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spk02: Please go ahead.
spk01: Your line is open. Okay.
spk02: Thank you, operator. Hello, everyone, and welcome to Avoglory International Group's fourth quarter 2021 earnings company call. The company distributed its earnings pre-release earlier today via news via service. You can also download it from Avoglory's website at With us today is Everglory's chief financial officer, Mr. Jason Wang. Mr. Yi Hua, Everglory's chief teammate, president and chief executive officer, is on a business trip today. and unable to join the call, Mr. Wang will read the prepared remarks on behalf of Mr. Kang. Before we go start, I will reveal the self-help statement regarding today's conference call. Please note that the discussion today will contain forward-looking statement made Under the self-harvest provision of the U.S. Private Security Litigation Reform Act of 1995, forward-looking statements inherit risks and uncertainties as such. The company's results may differ materially from the view expressed today. Further information regarding this and other risks and uncertainties are included in the company's quarterly report. Unformed turnkey for the third quarter ended September 13th, 2021. Annual report unformed turnkey for the third year ended December 13, 2021, and in other documents filled with the U.S. Securities and Exchange Commission, our glory does not assure any obligation to update any forward-looking statements, except as required under applicable law. As a reminder, this document This conference call is being recorded. In addition, an annual webcast of the conference will be available on our glorious investor relations website. I will now turn the call over to Mr. Wang.
spk01: Thank you, Joanna. Good morning to those in the U.S. and good evening to those participants in Asia. Thank you for joining our fourth quarter 2021 Olin Conference Call. We are very pleased to announce the 2021 fourth quarter results with a 10.7% year-over-year increase in gross profit. Not only we achieved year-over-year improvement in gross profit of 25.4% for our wholesale business, our retail business increased 3.6% in gross profit compared with the four-year ended December 31st. On retail side, our brands continue to attract new customers and retain existing customers by focusing on design, quality, and value. Our inventory management strategy continually improves the balance between inventory turnover, and our diligent cost control measures further strengthen the profitability of our business. As of December 31, 2021, we operated a nationwide network of 880 stores, compared with 936 stores as of December 31, 2020. During 2021, we operated with Celebrity as the spokesperson of LaGogo. The impact of Celebrity will enhance our brand's influence. While we still see strong demand for the products at our retail stores, we continue to see opportunities in the e-commerce area. Buyable platforms such as our LaGogo stores on Tmall and Jingdong.com are used as a strategic and effective way for us to drive customer engagement, encourage cross-channel shopping, reduced out-of-season inventory, and created a unique and differentiated customer experience to grow our loyal customer base. The company's wholesale business is still affected by COVID-19 and the pressure of the economic downturn. We will actively respond to the changes in the internal economic development. As for our wholesale business, The company has enhanced its extensive product development and supply chain management, its price as well as network of high quality, reliable and cost-effective sourcing channels and manufactories. In addition, our market research center provides our wholesale customers with in-depth research and analysis in the areas including brand positioning. fashion trends, new material development, and new site design. Going forward, we will continue to focus on enhancing our product development capabilities and optimizing the customer base. With our long-term vision of being a leading supply chain solution provider for mid- to high-end apparel brands both in mainland China and the world wide. This concludes Ms. Khan's comments. I will now walk through our financial results for the fourth quarter of 2021. Please note that all numbers discussed today are in US dollars, unless advice noted. Four-year 2021 financial results. Total sales for the fourth year of 2021 were $331 million, an increase of 23.8% from $267.4 million in the fourth year of 2020. This increase was primarily driven by a 57.8% increase in our wholesale business, partially offset by a 2.7% decrease in retail business. Sales for the company's branded fashion apparel retail division decreased by 2.7% to $146.1 million for the full year of 2021, compared with 150.1 million for the fall year of 2020. This decrease was primarily due to a decrease in Samsung sales. The company operated 880 retail stores as of December 30, 2021, compared with 936 retail stores as of December 31, 2020. Sales for the company's wholesale division increased by 57.8% to $184.9 million for the full year of 2021, compared with $117.2 million for the full year of 2020. This increase was primarily attributable to increased sales in mainland China, Hong Kong China, Europe and other, Japan and the United States. Solar growth perfect for the four year of 2021 increased by 10.7% to 101 million compared with 91.2 million for the four year of 2020. Solar growth margin for the four year of 2021 decreased to 34.1% for the four year of 2020. Growth profile for the retail business increased by 3.6% to 63.7 million for the full year of 2021, compared with 61.5 million for the full year of 2020. Growth margin for the full year of 2021 was 43.6% compared to 40.9% for the full year of 2020. Growth profile for the wholesale business increased by 25.4% to 37.6 million for the full year of 2021 compared with 29.7 million for the full year of 2020. Gross margin for the full year of 2021 decreased to 20.2% from 25.4% for the full year of 2020. Selling expenses for the full year of 2021 increased by 12.8% to 64.1 million, or 19.1% of total sales, compared with 55.9 million, or 20.9% of total sales for the full year of 2020. the increase was attributable to the higher traveling expenses. General and administrative expenses for the four year of 2021 increased by 23.2% to 38.4 million or 11.6% of total sales compared with 31.2 million or 11.7% of total sales for the full year of 2020. The increase was attributable to the increased salaries. Loss income from operations was negative 0.5 million for the full year of 2021, compared to 4.1 million for the full year of 2020. Then loss attributable to the company for the full year of 2021 was negative $0.09 million compared with $3.3 million for the full year of 2020. Basic and diluted loss per share was negative $0.01 for the full year of 2021 compared with $0.22 for the full year of 2020. As of December 31, 2021, Evergory has approximately 9.9 million of cash and cash equivalents compared with approximately 81.9 million of the December 31, 2020. Everglades had a working capital of approximately 51 million as of December 31, 2021, and outstanding bank loans of approximately 69 million as of December 31, 2021. Our relentless efforts have been paying off with the 2021 fourth quarter results, and we look forward to further strengthening the fundamentals and increasing operating leverage to support the long-term profitability of our business. Thank you for participating in Evergreen's 2021 fourth quarter. We look forward to talking with you next quarter. If you have additional questions, please feel free to contact our IR department. Goodbye. Thank you. Thank you, operator.
spk02: That will conclude today's conference call. Thank you for your participation ladies and gentlemen. You may now disconnect.
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