Natural Health Trends Corp. (NASDAQ: NHTC), which markets premium quality personal care, wellness and “quality of life” products under the NHT Global brand, recently announced its financial results for the first quarter ended March 31, 2019.
Total revenue of $19.3 million decreased 63 percent compared to $52.4 million in the first quarter of 2018 primarily due to a decline in Greater China revenue. The number of Active Members decreased 11 percent to 87,340 at March 31, 2019, compared to 97,840 at December 31, 2018, and decreased 8 percent compared to 95,040 at March 31, 2018.
“As we previously disclosed, in response to the Chinese government’s announcement of its 100-day campaign in January, as was the case with many peer companies, we voluntarily suspended our member activities,” said Chris Sharng, president of Natural Health Trends Corp. “The suspension covered more than 90 percent of the number of days in the first quarter, which also included the Chinese New Year holidays. We have made it our priority to fully cooperate with the government and to proactively ensure we continue to conduct our business in compliance with all applicable laws in China. While our financial performance was adversely impacted by this initiative during the quarter, we strongly support the actions taken by the Chinese government to root out bad products and deceptive practices in order to protect Chinese consumers.”
Mr. Sharng further commented, “While the 100-day campaign expired in late April, there has been no official conclusion to end the program. We have great confidence in our ability to navigate the business through uncertain times and to renew growth once the macroclimate improves. While we are cautious as it relates to our overall performance for the remainder of 2019 given the uncertain trade and regulatory environment, we were pleased with the outcome of our successful major event in Hong Kong at the end of March and ongoing support of our market leaders. We were also thrilled to have launched NHT Global in India and remain encouraged by the continued growth we have been experiencing in Latin America, led by Peru.”
On April 29, 2019, the company received a letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC stating that the company has regained compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of all required periodic reports with the Securities and Exchange Commission. The letter was sent to confirm the company’s compliance with the rule following the April 26, 2019 filing of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.
To read the complete NHT Global Q1 2019 financial report, click here.