Ever-Glory International Group, Inc.

CIK:0000943184|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
NET SALES	$ 106,437	$ 94,406	$ 235,022	$ 225,776
COST OF SALES	90,390	71,196	181,194	161,738
GROSS PROFIT	16,047	23,210	53,828	64,038
OPERATING EXPENSES
Selling expenses	12,792	14,443	38,153	44,495
General and administrative expenses	9,306	9,467	21,821	24,980
Total Operating Expenses	22,098	23,910	59,974	69,475
LOSS FROM OPERATIONS	(6,051)	(700)	(6,146)	(5,437)
OTHER (EXPENSES) INCOME
Interest income	22	176	299	928
Interest expense	(524)	(1,218)	(1,458)	(1,909)
Government subsidy	193	340	397	842
(Loss) gain from changes in fair values of investments	(915)	(123)	(1,587)	2,151
Other income	317	253	885	1,027
Total Other (Expenses) Income, Net	(907)	(572)	(1,464)	3,039
LOSS BEFORE INCOME TAX EXPENSE	(6,958)	(1,272)	(7,610)	(2,398)
Income tax benefit (expense)	835	(1,945)	(1,202)	(3,760)
NET LOSS	(6,123)	(3,217)	(8,812)	(6,158)
Foreign currency translation (loss) gain	(6,336)	(1,062)	(14,915)	1,020
COMPREHENSIVE LOSS	$ (12,459)	$ (4,279)	$ (23,727)	$ (5,138)
LOSS PER SHARE
Basic and diluted (in Dollars per share)	$ (0.41)	$ (0.22)	$ (0.59)	$ (0.42)
Weighted average number of shares outstanding, basic and diluted (in Shares)	14,817,053	14,811,073	14,815,077	14,810,585

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (8,812)	$ (6,158)
Depreciation and amortization	5,256	4,384
Loss from sale of property and equipment	141	590
Provision of bad debt allowance	3,943	676
Provision for obsolete inventories	5,296	842
Changes in fair value of trading securities	1,010	(200)
Changes in fair value of investments	577	(1,951)
Deferred income tax	42	644
Stock-based compensation	10	10
Accounts receivable	(20,335)	(8,613)
Inventories	4,353	(13,949)
Value added tax receivable	(671)	(1,235)
Other receivables and prepaid expenses	(434)	(1,096)
Advances on inventory purchases	3,317	586
Amounts due from related parties	211	(1,514)
Accounts payable	229	5,930
Accounts payable and other payables- related parties	1,779	(3,204)
Other payables and accrued liabilities	(5,124)	(3,332)
Value added and other taxes payable	891	(360)
Income tax payable	(81)	831
Net cash used in operating activities	(8,402)	(27,119)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment and intangible asset	(3,645)	(5,109)
Net proceeds from sale (purchase) of trading securities	52	(1,077)
Investment payment of other non-current assets	(3,028)	(773)
Net cash used in investing activities	(6,621)	(6,959)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank loans	56,018	56,110
Repayment of bank loans	(54,504)	(54,565)
Repurchase of common stock	(37)
Net collection of amounts due from related party (equity)		1,630
Net cash provided by financing activities	1,477	3,175
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(11,912)	692
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(25,458)	(30,211)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD	97,341	121,723
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD	71,883	91,512
Cash and Cash Equivalents	32,177	48,336
Restricted cash	39,706	43,176
Total	71,883	91,512
Cash paid during the period for:
Interest	1,458	1,909
Income taxes	1,175	2,272
SUPPLEMENTAL SCHEDULE OF NON-CASH ACTIVITIES:
Common stock issued for compensation	$ 10	$ 10

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
CURRENT ASSETS
Cash and cash equivalents	$ 32,177	$ 56,573
Restricted cash	39,706	40,768
Trading securities	2,189	3,251
Accounts receivable, net	79,875	69,859
Inventories	49,038	63,841
Advances on inventory purchases	4,260	8,179
Value added tax receivable	2,144	1,693
Other receivables and prepaid expenses	6,049	6,345
Amounts due from related parties		220
Total Current Assets	215,438	250,729
NON-CURRENT ASSETS
Equity security investment	4,566	5,682
Intangible assets, net	4,211	4,794
Property and equipment, net	31,148	36,340
Operating lease right-of-use assets	38,905	50,077
Deferred tax assets	768	899
Other non-current assets	3,520	784
Total Non-Current Assets	83,118	98,576
TOTAL ASSETS	298,556	349,305
CURRENT LIABILITIES
Bank loans	63,360	68,992
Accounts payable	59,894	67,930
Accounts payable and other payables – related parties	2,907	1,332
Other payables and accrued liabilities	14,166	18,531
Value added and other taxes payable	842	999
Income tax payable	1,107	334
Current operating lease liabilities	31,538	41,633
Total Current Liabilities	173,814	199,751
Non-current operating lease liabilities	7,538	8,596
TOTAL LIABILITIES	181,352	208,347
COMMITMENTS AND CONTINGENCIES (Note 9)
STOCKHOLDERS’ EQUITY
Common stock ($0.001 par value, authorized 50,000,000 shares, 14,818,006 and 14,655,926 issued and outstanding as of September 30, 2022, respectively, 14,812,312 and 14,664,978 issued and outstanding as of December 31, 2021, respectively)	15	15
Additional paid-in capital	3,670	3,660
Retained earnings	99,398	108,210
Statutory reserve	21,245	21,245
Treasury stock (at cost,162,080 and 147,334 shares at September 30, 2022 and December 31, 2021, respectively)	(400)	(363)
Accumulated other comprehensive (loss) income	(6,724)	8,191
Total Equity	117,204	140,958
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 298,556	$ 349,305