First Six Months of Fiscal Year 2023 Financial and Operational Highlights
All financial figures are in US Dollars unless otherwise noted.
- Revenue from Original Equipment Manufacturer (“OEM”) and Original Design Manufacturer (“ODM”) services increased from
RMB100.2 million to approximatelyRMB127.7 million (US$18.0 million ), representing a 27.4% increase. - Gross profit margin increased from 8.2% to 9.9%, primarily due to an increase in sales of newly introduced, higher end models of feature phones and smart phones, and a decrease in purchase price of key raw materials.
- Net loss reached approximately
RMB15.6 million (US$2.2 million ), compared to net loss ofRMB9.3 million during the same period last year, representing a 67% increase. The increase in net loss was mainly due to an increase of selling expenses, R&D expenses and general and administration expenses, partially offset by an increase in gross profit. - The exchange rate between the RMB and US Dollar considerably affected the Company’s financial results, as more than 50% of our products were sold to customers outside of mainland
China . Consequently, our revenue was affected by fluctuations in the exchange rate between US dollar and RMB.
First Six Months of Fiscal Year 2023 Financial Results
Revenue
Revenue for the six months ended
Cost of sales
Cost of sales for the six months ended
Gross profit for the six months ended
Overall gross profit margin for the six months ended
Operating Expenses
Operating expenses increased by
General and administrative expenses consist of salary and benefits to the Company’s accounting, human resources, design and executive office staff, rental expenses, property management and utilities, office supplies and other expenses. General and administrative expenses increased by
Selling expenses increased by
Other expenses (income), net for the six months ended
Income Before Tax
Income tax provision (benefit) was nil and
Net Income (loss)
Net loss was approximately
Cash and Cash Equivalents
As of September 30, 2022, the Company had cash and cash equivalents of US$10.5 million, compared with $10.6 million as of March 31, 2021.
Cash Flow
Net cash used in operating activities was
Net cash used in investing activities for six months ended
Net cash provided by financing activities for six months ended
Exchange rate
Our reporting currency is the Renminbi. This announcement also contains translations of certain foreign currency amounts into
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data and per share data, or otherwise noted)
As of | As of | |||||||||||
2022 | 2022 | |||||||||||
RMB | RMB | USD | ||||||||||
Assets | ||||||||||||
Current Assets | ||||||||||||
Cash and cash equivalents | 66,692 | 74,482 | 10,491 | |||||||||
Restricted cash | 500 | 500 | 70 | |||||||||
Accounts receivable, net | 22,417 | 33,887 | 4,773 | |||||||||
Prepaid expenses and other current assets, net | 65,815 | 83,871 | 11,813 | |||||||||
Due from related parties | 1,422 | 606 | 85 | |||||||||
Inventories | 36,071 | 19,043 | 2,682 | |||||||||
Total current assets | 192,917 | 212,389 | 29,914 | |||||||||
Non-Current assets | ||||||||||||
Property and equipment, net | 38,270 | 68,281 | 9,617 | |||||||||
Operating lease right-of-use assets, net | 16,319 | 14,561 | 2,051 | |||||||||
Intangible assets, net | 2,592 | 2,149 | 303 | |||||||||
Equity method investment | - | - | - | |||||||||
Other non-current assets | 541 | 526 | 74 | |||||||||
Total non-current assets | 57,722 | 85,517 | 12,045 | |||||||||
Total Assets | 250,639 | 297,906 | 41,959 | |||||||||
Liabilities and Shareholder’s equity | ||||||||||||
Current liabilities | ||||||||||||
Accounts payable | 74,531 | 114,436 | 16,118 | |||||||||
Short-term borrowings | 35,780 | 44,064 | 6,206 | |||||||||
Current portion of long-term borrowings | 800 | 1,080 | 152 | |||||||||
Due to related parties | 4,499 | 3,578 | 504 | |||||||||
Lease liability | 3,360 | 4,712 | 664 | |||||||||
Other payables and accrued liabilities | 44,148 | 51,435 | 7,245 | |||||||||
Income tax payables | 18 | 18 | 3 | |||||||||
Total current liabilities | 163,136 | 219,323 | 30,892 | |||||||||
Non-current liabilities | ||||||||||||
Long-term borrowings | 8,020 | 7,410 | 1,044 | |||||||||
Deferred revenue | - | 6,928 | 976 | |||||||||
Deferred tax liability | 466 | 381 | 54 | |||||||||
Lease liability - non-current | 14,549 | 11,438 | 1,611 | |||||||||
Total non-current liabilities | 23,035 | 26,157 | 3,685 | |||||||||
Total liabilities (including amounts of the consolidated VIEs without recourse to the Company of | 186,171 | 245,480 | 34,577 | |||||||||
Commitments and contingencies | ||||||||||||
Shareholder’s equity | ||||||||||||
Preferred share, par value | ||||||||||||
Ordinary shares, par value | 5 | 5 | 1 | |||||||||
Additional paid-in capital | 152,236 | 152,236 | 21,442 | |||||||||
Accumulated deficit | (88,277 | ) | (102,542 | ) | (14,443 | ) | ||||||
Accumulated other comprehensive income | 1,024 | 4,793 | 673 | |||||||||
64,988 | 54,492 | 7,673 | ||||||||||
Non-controlling interests | (520 | ) | (2,066 | ) | (291 | ) | ||||||
Total shareholders’ equity | 64,468 | 52,426 | 7,382 | |||||||||
Total liabilities and shareholders’ equity | 250,639 | 297,906 | 41,959 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Amounts in thousands, except share data and per share data, or otherwise noted)
Six months ended | ||||||||||||
2021 | 2022 | |||||||||||
RMB | RMB | USD | ||||||||||
Net sales | 101,057 | 127,792 | 17,999 | |||||||||
Cost of sales | 92,749 | 115,151 | 16,219 | |||||||||
Gross profit | 8,308 | 12,641 | 1,780 | |||||||||
Operating expenses: | ||||||||||||
Selling expenses | 1,661 | 4,194 | 591 | |||||||||
General and administrative expenses | 15,856 | 26,321 | 3,707 | |||||||||
Other expenses (income), net | (1,187 | ) | (6,249 | ) | (880 | ) | ||||||
Total operating expenses | 16,329 | 24,266 | 3,418 | |||||||||
Loss from operations | (8,021 | ) | (11,625 | ) | (1,638 | ) | ||||||
Interest expenses | 1,321 | 4,075 | 574 | |||||||||
Loss before income taxes | (9,342 | ) | (15,700 | ) | (2,212 | ) | ||||||
Income tax expenses (benefits) | - | (85 | ) | (12 | ) | |||||||
Net loss | (9,342 | ) | (15,615 | ) | (2,200 | ) | ||||||
Less: Net loss attributable to non-controlling interests | - | (1,350 | ) | (190 | ) | |||||||
Net loss attributable to | (9,342 | ) | (14,265 | ) | (2,010 | ) | ||||||
Comprehensive loss | ||||||||||||
Net loss | (9,342 | ) | (15,615 | ) | (2,200 | ) | ||||||
Foreign currency translation adjustment | 42 | 3,769 | 531 | |||||||||
Total comprehensive loss | (9,300 | ) | (11,846 | ) | (1,669 | ) | ||||||
Less: Comprehensive loss attributable to non-controlling interest | - | (1,350 | ) | (190 | ) | |||||||
Comprehensive loss attributable to | (9,300 | ) | (10,496 | ) | (1,479 | ) | ||||||
Loss per share attributable to | ||||||||||||
Basic and diluted | (1.14 | ) | (1.75 | ) | (0.25 | ) | ||||||
Weighted average ordinary shares outstanding | ||||||||||||
Basic and diluted | 8,164,771 | 8,164,771 | 8,164,771 |
UTIME LIMITED LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands or otherwise noted)
Six months ended | ||||||||||||
2021 | 2022 | |||||||||||
RMB | RMB | USD | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income (loss) | (9,342 | ) | (15,615 | ) | (2,200 | ) | ||||||
Adjustments to reconcile net income (loss) from operations to net cash used by operating activities | ||||||||||||
Depreciation and amortization | 2,276 | 2,602 | 366 | |||||||||
Allowances for obsolete inventories, net | 632 | (230 | ) | (32 | ) | |||||||
Provision for doubtful account, net | (161 | ) | - | - | ||||||||
Loss on disposal of property and equipment | 6 | 118 | 17 | |||||||||
Impairment of an intangible asset | 348 | - | - | |||||||||
Net changes in operating assets and liabilities: | ||||||||||||
Accounts receivable | (331 | ) | (6,183 | ) | (871 | ) | ||||||
Prepaid expenses and other current assets | (943 | ) | (1,133 | ) | (160 | ) | ||||||
Inventories | (38,601 | ) | 17,714 | 2,495 | ||||||||
Accounts payable | 36,317 | (2,697 | ) | (380 | ) | |||||||
Other payables and accrued liabilities | (9,781 | ) | (7,140 | ) | (1,006 | ) | ||||||
Related parties | - | 935 | 132 | |||||||||
Deferred revenue | - | 6,928 | 976 | |||||||||
Other non-current assets | - | 15 | 2 | |||||||||
Net cash (used in) provided by operating activities | (19,580) | (4,686 | ) | (661 | ) | |||||||
Investing activities: | ||||||||||||
Payment for property and equipment | (5,856 | ) | (2,057 | ) | (290 | ) | ||||||
Payment for intangible assets | (777 | ) | (147 | ) | (21 | ) | ||||||
Net cash used in investing activities | (6,633) | (2,204) | (311 | ) | ||||||||
Financing activities: | ||||||||||||
Proceeds from short-term borrowings | 15,500 | 19,310 | 2,720 | |||||||||
Loan received from a shareholder | 3,000 | 2,000 | 282 | |||||||||
Proceeds from long-term borrowings | 9,000 | - | - | |||||||||
Repayment of loan from a shareholder | - | (3,000 | ) | (423 | ) | |||||||
Repayment of short-term borrowings | (10,400 | ) | (11,026 | ) | (1,553 | ) | ||||||
Repayments of long-term borrowings | (5,640 | ) | (330 | ) | (46 | ) | ||||||
Down payment for financing services | (19,003 | ) | - | - | ||||||||
Contribution in a subsidiary by a shareholder | 6,429 | - | - | |||||||||
Proceeds from issuance of ordinary shares through initial public offering | 88,262 | - | - | |||||||||
Net cash provided by financing activities | 87,148 | 6,954 | 980 | |||||||||
Effect of exchange rate changes on cash and cash equivalent and restricted cash | (844 | ) | 7,726 | 1,089 | ||||||||
Net increase in cash and cash equivalent and restricted cash | 60,091 | 7,790 | 1,097 | |||||||||
Cash and cash equivalents and restricted cash at beginning of period | 9,477 | 67,192 | 9,464 | |||||||||
Cash and cash equivalents and restricted cash at end of period | 69,568 | 74,982 | 10,561 |
Source:
2023 GlobeNewswire, Inc., source