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spk00: Thank you operator. Hello everyone and welcome to Everglory International Group's first quarter 2022 earnings conference call. The company distributed its earnings press release earlier today via news via service. You can also download it from Everglory's website at triple.everglorygroup.com. With us today is Everglory's Financial Officer, Mr. Jason Wang, Mr. Yi Hua Kang, our glorious chairman, 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 get started, I will reveal the self-harvest statement regarding today's conference call. Please note that the discussion today will count forward-looking statements made under the self-harvest provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's results might differ particularly from the view expressed today. Further information regarding risks and other risks and uncertainties are included in the company's Company's Annual Report on Form 10-K for the First Court ended March 31, 2022, and in other documents filled with U.S. Securities and Exchange Commission. Our glory does not assume any obligation to update any forward-looking statements except as required and applicable law. As a reminder, this company call is being recorded. In addition, an Agile webcast of this 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 first quarter 2022 earnings conference call. We are very pleased to announce that 2022 first quarter results with a 28.7% quarter-on-quarter increase in sales for our wholesale business, led by we achieved quarter-on-quarter improvement in gross profit for the wholesale business of 25.2%. On the retail side, our brands continue to attract new customers and extending 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 probability of our business. We plan to relocate or remodel 50 to 100 stores in 2022. As of March 31, 2022, we operated a nationwide network of 848 stores, compared with 921 stores as of March 31, 2021. During 2022, we cooperated with a city-based as a spokesperson, Nagogo. the effect of the celebrity will enhance our brand influence. The company's wholesale business is still affected by COVID-19 and the pressure of the economic downturn. We will actively respond to changes in external economic environment. As of our wholesale business, the company has enhanced its incentive product development and supply chain management, expertise as well as network of high quality, reliable and cost-efficient 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 style 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 middle to high and apparel brands, both in mainland China and worldwide. This concludes Ms. Kang's comments. I will now walk through our financial results for the first quarter of 2022. Please note that all numbers discussed today are in US dollars unless otherwise noted. First quarter 2022 financial results. Total sales for the first quarter of 2022 were 64.8 million, a decrease of 8.5% from 70.8 million in the first quarter of 2021. This decrease was primarily attributable to a 28.7% increase in our wholesale business and a 26.7% decrease in our retail business. Therefore, complex brand fashion apparel retail division decreased by 26.7% to 34.9 million for the first quarter of 2022, compared with 47.6 million for the first quarter of 2021. This decrease was primarily due to the decrease in sample sales. The company had 848 retail stores as of March 31, 2022, compared with 921 retail stores as of March 31, 2021. Sales for the complex wholesale division increased by 28.7% to 29.9 million for the first quarter of 2022, compared with 23.2 million for the first quarter of 2021. This increase was primarily attributed to increased sales in mainland China, Hong Kong, Japan, and the United States, and other European markets partially offset by decreased sales in the United Kingdom. Total growth for the first quarter of 2021 decreased by 22.6% to 17.4 million compared with 22.4 million for the first quarter of 2021. Total growth margin for the first quarter of 2022 decreased to 26.8% from 31.7% for the first quarter of 2021. Growth factor for the retail business decreased by 34.8% to 11.7 million for the first quarter of 2022, compared with 17.9 million for the first quarter of 2021. Growth margin for the first quarter of 2022 was 33.4% compared to 37.6% for the first quarter of 2021. Growth fat for the wholesale business increased by 25.2% to 5.7 million for the first quarter of 2022, compared with 4.6 million for the first quarter of 2021. Growth margin for the first quarter of 2022 decreased to 19.1% from 19.6% for the first quarter of 2021. Selling expenses for the first quarter of 2022 decreased by 12% to 13.7 million or 21.1% up to the sales, compared with 15.5 million or 20, 22 of total sales for the first quarter of 2021. The decrease was due to the decreased salary, general and administrative expenses for the first quarter of 2022 decreased by 10.9% to 7 million or 10.8% of total sales compared with 10.9 million or 11.1% of total sales for the first quarter of 2022. The decrease was attributable to the decreased salaries. Loss from operations was 3.3 million for the first quarter of 2022 compared to 1 million for the first quarter of 2021. Net loss attributable to the company for the first quarter of 2022 was 5.1 million compared with 1.2 million for the first quarter of 2021. Basic endowment loss per share was $0.34 for the first quarter of 2022, compared with $0.80 for the first quarter of 2021. As of March 31, 2022, Evergory had approximately $41.7 million of cash and cash equivalents, compared with approximately 56.6 million as of December 31, 2021. Deva Gallery had a working capital of approximately 42.3 million as of March 31, 2022. And outstanding bank loans of approximately 69.3 million as of March 31, 2022. Relentless efforts have been paying off with the 2022 first quarter results and we look forward to further strengthening the fundamentals and increasing operation leverage to support the long-term profitability of our business. Thank you for participating in Evergreen's 2022 first quarter earnings call. We look forward to talking with you next quarter. If you have additional questions, please feel free to contact our IAR department. Goodbye. Thank you. Thank you, operator.
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