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HWH International reports growth in travel joint venture

Published 12/18/2024, 09:24 AM
HWH
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BETHESDA, MD - HWH International Inc. (NASDAQ:HWH), a lifestyle company with a current market capitalization of $13.57 million, has announced significant progress in its joint venture, Hapi Travel, which has seen revenues exceeding $18 million in the first three quarters of 2024. According to InvestingPro data, the company has achieved a notable revenue growth of 44.55% over the last twelve months. The joint venture, established in April 2024, is a collaboration with industry veterans Mr. Chen Ziping and Mr. Heng Fai Chan, HWH's Executive Chairman.

Hapi Travel Group, along with its partners, has formed HapiTravel Holding Pte. Ltd., a Wholly Owned Foreign Enterprise in Singapore, to oversee its operations in China. The venture focuses on educational tours for schools, conference tour packages, and a B2B hotel booking system. While expansion continues, InvestingPro analysis indicates the company currently operates with a moderate debt level and maintains a WEAK overall financial health score. It has also expanded its educational tour business to Hong Kong and is planning to set up subsidiaries in Singapore and Malaysia to leverage the increasing travel demand in the ASEAN region.

Mr. Heng Fai Chan expressed enthusiasm about the venture's role in fostering growth between China and other global destinations, aligning with HWH's mission to promote health, wealth, and happiness.

HWH International, through its various divisions including Hapi Marketplace, Hapi Cafe, and Hapi Wealth Builder, aims to create new pathways for people in their pursuit of a balanced lifestyle.

The information in this article is based on a press release statement and includes forward-looking statements that involve risks and uncertainties, as detailed in the company's SEC filings. Investors should note that InvestingPro has identified several risk factors, including significant price volatility and a negative EBITDA of -$1.59 million in the last twelve months. For comprehensive risk analysis and additional insights, subscribers can access 10 more exclusive ProTips on the platform. These statements are not guarantees of future performance, and actual results may differ materially. The company does not undertake any obligation to update forward-looking statements after the date they were made, except as required by law.

In other recent news, HWH International has been making strategic moves to bolster its financial standing. The wholesale pharmaceutical company sold 4,411,764 shares of common stock to its majority shareholder, Alset Inc., in an effort to support its growth and development initiatives. This transaction increased Alset's ownership in HWH International from 86.6% to 88.8%.

Additionally, HWH International has converted $3,801,759 in debt into equity, issuing 6,034,537 new shares to Alset International Limited and Alset Inc. This action is expected to reduce the company's debt load.

However, HWH International is facing challenges with Nasdaq's listing requirements. The company has received a notice from the Nasdaq Hearings Panel, granting them additional time to meet the exchange's listing requirements after failing to meet the minimum market value of publicly held shares and minimum market value of listed securities. The company is actively working to fulfill its compliance plan to maintain its listing status.

Despite these efforts, HWH International is facing potential delisting from the Nasdaq Global Market due to failing to meet the minimum market value and bid price requirements. The company has been given a 180-day grace period to regain compliance but has not managed to do so within this timeframe. Nevertheless, HWH International plans to appeal these decisions. These are the latest developments in HWH International's ongoing efforts to satisfy regulatory standards and continue its operations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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