▌ News Releases

Ever-Glory Reports First Quarter 2021 Financial Resultsnew

Add: 2021   Update: 2021/05/14

 

Ever-Glory Reports First Quarter 2021 Financial Results

NANJING, China, May 14, 2021 /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 first quarter ended March 31, 2021.

Mr. Yihua Kang, Chairman, President and Chief Executive Officer of Ever-Glory, said, “During the first 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 first quarter of 2021, 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 50-100 stores during 2021, we operated a nationwide network of 921 stores as of March 31, 2021.”

“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.” concluded Mr. Kang.

Mr. Jason Jiansong Wang, Chief Financial Officer of Ever-Glory, added, “The first quarter results, are coupled with our ability to increase operating leverage. Going forward, we remain confident 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.”

First Quarter 2021 Financial Results

Total sales for the first quarter of 2021 were $70.8 million,  a increase of 21.4% from $58.4 million in the first quarter of 2020. This increase was primarily driven by a 4.2% increase in our wholesale business and a 32.0% increase in retail business.

Sales for the Company’s branded fashion apparel retail division increased by 32.0% to $47.6 million for the first quarter of 2021, compared with $36.1 million for the first quarter of 2020. This increase was primarily due to the increase in same-store sales. The Company had 921 retail stores as of March 31, 2021, compared with 1,038 retail stores as of March 31, 2020.

Sales for the Company’s wholesale division increased by 4.2% to $23.2 million for the first quarter of 2021, compared with $22.3 million for the first quarter of 2020. 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.

Total gross profit for the first quarter of 2021 increased by 39.9% to $22.4 million, compared with $16 million for the first quarter of 2020. Total gross margin for the first quarter of 2021 increased to 31.7% from 27.5% for the first quarter of 2020.

Gross profit for the retail business increased by 42.5% to $17.9 million for the first quarter of 2021, compared with $12.5 million for the first quarter of 2020. Gross margin for the first quarter of 2021 was 37.6% compared to 34.8% for the first quarter of 2020.

Gross profit for the wholesale business increased by 30.5% to $4.6 million for the first quarter of 2021, compared with $3.5 million for the first quarter of 2020. Gross margin for the first quarter of 2021 increased to 19.6% from 15.7% for the first quarter of 2020.

Selling expenses for the first quarter of 2021 increased by 15.4% to $15.5 million, or 22.0% of total sales, compared with $13.5 million, or 23.1% of total sales for the first quarter of 2020. The increase was attributable to the increased sales.

General and administrative expenses for the first quarter of 2021 increased by 35.7% to $7.9 million, or 11.1% of total sales, compared with $5.8 million, or 9.9% of total sales for the first quarter of 2020. The increase was mainly attributable to the decreased business trip and the exemption of social benefits by the PRC government in 2020.

Loss from operations was $1.0 million for the first quarter of 2021,compared to $3.2 million for the first quarter of 2020.

Net loss attributable to the Company for the first quarter of 2021 was $1.2 million compared with $2.7 million for first quarter of 2020. Basic and diluted loss  per share were $0.08 for the first quarter of 2021 compared with $0.18 for the first quarter of 2020.

Balance Sheet

As of March 31, 2021, Ever-Glory had approximately $78.1 million of cash and cash equivalents, compared with approximately $81.9 million as of December 31, 2020. Ever-Glory had working capital of approximately $43.7 million as of March 31, 2021, and outstanding bank loans of approximately $71.5 million as of March 31, 2021.

 

Conference Call

The Company will hold a conference call at 8:00 a.m. Eastern Time on May 14, 2021(8:00 p.m. Beijing Time on May 14, 2021). Listeners can access the conference call by dialing +1-888-394-8218 or + 1-647-484-0475 and using the access code 7935539. 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 11:00 a.m. Eastern Time on May 14 through 11:59 p.m. Eastern Time on May 21 by calling +1-844-512-2921 or +1-412-317-6671 with pin number 7935539.

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.

For investor and media inquiries, please contact:

Ever-Glory International Group

Dandan Song

Tel: +86-25-5209-6817

E-Mail: sdd@ever-glory.com.cn

 

  

 

 


 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)

 

 

 

 

March 31,
2021

 

 

December 31,
2020

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

78,056

 

 

$

81,865

 

Restricted cash

 

 

45,660

 

 

 

39,858

 

Trading securities

 

 

3,036

 

 

 

1,792

 

Accounts receivable, net

 

 

46,719

 

 

 

53,285

 

Inventories

 

 

43,342

 

 

 

53,893

 

Advances on inventory purchases

 

 

7,802

 

 

 

10,261

 

Value added tax receivable

 

 

1,183

 

 

 

1,244

 

Other receivables and prepaid expenses

 

 

5,956

 

 

 

5,479

 

Amounts due from related parties

 

 

674

 

 

 

567

 

Total Current Assets

 

 

232,428

 

 

 

248,244

 

 

 

 

 

 

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

 

 

 

 

Equity security investment

 

 

3,877

 

 

 

3,932

 

Intangible assets, net

 

 

4,712

 

 

 

4,794

 

Property and equipment, net

 

 

31,881

 

 

 

32,164

 

Operating lease right-of-use assets

 

 

55,839

 

 

 

41,690

 

Deferred tax assets

 

 

879

 

 

 

902

 

Total Non-Current Assets

 

 

97,188

 

 

 

83,482

 

TOTAL ASSETS

 

$

329,616

 

 

$

331,726

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

Bank loans

 

$

71,534

 

 

$

65,919

 

Accounts payable

 

 

52,083

 

 

 

67,762

 

Accounts payable and other payables – related parties

 

 

2,829

 

 

 

3,764

 

Other payables and accrued liabilities

 

 

13,522

 

 

 

16,073

 

Value added and other taxes payable

 

 

684

 

 

 

909

 

Income tax payable

 

 

704

 

 

 

1,062

 

Current operating lease liabilities

 

 

47,327

 

 

 

33,481

 

Total Current Liabilities

 

 

188,683

 

 

 

188,970

 

 

 

 

 

 

 

 

 

 

NON-CURRENT LIABILITIES

 

 

 

 

 

 

 

 

Non-current operating lease liabilities

 

 

8,622

 

 

 

8,307

 

TOTAL LIABILITIES

 

 

197,305

 

 

 

197,277

 

 

 

 

 

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES (Note 9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock ($0.001 par value, authorized 50,000,000 shares, 14,810,660 and 14,809,160 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively)

 

 

15

 

 

 

15

 

Additional paid-in capital

 

 

3,655

 

 

 

3,650

 

Retained earnings

 

 

108,001

 

 

 

109,171

 

Statutory reserve

 

 

20,376

 

 

 

20,376

 

Accumulated other comprehensive income

 

 

3,238

 

 

 

4,590

 

Amounts due from related party

 

 

(2,974

)

 

 

(3,353

)

Total equity

 

 

132,311

 

 

 

134,449

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

329,616

 

 

$

331,726

 

 

EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES CONDENSED

CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (Unaudited)
(In thousands of U.S. Dollars, except share and per share data or otherwise stated)

 

 

 

Three Months Ended

 

 

 

March 31,
2021

 

 

March 31,
2020

 

 

 

 

 

 

 

 

SALES

 

$

70,814

 

 

$

58,355

 

 

 

 

 

 

 

 

 

 

COST OF SALES

 

 

48,379

 

 

 

42,317

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

 

22,435

 

 

 

16,038

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

Selling expenses

 

 

15,548

 

 

 

13,478

 

General and administrative expenses

 

 

7,851

 

 

 

5,785

 

Total operating expenses

 

 

23,399

 

 

 

19,263

 

 

 

 

   

 

 

 

   

 

LOSS FROM OPERATIONS

 

 

(964

)

 

 

(3,225

)

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

 

 

Interest income

 

 

224

 

 

 

277

 

Interest expense

 

 

(492

)

 

 

(341

)

Government subsidy

 

 

259

 

 

 

460

 

Other income (expense), net

 

 

532

 

 

 

358

 

Total other income (expense), net

 

 

523

 

 

 

754

 

 

 

 

 

 

 

 

 

 

LOSS BEFORE INCOME TAX

 

 

(441

)

 

 

(2,471

)

 

 

 

 

 

 

 

 

 

INCOME TAX EXPENSE

 

 

(729

)

 

 

(227

)

 

 

 

 

 

 

 

 

 

NET LOSS

 

 

(1,170

)

 

 

(2,698

)

Net income attributable to the non-controlling interest

 

 

-

 

 

 

(3

)

NET LOSS ATTRIBUTABLE TO THE COMPANY

 

$

(1,170

)

 

$

(2,701

)

 

 

 

 

 

 

 

 

 

NET LOSS

 

$

(1,170

)

 

$

(2,698

)

Foreign currency translation loss

 

 

(1,352

)

 

 

(1,437

)

COMPREHENSIVE LOSS

 

$

(2,522

)

 

$

(4,135

)

 

 

 

 

 

 

 

 

 

Comprehensive loss attributable to the non-controlling interest

 

 

-

 

 

 

6

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE LOSS ATTRIBUTABLE TO THE COMPANY

 

$

(2,522

)

 

$

(4,129

)

LOSS PER SHARE:

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.08

)

 

$

(0.18

)

Weighted average number of shares outstanding Basic and diluted

 

 

14,810,001

 

 

 

14,804,832

 

 

EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

FOR THE THREE MONTHS ENDED March 31, 2021 AND 2020 (Unaudited)

(In thousands of U.S. Dollars, except share and per share data or otherwise stated)

 

 

 

 

 

 

Additional

 

 

Retained Earnings

 

 

Accumulated
other

 

 

Amounts
due from

 

 

Total
equity
attributable
to
stockholders

 

 

Non-

 

 

 

 

 

 

Common Stock

 

 

paid-in

 

 

 

 

 

Statutory

 

 

Comprehensive

 

 

related

 

 

of the

 

 

controlling

 

 

Total

 

 

 

Shares

 

 

Amount

 

 

capital

 

 

Unrestricted

 

 

reserve

 

 

Income (loss)

 

 

party

 

 

Company

 

 

Interest

 

 

equity

 

Balance at January 1, 2021

 

 

14,809,160

 

 

$

15

 

 

$

3,650

 

 

$

109,171

 

 

$

20,376

 

 

$

4,590

 

 

$

(3,353

)

 

$

134,449

 

 

$

-

 

 

$

134,449

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

1,500

 

 

 

-

 

 

 

5

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

5

 

 

 

-

 

 

 

5

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,170

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,170

)

 

 

-

 

 

 

(1,170

)

Net cash received from related party under counter guarantee agreement

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

379

 

 

 

379

 

 

 

-

 

 

 

379

 

Foreign currency translation loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,352

)

 

 

-

 

 

 

(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

 

 

 

-

 

 

$

132,311

 

 

 

 

 

 

 

 

Additional

 

 

Retained Earnings

 

 

Accumulated
other

 

 

Amounts
due from

 

 

Total
equity
attributable
to
stockholders

 

 

Non-

 

 

 

 

 

 

Common Stock

 

 

paid-in

 

 

 

 

 

Statutory

 

 

Comprehensive

 

 

related

 

 

of the

 

 

controlling

 

 

Total

 

 

 

Shares

 

 

Amount

 

 

capital

 

 

Unrestricted

 

 

reserve

 

 

Income (loss)

 

 

party

 

 

Company

 

 

Interest

 

 

equity

 

Balance at January 1, 2020

 

 

14,801,770

 

 

$

15

 

 

$

3,640

 

 

$

106,328

 

 

$

19,939

 

 

$

(4,330

)

 

$

(4,932

)

 

$

120,660

 

 

 

(1,510

)

 

$

119,150

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

3,062

 

 

 

-

 

 

 

5

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

5

 

 

 

-

 

 

 

5

 

Net income (loss)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,701

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,701

)

 

 

3

 

 

 

(2,698

)

Net cash received from related party under counter guarantee agreement

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

785

 

 

 

785

 

 

 

-

 

 

 

785

 

Foreign currency translation income (loss)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,440

)

 

 

-

 

 

 

(1,440

)

 

 

3

 

 

 

(1,437

)

Balance at March 31, 2020

 

 

14,804,832

 

 

$

15

 

 

$

3,645

 

 

$

103,627

 

 

$

19,939

 

 

$

(5,770

)

 

$

(4,147

)

 

$

117,309

 

 

 

(1,504

)

 

$

115,805

 

 

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)

 

 

 

Three Months Ended

 

 

 

March 31,
2021

 

 

March 31,
2020

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

Net loss

 

$

(1,170

)

 

$

(2,698

)

Adjustments to reconcile net loss to cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

1,377

 

 

 

1,587

 

Gain on disposal of intangible assets

 

 

-

 

 

 

(268

)

Loss from sale of property and equipment

 

 

102

 

 

 

102

 

(Recovering from) Provision of bad debt allowance

 

 

(196

)

 

 

278

 

Provision for obsolete inventories

 

 

3,583

 

 

 

4,204

 

Changes in fair value of trading securities

 

 

(262

)

 

 

-

 

Changes in fair value of investment

 

 

28

 

 

 

-

 

Deferred income tax

 

 

17

 

 

 

104

 

Stock-based compensation

 

 

5

 

 

 

5

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Accounts receivable

 

 

6,509

 

 

 

34,906

 

Inventories

 

 

6,805

 

 

 

10,303

 

Value added tax receivable

 

 

52

 

 

 

210

 

Other receivables and prepaid expenses

 

 

(367

)

 

 

364

 

Advances on inventory purchases

 

 

2,544

 

 

 

2,855

 

Amounts due from related parties

 

 

(71

)

 

 

142

 

Accounts payable

 

 

(14,690

)

 

 

(19,864

)

Accounts payable and other payables- related parties

 

 

(769

)

 

 

(1,038

)

Other payables and accrued liabilities

 

 

(3,221

)

 

 

(5,587

)

Value added and other taxes payable

 

 

(220

)

 

 

(31

)

Income tax payable

 

 

(358

)

 

 

(1,019

)

Net cash (used in) provided by operating activities

 

 

(302

)

 

 

24,555

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(1,378

)

 

 

(78

)

Disposal of intangible assets

 

 

-

 

 

 

353

 

Purchases of trading securities

 

 

(1,238

)

 

 

-

 

Proceeds from trading securities

 

 

255

 

 

 

-

 

Net cash (used in) provided by investing activities

 

 

(2,361

)

 

 

275

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Proceeds from bank loans

 

 

12,336

 

 

 

11,464

 

Repayment of bank loans

 

 

(6,168

)

 

 

(14,884

)

Net collection (advance) of amounts due from related party (equity)

 

 

148

 

 

 

748

 

Net cash provided by (used in) financing activities

 

 

6,316

 

 

 

(2,672

)

 

 

 

 

 

 

 

 

 

EFFECT OF EXCHANGE RATE CHANGES ON CASH

 

 

(1,659

)

 

 

1,497

 

 

 

 

 

 

 

 

 

 

NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

 

 

1,993

 

 

 

23,655

 

 

 

 

 

 

 

 

 

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD

 

 

121,723

 

 

 

48,551

 

 

 

 

 

 

 

 

 

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD

 

$

123,716

 

 

$

72,206

 

 

 

 

 

 

 

 

 

 

Reconciliation of cash, cash equivalents and restricted cash reported within their consolidated balance sheets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents

 

 

78,056

 

 

 

70,036

 

Restricted cash

 

 

45,660

 

 

 

2,170

 

 

 

$

123,716

 

 

$

72,206

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

 

 

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

 

 

 

Interest

 

$

492

 

 

$

341

 

Income taxes

 

$

729

 

 

$

1,218

 

 

版权所有:江苏华瑞服装有限公司
苏ICP备17030860号