omniture

Fuling Global Inc. Reports Second Quarter 2017 Financial Results

2017-08-12 04:30 4700

Revenues Grew by 24.2% to $30.5 Million, with Sales Volume and Blended ASP Increasing by 13.8% and 9.2%, Respectively

ALLENTOWN, Pa., Aug. 12, 2017 /PRNewswire/ -- Fuling Global Inc. (NASDAQ: FORK) ("Fuling Global" or the "Company"), a specialized producer and distributor of plastic serviceware, with precision manufacturing facilities in both the U.S. and China, today announced its financial results for the three and six months ended June 30, 2017.

Mr. Xinfu Hu, Chief Executive Officer of Fuling Global, commented, "We are pleased to report solid second quarter results that highlighted continued strength in our business. Total revenues increased by 24.2% to $30.5 million in the second quarter with sales volume and blended average selling price ("ASP") grew 13.8% and 9.2%, respectively. However, our margins and profitability decreased as a result of increases in operating expenses and unit cost of material (particularly Polypropylene), which we were not able to fully pass over to our customers, as well as decrease in subsidy income from local government this year. With a robust order book and significant increase in production capacity with the opening of the new factory, we look forward to continuing momentum in our business revenues for the remainder of year and beyond."

Ms. Guilan Jiang, Chairwoman of Fuling Global, added, "We completed the construction and launched the commercial production of the new state-of-the-art factory in Wenling (Phase I) during the second quarter, allowing us to increase production capacity by at least 30% this year. We also launched Phase II expansion of the new factory earlier this month which is expected to be completed by the end of 2018 with the addition of new production lines, an office building and two dormitory buildings. As we continue to make significant progress in executing our carefully planned strategic plan, we firmly believe our best years are yet to come."

Second Quarter 2017 Highlights



For the Three Months Ended June 30,

($ millions, except per share data)


2017


2016


% Change

Revenues


$30.5


$24.6


24.2%

Gross profit


$6.3


$7.3


-14.3%

Gross margin


20.6%


29.8%


-9.2 percentage points

Operating income


$1.9


$3.7


-47.9%

Operating margin


6.3%


15.1%


-8.8 percentage points

Net income attributable to Fuling Global


$1.5


$4.7


-68.0%

Diluted earnings per share


$0.10


$0.30


-68.0%

  • Revenues increased by 24.2% to $30.5 million for the second quarter of 2017 from $24.6 million for the same period of last year, as a result of the combined effect of increases both sales volume and blended ASP.
  • Total sales volume increased by 13.8% to 12,185 tons for the second quarter of 2017 from 10,709 tons for the same period of last year. The increase in sales volume was mainly related to straws, cups and plates, and other products. Blended ASP also increased by 9.2% to $2.51 per kilogram for the second quarter of 2017 from $2.30 per kilogram for the same period of last year, as ASPs for cutlery, straws and others increased while ASP for cups and plates decreased.
  • Net income attributable to Fuling Global decreased by 68.0% to $1.5 million, or $0.10 per basic and diluted share, for the second quarter of 2017 from $4.7 million, or $0.30 per basic and diluted share, for the same period of last year. The decreases in net income and earnings per share were primarily due to lower gross profit and subsidy income received from local government as well as higher operating expenses this year.
  • Gross profit decreased by 14.3% to $6.3 million for the second quarter of 2017 from $7.3 million for the same period of last year. Gross margin decreased by 9.2 percentage points to 20.6% from 29.8% for the same period of last year. The decrease in gross margin was primarily due to increase in the price of raw material, particularly Polypropylene. 
  • The company announced the opening of the new manufacturing facility (the "New Factory") in Wenling City in June, 2017. Phase I of the New Factory was completed in April 2017 that would allow the Company to increase annual production capacity by more than 30% this year. Phase II expansion of the New Factory, which includes the construction of new production lines, an office building and tow dormitory buildings with total capex budget of approximately $11.1 million, started this month and is expected to complete by the end of 2018.

Second Quarter 2017 Financial Results

Revenues

For the second quarter of 2017, total revenues increased by $6.0 million, or 24.2%, to $30.5 million from $24.6 million for the same period of last year. The increase in total revenues was a combined result of increases in both sales volume and blended ASP.

Overall sales volume increased by 1,476 tons, or 13.8%, to 12,185 tons for the second quarter of 2017 from 10,709 tons for the same period of last year. The increase in overall sales volume was mainly related to cups and plates as well as straws. Blended ASP increased by $0.21 per kilogram, or 9.2%, to $2.51 per kilogram for the second quarter of 2017 from $2.30 per kilogram for the same period of last year. The increase in blended ASP was mainly related to straws and other products and partially offset by decrease in ASP for cups and plates and cutlery.

Revenues from cutlery sales were essentially unchanged at $14.7 million for the second quarter of 2017. Revenues from straws sales increased by $3.0 million, or 124.4%, to $5.4 million for the second quarter of 2017 from $2.4 million for the same period of last year. Revenues from cups and plates sales increased by $2.5 million, or 43.4%, to $8.3 million for the second quarter of 2017 from $5.8 million for the same period of last year. Revenues from other products sales increased by $0.4 million, or 26.8%, to $2.1 million for the second quarter of 2017 from $1.6 million for the same period of last year. Cutlery, straws, cups and plates, and other products accounted for 48.0%, 17.8%, 27.3%, and 6.8% of total revenues for the second quarter of 2017, compared to 59.8%, 9.9%, 23.6%, and 6.7% for the same period of last year, respectively.


For the Three Months Ended June 30,



2017



2016



Y/Y Change



Revenues ($'000)


% of Total



Revenues ($'000)


% of Total



Amount ($'000)


%

Cutlery

$

14,678


48.1%


$

14,711


59.8%


$

(33)


-0.2%

Straws


5,449


17.8%



2,428


9.9%



3,021


124.4%

Cups and plates


8,335


27.3%



5,811


23.6%



2,524


43.4%

Others


2,085


6.8%



1,644


6.7%



440


26.8%

Total

$

30,547


100.0%


$

24,594


100.0%


$

5,953


24.2%

On a geographical basis, sales in the U.S., Fuling Global's largest market, increased by $3.7 million, or 16.5%, to $26.2 million for the second quarter of 2017 from $22.5 million for the same period of last year. Sales in Europe also increased by $0.4 million, or 37.1%, to $1.4 million for the second quarter of 2017 from $1.0 million for the same period of last year. Sales in China, our second largest market, were the strongest and increased by $1.4 million, or 326.1%, to $1.8 million for the second quarter of 2017 from $0.4 million for the same period of last year. Sales in other regions increased by $0.4 million, or 119.2%, to $0.7 million for the second quarter of 2017 from $0.3 million for the same period of last year.



For the Three Months Ended June 30,



2017



2016



Y/Y Change



Revenues ($'000)


% of Total



Revenues ($'000)


% of Total



Amount ($'000)


%

U.S.

$

26,242


85.9%


$

22,529


91.6%


$

3,713


16.5%

Europe


1,392


4.6%



1,015


4.1%



377


37.1%

China


1,847


6.0%



433


1.8%



1,414


326.1%

Canada


347


1.1%



289


1.2%



58


20.1%

Others


719


2.4%



328


1.3%



391


119.2%

Total

$

30,547


100.0%


$

24,594


100.0%


$

5,953


24.2%

Gross profit

Total cost of goods sold increased by $7.0 million, or 40.6%, to $24.3 million for the second quarter of 2017 from $17.3 million for the same period of last year. The increase was mainly due to increased sale volume as well as higher unit price of raw materials, particularly Polypropylene. Gross profit decreased by $1.0 million, or 14.3%, to $6.3 million for the second quarter of 2017 from $7.3 million for the same period of last year. Gross margin was 20.6% the second quarter of 2017, compared to 29.8% for the same period of last year. The decline in gross margin percentage was primarily due to increase in raw material cost partially offset by increase in ASP.  It usually takes one to two quarters to successfully implement price increases to customers after increase in material prices.

Operating income

Selling expenses increased by $0.5 million, or 34.0%, to $1.9 million for the second quarter of 2017 from $1.5 million for the same period of last year. As a percentage of sales, selling expenses were 6.4% in the second quarter of 2017, compared to 5.9% in the same period of last year. General and administrative expenses increased by $0.3 million, or 17.0%, to $1.7 million for the second quarter of 2017 from $1.5 million for the same period of last year. As a percentage of sales, general and administrative expenses were 5.7% in the second quarter of 2017, compared to 6.0% in the same period of last year. Research and development expenses were essentially unchanged at $0.7 million for the second quarter of 2017. We expect R&D expense to stay at current levels as we continued to conduct research and development activities, especially seeking to increase the use of environmentally-friendly materials, develop biodegradable materials and reduce reliance on fossil-based raw materials. 

As a result, total operating expenses increased by $0.7 million, or 20.4%, to $4.3 million for the second quarter of 2017 from $3.6 million for the same period of last year.

Operating income decreased by $1.8 million, or 47.9%, to $1.9 million for the second quarter of 2017 from $3.7 million for the same period of last year. Operating margin was 6.3% for the second quarter of 2017, compared to 15.1% for the same period of last year. The decrease in operating margin was due to increase in operating expenses as a percentage of sales as well as decrease in gross margin.

Income before income taxes

Total net other expense, which includes interest income and expenses, subsidy income and other non-operating income and expenses, was $0.1 million for the second quarter of 2017, compared to total net other income of $1.7 million for the same period of last year.

Income before income taxes decreased by $3.6 million, or 65.9%, to $1.9 million for the second quarter of 2017 from $5.5 million for the same period of last year. The decrease was primarily due to lower gross margin, higher operating expenses and lower subsidy income received from local government this year.

Provision for income taxes was $0.3 million for the second quarter of 2017, compared to $0.6 million for the same period of last year.  

Net income

Net income decreased by $3.3 million, or 68.7%, to $1.5 million for the second quarter of 2017 from $4.8 million for the same period of last year. After deduction of non-controlling interest, net income attributable to Fuling Global decreased by $3.2 million, or 68.0%, to $1.5 million for the second quarter of 2017 from $4.7 million for the same period of last year.

Basic and diluted earnings per share were $0.10 for the second quarter of 2017, compared to $0.30 for the same period of last year. The decrease in earnings per share was mainly due to a decrease in net income as a result of lower gross margin, higher operating expenses and lower subsidy income in 2017.

First Half 2017 Financial Results



For the Six Months Ended June 30,

($ millions, except per share data)


2017


2016


% Change

Revenues


$56.9


$45.2


25.9%

Gross profit


$11.4


$12.5


-9.3%

Gross margin


20.0%


27.8%


-7.8 percentage points

Operating income


$3.4


$4.8


-28.8%

Operating margin


6.0%


10.6%


-4.6 percentage points

Net income attributable to Fuling Global


$2.9


$5.4


-46.6%

Diluted earnings per share


$0.18


$0.34


-46.6%

Revenues

For the first half of 2017, total revenues increased by $11.7 million, or 25.9%, to $56.9 million from $45.2 million for the same period of last year. The increase in total revenues was a combined result of increases in both sales volume and blended ASP.

Overall sales volume increased by 3,596 tons, or 19.6%, to 21,934 tons for the first half of 2017 from 18,338 tons for the same period of last year. The increase in overall sales volume was across the board, particularly related to cups and plates as well as straws. Blended ASP increased by $0.13 per kilogram, or 5.3%, to $2.59 per kilogram for the first half of 2017 from $2.46 per kilogram for the same period of last year. The increase in blended ASP was mainly related to straws and other products and partially offset by decrease in ASP for cups and plates.

Revenues from cutlery sales increased by $1.0 million, or 3.6%, to $27.3 million for the first half of 2017 from $26.4 million for the same period of last year. Revenues from straws sales increased by $4.5 million, or 100.4%, to $9.1 million for the first half of 2017 from $4.5 million for the same period of last year. Revenues from cups and plates sales increased by $4.4 million, or 38.8%, to $15.7 million for the first half of 2017 from $11.3 million for the same period of last year. Revenues from other products sales increased by $1.8 million, or 62.3%, to $4.8 million for the first half of 2017 from $2.9 million for the same period of last year. Cutlery, straws, cups and plates, and other products accounted for 48.1%, 15.9%, 27.6%, and 8.4% of total revenues for the first half of 2017, compared to 58.4%, 10.0%, 25.0%, and 6.5% for the same period of last year, respectively.


For the Six Months Ended June 30,



2017



2016



Y/Y Change



Revenues ($'000)


% of Total



Revenues ($'000)


% of Total



Amount ($'000)


%

Cutlery

$

27,341


48.1%


$

26,391


58.4%


$

950


3.6%

Straws


9,064


15.9%



4,522


10.0%



4,542


100.4%

Cups and plates


15,702


27.6%



11,315


25.0%



4,386


38.8%

Others


4,778


8.4%



2,943


6.5%



1,835


62.3%

Total

$

56,885


100.0%


$

45,172


100.0%


$

11,713


25.9%

On a geographical basis, sales in the U.S., Fuling Global's largest market, increased by $7.6 million, or 168.1%, to $49.6 million for the first half of 2017 from $42.0 million for the same period of last year. Sales in Europe increased by $0.6 million, or 41.2%, to $2.0 million for the first half of 2017 from $1.5 million for the same period of last year. Sales in China, our second largest market, were the strongest and increased by $2.8 million, or 358.8%, to $3.6 million for the first half of 2017 from $0.8 million for the same period of last year. Sales in other regions increased by $0.6 million, or 133.4%, to $1.0 million for the first half of 2017 from $0.4 million for the same period of last year.



For the Six Months Ended June 30,



2017



2016



Y/Y Change



Revenues ($'000)


% of Total



Revenues ($'000)


% of Total



Amount ($'000)


%

U.S.

$

49,626


87.2%


$

42,004


93.0%


$

7,622


18.1%

Europe


2,047


3.6%



1,450


3.2%



597


41.2%

China


3,571


6.3%



778


1.7%



2,793


358.8%

Canada


599


1.1%



493


1.1%



105


21.3%

Others


1,043


1.8%



447


1.0%



596


133.4%

Total

$

56,885


100.0%


$

45,172


100.0%


$

11,713


25.9%

Gross profit

Total cost of goods sold increased by $12.9 million, or 39.5%, to $45.5 million for the first half of 2017 from $32.6 million for the same period of last year. The increase was mainly due to increased sale volume as well as higher unit price of raw material, particularly Polypropylene. Gross profit decreased by $1.2 million, or 9.3%, to $11.4 million for the first half of 2017 from $12.5 million for the same period of last year. Gross margin was 20.0% the first half of 2017, compared to 27.8% for the same period of last year.

Operating income

Selling expenses was $3.1 million for the first half of 2017, essentially unchanged from the same period of last year. As a percentage of sales, selling expenses were 5.5% in the first half of 2017, compared to 6.8% in the same period of last year. General and administrative expenses increased by $0.1 million, or 3.7%, to $3.7 million for first half of 2017 from $3.5 million for the same period of last year. As a percentage of sales, general and administrative expenses were 6.5% in the first half of 2017, compared to 7.9% in the same period of last year. Research and development expenses were essentially unchanged at $1.1 million for the second quarter of 2017. We expect R&D expense to stay at current levels as we continued to conduct research and development activities, especially seeking to increase the use of environmentally-friendly materials, develop biodegradable materials and reduce reliance on fossil-based raw materials. 

As a result, total operating expenses increased by $0.2 million, or 2.9%, to $7.9 million for the first half of 2017 from $7.7 million for the same period of last year.

Operating income decreased by $1.4 million, or 28.8%, to $3.4 million for the first half of 2017 from $4.8 million for the same period of last year. Operating margin was 6.0% for the first half of 2017, compared to 10.6% for the same period of last year. The decrease in operating margin was due to decrease in gross margin.

Income before income taxes

Total net other income, which includes interest income and expenses, subsidy income and other non-operating income and expenses, was $0.2 million for the first half of 2017, compared to $1.7 million for the same period of last year.

Income before income taxes decreased by $2.9 million, or 44.7%, to $3.6 million for the first half of 2017 from $6.5 million for the same period of last year. The decrease was primarily due to lower gross profit and lower subsidy income received from local government this year.

Provision for income taxes was $0.6 million for the first half of 2017, compared to $0.9 million for the same period of last year.  

Net income

Net income decreased by $2.6 million, or 47.0%, to $2.9 million for the first half of 2017 from $5.6 million for the same period of last year. After deduction of non-controlling interest, net income attributable to Fuling Global decreased by $2.5 million, or 46.6%, to $2.9 million for the first half of 2017 from $5.4 million for the same period of last year.

Basic and diluted earnings per share were $0.18 for the first half of 2017, compared to $0.34 for the same period of last year. The decrease in earnings per share was mainly due to decrease in net income as a result of lower gross profit and subsidy income in 2017.

Financial Condition

As of June 30, 2017, the Company had cash and cash equivalents, restricted cash, and certificates of deposits of $2.0 million, $2.7 million, and $2.3 million, respectively, compared to $4.0 million, $2.3 million, and $1.5 million, respectively, at the end of 2016. Short-term borrowing and bank notes payable were $16.8 million and $3.3 million, respectively, as of June 30, 2017, compared to $17.8 million and $2.6 million, respectively, at the end of 2016. Long-term borrowing was $1.4 million as of June 30, 2017, compared to $0.8 million at the end of 2016.

Net cash provided by operating activities was $1.5 million for the first half of 2017, compared to net cash used in operating activities of $3.7 million for the same period of last year. Net cash used in investing activities was $4.7 million for the first half of 2017, compared to $9.9 million for the same period of last year. Net cash provided by financing activities was $1.2 million for the first half of 2017, compared to $1.5 million for the same period of last year.  

About Fuling Global Inc.

Fuling Global Inc. ("Fuling Global") is a specialized producer and distributor of plastic serviceware, with precision manufacturing facilities in both the U.S. and China. The Company's plastic serviceware products include disposable cutlery, drinking straws, cups, plates and other plastic products and are used by more than one hundred customers primarily from the U.S. and Europe, including Subway, Wendy's, Burger King, Taco Bell, KFC (China only), Walmart, and McKesson. More information about the Company can be found at: http://ir.fulingglobal.com/.

Forward-Looking Statements

This press release contains information about Fuling Global's view of its future expectations, plans and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its application of IPO proceeds, its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of software and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. Fuling Global encourages you to review other factors that may affect its future results in Fuling Global's registration statement and in its other filings with the Securities and Exchange Commission.

For more information, please contact:

At the Company:
Gilbert Lee, CFO
Email: ir@fulingplasticusa.com
Phone: +1-610-366-8070 x1835
Web: http://ir.fulingglobal.com/

Investor Relations:
Tony Tian, CFA
Weitian Group LLC
Email: tony.tian@weitian-ir.com
Phone: +1-732-910-9692

 

 

 

FULING GLOBAL INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(UNAUDITED)

 




For the Three Months Ended
June 30,



For the Six Months Ended
June 30,




2017



2016



2017



2016















Revenues


$

30,546,699



$

24,594,372



$

56,884,747



$

45,172,191


Cost of goods sold



24,262,138




17,262,250




45,512,711




32,635,246


Gross Profit



6,284,561




7,332,122




11,372,036




12,536,945



















Operating Expenses

















Selling expenses



1,945,472




1,452,267




3,126,131




3,083,800


General and administrative expenses



1,735,972




1,484,156




3,680,503




3,548,715


Research and development expenses



666,205




675,957




1,142,701




1,094,313


Total operating expenses



4,347,649




3,612,380




7,949,335




7,726,828



















Income from Operations



1,936,912




3,719,742




3,422,701




4,810,117



















Other Income (Expense):

















Interest income



6,759




10,966




12,739




17,579


Interest expense



(230,768)




(226,691)




(473,429)




(428,375)


Subsidy income



237,667




1,817,120




604,185




1,857,989


Foreign currency transaction gain (loss)



(64,548)




362,738




(112,943)




422,527


Other expense, net



(26,865)




(230,647)




133,027




(192,995)


Total other income, net



(77,755)




1,733,486




163,579




1,676,725



















Income Before Income Taxes



1,859,157




5,453,228




3,586,280




6,486,842



















Provision for Income Taxes



345,297




615,519




642,800




928,543



















Net Income


$

1,513,860



$

4,837,709



$

2,943,480



$

5,558,299



















Less: net income (loss) attributable to noncontrolling interest



16,679




164,945




46,118




135,836



















Net income attributable to Fuling Global Inc.



1,497,181




4,672,764



$

2,897,362



$

5,422,463



















Other Comprehensive Income

















Foreign currency translation income



726,340




(815,224)




879,540




(581,492)


Comprehensive income attributable to Fuling Global Inc.


$

2,223,521



$

3,857,540



$

3,776,902



$

4,840,971



















Earnings per share

















Basic and diluted


$

0.10



$

0.30



$

0.18



$

0.34



















Weighted average number of shares

















Basic and diluted



15,756,500




15,732,795




15,756,500




15,732,795


 

 

 

FULING GLOBAL INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 




June 30,



December 31,




2017



2016





(UNAUDITED)






ASSETS









Current Assets:









Cash and cash equivalents


$

2,046,627



$

4,009,784


Restricted cash



2,706,322




2,333,607


Certificates of deposit



2,335,869




1,539,082


Accounts receivable, net



20,169,905




20,915,134


Advances to supplier, net



994,546




639,947


Inventories, net



15,301,741




16,731,704


Prepaid expenses and other current assets



2,678,577




1,660,978


Total Current Assets



46,233,587




47,830,236











Property, plant and equipment, net



39,445,350




33,802,047


Intangible assets, net



9,578,453




9,447,486


Prepayments for construction and equipment purchases



990,871




2,192,236


Security deposit for sale leaseback



1,263,017




723,206


Other non-current assets



270,687




269,329


Total Assets


$

97,781,965



$

94,264,540











LIABILITIES AND SHAREHOLDERS' EQUITY


















Current Liabilities:









Short term borrowings


$

16,756,909



$

17,790,962


Bank notes payable



3,316,112




2,556,768


Advances from customers



473,775




604,873


Accounts payable



14,509,935




16,333,445


Accrued and other liabilities



1,808,582




2,195,853


Other payable - sale leaseback



2,907,360




1,931,076


Taxes payable



628,673




164,571


Deferred gains



129,957




650,343


Due to Related party



-




53,082


Total Current Liabilities



40,531,303




42,280,973











Long term payable - sale leaseback



2,508,017




1,675,314


Long term borrowings



1,424,138




836,471


Total Liabilities



44,463,458




44,792,758











Commitments and contingencies


















Shareholders' Equity









Common stock: $0.001 par value, 70,000,000 shares authorized, 15,756,500 and 15,756,500 shares issued and outstanding as of June 30, 2017 and December 31, 2016, respectively



15,757




15,757


Additional paid in capital



29,869,147




29,845,442


Statutory reserve



4,346,060




4,017,957


Retained earnings



19,545,392




16,976,133


Accumulated other comprehensive loss



(641,210)




(1,520,750)


Total Fuling Global Inc.'s equity



53,135,146




49,334,539











Noncontrolling interest



183,361




137,243


Total Shareholders' Equity



53,318,507




49,471,782











Total Liabilities and Shareholders' Equity


$

97,781,965



$

94,264,540


 

 

 

FULING GLOBAL INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 




For the Six Months Ended
June 30,




2017



2016


CASH FLOWS FROM OPERATING ACTIVITIES









Net income


$

2,943,480



$

5,558,299


Adjustments to reconcile net income to net cash provided by operating activities:









Stock based compensation



23,705




69,262


Deferred tax loss



-




(132,093)


Depreciation and amortization



1,687,155




1,306,613


Bad debt provisions



34,174




108,750


Unrealized losses(gains)



10,006




(5,646)


Inventory reserve



36,309




-


Gain on disposal of fixed assets



70,027




(12,896)


Changes in operating assets:









Accounts receivable



961,264




(2,337,456)


Advances to suppliers



(342,192)




(3,992,991)


Inventories



1,567,315




(492,975)


Other assets



198,146




(2,025,962)


Security deposit for sale leaseback



(514,917)




-


Changes in operating liabilities:









Accounts payable



(3,104,839)




(1,809,818)


Advance from customers



(141,695)




189,737


Deferred loss



(1,228,802)




-


Taxes payable



(320,375)




(116,650)


Accrued and other liabilities



(412,896)




(56,140)


Net cash used in operating activities



1,465,865




(3,749,966)











CASH FLOWS FROM INVESTING ACTIVITIES









Additions to property and equipment



(544,086)




(399,389)


Additions to construction in progress



(4,145,718)




-


Cash receipts from disposal property and equipment



13,125




19,614


Cash decrease from certificates of deposit



(748,697)




1,228,224


Prepayments for construction and equipment purchase



730,815




(2,342,419)


Purchase of intangible assets



-




(8,434,613)


Net cash used in investing activities



(4,694,561)




(9,928,583)











CASH FLOWS FROM FINANCING ACTIVITIES









Proceeds from short-term borrowings



10,059,805




11,264,393


Repayments of short-term borrowings



(11,484,507)




(9,818,828)


Proceeds from long-term borrowings



587,667




-


Proceeds from bank notes payable



3,270,048




3,600,629


Repayments of bank notes payable



(2,582,752)




(2,885,578)


Repayment of third party borrowing



-




(183,588)


Repayments of loans from related parties



(53,621)




-


Proceeds from other payable - sales lease back



2,790,345




-


Repayments of other payable - sales lease back



(1,093,236)




-


Change of restricted cash



(313,034)




(502,722)


Net cash provided by financing activities



1,180,715




1,474,306











EFFECT OF EXCHANGE RATES CHANGES ON CASH AND CASH EQUIVALENTS



84,824




(19,074)











NET DECREASE IN CASH AND CASH EQUIVALENTS



(1,963,157)




(12,223,317)











CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD



4,009,784




15,573,554











CASH AND CASH EQUIVALENTS, ENDING OF THE PERIOD


$

2,046,627



$

3,350,237











SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:









Cash paid during the period for:









Interest paid


$

425,543



$

400,152


Income tax paid


$

754,331



$

1,161,623


Non-cash investing activities:









Transfer from construction in progress to fixed assets


$

15,289,807



$

634,190


Transfer from accounts payable to fixed assets


$

912,059



$

-


Transfer from advance payments to fixed assets


$

504,644



$

-


 

View original content:http://www.prnewswire.com/news-releases/fuling-global-inc-reports-second-quarter-2017-financial-results-300503378.html

Source: Fuling Global Inc.
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