Q1 2022 Ever-Glory International Group Inc Earnings Call
Ladies and gentlemen, you are currently on hold for today's conference call. At this time we are assembling today's audience and plan to be underway shortly. We appreciate your patience and please remain on the line.
Ladies and gentlemen, your cause them holds for today's conference call. At this time, we will establish today's audience and plan to be underway. Shortly we appreciate your patience and please remain on the line.
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Okay.
Thank you, operator. Hello everyone and welcome to our global international group first quarter 2022.
Thank you operator, Hello, everyone and we'll come to ever Glory International Girl, because first quarter 'twenty to 'twenty two.
earnings conference call. The company distributed its earnings press release earlier today via news via service. You can else download it from Avoglory's website at www.triple.avoglorygroup.com. With us today is Avoglory's cheerful
Oh names to call friends call they'll come on they this Tuesday with Pizza is our names crazed to release earlier today via newswire. Some it you can download it from our glorious wound sides of its triple adult alcohol regroup on the call with.
Today, it's our glorious cheerful.
financial officer, Mr. Jason Wong, Mr. Yihua Kang, our glorious Chairman, President and Chief Executive Officer, is on a business trip today and unable to join the call. Mr. Wong will read the prepared remarks on behalf of Mr. Kang.
Financial Officer Must've, just so long that's the wildcard I would glories, the chill, Matt Crawford President and Chief.
It's Dave I'll see Sir.
And then I know, it's cheap today and unable to join the call Matt Mr. Luo will raises are prepared.
On behalf of Mr. Kang.
Before we get started, I will reveal the self-harvest statement regarding today's
Before we get started I will reveal the south harvest that mental regarding today.
conference call. Please note that the discussion today we are counting forward-looking statements made under the self-hybrid provision of the U.S. private securities litigation reform Act of 1995.
Conference call, but it's not that the discussion today will compound forward looking that most matter under the South Harbor prison shut off the U S private.
So pure a tease that they'd Gershon Reform Act awful 1990 fives or.
forward-looking statements involve inherent risks and uncertainties. As such, the company's results may differ from the company's results.
Oh, Wow look at that months involve inherent risks and uncertainties as such the.
Colin this is.
How might differ.
Particularly from the view expressed today, further information regarding this and other risks and uncertainties are included in the company's annual report on Form 10-K ey for the Frist Code Ended Marsh.
But you are really from the views expressed today further information regarding these and other risks and uncertainties are included in the concrete Companys annual report on Form 10-Q for the first of course, Andy Marsh.
31st, 2022, and in other documents filled with the U.S. Securities and Exchange Commission.
13, first the 'twenty to 'twenty, two and I'm talking months do we have the U S Securities and Exchange Commission.
Glory does not assume any play.
to update any forward-looking statements except as required and applicable law. As a reminder, this component code is being recorded.
But he gershon co op that any forward looking bad months, except as required and the applicable law. As a reminder, this companys call is being recorded in addition, a Ed you webcast of this conference will be available.
In addition, an agile webcast of this conference will be available on Avgloris Investor Relations website.
Call. It Golar is in the Investor Relations website, and I will now turn the call over to Mr. Walsh.
and I will now turn the call over to Mr Wang.
Thank you Joanna. Good morning to those in the U.S. and good evening to those participants in Asia. Thank you for joining our first quarter, 2022 Orleans Conference Corps.
Thank you for joining us.
Good morning to those of you.
And good evening to those participants in Asia. Thank you for joining our first quarter.
And pay attention to what is called as cool we are.
We are very pleased to announce that 2022 first quarter results with a 28.7% quarter-on-quarter increase in sales for our wholesale business.
I'm very pleased to announce the 10th pitching it to first quarter results with a 27% quarter on quarter increase you'll see all of our wholesale business not five we achieved quarter on quarter improvement in gross profit for the wholesale business.
Not by we achieved quarter on quarter improvement in growth perfect for the wholesale business of 25.2 percent.
Well tend to fly point to it.
On the retail side, our brands continue to attract new customers and extending existing customers 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 probability of our business. We plan to relocate all remodels to the retail side.
I'll just cite a brawl continues to attract new customers and extending 15th customer.
For clothing or design quality and value.
Inventory management joint huge continually grow the bonds.
Entering to lower them.
Our dividend costs can sure may just further strengthen the probability of our business, we plan to be relocated or remodeled.
50 to 100 source in 2022 as of March 31, 2022. We updated a nationwide network of 848 source compared with 921 source as of March 31, 2021.
52, well hunger to source in 'twenty, two new tools.
So much so do you want <unk> can get to we operate at a nationwide network.
840, <unk> compared to where you are now in Hungary, and drinking water source.
So they want to engage in tier two well Julien can do to new tool we call breakage, we are celebrating.
During 2022, we cooperated with Celebrity as a spoken logo. The effect of the Celebrity will enhance our brand influence.
Paul Hoagland La go go, but you thought of the Sydney Breaky, where he has all the all at once.
The company's Hosea business is still affected by COVID-19 and the pressure of the economic downturn. We will actively respond to changes in external economic environment. As of our Hosea business, the company has enhanced its incentive product development and supply chain management.
The Congress.
Do you are you talking by COVID-19, and the pressure of the igloo.
Downtown where we are active that responds to changes in channel because I'll make environment.
Also felt beneath the commentary I had he hasn't it.
Fenty product.
And the supply chain management.
as well as network of high quality, reliable and cost-efficient sourcing channels and manufacturers.
It's the pies.
A little book of high quality reliable and cost efficient sourcing channels and the modified Tilly's Inc.
In addition, our market research center provides our Hoseo customers with in-depth research and analysis in the areas including brand positioning.
I'm not sure our market Research center provides our customers with India.
And although this is Ali is growing.
Growing brown positioning furnishing chance newer mostly all development and new starts design.
fashion trends, new material development, and new styles design. Going forward, we will continue to focus on enhancing our product development capabilities and optimizing the customer base. With our long-term vision of being a leading supply chain solution provider for middle to high and apparel brands both in mainland China and worldwide, this concludes Ms. Kant's comments.
Going forward, we will continue to forecast all of enhancing our product development capabilities and abroad, leaving the customer base with our long term vision of being a leading supply chain solution provider for medical high and apparel browse Aussie men in China.
Worldwide. This concludes Mr. <unk> comments.
I will now walk through our financial results for the first quarter of 2022. Please note that all numbers discussed today are in U.S. stores unless otherwise noted.
I will now walk through our financial results for the fourth quarter of 'twenty to 'twenty. Two there is no doubt all nonpositive cockpit in U S dollars unless otherwise noted.
First quarter, 2022, financial results.
For the quarter Tenda Tenda to financial results. So.
So the sales for the first quarter of 2022 were 64.8 million, a decrease of 8.5% from 70.8 million in the first quarter of 2021.
So, let's say for the first quarter, Oh, 10 to 22, well 54.8 million a decrease of airport of 5% from 70 point Dominion in the fourth quarter or turned it into a wall. This decrease was primarily attributable to a 20.
This decrease was primarily achievable to a 28.7% increase in our health care business and a 26.7% decrease in our retail business.
Airport, Sydney said increases in all business.
And 26.7% decrease in our niche orphan disease.
Therefore, company's blunt fashion apparel retail division decreased by 26.7% to 34.9 million for the first quarter of 2022, compared with 47.6 million for the first quarter of 2021. This decrease was primary due to that decrease in sample sales.
Therefore accommodate route.
Apparel retail division.
Chris by 26.7% tool for the four 9 million for the fourth quarter, often ditching their tool comparator with 47 point excuse me for the fourth quarter of 'twenty 'twenty. One. This decrease was primarily due to the decrease you see I'm still feels like.
The company had 848 retail stores.
The company had 848 retail stores as of March So the walk to Neutrolin to compete with my hunger and to New Orleans your stores as a loss so they want to they tend to work.
as of March 31, 2022, compared with 921 retail stores as of March 31, 2021. Sales for the company's wholesale division increased by 28.7% to $29.9 million for the first quarter of 2022, compared with $29.9 million for the first quarter of 2021.
The other four the Compass Casino division increased by 28.7% to $29 9 million for the fourth quarter, Oh to Nintendo to compare with 10-K.
3.2 million for the first quarter of 2021, this increase was primarily achieved to increased sales in mainland China, Hong Kong, Japan, and the United States, and other European markets partially offset by decreased sales in the United Kingdom.
3.2 media for the fourth quarter, Oh to Nintendo Walk this increase was probably a shipyard to English.
Mainland China, Hong Kong, Japan, and then you got states the other European market.
Partially offset by decreased sales.
So you're not kingdom.
So the gloss perfect for the first quarter of 2021, decreased by 2020 point.
Gross profit for the fourth quarter tended to know wall decreased by.
So near term the point.
And then 2.6% to seven.
17.4 million compared with 22.4 million for the first quarter of 2021. Total gross margin for the first quarter of 2022 decreased to 21.5%.
17, 4 million compared with 22 point Paul.
Ooh media and for the whole fourth quarter, Oh can you kind of walk through the gross margin for the fourth quarter to neutral to decrease to 10-K.
6.8% from 31.7% for the first quarter of 2021. Growth factor for the retail business decreased by 34.8% to 11.7 million for the first quarter of 2022, compared with 17.9 million for the first quarter of 2021. Growth margin for the first quarter of 2022 was 1.5 million.
As Paul said, some sort of wallboard is still scheduled for the fourth quarter over to Nick to walk Global thought we were just hoping is decreased by four 8% to you gave I'm, calling the 7 million for the first quarter tended to computer with 17.9 million.
This quarter, Oh tuned attuned to what gross margin for the fourth quarter of two new two new two was.
So it's 3.4% compared to 70%
So the part of 4% compared to 70.
37.6% for the first quarter of 2021.
So there's several important.
For the fourth quarter, but we're transitioning to a work group.
Group fat for the wholesale business increased by 25.2% to 5.7 million for the first quarter of 2022.
We're prepared for the wholesale business and close by to near 5.26 to $5 7 million for the fourth quarter of 'twenty to 'twenty two.
Compared with 4.6 million for the first quarter of 2021, growth margin for the first quarter of 2022 decreased to 19.1 percent from 19.6 percent for the first quarter of 2021. Selling expenses for the first quarter of 2022 decreased by 12 percent to 13.7 million or 21.1 percent of total sales.
Getaways ballpoint, a few convenient for the first quarter, Oh 221 gross margin for the first quarter or 22, new to see close to 19 point or 1% from 19, 6% for the fourth quarter, so continuing to work.
Selling expenses for the first quarter, Oh to neutral new tools decreased by 12% to go.
O T point 7 million or 21 point of bumps it up to the field.
Computer was 15 point of finding an alternative.
compared with 15.5 million or 22 of 12 sales for the first quarter of 2021. The decrease was due to the decreased salary.
The two O to O fields for the first quarter book to listen to what the decrease was due to the decreased steadily.
General and administrative expenses for the first quarter to Nintendo to decrease by 10.9%, two 7 million or 10 points.
general and administrative expenses for the first quarter of 2022 decreased by 10.9% to 7 million or 10.8% of total sales compared with 7.9 million or 11.1% of total sales for the first quarter of 2022. The decrease was attributable to the decreased salaries.
Okay.
Compare that with 749 million or 11 point, the wall said well to a steel for the first quarter of 'twenty to 'twenty. Two the decrease was attributable to the decreased salaries.
Okay.
Block flow operation was 3.3 minutes.
Loss from operations was $3 3 million.
For the first quarter of 2022, compared to one million for the first quarter of 2021, net loss achievable to the company for the first quarter of 2022 was 5.1 million compared with 1.2 million for the first quarter of 2021. For the first quarter of 2021, net loss achievable to the company for the first quarter of 2021, net loss achievable to the company for the first quarter of 2021.
For the first quarter to an internet to compare the two 1 million for the first quarter.
What's that.
Net loss attributable to the commentary for the first quarter and touch on it too where the fight for the bomb units compared with $1 2 million for the first quarter of two tier two into one basic and diluted loss per share as well.
$0.34 for the first quarter of 2022 compared with $0.08 for the first quarter of 2021.
So therefore since for the first quarter of two neutrolin to computer with.
As I said for the first quarter 'twenty to new work.
As of March 31, 2022, Everglades had approximately 41.7 million cash and cash equivalents, compared with approximately 56.6 million as of December 31, 2021. Everglades had a working capital of approximately 42.7 million.
As of March 31, shouldn't patronage to Evercore Ray had approximated 41 point instead of minions.
Cash and cash equivalents.
With approximately 56.6 million as of December so they want to stay tuned there won't ever glory had a working capital.
Our processing me today for the two point of sale.
$42.3 million as of March 31, 2022, and outstanding bank loans of approximately $69.3 million as of March 31, 2022.
For 2.3 million as opposed to the wall.
Why do they want to niche in a tube and outstanding bank loss of approximately 9.3 million as of March 31, 72, new tool.
Al.
Relentless efforts have been paying off with the 2022 first quarter results, and we look forward to further strengthening the fundamentals and increasing operation leverage to support the long-term profitability of our business.
And that's these defaults have been paying off with our two nutrients to fourth quarter results and we look forward to further strengthening the fundamentals and the increasing operation leverage to support the long term ability of I'll be the neat.
Thank you for participating in Evergrande's 2022 first quarter earnings call. We look forward to talking with you next quarter. If you have additional questions, please feel free to contact our IAR department. Goodbye. Thank you. Thank you, operator.
Thank you for participating in Evercore raised to Nintendo to fourth quarter, but its cool we look forward to talking with you last quarter. If you have additional questions. Please feel free to contact our IR Department Goodbye. Thank you.
Thank you operator.
Thank you.
Thank you. Thank you. Thank you.
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Yeah.
Yeah.
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