Cover Page
Cover Page | 12 Months Ended |
Jun. 30, 2023 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2023 |
Entity File Number | 001-33602 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | HOLLYSYS AUTOMATION TECHNOLOGIES LTD. |
Entity Incorporation, State or Country Code | D8 |
Entity Address, Address Line One | No. 2 Disheng Middle Road |
Entity Address, Address Line Two | Beijing Economic-Technological Development Area |
Entity Address, City or Town | Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100176 |
Entity Common Stock, Shares Outstanding | 62,021,930 |
Entity Central Index Key | 0001357450 |
Current Fiscal Year End Date | --06-30 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Registration Statement | false |
ICFR Auditor Attestation Flag | true |
Auditor Name | Union Power HK CPA Limited |
Auditor Firm ID | 3004 |
Auditor Location | Hong Kong, The People’s Republic of China |
Document Financial Statement Error Correction [Flag] | false |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | No. 2 Disheng Middle Road |
Entity Address, Address Line Two | Beijing Economic-Technological Development Area |
Entity Address, City or Town | Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100176 |
Contact Personnel Name | Chuan (Arden) XIA |
City Area Code | 86 10 |
Local Phone Number | 5898 1386 |
Contact Personnel Email Address | xiachuan@hollysys.com |
Ordinary shares [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | Ordinary Shares, $0.001 par value per share |
Trading Symbol | HOLI |
Security Exchange Name | NASDAQ |
Preferred Stock [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | Preferred Share |
No Trading Symbol Flag | true |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 611,632 | $ 679,754 |
Short-term investments | 33,202 | 12,203 |
Restricted cash | 23,009 | 38,486 |
Accounts receivable, net of allowance for credit losses of $77,603 and $73,009 as of June 30, 2022 and 2023, respectively | 309,822 | 317,763 |
Costs and estimated earnings in excess of billings, net of allowance for credit losses of $12,178 and $14,438 as of June 30, 2022 and 2023, respectively | 253,262 | 228,877 |
Accounts receivable retention | 7,465 | 6,005 |
Other receivables, net of allowance for credit losses of $12,449 and $12,044 as of June 30, 2022 and 2023, respectively | 19,265 | 26,100 |
Advances to suppliers | 28,493 | 33,851 |
Inventories | 111,634 | 91,243 |
Prepaid expenses | 596 | 667 |
Income tax recoverable | 649 | 258 |
Total current assets | 1,424,935 | 1,462,567 |
Non-current assets: | ||
Restricted cash | 13,489 | 787 |
Costs and estimated earnings in excess of billings | 1,746 | 3,021 |
Accounts receivable retention | 6,587 | 6,561 |
Prepaid expenses | 3 | 1 |
Property, plant and equipment, net | 134,626 | 98,249 |
Prepaid land leases | 11,503 | 12,447 |
Intangible assets, net | 8,483 | 10,742 |
Investments in equity investees | 47,603 | 46,581 |
Investments in securities | 1,561 | 1,693 |
Goodwill | 18,939 | 20,539 |
Deferred tax assets | 11,937 | 4,540 |
Operating lease right-of-use assets | 3,436 | 4,045 |
Total non-current assets | 259,913 | 209,206 |
Total assets | 1,684,848 | 1,671,773 |
Current liabilities (including amounts of the VIE without recourse to the primary beneficiary of $1,547 and $586 as of June 30, 2022 and 2023, respectively): | ||
Short-term bank loans | 0 | 66 |
Current portion of long-term loans | 15,231 | 15,210 |
Accounts payable | 170,632 | 173,953 |
Construction costs payable | 11,085 | 92 |
Deferred revenue | 181,387 | 206,222 |
Accrued payroll and related expenses | 26,742 | 23,535 |
Income tax payable | 6,414 | 4,509 |
Warranty liabilities | 3,238 | 3,280 |
Other tax payables | 10,504 | 11,587 |
Accrued liabilities | 36,870 | 37,282 |
Amounts due to related parties | 6,155 | 6,299 |
Current portion of other liability | 0 | 3 |
Operating lease liabilities | 1,887 | 2,518 |
Total current liabilities | 470,145 | 484,556 |
Non-current liabilities (including amounts of the VIE without recourse to the primary beneficiary of nil and nil as of June 30, 2022 and 2023, respectively): | ||
Accrued liabilities | 2,367 | 3,349 |
Long-term loans | 16,775 | 434 |
Accounts payable | 2,588 | 1,556 |
Deferred tax liabilities | 13,069 | 12,966 |
Warranty liabilities | 2,568 | 1,722 |
Operating lease liabilities | 1,103 | 1,282 |
Long-term other liabilities | 0 | 80 |
Total non-current liabilities | 38,470 | 21,389 |
Total liabilities | 508,615 | 505,945 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Ordinary shares, par value $0.001 per share, 100,000,000 shares authorized; 61,962,449 shares and 62,021,930 shares issued and outstanding as of June 30, 2022 and 2023, respectively | 62 | 62 |
Additional paid-in capital | 246,908 | 243,476 |
Statutory reserves | 78,875 | 77,263 |
Retained earnings | 961,782 | 857,141 |
Accumulated other comprehensive loss | (112,418) | (12,655) |
Total Hollysys Automation Technologies Ltd. stockholders' equity | 1,175,209 | 1,165,287 |
Non-controlling interests | 1,024 | 541 |
Total equity | 1,176,233 | 1,165,828 |
Total liabilities and equity | 1,684,848 | 1,671,773 |
Related Party [Member] | ||
Current assets: | ||
Amounts due from related parties | $ 25,906 | $ 27,360 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Allowance for doubtful accounts, accounts receivable | $ 73,009 | $ 77,603 |
Allowance for doubtful accounts of costs and estimated earnings in excess of billings | 14,438 | 12,178 |
Allowance for doubtful accounts, other receivables | $ 12,044 | $ 12,449 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 62,021,930 | 61,962,449 |
Common stock, shares outstanding (in shares) | 62,021,930 | 61,962,449 |
Liabilities, Current | $ 470,145 | $ 484,556 |
Liabilities, Noncurrent | 38,470 | 21,389 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Liabilities, Current | 586 | 1,547 |
Liabilities, Noncurrent | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net revenues | |||
Total net revenues | $ 777,373 | $ 707,462 | $ 593,466 |
Gross profit | 255,485 | 239,357 | 218,279 |
Operating expenses | |||
Selling | 57,243 | 45,301 | 35,197 |
General and administrative | 63,580 | 80,241 | 69,982 |
Research and development (including research and development from related parties of $212, $208 and $144 for the years ended June 30, 2021, 2022 and 2023, respectively) | 70,200 | 69,580 | 55,954 |
VAT refunds and government subsidies | (28,551) | (30,309) | (30,099) |
Total operating expenses | 162,472 | 164,813 | 131,034 |
Income from operations | 93,013 | 74,544 | 87,245 |
Other income, net (including other income from related parties of $2,445, $2,830 and $1,891 for the years ended June 30, 2021, 2022 and 2023, respectively) | 3,372 | 2,185 | 10,449 |
Foreign exchange (loss) gain | 6,363 | 1,789 | (6,219) |
Gains on disposal of an investment in an equity investee | 0 | 7,995 | 0 |
Losses on disposal of subsidiaries | 0 | (3) | 0 |
Gains on disposal of an investment in securities | 845 | 0 | 3,323 |
Impairment loss of investments in cost investees | 0 | (773) | 0 |
Share of net income of equity investees | 3,116 | 1,838 | 604 |
Interest income | 12,394 | 12,698 | 14,131 |
Interest expenses | (878) | (731) | (553) |
Dividend income from investments in securities | 237 | 85 | 912 |
Income before income taxes | 118,462 | 99,627 | 109,892 |
Income tax expenses | 11,390 | 16,634 | 20,554 |
Net income | 107,072 | 82,993 | 89,338 |
Less: Net (loss) income attributable to non-controlling interests | 141 | (189) | (371) |
Net income attributable to Hollysys Automation Technologies Ltd. | 106,931 | 83,182 | 89,709 |
Other comprehensive income, net of tax of nil | |||
Translation adjustments | (99,719) | (46,590) | 96,577 |
Comprehensive income | 7,353 | 36,403 | 185,915 |
Less: Comprehensive (loss) income attributable to non-controlling interests | 185 | (1,310) | (125) |
Comprehensive income attributable to Hollysys Automation Technologies Ltd. | $ 7,168 | $ 37,713 | $ 186,040 |
Net income per share: | |||
Basic | $ 1.74 | $ 1.36 | $ 1.48 |
Diluted | $ 1.72 | $ 1.35 | $ 1.46 |
Shares used in net income per share computation: | |||
Basic | 61,521,412 | 61,007,806 | 60,566,709 |
Diluted | 62,034,400 | 61,568,476 | 61,513,749 |
Integrated Solution Contracts [Member] | |||
Net revenues | |||
Total net revenues | $ 632,100 | $ 573,567 | $ 460,180 |
Cost of revenue | 474,046 | 422,236 | 336,471 |
Product [Member] | |||
Net revenues | |||
Total net revenues | 47,424 | 38,486 | 28,667 |
Cost of revenue | 13,257 | 10,247 | 5,293 |
Service [Member] | |||
Net revenues | |||
Total net revenues | 97,849 | 95,409 | 104,619 |
Cost of revenue | $ 34,585 | $ 35,622 | $ 33,423 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue from Related Parties | $ 777,373 | $ 707,462 | $ 593,466 |
Research and development expenses related parties | 3,301 | ||
Other Income From Related Parties | 1,891 | 2,830 | 2,445 |
Research and Development Expense [Member] | |||
Research and development expenses related parties | 144 | 208 | 212 |
Integrated Solution Contracts [Member] | |||
Cost of Revenue from Related Parties | 1,811 | 1,214 | 1,860 |
Integrated Solution Contracts [Member] | Related Party [Member] | |||
Revenue from Related Parties | 3,524 | 2,288 | 1,446 |
Product [Member] | |||
Revenue from Related Parties | 47,424 | ||
Cost of Revenue from Related Parties | 155 | 519 | 1,198 |
Product [Member] | Related Party [Member] | |||
Revenue from Related Parties | $ 11,256 | $ 4,018 | $ 8,186 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 107,072 | $ 82,993 | $ 89,338 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation of property, plant and equipment | 8,612 | 10,263 | 9,959 |
Amortization of prepaid land leases | 331 | 382 | 454 |
Amortization of intangible assets | 1,342 | 1,356 | 316 |
Allowance for credit losses | 7,540 | 16,122 | 8,656 |
(Gain) loss on disposal of long-lived assets | 19 | (75) | (7) |
Share of net income of equity investees | (3,116) | (1,838) | (604) |
Dividends received from an equity investee | 0 | 0 | 91 |
Loss on disposal of subsidiaries | 0 | 3 | 0 |
Impairment loss on investment in a cost investee | 0 | 773 | 0 |
Gains on disposal of an investment of an equity investee | 0 | (7,995) | 0 |
Gain on disposal of an investment in securities | (845) | 0 | (3,323) |
Share-based compensation expenses | 3,286 | 9,709 | 9,724 |
Deferred income tax expenses (benefit) | (8,002) | 4,179 | (5,838) |
Other income, net | 0 | 0 | (6,724) |
Changes in operating assets and liabilities: | |||
Accounts receivable and retention | (32,011) | (11,807) | (88,854) |
Costs and estimated earnings in excess of billings | (40,902) | (39,839) | 3,049 |
Other receivables | 1,036 | (3,425) | 11,183 |
Advances to suppliers | 2,929 | (14,274) | (1,253) |
Due from related parties | (704) | 4,903 | 6,784 |
Inventories | (28,581) | (40,007) | 4,657 |
Prepaid expenses | 77 | 257 | (268) |
Accounts payable | 7,574 | 28,470 | 10,178 |
Deferred revenue | (10,017) | 19,221 | 31,432 |
Accruals and other payable | 5,947 | (16,417) | (966) |
Income tax payable | 1,957 | 1,423 | 514 |
Other tax payables | (223) | 5,511 | 2,700 |
Due to related parties | (144) | 4,638 | (1,915) |
Net cash provided by operating activities | 23,177 | 54,526 | 79,283 |
Cash flows from investing activities: | |||
Purchases of short-term investments | (126,069) | (64,383) | (147,237) |
Maturity of short-term investments | 103,718 | 100,562 | 443,095 |
Purchases of property, plant and equipment | (40,918) | (26,369) | (18,131) |
Proceeds from disposal of property, plant and equipment | 309 | 140 | 314 |
Investments made in equity investees | (1,653) | (1,261) | (9,459) |
Proceeds from disposal of a subsidiary | 4,175 | 3,797 | 0 |
Proceeds received from disposal of equity investments | 0 | 9,497 | 5,187 |
Acquisition of a subsidiary, net of cash acquired | (90) | (8,726) | (9,406) |
Proceeds received from investment in equity securities without readily determinable fair value | 845 | 0 | 5,895 |
Net cash provided by (used in) investing activities | (59,683) | 13,257 | 270,258 |
Cash flows from financing activities: | |||
Proceeds from short-term bank loans | 293 | 128 | 0 |
Repayments of short-term bank loans | (357) | (59) | 0 |
Proceeds from long-term bank loans | 18,818 | 875 | 520 |
Repayments of long-term bank loans | (869) | (673) | (633) |
Payment of dividends | 0 | (19,827) | (12,107) |
Proceeds from issuance of shares of a subsidiary | 0 | 0 | 2 |
Net cash (used in) provided by financing activities | 17,885 | (19,556) | (12,218) |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (52,276) | (24,747) | 39,127 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (70,897) | 23,480 | 376,450 |
Cash, cash equivalents and restricted cash, beginning of year | 719,027 | 695,547 | 319,097 |
Cash, cash equivalents and restricted cash, end of year | 648,130 | 719,027 | 695,547 |
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets: | |||
Cash and cash equivalents | 611,632 | 679,754 | 664,321 |
Current portion of restricted cash | 23,009 | 38,486 | 25,294 |
Non-current portion of restricted cash | 13,489 | 787 | 5,932 |
Total cash, cash equivalents and restricted cash | 648,130 | 719,027 | 695,547 |
Supplemental disclosures of cash flow information: | |||
Interest expense paid | 1,129 | 731 | 553 |
Income tax paid | 16,131 | 15,632 | 16,804 |
Supplemental disclosures of non-cash information: | |||
Acquisition of property, plant and equipment included in construction costs payable and accrued liabilities | $ 11,560 | $ 5,987 | $ 477 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Ordinary shares [Member] | Additional Paid-in Capital [Member] | Statutory Reserves [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Total Hollysys Automation Technologies Ltd. Stockholders' Equity [Member] | Noncontrolling Interest [Member] | |
Balance at Jun. 30, 2020 | $ 988,886 | $ 61 | $ 224,043 | $ 49,423 | $ 774,473 | $ (63,517) | $ 984,483 | $ 4,403 | |
Balance (in shares) at Jun. 30, 2020 | 60,537,099 | ||||||||
Issuance of ordinary shares | 1 | 1 | 1 | ||||||
Issuance of ordinary shares (in shares) | 830,238 | ||||||||
Share-based compensation | 9,724 | 9,724 | 9,724 | ||||||
Net income for the year | 89,338 | 89,709 | 89,709 | (371) | |||||
Appropriations to statutory reserves | 15,026 | (15,026) | |||||||
Dividend paid | (12,107) | (12,107) | (12,107) | ||||||
Translation adjustments | 96,577 | 96,331 | 96,331 | 246 | |||||
Effect of change in accounting principle – ASC 326 | (30,451) | (30,451) | (30,451) | ||||||
Balance at Jun. 30, 2021 | 1,141,968 | $ 61 | 233,768 | 64,449 | 806,598 | 32,814 | 1,137,690 | 4,278 | |
Balance (in shares) at Jun. 30, 2021 | 61,367,337 | ||||||||
Issuance of ordinary shares | $ 1 | (1) | |||||||
Issuance of ordinary shares (in shares) | 595,112 | ||||||||
Share-based compensation | 9,709 | 9,709 | 9,709 | ||||||
Net income for the year | 82,993 | 83,182 | 83,182 | (189) | |||||
Appropriations to statutory reserves | 12,812 | (12,812) | |||||||
Dividend paid | (19,827) | (19,827) | (19,827) | ||||||
Capital contribution from subsidiaries' non-controlling interest shareholders | 695 | 695 | |||||||
Deconsolidation of a subsidiary | (3,120) | 2 | 2 | (3,122) | |||||
Translation adjustments | (46,590) | (45,469) | (45,469) | (1,121) | |||||
Balance at Jun. 30, 2022 | 1,165,828 | $ 62 | 243,476 | 77,263 | 857,141 | (12,655) | 1,165,287 | 541 | |
Balance (in shares) at Jun. 30, 2022 | 61,962,449 | ||||||||
Issuance of ordinary shares | 534 | 534 | 534 | ||||||
Issuance of ordinary shares (in shares) | 59,481 | ||||||||
Share-based compensation | 3,286 | 3,286 | 3,286 | ||||||
Net income for the year | 107,072 | 106,931 | 106,931 | 141 | |||||
Appropriations to statutory reserves | 1,612 | (1,612) | |||||||
Acquisition of a subsidiary | [1] | (90) | (388) | (388) | 298 | ||||
Transfer of an equity investee | [2] | (678) | (678) | (678) | |||||
Translation adjustments | (99,719) | (99,763) | (99,763) | 44 | |||||
Balance at Jun. 30, 2023 | $ 1,176,233 | $ 62 | $ 246,908 | $ 78,875 | $ 961,782 | $ (112,418) | $ 1,175,209 | $ 1,024 | |
Balance (in shares) at Jun. 30, 2023 | 62,021,930 | ||||||||
[1]In March 2023, Hollysys Group Co., Ltd., spent $90 to acquire the remaining 20% equity of HollySys Smart Energy Technology (Beijing) Co., Ltd., The difference between the acquisition consideration and the carrying value of the equity is recorded in the consolidated statement of shareholders’ equity.[2]In March 2023, Beijing Hollysys Co., Ltd., transferred 40% the equity of China Techenergy Co., Ltd. to Beijing HollySys Control Technology Co., Ltd., without consideration. The $678 recorded in the consolidated statement of shareholders’ equity is the deferred tax effect of the intercompany transfer due to different tax rates of the subsidiaries. |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) $ in Thousands | 1 Months Ended |
Mar. 31, 2023 USD ($) | |
Percentage of equity interests transferred | 40% |
Deferred tax assets, investment in subsidiaries | $ 678 |
HollySys Smart Energy Technology (Beijing) Co Ltd [Member] | |
Payments to acquire interest in subsidiaries and affiliates | $ 90 |
Percentage of voting interest acquired | 20% |
ORGANIZATION AND BUSINESS BACKG
ORGANIZATION AND BUSINESS BACKGROUND | 12 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BUSINESS BACKGROUND | NOTE 1 - ORGANIZATION AND BUSINESS BACKGROUND The Company, its subsidiaries and the variable interest entity (“VIE”) Hollysys Automation Technologies Ltd. (“Hollysys” or the “Company”) was established under the laws of the British Virgin Islands (“BVI”) on February 6, 2006. As of June 30, 2023, the Company had subsidiaries incorporated in countries and jurisdictions including the People’s Republic of China (“PRC”), Singapore, Malaysia, Macau, Hong Kong, BVI, India, Qatar, Indonesia, and Philippines. The Company makes a determination at the inception of each arrangement whether an entity in which the Company has made an investment or in which the Company has other variable interests is considered a VIE. The Company consolidates a VIE when it is deemed to be the primary beneficiary. The primary beneficiary of a VIE is the party that meets both of the following criteria: (i) has the power to make decisions that most significantly affect the economic performance of the VIE; and (ii) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. Periodically, the Company determines whether any changes occurred requiring a reassessment of whether it is the primary beneficiary of a VIE. If the Company is not deemed to be the primary beneficiary in a VIE, the investment or other variable interests in a VIE is accounted for in accordance with applicable Generally Accepted Accounting Principles (“U.S. GAAP”). In November 2015, Concord Electrical Contracting Ltd., (“CECL”) was established in Doha, Qatar, by Concord Corporation Pte. Ltd. (“CCPL”), a wholly-owned subsidiary of the Company incorporated under the laws of Singapore, and a Qatar citizen as a nominee shareholder, with 49% and 51% of equity interest in CECL, respectively. Through a series of contractual arrangements signed in November 2015 and September 2016, CCPL is entitled to appoint a majority of the directors of CECL who have the power to direct the activities that significantly impact CECL’s economic performance. In addition, CCPL is entitled to 99% of the variable returns or loss from CECL’s operations. In accordance with Accounting Standards Codification (“ASC”) 810, Consolidation The following tables set forth the financial statement balances and amounts of the VIE that were included in the consolidated financial statements: June 30, 2022 2023 Current assets $ 3,391 $ 3,149 Non-current 6 — Total assets 3,397 3,149 Current liabilities $ 1,547 $ 586 Total liabilities 1,547 586 Year ended June 30, 2022 2023 Net revenue $ 7 $ — Cost of revenue (1) (1,474 ) (792 ) Net profit 1,481 792 Net cash used in operating activities (323 ) (319 ) (1) Cost of revenue is negative because of the reversal of warranties provision which was overprovided in previous years. As of June 30, 2023, the current assets of the VIE included amounts due from subsidiaries of the Group amounting to $2,475 (June 30, 2022: $2,403), and the current liabilities of the VIE included amounts due to subsidiaries of the Group amounting to $328 (June 30, 2022: $325), which were all eliminated upon consolidation by the Company. Creditors of the VIE do not have recourse to the general credit of the Company for the liabilities of the VIE. The Company is obligated to absorb the VIE’s expected losses and to provide financial support to the VIE if required. For the years ended June 30, 2022 and 2023, the Company has not provided financial support other than that for which it was contractually required to provide. The Company believes that there are no assets of the VIE that can be used to settle only the obligations of the VIE. In July 2017, Bond Corporation Pte. Ltd (“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 Bond M & E Sdn. Bhd. (“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 in 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 BMJB in its consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements are prepared in accordance with U.S. GAAP. Principles of Consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and a VIE. All inter-company transactions and balances between the Company, its subsidiaries, and the VIE are eliminated upon consolidation. The Company included the results of operations of acquired businesses from the respective dates of acquisition. Use of estimates The preparation of financial statements in conformity with U . . Foreign currency translations and transactions The Company’s functional currency is the United States dollar (“US dollars” or “$”); whereas the Company’s subsidiaries and VIE use the primary currency of the economic environment in which their operations are conducted as their functional currency. According to the criteria of ASC 830, Foreign Currency Matters The Company translates the assets and liabilities of its subsidiaries and VIE into US dollars using the rate of exchange prevailing at the balance sheet date, and the consolidated statements of comprehensive income are translated at average rates during the reporting period. Adjustments resulting from the translation of financial statements from the functional currency into US dollars are recorded in stockholders’ equity as part of accumulated other comprehensive income. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing on the transaction dates, and the exchange gains or losses are reflected in the consolidated statements of comprehensive income for the reporting period. “RMB” and “CNY” refer to Renminbi, the legal currency of China; “SGD” and “S$” refer to the Singapore dollar, the legal currency of Singapore; “US dollar,” “$” and “US$” refer to the legal currency of the United States; “MYR” refers to the Malaysian Ringgit, the legal currency of Malaysia; “AED” refers to the United Arab Emirates Dirham, the legal currency of United Arab Emirates; “HKD” refers to the Hong Kong dollar, the legal currency of Hong Kong; “MOP” refers to the Macau Pataca, the legal currency of Macau; “INR” refers to the Indian Rupee, the legal currency of India; and “QAR” refers to the Qatar Riyal, the legal currency of Qatar; “IDR” refers to Indonesia Rupiah, the legal currency of Indonesia, “PHP” refers to Philippine Peso, the legal currency of Philippines. Business combinations The Company accounts for its business combinations using the purchase method of accounting in accordance with ASC Topic 805, Business Combinations non-controlling non-controlling The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and non-controlling Acquisition-related costs are recognized as general and administrative expenses in the consolidated statements of comprehensive income as incurred. Cash and cash equivalents Cash and cash equivalents consist of cash on hand and bank deposits, which are unrestricted as to withdrawal and use. All highly liquid investments that are readily convertible to known amounts of cash with original stated maturities of three months or less are classified as cash equivalents. Short-term investments Short-term investments consist of deposits placed with financial institutions with original maturity terms from four months to one year. As of June 30, 2023, $24,938, $1,490, and $6,774 of short-term investments were placed in financial institutions in the PRC, Singapore, and Malaysia, respectively. As of June 30, 2022, $nil, $4,310, and $7,893 of short-term investments were placed in financial institutions in the PRC, Singapore, Malaysia, respectively. Restricted cash Restricted cash mainly consists of the cash deposited in banks pledged for performance guarantees or bank loans. These cash balances are not available for use until these guarantees are expired or cancelled, or the loans are repaid. Revenue recognition Integrated solutions contracts Revenues generated from designing, building, and delivering customized integrated industrial automation systems are recognized over time as the customer simultaneously receives and consumes the benefits provided by the Company’s performance as it occurs or because the customers control the related asset as it is created or enhanced. The contracts for designing, building, and delivering customized integrated industrial automation systems are legally enforceable and binding agreements between the Company and customers. The duration of contracts depends on the contract size and ranges from six months to five years excluding the warranty period. The majority of the contract duration is longer than one year. Revenue generated from mechanical and electrical solution contracts for the construction or renovation of buildings, rail or infrastructure facilities is also recognized over time as the customer simultaneously receives and consumes the benefits provided by the Company’s performance as it occurs or because the customers control the related asset as it is created or enhanced. The contracts for mechanical and electrical solution are legally enforceable and binding agreements between the Company and customers. The duration of contracts depends on the contract size and the complexity of the construction work and ranges from six months to three years excluding the warranty period. The majority of the contract duration is longer than one year. In accordance with ASC Topic 606, Revenue from Contract with Customers cost-to-cost The Company reviews and updates the estimated total costs of the contracts at least annually. Revisions to contract revenue and estimated total costs of the contracts are made in the period in which the facts and circumstances that cause the revision become known and are accounted for as changes in estimates. Unapproved change orders are considered claims. Claims are recognized only when they have been awarded by customers. Excluding the impact of change orders, if the estimated total costs of integrated solutions contracts, which were revised during the years ended June 30, 2021, 2022 and 2023, had been used as a basis of recognition of integrated solutions contracts revenue since the contract commencement, net income for the years ended June 30, 2021, 2022 and 2023 would have been decreased by $13,528, $28,473, and $22,516, respectively; basic net income per share for years ended June 30, 2021, 2022 and 2023 would have been decreased by $0.22, $0.47, and $0.37 respectively; and diluted net income per share for the years ended June 30, 2021, 2022 and 2023, would have decreased by $0.22, $0.46, and $0.36, respectively. Revisions to the estimated total costs for the years ended June 30, 2021, 2022 and 2023 were made in the ordinary course of business. The Company combines a group of contracts as one project if they are closely related and are, in substance, parts of a single project with an overall profit margin. The Company segments a contract into several projects, when they are of different business substance, for example, with different business negotiation, solutions, implementation plans and margins. Revenue in excess of billings on the contracts is recorded as costs and estimated earnings in excess of billings. Billings in excess of revenues recognized on the contracts are recorded as deferred revenue until the above revenue recognition criteria are met. Recognition of accounts receivable and costs and estimated earnings in excess of billings are discussed below. The Company generally recognizes 100% of the contractual revenue when the customer acceptance has been obtained and no further major costs are estimated to be incurred, and normally this is also when the warranty period commences. Revenues are presented net of value-added tax collected on behalf of the government. Product sales The Company’s products mainly include hardware and software. Revenue generated from sales of products is recognized when control of the promised goods is transferred to the Company’s customers for Service rendered The Company mainly provides the following services: The Company provides maintenance service which is generally completed onsite at the customers’ premises. Revenue is recognized over time by using the cost-to-cost The Company also separately sells extended warranties to their integrated solution customers for a fixed period. Such arrangements are negotiated separately from the corresponding integrated solution system and are usually entered into upon the expiration of the warranty period attached to the integrated solutions contracts. During the extended warranty period, the Company is responsible for addressing issues related to the system. Part replacement is not covered in such services. The Company uses time elapsed to measure the progress toward complete satisfaction of the performance obligation and recognizes revenue ratably over the contractual term. Revenues are presented net of value-added tax collected on behalf of the government. Excluding the impact of change orders, if the estimated total costs of service contracts, which were revised during the year ended June 30, 2023, had been used as a basis of recognition of service contract revenue since the contract commencement, net income for the years ended June 30, 2021, 2022 and 2023 would have been decreased by $9,735, $7,450 and $5,771, respectively; basic net income per share for years ended June 30, 2021, 2022 and 2023 would have been decreased by $0.16, $0.12 and $0.09, respectively; and diluted net income per share for the years ended June 30, 2021, 2022 and 2023, would have decreased by $0.16, $0.12 and $0.09, respectively. Revisions to the estimated total costs for the years ended June 30, 2021, 2022 and 2023 were made in the ordinary course of business. Contract assets Contract assets include amounts that represent the rights to receive payment for goods or services that have been transferred to the customer, with the rights conditional upon something other than the passage of time. Accordingly, the Company includes the following in the contract assets: (i) unbilled amounts resulting from revenue recognized exceeding amounts billed to customers for integrated solutions contracts and maintenance service contracts using the cost-to-cost Performance of the integrated solutions contracts will often extend over long periods and the Company’s right to receive payments depends on its performance in accordance with the contractual terms. The Company has different billing practices for its PRC subsidiaries, overseas subsidiaries, and the VIE (Concord and Bond Groups). For the Company’s PRC subsidiaries, billings are issued based on milestones specified in the contracts negotiated with customers. In general, there are four milestones: 1) project commencement; 2) system manufacturing and delivery; 3) installation, trial-run For Concord and Bond Groups, billing claims rendered are subject to the further approval and certification of the customers or their designated consultants. Payments are made to Concord and Bond Groups based on the certified billings according to the payment terms mutually agreed between the customers and Concord and Bond Groups. Certain amounts are retained by the customer and payable to Concord and Bond Groups upon the issuance of the final completion certificate and completion of the defects liability period. The retained amounts are recorded as accounts receivable retention. Contract liabilities Contract liabilities include the amounts that reflect obligations to provide goods or services for which payment has been received. Contract liabilities are presented in the balance sheet as deferred revenue. The Company receives prepayments for integrated solutions contracts, product sales and service contracts for goods or services to be provided in the future. Prepayments received are recorded as deferred revenue, which is recognized as revenue based on the revenue recognition policies disclosed above for integrated solutions contracts, product sales and services rendered. Accounts receivable, costs and estimated earnings in excess of billings and accounts receivable retention The carrying value of the Company’s accounts receivable, costs and estimated earnings in excess of billings and accounts receivable retention, net of the allowance for credit losses, represents their estimated net realizable value. An allowance for doubtful accounts is recognized when it is probable that the Company will not collect the amount and is written off in the period when deemed uncollectible. The Company periodically reviews the status of contracts and decides how much of an allowance for doubtful accounts should be made based on factors surrounding the credit risk of customers and historical experience. The Company does not require collateral from its customers and does not charge interest for late payments by its customers. Inventories Inventories are composed of raw materials, work in progress, purchased and manufactured finished goods and low value consumables. Inventories are stated at the lower of cost and net realizable value. The Company uses the weighted average cost method as its inventory costing method. The Company assesses the lower of cost and net realizable value for non-saleable, non-saleable, work-in-process Warranties Warranties represent a major term under integrated solutions contracts and maintenance service contracts, which will last, in general, for one to three years or otherwise specified in the terms of the contract. The Company accrues warranty liabilities under a service contract as a percentage of revenue recognized, which is derived from its historical experience, in order to recognize the warranty cost for the related contract throughout the contract period. Property, plant and equipment, net Property, plant and equipment, other than construction in progress, are recorded at cost and are stated net of accumulated depreciation and impairment, if any. Depreciation expense is determined using the straight-line method over the estimated useful lives of the assets as follows: Buildings 30 - 50 years Machinery 5 – Software 3 – Vehicles 5 – Electronic and other equipment 3 – Construction in progress represents uncompleted construction work of certain facilities which, upon completion, management intends to hold for production purposes. In addition to costs under construction contracts, other costs directly related to the construction of such facilities, including duty and tariff, equipment installation and shipping costs, and borrowing costs are capitalized. Depreciation commences when the asset is placed in service. Maintenance and repairs are charged directly to expenses as incurred, whereas betterment and renewals are capitalized in their respective accounts. When an item is retired or otherwise disposed of, the cost and applicable accumulated depreciation are removed and the resulting gain or loss is recognized for the reporting period. Prepaid land leases, net Prepaid land lease payments, for the land use right of four parcels of land in the PRC, three parcels of leasehold land in Malaysia and one parcel of leasehold land in Singapore, are initially stated at cost and are subsequently amortized on a straight-line basis over the lease terms of 49 to 88 years. Intangible assets, net Intangible assets are carried at cost less accumulated amortization and any impairment. Intangible assets acquired in a business combination are recognized initially at fair value at the date of acquisition. Intangible assets are amortized using a straight-line method. The estimated useful lives for the intangible assets are as follows: Category Estimated useful life Patents and copyrights 5 – Residual values are considered nil. Goodwill Goodwill represents the excess of the purchase price over the estimated fair value of net tangible and identifiable intangible assets acquired. The Company assesses goodwill for impairment in accordance with ASC subtopic 350-20, Intangibles – Goodwill and Other 350-20”), 350-20. The Company’s goodwill outstanding at June 30, 2023 was related to the acquisitions of Beijing Hollysys Industrial Software Company Ltd (“Hollysys Industrial Software”), Shandong Lukang Pharmaceutical Engineering Design Co., Ltd (“Shandong Lukang”) and Hollysys Intelligent. The Company has the option to assess qualitative factors first to determine whether it is necessary to perform the quantitative test in accordance with ASC 350-20. more-likely-than-not Impairment of long-lived assets other than goodwill The Company evaluates its long-lived assets or asset groups including acquired intangibles with finite lives for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of a group of long-lived assets may not be fully recoverable. When these events occur, the Company evaluates the impairment by comparing the carrying amount of the assets to future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company recognizes an impairment loss based on the excess of the carrying amount of the asset group over its fair value, generally based upon discounted cash flows or quoted market prices. Shipping and handling costs All shipping and handling fees charged to customers are included in net revenue. Shipping and handling costs incurred are included in cost of integrated solutions contracts and/or costs of products sold as appropriate. Income taxes The Company follows the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not The Company complies with ASC 740, Income Taxes , Research and development costs Research and development costs consist primarily of salaries, bonuses and benefits for research and development personnel. Research and development costs also include travel expenses of research and development personnel as well as depreciation of hardware equipment and software tools and other materials used in research and development activities. Research and development costs are expensed as incurred. Software development costs are also expensed as incurred as the costs qualifying for capitalization have been insignificant for the periods presented. VAT refunds and government subsidies Pursuant to the laws and regulations of the PRC, the Company remits 13% of its sales as value added tax (“VAT”), and then is entitled to a refund of the portion of the Company’s actual VAT burden that exceeds the 3% levied on all sales containing internally developed software products. VAT refunds are recognized in the consolidated statements of comprehensive income when cash refunds or the necessary approval from the tax authority has been received. Certain subsidiaries of the Company located in the PRC receive government subsidies from local PRC government agencies. Government grants, which mainly represent amounts received from central and local governments in connection with the Company’s investments in local business districts and contributions to technology development . Government subsidies are recognized in the consolidated statements of comprehensive income when the necessary conditions have been met. Government grants received for the years ended June 30, 2021, 2022 and 2023 amounted to $ , $ and $ , respectively, of which $ , $ and $ were included as a credit to operating expenses in the consolidated statements of comprehensive income for the years ended June 30, 2021, 2022 and 2023, respectively. Appropriations to statutory reserve Under the corporate law and relevant regulations in the PRC, all of the subsidiaries of the Company located in the PRC are required to appropriate a portion of their retained earnings to statutory reserve. All subsidiaries located in the PRC are required to appropriate 10% of their annual after-tax after-tax Segment reporting In accordance with ASC 280, Segment Reporting Comprehensive income Comprehensive income is defined as the changes in equity of the Company during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. In accordance with ASC 220, Comprehensive Income Investments in equity investees and equity securities The Company accounts for its equity investments under the equity method when the Company has rights and ability to exercise significant influence over the investees. Significant influence is generally considered to exist when the Company has an ownership interest in the investee between 20% and 50%. Other factors, such as representation on the investee’s board of directors and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. Under the equity method, original investments are recorded at cost and adjusted by the Company’s share of undistributed earnings or losses of these entities, by the amortization of any basis difference between the amount of the Company’s investment and its share of the net assets of the investee, and by dividend distributions or subsequent investments. When dividends from an investee exceed the carrying amount of an equity method investment, the excess distribution is recognized as a gain and reported as share of net income of equity investees, net in the consolidated statements of comprehensive income when the Company is not liable for the obligations of the investee nor otherwise committed to provide financial support. In such cases, subsequent equity method earnings are not recorded until subsequent earnings equal the gain recorded. Unrealized inter-company profits and losses related to equity investees are eliminated. An impairment charge, being the difference between the carrying amount and the fair value of the equity investee, is recognized in the consolidated statements of comprehensive income when the decline in value is considered other than temporary. The Company will discontinue applying the equity method if an investment (plus additional financial support provided to the investee, if any) has been reduced to zero. When the Company has other investments in its equity-method investee and is not required to advance additional funds to that investee, the Company would continue to report its share of equity method losses in its consolidated statement of comprehensive income after its equity-method investment has been reduced to zero, to the extent of and as an adjustment to the adjusted basis of its other investments in the investee. Such losses are first applied to those investments of a lower liquidation preference before being further applied to the investments of a higher liquidation preference. The Company uses the cumulative earnings approach to classify distributions received from equity investees. Under this approach, distributions received from equity investees are presumed to be a return on the investment and are classified as cash inflows from operating activities unless the distributions received exceed cumulative equity in earnings recognized by the investor. In such case, the excess is considered a return of investment and is classified as cash inflows from investing activities. For equity investments other than those accounted for under the equity method or those that result in consolidation of the investee, the Company measures equity investments at fair value and recognizes any changes in fair value in net income. However, for equity investments that do not have readily determinable fair values and do not qualify for the existing practical expedient in ASC 820, Fair Value Measurements and Disclosures Capitalization of interest Interest incurred on borrowings for the Company’s construction of facilities and assembly line projects during the active construction period is capitalized. The capitalization of interest ceases once a project is substantially complete. The amount to be capitalized is determined by applying the weighted-average interest rate of the Company’s outstanding borrowings to the average amount of accumulated capital expenditures for assets under construction during the year and is added to the cost of the underlying assets and amortized over their respective useful lives. Income per share Income per share is computed in accordance with ASC 260, Earnings Per Share Share-based compensation The Company accounts for share-based compensation in accordance with ASC 718, Compensation-Stock Compensation For share-based awards that are subject to performance-based vesting conditions in addition to time-based vesting, the Company recognizes the estimated grant-date fair value of performance-based awards, net of estimated forfeitures, as share-based compensation expense over the vesting period based upon the Company’s determination of whether it is probable that the performance-based criteria will be achieved. At each reporting period, the Company reassesses the probability of achieving the performance-based criteria. Determining whether the performance-based criteria will be achieved involves judgment, and the estimate of share-based compensation expense may be revised periodically based on changes in the probability of achieving the performance-based criteria. Revisions are reflected in the period in which the estimate is changed. If the performance-based criteria are not met, no share-based compensation expense is recognized, and, to the extent share-based compensation expense was previously recognized, such share-based compensation expense is reversed. Fair value measurements The Company complies with ASC 820, Fair Value Measurement 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. Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Leases Leases have been classified as either capital or operating leases. Leases that transfer substantially all the benefits and risks incidental to the ownership of assets are accounted for as if there was an acquisition of an asset and incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases wherein rental payments are expensed as incurred. Accounting for lessor Minimum contractual rental from leases are recognized on a straight-line basis over the non-cancelable term of the lease. With respect to a particular lease, actual amounts billed in accordance with the lease during any given period may be higher or lower than the amount of rental revenue recognized for the period. Straight-line rental revenue commences when the customer assumes control of the leased premises. Accrued straight-line rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements. Contingent rental revenue is accrued when the contingency is removed. Operating lease as lessee The Company determines if an arrangement is a lease at inception. The Company classifies a lease as a finance lease or an operating lease at lease commencement date as appropriate. The Company has operating leases for certain offices and warehouses and does not have any finance leases for the fiscal years ended June 30, 2022 and 2023. For operating leases, the Company records a lease liability and corresponding right-of-use (ROU) asset at lease commencement. Lease terms are based on the non-cancellable term of the lease and may contain options to extend the lease when it is reasonably certain that the Company will exercise the option. Lease liabilities represent the present value of the lease payments not yet paid, discounted using the discount rate for the lease at lease commencement. The Company estimates its incremental borrowing rate for its leases at the commencement date to determine the present value of future lease payments when the implicit rate is not readily determinable in the lease. In estimating its incremental borrowing rate, the Company considers its credit rating and publicly available data of borrowing rates for loans of similar amount, currency and term as the lease. Operating leases are presented as operating lease ROU assets and operating lease liabilities on the consolidated balance sheet. Prepaid land leases are separately classified on the consolidated balance sheets. Lease liabilities that become due within one year of the balance sheet date are classified as current liabilities. Operating lease ROU asset represents the right to use an underlying asset for the lease term and are recognized in an amount equal to the lease liability adjusted for any lease payments made prior to commencement date, less any lease incentives received and any initial direct costs incurred by the Company. After lease commencement, operating lease liabilities are measured at the present value of the remaining lease payments using the discount rate determined at lease commencement. Operating lease ROU assets are measured at the amount of the lease liabilities and further adjusted for prepaid or accrued lease payments, the remaining balance of any lease incentives received, unamortized initial direct costs and impairment of the ROU assets, if any. Operating lease expense is recognized as a single cost on a straight-line basis over the lease term. Operating lease as lessor The Company classifies a lease as an operating, sales-type or direct financing lease at lease commencement date as appropriate. For operating leases, the Company recognized rental income over the non-cancellable lease term on a straight-line basis. The Company does not have any sales-type or direct financing leases for the fiscal years ended June 30, 2021, 2022 and 2023. Concentration of risks Concentration of credit risk Assets that potentially subject the Company to a significant concentration of credit risk primarily consist of cash and cash equivalents, short-term investments, restricted cash, accounts receivable, costs and estimated earnings in excess of billings, accounts receivable retention, other receivables and amounts due from related parties. The maximum exposure of such assets to credit risk is their carrying amounts as of the balance sheet date. As of June 30, 2023, substantially all of the Company’s cash and cash equivalents and short-term investments were managed by financial institutions located in the PRC, Singapore and Malaysia, which management believes are of high credit quality. Accounts receivable, other receivables and amounts due from related parties are typically unsecured and the risk with respect to accounts receivable is mitigated by credit evaluations the Company performs on its customers and its ongoing monitoring process of outstanding balances. The Company has no customer that individually comprised 10% or more of the outstanding balanc |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 3 - INVENTORIES Components of inventories are as follows: June 30, 2022 2023 Raw materials $ 53,304 $ 56,354 Work in progress 16,026 26,545 Finished goods 21,913 28,735 $ 91,243 $ 111,634 |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 4 - ACCOUNTS RECEIVABLE June 30, 2022 2023 Notes receivable $ 68,953 $ 38,046 Accounts receivable 326,413 344,785 Allowance for credit losses (77,603 ) (73,009 ) $ 317,763 $ 309,822 The movements in allowance for credit losses are as follows: June 30, 2021 2022 2023 Balance at the beginning of year $ 41,618 $ 66,839 $ 77,603 Adoption of ASU 2016-13 16,284 — — Additions 7,749 15,972 5,191 Written off (3,965 ) (3,852 ) (4,587 ) Translation adjustment 5,153 (1,356 ) (5,198 ) Balance at the end of year $ 66,839 $ 77,603 $ 73,009 |
COSTS AND ESTIMATED EARNINGS IN
COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS | 12 Months Ended |
Jun. 30, 2023 | |
COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS | |
COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS | NOTE 5 - COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS June 30, 2022 2023 Contract costs incurred plus estimated earnings $ 1,072,872 $ 1,196,127 Less: Progress billings (831,817 ) (928,427 ) Cost and estimated earnings in excess of billings 241,055 267,700 Less: Allowance for credit losses (12,178 ) (14,438 ) $ 228,877 $ 253,262 The movements in allowance for credit losses are as follows: June 30, 2021 2022 2023 Balance at the beginning of year $ 6,150 $ 11,835 $ 12,178 Adoption of ASU 2016-13 3,111 — — Additions (reversals) 1,758 209 3,043 Translation adjustments 816 134 (783 ) Balance at the end of year $ 11,835 $ 12,178 $ 14,438 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Jun. 30, 2023 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 6 - REVENUE FROM CONTRACTS WITH CUSTOMERS Remaining Unsatisfied Performance Obligations (“RUPO”) As of June 30, 2023, the Company’s backlog relating to unsatisfied (or partially unsatisfied) performance obligations in contracts with its customers was $909.5 million. The Company expects to recognize the majority of its remaining performance obligations as revenue within the next three years. Disaggregation of revenues The Company assesses revenues based upon the nature or type of goods or services it provides and the geographic location of the related businesses. The geographic locations are consistent with the reportable segments. For more information on the reportable segments, see Note 24, “Segment Reporting”. The following table present disaggregated revenue information: Year ended June 30, 2023 PRC Non-PRC Total Integrated solutions contracts revenue $ 547,557 84,543 632,100 Product sales 44,408 3,016 47,424 Maintenance service revenue 94,095 — 94,095 Extended warranty service revenue 3,754 — 3,754 Total $ 689,814 87,559 777,373 Contract assets and contract liabilities These contract assets and liabilities are calculated on a contract-by-contract 3 Contract assets and contract liabilities are summarized below: June 30, 2022 June 30, 2023 Contract assets, current $ 235,712 261,752 Contract assets, non-current 9,582 8,333 Contract liabilities 208,636 182,995 The increase in contract assets was primarily due to timing of revenue recognized relative to its billings. The decrease in contract liabilities was primarily due to the timing of contractual milestones. No other factors materially impacted the change in the contract liabilities balance. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Jun. 30, 2023 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 7 - PROPERTY, PLANT AND EQUIPMENT A summary of property, plant and equipment is as follows: June 30, 2022 2023 Buildings $ 70,944 $ 66,681 Machinery 15,619 14,487 Software 20,293 19,943 Vehicles 4,717 4,822 Electronic and other equipment 45,512 41,426 Construction in progress 27,213 69,745 $ 184,298 $ 217,104 Less: Accumulated depreciation and impairment (86,049 ) (82,478 ) $ 98,249 $ 134,626 Buildings and construction in progress PRC, Buildings , and construction in progress Construction in progress consists of capital expenditures and capitalized interest charges related to the construction of facilities and assembly line projects and the expenditures related to the Company’s information system constructions. The depreciation expenses for the years ended June 30, 2021, 2022 and 2023 were $9,959, $10,263 and $8,612, respectively. Assets leased to others under operating leases The Company has entered into operating lease contracts related to certain buildings owned with carrying amounts as shown below: June 30, 2022 2023 Buildings leased to others – $ 22,664 $ 20,898 Less: Accumulated depreciation (8,044 ) (7,886 ) Buildings leased to others – $ 14,620 $ 13,012 |
PREPAID LAND LEASES
PREPAID LAND LEASES | 12 Months Ended |
Jun. 30, 2023 | |
PREPAID LAND LEASES | |
PREPAID LAND LEASES | NOTE 8 A summary of prepaid land leases is as follows: June 30, 2022 2023 Prepaid land leases $ 16,146 $ 15,222 Less: Accumulated amortization (3,699 ) (3,719 ) $ 12,447 $ 11,503 Prepaid land leases with a total carrying value of $3,166 was pledged to secure lines of credits from a bank in PRC as of June 30, 2023 (note 13). Prepaid land leases with a total carrying value of $3,166 was pledged to secure long-term bank loans as of June 30, 2023 (note 14). The amortization for the years ended June 30, 2021, 2022 and 2023 was $454, $382 and $331, respectively. The annual amortization of prepaid land leases for each of the five succeeding years is as follows: Year ending June 30, 2024 $ 331 2025 331 2026 331 2027 331 2028 331 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Jun. 30, 2023 | |
INTANGIBLE ASSETS, NET | |
INTANGIBLE ASSETS, NET | NOTE 9 June 30, 2022 2023 Gross Accumulated Net Gross Accumulated Net Patents and copyrights $ 14,204 (3,462 ) 10,742 $ 13,097 (4,614 ) 8,483 The amortization expenses for the years ended June 30, 2021, 2022 and 2023 were $316, $1,356 and $1,342, respectively. The annual amortization expense relating to the existing intangible assets for the five succeeding years is as follow: Year ending June 30, 2024 $ 1,329 2025 1,166 2026 1,040 2027 1,040 2028 1,040 |
GOODWILL
GOODWILL | 12 Months Ended |
Jun. 30, 2023 | |
GOODWILL | |
GOODWILL | NOTE 10 - GOODWILL The changes in the carrying amount of goodwill are as follows: Balance as of July 1, 2021 $ 1,598 Goodwill upon acquisition 19,697 Translation adjustment (756 ) Balance as of June 30, 2022 $ 20,539 Translation adjustment (1,600 ) Balance as of June 30, 2023 $ 18,939 Hollysys Intelligent, as a component of the Industrial Automation operating segment, is considered to be a reporting unit for goodwill impairment purposes as Hollysys Intelligent constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of Hollysys Intelligent. The amount of goodwill allocated to Hollysys Intelligent was $19,697 upon acquisition, before any impairment charges (note 25). The Company engaged an independent third-party appraiser to assist in the goodwill impairment test. For the year ended June 30, 2022 and 2023, the Company’s impairment test indicated that the carrying amount of Hollysys Intelligent does not exceed its fair value and no impairment of goodwill was noted. Estimating the fair value of Hollysys Intelligent requires the Company to make assumptions and estimates regarding its future plans, market share, industry and economic conditions. In applying the discounted cash flow approach, key assumptions include the amount and timing of future expected cash flows, terminal value growth rates and appropriate discount rates. The Company estimates future expected cash flows for each geographical area in which it operates and calculates the net present value of those estimated cash flows using risk adjusted discount rates 11.45%. If the discount rates adopted in 2023 increased or decreased by 1%, the fair value of Hollysys Intelligent would decrease or increase by $2,188 and $2,615, respectively. The Company also performed qualitative assessments with respect to Hollysys Industrial Software and Shandong Lukang, to determine if it is more likely than not that the fair values of Hollysys Industrial Software and Shandong Lukang are less than their carrying amounts. By identifying the most relevant drivers of fair value and significant events, and weighing the identified factors, the Company concluded that it was not more-likely-than-not |
EQUITY INVESTMENTS
EQUITY INVESTMENTS | 12 Months Ended |
Jun. 30, 2023 | |
EQUITY INVESTMENTS | |
EQUITY INVESTMENTS | NOTE 11 - EQUITY INVESTMENTS Investments in equity investees The following long-term investments were accounted for under the equity method as of June 30, 2022 and 2023 as indicated: June 30, 2022 Interest Long-term Share of Disposal Advance Total Equity method Beijing Hollycon Medicine & Technology Co., Ltd. 30.00 % $ 8,609 5,544 — — 14,153 Beijing Hollysys Electric Motor Co., Ltd. 40.00 % 791 6,893 — — 7,684 Suqian Runhe Emerging Industry Investment Center (limited partnership) 29.97 % 9,410 (168 ) — — 9,242 China Techenergy Co., Ltd. 40.00 % — 13,751 — — 13,751 Hollicube Co., Ltd. 40.00 % 4,215 (4,215 ) — — — Hunan LingXiang Maglev Technology Co., Ltd. 17.67 % 1,494 (136 ) (1,358 ) — — Beijing AIRmaker Technology Co., Ltd. 20.00 % 149 (18 ) — — 131 Southcon Development Sdn Bhd. 30.00 % 211 (111 ) — — 100 Beijing Hollysys Machine Automation Co., Ltd. 30.00 % 448 (448 ) — — — Beijing Jing Yi Intelligent Technologies Innovation Center Co., Ltd. 46.00 % — — — — — Beijing Hollysys Digital Technology Co., Ltd. 25.00 % 1,437 (1,036 ) — — 401 Shandong MassDatas Development Co., Ltd. 20.00 % 1,195 (76 ) — — 1,119 27,959 19,980 (1,358 ) — 46,581 June 30, 2023 Interest Long-term Share of Disposal Advance Total Equity method Beijing Hollycon Medicine & Technology Co., Ltd. 30.00 % $ 7,938 3,185 — — 11,123 Beijing Hollysys Electric Motor Co., Ltd. 40.00 % 729 6,726 — — 7,455 Suqian Runhe Emerging Industry Investment Center (limited partnership) 29.97 % 8,677 (163 ) — — 8,514 China Techenergy Co., Ltd. 40.00 % — 17,362 — — 17,362 Hollicube Co., Ltd. 38.10 % 3,887 (3,887 ) — — — Beijing AIRmaker Technology Co., Ltd. 20.00 % 138 (23 ) — — 115 Southcon Development Sdn Bhd. 30.00 % 217 (122 ) — — 95 Beijing Hollysys Machine Automation Co., Ltd. 30.00 % 413 (413 ) — — — Beijing Jing Yi Intelligent Technologies Innovation Center Co., Ltd. 46.00 % — — — — — Beijing Hollysys Digital Technology Co., Ltd. 25.00 % 1,325 (833 ) — — 492 Shandong MassDatas Development Co., Ltd. 20.00 % 2,755 (308 ) — — 2,447 26,079 21,524 — — 47,603 Disposal of Hunan LingXiang Maglev Technology Co., Ltd. (“Hunan LingXiang”) In September 2021, the Company entered into an agreement to dispose all of its 17.67% interest in Hunan LingXiang for cash considerations of $9,497. The disposal transaction was completed in September 2021, and a disposal gain of $7,995 was recognized under the capital Investments in equity securities without readily determinable fair values Investments in equity securities without readily determinable fair value were accounted for as cost method investments prior to adopting ASC 321. As of June 30, 2022 and 2023, the carrying amounts of investments in equity securities without readily determinable fair values for which the measurement alternative was elected were $1,693 and $1,561, respectively, after deductions of $1,195 and $413 of accumulated impairment. There were no unrealized gains (upward adjustments), unrealized losses (downward adjustments and impairment) or net unrealized gains or losses recognized for such equity securities during the years ended June 30, 2022 and 2023. Net realized gains or loss on equity securities sold were nil and $845 for the years ended June 30, 2022 and 2023, respectively. |
WARRANTY LIABILITIES
WARRANTY LIABILITIES | 12 Months Ended |
Jun. 30, 2023 | |
WARRANTY LIABILITIES | |
WARRANTY LIABILITIES | NOTE 12 - WARRANTY LIABILITIES June 30, 2022 2023 Beginning balance $ 9,551 $ 5,002 Consolidation of subsidiary 145 — Expense accrued 2,595 5,446 Expense incurred (7,064 ) (4,264 ) Translation adjustment (225 ) (378 ) $ 5,002 $ 5,806 Less: Current portion of warranty liabilities (3,280 ) (3,238 ) Long-term $ 1,722 $ 2,568 |
SHORT-TERM BANK LOANS
SHORT-TERM BANK LOANS | 12 Months Ended |
Jun. 30, 2023 | |
SHORT-TERM BANK LOANS | |
SHORT-TERM BANK LOANS | NOTE 13 - SHORT-TERM BANK LOANS On June 30, 2022, the Company’s short-term bank borrowings consisted of revolving bank loans of $66 from a bank, which were subject to an annual interest rate of 1.2%. For the year ended June 30, 2023, the Company had no outstanding short-term bank borrowings. For the years ended June 30, 2021, 2022, and 2023, interest expenses on short-term bank loans amounted to $nil, $nil and $nil, respectively. As of June 30, 2022, the Company had available lines of credit from various banks in the PRC, Singapore and Malaysia amounting to $441,335, of which $111,147 was utilized and $330,188 was available for use. These lines of credit were secured by the pledge of restricted cash and buildings with carrying values of $36,102 and $2,687, respectively. As of June 30, 2023, the Company had available lines of credit from various banks in the PRC, Singapore and Malaysia amounting to $709,735, of which $119,462 was utilized and $590,273 was available for use. These lines of credit were secured by the pledge of restricted cash , and prepaid land lease , $68,341 |
LONG-TERM LOANS
LONG-TERM LOANS | 12 Months Ended |
Jun. 30, 2023 | |
LONG-TERM LOANS | |
LONG-TERM LOANS | NOTE 14 - LONG-TERM LOANS June 30, 2022 2023 MYR denominated loans (i) 596 741 SGD denominated loans (ii) 113 44 USD denominated loan (iii) 14,935 15,000 RMB denominated loan (iv) — 16,221 $ 15,644 $ 32,006 Less: Current portion (15,210 ) (15,231 ) $ 434 $ 16,775 i. The MYR denominated loans are repayable in 3 to 75 installments with the last installment due in April 2039. For the years ended June 30, 2022 and 2023, the effective interest rates ranged from 2.08% to 3.27% per annum and 2.08% to 4.52% per annum, respectively. For the year ended June 30, 2023, the weighted average interest rate was 2.71%. The borrowings are secured by the mortgages of buildings and vehicles in Malaysia, with an aggregate carrying value of $883 and $842 as of June 30, 2022 and 2023, respectively. 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, 2022 and 2023, the effective interest rates ranged from 2.44% to 2.78% per annum and 2.44% to 2.78% per annum, respectively. For the year ended June 30, 2023, the weighted average interest rate was 2.65%. The borrowing is secured by vehicles with a total carrying value of $173 and $80 as of June 30, 2022 and 2023, respectively. iii. The USD denominated loan was drawn on April 24, 2020 and wa iv. The RMB denominated loan is a fixed asset loan contract with 10-year installment repayment with the last installment due in December 2032. The loan interest rate is the national bank rate Scheduled principal payment Year ending June 30, 2024 $ 15,231 2025 1,178 2026 2,170 2027 2,202 2028 onwards 11,225 $ 32,006 For the years ended June 30, 2021, 2022, and 2023, interest expenses of long-term loans incurred amounted to $553, $731 and $878, respectively, and nil nil 251 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 15 - FAIR VALUE MEASUREMENTS Financial instruments include cash and cash equivalents, short-term investments, accounts receivable, accounts receivable retention, other receivables, amounts due to or from related parties, accounts payable, short-term bank loans and long-term bank loans. The carrying values of these financial instruments and other than long-term bank loans, approximate their fair values due to their short-term maturities. The carrying value of the Company’s long-term bank loans approximates their fair value as the long-term bank loans are subject to floating interest rates. The carrying value of the Company’s long-term bank loans which are subject to fixed interest rates approximates their fair value as the market interest rate has not significantly changed from the borrowing date to June 30, 2023. These assets and liabilities, excluding cash (which fall into level 1 of the fair value hierarchy), fall into level 2 of the fair value hierarchy. There were no assets and liabilities measured at fair value on a recurring basis as of June 30, 2022 and 2023. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Jun. 30, 2023 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | NOTE 16 - STOCKHOLDERS’ EQUITY In August 2010, the Board of Directors adopted the 2010 Rights Plan. The 2010 Rights Plan provides for a dividend distribution of one preferred share purchase (the “Right”), for each outstanding ordinary share. Each Right entitles the shareholder to buy one share of the Class A Preferred Stock at an exercise price of $160. The Right will become exercisable if a person or group announces an acquisition of 20% or more of the outstanding ordinary shares of the Company, or announces commencement of a tender offer for 20% or more of the ordinary shares. In that event, the Right permits shareholders, other than the acquiring person, to purchase the Company’s ordinary shares having a market value of twice the exercise price of the Right, in lieu of the Class A Preferred Stock. In addition, in the event of certain business combinations, the Right permits the purchase of the ordinary shares of an acquiring person at a 50% discount. Unless terminated earlier by the Board of Directors, the 2010 Rights Plan was schedule d In September 2020, the Company amended and restated the Rights Plan to, among other things, extend its term until September 27, 2030. Pursuant to the amended and restated Rights Plan, subject to limited exceptions, upon (i) a person or group obtaining ownership of 15% or more of the aggregate total of the ordinary shares of the Company then issued and outstanding or (ii) the commencement or announcement of an intention to make a tender offer or exchange offer, the consummation of which would result in the beneficial ownership by a person or group of 15% or more of the aggregate total of the ordinary shares of the Company then issued and outstanding, in each case, without the approval of the Board of Directors, each Right will entitle the holders, other than the acquiring person or group, to buy, at a purchase price of $160, one share of the Class A Preferred Shares of the Company, or, in lieu of a Class A Preferred Share, ordinary shares having a market value at that time of twice the Right’s exercise price. The Board of Directors is entitled to redeem the Rights at $0.001 per Right at any time before the Rights are exercisable. On October 5, 2020, the Company declared a regular annual cash dividend of $0.20 per share to the holders of the Company’s ordinary shares. The record date was October 22, 2020, and the dividend was paid on November 20, 2020. On March 10, 2022, the Company declared a regular annual cash dividend of $0.32 per share to the holders of the Company’s ordinary shares. The record date was April 4, 2022, and the dividend was paid on April 25, 2022. |
SHARE-BASED COMPENSATION EXPENS
SHARE-BASED COMPENSATION EXPENSES | 12 Months Ended |
Jun. 30, 2023 | |
SHARE-BASED COMPENSATION EXPENSES | |
SHARE-BASED COMPENSATION EXPENSES | NOTE 17 - SHARE-BASED COMPENSATION EXPENSES On May 14, 2015, the Board of Directors approved the 2015 Equity Incentive Plan (the “2015 Equity Plan”). The 2015 Equity Plan provided for 5,000,000 ordinary shares, and it will terminate ten years following the date that it was adopted by the Board of Directors. The purpose of the 2015 Equity Plan is to promote the long-term growth and profitability of the Company and its affiliates by stimulating the efforts of employees, directors and consultants of the Company and its affiliates who are selected to be participants, aligning the long-term interests of participants with those of shareholders, heightening the desire of participants to continue in working toward and contributing to the success of the Company, attracting and retaining the best available personnel for positions of substantial responsibility, and generally providing additional incentive for them to promote the success of the Company’s business through the grant of awards of or pertaining to the Company’s ordinary shares. The 2015 Equity Plan permits the grant of incentive share options, non-statutory share options, restricted shares, restricted share units, share appreciation rights, performance units and performance shares as the Company may determine. Share options On November 16, 2020 and March 17, 2021, certain directors and employees of the Company were granted share-based compensation awards totaling 90,000 and 465,725, respectively, share options to purchase ordinary shares. The exercise price of these options is $11.85 per share. A summary of the share option activity for the years ended June 30, 2022 and 2023 is as shown below: Share Options Number of Weighted Weighted average Aggregate Outstanding, vested and exercisable at June 30, 2021 568,500 11.85 9.66 1,734 Forfeited (12,250 ) — — — Outstanding, vested and exercisable at June 30, 2022 556,250 11.85 8.66 1,641 Forfeited (525 ) — — — Outstanding, vested and exercisable at June 30, 2023 555,725 11.85 7.66 3,190 The fair value of each option is estimated on the date of grant using the Binomial model by applying the assumptions below: Options Granted on November 16, 2020 Options Granted on March 17, 2021 Risk-free interest rate(i) 0.91 % 1.62 % Expected dividend yield(ii) 2.21 % 1.83 % Expected life (years)(iii) 10 Years 9.66 Years Expected volatility(iv) 46.98 % 47.35 % (i) Risk-free interest rate is based on the yields of United States Treasury securities with maturities similar to the expected life of the share options in effect at the time of grant. (ii) Expected dividend yield is assumed to be a $0.15 dividend payout. (iii) Expected life of share options is based on management’s estimate on timing of exercise of share options. (iv) Expected volatility is assumed based on the historical volatility of the Company and the Company’s comparable companies in the period equal to the expected life of each grant. The Company recorded share-based compensation expense relating to options granted in fiscal , $ 1,502 included in general and administrative expenses for the years ended June 30, 2021, 2022 and 2023, respectively. For the years ended June 30, 2021, 2022, and 2023, the unrecognized compensation expense of $ , $ 566 , 0.93 Restricted shares On September 19, 2019, the Company granted restricted ordinary shares to certain directors under the 2015 Plan. These restricted shares vest quarterly over a three-year period starting from the directors’ respective service inception date. Fair value of the restricted shares was determined with reference to the market closing price at grant date. On November 16, 2020, the Company granted 318,000 restricted ordinary shares to certain directors under the 2015 Plan. These restricted shares vest quarterly over a three-year period commencing from November 2020. Fair value of the restricted shares was determined with reference to the market closing price at grant date. On March 17, 2021, the Company granted 1,116,500 restricted ordinary shares to certain officers and certain employees under the 2015 Plan. These restricted shares vest quarterly over a three-year period commencing from March 2021. Fair value of the restricted shares was determined with reference to the market closing price at grant date. A summary of the restricted share activity for the year ended June 30, 2022 and 2023 is as follows: Number of restricted shares Weighted average grant-date fair value Un-vested 1,320,337 11.85 Forfeited (28,586 ) 11.85 Vested (588,710 ) 11.85 Un-vested 703,041 11.85 Forfeited (1,222 ) 11.85 Vested (473,487 ) 11.85 Un-vested 228,332 11.85 The aggregate grant-date fair value of restricted shares vested during the years ended June 30, 2021, 2022 and 2023 was $ were recorded in general and administrative expenses as restricted share compensation expenses, for the years ended June 30, 2021, 2022 and 2023, respectively. For the years ended June 30, 2022, and 2023, the aggregated unrecognized compensation expense of $ |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Jun. 30, 2023 | |
EMPLOYEE BENEFITS | |
EMPLOYEE BENEFITS | NOTE 18 - EMPLOYEE BENEFITS The Company contributes to a state pension scheme run by the Chinese government in respect of its employees in China, a central provision fund run by the Singapore government in respect of its employees in Singapore, and an employment provident fund in respect of its employees in Malaysia. The expenses related to these plans were $24,141, $33,550 and $35,869 for the years ended June 30, 2021, 2022 and 2023, respectively. These schemes were accounted for as defined contribution plans. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | NOTE 19 - INCOME TAX BVI Hollysys and its subsidiaries incorporated in the BVI are not subject to income tax under the relevant regulations. Singapore The Company’s wholly owned subsidiaries incorporated in Singapore are subject to Singapore corporate tax at a rate of 17% on the assessable profits arising from Singapore. Malaysia The Company’s wholly owned subsidiaries incorporated in Malaysia are subject to Malaysia corporate income tax at a rate of 24% on the assessable profits arising from Malaysia. Dubai The branch of the Company’s wholly owned subsidiary is a tax exempt company incorporated in Dubai, and no tax provision has been made for each of the years ended June 30, 202 1 2 3 Hong Kong The Company’s wholly owned subsidiaries incorporated in Hong Kong are subject to Hong Kong profits tax at a rate of 16.5% on the assessable profits arising from Hong Kong for the year ended June 30, 202 3 1 2 3 Macau The Company’s wholly owned subsidiary incorporated in Macau is subject to the Macau corporate income tax. According to the Macau Complementary Tax Law, complementary tax is imposed on a progressive rate scale ranging from to 9% for taxable profits below or equal to MOP 300,000 and 12% for taxable profits over MOP 300,000. Taxable profits below MOP 32,000 are exempt from tax. No provision for Macau profits tax has been made in the consolidated statements of comprehensive income for each of the years ended June 30, 2021, 2022 and 2023. India The Company’s wholly owned subsidiary incorporated in India is subject to India corporate tax at a rate of 30% on its worldwide income. No provision for India profits tax has been made in the consolidated statements of comprehensive income as there were no taxable profits noted for each of the years ended June 30, 202 1 2 3 Qatar CECL is subject to the Qatar Corporate income tax at a rate of 10% on the assessable profit arising from Qatar. Indonesia The Company’s wholly owned subsidiary incorporated in Indonesia is subject to the Indonesia Corporate income tax at a rate of 22% on the assessable profit arising from Indonesia. No provision for Indonesia tax has been made in the consolidated statements of comprehensive income as there were no assessable profits noted for the years ended June 30, 202 1 2 3 PRC The Company’s subsidiaries incorporated in the PRC are subject to PRC enterprise income tax (“EIT”) on their respective taxable incomes as adjusted in accordance with relevant PRC income tax laws. The PRC statutory EIT rate is 25 Beijing Hollysys Co., Ltd (“Beijing Hollysys”) Beijing Hollysys was certified as a High and New Technology Enterprise (“HNTE”) which provides a preferential EIT rate of 15% for three calendar years from July July 2023 Further, Beijing Hollysys was qualified for the Key Software Enterprise (“KSE”) status in calendar year 202 2 2 for the future inspection by tax authorities as they hold the right to inspect the KSE status. Hangzhou Hollysys Automation Co., Ltd (“Hangzhou Hollysys”) Hangzhou Hollysys was certified as a HNTE which provides a preferential EIT rate of 15% for three calendar years from December December 2023 Hollysys Industrial Software Hollysys Industrial Software was certified as a HNTE which provides a preferential EIT rate of 15% for three calendar years from October 2022 October 2025 Further, Hollysys Industrial Software was qualified for KSE status in calendar year 2022 and was entitled to the preferential tax rate of 10% for calendar year 2022. An entity can use the preferential rate of KSE after its self-assessment, of which, the filing documents for KSE status shall be well prepared and filed for the future inspection by HollySys Control Technology Co., Ltd (“HollySys Control”) HollySys Control was qualified for software enterprises encouraged by the state. The preferential period is calculated from the profit-making year, and the enterprise income tax is exempted from the first to second years. From the third to fifth years, the enterprise income tax is reduced by half at the statutory tax rate of 25%. Beijing Hollysys Intelligent Technologies Co., Ltd., (“Hollysys Intelligent”) Hollysys Intelligent was certified as a HNTE which provides a preferential EIT rate of 15% for three calendar years from October 2021 to October 2024. The Company’s income before income taxes consists of: Year ended June 30, 2021 2022 2023 PRC $ 137,520 $ 116,210 $ 126,191 Non-PRC (27,628 ) (16,583 ) (7,729 ) $ 109,892 $ 99,627 $ 118,462 Income tax expense, most of which is incurred in the PRC, consists of: Year ended June 30, 2021 2022 2023 Current income tax expense PRC 25,634 11,839 19,269 Non-PRC 758 616 123 $ 26,392 $ 12,455 $ 19,392 Deferred income tax expense (benefit) PRC (7,971 ) 7,150 (7,560 ) Non-PRC 2,133 (2,971 ) (442 ) $ (5,838 ) 4,179 (8,002 ) $ 20,554 $ 16,634 $ 11,390 Reconciliation of the income tax expenses as computed by applying the PRC statutory tax rate of 25% to income before income taxes and the actual income tax expenses is as follows: Year ended June 30, 2021 2022 2023 Income before income taxes $ 109,892 $ 99,627 $ 118,462 Expected income tax expense at statutory tax rate in the PRC 33,221 24,998 29,614 Effect of different tax rates in various jurisdictions 4,665 3,541 1,567 Effect of preferential tax treatment (14,334 ) (12,707 ) (15,228 ) Effect of non-taxable (4,770 ) (74 ) (1,919 ) Effect of additional deductible research and development expenses (9,838 ) (9,398 ) (8,909 ) Effect of non-deductible 6,644 4,020 6,417 Under (over) provision of income tax in previous years 2,102 1,419 (2,322 ) Change in valuation allowance 1,718 2,124 3,005 Withholding tax on dividends paid by subsidiaries — 3,692 — Others 1,146 (981 ) (835 ) Total $ 20,554 $ 16,634 $ 11,390 The breakdown of deferred tax assets/liabilities caused by the temporary differences and net operating loss carryforwards is shown as below: June 30, 2022 2023 Deferred tax assets Allowance for doubtful accounts $ 12,932 $ 12,222 Deferred subsidies 845 1,068 Warranty liabilities 773 727 Inventory provision 555 91 Long-term assets 591 168 Deferred revenue 373 — Provision for loss contracts 1,699 2,256 Net operating loss carry forward 20,351 21,703 Valuation allowance (19,554 ) (21,703 ) Others — 3,552 Total deferred tax assets $ 18,565 $ 20,084 Deferred tax liabilities Property, plant and equipment $ (645 ) $ (621 ) Costs and estimated earnings in excess of billings (10,079 ) (7,470 ) Share of net losses of equity investees (1,798 ) (1,617 ) PRC dividend withholding tax (5,198 ) (4,898 ) Intangible assets and other non-current (7,390 ) (4,966 ) Others (1,881 ) (1,644 ) Total deferred tax liabilities $ (26,991 ) $ (21,216 ) As of June 30, 202 3 $nil , Realization of the deferred tax assets is dependent on factors including future reversals of existing taxable temporary differences and adequate future taxable income, exclusive of reversing deductible temporary differences and tax loss or credit carry forwards. The Group evaluates the potential realization of deferred tax assets on an entity-by-entity 2 3 fully Under the EIT Law and the implementation rules, profits of the Company’s PRC subsidiaries earned on or after January 1, 2008 and distributed by the PRC subsidiaries to their respective foreign holding companies are subject to a withholding tax at 10 % unless reduced by tax treaty. As of June 30, 2022 and 2023, the aggregate undistributed earnings from the Company’s PRC subsidiaries that are available for distribution are to $ ) and RMB (equivalent to $ ), respectively. The Company expects to distribute a portion of the earnings (RMB ) to the holding companies located outside mainland China, and has hence accrued a withholding tax of $ as of June 30, 2023. The remaining undistributed earnings of the Company’s PRC subsidiaries are intended to be permanently reinvested, and accordingly, no deferred tax liabilities have been provided for the PRC dividend withholding taxes that would be payable upon the distribution of those amounts to the Company . As of June 30, 202 2 3 2 3 2 3 The Chinese tax law grants the tax authorities the rights to further inspect companies’ tax returns retroactively in a three-year period (up to five years under certain special conditions), which means theoretically the tax authorities can still review the PRC subsidiaries’ tax returns for the years ended December 31, 2018 through 2022. The tax law also states that companies will be liable to additional tax, interest charges and penalties if errors are found in their tax returns and such errors have led to an underpayment of tax. As of June 30, 202 2 3 2 3 1 2 3 |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Jun. 30, 2023 | |
Lessee, Operating Lease, Description [Abstract] | |
OPERATING LEASES | NOTE 20 - OPERATING LEASES Operating lease as lessee The Company’s lease agreements include payments for land use rights and lease payments that are largely fixed, do not contain material residual value guarantees or variable lease payments. The leases, other than prepaid land leases, have remaining lease terms of up to five years. The Company’s leases do not contain restrictions or covenants that restrict the Company from incurring other financial obligations. Year ended June 30, 2021 2022 2023 Operating lease costs $ 2,324 $ 3,484 $ 3,301 Short-term lease costs 1,000 191 810 Amortization of prepaid land leases 454 382 331 Total lease costs $ 3,778 $ 4,057 $ 4,442 Other information Year ended June 30, 2021 2022 2023 Cash paid for amounts included in the measurement of operating lease liabilities $ 4,045 $ 3,810 $ 4,448 Right-of-use assets obtained in exchange for new operating 3,011 1,554 2,429 Weighted-average remaining lease term (in years): Operating leases 1.97 1.83 2.44 Weighted-average discount rate: Operating leases 4.17 % 3.05 % 3.94 % For the fiscal year ended June 30, 2023, total lease costs of $1,468 were recorded in selling expenses, $1,932 were recorded in general and administrative expenses, and $1,042 were recorded in research and development expenses. Total expenses under operating leases were $3,301 for the fiscal year ended June 30, 202 3 3 Future minimum lease payments for operating leases as of June 30, 2023 are as follows: As of June 30, 2024 $ 2,494 2025 787 2026 420 2027 130 2028 107 Total minimum lease payments 3,938 Less: imputed interest 948 Total lease liability balance $ 2,990 Operating lease as lessor The Company entered into operating lease arrangements to lease out its buildings located in Beijing with lease term ranging from ten to fifteen years. The lease arrangements include lease payments that are largely fixed and do not contain variable lease payments. The leases do not contain any contingent rental income clauses or options for a lessee to purchase the buildings. Total rental income for the fiscal years ended June 30, 2021, 2022 and 2023 was $1,540, $1,640 and $1,754, respectively, and were recorded under other income on the consolidated statements of comprehensive income. Future minimum lease payments to be received for these operating lease arrangements for each of the five succeeding fiscal years and thereafter as of June 30, 2023 are as follows: Fiscal year ending June 30, Minimum lease payments 202 4 $ 1,948 202 5 1,727 202 6 1,779 202 7 1,833 202 8 1,888 Thereafter 9,571 Total minimum lease payments to be received $ 18,746 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 21 - EARNINGS PER SHARE The following table sets forth the computation of basic and diluted net earnings per share attributable to the Company’s common shareholders for the years indicated: Year ended June 30, 2021 2022 2023 Numerator: Net income attributable to the Company as reported $ 89,709 $ 83,182 $ 106,931 Net income attributable to common stockholders – basic $ 89,709 $ 83,182 $ 106,931 Net income attributable to common stockholders – diluted $ 89,709 $ 83,182 $ 106,931 Denominator: Weighted average ordinary shares outstanding used in computing basic earnings per share(i) 60,566,709 61,007,806 61,521,412 Effect of dilutive securities Share options — 65,337 148,449 Restricted shares 947,040 495,333 364,539 Weighted average ordinary shares outstanding used in computing diluted earnings per share 61,513,749 61,568,476 62,034,400 Earnings per share – basic $ 1.48 1.36 1.74 Earnings per share – diluted $ 1.46 1.35 1.72 (i) Vested and unissued restricted shares of 15,000, 15,000 and 15,000 shares are included in the computation of basic and diluted earnings per share for the years ended June 30, 2021, 2022 and 2023, respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 22 - RELATED PARTY TRANSACTIONS The related party relationships and related party transactions are listed as follows: Related party relationships Name of related parties Relationship with the Company China Techenergy Co., Ltd. (“China Techenergy”) 40% owned by Beijing HollySys Control Technology Co., Ltd. (“ Control”) 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”) Hollicube Co., Ltd. (“Ningbo Hollysys”) 38.1 Beijing Hollysys Digital Technology Co., Ltd. (“Beijing Digital”) 25% owned by Beijing Hollysys Intelligent Technologies Co., Ltd. (“Hollysys Intelligent”) Due from related parties June 30, 2022 2023 China Techenergy $ 17,529 $ 16,281 Hollycon 15,066 13,984 Ningbo Hollysys 286 558 Beijing Digital 257 5 Others — 2 Allowance for credit losses (5,778 ) (4,924 ) $ 27,360 $ 25,906 An allowance for credit loss of US$5,778 and US$4,924 has been made as of June 30, 2022 and 2023, respectively. Due to related parties June 30, 2022 2023 Ningbo Hollysys $ 4,285 $ 3,869 China Techenergy 2,012 2,112 Hollycon 1 163 Others 1 11 $ 6,299 $ 6,155 Amounts due from and due to the related parties relating to the above transactions are unsecured, non-interest Transactions with related parties Purchases of goods and services from: Year ended June 30, 2021 2022 2023 Ningbo Hollysys (i) $ 3,051 $ 1,164 $ 1,823 Hollycon 7 569 143 $ 3,058 $ 1,733 $ 1,966 (i) The Company purchases products from Ningbo Hollysys which are used to provide an integrated automation and control system to its customers. Sales of goods and integrated solutions to: Year ended June 30, 2021 2022 2023 China Techenergy (i) $ 8,458 $ 5,118 $ 12,207 Ningbo Hollysys (ii) 308 967 2,396 Hollycon (ii) 866 221 177 $ 9,632 $ 6,306 $ 14,780 (i) The Company sells automation control systems to China Techenergy which is used for non-safety non-safety (ii) The Company sells products to Hollycon and Ningbo Hollysys, which incorporate the Company’s product with their automated systems to provide an integrated automation and control system to their 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 Hollycon and Ningbo Hollysys are consolidated subsidiaries. Other income from: Year ended June 30, 2021 2022 2023 Ningbo Hollysys (i) $ 2,281 $ 133 $ 669 Hollycon (ii) 460 2,443 1,170 Beijing Digital — 254 45 Others — — 7 $ 2,741 $ 2,830 $ 1,891 (i) The Company entered into an operating lease agreement with Ningbo Hollysys to lease part of a building in Beijing. The lease term is for one year from the commencement date of January 1, 202 3 3 (ii) The Company entered into an operating lease agreement with Hollycon to lease part of building located in Beijing. The lease term is for one year from the commencement date of January 1, 202 3 3 Research and development: Year ended June 30, 2021 2022 2023 Ningbo Hollysys (i) $ 212 $ 208 $ 144 (i) The Company purchases research and development services from Ningbo Hollysys for research and development projects in the field of intelligent manufacturing. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 23 - COMMITMENTS AND CONTINGENCIES Capital commitments As of June 30, 2023, the Company had $20,692 in capital obligations for the coming fiscal year s Purchase obligations As of June 30, 2023, the Company had $347,966 purchase obligations for the coming fiscal years, for purchases of inventories and subcontracts, mainly for fulfillment of in-process Years ending June 30, Minimum payments 2024 $ 196,154 2025 43,924 2026 45,050 2027 17,909 2028 and onwards 44,929 Performance guarantee and standby letters of credit The Company had stand-by 3 stand-by pre-agreed stand-by The Company accounts for performance guarantees and stand-by Guarantees. Both the performance guarantees and the stand-by stand-by |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 24 - SEGMENT REPORTING The chief operating decision makers (“CODM”) have been identified as the Chairman, Chief Executive Officer and Chief Financial Officer of the Company. The Company organizes its internal financial reporting structure based on its main product and service offerings. Based on the criteria established by ASC 280, the Company has determined that the reportable segments of the Company consist of (1) Industrial Automation (“IA”), (2) Rail Transportation (“Rail”), (3) Mechanical and Electrical Solutions (“M&E”), in accordance with the Company’s organization and internal financial reporting structure. The CODM assesses the performance of the operating segments based on the measures of revenues, costs and gross profit. Other than the information provided below, the CODM does not use any other measures by segments. Summarized information by segments for the years ended June 30, 2021, 2022, and 2023 is as follows: 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 — 28,667 Maintenance service revenue 21,402 79,874 46 101,322 Extended warranty service revenue 1,772 1,525 — 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, 2022 IA Rail M&E Consolidated Revenues from external customers Integrated solutions contracts revenue $ 380,516 109,342 83,709 573,567 Product sales 31,559 6,927 — 38,486 Maintenance service revenue 26,725 64,492 50 91,267 Extended warranty service revenue 1,118 3,024 — 4,142 Total 439,918 183,785 83,759 707,462 Costs of revenue 294,642 98,150 75,313 468,105 Gross profit $ 145,276 85,635 8,446 239,357 Year ended June 30, 2023 IA Rail M&E Consolidated Revenues from external customers Integrated solutions contracts revenue $ 438,863 111,331 81,906 632,100 Product sales 41,987 5,437 — 47,424 Maintenance service revenue 24,045 70,050 — 94,095 Extended warranty service revenue 1,405 2,349 — 3,754 Total 506,300 189,167 81,906 777,373 Costs of revenue 353,380 92,775 75,733 521,888 Gross profit $ 152,920 96,392 6,173 255,485 The majority of the Company’s revenues and long-lived assets other than goodwill and intangible assets are derived from and located in the PRC. The following table sets forth the revenues by geographical area: Year ended June 30, 2021 2022 2023 Revenues: PRC $ 518,170 $ 614,903 $ 689,814 Non-PRC 75,296 92,559 87,559 $ 593,466 $ 707,462 $ 777,373 The following table sets forth the long-lived assets other than goodwill and intangible assets by geographical area: June 30, 2022 2023 Long-lived assets other than goodwill and acquired intangible assets PRC $ 159,598 $ 194,136 Non-PRC 10,114 9,640 $ 169,712 $ 203,776 |
ACQUISITION OF SUBSIDIARY
ACQUISITION OF SUBSIDIARY | 12 Months Ended |
Jun. 30, 2023 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | NOTE 25 - ACQUISITION OF SUBSIDIARY In August 2021, the Company completed the acquisition of 100 % of the equity of Hollysys Intelligent, a wholly owned subsidiary, from Ningbo Hollysys, with a cash consideration of approximately RMB The following represents the summary of the excess purchase price over the fair value of net assets acquired: Purchase price $ 20,908 Less: Final fair value of net assets acquired 1,211 Excess purchase price over fair value of net assets acquired 19,697 The excess purchase price over the fair value of net assets acquired has been recorded to goodwill. No significant changes were made during the year ended June 30, 2022, to the preliminary purchase accounting recorded during the fiscal year 2022. The goodwill arising from the Hollysys Intelligent Acquisition consists largely of the synergies and economies of scale expected from combining the operations acquired from Hollysys Intelligent with ours. The following table summarizes the final fair values assigned to the identified assets acquired and liabilities assumed: Assets Acquired: Cash and cash equivalents $ 3,018 Restricted cash 1 Accounts receivable, net 8,776 Cost and estimated earnings in excess of billings, net 2,499 Other receivables, net 1,221 Advances to suppliers 667 Inventories, net 6,513 Income tax recoverable 25 Property, plant and equipment, net 2,886 Operating lease right-of-use 3 Intangible assets, net 11,245 Investments in equity investees 1,490 Total assets acquired 38,344 Liabilities Assumed: Accounts payable 11,553 Deferred revenue 9,803 Accrued payroll and related expenses 1,018 Warranty liabilities 145 Accrued liabilities 14,614 Total liabilities assumed 37,133 Fair Value of Net Assets Acquired $ 1,211 In connection with the Hollysys Intelligent Acquisition, below is a summary of the value allocated to the intangible assets acquired: June 30, 2022 June 30, 2023 Asset Class Amortization Amount Accumulated Net Accumulated Net Intangible assets 10 Years $ 11,245 $ (1,394 ) $ 9,851 $ (1,767 ) $ 8,084 |
DISPOSAL OF SUBSIDIARY
DISPOSAL OF SUBSIDIARY | 12 Months Ended |
Jun. 30, 2023 | |
Disposal Of Subsidary [Abstract] | |
DISPOSAL OF SUBSIDIARY | NOTE 26 - DISPOSA L The Company received $13,160 from the of H S 3 |
ENDORSEMENT OF NOTE RECEIVABLES
ENDORSEMENT OF NOTE RECEIVABLES | 12 Months Ended |
Jun. 30, 2023 | |
ENDORSEMENT OF NOTE RECEIVABLES | |
ENDORSEMENT OF NOTE RECEIVABLES | NOTE 2 7 The Company endorsed bank acceptance bills to its suppliers as a way of settling accounts payable. The total endorsed but not yet due bank acceptance bills amounted to $67,703 and $86,140 as of June 30, 2022 and 2023, respectively. The endorsement of bank acceptance bills qualified as deemed sales of financial assets according to ASC 860, Transfer and Servicing |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 12 Months Ended |
Jun. 30, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | NOTE 2 8 Under the PRC laws and regulations, the Company’s PRC subsidiaries’ ability to transfer net assets in the form of dividend payments, loans, or advances are restricted. The amount restricted was RMB607,041 (equivalent to $83,326) and RMB615,590 (equivalent to $84,487) as of June 30, 2022, and 2023, respectively. The following represents condensed unconsolidated financial information of the parent company only: CONDENSED BALANCE SHEETS June 30, 2022 2023 ASSETS Current assets: Cash and cash equivalents $ 7,500 $ 3,190 Amounts due from subsidiaries 53,503 53,503 Prepaid expenses 202 262 Total current assets 61,205 56,955 Investment in subsidiaries 1,276,497 1,288,395 Total assets $ 1,337,702 $ 1,345,350 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accrued liabilities 98 — Amounts due to subsidiaries 172,317 170,141 Total liabilities 172,415 170,141 Equity: Ordinary shares, par value $0.001 per share, 100,000,000 shares authorized; 62,021,930 shares issued and 2 3 62 62 Additional paid-in 243,476 246,908 Retained earnings 934,404 1,040,657 Accumulated other comprehensive loss (12,655 ) (112,418 ) Total equity 1,165,287 1,175,209 Total liabilities and equity $ 1,337,702 $ 1,345,350 CONDENSED STATEMENTS OF COMPREHENSIVE INCOME Year Ended June 30, 2021 2022 2023 General and administrative expenses $ 21,090 $ 17,223 $ 7,219 Loss from operations (21,090 ) (17,223 ) (7,219 ) Interest income 117 — 14 Foreign exchange gains 1,532 197 1,409 Share of net income of subsidiaries $ 109,150 $ 100,208 $ 112,727 Income before income taxes 89,709 83,182 106,931 Income tax expenses — — — Net income 89,709 83,182 106,931 Other comprehensive income, net of tax of nil Translation adjustment 96,331 (45,469 ) (99,763 ) Comprehensive income $ 186,040 $ 37,713 $ 7,168 CONDENSED STATEMENTS OF CASH FLOWS Year ended June 30, 2021 2022 2023 Cash flows from operating activities: Net income $ 89,709 $ 83,182 $ 106,931 Adjustments to reconcile net income to net cash used in operating activities: Share of net income of subsidiaries (109,150 ) (100,208 ) (112,727 ) Share-based compensation expenses 9,724 9,709 3,286 Change in operating assets and liabilities 5,065 26,820 (1,800 ) Net cash (used in) provided by operating activities $ (4,652 ) $ 19,503 $ (4,310 ) Cash flows from investing activities: Maturity of short-term investments 11,318 — — Net cash provided by investing activities $ 11,318 $ — $ — Cash flows from financing activities: Payment of dividends (12,107 ) (19,827 ) — Net cash used in financing activities $ (12,107 ) $ (19,827 ) $ — Net decrease in cash and cash equivalents $ (5,441 ) $ (324 ) $ (4,310 ) Cash and cash equivalents, beginning of period 13,265 7,824 7,500 Cash and cash equivalents, end of period $ 7,824 $ 7,500 $ 3,190 Basis of presentation For the presentation of the parent company only condensed financial information, the Company records its investment in subsidiaries under the equity method of accounting as prescribed in ASC 323, Investments—Equity Method and Joint Ventures Commitments The Company does not have significant commitments or long-term obligations as of the period end other than those presented. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements are prepared in accordance with U.S. GAAP. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and a VIE. All inter-company transactions and balances between the Company, its subsidiaries, and the VIE are eliminated upon consolidation. The Company included the results of operations of acquired businesses from the respective dates of acquisition. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U . . |
Foreign currency translations and transactions | Foreign currency translations and transactions The Company’s functional currency is the United States dollar (“US dollars” or “$”); whereas the Company’s subsidiaries and VIE use the primary currency of the economic environment in which their operations are conducted as their functional currency. According to the criteria of ASC 830, Foreign Currency Matters The Company translates the assets and liabilities of its subsidiaries and VIE into US dollars using the rate of exchange prevailing at the balance sheet date, and the consolidated statements of comprehensive income are translated at average rates during the reporting period. Adjustments resulting from the translation of financial statements from the functional currency into US dollars are recorded in stockholders’ equity as part of accumulated other comprehensive income. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing on the transaction dates, and the exchange gains or losses are reflected in the consolidated statements of comprehensive income for the reporting period. “RMB” and “CNY” refer to Renminbi, the legal currency of China; “SGD” and “S$” refer to the Singapore dollar, the legal currency of Singapore; “US dollar,” “$” and “US$” refer to the legal currency of the United States; “MYR” refers to the Malaysian Ringgit, the legal currency of Malaysia; “AED” refers to the United Arab Emirates Dirham, the legal currency of United Arab Emirates; “HKD” refers to the Hong Kong dollar, the legal currency of Hong Kong; “MOP” refers to the Macau Pataca, the legal currency of Macau; “INR” refers to the Indian Rupee, the legal currency of India; and “QAR” refers to the Qatar Riyal, the legal currency of Qatar; “IDR” refers to Indonesia Rupiah, the legal currency of Indonesia, “PHP” refers to Philippine Peso, the legal currency of Philippines. |
Business combinations | Business combinations The Company accounts for its business combinations using the purchase method of accounting in accordance with ASC Topic 805, Business Combinations non-controlling non-controlling The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and non-controlling Acquisition-related costs are recognized as general and administrative expenses in the consolidated statements of comprehensive income as incurred. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand and bank deposits, which are unrestricted as to withdrawal and use. All highly liquid investments that are readily convertible to known amounts of cash with original stated maturities of three months or less are classified as cash equivalents. |
Short-term investments | Short-term investments Short-term investments consist of deposits placed with financial institutions with original maturity terms from four months to one year. As of June 30, 2023, $24,938, $1,490, and $6,774 of short-term investments were placed in financial institutions in the PRC, Singapore, and Malaysia, respectively. As of June 30, 2022, $nil, $4,310, and $7,893 of short-term investments were placed in financial institutions in the PRC, Singapore, Malaysia, respectively. |
Restricted cash | Restricted cash Restricted cash mainly consists of the cash deposited in banks pledged for performance guarantees or bank loans. These cash balances are not available for use until these guarantees are expired or cancelled, or the loans are repaid. |
Revenue recognition | Revenue recognition Integrated solutions contracts Revenues generated from designing, building, and delivering customized integrated industrial automation systems are recognized over time as the customer simultaneously receives and consumes the benefits provided by the Company’s performance as it occurs or because the customers control the related asset as it is created or enhanced. The contracts for designing, building, and delivering customized integrated industrial automation systems are legally enforceable and binding agreements between the Company and customers. The duration of contracts depends on the contract size and ranges from six months to five years excluding the warranty period. The majority of the contract duration is longer than one year. Revenue generated from mechanical and electrical solution contracts for the construction or renovation of buildings, rail or infrastructure facilities is also recognized over time as the customer simultaneously receives and consumes the benefits provided by the Company’s performance as it occurs or because the customers control the related asset as it is created or enhanced. The contracts for mechanical and electrical solution are legally enforceable and binding agreements between the Company and customers. The duration of contracts depends on the contract size and the complexity of the construction work and ranges from six months to three years excluding the warranty period. The majority of the contract duration is longer than one year. In accordance with ASC Topic 606, Revenue from Contract with Customers cost-to-cost The Company reviews and updates the estimated total costs of the contracts at least annually. Revisions to contract revenue and estimated total costs of the contracts are made in the period in which the facts and circumstances that cause the revision become known and are accounted for as changes in estimates. Unapproved change orders are considered claims. Claims are recognized only when they have been awarded by customers. Excluding the impact of change orders, if the estimated total costs of integrated solutions contracts, which were revised during the years ended June 30, 2021, 2022 and 2023, had been used as a basis of recognition of integrated solutions contracts revenue since the contract commencement, net income for the years ended June 30, 2021, 2022 and 2023 would have been decreased by $13,528, $28,473, and $22,516, respectively; basic net income per share for years ended June 30, 2021, 2022 and 2023 would have been decreased by $0.22, $0.47, and $0.37 respectively; and diluted net income per share for the years ended June 30, 2021, 2022 and 2023, would have decreased by $0.22, $0.46, and $0.36, respectively. Revisions to the estimated total costs for the years ended June 30, 2021, 2022 and 2023 were made in the ordinary course of business. The Company combines a group of contracts as one project if they are closely related and are, in substance, parts of a single project with an overall profit margin. The Company segments a contract into several projects, when they are of different business substance, for example, with different business negotiation, solutions, implementation plans and margins. Revenue in excess of billings on the contracts is recorded as costs and estimated earnings in excess of billings. Billings in excess of revenues recognized on the contracts are recorded as deferred revenue until the above revenue recognition criteria are met. Recognition of accounts receivable and costs and estimated earnings in excess of billings are discussed below. The Company generally recognizes 100% of the contractual revenue when the customer acceptance has been obtained and no further major costs are estimated to be incurred, and normally this is also when the warranty period commences. Revenues are presented net of value-added tax collected on behalf of the government. Product sales The Company’s products mainly include hardware and software. Revenue generated from sales of products is recognized when control of the promised goods is transferred to the Company’s customers for Service rendered The Company mainly provides the following services: The Company provides maintenance service which is generally completed onsite at the customers’ premises. Revenue is recognized over time by using the cost-to-cost The Company also separately sells extended warranties to their integrated solution customers for a fixed period. Such arrangements are negotiated separately from the corresponding integrated solution system and are usually entered into upon the expiration of the warranty period attached to the integrated solutions contracts. During the extended warranty period, the Company is responsible for addressing issues related to the system. Part replacement is not covered in such services. The Company uses time elapsed to measure the progress toward complete satisfaction of the performance obligation and recognizes revenue ratably over the contractual term. Revenues are presented net of value-added tax collected on behalf of the government. Excluding the impact of change orders, if the estimated total costs of service contracts, which were revised during the year ended June 30, 2023, had been used as a basis of recognition of service contract revenue since the contract commencement, net income for the years ended June 30, 2021, 2022 and 2023 would have been decreased by $9,735, $7,450 and $5,771, respectively; basic net income per share for years ended June 30, 2021, 2022 and 2023 would have been decreased by $0.16, $0.12 and $0.09, respectively; and diluted net income per share for the years ended June 30, 2021, 2022 and 2023, would have decreased by $0.16, $0.12 and $0.09, respectively. Revisions to the estimated total costs for the years ended June 30, 2021, 2022 and 2023 were made in the ordinary course of business. Contract assets Contract assets include amounts that represent the rights to receive payment for goods or services that have been transferred to the customer, with the rights conditional upon something other than the passage of time. Accordingly, the Company includes the following in the contract assets: (i) unbilled amounts resulting from revenue recognized exceeding amounts billed to customers for integrated solutions contracts and maintenance service contracts using the cost-to-cost Performance of the integrated solutions contracts will often extend over long periods and the Company’s right to receive payments depends on its performance in accordance with the contractual terms. The Company has different billing practices for its PRC subsidiaries, overseas subsidiaries, and the VIE (Concord and Bond Groups). For the Company’s PRC subsidiaries, billings are issued based on milestones specified in the contracts negotiated with customers. In general, there are four milestones: 1) project commencement; 2) system manufacturing and delivery; 3) installation, trial-run For Concord and Bond Groups, billing claims rendered are subject to the further approval and certification of the customers or their designated consultants. Payments are made to Concord and Bond Groups based on the certified billings according to the payment terms mutually agreed between the customers and Concord and Bond Groups. Certain amounts are retained by the customer and payable to Concord and Bond Groups upon the issuance of the final completion certificate and completion of the defects liability period. The retained amounts are recorded as accounts receivable retention. Contract liabilities Contract liabilities include the amounts that reflect obligations to provide goods or services for which payment has been received. Contract liabilities are presented in the balance sheet as deferred revenue. The Company receives prepayments for integrated solutions contracts, product sales and service contracts for goods or services to be provided in the future. Prepayments received are recorded as deferred revenue, which is recognized as revenue based on the revenue recognition policies disclosed above for integrated solutions contracts, product sales and services rendered. |
Accounts receivable and costs and estimated earnings in excess of billings | Accounts receivable, costs and estimated earnings in excess of billings and accounts receivable retention The carrying value of the Company’s accounts receivable, costs and estimated earnings in excess of billings and accounts receivable retention, net of the allowance for credit losses, represents their estimated net realizable value. An allowance for doubtful accounts is recognized when it is probable that the Company will not collect the amount and is written off in the period when deemed uncollectible. The Company periodically reviews the status of contracts and decides how much of an allowance for doubtful accounts should be made based on factors surrounding the credit risk of customers and historical experience. The Company does not require collateral from its customers and does not charge interest for late payments by its customers. |
Inventories | Inventories Inventories are composed of raw materials, work in progress, purchased and manufactured finished goods and low value consumables. Inventories are stated at the lower of cost and net realizable value. The Company uses the weighted average cost method as its inventory costing method. The Company assesses the lower of cost and net realizable value for non-saleable, non-saleable, work-in-process |
Warranties | Warranties Warranties represent a major term under integrated solutions contracts and maintenance service contracts, which will last, in general, for one to three years or otherwise specified in the terms of the contract. The Company accrues warranty liabilities under a service contract as a percentage of revenue recognized, which is derived from its historical experience, in order to recognize the warranty cost for the related contract throughout the contract period. |
Property, plant and equipment, net | Property, plant and equipment, net Property, plant and equipment, other than construction in progress, are recorded at cost and are stated net of accumulated depreciation and impairment, if any. Depreciation expense is determined using the straight-line method over the estimated useful lives of the assets as follows: Buildings 30 - 50 years Machinery 5 – Software 3 – Vehicles 5 – Electronic and other equipment 3 – Construction in progress represents uncompleted construction work of certain facilities which, upon completion, management intends to hold for production purposes. In addition to costs under construction contracts, other costs directly related to the construction of such facilities, including duty and tariff, equipment installation and shipping costs, and borrowing costs are capitalized. Depreciation commences when the asset is placed in service. Maintenance and repairs are charged directly to expenses as incurred, whereas betterment and renewals are capitalized in their respective accounts. When an item is retired or otherwise disposed of, the cost and applicable accumulated depreciation are removed and the resulting gain or loss is recognized for the reporting period. |
Prepaid land leases, net | Prepaid land leases, net Prepaid land lease payments, for the land use right of four parcels of land in the PRC, three parcels of leasehold land in Malaysia and one parcel of leasehold land in Singapore, are initially stated at cost and are subsequently amortized on a straight-line basis over the lease terms of 49 to 88 years. |
Intangible assets, net | Intangible assets, net Intangible assets are carried at cost less accumulated amortization and any impairment. Intangible assets acquired in a business combination are recognized initially at fair value at the date of acquisition. Intangible assets are amortized using a straight-line method. The estimated useful lives for the intangible assets are as follows: Category Estimated useful life Patents and copyrights 5 – Residual values are considered nil. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the estimated fair value of net tangible and identifiable intangible assets acquired. The Company assesses goodwill for impairment in accordance with ASC subtopic 350-20, Intangibles – Goodwill and Other 350-20”), 350-20. The Company’s goodwill outstanding at June 30, 2023 was related to the acquisitions of Beijing Hollysys Industrial Software Company Ltd (“Hollysys Industrial Software”), Shandong Lukang Pharmaceutical Engineering Design Co., Ltd (“Shandong Lukang”) and Hollysys Intelligent. The Company has the option to assess qualitative factors first to determine whether it is necessary to perform the quantitative test in accordance with ASC 350-20. more-likely-than-not |
Impairment of long-lived assets other than goodwill | Impairment of long-lived assets other than goodwill The Company evaluates its long-lived assets or asset groups including acquired intangibles with finite lives for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of a group of long-lived assets may not be fully recoverable. When these events occur, the Company evaluates the impairment by comparing the carrying amount of the assets to future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company recognizes an impairment loss based on the excess of the carrying amount of the asset group over its fair value, generally based upon discounted cash flows or quoted market prices. |
Shipping and handling costs | Shipping and handling costs All shipping and handling fees charged to customers are included in net revenue. Shipping and handling costs incurred are included in cost of integrated solutions contracts and/or costs of products sold as appropriate. |
Income taxes | Income taxes The Company follows the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not The Company complies with ASC 740, Income Taxes , |
Research and development costs | Research and development costs Research and development costs consist primarily of salaries, bonuses and benefits for research and development personnel. Research and development costs also include travel expenses of research and development personnel as well as depreciation of hardware equipment and software tools and other materials used in research and development activities. Research and development costs are expensed as incurred. Software development costs are also expensed as incurred as the costs qualifying for capitalization have been insignificant for the periods presented. |
VAT refunds and government subsidies | VAT refunds and government subsidies Pursuant to the laws and regulations of the PRC, the Company remits 13% of its sales as value added tax (“VAT”), and then is entitled to a refund of the portion of the Company’s actual VAT burden that exceeds the 3% levied on all sales containing internally developed software products. VAT refunds are recognized in the consolidated statements of comprehensive income when cash refunds or the necessary approval from the tax authority has been received. Certain subsidiaries of the Company located in the PRC receive government subsidies from local PRC government agencies. Government grants, which mainly represent amounts received from central and local governments in connection with the Company’s investments in local business districts and contributions to technology development . Government subsidies are recognized in the consolidated statements of comprehensive income when the necessary conditions have been met. Government grants received for the years ended June 30, 2021, 2022 and 2023 amounted to $ , $ and $ , respectively, of which $ , $ and $ were included as a credit to operating expenses in the consolidated statements of comprehensive income for the years ended June 30, 2021, 2022 and 2023, respectively. |
Appropriations to statutory reserve | Appropriations to statutory reserve Under the corporate law and relevant regulations in the PRC, all of the subsidiaries of the Company located in the PRC are required to appropriate a portion of their retained earnings to statutory reserve. All subsidiaries located in the PRC are required to appropriate 10% of their annual after-tax after-tax |
Segment reporting | Segment reporting In accordance with ASC 280, Segment Reporting |
Comprehensive income | Comprehensive income Comprehensive income is defined as the changes in equity of the Company during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. In accordance with ASC 220, Comprehensive Income |
Investments in Equity Investees and Equity Securities | Investments in equity investees and equity securities The Company accounts for its equity investments under the equity method when the Company has rights and ability to exercise significant influence over the investees. Significant influence is generally considered to exist when the Company has an ownership interest in the investee between 20% and 50%. Other factors, such as representation on the investee’s board of directors and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. Under the equity method, original investments are recorded at cost and adjusted by the Company’s share of undistributed earnings or losses of these entities, by the amortization of any basis difference between the amount of the Company’s investment and its share of the net assets of the investee, and by dividend distributions or subsequent investments. When dividends from an investee exceed the carrying amount of an equity method investment, the excess distribution is recognized as a gain and reported as share of net income of equity investees, net in the consolidated statements of comprehensive income when the Company is not liable for the obligations of the investee nor otherwise committed to provide financial support. In such cases, subsequent equity method earnings are not recorded until subsequent earnings equal the gain recorded. Unrealized inter-company profits and losses related to equity investees are eliminated. An impairment charge, being the difference between the carrying amount and the fair value of the equity investee, is recognized in the consolidated statements of comprehensive income when the decline in value is considered other than temporary. The Company will discontinue applying the equity method if an investment (plus additional financial support provided to the investee, if any) has been reduced to zero. When the Company has other investments in its equity-method investee and is not required to advance additional funds to that investee, the Company would continue to report its share of equity method losses in its consolidated statement of comprehensive income after its equity-method investment has been reduced to zero, to the extent of and as an adjustment to the adjusted basis of its other investments in the investee. Such losses are first applied to those investments of a lower liquidation preference before being further applied to the investments of a higher liquidation preference. The Company uses the cumulative earnings approach to classify distributions received from equity investees. Under this approach, distributions received from equity investees are presumed to be a return on the investment and are classified as cash inflows from operating activities unless the distributions received exceed cumulative equity in earnings recognized by the investor. In such case, the excess is considered a return of investment and is classified as cash inflows from investing activities. For equity investments other than those accounted for under the equity method or those that result in consolidation of the investee, the Company measures equity investments at fair value and recognizes any changes in fair value in net income. However, for equity investments that do not have readily determinable fair values and do not qualify for the existing practical expedient in ASC 820, Fair Value Measurements and Disclosures |
Capitalization of interest | Capitalization of interest Interest incurred on borrowings for the Company’s construction of facilities and assembly line projects during the active construction period is capitalized. The capitalization of interest ceases once a project is substantially complete. The amount to be capitalized is determined by applying the weighted-average interest rate of the Company’s outstanding borrowings to the average amount of accumulated capital expenditures for assets under construction during the year and is added to the cost of the underlying assets and amortized over their respective useful lives. |
Income per share | Income per share Income per share is computed in accordance with ASC 260, Earnings Per Share |
Share-based compensation | Share-based compensation The Company accounts for share-based compensation in accordance with ASC 718, Compensation-Stock Compensation For share-based awards that are subject to performance-based vesting conditions in addition to time-based vesting, the Company recognizes the estimated grant-date fair value of performance-based awards, net of estimated forfeitures, as share-based compensation expense over the vesting period based upon the Company’s determination of whether it is probable that the performance-based criteria will be achieved. At each reporting period, the Company reassesses the probability of achieving the performance-based criteria. Determining whether the performance-based criteria will be achieved involves judgment, and the estimate of share-based compensation expense may be revised periodically based on changes in the probability of achieving the performance-based criteria. Revisions are reflected in the period in which the estimate is changed. If the performance-based criteria are not met, no share-based compensation expense is recognized, and, to the extent share-based compensation expense was previously recognized, such share-based compensation expense is reversed. |
Fair value measurements | Fair value measurements The Company complies with ASC 820, Fair Value Measurement 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. Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. |
Leases | Leases Leases have been classified as either capital or operating leases. Leases that transfer substantially all the benefits and risks incidental to the ownership of assets are accounted for as if there was an acquisition of an asset and incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases wherein rental payments are expensed as incurred. Accounting for lessor Minimum contractual rental from leases are recognized on a straight-line basis over the non-cancelable term of the lease. With respect to a particular lease, actual amounts billed in accordance with the lease during any given period may be higher or lower than the amount of rental revenue recognized for the period. Straight-line rental revenue commences when the customer assumes control of the leased premises. Accrued straight-line rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements. Contingent rental revenue is accrued when the contingency is removed. Operating lease as lessee The Company determines if an arrangement is a lease at inception. The Company classifies a lease as a finance lease or an operating lease at lease commencement date as appropriate. The Company has operating leases for certain offices and warehouses and does not have any finance leases for the fiscal years ended June 30, 2022 and 2023. For operating leases, the Company records a lease liability and corresponding right-of-use (ROU) asset at lease commencement. Lease terms are based on the non-cancellable term of the lease and may contain options to extend the lease when it is reasonably certain that the Company will exercise the option. Lease liabilities represent the present value of the lease payments not yet paid, discounted using the discount rate for the lease at lease commencement. The Company estimates its incremental borrowing rate for its leases at the commencement date to determine the present value of future lease payments when the implicit rate is not readily determinable in the lease. In estimating its incremental borrowing rate, the Company considers its credit rating and publicly available data of borrowing rates for loans of similar amount, currency and term as the lease. Operating leases are presented as operating lease ROU assets and operating lease liabilities on the consolidated balance sheet. Prepaid land leases are separately classified on the consolidated balance sheets. Lease liabilities that become due within one year of the balance sheet date are classified as current liabilities. Operating lease ROU asset represents the right to use an underlying asset for the lease term and are recognized in an amount equal to the lease liability adjusted for any lease payments made prior to commencement date, less any lease incentives received and any initial direct costs incurred by the Company. After lease commencement, operating lease liabilities are measured at the present value of the remaining lease payments using the discount rate determined at lease commencement. Operating lease ROU assets are measured at the amount of the lease liabilities and further adjusted for prepaid or accrued lease payments, the remaining balance of any lease incentives received, unamortized initial direct costs and impairment of the ROU assets, if any. Operating lease expense is recognized as a single cost on a straight-line basis over the lease term. Operating lease as lessor The Company classifies a lease as an operating, sales-type or direct financing lease at lease commencement date as appropriate. For operating leases, the Company recognized rental income over the non-cancellable lease term on a straight-line basis. The Company does not have any sales-type or direct financing leases for the fiscal years ended June 30, 2021, 2022 and 2023. |
Concentration of risks | Concentration of risks Concentration of credit risk Assets that potentially subject the Company to a significant concentration of credit risk primarily consist of cash and cash equivalents, short-term investments, restricted cash, accounts receivable, costs and estimated earnings in excess of billings, accounts receivable retention, other receivables and amounts due from related parties. The maximum exposure of such assets to credit risk is their carrying amounts as of the balance sheet date. As of June 30, 2023, substantially all of the Company’s cash and cash equivalents and short-term investments were managed by financial institutions located in the PRC, Singapore and Malaysia, which management believes are of high credit quality. Accounts receivable, other receivables and amounts due from related parties are typically unsecured and the risk with respect to accounts receivable is mitigated by credit evaluations the Company performs on its customers and its ongoing monitoring process of outstanding balances. The Company has no customer that individually comprised 10% or more of the outstanding balance of accounts receivable as of June 30, 2022 and 2023, respectively. The Company does not require collateral or other security to support instruments subject to credit risk. Concentration of business and economic risk A majority of the Company’s net revenue and net income is derived in the PRC. The Company’s operations may be adversely affected by significant political, economic and social uncertainties in the PRC. Although the PRC government has been pursuing economic reform policies for more than 20 years, no assurance can be given that the PRC government will continue to pursue such policies or that such policies may not be significantly altered, especially in the event of a change in leadership, social or political disruption or unforeseen circumstances affecting the PRC’s political, economic and social conditions. There is also no guarantee that the PRC government’s pursuit of economic reforms will be consistent or effective. Concentration of currency convertibility risk A majority of the Company’s businesses are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. Concentration of foreign currency exchange rate risk The Company’s exposure to foreign currency exchange rate risk primarily relates to monetary assets or liabilities held in foreign currencies. Since July 21, 2005, the RMB has been permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. On June 19, 2010, the People’s Bank of China announced the end of the RMB’s de facto peg to USD, a policy which was instituted in late 2008 in the face of the global financial crisis, to further reform the RMB exchange rate regime and to enhance the RMB’s exchange rate flexibility. The exchange rate floating bands will remain the same as previously announced in the inter-bank foreign exchange market. The US dollar against RMB appreciated by 8.62%, depreciated by 3.65% and depreciated by 8.45% for the years ended June 30, 2021, 2022 and 2023, respectively. Any significant revaluation of RMB may materially and adversely affect the Company’s cash flows, revenues, earnings and financial position, and the value of its shares in US dollars. An appreciation of the US dollar against the RMB would result in foreign currency translation losses when translating the net assets of the Company from RMB into the US dollar. For the years ended June 30, 2021, 2022 and 2023, the net foreign currency translation gains (losses) resulting from the translation of RMB, SGD and other functional currencies to the US dollar reporting currency recorded in stockholders’ equity as part of accumulated other comprehensive income was $96,331, $(45,469), and $(99,763), respectively. |
Recent accounting pronouncements | Recent accounting pronouncements Recently Adopted Standards In August 2020, the FASB issued ASU 2020-06, “Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”, which simplifies an issuer’s accounting for certain convertible instruments and the application of derivatives scope exception for contracts in an entity’s own equity. This guidance also addresses how convertible instruments are accounted for in the diluted earnings per share calculation and required enhanced disclosures about the terms of convertible instruments and contracts in an entity’s own equity. The new guidance is required to be applied either retrospectively to financial instruments outstanding as of the beginning of the first comparable reporting period for each prior reporting period presented or retrospectively with the cumulative effect of the change to be recognized as an adjustment to the opening balance of retained earnings at the date of adoption. This guidance is effective in the year ended June 30, 2023 and the impact was not material to the consolidated financial statements. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance (ASU 2021-10), which improves the transparency of government assistance received by most business entities by requiring the disclosure of: (1) the types of government assistance received; (2) the accounting for such assistance; and (3) the effect of the assistance on a business entity’s financial statements. This guidance is effective in the year ended June 30, 2023 and the impact was not material to the consolidated financial statements. Standards Effective in Future Years In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which provides guidance on the acquirer’s accounting for acquired revenue contracts with customers in a business combination. The amendments require an acquirer to recognize and measures contract assets and contract liabilities acquired in a business combination at the acquisition date in accordance with ASC 606 as if it had originated the contracts. This guidance also provides certain practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from revenue contracts in a business combination. The new guidance is required to be applied prospectively to business combinations occurring on or after the date of adoption. This guidance is effective for the Group for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The Group does not expect that the adoption of this guidance will have a material impact on its financial position, results of operations and cash flows. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. This guidance also requires certain disclosures for equity securities subject to contractual sale restrictions. The new guidance is required to be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. This guidance is effective for the Group for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted. The Group does not expect that the adoption of this guidance will have a material impact on its financial position, results of operations and cash flows. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” and issued a subsequent amendment which refines the scope of the ASU and clarifies some of its guidance as part of the FASB’s monitoring of global reference rate reform activities in January 2021 within ASU 2021-01 (collectively, including ASU 2020-04, “ASC 848”). ASC 848 provides optional expedients and exceptions for applying U.S. GAAP on contract modifications and hedge accounting to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. These optional expedients and exceptions provided in ASC 848 are effective for the Company from January 1, 2020 through December 31, 2024. The Company does not expect that the adoption of this guidance will have a material impact on the financial position, results of operations and cash flows. |
ORGANIZATION AND BUSINESS BAC_2
ORGANIZATION AND BUSINESS BACKGROUND (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of financial statement balances and amounts of the VIE | The following tables set forth the financial statement balances and amounts of the VIE that were included in the consolidated financial statements: June 30, 2022 2023 Current assets $ 3,391 $ 3,149 Non-current 6 — Total assets 3,397 3,149 Current liabilities $ 1,547 $ 586 Total liabilities 1,547 586 Year ended June 30, 2022 2023 Net revenue $ 7 $ — Cost of revenue (1) (1,474 ) (792 ) Net profit 1,481 792 Net cash used in operating activities (323 ) (319 ) (1) Cost of revenue is negative because of the reversal of warranties provision which was overprovided in previous years. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of depreciation expense using the straight-line method over the estimated useful lives of the assets | Depreciation expense is determined using the straight-line method over the estimated useful lives of the assets as follows: Buildings 30 - 50 years Machinery 5 – Software 3 – Vehicles 5 – Electronic and other equipment 3 – |
Schedule of estimated useful lives for the intangible assets | The estimated useful lives for the intangible assets are as follows: Category Estimated useful life Patents and copyrights 5 – |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Components of inventories are as follows: June 30, 2022 2023 Raw materials $ 53,304 $ 56,354 Work in progress 16,026 26,545 Finished goods 21,913 28,735 $ 91,243 $ 111,634 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Account receivable | June 30, 2022 2023 Notes receivable $ 68,953 $ 38,046 Accounts receivable 326,413 344,785 Allowance for credit losses (77,603 ) (73,009 ) $ 317,763 $ 309,822 |
Schedule of Movements in allowance for credit losses | The movements in allowance for credit losses are as follows: June 30, 2021 2022 2023 Balance at the beginning of year $ 41,618 $ 66,839 $ 77,603 Adoption of ASU 2016-13 16,284 — — Additions 7,749 15,972 5,191 Written off (3,965 ) (3,852 ) (4,587 ) Translation adjustment 5,153 (1,356 ) (5,198 ) Balance at the end of year $ 66,839 $ 77,603 $ 73,009 |
COSTS AND ESTIMATED EARNINGS _2
COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS | |
Schedule of Costs in Excess of Billings | June 30, 2022 2023 Contract costs incurred plus estimated earnings $ 1,072,872 $ 1,196,127 Less: Progress billings (831,817 ) (928,427 ) Cost and estimated earnings in excess of billings 241,055 267,700 Less: Allowance for credit losses (12,178 ) (14,438 ) $ 228,877 $ 253,262 |
Schedule of Allowance For Credit Losses Of Costs And Estimated Earnings In Excess Of Billings | The movements in allowance for credit losses are as follows: June 30, 2021 2022 2023 Balance at the beginning of year $ 6,150 $ 11,835 $ 12,178 Adoption of ASU 2016-13 3,111 — — Additions (reversals) 1,758 209 3,043 Translation adjustments 816 134 (783 ) Balance at the end of year $ 11,835 $ 12,178 $ 14,438 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Summary of disaggregated revenue information | The following table present disaggregated revenue information: Year ended June 30, 2023 PRC Non-PRC Total Integrated solutions contracts revenue $ 547,557 84,543 632,100 Product sales 44,408 3,016 47,424 Maintenance service revenue 94,095 — 94,095 Extended warranty service revenue 3,754 — 3,754 Total $ 689,814 87,559 777,373 |
Summary of contract assets and contract liabilities | Contract assets and contract liabilities are summarized below: June 30, 2022 June 30, 2023 Contract assets, current $ 235,712 261,752 Contract assets, non-current 9,582 8,333 Contract liabilities 208,636 182,995 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
PROPERTY, PLANT AND EQUIPMENT | |
Summary of property, plant and equipment | A summary of property, plant and equipment is as follows: June 30, 2022 2023 Buildings $ 70,944 $ 66,681 Machinery 15,619 14,487 Software 20,293 19,943 Vehicles 4,717 4,822 Electronic and other equipment 45,512 41,426 Construction in progress 27,213 69,745 $ 184,298 $ 217,104 Less: Accumulated depreciation and impairment (86,049 ) (82,478 ) $ 98,249 $ 134,626 |
Schedule of Assets leased to others under operating leases | The Company has entered into operating lease contracts related to certain buildings owned with carrying amounts as shown below: June 30, 2022 2023 Buildings leased to others – $ 22,664 $ 20,898 Less: Accumulated depreciation (8,044 ) (7,886 ) Buildings leased to others – $ 14,620 $ 13,012 |
PREPAID LAND LEASES (Tables)
PREPAID LAND LEASES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
PREPAID LAND LEASES | |
Summary of prepaid land leases | A summary of prepaid land leases is as follows: June 30, 2022 2023 Prepaid land leases $ 16,146 $ 15,222 Less: Accumulated amortization (3,699 ) (3,719 ) $ 12,447 $ 11,503 |
Schedule of Annual amortization of prepaid land leases | The annual amortization of prepaid land leases for each of the five succeeding years is as follows: Year ending June 30, 2024 $ 331 2025 331 2026 331 2027 331 2028 331 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
INTANGIBLE ASSETS, NET | |
Schedule of Finite-Lived Intangible Assets | June 30, 2022 2023 Gross Accumulated Net Gross Accumulated Net Patents and copyrights $ 14,204 (3,462 ) 10,742 $ 13,097 (4,614 ) 8,483 |
Schedule of Annual amortization expense relating to the existing intangible assets | The annual amortization expense relating to the existing intangible assets for the five succeeding years is as follow: Year ending June 30, 2024 $ 1,329 2025 1,166 2026 1,040 2027 1,040 2028 1,040 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
GOODWILL | |
Schedule of changes in the carrying amount of goodwill | Balance as of July 1, 2021 $ 1,598 Goodwill upon acquisition 19,697 Translation adjustment (756 ) Balance as of June 30, 2022 $ 20,539 Translation adjustment (1,600 ) Balance as of June 30, 2023 $ 18,939 |
EQUITY INVESTMENTS (Tables)
EQUITY INVESTMENTS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
EQUITY INVESTMENTS | |
Schedule of long-term investments | The following long-term investments were accounted for under the equity method as of June 30, 2022 and 2023 as indicated: June 30, 2022 Interest Long-term Share of Disposal Advance Total Equity method Beijing Hollycon Medicine & Technology Co., Ltd. 30.00 % $ 8,609 5,544 — — 14,153 Beijing Hollysys Electric Motor Co., Ltd. 40.00 % 791 6,893 — — 7,684 Suqian Runhe Emerging Industry Investment Center (limited partnership) 29.97 % 9,410 (168 ) — — 9,242 China Techenergy Co., Ltd. 40.00 % — 13,751 — — 13,751 Hollicube Co., Ltd. 40.00 % 4,215 (4,215 ) — — — Hunan LingXiang Maglev Technology Co., Ltd. 17.67 % 1,494 (136 ) (1,358 ) — — Beijing AIRmaker Technology Co., Ltd. 20.00 % 149 (18 ) — — 131 Southcon Development Sdn Bhd. 30.00 % 211 (111 ) — — 100 Beijing Hollysys Machine Automation Co., Ltd. 30.00 % 448 (448 ) — — — Beijing Jing Yi Intelligent Technologies Innovation Center Co., Ltd. 46.00 % — — — — — Beijing Hollysys Digital Technology Co., Ltd. 25.00 % 1,437 (1,036 ) — — 401 Shandong MassDatas Development Co., Ltd. 20.00 % 1,195 (76 ) — — 1,119 27,959 19,980 (1,358 ) — 46,581 June 30, 2023 Interest Long-term Share of Disposal Advance Total Equity method Beijing Hollycon Medicine & Technology Co., Ltd. 30.00 % $ 7,938 3,185 — — 11,123 Beijing Hollysys Electric Motor Co., Ltd. 40.00 % 729 6,726 — — 7,455 Suqian Runhe Emerging Industry Investment Center (limited partnership) 29.97 % 8,677 (163 ) — — 8,514 China Techenergy Co., Ltd. 40.00 % — 17,362 — — 17,362 Hollicube Co., Ltd. 38.10 % 3,887 (3,887 ) — — — Beijing AIRmaker Technology Co., Ltd. 20.00 % 138 (23 ) — — 115 Southcon Development Sdn Bhd. 30.00 % 217 (122 ) — — 95 Beijing Hollysys Machine Automation Co., Ltd. 30.00 % 413 (413 ) — — — Beijing Jing Yi Intelligent Technologies Innovation Center Co., Ltd. 46.00 % — — — — — Beijing Hollysys Digital Technology Co., Ltd. 25.00 % 1,325 (833 ) — — 492 Shandong MassDatas Development Co., Ltd. 20.00 % 2,755 (308 ) — — 2,447 26,079 21,524 — — 47,603 |
WARRANTY LIABILITIES (Tables)
WARRANTY LIABILITIES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
WARRANTY LIABILITIES | |
Schedule of Warranty Liability | June 30, 2022 2023 Beginning balance $ 9,551 $ 5,002 Consolidation of subsidiary 145 — Expense accrued 2,595 5,446 Expense incurred (7,064 ) (4,264 ) Translation adjustment (225 ) (378 ) $ 5,002 $ 5,806 Less: Current portion of warranty liabilities (3,280 ) (3,238 ) Long-term $ 1,722 $ 2,568 |
LONG-TERM LOANS (Tables)
LONG-TERM LOANS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
LONG-TERM LOANS | |
Schedule Of Debt Instruments | June 30, 2022 2023 MYR denominated loans (i) 596 741 SGD denominated loans (ii) 113 44 USD denominated loan (iii) 14,935 15,000 RMB denominated loan (iv) — 16,221 $ 15,644 $ 32,006 Less: Current portion (15,210 ) (15,231 ) $ 434 $ 16,775 |
Schedule of principal and interest payments for all outstanding long-term loans | Scheduled principal payment Year ending June 30, 2024 $ 15,231 2025 1,178 2026 2,170 2027 2,202 2028 onwards 11,225 $ 32,006 |
SHARE-BASED COMPENSATION EXPE_2
SHARE-BASED COMPENSATION EXPENSES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of share option activity | A summary of the share option activity for the years ended June 30, 2022 and 2023 is as shown below: Share Options Number of Weighted Weighted average Aggregate Outstanding, vested and exercisable at June 30, 2021 568,500 11.85 9.66 1,734 Forfeited (12,250 ) — — — Outstanding, vested and exercisable at June 30, 2022 556,250 11.85 8.66 1,641 Forfeited (525 ) — — — Outstanding, vested and exercisable at June 30, 2023 555,725 11.85 7.66 3,190 |
Schedule Of Fair Value Assumptions Related To Stock Options | The fair value of each option is estimated on the date of grant using the Binomial model by applying the assumptions below: Options Granted on November 16, 2020 Options Granted on March 17, 2021 Risk-free interest rate(i) 0.91 % 1.62 % Expected dividend yield(ii) 2.21 % 1.83 % Expected life (years)(iii) 10 Years 9.66 Years Expected volatility(iv) 46.98 % 47.35 % (i) Risk-free interest rate is based on the yields of United States Treasury securities with maturities similar to the expected life of the share options in effect at the time of grant. (ii) Expected dividend yield is assumed to be a $0.15 dividend payout. (iii) Expected life of share options is based on management’s estimate on timing of exercise of share options. (iv) Expected volatility is assumed based on the historical volatility of the Company and the Company’s comparable companies in the period equal to the expected life of each grant. |
Schedule of summary of the restricted share activity | A summary of the restricted share activity for the year ended June 30, 2022 and 2023 is as follows: Number of restricted shares Weighted average grant-date fair value Un-vested 1,320,337 11.85 Forfeited (28,586 ) 11.85 Vested (588,710 ) 11.85 Un-vested 703,041 11.85 Forfeited (1,222 ) 11.85 Vested (473,487 ) 11.85 Un-vested 228,332 11.85 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income tax | The Company’s income before income taxes consists of: Year ended June 30, 2021 2022 2023 PRC $ 137,520 $ 116,210 $ 126,191 Non-PRC (27,628 ) (16,583 ) (7,729 ) $ 109,892 $ 99,627 $ 118,462 |
Schedule of Income tax expense | Income tax expense, most of which is incurred in the PRC, consists of: Year ended June 30, 2021 2022 2023 Current income tax expense PRC 25,634 11,839 19,269 Non-PRC 758 616 123 $ 26,392 $ 12,455 $ 19,392 Deferred income tax expense (benefit) PRC (7,971 ) 7,150 (7,560 ) Non-PRC 2,133 (2,971 ) (442 ) $ (5,838 ) 4,179 (8,002 ) $ 20,554 $ 16,634 $ 11,390 |
Schedule of Reconciliation of the income tax expenses | Reconciliation of the income tax expenses as computed by applying the PRC statutory tax rate of 25% to income before income taxes and the actual income tax expenses is as follows: Year ended June 30, 2021 2022 2023 Income before income taxes $ 109,892 $ 99,627 $ 118,462 Expected income tax expense at statutory tax rate in the PRC 33,221 24,998 29,614 Effect of different tax rates in various jurisdictions 4,665 3,541 1,567 Effect of preferential tax treatment (14,334 ) (12,707 ) (15,228 ) Effect of non-taxable (4,770 ) (74 ) (1,919 ) Effect of additional deductible research and development expenses (9,838 ) (9,398 ) (8,909 ) Effect of non-deductible 6,644 4,020 6,417 Under (over) provision of income tax in previous years 2,102 1,419 (2,322 ) Change in valuation allowance 1,718 2,124 3,005 Withholding tax on dividends paid by subsidiaries — 3,692 — Others 1,146 (981 ) (835 ) Total $ 20,554 $ 16,634 $ 11,390 |
Schedule of deferred tax assets/liabilities | The breakdown of deferred tax assets/liabilities caused by the temporary differences and net operating loss carryforwards is shown as below: June 30, 2022 2023 Deferred tax assets Allowance for doubtful accounts $ 12,932 $ 12,222 Deferred subsidies 845 1,068 Warranty liabilities 773 727 Inventory provision 555 91 Long-term assets 591 168 Deferred revenue 373 — Provision for loss contracts 1,699 2,256 Net operating loss carry forward 20,351 21,703 Valuation allowance (19,554 ) (21,703 ) Others — 3,552 Total deferred tax assets $ 18,565 $ 20,084 Deferred tax liabilities Property, plant and equipment $ (645 ) $ (621 ) Costs and estimated earnings in excess of billings (10,079 ) (7,470 ) Share of net losses of equity investees (1,798 ) (1,617 ) PRC dividend withholding tax (5,198 ) (4,898 ) Intangible assets and other non-current (7,390 ) (4,966 ) Others (1,881 ) (1,644 ) Total deferred tax liabilities $ (26,991 ) $ (21,216 ) |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Lessee, Operating Lease, Description [Abstract] | |
Schedule of lease and non-lease components | The Company’s leases do not contain restrictions or covenants that restrict the Company from incurring other financial obligations. Year ended June 30, 2021 2022 2023 Operating lease costs $ 2,324 $ 3,484 $ 3,301 Short-term lease costs 1,000 191 810 Amortization of prepaid land leases 454 382 331 Total lease costs $ 3,778 $ 4,057 $ 4,442 |
Schedule of other information related to operating leases | Other information Year ended June 30, 2021 2022 2023 Cash paid for amounts included in the measurement of operating lease liabilities $ 4,045 $ 3,810 $ 4,448 Right-of-use assets obtained in exchange for new operating 3,011 1,554 2,429 Weighted-average remaining lease term (in years): Operating leases 1.97 1.83 2.44 Weighted-average discount rate: Operating leases 4.17 % 3.05 % 3.94 % |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments for operating leases as of June 30, 2023 are as follows: As of June 30, 2024 $ 2,494 2025 787 2026 420 2027 130 2028 107 Total minimum lease payments 3,938 Less: imputed interest 948 Total lease liability balance $ 2,990 |
Schedule of Operating Lease Payments | Future minimum lease payments to be received for these operating lease arrangements for each of the five succeeding fiscal years and thereafter as of June 30, 2023 are as follows: Fiscal year ending June 30, Minimum lease payments 202 4 $ 1,948 202 5 1,727 202 6 1,779 202 7 1,833 202 8 1,888 Thereafter 9,571 Total minimum lease payments to be received $ 18,746 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of the computation of basic and diluted net earnings per share | The following table sets forth the computation of basic and diluted net earnings per share attributable to the Company’s common shareholders for the years indicated: Year ended June 30, 2021 2022 2023 Numerator: Net income attributable to the Company as reported $ 89,709 $ 83,182 $ 106,931 Net income attributable to common stockholders – basic $ 89,709 $ 83,182 $ 106,931 Net income attributable to common stockholders – diluted $ 89,709 $ 83,182 $ 106,931 Denominator: Weighted average ordinary shares outstanding used in computing basic earnings per share(i) 60,566,709 61,007,806 61,521,412 Effect of dilutive securities Share options — 65,337 148,449 Restricted shares 947,040 495,333 364,539 Weighted average ordinary shares outstanding used in computing diluted earnings per share 61,513,749 61,568,476 62,034,400 Earnings per share – basic $ 1.48 1.36 1.74 Earnings per share – diluted $ 1.46 1.35 1.72 (i) Vested and unissued restricted shares of 15,000, 15,000 and 15,000 shares are included in the computation of basic and diluted earnings per share for the years ended June 30, 2021, 2022 and 2023, respectively. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule Of Amount Due From Related Parties | Due from related parties June 30, 2022 2023 China Techenergy $ 17,529 $ 16,281 Hollycon 15,066 13,984 Ningbo Hollysys 286 558 Beijing Digital 257 5 Others — 2 Allowance for credit losses (5,778 ) (4,924 ) $ 27,360 $ 25,906 |
Schedule Of Amount Due To Related Parties | Due to related parties June 30, 2022 2023 Ningbo Hollysys $ 4,285 $ 3,869 China Techenergy 2,012 2,112 Hollycon 1 163 Others 1 11 $ 6,299 $ 6,155 |
Schedule of Related Party Transactions | Purchases of goods and services from: Year ended June 30, 2021 2022 2023 Ningbo Hollysys (i) $ 3,051 $ 1,164 $ 1,823 Hollycon 7 569 143 $ 3,058 $ 1,733 $ 1,966 (i) The Company purchases products from Ningbo Hollysys which are used to provide an integrated automation and control system to its customers. Sales of goods and integrated solutions to: Year ended June 30, 2021 2022 2023 China Techenergy (i) $ 8,458 $ 5,118 $ 12,207 Ningbo Hollysys (ii) 308 967 2,396 Hollycon (ii) 866 221 177 $ 9,632 $ 6,306 $ 14,780 (i) The Company sells automation control systems to China Techenergy which is used for non-safety non-safety (ii) The Company sells products to Hollycon and Ningbo Hollysys, which incorporate the Company’s product with their automated systems to provide an integrated automation and control system to their 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 Hollycon and Ningbo Hollysys are consolidated subsidiaries. Other income from: Year ended June 30, 2021 2022 2023 Ningbo Hollysys (i) $ 2,281 $ 133 $ 669 Hollycon (ii) 460 2,443 1,170 Beijing Digital — 254 45 Others — — 7 $ 2,741 $ 2,830 $ 1,891 (i) The Company entered into an operating lease agreement with Ningbo Hollysys to lease part of a building in Beijing. The lease term is for one year from the commencement date of January 1, 202 3 3 (ii) The Company entered into an operating lease agreement with Hollycon to lease part of building located in Beijing. The lease term is for one year from the commencement date of January 1, 202 3 3 Research and development: Year ended June 30, 2021 2022 2023 Ningbo Hollysys (i) $ 212 $ 208 $ 144 (i) The Company purchases research and development services from Ningbo Hollysys for research and development projects in the field of intelligent manufacturing. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of purchase obligation | Years ending June 30, Minimum payments 2024 $ 196,154 2025 43,924 2026 45,050 2027 17,909 2028 and onwards 44,929 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Reconciliation of revenue from segments to consolidated | Summarized information by segments for the years ended June 30, 2021, 2022, and 2023 is as follows: 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 — 28,667 Maintenance service revenue 21,402 79,874 46 101,322 Extended warranty service revenue 1,772 1,525 — 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, 2022 IA Rail M&E Consolidated Revenues from external customers Integrated solutions contracts revenue $ 380,516 109,342 83,709 573,567 Product sales 31,559 6,927 — 38,486 Maintenance service revenue 26,725 64,492 50 91,267 Extended warranty service revenue 1,118 3,024 — 4,142 Total 439,918 183,785 83,759 707,462 Costs of revenue 294,642 98,150 75,313 468,105 Gross profit $ 145,276 85,635 8,446 239,357 Year ended June 30, 2023 IA Rail M&E Consolidated Revenues from external customers Integrated solutions contracts revenue $ 438,863 111,331 81,906 632,100 Product sales 41,987 5,437 — 47,424 Maintenance service revenue 24,045 70,050 — 94,095 Extended warranty service revenue 1,405 2,349 — 3,754 Total 506,300 189,167 81,906 777,373 Costs of revenue 353,380 92,775 75,733 521,888 Gross profit $ 152,920 96,392 6,173 255,485 |
Schedule of Revenues by geographical area | The majority of the Company’s revenues and long-lived assets other than goodwill and intangible assets are derived from and located in the PRC. The following table sets forth the revenues by geographical area: Year ended June 30, 2021 2022 2023 Revenues: PRC $ 518,170 $ 614,903 $ 689,814 Non-PRC 75,296 92,559 87,559 $ 593,466 $ 707,462 $ 777,373 |
Schedule of long-lived assets other than goodwill and intangible assets by geographical area | The following table sets forth the long-lived assets other than goodwill and intangible assets by geographical area: June 30, 2022 2023 Long-lived assets other than goodwill and acquired intangible assets PRC $ 159,598 $ 194,136 Non-PRC 10,114 9,640 $ 169,712 $ 203,776 |
ACQUISITION OF SUBSIDIARY (Tabl
ACQUISITION OF SUBSIDIARY (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Business Combinations [Abstract] | |
Schedule of excess purchase price over the fair value of net assets acquired | The following represents the summary of the excess purchase price over the fair value of net assets acquired: Purchase price $ 20,908 Less: Final fair value of net assets acquired 1,211 Excess purchase price over fair value of net assets acquired 19,697 |
Schedule of recognized identified assets acquired and liabilities assumed | The following table summarizes the final fair values assigned to the identified assets acquired and liabilities assumed: Assets Acquired: Cash and cash equivalents $ 3,018 Restricted cash 1 Accounts receivable, net 8,776 Cost and estimated earnings in excess of billings, net 2,499 Other receivables, net 1,221 Advances to suppliers 667 Inventories, net 6,513 Income tax recoverable 25 Property, plant and equipment, net 2,886 Operating lease right-of-use 3 Intangible assets, net 11,245 Investments in equity investees 1,490 Total assets acquired 38,344 Liabilities Assumed: Accounts payable 11,553 Deferred revenue 9,803 Accrued payroll and related expenses 1,018 Warranty liabilities 145 Accrued liabilities 14,614 Total liabilities assumed 37,133 Fair Value of Net Assets Acquired $ 1,211 |
summary of the value allocated to the intangible assets acquired | In connection with the Hollysys Intelligent Acquisition, below is a summary of the value allocated to the intangible assets acquired: June 30, 2022 June 30, 2023 Asset Class Amortization Amount Accumulated Net Accumulated Net Intangible assets 10 Years $ 11,245 $ (1,394 ) $ 9,851 $ (1,767 ) $ 8,084 |
CONDENSED FINANCIAL INFORMATI_2
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed balance sheet | The following represents condensed unconsolidated financial information of the parent company only: CONDENSED BALANCE SHEETS June 30, 2022 2023 ASSETS Current assets: Cash and cash equivalents $ 7,500 $ 3,190 Amounts due from subsidiaries 53,503 53,503 Prepaid expenses 202 262 Total current assets 61,205 56,955 Investment in subsidiaries 1,276,497 1,288,395 Total assets $ 1,337,702 $ 1,345,350 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accrued liabilities 98 — Amounts due to subsidiaries 172,317 170,141 Total liabilities 172,415 170,141 Equity: Ordinary shares, par value $0.001 per share, 100,000,000 shares authorized; 62,021,930 shares issued and 2 3 62 62 Additional paid-in 243,476 246,908 Retained earnings 934,404 1,040,657 Accumulated other comprehensive loss (12,655 ) (112,418 ) Total equity 1,165,287 1,175,209 Total liabilities and equity $ 1,337,702 $ 1,345,350 |
Schedule of condensed statement of comprehensive income | CONDENSED STATEMENTS OF COMPREHENSIVE INCOME Year Ended June 30, 2021 2022 2023 General and administrative expenses $ 21,090 $ 17,223 $ 7,219 Loss from operations (21,090 ) (17,223 ) (7,219 ) Interest income 117 — 14 Foreign exchange gains 1,532 197 1,409 Share of net income of subsidiaries $ 109,150 $ 100,208 $ 112,727 Income before income taxes 89,709 83,182 106,931 Income tax expenses — — — Net income 89,709 83,182 106,931 Other comprehensive income, net of tax of nil Translation adjustment 96,331 (45,469 ) (99,763 ) Comprehensive income $ 186,040 $ 37,713 $ 7,168 |
Schedule of condensed statement of cash flows | CONDENSED STATEMENTS OF CASH FLOWS Year ended June 30, 2021 2022 2023 Cash flows from operating activities: Net income $ 89,709 $ 83,182 $ 106,931 Adjustments to reconcile net income to net cash used in operating activities: Share of net income of subsidiaries (109,150 ) (100,208 ) (112,727 ) Share-based compensation expenses 9,724 9,709 3,286 Change in operating assets and liabilities 5,065 26,820 (1,800 ) Net cash (used in) provided by operating activities $ (4,652 ) $ 19,503 $ (4,310 ) Cash flows from investing activities: Maturity of short-term investments 11,318 — — Net cash provided by investing activities $ 11,318 $ — $ — Cash flows from financing activities: Payment of dividends (12,107 ) (19,827 ) — Net cash used in financing activities $ (12,107 ) $ (19,827 ) $ — Net decrease in cash and cash equivalents $ (5,441 ) $ (324 ) $ (4,310 ) Cash and cash equivalents, beginning of period 13,265 7,824 7,500 Cash and cash equivalents, end of period $ 7,824 $ 7,500 $ 3,190 |
ORGANIZATION AND BUSINESS BAC_3
ORGANIZATION AND BUSINESS BACKGROUND (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Equity Method Investment Summarized Financial Information [Line Items] | ||||
Current assets | $ 1,424,935 | $ 1,462,567 | ||
Non-current assets | 259,913 | 209,206 | ||
Total assets | 1,684,848 | 1,671,773 | ||
Current liabilities | 470,145 | 484,556 | ||
Total liabilities | 508,615 | 505,945 | ||
Net revenue | 777,373 | 707,462 | $ 593,466 | |
Net profit | 107,072 | 82,993 | 89,338 | |
Net cash used in operating activities | 23,177 | 54,526 | $ 79,283 | |
Variable Interest Entity (VIE) or Potential VIE, Information Unavailability [Member] | ||||
Equity Method Investment Summarized Financial Information [Line Items] | ||||
Current assets | 3,149 | 3,391 | ||
Non-current assets | 0 | 6 | ||
Total assets | 3,149 | 3,397 | ||
Current liabilities | 586 | 1,547 | ||
Total liabilities | 586 | 1,547 | ||
Net revenue | 0 | 7 | ||
Cost of revenue | [1] | (792) | (1,474) | |
Net profit | 792 | 1,481 | ||
Net cash used in operating activities | $ (319) | $ (323) | ||
[1]Cost of revenue is negative because of the reversal of warranties provision which was overprovided in previous years. |
ORGANIZATION AND BUSINESS BAC_4
ORGANIZATION AND BUSINESS BACKGROUND - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jul. 31, 2017 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Current portion of other liability | $ 0 | $ 3 | |
Percentage Of Variable ReturnsLoss attributable to CCPL | 99% | ||
Related Party [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Due from Related Parties | $ 25,906 | 27,360 | |
Series of Individually Immaterial Business Acquisitions [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Business Acquisition, Equity Interest Issued or Issuable, Description | In November 2015, Concord Electrical Contracting Ltd., (“CECL”) was established in Doha, Qatar, by Concord Corporation Pte. Ltd. (“CCPL”), a wholly-owned subsidiary of the Company incorporated under the laws of Singapore, and a Qatar citizen as a nominee shareholder, with 49% and 51% of equity interest in CECL, respectively. | ||
Subsidiaries [Member] | Related Party [Member] | Affiliated Entity [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Current portion of other liability | $ 328 | 325 | |
Due from Related Parties | $ 2,475 | $ 2,403 | |
Bond M E Sdn Bhd [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 100% | ||
Bond Corporation Pte Ltd [Member] | Bond M E Sdn Bhd [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Equity Method Investment, Ownership Percentage | 49.10% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, plant and equipment, net (Details) | Jun. 30, 2023 |
Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 30 years |
Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 50 years |
Machinery [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Machinery [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Computer Software, Intangible Asset [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Computer Software, Intangible Asset [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Electronic and Other Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Electronic and Other Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible assets, net (Details) - Patents And Copyrights [Member] | Jun. 30, 2022 |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accounting Policies [Line Items] | |||
Percentage Of Recognized Contractual Revenue | 100% | ||
Effective Value Added Tax Rate | 13% | ||
Percentage Of Value Added Tax Refunded | 3% | ||
Percentage Of After Tax Income Transferred To Statutory Reserved | 10% | ||
Government Grants Received | $ 3,416 | $ 4,987 | $ 3,934 |
Revenue from Grants | $ 777,373 | 707,462 | 593,466 |
Integrated Solutions Contracts Range Minimum | 6 months | ||
Integrated Solutions Contracts Range Maximum | 5 years | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | $ (99,763) | $ (45,469) | $ 96,331 |
Decreased Net Income Per Share Basic | $ 0.37 | $ 0.47 | $ 0.22 |
Decreased Net Income Per Share diluted | $ 0.36 | $ 0.46 | $ 0.22 |
Decreased Net Income | $ 22,516 | $ 28,473 | $ 13,528 |
Percentage of currency depreciation or appreciation | 8.45% | 3.65% | 8.62% |
Statutory Reserve Balance Of Registered Capital | 50% | ||
Decreased in net income | $ 5,771 | $ 7,450 | $ 9,735 |
Decreased net income per share basic | $ 0.09 | $ 0.12 | $ 0.16 |
Decreased net income per share diluted | $ 0.09 | $ 0.12 | $ 0.16 |
Accrued Liabilities Current [Member] | |||
Accounting Policies [Line Items] | |||
Deferred government grants current | $ 10,279 | $ 13,636 | |
Grant [Member] | |||
Accounting Policies [Line Items] | |||
Revenue from Grants | 6,203 | 7,911 | $ 9,192 |
Service [Member] | |||
Accounting Policies [Line Items] | |||
Revenue from Grants | 97,849 | 95,409 | $ 104,619 |
Malaysia [Member] | |||
Accounting Policies [Line Items] | |||
Deposits Assets | 6,774 | 7,893 | |
Singapore [Member] | |||
Accounting Policies [Line Items] | |||
Deposits Assets | 1,490 | 4,310 | |
PRC [Member] | |||
Accounting Policies [Line Items] | |||
Deposits Assets | $ 24,938 | $ 0 | |
Dubai And Qatar [Member] | |||
Accounting Policies [Line Items] | |||
Percentage Of After Tax Income Transferred To Statutory Reserved | 10% | ||
Statutory Reserve Balance Of Registered Capital | 50% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Service [Member] | |||
Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 10% | 10% | |
Minimum [Member] | |||
Accounting Policies [Line Items] | |||
Contract Period | 6 months | ||
Minimum [Member] | Investments in Equity Investees and Equity Securities [Member] | |||
Accounting Policies [Line Items] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 20% | ||
Minimum [Member] | Use Rights [Member] | |||
Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 49 years | ||
Maximum [Member] | |||
Accounting Policies [Line Items] | |||
Contract Period | 3 years | ||
Maximum [Member] | Investments in Equity Investees and Equity Securities [Member] | |||
Accounting Policies [Line Items] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 50% | ||
Maximum [Member] | Use Rights [Member] | |||
Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 88 years |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Inventory [Line Items] | ||
Raw materials | $ 56,354 | $ 53,304 |
Work in progress | 26,545 | 16,026 |
Finished goods | 28,735 | 21,913 |
Inventories | $ 111,634 | $ 91,243 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Receivables [Abstract] | ||
Notes receivable | $ 38,046 | $ 68,953 |
Accounts receivable | 344,785 | 326,413 |
Allowance for credit losses | (73,009) | (77,603) |
Accounts receivable and Notes receivable, net | $ 309,822 | $ 317,763 |
ACCOUNTS RECEIVABLE - Allowance
ACCOUNTS RECEIVABLE - Allowance For Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Receivables [Abstract] | |||
Balance at the beginning of year | $ 77,603 | $ 66,839 | $ 41,618 |
Adoption of ASU 2016-13 | 0 | 0 | 16,284 |
Additions | 5,191 | 15,972 | 7,749 |
Written off | (4,587) | (3,852) | (3,965) |
Translation adjustment | (5,198) | (1,356) | 5,153 |
Balance at the end of year | $ 73,009 | $ 77,603 | $ 66,839 |
COSTS AND ESTIMATED EARNINGS _3
COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS | ||||
Contracts costs incurred plus estimated earnings | $ 1,196,127 | $ 1,072,872 | ||
Less: Progress billings | (928,427) | (831,817) | ||
Cost and estimated earnings in excess of billings | 267,700 | 241,055 | ||
Less: Allowance for credit losses | (14,438) | (12,178) | $ (11,835) | $ (6,150) |
Cost and estimated earnings in excess of billings, Total | $ 253,262 | $ 228,877 |
COSTS AND ESTIMATED EARNINGS _4
COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS - Movements in Allowance For Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS | |||
Balance at the beginning of year | $ 12,178 | $ 11,835 | $ 6,150 |
Adoption of ASU 2016-13 | 0 | 0 | 3,111 |
Additions (reversals) | 3,043 | 209 | 1,758 |
Translation adjustments | (783) | 134 | 816 |
Balance at the end of year | $ 14,438 | $ 12,178 | $ 11,835 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Additional Information (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2023 USD ($) | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Unsatisfied (or partially unsatisfied) performance obligations in contracts with its customers | $ 909.5 |
Period over which the entity expects to recognize the majority of its remaining performance obligations as revenue | 3 years |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregated Revenue Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from Related Parties | $ 777,373 | $ 707,462 | $ 593,466 |
PRC [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Related Parties | 689,814 | 614,903 | 518,170 |
Non-PRC [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Related Parties | 87,559 | $ 92,559 | $ 75,296 |
Integrated solutions contracts revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Related Parties | 632,100 | ||
Integrated solutions contracts revenue | PRC [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Related Parties | 547,557 | ||
Integrated solutions contracts revenue | Non-PRC [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Related Parties | 84,543 | ||
Product [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Related Parties | 47,424 | ||
Product [Member] | PRC [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Related Parties | 44,408 | ||
Product [Member] | Non-PRC [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Related Parties | 3,016 | ||
Maintenance [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Related Parties | 94,095 | ||
Maintenance [Member] | PRC [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Related Parties | 94,095 | ||
Maintenance [Member] | Non-PRC [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Related Parties | 0 | ||
Extended Warranty Service Revenue [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Related Parties | 3,754 | ||
Extended Warranty Service Revenue [Member] | PRC [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Related Parties | $ 3,754 |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS - Contract assets and contract liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2023 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||
Revenue recognized which was previously deferred | $ 123,037 | |
Contract assets and contract liabilities | ||
Contract assets, current | 235,712 | $ 261,752 |
Contract assets, non-current | 9,582 | 8,333 |
Contract liabilities | $ 208,636 | $ 182,995 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 217,104 | $ 184,298 |
Less: Accumulated depreciation and impairment | (82,478) | (86,049) |
Property, plant and equipment, net | 134,626 | 98,249 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 66,681 | 70,944 |
Machinery [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 14,487 | 15,619 |
Computer Software, Intangible Asset [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 19,943 | 20,293 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 4,822 | 4,717 |
Electronic and Other Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 41,426 | 45,512 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 69,745 | $ 27,213 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Assets leased to others under operating leases (Details) - Assets Leased To Other [Member] - Buildings [Member] - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Property Subject to or Available for Operating Lease [Line Items] | ||
Buildings leased to others - at original cost | $ 20,898 | $ 22,664 |
Less: accumulated depreciation | (7,886) | (8,044) |
Buildings leased to others - net | $ 13,012 | $ 14,620 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
PROPERTY, PLANT AND EQUIPMENT | |||
Depreciation, Depletion and Amortization | $ 8,612 | $ 10,263 | $ 9,959 |
Property Plant And Equipment Pledged For Long Term Loans | 65,770 | 1,056 | |
Property Plant And Equipment Pledged For Line Of Credit | $ 68,341 | $ 2,687 |
PREPAID LAND LEASES (Details)
PREPAID LAND LEASES (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
PREPAID LAND LEASES | ||
Prepaid land leases | $ 15,222 | $ 16,146 |
Less: Accumulated amortization | (3,719) | (3,699) |
Deferred Costs, Leasing, Net | $ 11,503 | $ 12,447 |
PREPAID LAND LEASES - Annual Am
PREPAID LAND LEASES - Annual Amortization Of Prepaid Land Leases (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
PREPAID LAND LEASES | |
2024 | $ 331 |
2025 | 331 |
2026 | 331 |
2027 | 331 |
2028 | $ 331 |
PREPAID LAND LEASES - Additiona
PREPAID LAND LEASES - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
PREPAID LAND LEASES [Line Items] | |||
Amortization of Deferred Leasing Fees | $ 331 | $ 382 | $ 454 |
Lease Agreements [Member] | Secured Debt [Member] | |||
PREPAID LAND LEASES [Line Items] | |||
Assets pledged as collateral | 3,166 | ||
Lease Agreements [Member] | Line of Credit [Member] | |||
PREPAID LAND LEASES [Line Items] | |||
Assets pledged as collateral | $ 3,166 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) - Patents and copyrights [Member] - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | $ 13,097 | $ 14,204 |
Accumulated amortization | (4,614) | (3,462) |
Net carrying value | $ 8,483 | $ 10,742 |
INTANGIBLE ASSETS, NET - Annual
INTANGIBLE ASSETS, NET - Annual Amortization Expense Of Intangible Assets (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
INTANGIBLE ASSETS, NET | |
2024 | $ 1,329 |
2025 | 1,166 |
2026 | 1,040 |
2027 | 1,040 |
2028 | $ 1,040 |
INTANGIBLE ASSETS, NET - Additi
INTANGIBLE ASSETS, NET - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Intangible Assets Net Excluding Goodwill [Line Items] | |||
Amortization of Intangible Assets | $ 1,342 | $ 1,356 | $ 316 |
Hollysys Industrial Software [Member] | Patents And Copyrights [Member] | |||
Intangible Assets Net Excluding Goodwill [Line Items] | |||
Amortization of Intangible Assets | $ 1,342 | $ 1,356 | $ 316 |
GOODWILL - Changes in the carry
GOODWILL - Changes in the carrying amount (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill [Line Items] | ||
Balance at beginning of year | $ 20,539 | $ 1,598 |
Goodwill upon acquisition | 19,697 | |
Translation adjustment | (1,600) | (756) |
Balance at the end of year | $ 18,939 | $ 20,539 |
GOODWILL - Additional Informati
GOODWILL - Additional Information (Details) - Hollysis Intelligent [Member] $ in Thousands | 12 Months Ended |
Jun. 30, 2023 USD ($) | |
Goodwill [Line Items] | |
Goodwill before impairment charges | $ 19,697 |
Reporting unit, percentage of fair value of reporting unit | 11.45% |
Decrease in fair value of reporting unit | $ 2,188 |
Increase in fair value of reporting unit | $ 2,615 |
EQUITY INVESTMENTS - Long Term
EQUITY INVESTMENTS - Long Term Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule Of Equity And Cost Method Investments [Line Items] | ||
Total | $ 47,603 | $ 46,581 |
Suqian Runhe Emerging Industry Investment Center (limited partnership) [Member] | ||
Schedule Of Equity And Cost Method Investments [Line Items] | ||
Interest held (in percentage) | 29.97% | 29.97% |
Long-term investment, at cost, less impairment | $ 8,677 | $ 9,410 |
Share of undistributed profits (accumulated) | (163) | (168) |
Disposal | 0 | 0 |
Advance to investee company | 0 | 0 |
Total | $ 8,514 | 9,242 |
Hunan LingXiang Maglev Technology Co Ltd [Member] | ||
Schedule Of Equity And Cost Method Investments [Line Items] | ||
Interest held (in percentage) | 17.67% | |
Equity Method Investments [Member] | ||
Schedule Of Equity And Cost Method Investments [Line Items] | ||
Long-term investment, at cost, less impairment | $ 26,079 | 27,959 |
Share of undistributed profits (accumulated) | 21,524 | 19,980 |
Disposal | 0 | (1,358) |
Advance to investee company | 0 | 0 |
Total | $ 47,603 | $ 46,581 |
Equity Method Investments [Member] | Beijing Hollycon Medicine Technology Co., Ltd [Member] | ||
Schedule Of Equity And Cost Method Investments [Line Items] | ||
Interest held (in percentage) | 30% | 30% |
Long-term investment, at cost, less impairment | $ 7,938 | $ 8,609 |
Share of undistributed profits (accumulated) | 3,185 | 5,544 |
Disposal | 0 | 0 |
Advance to investee company | 0 | 0 |
Total | $ 11,123 | $ 14,153 |
Equity Method Investments [Member] | Beijing Hollysys Electric Motor Co Ltd [Member] | ||
Schedule Of Equity And Cost Method Investments [Line Items] | ||
Interest held (in percentage) | 40% | 40% |
Long-term investment, at cost, less impairment | $ 729 | $ 791 |
Share of undistributed profits (accumulated) | 6,726 | 6,893 |
Disposal | 0 | 0 |
Advance to investee company | 0 | 0 |
Total | $ 7,455 | $ 7,684 |
Equity Method Investments [Member] | China Techenergy Co Ltd [Member] | ||
Schedule Of Equity And Cost Method Investments [Line Items] | ||
Interest held (in percentage) | 40% | 40% |
Long-term investment, at cost, less impairment | $ 0 | $ 0 |
Share of undistributed profits (accumulated) | 17,362 | 13,751 |
Disposal | 0 | 0 |
Advance to investee company | 0 | 0 |
Total | $ 17,362 | $ 13,751 |
Equity Method Investments [Member] | Hollicube Co., Ltd [Member] | ||
Schedule Of Equity And Cost Method Investments [Line Items] | ||
Interest held (in percentage) | 38.10% | 40% |
Long-term investment, at cost, less impairment | $ 3,887 | $ 4,215 |
Share of undistributed profits (accumulated) | (3,887) | (4,215) |
Disposal | 0 | 0 |
Advance to investee company | 0 | 0 |
Total | $ 0 | $ 0 |
Equity Method Investments [Member] | Hunan LingXiang Maglev Technology Co Ltd [Member] | ||
Schedule Of Equity And Cost Method Investments [Line Items] | ||
Interest held (in percentage) | 17.67% | |
Long-term investment, at cost, less impairment | $ 1,494 | |
Share of undistributed profits (accumulated) | (136) | |
Disposal | (1,358) | |
Advance to investee company | 0 | |
Total | $ 0 | |
Equity Method Investments [Member] | Beijing AIRmaker Technology Co., Ltd [Member] | ||
Schedule Of Equity And Cost Method Investments [Line Items] | ||
Interest held (in percentage) | 20% | 20% |
Long-term investment, at cost, less impairment | $ 138 | $ 149 |
Share of undistributed profits (accumulated) | (23) | (18) |
Disposal | 0 | 0 |
Advance to investee company | 0 | 0 |
Total | $ 115 | $ 131 |
Equity Method Investments [Member] | Southcon Development Sdn Bhd [Member] | ||
Schedule Of Equity And Cost Method Investments [Line Items] | ||
Interest held (in percentage) | 30% | 30% |
Long-term investment, at cost, less impairment | $ 217 | $ 211 |
Share of undistributed profits (accumulated) | (122) | (111) |
Disposal | 0 | 0 |
Advance to investee company | 0 | 0 |
Total | $ 95 | $ 100 |
Equity Method Investments [Member] | Beijing Hollysys Machine Automation Co Ltd [Member] | ||
Schedule Of Equity And Cost Method Investments [Line Items] | ||
Interest held (in percentage) | 30% | 30% |
Long-term investment, at cost, less impairment | $ 413 | $ 448 |
Share of undistributed profits (accumulated) | (413) | (448) |
Disposal | 0 | 0 |
Advance to investee company | 0 | 0 |
Total | $ 0 | $ 0 |
Equity Method Investments [Member] | Beijing Jing Yi Intelligent Technologies Innovation Center Co Ltd [Member] | ||
Schedule Of Equity And Cost Method Investments [Line Items] | ||
Interest held (in percentage) | 46% | 46% |
Long-term investment, at cost, less impairment | $ 0 | $ 0 |
Share of undistributed profits (accumulated) | 0 | 0 |
Disposal | 0 | 0 |
Advance to investee company | 0 | 0 |
Total | $ 0 | $ 0 |
Equity Method Investments [Member] | Beijing Hollysys Digital Technology CoLtd [Member] | ||
Schedule Of Equity And Cost Method Investments [Line Items] | ||
Interest held (in percentage) | 25% | 25% |
Long-term investment, at cost, less impairment | $ 1,325 | $ 1,437 |
Share of undistributed profits (accumulated) | (833) | (1,036) |
Disposal | 0 | 0 |
Advance to investee company | 0 | 0 |
Total | $ 492 | $ 401 |
Equity Method Investments [Member] | Shandong MassDatas Development Co., Ltd. [Member] | ||
Schedule Of Equity And Cost Method Investments [Line Items] | ||
Interest held (in percentage) | 20% | 20% |
Long-term investment, at cost, less impairment | $ 2,755 | $ 1,195 |
Share of undistributed profits (accumulated) | (308) | (76) |
Disposal | 0 | 0 |
Advance to investee company | 0 | 0 |
Total | $ 2,447 | $ 1,119 |
EQUITY INVESTMENTS - Additional
EQUITY INVESTMENTS - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Disposal gain | $ 0 | $ 7,995 | $ 0 |
Equity Securities without Readily Determinable Fair Value, Impairment Loss, Cumulative Amount | 413 | 1,195 | |
Equity Securities, FV-NI, Unrealized Gain (Loss) | 0 | 0 | |
Equity Securities, FV-NI, Realized Gain (Loss) | 845 | 0 | |
Investments Cost Method [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Securities without Readily Determinable Fair Value, Amount | $ 1,561 | 1,693 | |
Hunan LingXiang Maglev Technology Co Ltd [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 17.67% | ||
Proceeds from Divestiture of Interest in Consolidated Subsidiaries | $ 9,497 | ||
Disposal gain | $ 7,995 |
WARRANTY LIABILITIES (Details)
WARRANTY LIABILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
WARRANTY LIABILITIES | ||
Beginning balance | $ 5,002 | $ 9,551 |
Consolidation of subsidiary | 145 | |
Expense accrued | 5,446 | 2,595 |
Expense incurred | (4,264) | (7,064) |
Translation adjustment | (378) | (225) |
Closing balance | 5,806 | 5,002 |
Less: current portion of warranty liabilities | (3,238) | (3,280) |
Long-term warranty liabilities | $ 2,568 | $ 1,722 |
SHORT-TERM BANK LOANS (Details)
SHORT-TERM BANK LOANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Short-term Debt [Line Items] | |||
Short-term bank loans | $ 0 | $ 66 | |
Interest Expense | |||
Long-term Line of Credit | 709,735 | 441,335 | |
Line Of Credit Facility Amount Utilized | 119,462 | 111,147 | |
Line Of Credit Facility Amount Available For Use | 590,273 | 330,188 | |
Line Of Credit Facility Secured By Restricted Cash | 35,937 | 36,102 | |
Line Of Credit Facility Secured By Restricted Buildings | $ 3,166 | 2,687 | |
Revolving Bank Loans [Member] | |||
Short-term Debt [Line Items] | |||
Short-term bank loans | $ 66 | ||
Line of Credit Facility, Interest Rate During Period | 1.20% |
LONG-TERM LOANS (Details)
LONG-TERM LOANS (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Debt Instrument [Line Items] | ||
Loans Payable to Bank | $ 32,006 | $ 15,644 |
Less: current portion | (15,231) | (15,210) |
Long-term bank loans | 16,775 | 434 |
MYR-denominated loans [Member] | ||
Debt Instrument [Line Items] | ||
Loans Payable to Bank | 741 | 596 |
SGD-denominated loans [Member] | ||
Debt Instrument [Line Items] | ||
Loans Payable to Bank | 44 | 113 |
US Dollar Denominated Loan [Member] | ||
Debt Instrument [Line Items] | ||
Loans Payable to Bank | 15,000 | $ 14,935 |
RMB Denominated Loan [Member] | ||
Debt Instrument [Line Items] | ||
Loans Payable to Bank | $ 16,221 |
LONG-TERM LOANS - Scheduled pri
LONG-TERM LOANS - Scheduled principal and interest payments (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
LONG-TERM LOANS | |
2024 | $ 15,231 |
2025 | 1,178 |
2026 | 2,170 |
2027 | 2,202 |
2028 onwards | 11,225 |
Loans Payable to Bank | $ 32,006 |
LONG-TERM LOANS - Additional In
LONG-TERM LOANS - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | |||
Interest Payable | $ 878 | $ 731 | $ 553 |
Construction in Progress [Member] | |||
Debt Instrument [Line Items] | |||
Interest Costs Capitalized | 251 | 0 | $ 0 |
SGD-denominated loan [Member] | |||
Debt Instrument [Line Items] | |||
Prepaid Land Leases Total | $ 80 | $ 173 | |
Debt, Weighted Average Interest Rate | 2.65% | ||
SGD-denominated loan [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate During Period | 2.78% | 2.78% | |
SGD-denominated loan [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate During Period | 2.44% | 2.44% | |
MYR-denominated loan [Member] | |||
Debt Instrument [Line Items] | |||
Prepaid Land Leases Total | $ 842 | $ 883 | |
Debt, Weighted Average Interest Rate | 2.71% | ||
MYR-denominated loan [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate During Period | 4.52% | 3.27% | |
MYR-denominated loan [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate During Period | 2.08% | 2.08% | |
HOLIUs Dollar Denominated Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate During Period | 5.83% | ||
Long term debt maturity date | Apr. 22, 2022 | ||
RMB-denominated loan [Member] | |||
Debt Instrument [Line Items] | |||
Prepaid Land Leases Total | $ 68,015 | ||
Debt instrument, interest rate, stated percentage | 4.10% |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - $ / shares | 12 Months Ended | |||||||
Mar. 10, 2022 | Oct. 05, 2020 | Sep. 30, 2020 | Jun. 30, 2023 | Mar. 17, 2021 | Nov. 16, 2020 | Sep. 27, 2020 | Aug. 31, 2010 | |
Stockholders Equity Note [Line Items] | ||||||||
Dividends Payable, Amount Per Share | $ 0.32 | $ 0.2 | $ 0.15 | $ 0.15 | ||||
Dividends Payable, Date Declared | Mar. 10, 2022 | Oct. 05, 2020 | ||||||
Dividends Payable, Date of Record | Apr. 04, 2022 | Oct. 22, 2020 | ||||||
Dividends Payable, Date to be Paid | Apr. 25, 2022 | Nov. 20, 2020 | ||||||
Preferred Class A [Member] | Investments in Equity Investees and Equity Securities [Member] | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Business Acquisition, Share Price (in dollars per share) | $ 160 | $ 160 | ||||||
2010 Rights Plan [Member] | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Percentage Of Tender Offer For Ordinary Shares | 20% | |||||||
Percentage Of Ordinary Shares Acquiring Discount | 50% | |||||||
2010 Rights Plan [Member] | Investments in Equity Investees and Equity Securities [Member] | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 20% | 0% | ||||||
2020 Rights Plan [Member] | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Percentage Of Tender Offer For Ordinary Shares | 15% | |||||||
Rights issue redemption price per right | $ 0.001 | |||||||
2020 Rights Plan [Member] | Investments in Equity Investees and Equity Securities [Member] | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 15% |
SHARE-BASED COMPENSATION EXPE_3
SHARE-BASED COMPENSATION EXPENSES - Share option activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares, Vested and exercisable | 556,250 | 568,500 | |
Number of shares, Forfeited | (525) | (12,250) | |
Number of shares, Vested and exercisable | 555,725 | 556,250 | 568,500 |
Weighted average exercise price, Vested and exercisable (in dollars per share) | $ 11.85 | $ 11.85 | |
Weighted average exercise price, Vested and exercisable (in dollars per share) | $ 11.85 | $ 11.85 | $ 11.85 |
Weighted average remaining contractual life (years), Outstanding | 7 years 7 months 28 days | 8 years 7 months 28 days | 9 years 7 months 28 days |
Aggregate intrinsic value, Vested and exercisable (in dollars) | $ 3,190 | $ 1,641 | $ 1,734 |
SHARE-BASED COMPENSATION EXPE_4
SHARE-BASED COMPENSATION EXPENSES - The fair value of each option is estimated on the date of grant using the Binomial model (Details) | Mar. 17, 2021 | Nov. 16, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk-free interest rate | [1] | 1.62% | 0.91% |
Expected dividend yield | [2] | 1.83% | 2.21% |
Expected life (years) | [3] | 9 years 7 months 28 days | 10 years |
Expected volatility | [4] | 47.35% | 46.98% |
[1]Risk-free interest rate is based on the yields of United States Treasury securities with maturities similar to the expected life of the share options in effect at the time of grant.[2]Expected dividend yield is assumed to be a $0.15 dividend payout.[3]Expected life of share options is based on management’s estimate on timing of exercise of share options.[4]Expected volatility is assumed based on the historical volatility of the Company and the Company’s comparable companies in the period equal to the expected life of each grant. |
SHARE-BASED COMPENSATION EXPE_5
SHARE-BASED COMPENSATION EXPENSES - The fair value of each option is estimated on the date of grant using the Black-Scholes model (Details) (Parenthetical) - $ / shares | Mar. 10, 2022 | Mar. 17, 2021 | Nov. 16, 2020 | Oct. 05, 2020 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Dividends Payable, Amount Per Share | $ 0.32 | $ 0.15 | $ 0.15 | $ 0.2 |
SHARE-BASED COMPENSATION EXPE_6
SHARE-BASED COMPENSATION EXPENSES - Restricted shares (Details) - Vested and Unissued Restricted Shares [Member] - $ / shares | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of restricted shares, Un-vested | 703,041 | 1,320,337 |
Number of restricted shares, Vested | (473,487) | (588,710) |
Number of restricted shares, Forfeited | (1,222) | (28,586) |
Number of restricted shares, Un-vested | 228,332 | 703,041 |
Weighted average grant-date fair value, Un-vested (in dollars per share) | $ 11.85 | $ 11.85 |
Weighted average grant-date fair value, Vested (in dollars per share) | 11.85 | 11.85 |
Weighted average grant-date fair value, Adjustment (in dollars per share) | 11.85 | 11.85 |
Weighted average grant-date fair value, Un-vested (in dollars per share) | $ 11.85 | $ 11.85 |
SHARE-BASED COMPENSATION EXPE_7
SHARE-BASED COMPENSATION EXPENSES (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Mar. 17, 2021 | Nov. 16, 2020 | Sep. 19, 2019 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | May 14, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted average exercise price, Granted (in dollars per share) | $ 11.85 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options | $ 54 | $ 566 | $ 2,147 | ||||
Share-Based Compensation | $ 3,286 | $ 9,709 | $ 9,724 | ||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross (is shares) | 465,725 | 90,000 | |||||
Share based compensation arrangement by share based payment award weighted average vesting period | 5 months 8 days | 11 months 4 days | 1 year 5 months 4 days | ||||
General and Administrative Expense [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-Based Compensation | $ 470 | $ 1,502 | $ 1,406 | ||||
Vested and Unissued Restricted Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options | $ 293 | $ 3,088 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 3 months | 9 months | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 5,611 | $ 6,976 | 2,367 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,116,500 | 318,000 | 67,500 | ||||
Vested and Unissued Restricted Shares [Member] | General and Administrative Expense [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-Based Compensation | $ 2,816 | $ 8,207 | $ 8,318 | ||||
Equity Plan 2015 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 5,000,000 |
EMPLOYEE BENEFITS (Details)
EMPLOYEE BENEFITS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
EMPLOYEE BENEFITS | |||
Defined Contribution Plan, Cost | $ 35,869 | $ 33,550 | $ 24,141 |
INCOME TAX - Income before inco
INCOME TAX - Income before income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
PRC | $ 126,191 | $ 116,210 | $ 137,520 |
Non-PRC | (7,729) | (16,583) | (27,628) |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest, Total | $ 118,462 | $ 99,627 | $ 109,892 |
INCOME TAX - Income tax expense
INCOME TAX - Income tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Expense Incurred In PRC [Line Items] | |||
Current income tax expense | $ 19,392 | $ 12,455 | $ 26,392 |
Deferred income tax expense (benefit) | (8,002) | 4,179 | (5,838) |
Effective income tax expense | 11,390 | 16,634 | 20,554 |
PRC [Member] | |||
Income Tax Expense Incurred In PRC [Line Items] | |||
Current income tax expense | 19,269 | 11,839 | 25,634 |
Deferred income tax expense (benefit) | (7,560) | 7,150 | (7,971) |
Non-PRC [Member] | |||
Income Tax Expense Incurred In PRC [Line Items] | |||
Current income tax expense | 123 | 616 | 758 |
Deferred income tax expense (benefit) | $ (442) | $ (2,971) | $ 2,133 |
INCOME TAX - Reconciliation of
INCOME TAX - Reconciliation of the income tax expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Statutory Tax Rate PRC [Line Items] | |||
Income before income taxes | $ 118,462 | $ 99,627 | $ 109,892 |
Withholding tax on dividends paid by subsidiaries | 4,898 | ||
Total | 11,390 | 16,634 | 20,554 |
People Republic Of China Subsidiaries [Member] | |||
Income Tax Statutory Tax Rate PRC [Line Items] | |||
Expected income tax expense at statutory tax rate in the PRC | 29,614 | 24,998 | 33,221 |
Effect of different tax rates in various jurisdictions | 1,567 | 3,541 | 4,665 |
Effect of preferential tax treatment | (15,228) | (12,707) | (14,334) |
Effect of non-taxable income | (1,919) | (74) | (4,770) |
Effect of additional deductible research and development expenses | (8,909) | (9,398) | (9,838) |
Effect of non-deductible expenses | 6,417 | 4,020 | 6,644 |
Under (over) provision of income tax in previous years | (2,322) | 1,419 | 2,102 |
Change in valuation allowance | 3,005 | 2,124 | 1,718 |
Withholding tax on dividends paid by subsidiaries | 0 | 3,692 | 0 |
Others | $ (835) | $ (981) | $ 1,146 |
INCOME TAX - Deferred tax asset
INCOME TAX - Deferred tax assets/liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Deferred tax assets | ||
Allowance for doubtful accounts | $ 12,222 | $ 12,932 |
Deferred subsidies | 1,068 | 845 |
Warranty liabilities | 727 | 773 |
Inventory provision | 91 | 555 |
Long-term assets | 168 | 591 |
Deferred revenue | 0 | 373 |
Provision for loss contracts | 2,256 | 1,699 |
Net operating loss carry forward | 21,703 | 20,351 |
Valuation allowance | (21,703) | (19,554) |
Others | 3,552 | 0 |
Total deferred tax assets-non-current | 20,084 | 18,565 |
Deferred tax liabilities | ||
Property, plant and equipment | (621) | (645) |
Costs and estimated earnings in excess of billings | (7,470) | (10,079) |
Share of net losses of equity investees | (1,617) | (1,798) |
PRC dividend withholding tax | (4,898) | (5,198) |
Intangible assets and other non-current assets | (4,966) | (7,390) |
Others | (1,644) | (1,881) |
Total deferred tax liabilities, non-current | $ (21,216) | $ (26,991) |
INCOME TAX - Additional Informa
INCOME TAX - Additional Information (Details) ¥ in Thousands, MOP$ in Thousands, $ in Thousands | 12 Months Ended | |||||||||
Jun. 30, 2023 MOP (MOP$) | Jun. 30, 2023 USD ($) | Jun. 30, 2023 CNY (¥) | Jun. 30, 2022 MOP (MOP$) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 MOP (MOP$) | Jun. 30, 2021 USD ($) | Dec. 31, 2008 | Jun. 30, 2023 CNY (¥) | Jun. 30, 2022 CNY (¥) | |
Income Tax Disclosure [Line Items] | ||||||||||
Undistributed Earnings of Foreign Subsidiaries (in dollars) | $ 1,175,411 | $ 1,063,353 | ¥ 7,862,502 | ¥ 7,080,218 | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 15% | 15% | ||||||||
Withholding tax rate profits of subsidiaries earned | 10% | |||||||||
Withholding Tax On Capital Gain | 4,898 | |||||||||
Distributed Earnings | 48,983 | ¥ 355,633 | ||||||||
Undistributed, Retained Earnings Of Foreign Subsidiaries With No Withholding Tax | 63,716 | $ 63,716 | ||||||||
Unrecognised tax benefits that would impact tax rate | 0 | 0 | ||||||||
Unrecognised tax benefits income tax penalty and expense | $ 0 | 0 | $ 0 | |||||||
SINGAPORE [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 17% | 17% | 17% | |||||||
Operating Loss Carryforwards (in dollars) | $ 85,421 | |||||||||
Malaysia [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 24% | 24% | 24% | |||||||
Hong kong [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 16.50% | 16.50% | 16.50% | |||||||
Macau [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Taxable profits threshold limit maximum | MOP$ | MOP$ 300000 | MOP$ 300000 | MOP$ 300000 | |||||||
Taxable Profits Threshold Limit Minimum | MOP$ | 300,000 | 300,000 | 300,000 | |||||||
Profits exempt from taxation | MOP$ | MOP$ 32000 | MOP$ 32000 | MOP$ 32000 | |||||||
Complementary tax rate percentage one | 12% | 12% | 12% | 12% | 12% | 12% | 12% | |||
INDIA [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 30% | 30% | 30% | |||||||
Operating Loss Carryforwards (in dollars) | $ 795 | |||||||||
QATAR | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 10% | 10% | 10% | |||||||
ID [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 22% | 22% | 22% | |||||||
INDONESIA | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Operating Loss Carryforwards (in dollars) | 1,881 | |||||||||
Macau, Patacas | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Operating Loss Carryforwards (in dollars) | 3,114 | |||||||||
Macau, Patacas | Minimum [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Complementary tax rate percentage minimum | 3% | 3% | ||||||||
Macau, Patacas | Maximum [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Complementary tax rate percentage minimum | 9% | 9% | ||||||||
People Republic Of China Subsidiaries [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25% | 25% | 25% | |||||||
Operating Loss Carryforwards (in dollars) | $ 0 | |||||||||
Withholding Tax On Capital Gain | 0 | 3,692 | $ 0 | |||||||
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 105,529 | 93,945 | ||||||||
Undistributed Earnings Of Foreign Subsidiaries With No Withholding Tax | $ 1,119,008 | $ 1,003,166 | ||||||||
Hangzhou Hollysys Automation Company Ltd [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 10% | 10% | ||||||||
Beijing Hollysys Company Ltd [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 15% | 15% | 15% | |||||||
Beijing Hollysys Industrial Software Company Ltd [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential | 15% | 15% | ||||||||
Beijing Hollysys Intelligent Techonologies Limited [Member] | October 2021 to October 2024 [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Enterprise income tax rate percentage | 15% | 15% | 15% | |||||||
Hollysys Control Technology Company Limited [Member] | Three To Five Years [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Percentage reduction in income tax on the calculated amount | 25% | 25% | 25% | 25% | 25% | 25% | 25% |
OPERATING LEASES -Additional In
OPERATING LEASES -Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Leases [Line Items] | |||
Lease Cost | $ 4,442 | $ 4,057 | $ 3,778 |
Research and development expenses related parties | 3,301 | ||
Rental Income | 1,754 | 1,640 | 1,540 |
Amortization of prepaid land leases | 331 | 382 | 454 |
Selling and Marketing Expense [Member] | |||
Operating Leases [Line Items] | |||
Lease Cost | 1,468 | 1,014 | 970 |
General and Administrative Expense [Member] | |||
Operating Leases [Line Items] | |||
Lease Cost | 1,932 | 1,756 | 1,674 |
Research and Development Expense [Member] | |||
Operating Leases [Line Items] | |||
Lease Cost | $ 1,042 | $ 1,287 | $ 1,134 |
OPERATING LEASES - Schedule of
OPERATING LEASES - Schedule of lease and Non-Lease Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Lease, Cost [Abstract] | |||
Operating lease costs | $ 3,301 | $ 3,484 | $ 2,324 |
Short-term lease costs | 810 | 191 | 1,000 |
Amortization of prepaid land leases | 331 | 382 | 454 |
Total lease costs | $ 4,442 | $ 4,057 | $ 3,778 |
OPERATING LEASES - Schedule O_2
OPERATING LEASES - Schedule Of Other Information Related To Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Other Information [Abstract] | |||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 4,448 | $ 3,810 | $ 4,045 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 2,429 | $ 1,554 | $ 3,011 |
Weighted-average remaining lease term (in years): | |||
Operating leases | 2 years 5 months 8 days | 1 year 9 months 29 days | 1 year 11 months 19 days |
Weighted-average discount rate: | |||
Operating leases | 3.94% | 3.05% | 4.17% |
OPERATING LEASES - Schedule o_3
OPERATING LEASES - Schedule of Future Minimum lease Payments for Operating leases (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2024 | $ 2,494 |
2025 | 787 |
2026 | 420 |
2027 | 130 |
2028 | 107 |
Total minimum lease payments | 3,938 |
Less: imputed interest | 948 |
Total lease liability balance | $ 2,990 |
OPERATING LEASES - Summary of O
OPERATING LEASES - Summary of Operating Lease Payments (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2024 | $ 1,948 |
2025 | 1,727 |
2026 | 1,779 |
2027 | 1,833 |
2028 | 1,888 |
Thereafter | 9,571 |
Total minimum lease payments to be received | $ 18,746 |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of Basic And Diluted Net Earnings Per Share Attributable (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | |||
Net income attributable to the Company as reported | $ 106,931 | $ 83,182 | $ 89,709 |
Net income attributable to common stockholders - basic | 106,931 | 83,182 | 89,709 |
Net income attributable to common stockholders – diluted | $ 106,931 | $ 83,182 | $ 89,709 |
Denominator: | |||
Weighted average ordinary shares outstanding used in computing basic earnings per share | 61,521,412 | 61,007,806 | 60,566,709 |
Effect of dilutive securities | |||
Share options | 148,449 | 65,337 | 0 |
Restricted shares | 364,539 | 495,333 | 947,040 |
Weighted average ordinary shares outstanding used in computing diluted earnings per share | 62,034,400 | 61,568,476 | 61,513,749 |
Earnings per share – basic (in dollars per share) | $ 1.74 | $ 1.36 | $ 1.48 |
Earnings per share – diluted (in dollars per share) | $ 1.72 | $ 1.35 | $ 1.46 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Details) - shares | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Vested and Unissued Restricted Shares [Member] | |||
Earnings Per Share [Line Items] | |||
Weighted Average Number Diluted Shares Outstanding Vested And Unissued Restricted Shares | 15,000 | 15,000 | 15,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Related Party Transaction [Line Items] | ||
Allowance for credit losses | $ (4,924) | $ (5,778) |
Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties | 25,906 | 27,360 |
China Techenergy [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties | 16,281 | 17,529 |
Hollycon [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties | 13,984 | 15,066 |
Ningbo Hollysys [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties | 558 | 286 |
Beijing Digital [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties | 5 | 257 |
Others [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties | $ 2 | $ 0 |
RELATED PARTY TRANSACTIONS - Du
RELATED PARTY TRANSACTIONS - Due to related parties (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Related Party Transaction [Line Items] | ||
Due to Related Parties | $ 6,155 | $ 6,299 |
Ningbo Hollysys [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Related Parties | 3,869 | 4,285 |
China Techenergy [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Related Parties | 2,112 | 2,012 |
Hollycon [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Related Parties | 163 | 1 |
Others [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Related Parties | $ 11 | $ 1 |
RELATED PARTY TRANSACTIONS - Pu
RELATED PARTY TRANSACTIONS - Purchases of Goods and Services From Related Parties (Details) - Goods And Services [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | |||
Purchases of goods and services from related parties | $ 1,966 | $ 1,733 | $ 3,058 |
Ningbo Hollysys [Member] | |||
Related Party Transaction [Line Items] | |||
Purchases of goods and services from related parties | 1,823 | 1,164 | 3,051 |
Hollycon [Member] | |||
Related Party Transaction [Line Items] | |||
Purchases of goods and services from related parties | $ 143 | $ 569 | $ 7 |
RELATED PARTY TRANSACTIONS - Sa
RELATED PARTY TRANSACTIONS - Sales of Goods and Integrated Solutions To Related Parties (Details) - Goods And Services [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | |||
Other income from related parties | $ 14,780 | $ 6,306 | $ 9,632 |
China Techenergy [Member] | |||
Related Party Transaction [Line Items] | |||
Other income from related parties | 12,207 | 5,118 | 8,458 |
Ningbo Hollysys [Member] | |||
Related Party Transaction [Line Items] | |||
Other income from related parties | 2,396 | 967 | 308 |
Hollycon [Member] | |||
Related Party Transaction [Line Items] | |||
Other income from related parties | $ 177 | $ 221 | $ 866 |
RELATED PARTY TRANSACTIONS - Ot
RELATED PARTY TRANSACTIONS - Other Income From Related Parties (Details) - Goods And Services [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | |||
Other income from related parties | $ 1,891 | $ 2,830 | $ 2,741 |
Ningbo Hollysys [Member] | |||
Related Party Transaction [Line Items] | |||
Other income from related parties | 669 | 133 | 2,281 |
Hollycon [Member] | |||
Related Party Transaction [Line Items] | |||
Other income from related parties | 1,170 | 2,443 | 460 |
Beijing Digital [Member] | |||
Related Party Transaction [Line Items] | |||
Other income from related parties | 45 | 254 | 0 |
Others [Member] | |||
Related Party Transaction [Line Items] | |||
Other income from related parties | $ 7 | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS - Re
RELATED PARTY TRANSACTIONS - Research And Development To Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | |||
Research and development expenses related parties | $ 3,301 | ||
Research and Development Expense [Member] | |||
Related Party Transaction [Line Items] | |||
Research and development expenses related parties | 144 | $ 208 | $ 212 |
Research and Development Expense [Member] | HOLINingbo Hollysys [Member] | |||
Related Party Transaction [Line Items] | |||
Research and development expenses related parties | $ 144 | $ 208 | $ 212 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Related Party Transaction [Line Items] | ||
Allowance for credit losses | $ 4,924 | $ 5,778 |
Hollycon [Member] | ||
Related Party Transaction [Line Items] | ||
Lessor Operating Lease Term Of Contracts | 1 year | |
Ningbo Hollysys [Member] | ||
Related Party Transaction [Line Items] | ||
Lessor Operating Lease Term Of Contracts | 1 year |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Purchase Obligation (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Purchase obligation | |
2024 | $ 196,154 |
2025 | 43,924 |
2026 | 45,050 |
2027 | 17,909 |
2028 and onwards | $ 44,929 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Commitments And Contingencies Disclosure [Line Items] | ||
Commitments and contingencies | ||
Outstanding Guarantees | 76,897 | |
Purchase Obligation, Due in Next Twelve Months | 347,966 | |
Line of Credit Facility, Amount Outstanding | 709,735 | $ 441,335 |
Capital Commitments [Member] | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Commitments and contingencies | 20,692 | |
Standby Letters of Credit [Member] | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Line of Credit Facility, Amount Outstanding | 4,878 | |
Performance Guarantee [Member] | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Restricted Cash and Cash Equivalents | $ 3,671 |
SEGMENT REPORTING - Summary of
SEGMENT REPORTING - Summary of Information By Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenues from external customers | $ 777,373 | $ 707,462 | $ 593,466 |
Gross profit | 255,485 | 239,357 | 218,279 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 777,373 | 707,462 | 593,466 |
Costs of revenue | 521,888 | 468,105 | 375,187 |
Gross profit | 255,485 | 239,357 | 218,279 |
IA [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 506,300 | 439,918 | 337,052 |
Costs of revenue | 353,380 | 294,642 | 227,107 |
Gross profit | 152,920 | 145,276 | 109,945 |
Rail [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 189,167 | 183,785 | 188,171 |
Costs of revenue | 92,775 | 98,150 | 90,386 |
Gross profit | 96,392 | 85,635 | 97,785 |
M&E [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 81,906 | 83,759 | 68,243 |
Costs of revenue | 75,733 | 75,313 | 57,694 |
Gross profit | 6,173 | 8,446 | 10,549 |
Integrated solutions contracts revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 632,100 | ||
Integrated solutions contracts revenue [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 632,100 | 573,567 | 460,180 |
Integrated solutions contracts revenue [Member] | IA [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 438,863 | 380,516 | 291,106 |
Integrated solutions contracts revenue [Member] | Rail [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 111,331 | 109,342 | 100,877 |
Integrated solutions contracts revenue [Member] | M&E [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 81,906 | 83,709 | 68,197 |
Product [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 47,424 | ||
Costs of revenue | 13,257 | 10,247 | 5,293 |
Product [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 47,424 | 38,486 | 28,667 |
Product [Member] | IA [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 41,987 | 31,559 | 22,772 |
Product [Member] | Rail [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 5,437 | 6,927 | 5,895 |
Product [Member] | M&E [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 0 | 0 | 0 |
Maintenance [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 94,095 | ||
Maintenance [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 94,095 | 91,267 | 101,322 |
Maintenance [Member] | IA [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 24,045 | 26,725 | 21,402 |
Maintenance [Member] | Rail [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 70,050 | 64,492 | 79,874 |
Maintenance [Member] | M&E [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 0 | 50 | 46 |
Extended Warranty Service Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 3,754 | ||
Extended Warranty Service Revenue [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 3,754 | 4,142 | 3,297 |
Extended Warranty Service Revenue [Member] | IA [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 1,405 | 1,118 | 1,772 |
Extended Warranty Service Revenue [Member] | Rail [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 2,349 | 3,024 | 1,525 |
Extended Warranty Service Revenue [Member] | M&E [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | $ 0 | $ 0 | $ 0 |
SEGMENT REPORTING - Revenues by
SEGMENT REPORTING - Revenues by Geographical Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from Related Parties | $ 777,373 | $ 707,462 | $ 593,466 |
PRC [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from Related Parties | 689,814 | 614,903 | 518,170 |
Non-PRC [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from Related Parties | $ 87,559 | $ 92,559 | $ 75,296 |
SEGMENT REPORTING - Long-lived
SEGMENT REPORTING - Long-lived Assets Other Than Goodwill and Intangible Assets by Geographical Area (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets other than goodwill and acquired intangible assets | $ 203,776 | $ 169,712 |
PRC [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets other than goodwill and acquired intangible assets | 194,136 | 159,598 |
Non-PRC [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets other than goodwill and acquired intangible assets | $ 9,640 | $ 10,114 |
ACQUISITION OF SUBSIDIARY - Ad
ACQUISITION OF SUBSIDIARY - Additional Information (Details) - Beijing Hollysys Intelligent Technologies Co., Ltd [Member] $ in Thousands, ¥ in Millions | 12 Months Ended | ||
Aug. 21, 2022 CNY (¥) | Aug. 21, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Business Acquisition [Line Items] | |||
Percentage of acquisition | 100% | 100% | |
Payments to acquire businesses gross | ¥ 135 | $ 20,908 | $ 20,908 |
ACQUISITION OF SUBSIDIARY - Sch
ACQUISITION OF SUBSIDIARY - Schedule of Excess Purchase Price over the Fair Value of Net Assets Acquired (Details) - Beijing Hollysys Intelligent Technologies Co., Ltd [Member] $ in Thousands, ¥ in Millions | 12 Months Ended | ||
Aug. 21, 2022 CNY (¥) | Aug. 21, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Business Acquisition [Line Items] | |||
Purchase price | ¥ 135 | $ 20,908 | $ 20,908 |
Less: Final fair value of net assets acquired | 1,211 | ||
Excess purchase price over fair value of net assets acquired | $ 19,697 |
ACQUISITION OF SUBSIDIARY - Sc
ACQUISITION OF SUBSIDIARY - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - Beijing Hollysys Intelligent Technologies Co., Ltd [Member] $ in Thousands | Jun. 30, 2022 USD ($) |
Assets Acquired | |
Cash and cash equivalents | $ 3,018 |
Restricted cash | 1 |
Accounts receivable, net | 8,776 |
Cost and estimated earnings in excess of billings, net | 2,499 |
Other receivables, net | 1,221 |
Advances to suppliers | 667 |
Inventories, net | 6,513 |
Income tax recoverable | 25 |
Property, plant and equipment, net | 2,886 |
Operating lease right-of-use assets | 3 |
Intangible assets, net | 11,245 |
Investments in equity investees | 1,490 |
Total assets acquired | 38,344 |
Liabilities Assumed: | |
Accounts payable | 11,553 |
Deferred revenue | 9,803 |
Accrued payroll and related expenses | 1,018 |
Warranty liabilities | 145 |
Accrued liabilities | 14,614 |
Total liabilities assumed | 37,133 |
Fair Value of Net Assets Acquired | $ 1,211 |
ACQUISITION OF SUBSIDIARY - Sum
ACQUISITION OF SUBSIDIARY - Summary of the Value Allocated to the Intangible Assets Acquired (Details) - Beijing Hollysys Intelligent Technologies Co., Ltd [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Business Acquisition [Line Items] | ||
Amortization Period | 10 years | 10 years |
Amount Assigned at Acquisition Date | $ 11,245 | $ 11,245 |
Accumulated Amortization and Foreign Currency Translation | (1,767) | (1,394) |
Net Carrying Value | $ 8,084 | $ 9,851 |
DISPOSAL OF SUBSIDIARY - Additi
DISPOSAL OF SUBSIDIARY - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||
Proceeds received from disposal of equity investments | $ 0 | $ 9,497 | $ 5,187 | |
Disposal of subsidiaries | $ 55 | |||
Cixi Hollysys [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Proceeds received from disposal of equity investments | $ 13,160 |
ENDORSEMENT OF NOTE RECEIVABL_2
ENDORSEMENT OF NOTE RECEIVABLES - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
ENDORSEMENT OF NOTE RECEIVABLES | ||
Endorsed Bank Acceptance Bill | $ 86,140 | $ 67,703 |
CONDENSED FINANCIAL INFORMATI_3
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - BALANCE SHEETS (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
ASSETS | ||||
Cash and cash equivalents | $ 611,632 | $ 679,754 | $ 664,321 | |
Prepaid expenses | 596 | 667 | ||
Total current assets | 1,424,935 | 1,462,567 | ||
Total assets | 1,684,848 | 1,671,773 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Accrued liabilities | 36,870 | 37,282 | ||
Amounts due to related parties | 0 | 3 | ||
Total liabilities | 508,615 | 505,945 | ||
Equity: | ||||
Ordinary shares, par value $0.001 per share, 100,000,000 shares authorized; 61,962,449 shares issued and 62,021,930 shares issued and outstanding as of June 30, 2022 and 2023, respectively | 62 | 62 | ||
Additional paid-in capital | 246,908 | 243,476 | ||
Accumulated other comprehensive loss | (112,418) | (12,655) | ||
Total equity | 1,176,233 | 1,165,828 | $ 1,141,968 | $ 988,886 |
Total liabilities and equity | 1,684,848 | 1,671,773 | ||
Related Party [Member] | ||||
ASSETS | ||||
Amounts due from subsidiaries | 25,906 | 27,360 | ||
Parent Company | ||||
ASSETS | ||||
Cash and cash equivalents | 3,190 | 7,500 | ||
Prepaid expenses | 262 | 202 | ||
Total current assets | 56,955 | 61,205 | ||
Investment in subsidiaries | 1,288,395 | 1,276,497 | ||
Total assets | 1,345,350 | 1,337,702 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Accrued liabilities | 0 | 98 | ||
Amounts due to related parties | 170,141 | 172,317 | ||
Total liabilities | 170,141 | 172,415 | ||
Equity: | ||||
Ordinary shares, par value $0.001 per share, 100,000,000 shares authorized; 61,962,449 shares issued and 62,021,930 shares issued and outstanding as of June 30, 2022 and 2023, respectively | 62 | 62 | ||
Additional paid-in capital | 246,908 | 243,476 | ||
Retained earnings | 1,040,657 | 934,404 | ||
Accumulated other comprehensive loss | (112,418) | (12,655) | ||
Total equity | 1,175,209 | 1,165,287 | ||
Total liabilities and equity | 1,345,350 | 1,337,702 | ||
Parent Company | Related Party [Member] | Affiliated Entity [Member] | ||||
ASSETS | ||||
Amounts due from subsidiaries | $ 53,503 | $ 53,503 |
CONDENSED FINANCIAL INFORMATI_4
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - PARENTHETICALS (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Jun. 30, 2023 CNY (¥) shares | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2022 CNY (¥) shares | Jun. 30, 2022 USD ($) $ / shares shares |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 62,021,930 | 62,021,930 | 61,962,449 | 61,962,449 |
Common stock, shares outstanding (in shares) | 62,021,930 | 62,021,930 | 61,962,449 | 61,962,449 |
Parent Company | ||||
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 62,021,930 | 62,021,930 | 61,962,449 | 61,962,449 |
Common stock, shares outstanding (in shares) | 62,021,930 | 62,021,930 | 61,962,449 | 61,962,449 |
Amount Restricted To Transfer From Subsidiary To Parent | ¥ 615,590 | $ 84,487 | ¥ 607,041 | $ 83,326 |
CONDENSED FINANCIAL INFORMATI_5
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Condensed Income Statements, Captions | |||
General and administrative expenses | $ 63,580 | $ 80,241 | $ 69,982 |
Loss from operations | 93,013 | 74,544 | 87,245 |
Interest income | 12,394 | 12,698 | 14,131 |
Foreign exchange gains | 6,363 | 1,789 | (6,219) |
Income before income taxes | 118,462 | 99,627 | 109,892 |
Income tax expenses | 11,390 | 16,634 | 20,554 |
Net income | 106,931 | 83,182 | 89,709 |
Other comprehensive income, net of tax of nil | |||
Translation adjustment | (99,719) | (46,590) | 96,577 |
Comprehensive income | 7,353 | 36,403 | 185,915 |
Parent Company | |||
Condensed Income Statements, Captions | |||
General and administrative expenses | 7,219 | 17,223 | 21,090 |
Loss from operations | (7,219) | (17,223) | (21,090) |
Interest income | 14 | 0 | 117 |
Foreign exchange gains | 1,409 | 197 | 1,532 |
Share of net income of subsidiaries | 112,727 | 100,208 | 109,150 |
Income before income taxes | 106,931 | 83,182 | 89,709 |
Income tax expenses | 0 | 0 | 0 |
Net income | 106,931 | 83,182 | 89,709 |
Other comprehensive income, net of tax of nil | |||
Translation adjustment | (99,763) | (45,469) | 96,331 |
Comprehensive income | $ 7,168 | $ 37,713 | $ 186,040 |
CONDENSED FINANCIAL INFORMATI_6
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 107,072 | $ 82,993 | $ 89,338 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Share of net income of subsidiaries | (3,116) | (1,838) | (604) |
Share-based compensation expenses | 3,286 | 9,709 | 9,724 |
Net cash (used in) provided by operating activities | 23,177 | 54,526 | 79,283 |
Cash flows from investing activities: | |||
Net cash provided by investing activities | (59,683) | 13,257 | 270,258 |
Cash flows from financing activities: | |||
Payment of dividends | 0 | (19,827) | (12,107) |
Net cash used in financing activities | 17,885 | (19,556) | (12,218) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (70,897) | 23,480 | 376,450 |
Cash, cash equivalents and restricted cash, beginning of year | 719,027 | 695,547 | 319,097 |
Cash, cash equivalents and restricted cash, end of year | 648,130 | 719,027 | 695,547 |
Parent Company | |||
Cash flows from operating activities: | |||
Net income | 106,931 | 83,182 | 89,709 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Share of net income of subsidiaries | (112,727) | (100,208) | (109,150) |
Share-based compensation expenses | 3,286 | 9,709 | 9,724 |
Change in operating assets and liabilities | (1,800) | 26,820 | 5,065 |
Net cash (used in) provided by operating activities | (4,310) | 19,503 | (4,652) |
Cash flows from investing activities: | |||
Maturity of short-term investments | 0 | 0 | 11,318 |
Net cash provided by investing activities | 0 | 0 | 11,318 |
Cash flows from financing activities: | |||
Payment of dividends | 0 | (19,827) | (12,107) |
Net cash used in financing activities | 0 | (19,827) | (12,107) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (4,310) | (324) | (5,441) |
Cash, cash equivalents and restricted cash, beginning of year | 7,500 | 7,824 | 13,265 |
Cash, cash equivalents and restricted cash, end of year | $ 3,190 | $ 7,500 | $ 7,824 |