BEIJING, Feb. 15, 2013 /PRNewswire/ -- General Steel
Holdings, Inc. ("General Steel" or the "Company") (NYSE: GSI), one
of China's leading non-state-owned
producers of steel products and aggregators of domestic steel
companies, today announced that it has filed its Annual Report on
Form 10-K for the year ended December 31,
2011 with the U.S. Securities and Exchange Commission (the
"SEC"). The Company's independent registered public accounting
firm, Friedman LLP has expressed an unqualified audit opinion on
the Company's annual financial statement for the 12 months ended
December 31, 2011.
With the filing of this Annual Report on Form 10-K, the Company
believes it has met the New York Stock Exchange's ("NYSE") extended
deadline and expects to regain compliance with the NYSE's continued
listing requirement for annual report filings under Section 802.01E
of the NYSE Listed Company Manual.
"The filing of our 2011 Annual Report demonstrates our
commitment to proper financial reporting, and is the result of a
concerted effort by our finance team and audit firm partners.
Although the review and audit process for our 2011 financial
statements took much longer than originally anticipated, we are
pleased that we will regain compliance with the NYSE's Annual
Report listing requirements," said Henry
Yu, Chairman and Chief Executive Officer of General Steel.
"Moving ahead, we will continue to focus on our business while we
work diligently to prepare our 2012 financial statements and bring
General Steel fully current in its SEC filing obligations. Again, I
would like to thank our team for their tremendous work and
dedication to completing this process, as well as our shareholders
for their ongoing support of the Company."
Full Year 2011 Financial Review
- Total crude steel production capacity under management was 7.0
million metric tons per annum as of December
31, 2011.
- Total sales increased 89.4% year-over-year to $3.6 billion, from $1.9
billion in 2010. The increase was attributable to both
higher sales volume and increased average selling prices.
- Sales volume for the year totaled 6.2 million metric tons, an
increase of 2.3 million metric tons, or 58.1%, compared to 3.9
million metric tons in 2010, with an average selling price for
rebar of $635 per ton in 2011,
compared to $526 per ton in
2010.
- Gross loss was $(88.2) million,
representing a gross margin of (2.5)%, compared with gross profit
of $31.4 million, or a gross margin
of 1.7% in 2010. The gross loss in 2011 was mainly attributable to
a sharp increase in the cost of iron ore and coke, the Company's
primary raw materials, in the fourth quarter.
- Selling, general and administrative expenses totaled
$91.8 million, compared with
$52.6 million in 2010. This increase
was mainly related to operational expansion and an increase in
production and shipping volume, which led to an increase in
transportation and sales agent charges.
- Loss from operations totaled $(180.0)
million, compared with a loss from operations of
$(21.2) million in 2010.
- Finance expenses for the year ended December 31, 2011 increased to $115.0 million, compared with $51.3 million in the year-ago period. The
increase was primarily due to $27.7
million of non-cash capital financing costs, and a
$36.0 million increase in interest
expense from increased bank borrowings.
- Net loss attributable to the Company was $(177.2) million, or $(3.24) per diluted share, compared with a net
loss of $(30.0) million, or
$(0.56) per diluted share in 2010.
The year-over-year increase in net loss was primarily related to
the negative gross margin resulting from the fourth quarter raw
material price increases, an increase of $36.4 million in inventory impairment, an
increase of $39.3 million in
operating expenses from expanded operations and higher production
and shipping volume, as well as an increase of $63.7 million in finance expenses from increased
capital lease and interest expense on bank borrowings. In
addition, the Company determined that the net operating loss
carryforward may not have been fully realizable in the second
quarter of 2011 and provided 100% allowance charges of $15.4 of deferred tax assets carried over from
2010.
Fourth Quarter 2011 Financial Review
- Total sales increased 69.9% year-over-year to $793.5 million, compared with $467.2 million in the fourth quarter of 2010. The
increase was attributable to both higher sales volume and increased
average selling prices.
- Sales volume for the fourth quarter of 2011 totaled 1.6 million
metric tons, an increase of 0.7 million metric tons, or 77.8%,
compared to 0.9 million metric tons in the fourth quarter of
2010.
- Gross loss was $(150.7) million,
representing a gross margin loss of (19.0)%, compared with gross
profit of $4.7 million, or a gross
margin of 1.0% in the fourth quarter of 2010. The gross loss in the
fourth quarter of 2011 was mainly attributable to a year-over-year
increase in the cost of iron ore and coke, the Company's primary
raw materials, that exceeded the increase in the average selling
price of the Company's products.
- Selling, general and administrative expenses totaled
$26.0 million, compared with
$17.2 million in the fourth quarter
of 2010. This increase was mainly related to operational expansion
and increased production and shipping volume, which led to an
increase in transportation and sales agent charges.
- Loss from operations totaled $(176.6)
million, compared with a loss from operations of
$(12.5) million in the fourth quarter
of 2010.
- Finance expenses for the quarter ended December 31, 2011 increased to $42.6 million, compared with $13.7 million in the year-ago period. The
increase was primarily related to $18.6
million of non-cash capital financing costs, and a
$10.4 million increase in interest
expense from increased bank borrowings.
- Net loss attributable to the Company was $(131.5) million, or $(2.38) per diluted share, compared with a net
loss of $(18.6) million, or
$(0.34) per diluted share in the
fourth quarter of 2010. The year-over-year increase in net loss was
primarily related to the negative gross margin resulting from raw
material price increases, as well as an increase of $36.4 million in inventory impairment, an
increase of $8.8 million in operating
expenses from expanded operations and higher production and
shipping volume and an increase of $29.0
million in finance expenses from increased capital lease and
interest expense on bank borrowings.
Balance Sheet
As of December 31, 2011, General
Steel had cash and restricted cash of approximately $518.2 million, compared to $263.1 million as of December 31, 2010. The Company had an inventory
balance of approximately $297.7
million as of December 31,
2011, compared to $453.6
million as of December 31,
2010. As of December 31, 2011,
the Company had total liabilities of approximately $3.2 billion, compared to $1.7 billion as of December 31, 2010.
About General Steel Holdings, Inc.
General Steel Holdings, Inc., (NYSE: GSI), headquartered in
Beijing, China, operates a diverse
portfolio of Chinese steel companies. With 7 million metric tons of
crude steel production capacity under management, its subsidiaries
serve various industries and produce a variety of steel products
including rebar, high-speed wire and spiral-weld pipe. General
Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous
Region and Tianjin municipality.
For more information, please visit www.gshi-steel.com.
To be added to the General Steel email list to receive Company
news, or to request a hard copy of the Company's Annual Report on
Form 10-K, please send your request to generalsteel@tpg-ir.com.
Forward-Looking Statements
This press release may contain certain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements are based on management's
current expectations or beliefs about future events and financial,
political and social trends and assumptions it has made based on
information currently available to it. The Company cannot assure
that any expectations, forecasts or assumptions made by management
in preparing these forward-looking statements will prove accurate,
or that any projections will be realized. Actual results could
differ materially from those projected in the forward-looking
statements as a result of inaccurate assumptions or a number of
risks and uncertainties. These risks and uncertainties are set
forth in the Company's filings under the Securities Act of 1933 and
the Securities Exchange Act of 1934 under "Risk Factors" and
elsewhere, and include: (a) those risks and uncertainties related
to general economic conditions in China, including regulatory factors that may
affect such economic conditions; (b) whether the Company is able to
manage its planned growth efficiently and operate profitable
operations, including whether its management will be able to
identify, hire, train, retain, motivate and manage required
personnel or that management will be able to successfully manage
and exploit existing and potential market opportunities; (c)
whether the Company is able to generate sufficient revenues or
obtain financing to sustain and grow its operations; (d) whether
the Company is able to successfully fulfill its primary
requirements for cash; and (e) other risks, including those
disclosed in the Company's Form 10-K, filed with the SEC.
Forward-looking statements contained herein speak only as of the
date of this release. The Company does not undertake any obligation
to update or revise publicly any forward-looking statements,
whether to reflect new information, future events or
otherwise.
Contact
Us
|
|
|
|
General
Steel Holdings, Inc.
|
|
In
China:
|
In the
US:
|
Jenny
Wang
|
Joyce
Sung
|
Tel:
+86-10-5775-7691
|
Tel:
+1-347-534-1435
|
Email:
jenny.wang@gshi-steel.com
|
Email:
joyce.sung@gshi-steel.com
|
|
|
|
The
Piacente Group, Inc.
|
|
Investor Relations
|
|
Brandi
Floberg or Lee Roth
|
|
Tel:
+1-212-481-2050
|
|
Email:
generalsteel@tpg-ir.com
|
|
|
|
|
|
|
|
|
GENERAL
STEEL HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
ASSETS
|
|
As of
December 31,
|
|
|
|
|
|
2011
|
|
2010
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash
|
$
|
120,016
|
$
|
65,271
|
|
Restricted cash
|
|
398,216
|
|
197,797
|
|
Notes receivable
|
|
92,910
|
|
49,147
|
|
Restricted notes receivable
|
|
584,241
|
|
240,298
|
|
Accounts receivable, net
|
|
12,601
|
|
18,500
|
|
Accounts receivable - related
parties
|
|
20,593
|
|
4,160
|
|
Other receivables, net
|
|
22,411
|
|
11,150
|
|
Other receivables - related parties
|
|
87,679
|
|
10,938
|
|
Inventories
|
|
297,729
|
|
453,636
|
|
Advances on inventory purchase
|
|
63,585
|
|
24,577
|
|
Advances on inventory purchase - related
parties
|
|
20,244
|
|
6,187
|
|
Prepaid expense
|
|
364
|
|
5,018
|
|
Prepaid value added tax
|
|
24,189
|
|
37,323
|
|
Short-term investment
|
|
2,906
|
|
-
|
|
Deferred tax assets
|
|
167
|
|
15,301
|
|
|
TOTAL CURRENT ASSETS
|
|
1,747,851
|
|
1,139,303
|
|
|
|
|
|
|
|
|
PLANT AND EQUIPMENT, net
|
|
1,257,236
|
|
602,612
|
|
|
|
|
|
|
|
|
OTHER ASSETS:
|
|
|
|
|
|
Advances on equipment purchase
|
|
10,420
|
|
14,898
|
|
Investment in unconsolidated
entities
|
|
12,840
|
|
17,456
|
|
Long-term deferred expense
|
|
631
|
|
1,439
|
|
Intangible assets, net of accumulated
amortization
|
|
25,143
|
|
23,672
|
|
|
TOTAL OTHER ASSETS
|
|
49,034
|
|
57,465
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
$
|
3,054,121
|
$
|
1,799,380
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Short term notes payable
|
$
|
1,113,504
|
$
|
480,152
|
|
Accounts payable
|
|
413,345
|
|
241,367
|
|
Accounts payable - related parties
|
|
121,828
|
|
79,694
|
|
Short term loans - bank
|
|
253,954
|
|
285,198
|
|
Short term loans - others
|
|
246,657
|
|
127,712
|
|
Short term loans - related parties
|
|
15,710
|
|
14,548
|
|
Other payables and accrued
liabilities
|
|
49,538
|
|
30,087
|
|
Other payable - related parties
|
|
28,873
|
|
18,214
|
|
Customer deposit
|
|
90,556
|
|
133,464
|
|
Customer deposit - related parties
|
|
68,277
|
|
54,922
|
|
Deposit due to sales representatives
|
|
22,890
|
|
51,624
|
|
Deposit due to sales representatives - related
parties
|
|
943
|
|
455
|
|
Taxes payable
|
|
11,374
|
|
6,237
|
|
Deferred lease income, current
|
|
2,099
|
|
1,971
|
|
Capital lease obligations, current
|
|
25,607
|
|
-
|
|
|
TOTAL CURRENT LIABILITIES
|
|
2,465,155
|
|
1,525,645
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES:
|
|
|
|
|
|
Long-term loans - related party
|
|
92,035
|
|
91,020
|
|
Deferred lease income, noncurrent
|
|
76,425
|
|
55,620
|
|
Capital lease obligations,
noncurrent
|
|
280,743
|
|
-
|
|
Profit sharing liability, noncurrent
|
|
303,233
|
|
-
|
|
|
TOTAL NON-CURRENT LIABILITIES
|
|
752,436
|
|
146,640
|
|
|
|
|
|
|
|
|
DERIVATIVE LIABILITIES
|
|
10
|
|
5,573
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
|
3,217,601
|
|
1,677,858
|
|
|
|
|
|
|
|
|
COMMITMENT AND CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
|
Preferred
stock, $0.001 par value, 50,000,000 shares authorized, 3,092,899
shares
issued and outstanding as of December 31, 2011 and 2010
|
|
3
|
|
3
|
|
Common
Stock, $0.001 par value, 200,000,000 shares authorized, 56,601,988
and
54,678,083 issued, 55,511,010 and 54,522,973 outstanding as of December 31, 2011
and 2010, respectively
|
|
56
|
|
55
|
|
Treasury
stock, at cost, 1,090,978 and 316,760 shares as of
|
|
|
|
|
|
|
December
31, 2011 and 2010, respectively
|
|
(2,795)
|
|
(871)
|
|
Paid-in-capital
|
|
107,940
|
|
104,970
|
|
Statutory reserves
|
|
6,388
|
|
6,202
|
|
Accumulated deficits
|
|
(229,083)
|
|
(51,793)
|
|
Accumulated other comprehensive
income
|
|
10,200
|
|
10,987
|
|
|
TOTAL GENERAL STEEL HOLDINGS, INC.
EQUITY
|
|
(107,291)
|
|
69,553
|
|
|
|
|
|
|
|
|
NONCONTROLLING INTERESTS
|
|
(56,189)
|
|
51,969
|
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY
|
|
(163,480)
|
|
121,522
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY
|
$
|
3,054,121
|
$
|
1,799,380
|
|
|
|
|
|
|
GENERAL
STEEL HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER
COMPREHENSIVE INCOME (LOSS)
FOR THE
YEARS ENDED DECEMBER 31, 2011 AND 2010
(In
thousands, except per share data)
|
|
|
|
For the
Year Ended
December
31,
|
|
|
|
2011
|
|
2010
|
SALES
|
|
$
|
2,452,127
|
$
|
1,392,770
|
SALES -
RELATED PARTIES
|
|
|
1,111,769
|
|
489,370
|
TOTAL SALES
|
|
|
3,563,896
|
|
1,882,140
|
|
|
|
|
|
|
COST OF
GOODS SOLD
|
|
|
2,519,183
|
|
1,369,523
|
COST OF
GOODS SOLD - RELATED PARTIES
|
|
1,132,927
|
|
481,202
|
TOTAL COST OF GOODS
SOLD
|
|
|
3,652,110
|
|
1,850,725
|
GROSS
PROFIT (LOSS)
|
|
|
(88,214)
|
|
31,415
|
SELLING,
GENERAL AND ADMINISTRATIVE EXPENSES
|
|
91,827
|
|
52,577
|
INCOME
(LOSS) FROM OPERATIONS
|
|
|
(180,041)
|
|
(21,162)
|
OTHER
INCOME (EXPENSE)
|
|
|
|
|
|
Interest income
|
|
|
7,892
|
|
6,154
|
Finance/interest
expense
|
|
|
(114,949)
|
|
(51,283)
|
Change in fair value of derivative
liabilities
|
|
|
5,563
|
|
15,055
|
Gain on debt settlement
|
|
|
3,430
|
|
-
|
Gain (loss) on disposal of
equipment
|
|
|
693
|
|
(9,447)
|
Realized income from future
contracts
|
|
|
415
|
|
1,424
|
Income from equity
investments
|
|
|
5,302
|
|
6,383
|
Foreign currency transaction
gain
|
|
|
3,424
|
|
-
|
Lease income
|
|
|
2,008
|
|
943
|
Other non-operating income
(expense), net
|
|
(1,442)
|
|
(3,120)
|
Other expense, net
|
|
|
(87,664)
|
|
(33,891)
|
LOSS BEFORE PROVISION FOR INCOME TAXES
AND
NONCONTROLLING INTEREST
|
|
|
(267,705)
|
|
(55,053)
|
PROVISION
FOR INCOME TAXES
|
|
|
|
|
|
Current
|
|
|
175
|
|
1,267
|
Deferred
|
|
|
15,419
|
|
(10,049)
|
Provision (benefit) for income taxes
|
|
|
15,594
|
|
(8,782)
|
|
|
|
|
|
|
NET
LOSS
|
|
|
(283,299)
|
|
(46,271)
|
Less: Net
loss attributable to noncontrolling interest
|
|
(106,112)
|
|
(16,265)
|
NET LOSS
ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC.
|
|
$
|
(177,187)
|
$
|
(30,006)
|
NET
LOSS
|
|
$
|
(283,299)
|
$
|
(46,271)
|
OTHER
COMPREHENSIVE LOSS
|
|
|
|
|
|
Foreign
currency translation adjustments
|
|
|
(587)
|
|
4,623
|
COMPREHENSIVE LOSS
|
|
|
(283,886)
|
|
(41,648)
|
Less:
Comprehensive loss attributable to noncontrolling
interest
|
|
|
(105,912)
|
|
(14,511)
|
COMPREHENSIVE LOSS ATTRIBUTABLE TO GENERAL STEEL
HOLDINGS, INC.
|
|
$
|
(177,974)
|
$
|
(27,137)
|
|
|
|
|
|
|
WEIGHTED
AVERAGE NUMBER OF SHARES
|
|
|
|
|
Basic and Diluted
|
|
|
54,750
|
|
53,113
|
LOSS PER
SHARE
|
|
|
|
|
|
Basic and Diluted
|
|
$
|
(3.24)
|
$
|
(0.56)
|
GENERAL
STEEL HOLDINGS, INC. AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER
COMPREHENSIVE LOSS
|
FOR THE
THREE MONTHS ENDED DECEMBER 31, 2011 AND 2010
|
(UNAUDITED)
(In
thousands, except per share data)
|
|
|
For the
Three Months Ended
December
31,
|
|
|
2011
|
|
2010
|
SALES
|
$
|
473,612
|
$
|
351,266
|
SALES -
RELATED PARTIES
|
|
319,928
|
|
115,895
|
TOTAL SALES
|
|
793,540
|
|
467,161
|
COST OF
GOODS SOLD
|
|
588,731
|
|
347,671
|
COST OF
GOODS SOLD - RELATED PARTIES
|
|
355,462
|
|
114,774
|
TOTAL COST OF GOODS
SOLD
|
|
944,193
|
|
462,445
|
GROSS
PROFIT (LOSS)
|
|
(150,653)
|
|
4,716
|
SELLING,
GENERAL AND ADMINISTRATIVE
EXPENSES
|
|
25,984
|
|
17,204
|
LOSS FROM
OPERATIONS
|
|
(176,637)
|
|
(12,488)
|
OTHER
INCOME (EXPENSE)
|
|
|
|
|
Interest income
|
|
4,812
|
|
2,678
|
Finance/interest
expense
|
|
(42,632)
|
|
(13,666)
|
Change in fair value of derivative
liabilities
|
|
37
|
|
1,476
|
Gain on debt settlement
|
|
-
|
|
-
|
Gain (loss) on disposal of
equipment
|
|
14
|
|
(6,323)
|
Realized income from future
contracts
|
|
415
|
|
1,424
|
Income from equity
investments
|
|
1,001
|
|
2,316
|
Foreign currency transaction
gain
|
|
504
|
|
-
|
Lease income
|
|
519
|
|
345
|
Other non-operating expense,
net
|
|
(245)
|
|
(6,655)
|
Other expense, net
|
|
(35,575)
|
|
(18,405)
|
LOSS
BEFORE PROVISION FOR INCOME TAXES
|
|
|
|
|
AND NONCONTROLLING
INTEREST
|
|
(212,212)
|
|
(30,893)
|
PROVISION
FOR INCOME TAXES
|
|
|
|
|
Current
|
|
(442)
|
|
407
|
Deferred
|
|
35
|
|
(4,105)
|
Provision (benefit) for income taxes
|
|
(407)
|
|
(3,698)
|
NET
LOSS
|
|
(211,805)
|
|
(27,195)
|
Less: Net
loss attributable to noncontrolling interest
|
|
(80,280)
|
|
(8,589)
|
NET LOSS
ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC.
|
$
|
(131,525)
|
$
|
(18,606)
|
NET
LOSS
|
$
|
(211,805)
|
$
|
(27,195)
|
OTHER
COMPREHENSIVE LOSS
|
|
|
|
|
Foreign currency translation
adjustments
|
|
(2,986)
|
|
1,177
|
COMPREHENSIVE LOSS
|
|
(214,791)
|
|
(26,018)
|
Less:
Comprehensive loss attributable to noncontrolling
interest
|
|
(80,395)
|
|
(8,032)
|
COMPREHENSIVE LOSS ATTRIBUTABLE TO GENERAL STEEL
HOLDINGS, INC.
|
$
|
(134,396)
|
$
|
(17,986)
|
WEIGHTED
AVERAGE NUMBER OF SHARES
|
|
|
|
|
Basic and Diluted
|
|
55,352
|
|
54,698
|
LOSS PER
SHARE
|
|
|
|
|
Basic and Diluted
|
$
|
(2.38)
|
$
|
(0.34)
|
GENERAL
STEEL HOLDINGS, INC. AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
FOR THE
YEARS ENDED DECEMBER 31, 2011 AND 2010
|
(In
thousands)
|
|
|
|
For
the Year Ended December 31,
|
|
|
2011
|
|
|
2,010
|
CASH FLOWS
FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
Net
loss
|
$
|
(283,299)
|
|
$
|
(46,271)
|
|
Adjustments to reconcile net loss to cash provided by
(used in)
|
|
|
|
|
|
operating
activities:
|
|
|
|
|
|
|
Depreciation, amortization and depletion
|
|
58,331
|
|
|
41,153
|
|
|
Impairment
of plant and equipment
|
|
5,424
|
|
|
1,747
|
|
|
Change in
fair value of derivative liabilities
|
|
(5,563)
|
|
|
(15,055)
|
|
|
Gain on
debt settlement
|
|
(3,430)
|
|
|
-
|
|
|
(Gain)
loss on disposal of equipment
|
|
(693)
|
|
|
8,257
|
|
|
Bad debt
allowance
|
|
3,529
|
|
|
326
|
|
|
Inventory
written-off
|
|
37,512
|
|
|
1,061
|
|
|
Stock
issued for services and compensation
|
|
1,530
|
|
|
2,479
|
|
|
Income
from compensation
|
|
-
|
|
|
(1,377)
|
|
|
Make whole
shares interest expense on notes conversion
|
|
-
|
|
|
1,130
|
|
|
Amortization of deferred note issuance cost and
discount on convertible notes
|
|
-
|
|
|
17
|
|
|
Amortization of deferred financing cost on capital
lease
|
|
27,704
|
|
|
-
|
|
|
Income
from equity investments
|
|
(5,302)
|
|
|
(6,383)
|
|
|
Deferred
tax assets
|
|
15,419
|
|
|
(10,058)
|
|
|
Deferred
lease income
|
|
4,782
|
|
|
5,549
|
|
|
Foreign
currency transaction gain
|
|
(3,424)
|
|
|
-
|
|
Changes in
operating assets and liabilities
|
|
|
|
|
|
|
|
Notes
receivable
|
|
(41,318)
|
|
|
(18,498)
|
|
|
Notes
receivable - restricted
|
|
(329,839)
|
|
|
(234,342)
|
|
|
Accounts
receivable
|
|
4,761
|
|
|
(8,647)
|
|
|
Accounts
receivable - related parties
|
|
(16,015)
|
|
|
14,065
|
|
|
Other
receivables
|
|
(12,638)
|
|
|
(3,210)
|
|
|
Other
receivables - related parties
|
|
(50,562)
|
|
|
(2,968)
|
|
|
Inventories
|
|
131,695
|
|
|
(270,046)
|
|
|
Advances
on inventory purchases
|
|
(37,674)
|
|
|
4,681
|
|
|
Advances
on inventory purchases - related parties
|
|
(13,608)
|
|
|
13,782
|
|
|
Prepaid
expense
|
|
4,753
|
|
|
-
|
|
|
Long-term
deferred expense
|
|
845
|
|
|
-
|
|
|
Prepaid
value added tax
|
|
14,223
|
|
|
-
|
|
|
Accounts
payable
|
|
160,657
|
|
|
76,003
|
|
|
Accounts
payable - related parties
|
|
38,647
|
|
|
45,480
|
|
|
Other
payables and accrued liabilities
|
|
18,076
|
|
|
(1,527)
|
|
|
Other
payables - related parties
|
|
9,845
|
|
|
30,618
|
|
|
Customer
deposits
|
|
(46,870)
|
|
|
(24,433)
|
|
|
Customer
deposits - related parties
|
|
11,211
|
|
|
18,855
|
|
|
Taxes
payable
|
|
4,834
|
|
|
(19,543)
|
Net cash
used in operating activities
|
|
(296,457)
|
|
|
(397,155)
|
|
|
|
|
|
|
|
|
CASH FLOWS
FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
Restricted
cash
|
|
(190,178)
|
|
|
741
|
|
Acquired
long term investment
|
|
-
|
|
|
(2,021)
|
|
Cash
proceeds from disposal of long-term investment
|
|
-
|
|
|
8,137
|
|
Cash made
to short term investment
|
|
(2,858)
|
|
|
-
|
|
Cash
proceeds from sales of equipment
|
|
1,306
|
|
|
1,828
|
|
Advance on
equipment purchases
|
|
-
|
|
|
(7,106)
|
|
Equipment
purchase and intangible assets
|
|
(110,939)
|
|
|
(89,916)
|
Net cash
used in investing activities
|
|
(302,669)
|
|
|
(88,337)
|
|
|
|
|
|
|
|
CASH FLOWS
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
Payments
made to dividend distribution
|
|
-
|
|
|
(2,855)
|
|
Payments
made for treasury stock acquired
|
|
(1,923)
|
|
|
(870)
|
|
Capital
contributed by noncontrolling interest
|
|
-
|
|
|
1,184
|
|
Borrowings
on short term loans - bank
|
|
563,007
|
|
|
327,807
|
|
Payments
on short term loans - bank
|
|
(600,294)
|
|
|
(199,905)
|
|
Borrowings
on short term loan - others
|
|
330,037
|
|
|
152,517
|
|
Payments
on short term loans - others
|
|
(212,661)
|
|
|
(174,913)
|
|
Borrowings
on short term loan - related parties
|
|
15,450
|
|
|
71,714
|
|
Payments
on short term loans - related parties
|
|
(14,817)
|
|
|
(11,850)
|
|
Borrowings
on short term notes payable
|
|
1,655,741
|
|
|
905,124
|
|
Payments
on short term notes payable
|
|
(1,049,680)
|
|
|
(693,633)
|
|
Deposits
due to sales representatives
|
|
(30,066)
|
|
|
987
|
|
Deposit
due to sales representatives - related parties
|
|
464
|
|
|
444
|
|
Borrowings
on long term loan - related parties
|
|
14,677
|
|
|
91,020
|
|
Payments
on long term loan - related parties
|
|
(16,865)
|
|
|
-
|
Net cash
provided by financing activities
|
|
653,070
|
|
|
466,771
|
|
|
|
|
|
|
|
EFFECTS OF
EXCHANGE RATE CHANGE IN CASH
|
|
801
|
|
|
1,874
|
|
|
|
|
|
|
|
INCREASE
(DECREASE) IN CASH
|
|
54,745
|
|
|
(16,847)
|
|
|
|
|
|
|
|
CASH,
beginning of year
|
|
65,271
|
|
|
82,118
|
|
|
|
|
|
|
|
CASH, end
of year
|
$
|
120,016
|
|
$
|
65,271
|
SOURCE General Steel Holdings, Inc.