Financial Highlights for the Fiscal Year 2022
For the Fiscal Years Ended | |||||||||||||
(in $ millions, except earnings per share; differences due to rounding) | 2022 | 2021 | % Change | ||||||||||
Sales | $ | 76.4 | $ | 70.3 | 8.7 | % | |||||||
Gross profit | 11.1 | 11.3 | 1.6 | % | |||||||||
Gross margin | 14.9 | % | 16.1 | % | (1.2 percentage points) | ||||||||
Net income | 1.9 | 2.6 | (23.8 | %) | |||||||||
Net earnings per share – Basic and Diluted | 0.15 | 0.21 | (28.6 | %) |
- Revenue increased by 8.7% to
$76.4 million For the year endedSeptember 30, 2022 from$70.3 million for the year endedSeptember 30, 2021 . - Gross profit decreased by 1.6% to$11.1 million for the year ended
September 30, 2022 , from$11.3 million for the year endedSeptember 30, 2021 . - Net income for the fiscal year ended
September 30, 2022 was$1.9 million compared to net income of$2.6 million for the fiscal year endedSeptember 30, 2021 ,
Financial Results for the Fiscal year 2022
Sales
For the year ended
- During the fiscal year 2022, the Company observed an increase of raw materials price, especially the price of nickel which is an important component of stainless steel. To minimize the impact the rise of raw material price, we increased our weighted average selling price (“ASP”) during the fiscal year 2022.
- As a result of domestic shortage of construction materials and recovery of construction market, the Company’s domestic sales increased over 21.9% compared to the last fiscal year. The Company’s international sales revenue during fiscal year 2022 amounted to approximately
$11.7 million , a decrease of 31.6% compared to last fiscal year.
Gross profit
Our gross profit decreased by approximately
Selling, general and administrative (“SGA”) expenses
Selling, general and administrative expenses decreased by approximately
Research and development (“R&D”) expenses
Research and development expenses increased by approximately
Net Income
As a result of the factors described above, the Company’s net income for the fiscal year ended
Recent development
On
On
About
Forward-Looking Statement
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may, “will, “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company’s goals and strategies; the Company’s future business development; financial condition and results of operations; product and service demand and acceptance; reputation and brand; the impact of competition and pricing; changes in technology; government regulations; fluctuations in general economic and business conditions in
For more information, please contact:
The Company:
IR Department
Email: IR@huadigroup.com
Investor Relations:
Email: services@wealthfsllc.com
CONSOLIDATED BALANCE SHEETS
AS OF
(IN
2022 | 2021 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 13,195,999 | $ | 15,350,197 | ||||
Restricted cash | 1,347,246 | 1,304,518 | ||||||
Accounts receivable, net of allowance for doubtful accounts of | 19,658,188 | 21,297,261 | ||||||
Accounts receivable – related parties | - | 3,981,697 | ||||||
Notes receivable | 1,410,613 | 2,593,018 | ||||||
Inventories | 24,867,708 | 22,721,265 | ||||||
Advances to suppliers | 3,369,468 | 3,806,420 | ||||||
Advances to suppliers – related parties | - | 5,550,504 | ||||||
Other receivables | 552,633 | 475,793 | ||||||
Total current assets | 64,401,855 | 77,080,673 | ||||||
Property, plant and equipment, net | 5,989,136 | 7,208,705 | ||||||
Land use rights, net | 1,069,891 | 1,234,636 | ||||||
Long-term investments | 12,836,916 | 14,171,928 | ||||||
Deferred tax assets | 338,729 | 549,921 | ||||||
TOTAL ASSETS | $ | 84,636,527 | $ | 100,245,863 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 919,492 | $ | 1,713,716 | ||||
Accounts payable - related parties | 2,439,105 | - | ||||||
Accrued expenses and other current liabilities | 1,771,245 | 2,048,979 | ||||||
Notes payable | 548,253 | 2,312,556 | ||||||
Advances from customers | 4,401,440 | 4,667,084 | ||||||
Due to related parties | 606,986 | 514,913 | ||||||
Short-term borrowings | 11,888,662 | 33,459,043 | ||||||
Tax payable | 3,126,778 | 4,051,158 | ||||||
Total current liabilities | 25,701,961 | 48,767,449 | ||||||
Long-term borrowing | 9,300,625 | - | ||||||
TOTAL LIABILITIES | 35,002,586 | 48,767,449 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
Shareholders’ equity: | ||||||||
Common stock, | 2,648 | 2,625 | ||||||
Additional paid-in capital | 44,211,313 | 44,211,336 | ||||||
Statutory surplus reserves | 494,223 | 255,705 | ||||||
Retained earnings | 3,802,265 | 2,116,581 | ||||||
Accumulated other comprehensive income | 873,059 | 4,627,661 | ||||||
Total equity attributable to | 49,383,508 | 51,213,908 | ||||||
Equity attributable to non-controlling interests | 250,433 | 264,506 | ||||||
Total shareholders’ equity | 49,633,941 | 51,478,414 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 84,636,527 | $ | 100,245,863 |
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE YEARS ENDED
(IN
2022 | 2021 | 2020 | |||||||||||||||||
Sales | $ | 74,702,625 | $ | 67,006,655 | $ | 57,767,081 | |||||||||||||
Production service revenue | 1,663,523 | 3,239,956 | 1,370,197 | ||||||||||||||||
Cost of sales | (65,230,521 | ) | (58,926,675 | ) | (48,473,061 | ) | |||||||||||||
Gross profit | 11,135,627 | 11,319,936 | 10,664,217 | ||||||||||||||||
Operating expenses: | |||||||||||||||||||
Selling, general and administrative | 6,452,173 | 6,684,410 | 3,938,511 | ||||||||||||||||
Research and development | 2,330,913 | 2,057,547 | 2,120,649 | ||||||||||||||||
Total operating expenses | 8,783,086 | 8,741,957 | 6,059,160 | ||||||||||||||||
Operating income | 2,352,541 | 2,577,979 | 4,605,057 | ||||||||||||||||
Other income (expenses): | |||||||||||||||||||
Interest expenses, net | (1,629,642 | ) | (2,058,461 | ) | (2,162,589 | ) | |||||||||||||
Other income, net | 1,398,173 | 1,948,527 | 1,132,780 | ||||||||||||||||
Total other expenses, net | (231,469 | ) | (109,934 | ) | (1,029,809 | ) | |||||||||||||
Income before income taxes | 2,121,071 | 2,468,045 | 3,575,248 | ||||||||||||||||
Income tax benefit/(provision) | (173,017 | ) | 89,000 | (218,949 | ) | ||||||||||||||
Net income | 1,948,054 | 2,557,045 | 3,356,299 | ||||||||||||||||
Net income attributable to non-controlling interests | 23,852 | 25,570 | 33,563 | ||||||||||||||||
Net income attributable to | $ | 1,924,202 | $ | 2,531,475 | $ | 3,322,736 | |||||||||||||
Net income | $ | 1,948,054 | $ | 2,557,045 | $ | 3,356,299 | |||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Foreign currency translation adjustment | (3,792,527 | ) | 1,452,328 | 1,225,301 | |||||||||||||||
Total comprehensive income | (1,844,473 | ) | 4,009,373 | 4,581,600 | |||||||||||||||
Comprehensive income attributable to non-controlling interests | (14,073 | ) | 40,093 | 45,816 | |||||||||||||||
Comprehensive income attributable to | $ | (1,830,400 | ) | $ | 3,969,280 | $ | 4,535,784 | ||||||||||||
Basic and diluted earnings per share | |||||||||||||||||||
Basic | $ | 0.15 | $ | 0.21 | $ | 0.34 | |||||||||||||
Diluted | $ | 0.15 | $ | 0.21 | $ | 0.34 | |||||||||||||
Weighted average numbers of common shares outstanding | |||||||||||||||||||
Basic | 13,239,182 | 12,116,079 | 10,000,000 | ||||||||||||||||
Diluted | 13,239,182 | 12,116,079 | 10,000,000 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED
(IN
2022 | 2021 | 2020 | |||||||||||||||||||||||
Cash Flows from Operating Activities: | |||||||||||||||||||||||||
Net income | $ | 1,948,054 | $ | 2,557,045 | $ | 3,356,299 | |||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||||
Depreciation | 792,888 | 735,333 | 723,586 | ||||||||||||||||||||||
Amortization | 32,087 | 32,349 | 30,048 | ||||||||||||||||||||||
Bad debt expense reverse | (564,283 | ) | (153,676 | ) | - | ||||||||||||||||||||
Deferred tax benefits (expenses) | 173,017 | (89,000 | ) | - | |||||||||||||||||||||
Loss (gain) on disposal of fixed assets | - | 1,767 | (654,138 | ) | |||||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||||
Accounts receivable | 4,080,722 | (8,823,928 | ) | (260,202 | ) | ||||||||||||||||||||
Notes receivable | 1,018,351 | (1,987,871 | ) | (10,332 | ) | ||||||||||||||||||||
Inventories | (4,653,336 | ) | (756,588 | ) | (1,987,737 | ) | |||||||||||||||||||
Advances to suppliers | 19,092 | (2,727,661 | ) | 366,087 | |||||||||||||||||||||
Advances to suppliers – related party | 5,457,504 | 78,283 | 180,333 | ||||||||||||||||||||||
Other receivables | (132,062 | ) | 2,006,975 | 3,303,687 | |||||||||||||||||||||
Accounts payable | 1,960,756 | (238,638 | ) | 650,988 | |||||||||||||||||||||
Accrued expenses and other current liabilities | (91,961 | ) | 372,155 | (387,358 | ) | ||||||||||||||||||||
Notes payable | (1,678,680 | ) | 707,021 | (2,301,375 | ) | ||||||||||||||||||||
Advances from customers | 188,878 | 3,040,106 | 222,805 | ||||||||||||||||||||||
Tax payable | (589,163 | ) | (402,478 | ) | (28,401 | ) | |||||||||||||||||||
Net cash provided by (used in) operating activities | 8,027,856 | (5,648,806 | ) | 3,204,290 | |||||||||||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||||||
Purchases of property, plant and equipment | (206,175 | ) | (917,539 | ) | (664,996 | ) | |||||||||||||||||||
Proceeds from disposition of property, plant and equipment | - | 20,285 | 724,782 | ||||||||||||||||||||||
Net cash (used in) provided by investing activities | (206,175 | ) | (897,254 | ) | 59,786 | ||||||||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||||||
Proceeds from short-term borrowings | 21,719,160 | 35,820,322 | 38,620,077 | ||||||||||||||||||||||
Repayments on short-term borrowings | (41,712,446 | ) | (35,265,552 | ) | (40,488,791 | ) | |||||||||||||||||||
Proceeds from long-term borrowings | 10,095,831 | - | - | ||||||||||||||||||||||
Proceeds from stock offering, net of offering costs | - | 21,680,341 | - | ||||||||||||||||||||||
Advances from related parties | 305,226 | 6,223,875 | 3,068,965 | ||||||||||||||||||||||
Repayments to related parties | (152,628 | ) | (7,182,813 | ) | (5,889,557 | ) | |||||||||||||||||||
Net cash (used in) provided by financing activities | (9,744,857 | ) | 21,276,173 | (4,689,306 | ) | ||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (188,294 | ) | 219,398 | 113,762 | |||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents and restricted cash | (2,111,470 | ) | 14,949,511 | (1,311,468 | ) | ||||||||||||||||||||
Cash and cash equivalents and restricted cash at the beginning of year | 16,654,715 | 1,705,204 | 3,016,672 | ||||||||||||||||||||||
Cash and cash equivalents and restricted cash at the end of year | $ | 14,543,245 | $ | 16,654,715 | $ | 1,705,204 | |||||||||||||||||||
Supplemental disclosures of cash flows information: | |||||||||||||||||||||||||
Cash paid for income taxes | $ | 64,016 | $ | 480,495 | $ | 135,262 | |||||||||||||||||||
Cash paid for interest | $ | 1,151,567 | $ | 1,550,082 | 1,951,622 |
Source:
2023 GlobeNewswire, Inc., source