Highlights (Full Year 2021 Compared to Full Year
2020)
- 30.7% Increase in Revenue to $55.3
Million
- 133.0% Increase in Gross Profit to $10.4 Million
- 8.3 Percentage Point Expansion in Gross Margin
- $105.8 Million Current Asset
Balance with $21.8 Million in Current
Liabilities at December 31, 2021,
with a $7.2 Million Market
Capitalization at July 12,
2022
LISHUI, China, July 18,
2022 /PRNewswire/ -- Tantech Holdings Ltd (NASDAQ:
TANH) ("Tantech" or the "Company"), a clean energy company, today
reported its audited financial results for the twelve months ended
December 31, 2021.
Mr. Wangfeng Yan, Chief Executive Officer of Tantech, said, "We
achieved a record 30.7% increase in revenue to $55.3 million for the full year 2021 compared to
the full year 2020. On top of that we drove a 133.0% increase in
gross profit to 10.4 million, with an 8.3 percentage point
expansion in gross margin. Our results are even more impressive
given our team's ability to execute and remain focused in the face
of the COVID-19 pandemic and closures in China, and global supply chain challenges.
This impacted our profitability in 2021 and continues to in 2022
but we are working diligently with our supply chain partners to
mitigate costs, secure inventory and best support demand from our
customers."
Mr. Wangfeng Yan, Chief Executive Officer of Tantech, continued,
"Overall, we are pleased with our continued execution on multiple
fronts as we drove growth in our core business, made major progress
in the transformation of our EV and specialty vehicles business,
and strengthened our balance sheet. We are excited about
opportunities in the specialty EV market based on customer feedback
and forecasts for specialty EVs, including electric driverless
street sweepers, supported by the global zero-emission vehicle
trend, as well as favorable government policies and support in
terms of subsidies, grants and tax rebates. Domestically,
China has become the largest new
energy vehicle market in the world led by the government's
endorsement and its focus on petroleum resource independence,
environmental protection and the 'Made in China 2025' industrial upgrade. We are already
collaborating with technology companies and consultants on
developing specialty EVs, and plan to invest heavily in this area
in 2022."
"Finally," concluded Mr. Wangfeng Yan, Chief Executive Officer
of Tantech, "the fact that we ended 2021 with a $105.8 million current asset balance with just
$21.8 million in current liabilities
– and our recent market capitalization was just $7.2 million – underscores the significant
opportunity we believe exists to fund our growth initiatives and
build value for shareholders. We are confident that we can achieve
our goal by continuing to successfully execute and delivering
positive proof points on our EV and speciality vehicle business
transformation, while showing a further expansion in revenue and
profit growth."
|
|
Financial
Results
For the Twelve
Months Ended
December 31,
|
|
|
($ millions, except
per share data and percentages)
|
|
2021
|
|
|
2020
|
|
|
Change
|
|
|
Revenues
|
|
$
|
55.3
|
|
|
$
|
42.3
|
|
|
|
30.7
|
%
|
|
Gross profit
|
|
$
|
10.4
|
|
|
$
|
4.5
|
|
|
|
133.0
|
%
|
|
Gross margin
|
|
|
18.9
|
%
|
|
|
10.6
|
%
|
|
|
8.3
|
percentage
points
|
|
Operating
expenses
|
|
$
|
18.9
|
|
|
$
|
14.8
|
|
|
|
27.8
|
%
|
|
Net (loss) income
attributable to common
stockholders of Tantech Holdings Ltd
|
|
$
|
(8.4)
|
|
|
$
|
(6.5)
|
|
|
|
28.2
|
%
|
|
Basic/Diluted (loss)
earnings per share
|
|
$
|
(2.01)
|
|
|
$
|
(2.21)
|
|
|
$
|
(9.0)
|
%
|
- Total revenue increased by approximately $13.0 million, or 30.7%, to approximately
$55.3 million in fiscal 2021 from
approximately $42.3 million in fiscal
2020. The increase was mainly attributable to the significant
increase of our revenues from consumer products due to higher sales
volume from existing and new customers. Revenue from Company's EV
segment increased 382.4% to approximately $1.9 million in fiscal 2021, as compared to
approximately $0.4 million in fiscal
2020, with increased sales of smart electronic sanitation vehicles,
income from the sale of electric specialty vehicles and power
batteries and commission income for electric specialty vehicles
sold on behalf of other manufacturers.
- Our gross profit increased by approximately $6.0 million, or 133.0% to approximately
$10.4 million in fiscal 2021 from
approximately $4.5 million in fiscal
2020. The gross profit margin was 18.9% in fiscal 2021, as compared
to 10.6% in fiscal 2020. On a segment basis, gross margins for
consumer product and EV segments were 18.7% and 24.2%,
respectively, for fiscal 2021, compared to 10.7% and (3.0)%,
respectively, for fiscal 2020. The increase in overall gross margin
was primarily attributable to the higher selling price and lower
unit cost related to consumer product segment and EV
segment.
- Research and development expenses increased by $7.2 million, or 804.8%, to $8.1 million in fiscal 2021 from $0.9 million in fiscal 2020. The increase was
primarily due to the R&D activities in connection with our EV
segment. During fiscal 2021, we increased our investment
significantly for smart electric sanitation vehicles designed to be
used in closed industrial parks and residential communities. We
have successfully manufactured sanitation vehicles and generated
revenue approximately $1.9 million
from EV sales in fiscal year 2021.
- Total operating expenses increased by $4.1 million, or 27.8%, to $18.9 million in fiscal 2021 from $14.8 million in fiscal 2020, which was mainly
due to increases of approximately $7.9
million in general and administrative expense and
$7.2 million in research and
development expenses, offset by a decrease of approximately
$12.0 million in impairment of
intangible assets for fiscal 2021, as compared to of the fiscal
2020.
- Loss before income tax was approximately $8.3 million in fiscal 2021, a decrease of
approximately $2.4 million compared
to a loss of approximately $10.6
million in fiscal 2020. The decrease was primarily
attributable to an increase of approximately $6.0 million in gross profit compared to fiscal
2020.
- As of December 31, 2021, the
Company had cash and restricted cash on hand of approximately
$43.6 million. Current assets were
approximately $105.8 million and
current liabilities were approximately $21.8
million, which resulted in a current ratio of 4.9:1. Total
stockholders' equity as of December 31,
2021 was approximately $112.5
million.
About Tantech Holdings Ltd
For the past decade, Tantech has been a highly specialized
high-tech enterprise producing, researching and developing bamboo
charcoal-based products with an established domestic and
international sales and distribution network. Since 2017, when the
Company acquired 70% of Shangchi Automobile, a vehicle manufacturer
based in Zhangjiagang City, Jiangsu
Province, it has manufactured and sold vehicles. The Company
established two new subsidiaries, Lishui Smart New Energy
Automobile Co., Ltd. and Zhejiang Shangchi New Energy Automobile
Co., Ltd., in November 2020, to
produce and sell street sweepers and other electric vehicles. The
Company is fully ISO 90000 and ISO 14000 certified and has received
a number of national, provincial and local honors, awards and
certifications for its products and scientific research efforts.
The Company's subsidiary, First International Commercial Factoring
(Shenzhen) Co., LTD, is engaged in
commercial factoring for businesses in and related to its supply
chain. In May 2022, the Company
established a wholly-owned subsidiary, EPakia Inc. Based in the
Mid-Atlantic region of the United
States, EPakia plans to develop biodegradable packaging
business in the United States and
other international markets. For more information, please visit:
http://ir.tantech.cn.
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 the sales,
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, except as expressly required by applicable law.
|
Tantech Holdings Ltd
and Subsidiaries
|
|
Consolidated Balance
Sheets
|
|
(audited)
|
|
|
|
For the Twelve
Months Ended
December
31,
|
|
|
2021
|
|
2020
|
|
Assets
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
43,144,049
|
|
$
|
37,119,195
|
|
Restricted
cash
|
|
|
422,832
|
|
|
220,109
|
|
Accounts receivable,
net
|
|
|
44,962,926
|
|
|
34,410,597
|
|
Inventories,
net
|
|
|
1,069,698
|
|
|
671,251
|
|
Due from related
party
|
|
|
10,354,051
|
|
|
-
|
|
Advances to suppliers,
net
|
|
|
3,420,628
|
|
|
6,854,461
|
|
Advances to suppliers
– related party
|
|
|
—
|
|
|
1,533,000
|
|
Prepaid
taxes
|
|
|
1,609,466
|
|
|
1,046,667
|
|
Prepaid expenses and
other receivables, net
|
|
|
824,239
|
|
|
45,467
|
|
Total Current
Assets
|
|
|
105,807,889
|
|
|
81,900,747
|
|
Property, plant and
equipment, net
|
|
|
2,103,947
|
|
|
2,477,912
|
|
|
|
|
|
|
|
|
Other
Assets
|
|
|
|
|
|
|
|
Manufacturing rebate
receivable
|
|
|
—
|
|
|
5,755,237
|
|
Intangible assets,
net
|
|
|
205,971
|
|
|
664,033
|
|
Right of use
assets
|
|
|
313,172
|
|
|
—
|
|
Long-term
Investment
|
|
|
26,096,079
|
|
|
25,497,316
|
|
Total Other
Assets
|
|
|
26,615,222
|
|
|
31,916,586
|
|
Total Assets (Note 3
at VIE)
|
|
$
|
134,527,058
|
|
$
|
116,295,245
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
Short-term bank
loans
|
|
$
|
4,719,552
|
|
$
|
5,564,790
|
|
Bank acceptance notes
payable
|
|
|
—
|
|
|
1,753,109
|
|
Accounts
payable
|
|
|
1,563,787
|
|
|
1,543,994
|
|
Due to related
parties
|
|
|
1,847,421
|
|
|
2,019,087
|
|
Customer
deposits
|
|
|
3,580,622
|
|
|
3,183,088
|
|
Taxes
payable
|
|
|
823,701
|
|
|
571,354
|
|
Loan payable to third
parties
|
|
|
7,002,385
|
|
|
306,600
|
|
Lease
liabilities-current
|
|
|
115,330
|
|
|
—
|
|
Accrued liabilities
and other payables
|
|
|
2,114,258
|
|
|
1,861,835
|
|
Total Current
Liabilities
|
|
|
21,767,056
|
|
|
16,803,857
|
|
Lease liabilities
non-current
|
|
|
223,291
|
|
|
—
|
|
Total
Liabilities
|
|
|
21,990,347
|
|
|
16,803,857
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
Common stock, $0.01
par value, 60,000,000 shares authorized,
6,399,460 and 3,589,409 shares issued and outstanding
as of
December 31, 2021 and 2020, respectively*
|
|
|
63,995
|
|
|
35,894
|
|
Additional paid-in
capital
|
|
|
69,566,786
|
|
|
48,392,181
|
|
Statutory
reserves
|
|
|
6,874,614
|
|
|
6,437,506
|
|
Retained
earnings
|
|
|
36,684,794
|
|
|
45,480,031
|
|
Accumulated other
comprehensive income (loss)
|
|
|
1,071,149
|
|
|
(1,493,070)
|
|
Total Stockholders'
Equity attributable to the Company
|
|
|
114,261,338
|
|
|
98,852,542
|
|
Noncontrolling
interest
|
|
|
(1,724,627)
|
|
|
638,846
|
|
Total Stockholders'
Equity
|
|
|
112,536,711
|
|
|
99,491,388
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
134,527,058
|
|
$
|
116,295,245
|
|
|
*Retroactively restated
for one-for-ten reverse split with effective date of February 25,
2022.
|
|
* please
see "Note 3: Variable Interest Entities" in the notes accompanying
the audited financial statements filed on the Company's
Report of Foreign Private Issuer on Form 20-F dated July 18,
2022.
|
|
Tantech Holdings Ltd
and Subsidiaries
|
|
Consolidated
Statements of Comprehensive Loss
|
|
(audited)
|
|
|
|
For the Twelve
Months Ended
|
|
|
December
31,
|
|
|
2021
|
|
2020
|
|
|
Revenues
|
|
$
|
55,263,673
|
|
$
|
42,283,670
|
|
|
Cost of
revenues
|
|
|
44,832,347
|
|
|
37,807,297
|
|
|
Gross
Profit
|
|
|
10,431,326
|
|
|
4,476,373
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
221,364
|
|
|
977,201
|
|
|
General and
administrative expenses
|
|
|
8,831,407
|
|
|
955,210
|
|
|
Share based
compensation
|
|
|
1,840,000
|
|
|
—
|
|
|
Impairment of goodwill
and intangible asset
|
|
|
—
|
|
|
11,998,606
|
|
|
Research and
development expenses
|
|
|
8,053,400
|
|
|
890,316
|
|
|
Total operating
expenses
|
|
|
18,946,171
|
|
|
14,821,333
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(8,514,845)
|
|
|
(10,344,960)
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
117,735
|
|
|
50,732
|
|
|
Interest
expense
|
|
|
(740,400)
|
|
|
(300,125)
|
|
|
Rental income from
related party
|
|
|
117,958
|
|
|
—
|
|
|
Gain from sale property
to a related party
|
|
|
545,874
|
|
|
—
|
|
|
Other income (loss),
net
|
|
|
210,176
|
|
|
(39,530)
|
|
|
Total other income
(expenses)
|
|
|
251,343
|
|
|
(288,923)
|
|
|
|
|
|
|
|
|
|
|
Loss before income
tax expense
|
|
|
(8,263,502)
|
|
|
(10,633,883)
|
|
|
Income tax expense
(credit)
|
|
|
2,429,480
|
|
|
(611,655)
|
|
|
Net
loss
|
|
|
(10,692,982)
|
|
|
(10,022,228)
|
|
|
Less: net loss
attributable to noncontrolling interest
|
|
|
(2,334,853)
|
|
|
(3,501,808)
|
|
|
Net loss
attributable to common stockholders of Tantech Holdings
Ltd
|
|
$
|
(8,358,129)
|
|
$
|
(6,520,420)
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
|
(10,692,982)
|
|
|
(10,022,228)
|
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
2,535,599
|
|
|
5,892,311
|
|
|
Comprehensive
loss
|
|
|
(8,157,383)
|
|
|
(4,129,917)
|
|
|
Less: Comprehensive
loss attributable to noncontrolling interest
|
|
|
(2,363,473)
|
|
|
(3,707,370)
|
|
|
Comprehensive loss
attributable to common stockholders of
Tantech Holdings Ltd
|
|
$
|
(5,793,910)
|
|
$
|
(422,547)
|
|
|
|
|
|
|
|
|
|
|
Loss per share - Basic
and Diluted*
|
|
$
|
(2.01)
|
|
$
|
(2.21)
|
|
|
Weighted Average Shares
Outstanding - Basic and Diluted Continuing
operations and discontinued operations*
|
|
|
4,148,737
|
|
|
2,956,624
|
|
|
|
*Retroactively restated
for one-for-ten reverse split with effective date of February 25,
2022.
|
|
Tantech Holdings Ltd
and Subsidiaries
|
|
|
Consolidated
Statements of Cash Flows
|
|
|
(audited)
|
|
|
|
|
|
For the Twelve
Months Ended,
|
|
|
|
December
31,
|
|
|
|
2021
|
|
2020
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(10,692,982)
|
|
$
|
(10,022,228)
|
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Allowance (Reversal
of) for doubtful accounts - accounts receivable
|
|
|
(52,789)
|
|
|
(845,416)
|
|
|
Reversal of allowance
for doubtful accounts - advance to suppliers
|
|
|
(142,799)
|
|
|
(378,233)
|
|
|
Write off
manufacturing rebate receivable
|
|
|
5,819,059
|
|
|
—
|
|
|
Reversal of allowance
for doubtful accounts – other receivables
|
|
|
—
|
|
|
(84,573)
|
|
|
Share based
compensation
|
|
|
1,840,000
|
|
|
—
|
|
|
Inventory
reserve
|
|
|
359,501
|
|
|
92,064
|
|
|
Impairment of goodwill
and intangible asset
|
|
|
—
|
|
|
11,998,606
|
|
|
Decrease in deferred
tax liability
|
|
|
—
|
|
|
(1,799,791)
|
|
|
Depreciation
expense
|
|
|
444,462
|
|
|
436,427
|
|
|
Amortization of
intangible asset
|
|
|
472,140
|
|
|
441,489
|
|
|
Amortization of right
of use assets
|
|
|
44,964
|
|
|
—
|
|
|
(Gain) Loss from
disposal of property, plant and equipment
|
|
|
(545,844)
|
|
|
68,614
|
|
|
Issuance of common
stock for service
|
|
|
—
|
|
|
33,812
|
|
|
Contingent
liability
|
|
|
535,389
|
|
|
—
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable -
non-related party
|
|
|
(9,573,463)
|
|
|
8,024,036
|
|
|
Advances to
suppliers
|
|
|
3,694,066
|
|
|
7,093,022
|
|
|
Advances to suppliers
- related party
|
|
|
1,550,000
|
|
|
(1,448,000)
|
|
|
Inventory
|
|
|
(737,552)
|
|
|
(125,492)
|
|
|
Prepaid expenses and
other receivables
|
|
|
(768,288)
|
|
|
133,768
|
|
|
Manufacturing rebate
receivable
|
|
|
|
|
|
2,374,720
|
|
|
Accounts
payable
|
|
|
(16,266)
|
|
|
(206,261)
|
|
|
Accrued liabilities
and other payables
|
|
|
(323,441)
|
|
|
313,552
|
|
|
Customer
deposits
|
|
|
318,875
|
|
|
(3,792,409)
|
|
|
Collection of
receivables from discontinued operations
|
|
|
—
|
|
|
—
|
|
|
Lease
liabilities
|
|
|
(19,824)
|
|
|
—
|
|
|
Taxes
payable
|
|
|
(295,666)
|
|
|
1,863,853
|
|
|
Net cash (used in)
provided by operating activities
|
|
|
(8,090,458)
|
|
|
14,171,560
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Acquisition of
property, plant and equipment
|
|
|
(220,308)
|
|
|
(144,806)
|
|
|
Proceeds from disposal
of property, plant and equipment
|
|
|
748,612
|
|
|
21,842
|
|
|
Additions to
intangible assets
|
|
|
(4,220)
|
|
|
—
|
|
|
Net cash provided by
(used in) investing activities
|
|
|
524,084
|
|
|
(122,964)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Proceeds from loans
from third parties
|
|
|
6,917,589
|
|
|
—
|
|
|
Repayment of loans
from third parties
|
|
|
(310,000)
|
|
|
—
|
|
|
Bank acceptance notes
payable, net of repayment
|
|
|
(1,772,550)
|
|
|
1,448,667
|
|
|
Proceeds from bank
loans
|
|
|
7,774,800
|
|
|
9,568,384
|
|
|
Repayment of bank
loans
|
|
|
(8,738,900)
|
|
|
(11,230,688)
|
|
|
Proceeds from
(repayment of) loans from related parties, net
|
|
|
(10,428,196)
|
|
|
98,474
|
|
|
Proceeds from issuance
of common stock and warrants
|
|
|
19,362,706
|
|
|
9,055,232
|
|
|
Net cash provided
by) financing activities
|
|
|
12,805,449
|
|
|
8,940,069
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash, restricted cash and cash equivalents
|
|
|
988,502
|
|
|
1,704,662
|
|
|
|
|
|
|
|
|
|
|
Net increase in
cash, restricted cash and cash equivalents
|
|
|
6,227,577
|
|
|
24,693,327
|
|
|
|
|
|
|
|
|
|
|
Cash, restricted
cash and cash equivalents, beginning of year
|
|
|
37,339,304
|
|
|
12,645,977
|
|
|
|
|
|
|
|
|
|
|
Cash, restricted
cash and cash equivalents, end of year
|
|
$
|
43,566,881
|
|
$
|
37,339,304
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure information:
|
|
|
|
|
|
|
|
|
Income taxes
paid
|
|
$
|
2,278,134
|
|
$
|
436,566
|
|
|
Interest
paid
|
|
$
|
265,248
|
|
$
|
308,690
|
|
|
|
|
|
|
|
|
|
|
Supplemental
non-cash activities:
|
|
|
|
|
|
|
|
|
Common shares issued
for service
|
|
$
|
1,840,000
|
|
$
|
33,812
|
|
View original
content:https://www.prnewswire.com/news-releases/tantech-reports-full-year-2021-financial-results-301588047.html
SOURCE Tantech Holdings Ltd.
