QINGDAO, China, Dec. 10, 2021 /PRNewswire/ -- TDH Holdings, Inc.
(NASDAQ: PETZ) ("TDH" or the "Company"), a PRC-based company that
specializes in the development, manufacturing and sales of pet food
products in China and beyond,
announced today its financial results for the six months ended
June 30, 2021.
First Half 2021 Unaudited Financial Highlights:
|
|
For the Six Months
Ended June 30
|
|
($ millions,
except per share data)
|
|
2021
|
|
|
2020
|
|
|
%
Change
|
|
Revenues
|
|
$
|
0.13
|
|
|
$
|
0.28
|
|
|
|
-52.46
|
%
|
Gross profit
(loss)
|
|
$
|
(0.18)
|
|
|
$
|
(0.07)
|
|
|
|
148.27
|
%
|
Gross profit (loss)
margin
|
|
|
-138.46
|
%
|
|
|
-25.0
|
%
|
|
|
-113.46 pp
|
*
|
Operating
loss
|
|
$
|
(1.17)
|
|
|
$
|
(0.97)
|
|
|
|
20.23
|
%
|
Operating loss
margin
|
|
|
-867.74
|
%
|
|
|
-343.10
|
%
|
|
|
-524.64 pp
|
*
|
Net loss attributable
to common stockholders
|
|
$
|
(0.94)
|
|
|
$
|
(0.6)
|
|
|
|
-56.09
|
%
|
Loss per share -
basic and diluted
|
|
$
|
(0.02)
|
|
|
$
|
(0.01)
|
|
|
|
-100
|
%
|
|
* pp: percentage
points
|
- Revenues decreased by 52.46% to $0.13
million for the first half of 2020. The decrease of revenue
in the six months ended June 30, 2021
was mainly due to the following facts: (1) decrease in sales orders
due to our uncompetitive sales price which became less attractive
to our customers; (2) suspension of our overseas E-commerce
business due to the estimated gross loss; (3) The negative impact
from suspension of our production and operations in November 2019 due to our default on loan
repayments to financial institutions, claims from our suppliers and
creditors and labor arbitration derived from our reduction in the
number of employees. The COVID-19 outbreak and further spread
caused disruption in our supply chain, transportation and our sales
activities. As a result, we had the inability to fulfil customer
orders on a timely manner and we received reduced sales orders from
our customers and our sales volume decreased in six months ended
June 30, 2021 as compared to the same
period of 2020.
- Gross loss was $ 0.18 million for
the first half of 2020, compared to gross profit of $0.07 million for the same period of the prior
year.
- Operating loss was $1.17 million
for the first half of 2021, compared to operating loss of
$0.97 million for the same period of
the prior year. The increase in operating loss was mainly due to
decreased revenue and increased general and administrative expenses
because of higher consulting service fees incurred during six
months ended June 30, 2021.
- Net loss was $0.94 million, or
loss per share of $0.02, for the
first half of 2021, compared to net loss of $0.60 million, or loss per share of $0.01, for the same period of the prior
year.
First Half 2021 Financial Results
Revenues
Historically, the Company generated its revenues from product
sales, mainly including sales for pet chews, dried pet snacks and
wet canned pet foods in overseas markets, domestic markets and
through its 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. Due to the sharp rise in
market price of raw materials, the lack of operational efficiency
of our production facilities and our inability to make bank loan
repayments upon maturity, we suspended our production and normal
business operations and we were involved in certain legal
proceedings since November 2019. The
COVID-19 outbreak further disrupted our business activities. These
factors led to the continuous decrease in our revenue for the six
months ended June 30, 2021 as
compared to the same period of 2020. For the first half of 2021,
total revenues decreased by $0.15
million, or 52.46%, to $0.13
million from $0.28 million as
compared with the same period of the prior year. The decrease of
revenue for the six months ended June 30,
2021 was mainly due to the following facts: (1) decrease in
sales orders due to our uncompetitive sales price which became less
attractive to our customers; (2) suspension of our overseas
E-commerce business due to the estimated gross loss; (3) The
negative impact from suspension of our production and operations in
November 2019 due to our default on
loan repayments to financial institutions, claims from our
suppliers and creditors and labor arbitration derived from our
reduction in the number of employees. The COVID-19 outbreak further
spread caused disruption in our supply chain, transportation and
our sales activities. As a result, we were unable to fulfil
customer orders in a timely manner, we received reduced sales
orders from our customers and our sales volume decreased for the
six months ended June 30, 2021 as
compared to the same period of 2020, as discussed in detail
below:
|
|
For the Six Months
Ended June 30,
|
|
|
|
2021
|
|
|
2020
|
|
|
Y/Y
Change
|
|
|
|
Revenues
($'000)
|
|
|
% of
Total
|
|
|
Revenues
($'000)
|
|
|
% of
Total
|
|
|
Amount
($'000)
|
|
|
%
|
|
Overseas
|
|
$
|
-
|
|
|
|
-
|
%
|
|
$
|
61
|
|
|
|
21.60
|
%
|
|
$
|
(61)
|
|
|
|
-100.00
|
%
|
Domestic
|
|
|
115
|
|
|
|
85.82
|
%
|
|
|
222
|
|
|
|
78.40
|
%
|
|
|
(106)
|
|
|
|
-48.20
|
%
|
E-commerce
|
|
|
19
|
|
|
|
14.18
|
%
|
|
|
-
|
|
|
|
-
|
%
|
|
|
19
|
|
|
|
100.00
|
%
|
less: sales tax and
additional
surcharge
|
|
|
-
|
|
|
|
|
%
|
|
|
-
|
|
|
|
-
|
%
|
|
|
-
|
|
|
|
-
|
%
|
Total
|
|
$
|
134
|
|
|
|
100.00
|
%
|
|
$
|
283
|
|
|
|
100.00
|
%
|
|
$
|
(148)
|
|
|
|
-52.46
|
%
|
Overseas sales decreased by $0.06
million, or 100.00%, to $0
million for the first half of 2021 from $0.06 million for the same period of the prior
year. Domestic sales decreased by $0.10
million, or 48.20%, to $0.12
million for the first half of 2021 from $0.22 million for the same period of the prior
year. Sales from the e-commerce channel increased by $0.02 million, or 100%, to $0.02 million for the first half of 2021 from
$0 million for the same period of the
prior year.
Cost of revenues
Cost of revenues consists primarily of raw materials, labor and
factory overhead expenses necessary to manufacture finished goods.
Our cost of revenues, decreased by $0.04
million or 12.33%, to $0.31
million for the six months ended June
30, 2021 as compared to $0.35
million for the six months ended June
30, 2020. This decrease in cost of revenues was in line with
the 52.46% decrease in our total net revenue for the six months
ended June 30, 2020 when sales orders
and sales volume decreased. As a percentage of revenues, cost of
revenues was 230.51% for the first half of 2021, compared to
124.99% for the same period of the prior year.
Gross loss and gross loss margin
Gross loss was $0.18 million for
the first half of 2021, compared to gross loss of $0.07 million for the same period of the prior
year. Gross loss margin was -131% for the first half of 2021,
compared to gross profit margin of -25% for the same period of the
prior year.
Operating expense
Operating expense consists of selling expense and general and
administrative expense.
Selling expense decreased by $0.02
million, or 39.32%, to $0.04
million for the first half of 2021 from $0.06 million for the same period of the prior
year. The decrease in our selling expense was in line with our
decreased revenue for the six months ended June 30, 2021. As our revenue declined, our
distribution costs, sales promotion and marketing related costs and
sales commission paid to our sales teams decreased in first half of
2021 as compared to first half of 2020.
General and administrative expense increased by $0.12 million, or 13.94%, to $0.95 million for the first half of 2021 from
$0.84 million for the same period of
the prior year. The increase in general and administrative expenses
was mainly due to higher consulting service fees we incurred during
six months ended June 30, 2021.
As a result, total operating expenses increased by $0.09 million, or 10.17%, to $0.99 million for the first half of 2021 from
$0.90 million for the same period of
the prior year.
Operating loss
Loss from operations was $1.17
million for the first half of 2021, compared to $0.97 million for the same period of the prior
year. The increase in operating loss was mainly due to the
company's land and plant being auctioned off and disposal of some
waste materials stored in the factory premises at a low price.
Other income, net
Total net other income increased by approximately $0.14 million or 39.07%, from $0.37 million in six months ended June 30, 2020 to $0.22
million in six months ended June 30,
2021, primarily includes an increase in investment income by
approximately $0.74 million, offset
by an increase in other expenses of $942,245. We invested our available cash on hand
in equity securities of certain publicly listed companies through
various open market transactions. Our investments in marketable
securities are accounted for pursuant to ASC 321 and reported at
their readily determinable fair value as quoted by market exchanges
in the consolidated balance sheets with change in fair value
recognized in earnings. During the first half of 2021, the
investments generated a total of $1.62
million net returns as compared to $0.88 million for the same period of 2020. On the
other hand, the increase in our other expense of approximately
$0.94 million was primarily due to
loss from auction of our land use right and a factory building on
the land owned by Qingdao Tiandihui Foodstuffs Co., Ltd., by the
court during six months ended June 30,
2021.
Net loss and loss per share
Net loss was $0.94 million, or
loss per share of $0.02, for the
first half of 2021, compared to net loss of $0.60 million, or loss per share of $0.01, for the same period of the prior year.
Financial Conditions
As of June 30, 2021, the Company
had cash, cash equivalents and restricted cash of $7.39 million, compared to $6.75 million at December
31, 2020. Accounts receivable and inventories were
$0.02 million and $0.15 million, respectively, as of June 30, 2021, compared to $0.17 million and $0.25
million, respectively, at December
31, 2020. Total working capital deficit was $0.55 million as of June
30, 2021, compared to $8.55
million at December 31,
2020.
Net cash used in operating activities was $4.84 million for the first half of 2021,
compared to $0.81 million for the
same period of the prior year. Net cash provided by investing
activities was $5.81 million for the
first half of 2021, compared to net cash used in investing
activities of $4.48 million for the
same period of the prior year. Net cash used in financing
activities was $0.36 million for the
first half of 2021, as compared to net cash provided by financing
activities of $0.15 million for the
same period of the prior year.
Recent sales of securities
On December 2, 2020, the Company
entered into stock subscription agreements, pursuant to which the
Company agreed to sell 9,100,000 shares to a group of investors for
an aggregate purchase of $2,730,000,
or $0.3 per share. In April 2021, a total of 9,100,000 common shares
were issued to four investors with cash proceeds of $2,730,000 received in the same month.
On September 30, 2021, the Company
and certain investors entered into a securities purchase agreement
in connection with a registered direct offering, pursuant to which
the Company agreed to sell to the investors an aggregate of
10,000,000 of its common shares and warrants exercisable for an
aggregate of 20,000,000 of its common shares. The common share
purchase price is $0.89 per share and
warrant purchase price is $0.01 per
warrant. The warrants are exercisable immediately as of the date of
issuance at an exercise price of $2.06 per share and expire twenty-four (24)
months from the date of issuance. The warrants may also be
exercised on a cashless basis. The Company may compel the exercise
of the warrants if the closing price of the Company's common shares
exceeds $6.00 for ten (10)
consecutive trading days commencing six (6) months after issuance.
The exercisability of the warrants may be limited if, upon
exercise, the holder or any of its affiliates would beneficially
own more than 9.99% of the Company's common shares. The registered
direct Offering was closed on September 30,
2021 and the Company received approximately $8.2 million net proceeds from the issuance of
10,000,000 common shares to investors, after deducting placement
agent fees and estimated offering expenses.
On November 3, 2021,
the Company and certain investors entered into a
securities purchase agreement in connection with a registered
direct offering, pursuant to which the Company agreed to sell to
the investors an aggregate of 15,000,000 of its common shares and
warrants exercisable for an aggregate of 30,000,000 of its common
shares. The common share purchase price is $0.64 per share and arrant purchase price is
$0.01 per warrant. The warrants are
exercisable immediately as of the date of issuance at an exercise
price of $1.47 per share and expire
twenty-four (24) months from the date of issuance. The warrants may
also be exercised on a cashless basis. The Company may compel the
exercise of the warrants if the closing price of the Company's
common shares exceeds $6.00 for ten
(10) consecutive trading days commencing six (6) months after
issuance. The exercisability of the warrants may be limited if,
upon exercise, the holder or any of its affiliates would
beneficially own more than 9.99% of the Company's common shares.
The registered direct offering was closed on November 3, 2021 and the Company received
approximately $8.9 million net
proceeds from the issuance of 15,000,000 common shares to
investors, after deducting placement agent fees and estimated
offering expenses.
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 China, Asia
and Europe. More information about
the Company can be found at www.tiandihui.com.
Safe Harbor Statement
This press 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. When the Company uses words such as
"may", "will", "intend", "should", "believe", "expect",
"anticipate", "project", "estimate" or similar expressions that do
not relate solely to historical matters, it is making
forward-looking statements. Specifically, the Company's statements
regarding, among others, its growth and business outlook, the
Company's ability to execute on its business plan, secure necessary
capital to sustain and maintain its operations, its ability to
resume its operations at the previous levels, its ability to
successfully resolve various legal proceedings in which it is
involved, are forward-looking statements. Forward-looking
statements are not guarantees of future performance and involve
risks and uncertainties that may cause the actual results to differ
materially from the Company's expectations discussed in the
forward-looking statements. These statements are subject to
uncertainties and risks including, but not limited to, the
following: the Company's goals and strategies; the Company's future
business development; product and service demand and acceptance;
changes in technology; economic conditions; the growth of the pet
food industry in China; reputation
and brand; the impact of competition and pricing; government
regulations; fluctuations in general economic and business
conditions in China and
assumptions underlying or related to any of the foregoing and other
risks contained in reports filed by the Company with the Securities
and Exchange Commission. For these reasons, among others, investors
are cautioned not to place undue reliance upon any forward-looking
statements in this press release. Additional factors are discussed
in the Company's filings with the U.S. Securities and Exchange
Commission, which are available for review at www.sec.gov. The
Company undertakes no obligation to publicly revise these
forward-looking statements to reflect events or circumstances that
arise after the date hereof.
For more information, please contact:
Feng Zhang, CFO
Email: zhangfeng@tdhpet.com
Phone: +86 183-1102-1983
Index to Unaudited
Condensed Consolidated Interim Financial Statements
|
|
Consolidated Balance
Sheets as of June 30, 2021 (Unaudited) and December 31,
2020
|
|
Consolidated
Statements of Operations and Comprehensive Loss For The Six Months
Ended June 30, 2021 and 2020 (Unaudited)
|
|
Consolidated
Statements of Cash Flows For The Six Months Ended June 30, 2021 and
2020 (Unaudited)
|
TDH HOLDINGS, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
June
30,
|
|
|
December 31,
|
|
|
|
2021
|
|
|
2020
|
|
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
5,975,713
|
|
|
$
|
6,566,549
|
|
Restricted
cash
|
|
|
1,417,059
|
|
|
|
182,515
|
|
Short-term
investments
|
|
|
4,469,764
|
|
|
|
3,138,578
|
|
Accounts receivable,
net
|
|
|
18,200
|
|
|
|
168,499
|
|
Advances to
suppliers, net
|
|
|
55,816
|
|
|
|
41,088
|
|
Inventories,
net
|
|
|
148,840
|
|
|
|
247,245
|
|
Prepayments and other
current assets, net
|
|
|
92,156
|
|
|
|
172,481
|
|
Total current
assets
|
|
|
12,177,548
|
|
|
|
10,516,955
|
|
NON-CURRENT
ASSETS:
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
1,171,158
|
|
|
|
6,636,995
|
|
Land use rights,
net
|
|
|
186,202
|
|
|
|
1,009,005
|
|
Operating lease
right-of-use assets
|
|
|
14,439
|
|
|
|
19,103
|
|
Operating lease
right-of-use assets - related parties
|
|
|
257,112
|
|
|
|
270,852
|
|
Total non-current
assets
|
|
|
1,628,911
|
|
|
|
7,935,955
|
|
Total
assets
|
|
$
|
13,806,459
|
|
|
$
|
18,452,910
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDER'S EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
3,224,177
|
|
|
$
|
3,209,763
|
|
Accounts payable -
related parties
|
|
|
126,122
|
|
|
|
124,715
|
|
Advances from
customers
|
|
|
113,865
|
|
|
|
90,834
|
|
Bank
overdrafts
|
|
|
78,320
|
|
|
|
78,320
|
|
Short-term
loans
|
|
|
5,373,598
|
|
|
|
8,391,323
|
|
Short-term loans -
related parties
|
|
|
993,840
|
|
|
|
985,883
|
|
Taxes
payable
|
|
|
62,598
|
|
|
|
60,729
|
|
Due to related
parties
|
|
|
42,491
|
|
|
|
42,021
|
|
Operating lease
liabilities, current
|
|
|
10,296
|
|
|
|
9,913
|
|
Operating lease
liabilities - related parties, current
|
|
|
223,251
|
|
|
|
195,231
|
|
Other current
liabilities
|
|
|
2,473,798
|
|
|
|
5,882,164
|
|
Total current
liabilities
|
|
|
12,722,356
|
|
|
|
19,070,896
|
|
NON-CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
Operating lease
liabilities - related party, non-current
|
|
|
260,108
|
|
|
|
274,794
|
|
Total
liabilities
|
|
|
12,982,464
|
|
|
|
19,345,690
|
|
STOCKHOLDERS'
EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
Common stock ($0.001
par value; 200,000,000 shares authorized; 54,949,995
and 45,849,995 shares issued and outstanding at June 30, 2021 and
December
31, 2020, respectively)
|
|
|
54,950
|
|
|
|
45,850
|
|
Additional paid-in
capital
|
|
|
24,684,470
|
|
|
|
21,963,570
|
|
Statutory
reserves
|
|
|
160,014
|
|
|
|
160,014
|
|
Accumulated
deficit
|
|
|
(23,792,092)
|
|
|
|
(22,849,319)
|
|
Accumulated other
comprehensive loss
|
|
|
(283,347)
|
|
|
|
(212,895)
|
|
Total
stockholders' equity (deficit)
|
|
|
823,995
|
|
|
|
(892,780)
|
|
Total liabilities
and stockholders' equity (deficit)
|
|
$
|
13,806,459
|
|
|
$
|
18,452,910
|
|
TDH HOLDINGS, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
|
(Unaudited)
|
|
|
|
For The
Six Months
Ended
June 30,
2021
|
|
|
For The
Six Months
Ended
June 30,
2020
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
$
|
134,312
|
|
|
$
|
282,532
|
|
Cost of
revenues
|
|
|
309,597
|
|
|
|
353,135
|
|
Gross
loss
|
|
|
(175,285)
|
|
|
|
(70,603)
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling
expense
|
|
|
38,580
|
|
|
|
63,577
|
|
General and
administrative expense
|
|
|
951,615
|
|
|
|
835,177
|
|
Total operating
expenses
|
|
|
990,195
|
|
|
|
898,754
|
|
Loss from
operations
|
|
|
(1,165,480)
|
|
|
|
(969,357)
|
|
Interest
expense
|
|
|
(568,918)
|
|
|
|
(569,831)
|
|
Other
income
|
|
|
40,648
|
|
|
|
62,547
|
|
Investment
income
|
|
|
1,617,467
|
|
|
|
879,520
|
|
Other
expenses
|
|
|
(24,053)
|
|
|
|
(6,744)
|
|
Loss from judicial
auction of property, plant and equipment and land use rights
in relation to litigations
|
|
|
(964,266)
|
|
|
|
-
|
|
Gain from forgiveness
of interest payable
|
|
|
121,829
|
|
|
|
-
|
|
Total other
income
|
|
|
222,707
|
|
|
|
365,492
|
|
Loss before income
tax expense
|
|
|
(942,773)
|
|
|
|
(603,865)
|
|
Income tax
expense
|
|
|
-
|
|
|
|
143
|
|
Net
loss
|
|
|
(942,773)
|
|
|
|
(604,008)
|
|
Less: Net loss
attributable to noncontrolling interest
|
|
|
-
|
|
|
|
-
|
|
Net Loss
attributable to TDH Holdings, Inc.
|
|
|
(942,773)
|
|
|
|
(604,008)
|
|
Comprehensive
loss
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(942,773)
|
|
|
$
|
(604,008)
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(70,452)
|
|
|
|
94,340
|
|
Total
comprehensive loss
|
|
$
|
(1,013,225)
|
|
|
$
|
(509,668)
|
|
Less: Comprehensive
loss attributable to noncontrolling interest
|
|
|
-
|
|
|
|
(8)
|
|
Comprehensive loss
attributable to TDH Holdings, Inc.
|
|
$
|
(1,013,225)
|
|
|
$
|
(509,660)
|
|
|
|
|
|
|
|
|
|
|
Loss per common
share attributable to TDH Holdings, Inc.
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.02)
|
|
|
$
|
(0.01)
|
|
Diluted
|
|
$
|
(0.02)
|
|
|
$
|
(0.01)
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
50,582,279
|
|
|
|
45,849,995
|
|
Diluted
|
|
|
50,582,279
|
|
|
|
45,849,995
|
|
TDH HOLDINGS, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
For The
Six Months
Ended
|
|
|
For The
Six Months
Ended
|
|
|
|
June 30,
2021
|
|
|
June 30,
2020
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
Net loss
|
|
$
|
(942,773)
|
|
|
$
|
(604,008)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
|
201,104
|
|
|
|
183,812
|
|
Fair value change of
short-term investments
|
|
|
(1,617,467)
|
|
|
|
(879,520)
|
|
Loss on sale of
property, plant and equipment
|
|
|
16,837
|
|
|
|
-
|
|
Loss on judicial
auction of property, plant and equipment in relation to
litigations
|
|
|
834,817
|
|
|
|
-
|
|
Loss on judicial
auction of land use rights in relation to litigations
|
|
|
129,449
|
|
|
|
-
|
|
Gain on disposal of
subsidiaries
|
|
|
(39,330)
|
|
|
|
-
|
|
Non-cash lease
expense
|
|
|
21,625
|
|
|
|
17,577
|
|
Gain from forgiveness
of interest payable
|
|
|
(121,829)
|
|
|
|
-
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
151,852
|
|
|
|
(32,902)
|
|
Inventories,
net
|
|
|
100,962
|
|
|
|
233,518
|
|
Operating lease
liabilities
|
|
|
271
|
|
|
|
8,179
|
|
Operating lease
liabilities – related parties
|
|
|
8,015
|
|
|
|
-
|
|
Advances to
suppliers, net
|
|
|
(14,232)
|
|
|
|
(43,882)
|
|
Prepayments and other
current assets, net
|
|
|
155,102
|
|
|
|
(54,763)
|
|
Accounts
payable
|
|
|
(20,606)
|
|
|
|
(280,293)
|
|
Interest
payable
|
|
|
356,820
|
|
|
|
518,559
|
|
Interest payable –
related parties
|
|
|
24,543
|
|
|
|
-
|
|
Taxes
payable
|
|
|
1,293
|
|
|
|
143
|
|
Advances from
customers
|
|
|
21,957
|
|
|
|
31,752
|
|
Other current
liabilities
|
|
|
(4,105,300)
|
|
|
|
90,675
|
|
|
|
|
|
|
|
|
|
|
NET CASH USED IN
OPERATING ACTIVITIES
|
|
$
|
(4,836,890)
|
|
|
$
|
(811,153)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Payments to acquire
property, plant and equipment
|
|
|
(10,999)
|
|
|
|
(9,244)
|
|
Proceeds from sale of
property, plant and equipment
|
|
|
16,495
|
|
|
|
-
|
|
Proceeds from auction
of property, plant and equipment
|
|
|
4,434,580
|
|
|
|
-
|
|
Proceeds from auction
of land use rights
|
|
|
687,760
|
|
|
|
-
|
|
Purchase of
short-term investments
|
|
|
(2,281,766)
|
|
|
|
(4,500,000)
|
|
Proceeds from sale of
short-term investments
|
|
|
2,967,756
|
|
|
|
26,826
|
|
|
|
|
|
|
|
|
|
|
NET CASH PROVIDED
BY (USED IN) INVESTING ACTIVITIES
|
|
$
|
5,813,826
|
|
|
$
|
(4,482,418)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of common shares
|
|
|
2,730,000
|
|
|
|
-
|
|
Proceeds from
short-term loans
|
|
|
-
|
|
|
|
104,798
|
|
Repayments of
short-term loans
|
|
|
(3,086,132)
|
|
|
|
(4,149)
|
|
Proceeds from
short-term loans - related parties
|
|
|
-
|
|
|
|
49,350
|
|
|
|
|
|
|
|
|
|
|
NET CASH PROVIDED
BY (USED IN) FINANCING ACTIVITIES
|
|
$
|
(356,132)
|
|
|
$
|
149,999
|
|
|
|
|
|
|
|
|
|
|
Effects on changes in
foreign exchange rate
|
|
|
22,904
|
|
|
|
9,389
|
|
Net change in cash,
cash equivalents, and restricted cash
|
|
|
643,708
|
|
|
|
(5,134,183)
|
|
Cash, cash
equivalents, and restricted cash - beginning of the
period
|
|
|
6,749,064
|
|
|
|
6,504,578
|
|
Cash, cash
equivalents, and restricted cash - end of the period
|
|
$
|
7,392,772
|
|
|
$
|
1,370,395
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
|
|
|
|
Interest
paid
|
|
$
|
203,550
|
|
|
$
|
37,640
|
|
|
|
|
|
|
|
|
|
|
Non-cash investing
and financing activities
|
|
|
|
|
|
|
|
|
Liabilities assumed
in connection with purchase of property, plant and
equipment
|
|
$
|
-
|
|
|
$
|
7,023
|
|
Liabilities assumed
in connection with purchase of short – term investments
|
|
$
|
-
|
|
|
$
|
65,422
|
|
Notes payable
reclassified to short-term loans
|
|
$
|
-
|
|
|
$
|
899,693
|
|
Liabilities settled
with sale of property, plant and equipment
|
|
$
|
53,193
|
|
|
$
|
347,107
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents, and restricted cash to the consolidated
balance sheets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
5,975,713
|
|
|
$
|
499,276
|
|
Restricted
cash
|
|
$
|
1,417,059
|
|
|
$
|
871,119
|
|
Total cash, cash
equivalents, and restricted cash
|
|
$
|
7,392,772
|
|
|
$
|
1,370,395
|
|
View original
content:https://www.prnewswire.com/news-releases/tdh-holdings-inc-reports-first-half-2021-financial-results-301441937.html
SOURCE TDH Holdings, Inc.