The company's operational efficiency is severely constrained by a razor-thin 2.83% gross margin and a deteriorating operating margin of -16.8% as of 2026Q2.
| Sales/Revenue | 91.65M | 32.8M | 48.52M | 28.23M | 16.16M | 12.85M |
| Revenue Growth % | 53.23% | -32.39% | 71.88% | 74.72% | 25.76% | - |
| Cost of Goods Sold | 87.58M | 31.88M | 45.77M | 26.17M | 15.51M | 12.24M |
| COGS % of Revenue | - | 97.17% | 94.33% | 92.7% | 95.98% | 95.29% |
| Gross Profit | 4.07M | 927.75K | 2.75M | 2.06M | 648.72K | 605.58K |
| Gross Margin % | 4.44% | 2.83% | 5.67% | 7.3% | 4.02% | 4.71% |
| Gross Profit Growth % | - | -66.27% | 33.38% | 217.87% | 7.12% | - |
| Operating Expenses | 10.85M | 2.93M | 1.03M | 866.25K | 379.95K | 275.02K |
| OpEx % of Revenue | - | 8.92% | 2.13% | 3.07% | 2.35% | 2.14% |
| Selling, General & Admin | 10.66M | 2.85M | 953.14K | 808.09K | 277.43K | 212.38K |
| SG&A % of Revenue | - | 8.68% | 1.96% | 2.86% | 1.72% | 1.65% |
| Research & Development | 189.86K | 79.54K | 79.98K | 58.16K | 102.52K | 62.65K |
| R&D % of Revenue | - | 0.24% | 0.16% | 0.21% | 0.63% | 0.49% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -6.13M | -2M | 1.72M | 1.2M | 268.77K | 330.55K |
| Operating Margin % | -6.69% | -6.1% | 3.54% | 4.24% | 1.66% | 2.57% |
| Operating Income Growth % | - | -216.46% | 43.61% | 344.92% | -18.69% | - |
| EBITDA | -5.86M | -1.63M | 1.73M | 1.2M | 270.98K | 330.96K |
| EBITDA Margin % | -6.39% | -4.96% | 3.56% | 4.27% | 1.68% | 2.58% |
| EBITDA Growth % | -370.02% | -194.23% | 43.48% | 344.38% | -18.12% | - |
| D&A (Non-Cash Add-back) | 271.8K | 371.75K | 10.57K | 8.39K | 2.21K | 411 |
| EBIT | -526.29K | 4.19M | 1.78M | 1.21M | 269.56K | 330.55K |
| Net Interest Income | 407.7K | 317.36K | 34.91K | -20.9K | -9.96K | -5.27K |
| Interest Income | 478.05K | 363.31K | 76.1K | 0 | 0 | 0 |
| Interest Expense | 70.35K | 45.96K | 41.19K | 20.9K | 9.96K | 5.27K |
| Other Income/Expense | 5.32M | 6.15M | 18K | -5.41K | -9.17K | -5.27K |
| Pretax Income | -1.46M | 4.15M | 1.74M | 1.19M | 259.6K | 325.28K |
| Pretax Margin % | -1.59% | 12.64% | 3.58% | 4.22% | 1.61% | 2.53% |
| Income Tax | 1.02M | 270.74K | 443.58K | 220.65K | 15.01K | 21.22K |
| Effective Tax Rate % | -69.62% | 6.53% | 25.56% | 18.54% | 5.78% | 6.52% |
| Net Income | -2.47M | 3.88M | 1.29M | 969.75K | 244.59K | 304.06K |
| Net Margin % | -2.7% | 11.82% | 2.66% | 3.44% | 1.51% | 2.37% |
| Net Income Growth % | -233.6% | 200.13% | 33.2% | 296.49% | -19.56% | - |
| Net Income (Continuing) | -2.47M | 3.88M | 1.29M | 969.75K | 244.59K | 304.06K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.55 | 1.32 | 1.06 | 0.09 | 0.02 | 0.03 |
| EPS Growth % | -149.39% | 24.53% | 1104.55% | 266.67% | -20% | - |
| EPS (Basic) | - | 1.66 | 1.06 | 0.09 | 0.02 | 0.03 |
| Diluted Shares Outstanding | 4.49M | 2.4M | 12.24M | 11.05M | 10M | 10M |
| Basic Shares Outstanding | 4.49M | 2.33M | 12.24M | 11.05M | 10M | 10M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Regulatory and margin compression
As reported in recent financial filings, HAO experienced a significant -32.39% year-over-year revenue decline, suggesting that the company's transactional advertising model lacks the necessary stickiness to maintain growth in a highly competitive and increasingly regulated Chinese digital marketing landscape for the healthcare vertical.
The sharp reversal from previous growth periods indicates that the company's reliance on short-video ad placement is highly susceptible to client churn. Investors should monitor whether this trend reflects a broader loss of market share or a fundamental shift in how healthcare advertisers allocate their digital budgets.
Based on the company's reported figures, HAO maintains a razor-thin gross margin of 2.83%, which leaves virtually no room for error in pricing or cost management when navigating the volatile media buying environment of major Chinese social platforms like Douyin and Toutiao.
This structural limitation suggests that the company functions more as a high-volume intermediary than a value-added technology provider. Any increase in traffic acquisition costs from upstream platforms could immediately push the company into deeper gross losses, as there appears to be little pricing power to pass these costs to clients.
According to the income statement data, HAO's operating margin has deteriorated to -6.10%, indicating that the company's fixed overhead costs are currently scaling faster than its gross profit, which warrants further investigation into the efficiency of its content production and ad optimization personnel.
The inability to achieve positive operating leverage suggests that the current business model is not yet self-sustaining. Without a significant increase in revenue volume or a reduction in fixed SG&A expenses, the company may continue to struggle with core profitability regardless of its non-operating income sources.
Financial statements reveal a concerning divergence between the -6.10% operating margin and the 11.82% net margin, suggesting that the company's reported bottom-line profitability is heavily reliant on non-operating items rather than the underlying health of its core advertising services business.
Investors should be cautious, as this reliance on non-operating gains may be unsustainable and does not reflect the true economic performance of the firm. The lack of clarity regarding these income sources makes it difficult to assess the long-term viability of the company's earnings profile.
Based on the provided data, the primary risk to the investment thesis is the company's extreme sensitivity to regulatory shocks and platform fee structures, which could render its current healthcare-focused advertising intermediary model obsolete in a very short period of time.
Short-sellers would likely focus on the rapid revenue contraction and the reliance on non-operating income to sustain net profitability. The absence of proprietary technology or a defensible moat suggests that the company remains highly vulnerable to any larger agency that decides to prioritize the healthcare advertising vertical.
Quick answers to the most common questions about buying HAO stock.
For fiscal year 2025, Haoxi Health Technology Limited (HAO) reported total revenue of $32.8M. This represents a 155.3% increase compared to $12.8M in 2021.
Haoxi Health Technology Limited (HAO) is profitable, generating $3.9M in net income for the fiscal year ending 2025 with a net profit margin of 11.8%.
Haoxi Health Technology Limited (HAO) reported an operating income of $-2.0M, resulting in an operating profit margin of -6.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Haoxi Health Technology Limited (HAO) generated $0.9M in gross profit for the year, representing a gross profit margin of 2.8%. This demonstrates the company's core pricing power and production efficiency.