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 stores, enterprise short message service (“SMS”) and
information technology to serve designated medical insurance
institutions in China. The Company today announced its unaudited
financial results for the six months ended June 30, 2023.
First Half Fiscal Year of 2023 Operating
Highlights
|
● |
Registered users of the Company’s online platform
generated from selling food products were 729,131 as of June 30,
2023, compared to 711,534 as of June 30, 2022. |
|
● |
Average daily active users (“DAUs”) of the
Company’s online platform generated from selling food products
decreased to approximately 63.4 compared to 197.3 in the same
period of 2022. |
|
● |
Number of merchants carried in the Company’s
online platform generated from selling food products were 26 as of
June 30, 2023, compared to 504 as of June 30, 2022. |
|
● |
Type of goods carried in the Company’s online
platform generated from selling food products were 8 as of June 30,
2023, compared to 3,225 as of June 30, 2022. |
|
● |
Quantity of billing short messages of the
Company’s revenue generated from short message service (“SMS”)
increased to approximately 984.33 million compared to 79.41 million
in the same period of 2022. |
|
● |
Average unit price of short messages of the
Company’s revenue generated from SMS increased to approximately
$0.0083 compared to $0.0077 in the same period of 2022. |
First Half Fiscal Year of 2023 Financial
Highlights
|
● |
Total revenues in the first half fiscal year of
2023 increased by 816.90% to US$10.68 million compared to US$1.17
million in the same period of 2022. |
|
● |
Net loss in the first half fiscal year of 2023
decreased by 94.96% to US$0.28 million from US$5.53 million in the
same period of 2022. |
First Half Fiscal Year of 2023 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. As of June 30, 2023, the registered users of Meiwu’s
online platform exceeded 729,131, as compared to 711,534 as of June
30, 2022. The Company believes that this increase in registered
users demonstrates the success that convert the offline users to
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 to make adjustments as to the promotional activities
and advertising campaigns. For the six months ended June 30, 2023
and 2022, the average DAUs were 63.4 and 197.3 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 screening process. Different businesses offer
different products. The number of merchants were 26 as of June 30,
2023, compared to 504 as of June 30, 2022.
Type of goods. The Company
defines this metric as the type of the goods which provided in
Meiwu’s online platform as of the end of the period. As of June 30,
2023, the type of the goods of Meiwu’s online platform were 8, as
compared to 3,225 as of June 30, 2022.
Quantity of billing short
messages. The Company defines this metric as the total
quantity of the revenue generated from SMS for the period. The
Company account for revenue from customers’ usage of text message
on the Company’s Communication Platform-as-a-Service (“CPaaS”)
platform. For the six months ended June 30, 2023 and 2022, the
quantity of billing short messages were 984.33 million and 79.41
million respectively. The increase mainly due to the the
acquisition of Mahaotiaodong (Xiamen) Technology Co., Ltd.
(“Mahao”) on June 23, 2022.
Average unit price of short messages. The
Company defines this metric as the average unit price of the
revenue generated from SMS for the period. Different SMS channels
offer different unit prices. For the six months ended June 30, 2023
and 2022, the average unit price of short messages were $0.0083 and
$0.0077 respectively.
First Half Fiscal Year of 2023 Financial
Results
Revenues in the first half
fiscal year of 2023 increased by 815.90% to US$10.68 million
compared to US$1.17 million in the same period of 2022. The
increase is mainly due to the acquisition of Mahao in June 2022.
Mahao is a company engaging in providing internet access and
related services based in Xiamen, China, and generate the revenue
of US$8.11 million for the six months ended June 30, 2023.
Total operating expenses in the
first half fiscal year of 2023 decreased by 57.72% to US$2.41
million from US$5.71 million in the same period of 2022.
|
● |
Cost of revenues in the first half fiscal year of
2023 increased by 710.06% to US$8.23 million from US$1.02 million
in the same period of 2022, mainly due to the end of epidemic
prevention and control and an increase in business. The rise trend
of cost of revenues was close to the increase of the revenues. |
|
● |
Sales and marketing expenses in the first half
fiscal year of 2023 increased by 93.22% to US$0.80 million from
US$0.41 million in the same period of 2022, mainly due to the
launch of new sales activities, sales personnel’s bonuses have
increased. |
|
● |
General and administrative expenses in the first
half fiscal year of 2023 decreased by 70.62% to US$1.50 million
from US$5.12 million in the same period of 2022, mainly due to the
expenses generated by convertible bonds in 2022. |
|
● |
Research and development expenses in the first
half fiscal year of 2023 decreased by 37.59% to US$0.11 million
from US$0.17 million in the same period of 2022, mainly due to the
completion of some application development and the departure of
some R&D personnel. |
Gross Profit in the first half
fiscal year of 2023 was US$2.45 million, increasing 1,529.45% from
US$0.15 million in the same period of 2022. Gross margin in the
first half fiscal year of 2023 was 22.98%, compared to 12.92% for
the same period of 2022.
Net loss in the first half
fiscal year of 2023 decreased by 94.96% to US$0.28 million from
US$5.53 million in the same period of 2022. The main reason for the
decrease in net loss is that the revenue in 2023 increased compared
to 2022.
Basic and diluted loss per
share in the first half fiscal year of 2023 was US$0.01,
compared to US$0.17 in the same period of 2022.
Net cash used in operating
activities in the first half fiscal year of 2023 was
US$0.33 million, compared to US$10.07 million in the same period of
2022. Mainly due to the decrease in losses as revenue grew with the
growth of business this year.
As of June 30, 2023, the Company had
cash and cash equivalents of US$15.78 million,
compared to US$23.72 million as of December 31, 2022.
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, Meiwuzhishi Technology (Shenzhen) Co., Ltd
(“VIE”). The VIE is an online and mobile commerce company and
conduct our business through our online retail store on the website
www.wnw108.com. The VIE sell a myriad of food products on the
website all the food products sold on the website are from the
suppliers. The VIE 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 VIE able to respond
to and match supply with demand for food products in keeping with
consumer trends. On June 23, 2022, we had completed the acquisition
of Mahaotiaodong (Xiamen) Technology Company Limited (“Mahao”).
Mahao is a company engaging in providing internet access and
related services based in Xiamen, China. Mahao operated a short
message service platform to send customized content to terminal
customers. Mahao is a mobile information service provider with rich
industry experience. Enterprise Short Message Service (“SMS”) is
currently the main business form of Mahao. Mahao utilizes its
accumulated system development technology and business
understanding based on customers’ industry to provide professional
enterprise SMS services to customers. Mahao mainly provides
customers with a complete set of services around enterprise SMS
through various forms such as customized system development,
enterprise instant messaging platform, API system docking, etc.,
including early debugging and opening of customer and Mahao
platform docking, maintenance and upgrading of customer SMS
operation system during operation, and solving problems such as
delay in SMS transmission, ensuring smooth and fast SMS
transmission. At the same time, Mahao takes auditing information
security and optimizing customer experience as its responsibility.
Through a rigorous program, mobile information content is audited
to ensure that various enterprise SMS messages, including
information verification, user notifications, member reminders, and
marketing promotion, can be safely and effectively delivered to
information recipients. On the basis of ensuring efficient
transmission of mobile information and content security, Mahao
provides various enterprise SMS services, including mobile business
scenario construction, product operation support, consumer
relationship management and support, for various financial,
internet, e-commerce, express logistics and other enterprise
customers.
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 Amended Annual Report on Form 20F filed
with the SEC on October 18, 2023, the Current Report on Form 6-K
filed with the SEC on November 23, 2022, 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.
Contacts
Meiwu Technology Company
LimitedXinliang ZhangEmail: meiwuBS@usmeiwu.com
MEIWU TECHNOLOGY COMPANY
LIMITEDUNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS(Unaudited)
|
|
December 31,2022 |
|
|
June 30,2023 |
|
|
|
|
|
|
(Unaudited) |
|
ASSETS |
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
Cash |
|
$ |
23,716,768 |
|
|
$ |
15,783,731 |
|
Accounts receivable |
|
|
4,043,473 |
|
|
|
5,008,411 |
|
Inventories, net |
|
|
344,823 |
|
|
|
259,269 |
|
Advances to suppliers, net |
|
|
1,382,172 |
|
|
|
1,275,527 |
|
Other current assets |
|
|
386,954 |
|
|
|
426,942 |
|
Total Current
Assets |
|
|
29,874,190 |
|
|
|
22,753,880 |
|
Property and equipment, net |
|
|
183,386 |
|
|
|
121,453 |
|
Right of use lease assets, net |
|
|
227,603 |
|
|
|
166,530 |
|
Intangible Assets |
|
|
- |
|
|
|
6,757,409 |
|
Deferred Offering Costs |
|
|
9,893 |
|
|
|
- |
|
Goodwill |
|
|
7,700,569 |
|
|
|
7,700,569 |
|
Total Non-current
Assets |
|
|
8,121,451 |
|
|
|
14,745,961 |
|
TOTAL
ASSETS |
|
$ |
37,995,641 |
|
|
$ |
37,499,841 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
4,990,647 |
|
|
$ |
4,587,561 |
|
Short-term loan |
|
|
332,309 |
|
|
|
291,106 |
|
Contract liabilities |
|
|
747,093 |
|
|
|
1,038,871 |
|
Lease liabilities |
|
|
107,467 |
|
|
|
96,819 |
|
Tax Payable |
|
|
204,232 |
|
|
|
388,520 |
|
Accrued expenses and other current liabilities |
|
|
1,964,469 |
|
|
|
2,441,940 |
|
Total Current
Liabilities |
|
|
8,346,217 |
|
|
|
8,844,817 |
|
Due to related parties |
|
|
3,679,717 |
|
|
|
3,619,505 |
|
Long-term loan |
|
|
218,722 |
|
|
|
156,031 |
|
Convertible notes |
|
|
5,550,607 |
|
|
|
- |
|
Lease liabilities |
|
|
144,163 |
|
|
|
37,705 |
|
Total Non-current
Liabilities |
|
|
9,593,209 |
|
|
|
3,813,241 |
|
TOTAL
LIABILITIES |
|
$ |
17,939,426 |
|
|
$ |
12,658,058 |
|
|
|
|
|
|
|
|
|
|
Commitment and
Contingencies |
|
|
|
|
|
|
|
|
Stockholders’ Equity |
|
|
|
|
|
|
|
|
Ordinary Shares, no par value, unlimited shares authorized;
100,670,199 and 60,945,313 shares issued and outstanding as of June
30, 2023 and December 31, 2022, respectively |
|
$ |
- |
|
|
$ |
- |
|
Additional paid-in capital |
|
|
38,571,534 |
|
|
|
44,515,801 |
|
Accumulated deficit |
|
|
(17,081,329 |
) |
|
|
(17,349,240 |
) |
Accumulated other comprehensive loss |
|
|
(1,281,864 |
) |
|
|
(2,161,936 |
) |
Equity attributable to owners of the Company |
|
|
20,208,341 |
|
|
|
25,004,624 |
|
Non-controlling interests |
|
|
(152,126 |
) |
|
|
(162,841 |
) |
Total Stockholders’ Equity |
|
|
20,056,215 |
|
|
|
24,841,783 |
|
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
$ |
37,995,641 |
|
|
$ |
37,499,841 |
|
MEIWU TECHNOLOGY COMPANY
LIMITEDUNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS AND OTHERCOMPREHENSIVE
LOSS(Unaudited)
|
|
For the Six Months EndedJune
30, |
|
|
|
2022 |
|
|
2023 |
|
NET
REVENUE |
|
$ |
1,166,425 |
|
|
$ |
10,683,243 |
|
COST OF
REVENUE |
|
|
(1,015,769 |
) |
|
|
(8,228,377 |
) |
GROSS
PROFIT |
|
|
150,656 |
|
|
|
2,454,866 |
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES |
|
|
|
|
|
|
|
|
Sales and Marketing Expenses |
|
|
(414,750 |
) |
|
|
(801,374 |
) |
General and Administrative Expenses |
|
|
(5,122,188 |
) |
|
|
(1,504,654 |
) |
Research and Development Expenses |
|
|
(172,437 |
) |
|
|
(107,626 |
) |
Total operating expenses |
|
|
(5,709,375 |
) |
|
|
(2,413,654 |
) |
(LOSS) INCOME FROM
OPERATIONS |
|
|
(5,558,719 |
) |
|
|
41,212 |
|
|
|
|
|
|
|
|
|
|
Gain on disposal of
subsidiary |
|
|
- |
|
|
|
(29,279 |
) |
Other Income, net |
|
|
28,647 |
|
|
|
(79,191 |
) |
LOSS BEFORE INCOME
TAX |
|
|
(5,530,072 |
) |
|
|
(67,258 |
) |
Provision for Income
Taxes |
|
|
- |
|
|
|
211,368 |
|
NET LOSS |
|
|
(5,530,072 |
) |
|
|
(278,626 |
) |
Less: net loss
attributable to non-controlling interest |
|
|
(24,926 |
) |
|
|
(10,715 |
) |
OTHER COMPREHENSIVE
LOSS |
|
|
|
|
|
|
|
|
Foreign Currency Translation
Adjustment |
|
|
(991,133 |
) |
|
|
(880,073 |
) |
TOTAL COMPREHENSIVE
LOSS |
|
$ |
(6,521,205 |
) |
|
$ |
(1,158,699 |
) |
|
|
|
|
|
|
|
|
|
LOSS PER SHARE – BASIC
AND DILUTED |
|
|
(0.17 |
) |
|
|
(0.01 |
) |
WEIGHTED AVERAGE
SHARES OUTSTANDING – BASIC AND DILUTED |
|
|
39,376,394 |
|
|
|
80,917,493 |
|
MEIWU TECHNOLOGY COMPANY
LIMITEDUNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS(Unaudited)
|
|
For the Six Months EndedJune
30, |
|
|
|
2022 |
|
|
2023 |
|
Net cash used in operating
activities |
|
|
(10,073,063 |
) |
|
|
(333,642 |
) |
Net cash used in investing
activities |
|
|
(26,915 |
) |
|
|
(6,762,905 |
) |
Net cash provided by financing
activities |
|
|
7,670,698 |
|
|
|
157,068 |
|
Effect of changes of foreign
exchange rate on cash |
|
|
261,068 |
|
|
|
(993,558 |
) |
Net decrease in
cash |
|
|
(2,168,212 |
) |
|
|
(7,933,037 |
) |
Cash, beginning of the
period |
|
|
26,634,332 |
|
|
|
23,716,768 |
|
Cash, end of the
period |
|
|
24,466,120 |
|
|
|
15,783,731 |
|
Meiwu Technology (NASDAQ:WNW)
Historical Stock Chart
Von Nov 2024 bis Dez 2024
Meiwu Technology (NASDAQ:WNW)
Historical Stock Chart
Von Dez 2023 bis Dez 2024