NANJING, China, Nov. 14,
2022 /PRNewswire/ -- Ever-Glory International
Group, Inc. (the "Company" or "Ever-Glory") (NASDAQ: EVK), a
retailer of branded fashion apparel and a leading global apparel
supply chain solution provider, reported its financial results
today for the third quarter ended September 30, 2022.
Mr. Yihua Kang, Chairman,
President and Chief Executive Officer of Ever-Glory, said, "During
the third quarter, we maintained our focus on developing the retail
business through our multi-brand strategy and store network
optimization initiative, while improving our wholesale business by
upgrading customer portfolio and enhancing our account
receivables."
"During the third quarter of 2022, our retail brands continue to
attract new customers and retain existing customers by focusing on
design, quality and value," Mr. Kang continued. "Following the
remodeling or relocation of 29 stores during 2022, we operated a
nationwide network of 774 stores as of September 30, 2022."
"Looking at our wholesale business, we maintained focus on
upgrading customer portfolio to reduce credit risk and improve
margin in light of weak micro-environment and enhancing our account
receivables. Going forward, we'll implement a stricter client
evaluation system and remain diligent in our account receivables
collection. We believe the enduring strength of our wholesale
business will support its long-term profitability," Mr. Kang
concluded.
Mr. Jason Jiansong Wang, Chief
Financial Officer of Ever-Glory, added, "The third quarter
results are coupled with our ability to increase operating
leverage. Going forward, we remain confidence in the long-term
prospects of our business and we will continue implementing our
margin enhancement and cost control measures to further strengthen
the profitability of our business."
Third Quarter 2022 Financial
Results
Total sales for the third quarter of 2022 were
$106.4 million, an increase of
12.7% from $94.4 million in the third
quarter of 2021. This increase was primarily driven by a 33.0%
increase in our wholesale business, partially offset by a
26.4% decrease in retail business.
Sales for the Company's wholesale division increased
by 33.0% to $82.7 million for the
third quarter of 2022, compared with $62.2 million for the
third quarter of 2021. This increase was primarily
attributable to increased sales in Mainland China, Hong Kong, the United Kingdom, and other European markets
partially offset for decreased sales in Japan and the United
States.
Sales for the Company's branded fashion apparel retail
division decreased by 26.4% to $23.7
million for the third quarter of 2022, compared with
$32.2 million for the third quarter
of 2021. This decrease was primarily due to a decrease in
same-store sales. The Company operated 774 retail stores
as of September 30, 2022, compared
with 893 retail stores as of September
30, 2021,.
Total gross profit for the third quarter of
2022 decreased by 30.9% to $16.0
million, compared with $23.2
million for the third quarter of 2021. Total gross
margin for the third quarter of 2022 decreased to 15.1%
from 24.6% for the third quarter of 2021.
Gross profit for the wholesale business increased by
2.4% to $10.5 million for the
third quarter of 2022, compared with $10.2 million for the third quarter of 2021.
Gross margin for the third quarter of 2022 decreased to
12.6% from 16.4% for the third quarter of 2021.
Gross profit for the retail business decreased by
57.0% to $6.0 million for the
third quarter of 2022, compared with $13.0 million for the third quarter of 2021.
Gross margin for the third quarter of 2022 was 23.6% compared
to 40.3% for the third quarter of 2021.
Selling expenses for the third quarter of
2022 decreased by 11.4% to $12.8 million, or 12.0% of total sales,
compared with $14.4 million, or
15.3% of total sales for the third quarter of 2020. The
decrease was attributable to the decreased average salaries and
decreased business trips.
General and administrative expenses for the
third quarter of 2022 decreased by 1.7% to
$9.3 million, or 8.7% of total
sales, compared with $9.5 million, or 10.0% of total sales for
the third quarter of 2021. The decrease was attributable
to the decreased publicity expense and the depreciation of RMB.
Loss from operations was $6.1 million for the third quarter of 2022,
compared to $0.7 million for the
third quarter of 2021.
Balance Sheet
As of September 30, 2022,
Ever-Glory had approximately $32.2
million of cash and cash equivalents, compared with
approximately $56.6 million as
of December 31, 2021. Ever-Glory had
working capital of approximately $41.6
million as of September 30,
2022, and outstanding bank loans of approximately
$63.4 million as of September
30, 2022.
Conference Call
The Company will hold a conference call at 6:00 a.m. Eastern Time on November 14, 2022(7:00
p.m. Beijing Time on November 14,
2022). Listeners can access the conference call by dialing
+1-877-704-4453 or +1-201-389-0920 and using the access code
13734457. The conference call will also be webcast live over the
Internet and can be accessed at the Company's website at
http://www.everglorygroup.com.
A replay of the call will be available from 9:00 a.m. Eastern Time on November
14 through 11:59 p.m. Eastern
Time on November 21 by calling +1-844-512-2921 or
+1-412-317-6671 with pin number 13734457.
About Ever-Glory International Group, Inc.
Based in Nanjing, China, Ever-Glory International Group, Inc. is
a retailer of branded fashion apparel and a leading global apparel
supply chain solution provider. Ever-Glory is the first Chinese
apparel Company listed on the American Stock Exchange (now named as
NYSE MKT) in July 2008 and then
transferred to The NASDAQ Global Market on December 31, 2015. Ever-Glory offers apparel to
woman in China under its own
brands "La go go", "Velwin" and "idole". Ever-Glory is also a
leading global apparel supply chain solution provider with a focus
on middle-to-high end casual wear, outerwear, and sportswear
brands. Ever-Glory services a number of well-known brands and
retail stores by providing a complete set of supply chain
management services, including: fabric development and design,
sampling, sourcing, quality control, manufacturing, logistics,
customs clearance and distribution.
Forward-Looking Statements
Certain statements in this release and other written or oral
statements made by or on behalf of Ever-Glory International Group,
Inc. (the "Company") are "forward looking statements" within the
meaning of the federal securities laws. Statements regarding future
events and developments and the Company's future performance, as
well as management's expectations, beliefs, plans, estimates or
projections relating to the future, are forward-looking statements
within the meaning of these laws. The forward looking statements
are subject to a number of risks and uncertainties including,
without limitation, market acceptance of the Company's products and
offerings, development and expansion of the Company's wholesale and
retail operations, the Company's continued access to capital,
currency exchange rate fluctuation and other risks and
uncertainties. The actual results the Company achieves (including,
without limitation, the results stemming from the future
implementation of the Company's strategies and the revenue, net
income and new retail store projections set forth herein) may
differ materially from those contemplated by any forward-looking
statements due to such risks and uncertainties (many of which are
beyond the Company's control). These statements are based on
management's current expectations and speak only as of the date of
such statements. Readers should carefully review the risks and
uncertainties described in the Company's latest Annual Report on
Form 10-K and other documents that the Company files from time to
time with the U.S. Securities and Exchange Commission. The Company
undertakes no obligation to publicly update any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by applicable law.
|
EVER-GLORY
INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited)
|
|
(In thousands of
U.S. Dollars, except share and per share data or otherwise
stated)
|
|
|
|
September 30,
2022
|
|
|
December 31,
2021
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
$
|
32,177
|
|
|
$
|
56,573
|
|
|
Restricted cash
|
|
|
39,706
|
|
|
|
40,768
|
|
|
Trading
securities
|
|
|
2,189
|
|
|
|
3,251
|
|
|
Accounts
receivable, net
|
|
|
79,875
|
|
|
|
69,859
|
|
|
Inventories
|
|
|
49,038
|
|
|
|
63,841
|
|
|
Advances
on inventory purchases
|
|
|
4,260
|
|
|
|
8,179
|
|
|
Value
added tax receivable
|
|
|
2,144
|
|
|
|
1,693
|
|
|
Other
receivables and prepaid expenses
|
|
|
6,049
|
|
|
|
6,345
|
|
|
Amounts
due from related parties
|
|
|
-
|
|
|
|
220
|
|
|
Total Current Assets
|
|
|
215,438
|
|
|
|
250,729
|
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
Equity
security investment
|
|
|
4,566
|
|
|
|
5,682
|
|
|
Intangible assets, net
|
|
|
4,211
|
|
|
|
4,794
|
|
|
Property
and equipment, net
|
|
|
31,148
|
|
|
|
36,340
|
|
|
Operating
lease right-of-use assets
|
|
|
38,905
|
|
|
|
50,077
|
|
|
Deferred
tax assets
|
|
|
768
|
|
|
|
899
|
|
|
Other
non-current assets
|
|
|
3,520
|
|
|
|
784
|
|
|
Total Non-Current Assets
|
|
|
83,118
|
|
|
|
98,576
|
|
|
TOTAL ASSETS
|
|
$
|
298,556
|
|
|
$
|
349,305
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
Bank
loans
|
|
$
|
63,360
|
|
|
$
|
68,992
|
|
|
Accounts
payable
|
|
|
59,894
|
|
|
|
67,930
|
|
|
Accounts
payable and other payables – related parties
|
|
|
2,907
|
|
|
|
1,332
|
|
|
Other
payables and accrued liabilities
|
|
|
14,166
|
|
|
|
18,531
|
|
|
Value
added and other taxes payable
|
|
|
842
|
|
|
|
999
|
|
|
Income
tax payable
|
|
|
1,107
|
|
|
|
334
|
|
|
Current
operating lease liabilities
|
|
|
31,538
|
|
|
|
41,633
|
|
|
Total Current Liabilities
|
|
|
173,814
|
|
|
|
199,751
|
|
|
|
|
|
Non-current operating
lease liabilities
|
|
|
7,538
|
|
|
|
8,596
|
|
|
TOTAL LIABILITIES
|
|
|
181,352
|
|
|
|
208,347
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES (Note
9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Common
stock ($0.001 par value, authorized 50,000,000 shares,
14,818,006
and 14,655,926 issued and outstanding as of
September 30, 2022,
respectively, 14,812,312 and 14,664,978 issued
and outstanding as of
December 31, 2021, respectively)
|
|
|
15
|
|
|
|
15
|
|
|
Additional paid-in capital
|
|
|
3,670
|
|
|
|
3,660
|
|
|
Retained
earnings
|
|
|
99,398
|
|
|
|
108,210
|
|
|
Statutory
reserve
|
|
|
21,245
|
|
|
|
21,245
|
|
|
Treasury
stock (at cost,162,080 and 147,334 shares at September 30, 2022
and December 31, 2021,
respectively)
|
|
|
(400)
|
|
|
|
(363)
|
|
|
Accumulated other comprehensive (loss) income
|
|
|
(6,724)
|
|
|
|
8,191
|
|
|
|
|
|
|
|
|
|
|
|
Total
Equity
|
|
|
117,204
|
|
|
|
140,958
|
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
298,556
|
|
|
$
|
349,305
|
|
|
EVER-GLORY
INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
|
|
(Unaudited)
|
|
|
(In thousands of
U.S. Dollars, except share and per share data or otherwise
stated)
|
|
|
|
|
|
Three months
ended
|
|
|
Nine months
ended
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
NET SALES
|
|
$
|
106,437
|
|
|
$
|
94,406
|
|
|
$
|
235,022
|
|
|
$
|
225,776
|
|
|
COST OF SALES
|
|
|
90,390
|
|
|
|
71,196
|
|
|
|
181,194
|
|
|
|
161,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
|
16,047
|
|
|
|
23,210
|
|
|
|
53,828
|
|
|
|
64,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
12,792
|
|
|
|
14,443
|
|
|
|
38,153
|
|
|
|
44,495
|
|
|
General
and administrative expenses
|
|
|
9,306
|
|
|
|
9,467
|
|
|
|
21,821
|
|
|
|
24,980
|
|
|
Total Operating Expenses
|
|
|
22,098
|
|
|
|
23,910
|
|
|
|
59,974
|
|
|
|
69,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS
|
|
|
(6,051)
|
|
|
|
(700)
|
|
|
|
(6,146)
|
|
|
|
(5,437)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER (EXPENSES)
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
22
|
|
|
|
176
|
|
|
|
299
|
|
|
|
928
|
|
|
Interest
expense
|
|
|
(524)
|
|
|
|
(1,218)
|
|
|
|
(1,458)
|
|
|
|
(1,909)
|
|
|
Government subsidy
|
|
|
192
|
|
|
|
340
|
|
|
|
397
|
|
|
|
842
|
|
|
(Loss)
gain from changes in fair values of investments
|
|
|
(915)
|
|
|
|
(123)
|
|
|
|
(1,587)
|
|
|
|
2,151
|
|
|
Other
income
|
|
|
317
|
|
|
|
253
|
|
|
|
885
|
|
|
|
1,027
|
|
|
Total Other
(Expenses) Income, Net
|
|
|
(908)
|
|
|
|
(572)
|
|
|
|
(1,464)
|
|
|
|
3,039
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME
TAX EXPENSE
|
|
|
(6,959)
|
|
|
|
(1,272)
|
|
|
|
(7,610)
|
|
|
|
(2,398)
|
|
|
|
|
Income tax benefit
(expense)
|
|
|
835
|
|
|
|
(1,945)
|
|
|
|
(1,203)
|
|
|
|
(3,759)
|
|
|
|
|
NET
LOSS
|
|
$
|
(6,124)
|
|
|
$
|
(3,217)
|
|
|
$
|
(8,813)
|
|
|
$
|
(6,157)
|
|
|
|
|
Foreign
currency translation (loss) gain
|
|
|
(6,336)
|
|
|
|
(1,061)
|
|
|
|
(14,915)
|
|
|
|
1,020
|
|
|
|
|
COMPREHENSIVE
LOSS
|
|
$
|
(12,460)
|
|
|
|
(4,278)
|
|
|
$
|
(23,728)
|
|
|
$
|
(5,137)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.41)
|
|
|
$
|
(0.22)
|
|
|
$
|
(0.59)
|
|
|
$
|
(0.42)
|
|
|
Weighted
average number of shares outstanding,
basic and diluted
|
|
|
14,817,053
|
|
|
|
14,811,073
|
|
|
|
14,815,077
|
|
|
|
14,810,585
|
|
|
EVER-GLORY INTERNATIONAL GROUP, INC. AND
SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(Unaudited)
|
|
(In thousands of U.S. Dollars, except share and per
share data or otherwise stated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock
|
|
Additional
|
|
|
|
Retained Earnings
|
|
Accumulated
|
|
Amounts
|
|
|
|
other
|
due from
|
|
|
Shares
|
|
Amount
|
|
paid-in
|
|
Treasury
|
|
Unrestricted
|
|
Statutory
|
|
comprehensive
|
|
related
|
|
Total equity
|
|
capital
|
stock
|
reserve
|
income (loss)
|
party
|
|
Balance at
January 1, 2022
|
|
14,812,312
|
|
$
|
15
|
|
$
|
3,660
|
|
$
|
(363)
|
|
$
|
108,210
|
|
$
|
21,245
|
|
$
|
8,191
|
|
$
|
-
|
|
$
|
140,958
|
|
Stock issued
for compensation
|
|
2,042
|
|
|
-
|
|
|
5
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
5
|
|
Net loss
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(5,089)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(5,089)
|
|
Repurchase of
14,746 shares of
common stock
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(37)
|
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(37)
|
|
Foreign currency
translation loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(836)
|
|
|
|
|
|
(836)
|
|
Balance at
March 31, 2022
|
|
14,814,354
|
|
$
|
15
|
|
$
|
3,665
|
|
$
|
(400)
|
|
$
|
103,121
|
|
$
|
21,245
|
|
$
|
7,355
|
|
$
|
-
|
|
$
|
135,001
|
|
Net income
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2,400
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2,400
|
|
Foreign currency
translation loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,743)
|
|
|
|
|
|
(7,743)
|
|
Balance at
June 30, 2022
|
|
14,814,354
|
|
$
|
15
|
|
$
|
3,665
|
|
$
|
(400)
|
|
$
|
105,521
|
|
$
|
21,245
|
|
$
|
(388)
|
|
|
-
|
|
$
|
129,658
|
|
Stock issued
for compensation
|
|
3,652
|
|
|
-
|
|
|
5
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
5
|
|
Net loss
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(6,123)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(6,123)
|
|
Foreign currency
translation loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6,336)
|
|
|
|
|
|
(6,336)
|
|
Balance at
September 30, 2022
|
|
14,818,006
|
|
$
|
15
|
|
$
|
3,670
|
|
$
|
(400)
|
|
$
|
99,398
|
|
$
|
21,245
|
|
$
|
(6,724)
|
|
$
|
-
|
|
$
|
117,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock
|
|
Additional
|
|
|
|
Retained Earnings
|
|
Accumulated
|
|
Amounts
|
|
|
|
other
|
due from
|
|
|
Shares
|
|
Amount
|
|
paid-in
|
|
Treasury
|
|
Unrestricted
|
|
Statutory
|
|
comprehensive
|
|
related
|
|
Total equity
|
|
capital
|
stock
|
reserve
|
income
|
party
|
|
Balance at
January 1, 2021
|
|
14,809,160
|
|
$
|
15
|
|
$
|
3,650
|
|
$
|
-
|
|
$
|
109,171
|
|
$
|
20,376
|
|
$
|
4,590
|
|
$
|
(3,353)
|
|
$
|
134,449
|
|
Stock issued
for compensation
|
|
1,500
|
|
|
-
|
|
|
5
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
5
|
|
Net loss
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1,170)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1,170)
|
|
Net cash received
from related
party under
counter guarantee agreement
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
379
|
|
|
379
|
|
Foreign currency
translation adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,352)
|
|
|
|
|
|
(1,352)
|
|
Balance at
March 31, 2021
|
|
14,810,660
|
|
$
|
15
|
|
$
|
3,655
|
|
$
|
-
|
|
$
|
108,001
|
|
$
|
20,376
|
|
$
|
3,238
|
|
$
|
(2,974)
|
|
$
|
132,311
|
|
Net loss
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1,771)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1,771)
|
|
Transfer to
reserve
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Net cash
received from
related party under
counter guarantee
agreement
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
386
|
|
|
386
|
|
Foreign currency
translation adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,434
|
|
|
|
|
|
3,434
|
|
Balance at
June 30, 2021
|
|
14,810,660
|
|
$
|
15
|
|
$
|
3,655
|
|
$
|
-
|
|
$
|
106,230
|
|
$
|
20,376
|
|
$
|
6,672
|
|
$
|
(2,588)
|
|
$
|
134,360
|
|
Stock issued for
compensation
|
|
1,652
|
|
|
-
|
|
|
5
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
5
|
|
Net loss
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(3,217)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(3,217)
|
|
Net cash received
from related party under
counter guarantee agreement
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
313
|
|
|
313
|
|
Foreign currency
translation adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,062)
|
|
|
|
|
|
(1,062)
|
|
Balance at
September 30, 2021
|
|
14,812,312
|
|
$
|
15
|
|
$
|
3,660
|
|
$
|
-
|
|
$
|
103,013
|
|
$
|
20,376
|
|
$
|
5,610
|
|
$
|
(2,275)
|
|
$
|
130,399
|
|
EVER-GLORY
INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
|
|
(In thousands of
U.S. Dollars, except share and per share data or otherwise
stated)
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
2022
|
|
|
September 30,
2021
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(8,813)
|
|
|
|
(6,157)
|
|
|
Adjustments to
reconcile net loss to cash used in operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
5,256
|
|
|
|
4,384
|
|
|
Loss from
sale of property and equipment
|
|
|
141
|
|
|
|
590
|
|
|
Provision
of bad debt allowance
|
|
|
3,943
|
|
|
|
676
|
|
|
Provision
for obsolete inventories
|
|
|
5,296
|
|
|
|
842
|
|
|
Changes
in fair value of trading securities
|
|
|
1,010
|
|
|
|
(200)
|
|
|
Changes
in fair value of investments
|
|
|
577
|
|
|
|
(1,951)
|
|
|
Deferred
income tax
|
|
|
42
|
|
|
|
644
|
|
|
Stock-based compensation
|
|
|
10
|
|
|
|
10
|
|
|
Changes
in operating assets and liabilities
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(20,334)
|
|
|
|
(8,614)
|
|
|
Inventories
|
|
|
4,353
|
|
|
|
(13,949)
|
|
|
Value
added tax receivable
|
|
|
(671)
|
|
|
|
(1,235)
|
|
|
Other
receivables and prepaid expenses
|
|
|
(434)
|
|
|
|
(1,096)
|
|
|
Advances
on inventory purchases
|
|
|
3,317
|
|
|
|
586
|
|
|
Amounts
due from related parties
|
|
|
211
|
|
|
|
(1,514)
|
|
|
Accounts
payable
|
|
|
229
|
|
|
|
5,930
|
|
|
Accounts
payable and other payables- related parties
|
|
|
1,779
|
|
|
|
(3,204)
|
|
|
Other
payables and accrued liabilities
|
|
|
(5,124)
|
|
|
|
(3,332)
|
|
|
Value
added and other taxes payable
|
|
|
891
|
|
|
|
(360)
|
|
|
Income
tax payable
|
|
|
(81)
|
|
|
|
831
|
|
|
Net cash used in
operating activities
|
|
|
(8,402)
|
|
|
|
(27,119)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Purchases
of property and equipment and intangible asset
|
|
|
(3,645)
|
|
|
|
(5,109)
|
|
|
Net
proceeds from sale (purchase) of trading securities
|
|
|
52
|
|
|
|
(1,077)
|
|
|
Investment payment of other non-current assets
|
|
|
(3,028)
|
|
|
|
(773)
|
|
|
Net cash used in
investing activities
|
|
|
(6,621)
|
|
|
|
(6,959)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Proceeds
from bank loans
|
|
|
56,018
|
|
|
|
56,110
|
|
|
Repayment
of bank loans
|
|
|
(54,504)
|
|
|
|
(54,565)
|
|
|
Repurchase of common stock
|
|
|
(37)
|
|
|
|
-
|
|
|
Net
collection of amounts due from related party (equity)
|
|
|
-
|
|
|
|
1,630
|
|
|
Net cash provided by
financing activities
|
|
|
1,477
|
|
|
|
3,175
|
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH
|
|
|
(11,912)
|
|
|
|
693
|
|
|
|
|
|
|
|
|
|
|
|
NET DECREASE IN
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
|
|
(25,458)
|
|
|
|
(30,211)
|
|
|
|
|
|
|
|
|
|
|
|
CASH, CASH
EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF
PERIOD
|
|
|
97,341
|
|
|
|
121,723
|
|
|
|
|
|
|
|
|
|
|
|
CASH, CASH
EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD
|
|
$
|
71,883
|
|
|
$
|
91,512
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of cash,
cash equivalents and restricted cash reported within their
consolidated balance sheets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
|
32,177
|
|
|
|
48,336
|
|
|
Restricted
cash
|
|
|
39,706
|
|
|
|
43,176
|
|
|
|
$
|
71,883
|
|
|
$
|
91,512
|
|
|
SUPPLEMENTAL DISCLOSURE
OF CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
|
Cash
paid during the period for:
|
|
|
|
|
|
|
|
|
|
Interest
|
|
$
|
1,458
|
|
|
$
|
1,909
|
|
|
Income
taxes
|
|
$
|
1,175
|
|
|
$
|
2,272
|
|
|
SUPPLEMENTAL SCHEDULE OF NON-CASH ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Common
stock issued for compensation
|
|
$
|
10
|
|
|
$
|
10
|
|
View original
content:https://www.prnewswire.com/news-releases/ever-glory-reports-third-quarter-2022-financial-results-301676709.html
SOURCE EVER-GLORY INTERNATIONAL GROUP INC
