Universe Pharmaceuticals INC Reports Fiscal Year 2023 Financial Results
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E-mailJI'AN, China,
Mr.
Fiscal Year 2023 Financial Highlights
- Revenues were
$32.3 million for the fiscal year endedSeptember 30, 2023 , compared to$40.1 million for the fiscal year endedSeptember 30, 2022 . - Loss from operations was
$3.5 million for the fiscal year endedSeptember 30, 2023 , compared to$7.4 million for the fiscal year endedSeptember 30, 2022 . - Net loss was
$6.2 million for the fiscal year endedSeptember 30, 2023 , compared to$8.7 million for the fiscal year endedSeptember 30, 2022 . - Basic and diluted loss per share were
$1.70 for the fiscal year endedSeptember 30, 2023 , compared to$2.41 for the fiscal year endedSeptember 30, 2022 .
Fiscal Year 2023 Financial Results
Revenues
For the Fiscal Years Ended | ||||||||||||
2023 | 2022 | |||||||||||
($ millions) | Revenue | Cost of | Gross | Revenue | Cost of | Gross | ||||||
TCMD products sales | 18.6 | 13.4 | 27.8 % | 24.0 | 8.2 | 65.9 % | ||||||
Third-party products sales | 13.7 | 8.6 | 37.5 % | 16.2 | 10.1 | 37.7 % | ||||||
Total | 32.3 | 22.0 | 31.9 % | 40.1 | 18.3 | 54.5 % | ||||||
Total revenues decreased by
Sales of traditional Chinese medicine derivatives ("TCMD") products decreased by
a) A slowdown in the economy caused by the COVID-19 pandemic has led to a decline in customers' spending power, and the Company changed its pricing strategy by decreasing the per unit price of TCMD products in an effort to increase sales volume and market share during this challenging period. Average selling price of TCMD products decreased by
b) As a result of the Company's new pricing strategy, sales volume of TCMD products increased by 55.1%, to 16,753,432 units sold for the fiscal year ended
c) The average exchange rate between Renminbi ("RMB") and
Sales of third-party products decreased by
Cost of revenues and gross profit
Cost of revenues increased by
Gross profit decreased by
Operating expenses
Selling expenses decreased by
General and administrative expenses decreased by
Research and development ("R&D") expenses decreased by
Other income (expenses), net
Total other income, net, decreased by
Provision for income taxes
Provision for income taxes was
Net loss
Net loss was
Basic and diluted loss per share were
Balance Sheet
As of
Cash Flow
Net cash provided by operating activities was
Net cash used in investing activities was
Net cash used in financing activities was
About Universe Pharmaceuticals INC
Universe Pharmaceuticals INC, headquartered in Ji'an,
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and in its other filings with the U.S. Securities and Exchange Commission.
For more information, please contact:
Ascent Investor Relations LLC
President
Phone: +1-646-932-7242
Email: [email protected]
UNIVERSE PHARMACEUTICALS INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
As of | ||||||||
2023 | 2022 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash | $ | 5,285,247 | $ | 5,711,458 | ||||
Short-term investments | 13,219,005 | 13,148,594 | ||||||
Accounts receivable, net | 10,667,603 | 15,183,890 | ||||||
Due from related parties | 61,678 | - | ||||||
Inventories, net | 3,343,266 | 2,206,488 | ||||||
Advance to suppliers | 180,643 | 16,701 | ||||||
Prepayment for acquisition | 3,426,535 | 3,514,450 | ||||||
Prepaid expenses and other current assets | 626,241 | 1,724,099 | ||||||
TOTAL CURRENT ASSETS | 36,810,218 | 41,505,680 | ||||||
Property and equipment, net | 3,699,965 | 4,250,638 | ||||||
Prepayments made to a related party for purchase of property | 2,192,982 | 2,249,248 | ||||||
Prepayments for construction in progress | 9,092,996 | 9,326,296 | ||||||
Intangible assets, net | 148,584 | 157,451 | ||||||
Investment in equity securities | 685,307 | 702,890 | ||||||
Deferred tax assets | 656,980 | 1,347,672 | ||||||
TOTAL NONCURRENT ASSETS | 16,476,814 | 18,034,195 | ||||||
TOTAL ASSETS | $ | 53,287,032 | $ | 59,539,875 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Short-term bank loans | $ | 5,482,456 | $ | 3,936,184 | ||||
Accounts payable | 4,585,285 | 3,075,393 | ||||||
Taxes payable | 434,758 | 167,350 | ||||||
Due to related parties | 540,096 | 3,379,263 | ||||||
Accrued expenses and other current liabilities | 2,711,736 | 2,539,362 | ||||||
TOTAL CURRENT LIABILITIES | 13,754,331 | 13,097,552 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Ordinary shares, | 67,969 | 67,969 | ||||||
Additional paid in capital | 29,279,159 | 29,279,159 | ||||||
Statutory reserve | 2,439,535 | 2,439,535 | ||||||
Retained earnings | 10,159,304 | 16,322,365 | ||||||
Accumulated other comprehensive loss | (2,413,266) | (1,666,705) | ||||||
TOTAL SHAREHOLDERS' EQUITY | 39,532,701 | 46,442,323 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 53,287,032 | $ | 59,539,875 | ||||
* | Retrospectively restated for effect of 6-for-1 share consolidation. |
UNIVERSE PHARMACEUTICALS INC. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||
For the Years Ended | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Revenue | $ | 32,308,735 | $ | 40,143,151 | $ | 47,982,031 | ||||||
Cost of revenue | (21,993,601) | (18,251,815) | (22,655,854) | |||||||||
Gross profit | 10,315,134 | 21,891,336 | 25,326,177 | |||||||||
Operating expenses | ||||||||||||
Selling expenses | (6,783,703) | (19,083,135) | (2,973,531) | |||||||||
General and administrative expenses | (2,199,657) | (2,602,624) | (3,296,844) | |||||||||
Research and development expenses | (4,858,548) | (7,644,375) | (5,465,662) | |||||||||
Total operating expenses | (13,841,908) | (29,330,134) | (11,736,037) | |||||||||
Income from operations | (3,526,774) | (7,438,798) | 13,590,140 | |||||||||
Other income (expenses) | ||||||||||||
Interest expense, net | (156,788) | (162,400) | (101,604) | |||||||||
Other (expenses) income, net | (235,614) | 48,940 | (80,434) | |||||||||
Short-term investments income (loss) | 38,530 | (470,477) | 239,549 | |||||||||
Equity investment income | 31,072 | 38,588 | 30,827 | |||||||||
Total other (expense) income, net | (322,800) | (545,349) | 88,338 | |||||||||
(Loss) income before income tax provision | (3,849,574) | (7,984,147) | 13,678,478 | |||||||||
Income tax provision | (2,313,487) | (752,419) | (2,358,526) | |||||||||
Net (loss) income | (6,163,061) | (8,736,566) | 11,319,952 | |||||||||
Other comprehensive income (loss) | ||||||||||||
Foreign currency translation adjustment | (746,561) | (3,755,464) | 1,193,369 | |||||||||
Comprehensive (loss) income | $ | (6,909,622) | $ | (12,492,030) | $ | 12,513,321 | ||||||
Earnings per share | ||||||||||||
Basic and diluted | $ | (1.70) | $ | (2.41) | $ | 3.58 | ||||||
Weighted average number of shares outstanding | ||||||||||||
Basic and diluted * | 3,625,000 | 3,625,000 | 3,163,470 | |||||||||
* | Retrospectively restated for effect of 6-for-1 share consolidation. |
UNIVERSE PHARMACEUTICALS INC. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
For the Years Ended | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Cash flows from operating activities | ||||||||||||
Net (loss) income | $ | (6,163,061) | $ | (8,736,566) | $ | 11,319,952 | ||||||
Adjustments to reconcile net income to net cash provided by | ||||||||||||
Depreciation and amortization | 508,785 | 533,949 | 446,878 | |||||||||
Loss from disposal of fixed assets | 114 | 983 | 1,559 | |||||||||
Allowance for doubtful accounts | (439,327) | 419,353 | (230,175) | |||||||||
Inventory reserve | (49,166) | 15,774 | - | |||||||||
Deferred income tax benefit | 679,586 | (605,278) | (668,341) | |||||||||
Short-term investments income | (38,530) | 470,477 | (239,549) | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivable | 4,718,118 | (1,549,312) | (3,867,457) | |||||||||
Inventory, net | (1,183,823) | 16,586 | (451,634) | |||||||||
Advance to suppliers, net | (170,016) | 2,681,214 | (2,717,085) | |||||||||
Prepayment for advertising | - | 7,385,695 | (7,434,240) | |||||||||
Advances to related parties | - | 236,982 | (237,720) | |||||||||
Prepaid expenses and other current assets | 1,091,022 | (1,699,929) | (168,188) | |||||||||
Accounts payable | 1,641,426 | (1,896,621) | 2,457,337 | |||||||||
Taxes payable | 280,939 | (904,127) | (298,620) | |||||||||
Accrued expenses and other current liabilities | 244,015 | 2,318,474 | 31,436 | |||||||||
Net cash provided by (used in) operating activities | 1,120,082 | (1,312,346) | (2,055,847) | |||||||||
Cash flows from investing activities | ||||||||||||
Purchases of property and equipment | (44,169) | (93,703) | (444,505) | |||||||||
Proceeds from disposal of fixed assets | - | 523 | - | |||||||||
Prepayments made to a related party for purchase of property | - | - | (2,457,600) | |||||||||
Prepayments for construction in progress | - | - | (10,629,120) | |||||||||
Prepayment for acquisition | - | (3,814,925) | - | |||||||||
Payments for short-term investments | - | - | (15,330,660) | |||||||||
Redemption of short-term investments | - | - | 1,801,927 | |||||||||
Net cash used in investing activities | (44,169) | (3,908,105) | (27,059,958) | |||||||||
Cash flows from financing activities | ||||||||||||
Proceeds from short-term bank loans | 5,671,104 | 4,272,716 | 4,300,800 | |||||||||
Repayment of bank loans | (3,969,773) | (4,272,716) | (2,764,800) | |||||||||
Gross proceeds from initial public offerings | - | - | 28,750,000 | |||||||||
Payment for deferred initial public offering costs | - | - | (2,792,543) | |||||||||
Proceeds from (prepayments for) related parties borrowings | (3,091,977) | 3,317,943 | (911,648) | |||||||||
Net cash (used in) provided by financing activities | (1,390,646) | 3,317,943 | 26,581,809 | |||||||||
Effect of exchange rate changes on cash | (111,478) | (463,942) | 553,702 | |||||||||
Net (decrease) increase in cash | (426,211) | (2,366,450) | (1,980,294) | |||||||||
Cash, beginning of year | 5,711,458 | 8,077,908 | 10,058,202 | |||||||||
Cash, end of year | $ | 5,285,247 | $ | 5,711,458 | $ | 8,077,908 | ||||||
Supplemental disclosure information | ||||||||||||
Cash paid for interest expense | $ | 190,184 | $ | 199,852 | $ | 149,303 | ||||||
Cash paid for income tax | $ | 863,800 | $ | 2,748,629 | $ | 3,271,219 | ||||||
View original content:https://www.prnewswire.com/news-releases/universe-pharmaceuticals-inc-reports-fiscal-year-2023-financial-results-302048303.html
SOURCE Universe Pharmaceuticals INC
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