Q4 2021 Ever-Glory International Group Inc Earnings Call
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Okay, please go ahead. Your line is now open. Okay.
Please go ahead. Your line is now open.
Okay.
Okay.
Yeah.
Hello, can we please? Yes, please go ahead, your line is open.
Hello, Kevin.
Yes. Please go ahead your line is open.
Okay.
Thank you operator, Hello, everyone and we'll come to ever Glory International group.
KE: Thank you, operator. Hello everyone and welcome to our glory international group fourth quarter.
Called her.
KE: 2021 earnings company called. The company distributed his earnings press release earlier today via news via service. You can download it from ourglory's website at www.ourglorygroup.com. With us today is Ourglory's chief.
2021 on a company called the company is to be able to hit the earnings press release earlier today.
We owe somebody where you can download yoga downloaded from our glory, so upside guy at the table top of the hour.
Oh God I would go all regroup what they'll come with US today is our glories the chair.
Jason WAL: financial officer mr. Jason Wow mr. Yihua come our glorious chip teammate president and chief executive office
Financial Officer, Mrs. Not just Oh Wow, Mr. Iwasaki Golar is the chip to you Matt.
And the Chief Executive Officer.
Speaker Change: It's our business trip today and I'm able to join the call. Mr. Wong will read the prepared remarks on behalf of Mr. Kong.
<unk> all been in the strip today and unable to join the call. Mr. Luo will read the prepared remarks on behalf of Mister car before we'd go start I hope reveal of the SAP harvest that mental regarding regarding todays conference call. Please note that.
Jason: Before we got started, I will reveal the self-harm statement regarding
Jason: regarding today's conference call. Please note that the discussion today will contain forward-looking statements on math.
The discussion today will conquer forward forward all cause deaths mental math.
Jason: Under the self-harbored provision of the U.S. private security litigation reform act of 1995, forward-looking segment in hurried risks and uncertainties as such.
Under the Safe Harbor provision of the U S private security litigation remark.
Reform Act to offer 1995, well work on all cause for that one.
Yeah.
Yeah.
And Oh, God hand pieces and such.
Jason: The company's results may differ materially from the view expressed today. Further information regarding this and other risks and uncertainties are included in the company's results.
Look how long is the result for metallic lead from the view expressed today further information and got them regarding this and the other risks and also times he is.
Included in the Companys.
Quarterly report.
Jason: On from Tung-Kyu for the 3rd quarter ended September 30th, 2021.
Oh from Tom to follow that so it does cause Andy that's the 10 Bucks apiece 2021 .
Jason: annual report on fall 2020 for the fifth year ended.
And you'll recall to all full time key followed a fear yeah. Indeed.
Jason: December 13, 2021, and in other documents filled with U.S. Securities and Exchange Commission, our glory does not assure any obligation to update any forward-looking statements, except as required under applicable law. As a reminder, this is a
Symbol 13th at first the 2020 , one and the other documents filed with the U S Securities and Exchange Commission, our glory does not assume any obligation to update.
Update any forward looking statements, except as required under applicable law.
I remind that that's it.
Speaker Change: This conference call is being recorded. In addition, an edu-webkit of the conference will be available on Avoglory's Investor Relations website. I will now turn the call over to Ms.
This conference call is being recorded.
And as you lap can't awful conference will be a valuable I am a glorious investor relations website.
I'll now turn the call over to Mr. Wang.
Speaker Change: Thank you, Joanna. Good morning to those in the US, and good evening to those participants in Asia. Thank you for joining our fourth quarter, 2021 Audience Conference call. We are very pleased to announce that 2021 fourth quarter results with a 10.7% year over year increase in gross profit.
Thank you Jordan.
Morning to Adobe in U S and good evening to those parks dancing Asia. Thank you for joining our fourth quarter 'twenty to Novo Holdings Conference call. We are very pleased to know that went into the new world fourth quarter result.
With a 10.7% year over year increase in gross profit.
Speaker Change: North Korea achieved year-over-year improvement in growth percent of 25.4% for our wholesale business.
Not brand, we achieved year over year improvement in gross at that <unk> 25 for the folks in our wholesale business.
How do you tear business increased three point of 50% growth preferred computer, whereas the for year ended December 31, two.
Speaker Change: 3.6% in gross profit compared with the four-year-end December 31, 2021. On the two sides, our brands continue to attract new customers and retain existing customers
They tend to work.
On the fuel side, our Bronx continue to attract new customers and retain existing customers.
Speaker Change: By focusing on design, quality, and value, our inventory management strategy continually improves the balance between inventory turnover and our diligent cost control measures further strengthen the profitability of our business.
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Forecasting all design quality and value our inventory management strategy continue raising Peru borrowed.
Inventory turnover and our diligent cost control made yet further strengthen the ability of our business.
Speaker Change: As of December 2021, we operated a nationwide network of
As of December to the wall to wall, we operated a national wide network.
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Speaker Change: 880 stores compared with 936 stores as of December 31, 2020.
880 stores compared with 933 stores as of December so they want to attend to.
Speaker Change: During 2021, we operated with CELIBRATY as the spokesperson of LargoGo. The expect of CELIBRATY will enhance our brand influence. While we still see strong demand for the products at our retail stores, we continue to see opportunities in the ecomency area. Vibrable platforms such as LargoGo stores
During 2020, while we operated where is that right.
Both the La go go.
Oh, <unk>, where he has them all broad deep roots, while we still see strong demand for the product.
Our third store, we continue to see opportunities either e-commerce area by BOE platform, such as our La go go stores.
Speaker Change: on Timo and Jingdong.com are used as a strategic and effective way for us to drive customers' engagement, encourage cross-channel shopping, reduce out-of-season inventory, and create a unique and different-aided customer experience to grow our loyal customer space.
On T mall, and Jim adult I'll call them.
Just as a strategic and effective way for us to drive customer engagement.
Courage.
Ralph Channel shopping.
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Customer experience to grow our loyal customer base.
Speaker Change: The company's health care business is still affected by COVID-19 and the pressure of the economic downturn. We will actively respond to the changes in the economic development.
The company is lets see our business is effected by COVID-19, as a pressure of that economic of downtown where we are actively bolt to the changes is the eternal cause I'll make you Barbara.
Speaker Change: As for our Hosea business, the company has enhanced its extensive product development and supply chain management as well as network of high quality, reliable and cost-effectively.
For our wholesale.
In this the company has he has.
<unk> is turnkey product department and its bright chairs regiment.
We're a little book of high quality reliable and cost effective today.
Speaker Change: sourcing channels and manufacturers. In addition, our market research center provides our wholesale customers with independent research and analysis in the areas including brand positioning, fashion trends, new material development, and new style design. Going forward, we will continue to focus on enhancing our product development
So the entire roads and my refractories.
Our market research.
Center provides our customers with integrated search and I noticed in the areas, including broad positioning furnishing truth newer material development and new site design going forward, we will continue to a forecast.
Hosting all product development.
Speaker Change: capabilities and optimizing the customer base.
Kept abilities and optimizing the customer bill.
With our long term vision of being a leading Brian chip solution provider for mid to high and are proud of the Bronx, both mandate tighter and the wild Wild did can growth has caused called them.
Speaker Change: With our long-term vision of being a leading supply chain, solution provider for mid-to-high and parallel browns both in Mandarin China and worldwide, this concludes Ms. Khan's conglomeration.
Speaker Change: I will now walk through our financial results for the fourth quarter of 2021. Please note that all numbers you cast today are in US stores, unless otherwise noted.
I'll now walk through our financial results for the fourth quarter opened due to new well Britain, though that <unk> deep cut to date are you U S. Doris.
Otherwise noted.
Speaker Change: Four-year 2021 financial results, total sales for the four-year of 2021 were $331 million, an increase of 23.8 percent from $267.4 million in the four-year of 2020. This increase was primarily driven by a 57.8 percent increase.
Oh, Yeah, Tony to New World Financial results total sales for the four year open into the wall.
So we hung in and sort of wall median right Chris.
<unk>, 3.8% from 200 and suitcase data point for media is a four year old 2020.
This increase was primarily driven by a 57, 8% increased.
Speaker Change: our wholesale business partially offset by a 2.7% decrease in retail business.
Our wholesale business, partially offset by a 2.7% decrease even choppiness.
Speaker Change: Sales for the company's branded fashion apparel retail division decreased by 2.7% to 146.1 million for the four-year of 2021, compared with 150.1 million for the four-year of 2020. This decrease was primarily due to a decrease in sample sales. The company upgraded 818 retail stores as a famous city.
For the company's branded fashion apparel retail division decreased by two 7% to <unk> 46, 1 million for the for your openness to new work compared with 150 point a more medium for the four year option at 20.
This decrease was primarily due to a decrease in stem cell field.
The company operated it hungry.
188 stores as of December .
Speaker Change: to 2021, compared with 936 which are those.
To transition their work compared with 930.
Good.
Speaker Change: As of December 31, 2020, sales for the company's wholesale division increased by 57.8% to 184.9 million for the four-year of 2021, compared with 117.2 million for the four-year of 2020. This increase was paramount attributable to increased sales in mainland China, Hong Kong China, Europe , other Japan and the United States.
As of December so they walked into 'twenty.
Before the company is the wholesale division increased by 57, 8% to 180.
Paul pointed by media for the full year opened its new one compared with $117 2 million for the full year open 20 <unk>.
Increase was primarily attributable to a grid still in mainland China, Hong Kong, China, Europe other Japan.
Yes.
Total growth prepared for the four year opened until well it increased by 10 point of sale extended to Wahoo 1 million compared with $91 2 million for the for Yolked and day to day.
Speaker Change: Protocross provides for the 4-year opportunity to 1 increase by 10.7% to 101 million compared with 91.2 million for the 4-year opportunity.
Speaker Change: for the four year of 2021 decreased to 30.5% from 34.1% for the four year of 2020.
Total gross margin for the full year old to new to the world the grid tube, So reported 5% Rob.
Therefore, the walks in and put a floor to the team.
Speaker Change: Gross profits for the retail business increased by 3.6% to 63.7 million for the 4-year of 2020-1, compared with 61.5 million for the 4-year of 2020. Gross mining for the 4-year of 2021 was 43.6% compared to 2, 40.9% for the 4-year of 2020-1.
Perfect for the retail business increased by three 6% to.
We reported 7 million for the full year, there wont computer with excuse to 1.5 media for you opened at the gross margin for the four year opened it a new world was 43, 6% compared to 244, 9% for the four year to date growth.
Speaker Change: Growth profile for the wholesale business increased by 25.4% to 37.3% for the four year of 2021, compared with 29.7% for the four year of 2020. Growth margin for the four year of 2021 decreased to 20.2% from 25.4% for the four year of 2020.
Both prepared for the wholesale business increased by two to five 4% to so to say look toward sleep medium with a four year or two they didn't well compared with 29.7 medium for the for your OLED tool.
Gross margin for the four year old to do their work decreased to 2.2% dropped to the floor.
4% for the four year old through 'twenty.
Speaker Change: Set expenses for the four-year of 2020-1 increase by
Selling expenses for the four year old today, it's the walk decreased by.
Speaker Change: 12.8 z to 64.1 minutes or 19 minutes
Two output.
Towards two step for the wall median of 19.
Speaker Change: 19.1% up to the ceiling, compared with 55.5% up to the ceiling.
My team for the walk up to the ceiling.
Computer with.
<unk> five point.
So I immediately to the wall.
Speaker Change: or 0.9 million
Oh to deport buying median.
Speaker Change: 20.9% up to still for the four year of 2020. The increase was achieved to the higher travel expenses.
To the 0.9% CAGR for the four year old two day today.
The increase was attributable to the higher travel expenses.
Okay.
Yeah.
General.
Speaker Change: 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
And administrative expenses for the full year alternative new was secret.
By 23 point to finish two third airport 4 million.
You know what I'm, 42% of total.
Compared with $31 2 million.
11, 7% for the four Yo tuned attuned to that equip the increase was attributable to the increased salaries.
Speaker Change: 11.7% of the sales for the full year of 2020, the increase was attributed to the increased salaries.
Speaker Change: Loss income from operations was negative 0.5 million for the 4-year of 2021, compared to 4.1 million for the 4-year of 2020. Then loss achievable to the company for the 4-year of 2021 was negative 0.09 million compared to 3.3 million for the 4-year of 2020. Okay, that's it, and I'll see you next time.
Lost income from operations was NEC team.
They're reported 5 million before the four year opened it to do well compared to $4 1 million for the four year old to new teams didn't know a.
The chips to the commentary for the for your ability to do well what that data 0.0 9 million compared with 3.3 medium for four you opened a 20 basic and diluted.
No.
Speaker Change: A lot of cashier was negative one cent for the four-year opportunity to do well, compared with...
<unk> was negative 1% for the full year of two well compared with.
Speaker Change: 22 cents for the four-year of 2017.
So the two cents for the for you to do something.
As of December 31, two Nintendo Wall Evercore has.
Speaker Change: As of December 31, 2021, Everglary has
Speaker Change: Approximately 59.9 million of cash and cash equivalent compared with approximately 81.9 million of the December 31, 2020.
Approximately <unk> <unk>.
<unk> $9 9 million of cash and cash equivalents compared with approximately today. It was <unk> 9 million over the December so they want to the ever Glory had a working capital of approximately two 1 million as of December citywalk tended to do well, but they'll all stay in.
Speaker Change: February had a working capital of approximately 51 million as of December 31, 2021, and an outstanding bank loan of approximately 69 million as of December 31, 2021.
The bank lost approximately the Red light is not 69 million as of December 31, two day to day work.
Speaker Change: Our relentless efforts have been paying off with the 2021 fourth quarter results, and we look forward to further strengthening the fundamentals and the increasing operating leverage to support the long-term profitability of our business.
Our relentless efforts have being paying off with the attorney to new <unk> fourth quarter results and we look forward to further strengthening the fundamentals and the increasing operating leverage to support the long term perfect ability of our business.
Speaker Change: Thank you for participating in Evergrande's 2021 fourth quarter.
Thank you for painting Evercore is too new to new warm fourth quarters.
Speaker Change: We look forward to talking with you next quarter. If you have additional questions, please feel free to contact our IEI department. Goodbye. Thank you.
But it's cool we look forward to talking with you next quarter. If you have additional questions.
You are free to contact our IR Department Goodbye. Thank you.
Thank you operator.
Speaker Change: Thank you very much.
Yeah.
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That will conclude today's conference call. Thank you for your participation ladies and gentlemen, you may now disconnect.
Speaker Change: That will conclude today's conference call. Thank you for your participation, ladies and gentlemen. You may now disconnect.