Haoxi Health Technology Ltd

Haoxi Health Technology Ltd Annual Review - Plain English Investor Summary

Let’s cut through the noise. Here’s what you need to know about Haoxi Health Tech’s year:

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What They Do

Haoxi helps healthcare companies run ads on Chinese social platforms like Douyin (TikTok’s sister app), WeChat, and Weibo. They plan campaigns, create content, and use their “Bidding Compass” software to get clients better ad prices. New this year: experimental livestreaming services for medical beauty brands (think virtual consultations).

Key stat: 85% of their ~2,000 clients since 2018 are healthcare companies.

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Financial Performance

• Revenue: $150M (↑20% from last year)
• Profit: Lost $10M (improved from $25M loss last year)
• Clients: 473 advertisers total (↓13% from 2023), but healthcare clients grew to 414 (↑21%)

Translation: Making more money per client but serving fewer customers overall. Still spending heavily to grow.

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Biggest Wins

1. Became a leader in China’s booming healthcare ad market (especially short videos).
2. Kept 85%+ clients in healthcare – smart focus as China’s population ages.
3. Launched livestreaming services (early but could be future growth driver).

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Trouble Spots

1. Lost 70 advertisers year-over-year.
2. New Chinese data privacy laws could make targeted ads harder.
3. Entire business relies on China – zero international revenue.

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Financial Health Check

• Cash: $50M (down from $80M last year)
• Debt: $30M (low interest)
• Spending rate: Burning $40M/year → 1.25 years of cash left

Red flag: Needs to reduce spending or boost revenue soon.

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Competition

• Strength: Specializes in healthcare ads (unlike generalist rivals).
• Weakness: Tiny vs giants like Alibaba’s ad division.
• Secret weapon: “Bidding Compass” software gives pricing edge.

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2024 Goals

1. Make livestreaming services profitable.
2. Cut cash burn by 50%.
3. Become “Shopify for healthcare influencers” (help clinics monetize content).

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What Could Sink This Ship?

• China cracking down on healthcare ads/data usage.
• Douyin/WeChat changing ad rules.
• Livestreaming service failing to gain traction.

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Should You Invest?

The Good:

• Dominates healthcare ads in world’s largest aging population.
• Revenue growing despite fewer clients.
• Unique tech with Bidding Compass.

The Bad:

• Still losing money.
• Entire business tied to China’s unpredictable regulations.
• Expensive stock (30x revenue).

Bottom Line:
High-risk, high-reward. Only consider if you:

1. Believe China’s healthcare ad market will keep growing.
2. Trust they can fend off bigger rivals.
3. Can stomach regulatory risks.

Final note: The company shared limited details about international plans or livestreaming financials – less transparency than some investors prefer.