CMON said in an earnings report released on Friday that revenue increased from $9.6 million to $12.8 million for the first half of the year compared to the same period last year. The company attributed the increase to a growth in wholesale sales.
Gross profit also increased for the same period last year, primarily due to the increase in revenue. Gross profit margin decreased 2.2% due to the lower margins from wholesale sales versus Kickstarter.
Overall the company recorded a loss of $1.2 million for the first half of 2019 up from $80,000 in 2018. The company did not issue a dividend in either periods.
Expenses were in line with the increase revenues, but the company did record some addition administrative costs due to there application to move from their current listing on the GEM market to the main market. CMON is listed on the Hong Kong stock exchange.
The company hopes moving will help them secure better partnerships and investment.
The company saw the most growth in Asia, with a jump to $1.8 million versus $592,000 in the same period from 2018. CMON have announced in previous reports their intention to grow this market, but this report didn’t say if the growth was the result of those efforts.
South America also saw substantial growth, when comparing the period to 2018. Area revenue grew from $79,868 to $758,584. Other regions, including the US, Europe, and Oceania showed growth, but at a slower pace to Asia and South America.