omniture

Aoxin Tianli Group, Inc. Reports Second Quarter 2016 Financial Results

Company to Host Earnings Conference Call on Friday, August 12, 2016 at 8:00 a.m. ET
2016-08-12 04:30 2925

WUHAN, China, August 12, 2016 /PRNewswire/ -- Aoxin Tianli Group, Inc. (NASDAQ: ABAC) ("Aoxin Tianli" or the "Company"), a leading producer of breeder hogs, market hogs and black hogs, as well as specialty processed black hog pork products sold through retail outlets and the internet, with headquarters in Wuhan City, Hubei Province, China, today announced its financial results for the second quarter ended June 30, 2016.

Mr. Wocheng Liu, Chairman and Co-Chief Executive Officer of Aoxin Tianli Group, Inc., commented, "We are pleased to report solid financial results for the second quarter of 2016 with meaningful improvement in margins and a 26.4% increase in net income from continuing operations. We saw continued improvement in hog market fundamentals with average selling prices for our regular market hogs and black market hogs increasing by 16.5% and 24.8%, respectively, in the second quarter of 2016. Our black hog program remained strong with revenues from black market hog sales and retail growing by 30.8% and 24.4%, respectively, and together accounting for nearly half of our total revenues. However, demand for regular breeder hogs remained weak as both the number of breeder hogs sold and average selling price per hog decreased in the second quarter of 2016. This, combined with a reduction in the number of regular market hogs sold as a result of the sale of two hog farms in the third quarter of last year, led to a 2.4% decrease in overall revenues."

Mr. Liu continued, "Looking ahead, macroeconomics and the state of the hog industry in China will continue to have significant impact on us. While the unprecedented flooding early last month will put a dent in our near term results, we are cautiously optimistic about the long term outlook for our business with our strong balance sheet, established sales and distribution network, and the prospect of expansion beyond the Hubei market through acquisitions."

Three Months Ended June 30, 2016 Financial Results

Revenues


For the Three Months Ended June 30,

($ thousands, except per share data)

2016


2015


% Change

Revenues

$ 9,611


$ 9,852


-2.4%

Hog farming

9,232


9,547


-3.3%

Retail

379


305


24.4%

Gross margin

22.7%


20.7%


2.0%

Operating margin

12.0%


9.6%


2.4%

Net income

605


924


-34.5%

Continuing operations

1,217


963


26.4%

Discontinued component

(611)


(39)


1480.2%

Net income for common shareholders

679


919


-26.2%

Earnings (loss) per share

0.02


0.03


-23.4%

Continuing operations

0.04


0.03


31.2%

Discontinued components

(0.02)


(0.00)


1541.1%

Revenues for the second quarter of 2016 decreased by $0.24 million, or 2.4%, to $9.61 million from $9.85 million for the same period of last year. The decrease in revenues reflected a reduction in the number of regular hogs sold as a result of the sale of two hog farms during the third quarter of 2015 and was partially offset by an increase in the blended average selling price per hog.

Revenues from hog farming, which includes sales of regular breeder hogs, regular market hogs, and black hogs, decreased by $0.32 million, or 3.3%, to $9.23 million for the second quarter of 2016 from $9.55 million for the same period of last year. The Company sold a total of 33,834 regular breeder hogs, regular market hogs and black hogs with a blended average selling price of $273 per hog during the second quarter of 2016, compared to 40,970 hogs sold and a blended average selling price of $233 per hog for the same period of last year.


For the Three Months Ended June 30,


2016


2015


No. of
Hogs
Sold


Average
Price/Hog
($)


Sales
($ thousands)


No. of
Hogs
Sold


Average
Price/Hog
($)


Sales
($ thousands)

Breeder hogs - regular hogs

4,096


$ 253


$ 1,038


7,191


$ 271


$ 1,949

Market hogs - regular hogs

15,960


240


3,826


20,656


206


4,259

Market hogs - black hogs

13,778


317


4,368


13,123


254


3,340

Total Hog Farming

33,834


273


9,232


40,970


233


9,547


















Kilogram


Average
Price/kg($)


Sales
($ thousands)


Kilogram


Average
Price/kg ($)


Sales
($ thousands)

Retail - specialty black hog pork
products

80,368


$ 5


$ 379


67,155


$ 5


$ 305

Revenues for the second quarter of 2016 from regular breeder hog sales decreased by 46.7% to $1.04 million with the number of regular breeder hogs sold decreasing by 43.0% to 4,096 hogs and the average selling price of regular breeder hogs decreasing by 6.6% to $253 per hog. Revenues for the second quarter of 2016 from regular market hog sales decreased by 10.2% to $3.83 million as the number of regular market hogs sold decreased by 22.7% to 15,960 hogs while the average selling price of regular market hogs increased by 16.5% to $240 per hog. Revenues for the second quarter of 2016 from black market hogs increased by 30.8% to $4.37 million with the number of black hogs sold increasing by 5.0% to 13,778 hogs and the average selling price of black hogs increasing by 24.8% to $317 per hog.

We sold 80,368 kilograms of specialty black hog pork products through retail at approximately $5 per kilogram, generating revenues of $0.38 million for the second quarter of 2016. This compares to 67,155 kilograms sold at approximately $5 per kilogram and revenues of $0.31 million for the same period of last year. These revenues, combined with the sales of black market hogs, led to $4.75 million in revenues from our black hog program for the second quarter of 2016, compared to $3.64 million for the same period of last year.

The results of operations of Hang-ao and OV Orange and their wholly owned subsidiaries, were reclassified as discontinued operations in the Company's financial statements for the three months and six months ended June 30, 2016 and 2015 based on the Company's decision to focus on the hog industry and sell both subsidiaries in the near future. OV Orange was sold on December 29, 2015. We have not found a buyer for Hang-ao as of today.

Gross profit

Cost of goods sold decreased by $0.38 million, or 4.9%, to $7.43 million for the second quarter of 2016 from $7.82 million for the same period of last year. Cost of goods sold for hog farming decreased by $0.44 million, or 5.8%, to $7.15 million for the second quarter of 2016 from $7.59 million for the same period of last year, benefitting from a reduction in the purchase prices for our feeds and the sale of two farms during the third quarter of 2015. Cost of goods sold for retail increased by $0.06 million, or 24.3%, to $0.29 million for the second quarter of 2016 from $0.23 million for the same period of last year.

Overall gross profit increased by $0.14 million, or 7.1%, to $2.18 million for the second quarter of 2016 from $2.03 million for the same period of last year.

Gross profits for hog farming and retail were $2.09 million and $0.09 million, respectively, for the second quarter of 2016, compared to $1.96 million and $0.08 million, respectively, for the same period of last year.

Overall gross margin was 22.7%, with gross margins for hog farming and retail of 22.6% and 24.5%, respectively, for the second quarter of 2016. This compared to overall gross margin of 20.7%, and gross margins for hog farming and retail of 20.5% and 24.6%, respectively, for the same period of last year.

Operating income

Total operating expenses, including general and administrative expenses and selling and marketing expenses, decreased by $0.06 million, or 5.8%, to $1.03 million for the second quarter of 2016 from $1.09 million for the same period of last year. The decrease was primarily the result of a decrease in our depreciation and amortization expenses from the disposal of our hog farms in 2015.

Operating income for the second quarter of 2016 was $1.15 million, compared to an operating income of $0.94 million for the same period of last year. Operating margin for the second quarter of 2016 was 12.0%, compared to operating margin of 9.6% for the same period of last year.

Net income

Net income decreased by $0.32 million, or 34.5%, to $0.61 million for the second quarter of 2016 from $0.92 million for the same period of last year. Our net income from continuing operations, including both hog farming and retail increased by $0.25 million, or 26.4%, to $1.22 million for the second quarter of 2016 from $0.96 million for the same period of last year. Net loss from our discontinued operations, including both Hang-ao and OV Orange, was $0.61 million for the second quarter of 2016, compared to $0.04 million for the same period of last year.

After the deduction of non-controlling interests, net income attributable to common shareholders for the second quarter of 2016 was $0.68 million, or $0.02 per diluted share. This compared to net income attributable to common shareholders of $0.92 million, $0.03 per diluted share, for the same period of last year.

Six Months Ended June 30, 2016 Financial Results

Revenues


For the Six Months Ended June 30,

($ thousands, except per share data)

2016


2015


% Change

Revenues

$ 18,670


$ 19,440


-4.0%

Hog farming

17,871


18,639


-4.1%

Retail

799


801


-0.2%

Gross margin

22.9%


18.4%


4.5%

Operating margin

11.8%


3.3%


8.5%

Net income

331


708


-53.2%

Continuing operations

2,353


604


289.7%

Discontinued component

(2,022)


104


NM

Net income for common shareholders

574


679


-15.6%

Earnings (loss) per share

0.01


0.02


-50.0%

Continuing operations

0.07


0.02


250.0%

Discontinued components

(0.06)


-


NM

Revenues for the six months ended June 30, 2016 decreased by $0.77 million, or 4.0%, to $18.67 million from $19.44 million for the same period of last year. The decrease in revenues reflected a reduction in the number of hogs sold as a result of the sale of two hog farms during the third quarter of 2015 and was partially offset by an increase in the average selling price per hog.

Revenues from hog farming, which includes sales of regular breeder hogs, regular market hogs, and black hogs, decreased by $0.77 million, or 4.1%, to $17.87 million for the six months ended June 30, 2016 from $18.64 million for the same period of last year. The Company sold a total of 68,946 regular breeder hogs, regular market hogs and black hogs with a blended average selling price of $259 per hog during the six months ended June 30, 2016, compared to 84,765 hogs sold and a blended average selling price of $220 per hog for the same period of last year.


For the Six Months Ended June 30,


2016


2015


No. of
Hogs
Sold


Average
Price/Hog
($)


Sales
($ thousands)


No. of
Hogs
Sold


Average
Price/Hog
($)


Sales
($ thousands)

Breeder hogs - regular hogs

8,436


$ 253


$ 2,133


14,374


$ 267


$ 3,836

Market hogs - regular hogs

31,890


229


7,307


41,999


194


8,160

Market hogs - black hogs

28,620


295


8,431


28,392


234


6,642

Total Hog Farming

68,946


259


17,871


84,765


220


18,639


















Kilogram


Average
Price/kg($)


Sales
($ thousands)


Kilogram


Average
Price/kg ($)


Sales
($ thousands)

Retail - specialty black hog pork
products

167,752


$ 5


$ 799


182,087


$ 4


$ 801

Revenues for the six months ended June 30, 2016 from regular breeder hog sales decreased by 44.4% to $2.13 million with the number of regular breeder hogs sold decreasing by 41.3% to 8,436 hogs and the average selling price of regular breeder hogs decreasing by 5.2% to $253 per hog. Revenues for the six months ended June 30, 2016 from regular market hog sales decreased by 10.5% to $7.31 million as the number of regular market hogs sold decreased by 24.1% to 31,890 hogs while the average selling price of regular market hogs increased by 18.0% to $229 per hog. Revenues for the six months ended June 30, 2016 from black market hogs increased by 26.9% to $8.43 million with the number of black hogs sold increasing by 0.8% to 28,620 hogs and the average selling price of black hogs increasing by 26.1% to $295 per hog.

We sold 167,752 kilograms of specialty black hog pork products through retail at approximately $5 per kilogram, generating revenues of $0.80 million for the six months ended June 30, 2016. This compares to 182,087 kilograms sold at approximately $4 per kilogram and revenues of $0.80 million for the same period of last year. These revenues, combined with the sales of black market hogs, led to $9.23 million in revenues from our black hog program for the six months ended June 30, 2016, compared to $7.44 million for the same period of last year.

The results of operations of Hang-ao and OV Orange and their wholly owned subsidiaries, were reclassified as discontinued operations in the Company's financial statements for the three months and six months ended June 30, 2016 and 2015 based on the Company's decision to focus on the hog industry and sell both subsidiaries in the near future. OV Orange was sold on December 29, 2015. We have not found a buyer for Hang-ao as of today.

Gross profit

Cost of goods sold decreased by $1.47 million, or 9.3%, to $14.39 million for the six months ended June 30, 2016 from $15.86 million for the same period of last year. Cost of goods sold for hog farming decreased by $1.46 million, or 9.6%, to $13.79 million for the six months ended June 30, 2016 from $15.25 million for the same period of last year. The decrease in cost of goods sold primarily results from a reduction in costs in our Hog Farming segment which decreased $1,459,314, as a result of a reduction in the purchase prices for our feeds and the sale of two of our farms. Cost of goods sold for retail decreased by $0.01 million, or 1.8%, to $0.60 million for the six months ended June 30, 2016 from $0.61 million for the same period of last year.

Overall gross profit increased by $0.70 million, or 19.6%, to $4.28 million for the six months ended June 30, 2016 from $3.58 million for the same period of last year.

Gross profits for hog farming and retail were $4.08 million and $0.20 million, respectively, for the six months ended June 30, 2016, compared to $3.39 million and $0.19 million, respectively, for the same period of last year.

Overall gross margin was 22.9%, with gross margins for hog farming and retail of 22.8% and 24.9%, respectively, for the six months ended June 30, 2016. This compared to overall gross margin of 18.4%, and gross margins for hog farming and retail of 18.2% and 23.7%, respectively, for the same period of last year.

Operating income

Total operating expenses, including general and administrative expenses and selling and marketing expenses, decreased by $0.86 million, or 29.2%, to $2.08 million for the six months ended June 30, 2016 from $2.93 million for the same period of last year. The decrease was primarily the result of a cancelation of stock grants to key employees which generated non-cash compensation expense of $0.36 million in 2015, a decrease of $0.61 million in our depreciation and amortization expenses as a result of the disposal of two hog farms in 2015, and a decrease of $0.12 million in bad debt expense.

Operating income increased by $1.56 million, or 241.3%, to $2.20 million for the six months ended June 30, 2016 from $0.65 million for the same period of last year. Operating margin for the six months ended June 30, 2016 was 11.8%, compared to operating margin of 3.3% for the same period of last year.

Net income

Net income decreased by $0.38 million, or 53.2%, to $0.33 million for the six months ended June 30, 2016 from $0.71 million for the same period of last year. Our net income from continuing operations, including both hog farming and retail, increased by $1.75 million, or 289.7%, to $2.35 million for the six months ended June 30, 2016 from $0.60 million for the same period of last year. Net loss from the operations of our discontinued operations, Hang-ao and OV Orange, was $2.02 million for the six months ended June 30, 2016, compared to net income of $0.10 million for the same period of last year.

After the deduction of non-controlling interests, net income attributable to common shareholders for the six months ended June 30, 2016 was $0.57 million, or $0.02 per diluted share. This compared to net income attributable to common shareholders of $0.68 million, $0.02 per diluted share, for the same period of last year.

Financial Condition

As of June 30, 2016, the Company had cash and cash equivalents of $52.44 million, compared to $49.66 million at the end of 2015. Working capital as of June 30, 2016 was $60.70 million as compared to $63.98 million at December 31, 2015. Net cash provided by operating activities was $7.25 million for the six months ended June 30, 2016, compared to $9.11 million for the same period of last year. Net cash used in investing activities was $3.00 million for the six months ended June 30, 2016, primarily for purchases of new equipment for our hog farms. This compared to net cash provided by investing activities of $1.62 million for the same period of last year, mostly generated by our discontinued operations. Net cash used in financing activities was $0.31 for the six months ended June 30, 2016, compared to $3.47 million used in financing activities for the same period of last year.

Company Update

On July 19, 2016, the Company announced it had entered into a Letter of Intent to acquire a majority stake in Hannan Chengmai Zaohuaxiang Hog Industry Co., Ltd, a high-end specialty black hog farm operator based in Hainan Province with annual production capacity of 30,000 hogs. The transaction is subject to due diligence investigations by the relevant parties, the negotiation and execution of definitive agreements, the approval of the Company's Board of Directors, and the satisfaction of other customary closing conditions.

On July 12, 2016, the Company announced that its hog farms in Wuhan City and some of the independently operated black hog farms in Enshi Prefecture were damaged as torrential rains caused devastating flooding in southern China in early July with Wuhan City being one of the hardest hit areas. The Company expects total losses associated with the floods to be approximately $1.5 million to $2 million.

On June 16, 2016, the Company announced that the Board of Directors of the Company has appointed Mr. "Tommy" Chun Choi Law as the Company's Chief Financial Officer, replacing Mr. Houliang Yu, who resigned as Chief Financial Officer of the Company on June 13, 2016.

On June 2, 2016, the Company announced that upon the recommendation of Mrs. Hanying Li, its Board of Directors has elected Mr. Wocheng Liu as a Director, the Chairman of the Board, and Co- Chief Executive Officer of the Company. Mrs. Li resigned from her position as Chairperson of the Company to accommodate the election of Mr. Liu. Mrs. Li will remain with Aoxin Tianli as a member of the Board of Directors and Co-Chief Executive Officer. Mrs. Li and Mr. Liu will have equal responsibility and authority as Co-CEOs, with Mrs. Li focusing on internal operations and Mr. Liu on external affairs and business development.

Earnings Conference Call

Aoxin Tianli will host an earnings conference call and live webcast covering its second quarter of 2016 financial results at 8:00 a.m. ET on August 12, 2016, which is 8:00 p.m. in Beijing on August 12, 2016. To attend the call, please use the information below for either dial-in access or webcast access. When prompted on dial-in, ask for "AoxinTianli / ABAC".

Conference Call


Date:

Friday, August 12, 2016

Time:

8:00 am ET, U.S.

U.S. Dial-in:

+1 877-317-6789

International Dial-in:

+1 412-317-6789

Conference ID:

Aoxin Tianli / ABAC

Webcast Link:

http://mms.prnasia.com/ABAC/20160812/default.aspx

For those unable to participate, an audio replay of the call will be available beginning approximately one hour after the end of the live call through August 19, 2016. The audio replay can be accessed by dialing +1-877-344-7529 within the United States or +1-412-317-0088 internationally, and entering access ID No. 10091213.

About Aoxin Tianli Group, Inc.

Aoxin Tianli Group, Inc. (the "Company"), previously known as Tianli Agritech, Inc., is in the business of breeding, raising and selling breeder and market hogs in China. The Company also sells specialty processed black hog pork products through supermarkets and other retail outlets, as well as the internet.

Forward-Looking Statements

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulations, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by this cautionary statement and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

For more information, please contact:

Tina Xiao
Weitian Group LLC
Phone: +1-917-609-0333
Email: tina.xiao@weitian-ir.com

AOXIN TIANLI GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS




June 30,


December 31,



2016


2015



(Unaudited)



ASSETS





Current Assets:





Cash and cash equivalents

$

52,441,600

$

49,656,897

Accounts receivable, net


106,650


292,684

Inventories, net


5,994,381


5,656,165

Advances to suppliers, net


3,596,568


7,823,138

Prepaid expenses


204,756


816,646

Other receivables, net


304,440


312,161

Restricted cash


-


9,242,571

Assets from discontinued operations


5,863,186


7,926,437

Total Current Assets


68,511,581


81,726,699






Long-term prepaid expenses, net


1,304,315


1,389,144

Plant and equipment, net


24,659,685


23,410,803

Biological assets, net


1,729,415


1,580,847

Intangible assets, net


2,640,744


2,802,948






Total Assets

$

98,845,740

$

110,910,441






LIABILITIES AND STOCKHOLDERS' EQUITY










Current Liabilities:





Short-term loans

$

2,709,476

$

-

Bank acceptance notes payable


-


12,323,428

Accounts payable and accrued payables


74,269


19,655

Other payables


2,720,027


3,041,085

Liabilities from discontinued operations


2,311,312


2,359,696

Total Liabilities


7,815,084


17,743,864






Stockholders' Equity:





Common stock ($0.001 par value, 100,000,000
shares authorized, 31,952,000 shares issued
and outstanding as of June 30, 2016 and
33,203,000 shares issued and 33,183,000
shares outstanding as of December 31, 2015)


31,952


33,183

Additional paid in capital


61,395,561


61,743,410

Statutory surplus reserves


2,457,180


2,457,180

Retained earnings


29,168,967


28,595,306

Accumulated other comprehensive loss


(3,154,148)


(1,018,861)

Stockholders' Equity - Aoxin Tianli Group Inc. and Subsidiaries


89,899,512


91,810,218

Noncontrolling interest


1,131,144


1,356,359

Total Stockholders' Equity


91,030,656


93,166,577

Total Liabilities and Stockholders' Equity

$

98,845,740

$

110,910,441

AOXIN TIANLI GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(UNAUDITED)




For the Three Months Ended June 30,


For the Six Months Ended June 30,



2016


2015


2016


2015



















Revenues

$

9,610,789

$

9,851,501

$

18,670,057

$

19,439,916

Cost of goods sold


7,431,963


7,816,752


14,390,715


15,860,608

Gross profit


2,178,826


2,034,749


4,279,342


3,579,308










Operating expenses:









General and administrative expenses


914,129


925,587


1,858,064


2,572,569

Selling expenses


115,903


168,333


218,191


361,172

Total operating expenses


1,030,032


1,093,920


2,076,255


2,933,741










Income from operations


1,148,794


940,829


2,203,087


645,567










Other income (expense):









Interest income


59,606


20,106


141,449


25,239

Other income (expense), net


8,206


1,815


8,665


(66,939)

Total other income (expense)


67,812


21,921


150,114


(41,700)










Income before income taxes


1,216,606


962,750


2,353,201


603,867










Income taxes


-


-


-


-

Net income from continuing operations


1,216,606


962,750


2,353,201


603,867










Discontinued operations:









Gain (loss) from operations of discontinued component, net of
taxes


(611,417)


(38,693)


(2,022,204)


103,678

Gain from disposal of discontinued component, net of taxes


-


-


-


-










Net income


605,189


924,057


330,997


707,545

Net loss (income) attributable to noncontrolling interest


73,370


(4,655)


242,664


(28,094)

Net income attributable to Aoxin Tianli Group Inc.
common stockholders


678,559


919,402


573,661


679,451










Other comprehensive income(loss):









Unrealized foreign currency translation adjustment


(2,743,550)


386,460


(2,135,287)


950,524










Comprehensive income (loss)

$

(2,064,991)

$

1,305,862

$

(1,561,626)

$

1,629,975










Earnings (losses)per share attributable to Aoxin Tianli
Group Inc. common stockholders - basic and diluted:









Weighted-average shares outstanding, basic and diluted


31,952,000


33,183,000


32,536,833


32,643,000










Continuing operations - Basic & diluted

$

0.04

$

0.03

$

0.07

$

0.02

Discontinued operations - Basic & diluted

$

(0.02)

$

-

$

(0.06)

$

-

AOXIN TIANLI GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS









For the Six Months Ended June 30,



2016


2015











CASH FLOWS FROM OPERATING ACTIVITIES





Net income from continuing operations

$

2,353,201

$

603,867

Adjustments to reconcile net income to net cash





provided by operating activities:





Depreciation and amortization


1,194,716


1,588,659

Amortization of prepaid expenses


261,744


145,314

Amortization of long-term prepaid expenses


53,997


788,633

Bad debt expense


-


117,000

Loss from farm shutdown


-


12,063

Loss from disposal of biological assets


427,071


157,516

Changes in operating assets and liabilities:





Accounts receivable


182,316


44,426

Inventories


2,764,344


4,294,202

Advances to suppliers


-


514,202

Prepaid expenses


(11,879)


(54,829)

Other receivables


605


(389,746)

Accounts payable and accrued payables


67,973


-

Advances from customers


-


(45,349)

Other payables


-


(82,427)

Total adjustments


4,940,887


7,089,664

Net cash provided by operating activities from continuing
operations


7,294,088


7,693,531

Net cash provided by (used in) operating activities from
discontinued operations


(41,000)


1,412,119

Net cash provided by operating activities


7,253,088


9,105,650






CASH FLOWS FROM INVESTING ACTIVITIES





Purchase of biological assets


-


(589)

Purchase of plant and equipment


(3,002,759)


(275)

Net cash used in investing activities from continuing
operations


(3,002,759)


(864)

Net cash provided by investing activities from
discontinued operations


-


1,625,037

Net cash provided by (used in) investing activities


(3,002,759)


1,624,173






CASH FLOWS FROM FINANCING ACTIVITIES





Restricted cash received from (deposited to) banks


9,180,826


(3,271,823)

Due to (from) related party


-


(50,281)

Proceeds from short-term loans


2,754,248


-

Repayment of short-term loans


(12,241,101)


(1,635,912)

Net cash used in financing activities from continuing
operations


(306,027)


(4,958,016)

Net cash provided by financing activities from
discontinued operations


-


1,486,493

Net cash used in financing activities


(306,027)


(3,471,523)






EFFECT OF EXCHANGE RATE CHANGES ON CASH


(1,159,599)


424,543






NET INCREASE IN CASH


2,784,703


7,682,843






CASH, BEGINNING OF PERIOD


49,656,897


39,123,869






CASH, END OF PERIOD

$

52,441,600

$

46,806,712






SUPPLEMENTAL DISCLOSURES:





Cash paid during the period for:





Interest paid

$

-

$

45,180

Income tax paid

$

-

$

87,119






NON-CASH TRANSACTIONS OF INVESTING AND FINANCING ACTIVITIES





Prepayments for raw material purchases made with bank acceptance notes

$

-

$

6,518,799

Shares issued to employees

$

-

$

1,433,700

Inventories received from prior year prepayments

$

4,114,878

$

-

Inventories transferred to biological assets

$

875,481

$

-

Cancelation of shares related to Hang-ao acquisition

$

1,047

$

-

Cancelation of shares related to employees' compensation

$

361,080

$

-

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/aoxin-tianli-group-inc-reports-second-quarter-2016-financial-results-300312438.html

Source: Aoxin Tianli Group, Inc.
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