ChinaNet Online Holdings, Inc. ("ChinaNet" or the "Company"),
(Nasdaq:CNET), a leading B2B (business to business) Internet
technology company providing online-to-offline ("O2O") sales
channel expansion services for small and medium-sized enterprises
(SMEs) and entrepreneurial management and networking services for
entrepreneurs in the People's Republic of China, today announced
financial results for the fourth quarter and full year 2012.
Summary Financials
Fourth
Quarter 2012 Results (USD)
(Unaudited) |
|
|
Q4 2012 |
Q4 2011 |
CHANGE |
Sales |
$8.3 million |
$6.2 million |
+34% |
Gross Profit |
$4.8 million |
$3.0 million |
+60% |
Gross Margin |
57.7% |
49.0% |
+18% |
Net Income Attributable to Common
Stockholders |
$1.2 million |
-$3.9 million |
N/A |
Adjusted Net Income Attributable to
Common Stockholders |
$1.4 million(1) |
-$1.8 million(2) |
N/A |
EPS (Diluted) |
$0.06 |
-$0.19 |
N/A |
Adjusted EPS (Diluted) |
$0.06(1) |
-$0.08(2) |
N/A |
(1) Non-GAAP adjusted net income attributable to common
stockholders and EPS excludes $0.2 million non-cash charge of the
changes in fair value of the contingent consideration receivables
related to make good provisions upon acquisition of VIEs for the
three months ended December 31, 2012.
(2) Non-GAAP adjusted net income attributable to common
stockholders and EPS excludes: (1) $0.7 million non-cash gain on
deconsolidation of a subsidiary and $0.2 million of the related
deferred income tax expenses; (2) $0.1 million of non-cash charge
of the changes in fair value of the contingent consideration
receivables related to make good provisions upon acquisition of
VIEs; and (3) $2.6 million of non-cash stock compensation expenses
recognized for restricted stock and options issued to management,
directors and employees for the three month ended December 31,
2011.
Fourth Quarter 2012
Financial Results
Revenues increased by $2.1 million to $8.3 million for the three
months ended December 31, 2012 compared to the three months ended
December 31, 2011, representing a 34% increase.
Mr. Handong Cheng, Chairman and CEO of the Company, stated, "Our
strong financial results for the second half of 2012 reflects
successful execution of our long term strategy. We continued
investing in new services such as brand management and sales
channel building during the 2011 and 2012 economic downturn. Those
investments have started to not only expand our client base but
also gradually contribute to our overall revenue and profit
growth."
Fourth Quarter 2012
Revenue Breakdown by Business Unit (USD in thousands) |
|
Q4 2012 |
% |
Q4 2011 |
% |
% Change |
Internet Advertisement |
$6,013 |
73% |
$3,547 |
57% |
+70% |
TV Advertisement |
$703 |
8% |
$1,692 |
27% |
-58% |
Bank Kiosk |
$68 |
1% |
$72 |
1% |
-6% |
Brand Mgmt. & Sales Channel Building |
$1,467 |
18% |
$886 |
14% |
+66% |
Revenue from Internet advertisements for the three months ended
December 31, 2012 increased by 70% to $6.0 million compared to the
three months ended December 31, 2011, primarily due to the
additional revenues from Sou Yi Lian Mei ("SOOE"), the company
ChinaNet acquired in December 2011. Sales of brand management and
sales channel building services increased by 66% to $1.5 million,
representing 18% of total sales for the three months ended December
31, 2012. This increase was due to an increase in the average
advertising spending per customer from larger-sized clients. TV
advertising revenues fell to $0.7 million in the fourth quarter of
2012 from $1.7 million in the fourth quarter of 2011.
Gross profit for the three months ended December 31, 2012 was
$4.8 million, up 60% from $3.0 million in the same period one year
ago. Gross margin was 57.7%, an improvement from 40.1% in the third
quarter of 2012 and 49% in the fourth quarter of 2011.
Operating expenses for the three months ended December 31, 2012
were approximately $3.1 million, down substantially from $7.5
million in the comparable period in 2011. General and
administrative expenses fell by $3.5 million to $1.7 million due to
lower non-cash bad debts provision and stock compensation
expenses.
The Company had $1.7 million of operating income in the three
months ended December 31, 2012 compared to $4.5 million of
operating loss in the same period one year ago. Operating margin
was 20.6% in the fourth quarter of 2012.
Net income attributable to common stockholders for the three
months ended December 31, 2012 was $1.2 million and earnings per
share was $0.06, compared to -$3.9 million and -$0.19 for the three
months ended December 31, 2011, respectively.
Non-GAAP adjusted net income attributable to common stockholders
for the three months ended December 31, 2012 was $1.4 million and
adjusted earnings per share was $0.06, compared to -$1.8 million
and -$0.08 for the three months ended December 31, 2011,
respectively.
Full Year 2012
Results (USD) |
|
|
FY 2012 |
FY 2011 |
CHANGE |
Sales |
$46.6 million |
$28.7 million |
+62% |
Gross Profit |
$15.0 million |
$16.7 million |
-10% |
Gross Margin |
32.3% |
58.1% |
-44% |
Net Income Attributable to Common
Stockholders |
$3.0 million |
$2.6 million |
+15% |
Adjusted Net Income Attributable to
Common Stockholders |
$3.2 million(1) |
$4.5 million(2) |
-31% |
EPS (Diluted) |
$0.14 |
$0.14 |
0% |
Adjusted EPS (Diluted) |
$0.14(1) |
$0.24(2) |
-42% |
(1) Non-GAAP adjusted net income attributable to common
stockholders and EPS exclude a $0.2 million non-cash charge of the
changes in fair value of the contingent consideration receivables
for the year ended December 31, 2012.
(2) Non-GAAP adjusted net income attributable to common
stockholders and EPS excludes: (1) $0.9 million non-cash gain on
deconsolidation of subsidiaries and $0.2 million of the related
deferred income tax expenses; (2) $0.1 million non-cash charge of
the changes in fair value of the contingent consideration
receivables related to make good provisions upon acquisition of
VIEs; and (3) $2.6 million non-cash stock compensation expense
recognized for restricted stock and options issued to management,
directors and employees for the year ended December 31, 2011.
Year Ended December 31,
2012 Revenue Breakdown by Business Unit (USD in
thousands) |
|
FY 2012 |
% |
FY 2011 |
% |
% Change |
Internet Advertisement |
$21,366 |
46% |
$19,981 |
70% |
+7% |
TV Advertisement |
$20,454 |
44% |
$6,434 |
22% |
+218% |
Bank Kiosk |
$282 |
1% |
$487 |
2% |
-42% |
Brand Mgmt. & Sales Channel Building |
$4,498 |
10% |
$1,829 |
6% |
+146% |
Net revenues for the year ended December 31, 2012 increased by
62% to $46.6 million compared to $28.7 million for the year ended
December 31, 2011. Higher revenues from Internet and TV
advertisement and brand management and sales channel building
services offset lower revenues from the bank kiosk segment.
Total cost of revenues increased to $31.6 million for the year
ended December 31, 2012 from $12.0 million for the same period in
2011. The increase of total cost of revenues for the year ended
December 31, 2012 was primarily due to the significant increase in
costs associated with the TV advertising business segment.
Gross profit for the year ended December 31, 2012 was $15.0
million compared to $16.7 million in the same period a year ago.
Gross margin decreased to 32.3% from 58.1% for the same period in
2011 as a result of the significant increase in revenues from TV
advertising, which is a lower margin business. Revenues from TV
advertising accounted for approximately 44% of total revenues in
the year ended December 31, 2012 compared to 22% for 2011.
Operating expenses for the year ended December 31, 2012 were
approximately $10.5 million, representing a decrease of 22% from
$13.5 million in the comparable period in 2011. Even excluding the
absence of $1.9 million non-recurring stock compensation expenses
related to restricted stock and options granted to management and
employees in November 2011, the Company successfully reduced
expenses across the board, with year-over-year declines in general
and administrative and selling expenses. Research and development
expenses were $1.8 million for the twelve months ended December 31,
2012 compared to $2.1 million in the comparable period a year ago
due to the absence of a $0.7 million non-cash, non-recurring
R&D expense related to restricted stock and options granted to
management and employees in November 2011.
Operating income for the year ended December 31, 2012 was $4.5
million, representing an operating margin of 9.7% compared to $3.2
million and 11.0%, respectively, in the same period one year
ago.
GAAP net income attributable to common stockholders for the
fiscal year 2012 was $3.0 million and earnings per share was $0.14
compared to $2.6 million and $0.14 for the fiscal year of 2011,
respectively. Non-GAAP adjusted net income attributable to common
stockholders and earnings per share for 2012 were $3.2 million and
$0.14, respectively. The weighted average shares outstanding for
the fiscal year of 2012 and 2011 was 22.2 million shares and 18.8
million shares, respectively.
Balance Sheet and Cash Flow
The Company had $5.5 million in cash and cash equivalents as of
December 31, 2012, compared to $10.7 million as of December 31,
2011, working capital of $25.2 million, compared to $27.0 million
as of December 31, 2011, and a current ratio of 3.5 to 1 compared
4.5 to 1 as of December 31, 2011. Total shareholders' equity of
ChinaNet was $44.2 million at December 31, 2012 compared to $41.7
million at December 31, 2011.
The Company generated $5 million of cash inflows from operations
for the full year of 2012 compared to a $0.6 million of cash
outflow for the full year of 2011.
Guidance for 2013
Management anticipates to release the revenues and net income
guidance for fiscal year 2013 in May 2013.
Business Updates
ChinaNet participated as a judge and sponsor for the 2012
International Youth Innovation Games during December 2012. The
event, supported by China's Ministry of Education, signified
support of youth innovation by academia, government and private
entities.
Liansuo.com, the Company's subsidiary, signed an agreement to
help Super 8 International Limited expand its franchise outside the
U.S. Super 8 International, a subsidiary of Wyndham Worldwide, is
one of the largest hotel operators in the world with more than
2,600 hotels. Liansuo.com will help Super 8 International build a
strong brand in China through traditional and online marketing.
ChinaNet continued to build its international presence by
participating in two major international franchise exhibitions –
the Korean Chain Industry Fair in December 2012 and the Beijing
Franchise Expo in April 2013.
Conference Call |
|
Date: |
Wednesday, April 17, 2013 |
Time: |
8:30 a.m. Eastern Time |
Conference Line (U.S.): |
1-877-317-6776 |
International Dial-In: |
1-412-317-6776 |
Conference ID: |
10027127 |
Webcast: |
http://webcast.mzvaluemonitor.com/Cover.aspx?PlatformId=1071 |
A power point presentation will be available for downloading on
the date of the conference call on ChinaNet's corporate website
www.chinanet-online.com; under Investor
Relations-News/Events-Events and Presentations.
Please dial in at least 10 minutes before the call to ensure
timely participation.
A playback of the call will be available until 8:30 a.m. Eastern
Time on April 24, 2013. To listen, call 1-877-344-7529 within the
United States or 1-412-317-0088 when calling internationally.
Please use the replay pin number 10027127.
About ChinaNet Online Holdings, Inc.
ChinaNet Online Holdings, Inc., a parent company of ChinaNet
Online Media Group Ltd., incorporated in the BVI, is a leading
business to business Internet technology company focusing on
providing online-to-offline sales channel expansion service for
small and medium-sized enterprises and entrepreneurial management
and networking service for entrepreneurs in China. Founded in 2003
and based in Beijing, PRC, the Company's services include its
28.com portal to connect SME franchisors with new franchisees,
Internet advertising and marketing with other value-added
communication channels, brand management and sales channel
solutions, and cloud-computing based management tools, expected to
be officially commercialized in 2013. Website:
http://www.chinanet-online.com.
About Non-GAAP Financial Measures
To supplement the audited consolidated statement of income and
comprehensive income presented in accordance with GAAP, we are also
providing non-GAAP measures of income from operations, income
before income tax expenses, net income, net income attributable to
us, net income attributable to our common stockholders and basic
and diluted earnings per share for the year ended December 31, 2012
and 2011, which are adjusted from results based on GAAP to exclude
the non-cash gain and expenses recorded, which related to changes
in fair value of contingent consideration receivables related to
the "make-good" provisions upon acquisition of VIEs for the year
ended December 31, 2012; the gain on deconsolidation of
subsidiaries, the related deferred income tax expenses, changes in
fair value of contingent consideration receivables related to the
"make-good" provisions upon acquisition of VIEs, and non-cash
share-based compensation expenses recognized for the restricted
stock and common stock purchase options issued to our management,
directors and employees for the year ended December 31, 2011. The
non-GAAP financial measures are provided to enhance the investors'
overall understanding of our current performance in on-going core
operations as well as prospects for the future. These measures
should be considered in addition to results prepared and presented
in accordance with GAAP, but should not be considered a substitute
for or superior to GAAP results. We use both GAAP and non-GAAP
information in evaluating our operating business results internally
and therefore deemed it important to provide all of this
information to investors.
The following table presents reconciliations of our non-GAAP
financial measures to the audited consolidated statements of income
and comprehensive income for the years ended December 31, 2012 and
2011 (all amounts, except number of shares and per share data, are
presented in thousands of US dollars):
|
Year
Ended December 31, |
|
|
2012 |
2011 |
|
GAAP |
NON GAAP |
GAAP |
NON GAAP |
|
US$ |
US$ |
US$ |
US$ |
|
|
|
|
|
Gross Profit |
$15,042 |
$15,042 |
$16,704 |
$16,704 |
|
|
|
|
|
Operating expenses |
|
|
|
|
Selling expenses |
2,683 |
2,683 |
3,506 |
2,827 |
General and administrative expenses |
6,030 |
6,030 |
7,904 |
6,647 |
Research and development expenses |
1,819 |
1,819 |
2,132 |
1,461 |
|
10,532 |
10,532 |
13,542 |
|
|
|
|
|
10,935 |
|
|
|
|
|
Income from operations |
4,510 |
4,510 |
$3,162 |
|
Adjusted income from
operations |
|
|
|
$5,769 |
|
|
|
|
|
Other income
(expenses): |
|
|
|
|
Changes in fair value of contingent
consideration receivables |
(160) |
-- |
(70) |
-- |
Interest income |
186 |
186 |
13 |
13 |
Gain on deconsolidation of
subsidiaries |
-- |
-- |
925 |
-- |
Other (expenses) income |
(150) |
(150) |
5 |
5 |
|
(124) |
|
873 |
|
|
|
36 |
|
18 |
|
|
|
|
|
Income before income tax expense,
equity method investments and noncontrolling
interests |
4,386 |
|
4,035 |
|
Adjusted income before income tax
expense, equity method investments and noncontrolling
interests |
|
4,546 |
|
5,787 |
Income tax expense |
529 |
529 |
1,035 |
827 |
Income before equity method
investments and noncontrolling interests |
3,857 |
|
3,000 |
|
|
|
|
|
|
Adjusted income before equity method
investments and noncontrolling interests |
|
4,017 |
|
4,960 |
Share of losses in equity investment
affiliates |
(449) |
(449) |
(219) |
(219) |
Net income |
3,408 |
|
2,781 |
|
|
|
|
|
|
Adjusted net income |
|
3,568 |
|
4,741 |
Net (income) loss attributable to
noncontrolling interest |
(412) |
(412) |
214 |
214 |
|
|
|
|
|
Net income attributable to ChinaNet
Online Holdings, Inc. |
2,996 |
|
2,995 |
|
|
|
|
|
|
Adjusted net income attributable to
ChinaNet Online Holdings, Inc. |
|
3,156 |
|
4,955 |
Dividend for series A convertible preferred
stock |
-- |
-- |
(407) |
(407) |
|
|
|
|
|
Net income attributable to common
shareholders of ChinaNet Online |
$2,996 |
|
$2,588 |
|
|
|
|
|
|
Adjusted net income attributable to
common shareholders of ChinaNet Online |
|
$3,156 |
|
$4,548 |
|
|
|
|
|
|
|
|
|
|
Earnings per common
share-Basic |
$0.14 |
|
$0.14 |
|
Adjusted earnings per common
share-Basic |
|
$0.14 |
|
$0.25 |
|
|
|
|
|
Earnings per common
share-Diluted |
$0.14 |
|
$0.14 |
|
Adjusted earnings per common
share-Diluted |
|
$0.14 |
|
$0.24 |
|
|
|
|
|
Weighted average number of common
shares outstanding: |
|
|
|
|
Basic |
22,185,556 |
22,185,556 |
18,545,609 |
18,545,609 |
Diluted |
22,185,556 |
22,185,556 |
18,759,240(1) |
20,384,766(2) |
|
|
|
|
|
(1) For the year ended
December 31, 2011, the effect of the 1,625,526 incremental shares
resulted from assumed conversion of the convertible preferred stock
was not included, because its effect was anti-dilutive under GAAP
measures. |
(2) For the year ended
December 31, 2011, the effect of the 1,625,526 incremental shares
resulted from assumed conversion of the convertible preferred stock
was included, because the effect was dilutive for not including the
non-cash gain and expenses related to the non-recurring
transactions incurred under NON-GAAP measures. |
Safe Harbor
This release contains certain "forward-looking statements"
relating to the business of ChinaNet Online Holdings, Inc., which
can be identified by the use of forward-looking terminology such as
"believes," "expects," "anticipates," "estimates" or similar
expressions. Such forward-looking statements involve known and
unknown risks and uncertainties, including business uncertainties
relating to government regulation of our industry, market demand,
reliance on key personnel, future capital requirements, competition
in general and other factors that may cause actual results to be
materially different from those described herein as anticipated,
believed, estimated or expected. Certain of these risks and
uncertainties are or will be described in greater detail in our
filings with the Securities and Exchange Commission. These
forward-looking statements are based on ChinaNet's current
expectations and beliefs concerning future developments and their
potential effects on the company. There can be no assurance that
future developments affecting ChinaNet will be those anticipated by
ChinaNet. These forward-looking statements involve a number of
risks, uncertainties (some of which are beyond the control of the
Company) or other assumptions that may cause actual results or
performance to be materially different from those expressed or
implied by such forward-looking statements. ChinaNet undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as may be required under applicable securities
laws.
CHINANET ONLINE
HOLDINGS, INC. |
CONSOLIDATED BALANCE
SHEETS |
(In thousands, except for
number of shares) |
|
|
|
|
As of December
31, |
|
2012 |
2011 |
|
(US $) |
(US $) |
Assets |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$5,483 |
$10,695 |
Term deposit |
3,357 |
-- |
Accounts receivable, net |
8,486 |
4,444 |
Other receivables, net |
3,103 |
3,631 |
Prepayment and deposit to suppliers |
14,596 |
15,360 |
Due from related parties |
210 |
324 |
Contingent consideration
receivables |
-- |
159 |
Other current assets |
136 |
129 |
Deferred tax assets-current |
50 |
-- |
Total current
assets |
35,421 |
34,742 |
|
|
|
Investment in and advance to equity
investment affiliates |
959 |
1,396 |
Property and equipment, net |
1,636 |
1,902 |
Intangible assets, net |
7,167 |
8,151 |
Goodwill |
11,083 |
10,999 |
Deferred tax assets-non
current |
652 |
92 |
Total Assets |
$56,918 |
$57,282 |
|
|
|
Liabilities and Equity |
|
|
Current liabilities: |
|
|
Accounts payable |
$110 |
$268 |
Advances from customers |
1,065 |
724 |
Accrued payroll and other accruals |
904 |
616 |
Due to equity investment affiliate |
-- |
220 |
Due to related parties |
-- |
161 |
Payable for acquisition |
1,266 |
550 |
Taxes payable |
6,683 |
5,040 |
Other payables |
217 |
114 |
Dividend payable |
-- |
5 |
Total current
liabilities |
10,245 |
7,698 |
Long-term liabilities: |
|
|
Deferred tax liability-non current |
1,689 |
1,893 |
Long-term borrowing from director |
139 |
137 |
Total Liabilities |
12,073 |
9,728 |
|
|
|
Commitments and
contingencies |
|
|
|
|
|
Equity: |
|
|
ChinaNet Online Holdings, Inc.'s
stockholders' equity |
|
|
Common stock (US$0.001 par value;
authorized 50,000,000 shares; issued and outstanding 22,186,540
shares and 22,146,540 shares at December 31, 2012 and 2011,
respectively) |
|
|
|
|
|
|
22 |
22 |
Additional paid-in capital |
20,008 |
20,747 |
Statutory reserves |
2,296 |
2,117 |
Retained earnings |
19,505 |
16,688 |
Accumulated other comprehensive
income |
2,393 |
2,132 |
Total ChinaNet Online Holdings, Inc.'s
stockholders' equity |
44,224 |
41,706 |
|
|
|
Noncontrolling interests |
621 |
5,848 |
Total equity |
44,845 |
47,554 |
|
|
|
Total Liabilities and
Equity |
$56,918 |
$57,282 |
|
CHINANET ONLINE
HOLDINGS, INC. |
CONSOLIDATED STATEMENTS
OF INCOME AND COMPREHENSIVE INCOME |
(In thousands, except for
number of shares and per share data) |
|
|
|
|
Year Ended
December 31, |
|
2012 |
2011 |
|
(US $) |
(US $) |
Sales |
|
|
From unrelated parties |
$46,403 |
$28,105 |
From related parties |
197 |
626 |
|
46,600 |
28,731 |
Cost of sales |
31,558 |
12,027 |
Gross margin |
15,042 |
16,704 |
|
|
|
Operating expenses |
|
|
Selling expenses |
2,683 |
3,506 |
General and administrative expenses |
6,030 |
7,904 |
Research and development expenses |
1,819 |
2,132 |
|
10,532 |
13,542 |
|
|
|
Income from operations |
4,510 |
3,162 |
|
|
|
Other income (expenses) |
|
|
Changes in fair value of contingent
consideration receivables |
(160) |
(70) |
Interest income |
186 |
13 |
Gain on deconsolidation of
subsidiaries |
-- |
925 |
Other (expenses)/income |
(150) |
5 |
|
(124) |
873 |
|
|
|
Income before income tax expense,
equity method investments and noncontrolling
interests |
4,386 |
4,035 |
Income tax expense |
529 |
1,035 |
Income before equity method
investments and noncontrolling interests |
3,857 |
3,000 |
Share of losses in equity investment
affiliates |
(449) |
(219) |
Net income |
3,408 |
2,781 |
Net (income) / losses attributable to
noncontrolling interests |
(412) |
214 |
Net income attributable to ChinaNet
Online Holdings, Inc. |
2,996 |
2,995 |
Dividend of Series A convertible
preferred stock |
-- |
(407) |
Net income attributable to common
stockholders of ChinaNet Online Holdings, Inc. |
$2,996 |
$2,588 |
|
|
|
Net income |
3,408 |
2,781 |
Foreign currency translation gain |
267 |
1,254 |
Comprehensive Income |
$3,675 |
$4,035 |
Comprehensive (income) / losses attributable
to noncontrolling interests |
(418) |
162 |
Comprehensive income attributable to ChinaNet
Online Holdings, Inc. |
$3,257 |
$4,197 |
|
|
|
Earnings per share |
|
|
Earnings per common share |
|
|
Basic |
$0.14 |
$0.14 |
Diluted |
$0.14 |
$0.14 |
|
|
|
Weighted average number of common
shares outstanding: |
|
|
Basic |
22,185,556 |
18,545,609 |
Diluted |
22,185,556 |
18,759,240 |
|
CHINANET ONLINE
HOLDINGS, INC. |
CONSOLIDATED STATEMENTS
OF CASH FLOWS |
(In thousands) |
|
|
|
|
Year Ended
December 31, |
|
2012 |
2011 |
|
(US $) |
(US $) |
|
|
|
Cash flows from operating
activities |
|
|
Net income |
$3,408 |
$2,781 |
Adjustments to reconcile net income
to net cash provided by operating activities |
|
|
Depreciation and amortization |
1,637 |
1,012 |
Share-based compensation
expenses |
48 |
2,900 |
Changes in fair value of contingent
consideration receivables |
160 |
70 |
Allowances for doubtful debts |
1,141 |
2,583 |
Share of losses in equity investment
affiliates |
449 |
219 |
Gain on deconsolidation of
subsidiaries |
-- |
(925) |
Loss / (gain) on disposal of property and
equipment |
2 |
(3) |
Deferred taxes |
(828) |
27 |
Changes in operating assets and
liabilities |
|
|
Accounts receivable |
(5,516) |
(2,100) |
Other receivables |
1,400 |
5,276 |
Prepayment and deposit to suppliers |
882 |
(11,247) |
Due from related parties |
117 |
(130) |
Other current assets |
(5) |
(197) |
Accounts payable |
(158) |
27 |
Advances from customers |
335 |
(1,575) |
Accrued payroll and other accruals |
285 |
166 |
Due to director |
-- |
(559) |
Due to Control Group |
-- |
(82) |
Due to related parties |
(4) |
(139) |
Other payables |
72 |
490 |
Taxes payable |
1,603 |
803 |
Net cash provided by (used in)
operating activities |
5,028 |
(603) |
|
|
|
Cash flows from investing
activities |
|
|
Purchases of vehicles and office
equipment |
(314) |
(741) |
Purchase of intangible assets |
-- |
(1,445) |
Short-term loan to unrelated
entities |
(475) |
-- |
Project development deposit to a third
party |
(2,453) |
-- |
Refund of project development deposit
from a third party |
2,453 |
-- |
Cash from acquisition of VIEs |
-- |
330 |
Cash effect on deconsolidation of
VIEs |
-- |
(1,670) |
Long-term investment in and advance to
equity investment affiliates |
-- |
(1,712) |
Disposal of investment in and loan
repayment from equity investment affiliate |
-- |
8,885 |
Payment for acquisition of VIEs |
(5,775) |
(9,731) |
Placement of term deposit |
(3,355) |
-- |
Net cash used in investing
activities |
(9,919) |
(6,084) |
|
|
|
Cash flows from financing
activities |
|
|
Cash investment contributed by
noncontrolling interests |
-- |
378 |
Dividend paid to convertible preferred
stockholders |
(5) |
(657) |
Short-term loan borrowed from an equity
investment affiliate |
316 |
216 |
Short-term loan repaid to an equity
investment affiliate |
(538) |
-- |
Repayment to legal (nominal) shareholders
of Shanghai Jing Yang |
(158) |
-- |
Capital contributions received in advance
from new shareholders of Zhao Shang Ke Hubei before
deconsolidation |
-- |
1,545 |
Net cash (used in) provided by
financing activities |
(385) |
1,482 |
|
|
|
Effect of exchange rate fluctuation on cash
and cash equivalents |
64 |
310 |
|
|
|
Net decrease in cash and cash
equivalents |
(5,212) |
(4,895) |
|
|
|
Cash and cash equivalents at
beginning of the year |
10,695 |
15,590 |
Cash and cash equivalents at end of
the year |
$5,483 |
$10,695 |
|
|
|
CONTACT: MZ North America
Ted Haberfield, President
Direct: +1-760-755-2716
Email: thaberfield@mzgroup.us
Web: www.mzgroup.us
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