Natural Health Trends Corp (NHTC) 2025 Q3 法說會逐字稿

Greetings. Welcome to Natural Health Trends Corp's 3rd quarter 2025 earnings conference call. (Operator Instructions).

問候。歡迎參加 Natural Health Trends Corp 2025 年第三季財報電話會議。（操作說明）

Michelle Gladewell with Natural Health Trends Corp.

Michelle Gladewell，來自 Natural Health Trends Corp.

Thank you. You may begin.

謝謝。你可以開始了。

Thank you and welcome to Natural Health Trends 3rd 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 1,995.

謝謝大家，歡迎參加 Natural Health Trends 2025 第三季財報電話會議。在今天的電話會議中，可能會出現與公司未來業績相關的陳述，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 the result of certain.

由於某些原因，實際結果、業績或成就可能與此類前瞻性聲明中預期的結果、業績或成就有重大差異。

Factors including those set forth in the company's filings with the Securities and Exchange Commission, it should also be noted that a replay of today's call can be found on the investor section of the company's corporate website at natural health Trendscorp.com.

除公司向美國證券交易委員會提交的文件中所列因素外，還應注意的是，今天電話會議的錄音可以在公司企業網站 natural health Trendscorp.com 的投資者關係部分找到。

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

此時，我想把電話交給 Natural Health Trends 的總裁 Christopher Sharng。

Thank you, Michelle.

謝謝你，米歇爾。

And thanks to everyone for joining us this morning to discuss our third quarter 2025 financial results. With me today is Timothy Davidson, our Senior Vice President, and Chief Financial Officer.

感謝各位今天上午與我們一起討論我們2025年第三季的財務表現。今天陪我一起的是我們的高級副總裁兼財務長蒂莫西·戴維森。

Third quarter net sales decreased 11% to $9.5 million compared to the third quarter of 2024, while orders declined 5% year over year. The decrease in net sales is in part due to the timing of product promotion and the pre-sale of our new skincare line at the end of September 2025 in Hong Kong.

與 2024 年第三季相比，第三季淨銷售額下降 11% 至 950 萬美元，而訂單量則較去年同期下降 5%。淨銷售額下降的部分原因是產品推廣的時間安排，以及我們在 2025 年 9 月底在香港預售新的護膚系列產品。

The economic outlook in our largest market remains challenging in the near term. In response, we're executing a targeted major restructuring plan, which we expect will result in $1.5 million annualized savings by mid-2026. Our ongoing measures include optimizing our workforce by approximately 10%, reducing operating costs, and cutting back or exiting certain facility leases.

我們最大市場的經濟前景在短期內仍充滿挑戰。為此，我們正在執行一項有針對性的重大重組計劃，預計到 2026 年年中，該計劃將每年節省 150 萬美元。我們正在採取的措施包括：將員工人數優化約 10%，降低營運成本，以及削減或終止某些設施租賃。

Also, as reported last quarter, we'd already begun the process of transitioning US based product manufacturing to be closer to Asia, to mitigate tariff uncertainty, streamline logistics, and reduce costs.

此外，正如上個季度報告的那樣，我們已經開始將美國的產品製造轉移到更靠近亞洲的地方，以減輕關稅的不確定性，簡化物流，並降低成本。

As part of these restructuring initiatives, we expect to incur a one-time charge of approximately $250,000 in the fourth quarter and anticipate a reduction in our quarterly cash dividend to $0.10 per share in the first quarter next year.

作為這些重組計劃的一部分，我們預計將在第四季度產生約 25 萬美元的一次性費用，並預計明年第一季將季度現金股息減少至每股 0.10 美元。

These actions will enable investments in new systems and technologies, including an AI enabled marketing app and a member interface business suite, as well as new marketing initiatives designed to drive growth and engagement.

這些舉措將為投資新系統和技術提供可能，包括人工智慧行銷應用程式和會員介面業務套件，以及旨在推動成長和提高參與度的新行銷計劃。

By aligning costs with global sales performance, we are positioning the company for sustainable growth, profitability, and long-term value creation.

透過將成本與全球銷售業績掛鉤，我們正在為公司的可持續成長、獲利能力和長期價值創造奠定基礎。

In mid-September, we hosted a four-day cruise to Kagoshima, Japan, recognizing our top performing and up and coming members and qualifiers with immersive training and team-building experiences designed to strengthen collaboration and performance.

9 月中旬，我們組織了一次為期四天的日本鹿兒島遊輪之旅，旨在表彰我們表現最佳和有潛力的成員及資格獲得者，透過沉浸式培訓和團隊建設體驗來加強協作和績效。

Our greater China market remains focused on continuous training and leadership development to deepen product expertise and reinforce the strong foundation needed for sustained business growth.

我們大中華區市場將繼續專注於持續的培訓和領導力發展，以加深產品專業知識，並鞏固業務持續成長所需的堅實基礎。

In Hong Kong, we pre-launched a new Korean formulated moisturizing skincare series called Suvia in September. The four-step line features a cleanser, toner, probiotic-infused booster serum, and cream designed to support skin barrier repair and deliver lasting hydration.

9 月，我們在香港預售了一款名為 Suvia 的全新韓國配方保濕護膚系列。這四步驟護膚系列包括潔面乳、爽膚水、益生菌精華液和乳霜，旨在幫助修復皮膚屏障並提供持久保濕。

Our markets and product team are working to roll out these new products to the global markets in the near future. To honor 10 successful years in Sweden, we also hosted a celebratory in-person event in September, unveiling.

我們的市場和產品團隊正在努力，爭取在不久的將來將這些新產品推向全球市場。為了慶祝在瑞典取得 10 年的成功，我們也在 9 月舉辦了一場線下慶祝活動，並揭幕了新品牌。

Beline, a limited-edition anti-aging cream formulated to hydrate, restore, and diminish the signs of aging. Next year marks 25 years of our company's journey. A legacy built on meaningful relationships, shared wellness traditions, and providing opportunity to all to achieve their health and wellness goals.

Beline，限量版抗老乳霜，配方旨在保濕、修復和減少老化跡象。明年是我們公司成立25週年。建立在有意義的人際關係、共同的健康傳統以及為所有人提供實現其健康目標的機會之上的傳承。

We are thoughtfully preparing a year-long celebration designed to deepen member engagement, strengthen our brand, and create new opportunities for growth.

我們正在精心籌備為期一年的慶祝活動，旨在加深會員參與度，加強品牌建設，並創造新的成長機會。

We're excited about this opportunity to showcase our 25 year history, while setting the groundwork for our future. Together we will honor our past, celebrate our present, and embrace the promise of the future.

我們很高興有機會展示我們 25 年的歷史，同時為我們的未來奠定基礎。我們將共同緬懷過去，慶祝現在，擁抱未來。

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

接下來，我想把電話交給我們的財務長史考特·戴維森，讓他更詳細地討論一下我們的財務表現。

Scott?

史考特？

Thank you, Chris.

謝謝你，克里斯。

Net sales in the third quarter were 9.5 million, a decline of 11% compared to 10.7 million in the third quarter a year ago. Our sales in Hong Kong, which made up 82% of our sales during the quarter, declined 8% over a year ago, or 4%, excluding the impact of the product promotion and the pre-sale of our new skincare line at the end of September that Chris mentioned.

第三季淨銷售額為 950 萬美元，比去年同期的 1,070 萬美元下降了 11%。本季度，我們在香港的銷售額佔總銷售額的 82%，年減 8%；若不計入 Chris 提到的 9 月底產品促銷和新護膚品系列預售的影響，則同比下降 4%。

Gross profit margin was 73.7% for the third quarter, compared with 74.1% last year, due to the write-off of components inventory related to discontinued products. Commissions expense as a percent of total sales for the third quarter was 40.9%, compared with 40.5% a year ago.

由於與停產產品相關的零件庫存被註銷，第三季毛利率為 73.7%，而去年同期為 74.1%。第三季佣金支出佔總銷售額的 40.9%，去年同期為 40.5%。

Commissions expense as a percent of net sales increased primarily due to higher weekly commissions earned by our members during the 3rd quarter of this year. Selling general and administrative expenses declined 262,000 to 3.6 million for the quarter from 3.9 million in the third quarter a year ago.

佣金支出佔淨銷售額的百分比增加，主要是由於我們會員在今年第三季獲得的每週佣金較高。本季銷售一般及行政費用減少 26.2 萬，至 360 萬，去年同期為 390 萬。

As a result, operating loss for the quarter was 495,000 compared to 275,000 in the third quarter last year, partially due to, as I mentioned previously, the timing of product promotions.

因此，本季營業虧損為 495,000，而去年第三季為 275,000，部分原因是，正如我之前提到的，產品促銷的時間安排。

And new product pre-sales in Hong Kong during the quarter, as well as the write-off of components inventory related to discontinued products during the 3rd quarter.

第三季香港新產品預售情況，以及與停產產品相關的零件庫存註銷情況。

Net loss for the third quarter was 431,000 or $0.04 per diluted share compared to net income of 35,000 or breakeven per diluted share in the third quarter of 2024. Despite the loss before income taxes in the third quarter this year, tax expense of 1,142,000 was recognized during the quarter due to the fluctuation in our annual effective tax rate quarter over quarter.

第三季淨虧損為 431,000 美元，即每股攤薄虧損 0.04 美元，而 2024 年第三季淨利為 35,000 美元，即每股攤薄盈虧平衡。儘管今年第三季稅前虧損，但由於年度實際稅率環比波動，本季確認了 1,142,000 的稅項支出。

I'll now turn to our cash flows and balance sheet. Net cash used in operating activities was 5 million during the first nine months of 2025. Compared to 3.5 million during the comparable period a year ago.

接下來我將介紹我們的現金流量表和資產負債表。2025年前九個月，經營活動所用現金淨額為500萬。相較於去年同期的350萬。

Excluding our required annual tax instalment payments related to the 2017 US Tax cuts and Jobs Act, cash provided by operating activities was 16,000 in the first nine months of 2025. Compared to 514,000 during the same period a year ago.

除 2017 年美國減稅與就業法案相關的年度應繳稅款外，2025 年前九個月經營活動產生的現金為 16,000 美元。而去年同期為 514,000 人。

Total cash equivalent to marketable securities worth 32 million on September 30. Down from 43.9 million at December 31, 2024.

截至9月30日，現金等價物總額（以有價證券計）為3,200萬美元。截至 2024 年 12 月 31 日，這一數字將降至 4,390 萬。

In regard to our quarterly dividend, I am pleased to announce that on November 3rd, our board of directors declared another cash dividend of $0.20 per share, which will be payable on November 28 to stockholders of record as of November 18.

關於我們的季度股息，我很高興地宣布，11 月 3 日，我們的董事會宣布派發每股 0.20 美元的現金股息，將於 11 月 28 日支付給 11 月 18 日登記在冊的股東。

In closing, we continue to navigate near term challenges in our largest market, and our priority in the coming quarters is to execute the restructuring plan outlined by Chris.

最後，我們將繼續應對我們最大市場中的近期挑戰，未來幾季的首要任務是執行克里斯概述的重組計劃。

By realizing the estimated $1.5 million in annualized savings by mid-2026. We will free resources to drive top-line growth, invest in new systems and technologies, and implement global programs and incentives that support our members' success.

預計到 2026 年年中，每年可節省約 150 萬美元。我們將釋放資源以推動營收成長，投資新的系統和技術，並實施支持我們成員成功的全球計畫和激勵措施。

These necessary actions positioned the company for sustainable growth, long-term profitability, and continued value creation for both shareholders and customers.

這些必要的舉措使公司能夠實現永續成長、長期獲利，並為股東和客戶持續創造價值。

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

我們的發言稿到此結束。現在我將把通話轉回給接線生。

Ladies and gentlemen, thank you for your participation.

女士們、先生們，感謝各位的參與。

This does conclude today's teleconference. Please disconnect your lines at this time and have a wonderful day.

今天的電話會議到此結束。請暫時斷開您的線路，祝您有美好的一天。