Fiscal Year 2023 Financial Highlights
- Total revenues were $777.4
million, an increase of 9.9% compared to the comparable
prior year period. Unfavorable impact from depreciation of Renminbi
against the U.S. dollar has adversely affected our revenues for
fiscal year 2023.
- Gross margin was 32.9%, compared to 33.8% for the
comparable prior year period. Non-GAAP gross margin was
33.0%, compared to 34.0% for the comparable prior year period.
- Net income attributable to Hollysys was $106.9 million, an increase of 28.6% compared to
the comparable prior year period. Non-GAAP net income
attributable to Hollysys was $111.6
million, an increase of 18.4% compared to the comparable
prior year period.
- Diluted earnings per share was $1.72, an increase of 27.4% compared to the
comparable prior year period. Non-GAAP diluted earnings per
share was $1.80, an increase of
17.6% compared to the comparable prior year period.
- Net cash provided by operating activities was
$23.2 million.
- Days sales outstanding ("DSO") of 151 days, compared to
171 days for the comparable prior year period.
- Inventory turnover days of 75 days, compared to 58 days
for the comparable prior year period.
Fourth Quarter of Fiscal Year 2023 Financial
Highlights
- Total revenues were $195.0
million, an increase of 7.1% compared to the comparable
prior year period.
- Gross margin was 31.2%, compared to 33.7% for the
comparable prior year period. Non-GAAP gross margin was
31.4%, compared to 33.9% for the comparable prior year period.
- Net income attributable to Hollysys was $25.7 million, an increase of 11.7% compared to
the comparable prior year period. Non-GAAP net income
attributable to Hollysys was $26.5
million, an increase of 7.2% compared to the comparable
prior year period.
- Diluted earnings per share was $0.41, an increase of 10.8% compared to the
comparable prior year period. Non-GAAP diluted earnings per
share was $0.43, a decrease of
7.5% compared to the comparable prior year period.
- Net cash provided by operating activities was
$20.0 million.
- DSO of 149 days, compared to 174 days for the comparable
prior year period.
- Inventory turnover days of 81 days, compared to 73 days
for the comparable prior year period.
See the section entitled "Non-GAAP Measures" for more
information about non-GAAP gross margin, non-GAAP net income
attributable to Hollysys and non-GAAP diluted earnings per
share.
BEIJING, Aug. 15,
2023 /PRNewswire/ -- Hollysys Automation Technologies
Ltd. (NASDAQ: HOLI) ("Hollysys", the "Company" or "we"), a leading
provider of automation and control technologies and applications in
China, today announced its
unaudited financial results for the fiscal year 2023 and the fourth
quarter ended June 30, 2023.
The Industrial Automation segment continued its growth momentum.
The variety of applications and use cases for our product continue
to expand, and we have received awards for numerous projects and
products.
In the chemical and petrochemical field, Hollysys continued to
achieve breakthroughs on national key projects and maintained our
cooperation with key customers. We won several mid- and
high-profile contracts with competitive positioning in this fiscal
year. For example, we signed a 100-billion-square-meter large gas
field project and a whole-plant integrated simulation project of a
synthetic ammonia and urea plant. We reinforced the Hia Advanced
Process Control platform for one of our petrochemical customers,
optimizing its isooctane unit and helping it become a benchmark in
its industry while maintaining competitive vitality. Moreover, the
Sinopec Group Million Ton Ethylene Project saw the first batch
delivery in this fiscal year, representing a milestone breakthrough
in Hollysys' petrochemical business. We also assisted a chemical
enterprise in establishing a digital talent training base with our
Operator Training Simulator in the fourth fiscal quarter.
Additionally, Hollysys' strategic layout and developments in
overseas business witnessed steady progress. We successfully signed
the OBI nickel-iron project in Indonesia with a resource company in this
fiscal year, with Hollysys providing relevant customized products
with integrated and comprehensive intelligent solutions, marking a
new milestone for our overseas market expansion.
The food and pharmaceutical sectors also demonstrated steady
business growth. We signed a significant project with a leading
enterprise of generic contrast media products on producing
iodiproamine and regadesone in this fiscal year, with Hollysys
acting as the overall instrument control contractor that provides
Distributed Control System ("DCS"), instrument valves and
installation. In the fourth fiscal quarter, we also provided an
integrated solution for a pharmaceutical company and received high
user recognition.
In the smart factory field, we kept developing customized smart
factory solutions that meet customers' requirements. We made
several vital cooperations with various customers in this fiscal
year. We signed the project of automatic control system and factory
intelligent management system of a northwest listed coal company
and the Sinopec power center simulation project which covers the
whole range of high-precision excitation virtual imitation machine
systems. Meanwhile, we completed the delivery of a 230,000 tons
phenolic resin project, providing fully autonomous and controllable
HiaBatch control system. In the fourth fiscal quarter, we won the
bids for two smart factory projects that are expected to aid in
their intelligent transformation and help reduce their production
and operation costs.
In Rail Transportation Automation segment, we continued to
maintain our market position. In the high-speed rail sector, we
made new progress in this fiscal year. For instance, we
participated in the Guizhou
section of Guiyang-Nanning Railway project and Yiyang-Changsha
section of Changde-Yiyang-Changsha High-Speed Railway project. In
the subway sector, our Traffic Operation System Platform was
successfully applied in the Phase I Project of Beijing Metro Line
19. In terms of the urban rail transit sector, the first phase of
Lanzhou Rail Transit Line 2 started trial operation successfully
with the support of our comprehensive monitoring system and other
services in the fourth fiscal quarter. We also provided an
integrated station control room for Lanzhou Rail Transit. Moreover,
our ZPW-2000S communication coding track circuit product, which was
certified by the Safety Integrity Level 4 and the China Railway
Product Certification Center, won two bids on domestic lines in the
fourth fiscal quarter. In addition to the domestic market, we have
smoothly explored the overseas market. We signed the sales project
of the main control system software and Programmable Logic
Controller for Kuching urban transportation system in Sarawak, Malaysia in this fiscal year, of
which the main control system adopted our independently developed
MACS-SCADA software system platform. We believe that this project
lays a solid foundation for future access to overseas markets and
is expected to further enhance our international influence in the
field of rail transit.
The Mechanical and Electrical Solution segment also manifested a
stable performance with smooth executions on various projects.
With our continuous dedication to the industry and the support
of experienced and passionate experts, we believe that we will
continue to create more value for our clients and shareholders.
Fiscal Year and the Fourth Quarter Ended
June 30, 2023 Unaudited
Financial Results Summary
(In USD
thousands, except for %, number of shares and per share
data)
|
|
|
|
|
|
|
|
Three months
ended
June
30,
|
|
|
Fiscal year
ended
June
30,
|
|
|
|
2023
|
2022
|
%
Change
|
|
2023
|
2022
|
%
Change
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
194,963
|
182,115
|
7.1 %
|
$
|
777,373
|
707,462
|
9.9 %
|
Integrated solutions contracts
revenue
|
$
|
160,896
|
149,292
|
7.8 %
|
$
|
632,100
|
573,567
|
10.2 %
|
Product sales
|
$
|
13,251
|
11,823
|
12.1 %
|
$
|
47,424
|
38,486
|
23.2 %
|
Revenue from services
|
$
|
20,816
|
21,000
|
(0.9) %
|
$
|
97,849
|
95,409
|
2.6 %
|
Cost of
revenues
|
$
|
134,161
|
120,780
|
11.1 %
|
$
|
521,888
|
468,105
|
11.5 %
|
Gross profit
|
$
|
60,802
|
61,335
|
(0.9) %
|
$
|
255,485
|
239,357
|
6.7 %
|
Total operating
expenses
|
$
|
43,204
|
42,215
|
2.3 %
|
$
|
162,472
|
164,813
|
(1.4) %
|
Selling
|
$
|
13,628
|
10,863
|
25.5 %
|
$
|
57,243
|
45,301
|
26.4 %
|
General and administrative
|
$
|
19,186
|
23,323
|
(17.7) %
|
$
|
63,580
|
80,241
|
(20.8) %
|
Research and development
|
$
|
16,749
|
16,629
|
0.7 %
|
$
|
70,200
|
69,580
|
0.9 %
|
VAT
refunds and government
subsidies
|
$
|
(6,359)
|
(8,600)
|
(26.1) %
|
$
|
(28,551)
|
(30,309)
|
(5.8) %
|
Income from
operations
|
$
|
17,598
|
19,120
|
(8.0) %
|
$
|
93,013
|
74,544
|
24.8 %
|
Other income,
net
|
$
|
625
|
256
|
144.1 %
|
$
|
3,372
|
2,185
|
54.3 %
|
Foreign exchange
gain
|
$
|
4,083
|
4,000
|
2.1 %
|
$
|
6,363
|
1,789
|
255.7 %
|
Gains on disposal of
investments in an
equity investee
|
$
|
-
|
-
|
-
|
$
|
-
|
7,995
|
-
|
Impairment loss of
investments in cost
investees
|
$
|
-
|
(773)
|
-
|
$
|
-
|
(773)
|
-
|
Share of net income of
equity investees
|
$
|
762
|
1,280
|
(40.5) %
|
$
|
3,116
|
1,838
|
69.5 %
|
Gains on disposal of an
investment in
securities
|
|
-
|
-
|
-
|
|
845
|
-
|
100.0 %
|
Losses on disposal of
subsidiaries
|
$
|
-
|
-
|
-
|
$
|
-
|
(3)
|
(100.0) %
|
Dividend income from
investments in
securities
|
$
|
237
|
-
|
100.0 %
|
$
|
237
|
85
|
178.8 %
|
Interest
income
|
$
|
3,374
|
3,363
|
0.3 %
|
$
|
12,394
|
12,698
|
(2.4) %
|
Interest
expenses
|
$
|
(257)
|
(141)
|
82.3 %
|
$
|
(878)
|
(731)
|
20.1 %
|
Income tax
expenses
|
$
|
696
|
3,928
|
(82.3) %
|
$
|
11,390
|
16,634
|
(31.5) %
|
Net income (loss)
attributable to non-
controlling interests
|
$
|
6
|
155
|
(96.1) %
|
$
|
141
|
(189)
|
(174.6) %
|
Net income attributable
to Hollysys
Automation Technologies Ltd.
|
$
|
25,720
|
23,022
|
11.7 %
|
$
|
106,931
|
83,182
|
28.6 %
|
Basic earnings per
share
|
$
|
0.42
|
0.38
|
10.5 %
|
$
|
1.74
|
1.36
|
27.9 %
|
Diluted earnings per
share
|
$
|
0.41
|
0.37
|
10.8 %
|
$
|
1.72
|
1.35
|
27.4 %
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expenses
|
$
|
437
|
1,327
|
(67.1) %
|
$
|
3,286
|
9,709
|
(66.2) %
|
Amortization of
acquired intangible
assets
|
$
|
325
|
353
|
(7.9) %
|
$
|
1,342
|
1,356
|
(1.0) %
|
Non-GAAP net income
attributable to
Hollysys Automation Technologies
Ltd.(1)
|
$
|
26,482
|
24,702
|
7.2 %
|
$
|
111,559
|
94,247
|
18.4 %
|
Non-GAAP basic earnings
per share(1)
|
$
|
0.43
|
0.40
|
7.5 %
|
$
|
1.81
|
1.54
|
17.5 %
|
Non-GAAP diluted
earnings per share(1)
|
$
|
0.43
|
0.40
|
7.5 %
|
$
|
1.80
|
1.53
|
17.6 %
|
Basic weighted average
number of
ordinary shares outstanding
|
|
61,731,177
|
61,195,317
|
0.9 %
|
|
61,521,412
|
61,007,806
|
0.8 %
|
Diluted weighted
average number of
ordinary shares outstanding
|
|
62,134,923
|
61,788,905
|
0.6 %
|
|
62,034,400
|
61,568,476
|
0.8 %
|
|
(1) See the
section entitled "Non-GAAP Measures" for more information about
these non-GAAP measures.
|
Operational Results Analysis for the Fiscal Year Ended
June 30, 2023
Total revenues for fiscal year 2023 were $777.4 million, as compared to $707.5 million for the prior fiscal year,
representing an increase of 9.9%. In terms of revenues by type,
integrated solutions contracts revenue increased by 10.2% to
$632.1 million, products sales
revenue increased by 23.2% to $47.4
million, and services revenue increased by 2.6% to
$97.8 million.
The following table sets forth the Company's total
revenues by segment for the periods indicated.
(In USD
thousands, except for %)
|
|
|
|
|
|
|
|
Fiscal year ended
June 30,
|
|
|
|
2023
|
|
2022
|
|
|
|
$
|
% to Total
Revenues
|
|
$
|
% to Total
Revenues
|
|
Industrial
Automation
|
|
506,300
|
65.2
|
|
439,918
|
62.2
|
|
Rail Transportation
Automation
|
|
189,167
|
24.3
|
|
183,785
|
26.0
|
|
Mechanical and
Electrical Solution
|
|
81,906
|
10.5
|
|
83,759
|
11.8
|
|
Total
|
|
777,373
|
100.0
|
|
707,462
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin was 32.9% for fiscal year
2023, as compared to 33.8% for the prior fiscal year. Gross
margins for integrated solutions
contracts, product sales, and services rendered were
25.0%, 72.0% and 64.7% for fiscal year 2023, as compared to
26.4%, 73.4% and 62.7% for the prior fiscal
year, respectively. Non-GAAP gross margin
was 33.0% for fiscal year 2023, as compared to 34.0% for the
prior fiscal year. Non-GAAP gross margin of
integrated solutions contracts was 25.2% for fiscal year
2023, as compared to 26.6% for the prior fiscal year. See
the section entitled "Non-GAAP Measures" for more information about
non-GAAP gross margin and non-GAAP gross margin of integrated
solutions contracts.
Selling expenses were $57.2 million for fiscal year 2023,
representing an increase of $11.9
million, or 26.4%, compared to $45.3
million for the prior fiscal year. The increase in selling
expenses was mainly due to the increase in sales headcount to
support the business growth, and the implementation of industry key
customer strategy in industrial automation segment. Selling
expenses as a percentage of total revenues were
7.4% and 6.4% for fiscal year 2023 and 2022,
respectively.
General and administrative expenses
were $63.6 million for fiscal year 2023,
representing a decrease of $16.7
million, or 20.8%, compared to $80.2
million for the prior fiscal year, which was primarily due
to an $8.6 million decrease in credit
losses provision and a $6.4 million
decrease in share-based compensation expenses. Share-based
compensation expenses were $3.3
million and $9.7 million for
fiscal year 2023 and 2022, respectively. General and administrative
expenses as a percentage of total revenues were 8.2%
and 11.3% for fiscal year 2023 and 2022,
respectively.
Research and development expenses were $70.2 million for fiscal year 2023, representing
an increase of $0.6 million, or 0.9%,
compared to $69.6 million for the
prior fiscal year. Research and development expenses as a
percentage of total revenues were 9.0% and 9.8% for fiscal year
2023 and 2022, respectively.
The VAT refunds and government subsidies were
$28.6 million for fiscal year 2023,
as compared to $30.3 million for the
prior fiscal year, representing a $1.8
million, or 5.8%, decrease.
The income tax expenses and the effective tax rate were
$11.4 million and 9.6% for fiscal
year 2023, respectively, as compared to $16.6 million and 16.7% for the prior fiscal
year, respectively. The effective tax rate fluctuates, as the
Company's subsidiaries contributed different pre-tax income at
different tax rates.
Net income attributable to Hollysys was $106.9 million for fiscal year
2023, representing an increase of 28.6% from
$83.2 million reported in the
prior fiscal year. Non-GAAP net income attributable to
Hollysys was $111.6 million
or $1.80 per diluted share. See the
section entitled "Non-GAAP Measures" for more information about
non-GAAP net income attributable to Hollysys.
Diluted earnings per share was $1.72 for fiscal year 2023, representing an
increase of 27.4% from $1.35 in the
prior fiscal year. Non-GAAP diluted earnings per
share was $1.80 for fiscal year
2023, representing an increase of 17.6% from $1.53 in the prior fiscal year. These were
calculated based on 62.0 million and 61.6 million diluted weighted
average ordinary shares outstanding for the fiscal year ended
June 30, 2023 and 2022, respectively.
See the section entitled "Non-GAAP Measures" for more information
about non-GAAP diluted earnings per share.
Operational Results Analysis for the Fourth Quarter Ended
June 30, 2023
Total revenues for the three months ended June 30, 2023 were $195.0
million, as compared to $182.1
million for the same period of the prior fiscal year,
representing an increase of 7.1%. In terms of revenue by type,
integrated solutions contracts revenue increased by 7.8% to
$160.9 million, products sales
revenue increased by 12.1% to $13.3
million, and services revenue decreased by 0.9% to
$20.8 million.
The following table sets forth the Company's total
revenues by segment for the periods indicated.
(In USD
thousands, except for %)
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
|
|
2023
|
|
2022
|
|
|
|
$
|
% to Total
Revenues
|
|
$
|
% to Total
Revenues
|
|
Industrial
Automation
|
|
141,117
|
72.4
|
|
121,771
|
66.9
|
|
Rail Transportation
Automation
|
|
35,901
|
18.4
|
|
34,215
|
18.8
|
|
Mechanical and
Electrical Solution
|
|
17,945
|
9.2
|
|
26,129
|
14.3
|
|
Total
|
|
194,963
|
100.0
|
|
182,115
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin was 31.2% for the three months
ended June 30, 2023, as compared to 33.7% for the same period
of the prior fiscal year. Gross margin of integrated
solutions contracts, product sales, and service
rendered was 24.1%, 63.4% and 65.7% for the three
months ended June 30, 2023, as compared to 27.1%, 75.4%
and 57.1% for the same period of the prior fiscal year,
respectively. Non-GAAP gross margin was
31.4% for the three months ended June 30, 2023, as
compared to 33.9% for the same period of the prior fiscal
year. Non-GAAP gross margin of integrated solutions
contracts was 24.3% for the three months ended June 30, 2023, as compared to 27.3% for the same
period of the prior fiscal year. See the section entitled "Non-GAAP
Measures" for more information about non-GAAP gross margin and
non-GAAP gross margin of integrated solutions contracts.
Selling expenses were $13.6 million for the three months ended
June 30, 2023, representing an
increase of $2.8 million, or 25.5%,
compared to $10.9 million for the
same period of the prior fiscal year. The increase in selling
expenses was mainly due to the increase in sales headcount to
support the business growth and the implementation of industry key
customer strategy in industrial automation segment. Selling
expenses as a percentage of total revenues were
7.0% and 6.0% for the three months ended June 30, 2023 and 2022, respectively.
General and administrative expenses
were $19.2 million for the three months ended
June 30, 2023, representing a
decrease of $4.1 million, or 17.7%,
compared to $23.3 million for the
same period of the prior fiscal year, which was primarily due to a
$2.7 million decrease in credit
losses provision and $2.0 million
decrease in third-party consulting fees. Share-based compensation
expenses were $0.4 million and
$1.3 million for the three months
ended June 30, 2023 and 2022,
respectively. General and administrative expenses as a
percentage of total revenues were 9.8% and 12.8% for
the three months ended June 30, 2023 and 2022,
respectively.
Research and development expenses were $16.7 million for the three months ended
June 30, 2023, representing an
increase of $0.1 million, or 0.7%,
compared to $16.6 million for the
same period of the prior fiscal year. Research and development
expenses as a percentage of total revenues were 8.6% and 9.1% for
the three months ended June 30, 2023
and 2022, respectively.
The VAT refunds and government subsidies were
$6.4 million for three months ended
June 30, 2023, as compared to
$8.6 million for the same period in
the prior fiscal year, representing a $2.2
million, or 26.1%, decrease. The decrease in VAT refunds and
government subsidies was mainly due to a 2.1 million decrease in
government subsidies.
The income tax expenses and the effective tax rate were
$0.7 million and 2.6% for the three
months ended June 30, 2023,
respectively, as compared to $3.9
million and 14.5% for the comparable period in the prior
fiscal year, respectively. The effective tax rate fluctuates, as
the Company's subsidiaries contributed different pre-tax income at
different tax rates.
Net income attributable to Hollysys was $25.7 million for three months ended
June 30,
2023, representing an increase of 11.7% from
$23.0 million reported in
the comparable period in the prior fiscal year.
Non-GAAP net income attributable to Hollysys was
$26.5 million or $0.43 per diluted share. See the section entitled
"Non-GAAP Measures" for more information about non-GAAP net income
attributable to Hollysys.
Diluted earnings per share was $0.41 for the three months ended
June 30, 2023, representing an
increase of 10.8% from $0.37 for the
comparable period in the prior fiscal year. Non-GAAP
diluted earnings per share was $0.43 for the three months ended
June 30, 2023, representing an
increase of 7.5% from $0.40 for the
comparable period in the prior fiscal year. These were
calculated based on 62.1 million and 61.8 million diluted weighted
average ordinary shares outstanding for the three months ended
June 30, 2023 and 2022, respectively.
See the section entitled "Non-GAAP Measures" for more information
about non-GAAP diluted earnings per share.
Contracts and Backlog Highlights
Hollysys achieved $881.6 million
and $281.2 million in terms of the
value of new contracts for the fiscal year and the three months
ended June 30, 2023, respectively.
The order backlog of contracts was $909.5
million as of June 30, 2023.
The order backlog of contracts represents the amount of unrealized
revenue to be earned from the contracts that Hollysys won. The
detailed breakdown of new contracts and backlog by segment is shown
in the table below:
(In USD
thousands, except for %)
|
|
Value of new
contracts
achieved for the fiscal
year
ended June 30,
2023
|
|
Value of new
contracts
achieved for the three
months
ended June 30,
2023
|
|
Backlog as of June
30,
2023
|
|
|
|
|
|
|
|
$
|
% of Total
Contract
Value
|
|
$
|
% of Total
Contract
Value
|
|
$
|
% of Total
Backlog
|
Industrial
Automation
|
629,559
|
71.4
|
|
199,142
|
70.8
|
|
412,003
|
45.3
|
Rail
Transportation
|
187,376
|
21.3
|
|
69,883
|
24.9
|
|
314,114
|
34.5
|
Mechanical and
Electrical Solutions
|
64,706
|
7.3
|
|
12,187
|
4.3
|
|
183,375
|
20.2
|
Total
|
881,641
|
100.0
|
|
281,212
|
100.0
|
|
909,492
|
100.0
|
Cash Flow Highlights
For the fiscal year ended June 30,
2023, the total net cash outflow was
$70.9 million. The net cash
provided by operating activities was $23.2
million. The net cash used in investing activities was
$59.7 million, primarily due to
$40.9 million purchases of property,
plant and equipment, $126.1 million
purchases of short-term investments, and $1.6 million investment of an equity investee,
which was partially offset by $103.7
million maturity of short-term investments and $4.2 million proceeds from disposal of a
subsidiary. The net cash provided
by financing activities was $17.9 million, primarily due to $18.8 million proceeds from long-term bank
loans.
For the three months ended June
30, 2023, the total net cash outflow was
$32.8 million. The net cash
provided by operating activities was $20.0
million. The net cash used in investing activities was
$16.9 million, primarily due to
$4.1 million purchases of property,
plant and equipment, $25.4 million
purchases of short-term investments and $1.6
million investment of an equity investee, which was
partially offset by $14.2 million
maturity of short-term investments. The net cash provided
by financing activities was $0.1
million.
Balance Sheet Highlights
The total amount of cash and cash equivalents was
$611.6 million, $640.2 million, and $679.8
million as of June 30, 2023,
March 31, 2023, and June 30, 2022, respectively.
For the fiscal year ended June 30, 2023,
DSO was 151 days, as compared to
171 days for the prior fiscal year; inventory
turnover days were 75 days, as compared to 58 days for the
prior fiscal year. The significant increase in inventories was
mainly due to the Company's increase in safety stock level in
response to supply chain fluctuations.
For the three months ended June 30,
2023, DSO was 149 days, as compared to 174
days for the prior fiscal year and 176 days for the last
fiscal quarter; inventory turnover days were 81 days,
as compared to 73 days for the prior fiscal year and 87 days for
the last fiscal quarter.
Financial Performance Guidance
Based on information available as of the date of this press
release, Hollysys provides the following financial performance
guidance for the full fiscal year 2024:
- The revenue is expected to be between $852 million and $930
million, with a year-on-year increase of 10% to 20%.
About Hollysys Automation Technologies Ltd.
Hollysys is a leading automation control system solutions
provider in China, with overseas
operations in eight other countries and regions throughout
Asia. Leveraging its proprietary
technology and deep industry know-how, Hollysys empowers
its customers with enhanced operational safety, reliability,
efficiency, and intelligence which are critical to their
businesses. Hollysys derives its revenues mainly from providing
integrated solutions for industrial automation and rail
transportation automation. In industrial automation, Hollysys
delivers the full spectrum of automation hardware, software, and
services spanning field devices, control systems, enterprise
manufacturing management and cloud-based applications. In rail
transportation automation, Hollysys provides advanced signaling
control and SCADA (Supervisory Control and Data Acquisition)
systems for high-speed rail and urban rail (including subways).
Founded in 1993, with technical expertise and innovation, Hollysys
has grown from a research team specializing in automation control
in the power industry into a group providing integrated automation
control system solutions for customers in diverse industry
verticals. As of June 30, 2022,
Hollysys had cumulatively carried out more than
35,000 projects for approximately 20,000 customers in various
sectors including power, petrochemical, high-speed rail, and urban
rail, in which Hollysys has established leading market
positions.
SAFE HARBOR STATEMENTS
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical fact included
herein are "forward-looking statements," including statements
regarding the ability of the Company to achieve its commercial
objectives; the business strategy, plans and objectives of the
Company and its subsidiaries; and any other statements of
non-historical information. These forward-looking statements are
often identified by the use of forward-looking terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "target," "confident," or similar
expressions, involve known and unknown risks and uncertainties.
Such forward-looking statements, based upon the current beliefs and
expectations of Hollysys' management, are subject to risks and
uncertainties, which could cause actual results to differ from the
forward looking statements. Although the Company believes that the
expectations reflected in these forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties,
and these expectations may prove to be incorrect. Investors should
not place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. The Company's
actual results could differ materially from those anticipated in
these forward-looking statements as a result of a variety of
factors, including those discussed in the Company's reports that
are filed with the Securities and Exchange Commission and available
on its website (http://www.sec.gov). All forward-looking statements
attributable to the Company or persons acting on its behalf are
expressly qualified in their entirety by these factors. Other than
as required under the securities laws, the Company does not assume
a duty to update these forward-looking statements.
For further information, please contact:
Hollysys Automation Technologies Ltd.
www.hollysys.com
+8610-58981386
investors@hollysys.com
HOLLYSYS AUTOMATION
TECHNOLOGIES LTD.
|
CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
(In USD thousands
except for number of shares and per share data)
|
|
|
|
Three months
ended
June 30,
|
|
Fiscal year
ended
June 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Net
revenues
|
|
|
|
|
|
|
|
|
Integrated solutions
contracts revenue
|
$
|
160,896
|
$
|
149,292
|
$
|
632,100
|
$
|
573,567
|
Product
sales
|
|
13,251
|
|
11,823
|
|
47,424
|
|
38,486
|
Revenue from
services
|
|
20,816
|
|
21,000
|
|
97,849
|
|
95,409
|
Total net
revenues
|
|
194,963
|
|
182,115
|
|
777,373
|
|
707,462
|
|
|
|
|
|
|
|
|
|
Costs of integrated
solutions contracts
|
|
122,167
|
|
108,866
|
|
474,046
|
|
422,236
|
Cost of products
sold
|
|
4,847
|
|
2,913
|
|
13,257
|
|
10,247
|
Costs of services
rendered
|
|
7,147
|
|
9,001
|
|
34,585
|
|
35,622
|
Gross
profit
|
|
60,802
|
|
61,335
|
|
255,485
|
|
239,357
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Selling
|
|
13,628
|
|
10,863
|
|
57,243
|
|
45,301
|
General and
administrative
|
|
19,186
|
|
23,323
|
|
63,580
|
|
80,241
|
Research and
development
|
|
16,749
|
|
16,629
|
|
70,200
|
|
69,580
|
VAT refunds and
government subsidies
|
|
(6,359)
|
|
(8,600)
|
|
(28,551)
|
|
(30,309)
|
Total operating
expenses
|
|
43,204
|
|
42,215
|
|
162,472
|
|
164,813
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
17,598
|
|
19,120
|
|
93,013
|
|
74,544
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
625
|
|
256
|
|
3,372
|
|
2,185
|
Foreign exchange
gain
|
|
4,083
|
|
4,000
|
|
6,363
|
|
1,789
|
Gains on disposal of an
investment in an equity investee
|
|
-
|
|
-
|
|
-
|
|
7,995
|
Losses on disposal of
subsidiaries
|
|
-
|
|
-
|
|
-
|
|
(3)
|
Gains on disposal of an
investment in securities
|
|
-
|
|
-
|
|
845
|
|
-
|
Impairment loss of
investments cost
investees
|
|
-
|
|
(773)
|
|
-
|
|
(773)
|
Share of net income of
equity investees
|
|
762
|
|
1,280
|
|
3,116
|
|
1,838
|
Dividend income from
investments in securities
|
|
237
|
|
-
|
|
237
|
|
85
|
Interest
income
|
|
3,374
|
|
3,363
|
|
12,394
|
|
12,698
|
Interest
expenses
|
|
(257)
|
|
(141)
|
|
(878)
|
|
(731)
|
Income before income
taxes
|
|
26,422
|
|
27,105
|
|
118,462
|
|
99,627
|
|
|
|
|
|
|
|
|
|
Income taxes
expenses
|
|
696
|
|
3,928
|
|
11,390
|
|
16,634
|
Net
income
|
$
|
25,726
|
$
|
23,177
|
$
|
107,072
|
$
|
82,993
|
|
|
|
|
|
|
|
|
|
Less: Net income (loss)
attributable to non-controlling interests
|
6
|
|
155
|
|
141
|
|
(189)
|
Net income
attributable to Hollysys Automation
Technologies Ltd.
|
$
|
25,720
|
$
|
23,022
|
$
|
106,931
|
$
|
83,182
|
|
|
|
|
|
|
|
|
|
Other comprehensive
(loss) income, net of tax of nil
|
|
|
|
|
|
|
|
Translation
adjustments
|
|
(70,143)
|
|
(67,103)
|
|
(99,719)
|
|
(46,590)
|
Comprehensive (loss)
income
|
|
(44,417)
|
|
(43,926)
|
|
7,353
|
|
36,403
|
|
|
|
|
|
|
|
|
|
Less: comprehensive
income (loss) attributable to non-
controlling interests
|
(351)
|
|
64
|
|
185
|
|
(1,310)
|
Comprehensive (loss)
income attributable to Hollysys
Automation Technologies Ltd.
|
$
|
(44,066)
|
$
|
(43,990)
|
$
|
7,168
|
$
|
37,713
|
|
|
|
|
|
|
|
|
|
Net income per
ordinary share:
|
|
|
|
|
|
|
|
|
Basic
|
|
0.42
|
|
0.38
|
|
1.74
|
|
1.36
|
Diluted
|
|
0.41
|
|
0.37
|
|
1.72
|
|
1.35
|
Shares used in net
income per share computation:
|
|
|
|
|
|
|
|
|
Basic
|
61,731,177
|
|
61,195,317
|
|
61,521,412
|
|
61,007,806
|
Diluted
|
62,134,923
|
|
61,788,905
|
|
62,034,400
|
|
61,568,476
|
|
|
|
|
|
|
|
|
HOLLYSYS AUTOMATION
TECHNOLOGIES LTD.
|
CONSOLIDATED BALANCE
SHEETS
|
(In USD thousands
except for number of shares and per share data)
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
|
|
|
2023
|
|
2023
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
611,632
|
$
|
640,249
|
|
|
Short-term
investments
|
|
33,202
|
|
23,519
|
|
|
Restricted
cash
|
|
23,009
|
|
26,381
|
|
|
Accounts receivable,
net of allowance for credit losses of $73,009 and $73,283 as
of June 30, 2023 and March 31, 2023,
respectively
|
|
309,822
|
|
308,212
|
|
|
Costs and estimated
earnings in excess of billings, net of allowance for credit
losses
of $14,438 and $14,505 as of June 30, 2023 and
March 31, 2023, respectively
|
|
253,262
|
|
259,778
|
|
|
Accounts receivable
retention
|
|
7,465
|
|
7,729
|
|
|
Other receivables, net
of allowance for credit losses of $12,044 and $12,379 as of
June 30, 2023 and March 31, 2023,
respectively
|
|
19,265
|
|
21,719
|
|
|
Advances to
suppliers
|
|
28,493
|
|
29,321
|
|
|
Amounts due from
related parties
|
|
25,906
|
|
23,968
|
|
|
Inventories
|
|
111,634
|
|
117,452
|
|
|
Prepaid
expenses
|
|
596
|
|
888
|
|
|
Income tax
recoverable
|
|
649
|
|
282
|
|
Total current
assets
|
|
1,424,935
|
|
1,459,498
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Restricted
cash
|
|
13,489
|
|
14,259
|
|
|
Costs and estimated
earnings in excess of billings
|
|
1,746
|
|
1,988
|
|
|
Accounts receivable
retention
|
|
6,587
|
|
7,069
|
|
|
Prepaid
expenses
|
|
3
|
|
3
|
|
|
Property, plant and
equipment, net
|
|
134,626
|
|
137,434
|
|
|
Prepaid land
leases
|
|
11,503
|
|
12,135
|
|
|
Intangible assets,
net
|
|
8,483
|
|
9,343
|
|
|
Investments in equity
investees
|
|
47,603
|
|
47,774
|
|
|
Investments
securities
|
|
1,561
|
|
1,651
|
|
|
Goodwill
|
|
18,939
|
|
20,020
|
|
|
Deferred tax
assets
|
|
11,937
|
|
9,589
|
|
|
Operating lease
right-of-use assets
|
|
3,436
|
|
3,154
|
|
Total non-current
assets
|
|
259,913
|
|
264,419
|
|
Total
assets
|
|
1,684,848
|
|
1,723,917
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Current portion of
long-term loans
|
|
15,231
|
|
262
|
|
|
Accounts
payable
|
|
170,632
|
|
167,070
|
|
|
Construction costs
payable
|
|
11,085
|
|
11,384
|
|
|
Deferred
revenue
|
|
181,387
|
|
185,564
|
|
|
Accrued payroll and
related expenses
|
|
26,742
|
|
18,537
|
|
|
Income tax
payable
|
|
6,414
|
|
4,422
|
|
|
Warranty
liabilities
|
|
3,238
|
|
4,573
|
|
|
Other tax
payables
|
|
10,504
|
|
7,430
|
|
|
Accrued
liabilities
|
|
36,870
|
|
38,326
|
|
|
Amounts due to related
parties
|
|
6,155
|
|
6,181
|
|
|
Operating lease
liabilities
|
|
1,887
|
|
1,510
|
|
Total current
liabilities
|
|
470,145
|
|
445,259
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
Accrued
liabilities
|
|
2,367
|
|
5,513
|
|
|
Long-term
loans
|
|
16,775
|
|
32,740
|
|
|
Accounts
payable
|
|
2,588
|
|
2,717
|
|
|
Deferred tax
liabilities
|
|
13,069
|
|
13,335
|
|
|
Warranty
liabilities
|
|
2,568
|
|
2,557
|
|
|
Operating lease
liabilities
|
|
1,103
|
|
1,343
|
|
|
Other
liability
|
|
-
|
|
68
|
|
Total non-current
liabilities
|
|
38,470
|
|
58,273
|
|
Total
liabilities
|
|
508,615
|
|
503,532
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Ordinary shares, par
value $0.001 per share, 100,000,000 shares authorized;
62,021,930 shares and 62,020,441 shares issued
and outstanding as of June 30,
2023 and March 31, 2023,
respectively
|
|
62
|
|
62
|
|
|
Additional paid-in
capital
|
|
246,908
|
|
261,378
|
|
|
Statutory
reserves
|
|
78,875
|
|
68,874
|
|
|
Retained
earnings
|
|
961,782
|
|
931,625
|
|
|
Accumulated other
comprehensive income
|
|
(112,418)
|
|
(42,631)
|
|
Total Hollysys
Automation Technologies Ltd. stockholder's equity
|
|
1,175,209
|
|
1,219,308
|
|
|
Non-controlling
interests
|
|
1,024
|
|
1,077
|
|
Total
equity
|
|
1,176,233
|
|
1,220,385
|
|
Total liabilities
and equity
|
$
|
1,684,848
|
$
|
1,723,917
|
HOLLYSYS AUTOMATION
TECHNOLOGIES LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In USD
thousands)
|
|
|
|
|
Three
months ended
|
|
Fiscal year
ended
|
June 30,
2023
|
|
June 30,
2023
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net income
|
$
|
25,726
|
$
|
107,072
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
1,920
|
|
8,612
|
|
Amortization of prepaid
land leases
|
|
77
|
|
331
|
|
Amortization of
intangible assets
|
|
325
|
|
1,342
|
|
Allowance for credit
losses
|
|
4,691
|
|
7,540
|
|
(Gain) loss on disposal
of property, plant and equipment
|
|
(24)
|
|
19
|
|
Share of net income of
equity investees
|
|
(762)
|
|
(3,116)
|
|
Share-based
compensation expenses
|
|
437
|
|
3,286
|
|
Deferred income tax
expenses
|
|
(2,733)
|
|
(8,002)
|
|
Gains on disposal of an
investment in securities
|
|
-
|
|
(845)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts receivable and
retention
|
|
(27,279)
|
|
(32,011)
|
|
Costs and estimated
earnings in excess of billings
|
|
(6,710)
|
|
(40,902)
|
|
Inventories
|
|
(243)
|
|
(28,581)
|
|
Advances to
suppliers
|
|
(791)
|
|
2,929
|
|
Other
receivables
|
|
1,385
|
|
1,036
|
|
Prepaid
expenses
|
|
288
|
|
77
|
|
Due from related
parties
|
|
(3,387)
|
|
(704)
|
|
Accounts
payable
|
|
11,772
|
|
7,574
|
|
Deferred
revenue
|
|
5,965
|
|
(10,017)
|
|
Accruals and other
payables
|
|
3,750
|
|
5,947
|
|
Due to related
parties
|
|
(26)
|
|
(144)
|
|
Income tax
payable
|
|
1,952
|
|
1,957
|
|
Other tax
payables
|
|
3,635
|
|
(223)
|
|
Net cash provided by
operating activities
|
|
19,968
|
|
23,177
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Purchases of short-term
investments
|
|
(25,440)
|
|
(126,069)
|
|
Purchases of property,
plant and equipment
|
|
(4,107)
|
|
(40,918)
|
|
Proceeds from disposal
of a subsidiary
|
|
-
|
|
4,175
|
|
Proceeds from disposal
of property, plant and equipment
|
|
146
|
|
309
|
|
Maturity of short-term
investments
|
|
14,219
|
|
103,718
|
|
Proceeds received from
disposal of investment in securities
|
|
-
|
|
845
|
|
Investment of an equity
investee
|
|
(1,653)
|
|
(1,653)
|
|
Acquisition of a
subsidiary, net of cash acquired
|
|
(17)
|
|
(90)
|
|
Net cash used in
investing activities
|
|
(16,852)
|
|
(59,683)
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Proceeds from
short-term bank loans
|
|
-
|
|
293
|
|
Repayments of
short-term bank loans
|
|
-
|
|
(357)
|
|
Proceeds from long-term
bank loans
|
|
298
|
|
18,818
|
|
Repayments of long-term
bank loans
|
|
(190)
|
|
(869)
|
|
Net cash provided by
financing activities
|
|
108
|
|
17,885
|
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes
|
|
(35,983)
|
|
(52,276)
|
|
Net decrease in
cash, cash equivalents and restricted cash
|
$
|
(32,759)
|
$
|
(70,897)
|
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash, beginning of period
|
$
|
680,889
|
$
|
719,027
|
|
Cash, cash equivalents
and restricted cash, end of period
|
|
648,130
|
|
648,130
|
Non-GAAP Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with GAAP, in evaluating our
results, we use the following non-GAAP financial measures: non-GAAP
gross profit and non-GAAP gross margin, non-GAAP gross profit and
non-GAAP gross margin of integrated solutions contracts, non-GAAP
net income attributable to Hollysys Automation Technologies Ltd.,
as well as non-GAAP basic and diluted earnings per share.
These non-GAAP financial measures serve as additional indicators
of our operating performance and not as any replacement for other
measures in accordance with U.S. GAAP. We believe these non-GAAP
measures help identify underlying trends in the Company's business
that could otherwise be distorted by the effect of the share-based
compensation expenses, which are calculated based on the number of
shares or options granted and the fair value as of the grant date,
and amortization of acquired intangible assets. They will not
result in any cash inflows or outflows. We believe that using
non-GAAP measures help our shareholders to have a better
understanding of our operating results and growth prospects.
Non-GAAP gross profit and non-GAAP gross margin, non-GAAP gross
profit and non-GAAP gross margin of integrated solutions contracts,
non-GAAP net income attributable to Hollysys Automation
Technologies Ltd., as well as non-GAAP basic and diluted earnings
per share should not be considered in isolation or construed as an
alternative to gross profit and gross margin, gross profit and
gross margin of integrated solutions contracts, net income
attributable to Hollysys Automation Technologies Ltd., basic and
diluted earnings per share, or any other measure of performance, or
as an indicator of the Company's operating performance. Investors
are encouraged to review the historical non-GAAP financial measures
to the most directly comparable GAAP measures. Non-GAAP gross
profit and gross margin, non-GAAP gross profit and non-GAAP gross
margin of integrated solutions contracts, non-GAAP net income
attributable to Hollysys Automation Technologies Ltd., as well as
non-GAAP basic and diluted earnings per share presented here may
not be comparable to similarly titled measures presented by other
companies. Other companies may calculate similarly titled measures
differently, limiting their usefulness as comparative measures to
the Company's data. The Company encourages investors and others to
review the Company's financial information in its entirety and not
rely on a single financial measure.
We define non-GAAP gross profit and non-GAAP gross margin as
gross profit and gross margin, respectively, adjusted to exclude
non-cash amortization of acquired intangibles. The following table
provides a reconciliation of our gross profit and gross margin to
non-GAAP gross profit and non-GAAP gross margin for the periods
indicated.
(In USD
thousands, except for %)
|
|
|
|
Three months
ended
|
|
Fiscal year
ended
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
$
|
60,802
|
$
|
61,335
|
$
|
255,485
|
$
|
239,357
|
Gross
margin(1)
|
|
31.2 %
|
|
33.7 %
|
|
32.9 %
|
|
33.8 %
|
Add:
|
|
|
|
|
|
|
|
|
Amortization of
acquired intangible
assets
|
|
325
|
|
353
|
|
1,342
|
|
1,356
|
Non-GAAP gross
profit
|
$
|
61,127
|
$
|
61,688
|
$
|
256,827
|
$
|
240,713
|
Non-GAAP gross
margin(2)
|
|
31.4 %
|
|
33.9 %
|
|
33.0 %
|
|
34.0 %
|
|
(1) Gross
margin represents gross profit for the period as a percentage of
revenues for such period.
|
(2) Non-GAAP
gross margin represents non-GAAP gross profit for the period as a
percentage of revenues for such period.
|
We define non-GAAP gross profit and non-GAAP gross margin of
integrated solutions contracts as gross profit and gross margin of
integrated solutions contracts, respectively, adjusted to exclude
non-cash amortization of acquired intangibles associated with
integrated solutions contracts. The following table provides a
reconciliation of the gross profit of integrated solutions
contracts to non-GAAP gross profit and non-GAAP gross margin of
integrated solutions contracts for the periods indicated.
(In USD
thousands, except for %)
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
Fiscal year ended
June 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Gross profit of
integrated
solutions contracts
|
$
|
38,729
|
$
|
40,426
|
$
|
158,054
|
$
|
151,331
|
Gross margin of
integrated
solutions contracts(1)
|
|
24.1 %
|
|
27.1 %
|
|
25.0 %
|
|
26.4 %
|
|
|
|
|
|
|
|
|
|
Add:
Amortization of
acquired intangible
assets
|
|
325
|
|
353
|
|
1,342
|
|
1,356
|
Non-GAAP gross
profit of
integrated solutions contracts
|
$
|
39,054
|
$
|
40,779
|
$
|
159,396
|
$
|
152,687
|
Non-GAAP gross
margin of
integrated solutions
contracts(2)
|
|
24.3 %
|
|
27.3 %
|
|
25.2 %
|
|
26.6 %
|
|
(1) Gross
margin of integrated solutions contracts represents gross profit of
integrated solutions contracts for the period as a
percentage of integrated solutions contracts revenue for such
period.
|
(2) Non-GAAP
gross margin of integrated solutions contracts represents non-GAAP
gross profit of integrated solutions contracts
for the period as a percentage of integrated solutions contracts
revenue for such period.
|
We define non-GAAP net income attributable to Hollysys as net
income attributable to Hollysys adjusted to exclude the share-based
compensation expenses and non-cash amortization of acquired
intangible assets. The following table provides a reconciliation of
net income attributable to Hollysys to non-GAAP net income
attributable to Hollysys for the periods indicated.
(In USD
thousands)
|
|
|
|
Three months
ended
|
|
Fiscal year
ended
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Hollysys
Automation Technologies Ltd.
|
$
|
25,720
|
$
|
23,022
|
$
|
106,931
|
$
|
83,182
|
Add:
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expenses
|
|
437
|
|
1,327
|
|
3,286
|
|
9,709
|
|
Amortization of
acquired intangible
assets
|
|
325
|
|
353
|
|
1,342
|
|
1,356
|
Non-GAAP net income
attributable
to Hollysys Automation
Technologies Ltd.
|
$
|
26,482
|
$
|
24,702
|
$
|
111,559
|
$
|
94,247
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP basic (or diluted) earnings per share represents
non-GAAP net income attributable to Hollysys divided by the
weighted average number of ordinary shares outstanding during the
periods (or on a diluted basis). The following table provides a
reconciliation of our basic (or diluted) earnings per share to
non-GAAP basic (or diluted) earnings per share for the periods
indicated.
(In USD
thousands, except for number of shares and per share
data)
|
|
|
|
Three months
ended
|
|
Fiscal year
ended
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Hollysys
Automation Technologies Ltd.
|
$
|
25,720
|
$
|
23,022
|
$
|
106,931
|
$
|
83,182
|
Add:
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expenses
|
|
437
|
|
1,327
|
|
3,286
|
|
9,709
|
|
Amortization of
acquired intangible assets
|
|
325
|
|
353
|
|
1,342
|
|
1,356
|
Non-GAAP net income
attributable to
Hollysys Automation Technologies
Ltd.
|
$
|
26,482
|
$
|
24,702
|
$
|
111,559
|
$
|
94,247
|
|
|
|
|
|
|
|
|
|
Weighted average number
of basic ordinary
shares
|
|
61,731,177
|
|
61,195,317
|
|
61,521,412
|
|
61,007,806
|
Weighted average number
of diluted ordinary
shares
|
|
62,134,923
|
|
61,788,905
|
|
62,034,400
|
|
61,568,476
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share(1)
|
$
|
0.42
|
$
|
0.38
|
$
|
1.74
|
$
|
1.36
|
Add:
Non-GAAP adjustments to net income per
share(2)
|
|
0.01
|
|
0.02
|
|
0.07
|
|
0.18
|
Non-GAAP basic
earnings per share(3)
|
$
|
0.43
|
$
|
0.40
|
$
|
1.81
|
$
|
1.54
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share(1)
|
$
|
0.41
|
$
|
0.37
|
$
|
1.72
|
$
|
1.35
|
Add:
Non-GAAP adjustments to net income per
share(2)
|
|
0.02
|
|
0.03
|
|
0.08
|
|
0.18
|
Non-GAAP diluted
earnings per share(3)
|
$
|
0.43
|
$
|
0.40
|
$
|
1.80
|
$
|
1.53
|
|
(1) Basic
(or diluted) earnings per share is derived from net income
attributable to ordinary shareholders for computing basic (or
diluted) earnings per share divided by weighted average number of
shares (or on a diluted basis).
|
(2) Non-GAAP
adjustments to net income per share are derived from non-GAAP
adjustments to net income divided by weighted average number of
shares (or on a diluted basis).
|
(3) Non-GAAP
basic (or diluted) earnings per share is derived from non-GAAP net
income attributable to ordinary shareholders for computing non-GAAP
basic (or diluted) earnings per share divided by weighted average
number of shares (or on a diluted basis).
|
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SOURCE Hollysys Automation Technologies Ltd