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Huadi International Group Co., Ltd. Announces Fiscal Year 2020 Financial Results
WENZHOU, China, March 30, 2021 (GLOBE NEWSWIRE) -- Huadi International Group Co., Ltd. (“HUDI” or the “Company”) (NASDAQ: HUDI), a leading developer and
About this update from Huadi International Group Co., Ltd.
[{"type":"text","content":"WENZHOU, China, March 30, 2021 (GLOBE NEWSWIRE) -- 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 audited financial results for the fiscal year ended September 30, 2020. Financial Highlights for the Fiscal Year 2020 For the Fiscal Years Ended September 30,($ millions, except per share data)2020 2019 % ChangeRevenue $59.14 $65.52 -9.7%Gross profit $10.66 $14.62 -27.1%Gross margin 18% 22.3% -19.3 percentage pointsIncome (loss) from operations$4.46 $8.38 -46.8%Operating income (loss) margin 7.5% 12.8% -41.4 percentage pointsNet income (loss) attributable to Huadi International$3.32 $5.39 -38.4%Diluted earnings (loss) per share$0.34 $0.54 -37%Net book value per share $2.58 $2.12 21.7% Revenue decreased by 9.7% to $59.14 million primarily due to the mandated nation-wide lockdown caused by the outbreak of the COVID-19 pandemic. While the Company managed to achieve quick recovery and sustained similar domestic sales revenue compared with fiscal year 2019, our international sales revenue was negatively impacted by the lockdown during the fiscal year ended September 30, 2020. Our international sales revenue decreased by approximately $7.41 million, or 41.4%, during 2020 fiscal year compared to 2019 fiscal year.Gross profit decreased by 27.1% to $10.66 million. Gross margin was 18%, compared to 22.3% for the prior fiscal year. The decrease of gross profit was primarily due to decreased weighted average selling prices we offered to customers as a temporary sales strategy during the pandemic by providing one-off discount on certain customized products to some customers as a result of other customers who ordered those customized products not being able to fulfill their orders as they suffered from the negative impact of the COVID-19 pandemic in early 2020.Operating income was $4.46 million, compared to income from operations of $8.38 million for the prior fiscal year. Operating margin was 7.5%, compared to operating profit margin of 12.8% for the prior fiscal year.Net income attributable to Huadi International was $3.32 million, or net earnings of $0.34 per share. This compared to net income attributable to Huadi International of $5.39 million, or $0.54 per share, for the prior fisc...