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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 8, 2022
KANDI TECHNOLOGIES GROUP, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 001-33997 | 90-0363723 | ||
| (State of Incorporation) |
(Commission File Number) | (IRS Employer Identification) |
Jinhua New Energy Vehicle Town
Jinhua, Zhejiang Province
People’s Republic of China
Post Code 321016
(Address of principal executive offices)
(86-579) 8223-9700
Registrant’s telephone number, including area code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| Common Stock | KNDI | NASDAQ Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On August 8, 2022, Kandi Technologies Group, Inc. (the “Company”) issued a press release announcing certain financial results for the quarter ended June 30, 2022. A copy of the press release is attached hereto as Exhibit 99.1.
The information contained in this Item 2.02 is not “filed” for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is not deemed incorporated by reference by any general statements incorporating by reference this report or future filings into any filings under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent the Company specifically incorporates the information by reference.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
| Exhibit No. | Description | |
| 99.1 | Press release dated August 8, 2022 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| KANDI TECHNOLOGIES GROUP, INC. | ||
| Date: August 8, 2022 | By: | /s/ Hu Xiaoming |
| Name: | Hu Xiaoming | |
| Title: | Chief Executive Officer | |
2
Exhibit 99.1
Kandi Technologies Reports Second Quarter 2022 Financial Results
- Off-road Vehicles Sales Are Steadily Growing
- Quarter-end cash balance1 increased to $232.5 million
JINHUA, CHINA-- (August 8, 2022) - Kandi Technologies Group, Inc. (the “Company,” “we” or “Kandi”) (NASDAQ GS: KNDI), today announced its financial results for the second quarter of 2022.
Second Quarter Highlights
| ● | Total revenues of $20.8 million compared to $29.9 million in the same period of 2021. |
| ● | Off-road vehicles sales increased by 84.4% to $10.1 million, compared to $5.5 million in the same period of 2021. |
| ● | EV products sales increased by 307.1% to $2.5 million, compared to $0.6 million in the same period of 2021. |
| ● | EV parts sales were $0.6 million, compared to $6.7 million in the same period of 2021. |
| ● | Electric Scooters, Electric Self-Balancing Scooters and associated parts sales were $1.2 million, compared with $16.5 million in the same period of 2021. |
| ● | Net loss was $1.9 million, or $0.02 loss per fully diluted share, compared to a net income of $40.9 million, or $0.54 income per fully diluted share for the same period of 2021. The decrease was primarily due to the second quarter 2021 gain from the disposal of long-lived assets of approximately $48.3 million, which was related to the relocation of our Jinhua factory. There was no similar gain in the second quarter of 2022. |
| ● | Working capital of $264.2 million as of June 30, 2022 |
| ● | Cash, cash equivalents, restricted cash, and certificate of deposit of $232.5 million as of June 30, 2022 |
Mr. Hu Xiaoming, Chairman and CEO of Kandi commented, “Kandi has continuously refined its business strategy to make our company more diversified and competitive. We saw the positive impact of this effort in the second quarter. Despite frequent lockdowns caused by COVID resurgences and severe supply chain disruptions, our business strategy adjustments enabled us to achieve relatively solid results. Notably, we are getting traction in a variety of newly launched off-road vehicles, such as golf karts, UTVs, ATVs, and beach dune buggy crossovers. For example, the monthly production of golf crossovers increased to 2,000 units in June, from just double digits in March. We intend to launch more new models as the year goes on to capture this market opportunity. We believe this product category could grow around 19%2 annually in compound growth rate, and eventually exceeding $2.2 billion by 2028. We are confident of sequential growth in off-road vehicles in the quarters ahead.”
| 1 | Includes cash, cash equivalents, restricted cash, and certificate of deposit. |
| 2 | Source: The Insight Partners, Electric Off-Road Vehicle Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Vehicle (All-Terain Vehicle (ATV), Special Service Vehicle/Utility Terrain Vehicle (SSV/UTV), and Off-Road Motorcycles), Application (Utility, Sports, Recreation, and Military), and Geography, July 13, 2022. |
Q2 2022 Financial Results
Net Revenues and Gross Profit (in USD millions)
| Q2 2022 | Q2 2021 | Y-o-Y% | ||||||||||
| Net Revenues | $ | 20.8 | $ | 29.9 | -30.2 | % | ||||||
| Gross Profit | $ | 2.7 | $ | 6.1 | -55.4 | % | ||||||
| Gross Margin% | 13.0 | % | 20.4 | % | - | |||||||
Net revenues of $20.8 million in the second quarter of 2022 decreased 30.2% from the same period of 2021. The revenue decline was primarily due to lower sales volumes of Electric Scooters, Electric Self-Balancing Scooters and associated parts and EV parts due to lower seasonal demand. The mix shift to more battery revenue caused the contraction in gross margin.
Operating Income/Loss (in USD millions)
| Q2 2022 | Q2 2021 | Y-o-Y% | ||||||||||
| Operating (Expenses) Income | $ | (9.0 | ) | $ | 38.3 | -123.5 | % | |||||
| (Loss) income from Operations | $ | (6.3 | ) | $ | 44.4 | -114.2 | % | |||||
| Operating Margin% | -30.1 | % | 148.5 | % | - | |||||||
Operating expenses were $9.0 million, compared with operating income of $38.3 million for the same period of 2021. Second quarter 2021 operating income included the $48.3 million gain from the disposal of long-live assets related to our Jinhua facility relocation.
Net Income/Loss (in USD millions)
| Q2 2022 | Q2 2021 | Y-o-Y% | ||||||||||
| Net (loss) Income | $ | (1.9 | ) | $ | 40.9 | -104.6 | % | |||||
| Net (Loss) income per Share, Basic and Diluted | $ | (0.02 | ) | $ | 0.54 | - | ||||||
Net loss for the second quarter of 2022 was $1.9 million compared to net income of $40.9 million for the same period of 2021, reflecting the one-time facility relocation gain last year.
Second Quarter 2022 Conference Call Details
The Company has scheduled a conference call and live webcast to discuss its financial results at 8:00 A.M. Eastern Time (8:00 P.M. Beijing Time) on Monday, August 8, 2022. Management will deliver prepared remarks to be followed by a question-and-answer session.
The dial-in details for the conference call are as follows:
| ● | Toll-free dial-in number: +1-877-407-3982 |
| ● | International dial-in number: + 1-201-493-6780 |
| ● | Webcast and replay: |
https://viavid.webcasts.com/starthere.jsp?ei=1562753&tp_key=ef917a2508
The live audio webcast of the call can also be accessed by visiting Kandi’s Investor Relations page on the Company’s website at http://www.kandivehicle.com. An archive of the webcast will be available on the Company’s website following the live call.
About Kandi Technologies Group, Inc.
Kandi Technologies Group, Inc. (KNDI), headquartered in Jinhua Economic Development Zone, Zhejiang Province, is engaged in the research, development, manufacturing, and sales of various vehicular products. Kandi conducts its primary business operations through its wholly-owned subsidiary, Zhejiang Kandi Technologies Group Co., Ltd. (“Zhejiang Kandi Technologies”), formerly, Zhejiang Kandi Vehicles Co., Ltd. and its subsidiaries including Zhejiang Kandi Smart Battery Swap Technology Co., Ltd, and SC Autosports, LLC (d/b/a Kandi America), the wholly-owned subsidiary of Kandi in the United States, and its wholly-owned subsidiary, Kandi America Investment, LLC. Zhejiang Kandi Technologies has established itself as one of China’s leading manufacturers of pure electric vehicle parts and off-road vehicles.
Safe Harbor Statement
This press release contains certain statements that may include “forward-looking statements.” All statements other than statements of historical fact included herein are “forward-looking statements.” These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on the SEC’s website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the applicable securities laws, the Company does not assume a duty to update these forward-looking statements.
Follow us on Twitter: @ Kandi_Group KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
Contacts:
Kandi Technologies Group, Inc.
Ms. Kewa Luo
+1 (212) 551-3610
IR@kandigroup.com
The Blueshirt Group
Mr. Gary Dvorchak, CFA
gary@blueshirtgroup.com
- Tables Below -
| June 30, 2022 |
December 31, 2021 |
|||||||
| (Unaudited) | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 87,098,779 | $ | 129,223,443 | ||||
| Restricted cash | 72,235,039 | 39,452,564 | ||||||
| Certificate of deposit | 73,173,646 | 55,041,832 | ||||||
| Accounts receivable (net of allowance for doubtful accounts of $2,903,505 and $3,053,277 as of June 30, 2022 and December 31, 2021, respectively) | 37,794,871 | 52,896,305 | ||||||
| Inventories | 41,937,709 | 33,171,973 | ||||||
| Notes receivable | 725,332 | 323,128 | ||||||
| Other receivables | 8,491,785 | 8,901,109 | ||||||
| Prepayments and prepaid expense | 2,516,142 | 17,657,326 | ||||||
| Advances to suppliers | 6,978,469 | 5,940,456 | ||||||
| TOTAL CURRENT ASSETS | 330,951,772 | 342,608,136 | ||||||
| NON-CURRENT ASSETS | ||||||||
| Property, plant and equipment, net | 102,735,918 | 111,577,411 | ||||||
| Intangible assets, net | 11,606,688 | 13,249,079 | ||||||
| Land use rights, net | 3,041,861 | 3,250,336 | ||||||
| Construction in progress | 373,484 | 79,317 | ||||||
| Deferred tax assets | 2,171,889 | 2,219,297 | ||||||
| Long-term investment | 149,334 | 157,262 | ||||||
| Goodwill | 34,678,790 | 36,027,425 | ||||||
| Other long-term assets | 11,166,861 | 10,992,009 | ||||||
| TOTAL NON-CURRENT ASSETS | 165,924,825 | 177,552,136 | ||||||
| TOTAL ASSETS | $ | 496,876,597 | $ | 520,160,272 | ||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable | $ | 32,635,923 | $ | 36,677,802 | ||||
| Other payables and accrued expenses | 8,065,531 | 9,676,973 | ||||||
| Short-term loans | 1,450,000 | 950,000 | ||||||
| Notes payable | 17,933,221 | 8,198,193 | ||||||
| Income tax payable | 629,642 | 1,620,827 | ||||||
| Other current liabilities | 6,086,563 | 7,038,895 | ||||||
| TOTAL CURRENT LIABILITIES | 66,800,880 | 64,162,690 | ||||||
| NON-CURRENT LIABILITIES | ||||||||
| Long-term loans | 2,210,589 | 2,210,589 | ||||||
| Deferred taxes liability | 2,490,130 | 2,460,141 | ||||||
| Contingent consideration liability | 5,513,000 | 7,812,000 | ||||||
| Other long-term liabilities | 880,925 | 314,525 | ||||||
| TOTAL NON-CURRENT LIABILITIES | 11,094,644 | 12,797,255 | ||||||
| TOTAL LIABILITIES | 77,895,524 | 76,959,945 | ||||||
| STOCKHOLDER’S EQUITY | ||||||||
| Common stock, $0.001 par value; 100,000,000 shares authorized; 77,648,730 and 77,385,130 shares issued and 75,760,807 and 76,705,381 outstanding at June 30,2022 and December 31,2021, respectively | 77,649 | 77,385 | ||||||
| Less: Treasury stock (1,887,923 shares with average price of $3.14 and 679,749 shares with average price of $3.52 at June 30,2022 and December 31,2021, respectively ) | (5,937,017 | ) | (2,392,203 | ) | ||||
| Additional paid-in capital | 450,120,903 | 449,479,461 | ||||||
| Accumulated deficit (the restricted portion is $4,422,033 and $4,422,033 at June 30,2022 and December 31,2021, respectively) | (7,769,429 | ) | (4,216,102 | ) | ||||
| Accumulated other comprehensive loss | (18,704,633 | ) | 251,786 | |||||
| TOTAL KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS’ EQUITY | 417,787,473 | 443,200,327 | ||||||
| Non-controlling interests | 1,193,600 | - | ||||||
| TOTAL STOCKHOLDERS’ EQUITY | 418,981,073 | 443,200,327 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 496,876,597 | $ | 520,160,272 | ||||
KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, 2022 |
June 30, 2021 |
June 30, 2022 |
June 30, 2021 |
|||||||||||||
| REVENUES FROM UNRELATED PARTIES, NET | $ | 20,841,183 | $ | 29,875,835 | $ | 45,732,587 | $ | 45,852,002 | ||||||||
| REVENUES FROM THE FORMER AFFILIATE COMPANY AND RELATED PARTIES, NET | - | - | - | 1,587 | ||||||||||||
| REVENUES, NET | 20,841,183 | 29,875,835 | 45,732,587 | 45,853,589 | ||||||||||||
| COST OF GOODS SOLD | (18,122,316 | ) | (23,778,053 | ) | (40,626,557 | ) | (35,401,456 | ) | ||||||||
| GROSS PROFIT | 2,718,867 | 6,097,782 | 5,106,030 | 10,452,133 | ||||||||||||
| OPERATING INCOME (EXPENSE): | ||||||||||||||||
| Research and development | (1,253,843 | ) | (3,564,905 | ) | (2,394,429 | ) | (25,189,502 | ) | ||||||||
| Selling and marketing | (1,172,528 | ) | (1,057,517 | ) | (2,366,227 | ) | (2,204,383 | ) | ||||||||
| General and administrative | (6,574,079 | ) | (5,359,572 | ) | (12,330,610 | ) | (9,789,695 | ) | ||||||||
| Gain on disposal of long-lived assets | - | 48,253,667 | - | 48,253,667 | ||||||||||||
| TOTAL OPERATING (EXPENSE) INCOME | (9,000,450 | ) | 38,271,673 | (17,091,266 | ) | 11,070,087 | ||||||||||
| (LOSS) INCOME FROM OPERATIONS | (6,281,583 | ) | 44,369,455 | (11,985,236 | ) | 21,522,220 | ||||||||||
| OTHER INCOME (EXPENSE): | ||||||||||||||||
| Interest income | 1,378,774 | 974,105 | 2,601,078 | 1,502,697 | ||||||||||||
| Interest expense | (138,433 | ) | (78,069 | ) | (286,577 | ) | (204,417 | ) | ||||||||
| Change in fair value of contingent consideration | (391,000 | ) | (357,000 | ) | 2,299,000 | - | ||||||||||
| Government grants | 463,219 | 114,402 | 707,317 | 349,195 | ||||||||||||
| Gain from sale of equity in the Former Affiliate Company | - | 33,651 | - | 17,733,911 | ||||||||||||
| Share of loss after tax of the Former Affiliate Company | - | (4,904 | ) | - | (2,584,401 | ) | ||||||||||
| Other income, net | 2,373,528 | 3,827,089 | 2,417,310 | 4,325,990 | ||||||||||||
| TOTAL OTHER INCOME , NET | 3,686,088 | 4,509,274 | 7,738,128 | 21,122,975 | ||||||||||||
| (LOSS) INCOME BEFORE INCOME TAXES | (2,595,495 | ) | 48,878,729 | (4,247,108 | ) | 42,645,195 | ||||||||||
| INCOME TAX BENEFIT (EXPENSE) | 719,843 | (7,949,255 | ) | 752,443 | (8,118,441 | ) | ||||||||||
| NET (LOSS) INCOME | (1,875,652 | ) | 40,929,474 | (3,494,665 | ) | 34,526,754 | ||||||||||
| LESS: NET INCOME (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | 61,619 | - | 58,662 | - | ||||||||||||
| NET (LOSS) INCOME ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS | (1,937,271 | ) | 40,929,474 | (3,553,327 | ) | 34,526,754 | ||||||||||
| OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||
| Foreign currency translation adjustment | (19,966,230 | ) | 4,874,815 | (18,956,419 | ) | 3,698,802 | ||||||||||
| COMPREHENSIVE (LOSS) INCOME | $ | (21,841,882 | ) | $ | 45,804,289 | $ | (22,451,084 | ) | $ | 38,225,556 | ||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING BASIC AND DILUTED | 75,863,479 | 75,510,788 | 76,075,484 | 75,447,633 | ||||||||||||
| NET (LOSS) INCOME PER SHARE, BASIC AND DILUTED | $ | (0.02 | ) | $ | 0.54 | $ | (0.05 | ) | $ | 0.46 | ||||||
KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSEDCONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(UNAUDITED)
| Number of Outstanding Shares |
Common Stock |
Treasury Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Accumulated Other Comprehensive Loss |
Non-controlling interests |
Total | |||||||||||||||||||||||||
| Balance, December 31, 2020 | 75,377,555 | $ | 75,377 | $ | - | $ | 439,549,338 | $ | (27,079,900 | ) | $ | (8,778,151 | ) | $ | - | $ | 403,766,664 | |||||||||||||||
| Stock issuance and award | 10,000 | 10 | - | 22,290 | - | - | - | 22,300 | ||||||||||||||||||||||||
| Net loss | - | - | - | - | (6,402,720 | ) | - | - | (6,402,720 | ) | ||||||||||||||||||||||
| Foreign currency translation | - | - | - | - | - | (1,176,013 | ) | - | (1,176,013 | ) | ||||||||||||||||||||||
| Reversal of reduction in the Former Affiliate Company’s equity (net of tax effect of $491,400) | - | - | - | 2,771,652 | - | - | - | 2,771,652 | ||||||||||||||||||||||||
| Balance, March 31, 2021 | 75,387,555 | $ | 75,387 | $ | - | $ | 442,343,280 | $ | (33,482,620 | ) | $ | (9,954,164 | ) | $ | - | $ | 398,981,883 | |||||||||||||||
| Stock issuance and award | 238,600 | 239 | - | 1,374,098 | - | - | - | 1,374,337 | ||||||||||||||||||||||||
| Net income | - | - | - | - | 40,929,474 | - | - | 40,929,474 | ||||||||||||||||||||||||
| Foreign currency translation | - | - | - | - | - | 4,874,815 | - | 4,874,815 | ||||||||||||||||||||||||
| Balance, June 30, 2021 | 75,626,155 | $ | 75,626 | $ | - | $ | 443,717,378 | $ | 7,446,854 | $ | (5,079,349 | ) | $ | - | $ | 446,160,509 | ||||||||||||||||
| Number of Outstanding Shares |
Common Stock |
Treasury Stock |
Additional Paid-in Capital |
Accumulated Earning (Deficit) |
Accumulated Other Comprehensive Income |
Non-controlling interests |
Total | |||||||||||||||||||||||||
| Balance, December 31, 2021 | 77,385,130 | $ | 77,385 | $ | (2,392,203 | ) | $ | 449,479,461 | $ | (4,216,102 | ) | $ | 251,786 | $ | - | $ | 443,200,327 | |||||||||||||||
| Stock issuance and award | 25,000 | 25 | - | 92,925 | - | - | - | 92,950 | ||||||||||||||||||||||||
| Stock buyback | - | - | (1,570,324 | ) | (13,236 | ) | - | - | - | (1,583,560 | ) | |||||||||||||||||||||
| Capital contribution from shareholder | - | - | - | - | - | - | 1,198,398 | 1,198,398 | ||||||||||||||||||||||||
| Net loss | - | - | - | - | (1,616,056 | ) | - | (2,957 | ) | (1,619,013 | ) | |||||||||||||||||||||
| Foreign currency translation | - | - | - | - | - | 1,009,811 | - | 1,009,811 | ||||||||||||||||||||||||
| Balance, March 31, 2022 | 77,410,130 | $ | 77,410 | $ | (3,962,527 | ) | $ | 449,559,150 | $ | (5,832,158 | ) | $ | 1,261,597 | $ | 1,195,441 | $ | 442,298,913 | |||||||||||||||
| Stock issuance and award | 238,600 | 239 | - | 584,331 | - | - | - | 584,570 | ||||||||||||||||||||||||
| Stock buyback | - | - | (1,974,490 | ) | (22,578 | ) | - | - | - | (1,997,068 | ) | |||||||||||||||||||||
| Net income (loss) | - | - | - | - | (1,937,271 | ) | - | 61,619 | (1,875,652 | ) | ||||||||||||||||||||||
| Foreign currency translation | - | - | - | - | - | (19,966,230 | ) | (63,460 | ) | (20,029,690 | ) | |||||||||||||||||||||
| Balance, June 30, 2022 | 77,648,730 | $ | 77,649 | $ | (5,937,017 | ) | $ | 450,120,903 | $ | (7,769,429 | ) | $ | (18,704,633 | ) | 1,193,600 | $ | 418,981,073 | |||||||||||||||
KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| Six Months Ended | ||||||||
| June 30, 2022 |
June 30, 2021 |
|||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net (loss) income | $ | (3,494,665 | ) | $ | 34,526,754 | |||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
| Depreciation and amortization | 6,447,548 | 4,443,218 | ||||||
| Provision (reversal) of allowance for doubtful accounts | 4,301 | - | ||||||
| Deferred taxes | (116,206 | ) | (11,970 | ) | ||||
| Share of loss after tax of the Former Affiliate Company | - | 2,584,401 | ||||||
| Gain from equity sale in the Former Affiliate Company | - | (17,733,911 | ) | |||||
| Gain on disposal of long-lived assets | - | (48,253,667 | ) | |||||
| Change in fair value of contingent consideration | (2,299,000 | ) | - | |||||
| Stock based compensation expense | 639,690 | 1,429,456 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (9,108,858 | ) | 2,054,930 | |||||
| Notes receivable | 1,925,896 | - | ||||||
| Inventories | (9,949,597 | ) | (3,328,120 | ) | ||||
| Other receivables and other assets | (2,806,192 | ) | (14,040,619 | ) | ||||
| Advances to supplier and prepayments and prepaid expenses | 13,475,591 | 20,596,182 | ||||||
| Increase (Decrease) In: | ||||||||
| Accounts payable | 32,751,997 | (1,044,040 | ) | |||||
| Other payables and accrued liabilities | 4,198,349 | (463,016 | ) | |||||
| Notes payable | (7,788,622 | ) | (93,273 | ) | ||||
| Income tax payable | (777,068 | ) | 7,671,740 | |||||
| Net cash provided by (used in) operating activities | $ | 23,103,164 | $ | (11,661,935 | ) | |||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchases of property, plant and equipment, net | (1,491,918 | ) | (6,565,755 | ) | ||||
| Payment for construction in progress | (308,304 | ) | (1,869,028 | ) | ||||
| Proceeds from disposal of long-lived assets | - | 23,234,680 | ||||||
| Repayment from (loan to) third party | - | 31,686,168 | ||||||
| Certificate of deposit | (21,617,615 | ) | (54,098,335 | ) | ||||
| Proceeds from sales of equity in the Former Affiliate Company | - | 23,803,268 | ||||||
| Long-term Investment | - | (108,197 | ) | |||||
| Net cash (used in) provided by investing activities | $ | (23,417,837 | ) | $ | 16,082,801 | |||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from short-term loans | 5,070,582 | 250,000 | ||||||
| Repayments of short-term loans | (4,570,582 | ) | - | |||||
| Contribution from non-controlling shareholder | 787,499 | - | ||||||
| Purchase of treasury stock | (3,580,628 | ) | - | |||||
| Net cash (used in) provided by financing activities | $ | (2,293,129 | ) | $ | 250,000 | |||
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | $ | (2,607,802 | ) | $ | 4,670,866 | |||
| Effect of exchange rate changes | $ | (6,734,387 | ) | $ | 997,982 | |||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | $ | 168,676,007 | $ | 142,520,635 | ||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | $ | 159,333,818 | $ | 148,189,483 | ||||
| -CASH AND CASH EQUIVALENTS AT END OF PERIOD | 87,098,779 | 132,071,957 | ||||||
| -RESTRICTED CASH AT END OF PERIOD | 72,235,039 | 16,117,526 | ||||||
| SUPPLEMENTARY CASH FLOW INFORMATION | ||||||||
| Income taxes paid | $ | 140,831 | 373,433 | |||||
| Interest paid | $ | 102,722 | - | |||||
| SUPPLEMENTAL NON-CASH DISCLOSURES: | ||||||||
| Reversal of decrease in investment in the Former Affiliate Company due to change in its equity (net of tax effect of $491,400) | - | 2,813,968 | ||||||
| Increase of other receivable for equity transfer payment of the Former Affiliate Company | - | 23,803,268 | ||||||
| Contribution from non-controlling shareholder by inventories and fix assets | 393,986 | - | ||||||
7