UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event
reported): May 15, 2015
General Steel Holdings, Inc.
(Exact name of registrant as specified
in its charter)
Nevada |
|
001-33717 |
|
41-2079252 |
(State or other jurisdiction
of incorporation) |
|
(Commission File Number) |
|
(IRS Employer
Identification Number) |
Level 21, Tower B, Jia Ming Center
No. 27 Dong San Huan North Road
Chaoyang District, Beijing, China 100020
(Address of
principal executive offices)
Registrant’s telephone number,
including area code:
+ 86 (10) 57757691
(Former name or former address, if changed
since last report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On May 15, 2015, General Steel Holdings, Inc. (the “Company”)
issued a press release relating to its financial results for its first quarter ended March 31, 2015. The press release contains
statements intended as “forward-looking statements,” all of which are subject to the cautionary statement about forward-looking
statements set forth therein. A copy of that press release is furnished as Exhibit 99.1 hereto and incorporated into this Item
2.02 by reference.
In accordance with General Instruction B.2 of Form 8-K, the
information included or incorporated in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes
of Section 18 of the United States Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall such
information and exhibit be deemed incorporated by reference in any filing under the United States Securities Act of 1933, as amended
(the “Securities Act”), except as shall be expressly set forth by specific reference in such a filing.
ITEM 7.01 REGULATION FD DISCLOSURE.
On May 15, 2015, in connection with its conference call pertaining
to its financial results for its first quarter March 31, 2015, the Company posted a slide show presentation on its website at http://www.gshi-steel.com,
which is also furnished as Exhibit 99.2 hereto and incorporated into this Item 7.01 by reference.
In accordance with General Instruction B.2 of Form 8-K, the
information included or incorporated in this Item 7.01, including Exhibit 99.2, shall not be deemed “filed” for purposes
of Section 18 of the Exchange Act, nor shall such information and exhibit be deemed incorporated by reference in any filing under
the Securities Act, except as shall be expressly set forth by specific reference in such a filing.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
Exhibit No. |
|
Description |
|
|
99.1 |
|
Press Release issued on May 15, 2015. |
99.2 |
|
Presentation of General Steel Holdings, Inc. |
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.
|
GENERAL STEEL HOLDINGS, INC. |
|
|
|
|
By: |
/s/ John Chen |
|
Name: |
John Chen |
|
Title: |
Chief Financial Officer |
Dated: May 15, 2015
Exhibit 99.1
General Steel Reports First Quarter 2015
Financial Results
BEIJING – May 15, 2015 – 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 first quarter ended March 31, 2015.
Henry Yu, Chairman and Chief Executive
Officer of General Steel commented, “The first quarter of 2015 was very tough for China’s iron and steel industry,
as the combination of the government’s stricter environmental enforcement and a slowdown in demand sharply pressured average
selling price and profitability. The average price of rebar encountered a steep double-digit sequential decline during the first
quarter to the lowest price level in 13 years. Correspondingly, we reduced production volume to preserve working capital, and we
took the opportunity to temporarily shut down in the second half of the first quarter in order to perform maintenance on our production
equipment.
As the steel industry remains challenging,
we believe our accelerated business transformation strategy is on target. In the first quarter, we established our RFID joint venture
that in April 2015 launched its first UHF RFID tag, which has thus far received very positive feedback. We anticipate rolling out
deployment and commercialization in the second half of 2015. We remain confident that the transformed businesses will drive greater
synergies and efficiency enhancements.”
John Chen, Chief Financial Officer of General
Steel, commented, “Facing macro-environment challenges for steel operations, we continue to focus on those factors that we
can control, including management of our operating expenses and working capital, closely aligning with SOEs and local government
for financial support, and continuing to optimize our upgraded manufacturing equipment. As we march forward with our business transformation
strategy, we will allocate capital and human resources into our RFID joint venture, as well as unlocking hidden value in our land
reserves in an effort to drive greater value for our shareholders.”
First Quarter 2015 Financial Information
| · | Sales volume decreased by 27.6% year-over-year to approximately 0.95 million metric tons, compared
with 1.32 million metric tons in the first quarter of 2014. |
| · | Sales totaled $328.2 million, compared with $594.2 million in the first quarter of 2014. |
| · | Gross loss was $(32.1) million, or (9.8%) of total sales, compared with $(22.6) million, or (3.8%)
of total sales in the first quarter of 2014. |
| · | Loss from operations totaled $(55.7) million, compared with $(43.7) million in the first quarter
of 2014. |
| · | Net loss attributable to the Company was $(45.1) million, or $(0.73) per diluted share, compared
with $(43.6) million, or $(0.78) per share in the first quarter of 2014. |
| · | As of March 31, 2015, the Company had cash and restricted cash of $259.6 million. |
General Steel Holdings, Inc.
Page 2 of 7
First Quarter 2015 Financial and Operating
Results
Total Sales
Total sales for the first quarter of 2015
decreased by 44.8% year-over-year to $328.2 million, compared with $594.2 million in the first quarter of 2014. The year-over-year
sales decrease was primarily due to decreases in both total sales volume and average selling price of rebar.
| · | Total sales volume in the first quarter of 2015 was 0.95 million metric tons, a decrease of 27.6%
compared with 1.32 million metric tons in the first quarter of 2014. |
| · | The average selling price of rebar at Longmen Joint Venture in the first quarter of 2015 decreased
to approximately $343.8 per metric ton, down by 23.7% from $450.9 per metric ton in the first quarter of 2014. |
Gross Loss
Gross loss for the first quarter of 2015
was $(32.1) million, or (9.8)% of total sales, as compared with gross loss of $(22.6) million, or (3.8)% of total sales in the
first quarter of 2014. The decrease in gross margin was mainly due to a steeper decrease in average selling price of rebar, compared
with the decrease in unit cost of manufactured rebar, as well as a higher fixed manufacturing cost, as the Company proactively
paused production for maintenance during the first quarter of 2015.
Operating Expenses and Loss from Operations
Selling, general and administrative expenses
for the first quarter of 2015 were $17.4 million, a decrease of 17.6% from $21.1 million in the first quarter of 2014. General
and administrative expenses decreased to $11.0 million in the first quarter of 2015, compared with $12.8 million in the first quarter
of 2014. Selling expenses were $6.4 million in the first quarter of 2015, compared with $8.3 million in the same period of 2014.
The Company accrued unallocated overheads
expenses of $19.1 million in its operating expenses for the first quarter of 2015, which was mainly due to the reallocation of
fixed overheads from cost of goods sold to general and administrative in accordance with GAAP, as the Company had temporarily shut
down production for maintenance during the period.
Other operating income from a change in
the fair value of profit sharing liability during the first quarter of 2015 was $12.9 million, compared with a loss on change in
fair value of profit sharing liability of $0.05 million in the same period of last year.
Correspondingly, loss from operations for
the first quarter of 2015 totaled $(55.7) million, compared with $(43.7) million for the first quarter of 2014.
Finance Expense
Finance and interest expense in the first
quarter of 2015 was $20.6 million, of which $5.2 million was the non-cash interest expense on capital lease, as compared with $5.1
million in the same period of 2014, and $15.4 million was the interest expense on bank loans and discounted note receivables, as
compared with $23.6 million in the same period of 2014.
General Steel Holdings, Inc.
Page 3 of 7
Net Loss and Net Loss per Share
Net loss attributable to General Steel
for the first quarter of 2015 was $(45.1) million, or $(0.73) per diluted share, based on 62.0 million weighted average shares
outstanding. This compares to a net loss attributable to General Steel of $(43.6) million, or $(0.78) per share, based on 55.8
million weighted average shares outstanding in the first quarter of 2014. The increase in shares count of weighted average shares
outstanding was primarily due to the issuance of 5 million shares of the Company’s common stock pursuant to a $7.5 million
private placement which closed in October 2014.
Balance Sheet
As of March 31, 2015, the Company had cash
and restricted cash of approximately $259.6 million, compared to $367.3 million as of December 31, 2014. The Company had an inventory
balance of $148.3 million as of March 31, 2015, compared to $156.3 million as of December 31, 2014.
Conference Call and Webcast:
General Steel will hold a corresponding
conference call and live webcast at 8:00 a.m. EDT on Friday, May 15, 2015 (which corresponds to 8:00 p.m. Beijing/Hong Kong Time
on Friday, May 15, 2015) to discuss the results and answer questions from investors. Listeners may access the call by dialing:
US Toll Free: |
1-888-346-8982 |
International Toll: |
1-412-902-4272 |
China Toll Free: |
400-120-1203 |
Hong Kong Toll Free: |
800-905-945 |
Conference ID: |
General Steel Holdings |
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.corpasia.net/us/GSI/irwebsite/index.php?mod=event. Following the live Webcast, an online archive
of the Webcast will be available for 90 days.
A replay of the conference call may be
accessed through May 22, 2015 by dialing:
US Toll Free: |
1-877-344-7529 |
International Toll: |
1-412-317-0088 |
Access Code: |
10065799 |
About General Steel Holdings, Inc.
General Steel Holdings, Inc. is a leading
non-state-owned steel maker headquartered in Beijing, China. With seven million metric tons of crude steel production capacity
under management and operations in Tianjin municipality and China’s Shaanxi and Guangdong provinces, the Company produces
a variety of steel products including rebar and high-speed wire.
General Steel Holdings, Inc.
Page 4 of 7
In addition to its steel business, the
Company also designs, manufactures, and integrates radio frequency identification (“RFID”) systems. The Company’s
RFID technology provides real-time data on supplies, inventory, and goods, thereby greatly enhancing its customers’ administration
and planning processes, as well as asset tracking and supply chain 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 investor.relations@gshi-steel.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, including those disclosed in
the Company's most recent 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.
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.
Page 5 of 7
GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In thousands)
| |
March 31, | | |
December 31, | |
ASSETS | |
2015 | | |
2014 | |
CURRENT ASSETS: | |
| | | |
| | |
Cash | |
$ | 9,736 | | |
$ | 11,641 | |
Restricted cash | |
| 249,820 | | |
| 355,685 | |
Notes receivable | |
| 1,606 | | |
| 10,290 | |
Restricted notes receivable | |
| 80,889 | | |
| 111,801 | |
Loan receivable | |
| 42,569 | | |
| 36,001 | |
Loans receivable - related parties | |
| 6,728 | | |
| 34,713 | |
Accounts receivable, net | |
| 10,686 | | |
| 9,321 | |
Accounts receivable - related parties | |
| 160,286 | | |
| 8,498 | |
Other receivables, net | |
| 103,291 | | |
| 63,746 | |
Other receivables - related parties | |
| 6,364 | | |
| 39,670 | |
Inventories | |
| 148,295 | | |
| 156,327 | |
Advances on inventory purchase | |
| 49,440 | | |
| 73,819 | |
Advances on inventory purchase - related parties | |
| 11,243 | | |
| 45,617 | |
Prepaid expense and other | |
| 5,279 | | |
| 4,803 | |
Prepaid taxes | |
| 5,851 | | |
| 5,789 | |
Short-term investment | |
| 7,503 | | |
| 2,688 | |
TOTAL CURRENT ASSETS | |
| 899,586 | | |
| 970,409 | |
| |
| | | |
| | |
PLANT AND EQUIPMENT, net | |
| 1,561,511 | | |
| 1,543,136 | |
| |
| | | |
| | |
OTHER ASSETS: | |
| | | |
| | |
Advances on equipment purchase | |
| 5,270 | | |
| 11,438 | |
Investment in unconsolidated entities | |
| 16,705 | | |
| 16,823 | |
Long-term deferred expense | |
| 452 | | |
| 458 | |
Intangible assets, net of accumulated amortization | |
| 22,885 | | |
| 22,960 | |
TOTAL OTHER ASSETS | |
| 45,312 | | |
| 51,679 | |
| |
| | | |
| | |
TOTAL ASSETS | |
$ | 2,506,409 | | |
$ | 2,565,224 | |
| |
| | | |
| | |
LIABILITIES AND DEFICIENCY | |
| | | |
| | |
| |
| | | |
| | |
CURRENT LIABILITIES: | |
| | | |
| | |
Short term notes payable | |
$ | 448,362 | | |
$ | 661,635 | |
Accounts payable | |
| 608,678 | | |
| 612,801 | |
Accounts payable - related parties | |
| 226,964 | | |
| 207,783 | |
Short term loans - bank | |
| 232,148 | | |
| 257,502 | |
Short term loans - others | |
| 51,995 | | |
| 60,717 | |
Short term loans - related parties | |
| 217,397 | | |
| 46,380 | |
Other payables and accrued liabilities | |
| 51,985 | | |
| 55,488 | |
Other payable - related parties | |
| 96,277 | | |
| 87,252 | |
Customer deposits | |
| 139,106 | | |
| 92,974 | |
Customer deposits - related parties | |
| 148,176 | | |
| 132,616 | |
Deposit due to sales representatives | |
| 19,361 | | |
| 17,871 | |
Deposit due to sales representatives - related parties | |
| 2,553 | | |
| 2,509 | |
Taxes payable | |
| 9,393 | | |
| 5,201 | |
Deferred lease income, current | |
| 2,179 | | |
| 2,176 | |
Capital lease obligations, current | |
| 8,678 | | |
| 8,508 | |
TOTAL CURRENT LIABILITIES | |
| 2,263,252 | | |
| 2,251,413 | |
| |
| | | |
| | |
NON-CURRENT LIABILITIES: | |
| | | |
| | |
Long-term loans - related party | |
| 352,850 | | |
| 339,549 | |
Deferred lease income, noncurrent | |
| 72,258 | | |
| 72,713 | |
Capital lease obligations, noncurrent | |
| 397,416 | | |
| 393,252 | |
Profit sharing liability | |
| 57,538 | | |
| 70,422 | |
TOTAL NON-CURRENT LIABILITIES | |
| 880,062 | | |
| 875,936 | |
TOTAL LIABILITIES | |
| 3,143,314 | | |
| 3,127,349 | |
| |
| | | |
| | |
COMMITMENTS AND CONTINGENCIES | |
| | | |
| | |
| |
| | | |
| | |
DEFICIENCY: | |
| | | |
| | |
Preferred stock, $0.001 par value, 50,000,000 shares authorized, 3,092,899 shares issued and outstanding as of March 31, 2015 and December 31, 2014 | |
| 3 | | |
| 3 | |
Common stock, $0.001 par value, 200,000,000 shares authorized, 64,458,588 shares issued and 61,986,282 shares outstanding as of March 31, 2015 and December 31, 2014, respectively | |
| 64 | | |
| 64 | |
Treasury stock, at cost, 2,472,306 shares as of March 31, 2015 and December 31, 2014 | |
| (4,199 | ) | |
| (4,199 | ) |
Paid-in-capital | |
| 115,563 | | |
| 115,494 | |
Statutory reserves | |
| 6,539 | | |
| 6,472 | |
Accumulated deficits | |
| (508,674 | ) | |
| (463,521 | ) |
Accumulated other comprehensive income | |
| 163 | | |
| 644 | |
TOTAL GENERAL STEEL HOLDINGS, INC. DEFICIENCY | |
| (390,541 | ) | |
| (345,043 | ) |
| |
| | | |
| | |
NONCONTROLLING INTERESTS | |
| (246,364 | ) | |
| (217,082 | ) |
TOTAL DEFICIENCY | |
| (636,905 | ) | |
| (562,125 | ) |
| |
| | | |
| | |
TOTAL LIABILITIES AND DEFICIENCY | |
$ | 2,506,409 | | |
| 2,565,224 | |
General Steel Holdings, Inc.
Page 6 of 7
GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)
(In thousands, except per share data)
|
|
For the
Three months ended March 31, |
|
|
|
2015 |
|
|
2014 |
|
SALES |
|
$ |
270,769 |
|
|
$ |
512,005 |
|
SALES - RELATED PARTIES |
|
|
57,395 |
|
|
|
82,206 |
|
TOTAL SALES |
|
|
328,164 |
|
|
|
594,211 |
|
|
|
|
|
|
|
|
|
|
COST OF GOODS SOLD |
|
|
297,565 |
|
|
|
530,744 |
|
COST OF GOODS SOLD - RELATED PARTIES |
|
|
62,746 |
|
|
|
86,028 |
|
TOTAL COST OF GOODS SOLD |
|
|
360,311 |
|
|
|
616,772 |
|
|
|
|
|
|
|
|
|
|
GROSS LOSS |
|
|
(32,147 |
) |
|
|
(22,561 |
) |
|
|
|
|
|
|
|
|
|
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
|
|
(17,355 |
) |
|
|
(21,053 |
) |
UNALLOCATED OVERHEADS EXPENSES |
|
|
(19,134 |
) |
|
|
- |
|
CHANGE IN FAIR VALUE OF PROFIT SHARING LIABILITY |
|
|
12,924 |
|
|
|
(49 |
) |
|
|
|
|
|
|
|
|
|
LOSS FROM OPERATIONS |
|
|
(55,712 |
) |
|
|
(43,663 |
) |
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
Interest income |
|
|
2,331 |
|
|
|
3,192 |
|
Finance/interest expense |
|
|
(20,570 |
) |
|
|
(28,695 |
) |
Gain on disposal of equipment and intangible assets |
|
|
16 |
|
|
|
46 |
|
Income from equity investments |
|
|
(37 |
) |
|
|
13 |
|
Foreign currency transaction loss |
|
|
(873 |
) |
|
|
(854 |
) |
Lease income |
|
|
543 |
|
|
|
546 |
|
Other non-operating income (expense), net |
|
|
223 |
|
|
|
(176 |
) |
Other expense, net |
|
|
(18,367 |
) |
|
|
(25,928 |
) |
|
|
|
|
|
|
|
|
|
LOSS BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST |
|
|
(74,079 |
) |
|
|
(69,591 |
) |
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME TAXES |
|
|
30 |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
NET LOSS |
|
|
(74,109 |
) |
|
|
(69,596 |
) |
Less: Net loss income attributable to noncontrolling interest |
|
|
(28,956 |
) |
|
|
(26,032 |
) |
|
|
|
|
|
|
|
|
|
NET LOSS ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC. |
|
$ |
(45,153 |
) |
|
$ |
(43,564 |
) |
|
|
|
|
|
|
|
|
|
NET LOSS |
|
$ |
(74,109 |
) |
|
$ |
(69,596 |
) |
OTHER COMPREHENSIVE LOSS |
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
|
|
(853 |
) |
|
|
4,670 |
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE LOSS |
|
|
(74,962 |
) |
|
|
(64,926 |
) |
Less: Comprehensive loss attributable to noncontrolling interest |
|
|
(29,328 |
) |
|
|
(24,226 |
) |
|
|
|
|
|
|
|
|
|
COMPREHENSIVE LOSS ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC. |
|
$ |
(45,634 |
) |
|
$ |
(40,700 |
) |
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF SHARES |
|
|
|
|
|
|
|
|
Basic and Diluted |
|
|
61,986 |
|
|
|
55,813 |
|
|
|
|
|
|
|
|
|
|
LOSS PER SHARE |
|
|
|
|
|
|
|
|
Basic and Diluted |
|
$ |
(0.73 |
) |
|
$ |
(0.78 |
) |
General Steel Holdings, Inc.
Page 7 of 7
GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)
|
|
For the Three months ended March 31, |
|
|
|
2015 |
|
|
2014 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(74,109 |
) |
|
$ |
(69,596 |
) |
Adjustments to reconcile net loss to cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
Depreciation, amortization and depletion |
|
|
25,164 |
|
|
|
24,346 |
|
Change in fair value of derivative liabilities |
|
|
(12,924 |
) |
|
|
49 |
|
Gain loss on disposal of equipment and intangible assets |
|
|
(16 |
) |
|
|
(46 |
) |
Provision for doubtful accounts |
|
|
1,279 |
|
|
|
(251 |
) |
Reservation of mine maintenance fee |
|
|
113 |
|
|
|
242 |
|
Stock issued for services and compensation |
|
|
69 |
|
|
|
150 |
|
Amortization of deferred financing cost on capital lease |
|
|
4,966 |
|
|
|
5,086 |
|
Income (loss) from equity investments |
|
|
37 |
|
|
|
(13 |
) |
Foreign currency transaction (gain) loss |
|
|
873 |
|
|
|
854 |
|
Deferred lease income |
|
|
(543 |
) |
|
|
(546 |
) |
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
|
Notes receivable |
|
|
32,504 |
|
|
|
(70,354 |
) |
Accounts receivable |
|
|
(1,373 |
) |
|
|
(102 |
) |
Accounts receivable - related parties |
|
|
(151,218 |
) |
|
|
(1,569 |
) |
Other receivables |
|
|
(40,476 |
) |
|
|
355 |
|
Other receivables - related parties |
|
|
33,231 |
|
|
|
(4,219 |
) |
Inventories |
|
|
7,327 |
|
|
|
(730 |
) |
Advances on inventory purchases |
|
|
24,380 |
|
|
|
176 |
|
Advances on inventory purchases - related parties |
|
|
28,436 |
|
|
|
(38,419 |
) |
Prepaid expense and other |
|
|
(468 |
) |
|
|
(516 |
) |
Long-term deferred expense |
|
|
7 |
|
|
|
56 |
|
Prepaid taxes |
|
|
(54 |
) |
|
|
4,963 |
|
Accounts payable |
|
|
(7,706 |
) |
|
|
59,351 |
|
Accounts payable - related parties |
|
|
18,856 |
|
|
|
16,986 |
|
Other payables and accrued liabilities |
|
|
(3,625 |
) |
|
|
15,300 |
|
Other payables - related parties |
|
|
8,960 |
|
|
|
(12,676 |
) |
Customer deposits |
|
|
45,848 |
|
|
|
20,043 |
|
Customer deposits - related parties |
|
|
15,341 |
|
|
|
113,895 |
|
Taxes payable |
|
|
4,171 |
|
|
|
2,708 |
|
Net cash (used in) provided by operating activities |
|
|
(40,950 |
) |
|
|
65,523 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Restricted cash |
|
|
105,911 |
|
|
|
(32,943 |
) |
Loan to unrelated parties |
|
|
(6,500 |
) |
|
|
- |
|
Repayments from related parties |
|
|
33,791 |
|
|
|
- |
|
Cash proceeds from short term investment |
|
|
81 |
|
|
|
164 |
|
Payments for short term investment |
|
|
(4,875 |
) |
|
|
- |
|
Cash proceeds from sales of equipment and intangible assets |
|
|
- |
|
|
|
24 |
|
Equipment purchase and intangible assets |
|
|
(31,589 |
) |
|
|
(56,861 |
) |
Net cash provided by (used in) investing activities |
|
|
96,819 |
|
|
|
(89,616 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Restricted notes receivable |
|
|
30,934 |
|
|
|
131,971 |
|
Borrowings on short term notes payable |
|
|
96,525 |
|
|
|
439,342 |
|
Payments on short term notes payable |
|
|
(309,823 |
) |
|
|
(485,455 |
) |
Borrowings on short term loans - bank |
|
|
61,023 |
|
|
|
95,120 |
|
Payments on short term loans - bank |
|
|
(87,471 |
) |
|
|
(165,711 |
) |
Borrowings on short term loan - others |
|
|
74,517 |
|
|
|
9,853 |
|
Payments on short term loans - others |
|
|
(54,275 |
) |
|
|
(14,426 |
) |
Borrowings on short term loan - related parties |
|
|
75,641 |
|
|
|
24,528 |
|
Payments on short term loans - related parties |
|
|
(569 |
) |
|
|
(5,849 |
) |
Deposits due to sales representatives |
|
|
1,462 |
|
|
|
(425 |
) |
Deposit due to sales representatives - related parties |
|
|
41 |
|
|
|
- |
|
Borrowings on long-term loans - related party |
|
|
56,063 |
|
|
|
- |
|
Payments on long-term loans - related party |
|
|
(813 |
) |
|
|
- |
|
Principal payment on capital lease obligation |
|
|
(1,074 |
) |
|
|
- |
|
Net cash used in financing activities |
|
|
(57,819 |
) |
|
|
(28,948 |
) |
EFFECTS OF EXCHANGE RATE CHANGE IN CASH |
|
|
45 |
|
|
|
(444 |
) |
(DECREASE) INCREASE IN CASH |
|
|
(1,905 |
) |
|
|
4,411 |
|
CASH, beginning of period |
|
|
11,641 |
|
|
|
31,967 |
|
CASH, end of period |
|
$ |
9,736 |
|
|
$ |
36,378 |
|
1 This presentation is intended to be viewed in conjunction with the General Steel Holdings, Inc. First Quarter 2015 earnings call. First Quarter 2015 Earnings Call Presentation May 15, 2015 ; EXHIBIT 99.2
2 This presentation is intended to be viewed in conjunction with the General Steel Holdings, Inc. First Quarter 2015 earnings call. Safe Harbor Statement This presentation (including the financial projections and any subsequent questions and answers) contains statements that are forward - looking within the meaning of Section 27 A of the Securities Act of 1933 and Section 21 E of the Securities Exchange Act of 1934 . Such forward - looking statements are only predictions and are not guarantees of future performance . Any such forward - looking statements are and will be, as the case may be, subject to many risks, uncertainties, certain assumptions and factors relating to the operations and business environments of General Steel Holdings, Inc . and its subsidiaries that may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward - looking statements . These risk factors, include, but are not limited to, any comments relating to our financial performance, the competitive nature of the marketplace, the condition of the worldwide economy and other factors that have been or will be detailed in the Company’s periodic filings (including Forms 8 - K, 10 - K and 10 - Q) or other documents filed with the Securities and Exchange Commission . For more detailed information on the Company, please refer to the Company filings with the Securities and Exchange Commission, which are readily available at http : //www . sec . gov, or through the Company’s Investor Relations website at http : //www . gshi - steel . com . The Company undertakes no obligation to publicly update any forward - looking statement, whether as a result of new information, future events or otherwise .
3 This presentation is intended to be viewed in conjunction with the General Steel Holdings, Inc. First Quarter 2015 earnings call. Internet - of - Things Opportunities and Pipelines Agenda China Steel Industry Dynamics Continued Sharp Fall in ASP in First Quarter 2015 Review of First Quarter 2015 Financials Equipment Upgrades at Longmen Joint Venture
4 This presentation is intended to be viewed in conjunction with the General Steel Holdings, Inc. First Quarter 2015 earnings call. Continued Sharp Fall in ASP in 1Q15 Profitability Deterioration Continues in 1Q 2015 Record Decline in Chinese Steel Consumption CNY/ mt Slowest Crude Steel Production Growth on Record *Database from Bloomberg, Word Steel Association, China Customs China Steel Prices Encountered the Steepest Sequential Decline ASP in 1Q15 Down By 12.4% QoQ 1Q15 Crude Steel Output Fell 1.7% YoY the biggest drop on record
5
This presentation is intended to be viewed in conjunction with the General Steel Holdings, Inc. First Quarter 2015 earnings call.
Internet - of - Things Opportunities & Pipelines Intelligent Parking Management & Payment Platform x L everage on GSI
vertical resources and expertise . x Started a trial asset management system for Tewoo Group at 7 logistic storage centers in
Wuxi. x Initialed first batch samples shipment in April 2015. x L ong - term target is to build a comprehensive cloud - based
IoT platform for bulk commodity logistic . Logistic RFID Tags for Bulk Commodity x Pursuing the urgent and thus far unmet demand
for better parking management. x Enhances parking lot’s efficiency and utilization, facilitated with integrated settlement
and collection system. x Developing an IOS and Android based mobile App, applying patent. x R ecurring revenue sharing of approximately
3% of the total transaction , as well as securing attractive cash cycle and cash flow . x RFID solutions to tracks books, IT equipment,
and other school property. x Enables schools to protect from theft and loss. x Enhances equipment visibility and usage utilization
. x Signed a letter of intent for deployment on over 100 schools in the US Assets Tracking in Education
6 This presentation is intended to be viewed in conjunction with the General Steel Holdings, Inc. First Quarter 2015 earnings call. Items 1Q 2015 1Q 2014 Y - o - Y% Total Sales Volume (Thousands MT) 955 1,318 - 27.6% ASP of Rebar** (US$ /MT) 343.8 450.9 - 23.7% Revenue (US$ million) 328.2 594.2 - 44.8% Gross Loss (US$ million) - 32.1 - 22.6 N.A. Operating Loss* (US$ million) - 55.7 - 43.7 N.A. Finance Expense (US$ million) - 20.6 - 28.7 - 28.3% EPS* (US$) - 0.73 - 0.78 N.A. First Quarter 2015 Financial Summary Sales Volume Breakdown • Includes $12.9 million change in fair value of profit sharing liability for the first quarter of 2015. • ** ASP of rebar at Longmen Joint Venture Thousands MT Operating Expense Breakdown 8.3 6.4 12.7 11.0 19.1 1Q 2014 1Q 2015 Unallocated Overheads Expense G&A Expense Selling Expense USD Million 1,318 955 1Q 2014 1Q 2015 Longmen Joint Venture $21.0 $36.5
7 This presentation is intended to be viewed in conjunction with the General Steel Holdings, Inc. First Quarter 2015 earnings call. Balance Sheet Summary AS OF (USD 1,000) March 31, 2015 December 31, 2014 Assets: Cash and Restricted Cash $259,556 $367,326 Accounts Receivable $170,972 $17,819 Notes Receivable $1,606 $10,290 Inventories $148,295 $156,327 Advances on Inventory Purchases $60,683 $119,436 Total Current Assets $899,586 $970,409 Property Plant and Equipment $ 1,561,511 $ 1,543,136 Total Assets $ 2,506,409 $ 2,565,224 Liabilities: Short Term Notes Payable $448,362 $661,635 Accounts Payable $835,642 $820,584 Short Term Loan $501,540 $364,599 Customer Deposits $287,282 $225,590 Taxes Payable $9,393 $5,201 Total Current Liabilities $ 2,263,252 $ 2,251,413 Capital Lease Obligations, noncurrent $ 397,416 $ 393,252 Profit Sharing Liability $ 57,538 $ 70,422
8 This presentation is intended to be viewed in conjunction with the General Steel Holdings, Inc. First Quarter 2015 earnings call. Equipment Upgrades Blast Furnaces at Longmen Joint Venture Sintering Machines at Longmen Joint Venture 4 x 1,280 m 3 450 m 3 1,880 m 3 450 m 2 4 00 m 2 Completed upgrades in January 2015, production at new equipment ramping up in 1Q 2015 , expect to cut unit production cost by RMB 89/mt once production normalizes. 265 m 2
9 This presentation is intended to be viewed in conjunction with the General Steel Holdings, Inc. First Quarter 2015 earnings call. 9 Q&A Joyce Sung General Steel Holdings, Inc. Tel: +1 - 347 - 534 - 1435 Email: joyce.sung@gshi - steel.com ;
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