Sales from the e-commerce channel increased by $0.02 million, or 100%, to $0.02 million for the first half of 2021 from $0 million for the same period of the prior year.Ĭost of revenues consists primarily of raw materials, labor and factory overhead expenses necessary to manufacture finished goods. Domestic sales decreased by $0.10 million, or 48.20%, to $0.12 million for the first half of 2021 from $0.22 million for the same period of the prior year. Overseas sales decreased by $0.06 million, or 100.00%, to $0 million for the first half of 2021 from $0.06 million for the same period of the prior year. As a result, we were unable to fulfil customer orders in a timely manner, we received reduced sales orders from our customers and our sales volume decreased for the six months ended Jas compared to the same period of 2020, as discussed in detail below: The COVID-19 outbreak further spread caused disruption in our supply chain, transportation and our sales activities. The decrease of revenue for the six months ended Jwas mainly due to the following facts: (1) decrease in sales orders due to our uncompetitive sales price which became less attractive to our customers (2) suspension of our overseas E-commerce business due to the estimated gross loss (3) The negative impact from suspension of our production and operations in November 2019 due to our default on loan repayments to financial institutions, claims from our suppliers and creditors and labor arbitration derived from our reduction in the number of employees. For the first half of 2021, total revenues decreased by $0.15 million, or 52.46%, to $0.13 million from $0.28 million as compared with the same period of the prior year. These factors led to the continuous decrease in our revenue for the six months ended Jas compared to the same period of 2020. The COVID-19 outbreak further disrupted our business activities.
Due to the sharp rise in market price of raw materials, the lack of operational efficiency of our production facilities and our inability to make bank loan repayments upon maturity, we suspended our production and normal business operations and we were involved in certain legal proceedings since November 2019. Revenue consists of the invoiced value for the sales, net of value-added tax ("VAT"), business tax, and applicable local government levies. Historically, the Company generated its revenues from product sales, mainly including sales for pet chews, dried pet snacks and wet canned pet foods in overseas markets, domestic markets and through its e-commerce platform.
The increase in operating loss was mainly due to decreased revenue and increased general and administrative expenses because of higher consulting service fees incurred during six months ended June 30, 2021.
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