Friday, December 2

GigaCloud Technology Inc Announces Second Quarter 2022

HONG KONG, Sept. 30, 2022 (GLOBE NEWSWIRE) — GigaCloud Technology Inc (Nasdaq: GCT) (“GigaCloud” or the “Company”), a pioneer of global end-to-end B2B ecommerce solutions for large parcel merchandise, today announced its unaudited financial results for the quarter and six months ended June 30, 2022.

Mr. Larry Lei Wu, Founder, Chairman of the Board of Director and Chief Executive Officer of GigaCloud, commented, “We are pleased to deliver a robust financial and operational results in our first quarterly earnings release as a public company. Our Nasdaq listing in August represented a key milestone for our Company and years of hard-work, commitment and dedication from our shareholders, management team and employees. Despite the macroeconomic challenges that we faced, we continued to deliver a solid year over year revenue and GMV growth. We are proactively adjusting our operations to adapt to these challenges and continued to focus on our long-term strategy by strengthening our capabilities to create value for our customers. By leveraging our data driven technology and our logistic solutions, we are well positioned to increase our overall market share in the B2B large parcel market.”

Mr. David Lau, Chief Financial Officer of GigaCloud, added, “We are pleased to see topline growth despite a quarter of supply chain challenges. This is attributable to the Company’s effort to continue attracting more buyers and sellers as demand continues to rise for large parcel sales and deliveries.   Through real-time visibility of our operations, there are signs of supply chain normalization, and our ability to manage the logistics obstacles and offer solutions to our customers will support us through short-term challenges and position us better for long-term growth.”

Second Quarter 2022 Financial Highlights

  • Total revenues were $124.0 million in the second quarter of 2022, an increase of 11.0% from $111.8 million in the second quarter of 2021.
  • Net income was $6.1 million in the second quarter of 2022, compared to $13.6 million in the second quarter of 2021.
  • Adjusted EBITDA1 was $7.8 million in the second quarter of 2022, compared to $16.6 million in the second quarter of 2021

First Half 2022 Financial Highlights

  • Total revenues were $236.5 million in the six months ended June 30, 2022, an increase of 14.6% from $206.3 million in the six months ended June 30, 2021.
  • Net income was $10.8 million in the six months ended June 30, 2022, compared to $21.6 million in the six months ended June 30, 2021.
  • Adjusted EBITDA2 was $14.7 million in the six months ended June 30, 2022, compared to $26.7 million in the six months ended June 30, 2021.

Operational Highlights

  • GigaCloud Marketplace GMV3 was $458.8 million in the 12 months ended June 30, 2022, an increase of 43.8% from $319.2 million in the 12 months ended June 30, 2021.
  • Active 3P sellers4 were 452 in the 12 months ended June 30, 2022, an increase of 67.4% from 270 in the 12 months ended June 30, 2021.
  • Active buyers5 were 4,061 in the 12 months ended June 30, 2022, an increase of 58.9% from 2,555 in the 12 months ended June 30, 2021.
  • Spend per active buyer6 was $112,987 in the 12 months ended June 30, 2022, a decrease of 9.5% from $124,915 in the 12 months ended June 30, 2021.
  • 3P seller GigaCloud Marketplace GMV7 was $196.7 million in the 12 months ended June 30, 2022, an increase of 71.1% from $114.9 million in the 12 months ended June 30, 2021

________________________
1 Adjusted EBITDA is a non-GAAP financial measure. For more information on the non-GAAP financial measure, please see the section of “Non-GAAP Financial Measure” and the table captioned “Unaudited Reconciliation of Adjusted EBITDA” set forth at the end of this press release.

2 Adjusted EBITDA is a non-GAAP financial measure. For more information on the non-GAAP financial measure, please see the section of “Non-GAAP Financial Measure” and the table captioned “Unaudited Reconciliation of Adjusted EBITDA” set forth at the end of this press release.

3 GigaCloud Marketplace GMV means the total gross merchandise value of transactions ordered through our GigaCloud Marketplace including GigaCloud 3P and GigaCloud 1P, before any deductions of value added tax, goods and services tax, shipping charges paid by buyers to sellers and any refunds.

4 Active 3P sellers means sellers who have sold a product in GigaCloud Marketplace within the last 12-month period, irrespective of cancellations or returns.

5 Active buyers means buyers who have purchased a product in the GigaCloud Marketplace within the last 12-month period, irrespective of cancellations or returns.

6 Spend per active buyer is calculated by dividing the total GigaCloud Marketplace GMV within the last 12-month period by the number of active buyers as of such date.

7 3P seller GigaCloud Marketplace GMV means the total gross merchandise value of transactions sold through our GigaCloud Marketplace by 3P sellers, before any deductions of value added tax, goods and services tax, shipping charges paid by buyers to sellers and any refunds.

Second Quarter 2022 Financial Results

Revenues

Total revenues were $124.0 million in the second quarter of 2022, increased by 11.0% from $111.8 million in the second quarter of 2021. The increase was primarily due to an increase in service revenue from GigaCloud 3P and product revenue from GigaCloud 1P, partially offset by the decrease in product revenue from off-platform ecommerce.

  • Service revenue from GigaCloud 3P was $32.8 million in the second quarter of 2022, increased by 39.4% from $23.6 million in the second quarter of 2021. The increase was primarily due to an increase in revenues from last-mile delivery fees and fulfillment fees for other freight services such as delivery of products via ocean transportation.
  • Product revenue from GigaCloud 1P was $60.7 million in the second quarter of 2022, increased by 15.4% from $52.6 million in the second quarter of 2021. The increase was primarily due to an increase in number of active buyers and better selection of products catering to buyers’ preference.
  • Product revenue from off-platform ecommerce was $30.5 million in the second quarter of 2022, decreased by 14.4% from $35.6 million in the second quarter of 2021. The decrease was primarily due to an overall decrease in sales on certain third-party off-platform ecommerce as consumer demand slowed down on such third-party off-platform ecommerce.

Cost of Revenues

Cost of revenues was $107.0 million in the second quarter of 2022, increased by 29.1% from $82.9 million in the second quarter of 2021. The increase was primarily due to an increase in ocean freight cost compared to the second quarter of 2021, and such increase is expected to stabilize in the rest of 2022.

Gross Profit and Gross Margin

Gross profit was $17.0 million in the second quarter of 2022, decreased by 41.1% from $28.9 million in the second quarter of 2021. Gross margin was 13.7% in the second quarter of 2022, compared to 25.9% in the second quarter of 2021.

Operating Expenses

Total operating expenses were $8.8 million in the second quarter of 2022, decreased by 28.3% from $12.3 million in the second quarter of 2021.

  • Selling and marketing expenses were $5.5 million in the second quarter of 2022, decreased by 20.2% from $6.8 million in the second quarter of 2021. The decrease was primarily due to a decrease in staff cost as the sales commission decreased.
  • General and administrative expenses were $3.3 million in the second quarter of 2022, decreased by 38.6% from $5.4 million in the second quarter of 2021. The decrease was primarily due to a decrease in professional service fees.

Operating Income

Operating income was $8.2 million in the second quarter of 2022, decreased by 50.5% from $16.6 million in the second quarter of 2021.

Income Tax Expenses

Income tax expenses were $1.2 million in the second quarter of 2022, decreased by 58.6% from $3.0 million in the second quarter of 2021.

Net Income

Net income was $6.1 million in the second quarter of 2022, compared to $13.6 million in the second quarter of 2021.

Basic and Diluted Earnings per Share

Basic and diluted earnings per share was $0.15 in the second quarter of 2022, compared to $0.43 in the second quarter of 2021.

Adjusted EBITDA

Adjusted EBITDA8 was $7.8 million in the second quarter of 2022, compared to $16.6 million in the second quarter of 2021.

________________________
8 Adjusted EBITDA is a non-GAAP financial measure. For more information on the non-GAAP financial measure, please see the section of “Non-GAAP Financial Measure” and the table captioned “Unaudited Reconciliation of Adjusted EBITDA” set forth at the end of this press release.

First Half 2022 Financial Results

Revenues

Total revenues were $236.5 million in the six months ended June 30, 2022, increased by 14.6% from $206.3 million in the six months ended June 30, 2021. The increase was primarily due to an increase in service revenue from GigaCloud 3P and product revenue from GigaCloud 1P, partially offset by the decrease in product revenue from off-platform ecommerce.

  • Service revenue from GigaCloud 3P was $64.0 million in the six months ended June 30, 2022, increased by 45.7% from $44.0 million in the six months ended June 30, 2021. The increase was primarily due to an increase in revenues from last-mile delivery fees and fulfillment fees for other freight services such as delivery of products via ocean transportation.
  • Product revenue from GigaCloud 1P was $115.0 million in the six months ended June 30, 2022, increased by 21.2% from $94.9 million in the six months ended June 30, 2021. The increase was primarily due to an increase in number of active buyers and better selection of products catering to buyers’ preference.
  • Product revenue from off-platform ecommerce was $57.4 million in the six months ended June 30, 2022, decreased by 14.9% from $67.4 million in the six months ended June 30, 2021. The decrease was primarily due to an overall decrease in sales on certain third-party off-platform ecommerce as consumer demand slowed down on such third-party off-platform ecommerce.

Cost of Revenues

Cost of revenues was $202.6 million in the six months ended June 30, 2022, increased by 29.4% from $156.5 million in the six months ended June 30, 2021. The increase was primarily due to an increase in ocean freight cost compared to the six months ended June 30, 2021, and such increase is expected to stabilize in the rest of 2022.

Gross Profit and Gross Margin

Gross profit was $33.9 million in the six months ended June 30, 2022, decreased by 31.9% from $49.8 million in the six months ended June 30, 2021. Gross margin was 14.3% in the six months ended June 30, 2022, compared to 24.1% in the six months ended June 30, 2021.

Operating Expenses

Total operating expenses were $18.2 million in the six months ended June 30, 2022, decreased by 19.4% from $22.6 million in the six months ended June 30, 2021.

  • Selling and marketing expenses were $11.0 million in the six months ended June 30, 2022, decreased by 22.4% from $14.2 million in the six months ended June 30, 2021. The decrease was primarily due to a decrease in staff cost as the sales commission decreased.
  • General and administrative expenses were $7.2 million in the six months ended June 30, 2022, decreased by 14.4% from $8.4 million in the six months ended June 30, 2021. The decrease was primarily due to a decrease in professional service fees.

Operating Income

Operating income was $15.7 million in the six months ended June 30, 2022, decreased by 42.3% from $27.2 million in the six months ended June 30, 2021.

Income Tax Expenses

Income tax expenses were $2.8 million in the six months ended June 30, 2022, decreased by 42.4% from $4.9 million in the six months ended June 30, 2021.

Net Income

Net income was $10.8 million in the six months ended June 30, 2022, compared to $21.6 million in the six months ended June 30, 2021.

Basic and Diluted Earnings per Share

Basic and diluted earnings per share was $0.28 in the six months ended June 30, 2022, compared to $0.67 in the six months ended June 30, 2021.

Adjusted EBITDA

Adjusted EBITDA9 was $14.7 million in the six months ended June 30, 2022, compared to $26.7 million in the six months ended June 30, 2021.

________________________
9 Adjusted EBITDA is a non-GAAP financial measure. For more information on the non-GAAP financial measure, please see the section of “Non-GAAP Financial Measure” and the table captioned “Unaudited Reconciliation of Adjusted EBITDA” set forth at the end of this press release.

Balance Sheet

As of June 30, 2022, the Company had cash of $49.2 million and restricted cash of $1.5 million, compared to $63.2 million and $0.7 million as of December 31, 2021, respectively.

Cash Flow

Net cash used in operating activities was $10.3 million in the six months ended June 30, 2022, compared to $11.7 million in the six months ended June 30, 2021, primarily due to a decrease in net income and the changes in operating assets and liabilities, primarily driven by an increase in inventories in the second quarter of 2022 as shipping costs to procure inventories, including ocean freight costs, are included in inventories and the increase in ocean freight costs has contributed to an increase in inventories and cash outflows.

Net cash used in investing activities was $0.1 million in the six months ended June 30, 2022, compared to $0.6 million in the six months ended June 30, 2021, consisting primarily of cash paid for capital expenditures.

Net cash used in financing activities was $0.6 million in the six months ended June 30, 2022, compared to $0.9 million in the six months ended June 30, 2021, primarily due to cash paid for finance lease obligations.

Business Outlook

The Company expects its total revenues to be between $122 million and $127 million in the third quarter of 2022. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change and cannot be predicted with reasonable accuracy as of the date hereof.

Recent Developments

On August 22, 2022, the Company completed its initial public offering, and simultaneous closing of the full over-allotment option of 3,381,000 Class A ordinary shares at a public offering price of $12.25 per Class A ordinary share (the “Offering”). The gross proceeds of the Offering were approximately $41 million before deducting underwriting discounts and commissions and offering expenses. The Class A ordinary shares began trading on the Nasdaq Global Market on August 18, 2022, under the symbol “GCT.”

Furthermore, the Company granted share awards under its share incentive plans which could only be exercised upon the consummation of a qualified IPO before expiration date of ten years after the date of the awards. Upon the completion of the IPO, the performance condition of the awards was achieved. As a result, share-based compensation expense would be recognized in the third quarter of 2022 relating to these shares awards. As disclosed previously, unrecognized compensation expenses relating to the share-based awards is expected to be recognized cumulatively as of the completion of the IPO, which would lead to a significant decrease of net profit or even a net loss in the third quarter of 2022.

Conference Call

The Company will host an earnings conference call to discuss its financial results at 8:30 am U.S. Eastern Time (8:30 pm Beijing/Hong Kong Time) on September 30, 2022.

For participants who wish to join the call, please access the link provided below to complete the online registration process.

Registration Link:

Upon registration, participants will receive the dial-in number and unique PIN, which can be used to join the conference call. If participants register and forget their PIN or lose their registration confirmation email, they may simply re-register and receive a new PIN. All participants are encouraged to dial in 15 minutes prior to the start time.

A live and archived webcast of the conference call will be accessible on the Company’s investor relations website at:

About GigaCloud Technology Inc

GigaCloud Technology Inc is a pioneer of global end-to-end B2B ecommerce solutions for large parcel merchandise. The Company’s B2B ecommerce platform, which it refers to as the “GigaCloud Marketplace,” integrates everything from discovery, payments and logistics tools into one easy-to-use platform. The Company’s global marketplace seamlessly connects manufacturers, primarily in Asia, with resellers, primarily in the U.S., Asia and Europe, to execute cross-border transactions with confidence, speed and efficiency. The Company offers a truly comprehensive solution that transports products from the manufacturer’s warehouse to the end customer’s doorstep, all at one fixed price. The Company first launched its marketplace in January 2019 by focusing on the global furniture market and has since expanded into additional categories such as home appliances and fitness equipment. For more information, please visit the Company’s website:

Non-GAAP Financial Measures

The Company uses Adjusted EBITDA, which is net income excluding interest, income taxes and depreciation, further adjusted to exclude share-based compensation expenses, a non-GAAP financial measure, to understand and evaluate its core operating performance. Non-GAAP financial measure, which may differ from similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP.

For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliation of Adjusted EBITDA” set forth at the end of this press release.

Forward-Looking Statements

This press release contains “forward-looking statements”. Forward-looking statements reflect our current view about future events. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “could,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “propose,” “potential,” “continue” or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

For investor and media inquiries, please contact:

GigaCloud Technology Inc

Victor Neal
Email: investor.relations@gigacloudtech.com

Ascent Investor Relations LLC

Tina Xiao
Tel: +1-917-609-0333
Email: tina.xiao@ascent-ir.com

GigaCloud Technology Inc
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

      December 31,     June 30,  
      2021     2022  
      US$     US$  
ASSETS              
Current assets              
Cash     63,198     49,189  
Restricted cash     664     1,542  
Accounts receivable, net     18,036     23,438  
Inventories     81,441     103,385  
Prepayments and other current assets     9,080     6,740  
               
Total current assets   172,419     184,294  
             
Non-current assets              
Operating lease right-of-use assets         133,488  
Property and equipment, net     11,075     13,341  
Deferred tax assets     72     1,197  
Other non-current assets     3,211     3,003  
               
Total non-current assets   14,358     151,029  
             
Total assets   186,777     335,323  

GigaCloud Technology Inc
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (continued)
(In thousands)

      December 31,     June 30,  
      2021     2022  
      US$     US$  
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY            
Current liabilities              
Current portion of long-term borrowings     345     293  
Accounts payable (including accounts payable of VIEs without recourse to the Company of US$1,433 and US$3,436 as of December 31, 2021 and June 30, 2022, respectively)     25,140     30,756  
Contract liabilities (including contract liabilities of VIEs without recourse to the Company of US$394 and US$394 as of December 31, 2021 and June 30, 2022, respectively)     3,690     2,615  
Current operating lease liabilities (including current operating lease liabilities of VIEs without recourse to the Company of nil and US$1,844 as of December 31, 2021 and June 30, 2022, respectively)         29,049  
Income tax payable (including income tax payable of VIEs without recourse to the Company of US$78 and US$171 as of December 31, 2021 and June 30, 2022, respectively)     8,148     4,099  
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of VIEs without recourse to the Company of US$341 and US$300 as of December 31, 2021 and June 30, 2022, respectively)     19,721     22,511  
               
Total current liabilities     57,044     89,323  
             
Non‑current liabilities              
Long-term borrowings     237     55  
Operating lease liabilities, non-current (including operating lease liabilities, non-current of VIEs without recourse to the Company of nil and US$4,236 as of December 31, 2021 and June 30, 2022, respectively)         105,038  
Deferred tax liabilities     286     296  
Finance lease obligations, non-current     2,345     2,130  
Non-current income tax payable     1,033     3,397  
               
Total non‑current liabilities     3,901     110,916  
             
Total liabilities     60,945     200,239  
             
Commitments and contingencies        

GigaCloud Technology Inc
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (continued)
(In thousands except for share data and per share data)

      December 31,     June 30,  
      2021     2022  
      US$     US$  
Mezzanine equity          
Series E Preferred Shares (US$0.05 par value per share, 3,999,709 shares authorized, issued and outstanding; Redemption value of US$26,652 and US$27,396 as of December 31, 2021 and June 30, 2022, respectively; Liquidation value of US$25,000 as of December 31, 2021 and June 30, 2022, respectively)     26,652     27,396  
Total mezzanine equity     26,652     27,396  
           
Shareholders’ equity          
Ordinary shares (US$0.05 par value per share, 38,572,025 shares authorized; 11,082,930 and 15,875,571 shares issued and outstanding as of December 31, 2021 and June 30, 2022, respectively)     554     794  
Treasury shares, at cost (nil and 4,765,903 shares held as of December 31, 2021 and June 30, 2022, respectively)         (238 )
Subscription receivable from ordinary shares     (79 )   (81 )
Series A Preferred Shares (US$0.05 par value per share, 134,190 shares authorized, issued and outstanding; Liquidation value of US$6,710 as of December 31, 2021 and June 30, 2022)     7     7  
Series B Preferred Shares (US$0.05 par value per share, 9,991,588 shares authorized, issued and outstanding; Liquidation value of US$5,000 as of December 31, 2021 and June 30, 2022)     500     500  
Series C Preferred Shares (US$0.05 par value per share, 4,358,702 shares authorized, issued and outstanding)     218     218  
Series D Preferred Shares (US$0.05 par value per share, 2,943,786 shares authorized, issued and outstanding; Liquidation value of US$8,053 as of December 31, 2021 and June 30, 2022)     147     147  
Additional paid-in capital     37,439     37,638  
Accumulated other comprehensive income     (165 )   (1,951 )
Retained earnings     60,559     70,654  
           
Total shareholders’ equity     99,180     107,688  
     
Total liabilities, mezzanine equity and shareholders’ equity     186,777     335,323  

GigaCloud Technology Inc
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands except for share data and per share data)

    Three Months Ended June 30,   Six Months Ended June 30,
    2021     2022     2021     2022  
            Restated    
    US$   US$   US$   US$
             
Revenues                
Service revenues   23,551     32,823     43,969     64,041  
Product revenues   88,221     91,204     162,331     172,428  
                   
Total revenues   111,772     124,027     206,300     236,469  
                   
Cost of revenues                  
Services   (18,421 )   (28,344 )   (32,567 )   (57,545 )
Product sales   (64,445 )   (78,662 )   (123,939 )   (145,033 )
                   
Total cost of revenues   (82,866  )   (107,006 )   (156,506 )   (202,578 )
                   
Gross profit     28,906     17,021     49,794     33,891  
Operating expenses                  
Selling and marketing expenses   (6,829 )   (5,452 )   (14,188 )   (11,014 )
General and administrative expenses   (5,429 )   (3,336 )   (8,370 )   (7,163 )
                   
Total operating expenses     (12,258 )   (8,788 )   (22,558 )   (18,177 )
                   
Operating income     16,648     8,233     27,236     15,714  
Interest expense   (58 )   (136 )   (123 )   (300 )
Interest income   180     32     278     124  
Foreign currency exchange losses, net   (170 )   (1,062 )   (897 )   (2,292 )
Others, net   7     269     46     436  
                   
Income before income taxes     16,607     7,336     26,540     13,682  
Income tax expense   (2,985 )   (1,236 )   (4,935 )   (2,843 )
Net income   13,622       6,100     21,605     10,839  
               
Accretion of Redeemable Convertible Preferred Shares   (374 )   (374 )   (744 )   (744 )
                   
Net income attributable to ordinary shareholders   13,248     5,726     20,861     10,095  

GigaCloud Technology Inc
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (continued)
(In thousands except for share data and per share data)

    Three Months Ended June 30,   Six Months Ended June 30,
    2021     2022     2021     2022  
              Restated      
    US$     US$     US$     US$  
                 
Other comprehensive income (loss)                    
Foreign currency translation adjustment, net of nil income taxes   480     (1,717 )   445     (1,786 )
                     
Total other comprehensive income (loss)   480     (1,717 )   445     (1,786 )
                     
Comprehensive Income   14,102     4,383     22,050     9,053  
                     
Net income per ordinary share                    
— Basic and diluted   0.43     0.15     0.67     0.28  
Weighted average number of ordinary shares outstanding used in computing net income per ordinary share                    
— Basic and diluted   9,495,844     15,875,571     9,495,844     14,445,722  

GigaCloud Technology Inc
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

  Six Months Ended June 30,
  2021     2022  
  Restated        
  US$     US$  
Operating activities:      
Net Income 21,605     10,839  
Adjustments to reconcile net income to net cash provided by operating activities      
Allowance for doubtful accounts (40 )   38  
Inventory write-down 43     2,976  
Deferred tax (190 )   (1,115 )
Share‑based compensation     199  
Depreciation and amortization 266     659  
Lease expense to reduce right-of-use assets     17,080  
Others 122      
       
Changes in operating assets and liabilities:      
Accounts receivable (1,151 )   (5,440 )
Inventories (29,714 )   (24,920 )
Prepayments and other current assets (8,208 )   (4 )
Accounts payable 6,506     5,616  
Contract liabilities 737     (1,075 )
Income tax payable (1,350 )   (1,312 )
Accrued expenses and other current liabilities (358 )   291  
Operating lease liabilities   (14,141 )
       
Net cash used in operating activities (11,732 )   (10,309 )
       
Investing activities:      
Cash paid for purchase of property and equipment (604 )   (145 )
       
Net cash used in investing activities (604 )   (145 )

GigaCloud Technology Inc
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(In thousands)

  Six Months Ended June 30,
  2021     2022  
  Restated        
  US$     US$  
Financing activities:      
Cash paid for finance lease obligations (674 )   (2,009 )
Repayment of bank loans (251 )   (169 )
Proceeds from prepaid consideration of restricted shares     1,578  
       
Net cash (used in) provided by financing activities (925 )   (600 )
     
Effect of foreign currency exchange rate changes on cash and restricted cash 93     (2,077 )
       
Net decrease in cash and restricted cash (13,168 )   (13,131 )
       
Cash and restricted cash at the beginning of the period 62,197     63,862  
       
Cash and restricted cash at the end of the period 49,029     50,731  
     
Supplemental information      
Interest expense paid 123     300  
Income taxes paid 6,476     5,261  
       
Non-cash investing and financing activities:      
Purchase of property and equipment under finance leases     2,719  

GigaCloud Technology Inc
Unaudited Reconciliation of Adjusted EBITDA
(In thousands)

  Three Months Ended June 30,
  Six Months Ended June 30,
  2021     2022     2021     2022  
  US$     US$     US$     US$  
Net income         13,622     6,100     21,605     10,839  
Add: Income tax expense         2,985     1,236     4,935     2,843  
Add: Interest expense         58     136     123     300  
Less: Interest income         (180 )   (32 )   (278 )   (124 )
Add: Depreciation and amortization         138     348     266     659  
Add: Share-based compensation expense                     199  
Adjusted EBITDA         16,623     7,788     26,651     14,716  



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