EX-99.1 2 ea024234501ex99-1_star.htm STAR FASHION CULTURE HOLDINGS LIMITED ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED DECEMBER 31, 2024

Exhibit 99.1

 

Star Fashion Culture Holdings Limited Announces First Half 2024 Unaudited Financial Results

 

XIAMEN, May 16, 2025 — Star Fashion Culture Holdings Limited (“STFS” or the “Company”) (NASDAQ: STFS), a content marketing solutions services provider with principal operations and geographic markets in the People’s Republic of China (“PRC”), today announced its unaudited financial results for the six months ended December 31, 2024.

 

Overview:

 

  ● Revenue increased by approximately RMB13.5 million, or 25.2%, from approximately RMB53.4 million for the six months ended December 31, 2023, to approximately RMB66.9 million (US$9.2 million) for the six months ended December 31, 2024.
     
  ● Net income decreased by RMB10.6 million, or 134.4%, from RMB7.9million for the six months ended December 31, 2023 to net loss of RMB2.7 million (US$0.4 million) for the six months ended December 31, 2024.

 

Six Month Financial Results Ended December 31, 2024

 

Revenue. Revenue increased by approximately RMB13.5 million, or 25.2%, from approximately RMB53.4 million for the six months ended December 31, 2023, to approximately RMB66.9 million (US$9.2 million) for the six months ended December 31, 2024, primarily attributable to (i) Revenues from our marketing campaign planning and execution services increased by RMB10.5 million, or 34.6%, from RMB30.2 million for the six months ended December 31, 2023 to RMB40.7 million (US$5.6 million) for the six months ended December 31, 2024, which due to improved market demand for our core campaign management capabilities. (ii) Revenues from our offline advertising services decreased by 62.3%, from RMB3.0 million for the six months ended December 31, 2023 to RMB1.1 million (US$0.2 million) for the six months ended December 31, 2024, which was primary due to the rapid expansion of online media has impacted offline business operations and caused a decline in revenue‌. (iii) Revenues from our online precision marketing services grew by RMB4.9 million, or 24.1%, from RMB20.2 million for the six months ended December 31, 2023 to RMB25.1 million (US$3.4 million) for the six months ended December 31, 2024. This growth was primarily driven by the explosive expansion of online media platforms, which has redirected client advertising budgets toward precision marketing channels.

 

Cost of Revenues. Cost of revenues increased by RMB20.6 million, or 49.6%, from RMB41.5 million for the six months ended December 31, 2023 to RMB62.1 million (US$8.5 million) for the six months ended December 31, 2024 primarily attributable to (i) Our cost of revenues for marketing campaign planning and execution increased by approximately RMB16.8 million, or 77.9%, from RMB21.6 million for the six months ended December 31, 2023 to RMB38.4 million (US$5.3 million) for the six months ended December 31, 2024. This surge was primarily attributed to competition among industry players following the growth of online media platforms, which drove up costs in tandem with revenue expansion.(ii) Our cost of revenues for offline advertising decreased by approximately RMB1.4 million, or 57.8%, from RMB2.4 million for the six months ended December 31, 2023 to RMB1.0 million (US$0.1 million) for the six months ended December 31, 2024 which was in line with the increase in offline advertising revenues. (iii) Our cost of revenues for online precision marketing increased by approximately RMB5.2 million, or 29.6%, from RMB17.5 million for the six months ended December 31, 2023 to RMB22.7 million (US$3.1 million) for the six months ended December 31, 2024. The increase was in line with the increase in revenues from online precision marketing.

 

 

 

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 

Gross Profit

 

Our gross profit decreased by RMB7.1 million, or 60.0%, from RMB11.9 million for the six months ended December 31, 2023 to RMB4.8 million (US$0.65 million) for the six months ended December 31, 2024. The overall gross profit margin declined from 22.2% to 7.1% during the same period primarily attributable to (i)Ⅰ.Gross profit margin of our marketing campaign planning and execution decreased from 28.6% for the six months ended December 31, 2023 to 5.6% for the six months ended December 31, 2024. The decrease was mainly attributable to the varied profit margin of different types of events, and the profit margin held during the six months ended December 31, 2023 is slightly decreased. (ii) Gross profit margin of our offline advertising decreased from 18.1% for the six months ended December 31, 2023 to 8.4% for the six months ended December 31, 2024, which was primary due to the rapid expansion of online media has impacted offline business operations and caused a decline in profit margins‌.(iii) Gross profit margin of our precision marketing decreased from 13.4% for the six months ended December 31, 2023 to 9.5% for the six months ended December 31, 2024, which was primary due to we ceded part profits for obtaining more customers to open the precision marketing market and build our reputation in quality and service.

 

Operating Expenses. Operating expenses increased from RMB1.4 million for the six months ended December 31, 2023 to RMB7.8 million (US$1.1 million) for the six months ended December 31, 2024, representing a growth of 460.1%. This decrease was primarily attributable to the slightly decreases in selling and marketing expense, significantly decreased in general and administrative expenses.

 

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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 

   For the six months ended December 31, 
   2023   2024   Variance 
   RMB   %   RMB   US$   %   % 
   Unaudited 
Operating expenses                        
Selling and marketing expenses   819,292    59.1    4,819,971    660,333    62.0    488.3 
General and administrative expenses   566,515    40.9    2,942,026    403,056    38.0    419.3 
Operating expenses   1,385,807    100.0    7,761,997    1,063,389    100.0    460.1 

 

Selling, general and administrative expenses. Selling and marketing expenses increased by RMB4.0 million (488.3%) from RMB0.8 million for the six months ended December 31, 2023 to RMB4.8 million (US$0.7 million) for the six months ended December 31, 2024. The expenditure driven by the company’s strategic push for business expansion, with advertising and promotion expenses increase to RMB4.0 million as it aggressively scaled up marketing campaigns to capture markets.

 

General and administrative expenses. General and administrative expenses increased by RMB2.4 million (419.3%) from RMB0.6 million for the six months ended December 31, 2023 to RMB2.9 million (US$0.4 million) for the six months ended December 31, 2024, which was primarily attributable to (i) For the six months ended December 31, 2024, the bad debt expense decreased by RMB344,330, as there were no write-offs or additional provisions required for the bad debt expenses recognized in the corresponding period ended December 31, 2023. (ii) A strategic increase of RMB1.9 million (3,350.6%) in professional fees to RMB2.0 million, representing relating to IPO preparation and regulatory compliance.

 

Other non-operating (expense)/income, net. Other non-operating (expense)/income, net consists of other income, net and financial expenses, net.

 

Other income, net decreased by RMB114.4 thousand (99.6%) from RMB114.9 thousand for the six months ended December 31, 2023 to RMB513.0 for the six months ended December 31, 2024, which was primarily attributable to a decrease in VAT plus deduction.

 

Financial expenses, net increased by 374.3% from RMB-109.9 thousand for the six months ended December 31, 2023 to RMB301.3 thousand for the six months ended December 31, 2024, which was primarily attributable to the crease of our interest paid for our short-term borrowings from banks.

 

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Income taxes expenses. Income tax expenses were RMB2.6 million for the six months ended December 31, 2023, with no tax provision in 2024 due to the operating loss position.

 

Net income. As a result of the foregoing, our net income decreased by RMB10.6 million, or 134.4%, from RMB7.9million for the six months ended December 31, 2023 to net loss of RMB2.7 million (US$0.37 million) for the six months ended December 31, 2024.

 

Basic and diluted EPS. Basic and diluted EPS were approximately loss RMB0.27 (US$0.04) per ordinary share for the six months ended December 31, 2024, as compared to RMB0.79 per ordinary share for the six months ended December 31, 2023, respectively.

 

About Star Fashion Culture Holdings Limited

 

The Company is a content marketing solutions services provider with a mission to offer high-quality diversified services. We offer services focusing on (i) marketing campaign planning and execution; (ii) offline advertising services; and (iii) online precision marketing services. We assist customers in enhancing the effectiveness of their marketing activities and the value of their brand and products through our variety of services offered. The Group first began operations in August 11, 2015 through its operating subsidiary, Xiamen Star Fashion Culture Media Co., Ltd.

 

Exchange Rate Information

 

This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.2993 to US$1.00, the exchange rate on December 31, 2024 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into RMB or HK$, as the case may be, at any particular rate or at all.

 

Safe Harbor Statement

 

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC, which are available for review at www.sec.gov.

 

China:

 

Star Fashion Culture Holdings Limited

Ms. Zhang Pingting

Tel: +86 13063138565

E-mail: Hira@xmxing-ji.com

 

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STAR FASHION CULTURE HOLDINGS LIMITED

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

   As of 
   June 30,
2024		  

Unaudited

December 31,
2024		  

Unaudited

December 31,
2024

 
   RMB   RMB   US$ 
ASSETS            
Current assets               
Cash   1,252,793    48,186,205    6,601,483 
Accounts receivable, net   41,469,595    37,974,396    5,202,471 
Advance to suppliers, net   8,086,631    16,875,124    2,311,883 
Prepaid expenses and other current assets   167,290    1,577,247    216,082 
Amounts due from related parties   24,300    -    - 
Deferred offering cost   7,663,172    -    - 
Total current assets   58,663,781    104,612,972    14,331,919 
                
Non-current assets               
Deferred tax assets, net   1,217,929    1,131,846    155,062 
Total non-current assets   1,217,929    1,131,846    155,062 
                
TOTAL ASSETS   59,881,710    105,744,818    14,486,981 
                
LIABILITIES AND SHAREHOLDERS’ (DEFICIT)/EQUITY               
Current liabilities               
Short-term borrowings   4,700,000    4,550,000    623,347 
Accounts payable   18,153,400    21,969,998    3,009,877 
Contract liabilities   2,115,522    5,549,006    760,211 
Income tax payable   7,642,696    8,348,492    1,143,739 
Accrued expenses and other current liabilities   4,839,631    2,057,933    281,936 
Amounts due to related parties   -    538,570    73,784 
Total current liabilities   37,451,249    43,013,999    5,892,894 
                
                
TOTAL LIABILITIES   37,451,249    43,013,999    5,892,894 
                
Shareholders’ equity               
Class A ordinary shares (par value of US$0.00001 per share; 4,980,000,000 Class A ordinary shares authorized, 10,850,000 Class A ordinary shares issued and outstanding as of June 30, 2024 and December 31, 2024, respectively)   631    792    109 
Class B ordinary shares (par value of US$0.00001 per share; 20,000,000 Class B ordinary shares authorized, 1,300,000 Class B ordinary shares issued and outstanding as of June 30, 2024 and December 31, 2024, respectively)   94    94    13 
Subscription receivable   (725)   (886)   (122)
Additional paid-in capital   31,500,000    74,507,668    10,207,509 
Accumulated deficit   (9,069,539)   (11,776,849)   (1,613,422)
Total shareholders’ equity   22,430,461    62,730,819    8,594,087 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   59,881,710    105,744,818    14,486,981 

 

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STAR FASHION CULTURE HOLDINGS LIMITED

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 

   For the six months ended,
December 31		 
   2023   2024   2024 
   RMB   RMB   US$ 
Revenues   53,411,829    66,897,085    9,164,863 
Cost of revenues   (41,537,824)   (62,144,246)   (8,513,727)
Gross profit   11,874,005    4,752,839    651,136 
                
Operating expenses        　    　 
Selling and marketing expenses   (819,292)   (4,819,971)   (660,333)
General and administrative expenses   (566,515)   (2,942,026)   (403,056)
Total operating expenses   (1,385,807)   (7,761,997)   (1,063,389)
         　    　 
Income from operations   10,488,198    (3,009,158)   (412,253)
         　    　 
Other (expense) income, net               
Financial expenses, net   (109,873)   301,335    41,283 
Other income, net   114,932    513    70 
Total other (expenses) income, net   5,059    301,848    41,353 
                
Income (loss) before income taxes   10,493,257    (2,707,310)   (370,900)
Income tax expenses   (2,629,094)   -    - 
Net profit  (loss)   7,864,163    (2,707,310)   (370,900)
                
Total comprehensive income   7,864,163    (2,707,310)   (370,900)
                
Net profit per share - Basic and diluted   0.79    (0.25)   (0.03)
                
Weighted average shares outstanding used in calculating basic and diluted loss per share   10,000,000    10,899,728    10,899,728 

 

 

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