QINGDAO, China, Nov. 25, 2020 /PRNewswire/ -- TDH Holdings, Inc.
(NASDAQ: PETZ) ("TDH" or the "Company"), a PRC-based company that
specializes in the development, manufacturing and sales of pet food
products in China and beyond,
announced today its financial results for the six months ended
June 30, 2020.
First Half 2020 Unaudited Financial Highlights:
|
|
For the Six Months
Ended June 30
|
($ millions,
except per share data)
|
|
2020
|
|
2019
|
|
%
Change
|
Revenues
|
|
$0.28
|
|
$8.04
|
|
-96.5%
|
Gross profit
(loss)
|
|
($0.07)
|
|
$0.69
|
|
-110.1%
|
Gross profit
(loss) margin
|
|
-25.0%
|
|
8.6%
|
|
-33.6 pp*
|
Operating
loss
|
|
($0.97)
|
|
($1.24)
|
|
-21.8%
|
Operating loss
margin
|
|
-343.1%
|
|
-15.4%
|
|
-327.7pp*
|
Net loss
attributable to common stockholders
|
|
($0.6)
|
|
($1.67)
|
|
-64.1%
|
Loss per share
- basic and diluted
|
|
($0.01)
|
|
($0.14)
|
|
-92.9%
|
* pp: percentage
points
- Revenues decreased by 96.5% to $0.28
million for the first half of 2020. The decrease in total
revenues was mainly due to reduced sales orders when we temporarily
closed our facilities in response to the outbreak and spread of the
COVID-19 pandemic.
- Gross loss was $ 0.07 million for
the first half of 2020, compared to gross profit of $0.69 million for the same period of the prior
year.
- Operating loss was $0.97 million
for the first half of 2020, compared to operating loss of
$1.24 million for the same period of
the prior year. The operating loss was mainly due to the gross loss
combined with the declined business scale.
- Net loss was $0.6 million, or
loss per share of $0.01, for the
first half of 2020, compared to net loss of $1.67 million, or loss per share of $0.14, for the same period of the prior
year.
First Half 2020 Financial Results
Revenues
Historically, the Company generated its revenues from product
sales, mainly including sales for pet chews, dried pet snacks and
wet canned pet foods in overseas markets, domestic markets and
through its e-commerce platform. Revenue consists of the invoiced
value for the sales, net of value-added tax ("VAT"), business tax,
and applicable local government levies. For the first half of 2020,
total revenues decreased by $7.76
million, or 96.5%, to $0.28
million from $8.04 million as
compared with the same period of the prior year. The decrease in
total revenues was mainly due to reduced sales orders when we
temporarily closed our facilities in response to the outbreak and
spread of the COVID-19 pandemic, as discussed in details below:
Beginning in late 2019, there were reports of the COVID-19
(coronavirus) outbreak originating in China, prompting government-imposed quarantines, cessation of
certain travel and business closures. On March 11, 2020, the World Health Organization
categorized it as a pandemic. To contain the spread of the
COVID-19, the government took stringent measures, including
restricting access to provinces and cities, reducing gathering
events, and postponing non-essential business activities. Following
this outbreak and other operational difficulties, the Company
temporarily shut down its main office and its remaining production
facilities until May 2020. Following
the temporary cessation of its production capabilities and the
negative impact of the COVID-19
pandemic, the Company continued to incur significant delays,
reductions in revenue. In addition, due to the COVID-19 outbreak,
some of our customers or suppliers experience financial distress,
delay or default on their payments, reduce the scale of their
business, or suffer disruptions in their business due to the
outbreak. Any increased difficulty in collecting accounts
receivable, delayed raw materials supply, bankruptcy of small and
medium businesses, or early termination of agreements due to
deterioration in economic conditions could negatively impact our results of operations.
We resumed our work under the guidance and support of the
government in May
2020.
|
|
For the Six
Months Ended June 30,
|
|
2020
|
|
2019
|
|
Y/Y
Change
|
|
|
Revenues
($'000)
|
|
% of
Total
|
|
|
Revenues
($'000)
|
|
% of
Total
|
|
|
Amount
($'000)
|
|
%
|
Overseas
|
$
|
61
|
|
21.60%
|
|
$
|
6,278
|
|
78.10%
|
|
$
|
(6,217)
|
|
-99%
|
Domestic
|
|
222
|
|
78.40%
|
|
|
1,644
|
|
20.40%
|
|
|
(1,423)
|
|
-86.60%
|
E-commerce
|
|
-
|
|
-%
|
|
|
153
|
|
1.90%
|
|
|
(153)
|
|
-100%
|
less: sales tax and
additional surcharge
|
|
-
|
|
-%
|
|
|
(34)
|
|
-0.40%
|
|
|
34
|
|
100%
|
Total
|
$
|
283
|
|
100.00%
|
|
$
|
8,041
|
|
100.00%
|
|
$
|
(7,759)
|
|
-96.50%
|
Overseas sales decreased by $6.22
million, or 99%, to $0.06
million for the first half of 2020 from $6.28 million for the same period of the prior
year. Domestic sales decreased by $1.42
million, or 86.6%, to $0.22
million for the first half of 2020 from $1.64 million for the same period of the prior
year. Sales from the e-commerce channel decreased by $0.15 million, or 100%, to $0 million for the first half of 2020 from
$0.15 million for the same period of
the prior year.
Cost of revenues
Cost of revenues consists primarily of raw materials, labor and
factory overhead expenses necessary to manufacture finished goods.
Cost of revenues decreased by $7
million, or 95.2%, to $0.35
million for the first half of 2020 from $7.35 million for the same period of the prior
year. The decrease in cost of revenues was in line with the
decrease in revenue. However, even when we temporarily closed our
facilities until May 2020, we still
carried certain fixed overhead costs, which led to higher than our
total revenue cost of revenues. Cost of revenues was 125.0% for the
first half of 2020, compared to 91.4% for the same period of the
prior year.
Gross profit (loss) and gross profit (loss) margin
Gross loss was $0.07 million for
the first half of 2020, compared to gross profit of $0.69 million for the same period of the prior
year. Gross loss margin was negative 25% for the first half of
2020, compared to gross profit margin of 8.6% for the same period
of the prior year. The decrease of gross margin is mainly due to
the substantial decrease of production orders and the increase of
fixed cost allocation thereafter.
Operating expense
Operating expense consists of selling expense, general and
administrative expense and research and development expense.
Selling expense decreased by $0.6
million, or 90.4%, to $0.06
million for the first half of 2020 from $0.66 million for the same period of the prior
year. The decrease in selling expense was mainly due to decrease in
revenue. Accordingly, distribution costs, sales promotion and
marketing campaign related costs, and sales commissions decreased
in the first half of 2020 as compared to the same period of last
year.
General and administrative expense decreased by $0.43 million, or 33.9%, to $0.84 million for the first half of 2020 from
$1.26 million for the same period of
the prior year. The decrease in general and administrative expense
was mainly attributable to the decrease in payroll expense due to
the reduction of administrative employees and cost control strategy
during COVID-19 pandemic.
As a result, total operating expenses decreased by $1.03 million, or 53.5%, to $0.90 million for the first half of 2020 from
$1.93 million for the same period of
the prior year.
Operating loss
Loss from operations was $0.97
million for the first half of 2020, compared to $1.24 million for the same period of the prior
year. The decrease in loss from operations was the combined result
of declined business scale during COVID-19 and decrease in
operating expenses.
Investment income
Affected by COVID-19, the Company was unable to operate
normally. In order to improve capital utilization, the Company
invested idle funds in the stock markets. During the first half of
2020, the investments generated a total of $0.88 million net returns.
Net loss and loss per share
Net loss was $0.60 million, or
loss per share of $0.01, for the
first half of 2020, compared to net loss of $1.67 million, or loss per share of $0.14, for the same period of the prior year.
Financial Conditions
As of June 30, 2020, the Company
had cash, cash equivalents and restricted cash of $1.37 million, compared to $6.50 million at December
31, 2019. Accounts receivable and inventories were
$0.05 million and $0.23 million, respectively, as of June 30, 2020, compared to $0.02 million and $0.47
million, respectively, at the end of 2019. Total working
capital deficit was $7.44 million as
of June 30, 2020, compared to
$7.27 million at the end of 2019.
Net cash used in operating activities was $0.81 million for the first half of 2020,
compared to $4.72 million for the
same period of the prior year. Net cash used in investing
activities was $4.48 million for the
first half of 2020, compared to $0.03
million for the same period of the prior year. Net cash
provided by financing activities was $0.15
million for the first half of 2020, compared to $5.30 million for the same period of the prior
year.
Going Concern
Impact of COVID-19 Pandemic on the Company's operations
In light of the current circumstances and available information,
we estimate that for the year of 2020, our revenues could be
significant lower as compared to the same period of last year. At
the same time, our employee salaries and benefits have decreased
due to company restructuring started November 2019. We expect that our net loss could
be lower as compared to the same period of last year. Our assets
primarily include cash, restricted cash, short-term investments,
accounts receivable, inventory, prepaid expense and other current
assets, property, plant and equipment, intangible assets and
operating lease right-pf-use assets. Although we resumed our
business activities since May 2020,
the extent of the impact of COVID-19 on the Company's results of
operations and financial condition for the remaining months in our
fiscal year 2020 will depend on future developments, including the
duration and spread of the outbreak and the impact on the Company's
overseas customers and COVID-19 control in
all the countries including China,
which are still uncertain and
cannot be reasonably estimated at this point of time. The
Company's revenues remain negligible following the gradual
resumption of its operations in May
2020. Moreover, the Company expects that the impact of the
COVID-19 outbreak on the domestic and global economic environment
will have a material adverse effect on the demand for its products
and its ability to generate revenue going forward. Any and all of
the foregoing could have a material adverse impact on its business,
operating results and financial condition. Due to the effects of
the outbreak of COVID-19 discussed above, to the extent we
experience a further adverse operating environment or incur
unanticipated capital expenditure requirements, or if we decide to
accelerate our growth, then additional financing may be required.
Such financing may include the use of additional debt or the sale
of additional equity securities. We cannot guarantee, however, that
additional financing, if required, would be available at all or on
favorable terms.
Notice
Rounding amounts and percentages: Certain amounts and
percentages included in this press release have been rounded for
ease of presentation. Percentage figures included in this press
release have not in all cases been calculated on the basis of such
rounded figures, but on the basis of such amounts prior to
rounding. For this reason, certain percentage amounts in this press
release may vary from those obtained by performing the same
calculations using the figures in the financial statements. In
addition, certain other amounts that appear in this press release
may not sum due to rounding.
About TDH Holdings, Inc.
Founded in April 2002, TDH
Holdings, Inc. (the "Company") (NASDAQ: PETZ), is a developer,
manufacturer and distributer of a variety of pet food products
under multiple brands that are sold in the China, Asia
and Europe. More information about
the Company can be found at www.tiandihui.com.
Safe Harbor Statement
This news release contains forward-looking statements.
Without limiting the generality of the foregoing, words such as
"may," "will," "expect," "believe," "anticipate," "intend,"
"could," "estimate" or "continue" or the negative or other
variations thereof or comparable terminology are intended to
identify forward-looking statements. These statements are only
predictions, uncertainties and other factors may cause the
Company's actual results, levels of activity, performance or
achievements to be materially different from any future results,
levels or activity, performance or achievements expressed or
implied by these forward-looking statements. Specifically, the
Company's statements regarding, among others, its growth and
business outlook, the Company's ability to execute on its business
plan, secure necessary capital to sustain and maintain its
operations, its ability to resume its operations at the previous
levels, its ability to successfully resolve various legal
proceedings in which it is involved, are forward-looking
statements. In addition, any statements that refer to expectations,
projections or other characterizations of future events or
circumstances are forward-looking statements. These forward-looking
statements are not guarantees of future performance and are subject
to certain risks, uncertainties and assumptions that are difficult
to predict and many of which are beyond the control of the
Company. Actual results may differ from those projected in
the forward-looking statements due to risks and uncertainties that
are described more fully in the Company's public reports filed with
the U.S. Securities and Exchange Commission. Although the Company
believes that the assumptions underlying the forward-looking
statements are reasonable, any of the assumptions could prove
inaccurate and, therefore, there can be no assurance that the
results contemplated in forward-looking statements will be
realized. In light of the significant uncertainties inherent
in the forward-looking information included herein, the inclusion
of such information should not be regarded as a representation by
TDH or any other person that their objectives or plans will be
achieved. The Company does not undertake any obligation to revise
the forward-looking statements contained herein to reflect events
or circumstances after the date hereof or to reflect the occurrence
of unanticipated events.
TDH HOLDINGS, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
|
|
June
30,
|
|
|
December
31,
|
|
|
|
2020
|
|
|
2019
|
|
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
499,276
|
|
|
$
|
5,114,175
|
|
Restricted
cash
|
|
|
871,119
|
|
|
|
1,390,403
|
|
Short-term
investments
|
|
|
8,227,559
|
|
|
|
-
|
|
Accounts receivable,
net
|
|
|
54,085
|
|
|
|
21,657
|
|
Advances to
suppliers
|
|
|
82,902
|
|
|
|
39,806
|
|
Inventories,
net
|
|
|
234,172
|
|
|
|
473,216
|
|
Prepayments and other
current assets
|
|
|
206,001
|
|
|
|
153,633
|
|
Total current
assets
|
|
|
10,175,114
|
|
|
|
7,192,890
|
|
NON-CURRENT
ASSETS:
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
6,251,640
|
|
|
|
6,562,669
|
|
Land use rights,
net
|
|
|
945,637
|
|
|
|
973,224
|
|
Long-term
investments
|
|
|
71,757
|
|
|
|
71,757
|
|
Operating lease
right-of-use assets - related parties
|
|
|
265,118
|
|
|
|
286,670
|
|
Total non-current
assets
|
|
|
7,534,152
|
|
|
|
7,894,320
|
|
Total
assets
|
|
$
|
17,709,266
|
|
|
$
|
15,087,210
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDER'S EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
3,051,935
|
|
|
$
|
3,436,939
|
|
Accounts payable -
related parties
|
|
|
115,178
|
|
|
|
116,834
|
|
Notes
payable
|
|
|
-
|
|
|
|
908,008
|
|
Advances from
customers
|
|
|
146,100
|
|
|
|
116,155
|
|
Bank
overdrafts
|
|
|
78,320
|
|
|
|
78,320
|
|
Short term
loans
|
|
|
8,511,776
|
|
|
|
7,624,061
|
|
Short term loans -
related parties
|
|
|
931,935
|
|
|
|
892,510
|
|
Taxes
payable
|
|
|
56,989
|
|
|
|
57,521
|
|
Due to related
parties
|
|
|
38,834
|
|
|
|
39,387
|
|
Operating lease
liabilities - related parties, current
|
|
|
157,581
|
|
|
|
137,347
|
|
Other current
liabilities
|
|
|
4,523,101
|
|
|
|
1,054,818
|
|
Total current
liabilities
|
|
|
17,611,749
|
|
|
|
14,461,900
|
|
NON-CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
Deferred tax
liabilities
|
|
|
1,021
|
|
|
|
1,036
|
|
Operating lease
liabilities - related party, non-current
|
|
|
268,765
|
|
|
|
286,875
|
|
Total
liabilities
|
|
|
17,881,535
|
|
|
|
14,749,811
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
Common stock ($0.001
par value; 200,000,000 shares authorized; 45,849,995 shares issued
and outstanding at June 30, 2020 and December 31, 2019)
|
|
|
45,850
|
|
|
|
45,850
|
|
Additional paid-in
capital
|
|
|
21,963,678
|
|
|
|
21,963,678
|
|
Statutory
reserves
|
|
|
160,014
|
|
|
|
160,014
|
|
Accumulated
deficit
|
|
|
(22,578,659)
|
|
|
|
(21,974,651)
|
|
Accumulated other
comprehensive income
|
|
|
236,856
|
|
|
|
142,516
|
|
Total TDH
Holdings, Inc. stockholders' equity (deficit)
|
|
|
(172,261)
|
|
|
|
337,407
|
|
Noncontrolling
interest
|
|
|
(8)
|
|
|
|
(8)
|
|
Total
stockholders' equity (deficit)
|
|
|
(172,269)
|
|
|
|
337,399
|
|
Total liabilities
and stockholders' equity (deficit)
|
|
$
|
17,709,266
|
|
|
$
|
15,087,210
|
|
TDH HOLDINGS, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(Unaudited)
|
|
For The
Six Months
Ended
June 30,
2020
|
|
|
For The
Six Months
Ended
June 30,
2019
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
$
|
282,532
|
|
|
|
7,758,756
|
|
Net revenues -
related parties
|
|
|
-
|
|
|
|
282,510
|
|
Total
revenues
|
|
|
282,532
|
|
|
|
8,041,266
|
|
Cost of
revenues
|
|
|
353,135
|
|
|
|
7,074,142
|
|
Cost of revenues -
related parties
|
|
|
-
|
|
|
|
276,540
|
|
Total cost of
revenues
|
|
|
353,135
|
|
|
|
7,350,682
|
|
Gross profit
(loss)
|
|
|
(70,603)
|
|
|
|
690,584
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling
expense
|
|
|
63,577
|
|
|
|
658,494
|
|
General and
administrative expense
|
|
|
835,177
|
|
|
|
1,263,312
|
|
Research and
development expense
|
|
|
-
|
|
|
|
9,981
|
|
Total operating
expenses
|
|
|
898,754
|
|
|
|
1,931,787
|
|
Loss from
operations
|
|
|
(969,357)
|
|
|
|
(1,241,203)
|
|
Interest
expense
|
|
|
(569,831)
|
|
|
|
(507,355)
|
|
Government
subsidies
|
|
|
-
|
|
|
|
121,906
|
|
Other
income
|
|
|
62,547
|
|
|
|
10,034
|
|
Investment
income
|
|
|
879,520
|
|
|
|
-
|
|
Other
expenses
|
|
|
(6,744)
|
|
|
|
(53,129)
|
|
Loss from equity
method investment
|
|
|
-
|
|
|
|
(583)
|
|
Total other income
(expenses)
|
|
|
365,492
|
|
|
|
(429,127)
|
|
Loss before income
tax expense
|
|
|
(603,865)
|
|
|
|
(1,670,330)
|
|
Income tax
expense
|
|
|
143
|
|
|
|
-
|
|
Net
loss
|
|
|
(604,008)
|
|
|
|
(1,670,330)
|
|
Less: Net loss
attributable to noncontrolling interest
|
|
|
-
|
|
|
|
-
|
|
Net loss
attributable to TDH Holdings, Inc.
|
|
$
|
(604,008)
|
|
|
$
|
(1,670,330)
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(604,008)
|
|
|
$
|
(1,670,330)
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
94,340
|
|
|
|
(134,060)
|
|
Total
comprehensive loss
|
|
|
(509,668)
|
|
|
|
(1,804,390)
|
|
Less: Comprehensive
income attributable to noncontrolling interest
|
|
|
-
|
|
|
|
5
|
|
Comprehensive loss
attributable to TDH Holdings, Inc.
|
|
$
|
(509,668)
|
|
|
$
|
(1,804,395)
|
|
|
|
|
|
|
|
|
|
|
Loss per common
share attributable to TDH Holdings, Inc.
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.01)
|
|
|
$
|
(0.14)
|
|
Diluted
|
|
$
|
(0.01)
|
|
|
$
|
(0.14)
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
45,849,995
|
|
|
|
12,174,121
|
|
Diluted
|
|
|
45,849,995
|
|
|
|
12,174,121
|
|
TDH HOLDINGS, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
|
|
For The
Six Months
Ended
|
|
|
For The
Six Months
Ended
|
|
|
|
June 30,
2020
|
|
|
June 30,
2019
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
Net loss
|
|
$
|
(604,008)
|
|
|
$
|
(1,670,330)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
|
183,812
|
|
|
|
258,896
|
|
Fair value change of
short-term investments
|
|
|
(879,520)
|
|
|
|
-
|
|
Loss from equity
method investment
|
|
|
-
|
|
|
|
583
|
|
Deferred income
taxes
|
|
|
-
|
|
|
|
576
|
|
Loss on disposal of
property, plant and equipment
|
|
|
-
|
|
|
|
32,969
|
|
Non-cash lease
expense
|
|
|
17,577
|
|
|
|
37,903
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
(32,902)
|
|
|
|
(673,817)
|
|
Accounts receivable -
related parties, net
|
|
|
-
|
|
|
|
112,465
|
|
Inventories,
net
|
|
|
233,518
|
|
|
|
42,696
|
|
Operating lease
liability
|
|
|
8,179
|
|
|
|
-
|
|
Due to related
parties
|
|
|
-
|
|
|
|
10,282
|
|
Advances to
suppliers
|
|
|
(43,882)
|
|
|
|
(237,027)
|
|
Prepayments and other
current assets
|
|
|
(54,763)
|
|
|
|
285,609
|
|
Accounts
payable
|
|
|
(280,293)
|
|
|
|
(2,569,050)
|
|
Accounts payable -
related parties
|
|
|
-
|
|
|
|
(6,827)
|
|
Interest
payable
|
|
|
518,559
|
|
|
|
96,855
|
|
Notes
payable
|
|
|
-
|
|
|
|
(1,095,977)
|
|
Taxes
payable
|
|
|
143
|
|
|
|
5,584
|
|
Advances from
customers
|
|
|
31,752
|
|
|
|
535,476
|
|
Advances from
customers - related party
|
|
|
-
|
|
|
|
150,832
|
|
Other current
liabilities
|
|
|
90,675
|
|
|
|
(34,104)
|
|
|
|
|
|
|
|
|
|
|
NET CASH USED IN
OPERATING ACTIVITIES
|
|
$
|
(811,153)
|
|
|
$
|
(4,716,406)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Purchases of
short-term investments
|
|
|
(4,500,000)
|
|
|
|
-
|
|
Proceeds from sales
of short-term investments
|
|
|
26,826
|
|
|
|
-
|
|
Payments to acquire
property, plant and equipment
|
|
|
(9,244)
|
|
|
|
(28,751)
|
|
Proceeds from
disposal of property, plant and equipment
|
|
|
-
|
|
|
|
1,327
|
|
Loans to related
parties
|
|
|
-
|
|
|
|
(7,370)
|
|
Repayment from
related parties
|
|
|
-
|
|
|
|
1,282
|
|
|
|
|
|
|
|
|
|
|
NET CASH USED IN
INVESTING ACTIVITIES
|
|
$
|
(4,482,418)
|
|
|
$
|
(33,512)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of common shares
|
|
|
-
|
|
|
|
1,000,000
|
|
Proceeds from short
term loans
|
|
|
104,798
|
|
|
|
1,046,275
|
|
Repayments of short
term loans
|
|
|
(4,149)
|
|
|
|
(1,350,304)
|
|
Proceeds from short
term loans - related parties
|
|
|
49,350
|
|
|
|
4,791,403
|
|
Repayments of short
term loans - related parties
|
|
|
-
|
|
|
|
(190,070)
|
|
|
|
|
|
|
|
|
|
|
NET CASH PROVIDED
BY FINANCING ACTIVITIES
|
|
$
|
149,999
|
|
|
$
|
5,297,304
|
|
|
|
|
|
|
|
|
|
|
Effects on changes in
foreign exchange rate
|
|
|
9,389
|
|
|
|
(98,364)
|
|
Net change in cash,
cash equivalents, and restricted cash
|
|
|
(5,134,183)
|
|
|
|
449,022
|
|
Cash, cash
equivalents, and restricted cash - beginning of the
period
|
|
|
6,504,578
|
|
|
|
2,700,505
|
|
Cash, cash
equivalents, and restricted cash - end of the period
|
|
$
|
1,370,395
|
|
|
$
|
3,149,527
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
|
|
|
|
Interest
paid
|
|
$
|
37,640
|
|
|
$
|
419,809
|
|
Income taxes
paid
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
Non-cash Investing
and Financing Activities
|
|
|
|
|
|
|
|
|
Accrued interest
added to short term loans - related parties
|
|
$
|
-
|
|
|
$
|
126,697
|
|
Operating expenses
paid by related parties
|
|
$
|
-
|
|
|
$
|
5,990
|
|
Liabilities assumed
in connection with purchase of property, plant and
equipment
|
|
$
|
7,023
|
|
|
$
|
87,421
|
|
Receivables from
related parties settled with payables to related parties
|
|
$
|
-
|
|
|
$
|
26,976
|
|
Liabilities settled
with sale of property, plant and equipment
|
|
$
|
65,422
|
|
|
$
|
-
|
|
Notes payable
reclassified to short term loans
|
|
$
|
899,693
|
|
|
$
|
-
|
|
Liabilities assumed
in connection with purchase of short-term investments
|
|
$
|
347,107
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents, and restricted cash to the consolidated
balance sheets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
499,276
|
|
|
$
|
1,957,952
|
|
Restricted
cash
|
|
$
|
871,119
|
|
|
$
|
1,191,575
|
|
Total cash, cash
equivalents, and restricted cash
|
|
$
|
1,370,395
|
|
|
$
|
3,149,527
|
|
View original
content:http://www.prnewswire.com/news-releases/tdh-holdings-inc-reports-first-half-2020-financial-results-301180696.html
SOURCE TDH Holdings, Inc.