QINGDAO, China, May 15, 2019 /PRNewswire/ -- TDH Holdings, Inc.
(NASDAQ: PETZ) ("TDH" or the "Company"), a PRC-based company that
specializes in the development, manufacturing and sales of various
pet food products in China,
Asia and Europe, announced today its financial results
for the twelve months ended December 31,
2018.
Full Year 2018 Financial Highlights:
|
|
For the
Twelve Months Ended December 31,
|
($ millions,
except per share data)
|
|
2018
|
|
2017
|
|
%
Change
|
Revenues
|
|
$23.67
|
|
$28.98
|
|
-18.3%
|
Gross profit
(loss)
|
|
($4.05)
|
|
$8.30
|
|
-148.8%
|
Gross profit
(loss) margin
|
|
-17.1%
|
|
28.6%
|
|
-45.7 pp*
|
Operating
income (loss)
|
|
($14.04)
|
|
$0.27
|
|
-5353.8%
|
Operating
income (loss) margin
|
|
-59.3%
|
|
0.9%
|
|
-60.2 pp*
|
Net income
(loss) attributable to common stockholders
|
|
($14.22)
|
|
$0.12
|
|
-12452.6%
|
Earnings (loss)
per share - basic and diluted
|
|
($1.49)
|
|
$0.01
|
|
-10831.2%
|
|
|
|
|
|
|
|
* pp:
percentage points
|
|
|
|
|
|
|
- Revenues decreased by 18.3% from $28.98
million to $23.67 million for
the year of 2018, with decrease in sales from overseas markets and
E-commerce platform was partially offset by increase in sales in
domestic market. The decrease in total revenues in 2018 was mainly
due to production reduction and delayed delivery resulting from (i)
the government mandated production suspension during the second
quarter of 2018 in connection with the Shanghai Cooperation
Organization Summit that was held in Qingdao City where our facility located, (ii)
production plant and equipment relocation, testing and delayed
product delivery after relocation of the Company's production
facilities during the first quarter of 2018, and (iii) the loss of
customer orders due to significant competition in 2018.
- Gross loss was $4.05 million for
the year of 2018 as compared to gross profit of $8.30 million for 2017. This loss was
mainly due to (i) an increase in the costs of raw materials, such
as chicken, beef and pork, (ii) write-down of obsolete inventories,
and (iii) low productivity rates after the relocation of our main
production facilities in 2018.
- Operating loss was $14.04 million
for the year of 2018 as compared to operating income of
$0.27 million for 2017. The decrease
in income from operations was the combined result of a decrease in
revenues and increases in cost of goods sold and operating
expenses.
- Net loss attributable to common stockholders was $14.22 million, or loss per share of $1.49, for the year of 2018 as compared to net
income of $0.12 million, or earnings
per share of $0.01, for 2017.
Full Year 2018 Financial Results
Revenues
The Company generates its revenues from product sales, mainly
including sales for pet chews, dried pet snacks and wet canned pet
foods in oversea markets, domestic markets and by e-commerce
platform. Revenue consists of the invoiced value for the sales, net
of value-added tax ("VAT"), business tax, and applicable local
government levies. For the year of 2018, total revenues decreased
by $5.31 million, or 18.3%, to
$23.67 million from $28.98 million for 2017. The decrease in
total revenues in 2018 was mainly due to production reduction and
delayed delivery resulting from (i) the government mandated
production suspension during the second quarter of 2018 in
connection with the Shanghai Cooperation Organization Summit that
was held in Qingdao City where our
facility located, (ii) production plant and equipment relocation,
testing and delayed product delivery after relocation of the
Company's production facilities during the first quarter of 2018,
and (iii) the loss of customer orders due to significant
competition in 2018.
|
|
For the
Twelve Months Ended December 31,
|
|
|
2018
|
|
|
2017
|
|
|
Y/Y
Change
|
|
|
Revenues
($'000)
|
|
% of
Total
|
|
|
Revenues
($'000)
|
|
% of
Total
|
|
|
Amount
($'000)
|
|
%
|
Overseas
|
$
|
15,832
|
|
66.9%
|
|
$
|
21,190
|
|
73.1%
|
|
$
|
(5,358)
|
|
-25.3%
|
Domestic
|
|
4,102
|
|
17.3%
|
|
|
2,086
|
|
7.2%
|
|
|
2,016
|
|
96.6%
|
E-commerce
|
|
3,801
|
|
16.1%
|
|
|
5,734
|
|
19.8%
|
|
|
(1,933)
|
|
-33.7%
|
less: sales tax
and additional surcharge
|
|
(61)
|
|
-0.3%
|
|
|
(31)
|
|
-0.1%
|
|
|
(30)
|
|
97.4%
|
Total
|
$
|
23,674
|
|
100.0%
|
|
$
|
28,980
|
|
100.0%
|
|
$
|
(5,305)
|
|
-18.3%
|
Overseas sales decreased by $5.36 million, or 25.3%, to $15.83 million for the year of
2018 from $21.19 million
for 2017. This decrease was due to the decline in production
capacity, and loss of some key customers. Domestic sales increased
by $2.02 million, or 96.6%, to
$4.10 million for the year of
2018 from $2.09 million for
2017. This increase was mainly due to our effort to expand
domestic market. Sales from the e-commerce channel decreased by
$1.93 million, or 33.7%, to
$3.80 million for the year of
2018 from $5.73 million for
2017, due to the rising raw material costs and our production
costs.
|
For the
Twelve Months Ended December 31,
|
|
|
2018
|
|
|
2017
|
|
|
Y/Y
Change
|
|
|
Revenues
($'000)
|
|
% of
Total
|
|
|
Revenues
($'000)
|
|
% of
Total
|
|
|
Amount
($'000)
|
|
%
|
Pet
chews
|
$
|
6,272
|
|
26.5%
|
|
$
|
9,614
|
|
33.2%
|
|
$
|
(3,343)
|
|
-34.8%
|
Dried pet
snacks
|
|
13,611
|
|
57.5%
|
|
|
14,852
|
|
51.2%
|
|
|
(1,241)
|
|
-8.4%
|
Wet canned pet
food
|
|
2,782
|
|
11.8%
|
|
|
3,035
|
|
10.5%
|
|
|
(253)
|
|
-8.3%
|
Dental health
snacks
|
|
496
|
|
2.1%
|
|
|
857
|
|
3.0%
|
|
|
(361)
|
|
-42.2%
|
Baked pet
biscuits
|
|
95
|
|
0.4%
|
|
|
8
|
|
0.0%
|
|
|
87
|
|
1056.9%
|
Others
|
|
480
|
|
2.0%
|
|
|
644
|
|
2.2%
|
|
|
(164)
|
|
-25.5%
|
Less: sales tax
and additional surcharge
|
|
(61)
|
|
-0.3%
|
|
|
(31)
|
|
-0.1%
|
|
|
(30)
|
|
97.4%
|
Total
|
$
|
23,674
|
|
100.0%
|
|
$
|
28,980
|
|
100.0%
|
|
$
|
(5,305)
|
|
-18.3%
|
Sales of pet chews decreased by $3.34
million, or 34.8%, to $6.27
million for the year of 2018 from $9.61 million for 2017. Sales of dried pet snacks
decreased by $1.24 million, or 8.4%,
to $13.61 million for the year of
2018 from $14.85 million for 2017.
Sales of wet canned pet food decreased by $0.25 million, or 8.3%, to $2.78 million for the year of 2018 from
$3.04 million for 2017. Sales of
dental health snacks decreased by $0.36
million, or 42.2%, to $0.50
million for the year of 2018 from $0.86 million for 2017. The foregoing decreases
were mainly due to the fact that (i) we did not renew certain sale
contracts as the selling prices offered were too low to make a
profit, and (ii) our total daily production capacity decreased
from 16 tons to 12 tons in 2018 due to the lease expiration for the
Canning facility in 2018. Sales of pet chews, dried pet
snacks, wet canned pet food, and dental health snacks accounted for
26.5%, 57.5%, 11.8%, and 2.1%, respectively, for the year of 2018,
compared to 33.2%, 51.2%, 10.5%, and 3.0%, respectively, for
2017.
Cost of revenues
Cost of revenues consists primarily of raw materials, labor and
factory overhead. Cost of revenues increased by
$7.04 million, or 34.1%, to
$27.73 million for the year of 2018
from $20.68 million for 2017. The
increase in cost of revenues was mainly due to increased raw
material costs, such as chicken, beef and pork, write-down of
obsolete inventories and low productivity after the relocation of
one of our main production facilities. As a percentage of revenues,
cost of revenues was 117.1% for the year of 2018, compared to 71.4%
for 2017.
Gross profit (loss) and gross profit (loss) margin
Gross loss was $4.05 million for
the year of 2018, compared to gross profit of $8.30 million for 2017. Gross loss margin was
17.1% for the year of 2018, compared to gross profit margin of
28.6% for 2017.
Operating expense
Operating expense consists of selling expenses, general and
administrative expenses and research and development expenses.
Selling expenses decreased by $0.35
million, or 7.1%, to $4.54
million for the year of 2018 from $4.88 million for 2017. The decrease in selling
expenses was related to the decline of distribution costs as our
overall sales decreased in 2018.
General and administrative expenses increased by $0.70 million, or 33.3%, to $2.79 million for the year of 2018 from
$2.10 million for 2017. The increase
in general and administrative expense was mainly attributable to
increases in overall payroll and rental expenses.
Research and development expense increased by $0.01 million, or 1.0%, to $1.06 million for the year of 2018 from
$1.05 million for 2017.
The Company also incurred impairment of goodwill charge of
$1.60 million for the year of 2018,
compared to $0 for 2017. The goodwill was a result of the
acquisition of TDH Japan and TDH Group BVBA.
As a result, total operating expenses increased by $1.96 million, or 24.4%, to $9.99 million for the year of 2018 from
$8.03 million for 2017. As a
percentage of total revenues, total operating expenses was 42.2%
for the year of 2018, compared to 27.7% for 2017.
Operating income (loss) and operating income (loss)
margin
Loss from operations was $14.04 million for the year of 2018,
compared to operating income of $0.27
million for 2017. The decrease in income from operations was
the combined result of decrease in revenues and increases in cost
of goods sold and operating expenses.
Net Income (loss) and earnings (loss) per share
Net loss was $14.22 million for
the year of 2018, compared to net income of $0.12 million for 2017. After deducting for
noncontrolling interest, net loss attributable to common
stockholders was $14.22 million, or
loss per share of $1.49, for the year
of 2018. This is compared to net income attributable to common
stockholders of $0.12 million, or
earnings per share of $0.01, for
2017.
Financial Conditions
As of December 31, 2018, the
Company had cash, cash equivalents and restricted cash of
$2.70 million, compared to
$3.64 million at December 31, 2017. Accounts receivable and
inventories were $0.85 million and
$3.02 million, respectively, as of
December 31, 2018, compared to
$1.93 million and $9.14 million, respectively, at the end of 2017.
Total working capital deficit was $11.34
million as of December 31,
2018, as compared to working capital of $6.92 million at the end of 2017.
Net cash used in operating activities was $2.17 million for the year of 2018, compared to
$2.67 million for 2017. Net cash used
in investing activities was $6.59
million for the year of 2018, compared to $0.85 million for 2017. Net cash provided by
financing activities was $7.73
million for the year of 2018, compared to $5.26 million for 2017.
Going Concern
The report of the Company's independent registered public
accounting firm expresses substantial doubt about the Company's
ability to continue as a going concern. The Company's consolidated
financial statements have been prepared assuming that the Company
will continue as a going concern, which contemplates the
realization of assets and liquidation of liabilities in the normal
course of business. However, for the year ended December 31, 2018, the Company has incurred a net
loss of approximately $14.2 million
and working capital deficit of approximately $11.3 million and its cash balance and revenues
generated are not currently sufficient and cannot be projected to
cover operating expenses and meet the Company's obligations as they
become due for the next twelve months after the date that our
financial statements are issued. These factors raise substantial
doubt about the Company's ability to continue as a going concern.
Management's plan to alleviate the substantial doubt about the
Company's ability to continue as a going concern include attempting
to improve its business profitability, its ability to generate
sufficient cash flow from its operations to meet its operating
needs on a timely basis, obtain additional working capital funds
through debt and equity financings to eliminate inefficiencies in
order to meet its anticipated cash requirements. However, there can
be no assurance that these plans and arrangements will be
sufficient to fund the Company's ongoing capital expenditures,
working capital, and other requirements. If the Company is unable
to achieve these goals, its business plan implementation would be
in jeopardy and the Company may have to substantially reduce or
even cease its operations.
Notice
Rounding amounts and percentages: Certain amounts and
percentages included in this press release have been rounded for
ease of presentation. Percentage figures included in this press
release have not in all cases been calculated on the basis of such
rounded figures, but on the basis of such amounts prior to
rounding. For this reason, certain percentage amounts in this press
release may vary from those obtained by performing the same
calculations using the figures in the financial statements. In
addition, certain other amounts that appear in this press release
may not sum due to rounding.
About TDH Holdings, Inc.
Founded in April 2002, TDH
Holdings, Inc. (the "Company") (NASDAQ: PETZ), is a developer,
manufacturer and distributer of a variety of pet food products
under multiple brands that are sold in the China, Asia
and Europe. More information about
the Company can be found at www.tiandihui.com.
Safe Harbor Statement
This news release contains forward-looking statements.
Without limiting the generality of the foregoing, words such as
"may," "will," "expect," "believe," "anticipate," "intend,"
"could," "estimate" or "continue" or the negative or other
variations thereof or comparable terminology are intended to
identify forward-looking statements. These statements are only
predictions, uncertainties and other factors may cause the
Company's actual results, levels of activity, performance or
achievements to be materially different from any future results,
levels or activity, performance or achievements expressed or
implied by these forward-looking statements. Specifically, the
Company's statements regarding, among others, its continued growth
and business outlook, the Company's ability to execute on its
business plan, secure necessary capital to sustain and maintain its
operations, are forward-looking statements. In addition, any
statements that refer to expectations, projections or other
characterizations of future events or circumstances are
forward-looking statements. These forward-looking statements are
not guarantees of future performance and are subject to certain
risks, uncertainties and assumptions that are difficult to predict
and many of which are beyond the control of the Company.
Actual results may differ from those projected in the
forward-looking statements due to risks and uncertainties that are
described more fully in the Company's public reports filed with the
U.S. Securities and Exchange Commission. Although the Company
believes that the assumptions underlying the forward-looking
statements are reasonable, any of the assumptions could prove
inaccurate and, therefore, there can be no assurance that the
results contemplated in forward-looking statements will be
realized. In light of the significant uncertainties inherent
in the forward-looking information included herein, the inclusion
of such information should not be regarded as a representation by
TDH or any other person that their objectives or plans will be
achieved. The Company does not undertake any obligation to revise
the forward-looking statements contained herein to reflect events
or circumstances after the date hereof or to reflect the occurrence
of unanticipated events.
For more information, please contact:
Tony Tian,
CFA
Weitian Group LLC
Email: ttian@weitianco.com
Phone: +1-732-910-9692
TDH HOLDINGS, INC.
AND SUBSIDIARIES CONSOLIDATED BALANCE
SHEETS
|
|
|
December 31,
|
|
December 31,
|
|
2018
|
|
2017
|
|
|
|
|
ASSETS
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
|
893,020
|
|
$
|
2,346,109
|
Restricted cash,
current
|
|
1,807,485
|
|
|
797,668
|
Accounts
receivable
|
|
845,800
|
|
|
1,932,924
|
Accounts receivable -
related party
|
|
435,513
|
|
|
-
|
Advances to
suppliers
|
|
77,280
|
|
|
633,554
|
Inventories,
net
|
|
3,019,804
|
|
|
9,135,332
|
Due from related
parties
|
|
43,554
|
|
|
361,961
|
Prepayments and other
current assets
|
|
680,606
|
|
|
371,796
|
Total current
assets
|
|
7,803,062
|
|
|
15,579,344
|
NON-CURRENT
ASSETS:
|
|
|
|
|
|
Restricted cash,
non-current
|
|
-
|
|
|
500,000
|
Property, plant and
equipment, net
|
|
8,410,525
|
|
|
3,520,373
|
Land use rights,
net
|
|
1,014,538
|
|
|
211,023
|
Long-term
investments
|
|
201,281
|
|
|
-
|
Total non-current
assets
|
|
9,626,344
|
|
|
4,231,396
|
Total
assets
|
$
|
17,429,406
|
|
$
|
19,810,740
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT)
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Accounts
payable
|
$
|
6,220,375
|
|
$
|
4,734,110
|
Accounts payable -
related parties
|
|
125,126
|
|
|
152,298
|
Notes
payable
|
|
2,462,044
|
|
|
1,377,106
|
Advances
from customers
|
|
160,828
|
|
|
231,230
|
Advances
from customers - related party
|
|
-
|
|
|
7,520
|
Short
term loans
|
|
8,263,038
|
|
|
1,402,514
|
Short term loans -
related parties
|
|
1,061,360
|
|
|
-
|
Current portion of
long term loans - related party
|
|
68,673
|
|
|
-
|
Taxes
payable
|
|
44,319
|
|
|
13,562
|
Due to related
parties
|
|
45,146
|
|
|
345,873
|
Other current
liabilities
|
|
692,669
|
|
|
392,435
|
Total current
liabilities
|
|
19,143,578
|
|
|
8,656,648
|
NON-CURRENT
LIABILITIES:
|
|
|
|
|
|
Deferred tax
liabilities
|
|
4,929
|
|
|
5,810
|
Long term loans -
related party, non-current
|
|
217,466
|
|
|
-
|
Total
liabilities
|
|
19,365,973
|
|
|
8,662,458
|
STOCKHOLDERS' EQUITY
(DEFICIT):
|
|
|
|
|
|
Common stock ($0.001
par value; 200,000,000 shares authorized; 10,516,662 and 9,423,750
shares issued and outstanding at December 31, 2018 and 2017,
respectively)
|
|
10,517
|
|
|
9,424
|
Additional paid-in
capital
|
|
10,999,011
|
|
|
9,947,084
|
Stock subscription
receivable
|
|
-
|
|
|
(100,000)
|
Statutory
reserves
|
|
160,014
|
|
|
160,014
|
Retained earnings
(Accumulated deficit)
|
|
(13,349,232)
|
|
|
823,474
|
Accumulated other
comprehensive income
|
|
243,470
|
|
|
308,286
|
Total TDH
Holdings, Inc. stockholders' equity (deficit)
|
|
(1,936,220)
|
|
|
11,148,282
|
Noncontrolling
interest
|
|
(347)
|
|
|
-
|
Total
stockholders' equity (deficit)
|
|
(1,936,567)
|
|
|
11,148,282
|
Total liabilities
and stockholders' equity (deficit)
|
$
|
17,429,406
|
|
$
|
19,810,740
|
TDH HOLDINGS, INC.
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
|
|
For The Years
Ended December 31,
|
|
2018
|
|
2017
|
|
2016
|
|
|
|
|
|
|
Net
revenue
|
$
|
22,154,506
|
|
$
|
28,473,016
|
|
$
|
24,443,736
|
Net
revenue - related parties
|
|
1,519,531
|
|
|
506,495
|
|
|
-
|
Total
revenue
|
|
23,674,037
|
|
|
28,979,511
|
|
|
24,443,736
|
Cost of
revenue
|
|
26,278,300
|
|
|
20,283,321
|
|
|
17,368,249
|
Cost of
revenue - related parties
|
|
1,448,533
|
|
|
399,177
|
|
|
-
|
Total cost of
revenue
|
|
27,726,833
|
|
|
20,682,498
|
|
|
17,368,249
|
Gross
profit
|
|
(4,052,796)
|
|
|
8,297,013
|
|
|
7,075,487
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling
expense
|
|
4,535,945
|
|
|
4,882,367
|
|
|
3,439,843
|
General
and administrative expense
|
|
2,792,858
|
|
|
2,095,676
|
|
|
1,407,787
|
Research
and development expense
|
|
1,062,582
|
|
|
1,051,665
|
|
|
1,076,568
|
Impairment of goodwill
|
|
1,599,591
|
|
|
-
|
|
|
-
|
Total operating
expenses
|
|
9,990,976
|
|
|
8,029,708
|
|
|
5,924,198
|
Income (loss) from
operations
|
|
(14,043,772)
|
|
|
267,305
|
|
|
1,151,289
|
Interest
expense
|
|
(233,101)
|
|
|
(82,946)
|
|
|
(102,274)
|
Government subsidies
|
|
81,882
|
|
|
414
|
|
|
21,912
|
Other
income
|
|
20,242
|
|
|
19,305
|
|
|
51,535
|
Other
expense
|
|
(26,992)
|
|
|
(144,069)
|
|
|
(23,490)
|
Loss
from equity method investment
|
|
(17,524)
|
|
|
-
|
|
|
-
|
Total other
expenses
|
|
(175,493)
|
|
|
(207,296)
|
|
|
(52,317)
|
Income (loss)
before income taxes provision (benefit)
|
|
(14,219,265)
|
|
|
60,009
|
|
|
1,098,972
|
Income
tax provision (benefit)
|
|
-
|
|
|
(55,102)
|
|
|
89,801
|
Net income
(loss)
|
|
(14,219,265)
|
|
|
115,111
|
|
|
1,009,171
|
Less: Net loss
attributable to noncontrolling interest
|
|
(40)
|
|
|
-
|
|
|
-
|
Net income (loss)
attributable to TDH Holdings, Inc.
|
$
|
(14,219,225)
|
|
$
|
115,111
|
|
$
|
1,009,171
|
Comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(14,219,265)
|
|
$
|
115,111
|
|
$
|
1,009,171
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
Foreign
currency translation adjustment
|
|
(65,123)
|
|
|
410,642
|
|
|
(221,418)
|
Total
comprehensive income (loss)
|
$
|
(14,284,388)
|
|
$
|
525,753
|
|
$
|
787,753
|
Less: Comprehensive
loss attributable to noncontrolling interest
|
|
(347)
|
|
|
-
|
|
|
-
|
Comprehensive
income (loss) attributable to TDH Holdings, Inc.
|
$
|
(14,284,041)
|
|
$
|
525,753
|
|
$
|
787,753
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per common share attributable to TDH Holdings Inc.
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(1.49)
|
|
$
|
0.01
|
|
$
|
0.13
|
Diluted
|
$
|
(1.49)
|
|
$
|
0.01
|
|
$
|
0.13
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
9,558,493
|
|
|
8,303,853
|
|
|
7,900,000
|
Diluted
|
|
9,558,493
|
|
|
8,303,853
|
|
|
7,900,000
|
TDH HOLDINGS, INC.
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
For The Years
Ended December 31,
|
|
2018
|
|
2017
|
|
2016
|
Cash flows from
operating activities
|
|
|
|
|
|
Net income
(loss)
|
$
|
(14,219,265)
|
|
$
|
115,111
|
|
$
|
1,009,171
|
Adjustments to
reconcile net income (loss) to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
395,355
|
|
|
364,170
|
|
|
256,104
|
Loss from equity
method investment
|
|
17,524
|
|
|
-
|
|
|
-
|
Impairment of
goodwill
|
|
1,599,591
|
|
|
-
|
|
|
-
|
Inventory
write-down
|
|
1,668,508
|
|
|
-
|
|
|
-
|
Bad debt
provision
|
|
-
|
|
|
18,201
|
|
|
-
|
Deferred income tax
liability
|
|
(591)
|
|
|
(8,581)
|
|
|
(127)
|
Loss on disposal of
property, plant and equipment
|
|
-
|
|
|
1,783
|
|
|
-
|
Changes
in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
1,302,573
|
|
|
(971,831)
|
|
|
(609,099)
|
Accounts receivable -
related party
|
|
(778,516)
|
|
|
(10,817)
|
|
|
-
|
Inventories,
net
|
|
4,203,927
|
|
|
(2,658,359)
|
|
|
(3,316,762)
|
Due to related
parties
|
|
18,142
|
|
|
5,920
|
|
|
-
|
Advances to
suppliers
|
|
569,723
|
|
|
121,360
|
|
|
(610,215)
|
Prepayments and other
current assets
|
|
(291,336)
|
|
|
18,197
|
|
|
(223,632)
|
Accounts
payable
|
|
1,870,157
|
|
|
1,174,363
|
|
|
1,321,954
|
Accounts payable -
related parties
|
|
19,848
|
|
|
32,440
|
|
|
-
|
Interest
payable
|
|
119,712
|
|
|
-
|
|
|
-
|
Notes
payable
|
|
1,204,910
|
|
|
(127,275)
|
|
|
284,510
|
Taxes
payable
|
|
32,733
|
|
|
(115,219)
|
|
|
(85,139)
|
Advances
from customers
|
|
(60,254)
|
|
|
(601,855)
|
|
|
513,456
|
Advances
from customer - related party
|
|
(7,397)
|
|
|
7,241
|
|
|
-
|
Other current
liabilities
|
|
160,914
|
|
|
(39,785)
|
|
|
(29,339)
|
Net cash used in
operating activities
|
|
(2,173,742)
|
|
|
(2,674,936)
|
|
|
(1,489,118)
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Payments to acquire
property, plant and equipment
|
|
(5,627,422)
|
|
|
(227,900)
|
|
|
(9,002)
|
Proceeds from
disposal of property, plant and equipment
|
|
-
|
|
|
2,012
|
|
|
-
|
Payments to acquire
land use rights
|
|
(854,221)
|
|
|
(103,596)
|
|
|
-
|
Acquisition of
businesses, net of cash acquired
|
|
19,888
|
|
|
-
|
|
|
-
|
Loans to related
parties
|
|
(132,147)
|
|
|
(533,242)
|
|
|
(2,543,946)
|
Repayments from
related parties
|
|
235,049
|
|
|
15,443
|
|
|
3,400,799
|
Payments for
long-term investments
|
|
(235,605)
|
|
|
-
|
|
|
-
|
Net cash provided
by (used in) investing activities
|
|
(6,594,458)
|
|
|
(847,283)
|
|
|
847,851
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of common shares
|
|
-
|
|
|
5,542,047
|
|
|
3,759,423
|
Collection of stock
subscription receivable
|
|
100,000
|
|
|
827,730
|
|
|
-
|
Capital distribution
in connection with acquisition of a subsidiary
|
|
-
|
|
|
-
|
|
|
(2,880,000)
|
Proceeds from related
parties
|
|
5,306
|
|
|
1,073,961
|
|
|
3,503,190
|
Repayments to related
parties
|
|
(385,420)
|
|
|
(1,767,391)
|
|
|
(3,310,849)
|
Proceeds from short
term loans
|
|
8,400,090
|
|
|
2,077,219
|
|
|
1,806,411
|
Repayments of short
term loans
|
|
(1,508,056)
|
|
|
(2,494,793)
|
|
|
(1,806,411)
|
Proceeds from short
term loans - related parties
|
|
1,176,690
|
|
|
-
|
|
|
-
|
Repayments of short
term loans - related party
|
|
(60,490)
|
|
|
-
|
|
|
-
|
Net cash provided
by financing activities
|
|
7,728,120
|
|
|
5,258,773
|
|
|
1,071,764
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
|
96,808
|
|
|
55,000
|
|
|
(84,892)
|
Net change in
cash, cash equivalents and restricted cash
|
|
(943,272)
|
|
|
1,791,554
|
|
|
345,605
|
Cash, cash
equivalents and restricted cash, beginning of the
year
|
|
3,643,777
|
|
|
1,852,223
|
|
|
1,506,618
|
Cash, cash
equivalents and restricted cash, end of the year
|
$
|
2,700,505
|
|
$
|
3,643,777
|
|
$
|
1,852,223
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
|
|
|
|
Interest
paid
|
$
|
113,389
|
|
$
|
82,234
|
|
$
|
102,274
|
Income taxes
paid
|
$
|
-
|
|
$
|
59,927
|
|
$
|
102,036
|
|
|
|
|
|
|
|
|
|
Non-cash investing
and financial activities
|
|
|
|
|
|
|
|
|
Operating expenses
paid by related parties
|
$
|
157,094
|
|
$
|
85,837
|
|
$
|
68,679
|
Property, plant and
equipment transferred from construction in progress
|
$
|
-
|
|
$
|
-
|
|
$
|
34,721
|
Liabilities assumed
in connection with purchase of property, plant and
equipment
|
$
|
38,636
|
|
$
|
133,229
|
|
$
|
295,280
|
Liabilities assumed
in connection with acquisition of a subsidiary
|
$
|
-
|
|
$
|
-
|
|
$
|
91,826
|
Accounts payable
settled with loans to related parties
|
$
|
-
|
|
$
|
-
|
|
$
|
490,388
|
Receivables from
related parties settled with payables to related parties
|
$
|
114,707
|
|
$
|
169,906
|
|
$
|
92,402
|
Shares issuance in
connection with acquisition of subsidiaries
|
$
|
1,053,020
|
|
$
|
-
|
|
$
|
-
|
Reconciliation of
cash, cash equivalents, and restricted cash to the consolidated
balance sheets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
893,020
|
|
$
|
2,346,109
|
|
$
|
1,145,103
|
Restricted cash,
current
|
$
|
1,807,485
|
|
$
|
797,668
|
|
$
|
707,120
|
Restricted cash,
non-current
|
$
|
-
|
|
$
|
500,000
|
|
$
|
-
|
Total cash, cash
equivalents, and restricted cash at end of year
|
$
|
2,700,505
|
|
$
|
3,643,777
|
|
$
|
1,852,223
|
View original
content:http://www.prnewswire.com/news-releases/tdh-holdings-inc-reports-full-year-2018-audited-financial-results-300851031.html
SOURCE TDH Holdings, Inc.