Happiness Biotech Group Limited, 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.
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