FUZHOU, China, Nov. 9,
2020 /PRNewswire/ -- Pingtan Marine Enterprise Ltd.
(Nasdaq: PME), ("Pingtan" or the "Company"), today
announced its unaudited financial results for the third
quarter and nine months ended September 30,
2020.
Third Quarter 2020 Financial Highlights
- Revenue was $15.4 million.
- Gross profit was $1.7million.
- Net income was $0.8 million.
- Net income attributable to owners of the Company was
$0.7 million, or $0.01 per basic and diluted
share.
Management Comments
Mr. Xinrong Zhuo, Chairman and
CEO of the Company, commented: "Although the overall economic
environment in China continued to
be impacted by the COVID-19 pandemic during the third quarter, we
were really pleased with our performance for the quarter with our
revenue increasing by 38.2% and our sales volumes increasing by
69.3%, compared to the same period of the prior year. Recently, we
have made a series of positive announcements about the operations
of Pingtan, including 10 rebuilt large scaled squid jigging vessels
sailing to sea for operations and 21 fishing vessels returning to
fishing grounds after routine repair and maintenance. In addition,
we announced that the Pingtan International Marine Industry and
Logistic Park, our strategic investment project that is a key step
in our long-term growth strategy and an important link to start our
direct-to-retail business, is expected to commence operation by the
end of this year. We believe that these recent business
developments will have a positive impact on our results for the
fourth quarter and lay a good foundation for further development in
2021."
Factors Affecting Pingtan's Results
of Operations
COVID-19 pandemic
The effect of the COVID-19 pandemic is still evolving and
continues to cause major economic disruptions to businesses and
markets worldwide as the virus spreads or resurgence in certain
jurisdictions. As the first country to be engulfed in the pandemic,
China introduced strict emergency
quarantine measures and travel restrictions to contain the
pandemic, which had a big impact on China's economy in the first half of 2020.
Although it was generally believed that the pandemic was under
control in the third quarter, the PRC government continued to take
precautionary quarantine measures to avoid additional outbreaks of
the pandemic, which had an adverse impact on the economic
activities in the PRC.
The continued precautionary quarantine measures taken by the PRC
government and travel restrictions implemented by some countries
have had a significant impact on many sectors across China, which has also adversely affected the
Company's operations. To reduce the impact on its production and
operation, the Company has taken and may continue to take actions
in response as necessary, including but not limited to, continued
shifts in work system, paid leave and reducing the number of
foreign crews on its vessels. The Company's management is focused
on mitigating the effects of COVID-19 on its business operations
while protecting the health of its employees. The Company will
continue to actively monitor the situation and may take further
actions that alter its business operations as may be required by
local authorities or that the Company determines in the best
interests of its employees, customers, partners, suppliers and
other stakeholders.
Some of Pingtan's customers are fish processing plants that
export processed fish products to foreign countries. These
customers reduced or postponed their purchases from the Company in
the initial stage of the pandemic, but since the middle of the
second quarter, they have adjusted their business strategies in
relation to exportation or domestic sale. Because of the reduction
or postponement, the Company has taken and may continue to take
necessary de-stocking measures, such as lowering the selling prices
of catches and extending the term of payment for certain accounts
receivable, which may adversely affect the financial conditions and
working capital of the Company.
The situation created by the COVID-19 pandemic has led to an
unprecedented economic uncertainty globally. However, the extent of
the impact on the Company's financial condition and results of
operations is still highly uncertain and will depend on future
developments, such as the ultimate duration and scope of the
outbreak, its impact on its customers and exporters, how quickly
normal economic conditions, operations, and the demand for its
products can resume and whether the pandemic leads to recessionary
conditions in China.
While the Company anticipates that its results of operations
will continue to be impacted by the COVID-19 pandemic in the fourth
quarter of 2020, it is unable to reasonably estimate the extent of
the impact on its full-year results of operations, its liquidity or
its overall financial position.
The Company's Fishing Fleet
As of September 30, 2020, of the Company's 143 vessels, 79
were located in the international waters, 12 were
located in the Bay of Bengal in India, 13 were located in
the PRC, 37 were located in the Arafura Sea in Indonesia, 1 transport vessel was in the
modification and rebuilding stage and 1 new krill fishing vessel
was in the building stage.
Third Quarter 2020 Selected Financial Highlights
($ in millions,
except for shares and per share data)
|
Three Months ended
September 30,
|
|
2020
|
2019
|
|
(Unaudited)
|
(Unaudited)
|
Revenue
|
$15.4
|
$11.2
|
Cost of
Revenue
|
$13.8
|
$7.6
|
Gross
Profit
|
$1.7
|
$3.6
|
Gross
Margin
|
10.7%
|
32.1%
|
Net income
attributable to owners of the Company
|
$0.7
|
$4.0
|
Basic and Diluted
Weighted Average Shares Outstanding
|
79.1
|
79.1
|
EPS (in $)
|
$0.01
|
$0.05
|
Balance Sheet Highlights
($ in millions,
except for book value per share data)
|
|
|
9/30/2020
|
12/31/2019
|
(Unaudited)
|
(Audited)
|
Cash and Cash
Equivalents
|
|
|
$3.4
|
$10.1
|
Total Current
Assets
|
|
|
$115.7
|
$64.3
|
Total
Assets
|
|
|
$517.7
|
$404.1
|
Total Current
Liabilities
|
|
|
$111.3
|
$88.8
|
Total Long-term Debt,
net of current portion
|
|
|
$239.6
|
$160.2
|
Total
Liabilities
|
|
|
$350.9
|
$249.1
|
Shareholders'
Equity
|
|
|
$166.8
|
$155.1
|
Total Liabilities and
Shareholders' Equity
|
|
|
$517.7
|
$404.1
|
Book Value Per Share
(in $)
|
|
|
$2.10
|
$1.96
|
Consolidated Financial and Operating Review
Revenue
Revenue for the three months ended September 30, 2020 was $15.4 million, an increase of $4.3 million, or 38.2%, as compared to the same
period in 2019. Sales volumes in the three months ended
September 30, 2020 increased by 69.3%
to 14,697,306 kg from 8,681,467 kg in the three months ended
September 30, 2019. Average unit sale
price decreased by 18.6% in the three months ended September 30, 2020 as compared to the three
months ended September 30, 2019.
For the nine months ended September 30,
2020, the Company's revenue increased to $56.2million from $55.1
million for the nine months ended September 30, 2019. Sales volumes in the nine
months ended September 30, 2020
increased by 52.2% to 49,991,024 kg from 32,852,810 kg in the nine
months ended September 30, 2019.
Average unit sale price decreased by 33.3% in the nine months ended
September 30, 2020 as compared to the
nine months ended September 30,
2019.
For the three and nine months ended September 30, 2020, the increase in revenue as
compared to the same period in 2019 was primarily attributable to
changes in different sales mix and the increase of sales volumes as
a result of more vessels in operation. For the three and nine
months ended September 30, 2020, the
decrease in the average unit sale price as compared to the same
period in 2019 was primarily attributable to the fish species with
the highest sales volume being sold at lower selling prices. Indian
Ocean squid was our major product for the three and nine months
ended September 30, 2020.An increase
in the number of fishing vessels catching Indian Ocean squid in the
Indian Ocean fishing grounds led to an increased supply, which
negatively affected the average unit sale price. Lower unit sales
prices are expected to continue for the remainder of year 2020 due
to such increased supply as well as restrained demand from the
impact of the COVID-19 pandemic.
Gross Margin
Gross profit for the three months ended September 30, 2020 was $1.7 million, representing a change of
$1.9 million, or 53.7%, as
compared to gross profit of $3.6 million for the three months ended
September 30, 2019. The Company's
gross margin was 10.7% for the three months ended September 30, 2020, as compared to 32.1% in
the prior-year period.
Gross profit for the nine months ended September 30, 2020 was $9.6 million, representing a change of
$7.4 million, or 43.4%, as
compared to gross profit of $16.9
million for the nine months ended September 30, 2019. For the nine months ended
September 30, 2020, gross margin
decreased to 17.0% from 30.7% for the nine months ended
September 30, 2019.
The decrease in gross margin for the three and nine months ended
September 30, 2020 as compared to the
three and nine months ended September 30,
2019 was primarily due to the decrease in average unit sale
price by 18.6% and 33.3%, respectively, as well as the increase in
cost due to increased production activities. A key species of our
sales mix was Indian Ocean squid whose market price was on the low
side, and the market price of frozen seafood was affected due to
the COVID-19 pandemic, which together led to a decrease in gross
margin.
Selling Expenses
Selling expenses were $1.3 million for the three months ended
September 30, 2020, compared to
$0.7 million for the prior-year
period. The increase was primarily due to the increase in
insurance, storage fees and customs clearance charge as a result of
an increase in the number of vessels being insured, the number of
deliveries from ports to the warehouse in China and the increase in satellite
communication fees for fishing vessels.
For the nine months ended September 30,
2020, selling expenses were $3.3 million, compared to $1.9 million for the same period of
2019. The increase was primarily due to the reasons
described above.
General & Administrative Expenses
For the three months ended September 30,
2020, general and administrative expenses were
$1.6 million, compared to
$1.5 million in the prior-year
period, an increase of $0.4 million or 2.7%.
For the nine months ended September 30,
2020, general and administrative expenses were $5.2 million, compared to $6.0 million in the same period of 2019, a
decrease of $0.8 million or
14.2%.
Net Income
Net income for the three months ended September 30, 2020 was $0.8million, compared to net income of
$4.4 million in the same period
of 2019, a decrease of 82.3%.
For the nine months ended September 30,
2020, net income was $7.5 million, a slight increase of 0.8% as
compared to the prior year period.
Net Income Attributable to Owners of the Company
For the three months ended September 30, 2020, net income
attributable to owners of the Company was $0.7 million, or $0.01 per basic and diluted share, compared
to net income attributable to owners of the Company of
$4.0 million, or $0.05 per basic and diluted share, in the
same period of 2019.
For the nine months ended September 30,
2020, net income attributable to owners of the
Company was $6.8 million,
or $0.09 per basic and diluted
share, compared to net income attributable to owners of the
Company of $6.7million, or
$0.09 per basic and diluted
share, in the same period of 2019.
Conference Call Details
Pingtan will discuss the financial results for the
third quarter of 2020 during a conference call to be held on
Tuesday, November 10, 2020, at
8:30 a.m. ET.
The dial-in numbers are:
Live Participant Dial-in (Toll
Free): +1 (877)407-0310
Live Participant Dial-in (International):
+1 (201)493-6786
To listen to the live webcast, please go to
http://www.ptmarine.com and click on the conference call link
at the top of the page or go to:
https://78449.themediaframe.com/dataconf/productusers/pme/mediaframe/41973/indexl.html.
This webcast will be archived and accessible through the Company's
website for approximately 30 days following the call.
About Pingtan
Pingtan is a fishing company engaging in ocean fishing
through its subsidiary, Fujian Provincial Pingtan County Ocean
Fishing Group Co., Ltd., or Pingtan Fishing.
Business Risks and Forward-Looking Statements
This press release may contain forward-looking statements that
are subject to the safe harbors created under the Securities Act of
1933 and the Securities Exchange Act of 1934, as amended. Words
such as "estimate," "project," "forecast," "plan," "believe,"
"may," "expect," "anticipate," "intend," "planned," "potential,"
"can," "expectation" and similar expressions, or the negative of
those expressions, may identify forward-looking statements.
Although forward-looking statements reflect the good faith judgment
of our management, such statements can only be based on facts and
factors currently known by us. Consequently, forward-looking
statements are inherently subject to risks and uncertainties and
actual results and outcomes may differ materially from the results
and outcomes discussed in or anticipated by the forward-looking
statements. Risks include anticipated growth and growth strategies;
need for additional capital and the availability of financing;
locating or re-locating vessels, in foreign waters and related
license requirements; our ability to successfully manage
relationships with customers, distributors and other important
relationships; actions taken by government regulators, such as the
Indonesian moratorium; technological changes; competition; demand
for our products and services; the deterioration of general
economic conditions, whether internationally, nationally or in the
local markets in which we operate; the impact of the current
coronavirus (COVID-19) pandemic on the Company's financial
condition, business operations and liquidity; the impact of
COVID-19 on our customers and distributors; legislative or
regulatory changes that may adversely affect our business;
operational, mechanical, climatic or other unanticipated issues
that adversely affect the production capacity of the Company's
fishing vessels and their ability to generate expected annual
revenue and net income; and other risk factors contained in
Pingtan's SEC filings available at www.sec.gov, including Pingtan's
most recent Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q. Readers are cautioned not to place undue reliance on any
forward-looking statements, which speak only as of the date on
which they are made. Pingtan undertakes no obligation to update or
revise any forward-looking statements for any reason, except as
required by law.
CONTACT:
LiMing Yung (Michael)
Chief Financial Officer
Pingtan Marine Enterprise Ltd.
Tel: +86 591 87271753
michaelyung@ptmarine.net
Maggie Li
Investor Relations Manager
Pingtan Marine Enterprise Ltd.
Tel: +86 591 8727 1753
mli@ptmarine.net
INVESTOR RELATIONS
PureRock Communications Limited
PTmarine@pure-rock.com
PINGTAN MARINE
ENTERPRISE LTD. AND SUBSIDIARIES
|
UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
(IN U.S.
DOLLARS)
|
|
|
|
For the Three Months Ended
September 30,
|
|
|
For the Nine Months Ended
September 30,
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE
|
|
$
|
15,448,083
|
|
|
$
|
11,179,946
|
|
|
$
|
56,218,216
|
|
|
$
|
55,067,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF
REVENUE
|
|
|
13,787,521
|
|
|
|
7,594,714
|
|
|
|
46,641,884
|
|
|
|
38,134,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
|
1,660,562
|
|
|
|
3,585,232
|
|
|
|
9,576,332
|
|
|
|
16,932,697
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
|
|
|
1,333,927
|
|
|
|
650,786
|
|
|
|
3,282,097
|
|
|
|
1,895,991
|
|
General and
administrative
|
|
|
809,988
|
|
|
|
628,672
|
|
|
|
2,875,463
|
|
|
|
3,113,870
|
|
General and
administrative - depreciation
|
|
|
773,812
|
|
|
|
913,986
|
|
|
|
2,274,579
|
|
|
|
2,885,203
|
|
Subsidy
|
|
|
(4,440,731)
|
|
|
|
(5,288,586)
|
|
|
|
(12,778,819)
|
|
|
|
(5,288,586)
|
|
Impairment
loss
|
|
|
-
|
|
|
|
70,896
|
|
|
|
-
|
|
|
|
2,546,338
|
|
(Gain) loss on fixed
assets disposal
|
|
|
-
|
|
|
|
(1,777)
|
|
|
|
-
|
|
|
|
164,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Expenses
|
|
|
(1,523,004)
|
|
|
|
(3,026,023)
|
|
|
|
(4,346,680)
|
|
|
|
5,317,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
|
3,183,566
|
|
|
|
6,611,255
|
|
|
|
13,923,012
|
|
|
|
11,615,506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
973,265
|
|
|
|
6,131
|
|
|
|
3,335,877
|
|
|
|
26,420
|
|
Interest
expense
|
|
|
(4,036,524)
|
|
|
|
(776,569)
|
|
|
|
(9,871,949)
|
|
|
|
(2,903,816)
|
|
Foreign currency
transaction gain (loss)
|
|
|
747,678
|
|
|
|
(340,012)
|
|
|
|
402,987
|
|
|
|
(389,643)
|
|
Gain (loss) from cost
method investment
|
|
|
764
|
|
|
|
(6,766)
|
|
|
|
133,517
|
|
|
|
340,885
|
|
Loss on equity method
investment
|
|
|
(82,586)
|
|
|
|
(96,129)
|
|
|
|
(351,129)
|
|
|
|
(477,972)
|
|
Other
expense
|
|
|
(4,468)
|
|
|
|
(987,517)
|
|
|
|
(34,924)
|
|
|
|
(735,359)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Expense,
net
|
|
|
(2,401,871)
|
|
|
|
(2,200,862)
|
|
|
|
(6,385,621)
|
|
|
|
(4,139,485)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
|
781,695
|
|
|
|
4,410,393
|
|
|
|
7,537,391
|
|
|
|
7,476,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
TAXES
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
$
|
781,695
|
|
|
$
|
4,410,393
|
|
|
$
|
7,537,391
|
|
|
$
|
7,476,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LESS: NET INCOME
ATTRIBUTABLE TO THE NON-CONTROLLING INTEREST
|
|
|
92,511
|
|
|
|
377,859
|
|
|
|
759,527
|
|
|
|
751,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
ATTRIBUTABLE TO OWNERS OF THE COMPANY
|
|
$
|
689,184
|
|
|
$
|
4,032,534
|
|
|
$
|
6,777,864
|
|
|
$
|
6,724,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME
(LOSS):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
781,695
|
|
|
|
4,410,393
|
|
|
|
7,537,391
|
|
|
|
7,476,021
|
|
OTHER COMPREHENSIVE
INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized foreign
currency translation gain (loss)
|
|
|
5,700,836
|
|
|
|
(4,674,763)
|
|
|
|
3,846,221
|
|
|
|
(4,842,207)
|
|
COMPREHENSIVE
INCOME (LOSS)
|
|
$
|
6,482,531
|
|
|
$
|
(264,370)
|
|
|
$
|
11,383,612
|
|
|
$
|
2,633,814
|
|
LESS: COMPREHENSIVE
INCOME ATTRIBUTABLE TO THE NON-CONTROLLING INTEREST
|
|
|
556,889
|
|
|
|
220,968
|
|
|
|
1,075,369
|
|
|
|
345,945
|
|
COMPREHENSIVE INCOME
(LOSS) ATTRIBUTABLE TO OWNERS OF THE COMPANY
|
|
$
|
5,925,642
|
|
|
$
|
(485,338)
|
|
|
$
|
10,308,243
|
|
|
$
|
2,287,869
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME PER
ORDINARY SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
0.01
|
|
|
$
|
0.05
|
|
|
$
|
0.09
|
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
ORDINARY SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
79,071,363
|
|
|
|
79,055,053
|
|
|
|
79,060,490
|
|
|
|
79,055,053
|
|
PINGTAN MARINE
ENTERPRISE LTD. AND SUBSIDIARIES
|
UNAUDITED
CONSOLIDATED BALANCE SHEETS
|
(IN U.S.
DOLLARS)
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
2020
|
|
|
2019
|
|
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
3,397,018
|
|
|
$
|
10,092,205
|
|
Restricted
cash
|
|
|
14,237,932
|
|
|
|
-
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
|
14,577,205
|
|
|
|
9,273,446
|
|
Due from related
parties
|
|
|
15,223,427
|
|
|
|
12,477,777
|
|
Inventories, net of
reserve for inventories
|
|
|
65,476,730
|
|
|
|
30,527,752
|
|
Prepaid
expenses
|
|
|
1,821,706
|
|
|
|
1,354,129
|
|
Other
receivables
|
|
|
965,499
|
|
|
|
613,384
|
|
|
|
|
|
|
|
|
|
|
Total Current
Assets
|
|
|
115,699,517
|
|
|
|
64,338,693
|
|
|
|
|
|
|
|
|
|
|
OTHER
ASSETS:
|
|
|
|
|
|
|
|
|
Cost method
investment
|
|
|
3,083,655
|
|
|
|
3,010,235
|
|
Equity method
investment
|
|
|
28,244,032
|
|
|
|
27,923,464
|
|
Prepayment for
long-term assets
|
|
|
71,380,217
|
|
|
|
49,040,338
|
|
Right-of-use
asset
|
|
|
159,529
|
|
|
|
438,254
|
|
Property, plant and
equipment, net
|
|
|
299,169,068
|
|
|
|
259,377,729
|
|
|
|
|
|
|
|
|
|
|
Total Other
Assets
|
|
|
402,036,501
|
|
|
|
339,790,020
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
517,736,018
|
|
|
$
|
404,128,713
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
3,380,426
|
|
|
$
|
7,951,766
|
|
Accounts payable -
related parties
|
|
|
1,973,428
|
|
|
|
1,707,217
|
|
Short-term bank
loans
|
|
|
50,219,527
|
|
|
|
10,034,116
|
|
Long-term bank loans
- current portion
|
|
|
42,897,018
|
|
|
|
57,122,789
|
|
Accrued liabilities
and other payables
|
|
|
12,665,762
|
|
|
|
11,428,018
|
|
Lease liability-
current liability
|
|
|
128,618
|
|
|
|
375,922
|
|
Due to related
parties
|
|
|
18,354
|
|
|
|
168,328
|
|
|
|
|
|
|
|
|
|
|
Total Current
Liabilities
|
|
|
111,283,133
|
|
|
|
88,788,156
|
|
|
|
|
|
|
|
|
|
|
OTHER
LIABILITIES:
|
|
|
|
|
|
|
|
|
Lease
liability
|
|
|
-
|
|
|
|
32,203
|
|
Long-term bank loans
- non-current portion
|
|
|
239,627,776
|
|
|
|
160,230,498
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities
|
|
|
350,910,909
|
|
|
|
249,050,857
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
|
|
|
Equity attributable
to owners of the company:
|
|
|
|
|
|
|
|
|
Ordinary shares
($0.001 par value; 125,000,000 shares authorized; 79,302,428 and
79,055,053 shares issued and
outstanding at
September 30, 2020 and December 31, 2019)
|
|
|
79,302
|
|
|
|
79,055
|
|
Additional paid-in
capital
|
|
|
82,045,993
|
|
|
|
81,682,599
|
|
Retained
earnings
|
|
|
61,064,318
|
|
|
|
54,286,454
|
|
Statutory
reserve
|
|
|
15,748,751
|
|
|
|
15,748,751
|
|
Accumulated other
comprehensive loss
|
|
|
(12,550,529)
|
|
|
|
(16,080,908)
|
|
Total equity
attributable to owners of the company
|
|
|
146,387,835
|
|
|
|
135,715,951
|
|
Non-controlling
interest
|
|
|
20,437,274
|
|
|
|
19,361,905
|
|
|
|
|
|
|
|
|
|
|
Total
Shareholders' Equity
|
|
|
166,825,109
|
|
|
|
155,077,856
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
and Shareholders' Equity
|
|
$
|
517,736,018
|
|
|
$
|
404,128,713
|
|
PINGTAN MARINE
ENTERPRISE LTD. AND SUBSIDIARIES
|
UNAUDITED CONSOLIDATED STATEMENTS OF
CASH FLOWS
|
(IN U.S.
DOLLARS)
|
|
|
|
For the Nine Months Ended
September 30,
|
|
|
|
2020
|
|
|
2019
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
Net income
|
|
$
|
7,537,391
|
|
|
$
|
7,476,021
|
|
Adjustments to
reconcile net income from operations to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
10,616,935
|
|
|
|
7,699,244
|
|
Increase in allowance
for doubtful accounts
|
|
|
245,498
|
|
|
|
13,247
|
|
Increase (decrease)
in reserve for inventories
|
|
|
1,711,666
|
|
|
|
(370,959)
|
|
Loss on equity method
investment
|
|
|
351,129
|
|
|
|
477,972
|
|
Common stock issuance
for professional fee
|
|
|
25,974
|
|
|
|
-
|
|
Loss on disposal of
fixed assets
|
|
|
-
|
|
|
|
164,375
|
|
Impairment loss of
fishing vessels
|
|
|
-
|
|
|
|
2,533,091
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(5,191,192)
|
|
|
|
4,170,551
|
|
Inventories
|
|
|
(35,027,650)
|
|
|
|
(15,713,023)
|
|
Prepaid
expenses
|
|
|
(432,033)
|
|
|
|
(332,644)
|
|
Other
receivables
|
|
|
(328,396)
|
|
|
|
114,731
|
|
Other receivables -
related party
|
|
|
-
|
|
|
|
(358,553)
|
|
Accounts
payable
|
|
|
(4,641,514)
|
|
|
|
(3,965,580)
|
|
Accounts payable -
related parties
|
|
|
218,739
|
|
|
|
(2,919,909)
|
|
Accrued liabilities
and other payables
|
|
|
1,553,556
|
|
|
|
1,552,427
|
|
Advance from
customers
|
|
|
(619,235)
|
|
|
|
839,137
|
|
Accrued liabilities
and other payables - related party
|
|
|
-
|
|
|
|
(1,290)
|
|
Due to related
parties
|
|
|
140,210
|
|
|
|
(9,432,979)
|
|
|
|
|
|
|
|
|
|
|
NET CASH USED IN
OPERATING ACTIVITIES
|
|
|
(23,838,922)
|
|
|
|
(8,054,141)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
|
(93,357,444)
|
|
|
|
(105,567,685)
|
|
Proceeds from
government subsidies for fishing vessels construction
|
|
|
28,962,913
|
|
|
|
33,128,784
|
|
|
|
|
|
|
|
|
|
|
NET CASH USED IN
INVESTING ACTIVITIES
|
|
|
(64,394,531)
|
|
|
|
(72,438,901)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceeds from
short-term bank loans
|
|
|
81,811,291
|
|
|
|
-
|
|
Repayments of
short-term bank loans
|
|
|
(42,908,020)
|
|
|
|
-
|
|
Proceeds from
long-term bank loans
|
|
|
104,640,414
|
|
|
|
163,551,743
|
|
Repayments of
long-term bank loans
|
|
|
(46,325,253)
|
|
|
|
(11,963,642)
|
|
Repayments to related
parties
|
|
|
-
|
|
|
|
(10,111,087)
|
|
Loans issued to
related parties
|
|
|
(160,070,480)
|
|
|
|
(121,838,509)
|
|
Repayments of loans
issued to related parties
|
|
|
157,692,576
|
|
|
|
80,170,667
|
|
|
|
|
|
|
|
|
|
|
NET CASH PROVIDED
BY FINANCING ACTIVITIES
|
|
|
94,840,528
|
|
|
|
99,809,172
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATE ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
|
|
935,670
|
|
|
|
(862,543)
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE IN
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
|
|
7,542,745
|
|
|
|
18,453,587
|
|
|
|
|
|
|
|
|
|
|
CASH, CASH
EQUIVALENTS AND RESTRICTED CASH - beginning of
period
|
|
|
10,092,205
|
|
|
|
1,966,855
|
|
|
|
|
|
|
|
|
|
|
CASH, CASH
EQUIVALENTS AND RESTRICTED - end of period
|
|
$
|
17,634,950
|
|
|
$
|
20,420,442
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
Cash paid
for:
|
|
|
|
|
|
|
|
|
Interest
|
|
$
|
11,012,593
|
|
|
$
|
10,382,198
|
|
Income
taxes
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION TO
AMOUNTS ON CONSOLIDATED BALANCE SHEETS:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
3,397,018
|
|
|
|
20,420,442
|
|
Restricted
cash
|
|
|
14,237,932
|
|
|
|
-
|
|
TOTAL CASH, CASH
EQUIVALENTS AND RESTRICTED CASH
|
|
$
|
17,634,950
|
|
|
$
|
20,420,442
|
|
NON-CASH INVESTING
AND FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Acquisition of
property and equipment by decreasing prepayment for long-term
assets
|
|
$
|
(20,594,592)
|
|
|
$
|
-
|
|
Property and
equipment acquired on credit as payable
|
|
$
|
|
|
|
|
22,429,610
|
|
View original
content:http://www.prnewswire.com/news-releases/pingtan-marine-enterprise-reports-financial-results-for-the-third-quarter-and-nine-months-ended-september-30-2020-301168821.html
SOURCE Pingtan Marine Enterprise Ltd.