Erayak Power Solution Group Inc. Reports 44.5% Increase in Revenue, 15.7% Increase in Gross Profit in Fiscal Year 2022
May 18 2023 - 8:30AM
Erayak Power Solution Group Inc. (“Erayak” or the “Company”)
(Nasdaq: RAYA), a leading manufacturer, designer, and exporter of
high-quality products in the power supply industry, announced
financial results for the fiscal year ended December 31, 2022.
Erayak Chairman & CEO, Mr. Lingyi Kong
stated, "We are pleased to report our first earnings report as a
public company. Our financial results represent continued momentum
in our power solution products, particularly our generator
products, which delivered a strong sales result in Europe. This
bodes well in our pursuit of expanding our markets globally. We
will continue to execute our strategy and capitalize on the
positive demand trends for quality and reliable power solution
products, and further invest in our research and development
efforts to bring new and innovative products to the market.”
2022 Fiscal Year Financial
Highlights:
- Revenues increased by approximately $8.3 million, or 44.5%, to
approximately $26.9 million.
- Gross profit increased by approximately $0.9 million, or 15.7%,
to approximately $6.6 million.
- Net income increased by approximately 2.4% to $3.5 million, or
12.9% of revenue.
Operations Summary:
- Revenues increased by approximately $8.3 million, or 44.5%, to
approximately $26.9 million for the year ended December 31, 2022,
from approximately $18.6 million for the year ended December 31,
2021. The increase in revenues was primarily driven by the
continuous impact of the energy crisis that has significantly
increased demand for generators, especially in Europe. For the year
ended December 31, 2022, sales to domestic customers increased by
approximately $7.4 million, representing a 9.9% growth compared to
the previous fiscal year.
- Gross profit increased by approximately $0.9 million, or 15.7%,
to approximately $6.6 million for the year ended December 31, 2022,
from approximately $5.7 million for the year ended December 31,
2021. Gross profit margin was 24.6% for the year ended December 31,
2022, compared to 30.7% for the year ended December 31, 2021. The
decrease in gross margin was primarily due to the small profit but
quick turnover sales policy on generators, which accounted for
about 43.8% of total sales.
- General and administrative expenses increased by approximately
$0.2 million, or 34.6% to approximately $0.9 million for the year
ended December 31, 2022, compared to approximately $0.7 million for
the year ended December 31, 2021. The increase in G&A expenses
was mainly due to increased expenses in consulting services for
lean manufacturing and management improvement in factory
operation.
- Selling and marketing expenses increased by approximately $0.2
million, or 42.2%, to approximately $0.7 million for the year ended
December 31, 2022, compared to approximately $0.5 million for the
year ended December 31, 2021. The increase in selling and marketing
expenses was mainly due to the increased cost of testing and
certification on exported products.
- Research and development expenses decreased by approximately
$0.1 million, or 5.5%, to approximately $0.9 million for the year
ended December 31, 2022, compared to approximately $1.0 million for
the year ended December 31, 2021. The decrease in R&D expenses
was mainly due to decreased contract services and supplies,
depreciation, and other expenses related to R&D
activities.
- Net income increased by approximately $0.1 million, or 2.4%, to
approximately $3.5 million for the year ended December 31, 2022,
from approximately $3.4 million for the year ended December 31,
2021.
Cash Flows Summary:
- As of December 31, 2022, and 2021, Erayak had cash and cash
equivalents of $7.1 million and $5.2 million, respectively.
- Net cash used in operating activities for the fiscal year ended
December 31, 2022, was approximately $4.2 million, which was
primarily attributable to a net profit of approximately $3.5
million, adjusted for non-cash items for approximately $0.8 million
and adjustments for changes in working capital approximately $8.4
million.
- Net cash used in investing activities was approximately $4.9
million for the year ended December 31, 2022, which was primarily
attributable to the addition of fixed assets for production needs
during the fiscal year and an advance payment on potential overseas
land purchase for the purpose of business expansion in North
America.
- Net cash provided by financing activities was approximately
$11.3 million for the year ended December 31, 2022. It was
primarily attributable to the net proceeds from share issuances of
approximately $10.1 million.
Balance Sheet Summary:
- Total assets were $37.6 million as of December 31, 2022,
compared to $23.5 million as of December 31, 2021.
- Total liabilities were $18.3 million as of December 31, 2022,
compared to $16.6 million as of December 31, 2021.
- Total Shareholders’ equity was $19.3 million as of December 31,
2022, compared to $6.9 million as of December 31, 2021.
About Erayak Power Solution Group Inc.
Erayak specializes in the manufacturing,
research and development, and wholesale and retail of power
solution products. Erayak’s product portfolio includes sine wave
and off-grid inverters, inverter and gasoline generators, battery
and smart chargers, and custom-designed products. Our products are
used principally in agricultural and industrial vehicles,
recreational vehicles, electrical appliances, and outdoor living
products. Our goal is to be the premier power solutions brand and a
solution for mobile life and outdoor living. For more information,
visit www.erayakpower.com.
Safe Harbor Statement
This press release contains forward-looking
statements. In addition, from time to time, we or our
representatives may make forward-looking statements orally or in
writing. We base these forward-looking statements on our
expectations and projections about future events, which we derive
from the information currently available to us. Such
forward-looking statements relate to future events or our future
performance, including: our financial performance and projections;
our growth in revenue and earnings; and our business prospects and
opportunities. You can identify forward-looking statements by those
that are not historical in nature, particularly those that use
terminology such as “may,” “should,” “expects,” “anticipates,”
“contemplates,” “estimates,” “believes,” “plans,” “projected,”
“predicts,” “potential,” or “hopes” or the negative of these or
similar terms. In evaluating these forward-looking statements, you
should consider various factors, including: our ability to change
the direction of the Company; our ability to keep pace with new
technology and changing market needs; and the competitive
environment of our business. These and other factors may cause our
actual results to differ materially from any forward-looking
statement. Forward-looking statements are only predictions. The
forward-looking events discussed in this press release and other
statements made from time to time by us or our representatives, may
not occur, and actual events and results may differ materially and
are subject to risks, uncertainties, and assumptions about
us. We are not obligated to publicly update or revise any
forward-looking statement, whether as a result of uncertainties and
assumptions, the forward-looking events discussed in this press
release and other statements made from time to time by us or our
representatives might not occur.
Investor Relations
Contact:Skyline Corporate Communications Group, LLCLisa
Gray, Senior Account ManagerOne Rockefeller Plaza, 11th FloorNew
York, NY 10020Office: (646) 893-5835Email: lisa@skylineccg.com
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