Thu, 30 Nov 2023

SEOUL, REPUBLIC OF SOUTH KOREA / ACCESSWIRE / November 20, 2023 / Hanryu Holdings, Inc. (NASDAQ:HRYU) (the 'Company' or 'Hanryu'), a media-tech company and creator of FANTOO, an all-in-one social media experience connecting k-culture fans globally, today reported its financial results for the third quarter and first nine months ended September 30, 2023. All amounts are expressed in U.S. dollars and are prepared under U.S. Generally Accepted Accounting Principles (GAAP), unless indicated otherwise.

'We were proud to successfully complete Hanryu's Initial Public Offering 'IPO' during the third quarter, which enabled us to execute upon our strategic priorities to grow our leading K-culture fandom media platform,' said Chief Executive Officer of Hanryu Holdings, Kang Chang Hyuk. 'In a short period of time, we have already announced numerous exciting product innovations, strategic partnerships and marketing initiatives that are aimed at driving revenue generation and brand reach. In particular, Hanryu has partnered with several leaders in the Artificial Intelligent ('AI') space, to ensure FANTOO provides our users with the most in-demand and cutting-edge AI enhancements, such as for our AI Assistant, DeokGom, and Lusia, a 3-D, AI-generated digital singer in the FANTOO app. Hanryu has grown significantly from both an operational and financial perspective for the 2023 year to date, and we anticipate this trend to continue for the remainder of 2023 and into 2024.'

'Hanryu is focused on releasing additional product innovations to our existing platforms, in particular to our popular app, FANTOO which has released version 2.0, including significant user interface and chat functionality upgrades. In addition, we are continuing to partner with leading brands to further drive our revenue generation opportunities through additional revenue streams,' Kang Chang Hyuk added.

Recent Operational Highlights

  • Launched personalized AI Assistant, DeokGom, on FANTOO, will interact with users, provide customized services and various Hanryu info to users.
  • Partnered with SALTLUX, to incorporate AI-powered technology into FANTOO.
  • Announced a strategic partnership with AISUL, a company specializing in AI and the developer of the first digital female singer 'Lusia' in Korea, to create and integrate a three-dimensional, AI generated, digital human into FANTOO.
  • Announced promotional partnership with leading Korean cosmetic company, Nature Republic drive revenue and brand reach through mutual promotion, planning, advertising and sales activities via FANTOO.
  • Announced collaboration with NON Corp. to sell its leading Dr. Clo branded products with the assistance of FANTOO digital characters on the application.
  • Announced a strategic partnership agreement with Ameridge Corp., owner of the popular women's clothing line, Papaya, to distribute its FANTOO-branded merchandise throughout at least 45 Papaya stores in the United States.
  • Launched version 2.0 of FANTOO, which included enhanced user experience and interface, as well as releasing an upgrade to add significantly enhanced chat functionality.
  • Launched FANTOO House, a professional studio rental service for a diverse range of creative activities to foster K-culture creativity, content creation and generate revenue through rental fees.
  • Partnered with the Asia Model Festival for engagement events, including the 'I love Hanryu' event, as well as exclusive marketing and voting through the FANTOO application, to grow brand reach and expand user base to fandom of Asia Model.
  • Announced it will host a real-life adaptation of Squid Play (Ojingeo Nori) on its FANTOO application, with a prize pool of up to USD$1 million.
  • Selected MZ Generation users with strong passion for K-Culture as 'Global Supporters', enhancing FANTOO's user personalization.
  • Successfully closed the Company's $8.8 million IPO.

Third Quarter and First Nine Month 2023 Financial Highlights

Revenue for the three months and first nine months ended September 30, 2023 totaled $713,763 and $1,347,975 million respectively. The increase in year-over-year quarterly revenue of 49% for the first nine months is primarily attributable due to advertising and content sales through FANTOO and FNS.

Cost of revenue for the three months and first nine months ended September 30, 2023 totaled $441,842 and $832,915. The increase in cost of revenue is primarily due to the increase in revenue year-over-year. Gross profit for the three months and first nine months ended September 30, 2023 totaled $271,921 and $515,060 respectively, yielding a gross profit margin of 38.2% for Q3 and 38.1% for the first nine months.

Net loss for the three months and first nine months ended September 30, 2023 totaled $3.1 million and $9.2 million respectively.

Cash and cash equivalents as of September 30, 2023 was $11.7 million.

As of September 30, 2023 there were 52,808,589 common shares outstanding.

About Hanryu Holdings

Hanryu Holdings, Inc., is the creator of the engaging and innovative social media platform, 'FANTOO'. FANTOO connects users around the world that share similar interests by providing distinctive service offerings, technologies, applications, and websites. Through FANTOO, we provide a global multi-media platform for our users to interact with other like-minded users, to share their appreciation of various types of entertainment and cultures, create their own content, enjoy other users' content, engage in commerce, and experience a 'fandom' community we believe is unlike any other. For more information please visit www.hanryuholdings.com.

Follow us on: Twitter, LinkedIn and Facebook

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future events or future performance and include, without limitation, statements concerning the Company's business strategy, future revenues, market growth, capital requirements, product introductions, expansion plans and the adequacy of its funding, the proposed offering, and the plan to list on the The Nasdaq Capital Market. Other statements contained in this press release that are not historical facts are forward-looking statements. The Company has tried, wherever possible, to identify forward-looking statements by terminology such as 'may,' 'will,' 'could,' 'should,' 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates' and other comparable terminology.

The Company cautions you that any forward-looking statements presented in this press release are based on the beliefs of, assumptions made by, and information currently available to us. Such statements are based on assumptions, and the actual outcome will be affected by known and unknown risks, trends, uncertainties, and factors that are beyond the Company's control or ability to predict. Although the Company believes that its assumptions are reasonable, it is not guaranteeing of future performance, and some will inevitably prove to be incorrect. As a result, the Company's actual future results can be expected to differ from its expectations, and those differences may be material. Accordingly, you should use caution in relying on forward-looking statements, which are based only on known results and trends at the time they are made, to anticipate future results or trends. Certain risks are discussed from time to time in the Company's filings with the SEC.

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, the Company is not obligated to publicly release any revisions to these forward-looking statements to reflect the events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Company Contact:
Hanryu Holdings, Inc.
SunYoung Jang
jsy@fns.ai
contact@hanryuholdings.com

Investor Contact:
KCSA Strategic Communications
Valter Pinto, Managing Director
PH: (212) 896-1254
Hanryu@KCSA.com

Condensed Consolidated Balance Sheets
September 30, 2023 and December 31, 2022
(Unaudited)

The accompanying footnotes are an integral part of these unaudited consolidated financial statements

Condensed Consolidated Statements of Operations
For the Three and Nine Months Ended September 30, 2023 and 2022
(Unaudited)

The accompanying footnotes are an integral part of these unaudited consolidated financial statements

Condensed Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2023 and 2022
(Unaudited)

The accompanying footnotes are an integral part of these unaudited consolidated financial statements

SOURCE: Hanryu Holdings Inc.



View source version on accesswire.com:
https://www.accesswire.com/806839/hanryu-holdings-reports-third-quarter-and-first-nine-month-2023-financial-results

More Birmingham News

Access More

Sign up for Birmingham News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!