Meiwu Technology Co., Limited (NASDAQ: WNW) (“Meiwu” or the
“Company”), an online and mobile commerce company providing organic
and green food products to customers on its online platform and in
its restaurant in China. The Company today announced its unaudited
financial results for the six months ended June 30, 2022.
First Half Fiscal Year of 2022 Operating
Highlights
| |
● |
Registered users of the Company’s online planform
were 711,534 as of June 30, 2022, compared to 672,398 as of June
30, 2021. |
| |
|
|
| |
● |
Average daily active users (“DAUs”) of the
Company’s online platform decreased to approximately 197.3 from
894.98 in the same period of 2021. |
| |
|
|
| |
● |
Number of merchants carried in the Company’s
online platform were 504 as of June 30, 2022, compared to 417 as of
June 30, 2021. |
| |
|
|
| |
● |
Type of goods carried in the Company’s online
platform were 3,225 as of June 30, 2022, compared to 3,607 as of
June 30, 2021. |
First Half Fiscal Year of 2022 Financial
Highlights
| |
● |
Total revenues in the first half fiscal year of
2022 decreased by 84.45% to US$1.17 million compared to US$7.50
million in the same period of 2021. |
| |
|
|
| |
● |
Net loss in the first half fiscal year of 2022
increased by 354.30% to US$5.53 million from US$1.22 million in the
same period of 2021. |
First Half Fiscal Year of 2022 Key
Operating Metrics
The Company monitors the following key metrics
to evaluate the growth of its business, measure the effectiveness
of its marketing efforts, identify trends affecting its business,
and make strategic decisions.
Registered users of the Company’s online
platform. The Company defines this metric as the total
number of the registered users of the Company’s online platform as
of the end of the period. As an online and mobile e-commerce
business, the Company believes that this is a key operating metric
for understanding the growth of its business. The Company views the
number of registered users at the end of a given period as a key
indicator of the attractiveness and usability of its online
platform traffic. As of June 30, 2022, the registered users of
Meiwu’s online platform exceeded 711,534, as compared to 672,398 as
of June 30, 2021. The Company believes that this increase in
registered users demonstrates the successful conversion of the
Company’s offline customers to its online users.
Daily Active Users (DAUs). The
Company defines daily active users, or DAUs, as users who have
logged in or accessed its online platform, whether on a mobile
phone or tablet. The Company calculates DAUs using internal company
data based on the activity of the user account and as adjusted to
remove “duplicate” accounts. The DAU number is a metric that
Meiwu’s management uses to manage their operations. In particular,
its management sets daily targets of DAUs and monitors the DAUs to
see whether the Company needs to make adjustments as to the
promotional activities and advertising campaigns. For the six
months ended June 30, 2022 and 2021, the average DAUs were 197.3
and 894.98 respectively.
Number of merchants. The
company defines this metric as the total number of the merchants
which sell goods on Meiwu’s online platform as of the end of the
period. Merchants sell goods on Meiwu’s online platform after
passing the Company’s inspection and evaluation. The number of
merchants were 504 as of June 30, 2022, compared to 417 as of June
30, 2021.
Impacts of the COVID-19
Pandemic. During the first half fiscal year of 2022, there
had been outbreaks of the Omicron and other variants of the
COVID-19 and the local governments in China placed lockdown and
mass testing policies in several cities, including Shenzhen, Xi’an
and Shanghai, where our customers and suppliers operate. The travel
restrictions, mandatory COVID-19 tests, quarantine requirements
and/or temporary closure of office buildings and facilities have
been imposed by local governments. The temporary closure of office
buildings and facilities severely impacted the operation OF the
offline stores and the fulfillment of the online orders. The
business of Meiwu has been adversely impacted by the COVID-19
pandemic, and the sales has been significantly decreased. With the
Company’s efforts in the marketing, the Company expects its sales
performance to recover and grow in the second half fiscal year of
2022.
First Half Fiscal Year of 2022 Financial
Results
Revenues in the first half
fiscal year of 2022 decreased by 84.45% to US$1.17 million compared
to US$7.50 million in the same period of 2021, which was mainly due
to the decrease in online retail revenues and offline revenue.
Compared to the first half fiscal year of 2021 caused by the impact
of COVID-19.
Total operating expenses in the
first half fiscal year of 2022 increased by 95.09% to US$5.71
million from US$2.93 million in the same period of 2021.
| |
● |
Cost of revenues in the first half fiscal year of
2022 decreased by 82.49% to US$1.02 million from US$5.80 million in
the same period of 2021, mainly due to the decrease of online
retail business and offline business. The downward trend of cost of
revenues was close to the decrease of the revenues. |
| |
|
|
| |
● |
Sales and marketing expenses in the first half
fiscal year of 2022 decreased by 72.86% to US$0.41 million from
US$1.53 million in the same period of 2021, mainly due to the
decrease in revenue leads to a decrease in commission service
fee. |
| |
|
|
| |
● |
General and administrative expenses in the first
half fiscal year of 2022 increased by 354.76% to US$5.12 million
from US$1.13 million in the same period of 2021, mainly due to the
increase in financing charges of convertible notes and warrants,
employee salary and service fee as compared to the same period of
2021. |
| |
|
|
| |
● |
Research and development expenses in the first
half fiscal year of 2022decreased by 36.59% to US$0.17 million from
US$0.27 million in the same period of 2021, mainly due to the
salary and software service fee decreased in the first half fiscal
year of 2022 compared to the same period of 2021. |
Gross Profit in the first half
fiscal year of 2022 was US$0.15 million, decreasing 91.13% from
US$1.70 million in the same period of 2021. Gross margin in the
first half fiscal year of 2022 was 12.92%, compared to 22.65% for
the same period of 2021.
Net loss in the first half
fiscal year of 2022 increased by 354.30% to US$5.53 million from
US$1.22 million in the same period of 2021. The net loss decreased
mainly due to the increase in general and administrative expenses
in the first half fiscal year of 2022 compared to the same period
of 2021.
Basic and diluted loss per
share in the first half fiscal year of 2022 was US$0.17,
compared to US$0.04 in the same period of 2021.
Net cash used in operating
activities in the first half fiscal year of 2022 was
US$10.07 million, compared to US$6.96 million in the same period of
2021. In this first half year, we spent substantially on the
continued expansion of the business. Further increase spending on
marketing and development of online platform and Meiwu App’s.
As of June 30, 2022, the Company had
cash and cash equivalents of US$24.47 million,
compared to US$26.63 million as of December 31, 2021.
About Meiwu
Technology Company Limited
Meiwu Technology Company Limited is a British
Virgin Islands company incorporated on December 4, 2018, and
conduct our business in China through our subsidiaries and variable
interest entity, Wunong Technology (Shenzhen) Co., Ltd. The group
is an online and mobile commerce company and conduct our business
through our online retail store on the website www.wnw108.com. The
group sell a myriad of food products on the website all the food
products sold on the website are from the suppliers. The group do
not sell genetically modified food and committed to providing our
customers with safe, high-quality, nutritious, tasty and
non-genetically modified food products through our portfolio of
trusted and well-known suppliers. Optimizing the Website and
real-time data, the group able to respond to and match supply with
demand for food products in keeping with consumer trends.
Safe Harbor Statement
Certain statements made in this release are
“forward looking statements” within the meaning of the “safe
harbor” provisions of the United States Private Securities
Litigation Reform Act of 1995. When used in this press release, the
words “estimates,” “projected,” “expects,” “anticipates,”
“forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,”
“will,” “should,” “future,” “propose” and variations of these words
or similar expressions (or the negative versions of such words or
expressions) are intended to identify forward-looking statements.
These forward-looking statements are not guarantees of future
performance, conditions or results, and involve a number of known
and unknown risks, uncertainties, assumptions and other important
factors, many of which are outside the Company’s control, that
could cause actual results or outcomes to differ materially from
those discussed in the forward-looking statements. Important
factors, among others, are: the ability to manage growth; ability
to identify and integrate other future acquisitions; ability to
obtain additional financing in the future to fund capital
expenditures; fluctuations in general economic and business
conditions; costs or other factors adversely affecting our
profitability; litigation involving patents, intellectual property,
and other matters; potential changes in the legislative and
regulatory environment; a pandemic or epidemic. The forward-looking
statements contained in this release are also subject to other
risks and uncertainties, including those more fully described in
the Company’s filings with the Securities and Exchange Commission,
including the Company’s Annual Report on Form 20F filed with the
SEC on June 30, 2021, the Current Report on Form 6-K filed with the
SEC on August 31, 2021, which may be amended from time to time, and
in our Quarterly Report on Form 6-K that will be filed following
this earnings release. The Company undertakes no obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by applicable law. Such information speaks only as of the
date of this release.
ContactsMeiwu Technology Company
Limited Xinliang Zhang Email: meiwuBS@usmeiwu.com
MEIWU TECHNOLOGY COMPANY
LIMITEDUNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS(Unaudited)
|
|
|
December 31,2021 |
|
|
June 30,2022 |
|
| |
|
|
|
|
(Unaudited) |
|
| ASSETS |
|
|
|
|
|
|
|
|
| Current Assets: |
|
|
|
|
|
|
|
|
|
Cash |
|
$ |
26,634,332 |
|
|
$ |
24,466,120 |
|
|
Accounts receivable |
|
|
433,002 |
|
|
|
884,647 |
|
|
Inventories, net |
|
|
432,955 |
|
|
|
335,838 |
|
|
Advances to suppliers, net |
|
|
231,230 |
|
|
|
5,621,667 |
|
|
Loan receivable |
|
|
- |
|
|
|
- |
|
|
Other current assets |
|
|
259,170 |
|
|
|
3,534,486 |
|
| Total Current Assets |
|
|
27,990,689 |
|
|
|
34,842,758 |
|
|
Property and equipment, net |
|
|
279,518 |
|
|
|
237,639 |
|
|
Right of use lease assets, net |
|
|
19,833 |
|
|
|
222,874 |
|
|
Goodwill |
|
|
- |
|
|
|
12,232,132 |
|
| TOTAL
ASSETS |
|
$ |
28,290,040 |
|
|
$ |
47,535,403 |
|
| |
|
|
|
|
|
|
|
|
| LIABILITIES AND
STOCKHOLDERS’ DEFICIT |
|
|
|
|
|
|
|
|
| Current Liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,659,501 |
|
|
$ |
2,018,074 |
|
|
Short-term loan |
|
|
47,054 |
|
|
|
268,285 |
|
|
Contract liabilities |
|
|
1,153,717 |
|
|
|
5,133,661 |
|
|
Lease liabilities |
|
|
19,068 |
|
|
|
158,535 |
|
|
Accrued expenses and other current liabilities |
|
|
928,072 |
|
|
|
914,751 |
|
| Total Current
Liabilities |
|
|
3,807,412 |
|
|
|
8,493,306 |
|
|
Due to related parties |
|
|
6,442,729 |
|
|
|
6,433,534 |
|
|
Long-term loan |
|
|
414,072 |
|
|
|
281,530 |
|
|
Convertible notes |
|
|
- |
|
|
|
4,872,030 |
|
|
Derivative financial liabilities |
|
|
- |
|
|
|
2,883,054 |
|
|
Lease liabilities |
|
|
- |
|
|
|
50,761 |
|
| Total Non-current
liabilities |
|
|
6,856,801 |
|
|
|
14,520,909 |
|
| TOTAL
LIABILITIES |
|
$ |
10,664,213 |
|
|
$ |
23,014,215 |
|
| |
|
|
|
|
|
|
|
|
| Commitment and
Contingencies |
|
|
|
|
|
|
|
|
| Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
Ordinary Shares, no par value, unlimited shares authorized;
48,945,313 and 32,968,755 shares issued and outstanding as of June
30, 2022 and December 31, 2021, respectively |
|
$ |
- |
|
|
$ |
- |
|
|
Additional paid-in capital |
|
|
23,385,695 |
|
|
|
36,802,261 |
|
|
Accumulated deficit |
|
|
(6,009,313 |
) |
|
|
(11,514,459 |
) |
|
Accumulated other comprehensive (loss) income |
|
|
253,736 |
|
|
|
(737,397 |
) |
|
Equity attributable to owners of the Company |
|
|
17,630,118 |
|
|
|
24,550,405 |
|
|
Non-controlling interests |
|
|
(4,291 |
) |
|
|
(29,217 |
) |
| Total Stockholders’
Equity |
|
|
17,625,827 |
|
|
|
24,521,188 |
|
| TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
$ |
28,290,040 |
|
|
$ |
47,535,403 |
|
MEIWU TECHNOLOGY COMPANY
LIMITEDUNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS(Unaudited)
| |
|
For the Six Months EndedJune
30, |
|
|
|
|
2021 |
|
|
2022 |
|
| NET
REVENUE |
|
$ |
7,499,540 |
|
|
$ |
1,166,425 |
|
| COST OF
REVENUE |
|
|
(5,800,663 |
) |
|
|
(1,015,769 |
) |
| GROSS
PROFIT |
|
|
1,698,877 |
|
|
|
150,656 |
|
| |
|
|
|
|
|
|
|
|
| OPERATING
EXPENSES |
|
|
|
|
|
|
|
|
|
Sales and Marketing Expenses |
|
|
(1,528,278 |
) |
|
|
(414,750 |
) |
|
General and Administrative Expenses |
|
|
(1,126,347 |
) |
|
|
(5,122,188 |
) |
|
Research and Development Expenses |
|
|
(271,925 |
) |
|
|
(172,437 |
) |
|
Total operating expenses |
|
|
(2,926,550 |
) |
|
|
(5,709,375 |
) |
| LOSS FROM
OPERATIONS |
|
|
(1,227,673 |
) |
|
|
(5,558,719 |
) |
| |
|
|
|
|
|
|
|
|
| Other Income, net |
|
|
10,409 |
|
|
|
28,647 |
|
| LOSS BEFORE INCOME
TAX |
|
|
(1,217,264 |
) |
|
|
(5,530,072 |
) |
| Provision for Income
Taxes |
|
|
- |
|
|
|
- |
|
| NET LOSS |
|
|
(1,217,264 |
) |
|
|
(5,530,072 |
) |
| Less: net loss
attributable to non-controlling interest |
|
|
|
|
|
|
(24,926 |
) |
| OTHER COMPREHENSIVE
LOSS |
|
|
|
|
|
|
|
|
| Foreign Currency Translation
Adjustment |
|
|
176,491 |
|
|
|
(991,133 |
) |
| TOTAL COMPREHENSIVE
LOSS |
|
$ |
(1,040,773 |
) |
|
$ |
(6,521,205 |
) |
| |
|
|
|
|
|
|
|
|
| LOSS PER SHARE – BASIC
AND DILUTED |
|
|
(0.04 |
) |
|
|
(0.17 |
) |
| WEIGHTED AVERAGE
SHARES OUTSTANDING – BASIC AND DILUTED |
|
|
25,000,000 |
|
|
|
39,376,394 |
|
MEIWU TECHNOLOGY COMPANY
LIMITEDUNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS(Unaudited)
| |
|
For the Six Months EndedJune
30, |
|
| |
|
2021 |
|
|
2022 |
|
| Net cash used in operating
activities |
|
|
(6,960,387 |
) |
|
|
(10,073,063 |
) |
| Net cash provided by (used in)
investing activities |
|
|
(58,850 |
) |
|
|
(26,915 |
) |
| Net cash provided by financing
activities |
|
|
415,690 |
|
|
|
7,670,698 |
|
| Effect of changes of foreign
exchange rate on cash |
|
|
60,563 |
|
|
|
261,068 |
|
| Net increase in
cash |
|
|
(6,542,984 |
) |
|
|
(2,168,212 |
) |
| Cash, beginning of the
period |
|
|
7,027,964 |
|
|
|
26,634,332 |
|
| Cash, end of the
period |
|
|
484,980 |
|
|
|
24,466,120 |
|
Meiwu Technology (NASDAQ:WNW)
Historical Stock Chart
From Mar 2024 to Apr 2024
Meiwu Technology (NASDAQ:WNW)
Historical Stock Chart
From Apr 2023 to Apr 2024
