Q2 2021 Ever-Glory International Group Inc Earnings Call

Good day and welcome to the ever Glory International Group Second quarter 2021 earnings Conference call. Today's conference is being recorded at this time I would like to turn the conference over to Mr. Wilson. Please go ahead Sir.

Thank you operator.

Hello, everyone and welcome to ever Glory International Group second quarter 2000.

Quarter, One earnings conference call.

It took us at its earnings press release earlier today via Newswire services.

Can also download it.

Ever Glory website at Www dot ever Glory Kirk.

Dot com.

With us today is evergreen Chief Financial Officer, Mr. Jason one.

The very important person Mr E Com Evercore as chairman President and Chief Executive Officer is on that business today.

He is unable to join the call. So let me just hit a wall will read the prepared remarks on behalf of this Mister car.

Before we get started I will review the Safe Harbor statement regarding todays conference call. Please note that the discussion today will contain forward looking statements made under safe Harbor provisions of the U S. Private Securities Litigation Reform Act of 1995.

Forward looking statements involve inherent risks and uncertainties as such the company's results.

It differs materially from the views expressed today.

Further information regarding these and other risks and uncertainties are.

Included in the company's annual report on Form 10-Q for the second quarter ended June 30 <unk>.

'twenty, one and then other documents filed with the U S Securities and Exchange Commission.

Ever Glory does not assume any.

Application.

To update any forward looking statements, except as required under applicable law.

Remind us this conference call is being recorded.

An audio webcast of this conference.

Available on Evercore is investor relationship website.

I will now turn the call over to Mr. Wang.

Same thing with it.

Good morning.

Good evening to those participants in Asia.

Thanks for joining our second quarter 'twenty.

Net income.

Well on a conference call.

We are very pleased to announce the <unk> second quarter results with that.

Teleport and nice quarter.

Quarter on quarter increase in total sales.

Notably we achieved quarter over quarter improvement in gross profit.

46 points.

For our retail business.

Also helping is decreased.

17.5% and gross profit compared with the.

The three wells.

Joe.

The 20 <unk>.

The decrease was mainly due to.

Raw material price and higher all sought protection.

Our retail side I'll browse continue to attract new customers and retail existing customers buy a forecasting all design quality and value.

Inventory management strategy country you continue.

Continue the improved the balance between inventory turnover and our diligent cost control for the change in the profitability.

Sure.

Yes.

We have rich.

Okay.

Two stores and closed.

Seven stores in the first half year, 'twenty or 'twenty one.

As of July 22, the wall, we operated a nationwide did walk of life hung Jade.

So two one stores compared with last hungry it and so the five stars as of June 32 different teams.

During 2000.

It's until well.

We operated well.

Fitbit Teddy bears.

That's.

Both Posen like Google the effect of the city birthday, we enhance our broad infrared.

While we are seeing strong demand for our products and our retail stores.

To see opportunities in the e-commerce.

Area by both prep form that's at our La go go stores on Tmall.

Jumped on the call.

As a shrinkage.

Effective way for us to drive customer.

Engagement.

Encourage cross shopping.

You also see that inventory and cause it Ed.

Unicorn and deployed.

Differentiated customer its parents to grow our loyal customer base.

<unk> business is Europe is back to you to by COVID-19, and as the appraisal of the economic downturn.

Downtown.

Actually every day this fault to the carriage is.

It's total economic.

I just thought I'll walk us up in is the comps that you had.

Intensity of product development and supply chain management.

In the past.

That work well with high quality.

Reliable and cost efficient clothing, Charles and matter of fact Terry.

Additional.

Our market Research Center provides our wholesale.

Customers with Covid.

Research and I don't see it in the areas, including brand positioning fashion trends Europe, virtually all development and used by design going forward, where we are continuing to forecast all enhancing all protect the environment.

[noise] abilities and operating screens.

Obviously amazing customer base with our long term vision of being a lady of fried chicken solution provider for them either too high and are proud of Ralph both in mainland China and worldwide.

This concludes with Coke comments.

I will now walk through all financial result for the second quarter, Oh tinted window wall.

Please note that all numbers stated are U S Torres unless otherwise noted.

Second quarter translates into what financial results.

Total sales for second quarter, well tended to know what well see is the part of 6 million.

Great.

Turning to partners like I said from <unk>.

They're part of a bottoming in the second quarter or 10 to 20 years.

This increase was primarily driven by a 19, 9% increase in our cross sell business.

Tend to evolve quite a 7% increase in retail business.

Yeah, well the commentary, it's broad fashion apparel retail division increased by 21 quite a seventh debt towards sort of full part of ball minion, let's take it a quarter or two until it's until wall compare with <unk>.

28 million for the second quarter of two niches.

The increase was primarily due to the increase in the Samsung deal.

The company operated.

My whole grid. So the wall you just feel as though Joel sort him to Nintendo World comparator with like how good and so they're finding a job thought advil gel sauteed twenty-twenty.

Therefore, the company the Hooker <unk> Division increased by 19 point in mindset to tell at this point 4 million for the second of course has over 20.

Until well compared with 22 million for the second quarter or 10 attentive. This increase was primarily attributable to increased sales in mainland China Hong Kong.

I came to <unk> and other European market.

Partially offset for the secret sauce in Japan, and the United States.

Total gross profit for the second quarter or 10, they tend to increase by 10 and say how important right.

At $2.

18.4 million compared with $14.4 million for the fourth quarter.

Second quarter 'twenty 'twenty.

Total gross margin for the second quarter of contingent of wall increased two.

0.4% from 20.

The airport, it's it will take a quarter or in the country.

So that's for the retail business increased by 46 point to 7% to 14 point Ed.

Minions for second quarter, or 20 watt comparator with pinpoint bombing them for the second quarter Oh to near term.

Gross margin for the second quarter of 'twenty to new work was 43.4% computer tool. So at this point talk said, let's take it a quarter or 2020.

Gross profit for the wholesale business decreased by 17.

17.5 said too.

One 2 million for the second quarter, well tended to when the work compared with 4.4 million, let's take on a quarter over 10 or 20 of course modeling for the second quarter or 10 to 20 of what creates too.

13 poised chipset from 19 point of 7% for the second quarter or 10 incentives.

Setting cookies for second quarter.

Oh tenet tender work increased by 14, 9% to 14.5 million or 10 of Fox N of total sales compared with $12.6 million or $25 talk that up to the ceiling.

Well, let's take it a quarter or 10 to 20.

The increase was attributable to the increased marketing expense.

Associated with the promotion of tablets broke.

General and administrative expenses, so second quarter, continuing their work increased by 2.3% tool and place them in an all to all upon sale.

Compare that with.

Minions, all 11.9% Okay. That's good for the second quarter of two near term thing.

The increase was attributable to the decrease business chip and.

Sampson.

Yeah.

Sure sure Penny fees by.

What's happening with China government during the COVID-19 outbreak in China 2020.

Yes.

Loss from operations was three point of sale a meeting for the second quarter 'twenty to do well compared to $4.2 million plus second quarter bolt into 'twenty.

That's not shipped off to the context I was thinking of quota to Nintendo what was.

One point to add immediate computer will report it immediately if they got a quota to neutrality based.

Basic and diluted loss per share was <unk>.

We all said, let's stick on a quota of 2020 watt compared suites.

And there's fixed since second.

Quarter over to the 20th.

As of June 28, when the world ever Glory had approximately to read it.

Oh median of the cash and cash equivalents compared with approximately three.

At one point in time.

As of December 31.

Hey.

Ever Glory had a working capital processing me today, well the airport point 9 million as of June 30.

To Nintendo World and outstanding Bank, along with a promising me today Steve.

5.5 million is a skill shortage.

To listen to what.

Oh.

And then these effects have been paying off with the two new to know what second quarter is out and we look forward to further.

Strengthening the fundamentals and increasing operating leverage to support the long term profit ability of our business.

Thank you for printing in evergreen raised to Nintendo World Second quarter earnings call. We look forward to talking with you next quarter. If you have additional Christian.

Feel free to contact our IR Department Goodbye. Thank you.

Thank you operator.

Thank you. This concludes today's conference call. Thank you for your participation ladies and gentlemen, you may now disconnect.