Exhibit 99.1
Selected Consolidated Financial Data
The following selected condensed consolidated statements of comprehensive income and other financial data for the six months ended December 31, 2020 and 2021, and the consolidated balance sheet data as of June 30, 2021 and December 31, 2021 have been derived from our unaudited condensed consolidated financial statements which are included elsewhere in this report. Our unaudited condensed consolidated financial statements have been prepared and presented in accordance with United States generally accepted accounting principles, or U.S. GAAP.
The selected consolidated financial data should be read in conjunction with, and are qualified in their entirety by reference to, our unaudited condensed consolidated financial statements and related notes and the “Operating and Financial Review and Prospects” included elsewhere in this report.
To facilitate a clear understanding of Hollysys’ operational results, a summary of unaudited financial results is shown as below:
(In USD thousands, except share numbers and per share data) | ||||||||
Six months ended December 31, | ||||||||
2020 | 2021 | |||||||
(Unaudited) | (Unaudited) | |||||||
Statement of Comprehensive Income Data | ||||||||
Net revenues | ||||||||
Integrated solutions contract revenue | $ | 248,174 | $ | 291,068 | ||||
Product sales | 15,026 | 19,517 | ||||||
Revenue from services | 61,595 | 59,051 | ||||||
|
|
|
| |||||
Total net revenues | 324,795 | 369,636 | ||||||
Costs of integrated solutions contracts | 181,737 | 213,963 | ||||||
Costs of products sold | 2,947 | 4,898 | ||||||
Costs of services rendered | 22,991 | 20,393 | ||||||
|
|
|
| |||||
Gross profit | 117,120 | 130,382 | ||||||
Operating expenses | ||||||||
Selling | 18,435 | 23,029 | ||||||
General and administrative | 24,757 | 43,040 | ||||||
Research and development | 28,601 | 36,660 | ||||||
VAT refunds and government subsidies | (8,890 | ) | (10,782 | ) | ||||
|
|
|
| |||||
Total operating expenses | 62,903 | 91,947 | ||||||
|
|
|
| |||||
Income from operations | 54,217 | 38,435 | ||||||
Other income, net | 2,774 | 959 | ||||||
Foreign exchange loss | (5,668 | ) | (1,714 | ) | ||||
Gains on disposal of an investment in an equity investee | — | 7,995 | ||||||
Share of net income of equity investees | 4,659 | 986 | ||||||
Interest income | 6,720 | 6,183 | ||||||
Interest expenses | (277 | ) | (366 | ) | ||||
Dividend income from equity investments | 3 | 179 | ||||||
|
|
|
| |||||
Income before income taxes | 62,428 | 52,657 | ||||||
Income tax expenses | 10,666 | 8,669 | ||||||
|
|
|
| |||||
Net income | 51,762 | 43,988 | ||||||
Less: net losses attributable to non-controlling interests | (151 | ) | (341 | ) | ||||
|
|
|
| |||||
Net income attributable to Hollysys Automation Technologies Ltd. | $ | 51,913 | $ | 44,329 | ||||
|
|
|
| |||||
Other comprehensive income, net of tax of nil | ||||||||
Translation adjustments | $ | 83,653 | $ | 16,559 | ||||
|
|
|
| |||||
Comprehensive income | 135,415 | 60,547 | ||||||
|
|
|
| |||||
Less: comprehensive income (loss) attributable to non-controlling interests | 53 | (175 | ) | |||||
|
|
|
| |||||
Comprehensive income attributable to Hollysys Automation Technologies Ltd. | $ | 135,362 | 60,722 | |||||
|
|
|
| |||||
Net income per share: | ||||||||
Basic | $ | 0.86 | $ | 0.73 | ||||
Diluted | $ | 0.86 | $ | 0.72 | ||||
Shares used in net income per share computation: | ||||||||
Basic | 60,498,431 | 60,884,346 | ||||||
Diluted | 60,693,633 | 61,556,602 |
1
June 30, | December 31, | |||||||
2021 | 2021 | |||||||
(Unaudited) | ||||||||
Balance Sheet Data | ||||||||
Total current assets | 1,387,558 | 1,519,446 | ||||||
Total assets | 1,594,253 | 1,763,034 | ||||||
Total current liabilities | 422,630 | 526,256 | ||||||
Total liabilities | 452,285 | 553,518 | ||||||
Net assets | 1,141,968 | 1,209,516 | ||||||
Non-controlling interests | 4,278 | 4,798 | ||||||
Stockholders’ equity | 1,137,690 | 1,204,718 |
2