CHR earnings analysis
What we found in CHR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Glory Star reported Q1 2020 revenue of $9,757, down from $13,753 in Q1 2019. Gross margin improved to ~48.9% (from ~40.3%) despite lower revenue, but operating income and EPS declined (income from operations $2,894 vs $4,446; basic EPS $0.06 vs $0.10). Operating cash flow turned negative to $(1,118) and total liabilities increased materially to $23,473 from $17,454 at year-end 2019.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Gross margin expansion
- Gross margin improved to ~48.9% in Q1 2020 (gross profit $4,766 on revenue $9,757) from ~40.3% in Q1 2019 (gross profit $5,541 on revenue $13,753).
- Cash balance strengthened
- Cash and cash equivalents increased to $9,961 at March 31, 2020 from $6,919 at December 31, 2019, an increase of $3,042.
- Positive net income
- Reported net income was $2,842 for the three months ended March 31, 2020 (net income attributable to shareholders $2,901).
- Financing boosted liquidity
- Proceeds from bank loans of $4,299 were recorded in Q1 2020 (cash flow from financing activities $4,322) versus net financing use of $(1,521) in the comparable prior period.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Revenue decline
- Total revenue fell to $9,757 in Q1 2020 from $13,753 in Q1 2019, a drop of $3,996 (≈29.0%), indicating demand or timing weakness.
- Operating income and EPS deterioration
- Income from operations declined to $2,894 in Q1 2020 from $4,446 in Q1 2019, and basic EPS fell to $0.06 from $0.10.
- Operating cash flow turned negative
- Net cash provided by operating activities was $(1,118) in Q1 2020 versus $2,722 in Q1 2019, reducing free cash flow to $(1,118) (capex was $0 in Q1 2020).
- Accounts receivable concentration / VAT headwind
- Accounts receivable, net increased to $55,003 at March 31, 2020 from $51,061 at December 31, 2019 (increase $3,942); management attributes delays in VAT invoices to higher receivables.
- Liabilities and related-party financing increased
- Total liabilities rose to $23,473 at March 31, 2020 from $17,454 at December 31, 2019 (increase $6,019); short-term bank loans increased to $3,672 (from $718) and a convertible promissory note—related party of $1,400 appears as of March 31, 2020 (was $0 at Dec 31, 2019).
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.06
- Gross margin
- 48.86677650542817%
- Operating margin
- 29.67186374308031%
What they said about what is next.
The 10-Q does not provide numeric forward guidance. The filing discusses contingent 'earnout' shares tied to 2019 and 2020 performance (up to 5,000,000 shares each year) and notes liquidity actions (bank loan proceeds $4,299). No explicit 'expects to' or quantitative outlook statements with numeric targets were provided in the MD&A excerpt.
The filing reads worse than the one before it.
What came before.
- 10-Q · August 14, 2019
- For Q2 2019, TKK Symphony Acquisition Corporation reported a net income of $1,156,951 compared to a loss of $9,344 in Q2 2018, reflecting a substantial improvement as the company earned income from its trust account.…
- 10-K · March 11, 2019
- This is a newly formed SPAC (TKK Symphony Acquisition Corporation) that completed an IPO in August 2018 and holds approximately $250.0 million in a trust account to pursue an initial business combination focused…
- 10-Q · November 13, 2018
- This 10-Q is for a blank‑check company (SPAC) that has not commenced operations and holds $250,435,569 in a trust account. For the three months ended September 30, 2018 the Company reported net income of $371,210…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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