Highlights (Full Year 2021 Compared to Full Year 2020)
LISHUI, China, July 18, 2022 /PRNewswire/ -- Tantech Holdings Ltd (NASDAQ: TANH) ("Tantech" or the "Company"), a clean energy company, today reported its audited financial results for the twelve months ended December 31, 2021.
Mr. Wangfeng Yan, Chief Executive Officer of Tantech, said, "We achieved a record 30.7% increase in revenue to $55.3 million for the full year 2021 compared to the full year 2020. On top of that we drove a 133.0% increase in gross profit to 10.4 million, with an 8.3 percentage point expansion in gross margin. Our results are even more impressive given our team's ability to execute and remain focused in the face of the COVID-19 pandemic and closures in China, and global supply chain challenges. This impacted our profitability in 2021 and continues to in 2022 but we are working diligently with our supply chain partners to mitigate costs, secure inventory and best support demand from our customers."
Mr. Wangfeng Yan, Chief Executive Officer of Tantech, continued, "Overall, we are pleased with our continued execution on multiple fronts as we drove growth in our core business, made major progress in the transformation of our EV and specialty vehicles business, and strengthened our balance sheet. We are excited about opportunities in the specialty EV market based on customer feedback and forecasts for specialty EVs, including electric driverless street sweepers, supported by the global zero-emission vehicle trend, as well as favorable government policies and support in terms of subsidies, grants and tax rebates. Domestically, China has become the largest new energy vehicle market in the world led by the government's endorsement and its focus on petroleum resource independence, environmental protection and the 'Made in China 2025' industrial upgrade. We are already collaborating with technology companies and consultants on developing specialty EVs, and plan to invest heavily in this area in 2022."
"Finally," concluded Mr. Wangfeng Yan, Chief Executive Officer of Tantech, "the fact that we ended 2021 with a $105.8 million current asset balance with just $21.8 million in current liabilities – and our recent market capitalization was just $7.2 million – underscores the significant opportunity we believe exists to fund our growth initiatives and build value for shareholders. We are confident that we can achieve our goal by continuing to successfully execute and delivering positive proof points on our EV and speciality vehicle business transformation, while showing a further expansion in revenue and profit growth."
Financial Results For the Twelve Months Ended |
||||||||||||
($ millions, except per share data and percentages) |
2021 |
2020 |
Change |
|||||||||
Revenues |
$ |
55.3 |
$ |
42.3 |
30.7 |
% |
||||||
Gross profit |
$ |
10.4 |
$ |
4.5 |
133.0 |
% |
||||||
Gross margin |
18.9 |
% |
10.6 |
% |
8.3 |
percentage points |
||||||
Operating expenses |
$ |
18.9 |
$ |
14.8 |
27.8 |
% |
||||||
Net (loss) income attributable to common |
$ |
(8.4) |
$ |
(6.5) |
28.2 |
% |
||||||
Basic/Diluted (loss) earnings per share |
$ |
(2.01) |
$ |
(2.21) |
$ |
(9.0) |
% |
About Tantech Holdings Ltd
For the past decade, Tantech has been a highly specialized high-tech enterprise producing, researching and developing bamboo charcoal-based products with an established domestic and international sales and distribution network. Since 2017, when the Company acquired 70% of Shangchi Automobile, a vehicle manufacturer based in Zhangjiagang City, Jiangsu Province, it has manufactured and sold vehicles. The Company established two new subsidiaries, Lishui Smart New Energy Automobile Co., Ltd. and Zhejiang Shangchi New Energy Automobile Co., Ltd., in November 2020, to produce and sell street sweepers and other electric vehicles. The Company is fully ISO 90000 and ISO 14000 certified and has received a number of national, provincial and local honors, awards and certifications for its products and scientific research efforts. The Company's subsidiary, First International Commercial Factoring (Shenzhen) Co., LTD, is engaged in commercial factoring for businesses in and related to its supply chain. In May 2022, the Company established a wholly-owned subsidiary, EPakia Inc. Based in the Mid-Atlantic region of the United States, EPakia plans to develop biodegradable packaging business in the United States and other international markets. For more information, please visit: http://ir.tantech.cn.
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 the sales, 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, except as expressly required by applicable law.
Tantech Holdings Ltd and Subsidiaries |
||||||
Consolidated Balance Sheets |
||||||
(audited) |
||||||
For the Twelve Months Ended December 31, |
||||||
2021 |
2020 |
|||||
Assets |
||||||
Current Assets |
||||||
Cash and cash equivalents |
$ |
43,144,049 |
$ |
37,119,195 |
||
Restricted cash |
422,832 |
220,109 |
||||
Accounts receivable, net |
44,962,926 |
34,410,597 |
||||
Inventories, net |
1,069,698 |
671,251 |
||||
Due from related party |
10,354,051 |
- |
||||
Advances to suppliers, net |
3,420,628 |
6,854,461 |
||||
Advances to suppliers – related party |
— |
1,533,000 |
||||
Prepaid taxes |
1,609,466 |
1,046,667 |
||||
Prepaid expenses and other receivables, net |
824,239 |
45,467 |
||||
Total Current Assets |
105,807,889 |
81,900,747 |
||||
Property, plant and equipment, net |
2,103,947 |
2,477,912 |
||||
Other Assets |
||||||
Manufacturing rebate receivable |
— |
5,755,237 |
||||
Intangible assets, net |
205,971 |
664,033 |
||||
Right of use assets |
313,172 |
— |
||||
Long-term Investment |
26,096,079 |
25,497,316 |
||||
Total Other Assets |
26,615,222 |
31,916,586 |
||||
Total Assets (Note 3 at VIE) |
$ |
134,527,058 |
$ |
116,295,245 |
||
Liabilities and Stockholders' Equity |
||||||
Current Liabilities |
||||||
Short-term bank loans |
$ |
4,719,552 |
$ |
5,564,790 |
||
Bank acceptance notes payable |
— |
1,753,109 |
||||
Accounts payable |
1,563,787 |
1,543,994 |
||||
Due to related parties |
1,847,421 |
2,019,087 |
||||
Customer deposits |
3,580,622 |
3,183,088 |
||||
Taxes payable |
823,701 |
571,354 |
||||
Loan payable to third parties |
7,002,385 |
306,600 |
||||
Lease liabilities-current |
115,330 |
— |
||||
Accrued liabilities and other payables |
2,114,258 |
1,861,835 |
||||
Total Current Liabilities |
21,767,056 |
16,803,857 |
||||
Lease liabilities non-current |
223,291 |
— |
||||
Total Liabilities |
21,990,347 |
16,803,857 |
||||
Stockholders' Equity |
||||||
Common stock, $0.01 par value, 60,000,000 shares authorized, |
63,995 |
35,894 |
||||
Additional paid-in capital |
69,566,786 |
48,392,181 |
||||
Statutory reserves |
6,874,614 |
6,437,506 |
||||
Retained earnings |
36,684,794 |
45,480,031 |
||||
Accumulated other comprehensive income (loss) |
1,071,149 |
(1,493,070) |
||||
Total Stockholders' Equity attributable to the Company |
114,261,338 |
98,852,542 |
||||
Noncontrolling interest |
(1,724,627) |
638,846 |
||||
Total Stockholders' Equity |
112,536,711 |
99,491,388 |
||||
Total Liabilities and Stockholders' Equity |
$ |
134,527,058 |
$ |
116,295,245 |
||
*Retroactively restated for one-for-ten reverse split with effective date of February 25, 2022. |
||||||
* please see "Note 3: Variable Interest Entities" in the notes accompanying the audited financial statements filed on the Company's |
Tantech Holdings Ltd and Subsidiaries |
|||||||
Consolidated Statements of Comprehensive Loss |
|||||||
(audited) |
|||||||
For the Twelve Months Ended |
|||||||
December 31, |
|||||||
2021 |
2020 |
||||||
Revenues |
$ |
55,263,673 |
$ |
42,283,670 |
|||
Cost of revenues |
44,832,347 |
37,807,297 |
|||||
Gross Profit |
10,431,326 |
4,476,373 |
|||||
Operating expenses |
|||||||
Selling expenses |
221,364 |
977,201 |
|||||
General and administrative expenses |
8,831,407 |
955,210 |
|||||
Share based compensation |
1,840,000 |
— |
|||||
Impairment of goodwill and intangible asset |
— |
11,998,606 |
|||||
Research and development expenses |
8,053,400 |
890,316 |
|||||
Total operating expenses |
18,946,171 |
14,821,333 |
|||||
Loss from operations |
(8,514,845) |
(10,344,960) |
|||||
Other income (expenses) |
|||||||
Interest income |
117,735 |
50,732 |
|||||
Interest expense |
(740,400) |
(300,125) |
|||||
Rental income from related party |
117,958 |
— |
|||||
Gain from sale property to a related party |
545,874 |
— |
|||||
Other income (loss), net |
210,176 |
(39,530) |
|||||
Total other income (expenses) |
251,343 |
(288,923) |
|||||
Loss before income tax expense |
(8,263,502) |
(10,633,883) |
|||||
Income tax expense (credit) |
2,429,480 |
(611,655) |
|||||
Net loss |
(10,692,982) |
(10,022,228) |
|||||
Less: net loss attributable to noncontrolling interest |
(2,334,853) |
(3,501,808) |
|||||
Net loss attributable to common stockholders of Tantech Holdings Ltd |
$ |
(8,358,129) |
$ |
(6,520,420) |
|||
Net loss |
(10,692,982) |
(10,022,228) |
|||||
Other comprehensive income (loss): |
|||||||
Foreign currency translation adjustment |
2,535,599 |
5,892,311 |
|||||
Comprehensive loss |
(8,157,383) |
(4,129,917) |
|||||
Less: Comprehensive loss attributable to noncontrolling interest |
(2,363,473) |
(3,707,370) |
|||||
Comprehensive loss attributable to common stockholders of |
$ |
(5,793,910) |
$ |
(422,547) |
|||
Loss per share - Basic and Diluted* |
$ |
(2.01) |
$ |
(2.21) |
|||
Weighted Average Shares Outstanding - Basic and Diluted Continuing |
4,148,737 |
2,956,624 |
|||||
*Retroactively restated for one-for-ten reverse split with effective date of February 25, 2022. |
Tantech Holdings Ltd and Subsidiaries |
|||||||
Consolidated Statements of Cash Flows |
|||||||
(audited) |
|||||||
For the Twelve Months Ended, |
|||||||
December 31, |
|||||||
2021 |
2020 |
||||||
Cash flows from operating activities |
|||||||
Net loss |
$ |
(10,692,982) |
$ |
(10,022,228) |
|||
Adjustments to reconcile net income (loss) to net cash provided by operating |
|||||||
Allowance (Reversal of) for doubtful accounts - accounts receivable |
(52,789) |
(845,416) |
|||||
Reversal of allowance for doubtful accounts - advance to suppliers |
(142,799) |
(378,233) |
|||||
Write off manufacturing rebate receivable |
5,819,059 |
— |
|||||
Reversal of allowance for doubtful accounts – other receivables |
— |
(84,573) |
|||||
Share based compensation |
1,840,000 |
— |
|||||
Inventory reserve |
359,501 |
92,064 |
|||||
Impairment of goodwill and intangible asset |
— |
11,998,606 |
|||||
Decrease in deferred tax liability |
— |
(1,799,791) |
|||||
Depreciation expense |
444,462 |
436,427 |
|||||
Amortization of intangible asset |
472,140 |
441,489 |
|||||
Amortization of right of use assets |
44,964 |
— |
|||||
(Gain) Loss from disposal of property, plant and equipment |
(545,844) |
68,614 |
|||||
Issuance of common stock for service |
— |
33,812 |
|||||
Contingent liability |
535,389 |
— |
|||||
Changes in operating assets and liabilities: |
|||||||
Accounts receivable - non-related party |
(9,573,463) |
8,024,036 |
|||||
Advances to suppliers |
3,694,066 |
7,093,022 |
|||||
Advances to suppliers - related party |
1,550,000 |
(1,448,000) |
|||||
Inventory |
(737,552) |
(125,492) |
|||||
Prepaid expenses and other receivables |
(768,288) |
133,768 |
|||||
Manufacturing rebate receivable |
2,374,720 |
||||||
Accounts payable |
(16,266) |
(206,261) |
|||||
Accrued liabilities and other payables |
(323,441) |
313,552 |
|||||
Customer deposits |
318,875 |
(3,792,409) |
|||||
Collection of receivables from discontinued operations |
— |
— |
|||||
Lease liabilities |
(19,824) |
— |
|||||
Taxes payable |
(295,666) |
1,863,853 |
|||||
Net cash (used in) provided by operating activities |
(8,090,458) |
14,171,560 |
|||||
Cash flows from investing activities |
|||||||
Acquisition of property, plant and equipment |
(220,308) |
(144,806) |
|||||
Proceeds from disposal of property, plant and equipment |
748,612 |
21,842 |
|||||
Additions to intangible assets |
(4,220) |
— |
|||||
Net cash provided by (used in) investing activities |
524,084 |
(122,964) |
|||||
Cash flows from financing activities |
|||||||
Proceeds from loans from third parties |
6,917,589 |
— |
|||||
Repayment of loans from third parties |
(310,000) |
— |
|||||
Bank acceptance notes payable, net of repayment |
(1,772,550) |
1,448,667 |
|||||
Proceeds from bank loans |
7,774,800 |
9,568,384 |
|||||
Repayment of bank loans |
(8,738,900) |
(11,230,688) |
|||||
Proceeds from (repayment of) loans from related parties, net |
(10,428,196) |
98,474 |
|||||
Proceeds from issuance of common stock and warrants |
19,362,706 |
9,055,232 |
|||||
Net cash provided by) financing activities |
12,805,449 |
8,940,069 |
|||||
Effect of exchange rate changes on cash, restricted cash and cash equivalents |
988,502 |
1,704,662 |
|||||
Net increase in cash, restricted cash and cash equivalents |
6,227,577 |
24,693,327 |
|||||
Cash, restricted cash and cash equivalents, beginning of year |
37,339,304 |
12,645,977 |
|||||
Cash, restricted cash and cash equivalents, end of year |
$ |
43,566,881 |
$ |
37,339,304 |
|||
Supplemental disclosure information: |
|||||||
Income taxes paid |
$ |
2,278,134 |
$ |
436,566 |
|||
Interest paid |
$ |
265,248 |
$ |
308,690 |
|||
Supplemental non-cash activities: |
|||||||
Common shares issued for service |
$ |
1,840,000 |
$ |
33,812 |
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