ALLENTOWN, Pa. and TAIZHOU, China, November 17, 2015 / PRNewswire/ -- Fuling Global Inc. (NASDAQ:FORK) ("Fuling Global" or the "Company"), a specialized producer and distributor of environmentally-friendly plastic serviceware, with precision manufacturing facilities in both the U.S. and China, today announced its financial results for the third quarter ended September 30, 2015.
Mr. Xinfu Hu, Chief Executive Officer of Fuling Global, commented, "We are excited to share our first quarterly earnings results following our listing on NASDAQ earlier this month. We are particularly pleased to report that our net income in the third fiscal quarter of 2015 increased by 17% compared with the same quarter in 2014. In our industry, revenues and expenses are heavily tied to the cost of raw materials, in our case plastic. As a result, when plastic prices dropped significantly from the nine months ended September 30, 2014 to the nine months ended September 30, 2015, with the average monthly price for polypropylene ("PP"), general purpose polystyrene ("GPPS"), and high impact polystyrene ("HIPS") down 26%, 31%, and 29%, respectively, the decreases of our revenues (down 3%) and expenses (down 8%) similarly reflect such decreases, even in a strong quarter where we sold 5% more products by weight than we sold in 2014. We are encouraged by this quarter's results, which show improved gross and operating margins, net income and sales volume."
Mrs. Guilan Jiang, Chairwoman of Fuling Global, added, "Our IPO on NASDAQ is an important step toward becoming a significant player in the global plastic serviceware market. We expect the increased publicity and name recognition that come with being a NASDAQ-listed company, combined with our access to new sources for capital, position us well for growth. Our current growth initiatives focus on increasing our penetration in selected markets and expanding our production capacity."
Third Quarter 2015 Financial Highlights
For the Three Months Ended September 30, |
||||||
($ millions, expect per share data) |
2015 |
2014 |
% Change |
|||
Revenues |
$22.4 |
$23.1 |
-2.9% |
|||
Gross profit |
$8.5 |
$7.9 |
7.8% |
|||
Gross margin |
38.1% |
34.3% |
3.8% |
|||
Operating margin |
12.1% |
11.4% |
0.7% |
|||
Net income attributable to Fuling Global |
$2.7 |
$2.5 |
9.8% |
|||
Diluted earnings per share |
$0.23 |
$0.21 |
9.8% |
|||
Third Quarter 2015 Financial Results
Revenues
For the third quarter of 2015, total revenues decreased by $0.7 million, or 3%, to $22.4 million from $23.1 million for the same period of last year. The decrease in total revenues was mainly driven by 7% decrease in blended ASP for our products sold as a result of lower plastic prices and partially offset by 5% increase in overall shipment volume. Blended ASP per kilogram was $2.37 for the third quarter of 2015, compared to $2.56 for the same period of last year. Sales volume was 9,445 tons for the third quarter of 2015, compared to 8,996 tons for the same period of last year.
For the Three Months Ended September 30, |
|||||||||||
2015 |
2014 |
||||||||||
Revenues |
COGS |
Gross Margin |
Revenues |
COGS |
Gross Margin |
||||||
Cutlery |
$ 11,920 |
$ 7,692 |
35% |
$ 13,934 |
$ 8,981 |
36% |
|||||
Straws |
3,839 |
2,874 |
25% |
3,148 |
2,468 |
22% |
|||||
Cups and plates |
5,433 |
2,654 |
51% |
5,527 |
3,327 |
40% |
|||||
Others products |
1,217 |
561 |
54% |
459 |
257 |
44% |
|||||
Tax |
92 |
118 |
|||||||||
Total |
$ 22,409 |
$ 13,873 |
38.1% |
$ 23,068 |
$ 15,151 |
34.3% |
|||||
Revenues from cutlery decreased by $2.0 million, or 14%, to $11.9 million for the third quarter of 2015 from $13.9 million for the same period of last year. The decrease in revenues from cutlery was primarily driven by 8% decrease in ASP as well as 7% decrease in sales volume. The decrease in cutlery volume was primarily related to temporary decrease in orders from two U.S.-based customers that reduced inventory levels during the third quarter of 2015. Revenues from straws increased by $0.7 million, or 22%, to $3.8 million for the third quarter of 2015 from $3.1 million for the same period of last year. This increase was primarily driven by 29% increase in sales volume and partially offset by 5% decrease in ASP. We commenced production of straws at our Allentown facility on June 30, 2015. Revenues from cups and plates decreased by $0.1 million, or 2%, to $5.4 million for the third quarter of 2015 from $5.5 million for the same period of last year. Volume of cups and plates increased by 17% while ASP of cups and plates decreased by 16% for the third quarter of 2015. Revenues from other products, including products for family use, party and other entertainment purposes, increased by approximately $0.8 million, or 165%, to $1.2 million for the third quarter of 2015 from $0.5 million for the same period of last year. This increase was mainly due to sales of measuring cups, which we introduced to the market in 2015. Volume of other products increased by 187% while ASP of other products decreased by 8% for the third quarter of 2015.
On a geographic basis, sales in the U.S., Europe, Australia, Canada, Central and South America, Middle East, and China, grew by -6%, 45%, -61%, -36%, 190%, 32%, and 1,729%, to $19.3 million, $2.0 million, $0.1 million, $0.3 million, $0.3 million, $0.3 million, and $0.1 million, and accounted for 85.9%, 9.1%, 0.5%, 1.4%, 1.2%, 1.4%, and 0.6% of total revenues, respectively, for the third quarter of 2015.
For the Three Months Ended September 30, |
||||||||||||
2015 |
2014 |
Y/Y Change |
||||||||||
Revenues ($'000) |
% of Total |
Revenues ($'000) |
% of Total |
Amount($'000) |
% |
|||||||
U.S. |
$19,258 |
85.9% |
$20,584 |
89.2% |
($1,326) |
-6% |
||||||
Europe |
$2,034 |
9.1% |
$1,398 |
6.1% |
$636 |
45% |
||||||
Australia |
$104 |
0.5% |
$267 |
1.2% |
($163) |
-61% |
||||||
Canada |
$315 |
1.4% |
$489 |
2.1% |
($174) |
-36% |
||||||
Central and South America |
$261 |
1.2% |
$90 |
0.4% |
$171 |
190% |
||||||
Middle East |
$308 |
1.4% |
$233 |
1.0% |
$75 |
32% |
||||||
China |
$128 |
0.6% |
$7 |
0.0% |
$121 |
1729% |
||||||
Total |
$22,408 |
100.0% |
$23,068 |
100.0% |
($660) |
-3% |
||||||
Gross profit
Total cost of goods sold decreased by $1.3 million, or 8%, to $13.9 million for the third quarter of 2015 from $15.2 million for the same period of last year. Gross profit increased by $0.6 million, or 8%, to $8.5 million for the third quarter of 2015 from $7.9 million for the same period of last year. Gross margin was 38.1% for the third quarter of 2015, compared to 34.3% for the same period of last year. The increase in gross margin was related to lower material costs as well as improved production efficiency, particularly for our cups and plates and other products. Gross margins for cutlery, straws, cups and plates, and other products were 35%, 25%, 51%, and 54%, respectively, for the third quarter of 2015, compared to 36%, 22%, 40%, and 44%, respectively, for the same period of last year.
Operating income
Selling expenses increased by $0.5 million, or 14%, to $4.0 million for the third quarter of 2015 from $3.5 million for the same period of last year. General and administrative expense increased by 5% to $1.12 million for the third quarter of 2015 from $1.07 million for the same period of last year. Research and development expense increased by 1% to approximately $0.7 million for the third quarter of 2015 from $0.6 million for the same period of last year. As a result, total operating expenses increased by $0.5 million, or 10%, to $5.8 million for the third quarter of 2015 from $5.3 million for the same period of last year.
Operating income increased by $0.1 million, or 3%, to $2.7 million for the third quarter of 2015 from $2.6 million for the same period of last year. Operating margin was 12.1% for the third quarter of 2015, compared to 11.4% for the same period of last year.
Net income
Net income increased by $0.4 million, or 17%, to $2.7 million for the third quarter of 2015 from $2.3 million for the same period of last year. After deduction of non-controlling interest, net income attributable to Fuling Global was $2.7 million, or $0.23 per diluted share, for the third quarter of 2015, compared to $2.5 million, or $0.21 per diluted share, for the same period of last year.
Nine Months Ended September 30, 2015 Financial Results
For the Nine Months Ended September 30, |
||||||
($ millions, expect per share data) |
2015 |
2014 |
% Change |
|||
Revenues |
$68.2 |
$61.0 |
11.8% |
|||
Gross profit |
$24.6 |
$20.5 |
20.1% |
|||
Gross margin |
36.1% |
33.6% |
2.5% |
|||
Operating margin |
11.8% |
11.7% |
0.1% |
|||
Net income attributable to Fuling Global |
$7.0 |
$5.8 |
19.2% |
|||
Diluted earnings per share |
$0.60 |
$0.50 |
19.2% |
|||
Revenues
For the nine months ended September 30, 2015, total revenues increased by $7.2 million, or 12%, to $68.2 million from $61.0 million for the same period of last year. The increase in total revenues was mainly driven by higher volume and partially offset by lower ASP of products sold.
For the Nine Months Ended September 30, |
|||||||||||
2015 |
2014 |
||||||||||
Revenues |
COGS |
Gross Margin |
Revenues |
COGS |
Gross Margin |
||||||
Cutlery |
$ 39,355 |
$ 25,533 |
35% |
$ 36,555 |
$ 23,933 |
35% |
|||||
Straws |
9,280 |
7,236 |
22% |
7,493 |
6,043 |
19% |
|||||
Cups and plates |
16,535 |
8,899 |
46% |
15,325 |
9,334 |
39% |
|||||
Other products |
2,985 |
1,644 |
45% |
1,610 |
1,034 |
36% |
|||||
Tax |
234 |
147 |
|||||||||
Total |
$ 68,154 |
$ 43,546 |
36.1% |
$ 60,983 |
$ 40,491 |
33.6% |
|||||
Revenues from cutlery, straws, cups and plates, and other products increased by $2.8 million, $1.8 million, $1.2 million, and $1.4 million, or 8%, 24%, 8%, and 85%, to $39.4 million, $9.3 million, $16.5 million, and $3.0 million, respectively, for the nine months ended September 30, 2015.
On a geographical basis, sales in the U.S., Europe, Australia, Canada, Central and South America, Middle East, and China, grew by 11%, 40%, -43%, -18%, 93%, 8%, and 364%, to $62.9 million, $3.0 million, $0.4 million, $0.8 million, $0.3 million, $0.3 million, and $0.4 million, and accounted for 92.3%, 4.3%, 0.6%, 1.2%, 0.4%, 0.5%, and 0.6% of total revenues, respectively, for the nine months ended September 30, 2015.
For the Nine Months Ended September 30, |
||||||||||||
2015 |
2014 |
Y/Y Change |
||||||||||
Revenues ($'000) |
% of Total |
Revenues ($'000) |
% of Total |
Amount($'000) |
% |
|||||||
U.S. |
$62,916 |
92.3% |
$56,600 |
92.8% |
$6,316 |
11% |
||||||
Europe |
$2,962 |
4.3% |
$2,110 |
3.5% |
$852 |
40% |
||||||
Australia |
$429 |
0.6% |
$753 |
1.2% |
($324) |
-43% |
||||||
Canada |
$784 |
1.2% |
$957 |
1.6% |
($173) |
-18% |
||||||
Central and South America |
$296 |
0.4% |
$153 |
0.3% |
$143 |
93% |
||||||
Middle East |
$345 |
0.5% |
$319 |
0.5% |
$26 |
8% |
||||||
China |
$422 |
0.6% |
$91 |
0.1% |
$331 |
364% |
||||||
Total |
$68,154 |
100.0% |
$60,983 |
100.0% |
$7,171 |
12% |
||||||
Gross profit
Total cost of goods sold increased by $3.1 million, or 8%, to $43.5 million for the nine months ended September 30, 2015 from $40.5 million for the same period of last year. Gross profit increased by $4.1 million, or 20%, to $24.6 million for the nine months ended September 30, 2015 from $20.5 million for the same period of last year. Gross margin was 36.1% for the nine months ended September 30, 2015, compared to 33.6% for the same period of last year. The increase in gross margin was related to lower material costs and improved production efficiency, particularly for our cups and plates products. Gross margins for cutlery, straws, cups and plates, and other products were 35%, 22%, 46%, and 45%, respectively, for the nine months ended September 30, 2015, compared to 35%, 19%, 39%, and 36%, respectively, for the same period of last year.
Operating income
Selling expenses increased by $2.2 million, or 24%, to $11.2 million for the nine months ended September 30, 2015 from $9.0 million for the same period of last year. The increase in selling expenses was due to increases of $1.5 million in ocean freight charges, $0.2 million in warehouse and shipping related expense, and $0.2 million in commission. General and administrative expenses increased by $1.2 million, or 46%, to $3.8 million for the nine months ended September 30, 2015 from $2.6 million for the same period of last year. The increase in general and administrative expenses was due to increases of $0.1 million for IPO related expenses, $0.5 million related to our business expansion, especially in the U.S., and $0.4 million in rent expense in our Allentown facility. Research and development expenses decreased by $0.2 million, or 10%, to $1.6 million for the nine months ended September 30, 2015 from $1.8 million for the same period of last year. As a result, total operating expenses increased by $3.2 million, or 24%, to $16.6 million for the nine months ended September 30, 2015 from $13.4 million for the same period of last year.
Operating income increased by $0.9 million, or 13%, to $8.0 million for the nine months ended September 30, 2015 from $7.1 million for the same period of last year. Operating margin was 11.8% for the nine months ended September 30, 2015, compared to 11.7% for the same period of last year.
Net income
Net income increased by $1.1 million, or 19%, to $7.0 million for the nine months ended September 30, 2015 from $5.9 million for the same period of last year. After deduction of non-controlling interest, net income attributable to Fuling Global was $7.0 million, or $0.60 per diluted share, for the nine months ended September 30, 2015, compared to $5.8 million, or $0.50 per diluted share, for the same period of last year.
Financial Condition
As of September 30, 2015, the Company had cash and cash equivalents, restricted cash, short-term borrowing, and bank notes payable of $2.4 million, $2.2 million, $19.6 million, and $2.5 million, respectively, compared to $1.4 million, $3.7 million, $19.5 million, and $3.2 million, respectively, at the end of 2014. Net cash provided by operating activities was $3.0 million for the nine months ended September 30, 2015, compared to $2.2 million for the same period of last year. Net cash used in investing activities was $3.3 million for the nine months ended September 30, 2015, compared to $3.2 million for the same period of last year. Net cash provided by financing activities was $1.5 million for the nine months ended September 30, 2015, compared to net cash used in financing activities of $0.5 million for the same period of last year. We paid a cash dividend of $10.3 million to shareholders and those shareholders subsequently made capital contribution of $7.5 million to the Company in the nine months ended September 30, 2014.
Recent Updates
On October 30, 2015, the Company announced the pricing of its initial public offering ("IPO") of 4 million ordinary shares at price of $5.00 per share. The base IPO was closed on November 2, 2015 and the Company's ordinary shares commenced trading on the NASDAQ Capital Market on November 4, 2015 under the ticker symbol "FORK". On November 12, 2015, the Company announced that the underwriters of its previously announced IPO of ordinary stock have exercised their over-subscription option to purchase an additional 38,423 shares at the IPO price of $5.00 per share. As a result, the Company has raised $20,192,115 in gross proceeds through the issuance of a total of 4,038,423 ordinary shares in the IPO, with all shares being offered by the Company, and the IPO and oversubscription period have ended, effective November 12, 2015. Lead underwriter and book-running manager Burnham Securities Inc. and co-underwriter and co-manager Network 1 Financial Securities, Inc. conducted the offering on a "best efforts" basis.
Earnings Conference Call
The Company will host its third quarter 2015 financial results conference call at 8:00 am Eastern Time (5:00 am Pacific Time/9:00 pm Beijing Time) on Tuesday, November 17, 2015. To attend the call, please use the information below for either dial-in access or webcast access. When prompted on dial-in, ask for "Fuling Global Inc./ FORK".
Conference Call |
|
Date: |
Tuesday, November 17, 2015 |
Time: |
8:00 am ET, U.S. |
International Toll Free: |
United States: +1 888-346-8982 Mainland China: 400-120-1203 Hong Kong: 800-905-945 International: +1 412-902-4272 |
Conference ID: |
Fuling Global Inc./FORK |
Please dial in at least fifteen minutes before the call to ensure timely participation. For those unable to participate, an audio replay of the conference call will be available beginning approximately one hour after the end of the live call through November 24, 2015. 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 code No. 10076129.
About Fuling Global Inc.
Fuling Global Inc. ("Fuling Global" or the "Company") is a specialized producer and distributor of environmentally-friendly 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, KFC (China only), Walmart, McKesson, and Woolworths. 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 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: +1-610-366-8070x1835
Web: http://ir.fulingglobal.com/
Investor Relations:
Tina Xiao
Weitian Group LLC
Email: fork@weitian-ir.com
Phone: +1-917-609-0333
FULING GLOBAL INC. AND SUBSIDIARIES |
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(UNAUDITED) |
|||||
September 30, |
December 31, |
||||
2015 |
2014 |
||||
ASSETS |
|||||
Current Assets: |
|||||
Cash and cash equivalents |
$ |
2,409,517 |
$ |
1,399,714 |
|
Restricted cash |
2,222,422 |
3,700,886 |
|||
Accounts receivable, net |
12,381,510 |
13,018,702 |
|||
Advance to supplier, net |
1,785,793 |
739,002 |
|||
Inventories, net |
15,456,525 |
14,935,076 |
|||
Prepaid expenses and other current assets |
158,443 |
906,705 |
|||
Total Current Assets |
34,414,210 |
34,700,085 |
|||
Property, plant and equipment, net |
21,130,548 |
20,517,240 |
|||
Intangible assets, net |
1,828,080 |
1,650,037 |
|||
Other non-current assets |
459,856 |
356,425 |
|||
Total Assets |
$ |
57,832,694 |
$ |
57,223,787 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||
Current Liabilities: |
|||||
Short term borrowings |
$ |
19,584,412 |
$ |
19,524,207 |
|
Bank notes payable |
2,522,034 |
3,244,333 |
|||
Advances from customers |
590,632 |
695,873 |
|||
Accounts payable |
9,856,358 |
14,194,154 |
|||
Accrued and other liabilities |
1,037,214 |
1,316,921 |
|||
Taxes payable |
381,635 |
560,253 |
|||
Loan from third parties |
188,567 |
195,249 |
|||
Due to related parties |
- |
38,273 |
|||
Total Current Liabilities |
34,160,852 |
39,769,263 |
|||
Total Liabilities |
34,160,852 |
39,769,263 |
|||
Commitments and contingencies |
|||||
Shareholders' Equity |
|||||
Common stock: $0.001 par value, 70,000,000 shares authorized, |
11,667 |
11,667 |
|||
Additional paid in capital |
11,108,133 |
11,108,133 |
|||
Statutory reserve |
2,548,745 |
1,862,365 |
|||
Retained earnings |
9,419,555 |
3,147,151 |
|||
Accumulated other comprehensive income |
312,539 |
1,094,617 |
|||
Total Fuling Global Inc.'s equity |
23,400,639 |
17,223,933 |
|||
Noncontrolling interest |
271,203 |
230,591 |
|||
Total Shareholders' Equity |
23,671,842 |
17,454,524 |
|||
Total Liabilities and Shareholders' Equity |
$ |
57,832,694 |
$ |
57,223,787 |
|
FULING GLOBAL INC. AND SUBSIDIARIES |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME |
||||||||
(UNAUDITED) |
||||||||
For the three months ended September 30, |
For the nine months ended September 30, |
|||||||
2015 |
2014 |
2015 |
2014 |
|||||
Revenues |
$ |
22,408,759 |
$ |
23,068,486 |
$ |
68,154,114 |
$ |
60,983,218 |
Cost of goods sold |
13,872,937 |
15,151,098 |
43,546,039 |
40,491,242 |
||||
Gross Profit |
8,535,822 |
7,917,388 |
24,608,075 |
20,491,976 |
||||
Operating Expenses |
||||||||
Selling expenses |
4,046,228 |
3,561,213 |
11,188,964 |
8,993,957 |
||||
General and administrative expenses |
1,120,577 |
1,072,143 |
3,798,716 |
2,603,560 |
||||
Research and development expenses |
650,570 |
643,353 |
1,583,449 |
1,763,688 |
||||
Total operating expenses |
5,817,375 |
5,276,709 |
16,571,129 |
13,361,205 |
||||
Income from Operations |
2,718,447 |
2,640,679 |
8,036,946 |
7,130,771 |
||||
Other Income (Expense): |
||||||||
Interest income |
30,337 |
11,253 |
49,298 |
27,362 |
||||
Interest expense |
(268,890) |
(320,580) |
(906,794) |
(925,618) |
||||
Subsidy income |
213,357 |
248,260 |
367,779 |
421,594 |
||||
Other income, net |
402,933 |
90,448 |
607,691 |
147,857 |
||||
Total other income (expense), net |
377,737 |
29,381 |
117,974 |
(328,805) |
||||
Income Before Income Taxes |
3,096,184 |
2,670,060 |
8,154,920 |
6,801,966 |
||||
Provision for Income Taxes |
410,456 |
375,066 |
1,155,524 |
934,106 |
||||
Net Income |
$ |
2,685,728 |
$ |
2,294,994 |
$ |
6,999,396 |
$ |
5,867,860 |
Less: net (loss) income attributable to noncontrolling interest |
(44,826) |
(192,074) |
40,612 |
32,137 |
||||
Net income attributable to Fuling Global Inc. |
2,730,554 |
2,487,068 |
6,958,784 |
5,835,723 |
||||
Other Comprehensive Income |
||||||||
Foreign currency translation loss |
(782,876) |
744 |
(782,078) |
(234,986) |
||||
Comprehensive Income |
$ |
1,947,678 |
$ |
2,487,812 |
$ |
6,176,706 |
$ |
5,600,737 |
Earning per share |
||||||||
Basic and diluted |
$ |
0.23 |
$ |
0.21 |
$ |
0.60 |
$ |
0.50 |
Weighted average number of shares |
||||||||
Basic and diluted |
11,666,667 |
11,666,667 |
11,666,667 |
11,666,667 |
||||
Cash dividends per share |
||||||||
Basic and diluted |
$ |
- |
$ |
- |
$ |
- |
$ |
0.88 |
FULING GLOBAL INC. AND SUBSIDIARIES |
|||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||
(UNAUDITED) |
|||||
For the nine months ended September 30, |
|||||
2015 |
2014 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|||||
Net income |
$ |
6,999,396 |
$ |
5,867,860 |
|
Adjustments to reconcile net income to net cash |
|||||
provided by operating activities: |
|||||
Deferred tax expense |
- |
155,647 |
|||
Depreciation and amortization |
1,650,944 |
1,290,357 |
|||
Bad debt provisions |
57,193 |
33,229 |
|||
Gain on disposal of fixed assets |
- |
28,680 |
|||
Changes in operating assets: |
|||||
Accounts receivable |
778,619 |
4,348,240 |
|||
Advances to suppliers |
(1,101,282) |
147,561 |
|||
Inventories |
(714,486) |
(2,599,261) |
|||
Other assets |
543,807 |
(1,993,485) |
|||
Changes in operating liabilities: |
|||||
Accounts payable |
(4,967,288) |
(13,719,900) |
|||
Advance from customers |
(85,926) |
7,357,666 |
|||
Taxes payable |
42,374 |
726,989 |
|||
Accrued and other liabilities |
(250,549) |
576,299 |
|||
Net cash provided by operating activities |
2,952,802 |
2,219,882 |
|||
CASH FLOWS FROM INVESTING ACTIVITIES |
|||||
Purchase of property and equipment |
(2,002,241) |
(3,076,672) |
|||
Proceeds from disposal of property and equipment |
- |
4,875 |
|||
Advance payments on equipment purchase |
(1,049,349) |
(117,865) |
|||
Purchase of intangible assets |
(266,947) |
- |
|||
Net cash used in investing activities |
(3,318,537) |
(3,189,662) |
|||
CASH FLOWS FROM FINANCING ACTIVITIES |
|||||
Proceeds from short-term borrowings |
36,160,712 |
19,185,771 |
|||
Repayments of short-term borrowings |
(35,409,841) |
(18,952,719) |
|||
Proceeds from bank notes payable |
4,084,697 |
4,719,523 |
|||
Repayments of bank notes payable |
(4,714,801) |
(3,266,107) |
|||
Repayments of loans from related parties |
(38,102) |
(221,881) |
|||
Change of restricted cash |
1,393,471 |
696,028 |
|||
Capital contribution |
- |
7,530,000 |
|||
Dividends paid to shareholders |
- |
(10,300,136) |
|||
Net cash provided by (used in) financing activities |
1,476,136 |
(609,521) |
|||
EFFECT OF EXCHANGE RATE CHANGES ON CASH |
(100,598) |
13,777 |
|||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
1,009,803 |
(1,565,524) |
|||
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD |
1,399,714 |
2,698,795 |
|||
CASH AND CASH EQUIVALENTS, ENDING OF THE PERIOD |
$ |
2,409,517 |
$ |
1,133,271 |
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: |
|||||
Cash paid during the period for: |
|||||
Interest paid |
$ |
967,248 |
$ |
830,399 |
|
Income tax paid |
$ |
1,168,820 |
$ |
753,399 |
|
Non-cash investing activities: |
|||||
Transfer from construction in progress to fixed assets |
$ |
1,129,339 |
$ |
- |
|
Transfer from advance payments to fixed assets |
$ |
918,858 |
$ |
680,251 |
|
