BEIJING, Feb. 12, 2018 /PRNewswire/ -- Shineco, Inc.
("Shineco" or the "Company"; NASDAQ: TYHT), a producer and
distributor of Chinese herbal medicines, organic agricultural
produce, specialized textiles, and other health and well-being
focused plant-based products in China, today announced its financial results
for the second quarter ended December 31,
2017.
Mr. Yuying Zhang, Chairman and Chief Executive Officer of
Shineco, commented, "We are proud of all that we have accomplished
in the first two quarters of our fiscal year and are pleased to
report the second quarter of 2018 financial results with a 26.3%
increase in net income as compared to the second quarter of 2017.
We believe that our investment in our Apocynum Industrial Park and
Institute of Chinese Apocynum Industrial Technology Research
continues to strengthen the long-term outlook of Shineco as a
positive long-term investment. In the short term we have seen
tremendous growth in our Luobuma product line and are pleased that
we have grown to become a high margin business, with revenues grown
327% compared to the second quarter ended December 31, 2016, and have achieved impressive
results following our expansion over this past year. The past six
months have been immensely positive for Shineco and we are excited
to tackle the challenges and opportunities that the next six months
will bring, as we anticipate continued future growth in our
revenues and net income."
Second Quarter of 2018 Financial Highlights
|
|
For the Three
Months Ended December 31
|
($ millions,
except per share data)
|
|
2017
|
|
2016
|
|
%
Change
|
Revenue
|
|
14.13
|
|
11.22
|
|
25.9%
|
Luobuma
products
|
|
3.89
|
|
0.91
|
|
327.0%
|
Chinese medicinal
herbal products
|
|
3.66
|
|
3.50
|
|
4.8%
|
Other agricultural
products
|
|
6.58
|
|
6.82
|
|
-3.4%
|
Gross
profit
|
|
4.82
|
|
3.95
|
|
21.9%
|
Gross
margin
|
|
34.1%
|
|
35.2%
|
|
-1.1%
|
Operating
income
|
|
3.24
|
|
2.53
|
|
28.2%
|
Operating
margin
|
|
22.9%
|
|
22.5%
|
|
0.4%
|
Net income
attributable to Shineco
|
|
3.60
|
|
2.85
|
|
26.3%
|
EPS
|
|
0.17
|
|
0.14
|
|
26.3%
|
- Revenues increased by 25.9% to $14.13
million for the three months ended December 31, 2017 from $11.22 million for the same period of last year,
mainly due to increases in sales from Luobuma products and Chinese
medicinal herbal products and partially offset by decreased sales
from other agricultural products.
- Gross profit increased by 21.9% to $4.82
million for the three months ended December 31, 2017 from $3.95 million for the same period of last year.
Gross margin decreased by 1.1 percentage points to 34.1% from 35.2%
for the same period of last year.
- Net income attributable to Shineco increased by 26.3% to
$3.60 million, or $0.17 per basic and diluted share, for the three
months ended December 31, 2017 from
$2.85 million, or $0.14 per basic and diluted share, for the same
period of last year. The increases in net income earnings per share
were primarily a result of the increase in gross profit, partially
offset by the increase in general and administrative expenses.
Second Quarter of 2018 Financial Results
Revenues
Revenues for the three months ended December 31, 2017 increased by $2.91 million, or 25.9%, to $14.13 million from $11.22
million for the same period of last year, mainly due to
increases in sales from Luobuma products and Chinese medicinal
herbal products and partially offset by decreased sales from other
agricultural products.
|
|
For the Three
Months Ended December 31
|
|
|
2017
|
|
2016
|
($
millions)
|
|
Revenues
|
|
COGS
|
|
Gross
Margin
|
|
Revenues
|
|
COGS
|
|
Gross
Margin
|
Luobuma
products
|
|
3.89
|
|
1.87
|
|
51.7%
|
|
0.91
|
|
0.44
|
|
51.0%
|
Chinese medicinal
herbal products
|
|
3.66
|
|
2.75
|
|
24.6%
|
|
3.50
|
|
2.48
|
|
29.1%
|
Other agricultural
products
|
|
6.58
|
|
4.67
|
|
29.0%
|
|
6.82
|
|
4.33
|
|
36.4%
|
Business and sales
related taxes
|
|
-
|
|
0.03
|
|
-
|
|
-
|
|
0.02
|
|
-
|
Total
|
|
14.13
|
|
9.31
|
|
34.1%
|
|
11.22
|
|
7.27
|
|
35.2%
|
Revenues from Luobuma products increased by $2.98 million, or 327.0%, to $3.89 million for the three months ended
December 31, 2017 from $0.91 million for the same period of last year,
mainly due to establishment of new subsidiary, Xinjiang Taihe,
which generated revenue of $2.93
million.
Revenues from Chinese medicinal herbal products increased by
$0.17 million, or 4.8%, to
$3.66 million for the three months
ended December 31, 2017 from
$3.50 million for the same period of
last year. The increase was primarily due to more fulfilled sales
orders from customers for the three months ended December 31, 2017 than the same period in
2016.
Revenues from other agricultural products decreased by
$0.23 million, or 3.4%, to
$6.58 million for the three months
ended December 31, 2017 from
$6.82 million for the same period of
last year. The decrease was mainly due to the decrease in revenue
of storage services, partially offset by the increased sales of yew
trees.
Gross profit and Gross Margin
Total cost of goods sold increased by $2.04 million, or 28.1%, to $9.31 million for the three months ended
December 31, 2017 from $7.27 million for the same period of last year.
Gross profit increased by $0.86
million, or 21.9%, to $4.82
million for the three months ended December 31, 2017 from $3.95 million for the same period of last year.
Overall gross margin decreased by 1.1 percentage points to 34.1%
for the three months ended December 31,
2017, compared to 35.2% for the same period of last
year.
Gross margins for Luobuma products, Chinese medicinal herbal
products, and other agricultural products were 51.7%, 24.6%, and
29.0%, respectively, for the three months ended December 31, 2017. This compared to gross margins
for Luobuma products, Chinese medicinal herbal products, and other
agricultural products of 51.0%, 29.1%, and 36.4%, respectively, for
the same period of last year.
Operating income
Selling expenses increased by $0.05
million, or 9.6%, to $0.55
million for the three months ended December 31, 2017 from $0.50 million for the same period of last year,
primarily due to the acquisition of new subsidiary, Tajite, in
October, and increased promotion expenses, partly offset by
decreased rent expense of warehouses and service fees of e-commerce
websites. General and administrative expenses increased by
$0.10 million, or 11.2%, to
$1.03 million for the three months
ended December 31, 2017 from
$0.92 million for the same period of
last year. The increase in general and administrative expenses was
due to the incorporation of new subsidiaries, Tiankunrunze,
Xinjiang Taihe and Tajite in 2017. As a result, total operating
expenses increased by $0.15 million,
or 10.7%, to $1.58 million for the
three months ended December 31, 2017
from $1.43 million for the same
period of last year.
Operating income increased by $0.71
million, or 28.2%, to $3.24
million for the three months ended December 31, 2017 from $2.53 million for the same period of last year.
Operating margin was 22.9% for the three months ended December 31, 2017, compared to 22.5% for the same
period of last year.
Net income
Net income increased by $0.68
million, or 23.6%, to $3.58
million for the three months ended December 31, 2017 from $2.90 million for the same period of last year.
After the deduction of non-controlling interests, net income
attributable to common shareholders for the three months ended
December 31, 2017 was $3.60 million, or $0.17 per basic and diluted share. This compared
to net income attributable to common shareholders of $2.85 million, $0.14 per basic and diluted share, for the same
period of last year.
Six Months Ended December 31,
2017 Financial Results
|
|
For the Six Months
Ended December 31
|
($ millions,
except per share data)
|
|
2017
|
|
2016
|
|
%
Change
|
Revenue
|
|
21.94
|
|
17.59
|
|
24.7%
|
Luobuma
products
|
|
4.93
|
|
1.65
|
|
199.4%
|
Chinese medicinal
herbal products
|
|
6.93
|
|
6.68
|
|
3.8%
|
Other agricultural
products
|
|
10.08
|
|
9.27
|
|
8.8%
|
Gross
profit
|
|
6.91
|
|
5.87
|
|
17.7%
|
Gross
margin
|
|
31.5%
|
|
33.4%
|
|
-1.9%
|
Operating
income
|
|
4.20
|
|
3.59
|
|
17.0%
|
Operating
margin
|
|
19.1%
|
|
20.4%
|
|
-1.3%
|
Net income
attributable to Shineco
|
|
4.85
|
|
4.20
|
|
15.7%
|
EPS
|
|
0.23
|
|
0.21
|
|
11.1%
|
Revenues
Revenues for the six months ended December 31, 2017 increased by $4.35 million, or 24.7%, to $21.94 million from $17.59
million for the same period of last year, mainly due to
increases in sales across all the products.
|
|
For the Six Months
Ended December 31
|
|
|
2017
|
|
2016
|
($
millions)
|
|
Revenues
|
|
COGS
|
|
Gross
Margin
|
|
Revenues
|
|
COGS
|
|
Gross
Margin
|
Luobuma
products
|
|
4.93
|
|
2.45
|
|
50.1%
|
|
1.65
|
|
0.81
|
|
50.4%
|
Chinese medicinal
herbal products
|
|
6.93
|
|
5.33
|
|
23.1%
|
|
6.68
|
|
4.92
|
|
26.0%
|
Other agricultural
products
|
|
10.08
|
|
7.21
|
|
28.4%
|
|
9.27
|
|
5.96
|
|
35.6%
|
Business and sales
related taxes
|
|
-
|
|
0.04
|
|
-
|
|
-
|
|
0.03
|
|
-
|
Total
|
|
21.94
|
|
15.04
|
|
31.5%
|
|
17.59
|
|
11.72
|
|
33.4%
|
Revenues from Luobuma products increased by $3.29 million, or 199.4%, to $4.93 million for the six months ended
December 31, 2017 from $1.65 million for the same period of last year,
mainly due to revenue generated by a new subsidiary, Xinjiang
Taihe, of $2.93 million and increased
sales volume of our health awareness related products. The Company
also enhanced online sales promotions during the six months ended
December 31, 2017, which contributed
to more sales.
Revenues from Chinese medicinal herbal products increased by
$0.25 million, or 3.8%, to
$6.93 million for the six months
ended December 31, 2017 from
$6.68 million for the same period of
last year. The increase was primarily due to more fulfilled sales
orders from customers.
Revenues from other agricultural products increased by
$0.81 million, or 8.8%, to
$10.08 million for the six months
ended December 31, 2017 from
$9.27 million for the same period of
last year. The increase was mainly due to the increase in sales
volume of yew trees since the public realized the air purification
function of the yew trees.
Gross profit and Gross Margin
Total cost of goods sold increased by $3.31 million, or 28.3%, to $15.04 million for the six months ended
December 31, 2017 from $11.72 million for the same period of last year.
Gross profit increased by $1.04
million, or 17.7%, to $6.91
million for the six months ended December 31, 2017 from $5.87 million for the same period of last year.
Overall gross margin decreased by 1.9 percentage points to 31.5%
for the six months ended December 31,
2017, compared to 33.4% for the same period of last
year.
Gross margins for Luobuma products, Chinese medicinal herbal
products, and other agricultural products were 50.1%, 23.1%, and
28.4%, respectively, for the six months ended December 31, 2017. This compared to gross margins
for Luobuma products, Chinese medicinal herbal products, and other
agricultural products of 50.4%, 26.0%, and 35.6%, respectively, for
the same period of last year.
Operating income
Selling expenses decreased by $0.04
million, or 4.2%, to $0.85
million for the six months ended December 31, 2017 from $0.88 million for the same period of last year,
primarily due to decreased rent expense of warehouses, salary
expenses, and service fees of e-commerce websites, partially offset
by increased promotion expenses. General and administrative
expenses increased by $0.47 million,
or 33.3%, to $1.86 million for the
six months ended December 31, 2017
from $1.40 million for the same
period of last year. The increase in general and administrative
expenses was primarily due to the incorporation of new
subsidiaries, Tiankunrunze, Xinjiang Taihe and Tajite in 2017, as
well as increased professional service fees, such as attorney's
fees, consulting fees and auditing fees.
Operating income increased by $0.61
million, or 17.0%, to $4.20
million for the six months ended December 31, 2017 from $3.59 million for the same period of last year.
Operating margin was 19.1% for the six months ended December 31, 2017, compared to 20.4% for the same
period of last year.
Net income
Net income increased by $0.56
million, or 13.2%, to $4.84
million for the six months ended December 31, 2017 from $4.28 million for the same period of last year.
After the deduction of non-controlling interests, net income
attributable to common shareholders for the six months ended
December 31, 2017 was $4.85 million, or $0.23 per basic and diluted share. This compared
to net income attributable to common shareholders of $4.20 million, $0.21 per basic and diluted share, for the same
period of last year.
Financial Condition
As of December 31, 2017, the
Company had cash of $29.35 million,
compared to $23.15 million as of
June 30, 2017. Working capital as of
December 31, 2017 was $44.27 million as compared to $39.69 million at June 30,
2017. Net cash provided by operating activities was
$7.78 million for the six months
ended December 31, 2017, compared to
net cash used in operating activities of $0.15 million for the same period of last year.
Net cash used in investing activities was $0.49 million for the six months ended
December 31, 2017, compared to
$2.78 million for the same period of
last year. Net cash used in financing activities was $1.47 million for the six months ended
December 31, 2017, compared to net
cash provided by financing activities of $5.79 million for the same period of last
year.
About Shineco, Inc.
Incorporated in August 1997 and
headquartered in Beijing, China,
Shineco, Inc. ("Shineco" or the "Company") is a Delaware holding company that uses its
subsidiaries' and variable interest entities' vertically- and
horizontally-integrated production, distribution and sales channels
to provide health and well-being focused plant-based products in
China. Utilizing modern
engineering technologies and biotechnologies, Shineco produces,
among other products, Chinese herbal medicines, organic
agricultural produce and specialized textiles. For more information
about the Company, please visit www.tianyiluobuma.com.
Forward-Looking Statements
This press release contains information about Shineco's view
of its future expectations, plans and prospects that constitute
forward-looking statements. Actual results may differ
materially from historical results or those indicated by these
forward-looking statements as a result of a variety of factors
including, but not limited to, risks and uncertainties associated
with its ability to raise additional funding, its ability to
maintain and grow its business, variability of operating results,
its ability to maintain and enhance its brand, its development and
introduction of new products and services, the successful
integration of acquired companies, technologies and assets into its
portfolio of products and services, marketing and other business
development initiatives, competition in the industry, general
government regulation, economic conditions, dependence on key
personnel, the ability to attract, hire and retain personnel who
possess the technical skills and experience necessary to meet the
requirements of its clients, and its ability to protect its
intellectual property. Shineco encourages you to review other
factors that may affect its future results in Shineco's
registration statement and in its other filings with the Securities
and Exchange Commission.
For more information, please contact:
Tina Xiao
Ascent Investor Relations LLC
Phone: +1-917-609-0333
Email: tina.xiao@ascent-ir.com
SHINECO,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
December
31,
|
|
June 30,
|
|
2017
|
|
2017
|
|
|
(Unaudited)
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash
|
$
|
29,351,613
|
|
$
|
23,154,551
|
Accounts
receivable, net
|
|
15,068,392
|
|
|
14,480,004
|
Due from
related parties
|
|
529,816
|
|
|
448,833
|
Inventories
|
|
2,502,196
|
|
|
2,346,273
|
Advances
to suppliers, net
|
|
3,230,843
|
|
|
2,396,123
|
Loans to
third parties, net
|
|
-
|
|
|
830,090
|
Other
receivables, net
|
|
981,808
|
|
|
535,700
|
Short-term deposit
|
|
230,201
|
|
|
158,894
|
Prepaid
expenses
|
|
138,967
|
|
|
375,459
|
TOTAL CURRENT
ASSETS
|
|
52,033,836
|
|
|
44,725,927
|
|
|
|
|
|
|
Property
and equipment at cost, net of accumulated depreciation and
amortization
|
|
11,670,890
|
|
|
10,320,396
|
Land use
right, net of accumulated amortization
|
|
1,385,421
|
|
|
1,346,631
|
Investments
|
|
6,280,999
|
|
|
5,695,080
|
Deposit
for business acquisition
|
|
124,474
|
|
|
2,065,686
|
Distribution right
|
|
1,134,099
|
|
|
-
|
Long-term deposit and other noncurrent
assets
|
|
116,633
|
|
|
112,883
|
Prepaid
leases
|
|
3,698,929
|
|
|
3,784,533
|
Deferred
tax assets
|
|
285,917
|
|
|
233,834
|
Goodwill
|
|
2,152,975
|
|
|
-
|
TOTAL
ASSETS
|
$
|
78,884,173
|
|
$
|
68,284,970
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Short-term loans
|
$
|
1,203,764
|
|
$
|
2,663,628
|
Accounts
payable
|
|
1,740,791
|
|
|
158,068
|
Advances
from customers
|
|
105,785
|
|
|
5,439
|
Due to
related parties
|
|
343,655
|
|
|
257,880
|
Other
payables and accrued expenses
|
|
2,057,436
|
|
|
337,107
|
Taxes
payable
|
|
2,024,768
|
|
|
1,608,926
|
Deferred
tax liability
|
|
283,525
|
|
|
-
|
TOTAL
LIABILITIES
|
|
7,759,724
|
|
|
5,031,048
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
-
|
|
|
-
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock; par value $0.001, 100,000,000 shares authorized; 21,034,072
and 21,034,072 shares issued and outstanding at December 31, 2017
and June 30, 2017
|
|
21,034
|
|
|
21,034
|
Additional paid-in capital
|
|
22,737,302
|
|
|
22,737,302
|
Statutory reserve
|
|
3,727,672
|
|
|
3,484,449
|
Retained
earnings
|
|
43,675,155
|
|
|
39,064,743
|
Accumulated other comprehensive loss
|
|
(155,024)
|
|
|
(3,140,982)
|
Total
Stockholders' equity of Shineco, Inc.
|
|
70,006,139
|
|
|
62,166,546
|
Non-controlling interest
|
|
1,118,310
|
|
|
1,087,376
|
TOTAL
EQUITY
|
|
71,124,449
|
|
|
63,253,922
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
$
|
78,884,173
|
|
$
|
68,284,970
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of these unaudited condensed
consolidated financial statements
|
SHINECO,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
INCOME
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended
December 31,
|
|
For the Three Months
Ended December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
REVENUE
|
$
|
21,941,696
|
|
$
|
17,589,730
|
|
$
|
14,132,202
|
|
$
|
11,223,066
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
product and services
|
|
14,994,212
|
|
|
11,687,306
|
|
|
9,288,701
|
|
|
7,251,134
|
Business and sales related tax
|
|
41,337
|
|
|
33,964
|
|
|
25,724
|
|
|
18,419
|
Total cost of revenue
|
|
15,035,549
|
|
|
11,721,270
|
|
|
9,314,425
|
|
|
7,269,553
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
6,906,147
|
|
|
5,868,460
|
|
|
4,817,777
|
|
|
3,953,513
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses
|
|
1,863,924
|
|
|
1,398,341
|
|
|
1,028,373
|
|
|
924,577
|
Selling expenses
|
|
845,219
|
|
|
882,354
|
|
|
550,283
|
|
|
502,036
|
Total operating expenses
|
|
2,709,143
|
|
|
2,280,695
|
|
|
1,578,656
|
|
|
1,426,613
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
4,197,004
|
|
|
3,587,765
|
|
|
3,239,121
|
|
|
2,526,900
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Income from equity method investments
|
|
350,652
|
|
|
401,768
|
|
|
202,194
|
|
|
240,586
|
Purchase rebate income
|
|
779,935
|
|
|
592,628
|
|
|
411,132
|
|
|
352,638
|
Other income
|
|
139,975
|
|
|
159,308
|
|
|
54,356
|
|
|
73,407
|
Interest income (expense), net
|
|
(31,324)
|
|
|
40,538
|
|
|
(12,139)
|
|
|
7,785
|
Total other income
|
|
1,239,238
|
|
|
1,194,242
|
|
|
655,543
|
|
|
674,416
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE
PROVISION FOR INCOME TAXES
|
|
5,436,242
|
|
|
4,782,007
|
|
|
3,894,664
|
|
|
3,201,316
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR
INCOME TAXES
|
|
595,035
|
|
|
505,387
|
|
|
312,178
|
|
|
303,751
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
4,841,207
|
|
|
4,276,620
|
|
|
3,582,486
|
|
|
2,897,565
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: net income (loss)
attributable to non-controlling interest
|
|
(12,428)
|
|
|
80,177
|
|
|
(15,259)
|
|
|
49,829
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
ATTRIBUTABLE TO SHINECO, INC.
|
$
|
4,853,635
|
|
$
|
4,196,443
|
|
$
|
3,597,745
|
|
$
|
2,847,736
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
4,841,207
|
|
$
|
4,276,620
|
|
$
|
3,582,486
|
|
$
|
2,897,565
|
Other comprehensive income (loss): foreign currency translation
gain (loss)
|
|
3,030,781
|
|
|
(2,514,175)
|
|
|
1,561,371
|
|
|
(2,317,494)
|
Total comprehensive income
|
|
7,871,988
|
|
|
1,762,445
|
|
|
5,143,857
|
|
|
580,071
|
Less: comprehensive income
attributable to non-controlling interest
|
|
32,395
|
|
|
36,441
|
|
|
9,542
|
|
|
9,815
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
INCOME ATTRIBUTABLE TO SHINECO, INC.
|
$
|
7,839,593
|
|
$
|
1,726,004
|
|
$
|
5,134,315
|
|
$
|
570,256
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares basic and diluted
|
|
21,034,072
|
|
|
20,205,409
|
|
|
21,034,072
|
|
|
21,034,072
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings
per common share
|
$
|
0.23
|
|
$
|
0.21
|
|
$
|
0.17
|
|
$
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of these unaudited condensed
consolidated financial statements
|
SHINECO,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
|
|
|
|
|
|
|
|
For the Six Months
Ended December 31,
|
|
2017
|
|
2016
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
Net income
|
$
|
4,841,207
|
|
$
|
4,276,620
|
Adjustments to
reconcile net income to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
295,832
|
|
|
299,553
|
(Recovery of)
provision for doubtful accounts
|
|
(18,931)
|
|
|
298,297
|
Increase in inventory
reserve
|
|
148,043
|
|
|
35,930
|
Deferred tax
benefit
|
|
(41,523)
|
|
|
(43,424)
|
Income from equity
method investments
|
|
(350,652)
|
|
|
(401,768)
|
Interest income from
loans to related parties
|
|
-
|
|
|
(87,220)
|
|
|
|
|
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
35,996
|
|
|
(6,148,928)
|
Advances to
suppliers
|
|
(733,215)
|
|
|
(282,288)
|
Inventories
|
|
(145,327)
|
|
|
2,530,386
|
Other
receivables
|
|
(195,516)
|
|
|
(399,914)
|
Prepaid expense and
other assets
|
|
189,270
|
|
|
(152,508)
|
Due from related
parties
|
|
(8,399)
|
|
|
240,601
|
Prepaid
leases
|
|
237,751
|
|
|
235,872
|
Accounts
payable
|
|
1,544,313
|
|
|
5,444
|
Advances from
customers
|
|
17,181
|
|
|
79,921
|
Other
payables
|
|
1,640,458
|
|
|
(785,057)
|
Taxes
payable
|
|
323,744
|
|
|
151,820
|
NET CASH PROVIDED BY
(USED IN) OPERATING ACTIVITIES
|
|
7,780,232
|
|
|
(146,663)
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
Acquisitions of
property and equipment
|
|
(564,937)
|
|
|
(31,952)
|
Payment for
construction in progress
|
|
(602,267)
|
|
|
-
|
Loan advances to
third parties
|
|
-
|
|
|
(979,465)
|
Repayments of loans
from third parties
|
|
830,889
|
|
|
-
|
Loan advances to
related party
|
|
(52,698)
|
|
|
-
|
Repayments of loans
from related parties
|
|
-
|
|
|
501,119
|
Deposit for business
acquisition
|
|
(121,959)
|
|
|
(2,074,198)
|
Deposit for potential
investment
|
|
-
|
|
|
(200,000)
|
Cash of subsidiary
acquired
|
|
22,830
|
|
|
-
|
NET CASH (USED IN)
INVESTING ACTIVITIES
|
|
(488,142)
|
|
|
(2,784,496)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
Proceeds from
short-term loans
|
|
1,204,533
|
|
|
2,697,939
|
Repayment of
short-term loans
|
|
(2,743,199)
|
|
|
(2,414,589)
|
Stock issuance cost
payable
|
|
-
|
|
|
843,844
|
Proceeds from initial
public offering, net of offering costs
|
|
-
|
|
|
4,550,705
|
Proceeds from
advances from related parties
|
|
73,556
|
|
|
109,882
|
NET CASH (USED IN)
PROVIDED BY FINANCING ACTIVITIES
|
|
(1,465,110)
|
|
|
5,787,781
|
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATE CHANGE ON CASH
|
|
370,082
|
|
|
(1,122,302)
|
|
|
|
|
|
|
NET INCREASE IN
CASH
|
|
6,197,062
|
|
|
1,734,320
|
|
|
|
|
|
|
CASH - Beginning
of the Period
|
|
23,154,551
|
|
|
22,009,374
|
|
|
|
|
|
|
CASH - End of the
Period
|
$
|
29,351,613
|
|
$
|
23,743,694
|
|
|
|
|
|
|
SUPPLEMENTAL CASH
FLOW DISCLOSURES:
|
|
|
|
|
|
Cash paid for income
tax
|
$
|
492,206
|
|
$
|
219,682
|
Cash paid for
interest
|
$
|
69,498
|
|
$
|
71,586
|
|
|
|
|
|
|
The accompanying
notes are an integral part of these unaudited condensed
consolidated financial statements
|
View original
content:http://www.prnewswire.com/news-releases/shineco-inc-reports-second-quarter-of-2018-financial-results-300597346.html
SOURCE Shineco, Inc