-- 197.5% year-over-year revenue growth—
--159.7% year-over-year GMV growth--
Shanghai, China, June 16, 2021 (GLOBE NEWSWIRE) -- 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 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
● Cosmetic products
● Health and nutritional supplements
● Household products
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 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 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
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:
Jowell Global Ltd.
Ms. Jessie Zhao
Phone: +86 189-6232-0955
The Blueshirt Group
Ms. Susie Wang
Phone: +86 138-1081-7475
In the United States:
The Blueshirt Group
Ms. Julia Qian
Phone: +1 973-619-3227
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.