Q3 2021 Ever-Glory International Group Inc Earnings Call

Please standby were about to begin.

Good day and welcome to ever Glory International Group third quarter 2021 earnings Conference call Today's conference is being recorded.

At this time I'd like to turn the conference over to Wilson Bow. Please go ahead.

Thank you operator, Hello, everyone and welcome to ever Glory International Group third quarter 2021 earnings conference call. The company distributed its earnings press release earlier today via Newswire services.

Can also download it from ever Glory website.

Www Dot Evercore regroup.

<unk> Dot com, we've got today is ever Glory, as Chief Financial Officer, Mr. Jason One.

And Mr. You will kind of ever Glory, as chairman President and Chief Executive Officer is on the business is today and he is unable to join the call today.

They said one will read the prepared remarks on behalf of Mr. Gong.

Before we get started.

I will say, though will review the safe Harbor statement regarding todays conference call. Please note that the discussion today will contain forward looking statement made.

Made under the Safe Harbor provisions of the U S. Private Securities Litigation Reform Act of 1995.

Forward looking statements involve inherent risks and uncertainties.

Such the company's results may differ materially from the views expressed today.

Further information regarding these and other risks.

Sudden these are included in the company's annual report on Form 10-Q for the third quarter ended September 30.

2021 and in other documents filed with the U S Securities and Exchange Commission.

Ever Glory does not assume any obligation to update any forward looking statement, except as required under applicable law.

As a reminder, this conference call is being recorded in addition, an audio webcast of this conference.

We will be available on <unk> Investor Relations website.

Now I will turn the call over to Mr. Walsh.

Thank you.

Good morning to those in U S and good evening to those participants nature. Thank you for joining our third quarter transact when they will holdings conference call.

We are very pleased to announce that translates into a while third quarter results with a 19 point or 1% quarter on quarter increase in total field.

North Park.

Quarter on quarter improvement in gross profit Oh, you know what 1.2% for our consumer business.

But all of it show up in the news decrypt pinpoint three fit and growth to flat compared with the three months ended September.

So what it tends to trend to the decrease was mainly due to increased production costs and the write off of some.

And then to risk.

All material side, our Bronx continue to attract new customers and existing customers why forecasting on design quality and the value our inventory regiment vintage continue Europe improve the boroughs between inventory turnover.

And our diligent cost control measures to further strengthen the profit ability of our business.

Opened.

It is three stores and are close to 126 stores in line both for 2021.

As of September 30th 2020 walk, we operated a nation wide need work.

893 stores compared with 923 spot as of September 30th 'twenty to 'twenty.

During 'twenty 'twenty, well, we operated with a celebrated.

Both posted of La go go.

Part of that steady parade T. He hasn't all brought in new brands.

While we still see jumps to mind for all product at our retail stores, we continue to see opportunities opportunities either.

E Commerce at all.

My book Golf clubs, such as our La go go stores on.

On Tmall.

Hum.

I used.

'twenty, Jake and effective way for us to.

To drive customer engagement.

<unk> called growth Cross channel shopping reduce out of season inventory and the cause.

Yeah.

Unicorn and different aged customer experience to grow our loyal customer base.

The company's wholesale business you start you talked it by coverage.

T.

19 and in the press.

The truck economic downtown where we actively respond to the changes means that ito.

Internal economic.

The environment.

And for all of us with their business the company has had.

These turnkey product the Viper wind and it's fired churn management is.

I will never walk over high quality reliable and cost efficient you've mentioned the sourcing channels and American factories.

In addition, our market Research center provides our customers with indeed.

Research and analysis in the <unk>.

Elliot and.

Including Bronx positioning.

Crashing chance, new material development and new style design.

Going forward, we will.

I'll continue to forecast all enhancing our protect the environment capabilities and optimizing the customer bids.

With our long term future of being a leading fried Kim solution provider for mid to high and are proud of fronts, both in mainland China and worldwide.

This concludes this call.

Can you comment.

I will now walk through our financial results for the third quarter of 'twenty to 'twenty are well below that number tick up to date.

Unless otherwise noted.

Total sales for the third quarter of 22, New walk walk 94.4 million an increase of.

A team point of 1% from 17, $9 9 million in the third quarter of 2020. This increase was primarily driven by.

8% increase in our wholesale business.

Partially offset by a seven 6% decrease.

Decrease in with your business.

Sales for the company.

So that's for the Congress Brown <unk> Brown to the fashion apparel retail division decreased by 7.6 said two suited to point to millennium was third quarter or 'twenty or 'twenty one.

Computer with the default pod Epimedium for third quarter 2020. This decrease was primary due to a decrease in the e-commerce. It fills the carpenter operating life in Hungary, and 19th Street you chip.

As of September 30, 2010 day, well compared with 923, you just thought as of September so the 'twenty to 'twenty three.

For companies, who feel division increased by suite.

So it it said two to $2 2 million for the third quarter of 2020, well compared with 45.1 million for the third quarter 2020.

This increase was primarily attributable to an increase.

You can see all in mainland China European ours that Japan.

In the United States, partially offset by a decrease in sales in Hong Kong and the United Kingdom.

Total growth for Fad for the third quarter of 2020 watt decreased by 2% to $23 2 million compared with 23.7 million for the third quarter.

The 2020 total gross margin for the third quarter of 2021 credit to 24, 6% from 29, 6% for third quarter 2020.

Gross profit for the retail business decreased by 10, 3% too.

Yes.

Took a 13 million for the third quarter 2021, compared with 14.5 million for the third quarter of 2020.

Gross margin for the third quarter of two neutrophil Walt was four two points to 3% compared to afford a wallboard.

For the third quarter of 2020.

Perfect for the hookup business increased by.

To get to $10 2 million for third quarter or can you turn him well.

Well compared with $9 2 million for the third quarter of 2020.

Gross margin for the third quarter of 2020 decreased two two.

His team point of 4% from 10% to 24% for the third quarter of 2020.

Selling expenses for the quarter, Oh, 22, new wells increased by.

I have appointed bumped the sent to 14 point of 4 million all $15 three extent up to the field.

Computer with.

So team many of all 15, plus 3% Oh till the fourth.

For the third quarter Oh 2020.

The increase was attributable to the higher traveling you can see.

Daniel.

Administrative expenses for the third quarter of 'twenty to their work increased by 21 point of bumps it tool $9 5 million or 10%.

Comparatively.

7.8 million.

Nine point at fed funds.

Third quarter Okay.

The increase was attributable to the increased salaries.

Income from operations was.

They reported seven minions.

For the third quarter, 'twenty, 'twenty, well computer week compared to $2 9 million for the third quarter of 2020.

That's all attributed to the company for the third quarter.

Attendance in the wall was.

$3 2 million.

Compared with $2 2 million for the third quarter, Oh Twenty-twenty adulthood.

Adulthood.

Loss per share was.

And the truth is for the third quarter of two Nintendo walk computer with 15 fit for sort of a quarter or two and attentive.

As of September 32, Nintendo World every gory had approximately today reported 8.3 million of cash and cash equivalents.

Peter with approximate to them.

The 1.9 million as of December 31, 2020, Evercore already had working capital of crossing me today for the full $6 million.

September suited to Nintendo World and outstanding being alone approximately two Bcf standpoint, 8 million as of September 30, 20 to their work.

Our.

Lastly, he thought have been paying off with 22, new wells to the quarter results and we look forward to further strengthening the fundamentals and the engraving operating leverage and a thought the long term profit ability of our business.

Thank you for participating in Evercore as.

Well for the quarter or quote.

Look forward to talking with you that quarter.

Additional question, please feel free to contact our IR Department Goodbye. Thank you.

Thank you operator, it seems we kind of have all geared up with also conclude today's conference call. Thank you everybody. Thank you I'll see you next time.

Thank you. This does conclude today's conference we thank you for your participation.

Yeah.

[music].

Yeah.

[music].

Yeah.

[music].