BEIJING, Aug. 20, 2015 /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 second quarter ended June 30,
2015.
Ms. Yunshan Li, Chief Executive
Officer of General Steel commented, "Since being appointed as CEO
of General Steel in late July, my top priority has been reviewing
and integrating the Company's resources in order to chart the best
course for our business transformation. During our strategic
reviews, we noted that General Steel is one of the most efficient
steel producers in China and that
it has excellent experience, resources and expertise. And as we
further evaluated General Steel's total value chain, we believe
that the more an organization moves upstream towards energy-saving
and environmental protection solutions, the higher its return on
investments and sustainability will be. As such, we are very
excited about the potential possibilities for the Company in the
clean-tech and environmental protection sector."
Ms. Li added, "China is now the
world's largest energy consumer and has the largest number of
coal-fired power plants and steel mills. The Chinese
government is fully aware of the impact from fossil-fuel pollution
and is launching the tightest-ever restrictions on emission
standards. In my view, General Steel not only has its own demand
for clean-tech and environmental protection solutions, but also
rich industry resources to promote clean-tech adoption. We feel
confident that the combination of my direct knowledge, expertise,
and access to emission reduction technology and GSI's excellent
experience, resources and expertise will enable us to successfully
produce and sell leading clean-tech solutions in China."
John Chen, Chief Financial
Officer of General Steel, commented, "As we forge ahead with our
business transformation, in the second quarter we proactively
revalued our steel-manufacturing equipment in Longmen Joint
Venture, and took a write-down of $973.9 million in its
carrying value to better reflect the current market
conditions. We believe this will lighten future depreciation burden
and better enable the Company to adopt new business models."
Second Quarter 2015 Financial
Information
- Sales volume from Longmen Joint Venture increased by 30.2%
year-over-year to approximately 1.70 million metric tons, compared
with 1.31 million metric tons in the second quarter of 2014.
- Sales totaled $528.8 million,
compared with $588.0 million in the
second quarter of 2014.
- Gross loss was $(64.3) million,
or (12.2%) of total sales, compared with gross profit of
$28.1 million, or 4.8% of total sales
in the second quarter of 2014.
- Loss from operations totaled $(1.0)
billion, compared with income from operations of
$6.3 million in the second quarter of
2014.
- Net loss attributable to the Company was $(615.0) million, or $(9.80) per diluted share, compared with
$(11.0) million, or $(0.20) per share in the second quarter of
2014.
- As of June 30, 2015, the Company
had cash and restricted cash of $266.5
million.
Second Quarter 2015 Financial and Operating Results
Total Sales
Total sales for the second quarter of 2015 decreased by 10.1%
year-over-year to $528.8 million,
compared with $588.0 million in the
second quarter of 2014. The year-over-year sales decrease was
primarily due to the significant decreases in the average selling
price of rebar, partially offset by the higher sales volume.
- Total sales volume from Longmen Joint Venture in the second
quarter of 2015 was 1.70 million metric tons, an increase of 30.2%
compared with 1.31 million metric tons in the second quarter of
2014.
- The average selling price of rebar at Longmen Joint Venture in
the second quarter of 2015 decreased to approximately $311.2 per metric ton, down by 30.8% from
$450.0 per metric ton in the second
quarter of 2014.
Gross (Loss) Profit
Gross loss for the second quarter of 2015 was $(64.3) million, or (12.2)% of total sales, as
compared with gross profit of $28.1
million, or 4.8% of total sales in the second quarter of
2014. The decrease in gross margin was mainly due to a steeper
decrease in the average selling price of rebar, compared with the
decrease in unit cost of manufactured rebar.
Operating Expenses and (Loss) Income from Operations
Selling, general and administrative expenses for the second
quarter of 2015 were $22.1 million,
an increase of 17.2% from $18.8
million in the second quarter of 2014. General and
administrative expenses increased to $11.7
million in the second quarter of 2015, compared with
$9.1 million in the second quarter of
2014, which was primarily due to higher expenses for environment
protection and a higher local tax rate. Selling expenses increased
slightly to $10.4 million in the
second quarter of 2015, compared with $9.7
million in the same period of 2014.
The Company accrued unallocated overheads expenses of
$5.3 million in its operating
expenses for the second 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 abnormally low production in May
2015 because it temporarily shut down of one its furnaces to
perform maintenance and mechanical adjustments.
The Company recorded non-cash impairment charges of
approximately $973.9 million in the
second quarter of 2015, in connection with the write-down of the
carrying value of Longmen Joint Venture's long-lived assets. The
impairment was primarily related to the continuous worsen condition
for China steel industry, and is
assessed based on discounted cash flows fair value
measurements.
Other operating income from a change in the fair value of profit
sharing liability during the second quarter of 2015 was
$57.5 million, compared with a loss
on change in fair value of profit sharing liability of $(2.9) million in the same period of last
year.
Correspondingly, loss from operations for the second quarter of
2015 totaled $(1.0) billion, compared
with income from operations of $6.3
million for the second quarter of 2014. Excluding the
one-time non-cash impairment charges, adjusted loss from
operations for the second quarter of 2015 would have been
$(34.2) million.
Finance Expense
Finance and interest expense in the second quarter of 2015 was
$29.6 million, of which $5.2 million was the non-cash interest expense on
capital lease, as compared with $5.7
million in the same period of 2014, and $24.4 million was the interest expense on bank
loans and discounted note receivables, as compared with
$21.0 million in the same period of
2014.
Net Loss and Net Loss per Share
Net loss attributable to General Steel for the second quarter of
2015 was $(615.0) million, or
$(9.80) per diluted share, based on
62.7 million weighted average shares outstanding. Excluding the
one-time non-cash impairment charges, adjusted net loss
attributable to General Steel for the second quarter of 2015 would
have been $(36.7) million. This
compares to a net loss attributable to General Steel of
$(11.0) million, or $(0.20) per share, based on 55.8 million weighted
average shares outstanding in the second quarter of 2014.
Balance Sheet
As of June 30, 2015, the Company
had cash and restricted cash of approximately $266.5 million, compared to $367.3 million as of December 31, 2014. The Company had an inventory
balance of $153.1 million as of
June 30, 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
Thursday, August 20, 2015 (which
corresponds to 8:00 p.m. Beijing/Hong Kong Time on Thursday, August 20, 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
August 27, 2015 by dialing:
US Toll
Free:
|
1-877-344-7529
|
International Toll:
|
1-412-317-0088
|
Access
Code:
|
10071183
|
About General Steel
General Steel 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.
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. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(UNAUDITED)
(In
thousands)
|
|
|
|
|
June 30,
|
|
December
31,
|
ASSETS
|
2015
|
|
2014
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash
|
$
|
36,250
|
|
$
|
11,641
|
|
Restricted cash
|
|
230,240
|
|
|
355,685
|
|
Notes
receivable
|
|
5,736
|
|
|
10,290
|
|
Restricted notes receivable
|
|
39,111
|
|
|
111,801
|
|
Loans
receivable
|
|
42,595
|
|
|
36,001
|
|
Loans
receivable - related parties
|
|
6,110
|
|
|
34,713
|
|
Accounts
receivable, net
|
|
11,205
|
|
|
9,321
|
|
Accounts
receivable - related parties
|
|
3,198
|
|
|
8,498
|
|
Other
receivables, net
|
|
62,626
|
|
|
63,746
|
|
Other
receivables - related parties
|
|
7,329
|
|
|
39,670
|
|
Inventories
|
|
153,129
|
|
|
156,327
|
|
Advances on
inventory purchase
|
|
53,389
|
|
|
73,819
|
|
Advances on
inventory purchase - related parties
|
|
13,411
|
|
|
45,617
|
|
Prepaid
expense and other
|
|
6,230
|
|
|
4,803
|
|
Prepaid
taxes
|
|
4,242
|
|
|
5,789
|
|
Short-term investment
|
|
7,670
|
|
|
2,688
|
TOTAL CURRENT
ASSETS
|
|
|
682,471
|
|
|
970,409
|
|
|
|
|
|
|
|
|
|
PLANT AND
EQUIPMENT, net
|
|
569,477
|
|
|
1,543,136
|
|
|
|
|
|
|
|
|
|
OTHER
ASSETS:
|
|
|
|
|
|
|
Advances
on equipment purchase
|
|
2,520
|
|
|
11,438
|
|
Investment in
unconsolidated entities
|
|
16,749
|
|
|
16,823
|
|
Long-term
deferred expense
|
|
|
|
446
|
|
|
458
|
|
Intangible assets, net of accumulated
amortization
|
|
22,706
|
|
|
22,960
|
TOTAL OTHER
ASSETS
|
|
|
42,421
|
|
|
51,679
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
|
$
|
1,294,369
|
|
$
|
2,565,224
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
DEFICIENCY
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Short
term notes payable
|
$
|
531,869
|
|
$
|
661,635
|
|
Accounts
payable
|
|
596,466
|
|
|
612,801
|
|
Accounts
payable - related parties
|
|
211,149
|
|
|
207,783
|
|
Short
term loans - bank
|
|
153,989
|
|
|
257,502
|
|
Short
term loans - others
|
|
65,158
|
|
|
60,717
|
|
Short
term loans - related parties
|
|
279,950
|
|
|
46,380
|
|
Other payables
and accrued liabilities
|
|
61,805
|
|
|
55,488
|
|
Other
payable - related parties
|
|
80,028
|
|
|
87,252
|
|
Customer
deposits
|
|
86,860
|
|
|
92,974
|
|
Customer
deposits - related parties
|
|
33,923
|
|
|
132,616
|
|
Deposit due to
sales representatives
|
|
15,782
|
|
|
17,871
|
|
Deposit due to
sales representatives - related parties
|
|
2,872
|
|
|
2,509
|
|
Taxes
payable
|
|
7,984
|
|
|
5,201
|
|
Deferred lease
income, current
|
|
2,180
|
|
|
2,176
|
|
Capital lease
obligations, current
|
|
9,942
|
|
|
8,508
|
|
TOTAL CURRENT
LIABILITIES
|
|
2,139,957
|
|
|
2,251,413
|
|
|
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Long-term
loans - related party
|
|
353,067
|
|
|
339,549
|
|
Deferred lease
income, noncurrent
|
|
71,757
|
|
|
72,713
|
|
Capital lease
obligations, noncurrent
|
|
401,283
|
|
|
393,252
|
|
Profit
sharing liability
|
|
-
|
|
|
70,422
|
|
TOTAL
NON-CURRENT LIABILITIES
|
|
826,107
|
|
|
875,936
|
TOTAL
LIABILITIES
|
|
|
|
2,966,064
|
|
|
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 June 30, 2015 and December 31, 2014
|
|
3
|
|
|
3
|
|
Common stock, $0.001
par value, 200,000,000 shares
authorized, 66,456,588 shares and 64,458,588 shares
issued, 63,984,282 shares and 61,986,282 shares
outstanding as of June 30, 2015 and December 31, 2014,
respectively
|
|
66
|
|
|
64
|
|
Treasury stock, at
cost, 2,472,306 shares as of June
30,2015 and December 31, 2014
|
|
(4,199)
|
|
|
(4,199)
|
|
Paid-in-capital
|
|
117,274
|
|
|
115,494
|
|
Statutory
reserves
|
|
6,583
|
|
|
6,472
|
|
Accumulated
deficits
|
|
(1,123,701)
|
|
|
(463,521)
|
|
Accumulated
other comprehensive income
|
|
(1,259)
|
|
|
644
|
|
TOTAL GENERAL STEEL
HOLDINGS, INC. DEFICIENCY
|
|
|
(1,005,233)
|
|
|
(345,043)
|
|
|
|
|
|
|
|
|
|
NONCONTROLLING
INTERESTS
|
|
(666,462)
|
|
|
(217,082)
|
|
TOTAL
DEFICIENCY
|
|
|
(1,671,695)
|
|
|
(562,125)
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
DEFICIENCY
|
|
|
$
|
1,294,369
|
|
$
|
2,565,224
|
GENERAL STEEL
HOLDINGS, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
FOR THE THREE AND
SIX MONTHS ENDED JUNE 30, 2015 AND 2014
|
(UNAUDITED)
|
(In thousands,
except per share data)
|
|
|
Three months ended
June 30,
|
|
Six months ended June
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES
|
|
$
|
454,855
|
|
$
|
508,637
|
|
$
|
725,624
|
|
$
|
1,020,642
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES - RELATED
PARTIES
|
|
|
73,926
|
|
|
79,376
|
|
|
131,321
|
|
|
161,582
|
TOTAL
SALES
|
|
|
528,781
|
|
|
588,013
|
|
|
856,945
|
|
|
1,182,224
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF GOODS
SOLD
|
|
|
509,185
|
|
|
482,011
|
|
|
806,750
|
|
|
1,012,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF GOODS SOLD -
RELATED PARTIES
|
|
|
83,865
|
|
|
77,908
|
|
|
146,611
|
|
|
163,936
|
TOTAL COST OF GOODS
SOLD
|
|
|
593,050
|
|
|
559,919
|
|
|
953,361
|
|
|
1,176,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT(LOSS)
|
|
|
(64,269)
|
|
|
28,094
|
|
|
(96,416)
|
|
|
5,533
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES
|
|
|
(22,083)
|
|
|
(18,849)
|
|
|
(39,438)
|
|
|
(39,902)
|
UNALLOCATED OVERHEADS
EXPENSES
|
|
|
(5,309)
|
|
|
-
|
|
|
(24,443)
|
|
|
-
|
IMPAIRMENT
EXPENSE
|
|
|
(973,860)
|
|
|
-
|
|
|
(973,860)
|
|
|
-
|
CHANGE IN FAIR VALUE
OF PROFIT SHARING LIABILITY
|
|
|
57,499
|
|
|
(2,920)
|
|
|
70,423
|
|
|
(2,969)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM
OPERATIONS
|
|
|
(1,008,022)
|
|
|
6,325
|
|
|
(1,063,734)
|
|
|
(37,338)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
2,741
|
|
|
4,066
|
|
|
5,072
|
|
|
7,258
|
Finance/interest
expense
|
|
|
(29,575)
|
|
|
(26,619)
|
|
|
(50,145)
|
|
|
(55,314)
|
Loss on disposal of
equipment and intangible assets
|
|
|
(44)
|
|
|
(142)
|
|
|
(28)
|
|
|
(96)
|
Income(loss) from
equity investments
|
|
|
34
|
|
|
54
|
|
|
(3)
|
|
|
67
|
Foreign currency
transaction loss
|
|
|
(249)
|
|
|
(963)
|
|
|
(1,122)
|
|
|
(1,817)
|
Lease
income
|
|
|
545
|
|
|
542
|
|
|
1,088
|
|
|
1,088
|
Other non-operating
income (expense), net
|
|
|
378
|
|
|
302
|
|
|
601
|
|
|
126
|
Other expense,
net
|
|
|
(26,170)
|
|
|
(22,760)
|
|
|
(44,537)
|
|
|
(48,688)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE PROVISION
FOR INCOME TAXES AND
NONCONTROLLING INTEREST
|
|
|
(1,034,192)
|
|
|
(16,435)
|
|
|
(1,108,271)
|
|
|
(86,026)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES
|
|
|
111
|
|
|
107
|
|
|
141
|
|
|
112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
|
(1,034,303)
|
|
|
(16,542)
|
|
|
(1,108,412)
|
|
|
(86,138)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net loss
attributable to noncontrolling interest
|
|
|
(419,276)
|
|
|
(5,523)
|
|
|
(448,232)
|
|
|
(31,555)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS ATTRIBUTABLE
TO GENERAL STEEL HOLDINGS,
INC.
|
|
$
|
(615,027)
|
|
$
|
(11,019)
|
|
$
|
(660,180)
|
|
$
|
(54,583)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
$
|
(1,034,303)
|
|
$
|
(16,542)
|
|
$
|
(1,108,412)
|
|
$
|
(86,138)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
LOSS
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
|
(2,274)
|
|
|
(929)
|
|
|
(3,127)
|
|
|
3,741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
LOSS
|
|
|
(1,036,577)
|
|
|
(17,471)
|
|
|
(1,111,539)
|
|
|
(82,397)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Comprehensive
loss attributable to noncontrolling interest
|
|
|
(420,128)
|
|
|
(5,875)
|
|
|
(449,456)
|
|
|
(30,101)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE LOSS
ATTRIBUTABLE TO GENERAL STEEL
HOLDINGS, INC.
|
|
$
|
(616,449)
|
|
$
|
(11,596)
|
|
$
|
(662,083)
|
|
$
|
(52,296)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
NUMBER OF SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
|
62,777
|
|
|
55,842
|
|
|
62,384
|
|
|
55,828
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
$
|
(9.80)
|
|
$
|
(0.20)
|
|
$
|
(10.58)
|
|
$
|
(0.98)
|
|
GENERAL STEEL
HOLDINGS, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
(In
thousands)
|
|
|
For the
Six months ended June
30,
|
|
|
2015
|
|
2014
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
Net loss
|
$
|
(1,108,412)
|
|
$
|
(86,138)
|
|
Adjustments to
reconcile net loss to cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
Depreciation,
amortization and depletion
|
|
56,596
|
|
|
47,788
|
|
|
Impairment of plant
and equipment
|
|
973,860
|
|
|
|
|
|
Change in fair value
of profit sharing liability
|
|
(70,423)
|
|
|
2,969
|
|
|
Gain on disposal of
equipment and intangible assets
|
|
28
|
|
|
96
|
|
|
Provision (recovery)
for doubtful accounts
|
|
2,548
|
|
|
(250)
|
|
|
Reservation of mine
maintenance fee
|
|
187
|
|
|
278
|
|
|
Stock issued for
services and compensation
|
|
382
|
|
|
219
|
|
|
Amortization of
deferred financing cost on capital lease
|
|
9,765
|
|
|
9,253
|
|
|
Income (loss) from
equity investments
|
|
3
|
|
|
(67)
|
|
|
Foreign currency
transaction loss
|
|
1,122
|
|
|
1,817
|
|
|
Deferred lease
income
|
|
(1,088)
|
|
|
(1,088)
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
Notes
receivable
|
|
5,238
|
|
|
45,931
|
|
|
Accounts
receivable
|
|
(1,888)
|
|
|
(1,008)
|
|
|
Accounts receivable -
related parties
|
|
5,307
|
|
|
(2,875)
|
|
|
Other
receivables
|
|
(1,188)
|
|
|
(307)
|
|
|
Other receivables -
related parties
|
|
32,353
|
|
|
(4,275)
|
|
|
Inventories
|
|
2,631
|
|
|
1,286
|
|
|
Advances on inventory
purchases
|
|
20,528
|
|
|
(13,968)
|
|
|
Advances on inventory
purchases - related parties
|
|
39,581
|
|
|
(36,971)
|
|
|
Prepaid expense and
other
|
|
(19)
|
|
|
(1,947)
|
|
|
Long-term deferred
expense
|
|
14
|
|
|
111
|
|
|
Prepaid
taxes
|
|
1,555
|
|
|
15,747
|
|
|
Accounts
payable
|
|
(22,969)
|
|
|
(18,050)
|
|
|
Accounts payable -
related parties
|
|
2,978
|
|
|
28,204
|
|
|
Other payables and
accrued liabilities
|
|
6,223
|
|
|
2,637
|
|
|
Other payables -
related parties
|
|
(7,334)
|
|
|
4,824
|
|
|
Customer
deposits
|
|
(6,274)
|
|
|
49,187
|
|
|
Customer deposits -
related parties
|
|
(191,619)
|
|
|
78,667
|
|
|
Taxes
payable
|
|
2,769
|
|
|
(413)
|
|
|
Net cash provided by
operating activities
|
|
(247,546)
|
|
|
121,657
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
Restricted
cash
|
|
125,868
|
|
|
(51,820)
|
|
Loans to unrelated
parties
|
|
(6,516)
|
|
|
-
|
|
Loans receivable -
related party
|
|
114,127
|
|
|
-
|
|
Cash proceeds from
short term investment
|
|
2,606
|
|
|
-
|
|
Payments for short
term investment
|
|
(7,575)
|
|
|
-
|
|
Cash proceeds from
sales of equipment and intangible assets
|
|
-
|
|
|
24
|
|
Equipment purchase
and intangible assets
|
|
(40,174)
|
|
|
(112,713)
|
|
Net cash provided by
(used in) investing activities
|
|
188,336
|
|
|
(164,509)
|
|
|
CASH FLOWS FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
Restricted notes
receivable
|
|
72,762
|
|
|
286,485
|
|
Borrowings on short
term notes payable
|
|
497,497
|
|
|
900,202
|
|
Payments on short
term notes payable
|
|
(628,240)
|
|
|
(1,035,408)
|
|
Borrowings on short
term loans - bank
|
|
97,026
|
|
|
185,023
|
|
Payments on short
term loans - bank
|
|
(201,944)
|
|
|
(285,100)
|
|
Borrowings on short
term loan - others
|
|
109,420
|
|
|
19,949
|
|
Payments on short
term loans - others
|
|
(82,814)
|
|
|
(25,417)
|
|
Borrowings on short
term loan - related parties
|
|
223,974
|
|
|
32,576
|
|
Payments on short
term loans - related parties
|
|
(56,394)
|
|
|
(19,233)
|
|
Deposits due to sales
representatives
|
|
(2,119)
|
|
|
(2,736)
|
|
Deposit due to sales
representatives - related parties
|
|
358
|
|
|
(326)
|
|
Borrowings on
long-term loans - related party
|
|
56,201
|
|
|
-
|
|
Payments on long-term
loans - related party
|
|
(815)
|
|
|
-
|
|
Principal payment on
capital lease obligation
|
|
(1,077)
|
|
|
-
|
|
Net cash provided by
(used in) financing activities
|
|
83,835
|
|
|
56,015
|
EFFECTS OF EXCHANGE
RATE CHANGE IN CASH
|
|
(16)
|
|
|
(381)
|
INCREASE IN
CASH
|
|
24,609
|
|
|
12,782
|
CASH, beginning of
period
|
|
11,641
|
|
|
31,967
|
CASH, end of
period
|
$
|
36,250
|
|
$
|
44,749
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/general-steel-reports-second-quarter-2015-financial-results-300131200.html
SOURCE General Steel Holdings, Inc.