BEIJING, March 27, 2014 /PRNewswire/ -- General Steel
Holdings, Inc. ("General Steel" or the "Company") (NYSE: GSI), a
leading non-state-controlled steel producer in China, today announced its financial results
for the fourth quarter and full year ended December 31, 2013. The Company will file its
Annual Report on Form 10-K for the year ended December 31, 2013 with the United States
Securities and Exchange Commission following market close on
Thursday, March 27, 2014.
"We are encouraged that we were able to deliver nearly
$50 million year-over-year
improvement in net income for the fourth quarter, despite a very
challenging market environment," said Henry
Yu, Chairman and Chief Executive Officer of General Steel.
"During the fourth quarter, the average selling price of rebar
decreased, while the cost of iron ore increased from a quarter ago,
and as a result, our gross margin was depressed. Facing this
difficult market, we proactively scaled back production and took
time in December to conduct a comprehensive equipment maintenance
and upgrade, as we anticipate the market will noticeably improve in
2014."
"We believe China's steel
industry is entering a new era, as the government is determined to
shut down inefficient factories in order to reduce pollution and
balance supply. As the sole qualified steel maker elected by the
MIIT in our local market in Shaanxi province[1], we are confident that we
will not only survive in this new era but also thrive in the
eventual improved market environment. We will continue to harvest
lower production costs from our newly built continuous-rolling
production lines, as well as lower operating costs from our
comprehensive benchmarking programs. As such, despite the market
difficulties over the past couple of years, I remain very positive
due to General Steel's many operational accomplishments during this
period, and I'm optimistic that as the overall industry and market
environment improves, we are firmly positioned to convert those
operational improvements into healthier financial results," Mr. Yu
concluded.
John Chen, Chief Financial
Officer of General Steel, commented, "We are glad that we were able
to earn positive EBITDA for the full year 2013. We made great
strides in controlling operating expenses, lowering finance
expenses and enhancing funding flexibility. We believe we have
considerably strengthened our financial foundation, and are well
positioned for the industry's new era."
[1] The Ministry of
Industry and Information Technology of China (the "MIIT") issued
two batches of List of Enterprises Fulfilling the Iron and Steel
Industry Specification in April 2013 and January 2014,
respectively. For more details, please refer to the press release
"General Steel Included into China's Qualified Steel Maker List"
issued by the Company on January 8, 2014.
|
Fourth Quarter 2013 Financial
Information
- Sales decreased by 24.2% year-over-year to $548.7 million, from $723.4 million in the fourth quarter of
2012.
- Sales volume decreased by 19.0% year-over-year to approximately
1.2 million metric tons, compared with 1.4 million metric tons in
the fourth quarter of 2012.
- Gross loss was $(32.7) million,
compared with a gross profit of $12.0
million in the fourth quarter of 2012.
- Operating income was $9.2
million, compared with an operating loss of $(54.0) million in the fourth quarter of
2012.
- Net loss attributable to the Company was approximately
$(102,000), or $(0.002) per diluted share, compared with a net
loss of $(49.9) million, or
$(0.91) per diluted share in the
fourth quarter of 2012.
- As of December 31, 2013, the
Company had cash and restricted cash of $431.3 million.
Full Year 2013 Financial Information
- Sales decreased by 14.0% year-over-year to $2.5 billion, from $2.9
billion in 2012.
- Sales volume decreased by 4.4% year-over-year to approximately
5.1 million metric tons, compared with 5.3 million metric tons in
2012.
- Gross loss was $(55.9) million,
compared with a gross profit of $32.1
million in 2012.
- Operating income was $34.4
million, compared with an operating loss of $(95.5) million in 2012.
- Net loss attributable to the Company narrowed to $(33.0) million, or $(0.60) per diluted share, compared with
$(152.7) million, or $(2.78) per diluted share in 2012.
Fourth Quarter 2013 Financial and Operating Results
Total Sales
Total sales for the fourth quarter of 2013 decreased by 24.2%
year-over-year to $548.7 million,
compared with $723.4 million in the
fourth quarter of 2012. The year-over-year revenue decreases were
due to a scale back of production for equipment maintenance and
upgrade, and a decrease in average selling price of rebar.
- Total sales volume in the fourth quarter of 2013 was 1.2
million metric tons, a decrease of 19.0% compared with 1.4 million
metric tons in the fourth quarter of 2012.
- The average selling price of rebar at Longmen Joint Venture
decreased 12.6% to approximately $474.3 per metric ton in the fourth quarter of
2013 from approximately $542.6 per
metric ton in the same period of 2012.
Gross Profit
Gross loss for the fourth quarter of 2014 was $(32.7) million, compared with a gross profit of
$12.0 million in the fourth quarter
of 2012. The gross loss was mainly due to a lower average selling
price for rebar, combined with higher iron ore cost and higher
fixed cost per unit associated with a decreased production
volume.
Operating Expenses and Operating Income
Selling, general and administrative expenses for the fourth
quarter of 2013 decreased 43.1% to $24.8
million, compared to $43.5
million in the fourth quarter of 2012. General and
administrative expenses decreased by 47.4% to $15.2 million, compared with $32.1 million in the same period of 2012. The
significant decrease in general and administrative expense was
mainly due to the impairment charge of $20.2
million during the fourth quarter of 2012, while no
additional impairment was charged in 2013, partially offset by a
$2.8 million increase in bad debt
expenses compared with the same period of last year. Selling
expenses decreased 8.3% to $9.5
million, compared to $11.4
million in the same period of 2012. The decrease in selling
expense was primarily attributable to the decrease in sales volume
and rail transport expense along with it in the fourth quarter of
2013 as compared to the same period in 2012.
The Company recognized other operating income of $66.7 million due to a change in the fair value
of profit sharing liability during the fourth quarter of 2013,
compared with a loss of $22.5 million
recognized in the same period of last year, which reflects a change
in the estimated fair value of the Company's profit sharing
liability.
Correspondingly, income from operations for the fourth quarter
of 2013 was $9.2 million, compared
with a loss from operations of $(54.0)
million in the fourth quarter of 2012.
Finance Expense
Finance and interest expense in the fourth quarter of 2013
decreased by 29.0% or $4.3 million
from $14.8 million to $10.5 million, mainly attributable to meaningful
savings from a reduction of early redemptions of bank notes
receivables, and higher utilization of vendor financings during the
fourth quarter in 2013.
Net Loss and Net Loss per Share
Net loss attributable to General Steel for the fourth quarter of
2013 was approximately $(102,000), or
$(0.002) per diluted share, based on
55.6 million weighted average shares outstanding. This compares to
a net loss of $(49.9) million, or
$(0.91) per diluted share, based on
54.9 million weighted average shares outstanding in the fourth
quarter of 2012.
Full Year 2013 Financial and Operating Results
Total Sales
Total sales for the year 2013 decreased 14.0% year-over-year to
$2.5 billion, compared with
$2.9 billion in 2012. The
year-over-year revenue decreases were due to a decrease in both
average selling price and sales volume.
- Total sales volume in 2013 was 5.1 million metric tons, a
decrease of 4.4% compared with 5.3 million metric tons in
2012.
- The average selling price of rebar at Longmen Joint Venture
decreased 12.5% to approximately $490.7 per metric ton in 2013 from approximately
$560.6 per metric ton in 2012.
Gross Profit
Due to a steeper decrease in average selling price in the year
of 2013, gross loss for 2013 was $(55.9)
million, compared with a gross profit of $32.1 million in 2012.
Operating Expenses and Operating Income
Selling, general and administrative expenses for the year of
2013 decreased 19.8% to $84.2
million, compared to $105.1
million in 2012. General and administrative expenses
decreased 23.8% to $50.1 million,
compared with $65.8 million in 2012.
Selling expenses decreased 13.2% to $34.1
million, compared to $39.3
million.
The Company recognized other operating income of $174.6 million due to a change in the fair value
of profit sharing liability during the year of 2013, compared with
a loss of $(22.5) million recognized
for 2012.
Correspondingly, income from operations for the year of 2013 was
$34.4 million, compared with a loss
from operations of $(95.5) million in
2012.
Finance Expense
Finance and interest expense in 2013 was $91.9 million, of which, $20.8 million was the non-cash interest expense
on capital lease as compared with $20.6
million in 2012, and $71.1
million was the interest expense on bank loans and
discounted note receivables, as compared with $133.1 million in 2012.
Net Loss and Net Loss per
Share
Net loss attributable to General Steel for the year of 2013 was
$(33.0) million, or $(0.60) per diluted share, based on 55.1 million
weighted average shares outstanding. This compares to a net loss of
$(152.7) million, or $(2.78) per diluted share, based on 54.9 million
weighted average shares outstanding in 2012.
Balance Sheet
As of December 31, 2013, the
Company had cash and restricted cash of approximately $431.3 million, compared to $369.9 million as of December 31, 2012. The Company had an inventory
balance of approximately $212.9
million as of December 31,
2013, compared to $212.7
million as of December 31,
2012.
Conference Call and Webcast:
General Steel will hold a corresponding conference call and live
webcast at 8:00 a.m. EST on
Thursday, March 27, 2014 (which
corresponds to 8:00 p.m. Beijing/Hong Kong Time on Thursday, March 27, 2014) to discuss the results
and answer questions from investors. Listeners may access the call
by dialing 1-877-870-4263 in the US, and 1-412-317-0790
internationally.
The call will also be available as a live, listen-only webcast
under the "Events and Presentations" page on the "Investor
Relations" section of the Company's website at
http://www.mzcan.com/us/GSI/irwebsite/index.php?mod=event.
Following the live webcast, an online archive will be available for
90 days.
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 Annual Report on Form 10-K, filed with
the United States Securities and Exchange Commission.
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,
|
|
December
31,
|
ASSETS
|
2013
|
|
2012
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash
|
$
|
31,967
|
|
$
|
46,467
|
|
Restricted
cash
|
|
399,333
|
|
|
323,420
|
|
Notes
receivable
|
|
60,054
|
|
|
145,502
|
|
Restricted
notes receivable
|
|
395,589
|
|
|
357,900
|
|
Loans
receivable - related parties
|
|
4,540
|
|
|
69,319
|
|
Accounts
receivable, net
|
|
4,078
|
|
|
6,695
|
|
Accounts
receivable - related parties
|
|
2,942
|
|
|
14,966
|
|
Other
receivables, net
|
|
54,716
|
|
|
8,407
|
|
Other
receivables - related parties
|
|
54,106
|
|
|
68,382
|
|
Inventories
|
|
212,921
|
|
|
212,671
|
|
Advances on
inventory purchase
|
|
44,897
|
|
|
79,715
|
|
Advances on
inventory purchase - related parties
|
|
83,003
|
|
|
46,416
|
|
Prepaid expense
and other
|
|
1,388
|
|
|
450
|
|
Prepaid
taxes
|
|
28,407
|
|
|
24,116
|
|
Short-term
investment
|
|
2,783
|
|
|
2,619
|
TOTAL CURRENT
ASSETS
|
|
1,380,724
|
|
|
1,407,045
|
|
|
|
|
|
|
|
PLANT AND
EQUIPMENT, net
|
|
1,271,907
|
|
|
1,167,836
|
|
|
|
|
|
|
|
OTHER
ASSETS:
|
|
|
|
|
|
|
Advances on
equipment purchase
|
|
6,409
|
|
|
6,499
|
|
Long-term other
receivable
|
|
-
|
|
|
43,008
|
|
Investment in
unconsolidated entities
|
|
16,943
|
|
|
1,166
|
|
Long-term
deferred expense
|
|
668
|
|
|
1,062
|
|
Intangible
assets, net of accumulated amortization
|
|
23,707
|
|
|
24,066
|
TOTAL OTHER
ASSETS
|
|
47,727
|
|
|
75,801
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
$
|
2,700,358
|
|
$
|
2,650,682
|
|
|
|
|
|
|
|
LIABILITIES AND
DEFICIENCY
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Short term
notes payable
|
$
|
1,017,830
|
|
$
|
983,813
|
|
Accounts
payable
|
|
434,979
|
|
|
352,052
|
|
Accounts
payable - related parties
|
|
235,692
|
|
|
177,432
|
|
Short term
loans - bank
|
|
301,917
|
|
|
147,124
|
|
Short term
loans - others
|
|
62,067
|
|
|
147,323
|
|
Short term
loans - related parties
|
|
126,693
|
|
|
79,557
|
|
Current
maturities of long-term loans - related party
|
|
53,013
|
|
|
54,885
|
|
Other payables
and accrued liabilities
|
|
45,653
|
|
|
54,589
|
|
Other payable -
related parties
|
|
94,079
|
|
|
73,025
|
|
Customer
deposits
|
|
87,860
|
|
|
125,890
|
|
Customer
deposits - related parties
|
|
64,881
|
|
|
21,998
|
|
Deposit due to
sales representatives
|
|
24,343
|
|
|
33,870
|
|
Deposit due to
sales representatives - related parties
|
|
1,997
|
|
|
1,238
|
|
Taxes
payable
|
|
4,628
|
|
|
16,674
|
|
Deferred lease
income, current
|
|
2,187
|
|
|
2,120
|
|
Capital lease
obligations, current
|
|
4,321
|
|
|
-
|
|
TOTAL CURRENT
LIABILITIES
|
|
2,562,140
|
|
|
2,271,590
|
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Long-term loans
- related party
|
|
19,644
|
|
|
38,088
|
|
Long-term other
payable - related party
|
|
-
|
|
|
43,008
|
|
lease income,
noncurrent
|
|
75,257
|
|
|
75,079
|
|
Capital lease
obligations, noncurrent
|
|
375,019
|
|
|
330,099
|
|
Profit sharing
liability
|
|
162,295
|
|
|
328,827
|
|
TOTAL
NON-CURRENT LIABILITIES
|
|
632,215
|
|
|
815,101
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
3,194,355
|
|
|
3,086,691
|
|
|
|
|
|
|
|
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, 2013 and
December 31, 2012
|
|
3
|
|
|
3
|
|
Common stock, $0.001
par value, 200,000,000
shares authorized, 58,234,688 and 57,269,838
shares issued, 55,762,382 and 54,797,532
shares
outstanding as of December 31, 2013 and
December 31, 2012, respectively
|
|
58
|
|
|
57
|
|
Treasury stock,
at cost, 2,472,306 shares as of
December 31, 2013 and December 31, 2012
|
|
(4,199)
|
|
|
(4,199)
|
|
Paid-in-capital
|
|
106,878
|
|
|
105,714
|
|
Statutory reserves
|
|
6,243
|
|
|
6,076
|
|
Accumulated deficits
|
|
(414,798)
|
|
|
(381,782)
|
|
Accumulated other comprehensive income
|
|
729
|
|
|
10,185
|
|
TOTAL GENERAL STEEL
HOLDINGS, INC. DEFICIENCY
|
|
(305,086)
|
|
|
(263,946)
|
|
|
|
|
|
|
|
NONCONTROLLING
INTERESTS
|
|
(188,911)
|
|
|
(172,063)
|
|
TOTAL
DEFICIENCY
|
|
(493,997)
|
|
|
(436,009)
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
DEFICIENCY
|
$
|
2,700,358
|
|
$
|
2,650,682
|
GENERAL STEEL
HOLDINGS, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
(UNAUDITED)
|
(In thousands, except
per share data)
|
|
|
|
For the
Three months ended
December 31,
|
|
For the
Twelve months ended
December 31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES
|
|
$
|
482,218
|
|
$
|
525,066
|
|
$
|
2,016,548
|
|
$
|
1,966,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES - RELATED
PARTIES
|
|
|
66,492
|
|
|
198,378
|
|
|
447,199
|
|
|
897,202
|
TOTAL
SALES
|
|
|
548,710
|
|
|
723,444
|
|
|
2,463,747
|
|
|
2,863,593
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF GOODS
SOLD
|
|
|
511,741
|
|
|
504,204
|
|
|
2,062,570
|
|
|
1,930,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF GOODS SOLD -
RELATED
PARTIES
|
|
|
69,669
|
|
|
207,199
|
|
|
457,115
|
|
|
900,681
|
TOTAL COST OF
GOODS SOLD
|
|
|
581,410
|
|
|
711,403
|
|
|
2,519,685
|
|
|
2,831,474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS (LOSS)
PROFIT
|
|
|
(32,700)
|
|
|
12,041
|
|
|
(55,938)
|
|
|
32,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELLING, GENERAL
AND
ADMINISTRATIVE EXPENSES
|
|
|
(24,762)
|
|
|
(43,529)
|
|
|
(84,226)
|
|
|
(105,077)
|
CHANGE IN FAIR VALUE
OF PROFIT
SHARING LIABILITY
|
|
|
66,692
|
|
|
(22,499)
|
|
|
174,569
|
|
|
(22,499)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM
OPERATIONS
|
|
|
9,230
|
|
|
(53,987)
|
|
|
34,405
|
|
|
(95,457)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
2,557
|
|
|
2,020
|
|
|
11,214
|
|
|
15,059
|
Finance/interest expense
|
|
|
(10,523)
|
|
|
(14,814)
|
|
|
(91,878)
|
|
|
(153,743)
|
Change in fair
value of derivative liabilities
|
|
|
-
|
|
|
57
|
|
|
1
|
|
|
9
|
Gain (loss) on
disposal of equipment and
intangible assets
|
|
|
311
|
|
|
(2,311)
|
|
|
424
|
|
|
(2,134)
|
Government
grant
|
|
|
4,216
|
|
|
2,253
|
|
|
4,216
|
|
|
2,253
|
Income from
equity investments
|
|
|
66
|
|
|
137
|
|
|
203
|
|
|
217
|
Foreign
currency transaction gain (loss)
|
|
|
946
|
|
|
(79)
|
|
|
1,394
|
|
|
(1,248)
|
Lease
income
|
|
|
545
|
|
|
531
|
|
|
2,158
|
|
|
2,119
|
Gain on
deconsolidation of a subsidiary
|
|
|
1,011
|
|
|
-
|
|
|
1,011
|
|
|
-
|
Payment for
public highway construction
|
|
|
(6,462)
|
|
|
|
|
|
(6,462)
|
|
|
|
Other
non-operating income (expense), net
|
|
|
(516)
|
|
|
(1,533)
|
|
|
1,043
|
|
|
1,783
|
Other expense, net
|
|
|
(7,849)
|
|
|
(13,739)
|
|
|
(76,676)
|
|
|
(135,685)
|
INCOME (LOSS) BEFORE
PROVISION FOR
INCOME TAXES AND NONCONTROLLING
INTEREST
|
|
|
1,381
|
|
|
(67,726)
|
|
|
(42,271)
|
|
|
(231,142)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
153
|
|
|
117
|
|
|
354
|
|
|
627
|
Deferred
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
169
|
Provision for income taxes
|
|
|
153
|
|
|
117
|
|
|
354
|
|
|
796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
|
|
1,228
|
|
|
(67,843)
|
|
|
(42,625)
|
|
|
(231,938)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
(loss) attributable to
noncontrolling interest
|
|
|
1,330
|
|
|
(17,905)
|
|
|
(9,609)
|
|
|
(79,241)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS ATTRIBUTABLE
TO GENERAL
STEEL HOLDINGS, INC.
|
|
$
|
(102)
|
|
$
|
(49,938)
|
|
$
|
(33,016)
|
|
$
|
(152,697)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
|
$
|
1,228
|
|
$
|
(67,843)
|
|
$
|
(42,625)
|
|
$
|
(231,938)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
LOSS
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency translation adjustments
|
|
|
(2,142)
|
|
|
(167)
|
|
|
(14,425)
|
|
|
(744)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
LOSS
|
|
|
(914)
|
|
|
(68,010)
|
|
|
(57,050)
|
|
|
(232,682)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Comprehensive
loss attributable to
noncontrolling interest
|
|
|
401
|
|
|
(18,249)
|
|
|
(15,107)
|
|
|
(79,970)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE LOSS
ATTRIBUTABLE
TO GENERAL STEEL HOLDINGS, INC.
|
|
$
|
(1,315)
|
|
$
|
(49,761)
|
|
$
|
(41,943)
|
|
$
|
(152,712)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
NUMBER OF SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
|
55,570
|
|
|
54,871
|
|
|
55,126
|
|
|
54,867
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
$
|
(0.002)
|
|
$
|
(0.91)
|
|
$
|
(0.60)
|
|
$
|
(2.78)
|
GENERAL STEEL
HOLDINGS, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
(In
thousands)
|
|
|
|
|
|
For the
Twelve months ended
December 31,
|
|
|
|
|
|
2013
|
|
2012
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
Net loss
|
$
|
(42,625)
|
|
$
|
(231,938)
|
|
Adjustments to
reconcile net loss to cash provided by (used in) operating
activities:
|
|
|
|
|
|
Depreciation,
amortization and depletion
|
|
89,048
|
|
|
83,931
|
|
|
Impairment of plant
and equipment
|
|
-
|
|
|
20,173
|
|
|
Change in fair value
of derivative liabilities
|
|
(1)
|
|
|
(9)
|
|
|
(Gain) loss on
disposal of equipment and intangible assets
|
|
(424)
|
|
|
2,134
|
|
|
Provision for
doubtful accounts
|
|
(677)
|
|
|
(157)
|
|
|
Reservation of mine
maintenance fee
|
|
327
|
|
|
37
|
|
|
Stock issued for
services and compensation
|
|
1,165
|
|
|
918
|
|
|
Amortization of
deferred financing cost on capital lease
|
|
20,799
|
|
|
20,623
|
|
|
Income from equity
investments
|
|
(203)
|
|
|
(217)
|
|
|
Foreign currency
transaction (gain) loss
|
|
(1,394)
|
|
|
1,248
|
|
|
Gain on
deconsolidation of a subsidiary
|
|
(1,011)
|
|
|
-
|
|
|
Deferred tax
assets
|
|
-
|
|
|
169
|
|
|
Deferred lease
income
|
|
(2,158)
|
|
|
(2,119)
|
|
|
Changes in fair value
of profit sharing liability
|
|
(174,569)
|
|
|
22,499
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
Notes
receivable
|
|
25,555
|
|
|
(53,946)
|
|
|
Accounts
receivable
|
|
1,281
|
|
|
6,694
|
|
|
Accounts receivable -
related parties
|
|
12,161
|
|
|
5,835
|
|
|
Other
receivables
|
|
(1,116)
|
|
|
7,221
|
|
|
Other receivables -
related parties
|
|
(48,017)
|
|
|
1,820
|
|
|
Inventories
|
|
(40,632)
|
|
|
86,635
|
|
|
Advances on inventory
purchases
|
|
25,414
|
|
|
(18,677)
|
|
|
Advances on inventory
purchases - related parties
|
|
(145,686)
|
|
|
(69,573)
|
|
|
Prepaid expense and
other
|
|
(916)
|
|
|
(83)
|
|
|
Long-term deferred
expense
|
|
422
|
|
|
(424)
|
|
|
Prepaid
taxes
|
|
(3,485)
|
|
|
320
|
|
|
Accounts
payable
|
|
23,760
|
|
|
(35,719)
|
|
|
Accounts payable -
related parties
|
|
113,034
|
|
|
90,833
|
|
|
Other payables and
accrued liabilities
|
|
(10,508)
|
|
|
14,138
|
|
|
Other payables -
related parties
|
|
8,332
|
|
|
49,991
|
|
|
Customer
deposits
|
|
(41,069)
|
|
|
34,410
|
|
|
Customer deposits -
related parties
|
|
41,636
|
|
|
(46,960)
|
|
|
Taxes
payable
|
|
(12,367)
|
|
|
4,957
|
|
|
|
Net cash used in
operating activities
|
|
(163,924)
|
|
|
(5,236)
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
Restricted
cash
|
|
(64,860)
|
|
|
78,826
|
|
Loans to related
parties
|
|
(200)
|
|
|
(69,299)
|
|
Repayments from
related parties
|
|
1,660
|
|
|
-
|
|
Cash proceeds from
(made to) short term investment
|
|
(81)
|
|
|
317
|
|
Cash proceeds from
sales of equipment and intangible assets
|
|
160
|
|
|
337
|
|
Long-term other
receivable
|
|
-
|
|
|
(42,994)
|
|
Equipment purchase
and intangible assets
|
|
(43,355)
|
|
|
(27,976)
|
|
Cash proceeds from
sale of equity ownership
|
|
13,619
|
|
|
-
|
|
Effect on cash due to
deconsolidation of a subsidiary
|
|
(12,735)
|
|
|
(2,975)
|
|
|
|
Net cash used in
investing activities
|
|
(105,792)
|
|
|
(63,764)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
Capital contributed
by noncontrolling interest
|
|
18,028
|
|
|
-
|
|
Payments made for
treasury stock acquired
|
|
-
|
|
|
(1,404)
|
|
Notes receivable -
restricted
|
|
(26,066)
|
|
|
232,218
|
|
Borrowings on short
term notes payable
|
|
1,913,987
|
|
|
1,923,584
|
|
Payments on short
term notes payable
|
|
(1,911,006)
|
|
|
(2,064,571)
|
|
Borrowings on short
term loans - bank
|
|
371,685
|
|
|
260,611
|
|
Payments on short
term loans - bank
|
|
(222,104)
|
|
|
(371,241)
|
|
Borrowings on short
term loan - others
|
|
69,632
|
|
|
184,890
|
|
Payments on short
term loans - others
|
|
(72,989)
|
|
|
(284,242)
|
|
Borrowings on short
term loan - related parties
|
|
393,833
|
|
|
356,989
|
|
Payments on short
term loans - related parties
|
|
(248,119)
|
|
|
(297,718)
|
|
Deposits due to sales
representatives
|
|
(10,455)
|
|
|
10,743
|
|
Deposit due to sales
representatives - related parties
|
|
711
|
|
|
286
|
|
Payments on current
maturities of long-term loans - related party
|
|
(22,940)
|
|
|
-
|
|
Principal payment
under capital lease obligation
|
|
(218)
|
|
|
-
|
|
Long-term other
payable - related party
|
|
-
|
|
|
42,994
|
|
|
|
Net cash provided by
(used in) financing activities
|
|
253,979
|
|
|
(6,861)
|
EFFECTS OF EXCHANGE
RATE CHANGE IN CASH
|
|
1,237
|
|
|
2,312
|
DECREASE IN
CASH
|
|
(14,500)
|
|
|
(73,549)
|
CASH, beginning of
period
|
|
46,467
|
|
|
120,016
|
CASH, end of
period
|
$
|
31,967
|
|
$
|
46,467
|
|
|
|
|
|
|
|
|
|
|
SOURCE General Steel Holdings, Inc.