LISHUI, China, April 27, 2021 /PRNewswire/ -- Tantech
Holdings Ltd (NASDAQ: TANH) ("Tantech" or the "Company"), a clean
energy company in China, today
announced its audited financial results for the year ended
December 31, 2020.
Full Year 2020 Financial Results
|
|
For the Twelve
Months Ended
December 31,
|
($ millions,
expect per share data and percentages)
|
|
2020
|
|
|
2019
|
|
|
Change
|
|
Revenues
|
|
$
|
42.3
|
|
|
$
|
49.2
|
|
|
|
(14.1)
|
%
|
Consumer
product
|
|
$
|
29.4
|
|
|
$
|
45.8
|
|
|
|
(35.8)
|
%
|
Trading
|
|
$
|
12.5
|
|
|
$
|
3.4
|
|
|
|
269.3
|
%
|
Gross
profit
|
|
$
|
4.5
|
|
|
$
|
6.0
|
|
|
|
(25.0)
|
%
|
Gross
margin
|
|
|
10.6
|
%
|
|
|
12.1
|
%
|
|
|
(1.5)
|
percentage
points
|
Net income (loss)
attributable to common stockholders of Tantech Holdings
Ltd
|
|
$
|
(6.5)
|
|
|
$
|
(6.3)
|
|
|
$
|
(0.2)
|
|
Basic/ Diluted
earnings (loss) per share
|
|
$
|
(0.22)
|
|
|
$
|
(0.22)
|
|
|
$
|
0.0
|
|
|
•
|
Total revenues
decreased 14.1% to $42.3 million from $49.2 million. The
decrease was mainly attributable to the significant decrease of the
Company's revenues from consumer products due to COVID-19. However,
the Company' revenue from trading segment increased due to higher
demands for its bamboo charcoal used for active charcoal masks, air
purification and sanitation products in order to combat COVID-19.
The Company also had higher revenue from EV segment as compared to
2019.
|
|
•
|
During the year 2020,
due to the impact of COVID-19, our subsidiary Shangchi Automobile
Co., Ltd. ("Shangchi Automobile") was unable to maintain normal
operations and all sales and marketing events were disrupted due to
travel restrictions and other government regulations. While the
spread of COVID-19 has gradually been under control in China, it
could adversely affect the Company's business for the future.
Shangchi Automobile has no immediate business plan to start
manufacturing the electric vehicles. Management determined that the
electric vehicle manufacturing license should be impaired. The
Company recorded an impairment of $12.0 million for the year ended
December 31, 2020. For the year ended December 31, 2019, the
Company recorded an impairment of $1.1 million because the carrying
amount was not recoverable and it exceeded its fair value based on
the management's assessment for the electric vehicle manufacturing
license.
|
|
•
|
Gross profit
decreased 25% to $4.5 million in 2020 from $6.0 million in 2019,
and gross margin decreased to 10.6% from 12.1%, primarily due to
lower revenues, and higher raw materials and supply chain costs, in
the full year 2020 compared to the full year 2019. As a joint
effort to fight COVID-19, the Company charged lower gross margin
for certain orders. As a result, the gross margin of trading
segment decreased to 5.4% in fiscal 2020 from 32.8% in fiscal
2019.
|
|
•
|
Selling expenses
increased 205.3% to $1.0 million in 2020 from $0.3 million in 2019,
as the Company complied with new, higher-cost sales activities,
while continuing to invest in online marketing support and
expanding its electric vehicle (the "EV") sales efforts during
2020.
|
|
•
|
General and
administration expenses decreased 79.5% to $1.0 million in 2020
from $4.7 million in 2019. The decrease was primarily
attributable to the recovery of bad debt provision of $1.3 million
in 2020 as compared to 2019.
|
|
•
|
Research and
development expenses increased $0.9 million in 2020 from $0.3
million in 2019, primarily due to increased activities related to
electrical battery and vehicle research in the Company's electric
vehicle segment, mainly on driverless street sweepers, as compared
to the same period last year.
|
|
•
|
Other expenses
decreased 25.3% to $0.3 million from $0.4 million, primarily due to
lower interest expense in 2020, as compared to 2019.
|
|
•
|
Net loss attributable
to common stockholders of Tantech Holdings Ltd was increased to
$6.5 million for the full year 2020 from a net loss of $6.3 million
for the full year 2019, with net loss per share on both a basic and
diluted basis of $0.22 in 2020 compared to $0.22 in
2019.
|
|
•
|
The Company maintains
a positive working capital as of December 31, 2020 and generated
positive cash flows from its operations for the years ended
December 31, 2020 and 2019. As of December 31, 2020, the
Company had a $37.1 million balance of cash and cash equivalents,
with total shareholders' equity of approximately $99.5
million.
|
Mr. Wangfeng Yan, Chief Executive Officer of Tantech, said, "Our
team remained focused during 2020 and adjusted to the global
COVID-19 challenges. Government restrictions and closures
slowed growth in our business, including the sales of our electric
vehicles. We moved quickly, however, when the economy
re-opened to restart our R&D efforts and re-engage with our
supply channel and customers. On the other side, demand was
stable in 2020 for our bamboo-based charcoal products, and our
revenue from trading segment increased due to higher demands for
our bamboo charcoal used for active charcoal masks, air
purification and sanitation products in order to combat
COVID-19. We were pleased that our strong supply chain
relationships put us in a position to help people in such a
difficult time."
Mr. Wangfeng Yan, Chief Executive Officer of Tantech, added, "We
will continue to leverage our leadership position in the charcoal
products industry to drive revenue, profit growth and increased
operating cash flow. There are many opportunities in front of
us given the estimated $30 billion
size of the domestic China market
for bamboo production, and bamboo's position as a pillar industry
of economic development. Our many innovations and strong
brand recognition give us a competitive advantage, as we work to
achieve the Company's long-term strategic objectives. At the
same time, we continue to build momentum in the EV market, where we
currently hold more than 20 core technologies and patents about EV,
including nanotechnology for raw materials for power lithium
electronics, group technology of power lithium electronics and
battery management technology. Our priority remains on
leveraging our R&D expertise to develop new energy-efficient
specialty-use electric vehicles, including driverless street
sweepers. Our engineers have built sleek, high efficiency,
low-operating-cost vehicles for the industrial market.
Overall, we like the industrial EV market segment given its size,
global footprint and support of favorable infrastructure policies
in major markets."
About Tantech Holdings Ltd
For the past decade, Tantech has been a highly specialized
high-tech enterprise producing, researching and developing bamboo
charcoal-based products with an established domestic and
international sales and distribution network. Since 2017 when the
Company acquired 70% of Shangchi Automobile, a vehicle manufacturer
based in Zhangjiagang City, Jiangsu
Province, it has manufactured and sold vehicles. The
Company established two new subsidiaries in November 2020, with the plan to produce and sell
street sweepers and other electric vehicles. The Company is
fully ISO 90000 and ISO 14000 certified and has received a number
of national, provincial and local honors, awards and certifications
for its quality products and scientific research efforts. For
more information please visit: http://ir.tantech.cn.
Forward-Looking Statements
This news release contains forward-looking statements as
defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. These statements are subject to
uncertainties and risks including, but not limited to, product and
service demand and acceptance, changes in technology, economic
conditions, the impact of competition and pricing, government
regulations, and other risks contained in reports filed by the
company with the Securities and Exchange Commission. All such
forward-looking statements, whether written or oral, and whether
made by or on behalf of the Company, are expressly qualified by
this cautionary statement and any other cautionary statements which
may accompany the forward-looking statements. In addition, the
Company disclaims any obligation to update any forward-looking
statements to reflect events or circumstances after the date
hereof.
Tantech Holdings
Ltd and Subsidiaries
|
Consolidated
Balance Sheets
|
|
|
|
December 31,
2020
|
|
|
December 31,
2019
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents (Note 3 at VIE)
|
|
$
|
37,119,195
|
|
|
$
|
12,440,457
|
|
Restricted cash (Note
3 at VIE)
|
|
|
220,109
|
|
|
|
205,520
|
|
Accounts receivable,
net (Note 3 at VIE)
|
|
|
34,410,597
|
|
|
|
39,352,408
|
|
Inventories, net
(Note 3 at VIE)
|
|
|
671,251
|
|
|
|
595,627
|
|
Advances to
suppliers, net (Note 3 at VIE)
|
|
|
6,854,461
|
|
|
|
13,079,889
|
|
Advances to suppliers
– related party
|
|
|
1,533,000
|
|
|
|
-
|
|
Prepaid taxes (Note 3
at VIE)
|
|
|
1,046,667
|
|
|
|
2,396,349
|
|
Prepaid expenses and
other receivables, net (Note 3 at VIE)
|
|
|
45,467
|
|
|
|
91,377
|
|
Total Current
Assets (Note 3 at VIE)
|
|
|
81,900,747
|
|
|
|
68,161,627
|
|
|
|
|
|
|
|
|
|
|
Property, plant
and equipment, net (Note 3 at VIE)
|
|
|
2,477,912
|
|
|
|
2,700,034
|
|
|
|
|
|
|
|
|
|
|
Other
Assets
|
|
|
|
|
|
|
|
|
Manufacturing rebate
receivable (Note 3 at VIE)
|
|
|
5,755,237
|
|
|
|
7,746,116
|
|
Intangible assets,
net (Note 3 at VIE)
|
|
|
664,033
|
|
|
|
12,959,017
|
|
Long-term
Investment
|
|
|
25,497,316
|
|
|
|
23,883,983
|
|
Total Other Assets
(Note 3 at VIE)
|
|
|
31,916,586
|
|
|
|
44,589,116
|
|
Total Assets (Note
3 at VIE)
|
|
$
|
116,295,245
|
|
|
$
|
115,450,777
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
|
Short-term bank
loans
|
|
$
|
5,564,790
|
|
|
$
|
6,861,208
|
|
Bank acceptance notes
payable (Note 3 at VIE)
|
|
|
1,753,109
|
|
|
|
205,520
|
|
Accounts payable
(Note 3 at VIE)
|
|
|
1,543,994
|
|
|
|
1,650,851
|
|
Due to related
parties (Note 3 at VIE)
|
|
|
2,019,087
|
|
|
|
1,838,603
|
|
Customer deposits
(Note 3 at VIE)
|
|
|
3,183,088
|
|
|
|
6,742,659
|
|
Taxes payable (Note 3
at VIE)
|
|
|
571,354
|
|
|
|
102,704
|
|
Due to third
parties
|
|
|
306,600
|
|
|
|
287,200
|
|
Accrued liabilities
and other payables (Note 3 at VIE)
|
|
|
1,861,835
|
|
|
|
1,444,896
|
|
Total Current
Liabilities (Note 3 at VIE)
|
|
|
16,803,857
|
|
|
|
19,133,641
|
|
Deferred tax
liability (Note 3 at VIE)
|
|
|
-
|
|
|
|
1,784,875
|
|
Total Liabilities
(Note 3 at VIE)
|
|
|
16,803,857
|
|
|
|
20,918,516
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
Common stock, $0.001
par value, 50,000,000 shares authorized,
35,894,097 and
28,853,242 shares issued and outstanding as of
December 31, 2020 and
2019, respectively
|
|
|
35,894
|
|
|
|
28,853
|
|
Additional paid-in
capital
|
|
|
48,392,181
|
|
|
|
39,310,178
|
|
Statutory
reserves
|
|
|
6,437,506
|
|
|
|
6,379,276
|
|
Retained
earnings
|
|
|
45,480,031
|
|
|
|
52,058,681
|
|
Accumulated other
comprehensive loss
|
|
|
(1,493,070)
|
|
|
|
(7,590,943)
|
|
Total
Stockholders' Equity attributable to the Company
|
|
|
98,852,542
|
|
|
|
90,186,045
|
|
Noncontrolling
interest
|
|
|
638,846
|
|
|
|
4,346,216
|
|
Total
Stockholders' Equity
|
|
|
99,491,388
|
|
|
|
94,532,261
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
116,295,245
|
|
|
$
|
115,450,777
|
|
Tantech Holdings
Ltd and Subsidiaries
|
Consolidated
Statements of Comprehensive Income (Loss)
|
|
|
|
For the Years
Ended December 31
|
|
|
2020
|
|
|
2019
|
Revenues
|
|
$
|
42,283,670
|
|
|
$
|
49,230,570
|
Cost of
revenues
|
|
|
37,807,297
|
|
|
|
43,253,070
|
Gross
Profit
|
|
|
4,476,373
|
|
|
|
5,977,500
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
977,201
|
|
|
|
319,946
|
General and
administrative expenses
|
|
|
955,210
|
|
|
|
4,655,382
|
Impairment of
goodwill and intangible asset
|
|
|
11,998,606
|
|
|
|
9,584,000
|
Research and
development expenses
|
|
|
890,316
|
|
|
|
327,260
|
Total operating
expenses
|
|
|
14,821,333
|
|
|
|
14,886,588
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
|
(10,344,960)
|
|
|
|
(8,909,088)
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
Interest
income
|
|
|
50,732
|
|
|
|
53,060
|
Interest
expense
|
|
|
(300,125)
|
|
|
|
(443,262)
|
Other (loss) income,
net
|
|
|
(39,530)
|
|
|
|
3,669
|
Total other
expenses
|
|
|
(288,923)
|
|
|
|
(386,533)
|
|
|
|
|
|
|
|
|
(Loss) income
before income tax expense (credit)
|
|
|
(10,633,883)
|
|
|
|
(9,295,621)
|
Income tax expense
(credit)
|
|
|
(611,655)
|
|
|
|
363,662
|
Net (loss) income
from continuing operations
|
|
|
(10,022,228)
|
|
|
|
(9,659,283)
|
|
|
|
|
|
|
|
|
Discontinued
operation:
|
|
|
|
|
|
|
|
Income from
discontinued operations, net of tax
|
|
|
-
|
|
|
|
270,479
|
Loss from disposal of
discontinued operations
|
|
|
-
|
|
|
|
(569,891)
|
Net (loss) income
from discontinued operations
|
|
|
-
|
|
|
|
(299,412)
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
|
(10,022,228)
|
|
|
|
(9,958,695)
|
Less: net loss
attributable to noncontrolling interest from continuing
operations
|
|
|
(3,501,808)
|
|
|
|
(3,601,728)
|
Net (loss) income
attributable to common stockholders of Tantech Holdings
Ltd
|
|
$
|
(6,520,420)
|
|
|
$
|
(6,356,967)
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
|
(10,022,228)
|
|
|
|
(9,958,695)
|
Other
comprehensive income (loss):
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
5,892,311
|
|
|
|
(5,494,731)
|
Comprehensive
(loss) income
|
|
|
(4,129,917)
|
|
|
|
(15,453,426)
|
Less: Comprehensive
loss attributable to noncontrolling interest
|
|
|
(3,707,370)
|
|
|
|
(3,571,880)
|
Comprehensive
income (loss) attributable to common stockholders of Tantech
Holdings Ltd
|
|
$
|
(422,547)
|
|
|
$
|
(11,881,546)
|
|
|
|
|
|
|
|
|
(Loss) earnings per
share - Basic and Diluted
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
(0.22)
|
|
|
$
|
(0.21)
|
Discontinued
operations
|
|
$
|
0.00
|
|
|
$
|
(0.01)
|
Total
|
|
$
|
(0.22)
|
|
|
$
|
(0.22)
|
Weighted Average
Shares Outstanding - Basic and Diluted
|
|
|
|
|
|
|
|
Continuing operations
and discontinued operations
|
|
|
29,566,243
|
|
|
|
28,853,242
|
Tantech Holdings
Ltd and Subsidiaries
|
Consolidated
Statements of Cash Flows
|
|
|
|
For the Years
Ended December 31
|
|
|
2020
|
|
|
2019
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(10,022,228)
|
|
|
$
|
(9,958,695)
|
Net loss (income)
from discontinued operations
|
|
|
-
|
|
|
|
299,412
|
Net (loss) income
from continuing operations
|
|
|
(10,022,228)
|
|
|
|
(9,659,283)
|
Adjustments to
reconcile net income (loss) to net cash
provided by operating
activities:
|
|
|
|
|
|
|
|
(Reversal of)
Allowance for doubtful accounts -
accounts
receivable
|
|
|
(845,416)
|
|
|
|
1,297,752
|
(Reversal of)
Allowance for doubtful accounts -
advance to
suppliers
|
|
|
(378,233)
|
|
|
|
164,220
|
(Reversal of)
Allowance for doubtful accounts –
other
receivables
|
|
|
(84,573)
|
|
|
|
705,400
|
Allowance for
doubtful accounts - due from related
party
|
|
|
-
|
|
|
|
-
|
Inventory
reserve
|
|
|
92,064
|
|
|
|
1,030,236
|
Impairment of
goodwill and intangible asset
|
|
|
11,998,606
|
|
|
|
9,584,000
|
Decrease in deferred
tax liability
|
|
|
(1,799,791)
|
|
|
|
(165,500)
|
Depreciation
expense
|
|
|
436,427
|
|
|
|
462,639
|
Amortization of
intangible asset
|
|
|
441,489
|
|
|
|
441,489
|
Amortization of
prepaid consulting expense
|
|
|
-
|
|
|
|
140,738
|
Loss (gain) from
disposal of property, plant and
equipment
|
|
|
68,614
|
|
|
|
(8,047)
|
Issuance of common
stock for service
|
|
|
33,812
|
|
|
|
-
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable -
non-related party
|
|
|
8,024,036
|
|
|
|
(9,879,682)
|
Accounts receivable -
related party
|
|
|
-
|
|
|
|
-
|
Advances to
suppliers
|
|
|
7,093,022
|
|
|
|
415,727
|
Advances to
suppliers, non-current
|
|
|
-
|
|
|
|
-
|
Advances to suppliers
- related party
|
|
|
(1,448,000)
|
|
|
|
-
|
Inventory
|
|
|
(125,492)
|
|
|
|
242,142
|
Prepaid expenses and
other receivables
|
|
|
133,768
|
|
|
|
9,127
|
Manufacturing rebate
receivable
|
|
|
2,374,720
|
|
|
|
1,563,840
|
Accounts
payable
|
|
|
(206,261)
|
|
|
|
(751,363)
|
Accrued liabilities
and other payables
|
|
|
313,552
|
|
|
|
(78,923)
|
Customer
deposits
|
|
|
(3,792,409)
|
|
|
|
6,184,836
|
Collection of
receivable from discontinued operations
|
|
|
-
|
|
|
|
8,962,187
|
Taxes
payable
|
|
|
1,863,853
|
|
|
|
(597,392)
|
Net cash provided
by continuing operations
|
|
|
14,171,560
|
|
|
|
10,064,143
|
Net cash provided
by discontinued operations
|
|
|
-
|
|
|
|
4,632,769
|
Net cash provided
by operating activities
|
|
|
14,171,560
|
|
|
|
14,696,912
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
Acquisition of
property, plant and equipment
|
|
|
(144,806)
|
|
|
|
(92,369)
|
Proceeds from
disposal of property, plant and
equipment
|
|
|
21,842
|
|
|
|
16,580
|
Additions to
intangible assets
|
|
|
-
|
|
|
|
-
|
Payment for
investment
|
|
|
-
|
|
|
|
(6,707,570)
|
Proceeds from
disposition of subsidiaries
|
|
|
-
|
|
|
|
854,567
|
Net cash used in
continuing operations
|
|
|
(122,964)
|
|
|
|
(5,928,792)
|
Net cash used in
discontinued operations
|
|
|
-
|
|
|
|
(1,522)
|
Net cash used in
investing activities
|
|
|
(122,964)
|
|
|
|
(5,930,314)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
Proceeds from
(repayment of) loans from third parties
|
|
|
-
|
|
|
|
(2,823,890)
|
Notes
receivable
|
|
|
-
|
|
|
|
-
|
Bank acceptance notes
payable, net of repayment
|
|
|
1,448,667
|
|
|
|
(1,823,003)
|
Proceeds from bank
loans
|
|
|
9,568,384
|
|
|
|
6,918,544
|
Repayment of bank
loans
|
|
|
(11,230,688)
|
|
|
|
(7,352,944)
|
Proceeds from
(repayment of) loans from related
parties,
net
|
|
|
98,474
|
|
|
|
(378,833)
|
Proceeds from
issuance of common stock and warrants
|
|
|
9,055,232
|
|
|
|
-
|
Net cash provided
by (used in) continuing operations
|
|
|
8,940,069
|
|
|
|
(5,460,126)
|
Net cash provided
by discontinued operations
|
|
|
-
|
|
|
|
-
|
Net cash provided
by (used in) financing activities
|
|
|
8,940,069
|
|
|
|
(5,460,126)
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash, restricted cash
and cash
equivalents
|
|
|
1,704,662
|
|
|
|
(530,288)
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash, restricted cash and cash
equivalents
|
|
|
24,693,327
|
|
|
|
2,776,184
|
|
|
|
|
|
|
|
|
Cash, restricted
cash and cash equivalents, beginning of year
|
|
|
12,645,977
|
|
|
|
9,869,793
|
|
|
|
|
|
|
|
|
Cash, restricted
cash and cash equivalents, end of year
|
|
$
|
37,339,304
|
|
|
$
|
12,645,977
|
|
|
|
|
|
|
|
|
Supplemental
disclosure information:
|
|
|
|
|
|
|
|
Income taxes
paid
|
|
$
|
436,566
|
|
|
$
|
1,105,876
|
Interest
paid
|
|
$
|
308,690
|
|
|
$
|
439,869
|
|
|
|
|
|
|
|
|
Supplemental
non-cash activities:
|
|
|
|
|
|
|
|
Common shares issued
for service
|
|
$
|
33,812
|
|
|
$
|
-
|
View original
content:http://www.prnewswire.com/news-releases/tantech-announces-full-year-2020-financial-results-301278311.html
SOURCE Tantech Holdings Ltd.