Haoxi Health Technology (HAO) Registration Filing summary

Company overview and business model

• Operates as an online marketing solution provider in China, primarily serving healthcare industry advertisers.

• Offers one-stop online marketing services, focusing on short video ads, content production, and campaign optimization.

• Utilizes proprietary data analysis software, “Bidding Compass,” to enhance ad placement efficiency and ROI.

• Maintains direct and agent-based relationships with major media platforms, especially ByteDance’s Ocean Engine.

• Has served approximately 2,000 advertisers since 2018, with a growing client base and strong industry focus.

Financial performance and metrics

• Revenue for the six months ended December 31, 2023 was $23.50 million, up 157% from $9.16 million in the prior year period.

• Net income for the same period was $760,198, a 70% increase from $447,046.

• Fiscal year 2023 revenue was $28.23 million, up 75% from $16.16 million in 2022; net income was $969,752, up from $244,587.

• Gross margin improved to 7.3% in FY2023 from 4.0% in FY2022, mainly due to direct contracts with Ocean Engine.

• Cash and cash equivalents as of December 31, 2023 were $1.11 million; company expects negative operating cash flows as it scales.

Use of proceeds and capital allocation

• Plans to use approximately 60% of net proceeds for working capital and general corporate purposes, including sales and marketing.

• About 30% allocated for acquiring or investing in technologies, solutions, or businesses to enhance data analysis and customer return rates.

• Remaining 10% intended for hiring experienced employees to strengthen internal controls and compliance.