EX-99.2 3 ea180936ex99-2_millennium.htm UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

Exhibit 99.2

 

INDEX TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

  Page
Interim condensed consolidated financial statements (unaudited) F-1
Unaudited Interim Condensed Consolidated Balance Sheets as of December 31, 2022 and June 30, 2022 F-2
Unaudited Interim Condensed Consolidated Statements of Income and Comprehensive Income for the Six Months Ended December 31, 2022 and 2021 F-3
Unaudited Interim Condensed Consolidated Statements of Changes In Shareholders’ Equity for the Six Months Ended December 31, 2022 and 2021 F-4
Unaudited Interim Condensed Consolidated Statements of Cash Flows for the Six Months Ended December 31, 2022 and 2021 F-5

 

F-1

 

  

MILLENNIUM GROUP INTERNATIONAL HOLDINGS LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS 

AS OF DECEMBER 31, 2022 AND JUNE 30, 2022

 

    December 31,   June 30, 
   2022   2022 
   (Unaudited)   (Audited) 
ASSETS          
Current assets:          
Cash and cash equivalents   26,320,994    18,849,049 
Restricted cash   -    598,402 
Accounts receivable, net   11,590,208    18,069,511 
Prepayments, other receivables and other current assets   455,074    927,987 
Inventory   6,222,507    9,819,633 
Total current assets   44,588,783    48,264,582 
Non-current assets:          
Property, plant and equipment, net   10,022,811    10,813,200 
Right-of-use assets, net   3,581,252    4,076,816 
Intangible assets, net   367,018    432,972 
Deferred tax assets, net   301,953    313,315 
Other non-current assets   2,709,603    2,108,914 
Total non-current assets   16,982,637    17,745,217 
Total Assets   61,571,420    66,009,799 
           
LIABILITIES AND SHAREHOLDER’S EQUITY          
Current Liabilities:          
Bank borrowings   13,531,414    15,813,022 
Lease obligation – current   512,766    772,534 
Accounts payable   4,298,581    5,665,636 
Other payables and accrued liabilities   2,592,785    3,169,289 
Tax payable   554,622    354,352 
Total current liabilities   21,490,168    25,774,833 
           
Non-current liabilities:          
Lease obligation – non-current   25,069    146,927 
Total non-current liabilities   25,069    146,927 
Total liabilities   21,515,237    25,921,760 
           
COMMITMENTS AND CONTINGENCIES   -    - 
           
SHAREHOLDER’S EQUITY          
Ordinary shares: USD $0.002 par value per share, 250,000,000 authorized as of December 31, 2022 and June 30, 2022; 10,000,000 shares issued and outstanding as of December 31, 2022 and June 30, 2022, respectively*   20,000    20,000 
Additional paid-up capital   31,101,897    31,101,897 
Statutory reserves   1,106,616    1,029,144 
Accumulated other comprehensive income   (1,708,157)   (708,677)
Retained earnings   9,535,827    8,645,675 
Total shareholders’ equity   40,056,183    40,088,039 
Total liabilities and shareholders’ equity   61,571,420    66,009,799 

 

F-2

 

 

MILLENNIUM GROUP INTERNATIONAL HOLDINGS LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED DECEMBER 31, 2022 AND 2021

 

   For the six months ended 
   December 31, 
   2022   2021 
         
Revenues   26,328,797    35,850,803 
Cost of revenues   (20,380,029)   (26,778,609)
Gross Profit   5,948,768    9,072,194 
           
Operating expenses:          
Selling and marketing expenses   (2,875,050)   (3,388,016)
General and administrative expenses   (2,447,806)   (2,507,120)
Total operating expenses   (5,322,856)   (5,895,136)
           
Income from operations   625,912    3,177,058 
           
Other income/ (loss):          
Other income   808,378    76,777 
Other expenses   (50,692)   (535,935)
Interest expense   (282,979)   (204,377)
    474,707    (663,535)
           
Income before tax expenses   1,100,619    2,513,523 
           
Income tax expenses   (132,995)   (564,229)
           
Net income   967,624    1,949,294 
           
Other Comprehensive (Loss) Income          
Foreign currency translation adjustment   (999,480)   426,993 
           
Total Comprehensive (Loss) Income   (31,856)   2,376,287 
           
Net income per share attributable to ordinary shareholders basic and diluted   0.10    0.19 
           
Weighted average number of ordinary shares used in computing net income per share basic and diluted*   10,000,000    10,000,000 

 

F-3

 

 

MILLENNIUM GROUP INTERNATIONAL HOLDINGS LIMITED 

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN
SHAREHOLDERS’ EQUITY

FOR THE SIX MONTHS ENDED DECEMBER 31, 2022 AND 2021

 

               Accumulated         
   Ordinary           other         
   Share   Additional       comprehensive         
   No. of       paid-in   Statutory   income   Retained     
   Shares   Amount   capital   Reserve   (loss)   Earnings   Total 
       $   $   $   $   $   $ 
Balance as of July 1, 2021   10,000,000    20,000    17,514,152    733,182    400,056    11,837,448    30,504,838 
Appropriations to statutory reserves   -    -    -    465,876    -    (465,876)   - 
Foreign currency translation adjustment    -    -    -    -    426,993    -    426,993 
Net income   -    -    -    -    -    1,949,294    1,949,294 
Balance as of December 31, 2021   10,000,000    20,000    17,514,152    1,199,058    827,049    13,320,866    32,881,125 
                                    
Balance as of July 1, 2022   10,000,000    20,000    31,101,897    1,029,144    (708,677)   8,645,675    40,088,039 
Appropriations to statutory reserves   -    -    -    77,472    -    (77,472)   - 
Foreign currency translation adjustment   -    -    -    -    (999,480)   -    (999,480)
Net income   -    -    -    -    -    967,624    967,624 
Balance as of December 31, 2022   10,000,000    20,000    31,101,897    1,106,616    (1,708,157)   9,535,827    40,056,183 

 

F-4

 

 

MILLENNIUM GROUP INTERNATIONAL HOLDINGS LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED DECEMBER 31, 2022 AND 2021

 

   For the six months ended 
   December 31, 
   2022   2021 
Cash Flows from Operating Activities:        
Net income   967,624    1,949,294 
Adjustments to reconcile net income to net cash provided by operating activities:          
Depreciation and amortization   852,621    794,894 
Impairment of inventories   50,691    220,328 
(Reversal) Allowance for bad debts   (103,137)   2,942 
Changes in operating assets and liabilities:          
Deferred tax   6,094    (35,677)
Accounts receivables   6,051,952    (1,924,269)
Prepayments, other receivables and other assets   241,868    (406,350)
Inventory   3,162,255    (168,850)
Prepaid tax   -    429,057 
Right-of-use assets   398,261    374,919 
Lease obligation   (351,329)   (228,896)
Accounts payable   (1,036,468)   1,016,448 
Other payables and accruals   (246,357)   (798,779)
Related party balances   (367,464)   (278,051)
Tax Payable   210,526    - 
Net Cash from Operating Activities   9,837,137    947,010 
           
Cash Flows from Investing Activities:          
Purchases of property, plant and equipment   (170,037)   (136,384)
Proceeds from sale of property, plant and equipment   552    - 
Purchase of intangible assets   -    (6,829)
Repayments from related parties   -    331,102 
Net Cash (Used in) from Investing Activities   (169,485)   187,889 
           
Cash Flows from Financing Activities:          
Repayment of bank borrowings   (11,733,414)   (7,139,958)
Proceeds from bank borrowings   9,381,680    7,735,079 
Repayments to related parties   -    (515,893)
Net Cash (Used in) from Financing Activities   (2,351,734)   79,228 
           
Net Increase in Cash and Cash Equivalents   7,315,918    1,214,127 
           
Effect of Exchange Rate Changes on Cash and Cash Equivalents   (442,375)   125,563 
           
Cash, Cash Equivalents and Restricted Cash – Beginning of Period   19,447,451    21,270,077 
           
Cash, Cash Equivalents and Restricted Cash – End of Period   26,320,994    22,609,767 
           
Supplemental Disclosure of Cash Flow Information:          
Cash paid for interest   (282,979)   (191,171)
Cash paid for income taxes   (86,736)   (27,996)

 

 

F-5