▌ News Releases

Ever-Glory Fourth Quarter 2021 Financial Resultsnew

Add: 2022   Update: 2022/04/14

 NANJING, China, April 13, 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 full year ended December 31, 2021.

Mr. Yihua Kang, Chairman, President and Chief Executive Officer of Ever-Glory, said, “During the full year of 2021, 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 full year 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 137 stores during 2021, we operated a nationwide network of 880 stores as of December 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, Mr. Kang concluded.

Mr. Jason Jiansong Wang, Chief Financial Officer of Ever-Glory, added, “The full year 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.”

Full year 2021 Financial Results 

Total sales for the full year of 2021 were $331.0 million, an increase of 23.8% from $267.4 million in the full year of 2020. This increase was primarily driven by a 57.8% increase in our wholesale business partially offset by a 2.7% decrease in retail business.

Sales for the Company’s branded fashion apparel retail division decreased by 2.7% to $146.1 million for the full year of 2021, compared with $150.1 million for the full year of 2020. This decrease was primarily due to a decrease in same store sales. The Company operated 880 retail stores as of December 31, 2021, compared with 936 retail stores as of December 31, 2020.

 

Sales for the Company’s wholesale division increased by 57.8% to $184.9 million for the full year of 2021, compared with $117.2 million for the full year of 2020. This increase was primarily attributable to increased sales in Mainland China, Hong Kong China, Europe-Other, Japan and United States. 

Total gross profit for the full year of 2021 increase by 10.7% to $101.0 million, compared with $91.2 million for tthe full year of 2020. Total gross margin for the full year of 2021 decreased to 30.5% from 34.1% for the full year of 2020.

Gross profit for the retail business increase by 3.6% to $63.7 million for the full year of 2021, compared with $61.5 million for the full year of 2020. Gross margin for the full year of 2021 was 43.6% compared to 40.9% for the full year of 2020.

Gross profit for the wholesale business increased by 25.4% to $37.3 million for the full year of 2021, compared with $29.7 million for the full year of 2020. Gross margin for the full year of 2021 decreased to 20.2% from 25.4% for the full year of 2020.

Selling expenses for the full year of 2021 increased by 12.8% to $63.1 million, or 19.1% of total sales, compared with $55.9 million, or 20.9% of total sales for the full year of 2020. The increase was attributable to the higher travelling expenses.

 

General and administrative expenses for the full year of 2021 increased by 23.2% to $38.4 million, or 11.6% of total sales, compared with $31.2 million, or 11.7% of total sales for the full year of 2020. The increase was attributable to the increased salaries.

 

(Loss) Income from operations was ($0.5 million) for the full year of 2021, compared to $4.1 million for the full year of 2020.

Net loss attributable to the Company for the full year of 2021 was ($0.09 million )compared with 3.3 million for the full year of 2020. Basic and diluted loss per share were ($0.01) for the full year of 2021 compared with $0.22 for the full year of 2020.

Balance Sheet 

As of December 31, 2021, Ever-Glory had approximately $56.6 million of cash and cash equivalents, compared with approximately $81.9 million as of December 31, 2020. Ever-Glory had working capital of approximately $51.0 million as of December 31, 2021, and outstanding bank loans of approximately $69.0 million as of December 31, 2021.

Conference Call

The Company will hold a conference call at 8:00 a.m. Eastern Time on April 13, 2022(8:00 p.m. Beijing Time on April 13, 2022). Listeners can access the conference call by dialing +1-800-239-9838 or +1-323-794-2551 and using the access code 1990321. 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 April 13 through 11:59 p.m. Eastern Time on April 20 by calling +1-844-512-2921 or +1-412-317-6671 with pin number 1990321.

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”, “idole” and  Jizhu”. 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

Huilin Hua

Tel: +86-25-52096859

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

  

 

 


 EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

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

AS OF DECEMBER 31, 2021 AND 2020

 

 

 

December 31,

2021

 

 

December 31,

2020

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

56,573

 

 

$

81,865

 

Restricted cash

 

 

40,768

 

 

 

39,858

 

Trading securities

 

 

3,251

 

 

 

1,792

 

Accounts receivable, net

 

 

69,859

 

 

 

53,285

 

Inventories

 

 

63,841

 

 

 

53,893

 

Advances on inventory purchases

 

 

8,179

 

 

 

10,261

 

Value added tax receivable

 

 

1,693

 

 

 

1,244

 

Other receivables and prepaid expenses

 

 

6,345

 

 

 

5,479

 

Amounts due from related parties

 

 

220

 

 

 

567

 

Total Current Assets

 

 

250,729

 

 

 

248,244

 

 

 

 

 

 

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

 

 

 

 

Equity security investment

 

 

5,682

 

 

 

3,932

 

Intangible assets, net

 

 

4,794

 

 

 

4,794

 

Property and equipment, net

 

 

36,340

 

 

 

32,164

 

Operating lease right-of-use assets

 

 

50,077

 

 

 

41,690

 

Deferred tax assets

 

 

899

 

 

 

902

 

Other non-current assets

 

 

784

 

 

 

-

 

Total Non-Current Assets

 

 

98,576

 

 

 

83,482

 

TOTAL ASSETS

 

$

349,305

 

 

$

331,726

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

Bank loans

 

$

68,992

 

 

$

65,919

 

Accounts payable

 

 

67,930

 

 

 

67,762

 

Accounts payable and other payables – related parties

 

 

1,332

 

 

 

3,764

 

Other payables and accrued liabilities

 

 

18,531

 

 

 

16,073

 

Value added and other taxes payable

 

 

999

 

 

 

909

 

Income tax payable

 

 

334

 

 

 

1,062

 

Current operating lease liabilities

 

 

41,633

 

 

 

33,481

 

Total Current Liabilities

 

 

199,751

 

 

 

188,970

 

 

 

 

 

 

 

 

 

 

NON-CURRENT LIABILITIES

 

 

 

 

 

 

 

 

Non-current operating lease liabilities

 

 

8,596

 

 

 

8,307

 

TOTAL LIABILITIES

 

 

208,347

 

 

 

197,277

 

 

 

 

 

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES (Note 9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Common stock ($0.001 par value, authorized 50,000,000 shares, 14,812,312 and 14,809,160 shares issued and outstanding as of December 30, 2021 and December 31, 2020, respectively)

 

 

15

 

 

 

15

 

Additional paid-in capital

 

 

3,660

 

 

 

3,650

 

Retained earnings

 

 

108,210

 

 

 

109,171

 

Statutory reserve

 

 

21,245

 

 

 

20,376

 

Treasury stock (as cost,147,334 shares at December 30, 2021)

 

 

(363

)

 

 

-

 

Accumulated other comprehensive income

 

 

8,191

 

 

 

4,590

 

Amounts due from related party

 

 

 

 

 

 

(3,353

)

Total equity

 

 

140,958

 

 

 

134,449

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

349,305

 

 

$

331,726

 

 

  

 

 

EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

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

FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

NET SALES

 

$

330,978

 

 

$

267,354

 

 

 

 

 

 

 

 

 

 

COST OF SALES

 

 

230,026

 

 

 

176,141

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

 

100,952

 

 

 

91,213

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

Selling expenses

 

 

63,074

 

 

 

55,894

 

General and administrative expenses

 

 

38,416

 

 

 

31,176

 

Total operating expenses

 

 

101,490

 

 

 

87,070

 

 

 

 

  

 

 

 

  

 

(LOSS) INCOME FROM OPERATIONS

 

 

(538

)

 

 

4,143

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

 

 

Interest income

 

 

976

 

 

 

1,014

 

Interest expense

 

 

(2,391

)

 

 

(2,345

)

Government subsidy

 

 

1,163

 

 

 

1,235

 

Gain (loss) from changes in fair values of investments

 

 

1,791

 

 

 

(135

)

Other income

 

 

1,852

 

 

 

1,830

 

Total Other Income, Net

 

 

3,391

 

 

 

1,599

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAX EXPENSE

 

 

2,853

 

 

 

5,742

 

 

 

 

 

 

 

 

 

 

INCOME TAX EXPENSE

 

 

(2,945

)

 

 

(2,469

)

 

 

 

 

 

 

 

 

 

(LOSS)NET  INCOME

 

 

(92

)

 

 

3,273

 

 

 

 

 

 

 

 

 

 

Net loss attributable to the non-controlling interest

 

 

-

 

 

 

7

 

NET INCOME ATTRIBUTABLE TO THE COMPANY

 

$

(92

)

 

$

3,280

 

 

 

 

 

 

 

 

 

 

(LOSS)NET INCOME

 

$

(92

)

 

$

3,273

 

Foreign currency translation gain

 

 

3,601

 

 

 

8,920

 

COMPREHENSIVE INCOME

 

$

3,509

 

 

$

12,193

 

 

 

 

 

 

 

 

 

 

Comprehensive  income attributable to the noncontrolling interest

 

 

-

 

 

 

7

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY

 

$

3,509

 

 

$

12,200

 

(LOSS)EARNINGS PER SHARE ATTRIBUTABLE TO THE COMPANY’S STOCKHOLDERS:

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.01

)

 

$

0.22

 

Weighted average number of shares outstanding Basic and diluted

 

 

14,811,020

 

 

 

14,806,778

 

 

 

EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY

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

FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

Retained Earnings

 

 

Accumulated

other

 

 

Amounts

due from

 

 

Total

equity

attributable

to stockholders

 

 

Non-

 

 

 

 

 

 

 

Common Stock

 

 

paid-in

 

 

 

 

Treasury Stock 

 

 

 

 

 

Statutory

 

 

Comprehensive

 

 

related

 

 

of the

 

 

controlling

 

 

Total

 

 

 

 

Shares

 

 

Amount

 

 

capital

 

 

 

 

 

 

 

Unrestricted

 

 

reserve

 

 

income

 

 

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 issued for compensation

 

 

7,390

 

 

 

-

 

 

 

10

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

10

 

 

 

 

 

 

 

10

 

 

Net income (loss)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

-

 

 

 

3,280

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3,280

 

 

 

(7

)

 

 

3,273

 

 

Transfer to reserve

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

-

 

 

 

(437

)

 

 

437

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

-

 

 

Net cash paid to related party under counter guarantee agreement (Note 11)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,579

 

 

 

1,579

 

 

 

-

 

 

 

1,579

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deconsolidation of Yiduo

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,517

 

 

 

1,517

 

 

Foreign currency translation gain

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,920

 

 

 

 

 

 

 

8,920

 

 

 

-

 

 

 

8,920

 

 

Balance at December 31, 2020

 

 

14,809,160

 

 

$

15

 

 

$

3,650

 

 

 

$

-

 

 

$

109,171

 

 

$

20,376

 

 

$

4,590

 

 

$

(3,353

)

 

$

134,449

 

 

-

 

 

$

134,449

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock issued for compensation

 

 

3,152

 

 

 

-

 

 

 

10

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

10

 

 

 

 

 

 

 

10

 

 

Net income (loss)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

-

 

 

 

(92

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(92

)

 

 

-

 

 

 

(92

)

 

Transfer to reserve

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

-

 

 

 

(869

)

 

 

869

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

-

 

 

Payments received from party under counter guarantee agreement (Note 11)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3,353

 

 

 

3,353

 

 

 

-

 

 

 

3,353

 

 

Repurchase  of 147,334 shares of common stock

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

363

)

 

 

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(363

)

 

 

-

 

 

 

(363

)

 

Foreign currency translation gain

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,601

 

 

 

-

 

 

 

3,601

 

 

 

-

 

 

 

3,601

 

 

Balance at December 31, 2021

 

 

14,812,312

 

 

$

15

 

 

$

3,660

 

 

 

$

363

 

 

$

108,210

 

 

$

21,245

 

 

$

8,191

 

 

$

-

 

 

$

140,958

 

 

-

 

 

$

140,958

 

 

 

 

 

EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

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

FOR THE YEARS ENDED DECEMBER 31, 2021AND 2020 

 

 

 

2021

 

 

2020

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net income

 

$

(92

)

 

 

3,273

 

 

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

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

6,404

 

 

 

5,291

 

 

Loss from sale of property and equipment

 

 

610

 

 

 

209

 

 

Loss on deconsolidation of a subsidiary

 

 

-

 

 

 

1,085

 

 

Provision of bad debt allowance

 

 

1,429

 

 

 

1,117

 

 

Provision for obsolete inventories

 

 

6,735

 

 

 

6,753

 

 

Changes in fair value of trading securities

 

 

(150

)

 

 

(131

)

 

Changes in fair value of investment

 

 

(1,641

)

 

 

(819

)

 

Deferred income tax

 

 

24

 

 

 

154

)

 

Stock-based compensation