LISHUI, China, Dec. 26, 2018 /PRNewswire/-- Tantech Holdings
Ltd. (NASDAQ: TANH) ("Tantech" or
the "Company"), a clean energy company in China, today announced its unaudited interim
financial results for the six months ended June 30, 2018.
Six-Month 2018 Financial
Highlights
|
|
For the six Months
Ended June 30,
|
($ millions,
expect per share data and percentages )
|
|
2018
|
|
2017
|
|
%
Change
|
|
Revenues
|
|
$
|
16.0
|
|
$
|
12.4
|
|
|
28
|
%
|
Consumer
product
|
|
$
|
12.3
|
|
$
|
12.3
|
|
|
0
|
%
|
Trading
|
|
$
|
3.7
|
|
$
|
0.1
|
|
|
3,640
|
%
|
Gross
profit
|
|
$
|
2.6
|
|
$
|
2.0
|
|
|
31
|
%
|
Gross
margin
|
|
|
16.4
|
%
|
|
16
|
%
|
|
0.4
|
percentage
points
|
Operating
margin
|
|
|
3.7
|
%
|
|
(0.9)
|
%
|
|
4.6
|
percentage
points
|
Net income (loss)
from continuing operations
|
|
$
|
0.13
|
|
$
|
(0.6)
|
|
|
121
|
%
|
Net income from
discontinued operations
|
|
$
|
1.46
|
|
$
|
0.9
|
|
|
59
|
%
|
Net income
|
|
$
|
1.59
|
|
$
|
0.3
|
|
|
412
|
%
|
Basic/ Diluted
earnings per share
|
|
$
|
0.07
|
|
$
|
0.01
|
|
|
600
|
%
|
- Total revenues increased by 28% from $12.4 million to $16
million. The increase in our total revenue was because of
increased sales volume and increased number of customers and
distributors.
- Gross profit increased by 31% from $2
million to approximately $2.6
million because of increased revenue. Gross margin remained
consistent around 16%.
- Selling expenses increased by 65% from $0.23 million to approximately $0.38 million. The increase was mainly because of
more sales events during the first six months in fiscal 2018
compared to the same period last year.
- General and administration expenses decreased by 16% from
$1.8 million to approximately
$1.5 million. The decrease was mainly
because of lower consulting and professional fees during the first
six months in fiscal 2018 compared to the same period last
year.
- Research and development expenses increased by 61% from
$0.08 million to approximately
$0.12 million. The increase was
because of more research activities during the first six months in
fiscal 2018 compared to the same period last year.
- Other expenses increased by 29% from $0.07 million to approximately $0.09 million. The increase was mainly
because of higher interest expense resulting from higher borrowings
balance during the first six months in fiscal 2018 compared to the
same period last year.
- Net income from continuing operation attributable to
shareholders was $0.13 million,
compared to a net loss of $0.6
million in the same period of last year. The increase
was mainly because of the increased sales and gross profits.
- Net income from discontinued operation increased by 59% from
$0.9 million to $1.46 million. The increase was mainly because of
the lower costs of sales for energy products.
- Net income increased by 412% from $0.3
million to $1.59 million. The
increase was mainly the results of increased sales and gross
profits.
"In the first half of 2018, despite challenges in a dynamic and
complex environment, we grew our revenues and net income while
continuing our business transformation to raise the Company's
competitiveness," said Mr. Zhengyu
Wang, Chairman and Chief Executive Officer of Tantech.
During the reporting period, the Company reported $16 million in revenue and $1.59 million in net income, up 28% and 412%
respectively compared with the same period last year.
"During the reporting period, the Company acquired an 18%
ownership interest in Libo Haokun Stone Co., which owns a small
marble quarry in the southwestern province of Guizhou, for RMB 120
million (or $18.1 million).
Since its establishment, Tantech has accumulated rich customer
resources and built a strong brand image in home decoration and
indoor air purification. With China's growing economy and rising household
income, marble has become a popular choice for commercial
construction and home decoration because of its endurance and
elegant appearance. The investment was aimed at diversifying risks
and creating more value for our shareholders."
"China's electric motor vehicle
market has maintained rapid growth. According to data from
government-backed China Association of Automobile Manufacturers,
China produced 879,000 electric
motor vehicles and sold 860,000 vehicles of such kinds in the first
ten months of 2018, up 70% and 75.6% respectively from the
year-earlier period. The Company has delivered orders for its
electric logistics cars in the second half of the year and expects
to record revenues for its electric vehicle business in the full
year earnings report for fiscal 2018."
Mr. Wang finally commented, "In November, Suzhou E Motors Co.,
Ltd., a subsidiary of Tantech, received approval from the Ministry
of Industry and Information Technology to sell a newly-developed
electric van in China. The pure
electric van, which has a range of 300 kilometers on a full battery
charge, will go on sale soon. In the future, the Company will
continue to accelerate research on new models and expand
manufacturing capacity to satisfy customers' needs and realize our
goal of becoming a leader in China's special purpose vehicle market."
About Tantech Holdings Ltd.
Established in 2001 and headquartered in Lishui City,
Zhejiang Province, China, Tantech Holdings Ltd., together with
its subsidiaries (the "Company'), is now transforming from a
developer and manufacturer of bamboo-based charcoal products and
Electric Double-Layer Capacitor ("EDLC") carbon business, to an
innovative leader in the design, manufacture and distribution of
electric vehicles. The Company has also invested in a marble
business in 2018.
On December 14, 2017, the Company
entered into a sale agreement and related agreements to transfer
its Electric Double-Layer Capacitor ("EDLC") carbon business
(including intellectual property rights and equipment) to Zhejiang
Apeikesi Energy Co., Ltd. After the completion of the transactions,
the Company intends to focus its core business on the development
of electric vehicle products. Further to the sale of EDLC
carbon business, during the six months ended June 30, 2018, the Company decided to dispose all
the remaining assets in Tantech Energy, one of its subsidiaries. As
a result, the Company separately presented Tantech Energy as
discontinued operation on its condensed consolidated financial
statements as of June 30, 2018.
The Company expects to complete the disposition process during the
first quarter of 2019.
For more information please
visit: http://www.tantechholdings.com
About Suzhou E Motors Co., Ltd.
Established in April 2011 Suzhou E Motors Co., Ltd.
("Suzhou E Motors") is an innovative leader in the design,
manufacture and distribution of electric vehicles ("EVs"). With
outstanding quality and reliable battery production, our system
enables to effectively integrate renewable and conventional energy
sources across all our product lines. Suzhou E Motors offers a wide
range of EVs, including urban sanitary vehicles, electric logistics
vehicles and mini tourist buses with current annual capacity of
approximately 5,000 EVs. For more information please
visit: http://www.emotorsbus.com.
Forward-Looking Statements
This news release contains forward-looking statements as
defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. These statements are subject to
uncertainties and risks including, but not limited to, product and
service demand and acceptance, changes in technology, economic
conditions, the impact of competition and pricing, government
regulations, and other risks contained in reports filed by the
company with the Securities and Exchange Commission. All such
forward-looking statements, whether written or oral, and whether
made by or on behalf of the Company, are expressly qualified by
this cautionary statement and any other cautionary statements which
may accompany the forward-looking statements. In addition, the
Company disclaims any obligation to update any forward-looking
statements to reflect events or circumstances after the date
hereof.
For more information please contact:
Tantech Holdings Ltd.
Ms. Ye Ren
IR Manager
+86-578-261-2869
ir@tantech.cn
Tantech Holdings
Ltd and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
|
|
|
June
30,
|
|
|
December
31,
|
|
|
|
2018
|
|
|
2017
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
12,243,565
|
|
|
$
|
9,736,291
|
|
Restricted
cash
|
|
|
1,169,514
|
|
|
|
3,901,526
|
|
Notes
receivable
|
|
|
-
|
|
|
|
15,370
|
|
Accounts receivable,
net
|
|
|
33,989,206
|
|
|
|
44,834,930
|
|
Inventories,
net
|
|
|
2,570,555
|
|
|
|
2,762,016
|
|
Advances to
suppliers, net
|
|
|
3,798,325
|
|
|
|
11,290,625
|
|
Prepaid value-added
taxes
|
|
|
3,534,598
|
|
|
|
2,976,265
|
|
Other receivables,
net
|
|
|
935,280
|
|
|
|
1,683,906
|
|
Current assets from
discontinued operations
|
|
|
8,720,441
|
|
|
|
12,043,956
|
|
Total current
assets
|
|
|
66,961,484
|
|
|
|
89,244,885
|
|
|
|
|
|
|
|
|
|
|
Property, plant
and equipment, net
|
|
|
3,404,506
|
|
|
|
3,519,445
|
|
|
|
|
|
|
|
|
|
|
Other
Assets
|
|
|
|
|
|
|
|
|
Advances to
suppliers
|
|
|
453,300
|
|
|
|
2,109,005
|
|
Manufacturing rebate
receivable
|
|
|
9,112,321
|
|
|
|
9,269,118
|
|
Intangible assets,
net
|
|
|
15,434,782
|
|
|
|
15,976,144
|
|
Goodwill
|
|
|
8,849,647
|
|
|
|
9,001,924
|
|
Long-term
investment
|
|
|
18,132,000
|
|
|
|
-
|
|
Non-current assets
from discontinued operations
|
|
|
8,925,337
|
|
|
|
9,367,205
|
|
Total
Assets
|
|
$
|
131,273,377
|
|
|
$
|
138,487,726
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
|
Short-term bank
loans
|
|
$
|
5,120,779
|
|
|
$
|
5,208,893
|
|
Bank acceptance notes
payable
|
|
|
4,191,514
|
|
|
|
6,975,526
|
|
Accounts
payable
|
|
|
2,971,819
|
|
|
|
5,543,226
|
|
Due to related
parties
|
|
|
4,277,401
|
|
|
|
2,995,228
|
|
Customer
deposits
|
|
|
1,282,773
|
|
|
|
1,046,105
|
|
Taxes
payable
|
|
|
213,658
|
|
|
|
542,267
|
|
|
|
|
|
|
|
|
|
|
Due to third
parties
|
|
|
696,873
|
|
|
|
708,864
|
|
Accrued liabilities
and other payables
|
|
|
1,355,504
|
|
|
|
1,581,618
|
|
Current liabilities
from discontinued operations
|
|
|
1,825,711
|
|
|
|
2,187,535
|
|
Total current
liabilities
|
|
|
21,936,032
|
|
|
|
26,789,262
|
|
Deferred tax
liability
|
|
|
2,050,797
|
|
|
|
2,086,086
|
|
Total
liabilities
|
|
|
23,986,829
|
|
|
|
28,875,348
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
Common shares, $0.001
par value, 50,000,000 shares authorized,
28,703,242 shares issued and outstanding at June 30, 2018 and
December 31, 2017
|
|
|
28,703
|
|
|
|
28,703
|
|
Additional paid-in
capital
|
|
|
39,067,328
|
|
|
|
39,067,328
|
|
Statutory
reserves
|
|
|
6,461,788
|
|
|
|
6,461,788
|
|
Retained
earnings
|
|
|
58,349,698
|
|
|
|
56,356,369
|
|
Accumulated other
comprehensive loss
|
|
|
(5,032,481)
|
|
|
|
(1,101,270)
|
|
Total
Shareholders' Equity
|
|
|
98,875,036
|
|
|
|
100,812,918
|
|
Noncontrolling
interest
|
|
|
8,411,512
|
|
|
|
8,799,460
|
|
Total
Equity
|
|
|
107,286,548
|
|
|
|
109,612,378
|
|
Total Liabilities
and Equity
|
|
$
|
131,273,377
|
|
|
$
|
138,487,726
|
|
Tantech Holdings
Ltd and Subsidiaries
|
Condensed
Consolidated Statements of Comprehensive Income
(Loss)
|
(Unaudited)
|
|
|
|
For the Six Months
Ended June 30,
|
|
|
|
2018
|
|
|
2017
|
|
Revenues
|
|
$
|
15,986,214
|
|
|
$
|
12,445,058
|
|
Cost of
revenues
|
|
|
13,363,599
|
|
|
|
10,448,983
|
|
Gross
Profit
|
|
|
2,622,615
|
|
|
|
1,996,075
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
385,525
|
|
|
|
231,740
|
|
General and
administrative expenses
|
|
|
1,518,991
|
|
|
|
1,804,020
|
|
Research and
development expenses
|
|
|
122,377
|
|
|
|
75,864
|
|
Total operating
expenses
|
|
|
2,026,893
|
|
|
|
2,111,624
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
|
595,722
|
|
|
|
(115,549)
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
38,272
|
|
|
|
6,070
|
|
Interest
expense
|
|
|
(331,993)
|
|
|
|
(88,115)
|
|
Other income,
net
|
|
|
200,176
|
|
|
|
9,454
|
|
Total other
expenses
|
|
|
(93,545)
|
|
|
|
(72,591)
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes provision
|
|
|
502,177
|
|
|
|
(188,140)
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes
|
|
|
372,980
|
|
|
|
422,582
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
|
|
129,197
|
|
|
|
(610,722)
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operation:
|
|
|
|
|
|
|
|
|
Net income from
discontinued operations, net of income tax
|
|
|
1,460,779
|
|
|
|
921,481
|
|
Net
income
|
|
|
1,589,976
|
|
|
|
310,759
|
|
|
|
|
|
|
|
|
|
|
Less: Net loss
attributable to the noncontrolling interest from
continuing operations
|
|
|
(403,353)
|
|
|
|
-
|
|
Net income
attributable to common shareholders of
Tantech Holding Inc.
|
|
$
|
1,993,329
|
|
|
$
|
310,759
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
1,589,976
|
|
|
|
310,759
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
|
Foreign currency
translation gains (loss)
|
|
|
(3,915,806)
|
|
|
|
1,501,819
|
|
Comprehensive
income (loss)
|
|
|
(2,325,830)
|
|
|
|
1,812,578
|
|
|
|
|
|
|
|
|
|
|
Less: Comprehensive
loss attributable to noncontrolling
interest
|
|
|
(387,948)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) attributable to common
shareholders of Tantech Holding Inc.
|
|
$
|
(1,937,882)
|
|
|
$
|
1,812,578
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
-Basic and Diluted
|
|
$
|
0.07
|
|
|
$
|
0.01
|
|
Weighted Average
Shares Outstanding - Basic and Diluted
|
|
|
28,703,242
|
|
|
|
24,311,935
|
|
Tantech Holdings
Ltd and Subsidiaries
|
Condensed
Consolidated Statements of Cash Flows
|
(Unaudited)
|
|
|
|
For the Six Months
Ended
|
|
|
|
June
30,
|
|
|
|
2018
|
|
|
2017
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1,589,976
|
|
|
$
|
310,759
|
|
Net income from
discontinued operations
|
|
|
1,460,779
|
|
|
|
921,481
|
|
Net income (loss)
from continuing operations
|
|
|
129,197
|
|
|
|
(610,722)
|
|
Adjustments to
reconcile net income to net cash
provided by (used in) operating activities from
continuing
operations:
|
|
|
|
|
|
|
|
|
Allowance for doubt
accounts - accounts receivable
|
|
|
-
|
|
|
|
259,169
|
|
Allowance for doubt
accounts - advances to suppliers
|
|
|
-
|
|
|
|
743,394
|
|
Depreciation
expense
|
|
|
59,872
|
|
|
|
195,023
|
|
Amortization of
intangible asset
|
|
|
284,666
|
|
|
|
3,305
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
10,487,847
|
|
|
|
4,732,728
|
|
Advances to
suppliers
|
|
|
9,275,591
|
|
|
|
1,402,617
|
|
Inventory
|
|
|
150,486
|
|
|
|
(956,878)
|
|
Other
receivables
|
|
|
764,156
|
|
|
|
(42,704)
|
|
Accounts
payable
|
|
|
(2,576,022)
|
|
|
|
2,559,059
|
|
Customer
deposits
|
|
|
264,465
|
|
|
|
114,617
|
|
Taxes
payable
|
|
|
(965,703)
|
|
|
|
(336,659)
|
|
Accrued liabilities
and other payables
|
|
|
(211,338)
|
|
|
|
917,971
|
|
Net cash provided
by continuing operations
|
|
|
17,663,217
|
|
|
|
8,980,920
|
|
Net cash provided
by (used in) discontinued operations
|
|
|
5,315,118
|
|
|
|
(629,730)
|
|
Net cash provided
by operating activities
|
|
|
22,978,335
|
|
|
|
8,351,190
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Addition of property,
plant and equipment
|
|
|
(2,268)
|
|
|
|
(13,514)
|
|
Additions to
intangible assets
|
|
|
(2,792)
|
|
|
|
-
|
|
Long term
investment
|
|
|
(18,852,000)
|
|
|
|
-
|
|
Deposit for business
acquisition
|
|
|
-
|
|
|
|
(4,409,435)
|
|
Net cash used in
continuing operations
|
|
|
(18,857,060)
|
|
|
|
(4,422,949)
|
|
Net cash provided
by (used in) discontinued operations
|
|
|
(802,821)
|
|
|
|
15,401
|
|
Net cash used in
investing activities
|
|
|
(19,659,881)
|
|
|
|
(4,407,548)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Repayments of bank
loans
|
|
|
-
|
|
|
|
(305,456)
|
|
Notes
receivables
|
|
|
15,710
|
|
|
|
-
|
|
Repayments of bank
acceptance notes payable
|
|
|
(2,771,877)
|
|
|
|
(290,910)
|
|
Repayment of loans
from third party
|
|
|
-
|
|
|
|
(418,910)
|
|
Borrowings from
related parties
|
|
|
1,385,765
|
|
|
|
-
|
|
Net cash used in
continuing operations
|
|
|
(1,370,402)
|
|
|
|
(1,015,276)
|
|
Net cash provided
by (used in) discontinued operations
|
|
|
-
|
|
|
|
-
|
|
Net cash used in
financing activities
|
|
|
(1,370,402)
|
|
|
|
(1,015,276)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash, cash equivalents and
restricted cash
|
|
|
(2,172,790)
|
|
|
|
(158,923)
|
|
|
|
|
|
|
|
|
|
|
Net (decrease)
increase in cash, cash equivalents and restricted
cash
|
|
|
(224,738)
|
|
|
|
2,769,443
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
|
13,637,817
|
|
|
|
6,271,096
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, end of period
|
|
$
|
13,413,079
|
|
|
$
|
9,040,539
|
|
Less: Cash, cash
equivalents and restricted cash from
discontinued operations
|
|
|
(57,887)
|
|
|
|
(12,858)
|
|
Cash, cash
equivalents and restricted cash from continuing
operations, end of period
|
|
$
|
13,355,192
|
|
|
$
|
9,027,681
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure information:
|
|
|
|
|
|
|
|
|
Income taxes
paid
|
|
$
|
678,227
|
|
|
$
|
-
|
|
Interest
paid
|
|
$
|
160,714
|
|
|
$
|
-
|
|
View original
content:http://www.prnewswire.com/news-releases/tantech-holdings-ltd-announces-interim-financial-results-for-six-months-ended-june-30-2018-300770796.html
SOURCE Tantech Holdings Ltd.