XINYU, China, Sept. 13, 2024 /PRNewswire/ -- Planet Image International Limited ("Planet Image," the "Company," "we," "our," or "us") (NASDAQ:YIBO), an export-oriented manufacturer and seller of compatible toner cartridges based in China, the U.S. and Europe, today announced its unaudited financial results for the six months ended June 30, 2024.
First Half 2024 Financial Highlights
Total revenues in the first half of 2024 were US$77.3 million, representing an increase of 4.1% from US$74.2 million in the same period of 2023.
Gross profit in the first half of 2024 was US$28.2 million with a gross profit margin of 36.5%, compared to US$31.3 million with a gross profit margin of 42.2% in the same period of 2023.
Income from operations in the first half of 2024 was US$5.8 million, representing a decrease of 40.8% from US$9.8 million in the same period of 2023.
Net income in the first half of 2024 was US$4.3 million, representing an increase of 7.6% from US$4.0 million in the same period of 2023.
Management Commentary
Shaofang Weng, Chief Executive Officer of the Company, commented, "We are pleased to report a 4.1% growth in total revenues to US$77.3 million for the first half of 2024 and a 7.6% increase in net income compared to the same period last year. This growth was primarily driven by a 15.1% increase in offline sales to dealers, which reflects our success in supporting dealers with online sales operations through enhanced warehousing, logistics, and IT systems. North America remained a key market, contributing 61% of our total revenues, with a 3.8% year-over-year increase, fueled by our ability to attract more local dealers with preferential pricing. Additionally, our market expansion in China and Brazil led to a 76.7% increase in revenue from other markets, now representing 5% of our total revenues. Our flexible strategies have enabled us to maintain a competitive edge amid challenging economic conditions in Europe and the US. Looking ahead, we will continue to explore strategic opportunities to optimize production, expand product offerings, and strengthen our sales channels globally."
First Half 2024 Financial Results
Revenues
Total revenues increased by 4.1% to US$77.3 million for the first half of 2024 from US$74.2 million for the same period of 2023. The increase in total revenues was mainly due to an increase in revenues from our offline sales to dealers and online sales to retail customers, partially offset by the decrease in our offline sales to original design manufacturing ("ODM") customers.
Comparison by Sales Channel
The following table sets forth our revenue by sales channel for the periods indicated.
For the six months ended June 30,
Change
2023
2024
Amount
%
Offline sales to dealers
$
39,689
$
45,668
$
5,979
15.1 %
Offline sales to ODM customers
29,042
25,711
(3,331)
(11.5) %
Online sales to retail customers
5,474
5,885
411
7.5 %
$
74,205
$
77,264
$
3,059
4.1 %
Revenue from offline sales to dealers increased by 15.1% from US$39.7 million for the first half of 2023 to US$45.7 million for the same period of 2024, mainly because we continuously expanded our local sales to dealers with online sales operations, utilized our warehousing, logistics and IT system and obtained more orders from dealers. Along with our dealers' expansion in their online sales business, we achieved significant growth in sales of products to dealers.
Revenue from offline sales to ODM customers decreased by 11.5% from US$29.0 million for the first half of 2023 to US$25.7 million for the same period of 2024, which was primarily attributable to less sale orders from some customers having concerns over longer transportation turnover due to limited ocean freight capacity under unfavorable political environment.
Revenue from online sales increased by 7.5% from US$5.5 million for the first half of 2023 to US$5.9 million for the same period of 2024, which was primarily due to more new household supply products, such as electric appliances and articles for daily use, being sold through online channels. Such products were manufactured by third parties and procured by the Company for resale in the U.S. and European markets.
Comparison by Area
The majority of our revenue for the six months ended June 30, 2023 and 2024 was generated from North America and Europe. The following table sets forth the disaggregation of revenue by area:
For the six months ended June 30,
Change
2023
2024
Amount
%
(in thousands of US$)
North America
$
45,779
$
47,503
$
1,724
3.8
%
Europe
26,251
25,918
(333)
(1.3)
%
Others
2,175
3,843
1,668
76.7
%
Total
$
74,205
$
77,264
$
3,059
4.1
%
Revenue generated from North America increased by 3.8% from US$45.8 million for the first half of 2023 to US$47.5 million for the same period of 2024, which was primarily attributable to our market expansion in the U.S. and increased sales by attracting more local dealers with preferential pricing, our well-developed warehousing, logistics and IT system and our advanced products.
Revenue generated from Europe slightly decreased by 1.3% from US$26.3 million for the first half of 2023 to US$25.9 million for the same period of 2024, as we did not significantly reduce the prices of our products compared with other competitors while faced with intense price competition, which resulted in customer attrition in Europe.
Revenue generated from others increased by 76.7% from US$2.2 million for the first half of 2023 to US$3.8 million for the same period of 2024, resulting from our market expansion in China and Brazil.
Cost of Revenues
Cost of revenues increased by 14.3% to US$49.0 million for the first half of 2024 from US$42.9 million for the same period of 2023. This increase was mainly attributable to the increase of material costs, ocean freight costs and tariff under unstable political and economic environment.
Gross Profit
Gross profit decreased to US$28.2 million for the first half of 2024 from US$31.3 million for the same period of 2023. Gross margin was 36.5% in the first half of 2024 compared to 42.2% in the same period of 2023, which was primarily due to (i) a decrease of the average sales price to attract more customers; (ii) an increase of sales of household supply products, such as electric appliances and articles for daily use, with relatively low gross margin; and (iii) an increase of ocean freight costs.
Operating Expenses
Total operating expenses increased by 4.4% to US$22.4 million for the first half of 2024 from US$21.4 million for the same period of 2023.
Selling expenses in the first half of 2024 increased by 8.0% to US$15.8 million from US$14.6 million in the same period of 2023, which was primarily driven by the increase of freight expenses charged by warehouses of online platforms.
General and administrative expenses in the first half of 2024 increased by 11.8% to US$3.7 million from US$3.3 million in the same period of 2023, which was primarily driven by the increase in payroll expenses of increased headcounts and more expected credit losses accrued.
Research and development expenses in the first half of 2024 decreased by 16.8% to US$3.0 million from US$3.6 million for the same period of 2023, primarily due to less materials consumed in research projects undertaken in the first half of 2024.
Other Income and Expenses
Our other non-operating income increased by 33.7% from US$0.8 million for the first half of 2023 to US$1.0 million for the same period of 2024, which was primarily attributable to more sales of scrap and waste as well as more packing, labeling and other services to offline dealer customers.
Fair value loss on derivative instruments was US$1.2 million for the first half of 2024 compared to US$5.5 million for the same period of 2023, primarily due to fluctuations of exchange rate.
Interest expenses, net decreased by US$0.6 million from US$0.8 million for the first half of 2023 to US$0.2 million for the same period of 2024, primarily due to a decrease of interest expenses of US$0.4 million because new loan agreements entered into in the first half of 2024 carried a lower interest rate on average compared with those entered into in the same period of 2023, and an increase of interest income of US$0.2 million with increased cash in bank.
Net Income
Net income was US$4.3 million for the first half of 2024, compared to US$4.0 million for the same period of 2023. Net income per share was US$0.08 for the first half of 2024, compared to US$0.09 for the same period of 2023.
Financial Conditions
As of June 30, 2024, the Company had cash and cash equivalents of $53.5 million, compared to $45.1 million as of December 31, 2023. Account receivable, net was $37.4 million as of June 30, 2024, compared to $31.3 million as of December 31, 2023. As of June 30, 2024, the Company had current assets of $129.2 million and current liabilities of $85.0 million, resulting in working capital of $44.2 million, as compared with current assets of $118.6 million, current liabilities of $82.4 million, and working capital of $36.2 million as of December 31, 2023.
Exchange Rate
This announcement contains translations of amounts in Renminbi ("RMB"), Hong Kong Dollar ("HKD"), Great Britain Pounds ("GBP"), Euros ("EUR") into U.S. dollars ("US$").
The following table outlines the currency exchange rates that were used in creating ...
