WUHAN CITY, China, March 14,
2016 /PRNewswire/ -- Aoxin Tianli Group, Inc. (NASDAQ:ABAC)
("Aoxin Tianli" or the "Company"), a leading producer of
breeder hogs, market hogs and black hogs, as well as specialty
processed black hog pork products sold through retail and the
internet, today announced its financial results for the fourth
quarter and fiscal year ended December 31,
2015.
Ms. Hanying Li, Chairwoman and
Chief Executive Officer of Aoxin Tianli Group, Inc., commented,
"Our fourth quarter financial results continued to be negatively
impacted by weakening macro conditions as both the number of hogs
sold and average selling prices decreased on a year-over-year basis
and led to a 20.8% decrease in revenues for our hog farming
business. While we are disappointed with the declines in revenues
in recent quarters, we are taking steps to manage our costs and
expenses including headcount reduction and stringent cost controls.
As a result, both our margins and net profit increased in the
fourth quarter."
Ms. Li continued, "As we are re-focusing our business on hog
farming and taking steps to sell our specialty black hog pork
products through retail channels and the internet, we sold our
security and protection business and initiated steps to sell the
underperforming servo business during the fourth quarter. Looking
ahead, with continuing macro headwinds and challenges facing the
hog industry, we remain cautious for the near term while actively
seeking new growth opportunities along the hog farming/ pork value
chain."
Three Months Ended December 31,
2015 Financial Results
Revenues
|
For the Three
Months Ended December 31,
|
($ thousands,
except per share data)
|
2015
|
|
2014
|
|
%
Change
|
Revenues
|
$
8,752
|
|
$
11,203
|
|
-21.9%
|
Hog farming
|
8,399
|
|
10,747
|
|
-21.8%
|
Retail
|
352
|
|
456
|
|
-22.8%
|
Gross
margin
|
25.9%
|
|
16.3%
|
|
9.5%
|
Operating
margin
|
13.0%
|
|
8.1%
|
|
4.9%
|
Net income
|
2,871
|
|
2,019
|
|
42.2%
|
Net income from
continuing operations
|
1,275
|
|
1,044
|
|
22.1%
|
Gain (loss) from
operations and disposal of discontinued component
|
1,596
|
|
975
|
|
63.8%
|
Net income for common
shareholders
|
2,935
|
|
1,950
|
|
50.5%
|
Earnings per
share
|
0.09
|
|
0.07
|
|
35.2%
|
Continuing
operations
|
0.04
|
|
0.04
|
|
7.8%
|
Discontinued
components
|
0.05
|
|
0.03
|
|
66.8%
|
Revenues for the three months ended December 31, 2015 decreased by $2.45 million, or 21.9%, to $8.75 million from $11.20
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.
Revenues from hog farming, which includes sales of regular
breeder hogs, regular market hogs, and black hogs, decreased by
$2.35 million, or 21.8%, to
$8.40 million for the three months
ended December 31, 2015 from
$10.75 million for the same period of
last year. The Company sold a total of 38,000 regular breeder hogs,
regular market hogs and black hogs with a blended average selling
price of $221 per hog during the
three months ended December 31, 2015,
compared to 46,587 hogs sold and a blended average selling price of
$231 per hog for the same period of
last year.
|
For the Three
Months Ended December 31,
|
|
2015
|
|
2014
|
|
No. of Hogs
Sold
|
|
Average
Price/Hog ($)
|
|
Sales
($ thousands)
|
|
No. of Hogs
Sold
|
|
Average
Price/Hog ($)
|
|
Sales
($ thousands)
|
Breeder hogs- regular
hogs
|
5,897
|
|
$
255
|
|
$
1,505
|
|
7,101
|
|
$
267
|
|
$
1,893
|
Market hogs- regular
hogs
|
17,854
|
|
209
|
|
3,734
|
|
20,203
|
|
208
|
|
4,200
|
Market hogs- black
hogs
|
14,249
|
|
222
|
|
3,160
|
|
19,283
|
|
241
|
|
4,654
|
Total Hog
Farming
|
38,000
|
|
221
|
|
8,399
|
|
46,587
|
|
231
|
|
10,747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kilogram
|
|
Average
Price/kg ($)
|
|
Sales
($ thousands)
|
|
Kilogram
|
|
Average
Price/kg ($)
|
|
Sales
($ thousands)
|
Retail- specialty
black hog pork products
|
51,872
|
|
$
7
|
|
$
352
|
|
131,312
|
|
$
3
|
|
$
456
|
Revenues for the three months ended December 31, 2015 from regular breeder hog sales
decreased by 20.5% to $1.51 million
with the number of regular breeder hogs sold decreasing by 17.0% to
5,897 hogs and the average selling price of regular breeder hogs
decreasing by 4.5% to $255 per hog.
Revenues for the three months ended December
31, 2015 from regular market hog sales decreased by 11.1% to
$3.73 million as the number of
regular market hogs sold decreased by 11.6% to 17,854 hogs while
the average selling price of regular market hogs increased by 0.5%
to $209 per hog. Revenues for the
three months ended December 31, 2015
from black market hogs decreased by 32.1% to $3.16 million with the number of black hogs sold
decreasing by 26.1% to 14,249 hogs and the average selling price of
black hogs decreasing by 7.9% to $222
per hog.
We sold 51,872 kilograms of specialty black hog pork products
through retail at approximately $7
per kilogram, generating revenues of $0.35
million for the three months ended December 31, 2015. This compared to 131,312
kilograms sold at approximately $3
per kilogram and revenues of $0.46
million for the same period of last year. These revenues,
combined with the sales of black market hogs, led to $3.51 million in revenues from our black hog
program for the three months ended December
31, 2015, compared to $5.11
million for the same period of last year.
The results of operations of Hang-ao and OV Orange and their
wholly owned subsidiaries, were reclassified as discontinued
operations in the Company's financial statements for the three
months ended December 31, 2015 and
2014 based on the Company's decision to focus on the hog industry
and sell both subsidiaries and relevant businesses in the near
future. OV Orange was sold on December 29,
2015. We had not yet found a buyer for Hang-ao as of
today.
Gross profit
Cost of goods sold decreased by $2.89
million, or 30.8%, to $6.49
million for the three months ended December 31, 2015 from $9.37 million for the same period of last year.
Cost of goods sold for hog farming decreased by $2.73 million, or 30.5%, to $6.24 million for the three months ended
December 31, 2015 from $8.97 million for the same period of last year,
benefitting from a reduction in the purchase prices for our feeds
and the sale of 2 of our farms. Cost of goods sold for retail
decreased by $0.15 million, or 37.9%,
to $0.25 million for the three months
ended December 31, 2015 from
$0.40 million for the same period of
last year.
Overall gross profit increased by $0.44
million, or 23.8%, to $2.27
million for the three months ended December 31, 2015 from $1.83 million for the same period of last year,
mainly due to a decrease in cost of goods sold for hog farming as
aforementioned.
Gross profits for hog farming and retail were $2.16 million and $0.10
million, respectively, for the three months ended
December 31, 2015, compared to
$1.78 million and $0.05 million, respectively, for the same period
of last year.
Overall gross margin was 25.9%, with gross margins for hog
farming and retail of 25.8% and 29.0%, respectively, for the three
months ended December 31, 2015. This
compared to overall gross margin of 16.3%, and gross margins for
hog farming and retail of 16.5% and 11.7%, 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
$0.21 million, or 22.4%, to
$1.12 million for the three months
ended December 31, 2015 from
$0.92 million for the same period of
last year.
Operating income for the three months ended December 31, 2015 increased by $0.23 million, or 25.2%, to $1.14 million from $0.91
million for the same period of last year. Operating margin
for the three months ended December 31,
2015 was 13.0%, compared to 8.1% for the same period of last
year.
Net income
Net income increased by $0.85
million, or 42.2%, to $2.87
million for the three months ended December 31, 2015 from $2.02 million for the same period of last year.
Our net income from continuing operations, including both hog
farming and retail segments, increased by $0.23 million. The operating results of our
discontinued operations, Hang-ao and OV Orange, decreased
significantly from net income of $0.97
million for the fourth quarter of 2014 to net loss of
$0.55 million for the same period of
2015, which is partially offset by a gain of $2.14 million from the disposal of OV Orange
during the fourth quarter of 2015. After the deduction of
non-controlling interests, net income attributable to common
shareholders for the three months ended December 31, 2015 was $2.94 million, or $0.09 per diluted share. This compared to net
income attributable to common shareholders of $1.95 million, $0.07 per diluted share, for the same period of
last year.
Fiscal Year 2015 Financial Results
|
For the Twelve
Months Ended December 31,
|
($ thousands,
except per share data)
|
2015
|
|
2014
|
|
%
Change
|
Revenues
|
$
37,368
|
|
$
38,533
|
|
-3.0%
|
Hog farming
|
35,904
|
|
37,203
|
|
-3.5%
|
Retail
|
1,464
|
|
1,331
|
|
10.0%
|
Gross
margin
|
23.3%
|
|
14.6%
|
|
8.7%
|
Operating
margin
|
9.7%
|
|
4.8%
|
|
4.9%
|
Net income
|
4,436
|
|
4,715
|
|
-5.9%
|
Net income from
continuing operations
|
2,982
|
|
2,653
|
|
12.4%
|
Gain (loss) from
operations and disposal of discontinued component
|
1,454
|
|
2,062
|
|
-29.5%
|
Net income for common
shareholders
|
4,490
|
|
4,683
|
|
-4.1%
|
Earnings per
share
|
0.14
|
|
0.21
|
|
-36.8%
|
Continuing
operations
|
0.09
|
|
0.12
|
|
-25.0%
|
Discontinued
components
|
0.04
|
|
0.09
|
|
-55.6%
|
Revenues
Revenues for the twelve months ended December 31, 2015 decreased by $1.17 million, or 3.0%, to $37.37 million from $38.53
million for the same period of last year. This decrease in
revenues was mainly due to fewer regular hogs sold during 2015 and
partially offset by an increase in average selling prices of
regular hogs and an increase in sales from retail. The decrease in
regular hogs sold in 2015 reflected the impact from the sale of 2
hog farms in the third quarter of 2015 and the closure of another
farm in 2014.
|
For the Twelve
Months Ended December 31,
|
|
2015
|
|
2014
|
|
No. of Hogs
Sold
|
|
Average
Price/Hog ($)
|
|
Sales
($ thousands)
|
|
No. of Hogs
Sold
|
|
Average
Price/Hog ($)
|
|
Sales
($ thousands)
|
Breeder hogs- regular
hogs
|
26,349
|
|
$
266
|
|
$
7,019
|
|
28,234
|
|
$
264
|
|
$
7,468
|
Market hogs- regular
hogs
|
76,683
|
|
209
|
|
16,048
|
|
83,695
|
|
196
|
|
16,428
|
Market hogs- black
hogs
|
57,819
|
|
222
|
|
12,837
|
|
58,463
|
|
228
|
|
13,308
|
Total Hog
Farming
|
160,851
|
|
223
|
|
35,904
|
|
170,392
|
|
218
|
|
37,203
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kilogram
|
|
Average
Price/kg ($)
|
|
Sales
($ thousands)
|
|
Kilograms
|
|
Average
Price/kg ($)
|
|
Sales
($ thousands)
|
Retail- specialty
black hog pork products
|
290,154
|
|
$
5
|
|
$
1,464
|
|
313,114
|
|
$
4
|
|
$
1,331
|
Revenues for the twelve months ended December 31, 2015 from hog farming, which include
sales of regular breeder hogs, regular market hogs, and black hogs,
decreased by $1.30 million, or 3.5%,
to $35.90 million from $37.20 million for the same period of last year.
The Company sold a total of 160,851 regular breeder hogs, regular
market hogs and black hogs with a blended average selling price of
$223 per hog for the twelve months
ended December 31, 2015, compared to
170,392 hogs sold and a blended average selling price of
$218 per hog for the same period of
last year.
Revenues for the twelve months ended December 31, 2015 from regular breeder hog sales
decreased by 6.0% to $7.02 million
with the number of regular breeder hogs sold decreasing by 6.7% to
26,349 hogs and the average selling price of regular breeder hogs
increasing by 0.8% to $266 per hog.
Revenues for the twelve months ended December 31, 2015 from regular market hog sales
decreased by 2.3% to $16.05 million
as the number of regular market hogs sold decreased by 8.4% to
76,683 hogs while the average selling price of regular market hogs
increased by 6.6% to $209 per hog.
Revenues for the twelve months ended December 31, 2015 from black market hogs
decreased by 3.5% to $12.84 million
with the number of black hogs sold decreasing by 1.1% to 57,819
hogs and the average selling price of black hogs decreasing by 2.6%
to $222 per hog.
We sold 290,154 kilograms of specialty black hog pork products
through retail at approximately $5
per kilogram, generating revenues of $1.46
million for the twelve months ended December 31, 2015. This compared to 313,114
kilograms sold at approximately $4
per kilogram and revenues of $1.33
million for the same period of last year. These revenues,
combined with the sales of black market hogs, led to $14.30 million in revenues from our black hog
program for the twelve months ended December
31, 2015, compared to $14.64
million for the same period of last year.
The results of operations of Hang-ao and OV Orange and their
wholly owned subsidiaries, were reclassified as discontinued
operations in the Company's financial statements for the year ended
December 31, 2015 and 2014 based on
the Company's decision to focus on the hog industry and sell both
subsidiaries and relevant businesses in the near future. OV Orange
was sold on December 29, 2015. We had
not yet found a buyer for Hang-ao as of today.
Gross profit
Cost of goods sold decreased by $4.26
million, or 12.9%, to $28.67
million for the twelve months ended December 31, 2015 from $32.93 million for the same period of last year.
Cost of goods sold for hog farming decreased by $4.31 million, or 13.5%, to $27.59 million for the twelve months ended
December 31, 2015 from $31.89 million for the same period of last year,
benefitting from a reduction in the purchase prices for our feeds
and the sale of 2 of our farms. Cost of goods sold for retail
increased by $0.05 million, or 4.9%,
to $1.08 million for the twelve
months ended December 31, 2015 from
$1.03 million for the same period of
last year.
Overall gross profit increased by $3.09
million, or 55.1%, to $8.69
million for the twelve months ended December 31, 2015 from $5.61 million for the same period of last year,
mainly due to a decrease in cost of goods sold for hog farming as
aforementioned.
Gross profits for hog farming and retail were $8.32 million and $0.38
million, respectively, for the twelve months ended
December 31, 2015, compared to
$5.31 million and $0.30 million, respectively, for the same period
of last year.
Overall gross margin was 23.3%, with gross margins for hog
farming and retail of 23% and 26%, respectively, for the twelve
months ended December 31, 2015. This
compared to overall gross margin of 14.6%, and gross margins for
hog farming and retail of 14% and 22%, 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
$1.30 million, or 34.5%, to
$5.06 million for the twelve months
ended December 31, 2015 from
$3.76 million for the same period of
last year. The increase was primarily the result of a grant of
stock to key employees which generated non-cash compensation
expense of approximately $0.80
million, as well as increases of bad debt expense, guarantee
service fees related to issuance of our bank acceptance notes, and
payroll expenses of $0.18 million,
$0.13 million, and $0.18 million, respectively.
Operating income for the twelve months ended December 31, 2015 increased by $1.79 million, or 97.2%, to $3.63 million from $1.84
million for the same period of last year. Operating margin
for the twelve months ended December 31,
2015 was 9.7%, compared to 4.8% for the same period of last
year.
Net income
Net income decreased by $0.28
million, or 5.9%, to $4.44
million for the twelve months ended December 31, 2015 from $4.71 million for the same period of last year.
Our net income from continuing operations, including both hog
farming and retail segments, increased by $0.33 million. The operating results of our
discontinued operations, Hang-ao and OV Orange, decreased
significantly from net income of $2.22
million for 2014 to net loss of $0.69
million for 2015, which is partially offset by a gain of
$2.14 million from the disposal of OV
Orange during the year ended December 31,
2015. After the deduction of non-controlling interests, net
income attributable to common shareholders for the twelve months
ended December 31, 2015 was
$4.49 million, or $0.14 per diluted share. This compared to net
income attributable to common shareholders of $4.68 million, $0.21 per diluted share, for the same period of
last year.
Financial Condition
As of December 31, 2015, the
Company had cash and cash equivalents of $49.66 million, compared to $39.12 million at the end of 2014. Working
capital as of December 31, 2015 was
$63.98 million as compared to
$59.24 million at December 31, 2014. Net cash provided by operating
activities in the twelve months ended December 31, 2015 was $21.25 million for the twelve months ended
December 31, 2015, compared to
$12.00 million for the same period of
last year. Net cash provided by investing activities was
$3.98 million for the twelve months
ended December 31, 2015, compared to
net cash used in investing activities of $11.82 million for the same period of last year.
Net cash used in financing activities was $11.98 million for the twelve months ended
December 31, 2015, compared to net
cash provided by financing activities of $28.77 million for the same period of last
year.
Company Update
On December 29, 2015, the Company
announced that it executed an equity transfer agreement (the
"Equity Transfer Agreement") and sold the its 95% equity interest
in Wuhan Optical Valley Orange Technology Co., Ltd. ("OV Orange")
to a group of third party investors (collectively, the
"Transferees") for a total consideration of RMB 47.5 million (approximately $7.3 million).
On December 3, 2015, The Company
signed a strategic cooperation framework agreement with Beijing
Huinongfeng Biological Technology Co., Ltd., a Beijing-based production-to-consumer ("P2C")
e-commerce company, for the construction of a new pork production
facility and a food processing plant and the sale of the Company's
pork products through Huinongfeng's online portal www.inongfeng.com
.
On November 13, 2015, the
Company's wholly foreign-owned subsidiary, Wuhan Aoxin Tianli
Enterprise Investment Management Co., Ltd. ("WFOE"), entered into
an agreement (the "Agreement") to sell its 88% equity interest in
Hubei Hang-ao Servo-valve Manufacturing Technology Co., Ltd.
("Hang-ao") for a purchase price of RMB
48.4 million (or
approximately $7.5 million). The
Agreement was terminated on December 25,
2015 due to the inability to obtain proper land use permits
and deeds for Hang-ao's properties.
Earnings Conference Call
Aoxin Tianli will host an earnings conference call and live
webcast covering its fourth quarter and fiscal year 2015 financial
results at 8:00 a.m. ET on
March 15, 2016, which is 8:00 p.m. in Beijing on March 15,
2016. To attend the call, please use the information below
for either dial-in access or webcast access. When prompted on
dial-in, ask for "AoxinTianli / ABAC".
Conference
Call
|
|
Date:
|
Tuesday, March 15,
2016
|
Time:
|
8:00 am ET,
U.S.
|
U.S.
Dial-in:
|
+1
877-317-6789
|
International
Dial-in:
|
+1
412-317-6789
|
Conference
ID:
|
Aoxin Tianli /
ABAC
|
Webcast
Link:
|
http://mms.prnasia.com/ABAC/20160315/default.aspx
|
For those unable to participate, an audio replay of the call
will be available beginning approximately one hour after the end of
the live call through March 22, 2016.
The audio replay can be accessed by dialing +1-877-344-7529 within
the United States or
+1-412-317-0088 internationally, and entering access ID No.
10082543.
About Aoxin Tianli Group, Inc.
Aoxin Tianli Group, Inc. (the "Company"), previously known as
Tianli Agritech, Inc., is in the business of breeding, raising and
selling breeder and market hogs in China. The Company also sells specialty
processed black hog pork products through supermarkets and other
retail outlets, as well as the internet. The Company also owns an
88% equity interest in Hubei Hang-ao Servo-valve Manufacturing
Technology Co., Ltd. ("Hang-ao"), which the Company acquired in
July 2014 and currently is seeking to
sell.
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.
For more information, please contact:
Tina Xiao
Weitian Group LLC
Phone: +1-917-609-0333
Email: tina.xiao@weitian-ir.com
AOXIN TIANLI
GROUP, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
December
31,
|
|
|
2015
|
|
2014
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
49,656,897
|
$
|
39,123,869
|
Accounts receivable,
net
|
|
292,684
|
|
102,162
|
Inventories
|
|
5,656,165
|
|
8,827,016
|
Advances to
suppliers, net
|
|
7,823,138
|
|
635,930
|
Prepaid
expenses
|
|
816,646
|
|
238,875
|
Other receivables,
net
|
|
312,161
|
|
131,414
|
Due from related
party
|
|
-
|
|
78,195
|
Restricted
cash
|
|
9,242,571
|
|
-
|
Assets from
discontinued operations
|
|
7,926,437
|
|
18,232,659
|
Total Current
Assets
|
|
81,726,699
|
|
67,370,120
|
|
|
|
|
|
Long-term prepaid
expenses, net
|
|
1,389,144
|
|
1,584,048
|
Plant and equipment,
net
|
|
23,410,803
|
|
29,302,856
|
Construction in
progress
|
|
-
|
|
50,664
|
Biological assets,
net
|
|
1,580,847
|
|
2,036,823
|
Intangible assets,
net
|
|
2,802,948
|
|
3,209,013
|
|
|
|
|
|
Total
Assets
|
$
|
110,910,441
|
$
|
103,553,524
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Short-term
loans
|
$
|
-
|
$
|
2,411,012
|
Bank acceptance notes
payable
|
|
12,323,428
|
|
-
|
Accounts payable and
accrued payables
|
|
19,655
|
|
3,528
|
Advances from
customers
|
|
-
|
|
45,159
|
Other
payables
|
|
3,041,085
|
|
2,972,674
|
Due to related
party
|
|
-
|
|
48,926
|
Due to related
party
|
|
2,359,696
|
|
2,647,515
|
Total Current
Liabilities
|
|
17,743,864
|
|
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 December 31, 2015 and
32,373,000 shares issued and outstanding as of December 31,
2014)
|
|
33,183
|
|
32,373
|
Additional paid in
capital
|
|
61,743,410
|
|
63,022,184
|
Statutory surplus
reserves
|
|
2,457,180
|
|
2,532,813
|
Retained
earnings
|
|
28,595,306
|
|
24,105,472
|
Accumulated other
comprehensive income
|
|
(1,018,861)
|
|
4,079,896
|
Stockholders' Equity -
Aoxin Tianli Group Inc. and Subsidiaries
|
|
91,810,218
|
|
93,772,738
|
Noncontrolling
interest
|
|
1,356,359
|
|
1,651,972
|
Total Stockholders'
Equity
|
|
93,166,577
|
|
95,424,710
|
Total Liabilities and
Stockholders' Equity
|
$
|
110,910,441
|
$
|
103,553,524
|
AOXIN TIANLI
GROUP, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
For the Year Ended
December 31,
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
37,367,956
|
$
|
38,533,474
|
Cost of goods
sold
|
|
28,670,968
|
|
32,926,459
|
Gross
profit
|
|
8,696,988
|
|
5,607,015
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
General and
administrative expenses
|
|
4,385,741
|
|
2,995,675
|
Selling
expenses
|
|
677,195
|
|
768,420
|
Total operating
expenses
|
|
5,062,936
|
|
3,764,095
|
|
|
|
|
|
Income (loss) from
operations
|
|
3,634,052
|
|
1,842,920
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
Interest income
(expense)
|
|
103,228
|
|
(459,987)
|
Subsidy
income
|
|
3,532
|
|
52,578
|
Relocation
compensation from farm shutdown
|
|
-
|
|
987,459
|
Loss from disposal of
hog farms
|
|
(779,337)
|
|
-
|
Gain from disposal of
construction in progress
|
|
4,254
|
|
-
|
Other income
(expense), net
|
|
16,363
|
|
229,773
|
Total other
expenses
|
|
(651,960)
|
|
809,823
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
2,982,092
|
|
2,652,743
|
|
|
|
|
|
Income
taxes
|
|
-
|
|
-
|
Net income (loss)
from continuing operations
|
|
2,982,092
|
|
2,652,743
|
|
|
|
|
|
Discontinued
operations:
|
|
|
|
|
Gain (loss) from
operations of discontinued component, net of taxes
|
|
(690,385)
|
|
2,061,860
|
Gain from disposal of
discontinued component, net of taxes
|
|
2,144,226
|
|
-
|
|
|
|
|
|
Net income
|
|
4,435,933
|
|
4,714,603
|
Net loss (income)
attributable to noncontrolling interest
|
|
53,901
|
|
(31,472)
|
Net income (loss)
attributable to Aoxin Tianli Group Inc. common
stockholders
|
|
4,489,834
|
|
4,683,131
|
|
|
|
|
|
Other comprehensive
income (loss):
|
|
|
|
|
Unrealized foreign
currency translation adjustment
|
|
(5,553,102)
|
|
13,625
|
|
|
|
|
|
Comprehensive income
(loss)
|
$
|
(1,063,268)
|
$
|
4,696,756
|
|
|
|
|
|
Earnings (losses) per
share attributable to Aoxin Tianli Group Inc. common stockholders -
basic and diluted:
|
|
|
|
|
Weighted-average
shares outstanding, basic and diluted
|
|
33,115,500
|
|
21,828,292
|
|
|
|
|
|
Continuing operations
- Basic & diluted
|
$
|
0.09
|
$
|
0.12
|
Discontinued
operations - Basic & diluted
|
$
|
0.04
|
$
|
0.09
|
AOXIN TIANLI
GROUP, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
For the Year Ended
December 31,
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
Net income from
continuing operations
|
$
|
2,982,092
|
$
|
2,496,333
|
Adjustments to
reconcile net income to net cash
|
|
|
|
|
provided
by operating activities:
|
|
|
|
|
Depreciation and
amortization
|
|
2,693,265
|
|
3,298,038
|
Amortization of
prepaid expenses
|
|
288,857
|
|
397,321
|
Amortization of
long-term prepaid expenses
|
|
113,308
|
|
114,887
|
Bad debt expense
(Recovery gain from bad debt expense)
|
|
113,944
|
|
(65,061)
|
Stock-based
compensation
|
|
822,022
|
|
18,700
|
Recovery gain from
inventory valuation
|
|
(84,279)
|
|
-
|
Loss from farm
shutdown
|
|
11,838
|
|
-
|
Loss from disposal of
farms
|
|
779,337
|
|
-
|
Gain from disposal of
construction in progress
|
|
(4,254)
|
|
-
|
Loss from disposal of
fixed assets
|
|
-
|
|
9,977
|
Loss from disposal of
biological assets
|
|
264,227
|
|
82,034
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(198,705)
|
|
157,546
|
Inventories
|
|
7,578,664
|
|
2,603,206
|
Advances to
suppliers
|
|
506,633
|
|
968,440
|
Prepaid
expenses
|
|
(269,289)
|
|
(348,734)
|
Other
receivables
|
|
(195,345)
|
|
1,104,126
|
Long-term prepaid
expenses
|
|
-
|
|
(100,111)
|
Accounts payable and
accrued payables
|
|
17,274
|
|
(45,110)
|
Advances from
customers
|
|
(44,504)
|
|
45,125
|
Other
payables
|
|
613,000
|
|
(36,846)
|
Total
adjustments
|
|
13,005,993
|
|
8,203,538
|
Net cash provided by
operating activities from continuing operations
|
|
15,988,085
|
|
10,699,871
|
Net cash provided by
operating activities from discontinued operations
|
|
5,257,949
|
|
1,302,525
|
Net cash provided by
operating activities
|
|
21,246,034
|
|
12,002,396
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
Cash paid for purchase
of noncontrolling interest
|
|
-
|
|
(1,083,100)
|
Proceeds from disposal
of fixed assets
|
|
-
|
|
7,814
|
Proceeds from disposal
of construction in progress
|
|
4,254
|
|
-
|
Proceeds from disposal
of farms
|
|
1,204,084
|
|
-
|
Purchase of plant and
equipment
|
|
(2,741)
|
|
(8,524,889)
|
Net cash provided by
(used in) investing activities from continuing
operations
|
|
1,205,597
|
|
(9,600,175)
|
Net cash provided by
(used in) investing activities from discontinued
operations
|
|
2,769,826
|
|
(2,215,691)
|
Net cash provided by
(used in) investing activities
|
|
3,975,423
|
|
(11,815,866)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
Increase at restricted
cash
|
|
(9,632,674)
|
|
-
|
Proceeds from capital
contribution
|
|
-
|
|
33,800,000
|
Due to (from) related
party
|
|
29,036
|
|
(168,076)
|
Repayment of
short-term loans
|
|
(2,376,060)
|
|
(6,348,483)
|
Proceeds from
short-term loans
|
|
-
|
|
2,409,168
|
Net cash provided by
(used in) financing activities from continuing
operations
|
|
(11,979,698)
|
|
29,692,609
|
Net cash used in
financing activities from discontinued operations
|
|
-
|
|
(924,744)
|
Net cash provided by
(used in) financing
activities
|
|
(11,979,698)
|
|
28,767,865
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH
|
|
(2,708,731)
|
|
81,780
|
|
|
|
|
|
NET INCREASE IN
CASH
|
|
10,533,028
|
|
29,036,175
|
|
|
|
|
|
CASH, BEGINNING OF
PERIOD
|
|
39,123,869
|
|
10,087,694
|
|
|
|
|
|
CASH, END OF
PERIOD
|
$
|
49,656,897
|
$
|
39,123,869
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURES:
|
|
|
|
|
Cash paid during the
period for:
|
|
|
|
|
Interest
paid
|
$
|
50,043
|
$
|
599,815
|
Income tax
paid
|
$
|
-
|
$
|
-
|
|
|
|
|
|
NON-CASH
TRANSACTIONS OF INVESTING AND FINANCING ACTIVITIES
|
|
|
Acquisition payments
made through issuances of shares
|
$
|
-
|
$
|
9,909,742
|
Prepayments for raw
material purchases made with bank acceptance notes
|
$
|
12,843,565
|
$
|
-
|
Shares issued to
employees
|
$
|
1,433,700
|
$
|
-
|
Receivables used to
offset the selling price in OV Orange disposal
transaction
|
$
|
1,105,174
|
$
|
-
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/aoxin-tianli-group-inc-reports-fourth-quarter-and-fiscal-year-2015-financial-results-300235542.html
SOURCE Aoxin Tianli Group, Inc.