WUHAN CITY, China, Nov. 13,
2015 /PRNewswire/ -- Aoxin Tianli Group, Inc. (NASDAQ:ABAC)
("Aoxin Tianli" or the "Company"), a diversified company with
businesses in hog farming, manufacture and marketing of
electro-hydraulic servo-valves, and the development of optical
fiber hardware and software solutions, today announced its
financial results for the third quarter ended September 30, 2015.
Ms. Hanying Li, Chairwoman and
Chief Executive Officer of Aoxin Tianli Group, Inc., commented,
"Our revenues and net income for the third quarter decreased
significantly primarily driven by weakness in our hog farming and
servo businesses. We sold less hogs despite an uptick in hog
selling prices in the third quarter, and we saw the continuation of
a dramatic slowdown in our servo business that started in the
second quarter."
Ms. Li continued, "Additionally, the
Chinese stock market turmoil this year has prevented us from
carrying out our acquisition and diversification strategy
effectively and successfully so far this year and caused us to
reassess our growth and diversification strategy. With the recent
change of management and the support of our Board of Directors, the
Company will in the immediate term focus its efforts on hog farming
and related businesses such as meat processing and wholesale
distribution of pork products while in the longer term continue to
pursue selective acquisition and/or strategic investment
opportunities. Our decision of selling the 88% equity interest in
Hang-ao, which has been underperforming this year reflects the
latest changes in our immediate focus."
Third Quarter 2015 Financial Results
|
For the Three
Months Ended September 30,
|
($ thousands,
except per share data)
|
2015
|
|
2014
|
|
%
Change
|
Revenues
|
$ 9,457
|
|
$ 11,476
|
|
-17.6%
|
Hog farming
|
8,866
|
|
9,324
|
|
-4.9%
|
Retail
|
311
|
|
245
|
|
26.9%
|
Servo
|
72
|
|
1,585
|
|
-95.4%
|
Security &
protection
|
208
|
|
322
|
|
-35.4%
|
Gross
margin
|
32.0%
|
|
22.9%
|
|
9.1%
|
Operating (loss)
margin
|
16.9%
|
|
13.6%
|
|
3.3%
|
Net income for common
shareholders
|
875
|
|
1,813
|
|
-51.7%
|
Earnings per
share
|
0.03
|
|
0.08
|
|
-67.0%
|
Revenues
Revenues for the third quarter of 2015 decreased by $2.02 million, or 17.6%, to $9.46 million from $11.48
million for the same period of last year. The reduction in
revenues reflects the impact from the sale of two hog farms in the
third quarter of 2015 and the closure of another farm in 2014.
Although we sold fewer hogs during the third quarter of 2015, the
adverse effect was partly offset by improved hog prices.
|
For the Three
Months Ended September 30,
|
|
2015
|
|
2014
|
|
No. of
Hogs Sold
|
|
Average
Price/Hog ($)
|
|
Sales
($ thousands)
|
|
No. of
Hogs Sold
|
|
Average
Price/Hog ($)
|
|
Sales
($ thousands)
|
Breeder hogs- regular
hogs
|
6,078
|
|
$ 276
|
|
$ 1,677
|
|
7,126
|
|
$ 259
|
|
$ 1,844
|
Market hogs- regular
hogs
|
16,830
|
|
247
|
|
4,154
|
|
20,696
|
|
205
|
|
4,246
|
Market hogs- black
hogs
|
13,357
|
|
227
|
|
3,034
|
|
14,325
|
|
226
|
|
3,234
|
Total Hog
Farming
|
36,265
|
|
244
|
|
8,866
|
|
42,147
|
|
221
|
|
9,324
|
|
|
|
|
|
Kilogram
|
|
Average
Price/kg ($)
|
|
Sales
($ thousands)
|
|
Kilogram
|
|
Average
Price/kg ($)
|
|
Sales
($ thousands)
|
Retail- specialty
black hog
pork products
|
56,195
|
|
$ 6
|
|
$ 311
|
|
52,750
|
|
$ 5
|
|
$ 245
|
Revenues for the third quarter of 2015 from hog farming, which
includes sales of regular breeder hogs, regular market hogs, and
black hogs, decreased by $0.46
million, or 4.9%, to $8.87
million for the third quarter of 2015 from $9.32 million for the same period of last year.
The Company sold a total of 36,265 regular breeder hogs, regular
market hogs and black hogs with a blended average selling price of
$244 per hog during the third quarter
of 2015, compared to 42,147 hogs sold and a blended average selling
price of $221 per hog for the same
period of last year.
Revenues for the third quarter of 2015 from regular breeder hog
sales decreased by 9.1% to $1.68
million with the number of regular breeder hogs sold
decreasing by 14.7% to 6,078 hogs and the average selling price of
regular breeder hogs increasing by 6.6% to $276 per hog. Revenues for the third quarter of
2015 from regular market hog sales decreased by 2.2% to
$4.15 million as the number of
regular market hogs sold decreased by 18.7% to 16,830 hogs and the
average selling price of regular market hogs increased by 20.5% to
$247 per hog. Revenues for the third
quarter of 2015 from black market hogs decreased by 6.2% to
$3.03 million with the number of
black hogs sold decreasing by 6.8% to 13,357 hogs and the average
selling price of black hogs increasing by 0.4% to $227 per hog. The decrease in the number of black
market hogs was due to decreased production by the independent
farmers in our black hog program. We anticipate that as the
production of these farmers reaches capacity, the number of black
hogs we will have available for sale will level off.
We sold 56,195 kilograms of specialty black hog pork products
through retail at approximately $6
per kilogram, generating revenues of $0.31
million for the third quarter of 2015. This compared to
52,750 kilograms sold at approximately $5 per kilogram and revenues of $0.24 million for the same period of last year.
These revenues, combined with the sales of black market hogs, led
to $3.35 million in revenues from our
black hog program.
Revenues from our servo business was $0.07 million, including $0.06 million from selling electro-hydraulic
servo devices and relevant components and the rest from providing
maintenance services to customers, and accounted for 0.8% of total
revenues for the third quarter of 2015.
Revenues from our security & protection business was
$0.21 million, all from selling
optical fiber invasion alarm systems, and accounted for 2.2% of
total revenues for the third quarter of 2015.
Gross profit
Cost of goods sold decreased by $2.41
million, or 27.3%, to $6.43
million for the third quarter of 2015 from $8.84 million for the same period of last year.
Cost of goods sold related to hog farming, retail, servo and
security & protection were $6.10
million, $0.22 million,
$0.03 million and $0.08 million, respectively, for the third
quarter of 2015, compared to $7.64
million, $0.21 million,
$0.92 million, and $0.08 million, respectively, for the same period
of last year. The major reasons for the decrease in our cost of
goods sold were that we sold less hogs during the period as a
result of the reduction in the number of farms we operate, and a
decrease in the price of feed.
Overall gross profit increased by $0.40
million, or 15.0%, to $3.03
million for the third quarter of 2015 from $2.63 million for the same period of last year.
Gross profit for the third quarter of 2015 for hog farming, retail,
servo and security & protection were $2.76 million, $0.09
million, $0.05 million, and
$0.13 million, respectively.
Overall gross margin was 32.0%, with gross margins for hog
farming, retail, servo and security & protection segments 31%,
28%, 64% and 62%, respectively, for the third quarter of 2015. This
compared to overall gross margin of 22.9%, and gross margins for
hog farming, retail, servo and security & protection of 18%,
16%, 42%, and 73%, respectively, for the same period of last year.
The improvement in our gross margin in our Hog Farming and Retail
segments was primarily the result of increased hog selling prices
and the increased volume in our Retail segment.
Operating income
Total operating expenses, including general and administrative
expenses and selling and marketing expenses, increased by
$0.36 million, or 33.6%, to
$1.43 million for the third quarter
of 2015 from $1.07 million for the
same period of last year. The increase was primarily caused by a
decision to increase R&D spending on our Security &
Protection business by $0.15 million
and a grant of stock to key employees which generated non-cash
compensation expense of $0.12
million.
Operating income increased by $0.04
million, or 2.3%, to $1.60
million for the third quarter of 2015 from $1.56 million for the same period of last year.
Operating profit margin for the third quarter of 2015 was 16.9%,
compared to 13.6% for the same period of last year.
Net income
Net income decreased by $1.05
million, or 54.9%, to $0.86
million for the third quarter of 2015 from $1.90 million for the same period of last year.
The decrease in net income was mainly due to loss from disposal of
farms of $0.79 million this year and
decrease in subsidy income of $0.40
million, partially offset by decrease in interest expenses
of $0.18 million. After the deduction
of non-controlling interests, net income attributable to common
shareholders for the third quarter of 2015 was $0.88 million, or $0.03 per diluted share. This compared to net
income attributable to common shareholders of $1.81 million, $0.08 per diluted share, for the same period of
last year.
Nine Months Ended September 30,
2015 Financial Results
|
For the Nine
Months Ended September 30,
|
($ thousands,
except per share data)
|
2015
|
|
2014
|
|
%
Change
|
Revenues
|
$ 31,443
|
|
$ 29,237
|
|
7.5%
|
Hog farming
|
27,504
|
|
26,456
|
|
4.0%
|
Retail
|
1,112
|
|
875
|
|
27.2%
|
Servo
|
1,827
|
|
1,585
|
|
15.3%
|
Security &
protection
|
999
|
|
322
|
|
210.5%
|
Gross
margin
|
24.7%
|
|
16.0%
|
|
8.7%
|
Operating
margin
|
7.8%
|
|
5.5%
|
|
2.3%
|
Net income for common
shareholders
|
1,554
|
|
2,733
|
|
-43.1%
|
Earnings per
share
|
0.05
|
|
0.14
|
|
-64.3%
|
Revenues
Revenues for the nine months ended September 30, 2015 increased by $2.21 million, or 7.5%, to $31.44 million from $29.24
million for the same period of last year. This increase in
revenues reflects contributions from our Servo and Security &
Protection segments which were acquired in the second half of 2014
and contributed an aggregate increase of $0.92 million to our revenues as well as growth
in our Hog Farming and Retail segments where revenues increased by
approximately $1.05 million and
$0.24 million year over year.
|
For the Nine
Months Ended September 30,
|
|
2015
|
|
2014
|
|
No. of
Hogs Sold
|
|
Average
Price/Hog ($)
|
|
Sales
($ thousands)
|
|
No. of
Hogs Sold
|
|
Average
Price/Hog ($)
|
|
Sales
($ thousands)
|
Breeder hogs- regular
hogs
|
20,452
|
|
$ 270
|
|
$ 5,514
|
|
21,133
|
|
$ 264
|
|
$ 5,575
|
Market hogs- regular
hogs
|
58,829
|
|
209
|
|
12,314
|
|
63,492
|
|
193
|
|
12,227
|
Market hogs- black
hogs
|
43,570
|
|
222
|
|
9,676
|
|
39,180
|
|
221
|
|
8,654
|
Total Hog
Farming
|
122,851
|
|
224
|
|
27,504
|
|
123,805
|
|
214
|
|
26,456
|
|
|
|
|
|
Kilogram
|
|
Average
Price/kg ($)
|
|
Sales
($ thousands)
|
|
Kilograms
|
|
Average
Price/kg ($)
|
|
Sales
($ thousands)
|
Retail- specialty
black hog
pork products
|
238,282
|
|
$ 5
|
|
$ 1,112
|
|
181,802
|
|
$ 5
|
|
$ 875
|
Revenues for the nine months ended September 30, 2015 from hog farming, which
include sales of regular breeder hogs, regular market hogs, and
black hogs, increased by $1.05
million, or 4.0%, to $27.50
million for the nine months ended September 30, 2015 from $26.46 million for the same period of last year.
The Company sold a total of 122,851 regular breeder hogs, regular
market hogs and black hogs with a blended average selling price of
$224 per hog for the nine months
ended September 30, 2015, compared to
123,805 hogs sold and a blended average selling price of
$214 per hog for the same period of
last year.
Revenues for the nine months ended September 30, 2015 from regular breeder hog sales
decreased by 1.1% to $5.51 million
with the number of regular breeder hogs sold decreasing by 3.2% to
20,452 hogs and the average selling price of regular breeder hogs
increasing by 2.3% to $270 per hog.
Revenues for the nine months ended September
30, 2015 from regular market hog sales increased by 0.7% to
$12.31 million as the number of
regular market hogs sold decreased by 7.3% to 58,829 hogs while the
average selling price of regular market hogs increased by 8.3% to
$209 per hog. Revenues for the nine
months ended September 30, 2015 from
black market hogs increased by 11.8% to $9.68 million with the number of black hogs sold
increasing 11.2% to 43,570 hogs and the average selling price of
black hogs increasing by 0.5% to $222
per hog. We anticipate that as the production of these farmers
reaches capacity, the number of black hogs available for sale will
no longer increase and sales will be more a function of market
conditions, not our capacity.
We sold 238,282 kilograms of specialty black hog pork products
through retail at approximately $5
per kilogram, generating revenues of $1.11
million for the nine months ended September 30, 2015. This compared to 181,802
kilograms sold at approximately $5
per kilogram and revenues of $0.87
million for the same period of last year. These revenues,
combined with the sales of black market hogs, led to $10.79 million in revenues from our black hog
program for the nine months ended September
30, 2015.
Revenues from our servo business increased by $0.24 million, or 15.3%, to $1.83 million for the nine months ended
September 30, 2015 from $1.58 million for the same period of last year.
Revenues from our servo business included $1.44 million from selling electro-hydraulic
servo devices and relevant components and $0.39 million from providing maintenance services
to customers, and accounted for 5.8% of total revenues for the nine
months ended September 30, 2015.
Revenues from our security & protection business increased
by $0.68 million, or 210.5%, to
$1.00 million for the nine months
ended September 30, 2015 from
$0.32 million for the same period of
last year. Revenues from our security & protection business
included $0.58 million from selling
optical fiber invasion alarm systems and $0.42 million from selling education devices and
providing relevant technical support, and accounted for 3.2% of
total revenues for the nine months ended September 30, 2015.
Gross profit
Cost of goods sold decreased by $0.87
million, or 3.5%, to $23.68
million for the nine months ended September 30, 2015 from $24.55 million for the same period of last year.
Cost of goods sold related to hog farming, retail, servo and
security & protection were $31.35
million, $0.83 million,
$1.05 million and $0.45 million, respectively, for the nine months
ended September 30, 2015, compared to
$22.92 million, $0.63 million, $0.92
million and $0.08 million,
respectively, for the same period of last year.
Overall gross profit increased by $3.07
million, or 65.6%, to $7.76
million for the nine months ended September 30, 2015 from $4.69 million for the same period of last year.
Gross profit for hog farming, retail, servo and security &
protection were $6.15 million,
$0.28 million, $0.78 million, and $0.55
million, respectively, for the nine months ended
September 30, 2015, compared to
$3.53 million, $0.25 million, $0.67
million, and $0.24 million,
respectively, for the same period of last year.
Overall gross margin was 24.7%, with gross margins for hog
farming, retail, servo and security & protection segments 22%,
25%, 43% and 55%, respectively, for the nine months ended
September 30, 2015. This compared to
overall gross margin of 16.0%, and gross margins for hog farming,
retail, servo and security & protection segments of 13%, 28%,
42% and 73%, respectively, for the same period of last year.
Operating income
Total operating expenses, including general and administrative
expenses and selling and marketing expenses, increased by
$2.22 million, or 72.2%, to
$5.30 million for the nine months
ended September 30, 2015 from
$3.08 million for the same period of
last year. The increase was primarily the result of our new servo
and security & protection segments as well as a grant of stock
to key employees which generated non-cash compensation expense.
Operating income for the nine months ended September 30, 2015 increased by $0.85 million, or 53.0%, to $2.46 million for the nine months ended
September 30, 2015 from $1.61 million for the same period of last year.
Operating margin for the nine months ended September 30, 2015 was 7.8%, compared to 5.5% for
the same period of last year.
Net income
Net income decreased by $1.13
million, or 42.0%, to $1.56
million for the nine months ended September 30, 2015 from $2.70 million for the same period of last year.
The decrease in net income was mainly due to a decrease in other
income (expense) of $1.93 million,
partially offset by an increase in operating income of $0.85 million. After the deduction of
non-controlling interests, net income attributable to common
shareholders for the nine months ended September 30, 2015 was $1.55 million, or $0.05 per diluted share. This compared to net
income attributable to common shareholders of $2.73 million, $0.14 per diluted share, for the same period of
last year.
Financial Condition
As of September 30, 2015, the
Company had cash and cash equivalents of $49.88 million, compared to $39.12 million at the end of 2014. Working
capital as of September 30, 2015 was
$53.66 million as compared to
$47.52 million at December 31, 2014. Net cash provided by operating
activities in the nine months ended September 30, 2015 was $13.68 million for the nine months ended
September 30, 2015, compared to
$7.94 million for the same period of
last year. Net cash provided by investing activities was
$2.78 million for the nine months
ended September 30, 2015, compared to
net cash used in investing activities of $7.24 million for the same period of last year.
Net cash used in financing activities was $4.14 million for the nine months ended
September 30, 2015, compared to net
cash provided by financing activities of $23.71 million for the same period of last
year.
Company Update
On November 13, 2015, the
Company's wholly foreign-owned subsidiary, Wuhan Aoxin Tianli
Enterprise Investment Management Co., Ltd. ("WFOE"), entered into
an agreement to sell our 88% equity interest in Hubei Hang-ao
Servo-valve Manufacturing Technology Co., Ltd. ("Hang-ao") for a
purchase price of RMB 48.4 million
Yuan (or approximately $7,623,000).
The buyer has paid WFOE RMB 4 million
Yuan (or approximately $630,000) as
an earnest money deposit. The sale is expected to close on or about
December 15, 2015.
On September 21, 2015, the Company
received a letter from The NASDAQ Stock Market notifying the
Company that the minimum bid price of the Company's common shares
was below $1.00 per share for 30
consecutive business days and that the Company was therefore not in
compliance with Marketplace Rule 5450(a)(1). In accordance with
Marketplace Rule 5810(c)(3)(A), we can regain compliance if the
closing bid price of our common shares meets or exceeds $1.00 per
share for at least 10 consecutive business days by March 21, 2016.
If the Company does not regain compliance by March 21, 2016, NASDAQ
will provide written notification to the Company that the common
shares are subject to delisting. The Company is evaluating
available options to resolve the deficiency and regain compliance
with the minimum bid price rule.
On September 9, 2015, our Board of
Directors appointed Ms. Hanying Li
as Chair and Chief Executive Officer of the Company. Ms. Li
replaced Ping Wang who resigned as
the Chairman, CEO, and a Director of the Company on September 3, 2015.
On August 11, 2015, the Company
sold 2 hog farms located in Nanyan Village and Qunyi Village,
Hubei Province to a third party,
Wuhan City Tianjian Agricultural Development Co., Ltd., for
$1.22 million (or RMB 7.5 million), and booked a loss of
$0.79 million from the
transaction.
About Aoxin Tianli Group, Inc.
Aoxin Tianli Group, Inc. (the "Company"), previously known as
Tianli Agritech, Inc., is a diversified company with businesses in
hog farming, manufacturing and marketing of electro-hydraulic
servo-valves, and the development of optical fiber hardware and
software solutions. Under a New Strategic Development Plan adopted
in July 2014, the Company plans to
continue to diversify through targeted investments and acquisitions
in selected high-growth industries such as equipment manufacturing,
optoelectronics, new materials and new energy products,
electromechanics and healthcare devices. The Company is
headquartered in Wuhan City,
Hubei Province.
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.
AOXIN TIANLI
GROUP, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
49,882,630
|
$
|
39,123,869
|
Notes
receivable
|
|
4,533
|
|
16,291
|
Accounts receivable,
net
|
|
1,201,694
|
|
2,237,794
|
Accounts receivable -
related party
|
|
-
|
|
19,875
|
Inventories
|
|
8,422,588
|
|
11,015,763
|
Advances to
suppliers
|
|
2,919,218
|
|
1,051,259
|
Prepaid
expenses
|
|
95,995
|
|
238,875
|
Other receivables,
net
|
|
398,159
|
|
241,666
|
Loan receivable -
related party
|
|
-
|
|
1,629,062
|
Due from related
party
|
|
-
|
|
78,195
|
Restricted
cash
|
|
3,147,723
|
|
-
|
Total Current
Assets
|
|
66,072,540
|
|
55,652,649
|
|
|
|
|
|
Long-term prepaid
expenses, net
|
|
3,172,372
|
|
2,832,996
|
Plant and equipment,
net
|
|
31,162,067
|
|
36,525,169
|
Construction in
progress
|
|
686,065
|
|
710,128
|
Biological assets,
net
|
|
1,384,317
|
|
2,036,823
|
Intangible assets,
net
|
|
5,207,385
|
|
5,795,759
|
|
|
|
|
|
Total
Assets
|
$
|
107,684,746
|
$
|
103,553,524
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Short-term
loans
|
$
|
1,573,861
|
$
|
2,411,012
|
Bank acceptance notes
payable
|
|
6,295,445
|
|
-
|
Accounts payable and
accrued payables
|
|
911,274
|
|
1,506,703
|
Advances from
customers
|
|
145,137
|
|
83,304
|
Advances from
customers - related party
|
|
58,070
|
|
58,451
|
Deferred
income
|
|
329,939
|
|
260,058
|
Special
payables
|
|
207,782
|
|
182,488
|
Other
payables
|
|
2,540,418
|
|
2,991,109
|
Other payable -
related party
|
|
124,451
|
|
180,457
|
Due to related
party
|
|
227,151
|
|
455,232
|
Total Current
Liabilities
|
|
12,413,528
|
|
8,128,814
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
Common stock ($0.001
par value, 100,000,000 shares authorized, 33,203,000 shares issued
and 33,183,000 shares outstanding as of September 30, 2015 and
32,373,000 shares issued and outstanding as of December 31,
2014)
|
|
33,183
|
|
32,373
|
Additional paid in
capital
|
|
64,455,074
|
|
63,022,184
|
Statutory surplus
reserves
|
|
2,532,813
|
|
2,532,813
|
Retained
earnings
|
|
25,659,927
|
|
24,105,472
|
Accumulated other
comprehensive income
|
|
880,852
|
|
4,079,896
|
Stockholders' Equity -
Aoxin Tianli Group Inc. and Subsidiaries
|
|
93,561,849
|
|
93,772,738
|
Noncontrolling
interest
|
|
1,709,369
|
|
1,651,972
|
Total Stockholders'
Equity
|
|
95,271,218
|
|
95,424,710
|
Total Liabilities and
Stockholders' Equity
|
$
|
107,684,746
|
$
|
103,553,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AOXIN TIANLI
GROUP, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
September 30,
|
|
For the Nine Months
Ended
September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
9,456,786
|
$
|
11,476,257
|
$
|
31,417,286
|
$
|
29,237,480
|
Revenues - related
party
|
|
-
|
|
-
|
|
25,306
|
|
-
|
|
|
9,456,786
|
|
11,476,257
|
|
31,442,592
|
|
29,237,480
|
Cost of goods
sold
|
|
6,428,629
|
|
8,843,378
|
|
23,683,594
|
|
24,551,822
|
Gross
profit
|
|
3,028,157
|
|
2,632,879
|
|
7,758,998
|
|
4,685,658
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
1,200,971
|
|
899,475
|
|
4,545,239
|
|
2,517,284
|
Selling
expenses
|
|
228,289
|
|
170,520
|
|
755,325
|
|
561,018
|
Total operating
expenses
|
|
1,429,260
|
|
1,069,995
|
|
5,300,564
|
|
3,078,302
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
1,598,897
|
|
1,562,884
|
|
2,458,434
|
|
1,607,356
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(4,204)
|
|
(188,571)
|
|
(11,770)
|
|
(417,386)
|
Subsidy
income
|
|
44,573
|
|
449,075
|
|
44,573
|
|
468,620
|
Relocation
compensation from farm shutdown
|
|
-
|
|
-
|
|
-
|
|
987,057
|
Loss from disposal of
farms
|
|
(787,964)
|
|
-
|
|
(787,964)
|
|
-
|
Gain from disposal of
construction in progress
|
|
4,302
|
|
-
|
|
4,302
|
|
-
|
Other income
(expense), net
|
|
1,643
|
|
79,422
|
|
(54,653)
|
|
87,535
|
Total other income
(expense)
|
|
(741,650)
|
|
339,926
|
|
(805,512)
|
|
1,125,826
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
857,247
|
|
1,902,810
|
|
1,652,922
|
|
2,733,182
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
-
|
|
-
|
|
88,130
|
|
37,751
|
Net income
(loss)
|
|
857,247
|
|
1,902,810
|
|
1,564,792
|
|
2,695,431
|
Net loss (income)
attributable to noncontrolling interest
|
|
17,757
|
|
(89,584)
|
|
(10,337)
|
|
37,433
|
Net income
attributable to Aoxin Tianli Group Inc. common
stockholders
|
|
875,004
|
|
1,813,226
|
|
1,554,455
|
|
2,732,864
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
|
Unrealized foreign
currency translation adjustment
|
|
(4,149,568)
|
|
24,578
|
|
(3,199,044)
|
|
(212,914)
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss)
|
$
|
(3,274,564)
|
$
|
1,837,804
|
$
|
(1,644,589)
|
$
|
2,519,950
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Aoxin Tianli Group Inc. common stockholders - basic
and diluted:
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding, basic and diluted
|
|
33,183,000
|
|
24,387,167
|
|
32,553,000
|
|
19,338,389
|
|
|
|
|
|
|
|
|
|
Earnings per share -
Basic & diluted
|
$
|
0.03
|
$
|
0.08
|
$
|
0.05
|
$
|
0.14
|
|
|
|
|
|
|
|
|
|
AOXIN TIANLI
GROUP, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
|
|
|
|
|
|
|
|
For the Nine Months
Ended
September 30,
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
Net income
|
$
|
1,564,792
|
$
|
2,695,431
|
Adjustments to
reconcile net income to net cash
|
|
|
|
|
provided by
operating activities:
|
|
|
|
|
Depreciation and
amortization
|
|
2,843,624
|
|
2,659,276
|
Amortization of
prepaid expenses
|
|
237,000
|
|
248,341
|
Amortization of
long-term prepaid expenses
|
|
546,588
|
|
167,488
|
Provision for doubtful
accounts
|
|
147,881
|
|
35,509
|
Subsidy
income
|
|
-
|
|
(449,094)
|
Recovery gain from
inventory valuation
|
|
(85,212)
|
|
-
|
Loss from farm
shutdown
|
|
11,970
|
|
-
|
Loss from disposal of
farms
|
|
787,964
|
|
-
|
Gain from disposal of
construction in progress
|
|
(4,302)
|
|
-
|
Loss from disposal of
biological assets
|
|
167,468
|
|
66,593
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Notes
receivable
|
|
11,557
|
|
(309,159)
|
Accounts
receivable
|
|
980,144
|
|
(184,483)
|
Accounts receivable -
related party
|
|
19,803
|
|
-
|
Inventories
|
|
5,973,348
|
|
2,006,292
|
Advances to
suppliers
|
|
809,572
|
|
565,772
|
Prepaid
expenses
|
|
(117,028)
|
|
(217,440)
|
Other
receivables
|
|
(186,077)
|
|
918,101
|
Long-term prepaid
expenses
|
|
-
|
|
(172,388)
|
Accounts payable and
accrued payables
|
|
(561,178)
|
|
530,941
|
Advances from
customers
|
|
66,684
|
|
102,368
|
Advances from
customers - related party
|
|
1,650
|
|
-
|
Deferred
income
|
|
81,161
|
|
-
|
Special
payables
|
|
32,464
|
|
81,358
|
Other
payables
|
|
(76,764)
|
|
(804,751)
|
Other payables -
related party
|
|
(51,456)
|
|
-
|
Net cash provided by
operating activities
|
|
13,201,653
|
|
7,940,155
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
Cash paid for purchase
of noncontrolling interest
|
|
-
|
|
(1,083,100)
|
Cash paid for
acquisitions
|
|
-
|
|
(6,100,219)
|
Proceeds from disposal
of construction in progress
|
|
4,302
|
|
-
|
Proceeds from disposal
of farms
|
|
1,217,414
|
|
-
|
Proceeds from
collection of loan receivable from related party
|
|
1,623,219
|
|
-
|
Purchase of biological
assets
|
|
(49,894)
|
|
-
|
Purchase of intangible
assets
|
|
(584)
|
|
-
|
Purchase of plant and
equipment
|
|
(14,256)
|
|
(58,932)
|
Net cash provided by
(used in) investing activities
|
|
2,780,201
|
|
(7,242,251)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
Increase at restricted
cash
|
|
(3,246,437)
|
|
-
|
Proceeds from capital
contribution
|
|
-
|
|
22,760,000
|
Due to (from) related
party
|
|
(112,760)
|
|
627,068
|
Repayment of
short-term loans
|
|
(2,402,363)
|
|
(2,082,757)
|
Proceeds from
short-term loans
|
|
1,623,219
|
|
2,408,188
|
Net cash provided by
(used in) financing activities
|
|
(4,138,341)
|
|
23,712,499
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH
|
|
(1,084,752)
|
|
39,960
|
|
|
|
|
|
NET INCREASE IN
CASH
|
|
10,758,761
|
|
24,450,363
|
|
|
|
|
|
CASH, BEGINNING OF
PERIOD
|
|
39,123,869
|
|
10,087,694
|
|
|
|
|
|
CASH, END OF
PERIOD
|
$
|
49,882,630
|
$
|
34,538,057
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURES:
|
|
|
|
|
Cash paid during the
period for:
|
|
|
|
|
Interest
paid
|
$
|
128,659
|
$
|
478,123
|
Income tax
paid
|
$
|
88,130
|
$
|
37,751
|
|
|
|
|
|
NON-CASH
TRANSACTIONS OF INVESTING AND FINANCING ACTIVITIES
|
|
|
Property purchase with
prepayments made through due from related party
|
$
|
-
|
$
|
4,723,858
|
Acquisition payments
made through issuances of shares
|
$
|
-
|
$
|
9,909,742
|
Prepayments for raw
material purchases made with bank acceptance notes
|
$
|
6,492,874
|
$
|
-
|
Shares issued to
employees
|
$
|
1,433,700
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/aoxin-tianli-group-inc-reports-third-quarter-of-2015-financial-results-300178662.html
SOURCE Aoxin Tianli Group, Inc.