ECMOHO Limited (Nasdaq: MOHO) (“ECMOHO”, “we” or the “Company”), a
leading integrated solutions provider in the health and wellness
market in China, today announced its unaudited financial results
for the second quarter ended June 30, 2021.
Second Quarter 2021 Operational Highlights
- The cumulative
number of partnered healthcare experts and KOLs grew from 1,114 as
of June 30, 2020 to 1,542 as of June 30, 2021.
- The number of
cumulative paying consumers1 was 12.1 million as of June 30, 2021
as compared to 10.1 million as of June 30, 2020.
- Repeat purchase
rate2 reached 40.7% in the second quarter ended June 30, 2021 as
compared to 37.2% in the second quarter ended June 30, 2020.
- During the second quarter ended June
30, 2021, we hosted approximately three hundred live streaming
events, and generated GMV3 of approximately RMB 3.7 million.
1 “Cumulative paying consumers” refers to the customers who have
placed one or more orders purchasing products through our
self-operated flagship stores on third-party e-commerce platforms,
and the Company's channels on Douyin.
2 “Repeat purchase rate” refers to the percentage of paying
consumers in the period indicated who had made more than one
purchase with us in such period or in prior periods.
3 “GMV” refers to the gross merchandise volume that includes
value added tax and value of the goods that are returned.
Second Quarter 2021 Financial Highlights
- Total net revenues in the second
quarter were US$42.8 million, as compared to US$100.5 million in
the same quarter last year.
- Product sales revenue in the second
quarter was US$42.1 million, as compared to US$99.7 million in the
same quarter last year primarily due to the Company’s quality-drive
growth strategy to optimize brands portfolio.
- Services revenue was US$698,279, as
compared to US$780,774 in the same quarter last year.
- Total gross margin was 19.6%, as
compared to 17.2% in the same quarter last year. Gross margin of
product sales was 19.1%, as compared to 17.0% in the same quarter
last year primarily due to fewer low-margin brands. Gross margin of
services was 49.6%, as compared to 50.2% in the same quarter last
year.
Ms. Zoe Wang, Chairwoman and Chief Executive Officer of ECMOHO
Limited, commented, “The economic recovery in China since the
second half of 2020 has been unstable and uneven, which we believe
have weighed on domestic consumption and slowed down retail sales
growth. The increasingly diversified consumer demand has also led
to increased operational difficulties and uncertainties for
integrated service providers, such as us, in China’s health and
wellness market. In light of the uncertain economic environment, we
have decided to control cost and improve efficiency through
digitalization and marketing innovation in order to achieve better
growth results.”
“We remain firmly committed to our quality-driven growth
strategy focusing on achieving higher profit margin. During the
second quarter of 2021, we continued to optimize the brands
portfolio and expanded addressable market in over-the-counter
medicine market. We also engaged a new brand partner, ChongKunDang
Group, a well-known South Korean pharmaceutical company, which we
believe will serve as an important growth driver going forward.
Moreover, leveraging our live-streaming sessions on social
entertainment platforms such as Douyin, cooperation with KOLs and
content interaction, we have not only boosted a series of marketing
successes, but also further strengthened brand recognition among a
new generation of consumers, which we believe will help us create
more innovative and personalized products in the future and improve
brand influence and market share.”
Mr. Xin Li, Chief Financial Officer, commented, “In the second
quarter of 2021, as we continued to implement brands portfolio
optimization, the Company has achieved better gross margin of
product sales. Furthermore, our progress on the cost control and
prioritization of quality growth over short-term sales growth have
already gained positive results in terms of our profitability. To
meet our operational needs, we successfully completed a public
offering with gross proceeds of US$9.0 million in August 2021,
which will help us expand our operational footprint and achieve the
mission of becoming a more successful enterprise in the
future.”
Second Quarter 2021 Financial Results
Total net revenues were US$42.8 million in the
three months ended June 30, 2021, as compared to US$100.5 million
in the same quarter of last year.
Product sales revenue was US$42.1 million in
the second quarter ended June 30, 2021, as compared to US$99.7
million in the same quarter of last year. The decrease in product
sales revenue was mainly due to (1) weakened demand for mother and
children care products and residual impact on demand for Gerber
following certain negative news coverage in the first quarter of
2021, and (2) the impact of our growth strategy to optimize brands
portfolio in order to achieve quality growth.
Services revenue was US$698,279, representing a
decrease of 10.6% from US$780,774 in the second quarter of last
year.
Cost of revenues was US$34.4 million,
representing a decrease of 58.6% from US$83.2 million in the same
quarter of last year. The decrease was mainly attributed to the
decline in product sales.
Operating expenses were US$12.3 million,
representing a decrease of 40.0% from US$20.5 million in the same
quarter of last year, as we continued to control costs and optimize
our operations. The decrease was mainly attributable to the
decrease of fulfillment expenses and sales and marketing expenses.
Detailed factors of the changes are as follows:
-
Fulfillment expenses were US$2.4 million,
representing a decrease of 49.0% from US$4.6 million in the same
quarter of last year. The decrease was primarily due to decreased
warehouse and logistics expenses as a result of lower product sales
in the second quarter of 2021.
- Sales
and marketing expenses were US$7.2 million, representing a
decrease of 40.9% from US$12.2 million in the same quarter of last
year. The decrease was primarily due to reduced employee-related
expenses, and decreased platform fees and promotional expenses
resulting from product sales revenue in the second quarter of
2021.
- General and administrative
expenses were US$2.5 million, representing a decrease of
26.8% from US$3.4 million in the same quarter of last year. The
decrease was primarily driven by reduced employee-related expenses,
and decreased professional service fees and insurance expense in
the second quarter of
2021.
-
Research and development expenses were US$0.27
million, as compared with US$0.32 million in the same quarter of
last year.
Operating loss was US$3.9
million, as compared to an operating loss of US$3.2 million in the
same quarter of last year.
Non-GAAP operating loss was US$3.1 million, as
compared to Non-GAAP operating loss of US$2.8 million in the same
quarter of last year.
Net loss was US$3.6 million, as compared to a
net loss of US$4.5 million in the same quarter of last year, as a
result of the factors described above.
Non-GAAP net loss was US$2.8 million, as
compared to Non-GAAP net loss of US$4.1 million in the same quarter
of last year.
Use of Non-GAAP Financial
Measures
The Company uses non-GAAP financial measures in evaluating its
business. For example, the Company uses non-GAAP operating income
(loss) and non-GAAP net income (loss), as supplemental measures to
review and assess its financial and operating performance.
The presentation of these non-GAAP financial measures is not
intended to be considered in isolation, or as a substitute for the
financial information prepared and presented in accordance with
U.S. GAAP. Non-GAAP operating income (loss) is operating income
(loss) excluding the impact of share-based compensation expenses.
Non-GAAP net income (loss) is net income (loss) excluding the
impact of share-based compensation expenses.
The Company presents the non-GAAP financial
measures because they are used by the Company’s management to
evaluate the Company’s financial and operating performance and
formulate business plans. Non-GAAP operating income (loss) and
non-GAAP net income (loss) enable the Company’s management to
assess the Company’s financial and operating results without
considering the impact of share-based compensation expenses. The
Company also believes that the use of the non-GAAP measures
facilitates investors’ assessment of the Company’s financial and
operating performance.
The non-GAAP financial measures are not defined
under U.S. GAAP and are not presented in accordance with U.S. GAAP.
The non-GAAP financial measures have limitations as analytical
tools. One of the key limitations of using non-GAAP operating
income (loss) and non-GAAP net income (loss) is that they do not
reflect all items of income and expense that affect the Company’s
operations. Share-based compensation expenses have been and may
continue to be incurred in the Company’s business and is not
reflected in the presentation of non-GAAP operating income (loss)
and non-GAAP net income (loss). Further, the non-GAAP measures may
differ from the non-GAAP measures used by other companies,
including peer companies, and therefore their comparability may be
limited. In light of the foregoing limitations, the non-GAAP
operating income (loss) and non-GAAP net income (loss) should not
be considered in isolation from or as an alternative to operating
income (loss) and net income (loss), or other financial measures
prepared in accordance with U.S. GAAP.
The Company compensates for these limitations by
reconciling the non-GAAP financial measures to the nearest U.S.
GAAP performance measures, which should be considered when
evaluating the Company’s performance. For reconciliations of these
non-GAAP financial measures to the most directly comparable GAAP
financial measures, please see the section of the accompanying
tables titled “Reconciliations of GAAP and Non-GAAP Results.”
All quarterly results referred to in the text,
tables and attachments to this press release are unaudited.
Business Outlook
We have seen an improvement in our operating results throughout
the second quarter of 2021, as compared to our results of
operations in the first quarter of 2021. Our strategy to optimize
operations and control cost has shown positive results, and our
operating expenses as a percentage of total revenue has gradually
decreased to a similar level as that of 2020. In view of these
factors and our operating results for the six months ended June 30,
2021, we expect that the net loss will significantly decrease in
the third quarter of 2021, compared with the same quarter of last
year.
This outlook is based on current market conditions and reflects
the our current and preliminary estimates of market and operating
conditions, which are subject to change and substantial
uncertainty.
Recent Development
On August 5, 2020, the Company completed the
underwritten public offering of 10 million American Depositary
Shares (“ADSs”) at an offering price of US$0.90 per ADS for gross
proceeds to the Company of US$9.0 million, before deducting
underwriting discounts and commissions and other estimated offering
expenses payable by the Company, and assuming the underwriter does
not exercise the option to purchase additional ADSs. The Company
intends to use the net proceeds from this offering for investment
in its SaaS platform, working capital and general corporate
purposes.
Exchange Rate Information
This press release contains translations of
certain Renminbi amounts into U.S. dollars at specified rates
solely for the convenience of readers. The exchange rate used for
translation on June 30, 2021, December 31, 2020 and June 30, 2020
was US$1.00 to RMB6.4601, US$1.00 to RMB6.5249 and US$1.00 to
RMB7.0795, respectively, representing the index rates stipulated by
the People’s Bank of China on such date.
The Company makes no representation that the
Renminbi or U.S. dollar amounts referred could be converted into
U.S. dollar or Renminbi, as the case may be, at any particular rate
or at all.
Safe Harbor Statements
This news release contains forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended, and as defined in the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
“will,” “expects,” “anticipates,” “future,” “intends,” “plans,”
“believes,” “estimates,” “target,” “going forward,” “outlook” and
similar statements. For example, the Company’s statements about its
expectations for Company performance in 2021, its strategy and
industry outlook are forward-looking statements and are inherently
uncertain. Such statements are based upon management's current
expectations and current market and operating conditions, and
relate to events that involve known or unknown risks, uncertainties
and other factors, such as the significant volatility and
disruption caused by the COVID-19 pandemic, the Company’s expected
growth of the online retail industry in China, the Company’s
expectations regarding demand for and market acceptance of its
products and services, the Company’s expectations regarding its
relationships with its brand partners and e-commerce channels, and
the level of consumer economic activity in China, all of which are
difficult to predict and many of which are beyond the Company's
control, which may cause the Company's actual results, performance
or achievements to differ materially from those in the
forward-looking statements. Further information regarding these and
other risks, uncertainties or factors is included in the Company's
filings with the U.S. Securities and Exchange Commission. The
Company does not undertake any obligation to update any
forward-looking statement as a result of new information, future
events or otherwise, except as required under applicable law.
About ECMOHO Ltd.
ECMOHO is a leading integrated solutions provider in the health
and wellness market in China. The company curates and sells the
best global brands and quality products to Chinese health-conscious
consumers. Our technology, network and expertise in marketing and
distribution empower us to connect families with advanced health
supplements, nutrition and food items, personal care products,
household healthcare equipment and other wellness products. Through
over ten years of operation, ECMOHO has established an ecosystem of
trusted products and relationships to provide customized solutions
which promote health regeneration, impart therapeutic benefits, and
increase longevity to our devoted consumers to sustain health.
For more information, please visit
http://ir.ecmoho.com/.
For investor and media inquiries, please contact:
ECMOHO Ltd.Investor RelationsMs. Yvonne Xu
Email: IR@ecmoho.com
|
|
ECMOHO LIMITED UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS(In thousands of U.S.
dollars) |
|
|
|
|
|
As of December 31, 2020 |
|
As of June 30, 2021 |
|
US$ |
|
US$ |
ASSETS |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
45,284 |
|
|
42,625 |
|
Accounts receivable, net |
42,006 |
|
|
37,967 |
|
Inventories |
33,263 |
|
|
22,181 |
|
Prepayments and other current assets |
9,200 |
|
|
8,738 |
|
Loan receivable |
646 |
|
|
- |
|
Total current
assets |
130,399 |
|
|
111,511 |
|
Property and equipment, net |
967 |
|
|
853 |
|
Intangible assets, net |
565 |
|
|
549 |
|
Operating lease right-of-use assets |
2,434 |
|
|
3,410 |
|
Long-term investments |
5,904 |
|
|
7,354 |
|
Deferred tax assets, net |
829 |
|
|
838 |
|
Other non-current assets |
1,530 |
|
|
1,255 |
|
Total
assets |
142,628 |
|
|
125,770 |
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
Short-term borrowings |
16,943 |
|
|
16,389 |
|
Accounts payable |
24,191 |
|
|
16,762 |
|
Amounts due to related parties |
9,401 |
|
|
8,481 |
|
Advances from customers |
731 |
|
|
587 |
|
Operating lease liabilities, current |
411 |
|
|
827 |
|
Salary and welfare payable |
821 |
|
|
622 |
|
Tax payable |
3,574 |
|
|
2,874 |
|
Accrued liabilities and other current liabilities |
5,039 |
|
|
4,343 |
|
Total current
liabilities |
61,111 |
|
|
50,885 |
|
Deferred taxes liabilities |
24 |
|
|
15 |
|
Operating lease liabilities, non-current |
1,939 |
|
|
2,670 |
|
Total
liabilities |
63,074 |
|
|
53,570 |
|
|
|
|
|
Shareholders’
equity: |
|
|
|
Class A Ordinary Shares, US$
0.00001 par value |
1 |
|
|
1 |
|
Class B Ordinary Shares, US$
0.00001 par value |
1 |
|
|
1 |
|
Additional paid-in
capital |
108,370 |
|
|
109,904 |
|
Accumulated other
comprehensive income |
4,037 |
|
|
4,775 |
|
Accumulated deficit |
(32,855 |
) |
|
(42,483 |
) |
Total ECMOHO Limited
shareholders’ equity |
79,554 |
|
|
72,198 |
|
Non-controlling interests |
- |
|
|
2 |
|
Total shareholders’
equity |
79,554 |
|
|
72,200 |
|
Total liabilities and
shareholders’ equity |
142,628 |
|
|
125,770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
ECMOHO LIMITED UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands
of U.S. dollars, except for share and per ADS
data) |
|
|
|
|
|
For Three Months Ended |
|
For Six Months Ended |
|
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
US$ |
|
US$ |
|
US$ |
|
US$ |
Net revenues |
100,475 |
|
|
42,798 |
|
|
161,637 |
|
|
69,884 |
|
Cost of
revenue |
(83,182 |
) |
|
(34,406 |
) |
|
(133,604 |
) |
|
(56,384 |
) |
Gross
profit |
17,293 |
|
|
8,392 |
|
|
28,033 |
|
|
13,500 |
|
Operating
expenses(1): |
|
|
|
|
|
|
|
Fulfillment expenses |
(4,610 |
) |
|
(2,352 |
) |
|
(8,384 |
) |
|
(4,627 |
) |
Sales and marketing
expenses |
(12,190 |
) |
|
(7,201 |
) |
|
(21,366 |
) |
|
(13,449 |
) |
General and administrative
expenses |
(3,360 |
) |
|
(2,461 |
) |
|
(6,448 |
) |
|
(4,625 |
) |
Research and development
expenses |
(324 |
) |
|
(271 |
) |
|
(634 |
) |
|
(601 |
) |
Other operating income |
15 |
|
|
- |
|
|
16 |
|
|
- |
|
Total operating
expenses |
(20,469 |
) |
|
(12,285 |
) |
|
(36,816 |
) |
|
(23,302 |
) |
Operating
loss |
(3,176 |
) |
|
(3,893 |
) |
|
(8,783 |
) |
|
(9,802 |
) |
Finance expense, net |
(1,141 |
) |
|
(709 |
) |
|
(1,688 |
) |
|
(1,091 |
) |
Foreign exchange
(loss)/income, net |
(143 |
) |
|
1,090 |
|
|
(111 |
) |
|
1,221 |
|
Other income, net |
7 |
|
|
18 |
|
|
1,529 |
|
|
101 |
|
Loss before income tax
(expenses)/benefits |
(4,453 |
) |
|
(3,494 |
) |
|
(9,053 |
) |
|
(9,571 |
) |
Income tax
(expenses)/benefits |
(6 |
) |
|
(57 |
) |
|
10 |
|
|
(55 |
) |
Net loss |
(4,459 |
) |
|
(3,551 |
) |
|
(9,043 |
) |
|
(9,626 |
) |
Less: Net income/(loss)
attributable to the non- |
|
|
|
|
|
|
|
|
|
|
|
controlling interest shareholders and redeemable non-controlling
interest shareholders |
(86 |
) |
|
4 |
|
|
(265 |
) |
|
2 |
|
Net loss attributable
to ECMOHO Limited |
(4,373 |
) |
|
(3,555 |
) |
|
(8,778 |
) |
|
(9,628 |
) |
|
|
|
|
|
|
|
|
Net loss per share
attributable to ECMOHO |
|
|
|
|
|
|
|
Limited’s ordinary shareholders |
|
|
|
|
|
|
|
—basic |
(0.03 |
) |
|
(0.03 |
) |
|
(0.06 |
) |
|
(0.07 |
) |
—diluted |
(0.03 |
) |
|
(0.03 |
) |
|
(0.06 |
) |
|
(0.07 |
) |
|
|
|
|
|
|
|
|
Net loss per ADS
attributable to ECMOHO |
|
|
|
|
|
|
|
Limited’s ordinary shareholders |
|
|
|
|
|
|
|
—basic |
(0.13 |
) |
|
(0.10 |
) |
|
(0.25 |
) |
|
(0.27 |
) |
—diluted |
(0.13 |
) |
|
(0.10 |
) |
|
(0.25 |
) |
|
(0.27 |
) |
|
|
|
|
|
|
|
|
Weighted average
number of Ordinary Shares |
|
|
|
|
|
|
|
—basic |
139,654,099 |
|
|
142,171,062 |
|
|
139,583,487 |
|
|
141,296,719 |
|
—diluted |
139,654,099 |
|
|
142,171,062 |
|
|
139,583,487 |
|
|
141,296,719 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Share-based compensation expenses are
allocated in operating expenses items as follows:
|
For Three Months Ended |
For Six Months Ended |
|
June 30, |
|
June 30, |
June 30, |
|
June 30, |
|
2020 |
|
2021 |
2020 |
|
2021 |
|
US$ |
|
US$ |
US$ |
|
US$ |
|
|
|
|
|
|
|
Fulfillment expenses |
3 |
|
27 |
6 |
|
55 |
Sales and marketing
expenses |
103 |
|
470 |
195 |
|
1,111 |
General and administrative
expenses |
220 |
|
211 |
441 |
|
295 |
Research and development
expenses |
1 |
|
36 |
6 |
|
72 |
Total Share-based
compensation expenses |
327 |
|
744 |
648 |
|
1,533 |
|
|
|
|
|
|
|
ECMOHO LIMITED Reconciliations of GAAP and
Non-GAAP Results(In thousands of U.S.
dollars) |
|
|
|
|
|
For Three Months Ended |
|
For Six Months Ended |
|
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
US$ |
|
US$ |
|
US$ |
|
US$ |
|
|
|
|
|
|
|
|
Operating income/(loss) |
(3,176 |
) |
|
(3,893 |
) |
|
(8,783 |
) |
|
(9,802 |
) |
Add: Share-based compensation
expenses |
327 |
|
|
744 |
|
|
648 |
|
|
1,533 |
|
Non-GAAP Operating
income/(loss) |
(2,849 |
) |
|
(3,149 |
) |
|
(8,135 |
) |
|
(8,269 |
) |
|
|
|
|
|
|
|
|
Net
income/(loss) |
(4,459 |
) |
|
(3,551 |
) |
|
(9,043 |
) |
|
(9,626 |
) |
Add: Share-based compensation
expenses |
327 |
|
|
744 |
|
|
648 |
|
|
1,533 |
|
Non-GAAP Net
income/(loss) |
(4,132 |
) |
|
(2,807 |
) |
|
(8,395 |
) |
|
(8,093 |
) |
ECMOHO (NASDAQ:MOHO)
Historical Stock Chart
From Nov 2024 to Dec 2024
ECMOHO (NASDAQ:MOHO)
Historical Stock Chart
From Dec 2023 to Dec 2024