WUHAN CITY, China, Nov. 10,
2016 /PRNewswire/ --
- Company to Host Earnings
Conference Call on Friday, November 11,
2016 at 8:00 a.m. ET
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 outlets and the internet, with headquarters in
Wuhan City, Hubei Province, China, today announced its financial results
for the third quarter ended September 30,
2016.
"As we previously announced, our hog farms in Wuhan City and some of the independently
operated black hog farms in Enshi Prefecture suffered various
levels of damage as torrential rains in July caused devastating
flooding in Southern China with
Wuhan being one of the hardest hit
areas. Our third quarter results, with significant decreases in
both revenues and margins, resulting in a net loss from continuing
operations, reflected the impact of floods on our inventories and
biological assets of $0.67 million,
and related non-operating expenses of $1.70
million," said Mr. Wocheng Liu, Chairman and Co-Chief
Executive Officer of Aoxin Tianli. "Despite the challenges caused
by the floods, the momentum for our retail business remained
strong, with revenues increasing by 65.8% year-over-year. We also
started to sell our specialty black hog pork products through
third-party online stores on Taobao.com, Meituan.com and the
popular mobile app platform Wechat, as well as on leading
group-buying web portal Ixiaop.com, setting us up for further
growth in coming quarters."
Three Months Ended September 30,
2016 Financial Results
Revenues
|
For the Three
Months Ended September 30,
|
|
($ thousands,
except per share data)
|
2016
|
|
2015
|
|
%
Change
|
|
Revenues
|
$7,841
|
|
$ 9,177
|
|
-14.5%
|
|
Hog farming
|
7,326
|
|
8,866
|
|
-17.4%
|
|
Retail
|
515
|
|
311
|
|
65.8%
|
|
Gross
margin
|
10.9%
|
|
31.1%
|
|
-20.1%
|
|
Operating
margin
|
-1.1%
|
|
20.1%
|
|
NM
|
|
Net income
(loss)
|
(2,833)
|
|
857
|
|
NM
|
|
Net income (loss) from continuing operations
|
(1,783)
|
|
1,103
|
|
NM
|
|
Gain (loss) from operations of discontinued component
|
(1,050)
|
|
(246)
|
|
NM
|
|
Net income for common
shareholders
|
(2,707)
|
|
875
|
|
NM
|
|
Earnings (loss) per
share
|
(0.35)
|
|
0.10
|
|
NM
|
|
Continuing operations
|
(0.22)
|
|
0.13
|
|
NM
|
|
Discontinued components
|
(0.13)
|
|
(0.03)
|
|
NM
|
Revenues for the third quarter of 2016 decreased by $1.34 million, or 14.5%, to $7.84 million from $9.18
million for the same period of last year. The decrease in
revenues reflected the impact from the sale of two hog farms in the
third quarter of 2015 and the impact of the floods in July and was
partially offset by an increase in the average selling prices for
black hogs.
Revenues from hog farming, which includes sales of regular
breeder hogs, regular market hogs, and black hogs, decreased by
$1.54 million, or 17.4%, to
$7.33 million for the third quarter
of 2016 from $8.87 million for the
same period of last year. The Company sold a total of 30,500
regular breeder hogs, regular market hogs and black hogs with a
blended average selling price of $240
per hog during the third quarter of 2016, compared to 36,265 hogs
sold and a blended average selling price of $244 per hog for the same period of last
year.
|
For the Three
Months Ended September 30,
|
|
2016
|
|
2015
|
|
No. of
Hogs Sold
|
|
Average
Price/Hog ($)
|
|
Sales
($ thousands)
|
|
No. of
Hogs Sold
|
|
Average
Price/Hog ($)
|
|
Sales
($ thousands)
|
|
Breeder hogs- regular
hogs
|
3,660
|
|
$248
|
|
$ 909
|
|
6,078
|
|
$ 276
|
|
$ 1,677
|
|
Market hogs- regular
hogs
|
14,229
|
|
221
|
|
3,151
|
|
16,830
|
|
247
|
|
4,154
|
|
Market hogs- black
hogs
|
12,611
|
|
259
|
|
3,266
|
|
13,357
|
|
227
|
|
3,034
|
|
Total Hog
Farming
|
30,500
|
|
240
|
|
7,326
|
|
36,265
|
|
244
|
|
8,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kilogram
|
|
Average
Price/kg($)
|
|
Sales
($ thousands)
|
|
Kilogram
|
|
Average
Price/kg ($)
|
|
Sales
($ thousands)
|
|
Retail- specialty
black hog pork products
|
108,390
|
|
$ 5
|
|
$ 515
|
|
56,195
|
|
$ 6
|
|
$ 311
|
Revenues for the third quarter of 2016 from regular breeder hog
sales decreased by 45.8% to $0.91
million with the number of regular breeder hogs sold
decreasing by 39.8% to 3,660 hogs and the average selling price of
regular breeder hogs decreasing by 10.0% to $248 per hog. Revenues for the third quarter of
2016 from regular market hog sales decreased by 24.2% to
$3.15 million as the number of
regular market hogs sold decreased by 15.5% to 14,229 hogs while
the average selling price of regular market hogs decreased by 10.3%
to $221 per hog. Revenues for the
third quarter of 2016 from black market hogs increased by 7.6% to
$3.27 million with the number of
black hogs sold decreasing by 5.6% to 12,611 hogs and the average
selling price of black hogs increasing by 14.0% to $259 per hog.
We sold 108,390 kilograms of specialty black hog pork products
through retail at approximately $5
per kilogram, generating revenues of $0.52
million for the third quarter of 2016. This compares to
56,195 kilograms sold at approximately $6 per kilogram and revenues of $0.31 million for the same period of last year.
These revenues, combined with the sales of black market hogs, led
to $3.78 million in revenues from our
black hog program for the third quarter of 2016, compared to
$3.35 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 and nine months ended September 30,
2016 and 2015 based on the Company's decision to focus on
the hog industry and sell both subsidiaries in the near future. OV
Orange was sold on December 29, 2015.
We have not found a buyer for Hang-ao as of today.
Gross profit
Cost of goods sold increased by $0.66
million, or 10.4%, to $6.98
million for the third quarter of 2016 from $6.32 million for the same period of last year.
The increase in cost of goods sold was primarily due to the floods
which occurred in the early July and caused a loss of approximately
$0.50 million in our hog inventories
and a loss of $0.16 million in our
biological assets. Cost of goods sold for hog farming increased by
$0.49 million, or 8.0%, to
$6.59 million for the third quarter
of 2016 from $6.10 million for the
same period of last year. Cost of goods sold for retail increased
by $0.17 million, or 77.5%, to
$0.39 million for the third quarter
of 2016 from $0.22 million for the
same period of last year.
Overall gross profit decreased by $1.99
million, or 69.9%, to $0.86
million for the third quarter of 2016 from $2.85 million for the same period of last
year.
Gross profits for hog farming and retail were $0.74 million and $0.12
million, respectively, for the third quarter of 2016,
compared to $2.77 million and
$0.09 million, respectively, for the
same period of last year.
Overall gross margin was 10.9%, with gross margins for hog
farming and retail of 10.0% and 23.5%, respectively, for the third
quarter of 2016. This compared to overall gross margin of 31.1%,
and gross margins for hog farming and retail of 31.2% and 28.6%,
respectively, for the same period of last year.
Operating income(loss)
Total operating expenses, including general and administrative
expenses and selling and marketing expenses, decreased by
$0.06 million, or 5.8%, to
$0.95 million for the third quarter
of 2016 from $1.01 million for the
same period of last year. The decrease was primarily the result of
a decrease in our depreciation and amortization expenses from the
disposal of our hog farms in 2015.
Operating loss for the third quarter of 2016 was $0.09 million, compared to operating income of
$1.85 million for the same period of
last year. Operating loss margin for the third quarter of 2016 was
1.1%, compared to operating income margin of 20.1% for the same
period of last year.
Net income(loss)
Net loss was $2.83 million for the
third quarter of 2016 primarily as a result of $1.70 million in booked
expenses related to the floods in early July, compared to net
income of $0.86 million for the same
period of last year. Our net loss from continuing operations,
including both hog farming and retail was $1.78 million for the third quarter of 2016,
compared to net income from continuing operations of $1.10 million for the same period of last year,
reflecting the financial impact from the disposal of hog farms in
2015 which limited our earning ability in 2016 as well as the
impact of the floods in early July. Net loss from our discontinued
operations, including both Hang-ao and OV Orange, was $1.05 million for the third quarter of 2016,
compared to $0.25 million for the
same period of last year.
After the deduction of non-controlling interests, net loss
attributable to common shareholders for the third quarter of 2016
was $2.71 million, or net loss of
$0.35
per diluted share. This compared to net income attributable to
common shareholders of $0.88 million,
or net income of $0.10 per diluted share, for the same
period of last year.
Nine Months Ended September 30,
2016 Financial Results
Revenues
|
For the
Nine Months Ended September
30,
|
|
($ thousands,
except per share data)
|
2016
|
|
2015
|
|
%
Change
|
|
Revenues
|
$26,511
|
|
$ 28,616
|
|
-7.4%
|
|
Hog farming
|
25,196
|
|
27,504
|
|
-8.4%
|
|
Retail
|
1,315
|
|
1,112
|
|
18.2%
|
|
Gross
margin
|
19.4%
|
|
22.5%
|
|
-3.1%
|
|
Operating
margin
|
8.0%
|
|
8.7%
|
|
-0.7%
|
|
Net
income(Loss)
|
(2,502)
|
|
1,565
|
|
NM
|
|
Net income from Continuing operations
|
570
|
|
1,707
|
|
-66.6%
|
|
Gain(loss) from
operations of discontinued component
|
(3,072)
|
|
(142)
|
|
NM
|
|
Net income for common
shareholders
|
2,134
|
|
1,554
|
|
NM
|
|
Earnings (loss) per
share
|
(0.31)
|
|
0.19
|
|
NM
|
|
Continuing operations
|
0.07
|
|
0.21
|
|
-66.4%
|
|
Discontinued components
|
(0.38)
|
|
(0.02)
|
|
NM
|
Revenues for the nine months ended September 30, 2016 decreased by $2.10 million, or 7.4%, to $26.51 million from $28.62
million for the same period of last year. The decrease in
revenues reflected the shrinkage in our business as a result of the
sale of two hog farms in the third quarter of 2015 and inventory
losses from the July flood damage and was partially offset by an
increase in the average selling prices for black and regular market
hogs.
Revenues from hog farming, which includes sales of regular
breeder hogs, regular market hogs, and black hogs, decreased by
$2.31 million, or 8.4%, to
$25.20 million for the nine months
ended September 30, 2016 from
$27.50 million for the same period of
last year. The Company sold a total of 99,446 regular breeder hogs,
regular market hogs and black hogs with a blended average selling
price of $253 per hog during the nine
months ended September 30, 2016,
compared to 122,851 hogs sold and a blended average selling price
of $224 per hog for the same period
of last year.
|
For the Nine
Months Ended September 30,
|
|
2016
|
|
2015
|
|
No. of Hogs
Sold
|
|
Average
Price/Hog ($)
|
|
Sales
($ thousands)
|
|
No. of Hogs
Sold
|
|
Average
Price/Hog ($)
|
|
Sales
($ thousands)
|
|
Breeder hogs- regular
hogs
|
12,096
|
|
$
251
|
|
$
3,042
|
|
20,452
|
|
$
270
|
|
$
5,514
|
|
Market hogs- regular
hogs
|
46,119
|
|
227
|
|
10,458
|
|
58,829
|
|
209
|
|
12,314
|
|
Market hogs- black
hogs
|
41,231
|
|
284
|
|
11,697
|
|
43,570
|
|
222
|
|
9,676
|
|
Total Hog
Farming
|
99,446
|
|
253
|
|
25,197
|
|
122,851
|
|
224
|
|
27,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kilogram
|
|
Average
Price/kg ($)
|
|
Sales
($ thousands)
|
|
Kilograms
|
|
Average
Price/kg ($)
|
|
Sales
($ thousands)
|
|
Retail- specialty
black hog pork products
|
276,142
|
|
$
5
|
|
$
1,315
|
|
238,282
|
|
$
5
|
|
$
1,112
|
Revenues for the nine months ended September 30, 2016 from regular breeder hog sales
decreased by 44.8% to $3.04 million
with the number of regular breeder hogs sold decreasing by 40.9% to
12,096 hogs and the average selling price of regular breeder hogs
decreasing by 6.7% to $251 per hog.
Revenues for the nine months ended September
30, 2016 from regular market hog sales decreased by 15.1% to
$10.46 million as the number of
regular market hogs sold decreased by 21.6% to 46,119 hogs while
the average selling price of regular market hogs increased by 8.3%
to $227 per hog. Revenues for the
nine months ended September 30, 2016
from black market hogs increased by 20.9% to $11.70 million with the number of black hogs sold
decreasing by 5.4% to 41,231 hogs and the average selling price of
black hogs increasing by 27.7% to $284 per hog.
We sold 276,142 kilograms of specialty black hog pork products
through retail at approximately $5
per kilogram, generating revenues of $1.32
million for the nine months ended September 30, 2016. This compares to 238,282
kilograms sold at approximately $5
per kilogram and revenues of $1.11
million for the same period of last year. These revenues,
combined with the sales of black market hogs, led to $13.01 million in revenues from our black hog
program for the nine months ended September
30, 2016, compared to $10.79
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 and nine months ended September 30,
2016 and 2015 based on the Company's decision to focus on
the hog industry and sell both subsidiaries in the near future. OV
Orange was sold on December 29, 2015.
We have not found a buyer for Hang-ao as of today.
Gross profit
Cost of goods sold decreased by $0.81
million, or 3.7%, to $21.37
million for the nine months ended September 30, 2016 from $22.18 million for the same period of last year.
The decrease in cost of goods sold primarily results from a
reduction in costs in our Hog Farming segment as a result of a
reduction in the purchase prices for our feeds and the sale of two
of our farms in the third quarter of 2015. Cost of goods sold for
hog farming decreased by $0.97
million, or 4.5%, to $20.38
million for the nine months ended September 30, 2016 from $21.35 million for the same period of last year.
Cost of goods sold for retail increased by $0.16 million, or 19.3%, to $0.99 million for the nine months ended
September 30, 2016 from $0.83 million for the same period of last
year.
Overall gross profit decreased by $1.29
million, or 20.1%, to $5.14
million for the nine months ended September 30, 2016 from $6.43 million for the same period of last year.
This decrease in our gross profit reflected the reduction in our
business as a result of the disposal of hog farms in 2015 and the
flood damage in July 2016.
Gross profits for hog farming and retail were $4.82 million and $0.32
million, respectively, for the nine months ended
September 30, 2016, compared to
$6.15 million and $0.28 million, respectively, for the same period
of last year.
Overall gross margin was 19.4%, with gross margins for hog
farming and retail of 19.1% and 24.4%, respectively, for the nine
months ended September 30, 2016. This
compared to overall gross margin of 22.5%, and gross margins for
hog farming and retail of 22.4% and 25.1%, respectively, for the
same period of last year.
Operating income(loss)
Total operating expenses, including general and administrative
expenses and selling and marketing expenses, decreased by
$0.92 million, or 23.2%, to
$3.02 million for the nine months
ended September 30, 2016 from
$3.94 million for the same period of
last year. The decrease was primarily the result of a cancelation
of stock grants to key employees which generated non-cash
compensation expense of $0.36 million
in the 2015 period and a decrease in our depreciation expense as a
result of the disposal of two hog farms in 2015.
Operating income decreased by $0.38
million, or 15.2%, to $2.11
million for the nine months ended September 30, 2016 from $2.49 million for the same period of last year.
Operating margin for the nine months ended September 30, 2016 was 8.0%, compared to
operating margin of 8.7% for the same period of last year.
Net income(loss)
Net loss was $2.50 million for the
nine months ended September 30, 2016
primarily as a result of $1.70
million in booked expenses related to the floods in early
July, compared to net income of $1.56
million for the same period of last year. Our net income
from continuing operations, including both hog farming and retail,
decreased by $1.14 million, or 66.6%,
to $0.57 million for the nine months
ended September 30, 2016 from
$1.71 million for the same period of
last year. This decrease was mainly due to the booked losses
related to the floods in early July this year. Net loss from the
operations of our discontinued operations, Hang-ao and OV Orange,
was $3.07 million for the nine months
ended September 30, 2016, compared to
$0.14 million for the same period of
last year.
After the deduction of non-controlling interests, net loss
attributable to common shareholders for the nine months ended
September 30, 2016 was $2.13 million, or net loss of $0.31 per
diluted share. This compared to net income attributable to common
shareholders of $1.55 million,
$0.19 per diluted share, for the same
period of last year.
Financial Condition
As of September 30, 2016, the
Company had cash and cash equivalents of $54.72 million, compared to $49.66 million at the end of 2015. Working
capital as of September 30, 2016 was
$59.60 million as compared to
$63.98 million at December 31, 2015. Net cash provided by operating
activities was $9.99 million for the
nine months ended September 30, 2016,
compared to $13.68 million for the
same period of last year. Net cash used in investing activities was
$3.10 million for the nine months
ended September 30, 2016, primarily
for purchases of new equipment for our hog farms. This compared to
net cash provided by investing activities of $2.78 million for the same period of last year,
mostly generated by our discontinued operations. Net cash used in
financing activities was $0.30
million for the nine months ended September 30, 2016, compared to $4.14 million used in financing activities for
the same period of last year.
Company Update
On September 28, 2016, the Company
announced that it received notice from The Nasdaq Stock
Market LLC that it has regained compliance with NASDAQ Marketplace
Rule 5550(a)(2) (the "Rule"), which requires that the closing bid
price per share of a listed company be at least $1.00 per
share.
On September 8, 2016, the Company
announced a one (1) -for- four (4) reverse stock split of its
authorized and issued and outstanding shares of common stock. The
Reverse Split was effective and the Common Stock began trading on
the Nasdaq Capital Market on a split-adjusted basis at the market
opening on September 9,
2016. The Company's Common Stock continues to trade on Nasdaq
under the symbol "ABAC" but with a new CUSIP number G0404E
112.
On August 25, 2016, the Company
announced that it had signed a sales agreement with Wuhan Fengyu
Agricultural Development Co., Ltd. to sell the Company's
Tianli-Xiduhei™ black hog pork products through Fengyu's online
stores on Taobao.com, Meituan.com and the mobile app platform
Wechat. The Agreement has a one-year term, effective August 24, 2016, and can be automatically
extended for successive one-year periods.
On August 22, 2016, the Company
announced that it had signed a sales agreement with Shangzhi Xiaop
(Dalian) E-Commerce Co., Ltd. o
sell the Company's Tianli-Xiduhei™ black hog pork products through
Xiaop's group-buying web portal www.ixiaop.com (the
"Ixiaop.com"). The Agreement has a one-year term, effective as of
August 19, 2016, and can be
automatically extended for successive one-year periods.
On July 19, 2016, the Company
announced it had entered into a Letter of Intent to acquire a
majority stake in Hannan Chengmai Zaohuaxiang Hog Industry Co.,
Ltd, a high-end specialty black hog farm operator based in
Hainan Province with annual
production capacity of 30,000 hogs. We decided not to go forward
with the acquisition due to the unsatisfactory results of our due
diligence investigation.
On July 12, 2016, the Company
announced that its hog farms in Wuhan City and some of the independently
operated black hog farms in Enshi Prefecture were damaged in early
July as torrential rains caused devastating flooding in southern
China with Wuhan City being one of the hardest hit
areas.
Earnings Conference Call
Aoxin Tianli will host an earnings conference call and live
webcast covering its third quarter of 2016 financial results at
8:00 a.m. ET on November 11, 2016, which is 9:00 p.m. in Beijing on November 11,
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:
|
Friday, November 11,
2016
|
|
Time:
|
8:00 am ET,
U.S.
|
|
U.S.
Dial-in:
|
+1
877-870-4263
|
|
International
Dial-in:
|
+1
412-317-0790
|
|
Conference
ID:
|
Aoxin Tianli /
ABAC
|
|
Webcast
Link:
|
http://mms.prnasia.com/ABAC/20161111/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 November 18,
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. 10096415.
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.
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
|
|
|
|
|
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September
30,
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December
31,
|
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
54,721,497
|
$
|
49,656,897
|
|
Accounts receivable,
net
|
|
185,945
|
|
292,684
|
|
Inventories,
net
|
|
5,883,864
|
|
5,656,165
|
|
Advances to
suppliers, net
|
|
1,595,044
|
|
7,823,138
|
|
Prepaid
expenses
|
|
244,792
|
|
816,646
|
|
Other receivables,
net
|
|
305,462
|
|
312,161
|
|
Restricted
cash
|
|
-
|
|
9,242,571
|
|
Assets from
discontinued operations
|
|
4,856,785
|
|
7,926,437
|
|
Total Current
Assets
|
|
67,793,389
|
|
81,726,699
|
|
|
|
|
|
|
Long-term prepaid
expenses, net
|
|
1,272,894
|
|
1,389,144
|
|
Plant and equipment,
net
|
|
22,578,024
|
|
23,410,803
|
|
Biological assets,
net
|
|
1,850,638
|
|
1,580,847
|
|
Intangible assets,
net
|
|
2,573,787
|
|
2,802,948
|
|
|
|
|
|
|
Total
Assets
|
$
|
96,068,732
|
$
|
110,910,441
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Short-term
loans
|
$
|
2,698,562
|
$
|
-
|
|
Bank acceptance notes
payable
|
|
-
|
|
12,323,428
|
|
Accounts payable and
accrued payables
|
|
44,328
|
|
19,655
|
|
Other
payables
|
|
3,084,787
|
|
3,041,085
|
|
Liabilities from
discontinued operations
|
|
2,368,976
|
|
2,359,696
|
|
Total Current
Liabilities
|
|
8,196,653
|
|
17,743,864
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
Common stock ($0.004
par value, 25,000,000 shares authorized, 7,988,245 shares issued
and outstanding as of September 30, 2016 and 8,300,995 shares
issued and 8,295,995 shares outstanding as of December 31,
2015)
|
|
31,952
|
|
33,183
|
|
Additional paid in
capital
|
|
61,395,561
|
|
61,743,410
|
|
Statutory surplus
reserves
|
|
2,457,180
|
|
2,457,180
|
|
Retained
earnings
|
|
26,461,620
|
|
28,595,306
|
|
Accumulated other
comprehensive income
|
|
(3,481,997)
|
|
(1,018,861)
|
|
Stockholders' Equity -
Aoxin Tianli Group Inc. and Subsidiaries
|
86,864,316
|
|
91,810,218
|
|
Noncontrolling
interest
|
|
1,007,763
|
|
1,356,359
|
|
Total Stockholders'
Equity
|
|
87,872,079
|
|
93,166,577
|
|
Total Liabilities and
Stockholders' Equity
|
$
|
96,068,732
|
$
|
110,910,441
|
|
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,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
7,841,371
|
$
|
9,176,510
|
$
|
26,511,428
|
$
|
28,616,426
|
|
Cost of goods
sold
|
|
6,983,613
|
|
6,323,915
|
|
21,374,328
|
|
22,184,523
|
|
Gross
profit
|
|
857,758
|
|
2,852,595
|
|
5,137,100
|
|
6,431,903
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
843,205
|
|
849,481
|
|
2,701,269
|
|
3,422,050
|
|
Selling
expenses
|
|
104,702
|
|
156,613
|
|
322,893
|
|
517,785
|
|
Total operating
expenses
|
|
947,907
|
|
1,006,094
|
|
3,024,162
|
|
3,939,835
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
(90,149)
|
|
1,846,501
|
|
2,112,938
|
|
2,492,068
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
1,422
|
|
36,545
|
|
142,871
|
|
61,784
|
|
Subsidy
income
|
|
-
|
|
3,571
|
|
-
|
|
3,571
|
|
Loss from disposal of
farms
|
|
-
|
|
(787,964)
|
|
-
|
|
(787,964)
|
|
Gain from disposal of
construction in progress
|
|
-
|
|
4,302
|
|
-
|
|
4,302
|
|
Flood
damange
|
|
(1,695,338)
|
|
-
|
|
(1,695,338)
|
|
-
|
|
Other income
(expense), net
|
|
1,005
|
|
521
|
|
9,670
|
|
(66,418)
|
|
Total other income
(expense)
|
|
(1,692,911)
|
|
(743,025)
|
|
(1,542,797)
|
|
(784,725)
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
(1,783,060)
|
|
1,103,476
|
|
570,141
|
|
1,707,343
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Net income (loss)
from continuing operations
|
|
(1,783,060)
|
|
1,103,476
|
|
570,141
|
|
1,707,343
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
|
|
Loss from operations
of discontinued component, net of taxes
|
|
(1,050,327)
|
|
(246,229)
|
|
(3,072,531)
|
|
(142,551)
|
|
|
|
|
|
|
|
|
|
|
Net income
(Loss)
|
|
(2,833,387)
|
|
857,247
|
|
(2,502,390)
|
|
1,564,792
|
|
Net loss (gain)
attributable to noncontrolling interest
|
|
126,040
|
|
17,757
|
|
368,704
|
|
(10,337)
|
|
Net gain (loss)
attributable to Aoxin Tianli Group Inc. common
stockholders
|
|
(2,707,347)
|
|
875,004
|
|
(2,133,686)
|
|
1,554,455
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
|
|
Unrealized foreign
currency translation adjustment
|
|
(327,849)
|
|
(4,149,568)
|
|
(2,463,136)
|
|
(3,199,044)
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss
|
$
|
(3,035,196)
|
$
|
(3,274,564)
|
$
|
(4,596,822)
|
$
|
(1,644,589)
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per
share attributable to Aoxin Tianli Group Inc. common stockholders -
basic and diluted:
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding, basic and diluted
|
|
7,988,245
|
|
8,295,995
|
|
8,085,717
|
|
8,138,495
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
- Basic & diluted
|
$
|
(0.22)
|
$
|
0.13
|
$
|
0.07
|
$
|
0.21
|
|
Discontinued
operations - Basic & diluted
|
$
|
(0.13)
|
$
|
(0.03)
|
$
|
(0.38)
|
$
|
(0.02)
|
|
AOXIN TIANLI
GROUP, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
For the Nine Months
Ended September 30,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net income from
continuing operations
|
$
|
570,141
|
$
|
1,707,343
|
|
Adjustments to
reconcile net income to net cash
|
|
|
|
|
|
provided by
operating activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
2,038,110
|
|
2,302,022
|
|
Amortization of
prepaid expenses
|
|
397,752
|
|
237,000
|
|
Amortization of
long-term prepaid expenses
|
|
80,878
|
|
940,627
|
|
Bad debt
expense
|
|
-
|
|
116,092
|
|
Recovery gain from
inventory valuation
|
|
-
|
|
(85,212)
|
|
Loss from farm
shutdown
|
|
-
|
|
11,970
|
|
Fire damage
|
|
22,319
|
|
-
|
|
Flood
damange
|
|
1,695,338
|
|
-
|
|
Destructured
inventories from floods
|
|
504,278
|
|
-
|
|
Destructured
biological assets from floods
|
|
164,837
|
|
-
|
|
Loss from disposal of
farms
|
|
-
|
|
787,964
|
|
Gain from disposal of
construction in progress
|
|
-
|
|
(4,302)
|
|
Loss from disposal of
biological assets
|
|
530,366
|
|
167,468
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
100,259
|
|
(918,900)
|
|
Inventories
|
|
3,959,585
|
|
6,166,827
|
|
Advances to
suppliers
|
|
-
|
|
510,212
|
|
Prepaid
expenses
|
|
(188,329)
|
|
(117,028)
|
|
Other
receivables
|
|
(1,679)
|
|
(258,283)
|
|
Long-term prepaid
expenses
|
|
(725)
|
|
-
|
|
Accounts payable and
accrued payables
|
|
37,544
|
|
(2,978)
|
|
Advances from
customers
|
|
-
|
|
(44,997)
|
|
Other
payables
|
|
70,671
|
|
(81,788)
|
|
Total
adjustments
|
|
9,411,204
|
|
9,726,694
|
|
Net cash provided by
operating activities from continuing operations
|
|
9,981,345
|
|
11,434,037
|
|
Net cash provided by
operating activities from discontinued operations
|
|
6,401
|
|
2,242,816
|
|
Net cash provided by
operating activities
|
|
9,987,746
|
|
13,676,853
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Proceeds from disposal
of construction in progress
|
|
-
|
|
4,302
|
|
Proceeds from disposal
of farms
|
|
-
|
|
1,217,414
|
|
Purchase of biological
assets
|
|
(106,379)
|
|
(49,894)
|
|
Purchase of plant and
equipment
|
|
(2,988,644)
|
|
(2,772)
|
|
Net cash provided by
(used in) investing activities from continuing
operations
|
|
(3,095,023)
|
|
1,169,050
|
|
Net cash provided by
investing activities from discontinued operations
|
|
-
|
|
1,611,151
|
|
Net cash provided by
(used in) investing activities
|
|
(3,095,023)
|
|
2,780,201
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Restricted cash
received from (deposited to) banks
|
|
9,118,236
|
|
(3,246,437)
|
|
Due to (from) related
party
|
|
-
|
|
57,814
|
|
Proceeds from
short-term loans
|
|
2,735,471
|
|
-
|
|
Repayment of
short-term loans
|
|
(12,157,648)
|
|
(2,402,363)
|
|
Net cash used in
financing activities from continuing
operations
|
|
(303,941)
|
|
(5,590,986)
|
|
Net cash provided by
financing activities from discontinued operations
|
|
-
|
|
1,452,645
|
|
Net cash used in
financing activities
|
|
(303,941)
|
|
(4,138,341)
|
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH
|
|
(1,524,182)
|
|
(1,559,952)
|
|
|
|
|
|
|
NET INCREASE IN
CASH
|
|
5,064,600
|
|
10,758,761
|
|
|
|
|
|
|
CASH, BEGINNING OF
PERIOD
|
|
49,656,897
|
|
39,123,869
|
|
|
|
|
|
|
CASH, END OF
PERIOD
|
$
|
54,721,497
|
$
|
49,882,630
|
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURES:
|
|
|
|
|
|
Cash paid during the
period for:
|
|
|
|
|
|
Interest
paid
|
$
|
38,626
|
$
|
50,542
|
|
Income tax
paid
|
$
|
-
|
$
|
-
|
|
|
|
|
|
|
NON-CASH
TRANSACTIONS OF INVESTING AND FINANCING ACTIVITIES
|
|
|
|
Prepayments for raw
material purchases made with bank acceptance notes
|
$
|
-
|
$
|
6,492,874
|
|
Shares issued to
employees
|
$
|
-
|
$
|
1,433,700
|
|
Inventories received
from prior year prepayments
|
$
|
6,101,038
|
$
|
-
|
|
Inventories
transferred to biological assets
|
$
|
1,230,592
|
$
|
-
|
|
Cancelation of shares
related to Hang-ao acquisition
|
$
|
1,047
|
$
|
-
|
|
Cancelation of shares
related to employees' compensation
|
$
|
361,080
|
$
|
-
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/aoxin-tianli-group-inc-reports-third-quarter-2016-financial-results-300360793.html
SOURCE Aoxin Tianli Group, Inc.