Half-Year Ended
- Revenue declined by 31% to
$60.09 million for the six months endedMarch 31, 2022 , from$87.37 million for the same period in 2021; - Gross margin grew to 14% for the six months ended
March 31, 2022 , from 12% for the same period in 2021; - Operating income decreased by 23% year-over-year to
$1.63 million for the six months endedMarch 31, 2022 , from$2.13 million for the same period in 2021; - Net income was
$1.20 million for the six months endedMarch 31, 2022 , compared to$1.45 million for the same period in 2021; - Earnings per share was
$0.11 for the six months endedMarch 31, 2022 , compared to$0.14 for the same period in 2021; - Cash and cash equivalents grew to
$3.53 million atMarch 31, 2022 , from$2.14 million atMarch 31, 2021 .
For Six Months Ended | ||||||||||
(in $ millions, except earnings per share; differences due to rounding) | 2022 | 2021 | % Change | |||||||
Revenue | (31%) | |||||||||
Gross profit | (15%) | |||||||||
Gross margin | 14% | 12% | 2% | |||||||
Operating income | (23%) | |||||||||
Net income | (17%) | |||||||||
Net earnings per share – Basic and Diluted | (21%) | |||||||||
Mr.
Results of Operations
Revenues
The following table presents revenue by major categories for the six months ended
For the Six Months Ended | ||||||||||||||||
($ millions, differences due to rounding) | ||||||||||||||||
Revenue Category | Sales Amount | As % of Sales | Sales Amount | As % of Sales | ||||||||||||
Display modules | 47 | % | 60 | % | ||||||||||||
Polarizers | 23.75 | 40 | % | 32.60 | 38 | % | ||||||||||
Research and development services | 4.96 | 8 | % | - | - | |||||||||||
Others | 3.43 | 5 | % | 2.08 | 2 | % | ||||||||||
Total | 100 | % | 100 | % | ||||||||||||
Revenues decreased by approximately
- Revenue from display modules decreased by approximately
$24.72 million or 47%, to approximated$27.96 million for the six months endedMarch 31, 2022 from approximately$52.68 million for the six months endedMarch 31, 2021 . Based on seasonality in the Company’s business and cyclical nature of its industry, the Company believes that the market demand will gradually recover in the second half of 2022 and believes the Company’s sales of display modules will boost in the next 12 to 18 months. - For the six months ended
March 31, 2022 and 2021, revenue generated from the polarizers were approximately$23.75 million and$32.60 million , respectively, representing a decrease of approximately$8.85 million or 27%. Due to the long duration of the epidemic, customer demands for consumer electronics was met in the first two years of the epidemic, and such demand decreased in the six months endedMarch 31, 2022 which resulted in the decrease in sales of the Company’s polarizers. - Revenues from repair services increased by approximately
$1.34 million , or 64%, to approximately$3.43 million for the six months endedMarch 31, 2022 from approximately$2.08 million for the six months endedMarch 31, 2021 . The Company extended repair services customer base also to those who did not purchase display panel products during the reporting period. - For the six months ended
March 31, 2022 , revenue generated from the Company’s new research and development services was approximately$4.96 million , representing 8% of its total revenues.
The following table lists the Company’s revenues by geographic region for the six months ended
For the Six Months Ended | ||||||||||||||||
($ millions, differences due to rounding) | ||||||||||||||||
Country | Sales Amount | As % of Sales | Sales Amount | As % of Sales | ||||||||||||
Mainland | 92 | % | 78 | % | ||||||||||||
5.06 | 8 | % | 18.59 | 21 | % | |||||||||||
- | - | 0.82 | 1 | % | ||||||||||||
Total | 100 | % | 100 | % | ||||||||||||
Cost of revenues
Cost of revenues decreased by approximately
Gross profit margin
Overall gross profit margin was 14% for the six months ended
Selling and marketing expenses
Selling and marketing expenses decreased by approximately
General and administrative expenses
General and administrative expenses increased by approximately
Research and development expenses
The Company’s research and development expenses decreased by approximately
Net income
As a result of the foregoing, the Company recorded net income of
Cash and cash equivalents
Cash and cash equivalents were
During the six months ended
In an effort to increase its profits as well as taking full advantage of its resources and expertise in the display panel industry, the Company began to manufacture and sell display products for end users, such as commercial display and consumer electronics products, which generally have a higher profit margin than the Company’s display module products. The Company has strengthened its efforts to market end products, including, but not limited to, hiring of more salespersons, providing training for the sales force targeting end users and increasing expenditures on electronics exhibitions and advertisements.
In addition, during the six months ended
About
Founded in 2010, the Company is a supplier of display modules and polarizers in
For more information, please visit http://www.austinelec.com/.
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. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding lingering effects of the Covid-19 pandemic on the Company’s businesses, including disruptions to supply chain, the Company’s ability to deliver customer orders timely, ability to raise capital, ability to develop and sell new products and services, ability to execute its business plans, fluctuations in earnings, fluctuations in foreign exchange rates , the Company’s ability to attract and retain skilled professionals, client concentration, and general economic conditions affecting the Company’s industry and other factors discussed in the “Risk Factors” section of the registration statement filed with the
For more information, please contact:
Investor Relations
Ms.
Email: IR@changqingconsulting.com
Phone: +1 470-940-3308 (from
+86 13811768559 (from
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF
(IN
2022 (Unaudited) | 2021 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 3,532,137 | $ | 684,335 | ||||
Accounts receivable, net of allowance for doubtful accounts of | 15,566,930 | 25,551,527 | ||||||
Notes receivable | - | 101,361 | ||||||
Inventories, net | 20,130,483 | 18,686,680 | ||||||
Advances to suppliers, net | 3,594,013 | 7,300,770 | ||||||
Tax receivables | 451,876 | 443,173 | ||||||
Prepaid expenses and other receivables | 2,017,856 | 1,426,790 | ||||||
Total Current Assets | 45,293,295 | 54,194,636 | ||||||
Property, plant and equipment, net | 20,042,299 | 19,368,333 | ||||||
Land use rights, net | 1,482,271 | 1,497,579 | ||||||
Intangible assets, net | 86,803 | 127,129 | ||||||
Deferred tax assets, net | 535,882 | 673,179 | ||||||
Right-of-use lease assets | 65,995 | 105,625 | ||||||
TOTAL ASSETS | $ | 67,506,545 | $ | 75,966,481 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 11,521,214 | $ | 17,618,986 | ||||
Accrued expenses and other current liabilities | 2,703,622 | 2,632,370 | ||||||
Advances from customers | 3,536,052 | 4,506,016 | ||||||
Due to related parties | 1,325,067 | 3,197,070 | ||||||
Short-term borrowings | 31,578,834 | 32,417,418 | ||||||
Operating lease liabilities – current | 113,319 | 193,161 | ||||||
Total Current Liabilities | 50,778,108 | 60,565,021 | ||||||
Operating lease liabilities – non-current | - | 5,583 | ||||||
Long-term liability | 45,358 | 194,022 | ||||||
TOTAL LIABILITIES | 50,823,466 | 60,764,626 | ||||||
COMMITMENTS AND CONTINGENCIES | - | - | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
Common stock, | 1,013 | 1,013 | ||||||
Additional paid-in capital | 10,856,169 | 10,856,169 | ||||||
Statutory surplus reserves | 1,345,154 | 1,033,653 | ||||||
Retained earnings | 3,636,468 | 2,748,068 | ||||||
Accumulated other comprehensive loss | (57,743 | ) | (316,017 | ) | ||||
Total Equity Attributable to | 15,781,061 | 14,322,886 | ||||||
Equity attributable to non-controlling interests | 902,018 | 878,969 | ||||||
Total Shareholders’ Equity | 16,683,079 | 15,201,855 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 67,506,545 | $ | 75,966,481 | ||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED
(IN
For the six months ended | |||||||||
2022 | 2021 | ||||||||
Revenues | $ | 60,094,661 | $ | 87,371,413 | |||||
Cost of revenues | (51,460,589 | ) | (77,240,808 | ) | |||||
Gross profit | 8,634,072 | 10,130,605 | |||||||
Operating expenses: | |||||||||
Selling and marketing expenses | (1,419,660 | ) | (2,408,156 | ) | |||||
General and administrative expenses | (3,550,877 | ) | (2,693,945 | ) | |||||
Research and development costs | (2,028,038 | ) | (2,999,596 | ) | |||||
Gain (Loss) from disposal of property, plant and equipment | (1,242 | ) | 97,037 | ||||||
Total operating expenses | (6,999,817 | ) | (8,004,660 | ) | |||||
Operating income | 1,911,951 | 2,125,945 | |||||||
Other income (expenses): | |||||||||
Interest income (expense), net | (741,667 | ) | (456,512 | ) | |||||
Other income (expenses), net | 615,587 | 33,703 | |||||||
Total other expenses, net | (126,080 | ) | (422,809 | ) | |||||
Income before income taxes | 1,508,175 | 1,703,136 | |||||||
Income tax benefit (provision) | (306,515 | ) | (249,065 | ) | |||||
Net income | 1,201,660 | 1,454,071 | |||||||
Net income attributable to non-controlling interests | 1,759 | 23,916 | |||||||
Net income attributable to | 1,199,901 | 1,430,155 | |||||||
Net income | 1,201,660 | 1,454,071 | |||||||
Other comprehensive income (loss): | |||||||||
Foreign currency translation adjustment | 279,564 | 498,759 | |||||||
Comprehensive income | 1,481,224 | 1,952,830 | |||||||
Comprehensive income attributable to non-controlling interests | 23,049 | 46,225 | |||||||
Comprehensive income attributable to | 1,458,175 | 1,906,605 | |||||||
Earnings per ordinary share | |||||||||
Basic and diluted | $ | 0.12 | $ | 0.14 | |||||
Weighted average number of ordinary shares outstanding | |||||||||
Basic and diluted | 10,125,000 | 10,125,000 | |||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED
(IN
For the six months ended | |||||||||
2022 | 2021 | ||||||||
Cash Flows from Operating Activities: | |||||||||
Net income | $ | 1,201,660 | $ | 1,454,071 | |||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||
Depreciation expense | 1,033,422 | 862,105 | |||||||
Amortization expense of land use rights | 40,600 | 46,019 | |||||||
Amortization expense of intangible assets | 96,747 | 127,204 | |||||||
Amortization expense of right-of-use assets | 55,175 | - | |||||||
Bad debt expense for accounts receivable | - | 417,329 | |||||||
Deferred tax assets, net | 137,297 | 40,357 | |||||||
Gain (Loss) from disposal of property, plant and equipment | 1,242 | (97,037 | ) | ||||||
Imputed interest for short-term borrowings from third party individuals | - | 113,590 | |||||||
Changes in operating assets and liabilities: | |||||||||
Accounts receivable | 10,355,021 | (5,044,840 | ) | ||||||
Notes receivable | 102,539 | 2,220,062 | |||||||
Inventories | (1,131,570 | ) | 2,640,321 | ||||||
Advances to suppliers | 3,808,562 | (5,001,290 | ) | ||||||
Prepaid expenses and other receivables | (564,954 | ) | (574,920 | ) | |||||
Accounts payable | (6,356,916 | ) | (2,665,409 | ) | |||||
Accrued expenses and other current liabilities | 377,896 | 3,262,822 | |||||||
Advances from customers | (1,039,026 | ) | 564,776 | ||||||
Income tax payable | (1,419 | ) | 196,668 | ||||||
Operating lease liabilities | (102,275 | ) | - | ||||||
Net cash (used in) provided by operating activities | 8,014,001 | (1,438,172 | ) | ||||||
Cash Flows from Investing Activities: | |||||||||
Purchases of property, plant and equipment | (1,388,888 | ) | (4,345,716 | ) | |||||
Disposal of property, plant and equipment | - | 1,186,172 | |||||||
Purchases of intangible assets | (55,422 | ) | (12,217 | ) | |||||
Net cash used in investing activities | (1,444,310 | ) | (3,171,761 | ) | |||||
Cash Flows from Financing Activities: | |||||||||
Proceeds from long-term liability | (501,136 | ) | 366,267 | ||||||
Proceeds from short-term bank borrowings | 7,245,544 | 5,593,200 | |||||||
Repayments on short-term bank borrowings | (5,322,322 | ) | (4,898,819 | ) | |||||
Proceeds from short-term borrowings from third party individuals | 888,624 | 2,917,926 | |||||||
Repayments on short-term borrowings from third party individuals | (4,176,289 | ) | (2,988,518 | ) | |||||
Due to related parties | (1,915,409 | ) | 366,267 | ||||||
Net cash provided by financing activities | (3,780,988 | ) | 1,356,323 | ||||||
Effect of changes in currency exchange rates | 59,099 | 35,903 | |||||||
Net (decrease) increase in cash and cash equivalents | 2,847,802 | (3,217,707 | ) | ||||||
Cash, cash equivalents and restricted cash at the beginning of year | 684,335 | 5,361,522 | |||||||
Cash and cash equivalents and restricted cash at the end of year | $ | 3,532,137 | 2,143,815 | ||||||
Reconciliation of cash, cash equivalents and restricted cash to the Consolidated Balance Sheets | |||||||||
Cash and cash equivalents | $ | 3,532,137 | 2,143,815 | ||||||
Restricted cash | — | — | |||||||
Total cash, cash equivalents and restricted cash | $ | 3,532,137 | 2,143,815 | ||||||
Supplemental disclosures of cash flows information: | |||||||||
Cash paid for income taxes | $ | 29,468 | $ | 139,312 | |||||
Cash paid for interest | $ | 418,108 | $ | 343,346 |
Source:
2022 GlobeNewswire, Inc., source