LISHUI, China, Oct. 22, 2021 /PRNewswire/ -- Tantech Holdings Ltd (NASDAQ:TANH) ("Tantech" or the "Company"), a clean energy company in China, today reported its unaudited financial results for the six months ended June 30, 2021.
Mr. Wangfeng Yan, Chief Executive Officer of Tantech, said, "While we continue to have a competitive edge in selling our bamboo-based charcoal products, we have been working hard on the strategic shift in our business from being solely engaged in consumer product sales to expanding into the specialty vehicle market. We have focused on product costs as we have increased operating cash flow for our longer-term growth in the vehicle market. Ongoing COVID-19 challenges, including supply chain and logistics bottlenecks, have added cost and margin pressure in our ongoing consumer business, but we hope to see some stabilization into next year."
"As to our specialty vehicle and electric vehicle (EV) business, we believe our feature-rich, environmentally friendly customizable midibuses present an attractive option for corporate customer as businesses return to normal operations. We have invested heavily in technology advancements for specialty-use EVs rather than the more competitive, domestic general consumer EV market for this reason. We are fully committed to the EV segment, which we expect will be a key long-term growth driver for us. Despite some recent delays in government rebates related to EVs, longer term we expect our specialty EV business will expand with customer demand for a cleaner environment and for zero-emission vehicles. Importantly, we had approximately $40.7 million cash at June 30, 2021, which gives us the ability to fund our growth initiatives and build value for shareholders."
Financial Results For the Six Months Ended | ||||||||||||
($ millions, except per share data and | 2021 | 2020 | Change | |||||||||
Revenues | $ | 20.6 | $ | 22.9 | (9.9) | % | ||||||
Gross profit | $ | 4.0 | $ | 3.1 | 29.3 | % | ||||||
Gross margin | 19.3 | % | 13.4 | % | 5.9 | percentage points | ||||||
Operating expenses | $ | 9.7 | $ | 1.3 | 666.0 | % | ||||||
Net (loss) income attributable to common | $ | (6.6) | $ | 1.2 | (636.8) | % | ||||||
Basic/Diluted (loss) earnings per share | $ | (0.18) | $ | 0.04 | $ | (0.22) | ||||||
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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. 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.
Tantech Holdings Ltd and Subsidiaries | ||||||||
Consolidated Balance Sheets | ||||||||
(Unaudited) | ||||||||
June 30, 2021 | December 31, 2020 | |||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash equivalents* | $ | 40,711,801 | $ | 37,119,195 | ||||
Restricted cash* | - | 220,109 | ||||||
Accounts receivable, net* | 36,369,508 | 34,410,597 | ||||||
Inventories, net* | 420,194 | 671,251 | ||||||
Advances to suppliers, net * | 7,054,987 | 6,854,461 | ||||||
Advances to suppliers – related party | - | 1,533,000 | ||||||
Prepaid taxes* | 1,177,989 | 1,046,667 | ||||||
Prepaid expenses and other receivables, net* | 463,974 | 45,467 | ||||||
Total Current Assets* | 86,198,453 | 81,900,747 | ||||||
Property, plant and equipment, net* | 2,273,629 | 2,477,912 | ||||||
Other Assets | ||||||||
Manufacturing rebate receivable* | 5,815,305 | 5,755,237 | ||||||
Intangible assets, net* | 434,913 | 664,033 | ||||||
Long-term Investment | 25,763,433 | 25,497,316 | ||||||
Total Other Assets* | 32,013,651 | 31,916,586 | ||||||
Total Assets* | $ | 120,485,733 | $ | 116,295,245 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities | ||||||||
Short-term bank loans | $ | 5,313,070 | $ | 5,564,790 | ||||
Bank acceptance notes payable* | - | 1,753,109 | ||||||
Accounts payable* | 2,305,363 | 1,543,994 | ||||||
Due to related parties* | 2,194,460 | 2,019,087 | ||||||
Customer deposits* | 6,167,807 | 3,183,088 | ||||||
Taxes payable* | 1,050,811 | 571,354 | ||||||
Due to third parties | - | 306,600 | ||||||
Accrued liabilities and other payables* | 960,446 | 1,861,835 | ||||||
Total Current Liabilities* | 17,991,957 | 16,803,857 | ||||||
Total Liabilities* | 17,991,957 | 16,803,857 | ||||||
Stockholders' Equity | ||||||||
Common stock, $0.001 par value, 50,000,000 shares authorized, | 42,874 | 35,894 | ||||||
Additional paid-in capital | 57,164,201 | 48,392,181 | ||||||
Statutory reserves | 6,437,506 | 6,437,506 | ||||||
Retained earnings | 38,909,553 | 45,480,031 | ||||||
Accumulated other comprehensive loss | (517,118) | (1,493,070) | ||||||
Total Stockholders' Equity attributable to the Company | 102,037,016 | 98,852,542 | ||||||
Noncontrolling interest | 456,760 | 638,846 | ||||||
Total Stockholders' Equity | 102,493,776 | 99,491,388 | ||||||
Total Liabilities and Stockholders' Equity | $ | 120,485,733 | $ | 116,295,245 | ||||
* please see "Note 3: Variable Interest Entities" in the notes accompanying the unaudited financial | ||||||||
Tantech Holdings Ltd and Subsidiaries | ||||||||
Consolidated Statements of Comprehensive Loss | ||||||||
(Unaudited) | ||||||||
For the Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Revenues | $ | 20,633,188 | $ | 22,889,784 | ||||
Cost of revenues | 16,660,387 | 19,817,263 | ||||||
Gross Profit | 3,972,801 | 3,072,521 | ||||||
Operating expenses | ||||||||
Selling expenses | 122,045 | 201,217 | ||||||
General and administrative expenses | 1,399,295 | 763,945 | ||||||
Share-based compensation | 1,840,000 | - | ||||||
Research and development expenses | 6,351,853 | 302,553 | ||||||
Total operating expenses | 9,713,193 | 1,267,715 | ||||||
(Loss) income from operations | (5,740,392) | 1,804,806 | ||||||
Other income (expenses) | ||||||||
Interest income | 57,374 | 17,962 | ||||||
Interest expense | (137,594) | (184,288) | ||||||
Government subsidy income | 47,033 | 10,926 | ||||||
Rental income from a related party | 67,166 | - | ||||||
Other income, net | 1,796 | 6,593 | ||||||
Total other income (expenses) | 35,775 | (148,807) | ||||||
(Loss) income before provision for income taxes | (5,704,617) | 1,655,999 | ||||||
Provision for income taxes | 1,047,595 | 684,804 | ||||||
Net (loss) income | (6,752,212) | 971,195 | ||||||
Less: net loss attributable to noncontrolling interest | (181,734) | (253,220) | ||||||
Net (loss) income attributable to common stockholders of Tantech | $ | (6,570,478) | $ | 1,224,415 | ||||
Net (loss) income | (6,752,212) | 971,195 | ||||||
Other comprehensive income (loss): | ||||||||
Foreign currency translation adjustment | 975,600 | (1,394,434) | ||||||
Comprehensive loss | (5,776,612) | (423,239) | ||||||
Less: Comprehensive loss attributable to noncontrolling interest | (182,086) | (251,974) | ||||||
Comprehensive loss attributable to common stockholders of | $ | (5,594,526) | $ | (171,265) | ||||
(Loss) earnings per share - Basic and Diluted | $ | (0.18) | $ | 0.04 | ||||
Weighted Average Shares Outstanding - Basic and Diluted | 37,253,764 | 28,872,602 | ||||||
Tantech Holdings Ltd and Subsidiaries | ||||||||
Consolidated Statements of Cash Flows | ||||||||
(Unaudited) | ||||||||
For the Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities | ||||||||
Net (loss) income | $ | (6,752,212) | $ | 971,195 | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) | ||||||||
Depreciation expense | 234,756 | 227,049 | ||||||
Amortization of intangible asset | 235,593 | 216,781 | ||||||
Allowance for doubtful accounts - accounts receivable | 14,395 | - | ||||||
Loss from disposal of property, plant and equipment | - | 2,867 | ||||||
Issuance of common stock for services | 1,840,000 | 33,812 | ||||||
Inventory markdown | 296,702 | - | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (1,611,062) | (4,653,105) | ||||||
Advances to suppliers | (128,735) | 9,607,140 | ||||||
Advances to suppliers - related party | 1,546,000 | (1,422,000) | ||||||
Inventory | (39,140) | (1,317,697) | ||||||
Prepaid expenses and other receivables | (417,223) | 8,280 | ||||||
Accounts payable | 743,811 | 1,032,112 | ||||||
Accrued liabilities and other payables | (917,137) | 232,756 | ||||||
Customer deposits | 2,945,780 | (2,908,226) | ||||||
Taxes payable, net of prepaid taxes | 352,443 | 409,442 | ||||||
Net cash (used in) provided by operating activities | (1,656,029) | 2,440,406 | ||||||
Cash flows from investing activities | ||||||||
Acquisition of property, plant and equipment | (5,086) | (9,524) | ||||||
Proceeds from disposal of property, plant and equipment | - | 21,450 | ||||||
Net cash (used in) provided by investing activities | (5,086) | 11,926 | ||||||
Cash flows from financing activities | ||||||||
Proceeds from equity financing | 6,939,000 | - | ||||||
Repayment of loans from third party | (309,200) | - | ||||||
Bank acceptance notes payable, net of repayment | (1,767,975) | 1,221,327 | ||||||
Proceeds from bank loans | 2,473,600 | 6,652,116 | ||||||
Repayment of bank loans | (2,782,800) | (6,794,316) | ||||||
Proceeds from (repayment of) loans from related parties, net | 161,589 | (557,765) | ||||||
Net cash provided by financing activities | 4,714,214 | 521,362 | ||||||
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 319,398 | (198,016) | ||||||
Net increase in cash, restricted cash and cash equivalents | 3,372,497 | 2,775,678 | ||||||
Cash, restricted cash and cash equivalents, beginning of period | 37,339,304 | 12,645,977 | ||||||
Cash, restricted cash and cash equivalents, end of period | $ | 40,711,801 | $ | 15,421,655 | ||||
Supplemental disclosure information: | ||||||||
Income taxes paid | $ | 709,980 | $ | 28,487 | ||||
Interest paid | $ | 137,594 | $ | 168,560 | ||||
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SOURCE Tantech Holdings Ltd.