ILAG(US:ILAG) Prnewswire·2024-12-20 21:30Core Viewpoint - Intelligent Living Application Group Inc. reported significant financial growth in the first half of 2024, with revenues increasing by 131.1% compared to the same period in 2023, driven by marketing efforts and a recovering US economy [2][3]. Financial Performance - Revenues for the six months ended June 30, 2024, were $4,473,031, a 131.1% increase from $1,935,641 in the same period of 2023 [2][5]. - Gross profit reached $702,184, marking a 5728.7% increase from $12,047 in the prior year [2][10]. - The net loss decreased to $2,249,307, down by $571,214 from a net loss of $2,820,521 in the first half of 2023 [2][17]. - Loss per share improved to $0.12 from $0.16 year-over-year [2][17]. Revenue Drivers - The increase in revenue was attributed to a rise in units sold, with approximately 0.9 million units sold in the first half of 2024 compared to 0.4 million units in the same period of 2023 [5][6]. - The cost of goods sold was $3,604,880, representing 80.6% of revenues in 2024, down from 90.4% in 2023, due to improved procurement and production processes [7][10]. Expense Management - Selling and marketing expenses surged to $587,243, an increase of 2779.1% from $20,397 in 2023, primarily due to expanded marketing efforts in Southeast Asia [12]. - General and administrative expenses decreased by 39.9% to $1,781,623, largely due to reduced professional fees [13]. - Research and development expenses were $648,413, reflecting investments in smart lock technology and IoT applications [14]. Future Outlook - The company aims to enhance profit margins by negotiating volume rebates for raw materials and optimizing its product mix [11]. - Intelligent Living plans to launch new smart lock designs on e-commerce platforms in the first half of 2025 [14]. Liquidity and Capital Resources - As of June 30, 2024, the company had working capital of $8,536,833, down from $10,711,197 at the end of 2023 [20]. - Cash and cash equivalents were $2,316,129, a decrease from $4,483,730 at the end of 2023 [20]. - The company maintains a credit facility of approximately $897,000 to support working capital needs [19]. Cash Flow Summary - Net cash used in operating activities was $2,044,513 for the first half of 2024, primarily due to the net loss and changes in working capital [23]. - Cash used in investing activities was $34,507, significantly lower than $788,062 in the same period of 2023 [24]. - Financing activities resulted in a cash outflow of $87,578, mainly from repayments of bank borrowings [25]. Company Overview - Intelligent Living Application Group Inc. is a premium lockset manufacturer based in Hong Kong, focusing on high-quality mechanical locksets for the US and Canadian markets [27]. - The company has a 40-year history of product diversification and quality assurance, holding various industry certifications [27].