Wing Yip Food(WYHG) - 2024 Q3 - Quarterly Report

Financial Statements Consolidated Balance Sheets Total assets grew to $200.9 million, primarily from cash, with liabilities and equity also increasing, strengthening the financial position Key Balance Sheet Items (in millions USD) | Account | Sep 30, 2024 | Dec 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Total Current Assets | $131.1 | $108.8 | +20.5% | | Cash and cash equivalents | $110.8 | $91.0 | +21.8% | | Total Assets | $200.9 | $181.0 | +11.0% | | Total Current Liabilities | $27.6 | $19.4 | +42.2% | | Accounts payable | $15.0 | $7.8 | +92.7% | | Total Liabilities | $44.9 | $38.0 | +18.2% | | Total Shareholders' Equity | $156.0 | $143.1 | +9.1% | - Total assets grew by 11.0% to $200.9 million, primarily fueled by a $19.8 million (21.8%) increase in Cash and cash equivalents[2] - Total liabilities increased by 18.2% to $44.9 million, mainly driven by a 92.7% surge in Accounts payable, which grew from $7.8 million to $15.0 million[2] - Shareholders' equity increased by 9.1% to $156.0 million, largely due to an $11.0 million increase in Retained earnings[2] Consolidated Statements of Operations and Comprehensive Income Revenue grew to $105.7 million, but gross profit declined; net income increased due to lower taxes, while comprehensive income fell sharply Key Performance Indicators (Nine Months Ended Sep 30) | Metric | 2024 | 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $105,679,367 | $98,568,069 | +7.2% | | Gross Profit | $33,647,788 | $34,864,641 | -3.5% | | Net Income | $11,022,350 | $10,211,589 | +7.9% | | Comprehensive Income | $9,061,675 | $17,840,981 | -49.2% | | EPS (basic and diluted) | $0.23 | $0.21 | +9.5% | - Revenue grew by 7.2% YoY, but a 13.1% increase in the Cost of Revenue led to a 3.5% decline in Gross Profit[3] - Net income increased despite lower gross profit, primarily because income tax expenses decreased significantly from $3.5 million in 2023 to $0.9 million in 2024[3] - A significant negative foreign currency translation adjustment of ($1,960,675) in 2024, compared to a positive adjustment of $7,629,392 in 2023, caused the comprehensive income to decrease by nearly half[3] Consolidated Statements of Cash Flows Operating cash flow increased to $20.6 million, while financing activities shifted to a net outflow, resulting in a $20.7 million overall cash increase Summary of Cash Flows (Nine Months Ended Sep 30) | Category | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $20,557,221 | $17,999,969 | +$2,557,252 | | Net cash used in investing activities | ($12,562) | ($4,649) | -$7,913 | | Net cash (used in) provided by financing activities | ($1,396,621) | $7,174,188 | -$8,570,809 | | Net increase in cash | $20,718,519 | $20,209,029 | +$509,490 | | Cash at end of the period | $111,682,113 | $87,602,723 | +$24,079,390 | - Operating cash flow increased by 14.2% YoY, largely due to a significant positive change in Accounts payable, which contributed $7.2 million to cash flow in 2024 versus a $2.4 million use of cash in 2023[6] - There was a major shift in financing activities, moving from a $7.2 million net cash inflow in 2023 to a $1.4 million net cash outflow in 2024, primarily driven by higher repayments of long-term and short-term loans[6]