Tantech Holdings Ltd. Announces Interim Financial Results for Six Months Ended June 30, 2018

LISHUI, China, Dec. 27, 2018 /PRNewswire/-- Tantech Holdings Ltd. (NASDAQ: TANH) ("Tantech" or the "Company"), a clean energy company in China, today announced its unaudited interim financial results for the six months ended June 30, 2018.

Six-Month 2018 Financial Highlights

• Total revenues increased by 28% from $12.4 million to $16 million. The increase in our total revenue was because of increased sales volume and increased number of customers and distributors.
• Gross profit increased by 31% from $2 million to approximately $2.6 million because of increased revenue. Gross margin remained consistent around 16%.
• Selling expenses increased by 65% from $0.23 million to approximately $0.38 million. The increase was mainly because of more sales events during the first six months in fiscal 2018 compared to the same period last year.
• General and administration expenses decreased by 16% from $1.8 million to approximately $1.5 million. The decrease was mainly because of lower consulting and professional fees during the first six months in fiscal 2018 compared to the same period last year.
• Research and development expenses increased by 61% from $0.08 million to approximately $0.12 million. The increase was because of more research activities during the first six months in fiscal 2018 compared to the same period last year.
• Other expenses increased by 29% from $0.07 million to approximately $0.09 million.  The increase was mainly because of higher interest expense resulting from higher borrowings balance during the first six months in fiscal 2018 compared to the same period last year.
• Net income from continuing operation attributable to shareholders was $0.13 million, compared to a net loss of $0.6 million in the same period of last year.  The increase was mainly because of the increased sales and gross profits.
• Net income from discontinued operation increased by 59% from $0.9 million to $1.46 million. The increase was mainly because of the lower costs of sales for energy products.
• Net income increased by 412% from $0.3 million to $1.59 million. The increase was mainly the results of increased sales and gross profits.

"In the first half of 2018, despite challenges in a dynamic and complex environment, we grew our revenues and net income while continuing our business transformation to raise the Company's competitiveness," said Mr. Zhengyu Wang, Chairman and Chief Executive Officer of Tantech. During the reporting period, the Company reported $16 million in revenue and $1.59 million in net income, up 28% and 412% respectively compared with the same period last year.

"During the reporting period, the Company acquired an 18% ownership interest in Libo Haokun Stone Co., which owns a small marble quarry in the southwestern province of Guizhou, for RMB 120 million (or $18.1 million). Since its establishment, Tantech has accumulated rich customer resources and built a strong brand image in home decoration and indoor air purification. With China's growing economy and rising household income, marble has become a popular choice for commercial construction and home decoration because of its endurance and elegant appearance. The investment was aimed at diversifying risks and creating more value for our shareholders."

"China's electric motor vehicle market has maintained rapid growth. According to data from government-backed China Association of Automobile Manufacturers, China produced 879,000 electric motor vehicles and sold 860,000 vehicles of such kinds in the first ten months of 2018, up 70% and 75.6% respectively from the year-earlier period. The Company has delivered orders for its electric logistics cars in the second half of the year and expects to record revenues for its electric vehicle business in the full year earnings report for fiscal 2018."

Mr. Wang finally commented, "In November, Suzhou E Motors Co., Ltd., a subsidiary of Tantech, received approval from the Ministry of Industry and Information Technology to sell a newly-developed electric van in China. The pure electric van, which has a range of 300 kilometers on a full battery charge, will go on sale soon. In the future, the Company will continue to accelerate research on new models and expand manufacturing capacity to satisfy customers' needs and realize our goal of becoming a leader in China's special purpose vehicle market."

About Tantech Holdings Ltd.

Established in 2001 and headquartered in Lishui City, Zhejiang Province, China, Tantech Holdings Ltd., together with its subsidiaries (the "Company'), is now transforming from a developer and manufacturer of bamboo-based charcoal products and Electric Double-Layer Capacitor ("EDLC") carbon business, to an innovative leader in the design, manufacture and distribution of electric vehicles. The Company has also invested in a marble business in 2018. 

On December 14, 2017, the Company entered into a sale agreement and related agreements to transfer its Electric Double-Layer Capacitor ("EDLC") carbon business (including intellectual property rights and equipment) to Zhejiang Apeikesi Energy Co., Ltd. After the completion of the transactions, the Company intends to focus its core business on the development of electric vehicle products.  Further to the sale of EDLC carbon business, during the six months ended June 30, 2018, the Company decided to dispose all the remaining assets in Tantech Energy, one of its subsidiaries. As a result, the Company separately presented Tantech Energy as discontinued operation on its condensed consolidated financial statements as of June 30, 2018.  The Company expects to complete the disposition process during the first quarter of 2019.

For more information please visit: http://www.tantechholdings.com

About Suzhou E Motors Co., Ltd.

Established in April 2011 Suzhou E Motors Co., Ltd. ("Suzhou E Motors") is an innovative leader in the design, manufacture and distribution of electric vehicles ("EVs"). With outstanding quality and reliable battery production, our system enables to effectively integrate renewable and conventional energy sources across all our product lines. Suzhou E Motors offers a wide range of EVs, including urban sanitary vehicles, electric logistics vehicles and mini tourist buses with current annual capacity of approximately 5,000 EVs. For more information please visit: http://www.emotorsbus.com.

Forward-Looking Statements

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulations, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by this cautionary statement and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

For more information please contact:

Tantech Holdings Ltd.
Ms. Ye Ren
IR Manager
+86-578-261-2869
ir@tantech.cn

View original content:http://www.prnewswire.com/news-releases/tantech-holdings-ltd-announces-interim-financial-results-for-six-months-ended-june-30-2018-300770796.html