NANJING, China, Nov. 13,
2019 /PRNewswire/ -- Ever-Glory International Group,
Inc. (the "Company" or "Ever-Glory") (NASDAQ: EVK), a retailer of
branded fashion apparel and a leading global apparel supply chain
solution provider, reported its financial results today for the
third quarter ended September 30,
2019.
Mr. Yihua Kang, Chairman,
President and Chief Executive Officer of Ever-Glory, said, "During
the third quarter, we maintained our focus on developing the retail
business through our multi-brand strategy and store network
optimization initiative, while improving our wholesale business by
upgrading customer portfolio and enhancing our account
receivables."
"During the third quarter of 2019, our retail brands continue to
attract new customers and retain existing customers by focusing on
design, quality and value," Mr. Kang continued. "Following the
remodeling or relocation of 89 stores during 2019, we operated a
nationwide network of 1,157 stores as of September 30, 2019."
"Looking at our wholesale business, we maintained focus on
upgrading customer portfolio to reduce credit risk and improve
margin in light of weak micro-environment and enhancing our account
receivables. Going forward, we'll implement a stricter client
evaluation system and remain diligent in our account receivables
collection. We believe the enduring strength of our wholesale
business will support its long-term profitability," concluded Mr. Kang.
Mr. Jason Jiansong Wang, Chief
Financial Officer of Ever-Glory, added, "The third quarter results,
are coupled with our ability to increase operating leverage. Going
forward, we remain confident in the long-term prospects of our
business and we will continue implementing our margin enhancement
and cost control measures to further strengthen the profitability
of our business."
Third Quarter 2019 Financial Results
Total sales for the third quarter of 2019 were
$113.3 million, a decrease of 9.7%
from $125.5 million in the third
quarter of 2018. This decrease was primarily driven by a 20.6%
decrease in our retail business and a 4.6% decrease in wholesale
business.
Sales for the Company's branded fashion apparel retail
division decreased by 20.6% to $31.6
million for the third quarter of 2019, compared with
$39.8 million for the third quarter
of 2018. This decrease was primarily due to a decrease in the
amounts of stores and same-store sales. The Company had 1,157
retail stores as of September 30,
2019, compared with 1,396 retail stores as of September 30, 2018.
Sales for the Company's wholesale division decreased
by 4.6% to $81.7 million for the
third quarter of 2019, compared with $85.7
million for the third quarter of 2018. This decrease was
primarily attributable to a decrease in sales in Mainland China,
Hong Kong, Germany and Europe-Other partially offset by
an increase in sales in United Kingdom, Japan and United
States.
Total gross profit for the third quarter of 2019
decreased by 19.0% to $24.4 million,
compared with $30.1 million for the
third quarter of 2018. Total gross margin decreased to 21.5% from
24.0% for the third quarter of 2018.
Gross profit for the retail business decreased by
28.9% to $14.1 million for the third
quarter of 2019, compared with $19.8
million for the third quarter of 2018. Gross margin was
44.7%, compared to 49.8% for the third quarter of 2018.
Gross profit for the wholesale business increased by
0.2% to $10.3 million for the third
quarter of 2019, compared with $10.2
million for the third quarter of 2018. Gross margin
increased to 12.6% from 12.0% for the third quarter of 2018.
Selling expenses for the third quarter of 2019
increased by 2.0% to $17.9 million,
or 15.8% of total sales, compared with $17.6
million, or 14.6% of total sales for the third quarter of
2018. The increase was attributable to the marketing expenses
associated with the promotion of the retail brand.
General and administrative expenses for the third
quarter of 2019 decreased by 11.0% to $7.6
million, or 6.7% of total sales, compared with $8.5 million, or 7.1% of total sales for the
third quarter of 2018. The decrease was mainly attributable to the
decline in number of stores.
Income (Loss) from operations for the third quarter
of 2019 decreased by 129.6% to ($1.2)
million compared with $4.0
million for the third quarter of 2018.
Net income (Loss) attributable to the Company for the
third quarter of 2019 was ($1.1)
million compared with $3.3
million for the third quarter of 2018. Basic and diluted
earnings (loss) per share were ($0.07) for the third quarter of 2019 compared
with $0.22 for the third quarter of
2018.
Balance Sheet
As of September 30, 2019,
Ever-Glory had approximately $45.8
million of cash and cash equivalents, compared with
approximately $47.0 million as of
December 31, 2018. Ever-Glory had
working capital of approximately $54.0
million as of September 30,
2019, and outstanding bank loans of approximately
$35.5 million as of September 30, 2019.
Conference Call
The Company will hold a conference call at 7:00 a.m. Eastern Time on November 13, 2019 (8:00 p.m. Beijing Time on November 13, 2019). Listeners can access the
conference call by dialing +1-866-548-4713 or + 1-323-794-2093 and
using the access code 2080253. The conference call will also be
webcast live over the Internet and can be accessed at the Company's
website at http://www.everglorygroup.com.
A replay of the conference call will be available from
10:00 a.m. Eastern Time on
November 13 through 11:59 p.m. Eastern Time on November 20, by dialing +1-844-512-2921 or
+1-412-317-6671 and using the access code 2080253.
About Ever-Glory International Group, Inc.
Based in Nanjing, China, Ever-Glory International Group, Inc. is
a retailer of branded fashion apparel and a leading global apparel
supply chain solution provider. Ever-Glory is the first Chinese
apparel Company listed on the American Stock Exchange (now named as
NYSE MKT) in July 2008 and then
transferred to The NASDAQ Global Market on December 31, 2015. Ever-Glory offers apparel to
woman in China under its own
brands "La go go", "Velwin", "Sea To Sky" and "idole". Ever-Glory
is also a leading global apparel supply chain solution provider
with a focus on middle-to-high end casual wear, outerwear, and
sportswear brands. Ever-Glory services a number of well-known
brands and retail stores by providing a complete set of supply
chain management services, including: fabric development and
design, sampling, sourcing, quality control, manufacturing,
logistics, customs clearance and distribution.
Forward-Looking Statements
Certain statements in this release and other written or oral
statements made by or on behalf of Ever-Glory International Group,
Inc. (the "Company") are "forward looking statements" within the
meaning of the federal securities laws. Statements regarding future
events and developments and the Company's future performance, as
well as management's expectations, beliefs, plans, estimates or
projections relating to the future, are forward-looking statements
within the meaning of these laws. The forward looking statements
are subject to a number of risks and uncertainties including,
without limitation, market acceptance of the Company's products and
offerings, development and expansion of the Company's wholesale and
retail operations, the Company's continued access to capital,
currency exchange rate fluctuation and other risks and
uncertainties. The actual results the Company achieves (including,
without limitation, the results stemming from the future
implementation of the Company's strategies and the revenue, net
income and new retail store projections set forth herein) may
differ materially from those contemplated by any forward-looking
statements due to such risks and uncertainties (many of which are
beyond the Company's control). These statements are based on
management's current expectations and speak only as of the date of
such statements. Readers should carefully review the risks and
uncertainties described in the Company's latest Annual Report on
Form 10-K and other documents that the Company files from time to
time with the U.S. Securities and Exchange Commission. The Company
undertakes no obligation to publicly update any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by applicable law.
EVER-GLORY
INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands of
U.S. Dollars, except share and per share data or otherwise
stated)
|
AS OF SEPTEMBER
30, 2019 AND DECEMBER 31, 2018 (UNAUDITED)
|
|
|
|
2019
|
|
2018
|
ASSETS
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
45,837
|
|
$
|
47,012
|
Accounts receivable,
net
|
|
|
83,863
|
|
|
86,527
|
Inventories
|
|
|
65,288
|
|
|
65,929
|
Advances on inventory
purchases
|
|
|
9,358
|
|
|
6,420
|
Value added tax
receivable
|
|
|
3,799
|
|
|
2,580
|
Other receivables and
prepaid expenses
|
|
|
7,563
|
|
|
10,204
|
Amounts due from
related parties
|
|
|
123
|
|
|
192
|
Total Current
Assets
|
|
|
215,831
|
|
|
218,864
|
|
|
|
|
|
|
|
NONCURRENT
ASSETS
|
|
|
|
|
|
|
Intangible assets,
net
|
|
|
4,711
|
|
|
4,962
|
Property and
equipment, net
|
|
|
27,615
|
|
|
28,445
|
Operating lease
right-of-use assets
|
|
|
35,226
|
|
|
-
|
Deferred tax
assets
|
|
|
1,862
|
|
|
-
|
Total Non-Current
Assets
|
|
|
69,414
|
|
|
33,407
|
TOTAL
ASSETS
|
|
$
|
285,245
|
|
$
|
252,271
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
Bank loans
|
|
$
|
35,492
|
|
$
|
29,497
|
Accounts
payable
|
|
|
77,172
|
|
|
78,412
|
Accounts payable and
other payables – related parties
|
|
|
4,355
|
|
|
4,756
|
Other payables and
accrued liabilities
|
|
|
15,230
|
|
|
21,958
|
Value added and other
taxes payable
|
|
|
530
|
|
|
2,569
|
Income tax
payable
|
|
|
2,249
|
|
|
1,569
|
Current operating
lease liabilities
|
|
|
26,757
|
|
|
-
|
Total Current
Liabilities
|
|
|
161,785
|
|
|
138,761
|
|
|
|
|
|
|
|
NONCURRENT
LIABILITIES
|
|
|
|
|
|
|
Deferred tax
liabilities
|
|
|
-
|
|
|
354
|
Non-current operating
lease liabilities
|
|
|
8,504
|
|
|
-
|
TOTAL
LIABILITIES
|
|
|
170,289
|
|
|
139,115
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Preferred stock
($0.001 par value, authorized 5,000,000 shares, no shares
issued and outstanding)
|
|
|
-
|
|
|
-
|
Common stock ($0.001
par value, authorized 50,000,000 shares, 14,801,770
and 14,798,198 shares issued and
outstanding As of September 30, 2019
and December 31, 2018,
respectively)
|
|
|
15
|
|
|
15
|
Additional paid-in
capital
|
|
|
3,640
|
|
|
3,627
|
Retained
earnings
|
|
|
106,173
|
|
|
105,914
|
Statutory
reserve
|
|
|
19,083
|
|
|
19,083
|
Accumulated other
comprehensive income
|
|
|
(5,822)
|
|
|
(3,578)
|
Amounts due from
related party
|
|
|
(6,648)
|
|
|
(10,354)
|
Total equity
attributable to stockholders of the Company
|
|
|
116,441
|
|
|
114,707
|
Noncontrolling
interest
|
|
|
(1,485)
|
|
|
(1,551)
|
Total
Equity
|
|
|
114,956
|
|
|
113,156
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
285,245
|
|
$
|
252,271
|
EVER-GLORY
INTERNATIONAL GROUP, INC. AND SUBSIDIARIES CONDENSED
|
CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)
|
(In thousands of
U.S. Dollars, except share and per share data or otherwise
stated)
|
FOR THE THREE AND
NINE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018
(UNAUDITED)
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
NET
SALES
|
|
$
|
113,326
|
|
$
|
125,480
|
|
$
|
278,598
|
|
$
|
306,806
|
COST OF
SALES
|
|
|
88,967
|
|
|
95,419
|
|
|
195,895
|
|
|
210,858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
|
24,359
|
|
|
30,061
|
|
|
82,703
|
|
|
95,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
17,944
|
|
|
17,588
|
|
|
58,651
|
|
|
62,405
|
General and
administrative expenses
|
|
|
7,584
|
|
|
8,519
|
|
|
22,450
|
|
|
25,015
|
Total Operating
Expenses
|
|
|
25,528
|
|
|
26,107
|
|
|
81,101
|
|
|
87,420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS)INCOME FROM
OPERATIONS
|
|
|
(1,169)
|
|
|
3,954
|
|
|
1,602
|
|
|
8,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSES)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
215
|
|
|
307
|
|
|
699
|
|
|
1,003
|
Interest
expense
|
|
|
(265)
|
|
|
(278)
|
|
|
(1,036)
|
|
|
(1,202)
|
Other
income
|
|
|
502
|
|
|
101
|
|
|
1,616
|
|
|
1,102
|
Total Other
Income, Net
|
|
|
452
|
|
|
130
|
|
|
1,279
|
|
|
903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) INCOME
BEFORE INCOME TAX
EXPENSE
|
|
|
(717)
|
|
|
4,084
|
|
|
2,881
|
|
|
9,431
|
Income tax
expense
|
|
|
(387)
|
|
|
(908)
|
|
|
(2,667)
|
|
|
(2,949)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS)
INCOME
|
|
|
(1,104)
|
|
|
3,176
|
|
|
214
|
|
|
6,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to the non-controlling
interest
|
|
|
28
|
|
|
140
|
|
|
46
|
|
|
425
|
NET (LOSS) INCOME
ATTRIBUTABLE TO THE
COMPANY
|
|
|
(1,076)
|
|
|
3,316
|
|
|
260
|
|
|
6,907
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS)
INCOME
|
|
$
|
(1,104)
|
|
$
|
3,176
|
|
$
|
214
|
|
$
|
6,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation (loss) gain
|
|
|
(3,729)
|
|
|
(3,674)
|
|
|
(2,244)
|
|
|
(5,742)
|
Unrealized loss of
derivative contracts
designated as cash flow hedge
|
|
|
-
|
|
|
(614)
|
|
|
-
|
|
|
(1,083)
|
COMPREHENSIVE
(LOSS) INCOME
|
|
|
(4,833)
|
|
|
(1,112)
|
|
|
(2,030)
|
|
|
(343)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive (loss)
income attributable to the
non-controlling interest
|
|
|
15
|
|
|
57
|
|
|
67
|
|
|
366
|
COMPREHENSIVE
(LOSS)
INCOME ATTRIBUTABLE TO THE
COMPANY
|
|
$
|
(4,818)
|
|
$
|
(1,055)
|
|
$
|
(1,963)
|
|
$
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE
ATTRIBUTABLE TO
THE COMPANY'S STOCKHOLDERS
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.07)
|
|
$
|
0.22
|
|
$
|
0.02
|
|
$
|
0.47
|
Weighted average
number of shares
outstanding Basic and diluted
|
|
|
14,801,770
|
|
|
14,798,198
|
|
|
14,801,770
|
|
|
14,796,527
|
EVER-GLORY
INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF EQUITY
|
(In thousands of
U.S. Dollars, except share and per share data or otherwise
stated)
|
FOR THE THREE AND
NINE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
Retained
Earnings
|
|
|
|
|
|
|
|
|
Total
equity
|
|
|
|
|
|
|
|
|
|
Common
Stock
|
|
|
Additional
paid-in
|
|
|
|
|
|
Statutory
|
|
|
Accumulated
other
Comprehensive
|
|
|
Amounts
due from
related
|
|
|
attributable
to stockholders of the
|
|
|
Non-
controlling
|
|
|
Total
|
|
|
|
Shares
|
|
|
Amount
|
|
|
capital
|
|
|
Unrestricted
|
|
|
reserve
|
|
|
income
|
|
|
party
|
|
|
Company
|
|
|
Interest
|
|
|
equity
|
|
Balance at
January 1, 2019
|
|
|
14,798,198
|
|
|
$
|
15
|
|
|
$
|
3,627
|
|
|
$
|
105,914
|
|
|
$
|
19,083
|
|
|
$
|
(3,578)
|
|
|
$
|
(10,354)
|
|
|
$
|
114,707
|
|
|
|
(1,551)
|
|
|
$
|
113,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock issued
for compensation
|
|
|
1,942
|
|
|
|
0.004
|
|
|
|
8
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8
|
|
|
|
|
|
|
|
8
|
|
Net income
(loss)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(521)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(521)
|
|
|
|
66
|
|
|
|
(455)
|
|
Net cash
received from
related party
under counter
guarantee agreement
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,101
|
|
|
|
1,101
|
|
|
|
-
|
|
|
|
1,101
|
|
Foreign currency
translation gain
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,972
|
|
|
|
-
|
|
|
|
3,972
|
|
|
|
34
|
|
|
|
4,006
|
|
Balance at
March 31, 2019
|
|
|
14,800,140
|
|
|
|
15
|
|
|
|
3,635
|
|
|
|
105,393
|
|
|
|
19,083
|
|
|
|
394
|
|
|
|
(9,253)
|
|
|
|
119,267
|
|
|
|
(1,451)
|
|
|
|
117,816
|
|
Net income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,856
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,856
|
|
|
|
(83)
|
|
|
|
1,773
|
|
Net cash
received from
related
party
under counter
guarantee agreement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,390
|
|
|
|
1,390
|
|
|
|
|
|
|
|
1,390
|
|
Foreign currency
translation loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,487)
|
|
|
|
|
|
|
|
(2,487)
|
|
|
|
34
|
|
|
|
(2,453)
|
|
Balance at
June 30, 2019
|
|
|
14,800,140
|
|
|
$
|
15
|
|
|
$
|
3,635
|
|
|
$
|
107,249
|
|
|
$
|
19,083
|
|
|
$
|
(2,093)
|
|
|
$
|
(7,863)
|
|
|
$
|
120,026
|
|
|
|
(1,500)
|
|
|
$
|
118,526
|
|
Stock issued
for compensation
|
|
|
1,630
|
|
|
|
0.002
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5
|
|
|
|
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,076)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,076)
|
|
|
|
(28)
|
|
|
|
(1,104)
|
|
Net cash
advanced to
related party
under counter
guarantee agreement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,215
|
|
|
|
1,215
|
|
|
|
|
|
|
|
1,215
|
|
Foreign currency
translation loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,729)
|
|
|
|
|
|
|
|
(3,729)
|
|
|
|
43
|
|
|
|
(3,686)
|
|
Balance at
September 30, 2019
|
|
|
14,801,770
|
|
|
$
|
15
|
|
|
$
|
3,640
|
|
|
$
|
106,173
|
|
|
$
|
19,083
|
|
|
$
|
(5,822)
|
|
|
$
|
(6,648)
|
|
|
$
|
116,441
|
|
|
|
(1,485)
|
|
|
$
|
114,956
|
|
|
|
|
|
|
|
|
|
|
|
Retained
Earnings
|
|
|
Accumulated
|
|
|
Amounts
|
|
|
Total
equity
attributable
|
|
|
|
|
|
|
|
|
|
Common
Stock
|
|
|
Additional
paid-in
|
|
|
|
|
|
Statutory
|
|
|
other Comprehensive
|
|
|
due
from related
|
|
|
to
stockholders of the
|
|
|
Non-
controlling
|
|
|
Total
|
|
|
|
Shares
|
|
|
Amount
|
|
|
capital
|
|
|
Unrestricted
|
|
|
reserve
|
|
|
income
|
|
|
party
|
|
|
Company
|
|
|
Interest
|
|
|
equity
|
|
Balance at
January 1, 2018
|
|
|
14,795,992
|
|
|
$
|
15
|
|
|
$
|
3,620
|
|
|
$
|
95,195
|
|
|
$
|
17,794
|
|
|
$
|
2,585
|
|
|
$
|
(15,449)
|
|
|
$
|
103,760
|
|
|
|
(1,062)
|
|
|
$
|
102,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
815
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
815
|
|
|
|
(228)
|
|
|
|
587
|
|
Net cash
paid to
related party
under counter
guarantee agreement
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(8,479)
|
|
|
|
(8,479)
|
|
|
|
-
|
|
|
|
(8,479)
|
|
Foreign currency
translation gain (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,023
|
|
|
|
-
|
|
|
|
4,023
|
|
|
|
(42)
|
|
|
|
3,981
|
|
Balance at
March 31, 2018
|
|
|
14,795,992
|
|
|
|
15
|
|
|
|
3,620
|
|
|
|
96,010
|
|
|
|
17,794
|
|
|
|
6,608
|
|
|
|
(23,928)
|
|
|
|
100,119
|
|
|
|
(1,332)
|
|
|
|
98,787
|
|
Net income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,776
|
|
|
|
(57)
|
|
|
|
2,719
|
|
Net cash
advanced to
related party
under counter
guarantee agreement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,339
|
|
|
|
2,339
|
|
|
|
|
|
|
|
2,339
|
|
Foreign currency
translation loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6,656)
|
|
|
|
|
|
|
|
(6,656)
|
|
|
|
70
|
|
|
|
(6,586)
|
|
Balance at
June 30, 2018
|
|
|
14,795,992
|
|
|
$
|
15
|
|
|
$
|
3,620
|
|
|
$
|
98,786
|
|
|
$
|
17,794
|
|
|
$
|
(48)
|
|
|
$
|
(21,589)
|
|
|
$
|
98,578
|
|
|
|
(1,319)
|
|
|
$
|
97,259
|
|
Stock issued
for compensation
|
|
|
2,206
|
|
|
|
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
|
|
|
|
|
|
|
|
7
|
|
Net income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,316
|
|
|
|
(140)
|
|
|
|
3,176
|
|
Net cash
advanced to
related party
under counter
guarantee agreement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,337
|
|
|
|
1,337
|
|
|
|
|
|
|
|
1,337
|
|
Foreign currency
translation loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,192)
|
|
|
|
|
|
|
|
(4,192)
|
|
|
|
31
|
|
|
|
(4,161)
|
|
Balance at
September 30, 2018
|
|
|
14,798,198
|
|
|
$
|
15
|
|
|
$
|
3,627
|
|
|
$
|
102,102
|
|
|
$
|
17,794
|
|
|
$
|
(4,240)
|
|
|
$
|
(20,252)
|
|
|
$
|
99,046
|
|
|
|
(1,428)
|
|
|
$
|
97,618
|
|
EVER-GLORY
INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands of
U.S. Dollars, except share and per share data or otherwise
stated)
|
FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 2019 AND 2018 (UNAUDITED)
|
|
|
|
2019
|
|
|
2018
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net income
|
|
$
|
214
|
|
|
$
|
6,482
|
|
Adjustments to
reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
6,824
|
|
|
|
6,523
|
|
Loss from sale of
property and equipment
|
|
|
16
|
|
|
|
102
|
|
Provision of bad debt
allowance
|
|
|
820
|
|
|
|
-
|
|
Provision for
obsolete inventories
|
|
|
3,846
|
|
|
|
2,697
|
|
Deferred income
tax
|
|
|
(2,388)
|
|
|
|
(1,706)
|
|
Stock-based
compensation
|
|
|
12
|
|
|
|
7
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
312
|
|
|
|
(15,012)
|
|
Inventories
|
|
|
(4,979)
|
|
|
|
(32,831)
|
|
Value added tax
receivable
|
|
|
(281)
|
|
|
|
430
|
|
Other receivables and
prepaid expenses
|
|
|
966
|
|
|
|
(19,792)
|
|
Advances on inventory
purchases
|
|
|
(3,214)
|
|
|
|
(8,199)
|
|
Amounts due from
related parties
|
|
|
16
|
|
|
|
4
|
|
Accounts
payable
|
|
|
6,253
|
|
|
|
29,547
|
|
Accounts payable and
other payables- related parties
|
|
|
(692)
|
|
|
|
153
|
|
Other payables and
accrued liabilities
|
|
|
(10,594)
|
|
|
|
14,054
|
|
Value added and other
taxes payable
|
|
|
(4,120)
|
|
|
|
(3,892)
|
|
Income tax
payable
|
|
|
746
|
|
|
|
311
|
|
Net cash used in
operating activities
|
|
|
(6,243)
|
|
|
|
(21,122)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(6,555)
|
|
|
|
(9,144)
|
|
Net cash used in
investing activities
|
|
|
(6,555)
|
|
|
|
(9,144)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Proceeds from bank
loans
|
|
|
42,570
|
|
|
|
39,872
|
|
Repayment of bank
loans
|
|
|
(35,620)
|
|
|
|
(40,225)
|
|
Repayment of loans
from related party
|
|
|
10,692
|
|
|
|
3,232
|
|
Advances to related
party
|
|
|
(6,755)
|
|
|
|
(8,183)
|
|
Net cash used in
financing activities
|
|
|
10,887
|
|
|
|
(5,304)
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH
|
|
|
(650)
|
|
|
|
(2,827)
|
|
|
|
|
|
|
|
|
|
|
NET DECREASE IN
CASH AND CASH EQUIVALENTS
|
|
|
(2,561)
|
|
|
|
(38,397)
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS AT BEGINNING OF PERIOD
|
|
|
47,012
|
|
|
|
62,876
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS AT END OF PERIOD
|
|
$
|
44,451
|
|
|
$
|
24,479
|
|
RESTRICTED
CASH
|
|
$
|
1,386
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid during
the period for:
|
|
|
|
|
|
|
|
|
Interest
|
|
$
|
1,036
|
|
|
$
|
1,202
|
|
Income
taxes
|
|
$
|
4,196
|
|
|
$
|
4,427
|
|
View original
content:http://www.prnewswire.com/news-releases/ever-glory-reports-third-quarter-2019-financial-results-300957228.html
SOURCE Ever-Glory International Group, Inc.