Jowell Global Ltd. (“JWEL” or the “Company”) (NASDAQ: JWEL),
one of the leading cosmetics, health, nutritional supplements, and
household products e-commerce platforms in China, today announced
its unaudited financial results for the first quarter ended March
31, 2021.
The Company cautioned that these financial results have not been
audited or reviewed by the Company’s independent registered public
accounting firm and may have discrepancies in connection with
further reviews by the independent registered public accounting
firm of the Company.
First Quarter 2021 Highlights
- Total revenues were $28.4
million, an increase of 197.5% from $9.5 million in the same period
of 2020.
- Net loss was
$495 thousand, compared with net income of $183 thousand in the
same period of 2020.
- Total GMV (Gross Merchandise
Value) transacted in our online shopping mall was $35.1 million, an
increase of 159.7% from $13.5 million in the same period of
2020.
- Total VIP
members1as of March 31, 2021 were 2.0
million, an increase of 17.8% compared with 1.7 million as of March
31, 2020.
- Total LHH stores2 as of March 31, 2021 were
25,332, an increase of 17.1% compared with 21,640 as of March 31,
2020.
CEO and CFO quotes
Mr. Zhiwei Xu, Chief Executive Officer and Chairman of Jowell
Global Ltd., commented: “In March 2021, our Company made a
significant milestone with our successful IPO and Nasdaq listing,
raising capital needed for rapid growth and notably increasing our
brand reach. In the first quarter of 2021, we delivered record
revenue results driven by strong sales growth from our LHH stores,
with a revenue growth of 197.5% to reach $28.4 million. These
results illustrate our strong business momentum and outstanding
execution on our strategies, and is a sound representation of how
our unique retail distribution system is key to drawing customers
from various communities. Our outstanding results from this first
quarter is based on growth from all product categories and is
partially driven by consumers’ increasing demands for health and
nutrition products as awareness for personal wellbeing rises amidst
the health crisis of COVID-19.
Mr. Xu continued: “Looking ahead, we foresee further growth
across all areas lead by our recently announced strategic
partnerships with Alibaba, ZTO Express, and Coty, and will continue
expanding our product offerings and further invest into online
platform, live streaming and marketing, and community group buying
stores to gain shares in a growing consumer retail market in
China.”
Ms. Mei Cai, Chief Financial Officer, added: “In the first
quarter of 2021, we generated $35.1 million GMV and $28.4 million
in revenue, a 159.7% and 197.5% year-on-year growth, respectively.
LHH stores account for over 76.5% of the total revenue, and Q1
buying members increased 34% year over year. We maintain our
commitment to address our customers’ various and growing needs by
further building out our product offerings with strategic brand
awareness promotions.”
First Quarter
2021 Financial
Results
Total Revenues
Total revenues were $28.4 million, representing an increase of
197.5% from $9.5 million in the same period of 2020. The increase
was primarily due to significant increase in sales from LHH stores
with sales promotions and brand reach. Cosmetics and health and
nutrition supplements continue to lead the growth, increasing
302.1% and 205.4% respectively.
Revenues
(in thousand) |
|
Three Months Ended March 31 |
|
|
% |
|
|
|
2021 |
|
|
2020 |
|
|
change |
|
|
|
US$ |
|
|
US$ |
|
|
YoY |
|
Product sales |
|
|
|
|
|
|
|
|
|
● Cosmetic products |
|
|
7,468.9 |
|
|
|
1,857.4 |
|
|
|
302.1 |
|
● Health and nutritional supplements |
|
|
12,554.5 |
|
|
|
4,110.4 |
|
|
|
205.4 |
|
● Household products |
|
|
8,315.4 |
|
|
|
3,562.1 |
|
|
|
133.4 |
|
● Others |
|
|
13.7 |
|
|
|
- |
|
|
|
100.0 |
|
Total |
|
|
28,352.5 |
|
|
|
9,529.9 |
|
|
|
197.5 |
|
Total costs of revenues were $26.1 million, an
increase of 204.6% from the $8.6 million in the same period of
2020. The increase was primarily due to the increased material cost
and sales quantities.
Total operating expenses were
$2.5 million, an increase of 264.1% from the $682 thousand in the
same period of 2020.
- Fulfillment expenses were $499 thousand, an increase of 61.0%
from the $310 thousand in the same period of 2020. The increase was
primarily due to the increase in outbound freight costs resulting
from increased sales.
- Sales and marketing expenses were $1.1 million, an increase of
1,236.3% from the $81 thousand in the same period of 2020. The
increase was primarily due to an increase in sales expenses of
promotion and advertising for our products and the expenditure for
further enhancing brand awareness in the strategic geographic
areas.
- General and administration expenses were $907 thousand, an
increase of 211.0% from $292 thousand in the same period of 2020.
The increase was primarily due to the increased headcount in
general and administrative personnel.
Operating
loss
Operating loss was $254 thousand, compared with the operating
income of $271 thousand in the same period of 2020. The operating
loss for the quarter ened on March 31, 2021 was mianly driven by
the increaese in cost of revenues, increases of promotion,
advertising and general adminstrative expeneses as discussed
above.
Net loss
Net loss was $495 thousand, compared with the net income of $183
thousand in the same period of 2020.
Cash and cash equivalents
As of March 31, 2021, the Company had cash and cash equivalents
and restricted cash of $25.7 million, compared to the $18.2 million
as of December 31, 2020.
About Jowell Global Ltd.
Jowell Global Ltd. (the “Company”) is one of the leading
cosmetics, health and nutritional supplements and household
products e-commerce platforms in China. We offer our own brand
products to customers and also sell and distribute health and
nutritional supplements, cosmetic products and certain household
products from other companies on our platform. In addition, we
allow third parties to open their own stores on our platform for a
service fee based upon sale revenues generated from their online
stores and we provide them with our unique and valuable information
about market needs, enabling them to better manage their sales
effort, as well as an effective platform to promote their brands.
The Company also sells its products through authorized retail
stores all across China, which operate under the brand names of
“Love Home Store” or “LHH Store” and “Juhao Best Choice Store”. For
more information, please visit
https://www.1juhao.com/Investors/Home.html
Exchange Rate
The Company’s financial information is presented in U.S. dollars
(“USD”). The functional currency of the Company is the Chinese
Yuan, Renminbi (“RMB”), the currency of the PRC. Any transactions
which are denominated in currencies other than RMB are translated
into RMB at the exchange rate quoted by the People’s Bank of China
prevailing at the dates of the transactions, and exchange gains and
losses are included in the statements of operations as foreign
currency transaction gain or loss. The consolidated financial
statements of the Company have been translated into U.S. dollars in
accordance with ASC 830, “Foreign Currency Matters”.
This press release contains translations of certain RMB amounts
into U.S. dollars (“USD”) at specified rates solely for the
convenience of the reader. The exchange rates in effect as of March
31, 2021 and December 31, 2020 were RMB1 for $0.1525 and $0.1531,
respectively. The average exchange rates for the three months ended
March 31, 2021 and 2020 were RMB1 for $0.1542 and $0.1433,
respectively.
Safe Harbor Statement
This press release contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. Statements that
are not historical facts, including statements about the Company's
beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties, and a number of factors could cause actual results
to differ materially from those contained in any forward-looking
statement. In some cases, forward-looking statements can be
identified by words or phrases such as "may," "will," "expect,"
"anticipate," "target," "aim," "estimate," "intend," "plan,"
"believe," "potential," "continue," "is/are likely to" or other
similar expressions. The Company may also make written or oral
forward-looking statements in its reports filed with, or furnished
to, the U.S. Securities and Exchange Commission, in its annual
reports to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. These statements are subject to
uncertainties and risks including, but not limited to, the
following: the Company’s goals and strategies; the Company’s future
business development; financial condition and results of
operations; product and service demand and acceptance; reputation
and brand; the impact of competition and pricing; changes in
technology; government regulations; fluctuations in general
economic and business conditions in China and assumptions
underlying or related to any of the foregoing and other risks
contained in reports filed by the Company with the SEC. For these
reasons, among others, investors are cautioned not to place undue
reliance upon any forward-looking statements in this press release.
Additional factors are discussed in the Company’s filings with the
SEC, which are available for review at www.sec.gov. The Company
undertakes no obligation to publicly revise these forward‐looking
statements to reflect events or circumstances that arise after the
date hereof.
For investor and media inquiries, please
contact:
In China:
Jowell Global Ltd.Ms. Jessie ZhaoPhone: +86 189-6232-0955Email:
IR@1juhao.com
The Blueshirt GroupMs. Susie WangPhone: +86 138-1081-7475Email:
susie@blueshirtgroup.com
In the United States:
The Blueshirt GroupMs. Julia QianPhone: +1 973-619-3227Email:
Julia@blueshirtgroup.com
1 “Total VIP members refers to the total number of members
registered on Jowell’s platform as of March 31, 2021.2 LHH stores:
the brand name of “Love Home Store”, the authorized retailers may
operate as independent stores or store-in-shop (an integrated
store), selling products they purchased through Jowell’s online
platform LHH Mall under their retailer accounts which provides them
with major discounts.
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