SHISHI, China, Nov. 10, 2010 /PRNewswire-Asia/ -- China Marine Food Group Limited (NYSE Amex: CMFO) ("China Marine" or the "Company"), a manufacturer of Mingxiang® seafood-based snack foods, "Hi-Power" marine algae-based beverages and a distributor of frozen marine catch, today announced its financial results for its third quarter ended September 30, 2010.
Third Quarter 2010 Highlights
Third Quarter 2010 Results |
||||
Q3 2010 |
Q3 2009 |
CHANGE |
||
Net Sales |
$22.7 million |
$13.4 million |
+ 69.2% |
|
Gross Profit |
$8.3 million |
$4.3 million |
+ 94.2% |
|
Net Income |
$4.2 million |
$3.2 million |
+ 28.9% |
|
Diluted EPS* |
$0.14 |
$0.14 |
+ 1.1% |
|
Adjusted Net Income** |
$4.8 million |
$ 3.2 million |
+ 47.2% |
|
Adjusted Diluted EPS** |
$0.16 |
$0.14 |
+ 15.5% |
|
* EPS calculated for the period is based on 29.4 million shares on September 30, 2010 versus 23.0 million shares reported on September 30, 2009. ** Adjusted Net Income and Diluted EPS in Q3 2010 are non-GAAP calculations and do not include $0.6 million of non-cash, amortization of intangible assets related to the Company's acquisition. For more information about the non-GAAP financial measures contained in this press release, please see "About Non-GAAP Financial Measures" below. |
||||
"We are pleased to announce record third quarter results, which benefitted from 31.0% organic growth in seafood snack food products line. We added an additional 100 retail points to our network and experienced year over year growth in the majority of the sales territories for our core product line," began Mr. Pengfei Liu, Chairman and CEO of China Marine. "Sales of our beverage line, 'Hi-Power', exceeded our expectations as we experienced continued demand across our home province of Fujian and gained a solid understanding of the caliber of beverage distributors needed to obtain the same level of success in other markets. We also began a robust marketing campaign to foster distributor loyalty, boost brand awareness and drive new sales. Accordingly, we increased the number of 'Hi-Power' sales and marketing staffs from 23 at the beginning of the year to 205 as of September 30, 2010. We expect continued sales growth in the fourth quarter and have increased our revenue guidance for "Hi-Power" to $23.0-$25.0 million for the year."
Third Quarter Fiscal Year 2010 Results by Segment
Seafood Snack Food Segment
China Marine's sale of processed and packaged seafood snack foods produced $15.9 million in revenue, a 31.0% increase versus the third quarter of 2009, and accounted for 70.0% of total revenue in the third quarter of 2010. China Marine added approximately 100 new retail locations which carry Mingxiang®-branded snack foods and recorded increases in most of its provincial level sales territories; Shandong, Zhejiang, Fujian, Guangdong and Jiangsu. The Company has also increased sales staff to 46 from 24 in 2009. China Marine has maintained its product line of 29 Mingxiang®-branded seafood jerky snacks sold to consumers at 3000 retail locations in seven provinces in China. Gross profits margins for the seafood snack foods segment were 34.5% and met company guidance and expectation of 30-plus percent.
"Hi-Power" Beverage Segment
In its third quarter of operations under China Marine Food Group, revenues from the "Hi-Power" algae-based beverage line were $6.7 million and accounted for 29.7% of total revenues in the quarter. Sales were primarily driven by orders in the Company's home province, Fujian. Reorder rates from existing customers have been growing and represented most of total Hi-Power sales. The total number of retail end-points reported by the Company on September 30, 2010 reached 12,000, which includes major international retailers such as Walmart®, China-based supermarkets like Trust-Mart®, convenience stores, bars, restaurants, school canteens and local corner stores which carry "Hi-Power" beverages, and certain locations where Mingxiang®-branded seafood products are also sold.
Based on the Company's third quarter and year-to-date performance, China Marine has increased sales guidance for Hi-Power beverages to $23.0-$25.0 million for the year. Gross margins for "Hi-Power" trend over 40%.
Marine Catch Trade Segment
China Marine's third revenue segment, frozen marine catch, contributed $0.1 million in the third quarter of 2010 compared to $1.3 million in Q3 2009. Typically, in the third or fourth quarter of the year, the Company sells bulk orders of frozen marine catch to select domestic and export distributors. During the third quarter, the Company prepared for the marine catch trading season by accumulating $23.1 million worth of frozen catch inventory stored in Fujian and Liaoning provinces, where its marine catch customers are based. The Company expects to sell the most of its marine catch inventory in the coming quarters with gross margins of approximately 10%. A majority of this catch represents similar types of squid the Company uses in the production of its seafood snack foods and thus limits the Company's exposure to price fluctuations. The Company estimates the marine catch and trade portion of its revenue streams will account for approximately 20% of total sales in 2010.
Total revenue in all segments including Mingxiang®-branded seafood snack foods, "Hi-Power" beverages and marine catch, for the quarter ended September 30, 2010 was $22.7 million, up 69.2% from $13.4 million in the prior year's period.
Costs of goods sold totaled $14.3 million for the quarter, or 63.3% of revenues for the period ended September 30, 2010. Costs of goods sold consist of the cost of raw materials, packaging materials, direct labor and manufacturing overhead. In the seafood snack food segment, costs of raw materials account for the greatest percentage of costs and were 75.3% for the quarter, while packaging represented 12.9%. Conversely, in the beverage segment, costs of raw materials were 15.8% of the total costs of goods, with approximately 67.6% spent on packaging which include two-color satin-finished cans and four-color case packaging for retail. As a percentage of total costs of sales, packing costs remained stable quarter over quarter. The balance of costs of goods emanate from each product line's manufacturing overhead. China Marine produces seafood snack foods at its dedicated production facilities in Shi Shi while "Hi-Power" production is outsourced to third party blending and bottling facilities in Fujian province.
Gross profit in the third quarter of fiscal year 2010 was $8.3 million, an increase of 94.2% from $4.3 million in the prior year's corresponding period. Consolidated gross margins were 36.7% for the quarter, a 472 basis point improvement from 32.0% for the same period of the prior year. Gross margin for the processed seafood line was 34.5%, compared to 33.5% in the third quarter of 2009. "Hi-Power" algae-based beverages generated gross margin of 42.0%, and the Company anticipates similar margins through the balance of the year.
Selling, general and administrative (SG&A) expenses in the quarter ended September 30, 2010 were $2.7 million compared to $0.7 million in the prior year period. Increases were mainly attributed to increased sales and advertising costs associated with Hi Power sales and the recruitment and training of new sales personnel in both sales teams. In the third quarter, China Marine also provided distributors with promotional cans of Hi-Power to foster distributor loyalty, introduce more consumers to the beverage, build brand awareness, and to stimulate sales. Costs of the "give-away" and "taste-testing" promotional cans were recorded as SG&A costs for the quarter. In their first full year with new distributors, the sales and marketing departments of China Marine opted against rebate programs in favor of providing distributors promotional Hi-Power product.
"We debated the pros and cons of giveaways as a means to grow sales," stated Chairman Liu. "Reflecting on past experiences in China and other successful beverage rollouts, we and our distributors agreed that exposing more consumers to Hi-Power through giveaways, taste testing, and promotions would be the most successful methods to increase sell through and build distributor loyalty. Based on the success of the programs currently in place, we will review the cost benefit of promotional versus rebate incentives for the 2011 year," Liu concluded.
SG&A costs as percentage of sales were 11.9% for the quarter versus 5.0% in 2009. Operating income in the third quarter of 2010 was $5.0 million, with operating margin of 22.0%, compared to $3.6 million and 26.9%, respectively in the prior year period.
GAAP net income for the quarter ended September 30, 2010 was $4.2 million, compared to $3.2 million in the prior year's corresponding period, a 28.9% increase year over year. Adjusted non-GAAP net income for the third quarter of 2010 which excludes the non-cash, quarterly, amortization charges of $0.6 million was $4.8 million, a 47.2% increase year over year. Earnings per weighted average diluted shares were $0.14 based on 29.4 million fully diluted shares, while adjusted earnings were $0.16 per share. The Company's 15% preferential tax rate is secured through 2012.
Nine Months Results |
||||
For the Nine Month Period Ended September 30, 2010 |
||||
9M 2010 |
9M 2009 |
CHANGE |
||
Net Sales |
$69.9 million |
$44.7 million |
+ 56.3% |
|
Gross Profit |
$25.1 million |
$13.3 million |
+ 89.0% |
|
Net Income |
$14.9 million |
$10.2 million |
+ 46.1% |
|
GAAP Diluted EPS* |
$0.51 |
$0.44 |
+ 15.9% |
|
Adjusted Net Income** |
$16.7 million |
$ 10.2 million |
+ 63.4% |
|
Adjusted Diluted EPS** |
$0.57 |
$0.44 |
+ 29.5% |
|
* EPS calculated for the period is based on 29.0 million shares on September 30, 2010 versus 23.0 million shares reported on September 30, 2009. ** Adjusted Net Income and Diluted EPS for the nine month period are non-GAAP calculations and do not include $1.8 million of non-cash, amortization of intangible assets related to the Company's acquisition. For more information about the non-GAAP financial measures contained in this press release, please see "About Non-GAAP Financial Measures" below. |
||||
Revenue during the nine months ended September 30, 2010 increased by 56.3% to $69.9 million compared to the corresponding year ago period. Sales of seafood snack foods increased by 37.8% to $51.7 million. Sales of Hi-Power algae-based beverages were $17.3 million during the nine months ended September 30, 2010, with no associated sales in the same year ago period. Marine catch sales decreased by $6.3 million, or 88.5% for the nine months period.
Gross profit was $25.1 million, an increase of 89.0% from $13.3 million in the prior year's corresponding period. Consolidated gross margins were 36.0%, a 623 basis point improvement over the year ago period. Gross margins for the processed seafood line, "Hi-Power" beverages and marine catch businesses were 34.5%, 40.9%, and 23.7%, respectively.
SG&A expenses for the nine months period were $5.3 million compared to $1.9 million in the prior year's period. Increases were a result of sales and advertising costs associated with the new beverage business and new staff hires. Operating income in the year-to-date of 2010 was $17.9 million, with operating margin of 25.7%, a 58.4% year-over-year increase from $11.3 million in the prior year's period when operating margins were 25.3%.
Year-to-date 2010 GAAP net income was $14.9 million, compared to $10.2 million in the prior year's corresponding period, a 46.1% increase. Earnings per weighted average diluted shares were $0.51 based on 29.0 million fully diluted shares. Adjusted non-GAAP net income for the nine month period excludes $1.8 million in non-cash amortization charges (approximately $0.6 million per quarter). Adjusted net income for the period was $16.7 million, a 63.4% increase year-over-year with earning per share of $0.57 for the nine months period ended September 30, 2010.
Financial Condition
As of September 30, 2010, the Company had $16.9 million in cash compared to $7.1 million as of December 31, 2009. Cash flows from operations were a negative $2.9 million due to higher net income being offset by increased inventories for marine catch. Working capital was $56.0 million, up from $48.4 million as of December 31, 2009. The current ratio was 12.1 to 1 on September 30, 2010 compared to 7.0 to 1 on December 31, 2009. Accounts receivable were $12.0 million, compared to $18.8 million as of December 31, 2009. The Company maintains days sales outstanding of about 60 days depending on sales volume and any promotions executed throughout the year. Shareholder equity increased 76.2% to $105.4 million for the period under review.
Construction Update – Cold Storage Facility
The Company commenced construction of its new cold storage facility in the third quarter of 2010 and anticipates completing this facility in the second half of 2011. The project is expected to contribute approximately $8.0 million in revenues and $4.0 million in net income yearly once fully operational. Capital expenditures year-to-date were $13.3 million, while management expects a total expenditure of approximately $20.0 million to complete the build-out.
Company Events
Mr. Marco Ku, CFO of China Marine will be meeting with investors in the United States from November 15 through November 19, 2010, on the following dates and locations.
November 15 and 16: |
Los Angeles & San Diego California |
|
November 17 and 18: |
Brean Murray Investor Conference - New York City |
|
November 19: |
New York |
|
Third Quarter 2010 Conference Call
Mr. Pengfei Liu, CEO, and Mr. Marco Ku, CFO, will host the conference call. To attend the call, please use the dial in information below. When prompted, ask for the "China Marine Food Group call" and/or be prepared to provide the conference ID.
Date: |
Wednesday, November 10, 2010 |
|
Time: |
9:00 am Eastern Time US |
|
Conference Line Dial-In (U.S.): |
1-877-941-2322 |
|
International Dial-In: |
1-480-629-9715 |
|
Conference ID: |
4382874 "China Marine Conference Call" |
|
Webcast: |
||
Please dial in at least 10-minutes before the call to ensure timely participation.
A playback of the call will be available from 12:00 Noon Eastern Time on November 10 until 11:59 pm Eastern Time on November 17, 2010. To listen, call 1-877-870-5176 within the United States or 1-858-384-5517 when calling internationally. Please use the replay pin number 4382874.
This call is being webcast by ViaVid Broadcasting and can be accessed by clicking on this link http://viavid.net/dce.aspx?sid=00007D74 or at ViaVid's website at http://www.viavid.net, where the webcast can be accessed through November 10, 2011.
About China Marine
China Marine Food Group Ltd. is a food and beverage manufacturer of Mingxiang® seafood-based snack foods and "Hi-Power" marine algae-based health drinks, and a wholesaler of frozen marine catch in seven provinces in the PRC. Founded in 1994, China Marine has grown steadily and positioned its Mingxiang® brand as a category leader in 3,000 retail food sales points and 12,000 beverage sales points in China. The Company has received "The Famous Brand" and "Green Food" awards. Located in Fujian province, it is one of the largest coastal provinces in the PRC and a vital navigation hub between the East China Sea and the South China Sea. The Company is committed to the highest standard of quality control with the ISO9001, ISO14001, HACCP certification and EU export registration.
Forward Looking Statements
This release contains certain "forward-looking statements" relating to the business of China Marine Food Group Limited and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes, expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. China Marine Food Group Limited is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
About Adjusted Non-GAAP Financial Measures
To supplement the Company's consolidated financial statements, which statements are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: non-GAAP adjusted net income, and non-GAAP adjusted diluted EPS. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding the Company's performance and liquidity by excluding certain expenses and expenditures that may not be indicative of "recurring core business operating results", meaning operating performance excluding non-cash amortization charges for intangibles. China Marine believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing performance and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to historical performance and liquidity as well as comparisons to competitors' operating results. The Company believes these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of the business.
CHINA MARINE FOOD GROUP LIMITED CONDENSED CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2010 AND DECEMBER 31, 2009 (Currency expressed in United States Dollars ("US$"), except for number of shares) |
|||||||
September 30, 2010 |
December 31, 2009 |
||||||
(Unaudited) |
(Audited) |
||||||
ASSETS |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
16,920,383 |
$ |
7,143,232 |
|||
Accounts receivable, net |
11,970,234 |
18,834,062 |
|||||
Inventories |
29,617,636 |
3,876,950 |
|||||
Note receivable |
- |
26,399,696 |
|||||
Prepaid expenses and other current assets |
2,596,456 |
151,653 |
|||||
Total current assets |
61,104,709 |
56,405,593 |
|||||
Property, plant and equipment, net |
8,723,055 |
8,599,977 |
|||||
Land use rights, net |
2,971,986 |
615,355 |
|||||
Construction in progress |
13,027,294 |
- |
|||||
Prepayment for land use right |
- |
2,274,323 |
|||||
Intangible assets, net |
22,244,423 |
- |
|||||
Goodwill |
2,429,169 |
- |
|||||
TOTAL ASSETS |
$ |
110,500,636 |
$ |
67,895,248 |
|||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
Current liabilities: |
|||||||
Short-term borrowings |
$ |
- |
$ |
4,139,121 |
|||
Accounts payable, trade |
3,520,757 |
885,286 |
|||||
Amount due to a stockholder |
69,019 |
69,587 |
|||||
Income tax payable |
247,497 |
618,664 |
|||||
Accrued liabilities and other payable |
1,227,050 |
2,334,384 |
|||||
Total current liabilities |
5,064,323 |
8,047,042 |
|||||
Commitments and contingencies |
|||||||
Stockholders' equity: |
|||||||
Preferred stock, $0.001 par value; 1,000,000 shares authorized; 0 shares issued and outstanding as of September 30, 2010 and December 31, 2009 |
- |
- |
|||||
Common stock, $0.001 par value; 100,000,000 shares authorized; 28,564,054 and 23,413,639 shares issued and outstanding as of September 30, 2010 and December 31, 2009 |
28,564 |
23,414 |
|||||
Additional paid-in capital |
46,164,953 |
16,888,532 |
|||||
Statutory reserve |
5,614,517 |
5,614,517 |
|||||
Accumulated other comprehensive income |
5,931,061 |
3,576,135 |
|||||
Retained earnings |
47,345,112 |
33,745,608 |
|||||
Total China Marine Food Group Limited stockholders' equity |
105,084,207 |
59,848,206 |
|||||
Non-controlling interests |
352,106 |
- |
|||||
Total stockholders' equity |
105,436,313 |
59,848,206 |
|||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
110,500,636 |
$ |
67,895,248 |
|||
CHINA MARINE FOOD GROUP LIMITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009 (Currency expressed in United States Dollars ("US$"), except for number of shares) (Unaudited) |
|||||||||||||
Three months ended September 30, |
Nine months ended September 30, |
||||||||||||
2010 |
2009 |
2010 |
2009 |
||||||||||
Revenue, net |
|||||||||||||
Processed seafood products |
$ |
15,855,970 |
$ |
12,098,625 |
$ |
51,748,569 |
$ |
37,552,949 |
|||||
Marine catch |
71,991 |
1,293,798 |
822,990 |
7,143,910 |
|||||||||
Algae-based beverage products |
6,734,615 |
- |
17,298,654 |
- |
|||||||||
22,662,576 |
13,392,423 |
69,870,213 |
44,696,859 |
||||||||||
Cost of revenue (inclusive of depreciation and amortization) |
|||||||||||||
Processed seafood products |
(10,384,718) |
(8,047,601) |
(33,884,705) |
(25,021,550) |
|||||||||
Marine catch |
(45,982) |
(1,058,323) |
(627,936) |
(6,377,253) |
|||||||||
Algae-based beverage products |
(3,908,462) |
- |
(10,219,501) |
- |
|||||||||
(14,339,162) |
(9,105,924) |
(44,732,142) |
(31,398,803) |
||||||||||
Gross profit |
8,323,414 |
4,286,499 |
25,138,071 |
13,298,056 |
|||||||||
Operating expenses: |
|||||||||||||
Depreciation and amortization |
(632,059) |
(20,248) |
(1,879,236) |
(59,300) |
|||||||||
Sales and marketing |
(1,987,391) |
(147,254) |
(3,289,356) |
(404,810) |
|||||||||
General and administrative |
(714,355) |
(522,630) |
(2,020,673) |
(1,504,226) |
|||||||||
Total operating expenses |
(3,333,805) |
(690,132) |
(7,189,265) |
(1,968,336) |
|||||||||
(3,333,805) |
|||||||||||||
Income from operations |
4,989,609 |
3,596,367 |
17,948,806 |
11,329,720 |
|||||||||
Other income (expenses): |
|||||||||||||
Subsidy income |
192 |
93,548 |
71,445 |
236,756 |
|||||||||
Rental income |
23,229 |
20,391 |
68,585 |
61,162 |
|||||||||
Interest income |
35 |
29,618 |
94,932 |
190,680 |
|||||||||
Interest expense |
(107) |
(56,136) |
(39,811) |
(174,864) |
|||||||||
Income before income taxes |
5,012,958 |
3,683,788 |
18,143,957 |
11,643,454 |
|||||||||
Income tax expense |
(851,085) |
(453,998) |
(3,238,124) |
(1,441,480) |
|||||||||
NET INCOME |
4,161,873 |
3,229,790 |
14,905,833 |
10,201,974 |
|||||||||
Less: net income attributable to non-controlling interests |
(126) |
- |
(492) |
- |
|||||||||
Net income attributable to China Marine Food Group Limited |
$ |
4,161,747 |
$ |
3,229,790 |
$ |
14,905,341 |
$ |
10,201,974 |
|||||
Other comprehensive income: |
|||||||||||||
- Foreign currency translation gain |
1,699,426 |
56,366 |
2,354,926 |
116,430 |
|||||||||
COMPREHENSIVE INCOME |
$ |
5,861,173 |
$ |
3,286,156 |
$ |
17,260,267 |
$ |
10,318,404 |
|||||
Net income per share attributable to China Marine Food Group Limited - Basic |
$ |
0.15 |
$ |
0.14 |
$ |
0.53 |
$ |
0.44 |
|||||
- Diluted |
$ |
0.14 |
$ |
0.14 |
$ |
0.51 |
$ |
0.44 |
|||||
Weighted average shares outstanding - Basic |
28,525,850 |
23,045,791 |
28,122,266 |
23,045,791 |
|||||||||
- Diluted |
29,378,659 |
23,045,791 |
29,037,695 |
23,045,791 |
|||||||||
CHINA MARINE FOOD GROUP LIMITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009 (Currency expressed in United States Dollars ("US$")) (Unaudited) |
|||||||
Nine months ended September 30, |
|||||||
2010 |
2009 |
||||||
Cash flows from operating activities: |
|||||||
Net income |
$ |
14,905,833 |
$ |
10,201,974 |
|||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
Depreciation and amortization |
2,081,868 |
242,510 |
|||||
Stock issued to an executive |
143,100 |
- |
|||||
Stock issued for service |
109,725 |
- |
|||||
(Reversal of) allowance for doubtful accounts |
(34,492) |
12,021 |
|||||
Changes in operating assets and liabilities: |
|||||||
Accounts receivable |
6,898,320 |
(2,404,288) |
|||||
Inventories |
(25,740,686) |
(7,402,970) |
|||||
Prepaid expenses and other current assets |
(2,444,803) |
107,398 |
|||||
Accounts payable, trade |
2,635,471 |
488,411 |
|||||
Income tax payable |
(371,167) |
83,827 |
|||||
Accrued liabilities and other payable |
(1,107,334) |
(201,585) |
|||||
Net cash (used in) provided by operating activities |
(2,924,165) |
1,127,298 |
|||||
Cash flows from investing activities: |
|||||||
Purchase of property, plant and equipment |
(177,715) |
(347,057) |
|||||
Cash paid to construction in progress |
(13,027,294) |
(995,235) |
|||||
Addition to land use right |
(69,778) |
- |
|||||
Net cash received from acquisition of a subsidiary |
977,476 |
- |
|||||
Net cash (used in) investing activities |
(12,297,311) |
(1,342,292) |
|||||
Cash flows from financing activities: |
|||||||
Repayment of amount due to a stockholder |
(568) |
(74,551) |
|||||
Advance to a non-controlling stockholder of a subsidiary |
(144,113) |
- |
|||||
Proceeds from the registered direct offering, net of expenses |
28,328,466 |
- |
|||||
Proceeds from exercise of warrants |
700,280 |
- |
|||||
Proceeds from short-term borrowings |
- |
4,138,879 |
|||||
Repayment of short-term borrowings |
(4,139,121) |
(4,289,341) |
|||||
Dividends paid |
(1,305,837) |
- |
|||||
Net cash provided by (used in) financing activities |
23,439,107 |
(225,013) |
|||||
Effect of exchange rate changes in cash and cash equivalents |
1,559,520 |
97,784 |
|||||
NET CHANGE IN CASH AND CASH EQUIVALENTS |
9,777,151 |
(342,223) |
|||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
7,143,232 |
31,640,307 |
|||||
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ |
16,920,383 |
$ |
31,298,084 |
|||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |
|||||||
Cash paid for income taxes |
$ |
3,609,291 |
$ |
1,357,653 |
|||
Cash paid for interest |
$ |
39,811 |
$ |
174,864 |
|||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING TRANSACTIONS |
|||||||
Transfer from prepayment to land use rights |
$ |
2,274,323 |
$ |
- |
|||
Transfer from construction in progress to property, plant and equipment |
$ |
- |
$ |
2,600,090 |
|||
NON-CASH TRANSACTIONS IN CONNECTION WITH THE ACQUISITION OF XIANGHE |
|||||||
Transfer from note receivable to paid for acquisition of Xianghe |
$ |
26,399,696 |
$ |
- |
|||
Consideration paid by Xianghe on behalf of Mingxiang |
$ |
1,400,304 |
$ |
- |
|||