IT Tech Packaging, Inc. Announces third Quarter 2023 Unaudited Financial Results
BAODING, China, Nov. 10, 2023 /PRNewswire/ -- IT Tech Packaging, Inc. (NYSE American: ITP) ("IT Tech Packaging" or the "Company"), a leading manufacturer and distributor of diversified paper products in North China, today announced its unaudited financial results for the nine and three months ended September 30, 2023.
Mr. Zhenyong Liu, Chairman and Chief Executive Officer of the Company, commented, "For the first nine months of 2023, the Company realized a total revenue of $65.58 million with a net loss of $5.96 million, slightly falling from the same period of last year. Looking forward, we can see opportunities and challenges coexist, and the long-term positive fundamentals remain unchanged in the uncertain business environment. We believe with the increased policy support for the private economy, the domestic demand and consumption will accelerate further and industrial economy will continue improving. We will make our efforts for a reasonable profit with measures to balance the production and sales, optimize overall products, develop new customers and increase efficiency with a decreased cost."
Third Quarter 2023 Unaudited Financial Results For the Three Months Ended September 30,
($ millions)
2023
2022
% Change
Revenues
15.77
31.71
-50.26 %
Regular Corrugating Medium Paper ("CMP")*
11.95
26.06
-54.14 %
Light-Weight CMP**
3.47
5.30
-34.49 %
Offset Printing Paper
0.07
-
-
Tissue Paper Products
0.26
0.29
-9.91 %
Face Masks
0.02
0.06
-73.28 %
Gross profit (loss)
(0.15)
2.78
-105.50 %
Gross profit (loss) margin
-0.97 %
8.78 %
-9.75pp***
Regular Corrugating Medium Paper ("CMP")*
7.01 %
10.91 %
-3.90pp****
Light-Weight CMP**
-7.47 %
12.84 %
-20.31pp****
Offset Printing Paper
7.53 %
-
7.53pp****
Tissue Paper Products***
-278.10 %
-258.46 %
-19.64pp****
Face Masks
-15.75 %
29.62 %
-45.37pp****
Operating income（loss）
(2.48)
(0.59)
-323.29 %
Net income (loss)
(1.98)
(1.89)
-4.67 %
EBITDA
1.69
2.43
-30.45 %
Basic and Diluted earnings (loss) per share
(0.20)
(0.19)
-5.26 %
* Products from PM6
** Products from PM1
*** Products from PM8 and PM9
**** pp represents percentage points
· Revenue decreased by 50.26% to approximately $15.77 million, This was mainly due to the decrease of sales volume of corrugating medium paper ("CMP") and decrease of average selling prices of CMP and tissue paper products. Gross loss increased by 105.50% to approximately $0.15 million. Total gross loss margin decreased by 9.75 percentage point to 0.97%.
· Loss from operations was approximately $2.48 million, compared to approximately $0.59 million for the same period of last year.
· Net loss was approximately $1.98 million, or loss per share of $0.20, compared to net loss of approximately $1.89 million, or loss per share of $0.19, for the same period of last year.
· Earnings before interest, taxes, depreciation and amortization ("EBITDA") was approximately $1.69million, compared to$2.43 million for the same period of last year.
Revenue
For the third quarter of 2023, total revenue decreased by 50.26%, to approximately $15.77 million from approximately $31.71 million for the same period of last year. This was mainly due to the decrease of sales volume of corrugating medium paper ("CMP") and decrease of average selling prices of CMP and tissue paper products.
The following table summarizes revenue, volume and ASP by product for the third quarter of 2023 and 2022, respectively: *For the Three Months Ended September 30,* *2023*
*2022* *Revenue
($'000)*
*Volume
(tonne)*
*ASP
($/tonne)*
*Revenue
($'000)*
*Volume
(tonne)*
*ASP
($/tonne)*
Regular CMP
11,954
34,186
350
26,063
59,848
435
Light-Weight CMP
3,470
10,210
340
5,296
12,507
423
Offset Printing Paper
69
170
407
-
-
-
Tissue Paper Products
264
241
1,096
293
260
1,128
* Total*
*15,757*
*44,807*
*352*
*31,652*
*72,615*
*436* *Revenue
($'000)*
*Volume
(thousand
pieces)*
*ASP
($/thousand
pieces)*
*Revenue
($'000)*
*Volume
(thousand
pieces)*
*ASP
($/thousand
pieces)*
Face Masks
15
507
30
57
1,282
44
Revenue from CMP, including both regular CMP and light-Weight CMP, decreased by 50.82%, to approximately $15.42 million and accounted for 97.79% of total revenue for the third quarter of 2023, compared to approximately $31.36 million, or 98.89% of total revenue for the same period of last year. The Company sold 44,396tonnes of CMP at an ASP of $347/tonne in the third quarter of 2023, compared to 72,355 tonnes at an ASP of $433/tonne in the same period of last year.
Of the total CMP sales, revenue from regular CMPdecreased by 54.14%, to approximately $11.95million for the third quarter of 2023, compared to revenue of approximately $26.06 million for the same period of last year. The Company sold 34,186tonnesof regular CMP at an ASP of $350/tonne during the third quarter of 2023, compared to 59,848 tonnes at an ASP of $435/tonne for the same period of last year. Revenue from light-weight CMP decreased by 34.49%, to approximately $3.47 million for the third quarter of 2023, compared to revenue of approximately $5.30 million for the same period of last year. The Company sold 10,210 tonnes of light-weight CMP at an ASP of $340/tonne for the third quarter of 2023, compared to12,507 tonnes at an ASP of $423/tonne for the same period of last year.
The Company sold 170tonnes of offset printing paper at an ASP of $407/tonne in the third quarter of 2023. Revenue from offset printing paper was $nil for the third quarter of 2022.
Revenue from tissue paper products decreased by 9.91%, to approximately $0.26 million for the third quarter of 2023, from approximately $0.29 million for the same period of last year. The Company sold 241 tonnes of tissue paper products at an ASP of $1,096/tonne for the third quarter of 2023, compared to 260tonnes at an ASP of $1,128/tonne for the same period of last year.
Revenue from face masks decreased by 73.28%, to approximately $0.02 million for the third quarter of 2023, from $0.06 million for the same period of last year. The Company sold 507 thousand pieces of face masks for the third quarter of 2023, compared to 1,282 thousand pieces of face masks for the same period of last year.
Gross Profit and Gross Margin
Total cost of sales decreased by 44.95%, to approximately $15.92 million for the third quarter of 2023 from approximately $28.93 million for the same period of last year. This was mainly due to the decrease in sales quantity and the decrease in the unit material costs of CMP. Costs of sales per tonne for regular CMP, light-weight CMP, offset printing paper, and tissue paper products were $325, $365,$377 and $4,143, respectively, for the third quarter of 2023, compared to $388, $369,$nil and $4,042 respectively, for the same period of last year.
Total gross loss was approximately $0.15 million for the third quarter of 2023, compare to the gross profit of approximately $2.78 million for the same period of last year as a result of factors described above. Overall gross loss margin was 0.97% for the third quarter of 2023, compared to gross profit margin of 8.78% for the same period of last year. Gross profit(loss) margins for regular CMP, light-weight CMP, offset printing paper, tissue paper products and face mask products were 7.01%, -7.47%, 7.53%, -278.10% and -15.75%, respectively, for the third quarter of 2023, compared to 10.91%, 12.84%, nil%, -258.46% and 29.62%, respectively, for the same period of last year.
Selling, General and Administrative Expenses
Selling, general and administrative expenses ("SG&A") decreased by 30.73%, to approximately $2.33 million for the third quarter of 2023 from approximately $3.37 million for the same period of last year.
Loss from Operations
Loss from operations was approximately $2.48 million for the third quarter of 2023, a decrease of 323.29%, from loss from operations of approximately $0.59 million for the same period of last year. Operating loss margin was 15.75% for the third quarter of 2023, compared to operating loss margin of 1.85% for the same period of last year.
Net Loss
Net loss was approximately $1.98 million, or loss per share of $0.20, for the third quarter of 2023, compared to net loss of approximately $1.89 million, or loss per share of $0.19, for the same period of last year.
EBITDA
EBITDA was approximately $1.69 million for the third quarter of 2023, compared to approximately $2.43 million for the same period of last year.
Note 1: Non-GAAP Financial Measures
In addition to our U.S. GAAP results, this press release includes a discussion of EBITDA, a non-GAAP financial measure as defined by the Securities and Exchange Commission ("SEC"). The Company defines EBITDA as net income before interest, income taxes, depreciation and amortization. EBITDA is a key measure used by management to evaluate our results and make strategic decisions. Management believes this measure is useful to investors because it is an indicator of operational performance. Because not all companies use identical calculations, the Company's presentation of EBITDA may not be comparable to similarly titled measures of other companies, and should not be viewed as an alternative to measures of financial performance or changes in cash flows calculated in accordance with the U.S. GAAP.
Reconciliation of Net Income to EBITDA
(Amounts expressed in US$)
* For the Three Months Ended September 30,*
($ millions)
*2023*
*2022*
Net loss
-1.98
-1.89
Add: Income tax
0.00
0.43
Net interest expense
0.25
0.26
Depreciation and amortization
3.42
3.63
EBITDA
1.69
*2.43*
*Nine Months Ended September 30, 2023 Unaudited Financial Results*
*For the Nine Months Ended September 30,*
($ millions)
*2023*
*2022*
*% Change*
Revenues
65.58
78.98
-16.96 %
Regular Corrugating Medium Paper ("CMP")*
50.35
65.02
-22.55 %
Light-Weight CMP**
11.07
12.66
-12.53 %
Offset Printing Paper
3.23
-
-
Tissue Paper Products
0.83
1.10
-24.62 %
Face Masks
0.10
0.20
-52.71 %
Gross profit
0.75
3.73
-79.89 %
Gross profit (loss) margin
1.14 %
4.72 %
-3.58 pp****
Regular Corrugating Medium Paper ("CMP")*
5.26 %
7.15 %
-1.89 pp****
Light-Weight CMP**
1.68 %
9.17 %
-7.49 pp****
Offset Printing Paper
2.53 %
-
2.53pp****
Tissue Paper Products***
-258.64 %
-193.65 %
-64.99 pp****
Face Masks
-9.26 %
25.73 %
-34.99****
Operating loss
-5.78
-4.81
-20.00 %
Net loss
-5.96
-4.66
-27.85 %
EBITDA
5.73
7.19
-20.31 %
Basic and Diluted loss per share
-0.59
-0.47
-25.53 %
* Products from PM6
** Products from PM1
*** Products from PM8 and PM9
**** pp represents percentage points
Revenue
For the nine months ended September 30, 2023, total revenue decreased by 16.96%, to approximately $65.58 million from approximately $78.98 million for the same period of last year. This was mainly due to the decrease in ASP of CMP.
The following table summarizes revenue, volume and ASP by product for the nine months ended September 30, 2023 and 2022, respectively: *For the Nine Months EndedSeptember30,*
*2023*
*2022*
*Revenue
($'000)*
*Volume
(tonne)*
*ASP
($/tonne)*
*Revenue
($'000)*
*Volume
(tonne)*
*ASP
($/tonne)*
Regular CMP
50,353
135,912
370
65,015
139,036
468
Light-Weight CMP
11,074
31,106
356
12,660
27,990
452
Offset Printing Paper
3,225
5,573
579
-
-
-
Tissue Paper Products
831
726
1,145
1,103
1,040
1,061
Total
65,483
173,317
378
*78,778*
*168,066*
*469* *Revenue
($'000)*
*Volume
(thousand
pieces)*
*ASP
($/thousand
pieces)*
*Revenue
($'000)*
*Volume
(thousand
pieces)*
*ASP
($/thousand
pieces)*
Face Masks
95
3,023
31
201
4,295
47
Revenue from CMP, including both regular CMP and light-Weight CMP, decreased by 20.92%, to approximately $61.43 million and accounted for 93.66% of total revenue for nine months ended September 30, 2023, compared to approximately $77.68 million, or 98.35% of total revenue for the same period of last year. The Company sold 167,018tonnes of CMP at an ASP of $368/tonne in nine months ended September 30, 2023, compared to 167,026 tonnes at an ASP of $465/tonne in the same period of last year.
Of the total CMP sales, revenue from regular CMP decreased by 22.55%, to approximately $50.35 million for nine months ended September 30, 2023, compared to revenue of approximately $65.02 million for the same period of last year. The Company sold 135,912tonnesof regular CMP at an ASP of $370/tonne during the nine months ended September 30, 2023, compared to 139,036 tonnes at an ASP of $468/tonne for the same period of last year. Revenue from light-weight CMP decreased by 12.53%, to approximately $11.07 million for the nine months ended September 30, 2023, compared to revenue of approximately $12.66 million for the same period of last year. The Company sold 31,106 tonnes of light-weight CMP at an ASP of $356/tonne for the nine months ended September 30, 2023, compared to 27,990 tonnes at an ASP of $452/tonne for the same period of last year.
Revenue from offset printing paper was $3.22 million for the nine months ended September 30, 2023. The Company sold 5,573tonnes of offset printing paper at an ASP of $579/tonne in the nine months ended September 30, 2023. Revenue from offset printing paper was $nil for the nine months ended September 30, 2022.
Revenue from tissue paper products decreased by 24.62%, to approximately $0.83million for the nine months ended September 30, 2023, from approximately $1.10 million for the same period of last year. The Company sold 726 tonnes of tissue paper products at an ASP of $1,145/tonne for the nine months ended September 30, 2023, compared to 1,040tonnes at an ASP of $1,061/tonne for the same period of last year.
Revenue from face masks decreased by 52.71%, to approximately $0.10 million for the nine months ended September 30, 2023, from $0.20 million for the same period of last year. The Company sold 3,023 thousand pieces of face masks for the nine months ended September 30, 2023, compared to 4,295 thousand pieces of face masks for the same period of last year.
Gross Profit and Gross Margin
Total cost of sales decreased by 13.85%, to approximately $64.83 million for the nine months ended September 30, 2023 from approximately $75.25 million for the same period of last year. This was mainly due to the decrease of material costs of CMP. Costs of sales per tonne for regular CMP, light-weight CMP, offset printing paper, and tissue paper products were $351, $350, $564 and $4,107, respectively, for the nine months ended September 30, 2023, compared to $434, $411,$nil and $3,114, respectively, for the same period of last year.
Total gross profit was approximately $0.75 million for the nine months ended September 30, 2023, compare to the gross profit of approximately $3.73 million for the same period of last year as a result of factors described above. Overall gross margin was 1.14% for the nine months ended September 30, 2023, compared to 4.72% for the same period of last year. Gross profit(loss) margins for regular CMP, light-weight CMP, offset printing paper, tissue paper products and face mask products were 5.26%, 1.68%, 2.53%, -258.64% and -9.26%, respectively, for the nine months ended September 30, 2023, compared to 7.15%, 9.17%, nil%, -193.65% and 25.73%, respectively, for the same period of last year.
Selling, General and Administrative Expenses
Selling, general and administrative expenses ("SG&A") decreased by 27.96%, to approximately $6.15 million for the nine months ended September 30, 2023 from approximately $8.54 million for the same period of last year.
Loss from Operations
Loss from operations was approximately $5.78 million for the nine months ended September 30, 2023, a decrease of 20.00%, from loss from operations of approximately $4.81 million for the same period of last year. Operating loss margin was 8.81% for the nine months ended September 30, 2023, compared to operating loss margin of 6.09% for the same period of last year.
Net Loss
Net loss was approximately $5.96 million, or loss per share of $0.59, for the nine months ended September 30, 2023, compared to net loss of approximately $4.66 million, or loss per share of $0.47, for the same period of last year.
EBITDA
EBITDA was approximately $5.73 million for the nine months ended September 30, 2023, compared to approximately $7.19 million for the same period of last year.
Note 1: Non-GAAP Financial Measures
In addition to our U.S. GAAP results, this press release includes a discussion of EBITDA, a non-GAAP financial measure as defined by the Securities and Exchange Commission ("SEC"). The Company defines EBITDA as net income before interest, income taxes, depreciation and amortization. EBITDA is a key measure used by management to evaluate our results and make strategic decisions. Management believes this measure is useful to investors because it is an indicator of operational performance. Because not all companies use identical calculations, the Company's presentation of EBITDA may not be comparable to similarly titled measures of other companies, and should not be viewed as an alternative to measures of financial performance or changes in cash flows calculated in accordance with the U.S. GAAP.
Reconciliation of Net Income to EBITDA
(Amounts expressed in US$)
For the Nine Months Ended September 30,
($ millions)
2023
2022
Net loss
-5.96
-4.66
Add: Income tax
0.35
-0.16
Net interest expense
0.77
0.79
Depreciation and amortization
10.57
11.22
EBITDA
5.73
7.19
Cash, Liquidity and Financial Position
As of September 30, 2023, the Company had cash and bank balances, short-term debt (including bank loans, current portion of long-term loans from credit union and related party loans), and long-term debt (including related party loans) of approximately $9.44million, $6.65million and $6.56 million, respectively, compared to approximately$9.52million, $11.16million and $4.20 million, respectively, as of December 31, 2022.
Net accounts receivable was approximately $2.79 million as of September 30, 2023, compared to $nil as of December 31, 2022. Net inventory was approximately $5.36 million as of September 30, 2023, compared to approximately $2.87 million as of December 31, 2022. As of September 30, 2023, the Company had current assets of approximately $41.06 million and current liabilities of approximately$12.02million, resulting in a working capital of approximately $29.04 million. This was compared to current assets of approximately $47.17 million and current liabilities of approximately $17.64 million, resulting in a working capital of approximately $29.53 million as of December 31, 2022.
Net cash provided by operating activities was approximately $7.50million for the nine months ended September 30, 2023, compared to approximately $7.43 million for the same period of last year. Net cash used in investing activities was approximately $9.21 million for the nine months ended September 30, 2023, compared to approximately $8.19 million for the same period of last year. Net cash provided by financing activities was approximately $2.00 million for the nine months ended September 30, 2023, compared to approximately $6.84million for the same period of last year.
About IT Tech Packaging, Inc.
Founded in 1996, IT Tech Packaging, Inc. is a leading manufacturer and distributor of diversified paper products and single-use face masks in North China. Using recycled paper as its primary raw material (with the exception of its tissue paper products), ITP produces and distributes three categories of paper products: corrugating medium paper, offset printing paper and tissue paper products. With production based in Baoding and Xingtai in North China's Hebei Province, ITP is located strategically close to the Beijing and Tianjin region, home to a growing base of industrial and manufacturing activities and one of the largest markets for paper products consumption in the country. ITP has been listed on the NYSE American since December 2009. For more information, please visit: http://www.itpackaging.cn/.
Forward-looking Statement
This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements give our current expectations, opinion, belief or forecasts of future events and performance. A statement identified by the use of forward-looking words including "will,""may,""expects,""projects,""anticipates,""plans,""believes,""estimate,""should," and certain of the other foregoing statements may be deemed forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including market and other conditions. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC. Investors and security holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov. The Company undertakes no obligation to update any such forward-looking statements after the date hereof to conform to actual results or changes in expectations, except as required by law.
For more information, please contact:
Email: ir@itpackaging.cn
Tel: +86 312 8698215
*IT TECH PACKAGING, INC.*
*CONDENSED CONSOLIDATED BALANCE SHEETS*
*AS OF SEPTEMBER 30, 2023 AND DECEMBER 31, 2022*
*(unaudited)*
*September 30,*
*December 31,*
*2023*
*2022*
*ASSETS*
Current Assets
Cash and bank balances
$
9,437,941
$
9,524,868
Restricted cash
-
-
Accounts receivable (net of allowance for doubtful accounts of $56,674 and $881,878
as of September 30, 2023 and December 31, 2022, respectively)
2,794,437
-
Inventories
5,364,777
2,872,622
Prepayments and other current assets
20,049,101
27,207,127
Due from related parties
3,414,815
7,561,858
*Total current assets*
41,061,071
47,166,475
Prepayment on property, plant and equipment
877,462
1,031,502
Operating lease right-of-use assets, net
562,612
672,722
Finance lease right-of-use assets, net
-
1,939,970
Property, plant, and equipment, net
144,603,052
151,569,898
Value-added tax recoverable
1,893,510
2,066,666
Deferred tax asset non-current
-
-
*Total Assets*
$
188,997,707
$
204,447,233
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Current Liabilities
Short-term bank loans
$
835,678
$
5,598,311
Current portion of long-term loans
4,707,652
4,835,884
Lease liability
96,746
224,497
Accounts payable
104,146
5,025
Advance from customers
18,751
-
Due to related parties
1,103,317
727,462
Accrued payroll and employee benefits
299,908
165,986
Other payables and accrued liabilities
4,858,444
5,665,558
Income taxes payable
-
417,906
*Total current liabilities*
12,024,642
17,640,629
Long-term loans
6,562,401
4,204,118
Deferred gain on sale-leaseback
-
52,314
Lease liability - non-current
465,866
579,997
Derivative liability
263
646,283
Total liabilities (including amounts of the consolidated VIE without recourse to the
Company of $12,010,014 and $16,784,878 as of September 30, 2023 and December
31, 2022, respectively)
19,053,172
23,123,341
*Commitments and Contingencies*
*Stockholders' Equity*
Common stock, 50,000,000 shares authorized, $0.001 par value per share, 10,065,920
shares issued and outstanding as of September 30, 2023 and December, 31, 2022.
10,066
10,066
Additional paid-in capital
89,172,771
89,172,771
Statutory earnings reserve
6,080,574
6,080,574
Accumulated other comprehensive loss
(12,931,871)
(7,514,540)
Retained earnings
87,612,995
93,575,021
*Total stockholders' equity*
169,944,535
181,323,892
*Total Liabilities and Stockholders' Equity*
$
188,997,707
$
204,447,233
See accompanying notes to condensed consolidated financial statements.
1
*IT TECH PACKAGING, INC.*
*CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)*
*FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022*
*(Unaudited)*
*Three Months Ended*
*Nine Months Ended*
*September 30,*
*September 30,*
*2023*
*2022*
*2023*
*2022*
Revenues
$
15,771,560
$
31,709,214
$
65,582,351
$
78,979,716
Cost of sales
(15,924,783)
(28,925,626)
(64,832,715)
(75,251,646)
*Gross (Loss) Profit*
(153,223)
2,783,588
749,636
3,728,070
Selling, general and administrative expenses
(2,334,746)
(3,370,541)
(6,153,513)
(8,541,224)
Loss on impairment of assets
3,456
-
(371,680)
-
*Loss from Operations*
(2,484,513)
(586,953)
(5,775,557)
(4,813,154)
*Other Income (Expense):*
Interest income
93,298
7,729
283,203
16,108
Interest expense
(247,818)
(256,678)
(767,668)
(786,597)
Gain on acquisition
-
(1,759)
-
30,404
Gain (Loss) on derivative liability
660,429
(617,370)
646,020
729,263
*Loss before Income Taxes*
(1,978,604)
(1,455,031)
(5,614,002)
(4,823,976)
*Provision for Income Taxes*
3,236
(432,287)
(348,024)
160,531
*Net Loss*
(1,975,368)
(1,887,318)
(5,962,026)
(4,663,445)
*Other Comprehensive Income (Loss)*
Foreign currency translation adjustment
1,143,608
(11,171,156)
(5,417,331)
(21,769,765)
*Total Comprehensive Loss*
$
(831,760)
$
(13,058,474)
$
(11,379,357)
$
(26,433,210)
*Losses Per Share:*
*Basic and Diluted Losses per Share*
$
(0.20)
$
(0.19)
$
(0.59)
$
(0.47)
*Outstanding – Basic and Diluted*
10,065,920
9,991,744
10,065,920
9,941,288
See accompanying notes to condensed consolidated financial statements.
2
*IT TECH PACKAGING, INC.*
*CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS*
*FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022*
*(Unaudited)*
*Nine Months Ended*
*September 30,*
*2023*
*2022*
*Cash Flows from Operating Activities:*
Net income
$
(5,962,026)
$
(4,663,445)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
10,573,288
11,218,254
(Gain) Loss on derivative liability
(646,020)
(729,263)
(Gain) Loss from disposal and impairment of property, plant and equipment
956,406
-
Allowance for bad debts
(815,317)
(791)
Share-based compensation and expenses
-
1,560,000
Gain on acquisition
-
(30,404)
Deferred tax
-
(1,197,630)
Changes in operating assets and liabilities:
Accounts receivable
(2,037,003)
146,250
Prepayments and other current assets
7,968,553
(422,092)
Inventories
(2,631,661)
863,170
Accounts payable
101,328
144,331
Advance from customers
19,140
-
Related parties
120,298
(149,827)
Accrued payroll and employee benefits
141,773
(42,738)
Other payables and accrued liabilities
119,132
1,000,945
Income taxes payable
(413,777)
(265,493)
*Net Cash Provided by Operating Activities*
7,494,114
7,431,267
*Cash Flows from Investing Activities:*
Purchases of property, plant and equipment
(9,211,711)
(1,681,979)
Acquisition of land
-
(6,507,431)
*Net Cash Used in Investing Activities*
(9,211,711)
(8,189,410)
*Cash Flows from Financing Activities:*
Proceeds from short term bank loans
852,988
602,319
Proceeds from long term loans
2,558,963
60,232
Repayment of bank loans
(5,549,150)
(307,182)
Payment of capital lease obligation
(130,470)
(154,212)
Loan to a related party (net)
4,264,938
6,638,923
*Net Cash Provided by Financing Activities*
1,997,269
6,840,080
*Effect of Exchange Rate Changes on Cash and Cash Equivalents*
(366,599)
(1,266,146)
*Net (Decrease) Increase in Cash and Cash Equivalents*
(86,927)
4,815,791
*Cash, Cash Equivalents and Restricted Cash - Beginning of Period*
9,524,868
11,201,612
*Cash, Cash Equivalents and Restricted Cash - End of Period*
$
9,437,941
$
16,017,403
*Supplemental Disclosure of Cash Flow Information:*
Cash paid for interest, net of capitalized interest cost
$
1,118,672
$
248,275
Cash paid for income taxes
$
761,801
$
1,287,530
Cash and bank balances
9,437,941
16,017,403
Restricted cash
-
-
*Total cash, cash equivalents and restricted cash shown in the statement of cash flows*
9,437,941
16,017,403