BEIJING, June 18, 2013 /PRNewswire/ -- General Steel Holdings, Inc. ("General Steel" or the "Company") (NYSE: GSI), a leading non-state-owned steel producer in China, today announced financial results for the third quarter ended September 30, 2012, fourth quarter of 2012 and full-year ended December 31, 2012. In conjunction with this announcement, the Company has filed the corresponding Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 and Annual Report on Form 10-K for year ended 2012 ("2012 Annual Report") with the U.S. Securities & Exchange Commission (the "SEC"). Upon the filing of the 2012 Annual Report, the Company has regained compliance with the New York Stock Exchange's ("NYSE") continued listing standards relating to the filing of its 2012 Annual Report.
"We are pleased to have completed the filing of our 2012 Annual Report, and thereby regaining compliance with the NYSE's continued listing requirement that we file our Annual Report," said Henry Yu, Chairman and Chief Executive Officer of General Steel. "Again, I would like to thank our finance team for their diligent efforts in completing these filings and we look forward to soon updating the investment community on our business strategy and development efforts for 2013 and beyond."
"According to the China Iron and Steel Association, 2012 was the most difficult year in the last decade for China's steel industry. Due to the economic slowdown and an oversupply of inventory, steel prices declined sharply in 2012, and, as a result, more Chinese steel companies suffered net losses in 2012[1]. Given the challenging macro environment, we strategically focused on optimizing and upgrading our production capability and on strengthening our market competitiveness via our geographic advantages in Western China and through cooperation with the government and state-owned enterprises. Our efforts helped us achieve positive gross profits and narrow net losses for the year. Looking ahead, we remain focused on further strengthening our geographic advantages in Western China, while forging ahead with upgrading our production capability and improving operating efficiency."
[1] Source: Press release distributed by China Iron and Steel Association on February 1, 2013.
Full Year 2012 Financial Review
The decreased net loss in 2012 was primarily attributable to improved gross profit, a decrease in operating loss, offset by an increase of $70.5 million in other expenses as compared to the same period of 2012. The increase in other expenses are mainly due to increased finance expanse, which include an increase of $15.4 million in interest expense on capital lease, and $45.9 million in interest expense on bank borrowings, related parties borrowings, and discounted notes receivables.
Third Quarter 2012 Financial Review
Fourth Quarter 2012 Financial Review
Balance Sheet
As of December 31, 2012, the Company had cash and restricted cash of approximately $369.9 million, compared to $518.2 million as of December 31, 2011. The Company had an inventory balance of approximately $212.7 million as of December 31, 2012, compared to $297.7 million as of December 31, 2011. As of December 31, 2012, the Company had total liabilities of approximately $3.1 billion.
About General Steel Holdings, Inc.
General Steel Holdings, Inc., headquartered in Beijing, China, produces a variety of steel products including rebar, high-speed wire and spiral-weld pipe. The Company has operations in China's Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality with seven million metric tons of crude steel production capacity under 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 generalsteel@asiabridgegroup.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, and include: (a) those risks and uncertainties related to general economic conditions in China, including regulatory factors that may affect such economic conditions; (b) whether the Company is able to manage its planned growth efficiently and operate profitable operations, including whether its management will be able to identify, hire, train, retain, motivate and manage required personnel or that management will be able to successfully manage and exploit existing and potential market opportunities; (c) whether the Company is able to generate sufficient revenues or obtain financing to sustain and grow its operations; (d) whether the Company is able to successfully fulfill our primary requirements for cash; and (e) other risks, including those disclosed in the Company's Form 10-K, filed with the SEC. 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.
In China:
Jenny Wang
Tel: +86-10-5775-7691
Email: jenny.wang@gshi-steel.com
In the US:
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) | |||||||||||
December 31, | September 30, | December 31, | |||||||||
ASSETS | 2012 | 2012 | 2011 | ||||||||
CURRENT ASSETS: | |||||||||||
Cash | $ | 46,467 | $ | 83,602 | $ | 120,016 | |||||
Restricted cash | 323,420 | 436,302 | 398,216 | ||||||||
Notes receivable | 145,502 | 190,507 | 92,910 | ||||||||
Restricted notes receivable | 357,900 | 67,562 | 584,241 | ||||||||
Loans receivable - related parties | 69,319 | 67,159 | - | ||||||||
Accounts receivable, net | 6,695 | 7,656 | 12,601 | ||||||||
Accounts receivable - related parties | 14,966 | 28,346 | 20,593 | ||||||||
Other receivables, net | 8,407 | 20,129 | 22,411 | ||||||||
Other receivables - related parties | 68,382 | 65,250 | 87,679 | ||||||||
Inventories | 212,671 | 225,490 | 297,729 | ||||||||
Advances on inventory purchase | 79,715 | 82,060 | 63,585 | ||||||||
Advances on inventory purchase - related | 46,416 | 78,860 | 20,244 | ||||||||
Prepaid expense and other | 450 | 549 | 531 | ||||||||
Prepaid taxes | 24,116 | 20,212 | 24,189 | ||||||||
Short-term investment | 2,619 | 2,889 | 2,906 | ||||||||
TOTAL CURRENT ASSETS | 1,407,045 | 1,376,573 | 1,747,851 | ||||||||
PLANT AND EQUIPMENT, net | 1,167,836 | 1,197,472 | 1,257,236 | ||||||||
OTHER ASSETS: | |||||||||||
Advances on equipment purchase | 6,499 | 6,748 | 10,420 | ||||||||
Long-term other receivable | 43,008 | - | - | ||||||||
Investment in unconsolidated entities | 1,166 | 1,027 | 12,840 | ||||||||
Long-term loan receivable - related party | - | 2,000 | - | ||||||||
Long-term deferred expense | 1,062 | 517 | 631 | ||||||||
Intangible assets, net of accumulated amortization | 24,066 | 24,227 | 25,143 | ||||||||
TOTAL OTHER ASSETS | 75,801 | 34,519 | 49,034 | ||||||||
TOTAL ASSETS | $ | 2,650,682 | $ | 2,608,564 | $ | 3,054,121 | |||||
LIABILITIES AND DEFICIENCY | |||||||||||
CURRENT LIABILITIES: | |||||||||||
Short term notes payable | $ | 983,813 | $ | 867,769 | $ | 1,113,504 | |||||
Accounts payable | 352,052 | 338,812 | 413,345 | ||||||||
Accounts payable - related parties | 177,432 | 117,662 | 121,828 | ||||||||
Short term loans - bank | 147,124 | 139,752 | 253,954 | ||||||||
Short term loans - others | 147,323 | 212,720 | 246,657 | ||||||||
Short term loans - related parties | 79,557 | 82,069 | 15,710 | ||||||||
Current maturities of long-term loans - related party | 54,885 | 49,997 | - | ||||||||
Other payables and accrued liabilities | 54,589 | 74,640 | 49,548 | ||||||||
Other payable - related parties | 73,025 | 118,585 | 28,873 | ||||||||
Customer deposits | 125,890 | 81,761 | 90,556 | ||||||||
Customer deposits - related parties | 21,998 | 83,518 | 68,277 | ||||||||
Deposit due to sales representatives | 33,870 | 34,987 | 22,890 | ||||||||
Deposit due to sales representatives - related parties | 1,238 | 1,235 | 943 | ||||||||
Taxes payable | 16,674 | 6,498 | 11,374 | ||||||||
Deferred lease income, current | 2,120 | 2,115 | 2,099 | ||||||||
TOTAL CURRENT LIABILITIES | 2,271,590 | 2,212,120 | 2,439,558 | ||||||||
NON-CURRENT LIABILITIES: | |||||||||||
Long-term loans - related party | 38,088 | 42,741 | 92,035 | ||||||||
Long-term other payable - related party | 43,008 | - | - | ||||||||
Deferred lease income, noncurrent | 75,079 | 75,418 | 76,425 | ||||||||
Capital lease obligations | 330,099 | 324,171 | 306,350 | ||||||||
Profit sharing liability | 328,827 | 322,386 | 303,233 | ||||||||
TOTAL NON-CURRENT LIABILITIES | 815,101 | 764,716 | 778,043 | ||||||||
TOTAL LIABILITIES | 3,086,691 | 2,976,836 | 3,217,601 | ||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||
DEFICIENCY: | |||||||||||
Preferred stock, $0.001 par value, 50,000,000 shares authorized, 3,092,899 shares issued and outstanding as of December 31, 2012, September 30, 2012 and December 31, 2011 | 3 | 3 | 3 | ||||||||
Common stock, $0.001 par value, 200,000,000 shares authorized, 57,269,838, 57,100,688 and 56,601,988 shares issued, 54,797,532, 54,628,382 and 55,511,010 shares outstanding as of December 31, 2012, September 30, 2012 and December 31, 2011, respectively | 57 | 57 | 56 | ||||||||
Treasury stock, at cost, 2,472,306, 2,472,306 and 1,090,978 shares as of December 31, 2012, September 30, 2012 and December 31, 2011 | (4,199) | (4,199) | (2,795) | ||||||||
Paid-in-capital | 105,714 | 105,475 | 107,940 | ||||||||
Statutory reserves | 6,076 | 6,078 | 6,388 | ||||||||
Accumulated deficits | (381,782) | (331,842) | (229,083) | ||||||||
Accumulated other comprehensive income | 10,185 | 10,008 | 10,200 | ||||||||
TOTAL GENERAL STEEL HOLDINGS, INC. DEFICIENCY | (263,946) | (214,420) | (107,291) | ||||||||
NONCONTROLLING INTERESTS | (172,063) | (153,852) | (56,189) | ||||||||
TOTAL DEFICIENCY | (436,009) | (368,272) | (163,480) | ||||||||
TOTAL LIABILITIES AND DEFICIENCY | $ | 2,650,682 | $ | 2,608,564 | $ | 3,054,121 | |||||
GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||||||
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011 | ||||||||||||
(UNAUDITED) | ||||||||||||
(In thousands, except per share data) | ||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
SALES | $ | 518,542 | $ | 662,437 | $ | 1,441,325 | $ | 1,978,515 | ||||
SALES - RELATED PARTIES | 192,883 | 335,724 | 698,824 | 791,841 | ||||||||
TOTAL SALES | 711,425 | 998,161 | 2,140,149 | 2,770,356 | ||||||||
COST OF GOODS SOLD | 528,586 | 639,239 | 1,426,589 | 1,930,452 | ||||||||
COST OF GOODS SOLD - RELATED PARTIES | 196,435 | 324,872 | 693,482 | 777,465 | ||||||||
TOTAL COST OF GOODS SOLD | 725,021 | 964,111 | 2,120,071 | 2,707,917 | ||||||||
GROSS PROFIT (LOSS) | (13,596) | 34,050 | 20,078 | 62,439 | ||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 22,787 | 24,309 | 61,548 | 65,843 | ||||||||
INCOME (LOSS) FROM OPERATIONS | (36,383) | 9,741 | (41,470) | (3,404) | ||||||||
OTHER INCOME (EXPENSE) | ||||||||||||
Interest income | 4,337 | 1,201 | 13,039 | 3,080 | ||||||||
Finance/interest expense | (36,615) | (35,081) | (138,929) | (72,317) | ||||||||
Change in fair value of derivative liabilities | (55) | 135 | (48) | 5,526 | ||||||||
Gain on debt settlement | - | - | - | 3,430 | ||||||||
Gain on disposal of equipment | 293 | 689 | 177 | 679 | ||||||||
Income from equity investments | 44 | 790 | 80 | 4,301 | ||||||||
Foreign currency transaction gain (loss) | (581) | 1,271 | (1,169) | 2,920 | ||||||||
Lease income | 528 | 525 | 1,588 | 1,489 | ||||||||
Other non-operating income (expense), net | 2,314 | (1,047) | 3,316 | (1,197) | ||||||||
Other expense, net | (29,735) | (31,517) | (121,946) | (52,089) | ||||||||
LOSS BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST | (66,118) | (21,776) | (163,416) | (55,493) | ||||||||
PROVISION FOR INCOME TAXES | ||||||||||||
Current | 100 | 410 | 510 | 617 | ||||||||
Deferred | - | 144 | 169 | 15,384 | ||||||||
Provision for income taxes | 100 | 554 | 679 | 16,001 | ||||||||
NET LOSS | (66,218) | (22,330) | (164,095) | (71,494) | ||||||||
Less: Net loss attributable to noncontrolling interest | (24,620) | (8,500) | (61,336) | (25,832) | ||||||||
NET LOSS ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC. | $ | (41,598) | $ | (13,830) | $ | (102,759) | $ | (45,662) | ||||
NET LOSS | $ | (66,218) | $ | (22,330) | $ | (164,095) | $ | (71,494) | ||||
OTHER COMPREHENSIVE LOSS | ||||||||||||
Foreign currency translation adjustments | (698) | 999 | (577) | 2,399 | ||||||||
COMPREHENSIVE LOSS | (66,916) | (21,331) | (164,672) | (69,095) | ||||||||
Less: Comprehensive loss attributable to noncontrolling interest | (24,888) | (8,247) | (61,721) | (25,517) | ||||||||
COMPREHENSIVE LOSS ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC. | $ | (42,028) | $ | (13,084) | $ | (102,951) | $ | (43,578) | ||||
WEIGHTED AVERAGE NUMBER OF SHARES | ||||||||||||
Basic and Diluted | 54,466 | 55,166 | 54,946 | 54,547 | ||||||||
LOSS PER SHARE | ||||||||||||
Basic and Diluted | $ | (0.76) | $ | (0.25) | $ | (1.87) | $ | (0.84) | ||||
GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||||||||
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2012 AND 2011 | ||||||||||||||
(UNAUDITED) | ||||||||||||||
(In thousands, except per share data) | ||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | |||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||
SALES | $ | 525,066 | $ | 473,612 | $ | 1,966,391 | $ | 2,452,127 | ||||||
SALES - RELATED PARTIES | 198,378 | 319,928 | 897,202 | 1,111,769 | ||||||||||
TOTAL SALES | 723,444 | 793,540 | 2,863,593 | 3,563,896 | ||||||||||
COST OF GOODS SOLD | 504,204 | 588,731 | 1,930,793 | 2,519,183 | ||||||||||
COST OF GOODS SOLD - RELATED PARTIES | 207,199 | 355,462 | 900,681 | 1,132,927 | ||||||||||
TOTAL COST OF GOODS SOLD | 711,403 | 944,193 | 2,831,474 | 3,652,110 | ||||||||||
GROSS PROFIT (LOSS) | 12,041 | (150,653) | 32,119 | (88,214) | ||||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 43,529 | 25,984 | 105,077 | 91,827 | ||||||||||
LOSS FROM OPERATIONS | (31,488) | (176,637) | (72,958) | (180,041) | ||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||
Interest income | 2,020 | 4,812 | 15,059 | 7,892 | ||||||||||
Finance/interest expense | (37,313) | (42,632) | (176,242) | (114,949) | ||||||||||
Change in fair value of derivative liabilities | 57 | 37 | 9 | 5,563 | ||||||||||
Gain on debt settlement | - | - | - | 3,430 | ||||||||||
Gain (loss) on disposal of equipment | (2,311) | 14 | (2,134) | 693 | ||||||||||
Government grant | 2,253 | - | 2,253 | - | ||||||||||
Realized (loss) income from future contracts | - | 415 | - | 415 | ||||||||||
Income from equity investments | 137 | 1,001 | 217 | 5,302 | ||||||||||
Foreign currency transaction (loss) gain | (79) | 504 | (1,248) | 3,424 | ||||||||||
Lease income | 531 | 519 | 2,119 | 2,008 | ||||||||||
Other non-operating income (expense), net | (1,533) | (245) | 1,783 | (1,442) | ||||||||||
Other expense, net | (36,238) | (35,575) | (158,184) | (87,664) | ||||||||||
LOSS BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST | (67,726) | (212,212) | (231,142) | (267,705) | ||||||||||
PROVISION FOR INCOME TAXES | - | - | ||||||||||||
Current | 117 | (442) | 627 | 175 | ||||||||||
Deferred | - | 35 | 169 | 15,419 | ||||||||||
Provision (benefit) for income taxes | 117 | (407) | 796 | 15,594 | ||||||||||
NET LOSS | (67,843) | (211,805) | (231,938) | (283,299) | ||||||||||
Less: Net loss attributable to noncontrolling interest | (17,905) | (80,280) | (79,241) | (106,112) | ||||||||||
NET LOSS ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC. | $ | (49,938) | $ | (131,525) | $ | (152,697) | $ | (177,187) | ||||||
NET LOSS | $ | (67,843) | $ | (211,805) | $ | (231,938) | $ | (283,299) | ||||||
OTHER COMPREHENSIVE LOSS | ||||||||||||||
Foreign currency translation adjustments | (167) | (2,986) | (744) | (587) | ||||||||||
COMPREHENSIVE LOSS | (68,010) | (214,791) | (232,682) | (283,886) | ||||||||||
Less: Comprehensive loss attributable to noncontrolling interest | (18,249) | (80,395) | (79,970) | (105,912) | ||||||||||
COMPREHENSIVE LOSS ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC. | $ | (49,761) | $ | (134,396) | $ | (152,712) | $ | (177,974) | ||||||
WEIGHTED AVERAGE NUMBER OF SHARES | ||||||||||||||
Basic and Diluted | 54,871 | 55,352 | 54,867 | 54,750 | ||||||||||
LOSS PER SHARE | ||||||||||||||
Basic and Diluted | $ | (0.91) | $ | (2.38) | $ | (2.78) | $ | (3.24) | ||||||
GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES | |||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
FOR NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011 AND TWELVE MONTHS ENDED DECEMBER 31, 2012 AND 2011 | |||||||||||||||
(In thousands) | |||||||||||||||
Nine months ended September 30, | Twelve months ended December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||
Net loss | $ | (164,095) | $ | (71,494) | $ | (231,938) | $ | (283,299) | |||||||
Adjustments to reconcile net loss to cash provided by (used in) operating activities: | |||||||||||||||
Depreciation, amortization and depletion | 62,538 | 40,385 | 83,931 | 58,331 | |||||||||||
Impairment of plant and equipment | - | 5,412 | 20,173 | 5,424 | |||||||||||
Change in fair value of derivative liabilities | 48 | (5,526) | (9) | (5,563) | |||||||||||
Gain on debt settlement | - | (3,430) | - | (3,430) | |||||||||||
Loss (gain) on disposal of equipment | (177) | (679) | 2,134 | (693) | |||||||||||
Bad debt (recovery) allowance | 2,316 | 127 | (157) | 3,529 | |||||||||||
Reservation of mine maintenance fee | 3 | - | 37 | - | |||||||||||
Stock issued for services and compensation | 679 | 1,288 | 918 | 1,530 | |||||||||||
Amortization of deferred financing cost on capital lease | 32,363 | 17,282 | 43,122 | 27,704 | |||||||||||
Income from equity investments | (80) | (3,887) | (217) | (5,302) | |||||||||||
Foreign currency transaction (gain) loss | 1,169 | (2,920) | 1,248 | (3,424) | |||||||||||
Deferred tax assets | 169 | 15,384 | 169 | 15,419 | |||||||||||
Deferred lease income | (1,588) | 5,286 | (2,119) | 4,782 | |||||||||||
Changes in operating assets and liabilities | |||||||||||||||
Notes receivable | (99,337) | 19,497 | (53,946) | (41,318) | |||||||||||
Accounts receivable | 5,429 | (18,986) | 6,694 | 4,761 | |||||||||||
Accounts receivable - related parties | (7,607) | (6,207) | 5,835 | (16,015) | |||||||||||
Other receivables | (5,460) | (8,626) | 7,221 | (12,638) | |||||||||||
Other receivables - related parties | 4,784 | (50,311) | 1,820 | (50,562) | |||||||||||
Inventories | 73,024 | 35,305 | 86,635 | 169,207 | |||||||||||
Advances on inventory purchases | (23,365) | (81,430) | (18,677) | (37,674) | |||||||||||
Advances on inventory purchases - related parties | (88,412) | (72,402) | (69,573) | (13,608) | |||||||||||
Prepaid expense and other | (183) | 4,214 | (83) | 4,753 | |||||||||||
Long-term deferred expense | 119 | 793 | (424) | 845 | |||||||||||
Prepaid taxes | 4,168 | 22,982 | 320 | 14,223 | |||||||||||
Accounts payable | (48,059) | 153,604 | (35,719) | 160,657 | |||||||||||
Accounts payable - related parties | 31,353 | 31,609 | 90,833 | 38,647 | |||||||||||
Other payables and accrued liabilities | 34,286 | 6,819 | 14,138 | 18,076 | |||||||||||
Other payables - related parties | 95,746 | (3,827) | 49,991 | 9,845 | |||||||||||
Customer deposits | (9,490) | 53,645 | 34,410 | (46,870) | |||||||||||
Customer deposits - related parties | 14,740 | (2,241) | (46,960) | 11,211 | |||||||||||
Taxes payable | (5,195) | 5,501 | 4,957 | 4,834 | |||||||||||
Net cash provided by (used in) operating activities | (90,114) | 87,167 | (5,236) | 33,382 | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||
Restricted cash | (35,094) | 13,173 | 78,826 | (190,178) | |||||||||||
Loans to related parties | (69,247) | - | (69,299) | - | |||||||||||
Cash proceeds from (made to) short term investment | 40 | (2,620) | 317 | (2,858) | |||||||||||
Cash proceeds from sales of equipment | 19 | 1,271 | 337 | 1,306 | |||||||||||
Long-term other receivable | - | - | (42,994) | - | |||||||||||
Advance on equipment purchase | 3,757 | - | - | - | |||||||||||
Equipment purchase and intangible assets | (19,666) | (54,494) | (27,976) | (110,939) | |||||||||||
Effect on cash due to deconsolidating of a subsidiary | (2,972) | - | (2,975) | - | |||||||||||
Net cash used in investing activities | (123,163) | (42,670) | (63,764) | (302,669) | |||||||||||
CASH FLOWS FINANCING ACTIVITIES: | |||||||||||||||
Payments made for treasury stock acquired | (1,404) | (1,925) | (1,404) | (1,923) | |||||||||||
Notes receivable - restricted | 521,866 | (264,708) | 232,218 | (329,839) | |||||||||||
Borrowings on short term notes payable | 1,382,976 | 859,561 | 1,923,584 | 1,655,741 | |||||||||||
Payments on short term notes payable | (1,637,570) | (800,873) | (2,064,571) | (1,049,680) | |||||||||||
Borrowings on short term loans - bank | 237,535 | 446,532 | 260,611 | 563,007 | |||||||||||
Payments on short term loans - bank | (355,008) | (337,038) | (371,241) | (600,294) | |||||||||||
Borrowings on short term loan - others | 160,554 | 245,381 | 184,890 | 330,037 | |||||||||||
Payments on short term loans - others | (193,964) | (151,375) | (284,242) | (212,661) | |||||||||||
Borrowings on short term loan - related parties | 269,362 | 15,414 | 356,989 | 15,450 | |||||||||||
Payments on short term loans - related parties | (221,134) | (9,912) | (297,718) | (14,817) | |||||||||||
Deposits due to sales representatives | 11,939 | (31,753) | 10,743 | (30,066) | |||||||||||
Deposit due to sales representatives - related parties | 285 | - | 286 | 464 | |||||||||||
Borrowings on long term loan - related party | - | 13,587 | - | 14,677 | |||||||||||
Payments on long term loan - related party | - | - | - | (16,865) | |||||||||||
Long-term other payable - related party | - | - | 42,994 | - | |||||||||||
Net cash provided by (used in) financing activities | 175,437 | (17,109) | (6,861) | 323,231 | |||||||||||
EFFECTS OF EXCHANGE RATE CHANGE IN CASH | 1,426 | (946) | 2,312 | 801 | |||||||||||
INCREASE (DECREASE) IN CASH | (36,414) | 26,442 | (73,549) | 54,745 | |||||||||||
CASH, beginning of period | 120,016 | 65,271 | 120,016 | 65,271 | |||||||||||
CASH, end of period | $ | 83,602 | $ | 91,713 | $ | 46,467 | $ | 120,016 | |||||||
