– Product Transformation Initiative Driving Profit Growth
– Nine-month Net Income of $6.3 Million, Diluted EPS of $0.08
JINHUA, China, Nov. 08, 2023 (GLOBE NEWSWIRE) — Kandi Technologies Group, Inc. (the “Company”, “we” or “Kandi”) (NASDAQ GS: KNDI), today announced its financial results for the third quarter of 2023.
Third Quarter and Nine Months 2023 Financial Highlights
Third quarter total revenues of $36.4 million increased by 8.2% year-over-year.
- Nine-month revenues of $95.2 million increased by 19.9% year-over-year.
- Net income for the nine months was $6.3 million, or $0.08 income per fully diluted share, compared to a net loss of $2.4 million, or $0.03 loss per fully diluted share for the same period of 2022.
- Cash and cash equivalents, restricted cash, and certificate of deposit totaled $244.5 million as of September 30, 2023.
Dr. Xueqin Dong, CEO of Kandi, commented, “We are pleased to see that, following a turnaround from losses to profits in the first half of 2023, the company was profitable in the quarter. Comparing to the first nine months of last year, key metrics grew significantly, with increased sales, higher net income, and a notable improvement in gross profit. This achievement highlights our ongoing commitment to delivering exceptional value to our customers. Our strategic adjustments in recent years paved the way for this positive performance in the all-electric off-road vehicle market. Recently, we showcased our new electric off-road vehicle products at the Mid-States Rendezvous and received positive feedback, which has further solidified our market presence across various channels.”
Dr. Dong continued, “Looking ahead to 2024, our primary focus is to increase our market share in the North American market. Kandi’s dedication to innovation and quality places us in a strong position to capitalize on the growing demand for fully electric off-road vehicles in the region, presenting significant market potential and opportunities for sustained growth. We are confident that our sales and production in 2024 will grow substantially compared to those of this year.”
Financial Results for the Third Quarter and the First Nine Months of 2023
Net Revenues and Gross Profit (in USD millions)
| Q3 | 2023 | 2022 | Y-o-Y% |
| Net Revenues | $36.4 | $33.7 | +8.2% |
| Gross Profit | $10.9 | $6.4 | +71.4% |
| Gross Margin% | 30.0% | 18.9% | – |
| Nine Months Ending Sep 30 | 2023 | 2022 | Y-o-Y% | |
| Net Revenues | $95.2 | $79.4 | +19.9% | |
| Gross Profit | $32.7 | $11.5 | +184.8% | |
| Gross Margin% | 34.3% | 14.5% | ||
During the first nine months of 2023, net revenues grew 19.9%, reaching $95.2 million, fueled by rapid market acceptance of our fully-electric off-road vehicles and related components. Furthermore, gross margin improved compared to the previous year, due to the better profitability of fully-electric off-road vehicles, particularly crossover golf carts.
Operating Income/Loss (in USD millions)
| Q3 | 2023 | 2022 | Y-o-Y% | |
| Operating Expenses | ($14.5) | ($8.6) | +69.4% | |
| Loss from Operations | ($3.6) | ($2.2) | +63.7% | |
| Operating Margin% | (9.8%) | (6.5%) | – | |
| Nine Months Ending Sep 30 | 2023 | 2022 | Y-o-Y% | |
| Operating Expenses | ($38.7) | ($25.7) | +51.0% | |
| Loss from Operations | ($6.1) | ($14.2) | -57.3% | |
| Operating Margin% | (6.4%) | (17.9%) | ||
During the nine months, Operating expenses rose to $38.7 million from $25.7 million in the same period of 2022, reflecting investment in the off-road EV opportunity in the U.S. Growing expenditures in sales, marketing, and general administration are directly linked to expanding exports to the U.S. market.
Net Income/Loss (in USD millions)
| Q3 | 2023 | 2022 | Y-o-Y% | |
| Net Income | $1.3 | $1.1 | +19.0% | |
| Net Income per Share, Basic and Diluted | $0.02 | $0.01 | – | |
| Nine Months Ending Sep 30 | 2023 | 2022 | Y-o-Y% | |||
| Net Income (loss) | $6.3 | ($2.4) | NM | |||
| Net Income (loss) per Share, Basic and Diluted | $0.08 | ($0.03) | ||||
Net income of the first nine months reached $6.3 million, turning from a net loss in the same period in 2022, mainly due to higher gross profit from increased sales of high-margin off-road vehicles resulting from the product transformation strategy.
Third Quarter 2023 Conference Call Details
The Company has scheduled a conference call and live webcast to discuss its financial results at 8:00 A.M. Eastern Time (9:00 P.M. Beijing Time) on Wednesday, November 8, 2023. Management will deliver prepared remarks to be followed by a question and answer session.
The dial-in details for the conference call are as follows:
The live audio webcast of the call can also be accessed by visiting Kandi’s Investor Relations page on the Company’s website at http://www.kandivehicle.com. An archive of the webcast will be available on the Company’s website following the live call.
About Kandi Technologies Group, Inc.
Kandi Technologies Group, Inc. (KNDI), headquartered in Jinhua Economic Development Zone, Zhejiang Province, is engaged in the research, development, manufacturing, and sales of various vehicular products. Kandi conducts its primary business operations through its wholly-owned subsidiary, Zhejiang Kandi Technologies Group Co., Ltd. (“Zhejiang Kandi Technologies”), formerly, Zhejiang Kandi Vehicles Co., Ltd. and its subsidiaries including Zhejiang Kandi Smart Battery Swap Technology Co., Ltd, and SC Autosports, LLC (d/b/a Kandi America), the wholly-owned subsidiary of Kandi in the United States, and its wholly-owned subsidiary, Kandi America Investment, LLC. Zhejiang Kandi Technologies has established itself as one of China’s leading manufacturers of pure electric vehicle parts and off-road vehicles.
Safe Harbor Statement
This press release contains certain statements that may include “forward-looking statements.” All statements other than statements of historical fact included herein are “forward-looking statements.” These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on the SEC’s website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the applicable securities laws, the Company does not assume a duty to update these forward-looking statements.
Follow us on Twitter: @ Kandi_Group
Contacts:
Kandi Technologies Group, Inc.
Ms. Kewa Luo
+1 (212) 551-3610
IR@kandigroup.com
The Blueshirt Group
Mr. Gary Dvorchak, CFA
gary@blueshirtgroup.com
– Tables Below –
| KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
||||||||
| September 30, 2023 |
December 31, 2022 |
|||||||
| (Unaudited) | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 72,900,121 | $ | 84,063,717 | ||||
| Restricted cash | 61,957,395 | 66,976,554 | ||||||
| Certificate of deposit | 109,676,181 | 81,191,191 | ||||||
| Accounts receivable (net of allowance for doubtful accounts of $2,795,798 and $2,285,386 as of September 30, 2023 and December 31, 2022, respectively) | 16,350,519 | 38,150,876 | ||||||
| Inventories | 57,860,989 | 40,475,366 | ||||||
| Notes receivable | 41,129 | 434,461 | ||||||
| Other receivables | 11,068,946 | 11,912,615 | ||||||
| Prepayments and prepaid expense | 1,689,174 | 2,970,261 | ||||||
| Advances to suppliers | 1,540,949 | 3,147,932 | ||||||
| TOTAL CURRENT ASSETS | 333,085,403 | 329,322,973 | ||||||
| NON-CURRENT ASSETS | ||||||||
| Property, plant and equipment, net | 98,754,578 | 97,168,753 | ||||||
| Intangible assets, net | 5,561,878 | 7,994,112 | ||||||
| Land use rights, net | 2,690,181 | 2,909,950 | ||||||
| Construction in progress | 36,652 | 199,837 | ||||||
| Deferred tax assets | 1,427,290 | 1,432,527 | ||||||
| Long-term investment | 137,095 | 144,984 | ||||||
| Goodwill | 31,193,706 | 33,178,229 | ||||||
| Other long-term assets | 9,756,037 | 10,630,911 | ||||||
| TOTAL NON-CURRENT ASSETS | 149,557,417 | 153,659,303 | ||||||
| TOTAL ASSETS | $ | 482,642,820 | $ | 482,982,276 | ||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable | $ | 34,475,667 | $ | 35,321,262 | ||||
| Other payables and accrued expenses | 8,364,215 | 14,131,414 | ||||||
| Short-term loans | 9,065,350 | 5,569,154 | ||||||
| Notes payable | 22,129,999 | 19,123,476 | ||||||
| Income tax payable | 688,633 | 1,270,617 | ||||||
| Other current liabilities | 5,273,881 | 6,089,925 | ||||||
| TOTAL CURRENT LIABILITIES | 79,997,745 | 81,505,848 | ||||||
| NON-CURRENT LIABILITIES | ||||||||
| Long-term loans | 8,225,000 | – | ||||||
| Deferred taxes liability | 1,172,820 | 1,378,372 | ||||||
| Contingent consideration liability | – | 1,803,000 | ||||||
| Other long-term liabilities | 410,182 | 602,085 | ||||||
| TOTAL NON-CURRENT LIABILITIES | 9,808,002 | 3,783,457 | ||||||
| TOTAL LIABILITIES | 89,805,747 | 85,289,305 | ||||||
| STOCKHOLDER’S EQUITY | ||||||||
| Common stock, $0.001 par value; 100,000,000 shares authorized; 84,997,369 and 77,668,730 shares issued and 84,997,369 and 74,180,171 outstanding at September 30,2023 and December 31,2022, respectively | 84,997 | 77,669 | ||||||
| Less: Treasury stock (null shares and 3,488,559 shares with average price of $2.81 at September 30, 2023 and December 31, 2022 ) | – | (9,807,820 | ) | |||||
| Additional paid-in capital | 450,242,032 | 451,373,645 | ||||||
| Accumulated deficit (the restricted portion is $4,422,033 and $4,422,033 at September 30, 2023 and December 31, 2022, respectively) | (11,771,861 | ) | (16,339,765 | ) | ||||
| Accumulated other comprehensive loss | (48,131,857 | ) | (28,333,239 | ) | ||||
| TOTAL KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS’ EQUITY | 390,423,311 | 396,970,490 | ||||||
| Non-controlling interests | 2,413,762 | 722,481 | ||||||
| TOTAL STOCKHOLDERS’ EQUITY | 392,837,073 | 397,692,971 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 482,642,820 | $ | 482,982,276 | ||||
| See accompanying notes to unaudited condensed consolidated financial statements | ||||||||
| KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) |
||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2023 |
September 30, 2022 |
September 30, 2023 |
September 30, 2022 |
|||||||||||||
| REVENUES FROM UNRELATED PARTIES, NET | $ | 36,426,201 | $ | 33,673,201 | $ | 95,241,648 | $ | 79,405,788 | ||||||||
| REVENUES FROM THE FORMER AFFILIATE COMPANY AND RELATED PARTIES, NET | – | – | – | – | ||||||||||||
| REVENUES, NET | 36,426,201 | 33,673,201 | 95,241,648 | 79,405,788 | ||||||||||||
| COST OF GOODS SOLD | (25,507,180 | ) | (27,304,038 | ) | (62,558,825 | ) | (67,930,595 | ) | ||||||||
| GROSS PROFIT | 10,919,021 | 6,369,163 | 32,682,823 | 11,475,193 | ||||||||||||
| OPERATING EXPENSE: | ||||||||||||||||
| Research and development | (917,893 | ) | (1,433,649 | ) | (2,671,435 | ) | (3,828,078 | ) | ||||||||
| Selling and marketing | (4,152,246 | ) | (1,440,995 | ) | (8,760,490 | ) | (3,807,222 | ) | ||||||||
| General and administrative | (9,457,877 | ) | (5,686,233 | ) | (25,855,648 | ) | (18,016,843 | ) | ||||||||
| Impairment of goodwill | 7,539 | – | (500,064 | ) | – | |||||||||||
| Impairment of long-lived assets | 14,299 | – | (948,438 | ) | – | |||||||||||
| TOTAL OPERATING EXPENSE | (14,506,178 | ) | (8,560,877 | ) | (38,736,075 | ) | (25,652,143 | ) | ||||||||
| LOSS FROM OPERATIONS | (3,587,157 | ) | (2,191,714 | ) | (6,053,252 | ) | (14,176,950 | ) | ||||||||
| OTHER INCOME (EXPENSE): | ||||||||||||||||
| Interest income | 1,927,494 | 2,138,130 | 5,982,400 | 4,739,208 | ||||||||||||
| Interest expense | (354,999 | ) | (177,417 | ) | (722,608 | ) | (463,994 | ) | ||||||||
| Change in fair value of contingent consideration | – | 434,995 | 1,803,000 | 2,733,995 | ||||||||||||
| Government grants | 667,944 | 829,539 | 1,478,296 | 1,536,856 | ||||||||||||
| Other income, net | 2,611,239 | 536,726 | 3,685,019 | 2,954,036 | ||||||||||||
| TOTAL OTHER INCOME , NET | 4,851,678 | 3,761,973 | 12,226,107 | 11,500,101 | ||||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | 1,264,521 | 1,570,259 | 6,172,855 | (2,676,849 | ) | |||||||||||
| INCOME TAX BENEFIT (EXPENSE) | 12,007 | (497,211 | ) | 86,330 | 255,232 | |||||||||||
| NET INCOME (LOSS) | 1,276,528 | 1,073,048 | 6,259,185 | (2,421,617 | ) | |||||||||||
| LESS: NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | 407,626 | 694,029 | 1,691,281 | 752,691 | ||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS | 868,902 | 379,019 | 4,567,904 | (3,174,308 | ) | |||||||||||
| OTHER COMPREHENSIVE LOSS | ||||||||||||||||
| Foreign currency translation adjustment | (2,102,246 | ) | (20,932,870 | ) | (19,798,618 | ) | (39,889,289 | ) | ||||||||
| COMPREHENSIVE LOSS | $ | (825,718 | ) | $ | (19,859,822 | ) | $ | (13,539,433 | ) | $ | (42,310,906 | ) | ||||
| WEIGHTED AVERAGE SHARES OUTSTANDING BASIC | 79,174,343 | 75,741,399 | 75,931,247 | 75,962,899 | ||||||||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED | 81,234,002 | 75,885,630 | 77,645,533 | 76,061,190 | ||||||||||||
| NET INCOME (LOSS) PER SHARE, BASIC | $ | 0.02 | $ | 0.01 | $ | 0.08 | $ | (0.03 | ) | |||||||
| NET INCOME (LOSS) PER SHARE, DILUTED | $ | 0.02 | $ | 0.01 | $ | 0.08 | $ | (0.03 | ) | |||||||
| See accompanying notes to unaudited condensed consolidated financial statements | ||||||||||||||||
| KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) |
||||||||||||||||||||||||||||||||
| Number of Outstanding Shares |
Common Stock |
Treasury Stock |
Additional Paid-in Capital |
Accumulated Earning (Deficit) |
Accumulated Other Comprehensive Income |
Non-controlling interests |
Total | |||||||||||||||||||||||||
| Balance, December 31, 2021 | 77,385,130 | $ | 77,385 | $ | (2,392,203 | ) | $ | 449,479,461 | $ | (4,216,102 | ) | $ | 251,786 | $ | – | $ | 443,200,327 | |||||||||||||||
| Stock issuance and award | 25,000 | 25 | – | 92,925 | – | – | – | 92,950 | ||||||||||||||||||||||||
| Stock buyback | – | – | (1,570,324 | ) | (13,236 | ) | – | – | – | (1,583,560 | ) | |||||||||||||||||||||
| Capital contribution from shareholder | – | – | – | – | – | – | 1,198,398 | 1,198,398 | ||||||||||||||||||||||||
| Net loss | – | – | – | – | (1,616,056 | ) | – | (2,957 | ) | (1,619,013 | ) | |||||||||||||||||||||
| Foreign currency translation | – | – | – | – | – | 1,009,811 | – | 1,009,811 | ||||||||||||||||||||||||
| Balance, March 31, 2022 | 77,410,130 | $ | 77,410 | $ | (3,962,527 | ) | $ | 449,559,150 | $ | (5,832,158 | ) | $ | 1,261,597 | $ | 1,195,441 | $ | 442,298,913 | |||||||||||||||
| Stock issuance and award | 238,600 | 239 | – | 584,331 | – | – | – | 584,570 | ||||||||||||||||||||||||
| Stock buyback | – | – | (1,974,490 | ) | (22,578 | ) | – | – | – | (1,997,068 | ) | |||||||||||||||||||||
| Net income (loss) | – | – | – | – | (1,937,271 | ) | – | 61,619 | (1,875,652 | ) | ||||||||||||||||||||||
| Foreign currency translation | – | – | – | – | – | (19,966,230 | ) | (63,460 | ) | (20,029,690 | ) | |||||||||||||||||||||
| Balance, June 30, 2022 | 77,648,730 | $ | 77,649 | $ | (5,937,017 | ) | $ | 450,120,903 | $ | (7,769,429 | ) | $ | (18,704,633 | ) | 1,193,600 | $ | 418,981,073 | |||||||||||||||
| Stock issuance and award | 10,000 | 10 | – | 22,290 | – | – | – | 22,300 | ||||||||||||||||||||||||
| Stock based compensation | 250,673 | 250,673 | ||||||||||||||||||||||||||||||
| Stock buyback | – | – | (911,714 | ) | (12,872 | ) | – | – | – | (924,586 | ) | |||||||||||||||||||||
| Capital contribution from shareholder | – | – | – | – | – | – | 337,557 | 337,557 | ||||||||||||||||||||||||
| Net income (loss) | – | – | – | – | 379,019 | – | 694,029 | 1,073,048 | ||||||||||||||||||||||||
| Foreign currency translation | – | – | – | – | – | (20,932,870 | ) | (66,006 | ) | (20,998,876 | ) | |||||||||||||||||||||
| Balance, September 30, 2022 | 77,658,730 | $ | 77,659 | $ | (6,848,731 | ) | $ | 450,380,994 | $ | (7,390,410 | ) | $ | (39,637,503 | ) | 2,159,180 | $ | 398,741,189 | |||||||||||||||
| Number of Outstanding Shares |
Common Stock |
Treasury Stock |
Additional Paid-in Capital |
Accumulated Earning (Deficit) |
Accumulated Other Comprehensive Income |
Non-controlling interests |
Total | |||||||||||||||||||||||||
| Balance, December 31, 2022 | 77,668,730 | $ | 77,669 | $ | (9,807,820 | ) | $ | 451,373,645 | $ | (16,339,765 | ) | $ | (28,333,239 | ) | $ | 722,481 | $ | 397,692,971 | ||||||||||||||
| Stock issuance and award | 10,000 | 10 | – | 22,290 | – | – | – | 22,300 | ||||||||||||||||||||||||
| Stock based compensation | – | – | – | 980,893 | – | – | – | 980,893 | ||||||||||||||||||||||||
| Net income (loss) | – | – | – | – | (29,110 | ) | – | 624,567 | 595,457 | |||||||||||||||||||||||
| Foreign currency translation | – | – | – | – | – | 1,582,687 | – | 1,582,687 | ||||||||||||||||||||||||
| Balance, March 31, 2023 | 77,678,730 | $ | 77,679 | $ | (9,807,820 | ) | $ | 452,376,828 | $ | (16,368,875 | ) | $ | (26,750,552 | ) | $ | 1,347,048 | $ | 400,874,308 | ||||||||||||||
| Stock issuance and award | 820,000 | 820 | – | 2,706,780 | – | – | – | 2,707,600 | ||||||||||||||||||||||||
| Stock based compensation | – | – | – | 980,893 | – | – | – | 980,893 | ||||||||||||||||||||||||
| Cancellation of the Treasury Stock | (3,488,559 | ) | (3,489 | ) | 9,807,820 | (9,804,331 | ) | – | – | – | – | |||||||||||||||||||||
| Net income | – | – | – | – | 3,728,112 | – | 659,088 | 4,387,200 | ||||||||||||||||||||||||
| Foreign currency translation | – | – | – | – | – | (19,279,059 | ) | – | (19,279,059 | ) | ||||||||||||||||||||||
| Balance, June 30, 2023 | 75,010,171 | $ | 75,010 | $ | – | $ | 446,260,170 | $ | (12,640,763 | ) | $ | (46,029,611 | ) | $ | 2,006,136 | $ | 389,670,942 | |||||||||||||||
| Stock issuance and award | 9,987,198 | 9,987 | – | 2,974,599 | – | – | – | 2,984,586 | ||||||||||||||||||||||||
| Stock based compensation | – | – | – | 1,007,263 | – | – | – | 1,007,263 | ||||||||||||||||||||||||
| Cancellation of the Treasury Stock | – | – | – | – | ||||||||||||||||||||||||||||
| Net income | – | – | – | – | 868,902 | – | 407,626 | 1,276,528 | ||||||||||||||||||||||||
| Foreign currency translation | – | – | – | – | – | (2,102,246 | ) | – | (2,102,246 | ) | ||||||||||||||||||||||
| Balance, September 30, 2023 | 84,997,369 | $ | 84,997 | $ | – | $ | 450,242,032 | $ | (11,771,861 | ) | $ | (48,131,857 | ) | $ | 2,413,762 | $ | 392,837,073 | |||||||||||||||
| See accompanying notes to unaudited condensed consolidated financial statements. | ||||||||||||||||||||||||||||||||
| KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||||||
| Nine Months Ended | ||||||||
| September 30, 2023 | September 30, 2022 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income (loss) | $ | 6,259,185 | $ | (2,421,617 | ) | |||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities | ||||||||
| Depreciation and amortization | 8,952,016 | 9,512,970 | ||||||
| Impairments | 1,448,502 | – | ||||||
| Provision of allowance for doubtful accounts | 658,707 | 4,220 | ||||||
| Deferred taxes | (200,316 | ) | (116,206 | ) | ||||
| Change in fair value of contingent consideration | (1,803,000 | ) | (2,733,995 | ) | ||||
| Stock award and stock based compensation expense | 8,716,981 | 913,288 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 11,846,717 | (20,932,970 | ) | |||||
| Notes receivable | 744,574 | 1,927,621 | ||||||
| Inventories | (18,498,142 | ) | (13,183,546 | ) | ||||
| Other receivables and other assets | 157,318 | (10,264,805 | ) | |||||
| Advances to supplier and prepayments and prepaid expenses | 2,710,917 | 12,405,615 | ||||||
| Increase (Decrease) In: | ||||||||
| Accounts payable | 34,021,872 | 46,796,615 | ||||||
| Other payables and accrued liabilities | (4,480,660 | ) | 4,951,022 | |||||
| Notes payable | (23,509,907 | ) | (13,574,849 | ) | ||||
| Income tax payable | (367,848 | ) | (60,313 | ) | ||||
| Net cash provided by operating activities | $ | 26,656,916 | $ | 13,223,050 | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchases of property, plant and equipment, net | (13,103,838 | ) | (1,674,445 | ) | ||||
| Payment for construction in progress | (75,651 | ) | (278,777 | ) | ||||
| (Loan to) Repayment from third party | – | (4,545,386 | ) | |||||
| Certificate of deposit | (34,143,774 | ) | (22,726,928 | ) | ||||
| Net cash used in investing activities | $ | (47,323,263 | ) | $ | (29,225,536 | ) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from short-term loans | 12,153,286 | 20,642,224 | ||||||
| Repayments of short-term loans | (8,398,565 | ) | (15,987,912 | ) | ||||
| Proceeds from long-term loans | 8,225,000 | – | ||||||
| Contribution from non-controlling shareholder | – | 772,716 | ||||||
| Purchase of treasury stock | – | (4,505,213 | ) | |||||
| Net cash provided by financing activities | $ | 11,979,721 | $ | 921,815 | ||||
| NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | $ | (8,686,626 | ) | $ | (15,080,671 | ) | ||
| Effect of exchange rate changes | $ | (7,496,129 | ) | $ | (13,710,508 | ) | ||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | $ | 151,040,271 | $ | 168,676,007 | ||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | $ | 134,857,516 | $ | 139,884,828 | ||||
| -CASH AND CASH EQUIVALENTS AT END OF PERIOD | 72,900,121 | 99,029,118 | ||||||
| -RESTRICTED CASH AT END OF PERIOD | 61,957,395 | 40,855,710 | ||||||
| SUPPLEMENTARY CASH FLOW INFORMATION | ||||||||
| Income taxes paid | $ | 149,585 | $ | 274,037 | ||||
| Interest paid | $ | 384,012 | $ | 225,479 | ||||
| SUPPLEMENTAL NON-CASH DISCLOSURES: | ||||||||
| Contribution from non-controlling shareholder by inventories, fixed assets and intangible assets | $ | – | $ | 393,986 | ||||
| See accompanying notes to unaudited condensed consolidated financial statements | ||||||||
