LISHUI, China, Sept. 30, 2020 /PRNewswire/ -- Tantech Holdings
Ltd. (NASDAQ: TANH), ("Tantech" or the "Company"), a clean energy
company in China, today announced
its unaudited interim financial results for the six months ended
June 30, 2020.
Financial Highlights
|
|
For the Six Months
Ended June 30,
|
|
($ millions,
expect per share data and percentages)
|
|
2020
|
|
|
2019
|
|
|
%Change
|
Revenues
|
|
$
|
22.9
|
|
|
$
|
21.0
|
|
|
|
9.3%
|
Consumer
product
|
|
$
|
16.2
|
|
|
$
|
20.7
|
|
|
|
(21.9)%
|
Trading
|
|
$
|
6.3
|
|
|
$
|
0.2
|
|
|
|
3,180%
|
Gross
profit
|
|
$
|
3.1
|
|
|
$
|
3.7
|
|
|
|
(16.5)%
|
Gross
margin
|
|
|
13.4%
|
|
|
17.6%
|
|
|
(4.2)
percentage points
|
Operating
margin
|
|
|
7.9%
|
|
|
9.0%
|
|
|
(1.1)
percentage points
|
Net income from
continuing operations
|
|
$
|
1.0
|
|
|
$
|
1.2
|
|
|
|
(18.5)%
|
Net income (loss)
from discontinued operations
|
|
$
|
0.00
|
|
|
$
|
(0.76)
|
|
|
|
(100)%
|
Net income
|
|
$
|
1.0
|
|
|
$
|
0.4
|
|
|
|
125.3%
|
Basic/ Diluted
earnings per share
|
|
$
|
0.04
|
|
|
$
|
0.02
|
|
|
|
100%
|
|
|
- Total revenues
increased 9.3% to $22.9 million from $21.0 million. Sales in
the Company's trading segment increased significantly due to a
demand surge for bamboo charcoal used for air purification and
sanitation products, which more than offset a decrease in the
Company's consumer product segment primarily due to the impact of
COVID-19 disruptions and closures.
|
|
|
- Gross profit
decreased 16.5% to $3.1 million from $3.7 million, and gross margin
decreased by 4.2% to 13.4% from 17.65, primarily due to product
mix.
|
|
|
- Selling expenses
decreased 25% to $0.20 million from $0.27 million, primarily
reflects a decrease in in-person sales activities due to COVID-19
closures and a shift toward lower cost, online marketing support
during the first six months in fiscal 2020 compared to the same
period last year.
|
|
|
- General and
administration expenses decreased 48% to $0.76 million from $1.5
million The decrease was primarily attributable to COIVD-19
closures, along with a decrease in professional fees and consulting
expenses, as compared to the same period last year.
|
|
|
- Research and
development expenses increased $0.30 million from $0.04 million,
primarily due to increased activities related to electrical battery
and vehicle research in the Company's electric vehicle segment, as
compared to the same period last year.
|
|
|
- Other income
decreased 50% to $0.02 million from $0.04 million, primarily due to
lower government subsidy income, as compared to the same period
last year.
|
|
|
- Net income
increased 125.3% to $1.0 million from $0.4 million, with
a 100% increase in earnings per share on both a basic and diluted
basis to $0.04 from $0.02 in the same period last year.
|
|
|
- As of June 30,
2020, the Company had a $15.4 million balance of cash and cash
equivalents, with total shareholders' equity of approximately $94.1
million.
|
Mr. Wangfeng Yan, Chief Executive Officer of Tantech, said,
"2020 has been a very challenging year across all industries
worldwide. We are truly fortunate that we were able to help
people in this time of incredible need and loss. Revenue in
our trading segment surged to $6.3
million in the first six months of 2020 from $0.2 million in the year ago period. The
strong increase was driven by demand for our bamboo charcoal used
for active charcoal masks, air purification and sanitation products
in order to combat COVID-19. This growth more than offset the
decline in our consumer product segment, which declined due to the
temporary suspension of manufacturing activities in compliance with
government restrictions around COVID-19. We were able to
restart manufacturing activities in the middle of February but had
to work with customers and suppliers that continued to face
business disruptions and closures. We are pleased to report
that we have seen a steady rebound in sales in our consumer product
segment, with demand strong through September, as customers
continued to purchase our cleaning, purification and deodorization
products. We are working to meet the higher than normal
seasonal demand levels and expect higher growth in the second half
of 2020. Earlier investments we made in our brand, supply
chain, strategic inventory and time spent nurturing meaningful
relationships are proving critical to us as we maintain full access
to raw materials, production facilities and our distribution
channel."
"Given the challenging macro environment at the start of 2020,
we made the strategic decision to temporarily scale back our EV
development and production efforts at the same time we temporarily
suspended our consumer product manufacturing activities. In
addition to the COVID-19 closures in the first half of 2020, it was
evident our EV production costs would not be covered due to changes
in the government rebate policy issued in 2019. We have since
resumed full activities in this segment given the strong underlying
market growth dynamics for electric vehicles led by a
sustainability focus, China's
environmental protection policy, and an improved, state-of-the-art
driver experience. We are building our presence slowly and
methodically, in order to maximize the impact of our R&D
investments and technology advancements in specialty-use EV motors
rather than the more competitive, domestic general consumer EV
market. We are confident in our position and remain fully
committed to the EV sector, which we expect will be a key long-term
growth driver for us, but are also open to evaluating certain
international markets in Asia,
including those for gasoline powered motors, as we strive to
maintain well-balanced working capital and positive operating cash
flow."
About Tantech Holdings Ltd.
Established in 2001 and headquartered in Lishui
City, Zhejiang Province, China, Tantech, together with
its subsidiaries, is now, in addition to be a developer and
manufacturer of bamboo-based charcoal, an innovative leader in the
design, manufacture and distribution of electric vehicles. The
Company has also invested in mining business in 2018 and 2019.
For more information please
visit: http://ir.tantech.cn.
Forward-Looking Statements
This news release contains forward-looking statements as
defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. These statements are subject to
uncertainties and risks including, but not limited to, product and
service demand and acceptance, changes in technology, economic
conditions, the impact of competition and pricing, government
regulations, and other risks contained in reports filed by the
company with the Securities and Exchange Commission. All such
forward-looking statements, whether written or oral, and whether
made by or on behalf of the Company, are expressly qualified by
this cautionary statement and any other cautionary statements which
may accompany the forward-looking statements. In addition, the
Company disclaims any obligation to update any forward-looking
statements to reflect events or circumstances after the date
hereof.
Tantech Holdings Ltd and
Subsidiaries
Condensed Consolidated Balance
Sheets
(Unaudited)
|
|
June
30,
|
|
|
December
31,
|
|
|
|
2020
|
|
|
2019
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents (Note 3 at VIE)
|
|
$
|
15,418,825
|
|
|
$
|
12,440,457
|
|
Restricted cash (Note
3 at VIE)
|
|
|
2,830
|
|
|
|
205,520
|
|
Accounts receivable,
net (Note 3 at VIE)
|
|
|
43,407,119
|
|
|
|
39,352,408
|
|
Inventories, net
(Note 3 at VIE)
|
|
|
1,898,128
|
|
|
|
595,627
|
|
Advances to
suppliers, net (Note 3 at VIE)
|
|
|
3,328,762
|
|
|
|
13,079,889
|
|
Advances to suppliers
– related party
|
|
|
1,415,000
|
|
|
|
-
|
|
Prepaid taxes (Note 3
at VIE)
|
|
|
2,249,606
|
|
|
|
2,396,349
|
|
Prepaid expenses and
other receivables, net (Note 3 at VIE)
|
|
|
81,801
|
|
|
|
91,377
|
|
Total Current
Assets (Note 3 at VIE)
|
|
|
67,802,071
|
|
|
|
68,161,627
|
|
|
|
|
|
|
|
|
|
|
Property, plant
and equipment, net (Note 3 at VIE)
|
|
|
2,419,897
|
|
|
|
2,700,034
|
|
|
|
|
|
|
|
|
|
|
Other
Assets
|
|
|
|
|
|
|
|
|
Manufacturing rebate
receivable (Note 3 at VIE)
|
|
|
7,632,838
|
|
|
|
7,746,116
|
|
Intangible assets,
net (Note 3 at VIE)
|
|
|
12,553,791
|
|
|
|
12,959,017
|
|
Long-term
Investment
|
|
|
23,534,705
|
|
|
|
23,883,983
|
|
Total Other
Assets (Note 3 at VIE)
|
|
|
43,721,334
|
|
|
|
44,589,116
|
|
Total Assets
(Note 3 at VIE)
|
|
$
|
113,943,302
|
|
|
$
|
115,450,777
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
|
Short-term bank
loans
|
|
$
|
6,619,370
|
|
|
$
|
6,861,208
|
|
Bank acceptance notes
payable (Note 3 at VIE)
|
|
|
1,417,830
|
|
|
|
205,520
|
|
Accounts payable
(Note 3 at VIE)
|
|
|
2,653,740
|
|
|
|
1,650,851
|
|
Due to related
parties (Note 3 at VIE)
|
|
|
1,055,926
|
|
|
|
1,626,120
|
|
Customer deposits
(Note 3 at VIE)
|
|
|
3,959,521
|
|
|
|
6,955,142
|
|
Taxes payable (Note 3
at VIE)
|
|
|
396,930
|
|
|
|
102,704
|
|
Due to third
parties
|
|
|
283,000
|
|
|
|
287,200
|
|
Accrued liabilities
and other payables (Note 3 at VIE)
|
|
|
1,655,377
|
|
|
|
1,444,896
|
|
Total Current
Liabilities (Note 3 at VIE)
|
|
|
18,041,694
|
|
|
|
19,133,641
|
|
Deferred tax
liability (Note 3 at VIE)
|
|
|
1,758,774
|
|
|
|
1,784,875
|
|
Total
Liabilities (Note 3 at VIE)
|
|
|
19,800,468
|
|
|
|
20,918,516
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
Common stock, $0.001
par value, 50,000,000 shares authorized, 28,888,834 and 28,853,242
shares issued and outstanding
|
|
|
28,889
|
|
|
|
28,853
|
|
Additional paid-in
capital
|
|
|
39,343,954
|
|
|
|
39,310,178
|
|
Statutory
reserves
|
|
|
6,379,276
|
|
|
|
6,379,276
|
|
Retained
earnings
|
|
|
53,283,096
|
|
|
|
52,058,681
|
|
Accumulated other
comprehensive loss
|
|
|
(8,986,623)
|
|
|
|
(7,590,943)
|
|
Total
Stockholders' Equity attributable to the Company
|
|
|
90,048,592
|
|
|
|
90,186,045
|
|
Noncontrolling
interest
|
|
|
4,094,242
|
|
|
|
4,346,216
|
|
Total
Stockholders' Equity
|
|
|
94,142,834
|
|
|
|
94,532,261
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
113,943,302
|
|
|
$
|
115,450,777
|
|
Tantech Holdings Ltd and
Subsidiaries
Condensed Consolidated Statements of
Comprehensive Loss
(Unaudited)
|
|
For the Six Months
Ended June 30,
|
|
|
|
2020
|
|
|
2019
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
22,889,784
|
|
|
$
|
20,950,575
|
|
Cost of
revenues
|
|
|
19,817,263
|
|
|
|
17,271,777
|
|
Gross
Profit
|
|
|
3,072,521
|
|
|
|
3,678,798
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
201,217
|
|
|
|
266,516
|
|
General and
administrative expenses
|
|
|
763,945
|
|
|
|
1,480,952
|
|
Research and
development expenses
|
|
|
302,553
|
|
|
|
35,751
|
|
Total operating
expenses
|
|
|
1,267,715
|
|
|
|
1,783,219
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
|
1,804,806
|
|
|
|
1,895,579
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
17,962
|
|
|
|
31,614
|
|
Interest
expense
|
|
|
(184,228)
|
|
|
|
(228,855)
|
|
Government subsidy
income
|
|
|
10,926
|
|
|
|
-
|
|
Other income,
net
|
|
|
6,593
|
|
|
|
38,200
|
|
Total other income
(expenses)
|
|
|
(148,807)
|
|
|
|
(159,041)
|
|
|
|
|
|
|
|
|
|
|
Income before
provision for income taxes
|
|
|
1,655,999
|
|
|
|
1,736,538
|
|
Provision for
income taxes
|
|
|
684,804
|
|
|
|
545,520
|
|
Net income from
continuing operations
|
|
|
971,195
|
|
|
|
1,191,018
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operation:
|
|
|
|
|
|
|
|
|
Income from
discontinued operations, net of tax
|
|
|
-
|
|
|
|
(759,695)
|
|
Net income from
discontinued operations
|
|
|
-
|
|
|
|
(759,695)
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
971,195
|
|
|
|
431,323
|
|
Less: net loss
attributable to noncontrolling interest from continuing
operations
|
|
|
(253,220)
|
|
|
|
(233,808)
|
|
Net income
attributable to common stockholders of Tantech Holdings
Ltd.
|
|
$
|
1,224,415
|
|
|
$
|
665,131
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
971,195
|
|
|
|
431,323
|
|
Other
comprehensive income (loss):
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(1,394,434)
|
|
|
|
(4,059,144)
|
|
Comprehensive
income (loss)
|
|
|
(423,239)
|
|
|
|
(3,627,821)
|
|
Less: Comprehensive
loss attributable to noncontrolling interest
|
|
|
(251,974)
|
|
|
|
(218,403)
|
|
Comprehensive
income (loss) attributable to common stockholders of Tantech
Holdings Ltd.
|
|
$
|
(171,265)
|
|
|
$
|
(3,409,418)
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share - Basic and Diluted
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
0.04
|
|
|
$
|
0.05
|
|
Discontinued
operations
|
|
$
|
-
|
|
|
$
|
(0.03)
|
|
Total
|
|
$
|
0.04
|
|
|
$
|
0.02
|
|
Weighted Average
Shares Outstanding - Basic and diluted
|
|
|
|
|
|
|
|
|
Continuing operations
and discontinued operations
|
|
|
28,872,602
|
|
|
|
28,853,242
|
|
Tantech Holdings Ltd and
Subsidiaries
Condensed Consolidated Statements of Cash
Flows
(Unaudited)
|
|
For the Six Months
Ended June 30,
|
|
|
|
2020
|
|
|
2019
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
971,195
|
|
|
$
|
431,323
|
|
Net loss from
discontinued operations
|
|
|
-
|
|
|
|
759,695
|
|
Net income from
continuing operations
|
|
|
971,195
|
|
|
|
1,191,018
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
|
227,049
|
|
|
|
237,039
|
|
Amortization of
intangible asset
|
|
|
216,781
|
|
|
|
224,708
|
|
Amortization of
prepaid consulting expense
|
|
|
-
|
|
|
|
140,738
|
|
Loss (gain) from
disposal of property, plant and equipment
|
|
|
2,867
|
|
|
|
(8,017)
|
|
Issuance of common
stock for service
|
|
|
33,812
|
|
|
|
-
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable -
non-related party
|
|
|
(4,653,105)
|
|
|
|
(2,250,145)
|
|
Advances to
suppliers
|
|
|
9,607,140
|
|
|
|
8,132,865
|
|
Advances to
suppliers- related party
|
|
|
(1,422,000)
|
|
|
|
-
|
|
Inventory
|
|
|
(1,317,697)
|
|
|
|
123,653
|
|
Prepaid expenses and
other receivables
|
|
|
8,280
|
|
|
|
(17,958)
|
|
Manufacturing rebate
receivable
|
|
|
-
|
|
|
|
1,591,920
|
|
Accounts
payable
|
|
|
1,032,112
|
|
|
|
(303,835)
|
|
Accrued liabilities
and other payables
|
|
|
232,756
|
|
|
|
(370,284)
|
|
Customer
deposits
|
|
|
(2,908,226)
|
|
|
|
69,605
|
|
Taxes
payable
|
|
|
409,442
|
|
|
|
(25,988)
|
|
Net cash provided
by continuing operations
|
|
|
2,440,406
|
|
|
|
8,735,319
|
|
Net cash provided
by discontinued operations
|
|
|
-
|
|
|
|
2,630,211
|
|
Net cash provided
by operating activities
|
|
|
2,440,407
|
|
|
|
11,365,530
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Acquisition of
property, plant and equipment
|
|
|
(9,524)
|
|
|
|
(104,815)
|
|
Proceeds from
disposal of property, plant and equipment
|
|
|
21,450
|
|
|
|
16,214
|
|
Net cash provided
by (used in) continuing operations
|
|
|
11,926
|
|
|
|
(88,601)
|
|
Net cash used in
discontinued operations
|
|
|
-
|
|
|
|
(470)
|
|
Net cash provided
by (used in) investing activities
|
|
|
11,926
|
|
|
|
(89,071)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Proceeds from
(repayment of) loans from third parties
|
|
|
-
|
|
|
|
(2,874,595)
|
|
Bank acceptance notes
payable, net of repayment
|
|
|
1,221,327
|
|
|
|
(2,048,388)
|
|
Proceeds from bank
loans
|
|
|
6,652,116
|
|
|
|
4,242,172
|
|
Repayment of bank
loans
|
|
|
(6,794,316)
|
|
|
|
(4,684,372)
|
|
Repayment of loans
from related parties, net
|
|
|
(557,765)
|
|
|
|
(534,993)
|
|
Net cash used in
continuing operations
|
|
|
521,362
|
|
|
|
(5,900,176)
|
|
Net cash provided
by discontinued operations
|
|
|
-
|
|
|
|
-
|
|
Net cash used in
financing activities
|
|
|
521,362
|
|
|
|
(5,900,176)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash, restricted cash and cash
equivalents
|
|
|
(198,016)
|
|
|
|
(429,963)
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash, restricted cash and cash
equivalents
|
|
|
2,775,678
|
|
|
|
4,946,320
|
|
|
|
|
|
|
|
|
|
|
Cash, restricted
cash and cash equivalents, beginning of year
|
|
|
12,645,977
|
|
|
|
9,869,793
|
|
|
|
|
|
|
|
|
|
|
Cash, restricted
cash and cash equivalents, end of year
|
|
$
|
15,421,655
|
|
|
$
|
14,816,113
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure information:
|
|
|
|
|
|
|
|
|
Income taxes
paid
|
|
$
|
28,487
|
|
|
$
|
581,843
|
|
Interest
paid
|
|
$
|
168,560
|
|
|
$
|
237,568
|
|
View original
content:http://www.prnewswire.com/news-releases/tantech-announces-interim-financial-results-for-six-months-ended-june-30-2020-301142317.html
SOURCE Tantech Holdings Ltd.