Attached files
| file | filename |
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| 8-K - CURRENT REPORT - SHINECO, INC. | f8k051718_shinecoinc.htm |
Exhibit 99.1
Shineco, Inc. Reports Third Quarter of 2018 Financial Results
BEIJING, May 17, 2018 /PRNewswire/ -- Shineco, Inc. ("Shineco" or the "Company"; NASDAQ: TYHT), a producer and distributor of Chinese herbal medicines, organic agricultural produce, specialized textiles, and other health and well-being focused plant-based products in China, announced today its financial results for the third quarter ended March 31, 2018.
Mr. Yuying Zhang, Chairman and Chief Executive Officer of Shineco, Inc., commented, "We are delighted that our increased capital spending in 2017 has translated into increased profitability in 2018. Our business in Xinjiang factory has turned a profit, and our sales in Shandong have remained stable. This is reflected in our financial results. Shineco's gross profit had increased by 102% to $5.26 million, our operating margin had increased by 8.4 percentage points to 29.4%, and our gross margin had increased by 6.7 percentage points to 39.4% compared to the same period of last year."
Mr. Zhang concluded, "The market's response to our Luobuma product line has been immensely positive, as reflected by an impressive sales increase of 388.6% to $5.48 million from $1.12 million from the same period of last year. We are pleased with the recognition from our clients, as we continue to innovate and expand in the future."
Third Quarter of 2018 Financial Highlights
| For the Three Months Ended March 31 | ||||||||||||
| ($ millions, except per share data) | 2018 | 2017 | % Change | |||||||||
| Revenue | 13.34 | 7.94 | 68.0 | % | ||||||||
| Luobuma products | 5.48 | 1.12 | 388.6 | % | ||||||||
| Chinese medicinal herbal products | 3.30 | 3.05 | 8.3 | % | ||||||||
| Other agricultural products | 4.56 | 3.77 | 20.9 | % | ||||||||
| Gross profit | 5.26 | 2.60 | 102.2 | % | ||||||||
| Gross margin | 39.4 | % | 32.8 | % | 6.7 | % | ||||||
| Operating income | 3.92 | 1.67 | 135.0 | % | ||||||||
| Operating margin | 29.4 | % | 21.0 | % | 8.4 | % | ||||||
| Net income attributable to Shineco | 4.55 | 1.92 | 136.8 | % | ||||||||
| EPS | 0.21 | 0.09 | 135.2 | % | ||||||||
| · | Revenues increased by 68.0% to $13.34 million for the three months ended March 31, 2018 from $7.94 million for the same period last year. |
| · | Gross profit increased by 102.2% to $5.26 million for the three months ended March 31, 2018 from $2.60 million for the same period last year. Gross margin increased by 6.7 percentage points to 39.4% from 32.8% for the same period of last year. |
| · | Net income attributable to Shineco increased by 136.8% to $4.55 million, or $0.21 per basic and diluted share, for the three months ended March 31, 2018 from $1.92 million, or $0.09 per basic and diluted share, for the same period last year. The increases in net income and earnings per share were primarily due to an increase in gross profit, partially offset by an increase in general and administrative expenses. |
Third Quarter of 2018 Financial Results
Revenues
Revenues for the three months ended March 31, 2018 increased by $5.40 million, or 68.0%, to $13.34 million from $7.94 million for the same period of last year, mainly due to increased sales of all products.
| For the Three Months Ended March 31 | ||||||||||||||||||||||||
| 2018 | 2017 | |||||||||||||||||||||||
| ($ millions) | Revenues | COGS | Gross Margin | Revenues | COGS | Gross Margin | ||||||||||||||||||
| Luobuma products | 5.48 | 2.36 | 56.9 | % | 1.12 | 0.57 | 49.2 | % | ||||||||||||||||
| Chinese medicinal herbal products | 3.30 | 2.56 | 22.0 | % | 3.05 | 2.28 | 24.7 | % | ||||||||||||||||
| Other agricultural products | 4.56 | 3.15 | 31.0 | % | 3.77 | 2.47 | 34.4 | % | ||||||||||||||||
| Business and sales related taxes | - | 0.01 | - | - | 0.02 | - | ||||||||||||||||||
| Total | 13.34 | 8.08 | 39.4 | % | 7.94 | 5.34 | 32.8 | % | ||||||||||||||||
Revenues from Luobuma products increased by $4.36 million, or 388.6%, to $5.48 million for the three months ended March 31, 2018 from $1.12 million for the same period of last year, mainly due to establishment of new subsidiary, Xinjiang Taihe, which generated revenue of $5,210,768.
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Revenues from Chinese medicinal herbal products increased by $0.25 million, or 8.3%, to $3.30 million for the three months ended March 31, 2018 from $3.05 million for the same period of last year. The increase was primarily due to more fulfilled sales orders from customers for the three months ended March 31, 2018 than the same period in 2017.
Revenues from other agricultural products increased by $0.79 million, or 20.9%, to $4.56 million for the three months ended March 31, 2018 from $3.77 million for the same period of last year. The sales of other agricultural products were mainly derived from sales of yew trees and our storage services. The increase was mainly due to the increase in sales volume of yew trees since the public realized the air purification function of the yew trees.
Gross profit and Gross Margin
Total cost of goods sold increased by $2.74 million, or 51.3%, to $8.08 million for the three months ended March 31, 2018 from $5.34 million for the same period of last year. Gross profit increased by $2.66 million, or 102.2%, to $5.26 million for the three months ended March 31, 2018 from $2.60 million for the same period of last year. Overall gross margin increased by 6.7 percentage points to 39.4% for the three months ended March 31, 2018, compared to 32.8% for the same period of last year.
Gross margins for Luobuma products, Chinese medicinal herbal products, and other agricultural products were 56.9%, 22.0%, and 31.0%, respectively, for the three months ended March 31, 2018. This compared to gross margins for Luobuma products, Chinese medicinal herbal products, and other agricultural products of 49.2%, 24.7%, and 34.4%, respectively, for the same period of last year.
Operating income
Selling expenses increased by $0.08 million, or 27.4%, to $0.39 million for the three months ended March 31, 2018 from $0.30 million for the same period of last year, primarily due to the acquisition of a new subsidiary, Tianjin Tajite, in October 2017. The increase in selling and distribution expenses was also a result of increased promotion expenses as the Company enhanced its online sales promotions, partially offset by decreased rent expense of warehouse and salary expenses due to more effective cost control during the three months ended March 31, 2018 compared to the same period of 2017. General and administrative expenses increased by $0.33 million, or 51.5%, to $0.96 million for the three months ended March 31, 2018 from $0.63 million for the same period of last year. The increase in general and administrative expenses was primarily due to the incorporation and acquisition of new subsidiaries, Tiankunrunze in last quarter of fiscal year 2017, and Xinjiang Taihe and Tianjin Tajite in fiscal year 2018. As a result, total operating expenses increased by $0.41 million, or 43.6%, to $1.34 million for the three months ended March 31, 2018 from $0.94 million for the same period of last year.
Operating income increased by $2.25 million, or 135.0%, to $3.92 million for the three months ended March 31, 2018 from $1.67 million for the same period of last year. Operating margin was 29.4% for the three months ended March 31, 2018, compared to 21.0% for the same period of last year.
Net income
Net income increased by $2.55 million, or 130.4%, to $4.51 million for the three months ended March 31, 2018 from $1.96 million for the same period of last year. After the deduction of non-controlling interests, net income attributable to common shareholders for the three months ended March 31, 2018 was $4.55 million, or $0.21 per basic and diluted share. This compared to net income attributable to common shareholders of $1.92 million, $0.09 per basic and diluted share, for the same period of last year.
Nine Months Ended March 31, 2018 Financial Results
| For the Nine Months Ended March 31 | ||||||||||||
| ($ millions, except per share data) | 2018 | 2017 | % Change | |||||||||
| Revenue | 35.28 | 25.53 | 38.2 | % | ||||||||
| Luobuma products | 10.41 | 2.77 | 276.0 | % | ||||||||
| Chinese medicinal herbal products | 10.23 | 9.73 | 5.2 | % | ||||||||
| Other agricultural products | 14.64 | 13.04 | 12.3 | % | ||||||||
| Gross profit | 12.17 | 8.47 | 43.6 | % | ||||||||
| Gross margin | 34.5 | % | 33.2 | % | 1.3 | % | ||||||
| Operating income | 8.11 | 5.25 | 54.4 | % | ||||||||
| Operating margin | 23.0 | % | 20.6 | % | 2.4 | % | ||||||
| Net income attributable to Shineco | 9.41 | 6.12 | 53.7 | % | ||||||||
| EPS | 0.45 | 0.30 | 49.3 | % | ||||||||
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Revenues
Revenues for the nine months ended March 31, 2018 increased by $9.75 million, or 38.2%, to $35.28 million from $25.53 million for the same period of last year, mainly due to increased sales of all products.
| For the Nine Months Ended March 31 | ||||||||||||||||||||||||
| 2018 | 2017 | |||||||||||||||||||||||
| ($ millions) | Revenues | COGS | Gross Margin | Revenues | COGS | Gross Margin | ||||||||||||||||||
| Luobuma products | 10.41 | 4.81 | 53.7 | % | 2.77 | 1.37 | 50.0 | % | ||||||||||||||||
| Chinese medicinal herbal products | 10.23 | 7.89 | 22.5 | % | 9.73 | 7.20 | 25.6 | % | ||||||||||||||||
| Other agricultural products | 14.64 | 10.36 | 29.2 | % | 13.04 | 8.44 | 35.3 | % | ||||||||||||||||
| Business and sales related taxes | - | 0.06 | - | - | 0.05 | - | ||||||||||||||||||
| Total | 35.28 | 23.11 | 34.5 | % | 25.53 | 17.06 | 33.2 | % | ||||||||||||||||
Revenues from Luobuma products increased by $7.64 million, or 276.0%, to $10.41 million for the nine months ended March 31, 2018 from $2.77 million for the same period of last year, mainly due to revenue generated by a new subsidiary, Xinjiang Taihe, of US$ 8,145,196. Moreover, the increase of revenue from this segment was due to increased sales volume of our health awareness related products. The Company also enhanced online sales promotions during the nine months ended March 31, 2018, which contributed to more sales revenue overall.
Revenues from Chinese medicinal herbal products increased by $0.51 million, or 5.2%, to $10.23 million for the nine months ended March 31, 2018 from $9.73 million for the same period of last year. The increase was primarily due to more fulfilled sales orders from customers for the nine months ended March 31, 2018 than the same period in 2017.
Revenues from other agricultural products increased by $1.60 million, or 12.3%, to $14.64 million for the nine months ended March 31, 2018 from $13.04 million for the same period of last year. The increase was mainly attributable to the increase in sales volume of yew trees since the public realized the air purification function of the yew trees.
Gross profit and Gross Margin
Total cost of goods sold increased by $6.06 million, or 35.5%, to $23.11 million for the nine months ended March 31, 2018 from $17.06 million for the same period of last year. Gross profit increased by $3.70 million, or 43.6%, to $12.17 million for the nine months ended March 31, 2018 from $8.47 million for the same period of last year. Overall gross margin increased by 1.3 percentage points to 34.5% for the nine months ended March 31, 2018, compared to 33.2% for the same period of last year.
Gross margins for Luobuma products, Chinese medicinal herbal products, and other agricultural products were 53.7%, 22.5%, and 29.2%, respectively, for the nine months ended March 31, 2018. This compared to gross margins for Luobuma products, Chinese medicinal herbal products, and other agricultural products of 50.0%, 25.6%, and 35.3%, respectively, for the same period of last year.
Operating income
Selling expenses increased by $0.05 million, or 3.9%, to $1.23 million for the nine months ended March 31, 2018 from $1.19 million for the same period of last year, primarily due to the acquisition of a new subsidiary, Tianjin Tajite, in October 2017. The increase in selling and distribution expenses was also a result of increased promotion expenses as the Company enhanced its online sales promotions, partially offset by decreased rent expense of warehouse and salary expenses due to more effective cost control during the nine months ended March 31, 2018 compared to the same period of 2017. General and administrative expenses increased by $0.79 million, or 39.0%, to $2.82 million for the nine months ended March 31, 2018 from $2.03 million for the same period of last year. The increase in general and administrative expenses was primarily attributable to the incorporation and acquisition of new subsidiaries, Tiankunrunze in second quarter of fiscal year 2017, and Xinjiang Taihe and Tianjin Tajite in fiscal year 2018. The increase in general and administrative expenses was also a result of increased professional service fees, such as attorney's fees, consulting fees and auditing fees. As a result, total operating expenses increased by $0.84 million, or 26.0%, to $4.05 million for the nine months ended March 31, 2018 from $3.22 million for the same period of last year.
Operating income increased by $2.86 million, or 54.4%, to $8.11 million for the nine months ended March 31, 2018 from $5.25 million for the same period of last year. Operating margin was 23.0% for the nine months ended March 31, 2018, compared to 20.6% for the same period of last year.
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Net income
Net income increased by $3.12 million, or 50.0%, to $9.35 million for the nine months ended March 31, 2018 from $6.23 million for the same period of last year. After the deduction of non-controlling interests, net income attributable to common shareholders for the nine months ended March 31, 2018 was $9.41 million, or $0.45 per basic and diluted share. This compared to net income attributable to common shareholders of $6.12 million, $0.30 per basic and diluted share, for the same period of last year.
Financial Condition
As of March 31, 2018, the Company had cash and cash equivalents of $28.43 million, compared to $23.15 million as of June 30, 2017. Net cash used in operating activities was $5.34 million for the nine months ended March 31, 2018, compared to net cash used in operating activities of $1.38 million for the same period of last year. Net cash used in investing activities was $0.90 million for the nine months ended March 31, 2018, compared to $1.69 million for the same period of last year. Net cash used in financing activities was $0.45 million for the nine months ended March 31, 2018, compared to net cash provided by financing activities of $5.60 million for the same period of last year.
About Shineco, Inc.
Incorporated in August 1997 and headquartered in Beijing, China, Shineco, Inc. ("Shineco" or the "Company") is a Delaware holding company that uses its subsidiaries' and variable interest entities' vertically- and horizontally-integrated production, distribution and sales channels to provide health and well-being focused plant-based products in China. Utilizing modern engineering technologies and biotechnologies, Shineco produces, among other products, Chinese herbal medicines, organic agricultural produce and specialized textiles. For more information about the Company, please visit www.shinecobiotech.com.
Forward-Looking Statements
This press release contains information about Shineco's view of its future expectations, plans and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of products and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. Shineco encourages you to review other factors that may affect its future results in Shineco's registration statement and in its other filings with the Securities and Exchange Commission.
For more information, please contact:
Tina Xiao
Ascent Investor Relations LLC
Phone: +1-917-609-0333
Email: tina.xiao@ascent-ir.com
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SHINECO, INC. CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| March 31, | June 30, | |||||||
| 2018 | 2017 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash | $ | 28,432,209 | $ | 23,154,551 | ||||
| Accounts receivable, net | 24,864,469 | 14,480,004 | ||||||
| Due from related parties | 409,193 | 448,833 | ||||||
| Inventories | 2,765,143 | 2,346,273 | ||||||
| Advances to suppliers, net | 3,582,001 | 2,396,123 | ||||||
| Deferred issuance cost | 434,000 | - | ||||||
| Other current assets | 818,934 | 1,900,143 | ||||||
| TOTAL CURRENT ASSETS | 61,305,949 | 44,725,927 | ||||||
| Property and equipment, net | 12,463,088 | 10,320,396 | ||||||
| Land use right, net of accumulated amortization | 1,426,571 | 1,346,631 | ||||||
| Investments | 6,703,975 | 5,695,080 | ||||||
| Deposit for business acquisition | 128,967 | 2,065,686 | ||||||
| Distribution rights | 1,175,033 | - | ||||||
| Long-term deposit and other noncurrent assets | 121,494 | 112,883 | ||||||
| Prepaid leases | 3,706,730 | 3,784,533 | ||||||
| Deferred tax assets | - | 233,834 | ||||||
| Goodwill | 2,230,683 | - | ||||||
| TOTAL ASSETS | $ | 89,262,490 | $ | 68,284,970 | ||||
| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Short-term loans | $ | 2,481,156 | $ | 2,663,628 | ||||
| Accounts payable | 3,242,373 | 158,068 | ||||||
| Advances from customers | 6,811 | 5,439 | ||||||
| Due to related parties | 206,885 | 257,880 | ||||||
| Other payables and accrued expenses | 2,181,904 | 337,107 | ||||||
| Taxes payable | 2,385,329 | 1,608,926 | ||||||
| TOTAL CURRENT LIABILITIES | 10,504,458 | 5,031,048 | ||||||
| Deferred tax liability | 4,229 | - | ||||||
| TOTAL LIABILITIES | 10,508,687 | 5,031,048 | ||||||
| Commitments and contingencies | - | - | ||||||
| EQUITY: | ||||||||
| Common stock; par value $0.001, 100,000,000 shares authorized; 21,234,072 and 21,034,072 shares issued and outstanding at March 31, 2018 and June 30, 2017 | 21,234 | 21,034 | ||||||
| Additional paid-in capital | 23,171,102 | 22,737,302 | ||||||
| Statutory reserve | 4,074,570 | 3,484,449 | ||||||
| Retained earnings | 47,880,159 | 39,064,743 | ||||||
| Accumulated other comprehensive loss | 2,489,677 | (3,140,982 | ) | |||||
| Total Stockholders' equity of Shineco, Inc. | 77,202,742 | 62,166,546 | ||||||
| Non-controlling interest | 1,117,061 | 1,087,376 | ||||||
| TOTAL EQUITY | 78,319,803 | 63,253,922 | ||||||
| TOTAL LIABILITIES AND EQUITY | $ | 89,262,490 | $ | 68,284,970 | ||||
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SHINECO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)
| For the Nine Months Ended March 31, | For the Three Months Ended March 31, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| REVENUE | $ | 35,282,977 | $ | 25,531,313 | $ | 13,341,281 | $ | 7,941,583 | ||||||||
| COST OF REVENUE | ||||||||||||||||
| Cost of product and services | 23,059,329 | 17,007,048 | 8,065,117 | 5,319,742 | ||||||||||||
| Business and sales related tax | 55,624 | 53,228 | 14,287 | 19,264 | ||||||||||||
| Total cost of revenue | 23,114,953 | 17,060,276 | 8,079,404 | 5,339,006 | ||||||||||||
| GROSS PROFIT | 12,168,024 | 8,471,037 | 5,261,877 | 2,602,577 | ||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| General and administrative expenses | 2,820,689 | 2,029,981 | 956,765 | 631,640 | ||||||||||||
| Selling expenses | 1,232,713 | 1,186,536 | 387,494 | 304,182 | ||||||||||||
| Total operating expenses | 4,053,402 | 3,216,517 | 1,344,259 | 935,822 | ||||||||||||
| INCOME FROM OPERATIONS | 8,114,622 | 5,254,520 | 3,917,618 | 1,666,755 | ||||||||||||
| OTHER INCOME | ||||||||||||||||
| Income from equity method investments | 703,453 | 699,380 | 352,801 | 297,612 | ||||||||||||
| Purchase rebate income | 1,191,011 | 846,297 | 411,076 | 253,669 | ||||||||||||
| Other income | 220,270 | 253,196 | 80,295 | 93,888 | ||||||||||||
| Interest income (expense), net | (41,684 | ) | 15,124 | (10,360 | ) | (25,414 | ) | |||||||||
| Total other income | 2,073,050 | 1,813,997 | 833,812 | 619,755 | ||||||||||||
| INCOME BEFORE PROVISION FOR INCOME TAXES | 10,187,672 | 7,068,517 | 4,751,430 | 2,286,510 | ||||||||||||
| PROVISION FOR INCOME TAXES | 834,647 | 833,661 | 239,612 | 328,274 | ||||||||||||
| NET INCOME | 9,353,025 | 6,234,856 | 4,511,818 | 1,958,236 | ||||||||||||
| Less: net income (loss) attributable to non-controlling interest | (52,512 | ) | 116,006 | (40,084 | ) | 35,829 | ||||||||||
| NET INCOME ATTRIBUTABLE TO SHINECO, INC. | $ | 9,405,537 | $ | 6,118,850 | $ | 4,551,902 | $ | 1,922,407 | ||||||||
| COMPREHENSIVE INCOME | ||||||||||||||||
| Net income | $ | 9,353,025 | $ | 6,234,856 | $ | 4,511,818 | $ | 1,958,236 | ||||||||
| Other comprehensive income (loss): foreign currency translation gain (loss) | 5,714,317 | (1,985,492 | ) | 2,683,536 | 528,683 | |||||||||||
| Total comprehensive income | 15,067,342 | 4,249,364 | 7,195,354 | 2,486,919 | ||||||||||||
| Less: comprehensive income attributable to non-controlling interest | 31,146 | 80,161 | (1,249 | ) | 43,720 | |||||||||||
| COMPREHENSIVE INCOME ATTRIBUTABLE TO SHINECO, INC. | $ | 15,036,196 | $ | 4,169,203 | $ | 7,196,603 | $ | 2,443,199 | ||||||||
| Weighted average number of shares basic and diluted | 21,080,787 | 20,477,598 | 21,176,294 | 21,034,072 | ||||||||||||
| Basic and diluted earnings per common share | $ | 0.45 | $ | 0.30 | $ | 0.21 | $ | 0.09 | ||||||||
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SHINECO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| For the Nine Months Ended March 31, | ||||||||
| 2018 | 2017 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 9,353,025 | $ | 6,234,856 | ||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 489,835 | 445,037 | ||||||
| Loss from disposal of property and equipment | 5,520 | - | ||||||
| Bad debt expense | 47,497 | 147,770 | ||||||
| Increase in inventory reserve | 153,029 | 45,419 | ||||||
| Deferred tax (benefit) provision | (35,677 | ) | 9,790 | |||||
| Income from equity method investments | (703,452 | ) | (699,380 | ) | ||||
| Interest income from loans to related parties | - | (86,585 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (8,876,896 | ) | (7,744,632 | ) | ||||
| Advances to suppliers | (939,882 | ) | (929,907 | ) | ||||
| Inventories | (315,834 | ) | 2,613,094 | |||||
| Other receivables | 259,946 | (864,944 | ) | |||||
| Prepaid expense and other assets | 233,107 | (192,464 | ) | |||||
| Due from related parties | 125,501 | 361,287 | ||||||
| Prepaid leases | 361,665 | 351,480 | ||||||
| Accounts payable | 2,945,920 | 185,693 | ||||||
| Advances from customers | (81,157 | ) | 26,247 | |||||
| Other payables | 1,716,955 | (1,519,339 | ) | |||||
| Taxes payable | 604,558 | 232,390 | ||||||
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 5,343,660 | (1,384,188 | ) | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Acquisitions of property and equipment | (1,721,647 | ) | (41,016 | ) | ||||
| Proceeds from disposal of property and equipment | 603 | - | ||||||
| Payment for construction in progress | (5,843 | ) | - | |||||
| Repayments (advances to) of loans from third parties | 831,453 | (506,452 | ) | |||||
| Loan advances to related party | (53,443 | ) | - | |||||
| Repayments of loans from related parties | - | 567,246 | ||||||
| Income received from investments in unconsolidated entities | 152,694 | 551,933 | ||||||
| Deposit for business acquisition | (123,682 | ) | (2,060,548 | ) | ||||
| Deposit for potential investment | - | (200,000 | ) | |||||
| Cash of subsidiary acquired | 23,153 | - | ||||||
| NET CASH (USED IN) INVESTING ACTIVITIES | (896,712 | ) | (1,688,837 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from short-term loans | 2,443,100 | 2,680,184 | ||||||
| Repayment of short-term loans | (2,820,126 | ) | (2,406,426 | ) | ||||
| Stock issuance cost payable | - | 843,844 | ||||||
| Proceeds from initial public offering, net of offering costs | - | 4,550,705 | ||||||
| Repayments of advances from related parties | (68,465 | ) | (68,984 | ) | ||||
| NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (445,491 | ) | 5,599,323 | |||||
| EFFECT OF EXCHANGE RATE CHANGE ON CASH | 1,276,201 | (861,050 | ) | |||||
| NET INCREASE IN CASH | 5,277,658 | 1,665,248 | ||||||
| CASH - Beginning of the Period | 23,154,551 | 22,009,374 | ||||||
| CASH - End of the Period | $ | 28,432,209 | $ | 23,674,622 | ||||
| SUPPLEMENTAL CASH FLOW DISCLOSURES: | ||||||||
| Cash paid for income taxes | $ | 702,064 | $ | 579,566 | ||||
| Cash paid for interest | $ | 98,017 | $ | 109,208 | ||||
| SUPPLEMENTAL NON-CASH INVESTING ACTIVITY: | ||||||||
| Issued 200,000 shares of deferred issuance cost | $ | 434,000 | $ | - | ||||
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