BEIJING, Feb. 6, 2024
/PRNewswire/ -- Huadi International Group Co., Ltd. ("HUDI" or the
"Company") (NASDAQ: HUDI), a leading developer and manufacturer of
industrial stainless steel seamless pipes and tubes products in
China, today announced its
financial results for the fiscal year ended September 30, 2023.
Financial Highlights for the Fiscal Year 2023
|
|
For the Fiscal Years
Ended September 30
|
|
(in $
millions, except earnings per share;
differences due to rounding)
|
|
2023
|
|
|
2022
|
|
|
%
Change
|
|
Revenue
|
|
$
|
84.33
|
|
|
$
|
76.37
|
|
|
10.42 %
|
|
Gross profit
|
|
|
12.36
|
|
|
|
11.14
|
|
|
10.96 %
|
|
Gross profit
margin
|
|
|
14.65 %
|
|
|
|
14.91 %
|
|
|
(0.26) percentage
points
|
|
Net income
|
|
|
3.30
|
|
|
|
1.95
|
|
|
69.16 %
|
|
Net earnings per share
– Basic and Diluted
|
|
|
0.23
|
|
|
|
0.15
|
|
|
53.3 %
|
- Revenue increased by 10.42% to $84.33
million for the year ended September
30, 2023 from $76.37 million
for the year ended September 30,
2022, marking the highest revenue in Company's history.
- Gross profit increased by 10.96% to $12.36 million for the year ended September 30, 2023, from $11.14 million for the year ended September 30, 2022.
- Net income for the fiscal year ended September 30, 2023, was $3.30 million, or net earnings of $0.23 per share. This is compared to net income
attributable to HUDI of $1.95
million, or $0.15 per share,
for the year ended September 30,
2022, an increase in profit of approximately $1.35 million, or approximately 69.16%.
- Cash and cash equivalents as of September 30, 2023 was $20.19 million, compared to $13.20 million as of September 30, 2022
Mr. Jianping Xiang, Chief
Financial Officer of the Company, commented: "As we gather to
reflect on the culmination of the fiscal year 2023, we are pleased
to report a commendable achievement for HUDI - a remarkable 10.42%
increase in total revenue to $84.33
million which marked a new record for HUDI, 69.16% increase
in net income, cash and cash equivalents totaled $20.19 million as of the year end, despite the
challenging backdrop of the global COVID-19 pandemic. Since the end
of control measures on COVID-19 in December
2022, our dedicated team has navigated unprecedented hurdles
with resilience and determination. We recognize the profound impact
of these external factors and extend our thoughts to those
affected.
We are delighted to share that our strategic decision to extend
our business in the domestic market in China has proven instrumental in propelling
our sales growth. This expansion aligns with our commitment to
meeting the evolving needs of our customers and diversifying our
market presence. The robust performance of our team and the success
of this strategic move underscore the strength of our business
model and the agility of our operations.
I want to express my gratitude to our entire HUDI family for
their unwavering commitment during these challenging times. As we
move forward, we remain steadfast in our dedication to delivering
value to our shareholders, adapting to the dynamic business
landscape, and pursuing avenues for sustainable growth."
Financial Results for the Fiscal year 2023
Revenue
The following table presents revenue by geographic areas for the
years ended September 30, 2023 and
2022 respectively.
|
(differences due to
rounding)
|
|
September 30,
2023
|
|
|
Sales Amount
(In USD)
|
|
|
As % of
Sales
|
|
Top 5 Geographic
Areas:
|
|
|
|
|
|
|
China
|
|
$
|
73.74
|
|
|
|
87.45 %
|
|
USA
|
|
|
7.15
|
|
|
|
8.47 %
|
|
India
|
|
|
1.60
|
|
|
|
1.89 %
|
|
United Mexican
States
|
|
|
0.58
|
|
|
|
0.68 %
|
|
Australia
|
|
|
0.39
|
|
|
|
0.46 %
|
|
Other foreign
countries
|
|
|
0.88
|
|
|
|
1.05 %
|
|
(differences due to
rounding)
|
|
September 30,
2022
|
|
|
Sales Amount
(In USD)
|
|
|
|
As% of
Sales
|
|
Top 5 Geographic
Areas:
|
|
|
|
|
|
|
|
China
|
|
$
|
64.79
|
|
|
|
84.69 %
|
|
USA
|
|
|
7.63
|
|
|
|
9.97 %
|
|
Taiwan
|
|
|
1.30
|
|
|
|
1.70 %
|
|
Australia
|
|
|
1.19
|
|
|
|
1.56 %
|
|
Marshall
Islands
|
|
|
0.73
|
|
|
|
0.95 %
|
|
Other foreign
countries
|
|
|
0.87
|
|
|
|
1.13 %
|
For the year ended September 30,
2023, revenue increased by approximately $7.96 million, or 10.42%, to approximately
$84.33 million from approximately
$76.37 million for the year ended
September 30, 2022. The increase in
revenues was primarily driven by the following factors:
1) Due to the end of
control measures on COVID-19 since 2022 December, construction
market recovered and we delivered several orders delayed by
mentioned control measures.
2) We were extending
business in domestic market in China. Our domestic sales increased over 13.8%
year-over-year to $73.7 million which
was offset by a slight decrease of 9.6%, year -over-year, of our
international sales revenue.
Gross profit
Gross profit increased by approximately $1.22 million, or 10.96%, to approximately
$12.36 million for the year
ended September 30, 2023 from approximately $11.14 million for the year ended September
30, 2022. Gross profit margin was 14.65% for the year ended
September 30, 2023, compared to
14.91% for the year ended September 30,
2022. The slight decrease in gross profit margin was mainly
due to increased raw material prices, which drove up the cost of
sales, while weighted ASP remained stable as we were extending
domestic markets.
Selling, general and administrative ("SGA")
expenses
Selling, general and administrative expenses increased by
approximately $0.89 million, or
13.73%, to approximately $7.34
million for the year ended September
30, 2023 as compared to approximately $6.45 million for the year ended September 30, 2022. The increase in SGA expenses
was mainly due to the following: i) $0.43
million bad debt expense provision during the year ended
September 30, 2023, while
$0.56 million bad debt recovery
during the year ended September 30,
2022; and ii) increased freight and agency expenses related
to the domestic market development.
Research and development ("R&D") expenses
Research and development expenses increased by approximately
$0.22 million, or 9.43%, to
approximately $2.55 million for the
year ended September 30, 2023 as
compared to approximately $2.33
million for the year ended September
30, 2022. Management is committed to expending research and
development activities continually for more orders.
Interest income (expense)
Interest expense (net) decreased by approximately $1.33 million, or 81.82% to approximately
$0.30 million for the year ended
September 30, 2023, from
approximately $1.63 million for the
year ended September 30, 2022. The
decrease in interest expense was mainly due to decreased bank loan
the Company borrowed from the banks.
Other income and expense
The Company's net other income was approximately $0.70 million, which was mainly attributable to
dividend income received from invested company, government grant
received and rental income during fiscal year 2023.The Company's
net other income was approximately $1.40
million, which was mainly attributable to dividend income
and government grant received during fiscal year 2022.
Net income
As a result of the factors described above, the Company's net
income for the fiscal year ended September
30, 2023, was approximately $3.30
million compared to net profit of $1.95 million for the fiscal year ended
September 30, 2022, an increase in
profit of approximately $1.35
million, or approximately 69.16%.
Cash and Cash Equivalents
As of September 30, 2023 and 2022,
the Company had cash and cash equivalents of $20.19 million and $13.20
million, respectively.
About Huadi International Group Co., Ltd.
Huadi International Group Co., Ltd. is a leading manufacturer of
industrial stainless steel seamless pipes and tubes products with
extensive distribution facilities and network for over twenty
provinces in China and across
international steel pipes industry. It offers a broad range of
products exported to twenty countries and regions, such as
the United States, Mexico, Thailand, Australia, Argentina, Taiwan, India, the
Philippines, UAE, Canada,
and Germany. Its products are
widely used in the thermal and nuclear power plants, automotive,
oil and gas, agricultural and industrial equipment, chemical
engineering, and electricity markets. For more information about
the Company, please visit http://www.huadi.cc.
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 China and assumptions underlying or related to
any of the foregoing and other risks contained in reports filed by
the Company with the SEC. For these reasons, among others,
investors are cautioned not to place undue reliance upon any
forward-looking statements in this press release. Additional
factors are discussed in the Company's filings with the SEC, which
are available for review at www.sec.gov. The Company undertakes no
obligation to publicly revise these forward‐looking statements to
reflect events or circumstances that arise after the date
hereof.
For more information, please contact:
The Company:
IR Department
Email: IR@huadigroup.com
Investor Relations
WFS Investor Relations Inc.
Janice Wang, Managing Partner
Email: services@wealthfsllc.com
Phone: +86 13811768599
+1 628 283 9214
|
HUADI INTERNATIONAL
GROUP CO., LTD.
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
AS OF SEPTEMBER 30,
2023 AND 2022
|
|
(IN U.S. DOLLARS,
EXCEPT SHARE DATA)
|
|
|
|
|
2023
|
|
|
2022
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
20,192,460
|
|
|
$
|
13,195,999
|
|
|
Restricted
cash
|
|
|
769,233
|
|
|
|
1,347,246
|
|
|
Accounts receivable,
net of allowance for doubtful accounts of
$2,391,641 and $2,197,396, respectively
|
|
|
22,630,275
|
|
|
|
19,658,188
|
|
|
Notes
receivable
|
|
|
7,661,035
|
|
|
|
1,410,613
|
|
|
Inventories
|
|
|
26,706,629
|
|
|
|
24,867,708
|
|
|
Advances to suppliers,
net
|
|
|
2,105,902
|
|
|
|
3,369,468
|
|
|
Other
receivables
|
|
|
171,182
|
|
|
|
552,633
|
|
|
Total current
assets
|
|
|
80,236,716
|
|
|
|
64,401,855
|
|
|
Property, plant and
equipment, net
|
|
|
5,354,997
|
|
|
|
5,989,136
|
|
|
Land use rights,
net
|
|
|
4,312,349
|
|
|
|
1,069,891
|
|
|
Long-term
investments
|
|
|
12,515,817
|
|
|
|
12,836,916
|
|
|
Deferred tax
assets
|
|
|
392,713
|
|
|
|
338,729
|
|
|
Other noncurrent
assets
|
|
|
198,194
|
|
|
|
-
|
|
|
TOTAL
ASSETS
|
|
$
|
103,010,786
|
|
|
$
|
84,636,527
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
3,434,031
|
|
|
$
|
919,492
|
|
|
Accounts payable -
related parties
|
|
|
3,692,394
|
|
|
|
2,439,105
|
|
|
Accrued expenses and
other current liabilities
|
|
|
1,946,325
|
|
|
|
1,771,245
|
|
|
Notes
payable
|
|
|
1,632,401
|
|
|
|
548,253
|
|
|
Advances from
customers
|
|
|
2,393,021
|
|
|
|
4,005,942
|
|
|
Advances from customers
- related parties
|
|
|
1,015,696
|
|
|
|
395,498
|
|
|
Due to related parties
– current portion
|
|
|
-
|
|
|
|
606,986
|
|
|
Short-term
borrowings
|
|
|
4,442,870
|
|
|
|
11,888,662
|
|
|
Long-term borrowings –
current portion
|
|
|
43,860
|
|
|
|
-
|
|
|
Tax payable
|
|
|
4,009,849
|
|
|
|
3,126,778
|
|
|
Total current
liabilities
|
|
|
22,610,447
|
|
|
|
25,701,961
|
|
|
Long-term
borrowings
|
|
|
5,398,849
|
|
|
|
9,300,625
|
|
|
Due to related parties
- noncurrent portion
|
|
|
317,680
|
|
|
|
-
|
|
|
TOTAL
LIABILITIES
|
|
|
28,326,976
|
|
|
|
35,002,586
|
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTIGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
Common stock,
$0.0002 par value, 250,000,000 shares
authorized, 14,259,182 and 13,239,182 shares
issued
and outstanding, respectively
|
|
|
2,852
|
|
|
|
2,648
|
|
|
Additional paid-in
capital
|
|
|
67,280,709
|
|
|
|
44,211,313
|
|
|
Statutory surplus
reserves
|
|
|
874,518
|
|
|
|
494,223
|
|
|
Retained
earnings
|
|
|
6,679,692
|
|
|
|
3,802,265
|
|
|
Accumulated other
comprehensive (loss) income
|
|
|
(428,779)
|
|
|
|
873,059
|
|
|
Total equity
attributable to Huadi International Group Co., Ltd.
|
|
|
74,408,992
|
|
|
|
49,383,508
|
|
|
Equity attributable to
non-controlling interests
|
|
|
274,818
|
|
|
|
250,433
|
|
|
Total shareholders'
equity
|
|
|
74,683,810
|
|
|
|
49,633,941
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
|
103,010,786
|
|
|
$
|
84,636,527
|
|
|
HUADI INTERNATIONAL
GROUP CO., LTD.
|
|
CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)
|
|
FOR THE YEARS ENDED
SEPTEMBER 30, 2023, 2022 AND 2021
|
|
(IN U.S. DOLLARS,
EXCEPT SHARE DATA)
|
|
|
|
|
2023
|
|
|
2022
|
|
|
2021
|
|
|
Sales
|
|
$
|
83,113,259
|
|
|
$
|
74,702,625
|
|
|
$
|
67,006,655
|
|
|
Production service
revenue
|
|
|
1,219,041
|
|
|
|
1,663,523
|
|
|
|
3,239,956
|
|
|
Cost of
sales
|
|
|
(71,976,696)
|
|
|
|
(65,230,521)
|
|
|
|
(58,926,675)
|
|
|
Gross
profit
|
|
|
12,355,604
|
|
|
|
11,135,627
|
|
|
|
11,319,936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
7,338,320
|
|
|
|
6,452,173
|
|
|
|
6,684,410
|
|
|
Research and
development
|
|
|
2,550,777
|
|
|
|
2,330,913
|
|
|
|
2,057,547
|
|
|
Foreign currency
transaction (gains) loss
|
|
|
(644,118)
|
|
|
|
-
|
|
|
|
-
|
|
|
Total operating
expenses
|
|
|
9,244,979
|
|
|
|
8,783,086
|
|
|
|
8,741,957
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
3,110,625
|
|
|
|
2,352,541
|
|
|
|
2,577,979
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
(expenses), net
|
|
|
(296,265)
|
|
|
|
(1,629,642)
|
|
|
|
(2,058,461)
|
|
|
Other income
(expenses), net
|
|
|
701,751
|
|
|
|
1,398,173
|
|
|
|
1,948,527
|
|
|
Total other income
(expenses), net
|
|
|
405,486
|
|
|
|
(231,469)
|
|
|
|
(109,934)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
3,516,111
|
|
|
|
2,121,071
|
|
|
|
2,468,045
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (provision)
benefit
|
|
|
(220,854)
|
|
|
|
(173,017)
|
|
|
|
89,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
3,295,257
|
|
|
|
1,948,054
|
|
|
|
2,557,045
|
|
|
Net income attributable
to non-controlling interests
|
|
|
37,535
|
|
|
|
23,852
|
|
|
|
25,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Huadi International Group Co., Ltd.
|
|
$
|
3,257,722
|
|
|
$
|
1,924,202
|
|
|
$
|
2,531,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
3,295,257
|
|
|
$
|
1,948,054
|
|
|
$
|
2,557,045
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
(loss) income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(1,314,988)
|
|
|
|
(3,792,527)
|
|
|
|
1,452,328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
income (loss)
|
|
|
1,980,269
|
|
|
|
(1,844,473)
|
|
|
|
4,009,373
|
|
|
Comprehensive income
attributable to non-controlling
interests
|
|
|
24,385
|
|
|
|
(14,073)
|
|
|
|
40,093
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
attributable to Huadi International
Group Co., Ltd.
|
|
$
|
1,955,884
|
|
|
$
|
(1,830,400)
|
|
|
$
|
3,969,280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.23
|
|
|
$
|
0.15
|
|
|
$
|
0.21
|
|
|
Diluted
|
|
$
|
0.23
|
|
|
$
|
0.15
|
|
|
$
|
0.21
|
|
|
Weighted average
numbers of common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
14,138,525
|
|
|
|
13,228,682
|
|
|
|
12,116,079
|
|
|
Diluted
|
|
|
14,138,525
|
|
|
|
13,228,682
|
|
|
|
12,116,079
|
|
View original
content:https://www.prnewswire.com/news-releases/huadi-international-group-co-ltd-announces-fiscal-year-2023-financial-results-302054635.html
SOURCE Huadi International Group Co., Ltd.