☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Ordinary Shares, $0.001 par value per share | HOLI | The NASDAQ Global Select Market | ||
Preferred Share Purchase Rights | N/A | The NASDAQ Global Select Market |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||
Non-accelerated filer | ☐ | |||||||||
Emerging growth company | ☐ |
U.S. | International Financial Reporting Standards as issued by the International Accounting Standards Board ☐ | Other | ☐ |
Page | ||||||
ITEM 1. | 4 | |||||
ITEM | ||||||
4 | ||||||
ITEM | 4 | |||||
ITEM 4. | 38 | |||||
ITEM 4A. | 63 | |||||
ITEM 5. | 64 | |||||
ITEM 6. | 81 | |||||
ITEM 7. | 90 | |||||
ITEM 8. | 91 | |||||
ITEM 9. | 92 | |||||
ITEM 10. | 92 | |||||
ITEM 11. | 104 |
ITEM 12. | 105 | |||||
PART II | ||||||
ITEM 13. | 106 | |||||
ITEM 14. | 106 | |||||
ITEM 15. | 106 | |||||
ITEM 16A. | 107 | |||||
ITEM 16B. | 108 | |||||
ITEM 16C. | 108 | |||||
ITEM 16D. | 108 | |||||
ITEM 16E. | ||||||
109 | ||||||
ITEM | 109 | |||||
ITEM | 110 | |||||
ITEM | 110 | |||||
PART III | ||||||
ITEM 17. | 111 | |||||
ITEM 18. | 111 | |||||
ITEM 19. | 111 |
ITEM 1. | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS |
ITEM 2. | OFFER STATISTICS AND EXPECTED TIMETABLE |
ITEM 3. | KEY INFORMATION |
(In USD thousands, except share numbers and per share data) | ||||||||||||||||||||
Years ended June 30, | ||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||
Statement of Comprehensive Income Data | ||||||||||||||||||||
Revenue | 544,325 | 431,943 | 540,768 | 570,341 | 503,327 | |||||||||||||||
Operating income | 120,583 | 60,270 | 120,244 | 123,626 | 69,428 | |||||||||||||||
Income before income taxes | 137,742 | 83,355 | 129,642 | 143,723 | 97,497 | |||||||||||||||
Net income attributable to Hollysys | 118,471 | 68,944 | 107,161 | 125,261 | 79,396 | |||||||||||||||
Non-GAAP net income attributable to Hollysys | 121,497 | 70,120 | 108,891 | 126,156 | 80,106 | |||||||||||||||
Weighted average ordinary shares: | ||||||||||||||||||||
Basic | 59,170,050 | 60,189,004 | 60,434,019 | 60,456,524 | 60,478,717 | |||||||||||||||
Diluted | 60,611,456 | 61,011,510 | 61,248,565 | 61,273,884 | 60,609,242 | |||||||||||||||
Earnings per share: | ||||||||||||||||||||
Basic | 2.00 | 1.15 | 1.77 | 2.07 | 1.31 | |||||||||||||||
Diluted | 1.97 | 1.14 | 1.75 | 2.05 | 1.31 | |||||||||||||||
Non-GAAP earnings per share: | ||||||||||||||||||||
Basic | 2.05 | 1.16 | 1.80 | 2.09 | 1.32 | |||||||||||||||
Diluted | 2.02 | 1.16 | 1.78 | 2.07 | 1.32 | |||||||||||||||
Balance Sheet Data | ||||||||||||||||||||
Total current assets | 827,310 | 865,356 | 1,000,898 | 1,109,478 | 1,174,494 | |||||||||||||||
Total assets | 1,004,156 | 1,058,254 | 1,210,128 | 1,309,417 | 1,360,835 | |||||||||||||||
Total current liabilities | 297,326 | 302,978 | 333,054 | 341,499 | 327,302 | |||||||||||||||
Total liabilities | 321,471 | 334,714 | 367,775 | 362,257 | 371,949 | |||||||||||||||
Net assets | 682,685 | 723,540 | 842,353 | 947,160 | 988,886 | |||||||||||||||
Non-controlling interests | 8,529 | 21 | 301 | 1,774 | 4,403 | |||||||||||||||
Stockholders’ equity | 674,156 | 723,519 | 842,052 | 945,386 | 984,483 |
(In USD thousands, except share numbers and per share data) | ||||||||||||||||||||
Years ended June 30, | ||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||
Cost of integrated solutions contracts | 310,545 | 277,476 | 314,233 | 325,523 | 281,818 | |||||||||||||||
Less: Amortization of intangible assets | 818 | 623 | 598 | 311 | 300 | |||||||||||||||
Non-GAAP cost of integrated solutions contracts | 309,727 | 276,853 | 313,635 | 325,212 | 281,518 | |||||||||||||||
G&A expenses | 45,832 | 44,297 | 46,323 | 40,701 | 39,114 | |||||||||||||||
Less: Share-based compensation expenses | 3,860 | 464 | 1,207 | 238 | 410 | |||||||||||||||
Non-GAAP G&A expenses | 41,972 | 43,833 | 45,116 | 40,463 | 38,704 | |||||||||||||||
Other income (expenses), net | 4,061 | 1,722 | 4,349 | 2,710 | 4,683 | |||||||||||||||
Add: Acquisition-related incentive share contingent consideration fair value adjustments | (1,745 | ) | — | — | — | — | ||||||||||||||
Add: Fair value adjustments of a bifurcated derivative | 93 | 89 | (75 | ) | 346 | — | ||||||||||||||
Non-GAAP other income, net | 2,409 | 1,811 | 4,274 | 3,056 | 4,683 | |||||||||||||||
Net income attributable to Hollysys | 118,471 | 68,944 | 107,161 | 125,261 | 79,396 | |||||||||||||||
Add: Share-based compensation expenses | 3,860 | 464 | 1207 | 238 | 410 | |||||||||||||||
Amortization of intangible assets | 818 | 623 | 598 | 311 | 300 | |||||||||||||||
Acquisition-related consideration fair value adjustments | (1,745 | ) | — | — | — | — | ||||||||||||||
Fair value adjustments of a bifurcated derivative | 93 | 89 | (75 | ) | 346 | — | ||||||||||||||
Non-GAAP net income attributable to Hollysys | 121,497 | 70,120 | 108,891 | 126,156 | 80,106 | |||||||||||||||
Weighted average number of ordinary shares outstanding used in computation: | ||||||||||||||||||||
Basic | 59,170,050 | 60,189,004 | 60,434,019 | 60,456,524 | 60,478,717 | |||||||||||||||
Diluted | 60,611,456 | 61,011,510 | 61,248,565 | 61,273,884 | 60,609,242 | |||||||||||||||
GAAP earnings per share: Basic | 2.00 | 1.15 | 1.77 | 2.07 | 1.31 | |||||||||||||||
Add: Share-based compensation expenses | 0.07 | 0.01 | 0.02 | — | 0.01 | |||||||||||||||
Amortization of intangible assets | 0.01 | — | 0.01 | 0.01 | — | |||||||||||||||
Acquisition-related consideration fair value adjustments | (0.03 | ) | — | — | — | — | ||||||||||||||
Fair value adjustments of a bifurcated derivative | — | — | — | 0.01 | — | |||||||||||||||
Non-GAAP earnings per share: Basic | 2.05 | 1.16 | 1.80 | 2.09 | 1.32 | |||||||||||||||
GAAP earnings per share: Diluted | 1.97 | 1.14 | 1.75 | 2.05 | 1.31 | |||||||||||||||
Add: Share-based compensation expenses | 0.06 | 0.01 | 0.02 | — | 0.01 | |||||||||||||||
Amortization of intangible assets | 0.01 | 0.01 | 0.01 | 0.01 | — | |||||||||||||||
Acquisition-related consideration fair value adjustments | (0.02 | ) | — | — | — | — | ||||||||||||||
Fair value adjustments of a bifurcated derivative | — | — | — | 0.01 | — | |||||||||||||||
Non-GAAP earnings per share: Diluted | 2.02 | 1.16 | 1.78 | 2.07 | 1.32 |
A. | [Reserved] |
B. |
C. |
D. |
ITEM 4. | INFORMATION ON THE COMPANY |
A. |
C. |
(ii) In July 2017, BCPL, a wholly-owned Singapore subsidiary of the Company, and a Malaysian citizen (the “Trustee”) entered into a trust deed, under which, 49.1% of BCPL’s equity interests in BMJB, a Malaysian company, which previously was a 100% subsidiary of BCPL, was transferred to the Trustee. According to the trust deed, all of the beneficial interests in BMJB belong to BCPL and the Trustee shall hold the legal title of the transferred shares on trust for and act on behalf of BCPL absolutely. Any dividend, interest and other benefits received or receivable by the Trustee will be transferred to BCPL. The Trustee shall exercise the managerial rights and voting power in a manner directed by a prior written notice from BCPL. The Trustee shall be obligated to vote in the same manner as BCPL in the absence of any written notice. In addition, an undated Form of Transfer of Securities with the transferee’s name left blank was duly executed by the Trustee and delivered to BCPL. Therefore, BCPL can transfer the 49.1% of equity interests to any party at any time without further approval by the Trustee. Accordingly, the Company believes it holds all beneficial rights, obligation and the power of the 100% equity interest in BMJB, and therefore consolidates 100% of equity interests in BMJB into its financial statements. |
D. |
Location | Approximate Sq. Meters | |||
Beijing | 120,000 | |||
Hangzhou | 25,000 | |||
Singapore | 1,200 | |||
Malaysia | 3,400 |
ITEM 4A. | UNRESOLVED STAFF COMMENTS |
ITEM 5. | OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
Years Ended June 30, | Years Ended June 30, | |||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||
Number of new contracts won during the year | 3,277 | 4,637 | 4,784 | 4,637 | 4,784 | 5,588 | ||||||||||||||||||
Total amount of new contracts (million) | $ | 634.0 | $ | 724.9 | $ | 549.2 | $ | 724.9 | $ | 549.2 | $ | 734.3 | ||||||||||||
Average price per contract | $ | 193,470 | $ | 156,330 | $ | 114,790 | $ | 156,330 | $ | 114,790 | $ | 131,408 | ||||||||||||
Years Ended June 30, | ||||||||||||||||||||||||
Years Ended June 30, | ||||||||||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||||||||||
Backlog Situation: | 2019 | 2020 | 2021 | |||||||||||||||||||||
Contracts newly entered and unfinished (million) | $ | 321.6 | $ | 348.3 | $ | 262.3 | $ | 348.3 | $ | 262.3 | $ | 356.5 | ||||||||||||
Contracts entered in prior years and unfinished (million) | $ | 247.4 | $ | 245.9 | $ | 309.5 | $ | 245.9 | $ | 309.5 | $ | 328.6 | ||||||||||||
Total amount of backlog (million) | $ | 569.0 | $ | 594.2 | $ | 571.8 | $ | 594.2 | $ | 571.8 | $ | 685.0 |
A. | Operating Results |
(In USD millions) | ||||||||||||||||
Fiscal year ended June 30, | ||||||||||||||||
2020 | 2021 | |||||||||||||||
$ | % of Revenues | $ | % of Revenues | |||||||||||||
Industrial Automation | 240.0 | 47.7 | 337.1 | 56.8 | ||||||||||||
Rail Transportation | 201.3 | 40.0 | 188.2 | 31.7 | ||||||||||||
Mechanical and Electrical Solution | 62.0 | 12.3 | 68.2 | 11.5 | ||||||||||||
Total | 503.3 | 100.0 | 593.5 | 100.0 | ||||||||||||
(In USD millions) | ||||||||||||||||
Fiscal year ended June 30, | ||||||||||||||||
2019 | 2020 | |||||||||||||||
$ | % of Revenues | $ | % of Revenues | |||||||||||||
Industrial Automation | 233.8 | 41.0 | % | 240.0 | 47.7 | % | ||||||||||
Rail Transportation | 208.9 | 36.6 | % | 201.3 | 40.0 | % | ||||||||||
Mechanical and Electrical Solution | 127.6 | 22.4 | % | 62.0 | 12.3 | % | ||||||||||
Total | 570.3 | 100.0 | % | 503.3 | 100.0 | % | ||||||||||
(In USD millions) | ||||||||||||||||
Fiscal year ended June 30, | ||||||||||||||||
2019 | 2020 | |||||||||||||||
$ | % of Revenues | $ | % of Revenues | |||||||||||||
Industrial Automation | 233.8 | 41.0 | 240.0 | 47.7 | ||||||||||||
Rail Transportation | 208.9 | 36.6 | 201.3 | 40.0 | ||||||||||||
Mechanical and Electrical Solution | 127.6 | 22.4 | 62.0 | 12.3 | ||||||||||||
Total | 570.3 | 100.0 | 503.3 | 100.0 | ||||||||||||
(In USD millions) | ||||||||||||||||
Fiscal year ended June 30, | ||||||||||||||||
2018 | 2019 | |||||||||||||||
$ | % of Revenues | $ | % of Revenues | |||||||||||||
Industrial Automation | 224.8 | 41.6 | % | 233.8 | 41.0 | % | ||||||||||
Rail Transportation | 190.6 | 35.2 | % | 208.9 | 36.6 | % | ||||||||||
Mechanical and Electrical Solution | 125.4 | 23.2 | % | 127.6 | 22.4 | % | ||||||||||
Total | 540.8 | 100.0 | % | 570.3 | 100.0 | % | ||||||||||
B. | Liquidity and Capital Resources |
Cash Flow Item | Fiscal Years Ended June 30 | |||||||||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||||||||||
Fiscal Years Ended June 30, | ||||||||||||||||||||||||
(In USD thousands) | 2019 | 2020 | 2021 | |||||||||||||||||||||
Net cash provided by operating activities | $ | 105,719 | $ | 100,521 | $ | 175,124 | $ | 100,521 | $ | 175,124 | $ | 79,283 | ||||||||||||
Net cash used in investing activities | $ | (49,748 | ) | $ | (9,888 | ) | $ | (187,580 | ) | |||||||||||||||
Net cash (used in)/provided by investing activities | $ | (9,888 | ) | $ | (187,580 | ) | $ | 270,258 | ||||||||||||||||
Net cash used in financing activities | $ | (12,197 | ) | $ | (10,155 | ) | $ | (18,213 | ) | $ | (10,155 | ) | $ | (18,213 | ) | $ | (12,218 | ) | ||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | $ | 5,839 | $ | (9,400 | ) | $ | (8,621 | ) | $ | (9,400 | ) | $ | (8,621 | ) | $ | 39,127 | ||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | $ | 49,613 | $ | 71,078 | $ | (39,290 | ) | $ | 71,078 | $ | (39,290 | ) | $ | 376,450 | ||||||||||
Cash, cash equivalents and restricted cash, beginning of year | $ | 237,696 | $ | 287,309 | $ | 358,387 | $ | 287,309 | $ | 358,387 | $ | 319,097 | ||||||||||||
Cash, cash equivalents and restricted cash, end of year | $ | 287,309 | $ | 358,387 | $ | 319,097 | $ | 358,387 | $ | 319,097 | $ | 695,547 |
(In USD thousands) | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||
Long-term Loans | ||||||||||||||||||||
-Principal | 16,006 | 15,308 | 524 | 53 | 121 | |||||||||||||||
-Interest | 508 | 440 | 35 | 9 | 24 | |||||||||||||||
Operating Lease Obligations (1) | 6,110 | 3,302 | 2,792 | 16 | — | |||||||||||||||
Purchase Obligations (2) | 285,788 | 229,407 | 35,238 | 14,095 | 7,048 | |||||||||||||||
Capital Obligations (3) | 67,582 | 35,831 | 29,844 | 1,907 | — | |||||||||||||||
Standby Letters of Credit (4) | 347 | 347 | — | — | — | |||||||||||||||
Performance Guarantees (5) | 56,975 | 35,579 | 19,785 | 1,435 | 176 | |||||||||||||||
Total | 433,316 | 320,214 | 88,218 | 17,515 | 7,369 | |||||||||||||||
Notes: |
(1) | Operating lease obligations represent the future minimum payments under non-cancelable operating leases. |
(2) | As of June 30, 2021, we had $285.8 million in purchase obligations for the coming fiscal years, for purchases of inventories and subcontracts. The inventories will be mainly used for fulfilling existing contracts or new contracts resulted from the expansion of our operations. |
(3) | As of June 30, 2021, we had $67.6 million in capital obligations for the coming fiscal year, mainly for the construction of facilities. |
(4) | We have issued letters of credit to our suppliers to serve as assurance of payment, and issued to our subsidiaries as comprehensive credit. When a letter of credit is issued, a proportion of the total amount covered by the letter of credit may be required to be deposited in the bank, and is not available until the payment has been settled or the letter of credit has expired. As of June 30, 2021, we had $0.3 million in standby letters of credit obligations. |
(5) | We have provided performance guarantees to our customers to serve as assurance of performance for the contractual obligations. When a performance guarantee is issued, a proportion of the total guarantee amount may be required to be deposited in the bank, and is not available until the guarantee is expired. As of June 30, 2021, we had $57.0 million of outstanding performance guarantees obligation, with $8.2 million of restricted cash deposited in banks for performance guarantees. |
C. | Research and Development, Patents and Licenses, Etc. |
D. | Trend Information |
E. |
(In USD thousands) | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||
Long-term Loans | ||||||||||||||||||||
-Principal | 16,265 | 310 | 15,576 | 255 | 124 | |||||||||||||||
-Interest | 1,049 | 502 | 462 | 19 | 66 | |||||||||||||||
Operating Lease Obligations (1) | 6,618 | 3,038 | 3,195 | 385 | — | |||||||||||||||
Purchase Obligations (2) | 233,484 | 187,749 | 28,584 | 11,434 | 5,717 | |||||||||||||||
Capital Obligations (3) | 14,359 | 14,359 | — | — | — | |||||||||||||||
Standby Letters of Credit (4) | 1,850 | 1,850 | — | — | — | |||||||||||||||
Performance Guarantees (5) | 42,117 | 29,141 | 10,648 | 2,328 | — | |||||||||||||||
Total | 315,742 | 236,949 | 58,465 | 14,421 | 5,907 | |||||||||||||||
Product sales |
78 |
80 |
ITEM 6. | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
A. | Directors and Senior Management |
Name | Age | Position | ||||
Li QIAO | 64 | Chairwoman and Director | ||||
Changli WANG | 57 | Chief Executive Officer, Chief Strategy Officer and Director | ||||
Jianyun CHAI | 60 | Director | ||||
Kok Peng TEH | 73 | Director | ||||
Khiaw Ngoh TAN | 64 | Director | ||||
Chit Nim (Colin) SUNG | Deputy Chief Executive Officer | |||||
Steven | Chief Financial Officer | |||||
Co-Chief Operating Officer | ||||||
Co-Chief Operating Officer | ||||||
Chunming HE | Chief Technology Officer | |||||
Hongyuan SHI | Chief Human Resource Officer | |||||
B. | Compensation |
Name | Ordinary Shares Underlying Options Granted/Restricted Shares Awarded | Exercise Price (US$ per Option Granted) | Date of Grant | Date of Expiration | ||||||||||||
Li QIAO | * | (1) | 11.85 | November 16, 2020 | November 16, 2030 | |||||||||||
* | (2) | — | | December 10, 2016 September 19, 2019 November 16, 2020 | | — | ||||||||||
Jianyun CHAI | * | (2) | — | | December 10, 2016 September 19, 2019 November 16, 2020 | | — | |||||||||
Kok Peng TEH | * | (2) | — | November 16, 2020 | — | |||||||||||
Khiaw Ngoh TAN | * | (2) | — | November 16, 2020 | — | |||||||||||
Chit Nim (Colin) SUNG | * | (1) | 11.85 | November 16, 2020 | November 16, 2030 | |||||||||||
* | (2) | — | | December 10, 2016 September 19, 2019 November 16, 2020 | | — | ||||||||||
Steven WANG | * | (1) | 11.85 | November 16, 2020 | November 16, 2030 | |||||||||||
* | (2) | — | November 16, 2020 | — | ||||||||||||
Yue XU | * | (1) | 11.85 | November 16, 2020 | November 16, 2030 | |||||||||||
* | (2) | — | November 16, 2020 | — | ||||||||||||
Lei FANG | * | (1) | 11.85 | November 16, 2020 | November 16, 2030 | |||||||||||
* | (2) | — | November 16, 2020 | — | ||||||||||||
Chunming HE | * | (1) | 11.85 | November 16, 2020 | November 16, 2030 | |||||||||||
* | (2) | — | November 16, 2020 | — | ||||||||||||
Hongyuan SHI | * | (1) | 11.85 | November 16, 2020 | November 16, 2030 | |||||||||||
* | (2) | — | November 16, 2020 | — | ||||||||||||
Chuan (Arden) XIA | * | (1) | 11.85 | November 16, 2020 | November 16, 2030 | |||||||||||
* | (2) | — | November 16, 2020 | — |
* | Less than 1% of our total outstanding ordinary shares on an as-converted basis. |
(1) | Represents ordinary shares underlying options. |
(2) | Represents restricted shares awarded. These restricted shares are vested in quarterly installment over a three-year period commencing from January 2017 to November 2020 in the case of directors and March 2021 in the case of executive officers and other employees. Holders of restricted shares are entitled to dividend and voting rights attached to the underlying ordinary shares but are not permitted to transfer such shares to any third parties unless such shares are registered and qualified under the Securities Act, or unless an exemption from such registration and qualification is otherwise available. |
C. | Board Practices |
D. | Employees |
Category | China | Overseas | Total | |||||||||
Sales & Marketing | 492 | 31 | 523 | |||||||||
Research and development | 713 | — | 713 | |||||||||
Engineering | 1,010 | 482 | 1,492 | |||||||||
Production | 368 | — | 368 | |||||||||
Management | 362 | 140 | 502 | |||||||||
Total | 2,945 | 653 | 3,598 | |||||||||
Category | China | Overseas | Total | |||||||||
Sales & Marketing | 512 | 14 | 526 | |||||||||
Research and development | 893 | — | 893 | |||||||||
Engineering | 1,113 | 512 | 1,625 | |||||||||
Production | 357 | 6 | 363 | |||||||||
Management | 393 | 76 | 469 | |||||||||
Total | 3,268 | 608 | 3,876 | |||||||||
E. | Share Ownership |
Name & Address of Beneficial Owner | Office, if Any | Title of Class | Amount & Nature of Beneficial Ownership (1) | Percent of Class (2) | ||||||||
Officers and Directors | ||||||||||||
Chit Nim (Colin) SUNG | Chief Executive Officer and Director | Ordinary Shares | 90,000 | (3) | * | |||||||
Steven WANG | Chief Financial Officer | Ordinary Shares | * | * | ||||||||
Lei FANG | Co-Chief Operating Officer | Ordinary Shares | 681,471 | (4) | 1.13 | % | ||||||
Yue XU | Co-Chief Operating Officer | Ordinary Shares | * | * | ||||||||
Chunming HE | Chief Technology Officer | Ordinary Shares | * | * | ||||||||
Hongyuan SHI | Chief Human Resource Officer | Ordinary Shares | * | * | ||||||||
Li QIAO | Chairwoman | Ordinary Shares | 558,088 | (5) | * | |||||||
Jianyun CHAI | Director | Ordinary Shares | 60,000 | (6) | * | |||||||
Kok Peng TEH | Director | Ordinary Shares | * | * | ||||||||
Khiaw Ngoh TAN | Director | Ordinary Shares | * | * | ||||||||
5% Securities Holder | ||||||||||||
Davis Selected Advisers, L.P. | Ordinary Shares | 6,602,765 | (7) | 10.91 | % | |||||||
Eastspring Investments (Singapore) Limited | Ordinary Shares | 5,953,707 | (8) | 9.83 | % | |||||||
Ace Lead Profits Limited. | Ordinary Shares | 4,144,223 | (9) | 6.85 | % |
Ordinary Shares Beneficially Owned as of February 4, 2022 | ||||||||||||
Title (if any) | Number | % | ||||||||||
Officers and Directors † | ||||||||||||
Li QIAO | Chairwoman | 681,838 | (1) | 1.10 | ||||||||
Changli WANG | Director, Chief Executive Officer and Chief Strategy Officer | * | * | |||||||||
Jianyun CHAI | Director | * | * | |||||||||
Kok Peng THE | Director | * | * | |||||||||
Khiaw Ngoh TAN | Director | * | * | |||||||||
Chit Nim (Colin) SUNG | Deputy Chief Executive Officer | * | * | |||||||||
Steven WANG | Chief Financial Officer | * | * | |||||||||
Yue XU | Co-Chief Operating Officer | * | * | |||||||||
Lei FANG | Co-Chief Operating Officer | 769,467 | (2) | 1.24 | ||||||||
Chunming HE | Chief Technology Officer | * | * | |||||||||
Hongyuan SHI | Chief Human Resource Officer | * | * | |||||||||
Chuan (Arden) XIA | Chief Public Relations Officer | * | * | |||||||||
All directors and officers as a group | 2,382,981 | 3.84 | ||||||||||
5% Securities Holder | ||||||||||||
Davis Selected Advisers, L.P. | 6,802,977 | (3) | 10.98 | |||||||||
FIL Ltd | 4,447,326 | (4) | 7.18 | |||||||||
Ace Lead Profit Limited | 4,144,223 | (5) | 6.69 | |||||||||
M&G Investment Management Limited | 3,098,130 | (6) | 5.00 |
* | Less than 1% |
† | The business address of each director and officer set forth in the table is c/o Hollysys Automation Technologies Ltd., No. 2 Disheng Middle Road, Beijing Economic-Technological Development Area, Beijing, China 100176. |
(1) |
(2) | Represents (i) 681,471 ordinary shares held by Mr. Lei FANG through Golden Result Enterprises Limited, (ii) 19,242 vested restricted shares, (iii) 57,758 unvested restricted shares, and (iv) 10,996 ordinary shares underlying options exercisable within 60 days after February 4, 2022. |
(3) | Represents 6,934,478 ordinary shares held by Davis Selected Advisers, L.P., as last reported in a Schedule 13G/A filed with the SEC on February 11, 2022. |
(4) | Represents 4,380,844 ordinary shares held by FIL Ltd, as last reported in a Schedule 13G/A filed with the SEC on February 9, 2022. |
(5) | Represents 4,144,223 ordinary shares held by Ace Lead Profits Limited, as reported in a Schedule 13D filed with the SEC on June 29, 2021. As set forth therein, Ace Lead Profits Limited is wholly owned and controlled by |
(6) |
ITEM 7. | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
A. | Major Shareholders |
B. | Related Party Transactions |
C. | Interests of Experts and Counsel |
ITEM 8. | FINANCIAL INFORMATION |
A. | Consolidated Statements and Other Financial Information |
B. | Significant Changes |
ITEM 9. | THE OFFER AND LISTING |
A. | Offer and Listing Details |
B. | Plan of Distribution |
C. | Markets |
D. | Selling Shareholders |
E. | Dilution |
F. | Expenses of Issue |
ITEM 10. | ADDITIONAL INFORMATION |
A. | Share Capital |
B. | Memorandum and Articles of Association |
C. | Material Contracts |
D. | Exchange Controls |
E. | Taxation |
F. | Dividends and Paying Agents |
Year | Announcement Date | Record Date | Payment Date | Dividend Amount (per ordinary share) | ||||||
2016 | September 26, 2016 | October 26, 2016 | November 11, 2016 | $ | 0.20 | |||||
2017 | September 25, 2017 | October 16, 2017 | November 06, 2017 | $ | 0.12 | |||||
2018 | September 27, 2018 | October 22, 2018 | November 12, 2018 | $ | 0.18 | |||||
2019 | September 27, 2019 | October 22, 2019 | November 12, 2019 | $ | 0.21 | |||||
2020 | October 5, 2020 | October 22, 2020 | November 20, 2020 | $ | 0.20 |
G. | Statement by Expert |
H. | Documents on Display |
I. | Subsidiary Information |
ITEM 11. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 12. | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
ITEM 13. | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
ITEM 14. | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITIES HOLDERS AND USE OF PROCEEDS |
ITEM 15. | CONTROLS AND PROCEDURES |
ITEM 16A. | AUDIT COMMITTEE FINANCIAL EXPERT |
ITEM 16B. | CODE OF ETHICS |
ITEM 16C. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
Union Power | Ernst & Young | |||||||||||||||||||
(in USD) | FY2021 | FY2021 | FY2020 | |||||||||||||||||
Audit fees (1) | $ | 2,800,000 | $ | 1,206,143 | $ | 1,291,014 | ||||||||||||||
Audit-related fees (2) | - | 89,737 | 85,363 | |||||||||||||||||
Tax fees (3) | - | 31,834 | 22,826 | |||||||||||||||||
Total | $ | 2,800,000 | $ | 1,327,714 | $ | 1,399,203 | ||||||||||||||
(1) | Audit fees were related to the audit of our annual financial statements and services that are normally provided by the accountant in connection with statutory and regulatory filings. |
(2) | Audit-related fees include fees for services rendered related to our quarterly financial information for the fiscal years ended June 30, 2021 and 2020. |
(3) |
ITEM 16D. | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES |
ITEM 16E. | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
ITEM 16F. | CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT |
ITEM 16G. | CORPORATE GOVERNANCE |
ITEM 16H. | MINE SAFETY DISCLOSURE |
ITEM 17. | FINANCIAL STATEMENTS |
ITEM 18. | FINANCIAL STATEMENTS |
ITEM 19. | EXHIBITS |
Number | Description | |
1.1 | ||
2.1 | ||
2.2 | ||
4.1 | ||
8.1 |
11.1 | ||
12.1 | ||
12.2 | ||
13.1* | ||
13.2* | ||
15.1 | ||
15.2 | ||
99.1 | ||
101.INS | Inline XBRL Instant | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL | ||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
* | Furnished with this annual report on Form 20-F |
HOLLYSYS AUTOMATION TECHNOLOGIES LTD. | ||||||
/s/ | ||||||
Chief Executive Officer | ||||||
Date: |
Page | |||||||
F-2 | |||||||
F-6 | |||||||
F-8 | |||||||
F-10 | |||||||
F-12 | |||||||
F-13 |
Revenue Recognition and Contracts with Customers – Long-Term Fixed Price Contracts Critical Audit Matter Description All integrated solutions contracts are long-term fixed price contracts whereby revenue is recognized over the contract term (“over time”) as the work progresses and control of the goods and services is transferred to the customer. Revenue for these contracts is recognized based on the extent of progress toward completion, generally measured by using a cost-to-cost Accounting for integrated solutions contracts requires management’s judgment in estimating total contract costs. Contract costs, which can be incurred over several years, are largely determined based on negotiated or estimated purchase contract terms and consider factors such as historical performance, technical and schedule risk, internal and subcontractor performance trends, and anticipated labor agreements. Given the significant judgments necessary to estimate costs associated with these long-term contracts, auditing integrated solutions contracts requires a high degree of auditor judgment. How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to integrated solutions contracts included the following, among others: We tested the effectiveness of internal controls over the recognition of revenue and the determination of estimated contract costs including controls over the review of management’s assumptions and key inputs used to recognize revenue and costs on integrated solutions contracts using the cost-to-cost | ||
Allowance for Credit Loss – Accounts Receivable | ||
June 30, | ||||||||||||
Notes | 2019 | 2020 | ||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 332,509 | $ | 288,782 | ||||||||
Time deposits with original maturities over three months | 145,139 | 324,949 | ||||||||||
Restricted cash | 22,260 | 8,663 | ||||||||||
Accounts receivable, net of allowance for doubtful accounts of $47,162 and $41,618 | 4 | 282,594 | 242,449 | |||||||||
Costs and estimated earnings in excess of billings, net of allowance for doubtful accounts of $6,981 and $6,150 as of June 30, 2019 and 2020, respectively | 5 | 197,955 | 186,879 | |||||||||
Accounts receivable retention | 6 | 5,468 | 6,088 | |||||||||
Other receivables, net of allowance for doubtful accounts of $4,879 and $6,224 | 27,109 | 28,257 | ||||||||||
Advances to suppliers | 12,901 | 17,255 | ||||||||||
Amounts due from related parties | 22 | 36,295 | 21,444 | |||||||||
Inventories | 3 | 42,983 | 48,210 | |||||||||
Prepaid expenses | 644 | 648 | ||||||||||
Income tax recoverable | 3,621 | 870 | ||||||||||
Total current assets | 1,109,478 | 1,174,494 | ||||||||||
Non-current assets: | ||||||||||||
Restricted cash | 3,618 | 21,652 | ||||||||||
Costs and estimated earnings in excess of billings | — | 2,309 | ||||||||||
Accounts receivable retention | 6 | 6,390 | 4,717 | |||||||||
Prepaid expenses | 2 | 6 | ||||||||||
Property, plant and equipment, net | 7 | 76,006 | 78,050 | |||||||||
Prepaid land leases | 8 | 16,599 | 15,742 | |||||||||
Intangible assets, net | 9 | 1,383 | 1,713 | |||||||||
Investments in equity investees | 11 | 40,386 | 41,133 |
June 30, | ||||||||||||
Notes | 2020 | 2021 | ||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 288,782 | $ | 664,321 | ||||||||
Short-term investments | 324,949 | 48,808 | ||||||||||
Restricted cash | 8,663 | 25,294 | ||||||||||
Accounts receivable, net of allowance for credit losses of $41,618 and $66,839 as of June 30, 2020 and 2021, respectively | 4 | 242,449 | 330,853 | |||||||||
Costs and estimated earnings in excess of billings, net of allowance for credit losses of $6,150 and $11,835 as of June 30, 2020 and 2021, respectively | 5 | 186,879 | 196,706 | |||||||||
Accounts receivable retention | 6 | 6,088 | 4,943 | |||||||||
Other receivables, net of allowance for credit losses of $6,224 and $16,675 as of June 30, 2020 and 2021, respectively | 28,257 | 18,937 | ||||||||||
Advances to suppliers | 17,255 | 20,140 | ||||||||||
Amounts due from related parties | 22 | 21,444 | 28,243 | |||||||||
Inventories | 3 | 48,210 | 47,912 | |||||||||
Prepaid expenses | 648 | 937 | ||||||||||
Income tax recoverable | 870 | 464 | ||||||||||
Total current assets | 1,174,494 | 1,387,558 | ||||||||||
Non-current assets: | ||||||||||||
Restricted cash | 21,652 | 5,932 | ||||||||||
Costs and estimated earnings in excess of billings | 2,309 | 1,230 | ||||||||||
Accounts receivable retention | 6 | 4,717 | 4,397 | |||||||||
Prepaid expenses | 6 | 1 | ||||||||||
Property, plant and equipment, net | 7 | 78,050 | 94,046 | |||||||||
Prepaid land leases | 8 | 15,742 | 16,568 | |||||||||
Intangible assets, net | 9 | 1,713 | 1,399 | |||||||||
Investments in equity investees | 11 | 41,133 | 60,166 | |||||||||
Investments in securities | 4,640 | 2,622 | ||||||||||
Goodwill | 10 | 1,460 | 1,598 | |||||||||
Deferred tax assets | 19 | 8,909 | 12,480 | |||||||||
Operating lease right-of-use | 20 | 6,010 | 6,256 | |||||||||
Total non-current assets | 186,341 | 206,695 | ||||||||||
Total assets | $ | 1,360,835 | $ | 1,594,253 | ||||||||
June 30, | |||||||||||||
Notes | 2019 | 2020 | |||||||||||
Investments securities | 11 | 4,776 | 4,640 | ||||||||||
Goodwill | 10 | 37,054 | 1,460 | ||||||||||
Deferred tax assets | 19 | 13,725 | 8,909 | ||||||||||
Operating lease right-of-use assets | 20 | — | 6,010 | ||||||||||
Total non-current assets | 199,939 | 186,341 | |||||||||||
Total assets | $ | 1,309,417 | $ | 1,360,835 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||
Current liabilities $6,919 as of June 30, 2019 and 2020, respectively): | |||||||||||||
Derivative financial liability | 15 | $ | 758 | $ | 0 | ||||||||
Short-term bank loans | 13 | 1,909 | — | ||||||||||
Current portion of long-term loans | 14 | 20,310 | 320 | ||||||||||
Accounts payable | 110,384 | 117,460 | |||||||||||
Construction costs payable | 94 | 2,350 | |||||||||||
Deferred revenue | 141,385 | 139,242 | |||||||||||
Accrued payroll and related expenses | 14,512 | 17,245 | |||||||||||
Income tax payable | 2,541 | 3,142 | |||||||||||
Warranty liabilities | 12 | 8,039 | 6,604 | ||||||||||
Other tax payables | 665 | 3,279 | |||||||||||
Accrued liabilities | 35,507 | 31,595 | |||||||||||
Amounts due to related parties | 22 | 5,395 | 3,576 | ||||||||||
Operating lease liabilities | 20 | — | 2,489 | ||||||||||
Total current liabilities | 341,499 | 327,302 | |||||||||||
Non-current liabilitiesNaN as of June 30, 2019 and 2020, respectively): | |||||||||||||
Accrued liabilities | 3,530 | 5,635 | |||||||||||
Long-term loans | 14 | 978 | 15,780 | ||||||||||
Accounts payable | — | 2,530 | |||||||||||
Deferred tax liabilities | 19 | 12,173 | 13,940 | ||||||||||
Warranty liabilities | 12 | 4,077 | 3,460 | ||||||||||
Operating lease liabilities | 20 | — | 3,302 | ||||||||||
Total non-current liabilities | 20,758 | 44,647 | |||||||||||
June 30, | ||||||||||
Notes | 2020 | 2021 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
Current liabilities | ||||||||||
Current portion of long-term loans | 14 | $ | 320 | $ | 15,308 | |||||
Accounts payable | 117,460 | 140,235 | ||||||||
Construction costs payable | 2,350 | 1,292 | ||||||||
Deferred revenue | 139,242 | 184,543 | ||||||||
Accrued payroll and related expenses | 17,245 | 22,077 | ||||||||
Income tax payable | 3,142 | 3,508 | ||||||||
Warranty liabilities | 12 | 6,604 | 5,902 | |||||||
Other tax payables | 3,279 | 6,373 | ||||||||
Accrued liabilities | 31,595 | 38,633 | ||||||||
Amounts due to related parties | 22 | 3,576 | 1,661 | |||||||
Operating lease liabilities | 20 | 2,489 | 3,098 | |||||||
Total current liabilities | 327,302 | 422,630 | ||||||||
Non-current liabilities | ||||||||||
Accrued liabilities | 5,635 | 4,569 | ||||||||
Long-term loans | 14 | 15,780 | 698 | |||||||
Accounts payable | 2,530 | 982 | ||||||||
Deferred tax liabilities | 19 | 13,940 | 16,829 | |||||||
Warranty liabilities | 12 | 3,460 | 3,649 | |||||||
Operating lease liabilities | 20 | 3,302 | 2,928 | |||||||
Total non-current liabilities | 44,647 | 29,655 | ||||||||
Total liabilities | 371,949 | 452,285 | ||||||||
Commitments and contingencies | 23 | 0— | 0— | |||||||
Stockholders’ equity: | 16 | |||||||||
Ordinary shares, par value $0.001 per share, 100,000,000 shares authorized; 60,537,099 shares and 61,367,337 shares issued and outstanding as of June 30, 2020 and 2021, respectively | 61 | 61 | ||||||||
Additional paid-in capital | 224,043 | 233,768 | ||||||||
Statutory reserves | 49,423 | 64,449 | ||||||||
Retained earnings | 774,473 | 806,598 | ||||||||
Accumulated other comprehensive (loss) income | (63,517 | ) | 32,814 | |||||||
Total Hollysys Automation Technologies Ltd. stockholders’ equity | 984,483 | 1,137,690 | ||||||||
Non-controlling interests | 4,403 | 4,278 | ||||||||
Total equity | 988,886 | 1,141,968 | ||||||||
Total liabilities and equity | $ | 1,360,835 | $ | 1,594,253 | ||||||
June 30, | |||||||||||||
Notes | 2019 | 2020 | |||||||||||
Total liabilities | 362,257 | 371,949 | |||||||||||
Commitments and contingencies | 23 | — | — | ||||||||||
Stockholders’ equity: | 16 | ||||||||||||
Ordinary shares, par value $0.001 per share, 100,000,000 shares authorized; 60,342,099 shares and 60,537,099 shares issued and outstanding as of June 30, 2019 and 2020, respectively | 60 | 61 | |||||||||||
Additional paid-in capital | 223,634 | 224,043 | |||||||||||
Statutory reserves | 48,698 | 49,423 | |||||||||||
Retained earnings | 708,515 | 774,473 | |||||||||||
Accumulated other comprehensive income | (35,521 | ) | (63,517 | ) | |||||||||
Total Hollysys Automation Technologies Ltd. stockholders’ equity | 945,386 | 984,483 | |||||||||||
Non-controlling interests | 1,774 | 4,403 | |||||||||||
Total equity | 947,160 | 988,886 | |||||||||||
Total liabilities and equity | $ | 1,309,417 | $ | 1,360,835 | |||||||||
Year ended June 30, | ||||||||||||||||
Notes | 2018 | 2019 | 2020 | |||||||||||||
Net revenues | ||||||||||||||||
Integrated solutions contracts revenue (including revenue from related parties of $996, $1,323 and $227 | $ | 466,461 | $ | 467,371 | $ | 414,272 | ||||||||||
Product sales (including revenue from related parties of $10,834, $10,287 and $3,003 for the years ended June 30, 2018, 2019 and 2020, respectively) | 40,233 | 33,102 | 20,144 | |||||||||||||
Revenue from services | 34,074 | 69,868 | 68,911 | |||||||||||||
Total net revenues | 540,768 | 570,341 | 503,327 | |||||||||||||
Costs of integrated solutions contracts (including purchases from related parties of $88, NaN and $1,400 | 314,233 | 325,523 | 281,818 | |||||||||||||
Costs of products sold (including purchases from related parties of $5, $706 and $177 for the years ended June 30, 2018, 2019 and 2020, respectively) | 10,770 | 7,571 | 5,456 | |||||||||||||
Costs of services rendered | 9,885 | 26,081 | 25,485 | |||||||||||||
Gross profit | 205,880 | 211,166 | 190,568 | |||||||||||||
Operating expenses | ||||||||||||||||
Selling | 27,158 | 28,926 | 30,642 | |||||||||||||
General and administrative | 46,323 | 40,701 | 39,114 | |||||||||||||
Goodwill impairment charge | — | 11,623 | 35,767 | |||||||||||||
Research and development (including resea from related parties of NaN, NaN and $655 for the years ended June 30, 2018, 2019 and 2020, respectively)rch and development | 36,605 | 37,025 | 41,876 | |||||||||||||
VAT refunds and government subsidies | (24,450 | ) | (30,735 | ) | (26,259 | ) | ||||||||||
Total operating expenses | 85,636 | 87,540 | 121,140 | |||||||||||||
Income from operations | 120,244 | 123,626 | 69,428 | |||||||||||||
Other income, net (including other income from related parties of $731, $2,520 and $3,414 | 4,349 | 2,710 | 4,683 |
Year ended June 30, | ||||||||||||||
Notes | 2019 | 2020 | 2021 | |||||||||||
Net revenues | ||||||||||||||
Integrated solutions contracts revenue (including revenue from related parties of $1,323, $227 and $1,446 for the years ended June 30, 2019, 2020 and 2021, respectively) | $ | 467,371 | $ | 414,272 | $ | 460,180 | ||||||||
Product sales (including revenue from related parties of $10,287, $3,003 and $8,186 for the years ended June 30, 2019, 2020 and 2021, respectively) | 33,102 | 20,144 | 28,667 | |||||||||||
Revenue from services | 69,868 | 68,911 | 104,619 | |||||||||||
Total net revenues | 570,341 | 503,327 | 593,466 | |||||||||||
Costs of integrated solutions contracts (including purchases from related parties of NaN, $1,400 and $1,860 for the years ended June 30, 2019, 2020 and 2021, respectively) | 325,523 | 281,818 | 336,471 | |||||||||||
Costs of products sold (including purchases from related parties of $706, $177 and $1,198 for the years ended June 30, 2019, 2020 and 2021, respectively) | 7,571 | 5,456 | 5,293 | |||||||||||
Costs of services rendered | 26,081 | 25,485 | 33,423 | |||||||||||
Gross profit | 211,166 | 190,568 | 218,279 | |||||||||||
Operating expenses | ||||||||||||||
Selling | 28,926 | 30,642 | 35,197 | |||||||||||
General and administrative | 40,701 | 39,114 | 69,982 | |||||||||||
Goodwill impairment charge | 11,623 | 35,767 | 0 | |||||||||||
Research and development (including research and development from related parties of NaN, $655 and $212 for the years ended June 30, 2019, 2020 and 2021, respectively) | 37,025 | 41,876 | 55,954 | |||||||||||
VAT refunds and government subsidies | (30,735 | ) | (26,259 | ) | (30,099 | ) | ||||||||
Total operating expenses | 87,540 | 121,140 | 131,034 | |||||||||||
Year ended June 30, | ||||||||||||||
Notes | 2018 | 2019 | 2020 | |||||||||||
Foreign exchange (loss) gain | (1,099 | ) | (1,161 | ) | 599 | |||||||||
Gains on deconsolidation of subsidiaries where the Company retains an equity interest | — | 5,768 | — | |||||||||||
Gains on disposal of an investment in an equity investee | — | — | 5,763 | |||||||||||
Share of net (losses) income of equity investees | (1,571 | ) | 404 | 3,131 | ||||||||||
Interest income | 7,318 | 11,839 | 13,060 | |||||||||||
Interest expenses | (692 | ) | (575 | ) | (306 | ) | ||||||||
Dividend income from equity investments | 1,093 | 1,112 | 1,139 | |||||||||||
Income before income taxes | 129,642 | 143,723 | 97,497 | |||||||||||
Income tax expenses | 19 | 22,205 | 18,184 | 18,171 | ||||||||||
Net income | 107,437 | 125,539 | 79,326 | |||||||||||
Less: Net income (losses) attributable to non-controlling interests | 276 | 278 | (70 | ) | ||||||||||
Net income attributable to Hollysys Automation Technologies Ltd. | $ | 107,161 | $ | 125,261 | $ | 79,396 | ||||||||
Other comprehensive income, net of tax of nil | ||||||||||||||
Translation adjustments | $ | 17,410 | $ | (31,602 | ) | $ | (28,313 | ) | ||||||
Comprehensive income | 124,847 | 93,937 | 51,013 | |||||||||||
Less: Comprehensive income (loss) attributable tonon-controlling interests | 280 | 17 | (387 | ) | ||||||||||
Comprehensive income attributable to Hollysys Automation Technologies Ltd. | $ | 124,567 | $ | 93,920 | $ | 51,400 | ||||||||
Net income per share: | ||||||||||||||
Basic | 21 | $ | 1.77 | 2.07 | 1.31 | |||||||||
Diluted | 21 | $ | 1.75 | 2.05 | 1.31 | |||||||||
Shares used in net income per share computation: | ||||||||||||||
Basic | 60,434,019 | 60,456,524 | 60,478,717 | |||||||||||
Diluted | 61,248,565 | 61,273,884 | 60,609,242 |
Year ended June 30, | ||||||||||||||
Notes | 2019 | 2020 | 2021 | |||||||||||
Income from operations | $ | 123,626 | $ | 69,428 | $ | 87,245 | ||||||||
Other income, net (including other income from related parties of $2,520, $3,414 and $2,445 for the years ended June 30, 2019, 2020 and 2021, respectively) | 2,710 | 4,683 | 10,449 | |||||||||||
Foreign exchange (loss) gain | (1,161 | ) | 599 | (6,219 | ) | |||||||||
Gains on deconsolidation of subsidiaries where the Company retains an equity interest | 5,768 | 0 | 0 | |||||||||||
Gains on disposal of an investment in an equity investee | — | 5,763 | 0 | |||||||||||
Gains on disposal of an investment in securities | — | — | 3,323 | |||||||||||
Share of net income of equity investees | 404 | 3,131 | 604 | |||||||||||
Interest income | 11,839 | 13,060 | 14,131 | |||||||||||
Interest expenses | (575 | ) | (306 | ) | (553 | ) | ||||||||
Dividend income from equity investments | 1,112 | 1,139 | 912 | |||||||||||
Income before income taxes | 143,723 | 97,497 | 109,892 | |||||||||||
Income tax expenses | 19 | 18,184 | 18,171 | 20,554 | ||||||||||
Net income | 125,539 | 79,326 | 89,338 | |||||||||||
Less: Net income (losses) attributable to non-controlling interests | 278 | (70 | ) | (371 | ) | |||||||||
Net income attributable to Hollysys Automation Technologies Ltd. | $ | 125,261 | $ | 79,396 | $ | 89,709 | ||||||||
Other comprehensive income, net of tax of nil | ||||||||||||||
Translation adjustments | $ | (31,602 | ) | $ | (28,313 | ) | $ | 96,577 | ||||||
Comprehensive income | 93,937 | 51,013 | 185,915 | |||||||||||
Less: Comprehensive income (loss) attributable to non-controlling interests | 17 | (387 | ) | (125 | ) | |||||||||
Comprehensive income attributable to Hollysys Automation Technologies Ltd. | $ | 93,920 | $ | 51,400 | $ | 186,040 | ||||||||
Net income per share: | ||||||||||||||
Basic | 21 | $ | 2.07 | 1.31 | 1.48 | |||||||||
Diluted | 21 | $ | 2.05 | 1.31 | 1.46 | |||||||||
Shares used in net income per share computation: | ||||||||||||||
Basic | 60,456,524 | 60,478,717 | 60,566,709 | |||||||||||
Diluted | 61,273,884 | 60,609,242 | 61,513,749 |
Year ended June 30, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 107,437 | $ | 125,539 | $ | 79,326 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation of property, plant and equipment | 8,217 | 7,879 | 8,483 | |||||||||
Amortization of prepaid land leases | 270 | 264 | 384 | |||||||||
Amortization of intangible assets | 801 | 311 | 300 | |||||||||
Allowance for doubtful accounts | 8,033 | 2,119 | 690 | |||||||||
(Gain) loss on disposal of long-lived assets | (2,053 | ) | 13 | (67 | ) | |||||||
Impairment loss on property, plant and equipment | — | — | 17 | |||||||||
Goodwill impairment charge | — | 11,623 | 35,767 | |||||||||
Share of net loss (income) of equity investees | 1,571 | (404 | ) | (3,131 | ) | |||||||
Dividends received from an equity investee | — | 3,865 | — | |||||||||
Gains on deconsolidation of subsidiaries where the Company retains an equity interest | — | (5,768 | ) | — | ||||||||
Gains on disposal of an investment of an equity investee | — | — | (5,763) | |||||||||
Share-based compensation expenses | 1,207 | 238 | 410 | |||||||||
Deferred income tax (benefit) expenses | (1,525 | ) | (6,197 | ) | 6,414 | |||||||
Accretion of convertible bond | 230 | 230 | 57 | |||||||||
Fair value adjustments of a bifurcated derivative | (75 | ) | 346 | — | ||||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivable and retention | (28,283 | ) | (33,782 | ) | 30,894 | |||||||
Costs and estimated earnings in excess of billings | 1,817 | (2,757 | ) | 3,186 | ||||||||
Inventories | (11,429 | ) | (3,773 | ) | (6,474 | ) | ||||||
Advances to suppliers | 232 | (5,357 | ) | (4,745 | ) | |||||||
Other receivables | (9,973 | ) | 2,647 | (1,897 | ) | |||||||
Prepaid expenses | (84 | ) | 62 | (19 | ) | |||||||
Due from related parties | 1,286 | 6,600 | 11,988 |
Year ended June 30, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 125,539 | $ | 79,326 | $ | 89,338 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation of property, plant and equipment | 7,879 | 8,483 | 9,959 | |||||||||
Amortization of prepaid land leases | 264 | 384 | 454 | |||||||||
Amortization of intangible assets | 311 | 300 | 316 | |||||||||
Allowance for credit losses | 2,119 | 690 | 8,656 | |||||||||
Loss | 13 | (67 | ) | (7 | ) | |||||||
Impairment loss on property, plant and equipment | 0 | 17 | 0 | |||||||||
Goodwill impairment charge | 11,623 | 35,767 | 0 | |||||||||
Share of net income of equity investees | (404 | ) | (3,131 | ) | (604 | ) | ||||||
Dividends received from an equity investee | 3,865 | 0 | 91 | |||||||||
Gains on deconsolidation of subsidiaries where the Company retains an equity interest | (5,768 | ) | 0 | 0 | ||||||||
Gains on disposal of an investment of an equity investee | 0 | (5,763 | ) | 0 | ||||||||
Gains on disposal of an investment in securities | 0 | 0 | (3,323 | ) | ||||||||
Share-based compensation expenses | 238 | 410 | 9,724 | |||||||||
Deferred income tax (benefit) expenses | (6,197 | ) | 6,414 | (5,838 | ) | |||||||
Accretion of convertible bond | 230 | 57 | 0 | |||||||||
Fair value adjustments of a bifurcated derivative | 346 | 0 | 0 | |||||||||
Other income (expense), net | 0 | 0 | (6,724 | ) | ||||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivable and retention | (33,782 | ) | 30,894 | (88,854 | ) | |||||||
Costs and estimated earnings in excess of billings | (2,757 | ) | 3,186 | 3,049 | ||||||||
Inventories | (3,773 | ) | (6,474 | ) | 4,657 | |||||||
Advances to suppliers | (5,357 | ) | (4,745 | ) | (1,253 | ) | ||||||
Other receivables | 2,647 | (1,897 | ) | 11,183 | ||||||||
Prepaid expenses | 62 | (19 | ) | (268 | ) | |||||||
Due from related parties | 6,600 | 11,988 | 6,784 | |||||||||
Accounts payable | (14,027 | ) | 15,010 | 10,178 | ||||||||
Deferred revenue | 10,836 | 1,825 | 31,432 | |||||||||
Accruals and other payable | 11,488 | (1,663 | ) | (966 | ) | |||||||
Due to related parties | (1,494 | ) | (1,819 | ) | (1,915 | ) | ||||||
Income tax payable | 1,740 | 3,335 | 514 | |||||||||
Other tax payables | (11,720 | ) | 2,616 | 2,700 | ||||||||
Net cash provided by operating activities | $ | 100,521 | $ | 175,124 | $ | 79,283 |
Year ended June 30, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Cash flows from investing activities: | ||||||||||||
Purchases of short-term investments | $ | (256,328 | ) | $ | (426,846 | ) | $ | (147,237 | ) | |||
Maturity of short-term investments | 245,880 | 242,174 | 443,095 | |||||||||
Purchases of property, plant and equipment | (3,488 | ) | (8,098 | ) | (18,131 | ) | ||||||
Prepayments for land lease | (7,099 | ) | 0 | 0 | ||||||||
Proceeds from disposal of property, plant and equipment | 301 | 983 | 314 | |||||||||
Investments made in equity investees | 0 | 0 | (9,459 | ) | ||||||||
Dividends received in excess of cumulative equity in earnings from an equity investee | 8,920 | 0 | 0 | |||||||||
Deconsolidation of subsidiary, net of cash disposed | (1,878 | ) | 0 | 0 | ||||||||
Acquisition of a subsidiary, net of cash acquired | 0 | (251 | ) | 0 | ||||||||
Purchase of equity investments | (740 | ) | 0 | 0 | ||||||||
Proceeds received from disposal of equity investments | 4,544 | 4,458 | 5,187 | |||||||||
Cash prepaid for acquisition of a subsidiary | 0 | 0 | (9,406 | ) | ||||||||
Proceeds received from investment in equity securities without readily determinable fair value | 0 | 0 | 5,895 | |||||||||
Net cash (used in) provided by investing activities | (9,888 | ) | (187,580 | ) | 270,258 | |||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from short-term bank loans | $ | 5,908 | $ | 2,371 | $ | 0 | ||||||
Repayments of short-term bank loans | (6,875 | ) | (4,243 | ) | 0 | |||||||
Proceeds from long-term bank loans | 730 | 15,423 | 520 | |||||||||
Repayments of long-term bank loans | (512 | ) | (437 | ) | (633 | ) | ||||||
Capital contributions from subsidiaries’ non-controlling interest shareholders | 1,456 | 2,139 | 0 | |||||||||
Payment of dividends | (10,862 | ) | (12,713 | ) | (12,107 | ) | ||||||
Principal repayment of convertible bond | 0 | (20,753 | ) | 0 | ||||||||
Proceeds from issuance of shares of a subsidiary | 0 | 0 | 2 | |||||||||
Net cash used in financing activities | (10,155 | ) | (18,213 | ) | (12,218 | ) | ||||||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (9,400 | ) | (8,621 | ) | 39,127 | |||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | $ | 71,078 | $ | (39,290 | ) | $ | 376,450 | |||||
Cash, cash equivalents and restricted cash, beginning of year | 287,309 | 358,387 | 319,097 | |||||||||
Cash, cash equivalents and restricted cash, end of year | $ | 358,387 | $ | 319,097 | $ | 695,547 | ||||||
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets: | ||||||||||||
Cash and cash equivalents | 332,509 | 288,782 | 664,321 | |||||||||
Current portion of restricted cash | 22,260 | 8,663 | 25,294 | |||||||||
Non-current portion of restricted cash | 3,618 | 21,652 | 5,932 | |||||||||
Total cash, cash equivalents and restricted cash | 358,387 | 319,097 | 695,547 | |||||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Interest expense paid | $ | 575 | $ | 306 | $ | 553 | ||||||
Income tax paid | $ | 24,855 | $ | 8,772 | $ | 16,804 | ||||||
Supplemental disclosures of non-cash information: | ||||||||||||
Acquisition of property, plant and equipment included in construction costs payable and accrued liabilities | $ | 3,205 | $ | 6,759 | $ | 477 | ||||||
Acquisition of equity interest with non-cash consideration | $ | 0 | $ | 0 | $ | 0 | ||||||
Disposal of shares of a subsidiary | $ | 4,110 | $ | 0 | $ | 0 |
Year ended June 30, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Accounts payable | 4,113 | (14,027 | ) | 15,010 | ||||||||
Deferred revenue | 28,150 | 10,836 | 1,825 | |||||||||
Accruals and other payable | (3,163 | ) | 11,488 | (1,663 | ) | |||||||
Due to related parties | 3,023 | (1,494 | ) | (1,819 | ) | |||||||
Income tax payable | (1,124 | ) | 1,740 | 3,335 | ||||||||
Other tax payables | (2,959 | ) | (11,720 | ) | 2,616 | |||||||
Net cash provided by operating activities | $ | 105,719 | $ | 100,521 | $ | 175,124 | ||||||
Cash flows from investing activities: | ||||||||||||
Time deposits placed with banks | (179,194 | ) | (256,328 | ) | (426,846 | ) | ||||||
Maturity of time deposits | 137,839 | 245,880 | 242,174 | |||||||||
Purchases of property, plant and equipment | (2,304 | ) | (3,488 | ) | (8,098 | ) | ||||||
Prepayments for land lease | — | (7,099 | ) | — | ||||||||
Proceeds from disposal of property, plant and equipment | 376 | 301 | 983 | |||||||||
Investments made in equity investees | (5,882 | ) | — | — | ||||||||
Dividends received in excess of cumulative equity in earnings from an equity investee | — | 8,920 | — | |||||||||
Deconsolidation of subsidiary, disposed | — | (1,878 | ) | — | ||||||||
Acquisition of a subsidiary, acquir ed | (583 | ) | — | (251 | ) | |||||||
Purchase of equity investments | — | (740 | ) | — | ||||||||
Proceeds received from disposal of equity investments | — | 4,544 | 4,458 | |||||||||
Net cash used in investing activities | (49,748 | ) | (9,888 | ) | (187,580 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from short-term bank loans | $ | 5,942 | $ | 5,908 | $ | 2,371 | ||||||
Repayments of short-term bank loans | (11,334 | ) | (6,875 | ) | (4,243 | ) | ||||||
Proceeds from long-term bank loans | 984 | 730 | 15,423 | |||||||||
Repayments of long-term bank loans | (548 | ) | (512 | ) | (437 | ) | ||||||
Capital contributions from a subsidiaries’ non-controlling interest shareholders | — | 1,456 | 2,139 | |||||||||
Payment of dividends | (7,241 | ) | (10,862 | ) | (12,713 | ) | ||||||
Principal repayment of convertible bond | — | — | (20,753 | ) | ||||||||
Year ended June 30, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Net cash used in financing activities | (12,197 | ) | (10,155 | ) | (18,213 | ) | ||||||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 5,839 | (9,400 | ) | (8,621 | ) | |||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | $ | 49,613 | $ | 71,078 | $ | (39,290 | ) | |||||
Cash, cash equivalents and restricted cash, beginning of year | 237,696 | 287,309 | 358,387 | |||||||||
Cash, cash equivalents and restricted cash, end of year | $ | 287,309 | $ | 358,387 | $ | 319,097 | ||||||
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets: | ||||||||||||
Cash and cash equivalents | 265,675 | 332,509 | 288,782 | |||||||||
Current portion of restricted cash | 20,233 | 22,260 | 8,663 | |||||||||
Non-current portion of restricted cash | 1,401 | 3,618 | 21,652 | |||||||||
Total cash, cash equivalents and restricted cash | 287,309 | 358,387 | 319,097 | |||||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Interest expense paid | $ | 462 | $ | 575 | $ | 306 | ||||||
Income tax paid | $ | 24,896 | $ | 24,855 | $ | 8,772 | ||||||
Supplemental disclosures of non-cash information: | ||||||||||||
Acquisition of property, plant and equipment included in construction costs payable and accrued liabilities | $ | 4,374 | $ | 3,205 | $ | 6,759 | ||||||
Acquisition of equity interest with non-cash consideration | $ | 2,345 | $ | — | $ | — | ||||||
Disposal of shares of a subsidiary | $ | — | $ | 4,110 | $ | — |
Ordinary shares | Additional paid-in capital | Statutory reserves | Retained earnings | Accumulated other comprehensive income | Total Hollysys Automation Technologies Ltd. stockholders’ equity | Non- controlling interest | Total equity | |||||||||||||||||||||||||||||
Balance at June 30, 2017 | 60,342,099 | $ | 60 | $ | 222,189 | $ | 41,130 | $ | 482,999 | $ | (22,859 | ) | $ | 723,519 | $ | 21 | $ | 723,540 | ||||||||||||||||||
Share-based compensation | — | — | 1,207 | — | — | — | 1,207 | — | 1,207 | |||||||||||||||||||||||||||
Net income for the year | — | — | — | — | 107,161 | — | 107,161 | 276 | 107,437 | |||||||||||||||||||||||||||
Appropriations to statutory reserves | — | — | — | 4,840 | (4,840 | ) | — | — | — | — | ||||||||||||||||||||||||||
Dividend paid | — | — | — | — | (7,241 | ) | — | (7,241 | ) | — | (7,241 | ) | ||||||||||||||||||||||||
Translation adjustments | — | — | — | — | — | 17,406 | 17,406 | 4 | 17,410 | |||||||||||||||||||||||||||
Balance at June 30, 2018 | 60,342,099 | $ | 60 | $ | 223,396 | $ | 45,970 | $ | 578,079 | $ | (5,453 | ) | $ | 842,052 | $ | 301 | $ | 842,353 | ||||||||||||||||||
Cumulative effect of change in accounting principle (Note 2) | — | — | — | — | 18,765 | — | 18,765 | — | 18,765 | |||||||||||||||||||||||||||
Share-based compensation | — | — | 238 | — | — | — | 238 | — | 238 | |||||||||||||||||||||||||||
Net income for the year | — | — | — | — | 125,261 | — | 125,261 | 278 | 125,539 | |||||||||||||||||||||||||||
Appropriations to statutory reserves | — | — | — | 2,728 | (2,728 | ) | — | — | — | — | ||||||||||||||||||||||||||
Dividend paid | — | — | — | — | (10,862 | ) | — | (10,862 | ) | — | (10,862 | ) | ||||||||||||||||||||||||
Deconsolidation of a subsidiary | — | — | — | — | — | 1,273 | 1,273 | — | 1,273 | |||||||||||||||||||||||||||
Capital contribution from a subsidiary’s non-controlling interest shareholder | — | — | — | — | — | — | — | 1,456 | 1,456 | |||||||||||||||||||||||||||
Translation adjustments | — | — | — | — | — | (31,341 | ) | (31,341 | ) | (261 | ) | (31,602 | ) | |||||||||||||||||||||||
Balance at June 30, 2019 | 60,342,099 | $ | 60 | $ | 223,634 | $ | 48,698 | $ | 708,515 | $ | (35,521 | ) | $ | 945,386 | $ | 1,774 | $ | 947,160 | ||||||||||||||||||
Issuance of ordinary shares | 195,000 | 1 | (1 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||
Share-based compensation | — | — | 410 | — | — | — | 410 | — | 410 | |||||||||||||||||||||||||||
Net income for the year | — | — | — | — | 79,396 | — | 79,396 | (70 | ) | 79,326 | ||||||||||||||||||||||||||
Appropriations to statutory reserves | — | — | — | 725 | (725 | ) | — | — | — | — | ||||||||||||||||||||||||||
Dividend paid | — | — | — | — | (12,713 | ) | — | (12,713 | ) | — | (12,713 | ) | ||||||||||||||||||||||||
Capital contribution from subsidiaries’ non-controlling interest shareholders | — | — | — | — | — | — | — | 3,016 | 3,016 | |||||||||||||||||||||||||||
Translation adjustments | — | — | — | — | — | (27,996 | ) | (27,996 | ) | (317 | ) | (28,313 | ) | |||||||||||||||||||||||
Balance at June 30, 2020 | 60,537,099 | $ | 61 | $ | 224,043 | $ | 49,423 | $ | 774,473 | $ | (63,517 | ) | $ | 984,483 | $ | 4,403 | $ | 988,886 | ||||||||||||||||||
Ordinary shares | Additional paid-in capital | Statutory reserves | Retained earnings | Accumulated other comprehensive income | Total Hollysys Automation Technologies Ltd. stockholders’ equity | Non-controlling interest | Total equity | |||||||||||||||||||||||||||||
Balance at June 30, 2018 | 60,342,099 | $ | 60 | $ | 223,396 | $ | 45,970 | $ | 578,079 | $ | (5,453 | ) | $ | 842,052 | $ | 301 | $ | 842,353 | ||||||||||||||||||
Cumulative effect of change in accounting principle (Note 2) | — | — | — | — | 18,765 | — | 18,765 | — | 18,765 | |||||||||||||||||||||||||||
Share-based compensation | — | — | 238 | — | — | — | 238 | — | 238 | |||||||||||||||||||||||||||
Net income for the year | — | — | — | — | 125,261 | — | 125,261 | 278 | 125,539 | |||||||||||||||||||||||||||
Appropriations to statutory reserves | — | — | — | 2,728 | (2,728 | ) | — | — | — | — | ||||||||||||||||||||||||||
Dividend paid | — | — | — | — | (10,862 | ) | — | (10,862 | ) | — | (10,862 | ) | ||||||||||||||||||||||||
Deconsolidation of a subsidiary | — | — | — | — | — | 1,273 | 1,273 | — | 1,273 | |||||||||||||||||||||||||||
Capital contribution from a subsidiary’s non-controlling interest shareholder | — | — | — | — | — | — | — | 1,456 | 1,456 | |||||||||||||||||||||||||||
Translation adjustments | — | — | — | — | — | (31,341 | ) | (31,341 | ) | (261 | ) | (31,602 | ) | |||||||||||||||||||||||
Balance at June 30, 2019 | 60,342,099 | $ | 60 | $ | 223,634 | $ | 48,698 | $ | 708,515 | $ | (35,521 | ) | $ | 945,386 | $ | 1,774 | $ | 947,160 | ||||||||||||||||||
Issuance of ordinary shares | 195,000 | 1 | (1 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||
Share-based compensation | — | — | 410 | — | — | — | 410 | — | 410 | |||||||||||||||||||||||||||
Net income for the year | — | — | — | — | 79,396 | — | 79,396 | (70 | ) | 79,326 | ||||||||||||||||||||||||||
Appropriations to statutory reserves | — | — | — | 725 | (725 | ) | — | — | — | — | ||||||||||||||||||||||||||
Dividend paid | — | — | — | — | (12,713 | ) | — | (12,713 | ) | — | (12,713 | ) | ||||||||||||||||||||||||
Capital contribution from subsidiaries’ non-controlling interest shareholders | — | — | — | — | — | — | — | 3,016 | 3,016 | |||||||||||||||||||||||||||
Translation adjustments | — | — | — | — | — | (27,996 | ) | (27,996 | ) | (317 | ) | (28,313 | ) | |||||||||||||||||||||||
Balance at June 30, 2020 | 60,537,099 | $ | 61 | $ | 224,043 | $ | 49,423 | $ | 774,473 | $ | (63,517 | ) | $ | 984,483 | $ | 4,403 | $ | 988,886 | ||||||||||||||||||
Issuance of ordinary shares | 830,238 | — | 1 | 1 | 1 | |||||||||||||||||||||||||||||||
Share-based compensation | — | — | 9,724 | — | — | — | 9,724 | — | 9,724 | |||||||||||||||||||||||||||
Net income for the year | — | — | — | — | 89,709 | — | 89,709 | (371 | ) | 89,338 | ||||||||||||||||||||||||||
Appropriations to statutory reserves | — | — | — | 15,026 | (15,026 | ) | — | — | — | — | ||||||||||||||||||||||||||
Dividend paid | — | — | — | — | (12,107 | ) | — | (12,107 | ) | — | (12,107 | ) | ||||||||||||||||||||||||
Capital contribution from subsidiaries’ non-controlling interest shareholders | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Translation adjustments | — | — | — | — | — | 96,331 | 96,331 | 246 | 96,577 | |||||||||||||||||||||||||||
Effect of change in accounting principle - ASC 326 | — | — | — | — | (30,451 | ) | — | (30,451 | ) | — | (30,451 | ) | ||||||||||||||||||||||||
Balance at June 30, 2021 | 61,367,337 | $ | 61 | $ | 233,768 | $ | 64,449 | $ | 806,598 | $ | 32,814 | $ | 1,137,690 | $ | 4,278 | $ | 1,141,968 | |||||||||||||||||||
June 30, | ||||||||
2019 | 2020 | |||||||
Current assets | $ | 23,946 | $ | 9,708 | ||||
Non-current assets | 167 | 183 | ||||||
Total assets | 24,113 | 9,891 | ||||||
Current liabilities | $ | 17,776 | $ | 6,919 | ||||
Total liabilities | 17,776 | 6,919 | ||||||
June 30, | ||||||||
2020 | 2021 | |||||||
Current assets | $ | 9,708 | $ | 5,588 | ||||
Non-current assets | 183 | 37 | ||||||
Total assets | 9,891 | 5,625 | ||||||
Current liabilities | $ | 6,919 | $ | 3,230 | ||||
Total liabilities | 6,919 | 3,230 | ||||||
Year ended June 30, | ||||||||
2020 | 2021 | |||||||
Net revenue | $ | 981 | $ | 46 | ||||
Cost of revenue (1) | (2,147 | ) | (2,177 | ) | ||||
Net profit | 3,128 | 2,223 | ||||||
Net cash provided by (used in) operating activities | 1,120 | (451 | ) |
(1) | Cost of revenue is in credit side because of the reversal of warranties provision which was overprovided in previous years. |
Year ended June 30, | ||||||||
2019 | 2020 | |||||||
Net revenue | $ | 32,751 | $ | 981 | ||||
Cost of revenue | 25,527 | (2,147 | ) | |||||
Net profit | 5,521 | 3,128 | ||||||
Net cash (used in) provided by operating activities | (4,829 | ) | 1,120 | |||||
Net cash used in investing activities | 0 | 0 | ||||||
Net cash provided by financing activities | $ | 0 | $ | 0 |
Buildings | 30 - 50 years | |||
Machinery | 5 - 10 years | |||
Software | 3 - 10 | |||
Vehicles | 5 - 10 | |||
Electronic and other equipment | 3- 10 years |
Category | Estimated useful life | |||
Patents and copyrights | 5 - 10 years |
Level 1 | - | Quoted prices in active markets for identical assets or liabilities. | ||
Level 2 | ||||
Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
Level 3 | - | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Balance at June 30, 2020 | Adjustment due to ASU 2016-13 | Balance at July 1, 2020 | ||||||||||
Assets | ||||||||||||
Accounts receivable | 242,449 | (16,284 | ) | 226,165 | ||||||||
Accounts receivable retention | 10,805 | (145 | ) | 10,660 | ||||||||
Costs and estimated earnings in excess of billings | 189,188 | (3,111 | ) | 186,077 | ||||||||
Other receivables | 28,257 | (10,799 | ) | 17,458 | ||||||||
Due from related parties | 21,444 | (1,880 | ) | 19,564 | ||||||||
Deferred tax assets | 8,909 | 1,768 | 10,677 | |||||||||
Equity | ||||||||||||
Retained earnings | 774,473 | (30,451 | ) | 744,022 |
June 30, 2021 | ||||
Beginning balance, July 1, 2020 | 41,618 | |||
Adoption of ASU 2016-13 | 16,429 | |||
Provision for expected credit losses, net of recoveries | 7,761 | |||
Amounts written off charged against the allowance | (3,965 | ) | ||
Translation adjustments | 5,159 | |||
Ending balance, June 30, 2021 | 67,002 | |||
Balance as of June 30, 2019 | Adjustments due to the adoption of ASU 2016-02 | Balance as of July 1, 2019 | ||||||||||
Assets: | ||||||||||||
Prepaid expenses | 644 | (347 | ) | 297 | ||||||||
Operating lease ROU assets | 0 | 6,924 | 6,924 | |||||||||
Prepaid land leases | 16,599 | 0 | 16,599 | |||||||||
Liabilities: | ||||||||||||
Operating lease liabilities (current) | 0 | (2,402 | ) | (2,402 | ) | |||||||
Operating lease liabilities (non-current) | 0 | (4,175 | ) | (4,175 | ) |
As reported | Legacy GAAP | Effect of the adoption of ASU 2016-02 Higher/(lower) | ||||||||||
Assets: | ||||||||||||
Prepaid expenses | 654 | 873 | (219 | ) | ||||||||
Operating lease ROU assets | 6,010 | 0 | 6,010 | |||||||||
Prepaid land leases | 15,742 | 15,742 | 0 | |||||||||
Liabilities: | ||||||||||||
Operating lease liabilities (current) | (2,489 | ) | 0 | (2,489 | ) | |||||||
Operating lease liabilities (non-current) | (3,302 | ) | 0 | (3,302 | ) |
June 30, 2021 | ||||
Beginning balance, July 1, 2020 | 6,150 | |||
Adoption of ASU 2016-13 | 3,111 | |||
Provision for expected credit losses, net of recoveries | 1,758 | |||
Translation adjustments | 816 | |||
Ending balance, June 30, 2021 | 11,835 | |||
June 30, | ||||||||
2019 | 2020 | |||||||
Raw materials | $ | 17,150 | $ | 18,307 | ||||
Work in progress | 15,097 | 17,561 | ||||||
Finished goods | 10,736 | 12,342 | ||||||
$ | 42,983 | $ | 48,210 | |||||
June 30, | ||||||||
2020 | 2021 | |||||||
Raw materials | $ | 18,307 | $ | 23,469 | ||||
Work in progress | 17,561 | 12,165 | ||||||
Finished goods | 12,342 | 12,278 | ||||||
$ | 48,210 | $ | 47,912 | |||||
June 30, | June 30, | |||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||
Notes receivable | $ | 36,095 | $ | 27,059 | $ | 27,059 | $ | 54,830 | ||||||||
Accounts receivable | 293,661 | 257,008 | 257,008 | 342,862 | ||||||||||||
Allowance for doubtful accounts | (47,162 | ) | (41,618 | ) | ||||||||||||
Allowance for credit losses | (41,618 | ) | (66,839 | ) | ||||||||||||
$ | 282,594 | $ | 242,449 | $ | 242,449 | $ | 330,853 | |||||||||
June 30, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Balance at the beginning of year | $ | 49,094 | $ | 47,162 | $ | 41,618 | ||||||
Adoption of ASU 2016-13 | — | — | 16,284 | |||||||||
Additions | 4,318 | 178 | 7,749 | |||||||||
Deconsolidation of a subsidiary | (2,733 | ) | — | — | ||||||||
Written off | (1,959 | ) | (4,399 | ) | (3,965 | ) | ||||||
Translation adjustment | (1,558 | ) | (1,323 | ) | 5,153 | |||||||
Balance at the end of year | $ | 47,162 | $ | 41,618 | $ | 66,839 | ||||||
June 30, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Balance at the beginning of year | $ | 48,089 | $ | 49,094 | $ | 47,162 | ||||||
Additions | 3,407 | 4,318 | 178 | |||||||||
Deconsolidation of a subsidiary | — | (2,733 | ) | — | ||||||||
Written off | (3,527 | ) | (1,959 | ) | (4,399 | ) | ||||||
Translation adjustment | 1,125 | (1,558 | ) | (1,323 | ) | |||||||
Balance at the end of year | $ | 49,094 | $ | 47,162 | $ | 41,618 | ||||||
June 30, | June 30, | |||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||
Contract costs incurred plus estimated earnings | $ | 1,120,282 | $ | 1,046,803 | $ | 1,046,803 | $ | 988,496 | ||||||||
Less: Progress billings | (915,346 | ) | (853,774 | ) | (853,774 | ) | (779,955 | ) | ||||||||
Cost and estimated earnings in excess of billings | 204,936 | 193,029 | 193,029 | 208,541 | ||||||||||||
Less: Allowance for doubtful accounts | (6,981 | ) | (6,150 | ) | ||||||||||||
Less: Allowance for credit losses | (6,150 | ) | (11,835 | ) | ||||||||||||
$ | 197,955 | $ | 186,879 | $ | 186,879 | $ | 196,706 | |||||||||
June 30, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Balance at the beginning of year | $ | 8,660 | $ | 9,929 | $ | 6,981 | ||||||
Additions (reversals) | 1,038 | (2,149 | ) | (651 | ) | |||||||
Deconsolidation of a subsidiary | — | (465 | ) | — | ||||||||
Translation adjustments | 231 | (334 | ) | (180 | ) | |||||||
Balance at the end of the year | $ | 9,929 | $ | 6,981 | $ | 6,150 | ||||||
June 30, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Balance at the beginning of year | $ | 9,929 | $ | 6,981 | $ | 6,150 | ||||||
Adoption of ASU 2016-1 3 | — | — | 3,111 | |||||||||
Additions (reversals) | (2,149 | ) | (651 | ) | 1,758 | |||||||
Deconsolidation of a subsidiary | (465 | ) | — | — | ||||||||
Translation adjustments | (334 | ) | (180 | ) | 816 | |||||||
Balance at the end of year | $ | 6,981 | $ | 6,150 | $ | 11,835 | ||||||
Year ended June 30, 2020 | Year ended June 30, 2021 | |||||||||||||||||||||||
PRC | Non-PRC | Total | PRC | Non-PRC | Total | |||||||||||||||||||
Integrated solutions contracts revenue | $ | 369,162 | 45,110 | 414,272 | $ | 385,592 | 74,588 | 460,180 | ||||||||||||||||
Product sales | 18,956 | 1,188 | 20,144 | 28,200 | 467 | 28,667 | ||||||||||||||||||
Maintenance service revenue | 50,317 | 15,724 | 66,041 | 101,081 | 241 | 101,322 | ||||||||||||||||||
Extended warranty service revenue | 2,870 | — | 2,870 | 3,297 | — | 3,297 | ||||||||||||||||||
Total | $ | 441,305 | 62,022 | 503,327 | $ | 518,170 | 75,296 | 593,466 | ||||||||||||||||
June 30, 20 19 | June 30, 20 20 | |||||||
Contract assets, current | $ | 214,289 | 194,511 | |||||
Contract assets, non-current | 6,390 | 7,026 | ||||||
Contract liabilities | 141,385 | 139,242 |
June 30, 2020 | June 30, 2021 | |||||||
Contract assets, current | $ | 194,511 | 202,462 | |||||
Contract assets, non-current | 7,026 | 5,627 | ||||||
Contract liabilities | 139,242 | 185,596 |
June 30, | ||||||||
2019 | 2020 | |||||||
Buildings | $ | 71,091 | $ | 67,520 | ||||
Machinery | 12,787 | 12,941 | ||||||
Software | 13,683 | 14,222 | ||||||
Vehicles | 4,912 | 4,675 | ||||||
Electronic and other equipment | 33,913 | 36,647 | ||||||
Construction in progress | 504 | 8,553 | ||||||
$ | 136,890 | $ | 144,558 | |||||
Less: Accumulated depreciation and impairment | (60,884 | ) | (66,508 | ) | ||||
$ | 76,006 | $ | 78,050 | |||||
June 30, | ||||||||
2020 | 2021 | |||||||
Buildings | $ | 67,520 | $ | 73,617 | ||||
Machinery | 12,941 | 15,110 | ||||||
Software | 14,222 | 16,294 | ||||||
Vehicles | 4,675 | 4,860 | ||||||
Electronic and other equipment | 36,647 | 41,154 | ||||||
Construction in progress | 8,553 | 22,434 | ||||||
$ | 144,558 | $ | 173,469 | |||||
Less: Accumulated depreciation and impairment | (66,508 | ) | (79,423 | ) | ||||
$ | 78,050 | $ | 94,046 | |||||
June 30, | ||||||||
2019 | 2020 | |||||||
Buildings leased to others - at original cost | $ | 22,096 | $ | 21,467 | ||||
Less: Accumulated depreciation | (6,249 | ) | (6,605 | ) | ||||
Buildings leased to others - net | $ | 15,847 | $ | 14,862 | ||||
June 30, | ||||||||
2020 | 2021 | |||||||
Buildings leased to others - at original cost | $ | 21,467 | $ | 23,491 | ||||
Less: Accumulated depreciation | (6,605 | ) | (7,950 | ) | ||||
Buildings leased to others - net | $ | 14,862 | $ | 15,541 | ||||
June 30, | ||||||||
2019 | 2020 | |||||||
Prepaid land leases | $ | 19,232 | $ | 18,681 | ||||
Less: Accumulated amortization | (2,633 | ) | (2,939 | ) | ||||
$ | 16,599 | $ | 15,742 | |||||
June 30, | ||||||||
2020 | 2021 | |||||||
Prepaid land leases | $ | 18,681 | $ | 20,200 | ||||
Less: Accumulated amortization | (2,939 | ) | (3,632 | ) | ||||
$ | 15,742 | $ | 16,568 | |||||
Year ending June 30, | ||||
2021 | $ | 389 | ||
2022 | 389 | |||
2023 | 389 | |||
2024 | 389 | |||
2025 | 389 |
Year ending June 30, | ||||
2022 | $ | 419 | ||
2023 | 419 | |||
2024 | 419 | |||
2025 | 419 | |||
2026 | 419 |
June 30, | ||||||||||||||||||||||||
2019 | 2020 | |||||||||||||||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | Gross carrying value | Accumulated amortization | Net carrying value | |||||||||||||||||||
Patents and copyrights | $ | 1,998 | (615 | ) | 1,383 | $ | 2,620 | (907 | ) | 1,713 | ||||||||||||||
June 30, | ||||||||||||||||||||||||
2020 | 2021 | |||||||||||||||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | Gross carrying value | Accumulated amortization | Net carrying value | |||||||||||||||||||
Patents and copyrights | $ | 2,620 | (907 | ) | 1,713 | $ | 2,867 | (1,468 | ) | 1,399 | ||||||||||||||
Year ending June 30, | ||||
2021 | $ | 437 | ||
2022 | 437 | |||
2023 | 437 | |||
2024 | 287 | |||
2025 | 125 | |||
Year ending June 30, | ||||
2022 | $ | 459 | ||
2023 | 459 | |||
2024 | 301 | |||
2025 | 132 | |||
2026 | 0 |
Operating segment | ||||||||||||
Mechanical and electrical solutions | Industrial automation | Total | ||||||||||
Balance as of July 1, 2019 | $ | 36,468 | 586 | $ | 37,054 | |||||||
Goodwill upon acquisition | 0 | 958 | 958 | |||||||||
Goodwill impairment charge | (35,767 | ) | 0 | (35,767 | ) | |||||||
Translation adjustment | (701 | ) | (84 | ) | (785 | ) | ||||||
Balance as of June 30, 2020 | $ | 0 | 1,460 | $ | 1,460 | |||||||
Operating segment | ||||||||||||
Mechanical and electrical solutions | Industrial automation | Total | ||||||||||
Balance as of July 1, 2019 | $ | 36,468 | 586 | $ | 37,054 | |||||||
Goodwill upon acquisition | 0 | 958 | 958 | |||||||||
Goodwill impairment charge | (35,767 | ) | 0 | (35,767 | ) | |||||||
Translation adjustment | (701 | ) | (84 | ) | (785 | ) | ||||||
Balance as of June 30 , 2020 | $ | 0 | 1,460 | $ | 1,460 | |||||||
Translation adjustment | 0 | 138 | 138 | |||||||||
Balance as of June 30, 2021 | $ | 0 | 1,598 | $ | 1,598 | |||||||
June 30, 2019 | Interest held | Long-term investment, at cost, less impairment | Share of undistributed profits | Advance to investee company | Total | |||||||||||||||
Equity method | ||||||||||||||||||||
Beijing Hollycon Medicine & Technology Co., Ltd. | 30.00 | % | $ | 22,456 | 2,491 | 0 | 24,947 | |||||||||||||
Beijing Hollysys Electric Motor Co., Ltd. | 40.00 | % | 771 | 5,054 | 0 | 5,825 | ||||||||||||||
Beijing IPE Biotechnology Co., Ltd. | 22.02 | % | 1,436 | 1,778 | 0 | 3,214 | ||||||||||||||
China Techenergy Co., Ltd. | 40.00 | % | 0 | 2,989 | 0 | 2,989 | ||||||||||||||
Ningbo Hollysys Intelligent Technologies Co., Ltd. | 40.00 | % | 4,110 | (2,118 | ) | 0 | 1,992 | |||||||||||||
Hunan LingXiang Maglev Technology Co., Ltd. | 20.00 | % | 1,456 | (268 | ) | 0 | 1,188 | |||||||||||||
Beijing AIRmaker Technology Co., Ltd. | 20.00 | % | 146 | (23 | ) | 0 | 123 | |||||||||||||
Southcon Development Sdn Bhd. | 30.00 | % | 217 | (109 | ) | 0 | 108 | |||||||||||||
Beijing Hollysys Machine Automation Co., Ltd. | 30.00 | % | 437 | (437 | ) | 0 | 0 | |||||||||||||
Beijing Jing Yi Intelligent Technologies Innovation Center Co., Ltd. | 46.00 | % | 0 | 0 | 0 | 0 | ||||||||||||||
$ | 31,029 | 9,357 | 0 | 40,386 | ||||||||||||||||
June 30, 2020 | Interest held | Long-term investment, at cost, less impairment | Share of undistributed profits | Disposal | Advance to investee company | Total | ||||||||||||||||||
Equity method | ||||||||||||||||||||||||
Beijing Hollycon Medicine & Technology Co., Ltd. | 30.00 | % | $ | 21,816 | 4,069 | 0 | 0 | 25,885 | ||||||||||||||||
Beijing Hollysys Electric Motor Co., Ltd. | 40.00 | % | 749 | 5,263 | 0 | 0 | 6,012 | |||||||||||||||||
Beijing IPE Biotechnology Co., Ltd. | 22.02 | % | 1,395 | 0 | (1,395 | ) | 0 | 0 | ||||||||||||||||
China Techenergy Co., Ltd. | 40.00 | % | 0 | 7,919 | 0 | 0 | 7,919 | |||||||||||||||||
Ningbo Hollysys Intelligent Technologies Co., Ltd. | 40.00 | % | 3,993 | (3,993 | ) | 0 | 0 | 0 | ||||||||||||||||
Hunan LingXiang Maglev Technology Co., Ltd. | 19.00 | % | 1,415 | (330 | ) | 0 | 0 | 1,085 | ||||||||||||||||
Beijing AIRmaker Technology Co., Ltd. | 20.00 | % | 141 | (15 | ) | 0 | 0 | 126 | ||||||||||||||||
Southcon Development Sdn Bhd. | 30.00 | % | 211 | (105 | ) | 0 | 0 | 106 | ||||||||||||||||
Beijing Hollysys Machine Automation Co., Ltd. | 30.00 | % | 424 | (424 | ) | 0 | 0 | 0 | ||||||||||||||||
Beijing Jing Yi Intelligent Technologies Innovation Center Co., Ltd. | 46.00 | % | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
$ | 30,144 | 12,384 | (1,395 | ) | 0 | 41,133 | ||||||||||||||||||
June 30, 2020 | Interest held | Long-term investment, at cost, less impairment | Share of undistributed profits | Disposal | Advance to investee company | Total | ||||||||||||||||||
Equity method | ||||||||||||||||||||||||
Beijing Hollycon Medicine & Technology Co., Ltd. | 30.00 | % | $ | 21,816 | 4,069 | 0 | 0 | 25,885 | ||||||||||||||||
Beijing Hollysys Electric Motor Co., Ltd. | 40.00 | % | 749 | 5,263 | 0 | 0 | 6,012 | |||||||||||||||||
Beijing IPE Biotechnology Co., Ltd. | 22.02 | % | 1,395 | 0 | (1,395 | ) | 0 | 0 | ||||||||||||||||
China Techenergy Co., Ltd. | 40.00 | % | 0 | 7,919 | 0 | 0 | 7,919 | |||||||||||||||||
Ningbo Hollysys Intelligent Technologies Co., Ltd. | 40.00 | % | 3,993 | (3,993 | ) | 0 | 0 | |||||||||||||||||
Hunan LingXiang Maglev Technology Co., Ltd. | 19.00 | % | 1,415 | (330 | ) | 0 | 0 | 1,085 | ||||||||||||||||
Beijing AIRmaker Technology Co., Ltd. | 20.00 | % | 141 | (15 | ) | 0 | 0 | 126 | ||||||||||||||||
Southcon Development Sdn Bhd. | 30.00 | % | 211 | (105 | ) | 0 | 0 | 106 | ||||||||||||||||
Beijing Hollysys Machine Automation Co., Ltd. | 30.00 | % | 424 | (424 | ) | 0 | 0 | 0 | ||||||||||||||||
Beijing Jing Yi Intelligent Technologies Innovation Center Co., Ltd. | 46.00 | % | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
$ | 30,144 | 12,384 | (1,395 | ) | 0 | 41,133 |
June 30, 2021 | Interest held | Long-term investment, at cost, less impairment | Share of undistributed profits | Disposal | Advance to investee company | Total | ||||||||||||||||||
Equity method | ||||||||||||||||||||||||
Beijing Hollycon Medicine & Technology Co., Ltd. | 30.00 | % | $ | 23,874 | 5,741 | 0 | 0 | 29,615 | ||||||||||||||||
Beijing Hollysys Electric Motor Co., Ltd. | 40.00 | % | 820 | 6,677 | 0 | 0 | 7,497 | |||||||||||||||||
Suqian Runhe Emerging Industry Investment Center (limited partnership) | 29.97 | % | 9,754 | (163 | ) | 0 | 0 | 9,591 | ||||||||||||||||
China Techenergy Co., Ltd. | 40.00 | % | 0 | 11,811 | 0 | 0 | 11,811 | |||||||||||||||||
Ningbo Hollysys Intelligent Technologies Co., Ltd. | 40.00 | % | 4,369 | (4,369 | ) | 0 | 0 | 0 | ||||||||||||||||
Hunan LingXiang Maglev Technology Co., Ltd. | 17.67 | % | 1,548 | (141 | ) | 0 | 0 | 1,407 | ||||||||||||||||
Beijing AIRmaker Technology Co., Ltd. | 20.00 | % | 155 | (18 | ) | 0 | 0 | 137 | ||||||||||||||||
Southcon Development Sdn Bhd. | 30.00 | % | 219 | (111 | ) | 0 | 0 | 108 | ||||||||||||||||
Beijing Hollysys Machine Automation Co., Ltd. | 30.00 | % | 464 | (464 | ) | 0 | 0 | 0 | ||||||||||||||||
Beijing Jing Yi Intelligent Technologies Innovation Center Co., Ltd. | 46.00 | % | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
41,203 | 18,963 | 0 | 0 | 60,166 | ||||||||||||||||||||
June 30, | ||||||||
2019 | 2020 | |||||||
Beginning balance | $ | 7,858 | $ | 12,116 | ||||
Deconsolidation of a subsidiary | (130 | ) | — | |||||
Expense accrued | 7,538 | 2,309 | ||||||
Expense incurred | (2,899 | ) | (4,027 | ) | ||||
Translation adjustment | (251 | ) | (334 | ) | ||||
$ | 12,116 | $ | 10,064 | |||||
Less: Current portion of warranty liabilities | (8,039 | ) | (6,604 | ) | ||||
Long-term warranty liabilities | $ | 4,077 | $ | 3,460 | ||||
June 30, | ||||||||
2020 | 2021 | |||||||
Beginning balance | $ | 12,116 | $ | 10,064 | ||||
Expense accrued | 2,309 | 4,431 | ||||||
Expense incurred | (4,027 | ) | (5,639 | ) | ||||
Translation adjustment | (334 | ) | 695 | |||||
$ | 10,064 | $ | 9,551 | |||||
Less: Current portion of warranty liabilities | (6,604 | ) | (5,902 | ) | ||||
Long-term warranty liabilities | $ | 3,460 | $ | 3,649 | ||||
June 30, | ||||||||||
2019 | 2020 | |||||||||
MYR denominated loans | (i) | 947 | 842 | |||||||
SGD denominated loans | (ii) | 346 | 258 | |||||||
Convertible Bond | (iii) | 19,995 | 0 | |||||||
USD denominated loan | (iv) | 0 | 15,000 | |||||||
$ | 21,288 | $ | 16,100 | |||||||
Less: Current portion | (20,310 | ) | (320 | ) | ||||||
$ | 978 | $ | 15,780 | |||||||
June 30, | ||||||||||||
2020 | 2021 | |||||||||||
MYR denominated loans | (i) | 842 | 842 | |||||||||
SGD denominated loans | (ii) | 258 | 164 | |||||||||
USD denominated loan | (iii) | 15,000 | 15,000 | |||||||||
$ | 16,100 | $ | 16,006 | |||||||||
Less: Current portion | (320 | ) | (15,308 | ) | ||||||||
$ | 15,780 | $ | 698 | |||||||||
i. | The MYR denominated loans are repayable in 3 to 75 installments with the last installment due in ri l 2039. For the years ended June 30, from 2.19% to |
ii. | The SGD denominated loans are repayable in 10 to 31 installments with the last installment due on March 4, 2024. For the years ended June 30, |
iii. | is repayable on April 22, 2022. For the year ended June 30, 2021, the effective interest rate was 3.02% per annum. |
Year ending June 30, | ||||
2021 | $ | 812 | ||
2022 | 15,748 | |||
2023 | 290 | |||
2024 | 205 | |||
2025 and onwards | 259 | |||
$ | 17,314 | |||
Year ending June 30, | ||||
2022 | $ | 15,308 | ||
2023 | 308 | |||
2024 | 216 | |||
2025 | 34 | |||
2026 | 19 | |||
2026 onwards | 121 | |||
$ | 16,006 | |||
June 30, 2019 | ||||||||||||||||
Quoted prices in active markets for identical assets | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
Liabilities: | ||||||||||||||||
Derivative financial liability (i) | $ | 0 | $ | 0 | $ | 758 | $ | 758 | ||||||||
Total liabilities measured at fair value on a recurring basis | $ | 0 | $ | 0 | $ | 758 | $ | 758 | ||||||||
Fair value measurements as of June 30, 2020 using significant unobservable inputs | ||||
(Level 3) | ||||
Non-conversion compensation feature related to the Convertible Bond | ||||
Balance as at June 30, 2019 | $ | 758 | ||
Settlement | (758 | ) | ||
Balance as of June 30, 2020 | $ | 0 | ||
June 30, 2019 | ||||||||||||||||
Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |||||||||||||
Assets: | ||||||||||||||||
Retained equity interest in a former subsidiary (Hollysys Intelligent) (i) | 0 | 0 | 4,110 | 4,110 | ||||||||||||
Goodwill related to Concord reporting unit (ii) | 0 | 0 | 0 | 0 | ||||||||||||
Total assets measured at fair value on a non-recurring basis | $ | 0 | $ | 0 | $ | 4,110 | $ | 4,110 | ||||||||
June 30, 2020 | ||||||||||||||||
Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |||||||||||||
Assets: | ||||||||||||||||
Goodwill related to Bond reporting unit (i) | 0 | 0 | 0 | 0 | ||||||||||||
Total assets measured at fair value on a non-recurring basis | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
EPS Threshold | Number of vested options | Months after the grant date | ||||||||||||
24 months | 36 months | 48 months | ||||||||||||
Annual growth rate over 15% but below 20% | 1,160,000 | 348,000 | 348,000 | 464,000 | ||||||||||
CAGR equals or over 20% but below 25% | Additional 290,000 | 0 | 0 | 290,000 | ||||||||||
CAGR equals 25% or above | Additional 290,000 | 0 | 0 | 290,000 | ||||||||||
Total | 348,000 | 348,000 | 1,044,000 | |||||||||||
2015 Performance Options | Number of shares | Weighted average exercise price | Weighted average remaining contractual life (years) | Aggregate intrinsic value | ||||||||||||
Outstanding, vested and exercisable at June 30, 2019 | 306,000 | 21.75 | 0.87 | 0 | ||||||||||||
Expired | 306,000 | |||||||||||||||
Outstanding, vested and exercisable at June 30, 2020 | 0 | 0 | — | 0 | ||||||||||||
Share Options | Number of shares | Weighted average exercise price | Weighted average remaining contractual life (years) | Aggregate intrinsic value | ||||||||||||
Outstanding, vested and exercisable at June 30, 2020 | 0 | 0 | — | 0 | ||||||||||||
Granted on November 16, 2020 | 90,000 | 11.85 | 10 | — | ||||||||||||
Granted on March 17, 2021 | 478,500 | 11.85 | 9.95 | 1,165 | ||||||||||||
Outstanding, vested and exercisable at June 30, 2021 | 568,500 | 11.85 | 9.66 | 1,734 | ||||||||||||
Number of restricted shares | Weighted average grant-date fair value | |||||||
Un-vested at June 30, 2019 | 18,125 | 20.09 | ||||||
Granted | 67,500 | 16.06 | ||||||
Vested | 22,500 | 19.31 | ||||||
Un-vested at June 30, 2020 | 63,125 | 16.06 | ||||||
Number of restricted shares | Weighted average grant-date fair value | |||||||
Un-vested at June 30, 2019 | 18,125 | 20.09 | ||||||
Granted | 67,500 | 16.06 | ||||||
Vested | (22,500 | ) | 19.31 | |||||
Un-vested at June 30, 2020 | 63,125 | 16.06 | ||||||
Granted | 1,434,500 | 11.85 | ||||||
Vested | (177,288 | ) | 13.35 | |||||
Un-vested at June 30, 2021 | 1,320,337 | 11.85 | ||||||
Year ended June 30, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
PRC | $ | 127,301 | $ | 155,691 | $ | 140,539 | ||||||
Non-PRC | 2,341 | (11,968 | ) | (43,042 | ) | |||||||
$ | 129,642 | $ | 143,723 | $ | 97,497 | |||||||
Year ended June 30, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
PRC | $ | 155,691 | $ | 140,539 | $ | 137,520 | ||||||
Non-PRC | (11,968 | ) | (43,042 | ) | (27,628 | ) | ||||||
$ | 143,723 | $ | 97,497 | $ | 109,892 | |||||||
Year ended June 30, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Current income tax expense | ||||||||||||
PRC | 17,268 | 22,206 | 10,369 | |||||||||
Non-PRC | 6,462 | 2,175 | 1,388 | |||||||||
$ | 23,730 | $ | 24,381 | $ | 11,757 | |||||||
Deferred income tax (benefit) expense | ||||||||||||
PRC | (1,348 | ) | (5,722 | ) | 5,577 | |||||||
Non-PRC | (177 | ) | (475 | ) | 837 | |||||||
$ | (1,525 | ) | (6,197 | ) | 6,414 | |||||||
$ | 22,205 | $ | 18,184 | $ | 18,171 | |||||||
Year ended June 30, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Current income tax expense | ||||||||||||
PRC | 22,206 | 10,369 | 25,634 | |||||||||
Non-PRC | 2,175 | 1,388 | 758 | |||||||||
$ | 24,381 | $ | 11,757 | $ | 26,392 | |||||||
Deferred income tax (benefit) expense | ||||||||||||
PRC | (5,722 | ) | 5,577 | (7,971 | ) | |||||||
Non-PRC | (475 | ) | 837 | 2,133 | ||||||||
$ | (6,197 | ) | 6,414 | (5,838 | ) | |||||||
$ | 18,184 | $ | 18,171 | $ | 20,554 | |||||||
Year ended June 30, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Income before income taxes | $ | 129,642 | $ | 143,723 | $ | 97,497 | ||||||
Expected income tax expense at statutory tax rate in the PRC | 32,410 | 35,931 | 24,374 | |||||||||
Effect of different tax rates in various jurisdictions | (521 | ) | 1,781 | 3,997 | ||||||||
Effect of preferential tax treatment | (11,678 | ) | (13,444 | ) | (11,797 | ) | ||||||
Effect of non-taxable income | (284 | ) | (1,500 | ) | (250 | ) | ||||||
Effect of additional deductible research and development expenses | (4,260 | ) | (5,833 | ) | (7,241 | ) | ||||||
Effect of non-deductible expenses | 3,046 | 5,489 | 10,661 | |||||||||
O ver provision income taxin previous years | (4,801 | ) | (8,457 | ) | (6,118 | ) | ||||||
Change in valuation allowance | 2,359 | 1,399 | 3,746 | |||||||||
Withholding tax on dividends paid by subsidiaries | 4,784 | 2,847 | 799 | |||||||||
Others | 1,150 | (29 | ) | 0 | ||||||||
Total | $ | 22,205 | $ | 18,184 | $ | 18,171 | ||||||
Year ended June 30, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Income before income taxes | $ | 143,723 | $ | 97,497 | $ | 109,892 | ||||||
Expected income tax expense at statutory tax rate in the PRC | 35,931 | 24,374 | 33,221 | |||||||||
Effect of different tax rates in various jurisdictions | 1,781 | 3,997 | 4,665 | |||||||||
Effect of preferential tax treatment | (13,444 | ) | (11,797 | ) | (14,334 | ) | ||||||
Effect of non-taxable income | (1,500 | ) | (250 | ) | (4,770 | ) | ||||||
Effect of additional deductible research and development expenses | (5,833 | ) | (7,241 | ) | (9,838 | ) | ||||||
Effect of non-deductible expenses | 5,489 | 10,661 | 6,644 | |||||||||
Over provision of income tax in previous years | (8,457 | ) | (6,118 | ) | 2,102 | |||||||
Change in valuation allowance | 1,399 | 3,746 | 1,718 | |||||||||
Withholding tax on dividends paid by subsidiaries | 2,847 | 799 | 0 | |||||||||
Others | (29 | ) | 0 | 1,146 | ||||||||
Total | $ | 18,184 | $ | 18,171 | $ | 20,554 | ||||||
June 30, | June 30, | |||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||
Deferred tax assets | ||||||||||||||||
Allowance for doubtful accounts | $ | 8,805 | $ | 7,808 | $ | 7,808 | $ | 12,480 | ||||||||
Deferred subsidies | 1,916 | 2,484 | 2,484 | 529 | ||||||||||||
Warranty liabilities | 1,234 | 984 | 984 | 911 | ||||||||||||
Inventory provision | 655 | 687 | 687 | 199 | ||||||||||||
Long-term assets | 357 | 397 | 397 | 622 | ||||||||||||
Deferred revenue | — | 105 | ||||||||||||||
Provision for loss contracts | 59 | 99 | 99 | 64 | ||||||||||||
Net operating loss carry forward | 12,846 | 13,824 | 13,824 | 17,290 | ||||||||||||
Valuation allowance | (11,428 | ) | (14,821 | ) | (14,821 | ) | (17,424 | ) | ||||||||
Others | 385 | 325 | 325 | 214 | ||||||||||||
Total deferred tax assets | $ | 14,829 | $ | 11,787 | $ | 11,787 | $ | 14,990 | ||||||||
Deferred tax liabilities | ||||||||||||||||
Property, plant and equipment | $ | (13 | ) | $ | (11 | ) | $ | (11 | ) | $ | (678 | ) | ||||
Costs and estimated earnings in excess of billings | (365 | ) | (3,396 | ) | (3,396 | ) | (1,159 | ) | ||||||||
Share of net losses of equity investees | (739 | ) | (668 | ) | (668 | ) | (1,352 | ) | ||||||||
PRC dividend withholding tax | (5,825 | ) | (6,654 | ) | (6,654 | ) | (8,829 | ) | ||||||||
Intangible assets and other non-current assets | (6,335 | ) | (6,089 | ) | (6,089 | ) | (7,321 | ) | ||||||||
Total deferred tax liabilities | $ | (13,277 | ) | $ | (16,818 | ) | $ | (16,818 | ) | $ | (19,339 | ) | ||||
Fiscal year ended June 30, 2021 | |||||
Operating lease costs | 2,324 | ||||
Short-term lease costs | 1,000 | ||||
Amortization of prepaid land leases | 454 | ||||
3,778 | |||||
Fiscal year ended June 30, 2021 | |||||||
Other information | |||||||
Cash paid for amounts included in the measurement of operating lease liabilities | |||||||
ROU assets obtained in exchange for new operating lease liabilities | |||||||
Weighted-average remaining lease term (in years): | |||||||
Operating leases | |||||||
Weighted-average discount rate: | |||||||
Operating leases | 4.17 | % |
As of June 30, 2020 | ||||
2021 | $ | 3,038 | ||
2022 | 2,172 | |||
2023 | 1,023 | |||
2024 | 385 | |||
2025 and onwards | 0 | |||
Total minimum lease payments | 6,618 | |||
Less: imputed interest | 827 | |||
Total lease liability balance | $ | 5,791 | ||
As of June 30, 2021 | ||||
2022 | $ | 3,302 | ||
2023 | 2,091 | |||
2024 | 701 | |||
2025 | 16 | |||
2026 and onwards | 0 | |||
Total minimum lease payments | 6,110 | |||
Less: imputed interest | 84 | |||
Total lease liability balance | $ | 6,026 | ||
Year ending June 30, | Minimum lease payments | |||
2022 | $ | 3,523 | ||
2023 | 3,628 | |||
2024 | 2,189 | |||
2025 | 1,942 | |||
2026 | 2,000 | |||
Thereafter | 14,940 | |||
Total minimum lease payments to be received | $ | 28,222 | ||
Year ending June 30, | Minimum lease payments | |||
2021 | $ | 1,549 | ||
2022 | 1,595 | |||
2023 | 1,643 | |||
2024 | 278 | |||
2025 | 0 | |||
Total minimum lease payments to be received in the next five years | $ | 5,065 | ||
Year ended June 30, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Numerator: | ||||||||||||
Net income attributable to the Company as reported | $ | 107,161 | $ | 125,261 | $ | 79,396 | ||||||
Less: Earnings allocated to participating securities | 0 | 0 | (83 | ) | ||||||||
Net income attributable to common stockholders - basic | $ | 107,161 | $ | 125,261 | $ | 79,313 | ||||||
Add: | ||||||||||||
Effect of Convertible Bond | 264 | 562 | 93 | |||||||||
Earnings allocated to participating securities | 0 | 0 | 83 | |||||||||
Less: | ||||||||||||
Earnings reallocated to participating securities considering potentially dilutive securities | 0 | 0 | (83 | ) | ||||||||
Net income attributable to common stockholders – diluted | $ | 107,425 | $ | 125,823 | $ | 79,406 | ||||||
Denominator: | ||||||||||||
Weighted average ordinary shares outstanding used in computing basic income per share(i) | 60,434,019 | 60,456,524 | 60,478,717 | |||||||||
Effect of dilutive securities | ||||||||||||
Convertible Bond | 788,800 | 796,200 | 130,525 | |||||||||
Restricted shares | 25,746 | 21,160 | 0 | |||||||||
Weighted average ordinary shares outstanding used in computing diluted income per share | 61,248,565 | 61,273,884 | 60,609,242 | |||||||||
Income per share – basic | $ | 1.77 | 2.07 | 1.31 | ||||||||
Income per share – diluted | $ | 1.75 | 2.05 | 1.31 | ||||||||
Year ended June 30, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Numerator: | ||||||||||||
Net income attributable to the Company as reported | $ | 125,261 | $ | 79,396 | $ | 89,709 | ||||||
Less: Earnings allocated to participating securities | 0 | (83 | ) | 0 | ||||||||
Net income attributable to common stockholders - basic | $ | 125,261 | $ | 79,313 | $ | 89,709 | ||||||
Add: | ||||||||||||
Effect of Convertible Bond | 562 | 93 | 0 | |||||||||
Earnings allocated to participating securities | 0 | 83 | 0 | |||||||||
Less: | ||||||||||||
Earnings reallocated to participating securities considering potentially dilutive securities | 0 | (83 | ) | 0 | ||||||||
Net income attributable to common stockholders – diluted | $ | 125,823 | $ | 79,406 | $ | 89,709 | ||||||
Denominator: | ||||||||||||
Weighted average ordinary shares outstanding used in computing basic income per share(i) | 60,456,524 | 60,478,717 | 60,566,709 | |||||||||
Effect of dilutive securities | ||||||||||||
Convertible Bond | 796,200 | 130,525 | 0 | |||||||||
Restricted shares | 21,160 | 0 | 947,040 | |||||||||
Weighted average ordinary shares outstanding used in computing diluted income per share | 61,273,884 | 60,609,242 | 61,513,749 | |||||||||
Income per share – basic | $ | 2.07 | 1.31 | 1.48 | ||||||||
Income per share – diluted | $ | 2.05 | 1.31 | 1.46 | ||||||||
(i) | Vested and unissued restricted shares of 2019 and 2020 as their effects would be anti-dilutive. |
Name of related parties | Relationship with the Company | |
China Techenergy Co., Ltd. (“China Techenergy”) | 40% owned by Beijing Hollysys | |
Beijing Hollysys Electric Motor Co., Ltd. (“Electric Motor”) | 40% owned by Beijing Hollysys | |
Beijing Hollycon Medicine & Technology. Co., Ltd. (“Hollycon”) | 30% owned by Hollysys Group Co., Ltd.(“Hollysys Group”) | |
Ningbo Hollysys Intelligent Technologies Co., Ltd. (“Ningbo Hollysys”) | 40% owned by Hollysys Group | |
Hunan LingXiang Maglev Technology Co., Ltd.(“Hunan LingXiang”) |
June 30, | June 30, | |||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||
China Techenergy | $ | 28,048 | $ | 14,301 | $ | 14,301 | $ | 19,241 | ||||||||
Ningbo Hollysys | 7,973 | 6,142 | 6,142 | 11,190 | ||||||||||||
Hollycon | 124 | 961 | 961 | 64 | ||||||||||||
Hunan LingXiang | 40 | 40 | 0 | |||||||||||||
Hollysys Machine | 150 | 0 | ||||||||||||||
Others | — | 3 | ||||||||||||||
Allowance for credit losses | 0 | (2,255 | ) | |||||||||||||
$ | 36,295 | $ | 21,444 | $ | 21,444 | $ | 28,243 | |||||||||
June 30, | ||||||||
2020 | 2021 | |||||||
China Techenergy | $ | 2,967 | $ | 1,028 | ||||
Ningbo Hollysys | 609 | 529 | ||||||
Hollycon | — | 23 | ||||||
Hunan LingXiang | — | 81 | ||||||
$ | 3,576 | $ | 1,661 | |||||
June 30, | ||||||||
2019 | 2020 | |||||||
China Techenergy | $ | 4,659 | $ | 2,967 | ||||
Ningbo Hollysys | 736 | 609 | ||||||
$ | 5,395 | $ | 3,576 | |||||
Purchases of goods and services from: |
Year ended June 30, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Ningbo Hollysys (i) | $ | 0 | $ | 702 | $ | 1,838 | ||||||
Hollycon | 16 | 4 | 0 | |||||||||
Electric Motor | 77 | 0 | 0 | |||||||||
$ | 93 | $ | 706 | $ | 1,838 | |||||||
Year ended June 30, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Ningbo Hollysys (i) | $ | 702 | $ | 1,838 | $ | 3,051 | ||||||
Hollycon | 4 | 0 | 7 | |||||||||
$ | 706 | $ | 1,838 | $ | 3,058 | |||||||
(i) | The Company purchases products from Ningbo Hollysys which are used to provide an integrated automation and control system to itscustomers . |
Sales of goods and integrated solutions to: |
Year ended June 30, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
China Techenergy (i) | $ | 11,519 | $ | 11,094 | $ | 1,711 | ||||||
Hollycon ( ii ) | 225 | 44 | 1,302 | |||||||||
Ningbo Hollysys (ii) | 0 | 472 | 179 | |||||||||
HuNan Lin gXiang | 0 | 0 | 38 | |||||||||
Others | 86 | 0 | 0 | |||||||||
$ | 11,830 | $ | 11,610 | $ | 3,230 | |||||||
Year ended June 30, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
China Techenergy (i) | $ | 11,094 | $ | 1,711 | $ | 8,458 | ||||||
Hollycon (ii) | 44 | 1,302 | 866 | |||||||||
Ningbo Hollysys (ii) | 472 | 179 | 308 | |||||||||
HuNan LingXiang | 0 | 38 | 0 | |||||||||
$ | 11,610 | $ | 3,230 | $ | 9,632 | |||||||
(i) | The Company sells automation control systems to China Techenergy which is used for non-safety operations control in the nuclear power industry. China Techenergy incorporates the Company’snon-safety automation control systems with their proprietary safety automated control systems to provide an overall automation and control system for nuclear power stations in China. The Company is not a party to the integrated sales contracts executed between China Techenergy and its customers. The Company’s pro rata shares of the intercompany profits and losses are eliminated until realized through a sale to third party customers, as if China Techenergyis a consolidated subsidiary. |
(ii) | The Company sells products to Hollycon and Ningbo Hollysys, their automated systems to provide an integrated automation and control system to their and Ningbo Hollysys are consolidated |
Year ended June 30, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Ningbo Hollysys (i) | $ | 0 | $ | 1,548 | $ | 2,214 | ||||||
Hollycon (ii) | 731 | 972 | 880 | |||||||||
China Techener gy | 1,122 | |||||||||||
$ | 731 | $ | 2,520 | $ | 4,216 | |||||||
Year ended June 30, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Ningbo Hollysys (i) | $ | 1,548 | $ | 2,214 | $ | 2,281 | ||||||
Hollycon (ii) | 972 | 880 | 460 | |||||||||
China Techenergy | — | 1,122 | — | |||||||||
$ | 2,520 | $ | 4,216 | $ | 2,741 | |||||||
(i) | The Company entered into an operating lease agreement with Ningbo Hollysys to lease part of a building in |
(ii) | The Company entered into an operating lease agreement with Hollycon to lease part of building located in Beijing. The lease term |
Year ended June 30, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Ningbo Hollysys (i) | $ | 0 | $ | 0 | $ | 655 | ||||||
Year ended June 30, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Ningbo Hollysys (i) | $ | 0 | $ | 655 | $ | 212 | ||||||
(i) | The Company purchases research and development services from Ningbo Hollysys for research and development projects in the field of intelligent manufacturing. |
Years ending June 30, | Minimum payments | |||
2021 | $ | 187,749 | ||
2022 | 17,150 | |||
2023 | 11,434 | |||
2024 | 5,717 | |||
2025 | 5,717 |
Years ending June 30, | Minimum payments | |||
2022 | $ | 229,407 | ||
2023 | 21,143 | |||
2024 | 14,095 | |||
2025 | 7,048 | |||
2026 | 14,095 |
Year ended June 30, 2018 | Year ended June 30, 2019 | |||||||||||||||||||||||||||||||
IA | Rail | M&E | Consolidated | IA | Rail | M&E | Consolidated | |||||||||||||||||||||||||
Revenues from external customers | ||||||||||||||||||||||||||||||||
Integrated solutions contracts revenue | $ | 178,769 | 162,696 | 124,996 | 466,461 | $ | 191,668 | 148,365 | 127,338 | 467,371 | ||||||||||||||||||||||
Product sales | 35,387 | 4,846 | 0 | 40,233 | 27,390 | 5,712 | 0 | 33,102 | ||||||||||||||||||||||||
Maintenance service revenue | 9,547 | 21,390 | 334 | 31,271 | 13,978 | 53,359 | 288 | 67,625 | ||||||||||||||||||||||||
Extended warranty service revenue | 1,090 | 1,713 | 0 | 2,803 | 762 | 1,481 | 0 | 2,243 | ||||||||||||||||||||||||
Total | 224,793 | 190,645 | 125,330 | 540,768 | 233,798 | 208,917 | 127,626 | 570,341 | ||||||||||||||||||||||||
Costs of revenue | 135,633 | 90,574 | 108,681 | 334,888 | 139,010 | 109,567 | 110,598 | 359,175 | ||||||||||||||||||||||||
Gross profit | $ | 89,160 | 100,071 | 16,649 | 205,880 | $ | 94,788 | 99,350 | 17,028 | 211,166 | ||||||||||||||||||||||
Year ended June 30, 2020 | ||||||||||||||||
IA | Rail | M&E | Consolidated | |||||||||||||
Revenues from external customers | ||||||||||||||||
Integrated solutions contracts revenue | $ | 207,421 | 145,750 | 61,101 | 414,272 | |||||||||||
Product sales | 15,504 | 4,640 | 0 | 20,144 | ||||||||||||
Maintenance service revenue | 15,985 | 49,140 | 916 | 66,041 | ||||||||||||
Extended warranty service revenue | 1,061 | 1,809 | 0 | 2,870 | ||||||||||||
Total | 239,971 | 201,339 | 62,017 | 503,327 | ||||||||||||
Costs of revenue | 154,298 | 107,382 | 51,079 | 312,759 | ||||||||||||
Gross profit | $ | 85,673 | 93,957 | 10,938 | 190,568 | |||||||||||
Year ended June 30, 2019 | ||||||||||||||||
IA | Rail | M&E | Consolidated | |||||||||||||
Revenues from external customers | ||||||||||||||||
Integrated solutions contracts revenue | $ | 191,668 | 148,365 | 127,338 | 467,371 | |||||||||||
Product sales | 27,390 | 5,712 | 0 | 33,102 | ||||||||||||
Maintenance service revenue | 13,978 | 53,359 | 288 | 67,625 | ||||||||||||
Extended warranty service revenue | 762 | 1,481 | 0 | 2,243 | ||||||||||||
Total | 233,798 | 208,917 | 127,626 | 570,341 | ||||||||||||
Costs of revenue | 139,010 | 109,567 | 110,598 | 359,175 | ||||||||||||
Gross profit | $ | 94,788 | 99,350 | 17,028 | 211,166 | |||||||||||
Year ended June 30, 2020 | ||||||||||||||||
IA | Rail | M&E | Consolidated | |||||||||||||
Revenues from external customers | ||||||||||||||||
Integrated solutions contracts revenue | $ | 207,421 | 145,750 | 61,101 | 414,272 | |||||||||||
Product sales | 15,504 | 4,640 | 0 | 20,144 | ||||||||||||
Maintenance service revenue | 15,985 | 49,140 | 916 | 66,041 | ||||||||||||
Extended warranty service revenue | 1,061 | 1,809 | 0 | 2,870 | ||||||||||||
Total | 239,971 | 201,339 | 62,017 | 503,327 | ||||||||||||
Costs of revenue | 154,298 | 107,382 | 51,079 | 312,759 | ||||||||||||
Gross profit | $ | 85,673 | 93,957 | 10,938 | 190,568 | |||||||||||
Year ended June 30, 2021 | ||||||||||||||||
IA | Rail | M&E | Consolidated | |||||||||||||
Revenues from external customers | ||||||||||||||||
Integrated solutions contracts revenue | $ | 291,106 | 100,877 | 68,197 | 460,180 | |||||||||||
Product sales | 22,772 | 5,895 | 0 | 28,667 | ||||||||||||
Maintenance service revenue | 21,402 | 79,874 | 46 | 101,322 | ||||||||||||
Extended warranty service revenue | 1,772 | 1,525 | 0 | 3,297 | ||||||||||||
Total | 337,052 | 188,171 | 68,243 | 593,466 | ||||||||||||
Costs of revenue | 227,107 | 90,386 | 57,694 | 375,187 | ||||||||||||
Gross profit | $ | 109,945 | 97,785 | 10,549 | 218,279 | |||||||||||
Year ended June 30, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Revenues: | ||||||||||||
PRC | $ | 412,993 | $ | 438,832 | $ | 441,305 | ||||||
Non-PRC | 127,775 | 131,509 | 62,022 | |||||||||
$ | 540,768 | $ | 570,341 | $ | 503,327 | |||||||
Year ended June 30, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Revenues: | ||||||||||||
PRC | $ | 438,832 | $ | 441,305 | $ | 518,170 | ||||||
Non-PRC | 131,509 | 62,022 | 75,296 | |||||||||
$ | 570,341 | $ | 503,327 | $ | 593,466 | |||||||
June 30, | June 30, | |||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||
Long-lived assets other than goodwill and acquired intangible assets | ||||||||||||||||
PRC | $ | 125,781 | $ | 129,340 | $ | 129,340 | $ | 163,343 | ||||||||
Non-PRC | 11,986 | 11,938 | 11,938 | 11,458 | ||||||||||||
$ | 137,767 | $ | 141,278 | $ | 141,278 | $ | 174,801 | |||||||||
June 30, | ||||||||
2019 | 2020 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 48,349 | $ | 13,265 | ||||
Time deposits with original maturities over three months | — | 11,318 | ||||||
Other receivables, net | — | 31 | ||||||
Amounts due from subsidiaries | 57,703 | 53,503 | ||||||
Prepaid expenses | 78 | 97 | ||||||
Total current assets | 106,130 | 78,214 | ||||||
Investment in subsidiaries | 986,155 | 1,046,725 | ||||||
Total assets | $ | 1,092,285 | $ | 1,124,939 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Current portion of long-term loans | $ | 19,995 | $ | 0 | ||||
Derivative financial liability | 758 | 0 | ||||||
Amounts due to subsidiaries | 126,146 | 140,456 | ||||||
Total liabilities | 146,899 | 140,456 | ||||||
Equity: | ||||||||
Ordinary shares, par value $0.001 per share, 100,000,000 shares authorized; 60,342,099 shares issued and 60,537,099 shares issued and outstanding as of June 30, 2019 and 2020, respectively | 60 | 61 | ||||||
Additional paid-in capital | 223,634 | 224,043 | ||||||
Retained earnings | 757,213 | 823,896 | ||||||
Accumulated other comprehensive loss | (35,521 | ) | (63,517 | ) | ||||
Total equity | 945,386 | 984,483 | ||||||
Total liabilities and equity | $ | 1,092,285 | $ | 1,124,939 | ||||
CONDENSED BALANCE SHEETS | ||||||||
June 30, | ||||||||
2020 | 2021 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 13,265 | $ | 7,824 | ||||
Short-term investments | 11,318 | — | ||||||
Other receivables, net | 31 | — | ||||||
Amounts due from subsidiaries | 53,503 | 53,503 | ||||||
Prepaid expenses | 97 | 166 | ||||||
Total current assets | 78,214 | 61,493 | ||||||
Investment in subsidiaries | 1,046,725 | 1,221,755 | ||||||
Total assets | $ | 1,124,939 | $ | 1,283,248 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accrued liabilities | — | 5,143 | ||||||
Amounts due to subsidiaries | 140,456 | 140,415 | ||||||
Total liabilities | 140,456 | 145,558 | ||||||
Equity: | ||||||||
Ordinary shares, par value $0.001 per share, 100,000,000 shares authorized; 60,537,099 shares issued and 61,367,337 shares issued and outstanding as of June 30,2020 and2021 , respectively | 61 | 61 | ||||||
Additional paid-in capital | 224,043 | 233,768 | ||||||
Retained earnings | 823,896 | 871,047 | ||||||
Accumulated other comprehensive ( loss) income | (63,517 | ) | 32,814 | |||||
Total equity | 984,483 | 1,137,690 | ||||||
Total liabilities and equity | $ | 1,124,939 | $ | 1,283,248 | ||||
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2020 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | $ | 1,511 | $ | 1,344 | $ | 21,090 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss from operations | (1,511 | ) | (1,344 | ) | (21,090 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expense, net | (346 | ) | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | 0 | 309 | 117 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expenses | (562 | ) | (90 | ) | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange ( losses) gains | (72 | ) | (1,043 | ) | 1,532 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share of net income of subsidiaries | $ | 127,752 | $ | 81,564 | $ | 109,150 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 125,261 | 79,396 | 89,709 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expenses | 0 | 0 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 125,261 | 79,396 | 89,709 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax of nil | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Translation adjustment | (31,341 | ) | (27,996 | ) | 96,331 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | $ | 93,920 | $ | 51,400 | $ | 186,040 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 125,261 | $ | 79,396 | $ | 89,709 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments to reconcile net income to net cash used in operating activities: |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(127,752 | ) | (81,564 | ) | (109,150 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expenses | 238 | 410 | 9,724 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accretion of | 230 | 57 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value adjustments of a bifurcated derivative | 346 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in | (28 | ) | (142 | ) | 5,065 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash used in operating activities | $ | (1,705 | ) | $ | (1,843 | ) | $ | (4,652 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to subsidiaries | (4,200 | ) | (19,775 | ) | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity of short-term investments | — | — | 11,318 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash (used in) provided by investing activities | $ | (4,200 | ) | $ | (19,775 | ) | $ | 11,318 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment of convertible bond | — | (20,753 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds of loans from subsidiaries | 43,538 | 20,000 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of dividends | (10,862 | ) | (12,713 | ) | (12,107 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | $ | 32,676 | $ | (13,466 | ) | $ | (12,107 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net increase in cash and cash equivalents | $ | 26,771 | $ | (35,084 | ) | $ | (5,441 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents, beginning of period | 21,578 | 48,349 | 13,265 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents, end of period | $ | 48,349 | $ | 13,265 | $ | 7,824 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||