||
Foreign currency translation gain | 671,219 | 783,406 | |||||||
Comprehensive Income (Loss) | $ | (5,717,857 | ) | $ | 4,370,098 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended | |||||||||
2021 | 2020 | ||||||||
Cash flows from operating activities: | |||||||||
Net income (loss) | $ | (6,389,076 | ) | $ | 3,586,692 | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||
Depreciation and amortization | 185,484 | 25,926 | |||||||
Income from long-term investment | (143,849 | ) | - | ||||||
Allowance for doubtful accounts | 451,127 | - | |||||||
Amortization of operating lease right-of-use assets | 880,551 | 156,543 | |||||||
Inventory reserve | 329,639 | 24,172 | |||||||
Deferred income taxes | (263,249 | ) | (6,044 | ) | |||||
Share-based compensation | 971,200 | - | |||||||
Changes in operating assets and liabilities: | |||||||||
Accounts receivables | - | ||||||||
Accounts receivables | (4,688,990 | ) | (289,767 | ) | |||||
Accounts receivable - related Parties | 217,500 | (646,285 | ) | ||||||
Inventories | (4,983,104 | ) | (4,518,720 | ) | |||||
Advance to suppliers | (3,335,276 | ) | (1,861,778 | ) | |||||
Advance to suppliers - related parties | 590,738 | 7,583,425 | |||||||
Prepaid expenses and other current assets | (1,375,344 | ) | 218,550 | ||||||
Accounts payables | (776,146 | ) | 2,445,100 | ||||||
Accounts payables - related parties | 2,234,057 | - | |||||||
Trade notes payable | (588,215 | ) | 550,221 | ||||||
Deferred revenue | 401,233 | (396,109 | ) | ||||||
Operating lease liabilities | (868,766 | ) | (143,339 | ) | |||||
Taxes payable | (982,105 | ) | 830,726 | ||||||
Accrued expenses and other liabilities | 98,632 | (669,939 | ) | ||||||
Net cash provided by (used in) operating activities | (18,033,959 | ) | 6,889,374 | ||||||
Cash flows from investing activities: | |||||||||
Long-term investment | (4,650,150 | ) | - | ||||||
Advance for purchase of fixed assets | (951,874 | ) | (115,414 | ) | |||||
Purchase of intangible assets | (426,370 | ) | - | ||||||
Purchase of equipment | (609,014 | ) | (1,332 | ) | |||||
Net cash used in investing activities | (6,637,408 | ) | (116,746 | ) | |||||
Cash flows from financing activities: | |||||||||
Issuance of Ordinary Shares | - | 10,000,000 | |||||||
Deferred offering costs | - | (379,961 | ) | ||||||
Net proceeds from the Initial Public Offering | 25,685,364 | - | |||||||
Proceeds from short-term loans | 2,635,085 | - | |||||||
Capital injection | - | - | |||||||
Dividend paid | - | - | |||||||
Repayment of related party loans | (1,108,311 | ) | 1,174,546 | ||||||
Net cash provided by financing activities | 27,212,138 | 10,794,585 | |||||||
Effect of exchange rate changes on cash and restricted cash | 464,900 | 665,331 | |||||||
Net increase in cash and restricted cash | 3,005,672 | 18,232,544 | |||||||
Cash and restricted cash, beginning of year | 18,244,055 | 11,511 | |||||||
Cash and restricted cash, end of year | $ | 21,249,727 | $ | 18,244,055 | |||||
Supplemental disclosure information: | |||||||||
Cash paid for income tax | $ | 988,445 | $ | 839,325 | |||||
Cash paid for interest | $ | 92,257 | $ | - | |||||
Supplemental non-cash activities: | |||||||||
Cash paid in prior year for purchase of fixed assets | $ | 123,384 | $ | - | |||||
Right of use assets obtained in exchange for operating lease obligations | $ | 2,370,655 | $ | 3,480,231 |
____________________________________________________
1 “Total VIP members refers to the total number of members registered on Jowell’s platform as of
2 LHH stores: the brand name of “Love Home Store”. Authorized retailers may operate as independent stores or store-in-shop (an integrated store), selling products they purchased through Jowell’s online platform
Source:
2022 GlobeNewswire, Inc., source