Hartford Creative Group Reports Revenue Surge to $467,462 and Net Income of $127,269

Hartford Creative Group, Inc. (formerly Hartford Great Health Corp.) reported its financial results for the three months ending October 31, 2024, revealing a revenue of $467,462, a significant increase from zero revenue in the same period last year. This growth is attributed to the company's recent pivot to social media advertising services, which began in January 2024. The company recorded an operating income of $192,072, compared to an operating loss of $20,192 in the prior year, indicating a turnaround in profitability. The net income for the quarter was $127,269, a stark contrast to the net loss of $25,456 reported in the same quarter of 2023.

The financial performance reflects substantial changes compared to the previous fiscal period. Total operating costs and expenses surged to $275,390, primarily driven by increased selling, general, and administrative expenses, which rose to $165,568 from $20,192 a year earlier. The cost of revenue also increased to $109,822, reflecting the expenses associated with the newly launched advertising services. The company’s accumulated deficit decreased to $5,783,574 from $5,910,843, indicating an improvement in overall financial health.

Strategically, Hartford Creative Group has undergone significant organizational changes, including a rebranding and a shift in focus towards the media and marketing sector. The company has established new subsidiaries, such as Hangzhou Hartford WP Culture Media Ltd. and Shanghai DZ Culture Media Ltd., to enhance its advertising capabilities. Additionally, the acquisition of ShangXing HuoMao Network Technology Ltd. in June 2024 has further expanded its operational footprint in the advertising space. The company has also reported that it provided advertising placement services to 15 customers during the quarter, generating approximately $4.8 million in advanced payments.

Operationally, the company has seen a notable increase in customer engagement, with four customers accounting for 75% of total gross billing during the quarter. The company’s cash flow from operating activities improved significantly, providing $348,049 compared to cash used in operations of $20,113 in the same period last year. However, the company reported a working capital deficit of $3,482,524, which raises concerns about its ability to continue as a going concern without additional financing. The company plans to seek further funding through debt or equity to support its operations and growth initiatives.

Looking ahead, Hartford Creative Group aims to capitalize on the growing demand for social media advertising services, with expectations of increased revenue from its advertising operations. The company is also exploring opportunities in the mini-drama business to diversify its revenue streams. However, management has cautioned that the success of these initiatives is not guaranteed and will depend on market conditions and the company's ability to secure necessary funding. The company’s future capital expenditures are projected to exceed $2 million, and it is actively seeking financing options to support its business plan.