Exhibit 99.2
INDEX TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
F-1
MILLENNIUM GROUP INTERNATIONAL HOLDINGS LIMITED
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2022 AND JUNE 30, 2022
December 31, | June 30, | |||||||
2022 | 2022 | |||||||
(Unaudited) | (Audited) | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 26,320,994 | 18,849,049 | ||||||
Restricted cash | - | 598,402 | ||||||
Accounts receivable, net | 11,590,208 | 18,069,511 | ||||||
Prepayments, other receivables and other current assets | 455,074 | 927,987 | ||||||
Inventory | 6,222,507 | 9,819,633 | ||||||
Total current assets | 44,588,783 | 48,264,582 | ||||||
Non-current assets: | ||||||||
Property, plant and equipment, net | 10,022,811 | 10,813,200 | ||||||
Right-of-use assets, net | 3,581,252 | 4,076,816 | ||||||
Intangible assets, net | 367,018 | 432,972 | ||||||
Deferred tax assets, net | 301,953 | 313,315 | ||||||
Other non-current assets | 2,709,603 | 2,108,914 | ||||||
Total non-current assets | 16,982,637 | 17,745,217 | ||||||
Total Assets | 61,571,420 | 66,009,799 | ||||||
LIABILITIES AND SHAREHOLDER’S EQUITY | ||||||||
Current Liabilities: | ||||||||
Bank borrowings | 13,531,414 | 15,813,022 | ||||||
Lease obligation – current | 512,766 | 772,534 | ||||||
Accounts payable | 4,298,581 | 5,665,636 | ||||||
Other payables and accrued liabilities | 2,592,785 | 3,169,289 | ||||||
Tax payable | 554,622 | 354,352 | ||||||
Total current liabilities | 21,490,168 | 25,774,833 | ||||||
Non-current liabilities: | ||||||||
Lease obligation – non-current | 25,069 | 146,927 | ||||||
Total non-current liabilities | 25,069 | 146,927 | ||||||
Total liabilities | 21,515,237 | 25,921,760 | ||||||
COMMITMENTS AND CONTINGENCIES | - | - | ||||||
SHAREHOLDER’S EQUITY | ||||||||
Ordinary shares: USD $0.002 par value per share, 250,000,000 authorized as of December 31, 2022 and June 30, 2022; 10,000,000 shares issued and outstanding as of December 31, 2022 and June 30, 2022, respectively* | 20,000 | 20,000 | ||||||
Additional paid-up capital | 31,101,897 | 31,101,897 | ||||||
Statutory reserves | 1,106,616 | 1,029,144 | ||||||
Accumulated other comprehensive income | (1,708,157 | ) | (708,677 | ) | ||||
Retained earnings | 9,535,827 | 8,645,675 | ||||||
Total shareholders’ equity | 40,056,183 | 40,088,039 | ||||||
Total liabilities and shareholders’ equity | 61,571,420 | 66,009,799 |
F-2
MILLENNIUM GROUP INTERNATIONAL HOLDINGS LIMITED
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED DECEMBER 31, 2022 AND 2021
For the six months ended | ||||||||
December 31, | ||||||||
2022 | 2021 | |||||||
Revenues | 26,328,797 | 35,850,803 | ||||||
Cost of revenues | (20,380,029 | ) | (26,778,609 | ) | ||||
Gross Profit | 5,948,768 | 9,072,194 | ||||||
Operating expenses: | ||||||||
Selling and marketing expenses | (2,875,050 | ) | (3,388,016 | ) | ||||
General and administrative expenses | (2,447,806 | ) | (2,507,120 | ) | ||||
Total operating expenses | (5,322,856 | ) | (5,895,136 | ) | ||||
Income from operations | 625,912 | 3,177,058 | ||||||
Other income/ (loss): | ||||||||
Other income | 808,378 | 76,777 | ||||||
Other expenses | (50,692 | ) | (535,935 | ) | ||||
Interest expense | (282,979 | ) | (204,377 | ) | ||||
474,707 | (663,535 | ) | ||||||
Income before tax expenses | 1,100,619 | 2,513,523 | ||||||
Income tax expenses | (132,995 | ) | (564,229 | ) | ||||
Net income | 967,624 | 1,949,294 | ||||||
Other Comprehensive (Loss) Income | ||||||||
Foreign currency translation adjustment | (999,480 | ) | 426,993 | |||||
Total Comprehensive (Loss) Income | (31,856 | ) | 2,376,287 | |||||
Net income per share attributable to ordinary shareholders basic and diluted | 0.10 | 0.19 | ||||||
Weighted average number of ordinary shares used in computing net income per share basic and diluted* | 10,000,000 | 10,000,000 |
F-3
MILLENNIUM GROUP INTERNATIONAL HOLDINGS LIMITED
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN
SHAREHOLDERS’ EQUITY
FOR THE SIX MONTHS ENDED DECEMBER 31, 2022 AND 2021
Accumulated | ||||||||||||||||||||||||||||
Ordinary | other | |||||||||||||||||||||||||||
Share | Additional | comprehensive | ||||||||||||||||||||||||||
No. of | paid-in | Statutory | income | Retained | ||||||||||||||||||||||||
Shares | Amount | capital | Reserve | (loss) | Earnings | Total | ||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Balance as of July 1, 2021 | 10,000,000 | 20,000 | 17,514,152 | 733,182 | 400,056 | 11,837,448 | 30,504,838 | |||||||||||||||||||||
Appropriations to statutory reserves | - | - | - | 465,876 | - | (465,876 | ) | - | ||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | - | 426,993 | - | 426,993 | |||||||||||||||||||||
Net income | - | - | - | - | - | 1,949,294 | 1,949,294 | |||||||||||||||||||||
Balance as of December 31, 2021 | 10,000,000 | 20,000 | 17,514,152 | 1,199,058 | 827,049 | 13,320,866 | 32,881,125 | |||||||||||||||||||||
Balance as of July 1, 2022 | 10,000,000 | 20,000 | 31,101,897 | 1,029,144 | (708,677 | ) | 8,645,675 | 40,088,039 | ||||||||||||||||||||
Appropriations to statutory reserves | - | - | - | 77,472 | - | (77,472 | ) | - | ||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | - | (999,480 | ) | - | (999,480 | ) | |||||||||||||||||||
Net income | - | - | - | - | - | 967,624 | 967,624 | |||||||||||||||||||||
Balance as of December 31, 2022 | 10,000,000 | 20,000 | 31,101,897 | 1,106,616 | (1,708,157 | ) | 9,535,827 | 40,056,183 |
F-4
MILLENNIUM GROUP INTERNATIONAL HOLDINGS LIMITED
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED DECEMBER 31, 2022 AND 2021
For the six months ended | ||||||||
December 31, | ||||||||
2022 | 2021 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income | 967,624 | 1,949,294 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 852,621 | 794,894 | ||||||
Impairment of inventories | 50,691 | 220,328 | ||||||
(Reversal) Allowance for bad debts | (103,137 | ) | 2,942 | |||||
Changes in operating assets and liabilities: | ||||||||
Deferred tax | 6,094 | (35,677 | ) | |||||
Accounts receivables | 6,051,952 | (1,924,269 | ) | |||||
Prepayments, other receivables and other assets | 241,868 | (406,350 | ) | |||||
Inventory | 3,162,255 | (168,850 | ) | |||||
Prepaid tax | - | 429,057 | ||||||
Right-of-use assets | 398,261 | 374,919 | ||||||
Lease obligation | (351,329 | ) | (228,896 | ) | ||||
Accounts payable | (1,036,468 | ) | 1,016,448 | |||||
Other payables and accruals | (246,357 | ) | (798,779 | ) | ||||
Related party balances | (367,464 | ) | (278,051 | ) | ||||
Tax Payable | 210,526 | - | ||||||
Net Cash from Operating Activities | 9,837,137 | 947,010 | ||||||
Cash Flows from Investing Activities: | ||||||||
Purchases of property, plant and equipment | (170,037 | ) | (136,384 | ) | ||||
Proceeds from sale of property, plant and equipment | 552 | - | ||||||
Purchase of intangible assets | - | (6,829 | ) | |||||
Repayments from related parties | - | 331,102 | ||||||
Net Cash (Used in) from Investing Activities | (169,485 | ) | 187,889 | |||||
Cash Flows from Financing Activities: | ||||||||
Repayment of bank borrowings | (11,733,414 | ) | (7,139,958 | ) | ||||
Proceeds from bank borrowings | 9,381,680 | 7,735,079 | ||||||
Repayments to related parties | - | (515,893 | ) | |||||
Net Cash (Used in) from Financing Activities | (2,351,734 | ) | 79,228 | |||||
Net Increase in Cash and Cash Equivalents | 7,315,918 | 1,214,127 | ||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (442,375 | ) | 125,563 | |||||
Cash, Cash Equivalents and Restricted Cash – Beginning of Period | 19,447,451 | 21,270,077 | ||||||
Cash, Cash Equivalents and Restricted Cash – End of Period | 26,320,994 | 22,609,767 | ||||||
Supplemental Disclosure of Cash Flow Information: | ||||||||
Cash paid for interest | (282,979 | ) | (191,171 | ) | ||||
Cash paid for income taxes | (86,736 | ) | (27,996 | ) |
F-5