Financial Highlights for the First Six Months of Fiscal Year 2023

	For the Six Months Ended March 31
(in $ millions, except earnings per share; differences due to rounding)	2023		2022		% Change
Sales	$	38.0	$	36.8	3.2 %
Gross profit		5.7		5.9	(3.6 %)
Gross margin		15.1 %		16.2 %	(1.1 percentage points)
Operating Income		1.5		0.7	122.0 %
Net income		1.5		(0.0)	(15,991.7 %)
Net earnings per share – Basic and Diluted		0.10		(0.00)	(15,044.8 %)

Revenue increased by 3.2% to $38.0 million for the six months ended March 31, 2023, from $36.8 million for the six months ended March 31, 2022.
Gross profit decreased by 3.6% to $5.7 million for the six months ended March 31, 2023, from $5.9 million for the six months ended March 31, 2022.
Operating income increased by 122% to $1.5 million for the six months ended March 31, 2023, from $0.7 million for the six months ended March 31, 2022
Net income for the six months ended March 31, 2023, was $1.5 million compared to net loss of $9,000 for the six months ended March 31, 2022.

Mr. Di Wang, Chairman of the Company, commented: "During the first half of year 2023, we continue to enhance our cost structure, deliver high-quality services and products to maintain and expand our existing client base, resulting in the Company's sales growth of over 3% and turnaround for net income of $1.5 million in the first half of fiscal year 2023. Despite a challenging economic situation resulted by Covid-19 pandemic during the last quarter of 2022, we closed $25 million registered direct offering. Though slow recovery from the impact of Covid-19 pandemic during the first quarter of 2023, we continued to record progresses on our operations and entered into strategic partnership with China Huanqiu Contracting & Engineering Co., Ltd., leading to our recognition as a significant supplier for large-scale stainless steel seamless pipes and tubes projects. Also, we are chosen to serve as the chief executive entity of the Belt and Road Enterprise Development Association, which will aid us in exploring and cultivating new business prospects for sustainable growth in the future. All these developments during the six months ended March 31, 2023 bolster our confidence in implementing our strategic plan to seek sustainable growth for the full year 2023."

Huadi International Group Co H1 2023 EPS $0.10 Vs $0.00 YoY; Revenue $38M Vs $36.8M YoY