Pingtan Marine Enterprise Reports Financial Results For The Fourth Quarter And Year-Ended December 31, 2015

Company to Hold Conference Call on Thursday, March 10, 2016, at 8:30 AM ET

Mar 09, 2016, 16:05 ET from Pingtan Marine Enterprise Ltd.

FUZHOU, China, March 9, 2016 /PRNewswire/ -- Pingtan Marine Enterprise Ltd. (Nasdaq: PME) ("Pingtan," or the "Company"), a global fishing company based in the People's Republic of China (PRC), today announced financial results for its fourth quarter and year-ended December 31, 2015.

Factors Affecting Pingtan's Results of Operation

As previously disclosed in Form 10-K and 10-Q the Company filed in 2015, the Indonesian government introduced a six-month moratorium on issuing new fishing licenses and renewals so that the country's Ministry of Maritime Affairs and Fisheries ("MMAF") could monitor the operations of existing fleets and to fight illegal fishing activities in early December 2014. As a result, all licensed fishing vessels operating in Indonesian waters have been informed by the Indonesian government to operate within strict guidelines and subsequently to cease operation, in order to avoid potential enforcement actions by the Indonesian Navy such as boat seizures.

Among the 135 fishing vessels, 117 of these vessels operate in the Arafura Sea of Indonesia. To cooperate and comply with the Indonesian government's fishing license check procedures, in January 2015, the Company reduced its operation; and from February 2015, Pingtan temporarily ceased operations of the 117 vessels which are licensed to operate in Indonesian waters.  Since the Company derives a majority of our revenue from this area, this temporary ban caused a significant drop in production.

In November 2015, the Indonesian government announced that the moratorium had concluded. The Company's expectation is that the MMAF will implement new fishing policies and resume the license renewal process although this has not yet occurred. In the interim, the Company's financial results will continue to be materially adversely affected by this moratorium.

As a result, our sales for the three months and year ended December 31, 2015 decreased significantly as compared to the three months and year ended December 31, 2014.

Below is a link to the news release announces the Indonesian government concluded its fishing moratorium from Ministry of Marine Affairs and Fisheries Republic of Indonesia (in Indonesian): http://kkp.go.id/index.php/berita/moratorium-berakhir-menteri-susi-ingatkan-pelaku-usaha-patuhi-aturan/  

2015 Financial Highlights (all results are compared to prior year):

  • As a result of the above, revenue from fishing business was $60.7 million, compared to $233.4 million.
  • Gross loss was $2.8 million, compared to gross profit of $77.6 million, and gross margin was (4.6%) compared to 33.2%, due to the moratorium described above.
  • Net income was $19.6 million, or $0.23 per basic and diluted share, compared to net income of $85.8 million, or $1.08 per basic and diluted share. The decrease was primarily due to the same reasons described above.

Management Commentary

Commenting on the results, Mr. Xinrong Zhuo, Chairman and CEO of the Company, commented, "In 2015 we faced substantial challenges from the moratorium enacted by the Indonesian government, . In November, the Indonesian government concluded the moratorium but has not yet implemented its new fishing policies and authorized fishing resumption in Indonesian waters. As a fully licensed fishing company, we look forward to operating in a more secure and protected environment and to those benefits associated with a more highly regulated market in upcoming months. In 2015, we expanded our fleet with six fishing vessels into Western and Central Pacific Ocean of international waters to focus on higher margined products like tuna and squid. We seek to continue to expand into new fishing territories to help reduce our dependency on a single region, diversify our revenue stream and fulfill the needs of our customers."

Dividend Announcement

  • The Company announced that it has declared a cash dividend of $0.01 per share of common stock outstanding. The dividend will be payable in cash on or about April 15, 2016 to shareholders of record on March 31, 2016. This marks the fifth consecutive quarterly dividend paid by the Company, which it intends to continue paying on a quarterly basis.

2015 Fleet Development

  • The Company expanded its fleet through the purchase of 4 longline fishing vessels and 2 squid jigging vessels for the appraised fair market value of approximately $56.2 million, and the Company's total current fleet has increased to 135 vessels. These vessels are fully licensed in the Western and Central Pacific Ocean of the international waters, and are primarily focused on the catch of tuna and squid. Pingtan currently owns 107 trawlers, 4 longline fishing vessels, 2 squid jigging vessels and 2 drifters and has exclusive operating license rights to 20 drifters.

Pingtan is the second largest China based fishery company operating its vessels outside of China waters and its fleet has an average remaining useful life of approximately 14 years. Among the fishing vessels, 117 of these vessels are licensed to operate in the Arafura Sea in Indonesia, (although such vessels are temporarily not operating in Indonesian waters due to the moratorium discussed below), 12 vessels are operating in the Bay of Bengal in India, and the remaining 6 are operating in the Western and Central Pacific Ocean of international waters.

Currently Pingtan catches nearly 30 different species of fish including ribbon fish, Indian white shrimp, croaker fish, pomfret, Spanish mackerel, conger eel, squid and red snapper. All fish products caught by the Company are shipped and transported to cold storage warehouse facilities to nearby onshore fishing bases. The Company then arranges periodic chartered transportation to deliver the frozen fish to its nine cold storage warehouses located in one of China's largest seafood trading centers, Mawei Seafood Market in Fujian Province.

The Company encourages investors to review detailed information on each vessel (including age of vessel / tonnage capacity) and revenue breakdown from its catch available in its 2015 Annual Report on Form 10-K.

Pingtan's Revenue Break-down By PRC Territories:

Year Ended December 31,

2015

2014

2013

Guangdong province

47%

34%

46%

Fujian province

36%

44%

26%

Zhejiang province

8%

5%

17%

Shandong province

3%

11%

4%

Liaoning province

2%

1%

2%

Other areas

4%

5%

5%

Total

100%

100%

100%

2015 Selected Financial Table

 

($ in millions, except per share data)

 

 

 

Three Months ended December 31,

 

 

Year Ended December 31,

2015

2014

2015

2014

2013

Fishing Business

Revenue

$14.0

$56.5

$61.0

$233.4

$122.7

Cost of Revenue

22.9

37.4

63.5

155.8

75.0

Gross Profit

(8.9)

19.1

(2.8)

77.6

47.7

Gross Profit Margin

(64.0%)

33.8%

(4.6%)

33.2%

38.9%

Net Income from Fishing Business

(9.8)

33.3

19.6

85.8

47.1

Basic and Diluted Weighted Average Shares

79.1

79.1

79.1

79.1

78.8

EPS (from continuing operations) (in $)

(0.12)

$0.42

$0.23

$1.08

$0.60

Balance Sheet Highlights

(in million U.S. dollar except for book value per share)

12/31/2015

12/31/2014

12/31/2013

Cash and Cash Equivalents

$11.4

$12.8

$8.2

Total Current Assets

91.9

105.9

30.7

Total Assets

231.9

249.0

170.1

Total Current Liabilities

42.5

61.1

50.8

Total Long-term Debt, net of current portion

22.6

38.6

54.5

Total Liabilities

65.0

99.7

105.3

Shareholders' Equity

166.9

149.3

64.8

Total Liabilities and Shareholders' Equity

231.9

249.0

170.1

Book Value Per Share (in $)

$2.11

$1.89

$0.82

Consolidated Financial and Operating Review

Revenues

Revenues from the fishing business for the three months ended December 31, 2015 was $14.0 million compared $56.5 million for the same period in 2014. The decrease was primarily due to the Company temporarily ceasing its operations in Indonesia waters since February 2015 resulting from the moratorium described above.

For the year ended December 31, 2015, the Company's revenues from the fishing business were $60.7 million compared to $233.4 million in in the year ended December 31, 2014. The decrease was primarily due to decrease in sales volume resulting from the moratorium described above, as well as the decrease in average unit sale price from the different sales mix.

Gross Margin

The Company's gross margin for fishing business was -64.0% for the three months ended December 31, 2015, compared to 33.8% in the prior year period.  The significant decrease was primarily due to the reduced scale of operations resulting from the moratorium, which is reflected in the allocation of fixed costs, mainly consisting of depreciation and labor costs, to cost of revenue. The ordinary repairs and maintenance fees were incurred in the periods to maintain vessels in operating condition and represent revenue expenditures.

The Company's gross margin for the fishing business was -4.6% in the fiscal year ended December 31, 2015 compare to 33.2% in that of 2014, the decrease was primarily due to the same reasons described above.

Selling Expense

For the three months ended December 31, 2015, selling expense for the fishing business was $0.5 million compared to $0.8 million, in the prior year period.

For the fiscal year ended December 31, 2015, total selling expense was $1.9 million compared to $2.7 million in the same period of 2014. The decrease was primarily due to the same reasons described above which resulting in less storage fees, insurance fees, and shipping and handling fees.

General & Administrative Expense

For the three months ended December 31, 2015, general and administrative expense for the fishing business was $0.4 million, compared to $2.1 million in the prior year period.  

For the fiscal year ended December 31, 2015, total general and administrative expense was $2.9 million compared to $4.5 million in the same period of 2014. The decrease was primarily due to bad debt recovery based on our periodic review of accounts receivable balances and management's evaluation of the collectability of receivable balances.

Net Income

Net loss from the fishing business for the three months ended December 31, 2015 was $9.8 million, or $(0.12) per basic and diluted share, compared to net income of $33.3 million, or $0.42 per basic and diluted share, in the same period of 2014. The decrease was primarily due to all factors described above.

Net income from the fishing business in the year ended December 31, 2015 was $19.6 million, or $0.23 per basic and diluted share, compared to $85.8 million, or $1.08 per basic and diluted share, in the same period of 2014. The decrease was primarily due to the same reasons described above.

Conference Call Details

Pingtan also announced that it will discuss financial results in a conference call on Thursday, March 10, 2016, at 8:30 AM ET.

The dial-in numbers are:

Live Participant Dial In (Toll Free): 877-407-0310 Live Participant Dial In (International): 201-493-6786

The conference call will also be webcast live.  To listen to the call, please go to the Investor Relations section of Pingtan's website at www.ptmarine.com, or click on the following link: http://ptmarine.equisolvewebcast.com/q4-2015.

About Pingtan Marine

Pingtan is a global fishing company, engaging in ocean fishing through its wholly-owned subsidiary, Fujian Provincial Pingtan County Ocean Fishing Group Co., Ltd., or Pingtan Fishing.  Pingtan Fishing primarily engages in ocean fishing with many of its self-owned vessels operating within the Indian Exclusive Economic Zone and other international waters.

Business Risks and Forward-Looking Statements

This press release may contain forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934, including statements that the Company's expectation is that the MMAF will implement new fishing policies, that the Company may achieve benefits associated with operating in a more highly a regulated market in upcoming months and that the Company seeks to expand into new fishing territories to help  reduce its dependency on a single region, diversify its revenue stream and fulfill the needs  of its customers. . Readers are cautioned that actual results could differ materially from those expressed in any forward-looking statements. In addition, please refer to the risk factors contained in Pingtan's SEC filings available at www.sec.gov, including Pingtan's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Definitive Proxy Statement. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. Pingtan undertakes no obligation to update or revise any forward-looking statements for any reason.

CONTACT:

Roy Yu

Chief Financial Officer

Pingtan Marine Enterprise Ltd.

Tel: +86 591 87271753

ryu@ptmarine.net

INVESTOR RELATIONS:

The Equity Group Inc.

In China

Adam Prior, Senior Vice President

Katherine Yao, Senior Associate

Tel: (212) 836-9606

Tel: +86 10 6587 6435

aprior@equityny.com

kyao@equityny.com

 

PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(IN U.S. DOLLARS)

For the three months ended December 31,

2015

2014

Revenue

$ 13,972,382

$  56,517,834

Cost of revenue

(22,913,976)

(37,452,094)

Gross (Loss) Profit

(8,941,594)

19,065,740

Operating expenses:

Selling and marketing expenses

(548,828)

(758,398)

General and administrative expenses

(386,363)

(2,129,981)

Total operating expenses

(935,191)

(2,888,379)

Operating (loss) income

(9,876,785)

16,177,361

Other income (expenses)

Gain on equity method investment

17,845

Investment (loss) gain from cost method investment

(3,820)

141

Loss on fixed assets disposal

(39,557)

Interest income

4,774

2,756

Interest expenses

(773,684)

(1,726,985)

Subsidy income

1,461,532

18,853,497

Sundry income

2

-

 (Loss) Gain on foreign exchange, net

(594,302)

28,328

(Loss) Income from continuing operations before income taxes

(9,803,995)

33,335,098

Income tax expense

-

-

Net (loss) income from continuing operations

$   (9,803,995)

$  33,335,098

NET INCOME FROM DISCONTINUED OPERATIONS, NET OF INCOME TAX

-

-

NET (LOSS) INCOME

(9,803,995)

33,335,098

COMPREHENSIVE INCOME:

   NET (LOSS) INCOME

(9,803,995)

33,335,098

   OTHER COMPREHENSIVE INCOME

       Unrealized Foreign currency translation (loss) gain

(2,779,885)

138,292

   TOTAL COMPREHENSIVE (LOSS) INCOME  

$ (12,583,880)

33,473,390

BASIC AND DILUTED EARNINGS PER SHARE

    From continuing operations

(0.12)

0.42

    From discontinued operations

0.00

0.00

    Net income

(0.12)

0.42

WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING:

    Basic and diluted

79,055,053

79,055,053

 

PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(IN U.S. DOLLARS)

For the Years Ended December 31,

2015

2014

2013

REVENUE

Revenue

$

60,700,190

$

233,427,011

$

112,295,158

Revenue - related party

-

-

10,372,611

Total Revenue

60,700,190

233,427,011

122,667,769

COST OF REVENUE

Cost of revenue

63,476,627

155,840,823

68,403,097

Cost of revenue - related party

-

-

6,580,193

Total Cost of Revenue

63,476,627

155,840,823

74,983,290

GROSS (LOSS) PROFIT

(2,776,437)

77,586,188

47,684,479

OPERATING EXPENSES:

Selling

1,858,687

2,673,213

1,618,278

General and administrative

2,933,588

4,537,351

3,191,637

Total Operating Expenses

4,792,275

7,210,564

4,809,915

(LOSS) INCOME FROM OPERATIONS

(7,568,712)

70,375,624

42,874,564

OTHER INCOME (EXPENSE):

Interest income

103,668

16,772

8,250

Interest expense

(3,630,200)

(4,815,670)

(3,301,696)

Foreign currency transaction (loss) gain

(1,308,922)

(258,248)

144,740

Grant income

33,152,698

20,094,039

7,338,273

Gain from cost method investment

413,614

348,523

69,519

Loss on equity method investment

(19,700)

-

-

Loss on fixed assets disposal

(1,583,834)

-

-

Other (expense) income

(210)

(335)

2,144

Total Other Income (Expense), net

27,127,114

15,385,081

4,261,230

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

19,558,402

85,760,705

47,135,794

INCOME TAXES

-

-

-

NET INCOME FROM CONTINUING OPERATIONS

$

19,558,402

$

85,760,705

$

47,135,794

NET INCOME FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES

-

-

51,910,662

NET INCOME

19,558,402

85,760,705

99,046,456

LESS: NET INCOME ATTRIBUTABLE TO THE NON-CONTROLLING INTEREST

1,205,485

-

-

NET INCOME ATTRIBUTABLE TO OWNERS OF THE COMPANY

$

18,352,917

$

85,760,705

$

99,046,456

COMPREHENSIVE INCOME:

NET INCOME

19,558,402

85,760,705

99,046,456

OTHER COMPREHENSIVE (LOSS) INCOME

Unrealized foreign currency translation (loss) gain

(8,628,162)

(552,656)

8,195,045

COMPREHENSIVE INCOME  

$

10,930,240

$

85,208,049

$

107,241,501

LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO THE NON-CONTROLLING INTEREST

658,092

-

-

COMPREHENSIVE INCOME ATTRIBUTABLE TO OWNERS OF THE COMPANY

$

10,272,148

$

85,208,049

$

107,241,501

BASIC AND DILUTED NET INCOME PER ORDINARY SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY

From continuing operations

$

0.23

$

1.08

$

0.60

From discontinued operations

0.00

0.00

0.66

Total

$

0.23

$

1.08

$

1.26

WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING:

Basic and diluted

79,055,053

79,055,053

78,772,743

 

PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN U.S. DOLLARS)

December 31,

2015

2014

ASSETS

CURRENT ASSETS:

    Cash

$

11,448,684

$

12,752,272

    Restricted cash

1,577,642

-

    Accounts receivable, net of allowance for doubtful accounts

12,575,042

49,999,712

    Inventories, net of reserve for inventories

2,336,167

12,123,405

    Advances to suppliers

35,994,146

-

    Prepaid expenses

1,818

32,913

    Prepaid expenses - related parties

4,640,166

7,319,975

    Deferred expenses - related parties

-

1,029,114

    Receivable from transferring equity method investment shares

15,406,659

-

    Other receivables

78,051

22,656,232

    Other receivables - related parties

7,887,527

-

        Total Current Assets

91,945,902

105,913,623

OTHER ASSETS:

    Cost method investment

3,235,398

3,421,031

    Equity method investment

30,486,314

15,964,812

    Prepayment for long-term assets

11,654,645

13,750,102

    Property, plant and equipment, net

94,555,114

109,980,617

        Total Other Assets

139,931,471

143,116,562

        Total Assets

$

231,877,373

$

249,030,185

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

    Accounts payable

$

978,353

$

1,181,977

    Accounts payable - related party

408,631

2,601,314

    Advances from customers

-

164,724

    Short-term bank loans

21,971,438

30,353,890

    Long-term bank loans - current portion

12,679,680

18,868,616

    Accrued liabilities and other payables

5,044,049

5,602,307

    Due to related parties

1,384,644

2,373,352

        Total Current Liabilities

42,466,795

61,146,180

OTHER LIABILITIES:

    Long-term bank loans - non-current portion

22,570,755

38,625,071

        Total Liabilities

65,037,550

99,771,251

SHAREHOLDERS' EQUITY:

     Equity attributable to owners of the company:

    Ordinary shares ($0.001 par value; 225,000,000 shares authorized; 79,055,053

        shares issued and outstanding at December 31, 2015 and 2014)

79,055

79,055

    Additional paid-in capital

111,008,085

117,525,377

    Retained earnings

17,911,378

21,315,710

    Statutory reserve

25,798,489

6,412,892

    Accumulated other comprehensive (loss) income

(4,326,351)

3,925,900

    Total equity attributable to owners of the company

150,470,656

149,258,934

    Non-controlling interest

16,369,167

-

        Total Shareholders' Equity

166,839,823

149,258,934

        Total Liabilities and Shareholders' Equity

$

231,877,373

$

249,030,185

 

PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN U.S. DOLLARS)

For the Years Ended December 31,

2015

2014

2013

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income from continuing operations

$

19,558,402

$

85,760,705

$

47,135,794

Adjustments to reconcile net income from operations to net cash

provided by operating activities:

Depreciation

6,353,055

6,017,886

2,394,692

(Decrease) increase in allowance for doubtful accounts

(770,195)

1,173,223

-

Increase in reserve for inventories

227,826

-

-

Loss on equity method investment

19,700

-

-

Loss on disposal of fixed assets

1,583,834

-

-

Changes in operating assets and liabilities:

Accounts receivable

37,007,012

(42,134,612)

2,788,320

Notes receivable (banker's acceptances)

-

-

3,745,196

Inventories

9,302,719

(3,150,909)

(8,766,511)

Prepayments made for inventories purchase

(37,575,746)

-

-

Prepaid expenses

30,633

4,213,938

(1,925,477)

Prepaid expenses - related parties

2,382,910

(7,314,375)

-

Deferred expenses - related parties

1,016,039

(1,028,327)

-

Other receivables

87,907

(156,606)

19,201

Accounts payable

(145,617)

(1,762,518)

2,081,172

Accounts payable - related party

2,202,515

(8,604,461)

13,944,394

Advances from customers

(162,631)

(128,109)

292,802

Advances from customers - related parties

-

-

(13,026,770)

Accrued liabilities and other payables

(266,105)

1,019,221

3,583,989

Due to related parties

1,292

23,352

-

NET CASH PROVIDED BY OPERATING ACTIVITIES FROM CONTINUING OPERATIONS

40,853,550

33,928,408

52,266,802

CASH FLOWS FROM INVESTING ACTIVITIES:

Refunds from commercial retail space prepayments

22,202,268

-

-

Prepayments made for acquisition of commercial retail space

-

(22,470,798)

-

Purchase of property, plant and equipment

(16,146)

(890,897)

(257,701,854)

Proceeds from government grants for fishing vessels construction

-

3,451,914

8,320,882

Payment for fishing vessels deposit

-

-

(1,901,220)

Advance to related parties

-

-

(312,569)

Payments for equity method investment

(40,209,087)

(15,952,598)

-

Proceeds from transferring equity method investment share

8,041,817

-

-

Decrease in cash related to sale of subsidiary

-

-

(84,917,899)

NET CASH USED IN INVESTING ACTIVITIES FOR CONTINUING OPERATIONS

(9,981,148)

(35,862,379)

(336,512,660)

 

PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

(IN U.S. DOLLARS)

For the Years Ended December 31,

2015

2014

2013

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from short-term bank loans

23,958,292

67,175,414

43,713,708

Repayments of short-term bank loans

(30,989,630)

(45,797,736)

(64,358,336)

Proceeds from long-term bank loans

-

3,743,977

55,811,568

Repayments of long-term bank loans

(19,963,812)

(19,957,026)

(7,584,023)

Increase in restricted cash

(1,646,964)

-

-

Advances from related parties

3,910,000

2,350,000

(777)

Payments made for dividend

(2,371,652)

(790,550)

-

Capital contribution from non-controlling interest

64,334,540

-

-

Payments made to related parties in connection with the termination of VIE

(13,349,417)

-

-

Acquisition of fishing vessels from relate parties under common control

(56,206,080)

-

-

Cash acquired in recapitalization

-

-

3,565,355

NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (FOR) FROM CONTINUING OPERATIONS

(32,324,723)

6,724,079

31,147,495

CASH FLOWS FROM DISCONTINUED OPERATIONS:

NET CASH PROVIDED BY OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS

-

-

79,605,841

NET CASH PROVIDED BY INVESTING ACTIVITIES FROM DISCONTINUED OPERATIONS

-

-

7,099,979

NET CASH USED IN FINANCING ACTIVITIES FOR DISCONTINUED OPERATIONS

-

-

(407,030)

NET CASH PROVIDED BY DISCONTINUED OPERATIONS

-

-

86,298,790

EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS

148,733

(194,435)

3,032,812

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

(1,303,588)

4,595,673

(163,766,761)

CASH AND CASH EQUIVALENTS - beginning of year

12,752,272

8,156,599

171,923,360

CASH AND CASH EQUIVALENTS - end of year

$

11,448,684

$

12,752,272

$

8,156,599

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Cash paid from continuing operations for:

Interest

$

3,799,389

$

5,648,796

$

4,060,069

Income taxes

$

-

$

-

$

-

Cash paid from discontinued operations for:

Interest

$

-

$

-

$

-

Income taxes

$

-

$

-

$

17,278,643

NON-CASH INVESTING AND FINANCING ACTIVITIES:

Purchase of property and equipment pursuant to capital lease

$

-

$

-

$

26,435,403

Purchase of property and equipment by setting off advance to related parties

$

-

$

-

$

55,064,953

Deposit on setting up equity investment netted of accounts payable - related parties

$

-

$

-

$

6,090,302

Acquisition of property and equipment by decreasing prepayment for long-term assets

$

1,408,636

$

19,750,438

$

-

Property and equipment acquired on credit as payable

$

-

$

790,459

$

-

Decrease in cost of property and equipment by proceeds from government grants

$

-

$

3,451,914

$

-

Decrease in cost of property and equipment by recognition of deferred grant income

$

-

$

512,469

$

-

Decrease in cost of property and equipment by decreasing in accounts payable - related party

$

4,344,190

$

-

$

-

Other receivable increase by transferring equity method investment share

$

16,083,635

$

-

$

-

Offset other receivables – related parties against due to related parties

$

4,900,000

$

-

$

-

 

SOURCE Pingtan Marine Enterprise Ltd.



RELATED LINKS

http://www.ptmarine.com