China Xiangtai Food Co., Ltd. Reports Financial Results for Fiscal Year 2020
CHONGQING, China, Dec. 21, 2020 /PRNewswire/ -- China Xiangtai Food Co. Ltd. (NASDAQ: PLIN) ("PLIN" or the "Company"), an emerging growth company engaged in the food processing business, today announced its financial results for the fiscal year ended June 30, 2020.
Ms. Zeshu Dai, Chairwoman and Chief Executive Officer of the Company, commented "Our financial results for the fiscal year 2020 reflect the impact brought by the pandemic of the COVID-19, which accordingly led to the full brunt and unpredictability of our business. However, our revenue was still recorded $110.6 million, representing an increase of 11.6% compared to $99.1 million for the fiscal year 2019. Facing the challenging year of 2020, we executed well against our core business initiatives, gained market share in the food industry. completed the acquisition of Chongqing Ji Mao Cang Feed Co., Ltd. in April 2020 and integrated industrial chain. We also explored several opportunities during the year to drive our growth including opening hot pot restaurants, launching new online marketing, expanding hog breeding business in Guangxi Province, etc. We saw very strong signs of recovery in our business from our markets as containment measures of the COVID-19 were eased in China. Besides upgrading and optimizing our current core business, we will also continue to invest in the pillars of our future growth and in capabilities, and various markets that support our expansion and provide the long-term returns to our investors."
For the Years Ended June 30, | |||||
($ millions, except per share data) | 2020 | 2019 | % Change | ||
Revenues | 110.6 | 99.1 | 11.6% | ||
Supermarket and grocery stores | 5.8 | 3.9 | 51.1% | ||
Farmers' market | 80.5 | 95.2 | -15.5% | ||
Feed raw material | 24.3 | - | 100.0% | ||
Gross profit | 7.2 | 8.7 | -17.0% | ||
Gross margin | 6.5% | 8.7% | -2.2pp | ||
Income from operations | 0.5 | 6.1 | -91.5% | ||
Net (loss) income attributable to the Company | (4.9) | 4.4 | NM | ||
(Loss) Earnings per share from continuing operations | (0.14) | 0.24 | NM | ||
*Notes: pp represents percentage points
Fiscal Year 2020 Financial Highlights (all comparable to the prior year period):
- Total revenues were $110.6 million, an increase of 11.6% from $99.1 million in fiscal year 2019.
- Gross profit was $7.2 million, a decrease of 17.0% from $8.7 million in fiscal year 2019.
- Gross margin was 6.5%, a decreased of 2.2 percentage points from 8.7% in fiscal year 2019.
- Net loss attributable to the Company was $4.9 million, compared with net income attributable to the Company of $4.4 million in fiscal year 2019.
- Basic and diluted loss per share from continuing operations were $0.14, compared with basic and diluted earnings per share from continuing operations of $0.24 in fiscal year 2019.
Fiscal Year 2020 Financial Results
Revenues
Total revenues increased by $11.5 million, or 11.6%, to $110.6 million in fiscal year 2020, from $99.1 million in fiscal year 2019. The overall increase was primarily attributable to the increase of our feed raw materials revenues as we purchased Chongqing Ji Mao Cang Feed Co., Ltd.("JMC") on April 3, 2020 which offset by the decrease of farmers' market revenues.
For the Years Ended June 30, | ||||||||||||
2020 | 2019 | |||||||||||
($ millions) | Revenue | Cost of Revenues | Gross Margin | Revenue | Cost of Revenues | Gross Margin | ||||||
Supermarket and grocery stores | 5.8 | 5.0 | 14.9% | 3.9 | 3.3 | 15.6% | ||||||
Farmers' market | 80.5 | 76.2 | 5.3% | 95.2 | 87.2 | 8.5% | ||||||
Feed raw material | 24.3 | 22.2 | 8.4% | - | - | -% | ||||||
Total | 110.6 | 103.4 | 6.5% | 99.1 | 90.4 | 8.7% | ||||||
Revenues from supermarket and grocery stores increased by $2.0 million, or 51.1%, to $5.8 million in fiscal year 2020, from $3.9 million in fiscal year 2019. The outbreak of COVID-19 has shadowed China and general population in many aspects. In order to ensure that consumers' basic living needs are met, supermarkets and grocery stores in various places still operated as usual. However, during the Chinese New Year and the COVID-19 outbreak, many food suppliers have raised product prices due to temporary shortage in the supply, so we had to raise our selling prices as well.
Revenues from farmers' market decreased by $14.7 million, or 15.5%, to $80.5 million in fiscal year 2020, from $95.2 million in fiscal year 2019. Due to the outbreak of COVID-19, the total supply of fresh hogs largely decreased. The decrease was offset by the increase of unit selling price.
Revenues from feed raw material were $24.3 million in fiscal year 2020, compared with nil in fiscal year 2019, resulted from our purchase of the 51% equity interest in JMC on April 3, 2020 and we began to engage in raw feed material and formula solution wholesales business.
Cost of Revenues
Cost of revenues consists of cost of direct materials, labor and manufacturing overhead costs. Total cost of revenues increased by $12.9 million, or 14.3%, to $103.4 million in fiscal year 2020, from $90.4 million in fiscal year 2019.
Cost of supermarket and grocery stores increased by $1.7 million, or 52.4%, to $5.0 million in fiscal year 2020, from $3.3 million in fiscal year 2019. The cost of supermarket and grocery store revenues increased which was in line with the increase of supermarket and grocery store revenues as the purchase price of inventories increased. The increase of the cost of supermarket and grocery store revenues was offset by the depreciation of RMB against U.S. dollar of 2.9%.
Cost of farmers' market decreased by $11.0 million, or 12.6%, to $76.2 million in fiscal year 2020, from $87.2 million in fiscal year 2019. The decrease was mainly caused by the decreased volume at farmers' markets, which was primarily attributable to the decreased revenues brought under the influence of the African swine fever and the COVID-19.
Cost of feed raw material was $22.2 million in fiscal year 2020, compared with nil in fiscal year 2019, resulted from our purchase of the 51% equity interest in JMC on April 3, 2020 and we began to engage in raw feed material and formula solution wholesales business.
Gross Profit
Gross profit decreased by $1.5 million, or 17.0%, to $7.2 million in fiscal year 2020, from $8.7 million in fiscal year 2019. Overall gross margin decreased by 2.2 percentage points to 6.5% in fiscal year 2020, from 8.7% in fiscal year 2019.
Gross margins for supermarket and grocery stores, farmers' market and feed material were 14.9% 5.3% and 8.4%, respectively, in fiscal year 2020. This compared to gross margins for supermarket and grocery stores, farmers' market and feed material of 15.6%, 8.5% and nil, respectively, in fiscal year 2019.
Selling Expenses
Selling expenses increased by $0.2 million, or 44.2%, to $0.8 million in fiscal year 2020, from $0.6 million in fiscal year 2019. The increase in selling expenses was primarily due to the increase of salary expense of approximately $0.1 million and the increase of shipping and stores decoration fees of approximately $0.1 million.
General and Administrative Expenses
General and administrative expenses increased by $2.9 million, or 226.1%, to $4.2 million in fiscal year 2020, from $1.3 million in fiscal year 2019. The increase in general and administrative expenses was primarily due to the increase of salary and insurance expenses of $0.3 million. In addition, the increase also attributable to the increase of business consulting fee of approximately $1.5 million and the promissory note repayment extension penalty of $0.5 million. The increase also attributable to the increase of approximately $0.5 million of legal expense mainly related to our financing and acquisition of JMC activities and the increase of approximately $0.1 million rent expense.
Provision for Doubtful Accounts
Provision for doubtful accounts increased by $26,000, or 3.5%, to $0.8 million in fiscal year 2020, from $0.7 million in fiscal year 2019. The change was due to the fact that we had slightly more accounts receivables aged over 6 months as of June 30, 2020 as compared to June 30, 2019.
Stock Compensation Expenses
We incurred approximately $0.9 million stock compensation expense to pay for certain professional services valued at $650,000 during the year ended June 30, 2020 in connection to the issuance of our ordinary shares in August 2019. We expect this is a one-time expense and we do not expect such expenses will incur in the future period. In addition, we incurred approximately $0.2 million stock compensation expense in relation to the vested portion of the stock options issued to our independent directors. Furthermore, we incurred approximately $67,000 on stock compensation expense in relation to our ordinary shares issued to our business consulting firm for its services performed from March 2020 to June 2020.
Income from Operations
The income from operations decreased by $5.6 million, or 91.5%, to $0.5 million in fiscal year 2020, from $6.1 million in fiscal year 2019. The decrease was mostly attributable to the decrease of farmers' market sales and the increase of selling expenses, general and administrative expenses and stock compensation expense and offset by the increase in supermarket and grocery store sales and feed raw material sales as the reasons that we mentioned above.
Other Income (Expense), Net
Our other expense, net, consists of interest income, interest expense, other finance expense, other income (expense), net, estimated litigation charges and provision for doubtful accounts – security deposit. Total other expense increased by $2.1 million, or 245.6% to $2.9 million in fiscal year 2020, compared to other expenses of $0.8 million in fiscal year 2019. The increase was mainly due to the increase of interest expense of approximately $0.9 million as we incurred more penalty interest charges for bank loans in default for the year ended June 30, 2020. The increase was also due to the amortization costs of convertible debts of approximately $0.4 million for the year ended June 30, 2020. Additionally, we made an allowance of approximately $0.7 million for the security deposit for a loan during the year ended June 30, 2020. The increased other expense, net of approximately $0.1 million was mainly due to the can food donation we made during the outbreak of COVID-19 during the year ended June 30, 2020.
Provision for Income Taxes
Provision for income tax increased by $10,000, or 4.5%, to $0.2 million in fiscal year 2020, from $0.2 million in fiscal year 2019. Under the Income Tax Laws of the PRC, companies are generally subject to income tax at a rate of 25%. The slight increase in provision for income taxes was mainly to JMC which had taxable income during the year ended June 30, 2020.
Net (Loss) Income
Net loss attributable to the Company was $4.9 million in fiscal year 2020, compared with net income attributable to the Company of $4.4 million in fiscal year 2019. Basic and diluted loss per share from continuing operations were $0.14 in fiscal year 2020, compared with basic and diluted earnings per share from continuing operations of $0.24 in fiscal year 2019.
Financial Condition
As of June 30, 2020, the Company had cash and cash equivalents of $1.5 million, compared to $3.2 million as of June 30, 2019. Net cash used in operating activities was $5.9 million in fiscal year 2020, compared to $5.3 million in fiscal year 2019. Net cash provided by investing activities was $0.2 million in fiscal year 2020, compared to $1.2 million in fiscal year 2019. Net cash provided by financing activities was $4.1 million in fiscal year 2020, compared to $6.7 million in fiscal year 2019.
About China Xiangtai Food Co., Ltd.
Headquartered in Chongqing, China, China Xiangtai Food Co., Ltd, is a food company primarily engaged in pork processing. The Company's operations span key sections of the pork processing value chain, including slaughtering, packing, distribution, and wholesale of a variety of fresh pork meat and parts. Primarily focused on pork products, the Company also offers other fresh and processed products, including beef, lamb and poultries. Through the recent acquisition of Chongqing Ji Mao Cang Feed Co., Ltd, the Company has also expanded into the business of feed raw material and feed formula solutions. Through its core values, the Company is committed to maintaining the highest standards of food safety, product quality, and sustainability to provide high-quality, nutritious, and tasty food in a responsible manner through its portfolio of trusted brands. For more information, please visit http://ir.plinfood.com/.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results.
Company Contact
China Xiangtai Food Co., Ltd.
Email: [email protected]
Investor Relations Contact
Ms. Tina Xiao, President
Ascent Investor Relations LLC
Phone: +1-917-609-0333
Email: [email protected]
CHINA XIANGTAI FOOD CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, | June 30, | |||||||
2020 | 2019 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 1,533,237 | $ | 3,196,990 | ||||
Accounts receivable, net | 40,572,757 | 39,522,737 | ||||||
Other receivables, net | 148,894 | 238,383 | ||||||
Prepayments, net | 7,720,452 | 213,596 | ||||||
Security deposits, net | 237,409 | 2,352,742 | ||||||
Current assets of discontinued operations | 63,185 | 174,467 | ||||||
Total current assets | 50,275,934 | 45,698,915 | ||||||
OTHER ASSETS | ||||||||
Plant and equipment, net | 3,455,993 | 3,335,229 | ||||||
Intangible assets, net | 437,989 | 462,738 | ||||||
Goodwill | 5,185,866 | - | ||||||
Operating lease right-of-use assets | 2,725,747 | - | ||||||
Deferred tax assets | 648,768 | - | ||||||
Other receivables | 39,685 | 9,597 | ||||||
Other assets of discontinued operations | 579,452 | 1,844,838 | ||||||
Total other assets | 13,073,500 | 5,652,402 | ||||||
Total assets | $ | 63,349,434 | $ | 51,351,317 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Short-term loans - banks | $ | 4,359,210 | $ | 4,150,309 | ||||
Loans from third parties | 5,013,117 | 2,449,048 | ||||||
Short-term loans - related parties | - | 329,120 | ||||||
Current maturities of long-term loan - bank | 777,558 | - | ||||||
Convertible debenture, net | 4,768,312 | - | ||||||
Accounts payable | 7,510,432 | 8,654,056 | ||||||
Customer deposits | 1,266,073 | 704,354 | ||||||
Customer deposits - related party | 27,395 | 29,643 | ||||||
Other payables and accrued liabilities | 1,942,014 | 420,359 | ||||||
Other payables - related parties | 2,234,980 | 1,245,864 | ||||||
Operating lease liabilities | 49,171 | - | ||||||
Taxes payable | 3,342,127 | 2,974,059 | ||||||
Current liabilities of discontinued operations | 1,445,201 | 1,872,053 | ||||||
Total current liabilities | 32,735,590 | 22,828,865 | ||||||
OTHER LIABILITIES | ||||||||
Long-term loan - bank | - | 866,231 | ||||||
Loans from third parties | 2,074,871 | 3,131,007 | ||||||
Long-term loans - related parties | 713,325 | - | ||||||
Operating lease liabilities - noncurrent | 581,083 | - | ||||||
Other liabilities of discontinued operations | 417,729 | - | ||||||
Total other liabilities | 3,787,008 | 3,997,238 | ||||||
Total liabilities | 36,522,598 | 26,826,103 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Ordinary shares, $0.01 par value, 50,000,000 shares authorized, 23,971,084 and 21,964,027 shares issued and outstanding as of June 30, 2020 and 2019, respectively | 239,711 | 219,640 | ||||||
Additional paid-in capital | 15,765,411 | 11,031,937 | ||||||
Deferred share compensation | (47,708) | - | ||||||
Statutory reserves | 1,670,367 | 1,496,642 | ||||||
Retained earnings | 7,034,899 | 12,085,566 | ||||||
Accumulated other comprehensive loss | (856,218) | (308,571) | ||||||
Total China Xiangtai Food Co., Ltd. shareholders' equity | 23,806,462 | 24,525,214 | ||||||
NONCONTROLLING INTERESTS | 3,020,374 | - | ||||||
Total equity | 26,826,836 | 24,525,214 | ||||||
Total liabilities and shareholders' equity | $ | 63,349,434 | $ | 51,351,317 | ||||
CHINA XIANGTAI FOOD CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the Years Ended June 30, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
REVENUES | ||||||||||||
Supermarket and grocery store | $ | 5,827,319 | $ | 3,856,358 | $ | 3,750,904 | ||||||
Farmers' market | 80,473,936 | 95,222,909 | 97,353,320 | |||||||||
Feed raw material | 24,250,247 | - | - | |||||||||
Total revenues | 110,551,502 | 99,079,267 | 101,104,224 | |||||||||
COST OF REVENUES | ||||||||||||
Supermarket and grocery store | 4,961,552 | 3,256,439 | 3,193,830 | |||||||||
Farmers' market | 76,192,444 | 87,172,588 | 88,258,923 | |||||||||
Feed raw material | 22,219,528 | - | - | |||||||||
Total cost of revenues | 103,373,524 | 90,429,027 | 91,452,753 | |||||||||
GROSS PROFIT | 7,177,978 | 8,650,240 | 9,651,471 | |||||||||
OPERATING EXPENSES: | ||||||||||||
Selling | 794,193 | 550,574 | 708,531 | |||||||||
General and administrative | 4,167,587 | 1,277,820 | 981,347 | |||||||||
Provision for doubtful accounts | 770,192 | 743,986 | 918,940 | |||||||||
Stock compensation expense | 930,223 | - | - | |||||||||
Total operating expenses | 6,662,195 | 2,572,380 | 2,608,818 | |||||||||
INCOME FROM OPERATIONS | 515,783 | 6,077,860 | 7,042,653 | |||||||||
OTHER INCOME (EXPENSE) | ||||||||||||
Interest income | 3,048 | 2,163 | 388,781 | |||||||||
Interest expense | (1,673,563) | (730,780) | (1,282,291) | |||||||||
Other finance expenses | (417,549) | (118,394) | (141,284) | |||||||||
Other (expense) income, net | (89,405) | 9,012 | (18,596) | |||||||||
Provision for doubtful accounts - security deposit | (718,437) | - | - | |||||||||
Provision for doubtful accounts - loan receivable | - | - | (1,506,778) | |||||||||
Total other expense, net | (2,895,906) | (837,999) | (2,560,168) | |||||||||
(LOSS) INCOME BEFORE INCOME TAXES | (2,380,123) | 5,239,861 | 4,482,485 | |||||||||
PROVISION FOR INCOME TAXES | 223,173 | 213,649 | 714,376 | |||||||||
NET (LOSS) INCOME FROM CONTINUING OPERATIONS | (2,603,296) | 5,026,212 | 3,768,109 | |||||||||
NET LOSS FROM DISCONTINUED OPERATIONS | (1,796,237) | (662,621) | - | |||||||||
NET (LOSS) INCOME | (4,399,533) | 4,363,591 | 3,768,109 | |||||||||
Less: Net income attributable to non-controlling interest from continuing operations | 477,409 | - | - | |||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO CHINA XIANGTAI FOOD CO., LTD. | $ | (4,876,942) | $ | 4,363,591 | $ | 3,768,109 | ||||||
NET (LOSS) INCOME | $ | (4,399,533) | $ | 4,363,591 | $ | 3,768,109 | ||||||
OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||
Foreign currency translation adjustment | (559,320) | (267,546) | 133,553 | |||||||||
TOTAL COMPREHENSIVE (LOSS) INCOME | (4,958,853) | 4,096,045 | 3,901,662 | |||||||||
Less: Comprehensive income attributable to non-controlling interests from continuing operations | 465,736 | - | - | |||||||||
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO CHINA XIANGTAI FOOD CO., LTD. | $ | (5,424,589) | $ | 4,096,045 | $ | 3,901,662 | ||||||
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES | ||||||||||||
Basic | 22,417,524 | 20,319,723 | 20,000,000 | |||||||||
Diluted | 22,417,524 | 20,944,951 | 20,083,151 | |||||||||
(LOSS) EARNINGS PER SHARE - BASIC | ||||||||||||
Continuing operations | $ | (0.14) | $ | 0.24 | $ | 0.19 | ||||||
Discontinued operations | $ | (0.08) | $ | (0.03) | $ | - | ||||||
(LOSS) EARNINGS PER SHARE - DILUTED | ||||||||||||
Continuing operations | $ | (0.14) | $ | 0.24 | $ | 0.19 | ||||||
Discontinued operations | $ | (0.08) | $ | (0.03) | $ | - | ||||||
CHINA XIANGTAI FOOD CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended June 30, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net (loss) income | $ | (4,399,533) | $ | 4,363,591 | $ | 3,768,109 | ||||||
Net loss from discontinued operations | (1,796,237) | (662,621) | - | |||||||||
Net (loss) income from continuing operations | (2,603,296) | 5,026,212 | 3,768,109 | |||||||||
Adjustments to reconcile net income to net cash (used in) | ||||||||||||
provided by operating activities: | ||||||||||||
Depreciation and amortization | 508,354 | 521,925 | 542,189 | |||||||||
Provision for doubtful accounts | 1,488,629 | 743,986 | 2,425,718 | |||||||||
Stock compensation expense | 930,223 | - | - | |||||||||
Late payment penalty expense | 500,000 | - | - | |||||||||
Amortization of operating lease right-of-use assets | 73,346 | - | - | |||||||||
Amortization of convertible debenture issuance cost and discount | 357,853 | - | - | |||||||||
Deferred tax (benefit) expense | (166,673) | 213,649 | (126,936) | |||||||||
Change in operating assets and liabilities | ||||||||||||
Accounts receivable | 2,615,184 | (16,864,582) | (12,021,191) | |||||||||
Accounts receivable - related party | - | - | (40,780) | |||||||||
Other receivables | 52,333 | (157,440) | (88,954) | |||||||||
Inventories | 318,478 | 2,647 | 291,594 | |||||||||
Prepayments | (5,556,930) | 93,508 | 209,777 | |||||||||
Security deposits | 1,388,179 | (1,476,090) | - | |||||||||
Loan receivables - interest | - | 727,338 | (384,788) | |||||||||
Accounts payable | (4,206,084) | 5,852,139 | 68,175 | |||||||||
Customer deposits | (3,329,873) | 73,946 | 554,889 | |||||||||
Customer deposits - related party | (1,421) | (723) | 32,049 | |||||||||
Other payables and accrued liabilities | 1,564,210 | 165,216 | 245,373 | |||||||||
Operating lease liabilities | (45,716) | - | - | |||||||||
Taxes payable | 452,831 | 35,087 | 929,745 | |||||||||
Net cash used in operating activities from continuing operations | (5,660,373) | (5,043,182) | (3,595,031) | |||||||||
Net cash used in operating activities from discontinued operations | (251,646) | (224,079) | - | |||||||||
Net cash used in operating activities | (5,912,019) | (5,267,261) | (3,595,031) | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Purchases of plant and equipment | (700,399) | (20,635) | (89,351) | |||||||||
Repayments from loan to third party | - | 1,171,945 | - | |||||||||
Cash received from acquisition of JMC | 859,461 | - | - | |||||||||
Net cash provided by (used in) investing activities from continuing operations | 159,062 | 1,151,310 | (89,351) | |||||||||
Net cash provided by investing activities from discontinued operations | - | 42,234 | - | |||||||||
Net cash provided by (used in) investing activities | 159,062 | 1,193,544 | (89,351) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Repayments from other receivables - related parties, net | - | 741 | 2,736,001 | |||||||||
(Repayments of) proceeds from other payables - related parties, net | (2,028,451) | 701,245 | 609,048 | |||||||||
Proceeds from issuance of ordinary shares through private placements | - | 200,000 | - | |||||||||
Proceeds from issuance of ordinary shares through initial public offering, net | - | 4,395,634 | - | |||||||||
Proceeds from issuance of ordinary shares with redemption rights | - | - | 1,800,000 | |||||||||
Proceeds from short-term loans - banks | 469,288 | 4,535,428 | 6,148,734 | |||||||||
Repayments of short-term loans - banks | (1,137,574) | (4,755,264) | (11,375,158) | |||||||||
Proceeds from short-term loans - third parties | 770,906 | 1,174,453 | 11,134,708 | |||||||||
Repayments of short-term loans - third parties | (1,638,334) | (322,285) | (6,138,861) | |||||||||
Proceeds from short-term loans - related parties | - | 331,075 | - | |||||||||
Proceeds from long-term loan - banks | - | 923,830 | - | |||||||||
Repayments of long-term loan - banks | (64,619) | (1,004,659) | - | |||||||||
Proceeds from long-term loans - third parties | 2,040,691 | - | - | |||||||||
Repayments of long-term loans - third parties | (2,844) | - | - | |||||||||
Proceeds from long-term loans - related parties | 472,132 | - | - | |||||||||
Repayments of long-term loans - related parties | (76,793) | - | - | |||||||||
Repayments of notes payable | - | - | (1,537,184) | |||||||||
Proceeds from convertible debentures, net of issuance costs | 5,480,000 | - | - | |||||||||
Changes in security deposits | (15,069) | 648,828 | 615,426 | |||||||||
Net cash provided by financing activities from continuing operations | 4,269,333 | 6,829,026 | 3,992,714 | |||||||||
Net cash used in financing activities from discontinued operations | (192,325) | (178,500) | - | |||||||||
Net cash provided by financing activities | 4,077,008 | 6,650,526 | 3,992,714 | |||||||||
EFFECT OF EXCHANGE RATE ON CASH | (4,296) | 320,103 | (10,769) | |||||||||
CHANGES IN CASH | (1,680,245) | 2,896,912 | 297,563 | |||||||||
CASH AND CASH EQUIVALENTS, beginning of year | 3,216,005 | 319,093 | 21,530 | |||||||||
CASH AND CASH EQUIVALENTS, end of year | 1,535,760 | 3,216,005 | 319,093 | |||||||||
LESS: CASH AND CASH EQUIVALENTS FROM DISCONTINUED OPERATIONS | 2,523 | 19,015 | - | |||||||||
CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS | $ | 1,533,237 | $ | 3,196,990 | $ | 319,093 | ||||||
SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||||||
Cash paid for income tax | $ | - | $ | - | $ | - | ||||||
Cash paid for interest | $ | 488,360 | $ | 823,551 | $ | 1,389,533 | ||||||
NON-CASH TRANSACTIONS OF INVESTING AND FINANCING ACTIVITIES | ||||||||||||
Other receivable - related party offset with other payable - related party upon execution of the tri-party offset agreement | $ | 1,195,585 | $ | 439,479 | $ | 50,627 | ||||||
Issuance of ordinary shares with redemption rights of mezzanine equity | $ | - | $ | 1,800,000 | $ | - | ||||||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ | 3,240,920 | $ | - | $ | - | ||||||
Issuance of ordinary shares for acquisition | $ | 2,658,909 | $ | - | $ | - | ||||||
Conversion of convertible debenture into ordinary shares | $ | 857,165 | $ | - | $ | - | ||||||
SOURCE China Xiangtai Food Co. Ltd.
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