Meihua International Medical(US:MHUA)2022-07-31 16:00Financial Performance - Revenue increased by 16.82% to $104.04 million for the fiscal year ended December 31, 2021, compared to $89.06 million for the previous year[2] - Net income increased by 4.99% to $20.00 million for the fiscal year ended December 31, 2021, up from $19.05 million in the prior year[2][14] - Total revenues for 2021 reached $104,037,710, a 17% increase from $89,061,010 in 2020[23] - Net income for 2021 was $19,991,246, up from $19,045,255 in 2020, representing a 5% increase[23] - Comprehensive income for 2021 was $22,074,489, slightly down from $23,805,228 in 2020, due to foreign currency translation adjustments[23] - Net income for the year 2021 was $19,991,246, an increase of 4.98% from $19,045,255 in 2020[25] Profitability Metrics - Gross profit rose by 7.13% to $39.81 million, with a gross margin decrease to 38.26% from 41.72% in fiscal year 2020[2][9] - Gross profit for 2021 was $39,805,241, compared to $37,160,187 in 2020, reflecting a gross margin improvement[23] - The company reported a basic and diluted net income per ordinary share of $1.00 for 2021, compared to $0.95 in 2020[23] Cash and Liquidity - Cash reserves were over $8 million as of December 31, 2021, reflecting an increase from $7.19 million at the end of 2020[3][14] - Cash and cash equivalents increased to $8,149,276 in 2021, compared to $7,187,334 in 2020, showing improved liquidity[20] - Cash at the end of the year increased to $8,149,276 from $7,187,334, representing a 13.4% rise[25] Assets and Liabilities - Total current assets increased to $97,276,350 in 2021, up from $67,566,231 in 2020, marking a 44% growth[20] - Total assets grew to $136,857,381 in 2021, compared to $106,048,824 in 2020, indicating a 29% increase[20] - Total liabilities remained stable at $30,047,112 in 2021, consistent with the previous year[20] Operational Developments - A new production line for COVID-19 testing products has been established to meet increasing demand due to the pandemic[3][4] - The company plans to complete the construction of a new factory for coronavirus detection and prevention products within the year[4] - The company aims to maintain rapid growth post-pandemic and create long-term value for investors through strategic operational optimizations[4] Research and Development - Research and development expenses increased by approximately 9.64% to $2.73 million, reflecting a commitment to product innovation[13] - Research and development expenses rose to $2,725,014 in 2021, up from $2,492,059 in 2020, reflecting a focus on innovation[23] Operating Costs - Operating costs increased by 5.92% to $14.50 million, driven by higher general and administrative expenses[11] Cash Flow Activities - Net cash used in operating activities was $(54,663), a significant decrease from $5,325,996 in 2020[25] - Net cash used in investing activities totaled $(833,817), compared to $(16,094,404) in 2020, indicating a reduction in investment outflows[25] - Net cash provided by financing activities was $1,860,234, compared to $1,706,750 in 2020, showing a growth of 9%[25] Other Financial Metrics - Depreciation expenses rose to $595,522, up from $497,238 in the previous year, reflecting a 19.7% increase[25] - Interest paid during the period was $180,744, up from $137,160 in the previous year, reflecting a 31.7% increase[25] - Income taxes paid increased to $5,042,816 from $4,362,169, which is a 15.6% rise[25] - The effect of foreign exchange rate changes resulted in a loss of $(9,812), contrasting with a gain of $218,137 in the previous year[25]