omniture

Fuling Global Inc. Reports Third Quarter 2017 Financial Results

Both Revenues and Sales Volume Hit Record High, Following Growth of 23.3% and 19.2%, Respectively
2017-11-14 20:00 1113

ALLENTOWN, PA., Nov. 14, 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 nine months ended September 30, 2017.

Mr. Xinfu Hu, Chief Executive Officer of Fuling Global, commented, "We are very pleased to report strong results for the third quarter with both revenues and sale volume reached record high on the back of continuing demand momentum for our products. Total revenues increased by 23.3% to $34.4 million, thanks to a 19.2% increase sales volume as well as a moderate increase in blended average selling price ("ASP") of 3.5%. However, our margins and profitability decreased as the increase in cost of goods sold outpaced the increase in revenues due to increase in material costs which were not able to fully pass over to customers."

Ms. Guilan Jiang, Chairwoman of Fuling Global, added, "Despite uncertainty on market factors, particularly material costs and pricing environment for our products, we are optimistic in our near-term outlook as our order book remains strong and our manufacturing capacity keeps expanding with the recent launch of the new factory in China. We look forward to better day ahead as we continue our steady growth path."

Third Quarter 2017 Highlights



For the Three Months Ended September 30,

($ millions, except per share data)


2017


2016


% Change

Revenues


$34.4


$27.9


23.3%

Gross profit


$7.4


$6.9


7.0%

Gross margin


21.5%


24.8%


-3.3 percentage points

Operating income


$2.5


$2.4


2.5%

Operating margin


7.2%


8.6%


-1.5 percentage points

Net income attributable to Fuling Global


$2.0


$2.1


-3.2%

Diluted earnings per share


$0.13


$0.13


-3.3%

 

  • Revenues increased by 23.3% to $34.4 million for the third quarter 2017 from $27.9 million for the same period of last year, as a result of the combined effect of increases in both sales volume and blended ASP.
  • Total sales volume increased by 19.2% to 13,649 tons for the third quarter 2017 from 11,454 tons for the same period of last year. The increase in sales volume was across all product categories. Blended ASP also increased by 3.5% to $2.52 per kilogram for the third quarter 2017 from $2.44 per kilogram for the same period of last year.
  • Gross profit increased by 7.0% to $7.4 million for the third quarter 2017 from $6.9 million for the same period of last year. Gross margin decreased by 3.3 percentage points to 21.5% for the third quarter 2017 from 24.8% 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.
  • Net income attributable to Fuling Global was $2.0 million, or $0.13 per basic and diluted share, for the third quarter 2017, compared to $2.1 million, or $0.13 per basic and diluted share for the same period of last year. The decrease in net income attributable to Fuling Global was mainly due to the increase in total operating and interest expenses that more than offset the increase in gross profit.

Third Quarter 2017 Financial Results

Revenues

For the third quarter 2017, total revenues increased by $6.5 million, or 23.3%, to a record level of $34.4 million from $27.9 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 2,196 tons, or 19.2%, to 13,649 tons for the third quarter 2017 from 11,454 tons for the same period of last year. The increase in overall sales volume was across all product categories. Blended ASP increased by $0.08 per kilogram, or 3.5%, to $2.52 per kilogram for the third quarter 2017 from $2.44 per kilogram for the same period of last year.

The increase in revenues was across all major product categories. Revenues from cutlery increased by $1.4 million, or 9.1%, to $17.2 million for the third quarter 2017 from $15.8 million for the same period of last year. Revenues from straws sales increased by $2.4 million, or 81.0%, to $5.4 million for the third quarter 2017 from $3.0 million for the same period of last year. Revenues from cups and plates sales increased by $2.0 million, or 28.2%, to $8.9 million for the third quarter 2017 from $6.9 million for the same period of last year. Revenues from other products sales increased by $0.7 million, or 32.1%, to $2.9 million for the third quarter 2017 from $2.2 million for the same period of last year. Cutlery, straws, cups and plates, and other products accounted for 50.1%, 15.7%, 25.9%, and 8.3% of total revenues for the third quarter 2017, compared to 56.6%, 10.7%, 24.9%, and 7.8% for the same period of last year, respectively.


For the Three Months Ended September 30,



2017



2016



Y/Y Change



Revenues
($'000)


% of
Total



Revenues
($'000)


% of
Total



Amount
($'000)


%

Cutlery

$

17,228


50.1%


$

15,793


56.6%


$

1,436


9.1%

Straws


5,394


15.7%



2,980


10.7%



2,414


81.0%

Cups and plates


8,905


25.9%



6,946


24.9%



1,959


28.2%

Others


2,881


8.3%



2,181


7.8%



699


32.1%

Total

$

34,408


100.0%


$

27,901


100.0%


$

6,508


23.3%

On a geographical basis, sales in the U.S., Fuling Global's largest market, increased by $6.7 million, or 28.4%, to $30.3 million for the third quarter 2017 from $23.6 million for the same period of last year. Sales in Canada also increased by $0.2 million, or 23.0%, to $0.8 million for the third quarter 2017 from $0.7 million for the same period of last year. Sales in China, our second largest market, were the strongest and increased by $0.7 million, or 41.6%, to $2.5 million for the third quarter 2017 from $1.8 million for the same period of last year. Sales in Europe and other regions were $0.5 million and $0.3 million, respectively, for the third quarter 2017, compared to $1.1 million and $0.8 million, respectively, for the same period of last year.



For the Nine Months Ended September 30,



2017



2016



Y/Y Change



Revenues
($'000)


% of
Total



Revenues
($'000)


% of
Total



Amount
($'000)


%

U.S.

$

79,897


87.5%


$

65,571


89.7%


$

14,326


21.8%

Europe


2,540


2.8%



2,528


3.5%



12


0.5%

China


6,119


6.7%



2,578


3.5%



3,541


137.4%

Canada


1,414


1.5%



1,156


1.6%



258


22.3%

Others


1,323


1.5%



1,240


1.7%



83


6.7%

Total

$

91,293


100.0%


$

73,073


100.0%


$

18,220


24.9%

Gross profit

Total cost of goods sold increased by $6.0 million, or 28.7%, to $27.0 million for the third quarter 2017 from $21.0 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 increased by $0.5 million, or 7.0%, to $7.4 million for the third quarter 2017 from $6.9 million for the same period of last year. Gross margin was 21.5% for the third quarter 2017, compared to 24.8% 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 $0.4 million, or 25.5%, to $2.2 million for the third quarter 2017 from $1.7 million for the same period of last year. As a percentage of sales, selling expenses were 6.3% in the third quarter 2017, compared to 6.2% in the same period of last year. General and administrative expenses decreased by $0.3 million, or 12.0%, to $1.9 million for the third quarter 2017 from $2.1 million for the same period of last year. As a percentage of sales, general and administrative expenses were 5.5% in the third quarter 2017, compared to 7.7% in the same period of last year. Research and development expenses increased by $0.2 million, or 37.3%, to $0.9 million for the third quarter 2017 from $0.6 million for the same period of last year. 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 $0.4 million, or 9.4%, to $4.9 million for the third quarter 2017 from $4.5 million for the same period of last year.

Operating income increased by $0.1 million, or 2.5%, to $2.5 million for the third quarter 2017 from $2.4 million for the same period of last year. Operating margin was 7.2% for the third quarter 2017, compared to 8.6% for the same period of last year. The decrease in operating margin was due to decrease in gross margin and partially offset by decrease in operating expenses as a percentage of sales.

Income before income taxes

Total net other expense, which includes interest income and expenses, subsidy income and other non-operating income and expenses, was $0.3 million for the third quarter 2017, compared to $0.1 million for the same period of last year.

Income before income taxes decreased by $0.1 million, or 4.8%, to $2.2 million for the third quarter 2017 from $2.3 million for the same period of last year. The decrease was primarily due to higher interest expense due to increase in borrowings

Provision for income taxes was $0.2 million for the third quarter 2017, compared to $0.3 million for the same period of last year.  

Net income

Net income was essentially unchanged at $2.0 million for the third quarter 2017. After deduction of non-controlling interest, net income attributable to Fuling Global decreased by $0.1 million, or 3.2%, to $2.0 million for the third quarter 2017 from $2.1 million for the same period of last year.

Basic and diluted earnings per share were $0.13 for the third quarter 2017, unchanged from the same period of last year.

Nine Months Ended September 30, 2017 Financial Results



For the Nine Months Ended September 30,

($ millions, except per share data)


2017


2016


% Change

Revenues


$91.3


$73.1


24.9%

Gross profit


$18.8


$19.5


-3.5%

Gross margin


20.6%


26.6%


-6.1 percentage points

Operating income


$5.9


$7.2


-18.4%

Operating margin


6.5%


9.9%


-3.4 percentage points

Net income attributable to Fuling Global


$4.9


$7.5


-34.6%

Diluted earnings per share


$0.31


$0.48


-34.7%

Revenues

For the nine months ended September 30, 2017, total revenues increased by $18.2 million, or 24.9%, to $91.3 million from $73.1 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 5,791 tons, or 19.4%, to 35,583 tons for the nine months ended September 30, 2017 from 29,792 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 $0.11 per kilogram, or 4.6%, to $2.57 per kilogram for the nine months ended September 30, 2017 from $2.45 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.

The increase in revenues was across all product categories. Revenues from cutlery sales increased by $2.4 million, or 5.7%, to $44.6 million for the nine months ended September 30, 2017 from $42.2 million for the same period of last year. Revenues from straws sales increased by $7.0 million, or 92.7%, to $14.5 million for the nine months ended September 30, 2017 from $7.5 million for the same period of last year. Revenues from cups and plates sales increased by $6.3 million, or 34.7%, to $24.6 million for the nine months ended September 30, 2017 from $18.3 million for the same period of last year. Revenues from other products sales increased by $2.5 million, or 49.4%, to $7.7 million for the nine months ended September 30, 2017 from $5.1 million for the same period of last year. Cutlery, straws, cups and plates, and other products accounted for 48.8%, 15.8%, 27.0%, and 8.4% of total revenues for the nine months ended September 30, 2017, compared to 57.7%, 10.3%, 25.0%, and 7.0% for the same period of last year, respectively.


For the Nine Months Ended September 30,



2017



2016



Y/Y Change



Revenues
($'000)


% of
Total



Revenues
($'000)


% of
Total



Amount
($'000)


%

Cutlery

$

44,569


48.8%


$

42,184


57.7%


$

2,385


5.7%

Straws


14,459


15.8%



7,503


10.3%



6,956


92.7%

Cups and plates


24,607


27.0%



18,261


25.0%



6,345


34.7%

Others


7,659


8.4%



5,125


7.0%



2,534


49.4%

Total

$

91,293


100.0%


$

73,073


100.0%


$

18,220


24.9%

On a geographical basis, sales in the U.S., Fuling Global's largest market, increased by $14.3 million, or 21.8%, to $79.9 million for the nine months ended September 30, 2017 from $65.6 million for the same period of last year. Sales in Europe were essentially unchanged at $2.5 million for the nine months ended September 30, 2017. Sales in China, our second largest market, were the strongest and increased by $3.5 million, or 137.4%, to $6.1 million for the nine months ended September 30, 2017 from $2.6 million for the same period of last year. Sales in Canada increased by $0.3 million, or 22.3%, to $1.4 million for the nine months ended September 30, 2017 from $1.2 million for the same period of last year.



For the Nine Months Ended September 30,



2017



2016



Y/Y Change



Revenues
($'000)


% of
Total



Revenues
($'000)


% of
Total



Amount
($'000)


%

U.S.

$

79,897


87.5%


$

65,571


89.7%


$

14,326


21.8%

Europe


2,540


2.8%



2,528


3.5%



12


0.5%

China


6,119


6.7%



2,578


3.5%



3,541


137.4%

Canada


1,414


1.5%



1,156


1.6%



258


22.3%

Others


1,323


1.5%



1,240


1.7%



83


6.7%

Total

$

91,293


100.0%


$

73,073


100.0%


$

18,220


24.9%

Gross profit

Total cost of goods sold increased by $18.9 million, or 35.3%, to $72.5 million for the nine months ended September 30, 2017 from $53.6 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 $0.7 million, or 3.5%, to $18.8 million for the nine months ended September 30, 2017 from $19.5 million for the same period of last year. Gross margin was 20.6% the nine months ended September 30, 2017, compared to 26.6% for the same period of last year.

Operating income

Selling expenses increased by $0.5 million, or 10.0%, to $5.3 million for the nine months ended September 30, 2017 from $4.8 million for the same period of last year. As a percentage of sales, selling expenses were 5.8% in the nine months ended September 30, 2017, compared to 6.6% in the same period of last year. General and administrative expenses decreased by $0.1 million, or 2.2%, to $5.6 million for the nine months ended September 30, 2017 from $5.7 million for the same period of last year. As a percentage of sales, general and administrative expenses were 6.1% in the nine months ended September 30, 2017, compared to 7.8% in the same period of last year. Research and development expenses increased by $0.3 million, or 16.6%, to $2.0 million for the nine months ended September 30, 2017 from $1.7 million for the same period of last year. As a percentage of sales, research and development expenses were 2.2% in the nine months ended September 30, 2017, compared to 2.4% in the same period of last year. We expect research and development 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 $0.6 million, or 5.3%, to $12.9 million for the nine months ended September 30, 2017 from $12.2 million for the same period of last year.

Operating income decreased by $1.3 million, or 18.4%, to $5.9 million for the nine months ended September 30, 2017 from $7.2 million for the same period of last year. Operating margin was 6.5% for nine months ended September 30, 2017, compared to 9.9% 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 expense, which includes interest income and expenses, subsidy income and other non-operating income and expenses, was $0.1 million for the nine months ended September 30, 2017, compared other income of $1.6 million for the same period of last year. The difference was mainly due to decrease in subsidiary income to $0.8 million for the nine months ended September 30, 2017 from $2.1 million for the same period of last year.  

Income before income taxes decreased by $3.0 million, or 34.2%, to $5.8 million for the nine months ended September 30, 2017 from $8.8 million for the same period of last year. The decrease was a result of decrease in gross profit and subsidy income as well as increase in total operating expenses this year.

Provision for income taxes was $0.9 million for the nine months ended September 30, 2017, compared to $1.2 million for the same period of last year.  

Net income

Net income decreased by $2.6 million, or 34.8%, to $4.9 million for the nine months ended September 30, 2017 from $7.6 million for the same period of last year. After deduction of non-controlling interest, net income attributable to Fuling Global decreased by $2.6 million, or 34.6%, to $4.9 million for the nine months ended September 30, 2017 from $7.5 million for the same period of last year.

Basic and diluted earnings per share were $0.31 for the nine months ended September 30, 2017, compared to $0.48 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 as well as higher total operating expenses in 2017.

Financial Condition

As of September 30, 2017, the Company had cash and cash equivalents, restricted cash, and certificates of deposits of $3.0 million, $4.8 million, and $1.6 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 $22.6 million and $4.1 million, respectively, as of September 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 September 30, 2017, compared to $0.8 million at the end of 2016.

Net cash provided by operating activities was $1.7 million for the nine months ended September 30, 2017, compared to $1.5 million for the same period of last year. Net cash used in investing activities was $7.4 million for the nine months ended September 30, 2017, compared to $16.1 million for the same period of last year. Net cash provided by financing activities was $4.6 million for the nine months ended September 30, 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
September 30,


For the Nine Months Ended
September 30,


2017


2016



2017


2016










Revenues

$

34,408,431


$

27,900,613


$

91,293,178


$

73,072,804

Cost of goods sold


26,999,672



20,976,558



72,512,383



53,611,804

Gross Profit


7,408,759



6,924,055



18,780,795



19,461,000













Operating Expenses












Selling expenses


2,169,817



1,728,965



5,295,948



4,812,765

General and administrative expenses


1,886,853



2,143,300



5,567,356



5,692,015

Research and development expenses


882,340



642,606



2,025,041



1,736,919

Total operating expenses


4,939,010



4,514,871



12,888,345



12,241,699













Income from Operations


2,469,749



2,409,184



5,892,450



7,219,301













Other Income (Expense):












Interest income


10,977



7,507



23,716



25,086

Interest expense


(337,789)



(187,503)



(811,218)



(615,878)

Subsidy income


146,376



196,447



750,561



2,054,436

Foreign currency transaction gain (loss)


(129,368)



(287,642)



(242,311)



134,885

Other expense, net


39,202



171,055



172,229



(21,940)

Total other income (expense), net


(270,602)



(100,136)



(107,023)



1,576,589













Income Before Income Taxes


2,199,147



2,309,048



5,785,427



8,795,890













Provision for Income Taxes


215,500



308,594



858,300



1,237,137













Net Income

$

1,983,647


$

2,000,454


$

4,927,127


$

7,558,753













Less: net income (loss) attributable to noncontrolling interest


(21,025)



(70,153)



25,093



65,683













Net income attributable to Fuling Global Inc.

$

2,004,672


$

2,070,607


$

4,902,034


$

7,493,070













Other Comprehensive Income












Foreign currency translation income (loss)


601,668



(271,722)



1,481,208



(853,214)

Comprehensive income attributable to Fuling Global Inc.

$

2,606,340


$

1,798,885


$

6,383,242


$

6,639,856













Earnings per share












Basic and diluted

$

0.13


$

0.13


$

0.31


$

0.48













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



September 30,


December 31,


2017


2016


(UNAUDITED)



ASSETS




Current Assets:




Cash and cash equivalents

$

3,031,345


$

4,009,784

Restricted cash


4,788,234



2,333,607

Certificates of deposit


1,606,173



1,539,082

Accounts receivable, net


22,000,043



20,915,134

Advances to supplier, net


503,879



639,947

Inventories, net


19,212,413



16,731,704

Prepaid expenses and other current assets


2,848,560



1,660,978

Total Current Assets


53,990,647



47,830,236







Property, plant and equipment, net


42,249,435



33,802,047

Intangible assets, net


9,708,978



9,447,486

Prepayments for construction and equipment purchases


1,189,555



2,192,236

Security deposits for sale leaseback


1,286,897



723,206

Other assets


431,712



269,329

Total Assets

$

108,857,224


$

94,264,540







LIABILITIES AND SHAREHOLDERS' EQUITY












Current Liabilities:






Short term borrowings

$

22,618,369


$

17,790,962

Bank notes payable


4,077,723



2,556,768

Advances from customers


536,007



604,873

Accounts payable


16,583,949



16,333,445

Accrued and other liabilities


2,396,586



2,195,853

Other payable - sale leaseback


2,962,330



1,931,076

Taxes payable


438,181



164,571

Deferred gains


109,047



650,343

Due to Related party


-



53,082

Total Current Liabilities


49,722,192



42,280,973







Long term payable - sale leaseback


1,814,853



1,675,314

Long term borrowings


1,404,504



836,471

Total Liabilities


52,941,549



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 September 30, 2017 and December
    31, 2016, respectively


15,757



15,757

Additional paid in capital


29,881,000



29,845,442

Statutory reserve


4,486,754



4,017,957

Retained earnings


21,409,370



16,976,133

Accumulated other comprehensive loss


(39,542)



(1,520,750)

Total Fuling Global Inc.'s equity


55,753,339



49,334,539







Noncontrolling interest


162,336



137,243

Total Shareholders' Equity


55,915,675



49,471,782







Total Liabilities and Shareholders' Equity

$

108,857,224


$

94,264,540

 

 

FULING GLOBAL INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)



For the Nine Months
Ended

September 30,


2017


2016

CASH FLOWS FROM OPERATING ACTIVITIES




Net income

$

4,927,127


$

7,558,753

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






Stock based compensation


35,558



103,752

Deferred tax expense


-



(147,925)

Depreciation and amortization


2,832,006



2,025,892

Bad debt provisions


69,348



93,672

Unrealized transaction losses (gains)


26,547



(8,367)

Inventory reserve


24,078



38,592

Gain on disposal of fixed assets


71,722



(12,811)

Changes in operating assets:






Accounts receivable


(734,682)



(2,390,053)

Advances to suppliers


156,801



(2,051,239)

Inventories


(2,149,672)



(2,755,941)

Other assets


(775,392)



(2,667,035)

Security deposit for sale leaseback


(520,007)



-

Changes in operating liabilities:






Accounts payable


(1,242,102)



1,633,617

Advance from customers


(89,373)



76,931

Deferred gains


(556,867)



-

Taxes payable


(522,747)



(345,894)

Accrued and other liabilities


141,384



329,547

Net cash provided by operating activities


1,693,729



1,481,491

CASH FLOWS FROM INVESTING ACTIVITIES






Additions to property and equipment


(845,452)



(3,115,263)

Additions to construction in progress


(5,931,263)



(6,113,768)

Cash receipts from disposal property and equipment


13,254



19,483

Cash decrease from certificates of deposit


256



3,039,711

Prepayments for construction and equipment purchase


(601,208)



(1,518,656)

Purchase of intangible assets


-



(8,378,405)

Net cash used in investing activities


(7,364,413)



(16,066,898)

CASH FLOWS FROM FINANCING ACTIVITIES






Proceeds from short-term borrowings


24,225,802



20,633,979

Repayments of short-term borrowings


(20,230,871)



(19,695,027)

Proceeds from long-term borrowings


568,033



843,715

Proceeds from bank notes payable


5,345,605



4,839,723

Repayments of bank notes payable


(3,968,412)



(4,449,644)

Repayment of third party borrowing


-



(182,365)

Repayments of loans from related parties


(54,151)



-

Proceeds from other payable - sales lease back


2,843,102



-

Repayments of other payable - sales lease back


(1,853,044)



-

Change of restricted cash


(2,301,947)



(515,902)

Net cash provided by financing activities


4,574,117



1,474,479







EFFECT OF EXCHANGE RATES CHANGES ON CASH AND CASH EQUIVALENTS


118,128



(208,575)







NET DECREASE IN CASH AND CASH EQUIVALENTS


(978,439)



(13,319,503)







CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD


4,009,784



15,573,554

CASH AND CASH EQUIVALENTS, ENDING OF THE PERIOD

$

3,031,345


$

2,254,051

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:






Cash paid during the period for:






Interest paid

$

628,556


$

579,693

Income tax paid

$

1,116,023


$

1,693,233

Non-cash investing activities:






Transfer from construction in progress to fixed assets

$

16,292,344


$

876,753

Transfer from accounts payable to fixed assets

$

865,130


$

-

Transfer from advance payments to fixed assets

$

507,736


$

1,581,582

 

View original content:http://www.prnewswire.com/news-releases/fuling-global-inc-reports-third-quarter-2017-financial-results-300554367.html

Source: Fuling Global Inc.
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