KUNMING, China, March 30, 2011 /PRNewswire-Asia-FirstCall/ --
China Shenghuo Pharmaceutical Holdings, Inc. (NYSE Alternext US:
KUN) ("China Shenghuo" or the "Company"), today reported financial
results for the year ended December 31,
2010.
Full Year 2010 Highlights
- Total revenue was approximately $32.7
million, a decrease of 9% from approximately $36.0 million for the year 2009.
- Gross profit as a percentage of revenues was approximately
65.8%, as compared to 72.5% in 2009.
- Net cash provided by operating activities was approximately
$5.8 million, an increase of over
approximately $3.3 million, or 132%,
from approximately $2.5 million for
the year ended December 31,
2009.
- Net income attributable to stockholders was approximately
$1.2 million, as compared with a net
loss of approximately $6.6 million
for the year ended December 31,
2009.
- The stockholder's equity reached approximately $2.0 million as of December 31, 2010.
Mr. Gui Hua Lan, Chief Executive Officer of China Shenghuo,
commented, "Although the sales for the year ended December 31, 2010 decreased by 9% from
approximately $36.0 million for the
year ended December 31, 2009, we
achieved a net income of approximately $1.2
million for the year ended December
31, 2010 as compared to a net loss of approximately
$6.6 million for the year ended
December 31, 2009. The increase in
net income was primarily due to the decrease of selling expenses
and general and administrative expenses. In 2011, we will make
great efforts to expand the sales of our products and continue to
decrease unnecessary expenses.
Full Year 2010 Results
Sales: Sales for the year ended December 31, 2010 were approximately $32.7 million, a decrease of approximately
$3.3 million, or 9%, from
approximately $36.0 million for the
year ended December 31, 2009. The
decrease was mainly due to the Company adjusted its sales
commission policy to decrease the commission to sales
representatives, which led to the decrease of the sales in this
year.
Since the spring of 2010, we faced a challenge of insufficient
supply of our major material - Sanqi in Yunnan Province, which has suffered the worst
drought in 50 years from last autumn to this spring. The output of
Sanqi decreased sharply, resulting in the price of Sanqi increasing
remarkably. In order to release the pressure from increasing cost,
the Company decided to adjust its sales commission policy to
decrease the commission to sales representatives by 10% as compared
to that in the first quarter, which led to the decrease of sales.
The commission policy is subject to adjustment from time to time
according to the sales in the market. The Company in August has
slightly increased its sales commission, as a result of a slight
decrease in its cost of Sanqi.
Cost of sales: Our cost of sales for the year
ended December 31, 2010 was
approximately $11.2 million, an
increase of approximately $1.3
million, or 13%, from approximately $9.9 million for the year ended December 31, 2009. The increase in cost of sales
was primarily due to the increase of the price of our main raw
material which was caused by serious drought, offset by the
decreased sale volume.
Gross profit: Our
gross profit for the year ended December 31,
2010 was approximately $21.5
million as compared with approximately $26.1 million for the year ended December 31, 2009. Gross profit as a percentage
of revenues was approximately 65.8% for the year ended December 31, 2010, a down of 6.7% from 72.5% for
the year ended December 31, 2009. The
decrease in gross profit percentage was primarily due to the
increasing price of raw materials.
Selling expenses: Selling expenses were
approximately $15.7 million for the
year ended December 31, 2010, a
decrease of approximately $10.6
million, or 40%, from approximately $26.3 million for the year ended December 31, 2009. The primary reasons for the
decrease in selling expenses were: i) our adjustment on the
commission policy to sales representatives as set forth above; ii)
the strengthened control on travel expenses, business entertainment
expenses, etc.; iii) the decreased expense on OTC market
development as compared to that in 2009, when we started to expand
our business into the OTC market in selected areas around
China.
We reimburse sales representatives their selling and marketing
expenses when they submit the appropriate documentation to be
reimbursed and their sales are collected. We reimburse sales
representatives their accrued selling expenses when related
accounts receivable are collected.
General and administrative expenses: General and
administrative expenses were approximately $3.6 million for the year ended December 31, 2010, a decrease of approximately
$3.3 million, or 47%, from
approximately $6.9 million for the
year ended December 31, 2009. The
decrease was primarily due to: i) our strengthened budget control
over expense disbursements to reduce unnecessary expense; ii) the
decrease in counsel fees related to our class action lawsuit and in
2009 the Company incurred large amount of counsel fees related to
the SEC investigation which began in February 2009 and concluded in September 2009.
Research and development expenses: Research and
development expense for the year ended December 31, 2010 was approximately $0.66 million as compared to approximately
$0.14 million for the year ended
December 31, 2009. The increase was
primarily due to the increase in the expenditure on one of our
innovative medicines - Dencichine for Injection and cooperation
with external experts in Sh1002's registration with the FDA since
late 2009.
Net other expense: Net other expense, which
includes interest income, income from research and development
activities, subsidy income, interest expense and other income, was
approximately $0.1 million for the
year ended December 31, 2010 as
compared to approximately $0.62
million for the year ended December
31, 2009, a decrease of approximately $0.52 million, or 83%. The decrease in other
expense was primarily due to i) increased subsidy income from the
government; ii) gain on disposal of property in 2010; and iii)
offsets from expenses related to the settlement of the class action
lawsuit.
Income tax (expense) benefit: Income tax expense
was approximately $0.1 million for
the year ended December 31, 2010 as
compared to a provision for income tax benefit of approximately
$1.1 million for the year ended
December 31, 2009, due to the
Company's recorded profit in 2010.
Net income (loss) attributable
to stockholders: We achieved a net income of approximately
$1.2 million for the year ended
December 31, 2010 as compared to a
net loss of approximately $6.6
million for the year ended December
31, 2009. The increase in net income was primarily due to
the decrease of selling expenses and general and administrative
expenses offset by the decrease of sales volume.
New drug pipeline
- Wei Dingkang Soft Capsules - is a type of traditional
Chinese medicine designed to treat peptic ulcer disease by
inhibiting bacterial growth, relieving stomach muscle spasms, and
reducing inflammation of the intestinal lining. The product is
designed to be effective for upset stomach, vomiting, pain and
degradation of the stomach lining. The product has been approved by
the State Food and Drug Administration (SFDA) for clinical testing.
Phase II clinical trials were completed in December 2007, after which the Phase II
exploratory and enhanced clinical trials commenced and were
completed in 2010. However, due to changes in clinical trials
requirements, presently we are still making preparations for the
Phase III clinical trials which will be conducted in the second
quarter of 2011. We anticipate that the Phase III clinical trials
will be completed by the first half of 2012. After that the
application for production approval will start. We expect to obtain
production approval by the end of 2012 or the beginning of 2013. We
expect to incur an estimated cost of approximately RMB 4 million (approximately $0.59 million) to run the Phase III clinical
trials in 2011 and 2012.
- Dencichine for Injection - is designed to treat
hemorrhage diseases, such as stopping or reducing bleeding
during/after operations. The pharmacology and toxicology studies
are almost finished and the results demonstrate that Dencichine for
Injection shows high effectiveness and high safety both in our
internal animal models tests and the test conducted by the Nanjing
Evaluation and Research Center. We are planning to apply for
clinical trials with the State Food and Drug Administration (SFDA).
Assuming required governmental approvals are obtained in a timely
fashion, we anticipate that production and marketing of the product
will begin in 2013. Dencichine for Injection is a drug requiring
extensive testing by the national SFDA, including neurotoxicity
testing, which may take a significant amount of time. In addition,
clinical testing and audit processes are out of our control, so we
must allow for additional time. We expect to incur approximately
RMB 300,000 (approximately
$44,310) in 2011 and approximately
RMB 2 to 3 million (approximately
$0.3 million to $0.4 million) in 2012
and 2013 in connection with clinical trials.
- Sh1002 - is designed to treat one of the complications
of diabetes mellitus: retinal vascular lesions. We submitted a
Investigational New Drug Application (IND) for Sh1002 to the FDA in
October 2010 and were approved to
start an IND study after December 24,
2010. The application for clinical trials for Sh1002 in
America has also been approved by the FDA and the Phase I clinical
trial is expected to start in April
2011. We plan to conduct the Phase I and Phase II clinical
trials in America and then license our technology to a foreign
pharmaceutical company, while retaining the China domestic marketing and the global
manufacturing rights to Sh1002. We expect to incur approximately
$300,000 for Phase I clinical trials
in 2011 and approximately $2 million
for Phase II clinical trials in 2012.
Business update
On September 22, 2010 the Company
received notice from NYSE Amex LLC (the "NYSE Amex" or "Exchange")
Staff indicating that the Company is below certain of the
Exchange's continued listing standards due to the fact that its
stockholder's equity is less than $2,000,000, it has sustained losses from
continuing operations, and it has net losses in two out of its
three most recent fiscal years, as set forth in Section 1003(a)(i)
of the NYSE Amex Company Guide. The Company was afforded the
opportunity to submit a plan of compliance to the Exchange to
demonstrate its ability to regain compliance with the continued
listing standards by March 22, 2012.
On October 29, 2010 and November 29, 2010, the Company presented its plan
and responses to supplemental questions to the Exchange.
On December 6, 2010 the Exchange
notified the Company that it accepted the Company's plan of
compliance and granted the Company an extension until March 22, 2012 to regain compliance with the
continued listing standards. The Company will be subject to
periodic review by Exchange Staff during the extension period. As
of December 31, 2010, stockholders'
equity reached approximately $2.0
million.
We have expanded our real estate by 107,231 square feet and
deployed our pharmaceutical operations into it. This is a result of
the construction of our new, 29,212 square-foot 7-storey office
building for our executives and administrative staff. We also built
a 78,020 square-foot 7-storey adjacent building to be used as a
training facility for the sales and marketing team, the 12 Ways
team and our staff's continuing education. We intend to rent out 3
storeys of that building which are not devoted to employee
training. These two new office buildings were built at a cost of
approximately RMB 42 million
(approximately $6.3 million) by using
cash flow from our operations and are debt free.
With the substantial completion of Shenghuo Plaza at the end of
2010, we entered into a new business - the hotel and hospitality
business. Shenghuo Plaza consists of 17 storeys totaling
approximately 252,984 square feet. Two floors of Shenghuo Plaza are
designed to be utilized as 12 Ways Chinese Herbal Beauty
Demonstration Center. In addition, 12 Ways beauty products will be
prominently displayed in the lobby of the Shenghuo Plaza in order
to expose them to tourists and business clienteles. The balance of
Shenghuo Plaza is used as a 4-star business hotel - Zhonghuang
Hotel, restaurant and banquet facilities and an entertainment
venue. Shenghuo Plaza has begun trial operations since January 2011 with certain interior decorating and
outfitting being carried out on those floors not yet ready for
guest occupancy. As of December 31,
2010, we incurred a cost of approximately RMB 59.0 million (approximately $8.9 million) to build Shenghuo Plaza. Of the
$8.9 million, $6.3 million came from cash flow from our
pharmaceutical operations and $2.6
million are bank loans we borrowed. While we have not
conducted any appraisals, we believe that Shenghuo Plaza can be
valued at approximately RMB 250
million (approximately $37.7
million). Shenghuo Plaza has begun trial operations since
January 2011 with certain interior
decorating and outfitting being carried out on two of the floors
not yet ready for guest occupancy. The other floors are now open to
the public on a trial basis. The entire Shenghuo Plaza will be
formally open to the public after we obtain the property ownership
certificate and the business license which we expect to get later
this year. We expect Shenghuo Plaza to generate approximately
RMB 8 million (approximately
$1.2 million) in annual net income
commencing with fiscal year 2011. This cash flow will allow us to
support our R&D development and otherwise advance our
pharmaceutical operations.
We are also expanding into the businesses of wellness tourism.
On April 30, 2009, we formed Shilin
Shenghuo Pharmaceutical Co., Ltd. as a wholly owned subsidiary for
the purpose of purchasing or leasing land to build our own
medicinal herb planting base. On September
8, 2010, we signed an agreement with Management Commission
of Kunming Shilin Taiwan Farmer Entrepreneur Centre ("Entrepreneur
Centre") to lease a piece of land located near the Stone Forest
which has been recognized as a world natural heritage site. With an
area of 437.9 acres (2,658 Mu), subject to receiving the necessary
approvals and funding, the land will be used to construct a
Traditional Chinese Medicine-based ecological wellness tourism
destination that focuses on improving the health and extending the
life expectancy of the elderly and introduce TCM culture - Xinglin
International Health-Preserving Tourist Resort (the "Resort"). In
the Resort, approximately 250.4 acres (1,520 Mu) will be devoted to
planting suitable-for-cultivating Sanchi and other medicinal herbs
for use in the production of our medicinal products in 2011. The
rest of the property will be used to build exhibition facilities
that emphasize TCM culture, a temple, a TCM museum and apartments
for elderly people.
About China Shenghuo
Founded in 1995, China Shenghuo is a specialty pharmaceutical
company that focuses on the research, development, manufacture and
marketing of Sanchi-based medicinal and pharmaceutical, nutritional
supplement and cosmetic products. Through its subsidiary, Kunming
Shenghuo Pharmaceutical (Group) Co., Ltd., it owns thirty SFDA
(State Food and Drug Administration) approved medicines, including
the flagship product Xuesaitong Soft Capsules, which is currently
being listed in the 2010 Provincial Insurance Catalogue of sixteen
provinces and remains to be listed in the 2009 Provincial Insurance
Catalogue of three provinces around China. At present, China Shenghuo incorporates
a sales network of agencies and representatives throughout
China, which markets Sanchi-based
traditional Chinese medicine to hospitals and drug stores as
prescription and OTC drugs primarily for the treatment of
cardiovascular, cerebrovascular and peptic ulcer disease. The
Company also exports medicinal products to Asian countries such as
Indonesia, Singapore, Japan, Malaysia, and Thailand and to European countries such as the
United Kingdom, Tajikistan, Russia and Kyrgyzstan. For more information, please visit
http://www.shenghuo.com.cn.
Safe Harbor Statement
This press release may contain certain "forward-looking
statements," as defined in the United
States Private Securities Litigation Reform Act of 1995,
that involve a number of risks and uncertainties. There can be no
assurance that such statements will prove to be accurate, and the
actual results and future events could differ materially from
management's current expectations. Such factors include, but are
not limited to, risks of litigation and governmental or other
regulatory proceedings arising out of or related to any of the
matters described in recent press releases, including arising out
of the restatement of the Company's financial statements; the
Company's ability to refinance or repay loans received; the
Company's uncertain business condition; the Company's continuing
ability to satisfy any requirements which may be prescribed by the
Exchange for continued listing on the Exchange; risks arising from
potential weaknesses or deficiencies in the Company's internal
controls over financial reporting; the Company's reliance on one
supplier for Sanchi; the possible effect of adverse publicity on
the Company's business, including possible contract cancellation;
the Company's ability to develop and market new products; the
Company's ability to establish and maintain a strong brand; the
Company's continued ability to obtain and maintain all
certificates, permits and licenses required to open and operate
retail specialty counters to offer its cosmetic products and
conduct business in China;
protection of the Company's intellectual property rights; market
acceptance of the Company's products; changes in the laws of
the People's Republic of China
that affect the Company's operations; cost to the Company of
complying with current and future governmental regulations; the
impact of any changes in governmental regulations on the Company's
operations; general economic conditions; and other factors detailed
from time to time in the Company's filings with the United States
Securities and Exchange Commission and other regulatory
authorities. The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
|
|
Company Contact:
|
|
China Shenghuo Pharmaceutical
Holdings, Inc.
|
|
Ms. Shujuan Wang
|
|
Secretary of Board of
Directors
|
|
+86-871-7282698
|
|
|
|
Investor Relations
Contact:
|
|
The Trout Group
|
|
Mark Xu
|
|
+86-15821996861
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|
|
|
CHINA
SHENGHUO PHARMACEUTICAL HOLDINGS, INC. AND
SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(Amounts in
USD, except shares)
|
|
|
|
|
December
31,
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,669,387
|
|
$
|
1,986,540
|
|
Accounts and notes
receivable, net
|
|
|
11,531,027
|
|
|
12,104,296
|
|
Other receivables,
net
|
|
|
4,111,315
|
|
|
6,694,151
|
|
Advances to
suppliers
|
|
|
580,168
|
|
|
394,856
|
|
Inventories
|
|
|
2,599,351
|
|
|
3,896,358
|
|
Amounts
due from
related parties
|
|
|
190,614
|
|
|
417,494
|
|
Current deferred tax
assets
|
|
|
833,568
|
|
|
849,993
|
|
Other current
assets
|
|
|
208,111
|
|
|
16,652
|
|
Total current
assets
|
|
|
21,723,541
|
|
|
26,360,340
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
21,069,139
|
|
|
12,065,552
|
|
Intangible assets,
net
|
|
|
1,432,736
|
|
|
1,127,224
|
|
Deposits for
long-live assets
|
|
|
754,979
|
|
|
-
|
|
Non-current
deferred tax assets
|
|
|
366,478
|
|
|
370,197
|
|
Total assets
|
|
$
|
45,346,873
|
|
$
|
39,923,313
|
|
|
|
|
|
|
|
|
|
|
CHINA
SHENGHUO PHARMACEUTICAL HOLDINGS, INC. AND
SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS (CONT'D)
(Amounts in
USD, except shares)
|
|
|
|
|
December
31,
|
|
|
2010
|
|
2009
|
|
Liabilities and
Equity:
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
8,964,404
|
|
$
|
4,744,919
|
|
Other payables and
accrued expenses
|
|
|
9,699,857
|
|
|
10,099,497
|
|
Sales
representative deposits
|
|
|
4,936,429
|
|
|
7,037,155
|
|
Amounts
due to related
parties
|
|
|
79,864
|
|
|
-
|
|
Short-term
borrowings
|
|
|
5,289,178
|
|
|
5,455,958
|
|
Advances from
customers
|
|
|
1,158,649
|
|
|
916,362
|
|
Taxes and related
payables
|
|
|
881,506
|
|
|
1,094,331
|
|
Current portion of
long-term borrowings
|
|
|
6,039,833
|
|
|
3,948,985
|
|
Total current
liabilities
|
|
|
37,049,720
|
|
|
33,297,207
|
|
Long-term
borrowings
|
|
|
6,251,227
|
|
|
5,850,348
|
|
Total liabilities
|
|
|
43,300,947
|
|
|
39,147,555
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
Common
stock, $0.0001 par value, 100,000,000 shares
authorized and 19,679,400
shares issued and
outstanding
|
|
|
1,968
|
|
|
1,968
|
|
Additional paid-in
capital
|
|
|
6,193,927
|
|
|
6,193,927
|
|
Appropriated
retained earnings
|
|
|
147,023
|
|
|
147,023
|
|
Accumulated
deficit
|
|
|
(5,940,439)
|
|
|
(7,157,293)
|
|
Accumulated other
comprehensive income
|
|
|
1,638,109
|
|
|
1,589,047
|
|
Total
stockholder's
equity
|
|
|
2,040,588
|
|
|
774,672
|
|
Non-controlling
interest
|
|
|
5,338
|
|
|
1,086
|
|
Total equity
|
|
|
2,045,926
|
|
|
775,758
|
|
Total liabilities and
equity
|
|
$
|
45,346,873
|
|
$
|
39,923,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA
SHENGHUO PHARMACEUTICAL HOLDINGS, INC. AND
SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
AND
COMPREHENSIVE INCOME (LOSS)
|
|
(Amounts in
USD, except shares)
|
|
|
|
|
|
|
|
|
|
|
|
Years ended
December 31,
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
32,697,195
|
|
$
|
36,001,915
|
|
Cost of
goods sold
|
|
|
11,198,736
|
|
|
9,887,969
|
|
Gross
profit
|
|
|
21,498,459
|
|
|
26,113,946
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
15,715,325
|
|
|
26,281,103
|
|
General and
administrative expenses
|
|
|
3,638,445
|
|
|
6,920,489
|
|
Research and
development expense
|
|
|
656,225
|
|
|
139,944
|
|
|
|
|
20,009,995
|
|
|
33,341,536
|
|
Income
(loss) from operations
|
|
|
1,488,464
|
|
|
(7,227,590)
|
|
Other income
(expenses):
|
|
|
|
|
|
|
|
Interest
income
|
|
|
8,325
|
|
|
4,871
|
|
Subsidy
income
|
|
|
786,916
|
|
|
343,850
|
|
Interest
expense
|
|
|
(842,560)
|
|
|
(933,505)
|
|
Other
income
|
|
|
247,536
|
|
|
54,916
|
|
Other
expenses
|
|
|
(305,185)
|
|
|
(93,777)
|
|
|
|
|
(104,968)
|
|
|
(623,645)
|
|
Income
(loss) before income tax
|
|
|
1,383,496
|
|
|
(7,851,235)
|
|
Income tax benefit
(expense)
|
|
|
(105,764)
|
|
|
1,053,980
|
|
Net income (loss) before
allocation to non-controlling interests
|
|
|
1,277,732
|
|
|
(6,797,255)
|
|
Less: net income (loss)
attributable to non-controlling interests
|
|
|
60,878
|
|
|
(243,534)
|
|
Net income
(loss) attributable to stockholders
|
|
$
|
1,216,854
|
|
$
|
(6,553,721)
|
|
Comprehensive income
(loss):
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
1,277,732
|
|
|
(6,797,255)
|
|
Foreign currency
translation adjustment
|
|
|
51,517
|
|
|
(71,369)
|
|
Comprehensive income
(loss)
|
|
$
|
1,329,249
|
|
$
|
(6,868,624)
|
|
Comprehensive income
(loss) attributable to
non-controlling interests
|
|
|
63,333
|
|
|
(247,138)
|
|
Comprehensive income
(loss) attributable to stockholders
|
|
|
1,265,916
|
|
|
(6,621,486)
|
|
Basic and
diluted earnings (loss) per share
|
|
$
|
0.06
|
|
$
|
(0.33)
|
|
Weighted-average number of
shares outstanding
- basic and
diluted
|
|
|
19,679,400
|
|
|
19,679,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA
SHENGHUO PHARMACEUTICAL HOLDINGS, INC. AND
SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Amounts in
USD)
|
|
|
|
Years ended
December 31,
|
|
|
2010
|
|
2009
|
|
Cash Flows from Operating
Activities:
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
1,277,732
|
|
$
|
(6,797,255)
|
|
Adjustments to reconcile
net income (loss)
to net cash provided by
operating activities:
|
|
|
|
|
|
|
Deferred income
tax
|
|
58,362
|
|
|
(1,219,655)
|
|
Depreciation and
amortization
|
|
755,380
|
|
|
776,985
|
|
Bad debt provision and
allowance and inventories provision
|
|
1,786,315
|
|
|
1,836,590
|
|
Gain on disposal of fixed
assets
|
|
(103,140)
|
|
|
-
|
|
Change in working
capital:
|
|
|
|
|
|
|
Accounts and notes
receivable
|
|
799,195
|
|
|
(4,504,549)
|
|
Other
receivables
|
|
1,234,888
|
|
|
2,272,123
|
|
Amounts
due from/to
related parties
|
|
313,278
|
|
|
(598,817)
|
|
Advances to
suppliers
|
|
(168,759)
|
|
|
52,399
|
|
Inventories
|
|
1,164,966
|
|
|
423,745
|
|
Other current
assets
|
|
(186,754)
|
|
|
24,616
|
|
Accounts
payable
|
|
1,935,119
|
|
|
853,028
|
|
Other
payables and
accrued expenses
|
|
(712,701)
|
|
|
7,360,102
|
|
Advances from
customers
|
|
207,968
|
|
|
692,896
|
|
Deposits payable
|
|
(2,277,841)
|
|
|
1,472,207
|
|
Taxes and related
payables
|
|
(242,273)
|
|
|
(145,828)
|
|
Net Cash Provided by Operating
Activities
|
|
5,840,735
|
|
|
2,498,587
|
|
|
|
|
|
|
|
|
Cash Flows from Investing
Activities:
|
|
|
|
|
|
|
Purchase of long-lived
assets
|
|
(8,354,461)
|
|
|
(3,120,663)
|
|
Process from disposal of
long-lived assets
|
|
317,679
|
|
|
-
|
|
Net Cash Used in Investing
Activities
|
|
(8,036,782)
|
|
|
(3,120,663)
|
|
|
|
|
|
|
|
|
Cash Flows from Financing
Activities:
|
|
|
|
|
|
|
Contribution from
non-controlling
interests
|
|
29,539
|
|
|
-
|
|
Proceeds from
borrowings
|
|
29,582,155
|
|
|
21,901,038
|
|
Payments on borrowings
|
|
(27,791,252)
|
|
|
(20,908,646)
|
|
Net Cash Provided by Financing
Activities
|
|
1,820,442
|
|
|
992,392
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes
on cash
|
|
58,452
|
|
|
4,170
|
|
Net (decrease) increase in cash
and cash equivalents
|
|
(317,153)
|
|
|
374,486
|
|
Cash and cash equivalents at
beginning of year
|
|
1,986,540
|
|
|
1,612,054
|
|
Cash and cash equivalents at end
of year
|
$
|
1,669,387
|
|
$
|
1,986,540
|
|
|
|
|
|
|
|
|
Supplemental
Information
|
|
|
|
|
|
|
Cash paid for
interest
|
$
|
967,686
|
|
$
|
921,451
|
|
Cash paid for income
tax
|
$
|
130,229
|
|
$
|
594,197
|
|
|
|
|
|
|
|
|
|
|
SOURCE China Shenghuo Pharmaceutical Holdings, Inc.