Natural Health Trends Corp (NHTC) 2025 Q2 法說會逐字稿

Greetings. Welcome to Natural Health Trends Corp second quarter 2025 earnings conference call. (Operator Instructions) Please note this conference is being recorded.

問候。歡迎參加 Natural Health Trends Corp 2025 年第二季財報電話會議。（操作員指示）請注意，本次會議正在錄音。

I will now turn the conference over to Michelle Gladwell with Natural Health Trends Corp. Thank you. You may begin.

現在我將會議交給 Natural Health Trends Corp 的米歇爾·格拉德威爾。謝謝。你可以開始了。

Thank you, and welcome to Natural Health Trends second quarter 2025 earnings conference call. During today's call, there may be statements made relating to the future results of the company that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.

謝謝，歡迎參加 Natural Health Trends 2025 年第二季財報電話會議。在今天的電話會議中，可能會出現與公司未來業績有關的陳述，這些陳述屬於《1995 年私人證券訴訟改革法案》中定義的前瞻性陳述。

Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements through to the result of certain factors, including those set forth in the company's filings with the Securities and Exchange Commission. It should also be noted that today's call will be webcast live and can be found on the Investors section of the company's corporate website at naturalhealthtrendscorp.com. Instructions for accessing the archived version of the conference call can be found in today's financial results press release which was issued at approximately 9:00 AM Eastern Time.

由於某些因素（包括公司向美國證券交易委員會提交的文件中列出的因素），實際結果、業績或成就可能與此類前瞻性陳述中預期的結果、業績或成就有重大差異。另請注意，今天的電話會議將進行網路直播，您可以在公司網站 naturalhealthtrendscorp.com 的「投資者」板塊查看。造訪電話會議存檔版本的說明，請參閱今天發布的財務業績新聞稿，該新聞稿於美國東部時間上午 9:00 左右發布。

At this time, I'd like to turn the call over to Chris Sharng, President of Natural Health Trends.

現在，我想將電話轉給 Natural Health Trends 總裁 Chris Sharng。

Thank you, Michelle, and thanks to everyone for joining us this morning to discuss our second quarter 2025 financial results. With me today is Scott Davidson, our Senior Vice President and Chief Financial Officer. . Second quarter net sales were $9.8 million, a 6% decrease compared to the second quarter of 2024. It was a challenging quarter due to heightened economic uncertainty because of the evolving trade tensions that continue to weigh heavily on consumer sentiment in our biggest market.

謝謝你，米歇爾，也謝謝大家今天早上加入我們討論我們的 2025 年第二季財務業績。今天和我一起的是我們的高級副總裁兼財務長 Scott Davidson。。第二季淨銷售額為 980 萬美元，與 2024 年第二季相比下降 6%。由於貿易緊張局勢不斷升級，經濟不確定性加劇，對我們最大市場的消費者情緒持續造成沉重打擊，因此本季充滿挑戰。

Facing an increasingly uncertain global trade environment, we are actively transitioning our US based supply chain to trusted manufacturing partners in Asia, closer to our main markets. We aim to reduce exposure to unpredictable tariffs, streamline logistics by consolidating vendors and transportation lanes and to lower logistic costs. In addition, this move enhances our access to specialized R&D resources and technical support while allowing us to maintain strong quality control standards. We believe this strategic realignment positions us to better serve our customers, mitigate risk and drive long-term value creation.

面對日益不確定的全球貿易環境，我們正在積極將位於美國的供應鏈轉向更靠近我們主要市場的亞洲值得信賴的製造合作夥伴。我們的目標是減少不可預測的關稅風險，透過整合供應商和運輸路線來簡化物流並降低物流成本。此外，此舉增強了我們獲得專業研發資源和技術支援的機會，同時使我們能夠維持強大的品質控制標準。我們相信，這項策略調整使我們能夠更好地服務客戶、降低風險並推動長期價值創造。

Around the world, we continue to execute our programs, promotions and incentives designed to drive engagement, enhance customer loyalty and support our sales performance. During the quarter, we celebrated the achievement of top performers from multiple markets with incentive trips to the Maldives and Paris. We also executed a dynamic slate of in-person regional and local engagements including training sessions, product seminars, leadership development programs and initiatives focused on driving customer acquisitions and retentions.

在世界各地，我們繼續執行旨在推動參與、提高客戶忠誠度和支持我們的銷售業績的計劃、促銷和激勵措施。在本季度，我們透過馬爾地夫和巴黎獎勵旅遊來慶祝來自多個市場的頂尖員工所取得的成就。我們還開展了一系列充滿活力的面對面區域和本地活動，包括培訓課程、產品研討會、領導力發展計劃以及旨在推動客戶獲取和保留的舉措。

Earlier this month, we celebrated the official launch of our newest market, Colombia. The grand opening event was well attended and filled with energy, reflecting strong enthusiasm for growth across South America. We are excited to welcome Colombia to our global network and are confident that our proven high-impact products will support healthier lifestyles while also offering individuals the opportunity to build meaningful income and a brighter future.

本月初，我們慶祝了最新市場哥倫比亞的正式啟動。盛大的開幕活動出席人數眾多，充滿活力，體現了對整個南美洲發展的強烈熱情。我們很高興歡迎哥倫比亞加入我們的全球網絡，並相信我們經過驗證的高影響力產品將支持更健康的生活方式，同時也為個人提供創造有意義的收入和更光明未來的機會。

As these economic headwinds persist, we're exercising operational discipline with a continued focus on expense management, protecting margins, inventory control and, as previously mentioned, supply chain recalibration to mitigate tariff uncertainty. Despite near-term pressures, our long-term fundamentals remain strong. We're investing in our brand programs, incentives, product innovation and digital enhancements to drive recovery and future growth. We're actively listening and engaging with a few leaders and customers and adjusting tactics to ensure we remain resilient.

隨著這些經濟逆風持續存在，我們正在嚴格執行營運紀律，繼續專注於費用管理、保護利潤、庫存控制以及如前所述的供應鏈重新調整，以減輕關稅的不確定性。儘管面臨短期壓力，但我們的長期基本面依然強勁。我們正在投資我們的品牌計劃、激勵措施、產品創新和數位化增強，以推動復甦和未來成長。我們正在積極傾聽並與一些領導和客戶互動，並調整策略以確保我們保持韌性。

With that, I'd like to turn the call over to our CFO, Scott Davidson, to discuss our financial results in greater detail. Scott?

有了這些，我想將電話轉給我們的財務長 Scott Davidson，更詳細地討論我們的財務表現。史考特？

Thank you, Chris. Net sales in the second quarter were $9.8 million, a decline of 6% compared to $10.5 million in the second quarter a year ago. Our sales in Hong Kong, which made up 82% of our sales during the quarter, declined 5% year-over-year, due to the heightened economic uncertainty that Chris mentioned. Gross profit margin of 73.9% in the second quarter was relatively consistent with the second quarter last year. Commissions expense as a percent of total sales for the second quarter were 40.9% compared with 40.1% a year ago.

謝謝你，克里斯。第二季淨銷售額為 980 萬美元，與去年同期的 1,050 萬美元相比下降 6%。由於克里斯提到的經濟不確定性加劇，香港的銷售額佔本季銷售額的 82%，比去年同期下降了 5%。第二季毛利率為73.9%，與去年第二季基本一致。第二季佣金支出佔總銷售額的百分比為 40.9%，而去年同期為 40.1%。

Commissions expense increased primarily due to higher weekly commissions earned by our members during the second quarter of this year. Selling, general and administrative expenses declined $235,000 to $3.6 million for the quarter from $3.8 million in the second quarter a year ago. As a result, operating loss for the quarter was $333,000 compared to $238,000 in the second quarter last year, and net income for the second quarter totaled $15,000 or breakeven per diluted share compared to $173,000 or $0.02 per diluted share in the second quarter of 2024.

佣金支出增加主要是因為今年第二季我們的會員獲得的每週佣金增加。本季銷售、一般及行政開支從去年同期的 380 萬美元下降 23.5 萬美元至 360 萬美元。因此，本季營業虧損為 333,000 美元，而去年第二季為 238,000 美元，第二季淨收入總計 15,000 美元或每股攤薄收益平衡，而 2024 年第二季為 173,000 美元或每股攤薄收益平衡，而 2024 年第二季為 173,000 美元或每股攤薄收益 0.02 美元。

Now I'll turn to our cash flows and balance sheet. Net cash used in operating activities was $5.2 million during the first six months of 2025 compared to $3 million during the comparable period a year ago. Excluding our required annual tax installment payments related to the 2017 US Tax Cuts and Jobs Act, we used $97,000 in cash flows from operations during the current year period compared with cash generated from operations of $950,000 during the same period a year ago.

現在我將談談我們的現金流和資產負債表。2025 年前六個月經營活動所用淨現金為 520 萬美元，去年同期為 300 萬美元。不包括與 2017 年美國減稅與就業法案相關的年度分期繳稅要求，我們本年度使用的經營現金流為 97,000 美元，而去年同期的經營現金流為 950,000 美元。

Total cash, cash equivalents and marketable securities were $34.2 million at June 30, down from $41.9 million at March 31 due to our required tax installment payment of $5.1 million in our quarterly dividend payment. Our tax liability related to the Tax Cuts and Jobs Act is now fully settled. In regards to our quarterly dividend, I am pleased to announce that on July 28, our Board of Directors declared another cash dividend of $0.20 per share, which will be payable on August 22 to stockholders of record as of August 12.

截至 6 月 30 日，現金、現金等價物和有價證券總額為 3,420 萬美元，低於 3 月 31 日的 4,190 萬美元，原因是我們在季度股息支付中需要分期支付 510 萬美元的稅款。我們與減稅和就業法案相關的稅務責任現已全部結清。關於我們的季度股息，我很高興地宣布，7 月 28 日，我們的董事會宣布再次派發每股 0.20 美元的現金股息，將於 8 月 22 日支付給 8 月 12 日登記在冊的股東。

In closing, we remain focused on executing our strategic priorities with discipline. Our ongoing supply chain transition is a key part of the strategy, designed to shield the business from tariff uncertainty, improve cost efficiencies and enhance our resilience in today's challenging and unpredictable economic environment. We are confident that the successful execution of these initiatives will position us for continued progress and value creation. On behalf of our leadership team, I want to express our sincere gratitude to our dedicated field leaders, loyal customers and shareholders for their continued support.

最後，我們將繼續專注於嚴格執行我們的策略重點。我們正在進行的供應鏈轉型是該策略的關鍵部分，旨在保護企業免受關稅不確定性的影響，提高成本效率，並增強我們在當今充滿挑戰和不可預測的經濟環境中的適應力。我們相信，這些措施的成功實施將使我們繼續取得進展並創造價值。我謹代表我們的領導團隊，向我們敬業的現場領導、忠實的客戶和股東的持續支持表示誠摯的感謝。

That completes our prepared remarks. I will now turn the call back over to the operator.

我們的準備好的演講到此結束。我現在將把電話轉回給接線生。

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. Please disconnect your lines at this time, and have a wonderful day.

女士們、先生們，感謝你們的參與。今天的電話會議到此結束。此時請斷開您的線路，祝您有美好的一天。