Q3 2022 Ever-Glory International Group Inc Earnings Call

Greetings and welcome to the ever Glory International Group third quarter 2022 earnings call.

At this time all participants are in a listen only mode.

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As a reminder, this conference is being recorded I would now like to turn the conference over to your host.

Jim King will.

Thank you you may begin.

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How long is the risks and uncertainties.

As such the Companys results may differ materially from the views expressed today.

Further information regarding this and other risks and uncertainties are included in the Companys annual report on Form 10-Q for the third record under either September 20th 2022 and other talk two months of field.

The U S Securities and Exchange Commission.

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Our film and obligations to us.

Popped out and forward looking statements.

Except as required under applicable law as a reminder, this conference call is being recorded.

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Gloria.

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I will now turn the call.

To me so.

Thank you MS School, good morning to those in the U S and good evening to those participants in Asia. So thank you for joining our surgery Coltart 2022 earnings conference call. We are very pleased to announce that the 10 to 22 third quarter results we saw.

<unk> punch seven persons cultural Unculture inquiries seem to a Tor sales, notably we achieved called her own called her improvement in sales of 33% for our wholesale businesses and our wholesale business increased 2.4.

Persons in gross profit compared with the three months ended September 30, 20 country right.

The company at the company's retail business is still affected by COVID-19 in China and the pressure of the economic downturn hungry to cite our brass continued to attract new customers and to retain it.

<unk> customers fall by focusing on design quality and value.

Our inventory management stretched they continually improves the balance between our inventory turnover and our diligent cost control measures for the students and the profitability of our business, we opened 19 stores and closed.

125 stars in non mall phase of 2022 as of September 30th 2022 we operate H a nationwide network of over 774 stores compared with 800.

It's none taste three stores as of September 30th 2021.

While we still see strong demand for our products at our stores and to our retail stores. We continue to see upjohn tastes in the E Commerce say area.

Mobile our mobile platforms, such as our La go go stores, Tamil and Jim don't then.

Calm I used as a stretch Jake and they affect your way Fars to drive customer engagement encourage cross channel shocking reduce all tough season inventories and create a unique and a different customer experience too.

Our loyal customer base, we will actively respond to the changes in the external noise, Tom make environment as for our wholesale business. The company has enhanced its X 10 sales product development and the supply chain management.

Per tides as Vale S network of high quality reliability reliable and cost efficient sourcing channels and a manual factories English station our markets research certain center problem is our wholesale customers.

We've seen depth research and Enel.

Analysis in the areas, including brand positioning fashion trends, New mature road development and the new style design going forward, we still continue to focus on enhancing our product development capabilities and Oh.

My team the customer base with our long term abortion of of being a leading supply chain solutions provider for a major two high end apparel brands, both seen in mainland China and worldwide.

This concludes my comments I will now walk through our financial results for the third quarter of 'twenty 'twenty. Two. Please note that all numbers discussed today are in U S dollars unless otherwise noted sociocultural 2022 financial result.

Total sales for the third quarter of 222 or 106 point for meeting our inquiries of 10 take a 12.7% from 19 four point for mailing in the third quarter of 2021.

This increase was primarily driven by a 33% inquiries that you know our wholesale business, partially offset by a 26.4% decrease in great retail business.

<unk> for the company's wholesale division increased by SAR tastes, 3% to 82.7 meeting for the third quarter of 2022 compared with the six day to appoint two meeting for the third quarter of 220 Watt. This inquiry.

This was primarily attributable to increase the sales in mainland China, Hong Kong, the United Kingdom and to that.

And other European markets, partially offset fault decrease the sales in Japan, and the United statements.

Sales for the company's branded fashion apparel retail division decreased by 26.4% to 10 taste 3.7 mailing for the third quarter of 222, compared with 32.2 meeting for those.

Third quarter of 'twenty 'twenty. One this decrease was primarily due to a decrease in same store sales they'll company operates H 707, tasteful retail stores as all of a September search a 2022 compares with 893.

Two stars as of September 30th 2021.

Total gross profit for the third quarter of 2022 they crashed by 30 points Nonperson to 16, meaning compared with 23.2 mailing for the third quarter of 221 total gross margin for the third quarter of 'twenty to 'twenty two.

They increased to 15 point to 1% from 24.6% for the third quarter of 2020 Watt.

Gross profit for the wholesale business increased by 2.4% to 10.

Pontus filing for the third quarter of 222 compares with 10.2 meeting for the third quarter of 221 gross margin for the third quarter of a 222 day, Chris that you tell one 6% from 616.

0.4% for the third quarter of 2021.

Gross profit for the retail business decreased by 57% to six mailing for the third quarter of 222 compares always searching mailing for the third quarter of 2021 will smile and for the third quarter of 2022 whereas the 20.

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Selling expenses for the third quarter of 2022 decreased by 11 point far persons to tell 0.8 meeting I'll tell a percent of total sales compared with 14.4 meeting all 15.3 person.

Total sales for the third quarter of 2021 the decrease was attributable.

The decrease the average salaries and decrease the business trips general and administrative expenses for the third quarter of 2022 decreased by 1.7% to 9.3 meeting or 8.7% Salvator.

<unk> sales compared with 9.5 meeting or 10% of total sales for the search it for the third quarter of 'twenty 'twenty. One the decrease was attributable to the decrease of the population type expenses and the depreciation of RMB.

Loss from operations was 6.1 meeting for the first quarter of 2022 compared to 0.7 meeting for the third quarter of 2021.

Balance sheet as of September 30th 2022 ever Glory had a approximately 30 or so.

Two points to meeting of cash and cash equivalents compared with approximately 56.6 meeting as of December 31, 'twenty 'twenty, what ever Glory had a working capital of approximately 41 points.

Six meeting as of September Sauteed, 'twenty, 'twenty, two and outstanding bank loans of approximately six tastes three points for a meeting as of September Sauteed 2022 our Richland efforts have been paying off with the 220 to 30.

Quarterly results and we look forward to further strengthening the fundamentals and the increasing operating.

On average to support the long term profits.

The visibility of our business.

Thank you for participating in Africa, Lori's, 2022 surgery quarter earnings call. We look forward to talking with you next quarter. If you have additional questions. Please feel free to contact our IR Department.

Thank you operator goodbye.

Thank you. This concludes today's conference call you may disconnect. Your lines at this time. Thank you for your participation.

Okay.