NHTC

• Supply Chain Strategic Realignment • The company is actively transitioning its existing U.S.-based supply chain to trusted manufacturing partners in Asia, located closer to its main end markets • Key strategic goals of the transition include reducing exposure to unpredictable import tariffs, streamlining logistics via vendor and transportation lane consolidation, and lowering overall logistics costs • The transition will also improve access to specialized R&D resources and technical support, while maintaining the company's strict quality control standards

• Global Marketing and Customer Engagement Initiatives • The company continues to roll out targeted engagement, promotion, and incentive programs to boost member/customer engagement, enhance loyalty, and support sales performance • Q2 2025 included incentive trips for top market performers to the Maldives and Paris, plus a full slate of in-person regional and local events such as product training seminars, leadership development programs, and customer acquisition/retention initiatives

• New Market Expansion • The company officially launched its newest market, Columbia, earlier this month; the grand opening event had strong attendance and demonstrated high growth enthusiasm across the South American region • The company expects its existing product portfolio to support consumer health goals while also offering local individuals income-generating opportunities

• Financial and Operational Discipline • Against ongoing near-term economic headwinds, the company maintains strict operational discipline focused on active expense management, margin protection, and inventory control

No explicit forward-looking financial guidance for future periods, including revenue, margin, or earnings targets, and no upward/downward revisions of prior guidance were provided in the prepared remarks of this earning call. Management only stated general confidence that successful execution of its current strategic initiatives will position the company for long-term progress and shareholder value creation, and noted long-term company fundamentals remain strong despite ongoing near-term pressures.

The company reports one aggregated geographic sales segment breakdown for the quarter. Hong Kong, the company's largest market, generated revenue of $8.036 million (82% of total Q2 2025 net sales), representing a 5% year-over-year decline from 2024 Q2 Hong Kong revenue. Total company net sales for Q2 2025 were $9.8 million, a 6% year-over-year decrease from $10.5 million in Q2 2024. No additional product-specific segment performance data was provided in the transcript.

• Heightened broad economic uncertainty and ongoing evolving global trade tensions have negatively impacted consumer sentiment in the company's largest market (Hong Kong), and have directly contributed to the year-over-year decline in Q2 2025 net sales
• Unpredictable tariff policy changes expose the company's existing U.S.-based supply chain to unexpected cost increases, creating pressure on margins and operational stability
• Persistent near-term economic headwinds continue to weigh on sales performance and require ongoing cost-cutting and operational adjustments to maintain resilience

No questions were asked by meeting participants during this call. After management completed its prepared remarks, the conference operator concluded the call immediately.