NINGBO, China, November 2, 2011 /PRNewswire-Asia-FirstCall/ -- Keyuan Petrochemicals Inc. (OTC: KEYP), ("Keyuan" or "the Company"), an independent manufacturer and supplier of various petrochemical products in China, today announced the Company's financial results for the six months ended June 30, 2011.
"Our first half 2011 revenues benefitted from solid customer demand and expanded production capacity," declared Mr. Chungfeng Tao, Chairman and Chief Executive Officer of Keyuan Petrochemicals Inc. "Although our margins were negatively impacted by higher raw materials costs and one-time legal and administrative expenses related to the investigation, we generated strong cash flows, which allow us to continue funding our growth initiatives. With our new SBS production facility ramping into commercial production later this month, I believe Keyuan's core earnings potential continues to improve."
| Q1 2011 | Q1 2010 | Chg. | Q2 2011 | Q2 2010 | Chg. |
Net Revenues | $146.8M | $117.4M | 25.0% | $150.9M | $132.0M | 14.3% |
Gross Profits | $12.7M | $8.8M | 44.3% | $1.9M | $8.6M | (77.9%) |
Net Income (loss)(a) | $4.9M | $5.1M | (3.9%) | ($2.1M) | $3.9M | (153.8%) |
EPS (Diluted) | $0.08 | $0.11 | (27.3%) | ($0.04) | $0.08 | (150%) |
Adjusted Net Income(a) | $5.6M(1) | $5.1M | 9.8% | $0.2(2) | $3.9M | (94.9%) |
Adjusted EPS (Diluted) | $0.09(1) | $0.11 | (18.2%) | $0.003(2) | $0.08 | (96.3%) |
Diluted Shares O/S | 63.9 | 47.7 | 34% | 57.6 | 54.9 | 4.9% |
(1) Q1 2011 Adjusted net income and EPS (Non-GAAP) excludes approximately $0.7 million of non-cash stock compensation expenses. | ||||||
First Half 2011 Financial Results
6 months ended June 30, 2011 | 1H 2011 | 1H 2010 | % Chg. |
Net Revenues | $297.7 million | $249.4 million | 19.4% |
Gross Profits | $14.5 million | $17.5 million | (17.1%) |
Net Income(a) | $2.8 million | $9.0 million | (68.9%) |
EPS (Diluted) | $0.05 | $0.18 | (72.2%) |
Adjusted Net Income(a) | $5.8 million(3) | $9.0 million | (35.6%) |
Adjusted EPS (Diluted) | $0.09(3) | $0.18 | (50.0%) |
Diluted Shares O/S | 63.8 | 51.3 | 24.4% |
(3) Adjusted net income and EPS (Non-GAAP) excludes approximately $1.3 million of non-cash stock compensation expenses and $1.7 million of legal expenses related to the independent investigation. | |||
For the six months ended June 30, 2011, sales were approximately $297.7 million compared to $249.4 million for the six months ended June 30, 2010. The Company sold 284,595 metric tons (MT) of petrochemical products, down 5.4% from 300,701 MT of products sold in the corresponding period in 2010. The average sales price per metric ton was $1,039 during the first half of 2011, a 25.3% increase from $829 per metric ton in the first half of 2010.
Cost of goods sold increased 21.3% in the six months ended June 30, 2011 to $283.1 million. Gross margin was 4.9% for the first six months of 2011 compared to 7.0% in the same period a year ago mainly due to higher raw materials costs.
Operating expenses for the six months of 2011 were approximately $8.5 million, consisting of $0.8 million in selling expenses and $7.7 million in general and administrative expenses compared to approximately $0.3 million and $2.0 million, respectively, in the first half of 2010. Operating expenses were higher due to public company expenses and increased headcount to support business expansion.
Operating income totaled $6.0 million, representing an operating margin of approximately 2.0%, compared to $15.1 million and 6.1% during the six months of 2010, respectively. Excluding approximately $1.3 million of non-cash stock compensation expenses and $1.7 million of legal expenses related to the independent investigation, operating income and operating margin in the first six months of 2011 were $9.0 million and 3.0%, respectively.
GAAP net income attributable to common stockholders for the six months of 2011 was $2.8 million with corresponding earnings per share of $0.05. Adjusted net income attributable to common shareholders was $5.8 million and $9.0 million in the first half of 2011 and 2010, respectively. Adjusted diluted net income per share was $0.09 in the first half of 2011 compared to $0.18 in the same period in 2010, based on 63.8 million and 51.3 million weighted average diluted shares outstanding, respectively.
The Company had $158.5 million of cash and restricted cash at June 30, 2011 compared to $127.4 million at December 31, 2010. For the six months of 2011, the Company generated $34.7 million in cash flow from operations compared to $10.3 million in the corresponding period a year ago. Inventories were $103.2 million at June 30, 2011 and advance payments for the suppliers amounted to $8.4 million.
Full Year 2011 Guidance
Management reiterates its prior guidance for $625.0 million of revenues and 570,000 MT of production for the twelve months ending December 31, 2011. This assumes approximately $30.0 million of revenue contribution from its SBS production facility.
Business Updates
The Company has issued a shareholder letter from the Chairman and Chief Executive Officer Chungfeng Tao on the investor relations section of its website. Interested parties can access the shareholder letter by clicking on the link below: http://ir.stockpr.com/keyuanpetrochemicals/presentation
By the end of September, 2011, the Company completed construction of its new 70,000 MT Styrene-Butadiene-Styrene ("SBS") production facility. Demands for SBS have been driven by strong growth in basic materials such as tires, rubbers and other industrial applications. The facility is currently under trial production for the next couple months to assure quality control with expected commercial production launching by year end 2011. Management expects to generate between $100 and $110 million in net revenues from SBS in 2012 with a net income between $10 and $11 million. Pictures of the new SBS facility can be viewed at the following link: http://www.keyuanpetrochemicals.com/our-company/sbs-facility.
Dividend Update
The Company's Board of Directors voted to suspend the payment of quarterly cash dividends on common stock while it pursues strategic alternatives including, but not limited to, taking the Company private, a merger or other transaction.
About Keyuan Petrochemicals, Inc.
Keyuan Petrochemicals, Inc., established in 2007 and operating through its wholly-owned subsidiary, Keyuan Plastics, Co. Ltd., is located in Ningbo, China and is a leading independent manufacturer and supplier of various petrochemical products. Having commenced production in October 2010, Keyuan's operations include an annual petrochemical manufacturing design capacity of 720,000 MT for a variety of petrochemical products, with facilities for the storage and loading of raw materials and finished goods, and a technology that supports the manufacturing process with low raw material costs and high utilization and yields. In order to meet increasing market demand, Keyuan plans to expand its manufacturing capacity to include a SBS production facility which was completed in September 2011 and is currently on trial production, additional storage capacity, a raw material pre-treatment facility, and an asphalt production facility.
About Non-GAAP Financial Measures
To supplement our consolidated financial statements, which statements are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: adjusted net income and adjusted EPS (basic and diluted). 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. We use these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our "recurring core business operating results". We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. We believe these non-GAAP financial measures are useful to investors 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 our business.
Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income (Unaudited):
| 1H2011 |
| 1H2010 |
Net Income attributable to KEYP common stockholders | $2,789,097 |
| $8,965,324 |
Non-cash stock compensation expense | $1,285,185 |
| -- |
Legal expense related to the independent investigation | $1,700,000 |
| -- |
Adjusted Net Income | $5,774,282 |
| $8,965,324 |
|
|
|
|
Basic and diluted weighted average shares outstanding |
|
|
|
Basic | 57,578,896 |
| 48,858,321 |
Diluted | 63,836,982 |
| 51,314,420 |
|
|
|
|
Adjusted Earnings per share |
|
|
|
Basic | 0.10 |
| 0.18 |
Diluted | 0.09 |
| 0.18 |
Cautionary Statement Regarding Forward-Looking Information
This press release may contain certain "forward-looking statements" relating to the business of Keyuan Petrochemicals, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding the impact of the proceeds from the private placement on the Company's short term business and operations, the general ability of the Company to achieve its commercial objectives, including the ability of the Company to sustain growth; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For more information, please contact:
Investor Relations:
Ted Haberfield, President
MZ North America, IR
Tel: +1-760-755-2716
Email: thaberfield@hcinternational.net
Web: www.mz-ir.com
Mr. Andrew Haag, Managing Partner, USA
Hampton Growth, LLC
Tel: +1-877-368-3566
Email: andrew@hamptongrowth.com
Web: www.hamptongrowth.com
KEYUAN PETROCHEMICALS, INC. AND SUBSIDIAIRES
| ||||||||||
|
| June 30, |
|
| December 31, |
| ||||
|
| 2011 |
|
| 2010 |
| ||||
|
| (Unaudited) |
|
|
|
| ||||
ASSETS |
|
|
|
|
|
| ||||
Current assets: |
|
|
|
|
|
| ||||
Cash |
| $ | 5,783,010 |
|
| $ | 29,336,241 |
| ||
Pledged bank deposits |
|
| 152,745,891 |
|
|
| 98,053,146 |
| ||
Bills receivable |
|
| 3,652,467 |
|
|
| 9,194,513 |
| ||
Inventories |
|
| 103,216,904 |
|
|
| 86,831,556 |
| ||
Prepayments to suppliers |
|
| 8,399,486 |
|
|
| 14,071,219 |
| ||
Consumption tax refund receivable |
|
| 34,406,640 |
|
|
| 39,144,688 |
| ||
Amounts due from related parties |
|
| 38,675 |
|
|
| 5,332,193 |
| ||
Other current assets |
|
| 48,477,204 |
|
|
| 28,608,833 |
| ||
Deferred income tax assets |
|
| 479,207 |
|
|
| 469,914 |
| ||
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
| ||
Total current assets |
|
| 357,199,484 |
|
|
| 311,042,303 |
| ||
|
|
|
|
|
|
|
|
| ||
Property, plant and equipment, net |
|
| 163,015,224 |
|
|
| 129,781,304 |
| ||
Intangible assets, net |
|
| 1,013,929 |
|
|
| 1,045,466 |
| ||
Land use rights |
|
| 11,099,122 |
|
|
| 11,099,875 |
| ||
Prepayments for property, plant and equipment |
|
| 4,516,760 |
|
|
| - |
| ||
|
|
|
|
|
|
|
|
| ||
Total assets |
| $ | 536,844,519 |
|
| $ | 452,968,948 |
| ||
|
|
|
|
|
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
|
|
|
| ||
Short-term bank borrowings |
| $ | 168,068,315 |
|
| $ | 135,768,634 |
| ||
Bills payable |
|
| 51,747,150 |
|
|
| 60,224,900 |
| ||
Current portion of long-term bank borrowings |
|
| 4,641,000 |
|
|
| 17,445,500 |
| ||
Accounts payable |
|
| 149,772,489 |
|
|
| 92,225,936 |
| ||
Advances from customers |
|
| 12,092,013 |
|
|
| 10,479,217 |
| ||
Accrued expenses and other payables |
|
| 32,974,995 |
|
|
| 18,205,110 |
| ||
Income taxes payable |
|
| 1,385,813 |
|
|
| 10,699,778 |
| ||
Dividends payable |
|
| 2,969,935 |
|
|
| 234,393 |
| ||
Amounts due to related parties |
|
| 3,104,306 |
|
|
| 115,535 |
| ||
|
|
|
|
|
|
|
|
| ||
Total current liabilities |
|
| 426,756,016 |
|
|
| 345,399,003 |
| ||
Long-term bank borrowings |
|
| 15,470,000 |
|
|
| 15,170,000 |
| ||
|
|
|
|
|
|
|
|
| ||
Total liabilities |
|
| 442,226,016 |
|
|
| 360,569,003 |
| ||
|
|
|
| |||||||
|
|
|
|
|
|
|
|
| ||
Series B convertible preferred stock: |
|
|
|
|
|
|
|
| ||
Par value: $0.001; Authorized: 5,400,010 shares |
|
|
|
|
|
|
|
| ||
6% cumulative dividend with liquidation preference |
|
|
|
|
|
|
|
| ||
over common stock |
|
|
|
|
|
|
|
| ||
Issued and outstanding: 5,400,010 shares |
|
|
|
|
|
|
|
| ||
liquidation preference of $20,250,000 |
|
| 16,701,565 |
|
|
| 16,701,565 |
| ||
|
|
|
| |||||||
Commitments and contingencies |
|
| - |
|
|
| - |
| ||
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
| ||
Stockholders' equity: |
|
|
|
|
|
|
|
| ||
Series M convertible preferred stock: |
|
|
|
|
|
|
|
| ||
Par value: $0.001; Authorized: 47,658 shares; |
|
|
|
|
|
|
|
| ||
Issued and outstanding: nil at June 30, 2011 |
|
|
|
|
|
|
|
| ||
and December 31,2010 |
|
| - |
|
|
| - |
| ||
Common stock: |
|
|
|
|
|
|
|
| ||
Par value: $0.001; Authorized: 100,000,000 shares; |
|
|
|
|
|
|
|
| ||
Issued and outstanding: 57,579,490 shares on June 30, 2011 |
|
|
|
|
|
|
|
| ||
and 57,577,840 shares on December 31, 2010 |
|
| 57,580 |
|
|
| 57,578 |
| ||
Additional paid-in capital |
|
| 48,237,349 |
|
|
| 47,012,061 |
| ||
Statutory reserve |
|
| 3,075,356 |
|
|
| 3,075,356 |
| ||
Accumulated other comprehensive income |
|
| 5,042,587 |
|
|
| 3,310,416 |
| ||
Retained earnings |
|
| 21,504,066 |
|
|
| 22,242,969 |
| ||
|
|
|
|
|
|
|
|
| ||
Total stockholders' equity |
|
| 77,916,938 |
|
|
| 75,698,380 |
| ||
|
|
|
|
|
|
|
|
| ||
Total liabilities and stockholders' equity |
| $ | 536,844,519 |
|
| $ | 452,968,948 |
| ||
|
|
|
|
|
|
|
|
| ||
KEYUAN PETROCHEMICALS, INC. AND SUBSIDIARIES
| |||||||||||||||
| For the Three Months Ended |
| For the Six Months Ended |
| |||||||||||
| June 30, |
| June 30, |
| |||||||||||
| 2011 |
|
| 2010 |
| 2011 |
|
| 2010 |
| |||||
Sales |
|
|
|
|
|
|
|
|
|
| |||||
Third parties |
| 115,281,945 |
|
|
| 105,627,764 |
|
| 239,436,744 |
|
|
| 202,182,241 |
| |
Related Parties |
| 35,607,658 |
|
|
| 26,369,453 |
|
| 58,217,477 |
|
|
| 47,186,862 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total Sales | $ | 150,889,603 |
|
| $ | 131,997,217 |
| $ | 297,654,221 |
|
| $ | 249,369,103 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Third parties |
| 111,055,933 |
|
|
| 98,516,344 |
|
| 224,870,131 |
|
|
| 187,429,672 |
| |
Related parties |
| 37,977,326 |
|
|
| 24,835,031 |
|
| 58,276,685 |
|
|
| 44,478,145 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total Cost of sales |
| 149,033,259 |
|
|
| 123,351,375 |
|
| 283,146,816 |
|
|
| 231,907,817 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Gross profit |
| 1,856,344 |
|
|
| 8,645,842 |
|
| 14,507,405 |
|
|
| 17,461,286 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selling expenses |
| 215,548 |
|
|
| 258,901 |
|
| 754,680 |
|
|
| 343,413 |
| |
General and administrative expenses |
| 4,529,744 |
|
|
| 1,213,080 |
|
| 7,764,824 |
|
|
| 2,018,612 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total operating expenses |
| 4,745,292 |
|
|
| 1,471,981 |
|
| 8,519,504 |
|
|
| 2,362,025 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(Loss) income from operations |
| (2,888,948) |
|
|
| 7,173,861 |
|
| 5,987,901 |
|
|
| 15,099,261 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Other income (expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Interest income |
| 781,941 |
|
|
| 44,123 |
|
| 1,688,885 |
|
|
| 62,355 |
| |
Interest expense |
| (2,638,734) |
|
|
| (1,634,060) |
|
| (5,835,364) |
|
|
| (2,725,817) |
| |
Foreign exchange gain (loss), net |
| 3,200,356 |
|
|
| - |
|
| 2,052,713 |
|
|
| 293,028 |
| |
Liquidated damages expense |
| (1,300,730) |
|
|
|
|
|
| (1,300,730) |
|
|
|
|
| |
Non-operating income (expenses) |
| 1,689,404 |
|
|
| 118,802 |
|
| 3,716,178 |
|
|
| (283,429) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total other income (expenses) |
| 1,732,237 |
|
|
| (1,471,135) |
|
| 321,682 |
|
|
| (2,653,863) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(Loss) income before income taxes |
| (1,156,711) |
|
|
| 5,702,726 |
|
| 6,309,583 |
|
|
| 12,445,398 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Income tax expense |
| 665,828 |
|
|
| 1,504,063 |
|
| 2,917,979 |
|
|
| 3,191,577 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net income (loss) attributable to Keyuan |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Petrochemicals Inc. stockholders |
| (1,822,539) |
|
|
| 4,198,663 |
|
| 3,391,604 |
|
|
| 9,253,821 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Dividends to Series A convertible |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Preferred stockholders |
| - |
|
|
| 288,497 |
|
| - |
|
|
| 288,497 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Dividends to Series B convertible |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
preferred stockholders |
| 306,247 |
|
|
| - |
|
| 602,507 |
|
|
| - |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net (loss) income attributable to Keyuan |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Petrochemicals Inc. common stockholders | $ | (2,128,786) |
|
| $ | 3,910,166 |
| $ | 2,789,097 |
|
| $ | 8,965,324 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net (loss) income attributable to Keyuan |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Petrochemicals Inc. stockholders | $ | (1,822,539) |
|
| $ | 4,198,663 |
| $ | 3,391,604 |
|
| $ | 9,253,821 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Foreign currency translation adjustment |
| 617,550 |
|
|
| 192,224 |
|
| 1,174,874 |
|
|
| 193,948 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Comprehensive (loss) income | $ | (1,204,989) |
|
| $ | 4,390,887 |
| $ | 4,566,478 |
|
| $ | 9,447,769 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(Loss)earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Attributable to common stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
- Basic | $ | (0.04) |
|
| $ | 0.08 |
| $ | 0.05 |
|
| $ | 0.18 |
| |
- Diluted | $ | (0.04) |
|
| $ | 0.08 |
| $ | 0.05 |
|
| $ | 0.18 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Weighted average number of shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
- Basic |
| 57,579,239 |
|
|
| 50,045,451 |
|
| 57,578,896 |
|
|
| 48,858,321 |
| |
- Diluted |
| 57,579,239 |
|
|
| 54,930,660 |
|
| 63,836,892 |
|
|
| 51,314,420 |
| |
KEYUAN PETROCHEMICALS, INC. AND SUBSIDIARIES
| ||||||||
| Six Months Ended June 30, | |||||||
| 2011 |
| 2010 | |||||
|
|
|
| |||||
Cash flows from operating activities: |
|
|
| |||||
Net income | $ | 3,391,604 |
| $ | 9,253,821 | |||
Adjustments to reconcile net income to net cash |
|
|
|
|
| |||
provided by (used in) operating activities: |
|
|
|
|
| |||
Loss on disposal of property, plant and equipment |
| 3,504 |
|
| - | |||
Depreciation |
| 4,671,566 |
|
| 4,071,010 | |||
Amortization |
| 51,675 |
|
| 49,508 | |||
Land use rights amortization |
| 217,999 |
|
| 84,236 | |||
Deferred income tax expense |
| - |
|
| 3,191,577 | |||
Share-based compensation expense |
| 1,285,185 |
|
| 124,824 | |||
Changes in operating assets and liabilities: |
|
|
|
|
| |||
Bills receivable |
| 5,665,046 |
|
| (9,895,257) | |||
Inventories |
| ( 14,517,420) |
|
| (34,628,566) | |||
Prepayments to suppliers |
| 11,118,823 |
|
| (6,190,211) | |||
Consumption tax refund receivable |
| 5,455,515 |
|
| (11,182,419) | |||
Other current assets |
| (23 ,036,081) |
|
| 1,175,434 | |||
Accounts payable |
| 44,000,832 |
|
| 57,283,692 | |||
Advances (to) from customers |
| 4,320,196 |
|
| (3,078,476) | |||
Income taxes payable |
| (9,427,659) |
|
| - | |||
Accrued expenses and other payables |
| 1,500,872 |
|
| 19,826 | |||
|
|
|
|
|
| |||
Net cash provided by operating activities |
| 34,701,757 |
|
| 10,278,999 | |||
|
|
|
|
|
| |||
Cash flows from investing activities: |
|
|
|
|
| |||
Proceeds from disposal of property, plant and equipment |
| 10,512 |
|
| - | |||
Purchase of property, plant and equipment, |
| (11,574,245) |
|
| (17,084,658) | |||
|
|
|
|
|
| |||
|
|
|
|
|
| |||
Net cash used in investing activities |
| (11 ,563,733) |
|
| (17,084,658) | |||
|
|
|
|
|
| |||
Cash flows from financing activities: |
|
|
|
|
| |||
Pledged bank deposits used for bank borrowings |
| (52,211,458) |
|
| (27,655,715) | |||
Proceeds from short-term bank borrowings |
| 74,477,809 |
|
| 59,923,457 | |||
Repayment of short-term bank borrowings |
| (45,167,450) |
|
| (59,190,007) | |||
Proceeds from bills payable |
| 51,215,295 |
|
| 18,923,010 | |||
Repayment of bills payable |
| ( 60,784,670) |
|
| (13,718,199) | |||
Repayments of long-term bank borrowings |
| (13,014,350) |
|
| (1,466,900) | |||
Short-term financing from related parties |
| 13,144,234 |
|
| 4,400,700 | |||
Short-term financing to related parties |
| (13,144,234) |
|
| (4,400,700) | |||
Repayment to Ningbo Litong |
| (95,094) |
|
| (953,485) | |||
Repayments to unrelated parties |
| - |
|
| (733,450) | |||
Proceeds from warrant exercises |
| 7,332 |
|
| 23,132,089 | |||
Dividends paid |
| (1,396,964) |
|
| - | |||
|
|
|
|
|
| |||
Net cash used in financing activities |
| (46,969,550) |
|
| (1,739,200) | |||
|
|
|
|
|
| |||
Effect of foreign currency exchange rate changes on cash |
| 278,295 |
|
| 36,879 | |||
|
|
|
|
|
| |||
Net decrease in cash |
| (23,553,231) |
|
| (8,507,980) | |||
|
|
|
|
|
| |||
Cash at beginning of the period |
| 29,336,241 |
|
| 14,030,655 | |||
|
|
|
|
|
| |||
Cash at end of the period | $ | 5,783,010 |
| $ | 5,522,675 | |||
|
|
|
|
|
| |||
Supplemental disclosure of cash flow information: |
|
|
|
|
| |||
Income taxes paid | $ | 12,345,638 |
| $ | - | |||
Interest paid, net of interest capitalized |
| 5,835,363 |
|
| 2,725,817 | |||
Dividends accrued |
| - |
|
| - | |||
Non-cash financing activities: |
|
|
|
|
| |||
Payable for purchase of property, plant and equipment |
| 24,433,051 |
|
| (14,864,749) | |||
