BEIJING, June 18, 2013 /PRNewswire/ -- General Steel
Holdings, Inc. ("General Steel" or the "Company") (NYSE: GSI), a
leading non-state-owned steel producer in China, today announced financial results for
the third quarter ended September 30,
2012, fourth quarter of 2012 and full-year ended
December 31, 2012. In conjunction
with this announcement, the Company has filed the corresponding
Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 and Annual Report on Form 10-K
for year ended 2012 ("2012 Annual Report") with the U.S. Securities
& Exchange Commission (the "SEC"). Upon the filing of the 2012
Annual Report, the Company has regained compliance with the New
York Stock Exchange's ("NYSE") continued listing standards relating
to the filing of its 2012 Annual Report.
"We are pleased to have completed the filing of our 2012 Annual
Report, and thereby regaining compliance with the NYSE's continued
listing requirement that we file our Annual Report," said
Henry Yu, Chairman and Chief
Executive Officer of General Steel. "Again, I would like to thank
our finance team for their diligent efforts in completing these
filings and we look forward to soon updating the investment
community on our business strategy and development efforts for 2013
and beyond."
"According to the China Iron and Steel Association, 2012
was the most difficult year in the last decade for China's steel industry. Due to the
economic slowdown and an oversupply of inventory, steel prices
declined sharply in 2012, and, as a result, more Chinese steel
companies suffered net losses in 2012[1]. Given the
challenging macro environment, we strategically focused on
optimizing and upgrading our production capability and on
strengthening our market competitiveness via our geographic
advantages in Western China and
through cooperation with the government and state-owned
enterprises. Our efforts helped us achieve positive gross
profits and narrow net losses for the year. Looking ahead, we
remain focused on further strengthening our geographic advantages
in Western China, while forging
ahead with upgrading our production capability and improving
operating efficiency."
[1] Source: Press release distributed by China Iron and Steel
Association on February 1,
2013.
Full Year 2012 Financial Review
- Revenue decreased 19.6% year-over-year to $2.9 billion, from $3.6
billion in 2011, mainly due to decreased sales volumes as
well as a decrease in average selling price of rebar products.
- Sales volume totaled approximately 5.3 million metric tons,
compared with 6.2 million metric tons in 2011.
- Gross profit totaled $32.1
million, or 1.1% of revenue, compared with gross loss of
$(88.2) million, or gross margin of
negative (2.5%) in 2011.
- Operating loss for the year improved to $(73.0) million, compared with an operating loss
of $(180.0) million in 2011.
- Net loss attributable to the Company narrowed to $(152.7) million, or $(2.78) per diluted share based on 54.9 million
weighted average shares outstanding, compared with a net loss of
$(177.2) million, or $(3.24) per diluted share based on 54.8 million
weighted average shares outstanding in 2011.
The decreased net loss in 2012 was primarily attributable to
improved gross profit, a decrease in operating loss, offset by an
increase of $70.5 million in other
expenses as compared to the same period of 2012. The increase in
other expenses are mainly due to increased finance expanse, which
include an increase of $15.4 million
in interest expense on capital lease, and $45.9 million in interest expense on bank
borrowings, related parties borrowings, and discounted notes
receivables.
Third Quarter 2012 Financial Review
- Revenue decreased 28.7% year-over-year to $711.4 million, from $998.2 million in the third quarter of 2011.
- Sales volume totaled approximately 1.4 million metric tons,
down from 1.7 million metric tons in the third quarter of
2011.
- Gross loss was $(13.6) million,
or negative (1.9%) of revenue, compared with gross profit of
$34.1 million, or 3.4% of revenue in
the third quarter of 2011.
- Operating loss for the quarter was $(36.4) million, compared with an operating
income of $9.7 million in the third
quarter of 2011.
- Net loss attributable to the Company was $(41.6) million, or $(0.76) per diluted share based on 54.5 million
weighted average shares outstanding, compared with a net loss of
$(13.8) million, or $(0.25) per diluted share based on 55.2 million
weighted average shares outstanding in the third quarter of
2011.
Fourth Quarter 2012 Financial Review
- Revenue decreased 8.8% year-over-year to $723.4 million, from $793.5 million in the fourth quarter of
2011.
- Sales volume totaled approximately 1.4 million metric tons,
compared with 1.6 million metric tons in the fourth quarter of
2011.
- Gross profit totaled $12.0
million, or 1.7% of revenue, compared with gross loss of
$(150.7) million, or negative (19.0%)
of revenue in the fourth quarter of 2011.
- Operating loss for the quarter decreased to $(31.5) million, compared with $(176.6) million in the fourth quarter of
2011.
- Net loss attributable to the Company was $(49.9) million, or $(0.91) per diluted share based on 54.9 million
weighted average shares outstanding, compared with a net loss of
$(131.5) million, or $(2.38) per diluted share based on 55.4 million
weighted average shares outstanding in the fourth quarter of
2011.
Balance Sheet
As of December 31, 2012, the
Company had cash and restricted cash of approximately $369.9 million, compared to $518.2 million as of December 31, 2011. The Company had an inventory
balance of approximately $212.7
million as of December 31,
2012, compared to $297.7
million as of December 31,
2011. As of December 31, 2012,
the Company had total liabilities of approximately $3.1 billion.
About General Steel Holdings, Inc.
General Steel Holdings, Inc., headquartered in Beijing, China, produces a variety of steel
products including rebar, high-speed wire and spiral-weld pipe. The
Company has operations in China's
Shaanxi and Guangdong provinces, Inner Mongolia Autonomous
Region and Tianjin municipality
with seven million metric tons of crude steel production capacity
under management. 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@asiabridgegroup.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 our 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:
Jenny Wang
Tel: +86-10-5775-7691
Email: jenny.wang@gshi-steel.com
In the US:
Joyce Sung
Tel: +1-347-534-1435
Email: joyce.sung@gshi-steel.com
Asia Bridge Capital Limited
Carene Toh
Tel: +1-888-957-3362
Email: generalsteel@asiabridgegroup.com
GENERAL STEEL
HOLDINGS, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(UNAUDITED)
|
(In
thousands)
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
ASSETS
|
2012
|
|
2012
|
|
2011
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
|
|
Cash
|
$
|
46,467
|
|
$
|
83,602
|
|
$
|
120,016
|
|
Restricted
cash
|
|
323,420
|
|
|
436,302
|
|
|
398,216
|
|
Notes
receivable
|
|
145,502
|
|
|
190,507
|
|
|
92,910
|
|
Restricted notes
receivable
|
|
357,900
|
|
|
67,562
|
|
|
584,241
|
|
Loans receivable -
related parties
|
|
69,319
|
|
|
67,159
|
|
|
-
|
|
Accounts receivable,
net
|
|
6,695
|
|
|
7,656
|
|
|
12,601
|
|
Accounts receivable -
related parties
|
|
14,966
|
|
|
28,346
|
|
|
20,593
|
|
Other receivables,
net
|
|
8,407
|
|
|
20,129
|
|
|
22,411
|
|
Other receivables -
related parties
|
|
68,382
|
|
|
65,250
|
|
|
87,679
|
|
Inventories
|
|
212,671
|
|
|
225,490
|
|
|
297,729
|
|
Advances on inventory
purchase
|
|
79,715
|
|
|
82,060
|
|
|
63,585
|
|
Advances on inventory
purchase - related parties
|
|
46,416
|
|
|
78,860
|
|
|
20,244
|
|
Prepaid expense and
other
|
|
450
|
|
|
549
|
|
|
531
|
|
Prepaid
taxes
|
|
24,116
|
|
|
20,212
|
|
|
24,189
|
|
Short-term
investment
|
|
2,619
|
|
|
2,889
|
|
|
2,906
|
TOTAL CURRENT
ASSETS
|
|
1,407,045
|
|
|
1,376,573
|
|
|
1,747,851
|
|
|
|
|
|
|
|
|
|
PLANT AND EQUIPMENT,
net
|
|
1,167,836
|
|
|
1,197,472
|
|
|
1,257,236
|
|
|
|
|
|
|
|
|
|
OTHER
ASSETS:
|
|
|
|
|
|
|
|
|
|
Advances on equipment
purchase
|
|
6,499
|
|
|
6,748
|
|
|
10,420
|
|
Long-term other
receivable
|
|
43,008
|
|
|
-
|
|
|
-
|
|
Investment in
unconsolidated entities
|
|
1,166
|
|
|
1,027
|
|
|
12,840
|
|
Long-term loan
receivable - related party
|
|
-
|
|
|
2,000
|
|
|
-
|
|
Long-term deferred
expense
|
|
1,062
|
|
|
517
|
|
|
631
|
|
Intangible assets,
net of accumulated
amortization
|
|
24,066
|
|
|
24,227
|
|
|
25,143
|
TOTAL OTHER
ASSETS
|
|
75,801
|
|
|
34,519
|
|
|
49,034
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
$
|
2,650,682
|
|
$
|
2,608,564
|
|
$
|
3,054,121
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
DEFICIENCY
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
Short term notes
payable
|
$
|
983,813
|
|
$
|
867,769
|
|
$
|
1,113,504
|
|
Accounts
payable
|
|
352,052
|
|
|
338,812
|
|
|
413,345
|
|
Accounts payable -
related parties
|
|
177,432
|
|
|
117,662
|
|
|
121,828
|
|
Short term loans -
bank
|
|
147,124
|
|
|
139,752
|
|
|
253,954
|
|
Short term loans -
others
|
|
147,323
|
|
|
212,720
|
|
|
246,657
|
|
Short term loans -
related parties
|
|
79,557
|
|
|
82,069
|
|
|
15,710
|
|
Current maturities of
long-term loans - related
party
|
|
54,885
|
|
|
49,997
|
|
|
-
|
|
Other payables and
accrued liabilities
|
|
54,589
|
|
|
74,640
|
|
|
49,548
|
|
Other payable -
related parties
|
|
73,025
|
|
|
118,585
|
|
|
28,873
|
|
Customer
deposits
|
|
125,890
|
|
|
81,761
|
|
|
90,556
|
|
Customer deposits -
related parties
|
|
21,998
|
|
|
83,518
|
|
|
68,277
|
|
Deposit due to sales
representatives
|
|
33,870
|
|
|
34,987
|
|
|
22,890
|
|
Deposit due to sales
representatives - related
parties
|
|
1,238
|
|
|
1,235
|
|
|
943
|
|
Taxes
payable
|
|
16,674
|
|
|
6,498
|
|
|
11,374
|
|
Deferred lease
income, current
|
|
2,120
|
|
|
2,115
|
|
|
2,099
|
|
TOTAL CURRENT
LIABILITIES
|
|
2,271,590
|
|
|
2,212,120
|
|
|
2,439,558
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
Long-term loans -
related party
|
|
38,088
|
|
|
42,741
|
|
|
92,035
|
|
Long-term other
payable - related party
|
|
43,008
|
|
|
-
|
|
|
-
|
|
Deferred lease income,
noncurrent
|
|
75,079
|
|
|
75,418
|
|
|
76,425
|
|
Capital lease
obligations
|
|
330,099
|
|
|
324,171
|
|
|
306,350
|
|
Profit sharing
liability
|
|
328,827
|
|
|
322,386
|
|
|
303,233
|
|
TOTAL
NON-CURRENT LIABILITIES
|
|
815,101
|
|
|
764,716
|
|
|
778,043
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
3,086,691
|
|
|
2,976,836
|
|
|
3,217,601
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEFICIENCY:
|
|
|
|
|
|
|
|
|
|
Preferred stock,
$0.001 par value, 50,000,000
shares authorized,
3,092,899 shares issued and
outstanding as of
December 31, 2012,
September 30, 2012 and
December 31, 2011
|
|
3
|
|
|
3
|
|
|
3
|
|
Common stock, $0.001
par value, 200,000,000
shares authorized,
57,269,838, 57,100,688 and
56,601,988 shares
issued, 54,797,532,
54,628,382 and
55,511,010 shares outstanding
as of December 31,
2012, September 30, 2012
and December 31, 2011,
respectively
|
|
57
|
|
|
57
|
|
|
56
|
|
Treasury stock, at
cost, 2,472,306, 2,472,306
and 1,090,978 shares
as of December 31, 2012,
September 30, 2012 and
December 31, 2011
|
|
(4,199)
|
|
|
(4,199)
|
|
|
(2,795)
|
|
Paid-in-capital
|
|
105,714
|
|
|
105,475
|
|
|
107,940
|
|
Statutory
reserves
|
|
6,076
|
|
|
6,078
|
|
|
6,388
|
|
Accumulated
deficits
|
|
(381,782)
|
|
|
(331,842)
|
|
|
(229,083)
|
|
Accumulated
other comprehensive income
|
|
10,185
|
|
|
10,008
|
|
|
10,200
|
|
TOTAL GENERAL
STEEL
HOLDINGS, INC.
DEFICIENCY
|
|
(263,946)
|
|
|
(214,420)
|
|
|
(107,291)
|
|
|
|
|
|
|
|
|
|
NONCONTROLLING
INTERESTS
|
|
(172,063)
|
|
|
(153,852)
|
|
|
(56,189)
|
|
TOTAL
DEFICIENCY
|
|
(436,009)
|
|
|
(368,272)
|
|
|
(163,480)
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
DEFICIENCY
|
$
|
2,650,682
|
|
$
|
2,608,564
|
|
$
|
3,054,121
|
GENERAL STEEL
HOLDINGS, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
FOR THE THREE AND
NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011
|
(UNAUDITED)
|
(In thousands, except
per share data)
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES
|
|
$
|
518,542
|
|
$
|
662,437
|
|
$
|
1,441,325
|
|
$
|
1,978,515
|
SALES - RELATED
PARTIES
|
|
|
192,883
|
|
|
335,724
|
|
|
698,824
|
|
|
791,841
|
TOTAL
SALES
|
|
|
711,425
|
|
|
998,161
|
|
|
2,140,149
|
|
|
2,770,356
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF GOODS
SOLD
|
|
|
528,586
|
|
|
639,239
|
|
|
1,426,589
|
|
|
1,930,452
|
COST OF GOODS SOLD -
RELATED
PARTIES
|
|
|
196,435
|
|
|
324,872
|
|
|
693,482
|
|
|
777,465
|
TOTAL COST OF
GOODS SOLD
|
|
|
725,021
|
|
|
964,111
|
|
|
2,120,071
|
|
|
2,707,917
|
GROSS PROFIT
(LOSS)
|
|
|
(13,596)
|
|
|
34,050
|
|
|
20,078
|
|
|
62,439
|
SELLING, GENERAL
AND
ADMINISTRATIVE
EXPENSES
|
|
|
22,787
|
|
|
24,309
|
|
|
61,548
|
|
|
65,843
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM
OPERATIONS
|
|
|
(36,383)
|
|
|
9,741
|
|
|
(41,470)
|
|
|
(3,404)
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
4,337
|
|
|
1,201
|
|
|
13,039
|
|
|
3,080
|
Finance/interest expense
|
|
|
(36,615)
|
|
|
(35,081)
|
|
|
(138,929)
|
|
|
(72,317)
|
Change in fair
value of derivative liabilities
|
|
|
(55)
|
|
|
135
|
|
|
(48)
|
|
|
5,526
|
Gain on debt
settlement
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,430
|
Gain on
disposal of equipment
|
|
|
293
|
|
|
689
|
|
|
177
|
|
|
679
|
Income from
equity investments
|
|
|
44
|
|
|
790
|
|
|
80
|
|
|
4,301
|
Foreign
currency transaction gain (loss)
|
|
|
(581)
|
|
|
1,271
|
|
|
(1,169)
|
|
|
2,920
|
Lease
income
|
|
|
528
|
|
|
525
|
|
|
1,588
|
|
|
1,489
|
Other
non-operating income (expense), net
|
|
|
2,314
|
|
|
(1,047)
|
|
|
3,316
|
|
|
(1,197)
|
Other expense, net
|
|
|
(29,735)
|
|
|
(31,517)
|
|
|
(121,946)
|
|
|
(52,089)
|
LOSS BEFORE PROVISION
FOR INCOME
TAXES AND
NONCONTROLLING
INTEREST
|
|
|
(66,118)
|
|
|
(21,776)
|
|
|
(163,416)
|
|
|
(55,493)
|
PROVISION FOR INCOME
TAXES
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
100
|
|
|
410
|
|
|
510
|
|
|
617
|
Deferred
|
|
|
-
|
|
|
144
|
|
|
169
|
|
|
15,384
|
Provision for income taxes
|
|
|
100
|
|
|
554
|
|
|
679
|
|
|
16,001
|
NET LOSS
|
|
|
(66,218)
|
|
|
(22,330)
|
|
|
(164,095)
|
|
|
(71,494)
|
Less: Net loss
attributable to noncontrolling
interest
|
|
|
(24,620)
|
|
|
(8,500)
|
|
|
(61,336)
|
|
|
(25,832)
|
NET LOSS ATTRIBUTABLE
TO GENERAL
STEEL HOLDINGS,
INC.
|
|
$
|
(41,598)
|
|
$
|
(13,830)
|
|
$
|
(102,759)
|
|
$
|
(45,662)
|
NET LOSS
|
|
$
|
(66,218)
|
|
$
|
(22,330)
|
|
$
|
(164,095)
|
|
$
|
(71,494)
|
OTHER COMPREHENSIVE
LOSS
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency translation adjustments
|
|
|
(698)
|
|
|
999
|
|
|
(577)
|
|
|
2,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
LOSS
|
|
|
(66,916)
|
|
|
(21,331)
|
|
|
(164,672)
|
|
|
(69,095)
|
Less: Comprehensive
loss attributable to
noncontrolling
interest
|
|
|
(24,888)
|
|
|
(8,247)
|
|
|
(61,721)
|
|
|
(25,517)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE LOSS
ATTRIBUTABLE
TO GENERAL
STEEL HOLDINGS, INC.
|
|
$
|
(42,028)
|
|
$
|
(13,084)
|
|
$
|
(102,951)
|
|
$
|
(43,578)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
NUMBER OF
SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
|
54,466
|
|
|
55,166
|
|
|
54,946
|
|
|
54,547
|
LOSS PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
$
|
(0.76)
|
|
$
|
(0.25)
|
|
$
|
(1.87)
|
|
$
|
(0.84)
|
GENERAL STEEL
HOLDINGS, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
FOR THE THREE AND
TWELVE MONTHS ENDED DECEMBER 31, 2012 AND 2011
|
(UNAUDITED)
|
(In thousands, except
per share data)
|
|
|
|
Three months ended
December 31,
|
|
Twelve months ended
December 31,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES
|
|
$
|
525,066
|
|
$
|
473,612
|
|
$
|
1,966,391
|
|
$
|
2,452,127
|
SALES - RELATED
PARTIES
|
|
|
198,378
|
|
|
319,928
|
|
|
897,202
|
|
|
1,111,769
|
TOTAL
SALES
|
|
|
723,444
|
|
|
793,540
|
|
|
2,863,593
|
|
|
3,563,896
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF GOODS
SOLD
|
|
|
504,204
|
|
|
588,731
|
|
|
1,930,793
|
|
|
2,519,183
|
COST OF GOODS SOLD -
RELATED
PARTIES
|
|
|
207,199
|
|
|
355,462
|
|
|
900,681
|
|
|
1,132,927
|
TOTAL COST OF
GOODS SOLD
|
|
|
711,403
|
|
|
944,193
|
|
|
2,831,474
|
|
|
3,652,110
|
GROSS PROFIT
(LOSS)
|
|
|
12,041
|
|
|
(150,653)
|
|
|
32,119
|
|
|
(88,214)
|
SELLING, GENERAL
AND
ADMINISTRATIVE
EXPENSES
|
|
|
43,529
|
|
|
25,984
|
|
|
105,077
|
|
|
91,827
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS
|
|
|
(31,488)
|
|
|
(176,637)
|
|
|
(72,958)
|
|
|
(180,041)
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
2,020
|
|
|
4,812
|
|
|
15,059
|
|
|
7,892
|
Finance/interest expense
|
|
|
(37,313)
|
|
|
(42,632)
|
|
|
(176,242)
|
|
|
(114,949)
|
Change in fair
value of derivative liabilities
|
|
|
57
|
|
|
37
|
|
|
9
|
|
|
5,563
|
Gain on debt
settlement
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,430
|
Gain (loss) on
disposal of equipment
|
|
|
(2,311)
|
|
|
14
|
|
|
(2,134)
|
|
|
693
|
Government
grant
|
|
|
2,253
|
|
|
-
|
|
|
2,253
|
|
|
-
|
Realized (loss) income from future contracts
|
|
|
-
|
|
|
415
|
|
|
-
|
|
|
415
|
Income from equity
investments
|
|
|
137
|
|
|
1,001
|
|
|
217
|
|
|
5,302
|
Foreign
currency transaction (loss) gain
|
|
|
(79)
|
|
|
504
|
|
|
(1,248)
|
|
|
3,424
|
Lease
income
|
|
|
531
|
|
|
519
|
|
|
2,119
|
|
|
2,008
|
Other
non-operating income (expense), net
|
|
|
(1,533)
|
|
|
(245)
|
|
|
1,783
|
|
|
(1,442)
|
Other expense, net
|
|
|
(36,238)
|
|
|
(35,575)
|
|
|
(158,184)
|
|
|
(87,664)
|
LOSS BEFORE PROVISION
FOR INCOME
TAXES AND
NONCONTROLLING
INTEREST
|
|
|
(67,726)
|
|
|
(212,212)
|
|
|
(231,142)
|
|
|
(267,705)
|
PROVISION FOR INCOME
TAXES
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
Current
|
|
|
117
|
|
|
(442)
|
|
|
627
|
|
|
175
|
Deferred
|
|
|
-
|
|
|
35
|
|
|
169
|
|
|
15,419
|
Provision (benefit) for income taxes
|
|
|
117
|
|
|
(407)
|
|
|
796
|
|
|
15,594
|
NET LOSS
|
|
|
(67,843)
|
|
|
(211,805)
|
|
|
(231,938)
|
|
|
(283,299)
|
Less: Net loss
attributable to noncontrolling
interest
|
|
|
(17,905)
|
|
|
(80,280)
|
|
|
(79,241)
|
|
|
(106,112)
|
NET LOSS ATTRIBUTABLE
TO GENERAL
STEEL HOLDINGS,
INC.
|
|
$
|
(49,938)
|
|
$
|
(131,525)
|
|
$
|
(152,697)
|
|
$
|
(177,187)
|
NET LOSS
|
|
$
|
(67,843)
|
|
$
|
(211,805)
|
|
$
|
(231,938)
|
|
$
|
(283,299)
|
OTHER COMPREHENSIVE
LOSS
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency translation adjustments
|
|
|
(167)
|
|
|
(2,986)
|
|
|
(744)
|
|
|
(587)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
LOSS
|
|
|
(68,010)
|
|
|
(214,791)
|
|
|
(232,682)
|
|
|
(283,886)
|
Less: Comprehensive
loss attributable to
noncontrolling
interest
|
|
|
(18,249)
|
|
|
(80,395)
|
|
|
(79,970)
|
|
|
(105,912)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE LOSS
ATTRIBUTABLE
TO GENERAL STEEL
HOLDINGS, INC.
|
|
$
|
(49,761)
|
|
$
|
(134,396)
|
|
$
|
(152,712)
|
|
$
|
(177,974)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
NUMBER OF SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
|
54,871
|
|
|
55,352
|
|
|
54,867
|
|
|
54,750
|
LOSS PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
$
|
(0.91)
|
|
$
|
(2.38)
|
|
$
|
(2.78)
|
|
$
|
(3.24)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENERAL STEEL
HOLDINGS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
FOR NINE MONTHS ENDED
SEPTEMBER 30, 2012 AND 2011 AND TWELVE MONTHS ENDED DECEMBER
31,
2012 AND
2011
|
(In
thousands)
|
|
|
Nine months ended
September 30,
|
|
Twelve months ended
December 31,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(164,095)
|
|
$
|
(71,494)
|
|
$
|
(231,938)
|
|
$
|
(283,299)
|
|
Adjustments to
reconcile net loss to cash provided by
(used in) operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
amortization and
depletion
|
|
62,538
|
|
|
40,385
|
|
|
83,931
|
|
|
58,331
|
|
|
Impairment of plant
and equipment
|
|
-
|
|
|
5,412
|
|
|
20,173
|
|
|
5,424
|
|
|
Change in fair value
of derivative
liabilities
|
|
48
|
|
|
(5,526)
|
|
|
(9)
|
|
|
(5,563)
|
|
|
Gain on debt
settlement
|
|
-
|
|
|
(3,430)
|
|
|
-
|
|
|
(3,430)
|
|
|
Loss (gain) on
disposal of equipment
|
|
(177)
|
|
|
(679)
|
|
|
2,134
|
|
|
(693)
|
|
|
Bad debt (recovery)
allowance
|
|
2,316
|
|
|
127
|
|
|
(157)
|
|
|
3,529
|
|
|
Reservation of mine
maintenance fee
|
|
3
|
|
|
-
|
|
|
37
|
|
|
-
|
|
|
Stock issued for
services and
compensation
|
|
679
|
|
|
1,288
|
|
|
918
|
|
|
1,530
|
|
|
Amortization of
deferred financing cost
on capital
lease
|
|
32,363
|
|
|
17,282
|
|
|
43,122
|
|
|
27,704
|
|
|
Income from equity
investments
|
|
(80)
|
|
|
(3,887)
|
|
|
(217)
|
|
|
(5,302)
|
|
|
Foreign currency
transaction (gain) loss
|
|
1,169
|
|
|
(2,920)
|
|
|
1,248
|
|
|
(3,424)
|
|
|
Deferred tax
assets
|
|
169
|
|
|
15,384
|
|
|
169
|
|
|
15,419
|
|
|
Deferred lease
income
|
|
(1,588)
|
|
|
5,286
|
|
|
(2,119)
|
|
|
4,782
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
receivable
|
|
(99,337)
|
|
|
19,497
|
|
|
(53,946)
|
|
|
(41,318)
|
|
|
Accounts
receivable
|
|
5,429
|
|
|
(18,986)
|
|
|
6,694
|
|
|
4,761
|
|
|
Accounts receivable -
related parties
|
|
(7,607)
|
|
|
(6,207)
|
|
|
5,835
|
|
|
(16,015)
|
|
|
Other
receivables
|
|
(5,460)
|
|
|
(8,626)
|
|
|
7,221
|
|
|
(12,638)
|
|
|
Other receivables -
related parties
|
|
4,784
|
|
|
(50,311)
|
|
|
1,820
|
|
|
(50,562)
|
|
|
Inventories
|
|
73,024
|
|
|
35,305
|
|
|
86,635
|
|
|
169,207
|
|
|
Advances on inventory
purchases
|
|
(23,365)
|
|
|
(81,430)
|
|
|
(18,677)
|
|
|
(37,674)
|
|
|
Advances on inventory
purchases -
related
parties
|
|
(88,412)
|
|
|
(72,402)
|
|
|
(69,573)
|
|
|
(13,608)
|
|
|
Prepaid expense and
other
|
|
(183)
|
|
|
4,214
|
|
|
(83)
|
|
|
4,753
|
|
|
Long-term deferred
expense
|
|
119
|
|
|
793
|
|
|
(424)
|
|
|
845
|
|
|
Prepaid
taxes
|
|
4,168
|
|
|
22,982
|
|
|
320
|
|
|
14,223
|
|
|
Accounts
payable
|
|
(48,059)
|
|
|
153,604
|
|
|
(35,719)
|
|
|
160,657
|
|
|
Accounts payable -
related parties
|
|
31,353
|
|
|
31,609
|
|
|
90,833
|
|
|
38,647
|
|
|
Other payables and
accrued liabilities
|
|
34,286
|
|
|
6,819
|
|
|
14,138
|
|
|
18,076
|
|
|
Other payables -
related parties
|
|
95,746
|
|
|
(3,827)
|
|
|
49,991
|
|
|
9,845
|
|
|
Customer
deposits
|
|
(9,490)
|
|
|
53,645
|
|
|
34,410
|
|
|
(46,870)
|
|
|
Customer deposits -
related parties
|
|
14,740
|
|
|
(2,241)
|
|
|
(46,960)
|
|
|
11,211
|
|
|
Taxes
payable
|
|
(5,195)
|
|
|
5,501
|
|
|
4,957
|
|
|
4,834
|
|
|
|
Net cash provided by
(used in)
operating
activities
|
|
(90,114)
|
|
|
87,167
|
|
|
(5,236)
|
|
|
33,382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted
cash
|
|
(35,094)
|
|
|
13,173
|
|
|
78,826
|
|
|
(190,178)
|
|
Loans to related
parties
|
|
(69,247)
|
|
|
-
|
|
|
(69,299)
|
|
|
-
|
|
Cash proceeds from
(made to) short term
investment
|
|
40
|
|
|
(2,620)
|
|
|
317
|
|
|
(2,858)
|
|
Cash proceeds from
sales of equipment
|
|
19
|
|
|
1,271
|
|
|
337
|
|
|
1,306
|
|
Long-term other
receivable
|
|
-
|
|
|
-
|
|
|
(42,994)
|
|
|
-
|
|
Advance on equipment
purchase
|
|
3,757
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Equipment purchase
and intangible assets
|
|
(19,666)
|
|
|
(54,494)
|
|
|
(27,976)
|
|
|
(110,939)
|
|
Effect on cash due to
deconsolidating of a
subsidiary
|
|
(2,972)
|
|
|
-
|
|
|
(2,975)
|
|
|
-
|
|
|
|
Net cash used in
investing
activities
|
|
(123,163)
|
|
|
(42,670)
|
|
|
(63,764)
|
|
|
(302,669)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments made for
treasury stock acquired
|
|
(1,404)
|
|
|
(1,925)
|
|
|
(1,404)
|
|
|
(1,923)
|
|
Notes receivable -
restricted
|
|
521,866
|
|
|
(264,708)
|
|
|
232,218
|
|
|
(329,839)
|
|
Borrowings on short
term notes payable
|
|
1,382,976
|
|
|
859,561
|
|
|
1,923,584
|
|
|
1,655,741
|
|
Payments on short
term notes payable
|
|
(1,637,570)
|
|
|
(800,873)
|
|
|
(2,064,571)
|
|
|
(1,049,680)
|
|
Borrowings on short
term loans - bank
|
|
237,535
|
|
|
446,532
|
|
|
260,611
|
|
|
563,007
|
|
Payments on short
term loans - bank
|
|
(355,008)
|
|
|
(337,038)
|
|
|
(371,241)
|
|
|
(600,294)
|
|
Borrowings on short
term loan - others
|
|
160,554
|
|
|
245,381
|
|
|
184,890
|
|
|
330,037
|
|
Payments on short
term loans - others
|
|
(193,964)
|
|
|
(151,375)
|
|
|
(284,242)
|
|
|
(212,661)
|
|
Borrowings on short
term loan - related parties
|
|
269,362
|
|
|
15,414
|
|
|
356,989
|
|
|
15,450
|
|
Payments on short
term loans - related parties
|
|
(221,134)
|
|
|
(9,912)
|
|
|
(297,718)
|
|
|
(14,817)
|
|
Deposits due to sales
representatives
|
|
11,939
|
|
|
(31,753)
|
|
|
10,743
|
|
|
(30,066)
|
|
Deposit due to sales
representatives - related parties
|
|
285
|
|
|
-
|
|
|
286
|
|
|
464
|
|
Borrowings on long
term loan - related party
|
|
-
|
|
|
13,587
|
|
|
-
|
|
|
14,677
|
|
Payments on long term
loan - related party
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(16,865)
|
|
Long-term other
payable - related party
|
|
-
|
|
|
-
|
|
|
42,994
|
|
|
-
|
|
|
|
Net cash provided by
(used in)
financing
activities
|
|
175,437
|
|
|
(17,109)
|
|
|
(6,861)
|
|
|
323,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EFFECTS OF EXCHANGE
RATE CHANGE IN
CASH
|
|
1,426
|
|
|
(946)
|
|
|
2,312
|
|
|
801
|
INCREASE (DECREASE)
IN CASH
|
|
(36,414)
|
|
|
26,442
|
|
|
(73,549)
|
|
|
54,745
|
CASH, beginning of
period
|
|
120,016
|
|
|
65,271
|
|
|
120,016
|
|
|
65,271
|
CASH, end of
period
|
$
|
83,602
|
|
$
|
91,713
|
|
$
|
46,467
|
|
$
|
120,016
|
SOURCE General Steel Holdings, Inc.