NANPING, China, Aug. 2, 2021 /PRNewswire/ -- Happiness Biotech
Group Limited (the "Company" or Nasdaq: HAPP), an innovative
China-based nutraceutical and
dietary supplements producer and e-commerce services provider,
today announced its financial results for the fiscal year ended
March 31, 2021.
FY 2020 Financial Highlights:
- Revenue increased $6,422,750 or
9.9% to $71,484,703 for the year
ended March 31, 2021, as
compared with $65,061,953 for the
fiscal year ended March 31, 2020. The
increase was primarily due to the new goods or service provided
including online sale, automobile sale and advertising service in
2021.
- Sales from the healthcare products dropped down significantly
to $45,389,702 during fiscal year
2021, a decrease of 30.2% as compared with fiscal year ended
March 31, 2020, due to adverse impact
of COVID-19 starting from January
2020.
- General and administrative expenses was $5,030,899 for the fiscal year ended March 31, 2021, representing an increase of
$1,548,440 or 44.5%, compared with
$3,482,459 for the fiscal year ended
March 31, 2020. The increase was
primarily attributable to the shares our employees from
April 1, 2020 through March 31, 2021 as well as the service charges by
internet search engine of key words, brand promotion costs of
online sales.
- The Company reported $691,956 of
net income attributable to common shareholders, or $0.03 per basic and diluted share
in the fiscal year ended March 31,
2021, compared to net income attributable to common
shareholders of $12.69 million,
or $0.53 per basic and diluted
share, in the comparative period.
"2020 was a very tough year for us, as travelling is restricted
from time to time during the whole year due to COVID-19,
the performance of our experience stores were getting worse.
In 2021, we closed 10 experience stores due to their poor
performance to avoid further losses. Meanwhile, we began to explore
new business opportunities in e-commerce and automobile sale
industries. It is exciting that our new business has achieved good
results in less than half a year. In order to reduce the cost of
trial and error, we chose B2B's business model from the
beginning. Utilizing the supply chain and marketing resources
accumulated over the years, we aim to provide business
solutions for SMEs. Our online store, Internet
information and advertising services and automobile
business are essentially based on our B2B business model for
small and medium-sized enterprises.
We are very grateful for our success in attracting a group of
great talents and investors in the past year, who are the key
driven for the development of our new business. Although the
profit margin of our new business is relatively low compared with
our traditional healthcare products business at the
beginning due to upfront cost, we believe that with the
maturity of our business model and the continuous improvement of
operation efficiency, we will obtain higher gross margin and
exponential growth in scale," said Mr. Xuezhu Wang, CEO of the Company.
About Happiness Biotech Group Limited
Headquartered in Nanping, China, Happiness Biotech Group Limited has
three business operations: nutraceutical and dietary supplements,
e-commerce and automobile sales. The nutrition and dietary
supplements business is focusing on the research, development,
manufacture and marketing of various products made from Chinese
herbal extracts and other ingredients. Over the past 17 years, we
have established a product portfolio consisting of 23 PRC National Medical Products
Administration registered "Blue-Cap" SKUs of nutraceutical and
dietary supplements products. Our e-commerce business focuses on
providing e-commerce solutions and services for small and
medium-sized enterprises. Our mission for the e-commerce segment is
to enable small and medium-sized enterprises to fully leverage the
power of e-commerce to grow rapidly. We started our automobile sale
business in November 2020. The
mission for our automobile sale business is to connect different
car dealers and offer better overall sales experience and services
to purchasers, and to streamline the automotive industry
transaction. For more information, please
visit: www.happ.org.cn
Forward-Looking Statements
This press release contains forward-looking statements as
defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. When the Company uses words such as
"may, "will, "intend," "should," "believe," "expect," "anticipate,"
"project," "estimate" or similar expressions that do not relate
solely to historical matters, it is making forward-looking
statements. Forward-looking statements are not guarantees of future
performance and involve risks and uncertainties that may cause the
actual results to differ materially from the Company's expectations
discussed in the forward-looking statements. 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; product and service demand
and acceptance; changes in technology; economic conditions;
reputation and brand; the impact of competition and pricing;
government regulations; fluctuations in general economic and
business conditions in China, the
COVID-19 outbreak and its impact on our operations and assumptions
underlying or related to any of the foregoing and other risks
contained in reports filed by the Company with the Securities and
Exchange Commission. 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 U.S.
Securities and Exchange Commission, 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.
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SOURCE Happiness Biotech Group Limited
