It Tech Packaging, Inc 8-K, filed May 19, 2020
It Tech Packaging, Inc. (ITP)
About this 8-K
It Tech Packaging, Inc filed this 8-K on May 19, 2020, reporting on events of May 14, 2020.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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 14, 2020
IT TECH PACKAGING, INC.
(Exact name of registrant as specified in its charter)
Nevada
(State or other jurisdiction of incorporation)
| 001-34577 | 20-4158835 | |
| (Commission File Number) | (IRS Employer Identification No.) |
Science Park, Juli Road Xushui District, Baoding City Hebei Province, People’s Republic of China |
072550 | |
| (Address of principal executive offices) | (Zip Code) |
(86) 312-8698215
(Registrant’s telephone number, including area code)
(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 (see General Instruction A.2. below):
☐ 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))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| Common Stock | ITP | NYSE MKT LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition. |
On May 14, 2020, IT Tech Packaging, Inc. (the “Company”) issued a press release announcing its financial results and operational results for the first quarter ended March 31, 2020. A copy of the press release making the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
The following exhibits are filed herewith:
| Exhibit Number | Description | |
| 99.1 | Press Release dated May 14, 2020, announcing financial results and operational results of the Company for the first quarter ended March 31, 2020. |
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SIGNATURES
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 hereunto duly authorized.
| IT TECH PACKAGING, INC. | |||
| Date: May 19, 2020 | By: | /s/ Zhenyong Liu | |
| Name: | Zhenyong Liu | ||
| Title: | Chief Executive Officer | ||
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Exhibit 99.1
IT Tech Packaging, Inc. Announces First Quarter 2020 Unaudited Financial Results
Company to Host Earnings Conference Call on Friday, May 15, 2020, at 8:00 am ET
BAODING, China, May 14, 2020 /PRNewswire/ -- IT Tech Packaging, Inc. (NYSE MKT: ITP) (“IT Tech Packaging” or the “Company”), a leading manufacturer and distributor of diversified paper products in North China, announced today its unaudited financial results for the three months ended March 31, 2020.
| For the Three Months Ended March 31, | ||||||
| ($ millions) | 2020 | 2019 | % Change | |||
| Revenues | 8.74 | 17.45 | -49.9% | |||
| Regular Corrugating Medium Paper (“CMP”)* | 5.72 | 12.22 | -53.2% | |||
| Light-Weight CMP** | 2.02 | 3.37 | -40.1% | |||
| Offset Printing Paper | 0.00 | 0.00 | NM | |||
| Tissue Paper Products | 1.01 | 1.86 | -45.9% | |||
| Gross profit | -0.17 | -0.19 | -11.8% | |||
| Gross profit (loss) margin | -1.9% | -1.1% | -0.8 pp**** | |||
| Regular Corrugating Medium Paper (“CMP”)* | 4.9% | -0.4% | 5.3 pp**** | |||
| Light-Weight CMP** | 12.9% | -5.4% | 18.2 pp**** | |||
| Offset Printing Paper | NM | NM | NM | |||
| Tissue Paper Products*** | -70.7% | 1.8% | -72.5 pp**** | |||
| Operating income (loss) | -2.87 | -3.17 | -9.7% | |||
| Net income (loss) | -2.44 | -2.72 | -10.5% | |||
| EBITDA | 1.06 | 0.81 | 30.9% | |||
| Basic and Diluted earnings (loss) per share | -0.11 | -0.12 | -10.6% | |||
| * | Products from PM6 |
| ** | Products from PM1 |
| *** | Products from PM8 and PM9 |
| **** | pp represents percentage points |
Revenue for the first quarter of 2020 decreased by 49.9% to $8.74 million, primarily due to the decrease in sales volume of corrugating medium paper (“CMP”) and tissue paper products, as well as the decrease in Average Selling Prices (“ASPs”) of CMP and tissue paper products. Gross loss for the first quarter of 2020 was $0.17 million, compared to $0.19 million for the same period of last year. Gross loss margin was 1.9% for the first quarter of 2020, compared to 1.1% for the same period of last year. Net loss was $2.44 million, or loss per share of $0.11, compared to net loss of $2.72 million, or loss per share of $0.12, for the same period of last year. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) was $1.06 million for the first quarter of 2020, compared to $0.81 million for the same period of last year.
Mr. Zhenyong Liu, Chairman and Chief Executive Officer of the Company, commented, “As we had expected, our financial results of the first quarter 2020 recorded some decreases versus the same period of last year mainly as our production was suspended from mid-January 2020 to early March 2020 due to the COVID-19 pandemic outbreak as well as the seasonal effect of the Chinese New Year. While our facilities have been ramping-up since March, our production and sales in the first quarter were all impacted, resulting sales decline and profit loss. We returned to production in mid-March 2020 and resumed full capacity of tissue paper production and CMP production in early April 2020 and March 2020, respectively. Despite of the unprecedented challenges created by the COVID-19 pandemic, our tissue paper products are in growing demand due to the need to control the spread of COVID-19 and our production lines have been running at full production capacity since April to fulfill orders secured. In response to the market demands for tissue paper as daily necessities, we are scheduling a new tissue paper production line PM10 which we expect to be launched shortly this year. In addition to adding a tissue paper production line, we launched a non-medical face masks production line to meet the huge demands for personal protective gear needed for the public and workers in different industries. As such, we are confident the underlying demand for our products remain strong and we expect to improve the overall performance in the coming quarters.”
First Quarter 2020 Financial Results
Revenue
For the first quarter of 2020, total revenue decreased by $8.71 million, or 49.9%, to $8.74 million from $17.45 million for the same period of last year. The decrease in total revenue was mainly due to the decrease in both sales volume and average selling prices of CMP and tissue paper products. The following table summarizes revenue, volume and ASPs by products for the first quarter of 2020 and 2019, respectively:
| For the Three Months Ended March 31, | ||||||||||||||||||||||||
| 2020 | 2019 | |||||||||||||||||||||||
| Revenue ($’000) | Volume (tonne) | ASP ($/tonne) | Revenue ($’000) | Volume (tonne) | ASP ($/tonne) | |||||||||||||||||||
| Regular CMP | 5,722 | 13,788 | 415 | 12,225 | 26,293 | 465 | ||||||||||||||||||
| Light-Weight CMP | 2,016 | 4,889 | 412 | 3,365 | 7,425 | 453 | ||||||||||||||||||
| Offset Printing Paper | - | - | NM | - | - | NM | ||||||||||||||||||
| Tissue Paper Products | 1,006 | 1,185 | 849 | 1,860 | 1,603 | 1,160 | ||||||||||||||||||
| Total | 8,744 | 19,862 | 440 | 17,450 | 35,321 | 494 | ||||||||||||||||||
Revenue from CMP, including both regular CMP and Light-Weight CMP, decreased by $7.85 million, or 50.4%, to $7.74 million and accounted for 88.5% of total revenue for the first quarter of 2020, compared to $15.59 million, or 89.3% of total revenue, for the same period of last year. The Company sold 18,677 tonnes of CMP at an ASP of $414/tonne in the first quarter of 2020, compared to 33,718 tonnes at an ASP of $462/tonne in the same period of last year.
Of the total CMP sales, revenue from regular CMP decreased by $6.50 million, or 53.2%, to $5.72 million, resulting from sales of 13,788 tonnes at an ASP of $415/tonne, during the first quarter of 2020, compared to revenue of $12.22 million, resulting from sales of 26,293 tonnes at an ASP of $465/tonne, for the same period of last year. Revenue from light-weight CMP decreased by $1.35 million, or 40.1%, to $2.02 million, resulting from sales of 4,889 tonnes at an ASP of $412/tonne for the first quarter of 2020, compared to revenue of $3.37 million, resulting from sales of 7,425 tonnes at an ASP of $453/tonne for the same period of last year.
2
Production of offset printing paper was suspended from mid-January 2020 to early March 2020 due to the COVID-19 pandemic outbreak and Chinese New Year. As a result, revenue from offset printing paper was $nil for the first quarter of 2020. The Company didn’t sell any offset printing paper in the first quarter of 2019 neither.
Revenue from tissue paper products decreased by $0.85 million, or 45.9%, to $1.01 million, resulting from sales of 1,185 tonnes at an ASP of $849/tonne, for the first quarter of 2020, compared to revenue of $1.86 million, resulting from sales of 1,603 tonnes at an ASP of $1,160/tonne for the same period of last year.
Gross Loss and Gross Loss Margin
Total cost of sales decreased by $8.73 million, or 49.5%, to $8.91 million for the first quarter of 2020, from $17.64 million for the same period of last year. The decrease in total cost of sales was mainly due to the decrease in sales volume of CMP and tissue paper products, as well as decrease in material costs. Costs of sales per tonne for regular CMP, light-weight CMP, offset printing paper and tissue paper products were $395, $359, $nil and $1,450, respectively, for the first quarter of 2020, compared to $467, $477, $nil and $1,140 per tonne, respectively, for the same period of last year. Average unit purchase costs of recycled paper board, major raw material used for our production, was approximately $198/tonne for the first quarter of 2020, compared to $242/tonne for the same period of last year.
Total gross loss was $0.17 million for the first quarter of 2020, compare to the gross loss of $0.19 million for the same period of last year as a result of factors described above. Overall gross loss margin was 1.9% for the first quarter of 2020, compared to 1.1% for the same period of last year. Gross profit (loss) margins for regular CMP, light-weight CMP, offset printing paper and tissue paper products were 4.9%, 12.9%, nil% and -70.7%, respectively, for the first quarter of 2020, compared to -0.4%, -5.4%, nil% and 1.8%, respectively, for the same period of last year.
Selling, General and Administrative Expenses
Selling, general and administrative expenses (“SG&A”) decreased by $0.28 million, or 9.5%, to $2.70 million for the first quarter of 2020 from $2.98 million for the same period of last year. The decrease in SG&A was mainly due to a decrease in commission to sales staff and a depreciation of RMB against USD. As a percentage of total revenue, SG&A was 30.8% for the first quarter of 2020, compared to 17.1% for the same period of last year.
Loss from Operations
Loss from operations was $2.87 million for the first quarter of 2020, compared to the loss from operations of $3.17 million for the same period of last year. Operating loss margin was 32.8% for the first quarter of 2020, compared to 18.2% for the same period of last year.
Net Loss and Net Loss per Share
Net loss was $2.44 million for the first quarter of 2020, compare to the net loss of $2.72 million for the same period of last year.
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Net loss per basic and diluted share improved by $0.01, or 10.6%, to $0.11 for the first quarter of 2020 from $0.12 for the same period of last year.
EBITDA
EBITDA was $1.06 million for the first quarter of 2020, compared to $0.81 million for the same period of the prior year.
Note 1: Non-GAAP Financial Measures
In addition to our U.S. GAAP results, this press release includes a discussion of EBITDA, a non-GAAP financial measure as defined by the Securities and Exchange Commission (“SEC”). The Company defines EBITDA as net income before interest, income taxes, depreciation and amortization. EBITDA is a key measure used by management to evaluate our results and make strategic decisions. Management believes this measure is useful to investors because it is an indicator of operational performance. Because not all companies use identical calculations, the Company’s presentation of EBITDA may not be comparable to similarly titled measures of other companies, and should not be viewed as an alternative to measures of financial performance or changes in cash flows calculated in accordance with the U.S. GAAP.
| For the Three Months Ended March 31, | ||||||||
| ($ millions) | 2020 | 2019 | ||||||
| Net income (loss) | -2.44 | -2.72 | ||||||
| Add: Income tax | -0.53 | -0.65 | ||||||
| Net interest expense | 0.24 | 0.26 | ||||||
| Depreciation and amortization | 3.77 | 3.93 | ||||||
| EBITDA | 1.06 | 0.81 | ||||||
Cash, Liquidity and Financial Position
As of March 31, 2020, the Company had cash and bank balances, short-term debt (including bank loans, current portion of long-term loans from credit union and related party loans), and long-term debt (including related party loans) of $11.71 million, $8.27 million and $7.25 million, respectively, compared to $5.84 million, $8.31 million and $7.37 million, respectively, at the end of 2019.
Net accounts receivable was $1.80 million as of March 31, 2020, compared to $3.12 million as of December 31, 2019. Net inventory was $1.95 million as of March 31, 2020, compared to $1.61 million at the end of 2019. As of March 31, 2020, the Company had current assets of $21.63 million and current liabilities of $14.03 million, resulting in a working capital of $7.60 million. This was compared to current assets of $24.04 million and current liabilities of $16.84 million, resulting in a working capital of $7.21 million at the end of 2019.
Net cash provided by operating activities was $6.86 million for the first quarter of 2020, compared to net cash used in operating activities of $3.05 million for the same period of last year. Net cash used in investing activities was $0.76 million for the first quarter of 2020, compared to $1.42 million for the same period of last year. Net cash from financing activities was $nil for the first quarter of 2020, compared to net cash used in financing activities of $5.37 million for the same period of last year.
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Recent development
On April 29, 2020, the Company announced that it launched its production line of non-medical single-use face masks as planned, following completion of raw materials preparation, trial run of the equipment and the sample products inspection. The Company has two sets of mask production equipment that produces approximately 100,000 single-use face masks per day.
On April 30, 2020, the Company announced it has entered into a securities purchase agreement, dated April 29, 2020, and amended on May 4, 2020, with certain institutional investors to purchase approximately $2.6 million worth of its common stock in a registered direct offering and warrants to purchase shares of common stock in a concurrent private placement. Pursuant to the terms of the securities purchase agreement, the Company sold 4.4 million shares of the Company’s common stock and issued unregistered warrants to purchase up to an additional 4.4 million shares of the Company’s common stock in a concurrent private placement transaction. The purchase price for one share of common stock and a corresponding warrant is $0.58.
On May 5, 2020, the Company announced it planed commercial launch of a new tissue paper production line PM10 and the Company has signed an agreement to purchase paper machine with paper machine supplier. The company expected the new tissue paper production line to be launched after the completion of trail run.
Earnings Conference Call
The Company’s management will host a conference call to discuss its first quarter 2020 financial results at 8:00 am US Eastern Time on Friday, May 15, 2020. To attend the conference call, please use the information below.
Date/Time: 8:00 am US Eastern Time (5:00 am US Pacific Time/8:00 pm Beijing Time) on Friday, May 15, 2020
Conference Title: IT Tech Packaging, Inc. First Quarter 2020 Earnings Conference Call
Conference ID: 6335349
To attend the conference call, please register in advance of the conference using the link: http://apac.directeventreg.com/registration/event/6335349 to complete the online registration at least 15 minutes prior to the start of the call. Upon registering, the conference access information including participant dial-in numbers, a Direct Event passcode and a registrant ID will be provided to you via an email.
This conference call will be broadcast live on the Internet and can be accessed by all interested parties at https://edge.media-server.com/mmc/p/r5rx5984 . Please access the link at least 15 minutes prior to the start of the call to register, download, and install any necessary audio software.
A playback will be available through 11:00 am ET on May 15, 2020 to 9:59 am ET on May 23, 2020. To listen, please dial+1-855-452-5696 if calling from the United States, or +61-281-990-299 if calling internationally. Use the conference ID 6335349 to access the replay.
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About IT Tech Packaging, Inc.
Founded in 1996, IT Tech Packaging, Inc. is a leading manufacturer and distributor of diversified paper products in North China. Using recycled paper as its primary raw material (with the exception of its tissue paper products), ITP produces and distributes three categories of paper products: corrugating medium paper, offset printing paper and tissue paper products. With production based in Baoding and Xingtai in North China’s Hebei Province, ITP is located strategically close to the Beijing and Tianjin region, home to a growing base of industrial and manufacturing activities and one of the largest markets for paper products consumption in the country. ITP has been listed on the NYSE MKT since December 2009. For more information, please visit: http://www.itpackaging.cn/.
Safe Harbor Statements
This press release may contain forward-looking statements. These forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks outlined in the Company’s public filings with the Securities and Exchange Commission, including the Company’s latest annual report on Form 10-K. All information provided in this press release speaks as of the date hereof. Except as otherwise required by law, the Company undertakes no obligation to update or revise its forward-looking statements.
For more information, please contact:
At the Company Email:
ir@itpackaging.cn
Tel: +86 0312 8698215
Investor Relations:
Janice Wang
EverGreen Consulting Inc.
Email: ir@changqingconsulting.com
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IT TECH PACKAGING, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2020 AND DECEMBER 31, 2019
(Unaudited)
| March 31, | December 31, | |||||||
| 2020 | 2019 | |||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and bank balances | $ | 11,712,152 | $ | 5,837,745 | ||||
| Restricted cash | - | - | ||||||
| Accounts receivable (net of allowance for doubtful accounts of $36,645 and $59,922 as of March 31, 2020 and December 2019, respectively) | 1,795,671 | 3,119,311 | ||||||
| Inventories | 1,951,376 | 1,607,463 | ||||||
| Prepayments and other current assets | 6,054,096 | 11,613,241 | ||||||
| Due from related parties | 120,744 | 1,863,479 | ||||||
| Total current assets | 21,634,039 | 24,041,239 | ||||||
| Prepayment on property, plant and equipment | 1,411,413 | 1,433,445 | ||||||
| Property, plant, and equipment, net | 145,805,724 | 151,616,852 | ||||||
| Value-added tax recoverable | 2,547,211 | 2,621,841 | ||||||
| Deferred tax asset non-current | 10,857,911 | 10,485,053 | ||||||
| Total Assets | $ | 182,256,298 | $ | 190,198,430 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities | ||||||||
| Short-term bank loans | $ | 6,069,075 | $ | 6,163,814 | ||||
| Current portion of long-term loans from credit union | 1,580,782 | 1,605,459 | ||||||
| Accounts payable | 205,769 | 250,486 | ||||||
| Advance from customers | 151,016 | 98,311 | ||||||
| Notes payable | - | - | ||||||
| Due to related parties | 617,433 | 539,985 | ||||||
| Accrued payroll and employee benefits | 225,993 | 291,924 | ||||||
| Other payables and accrued liabilities | 5,182,548 | 6,503,010 | ||||||
| Income taxes payable | - | 1,382,471 | ||||||
| Total current liabilities | 14,032,616 | 16,835,460 | ||||||
| Loans from credit union | 7,254,661 | 7,367,908 | ||||||
| Loans from a related party | - | - | ||||||
| Other long-term payable | - | - | ||||||
| Total liabilities (including amounts of the consolidated VIE without recourse to the Company of $16,342,512 and $19,460,257 as of March 31, 2020 and December 31, 2019, respectively) | 21,287,277 | 24,203,368 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders’ Equity | ||||||||
| Common stock, 500,000,000 shares authorized, $0.001 par value per share, 22,054,816 shares issued | 22,685 | 22,685 | ||||||
| Additional paid-in capital | 51,154,544 | 51,154,544 | ||||||
| Statutory earnings reserve | 6,080,574 | 6,080,574 | ||||||
| Accumulated other comprehensive loss | (8,647,291 | ) | (6,057,537 | ) | ||||
| Retained earnings | 112,358,509 | 114,794,796 | ||||||
| Total stockholders’ equity | 160,969,021 | 165,995,062 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 182,256,298 | $ | 190,198,430 | ||||
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IT TECH PACKAGING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2020 AND 2019
(Unaudited)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2020 | 2019 | |||||||
| Revenues | $ | 8,743,851 | $ | 17,450,292 | ||||
| Cost of sales | (8,913,570 | ) | (17,642,758 | ) | ||||
| Gross Loss | (169,719 | ) | (192,466 | ) | ||||
| Selling, general and administrative expenses | (2,696,963 | ) | (2,981,473 | ) | ||||
| Loss from Operations | (2,866,682 | ) | (3,173,939 | ) | ||||
| Other Income (Expense): | ||||||||
| Interest income | 5,790 | 58,818 | ||||||
| Subsidy income | 142,998 | - | ||||||
| Interest expense | (244,718 | ) | (255,269 | ) | ||||
| Loss before Income Taxes | (2,962,612 | ) | (3,370,390 | ) | ||||
| Provision for Income Taxes | 526,325 | 647,795 | ||||||
| Net Loss | (2,436,287 | ) | (2,722,595 | ) | ||||
| Other Comprehensive (Loss) Income | ||||||||
| Foreign currency translation adjustment | (2,589,754 | ) | 3,293,680 | |||||
| Total Comprehensive (Loss) Income | $ | (5,026,041 | ) | $ | 571,085 | |||
| Losses Per Share: | ||||||||
| Basic and Diluted Losses per Share | $ | (0.11 | ) | $ | (0.12 | ) | ||
| Outstanding – Basic and Diluted | 22,054,816 | 22,022,316 | ||||||
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IT TECH PACKAGING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2020 AND 2019
(Unaudited)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2020 | 2019 | |||||||
| Cash Flows from Operating Activities: | ||||||||
| Net income | $ | (2,436,287 | ) | $ | (2,722,595 | ) | ||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 3,774,674 | 3,930,060 | ||||||
| Allowance for bad debts | (22,650 | ) | (10,704 | ) | ||||
| Deferred tax | (541,042 | ) | (647,795 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 1,315,128 | 535,220 | ||||||
| Prepayments and other current assets | 5,486,216 | 187,711 | ||||||
| Inventories | (373,470 | ) | (1,181,371 | ) | ||||
| Accounts payable | (41,405 | ) | 1,009,834 | |||||
| Advance from customers | 54,930 | - | ||||||
| Notes payable | - | (3,726,504 | ) | |||||
| Related parties | 1,814,228 | 37,265 | ||||||
| Accrued payroll and employee benefits | (62,252 | ) | 87,823 | |||||
| Other payables and accrued liabilities | (728,633 | ) | (326,741 | ) | ||||
| Income taxes payable | (1,379,130 | ) | (224,355 | ) | ||||
| Net Cash Provided by (Used in) Operating Activities | 6,860,307 | (3,052,152 | ) | |||||
| Cash Flows from Investing Activities: | ||||||||
| Purchases of property, plant and equipment | (756,514 | ) | (1,415,761 | ) | ||||
| Net Cash Used in Investing Activities | (756,514 | ) | (1,415,761 | ) | ||||
| Cash Flows from Financing Activities: | ||||||||
| Proceeds from short term bank loans | - | 4,024,625 | ||||||
| Repayment of bank loans | - | (9,390,791 | ) | |||||
| Net Cash Used in Financing Activities | - | (5,366,166 | ) | |||||
| Effect of Exchange Rate Changes on Cash and Cash Equivalents | (229,386 | ) | 341,713 | |||||
| Net Increase (Decrease) in Cash and Cash Equivalents | 5,874,407 | (9,492,366 | ) | |||||
| Cash, Cash Equivalents and Restricted Cash - Beginning of Period | 5,837,745 | 12,117,425 | ||||||
| Cash, Cash Equivalents and Restricted Cash - End of Period | $ | 11,712,152 | $ | 2,625,059 | ||||
| Supplemental Disclosure of Cash Flow Information: | ||||||||
| Cash paid for interest, net of capitalized interest cost | $ | 116,019 | $ | 230,953 | ||||
| Cash paid for income taxes | $ | 1,379,130 | $ | 224,355 | ||||
| Cash and bank balances | 11,712,152 | 2,625,059 | ||||||
| Restricted cash | - | - | ||||||
| Total cash, cash equivalents and restricted cash shown in the statement of cash flows | 11,712,152 | 2,625,059 | ||||||
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