LISHUI, China, May 1, 2017 /PRNewswire/ -- Tantech Holdings
Ltd. (NASDAQ: TANH), ("Tantech" or the "Company"), a leading
alternative energy company through the use of bamboo-based charcoal
products, today announced its financial results for its fiscal year
ended December 31, 2016.
Financial Highlights (All Figures
Approximated)
- Total revenues from the Company's following three divisions
decreased by 19%, or $11 million, to
$48 million
-
- Revenues from the Company's Consumer Products segment decreased
by 8%, or $3 million, to $40 million
- Revenues from the Company's Trading segment decreased by 85%,
or $3 million, to $600,000
- Revenues from the Company's Biofuel Energy segment decreased by
41%, or $5 million, to $7 million
- Despite the overall decline in revenues, the Company was still
able to achieve earnings of $4.2
million, or $0.19 per share
for fiscal year 2016
- Company expects increased revenue and earnings growth in 2017
and beyond driven by innovation, new business development
initiatives and more streamlined operations
Mr. Zhengyu Wang, Chairman and
CEO of Tantech said, "Tantech's overall performance in 2016 did not
meet our expectations due to a much more competitive business
environment, which contributed to unexpected disruptions in our
supply chain and lower sales of certain product lines.
However, as our business started to return to normalcy due to our
immediate steps to eradicate the supply chain risks that might
further impact our business in the future, we see a bright outlook
for both revenues and earnings growth in 2017 and beyond.
Beside our normal operation, 2016 was very important from a
strategic point of view. Perhaps most importantly, our focus on
innovation and R&D in 2016 has enabled us to transform our
business by becoming more vertically integrated and enter into new
and higher-margin markets that can benefit from our proprietary
alternative energy solutions, such as China's vast and growing specialty electronic
vehicle (EV) market. Our plan to enter into such growing markets
coupled with the strategic divestiture of non-value added
businesses that could adversely impact our earnings potential have
laid the foundation for accelerated growth going forward."
Mr. Wang continued, "Our proprietary alternative energy
solutions and new, innovative product lines and services should
enable us to become one of the major players in China's specialty EV industries. In addition
to the expansion of our product lines, Tantech is also actively
seeking to invest into new strategic alliances with companies that
can offer additional synergies and operational efficiencies,
thereby enhancing our margins as well as new revenue channels. A
prime example of such an alliance would be our proposed acquisition
of Suzhou E Motors, which is expected to be completed this
month."
Company Sees Growth for Tantech and its Shareholders
"As we announced earlier this year, I am very excited about the
numerous potential growth opportunities for Tantech in 2017 and
beyond. We spent much of 2016 planning the foundation for the
launch of a growth strategy that is designed to support Tantech's
entry into a new era of growth and expansion. These
initiatives, which can be summarized by diversification, innovation
and the streamlining of our distribution channels, are now
producing the benefits that will enable us to achieve both revenue
and earnings growth in the months and years ahead. We look
forward to updating our shareholders on our progress as we continue
to focus on our overriding goal of enhancing shareholder value,"
concluded Mr. Wang.
Full Year 2016 Financial Results
Revenues
Revenues decreased by approximately $11.2
million, or 19.0%, to approximately $47.7 million in 2016 from approximately
$58.8 million in 2015. The decrease
was attributable to the decreased sales from our biofuel energy
segment, trading segment and consumer product segment.
|
For the Twelve
Months Ended December 31,
|
|
2016
|
|
2015
|
|
Revenues
($'000)
|
|
Gross
Profit
($'000)
|
|
Gross
Margin
(%)
|
|
Revenues
($'000)
|
|
Gross
Profit
($'000)
|
|
Gross
Margin
(%)
|
Consumer
product
|
39,979
|
|
12,300
|
|
30.7%
|
|
43,235
|
|
14,616
|
|
33.8%
|
Trading
|
554
|
|
106
|
|
19.1%
|
|
3,579
|
|
116
|
|
3.2%
|
Energy
|
7,133
|
|
1,186
|
|
16.6%
|
|
12,015
|
|
2,150
|
|
17.9%
|
Total
|
47,666
|
|
13,544
|
|
28.4%
|
|
58,830
|
|
16,882
|
|
28.7%
|
In our consumer product segment, the revenue decreased to
approximately $40 million in 2016
from approximately $43.2 million in
2015. The decrease was primarily attributable to the decreased
sales of barbecue charcoal designed for domestic market and lower
sales of kitchen and bathroom cleaning products in 2016. In
particular, the revenue from combustible charcoal for domestic
market decreased by approximately $8.1
million in 2016 compared to 2015. The decrease was primarily
attributable to the temporary disruption in supply of barbecue
charcoal in the last two months of 2015. The environmental policies
in certain localities have been tightened in Daxinganling Region.
Charcoal kilns are gradually shutting down by the government. As a
result, we are no longer able to purchase from our second largest
supplier TaheXinzhongda Carbon Co. The loss of one of the main
suppliers could force us to look for alternative suppliers at
higher costs and thus increase our production costs in the coming
years. In 2016, the overall consumer products sector experienced
general slowdown due to weak economy condition in China. As a result of the increasing
E-commerce awareness and change of shopping habits among younger
generations, people are increasingly buying consumer products
online with unknown brands in order to save money. Therefore,
orders from our major customers, which are third party distributors
and retail stores, have decreased considerably, that forced us to
sell our products in supermarket instead, with a relatively lower
sales price.
In our trading segment, the revenue was approximately
$0.6 million in 2016, a decrease of
84.5% compared to approximately $3.6
million in 2015. In 2016, we dropped the trading business of
non-"Charcoal Doctor" products, since those products contributed
lower gross margin and disrupted our own branded charcoal products
sale. We suspended those sales of charcoal related products in
domestic market and increased the exports instead. Therefore, the
total sales volume of our trading segment decreased and led to the
decreased revenue of trading segment.
In our energy segment, we realized sales of approximately
$7.1 million in 2016, a decrease of
40.6% from approximately $12.0
million in 2015. The decrease in sales revenue was primarily
attributable to the decreased sales of EDLC carbon in 2016. We sold
220 tons of EDLC carbon in 2016 compared to 367 tons sold in 2015.
The average selling price of our EDLC carbon was approximately
$25,933 per ton, decreased by 16.4%
from approximately $31,028 per ton in
2015, due to competition and less demand.
Cost of revenues
Our cost of revenues decreased by approximately $7.8 million or 18.7% to approximately
$34.1 million in 2016 from
approximately $41.9 million in 2015.
As a percentage of revenues, the cost of revenue increased by 0.3%
to 71.6% in 2016 from 71.3% in 2015. The increase in cost of
revenues as a percentage of revenues in 2016 was primarily
attributable to the increased material costs of our air
purification, deodorizer and bamboo vinegar products. Cost of
revenues in purification and deodorization products section
increased by 28.9% compared to 2015.
Gross profit
Our gross profit decreased by approximately $3.3 million, or 19.8% to approximately
$13.5 million in 2016 from
approximately $16.9 million in 2015.
Gross profit margin was 28.4% in 2016, as compared to 28.7% in
2015. The decrease of 0.3 percentage points was primarily
attributable to the lower gross profit in our consumer products and
energy segment in 2016.
Selling expenses
Selling expenses decreased by approximately $109,000 to approximately $750,000 in 2016 compared to approximately
$859,000 in 2015. As a percentage of
sales, our selling expenses increased to 1.6% of revenues in 2016,
as compared to 1.5% of revenues in 2015. The decrease in selling
expenses was primarily attributable to the decreased logistic
service expenses, decreased expenses related to export and lower
labor expenses in 2016. Due to the decreasing sale and direct
export volume of our products, in 2016, logistic service expenses
as well as export expenses have decreased by approximately 39% and
31%, respectively, as compared to 2015.
General and administrative expenses
Our general and administrative expenses increased by
approximately $1.3 million or 27.4%,
to approximately $6.0 million in 2016
from approximately $4.7 million in
2015. As a percentage of revenues, general and administrative
expenses increased by 4.6% to 12.6% in 2016, compared to 8.0% in
2015. The increase was primarily attributable to the following
factors:
(a) a decrease in bad debt expenses related to our accounts
receivable of approximately $726,000
in 2016. Based on results of aging analysis performed in 2016, we
set aside approximately $547,000 as
allowance for potentially uncollectable accounts receivable
balances. Approximately $748,000 of
the accounts receivable balances that we had recorded allowances in
prior years were collected in 2016. We reversed the allowance by
the same amount and decreased bad debt expenses related to accounts
receivable of approximately $217,000.
As a result, our bad debt expenses related to accounts receivable
decreased by approximately $726,000
in 2016, compared to bad debt expenses related to accounts
receivable of approximately $973,000
in 2015.
As a percentage of accounts receivable, our reserve balance
decreased by 0.6% to 2.3% as of December 31,
2016 from 2.9% as of December 31,
2015; and
(b) an increase in bad debt expenses related to our advance to
suppliers of approximately $1.9
million in 2016. Based on results of our aging analysis and
consideration of specific information related to each individual
account, we recorded approximately $1.5
million in bad debt expenses related to our advances to
suppliers in 2016. While approximately $22,000 of advance payments that we previously
recorded allowances were either utilized by receiving delivery from
our vendors or returned to us, we reversed the allowance by the
same amount and recorded a net increase in bad debt expenses
related to our advances to suppliers of approximately $1.4 million in 2016. In addition, we write off
advance to suppliers in the amount of $0.5
million directly in 2016 As a result, our bad debt expenses
related to advances to suppliers increased by $1.9 million 2016, compared to a net decrease in
bad debt expenses related to advances to suppliers of approximately
$206,000 in 2015.
As a percentage of advances to suppliers, our reserve balance
increased to 10.1% as of December 31,
2016 from 1.9% as of December 31,
2015. The increase in reserve balance as a percentage of
advances to suppliers in 2016 was primarily attributable to the
increased bad debt expenses we recognized in 2016 as mentioned
above; and
(c) an increase in consulting expenses of approximately
$329,000, primarily due to the consulting expenses we paid
related to the acquisition of Suzhou E-motors.
Research and development expenses
Our research and development expenses decreased by approximately
$606,000 to approximately
$0.5 million in 2016 compared to
approximately $1.1 million in 2015.
The decrease was primarily attributable to the expenditure of
approximately $472,000 related to our
sponsored R&D project in 2015, and the Company has no such
project in 2016. In addition, materials used on R&D project
decreased by approximately $138,000
in 2016 compared to 2015.
Interest expenses
Our interest expenses increased by approximately $69,000, or 16.8% to approximately $481,000 in 2016, from approximately $412,000 in 2015. As the outstanding days of
short-term bank loans in 2016 are more than that in 2015, we had
more interest expenses accrued for bank loans in 2016 compared to
2015.
Government subsidy income
Our government subsidy income was approximately $53,000 in 2016 compared to approximately
$326,000 in 2015. Our government
subsidy income in 2016 and 2015 were all granted by local
governments in recognizing our achievements in different areas. All
subsidies we received in 2016 and 2015 were one-time grants and may
not occur again in the future. We cannot predict the likelihood or
amount of any future subsidies.
Other income
Other income was approximately $0.1
million and $1.1 million in
2016 and 2015, respectively. Other income was primarily related to
the consulting fee that we charged to a third party company using
our patent in its production of doors with air treatment
functionality.
Income before income taxes
Our income before income taxes was approximately $6.0 million in 2016, a decrease of approximately
$5.3 million compared to
approximately $11.3 million in 2015.
The decrease was primarily attributable to a decrease of
approximately $3.3 million in gross
profit, an increase of approximately $0.6
million in operating expense and a decrease of approximately
$1.4 million in total operating
income in 2016 compared to 2015.
Provision for income taxes
Our provision for income taxes was approximately $1.5 million in 2016, a decrease of approximately
$911,000 or 38.3% from approximately
$2.4 million in 2015. The decrease in
provision for income taxes was primarily attributable to lower
income before income taxes, which was partially offset by a higher
effective income tax rate in 2016 compared to 2015.
Net income attributable to common stockholders
Our net income attributable to common stockholders was
approximately $4.2 million in 2016, a
decrease of approximately $4.2
million from approximately $8.4
million in 2015. The decrease was attributable to the
factors described above.
Balance Sheet and Cash Flow
As of December 31, 2016, the
Company had cash and cash equivalents of $5.9 million, working capital of $49.6 million and stockholders' equity of
$80.2 million, compared to
$6.2 million, $49.7 million, and $69.6
million, respectively, at the end of 2015. Net cash provided
by operating activities was $(7)
million for the twelve months ended December 31, 2016, compared to $4.5 million for the same period of last year.
Net cash used in investing activities was $(1.9) million for the twelve months ended
December 31, 2016, compared to net
cash provided by investing activities of $(7.2) million for the same period of last year.
The decrease in net cash provided by operating activities was
primarily attributable to the increase in accounts receivables and
advances to suppliers. Net cash provided by financing
activities was $9.1 million for the
twelve months ended December 31,
2016, compared to net cash used in financing activities of
$8.8 million for the same period of
last year.
Recent Updates
On January 9, 2017,
Tantech announced that the research program led by its R&D
center that focused on techniques converting agricultural residues
into charcoal fuels, was included by the Science and Technology
Department of Zhejiang Province into its key agricultural projects
for the period from 2016 to 2018, and obtained 1.4 million yuan worth of subsidies from the
provincial department. The recognition marks another breakthrough
the company has achieved in agricultural technology research
development, especially bamboo charcoal-related
researches.
On December 8, 2016 Tantech
announced that it has successfully developed the new generation of
infrared bamboo charcoal bedding articles, which feature excellent
absorption, infrared and self-warming properties. These
capabilities have been verified by the China National Supervision
and Test Center for Eco-Product Quality, China National Supervision
and Test Center for Infrared Product Quality, and Shanghai Research
Institute of Chemical Industry Testing Center.
On April 15, 2016, Mr.
Zhengyu Wang, the Company's Chairman
and Chief Executive Officer, was elected as vice chair of The New
Energy Vehicle Alliance of Zhejiang
Province (the "Alliance"), a self-regulatory organization
comprised of representatives from leading automakers, components
and parts suppliers, governmental agencies, research institutes,
and advocacy groups in the new energy vehicle value chain in
Zhejiang Province. During the
inaugural ceremony, Mr. Wang also signed cooperation agreement with
governmental officials of Binjiang District, Hangzhou City to formally launch Tantech New
Energy Vehicle Institute, a wholly-owned subsidiary of the Company
to lead its efforts in advancing technology along the new energy
vehicle value chain.
On March 1, 2016, the Company
completed an $8.0 million private
placement of its common stock with the issuance of 1,693,000 shares
at $4.70 per share.
On January 27, 2016, the Company
entered into a framework agreement (the "Framework Agreement") to
acquire 100% equity interest in Suzhou E Motors Co., Ltd. ("Suzhou
E Motors"), a specialty electric vehicles ("EVs") manufacturer
based in Zhangjiagang City, Jiangsu
Province. Subsequently a definitive agreement was
entered by the parties on May 2,
2016. The closing of the Transaction shall be subject to the
terms and conditions set forth in a definitive agreement to be
negotiated between the Company and the shareholders of Suzhou E
Motors, including Dr. Henglong Chen and Zhangjiagang Light
Commercial Vehicles Co., Ltd. who collectively own 100% of the
equity interest in Suzhou E Motors. Dr. Henglong Chen is also the
controlling shareholder of Zhangjiagang Light Commercial Vehicles
Co., Ltd.
About Tantech Holdings Ltd.
Established in 2001 and headquartered in Lishui City,
Zhejiang Province, China, Tantech Holdings Ltd., together with
its subsidiaries, develops and manufactures bamboo-based charcoal
products in China and
internationally. It operates through three segments: Consumer
Products, Trading, and Biofuel Energy. The company produces pressed
and formed charcoal briquettes for use in grills, incense burners,
and other applications under the Algold brand. It also offers
Charcoal Doctor branded products, such as air purifiers and
humidifiers, automotive accessories for air purification,
underfloor humidity control, pillows and mattresses, wardrobe
deodorizers, mouse pads and wrist mats, refrigerator deodorants,
charcoal toilet cleaner disks, liquid charcoal cleaners, shoe
insoles, and decorative charcoal gifts. In addition, the Company
provides liquid byproduct consists of bamboo vinegar that is used
in disinfectants, detergents, lotions, specialized soaps, toilet
cleaners, and fertilizers, as well as in various agricultural
applications. Further, it engages in providing bamboo carbon for
use in EDLCs; the production of electric double-layer capacitor
carbon products; and the industrial purchase and sale of rubber.
The Company provides its products for industrial energy
applications, as well as household cooking, heating, purification,
agricultural, and cleaning uses. The company also exports its
bamboo vinegar, bamboo charcoal purification, and EDLC carbon
products. For more information about Tantech Holdings Ltd., please
visit: http://www.tantech.cn/en/index.asp
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
Tantech Holdings
Ltd and Subsidiaries
|
Consolidated
Balance Sheets
|
(In US
Dollars)
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2016
|
|
2015
|
Assets
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
5,942,842
|
|
$
|
6,273,389
|
|
|
Restricted
cash
|
|
328,254
|
|
|
-
|
|
|
Accounts
receivable, net
|
|
40,640,892
|
|
|
40,484,871
|
|
|
Inventories,
net
|
|
1,198,750
|
|
|
1,097,048
|
|
|
Advances to
suppliers, net
|
|
14,794,551
|
|
|
15,597,108
|
|
|
Prepaid
value-added taxes
|
|
680,857
|
|
|
110,173
|
|
|
Other
receivables , net
|
|
70,683
|
|
|
120,661
|
|
Total
current assets
|
|
63,656,829
|
|
|
63,683,250
|
Property,
plant and equipment, net
|
|
9,269,834
|
|
|
11,118,635
|
Other
Assets
|
|
|
|
|
|
|
|
Advances to
suppliers
|
|
8,638,260
|
|
|
-
|
|
|
Deferred tax
assets
|
|
94,153
|
|
|
-
|
|
|
Intangible
assets, net
|
|
1,788,178
|
|
|
2,102,507
|
|
|
Deposit for
asset acquisition
|
|
431,913
|
|
|
2,465,600
|
|
|
Deposit for
business acquisition
|
|
10,423,500
|
|
|
7,705,000
|
Total
Assets
|
$
|
94,302,667
|
|
$
|
87,074,992
|
Liabilities
and Equity
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
Short-term bank
loans
|
$
|
6,694,652
|
|
$
|
8,444,680
|
|
|
Bank acceptance
notes payable
|
|
1,727,652
|
|
|
-
|
|
|
Accounts
payable
|
|
1,947,558
|
|
|
3,072,368
|
|
|
Customer
deposits
|
|
799,510
|
|
|
606,029
|
|
|
Taxes
payable
|
|
720,492
|
|
|
804,270
|
|
|
Due to third
parties
|
|
846,837
|
|
|
-
|
|
|
Accrued
liabilities and other payables
|
|
1,359,897
|
|
|
1,058,160
|
|
Total
current liabilities
|
|
14,096,598
|
|
|
13,985,507
|
Stockholders' Equity
|
|
|
|
|
|
|
|
Common stock,
$0.001 par value, 50,000,000 shares authorized,
|
|
|
|
|
|
|
|
26,811,935 and
21,600,000 shares issued and 24,311,935 and 21,600,000 shares
outstanding at December 31,2016 and 2015
|
|
24,312
|
|
|
21,600
|
|
|
Additional
paid-in capital
|
|
26,603,511
|
|
|
15,134,752
|
|
|
Statutory
reserves
|
|
6,461,788
|
|
|
6,401,235
|
|
|
Retained
earnings
|
|
52,589,154
|
|
|
48,350,456
|
|
|
Accumulated
other comprehensive loss
|
|
(5,472,696)
|
|
|
(262,900)
|
|
Total
Stockholders' Equity
|
|
80,206,069
|
|
|
69,645,143
|
|
|
Noncontrolling
interest
|
|
-
|
|
|
3,444,342
|
|
Total
Equity
|
|
80,206,069
|
|
|
73,089,485
|
Total
Liabilities and Equity
|
$
|
94,302,667
|
|
$
|
87,074,992
|
|
|
|
|
|
|
|
|
|
Tantech Holdings
Ltd and Subsidiaries
|
Consolidated
Statements of Income and Comprehensive Income (Loss)
|
(In US
Dollars)
|
|
|
|
|
For the
Years Ended December 31,
|
|
|
|
|
2016
|
|
2015
|
Revenues
|
|
$
|
47,665,674
|
|
$
|
58,829,900
|
Cost of
revenues
|
|
34,121,894
|
|
|
41,947,684
|
Gross
Profit
|
|
13,543,780
|
|
|
16,882,216
|
Operating
expenses
|
|
|
|
|
|
|
Selling
expenses
|
|
750,450
|
|
|
859,200
|
|
General and
administrative expenses
|
|
6,018,486
|
|
|
4,723,707
|
|
Research and
development expenses
|
|
479,353
|
|
|
1,084,867
|
|
Total operating
expenses
|
|
7,248,289
|
|
|
6,667,774
|
Income from
operations
|
|
6,295,491
|
|
|
10,214,442
|
Other income
(expenses)
|
|
|
|
|
|
|
Interest
income
|
|
678
|
|
|
82,712
|
|
Interest
expense
|
|
(480,149)
|
|
|
(412,358)
|
|
Government
subsidy income
|
|
52,597
|
|
|
326,018
|
|
Other income,
net
|
|
106,346
|
|
|
1,093,654
|
|
Total other
income (expenses)
|
|
(320,528)
|
|
|
1,090,026
|
Income
before income taxes
|
|
5,974,963
|
|
|
11,304,468
|
Provision
for income taxes
|
|
1,367,270
|
|
|
2,377,715
|
Net
income
|
|
4,607,693
|
|
|
8,926,753
|
Less: Net
income attributable to the noncontrolling interest
|
|
(308,442)
|
|
|
(487,928)
|
Net income
attributable to common stockholders
|
$
|
4,299,251
|
|
$
|
8,438,825
|
Net
income
|
|
|
4,607,693
|
|
|
8,926,753
|
Other
comprehensive income:
|
|
|
|
|
|
|
Foreign
currency translation losses
|
|
(5,448,209)
|
|
|
(3,977,179)
|
Comprehensive income (loss)
|
|
(840,516)
|
|
|
4,949,574
|
Less:
Comprehensive income attributable to
|
|
|
|
|
|
|
|
|
noncontrolling
interest
|
|
(70,029)
|
|
|
(289,069)
|
Comprehensive income (loss) attributable to
common stockholders
|
$
|
(910,545)
|
|
$
|
4,660,505
|
Earnings Per
share -Basic and Diluted
|
$
|
0.19
|
|
$
|
0.40
|
Weighted
Average Shares Outstanding - Basic and diluted
|
|
23,019,185
|
|
|
21,240,548
|
|
|
|
|
|
|
|
|
|
|
Tantech Holdings
Ltd and Subsidiaries
|
|
Consolidated
Statements of Cash Flows
|
|
(In US
Dollars)
|
|
|
|
|
|
|
For the
Years Ended December 31,
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
Net income
|
|
|
$
4,607,693
|
|
$
8,926,753
|
|
|
Adjustments to
reconcile net income to net cash
|
|
|
|
|
|
|
|
|
provided by operating
activities:
|
|
|
|
|
|
|
|
|
Allowance for
doubtful accounts - accounts receivable
|
|
246,204
|
|
972,642
|
|
|
|
|
Allowance (recovery)
for doubtful accounts - advance to suppliers
|
|
1,899,004
|
|
(8,547)
|
|
|
|
|
Allowances for bad
debts - loan to third parties
|
|
59,742
|
|
-
|
|
|
|
|
Inventory reserve
(recovery)
|
|
(84,414)
|
|
156,775
|
|
|
|
|
Depreciation
expense
|
|
1,180,090
|
|
1,244,154
|
|
|
|
|
Decrease (increase)
in deferred tax asset
|
|
(98,473)
|
|
163,987
|
|
|
|
|
Amortization of
intangible asset
|
|
184,213
|
|
197,026
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
(3,192,557)
|
|
(212,550)
|
|
|
|
|
Advances to
suppliers
|
|
(11,438,701)
|
|
(5,762,321)
|
|
|
|
|
Inventory
|
|
|
(97,373)
|
|
20,295
|
|
|
|
|
Other
receivables
|
|
(11,192)
|
|
(49,507)
|
|
|
|
|
Accounts
payable
|
|
(965,208)
|
|
(486,409)
|
|
|
|
|
Customer
deposits
|
|
244,020
|
|
76,546
|
|
|
|
|
Taxes
payable
|
|
87,175
|
|
(1,516,651)
|
|
|
|
|
Accrued liabilities
and other payables
|
|
346,725
|
|
728,339
|
|
Net cash provided
by operating activities
|
|
(7,033,052)
|
|
4,450,532
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
|
(10,819)
|
|
(242,552)
|
|
|
|
|
Proceeds from
disposal of property, plant and equipment
|
|
-
|
|
32,940
|
|
|
|
|
Changes in deposit
for asset acquisition
|
|
1,505,770
|
|
1,085,752
|
|
|
|
|
Deposit for business
acquisition
|
|
(3,372,925)
|
|
(8,030,000)
|
|
Net cash used in
investing activities
|
|
(1,877,974)
|
|
(7,153,860)
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Changes in restricted
cash
|
|
(343,316)
|
|
3,533,200
|
|
|
|
|
Proceeds from third
party loan
|
|
885,694
|
|
-
|
|
|
|
|
Proceeds from
Bankers' acceptance notes payable
|
|
4,818,464
|
|
2,248,400
|
|
|
|
|
Repayments of
Bankers' acceptance notes payable
|
|
(3,011,540)
|
|
(9,314,800)
|
|
|
|
|
Proceeds from bank
loans
|
|
7,001,831
|
|
12,012,880
|
|
|
|
|
Repayments of bank
loans
|
|
(8,251,620)
|
|
(5,299,800)
|
|
|
|
|
Net proceeds from
stock issuance
|
|
7,957,100
|
|
5,663,122
|
|
Net cash provided
by financing activities
|
|
9,056,613
|
|
8,843,002
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(476,134)
|
|
(281,560)
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
(330,547)
|
|
5,858,114
|
|
Cash and cash
equivalents, beginning of year
|
|
6,273,389
|
|
415,275
|
|
Cash and cash
equivalents, end of year
|
$
|
5,942,842
|
$
|
6,273,389
|
|
Supplemental
disclosure information:
|
|
|
|
|
|
|
Income taxes
paid
|
$
|
696,435
|
$
|
2,892,808
|
|
|
Interest
paid
|
|
$
|
261,625
|
$
|
411,805
|
|
Supplemental
non-cash financing activity:
|
|
|
|
|
|
|
Common shares issued
for Minority interest buyback
|
$
|
2,160,142
|
$
|
-
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/tantech-holdings-ltd-announces-fiscal-year-2016-financial-results-300448867.html
SOURCE Tantech Holdings Ltd.