Exhibit 99.1

 

 

 

pingtan marine enterprise Reports FINANCIAL RESULTS

 

for the fourth quarter and year-ended december 31, 2016

 

Company Reports Fourth Quarter EPS of $0.08; Hits its Previous Provided Guidance of Approximately Break-even To A Slight Profit
Per Diluted Share
; and Reiterates 2017 First Quarter EPS Guidance of between $0.08 and $0.10

 

Company to Hold Conference Call Thursday, March 9, 2017, at 8:30 AM ET

 

FUZHOU, China, March 8, 2017 – 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, 2016.

 

The Company’s recent notable events are as follows:

 

The Company hits its previous announced guidance for 2016 fourth quarter of approximately break-even to a slight profit per diluted share by $0.08 per basic and diluted share.

 

January 17, 2017: The Company announced a cash dividend of $0.01 per share of common stock outstanding, which was paid on or about February 15, 2017 to shareholders of record on January 31, 2017. This marks the ninth consecutive quarterly dividend paid by the Company. The Company intends to continue paying a quarterly dividend and expects to adjust its quarterly dividend rate in accordance with its earnings performance.

 

December 7, 2016: The Company announced that its 4 tuna longline vessels will be put into operation in the international waters of the Pacific Ocean in the first quarter of 2017. 

 

December 1, 2016: The Company announced that it has completed construction on its 2 squid jigging vessels and has commenced fishing activity in the Southwest Atlantic and Southeast Pacific Oceans.

 

November 22, 2016: The Company announced that 13 of its fishing vessels were placed in Indo-Pacific waters according to the Company's previously announced operating plan in August 2016, and have arrived in their fishing designation in Indo-Pacific Waters to be put into operation. 

 

Management Comments

 

Mr. Xinrong Zhuo, Chairman and CEO of the Company, commented, “In 2016 we were dedicated to expanding into new fishing territories, and we have achieved substantial progress in the fourth quarter. Since November 2016, we have deployed 13 of our fishing vessels to the Indo-Pacific waters, 2 large-scaled squid jigging vessels to the international waters of the Pacific and Atlantic Oceans, and 4 tuna longline vessels to the international waters of the Pacific Ocean. Through these efforts, we started to recover our production capacity to about 30%, returned to profitability by the fourth quarter, and finally ended the losses since the moratorium enacted by the Indonesian government. Looking forward, we will continue to focus on expanding our fishing regions to increase harvest volume and enrich product mix and to innovate and integrate our existing resources to further penetrate into mainland areas and the retail market.”

 

 

 

 

Pingtan Marine Enterprise, Ltd. Page 2
   
March 8, 2017  

 

Factors Affecting Pingtan’s Results of Operation – Indonesia Moratorium

 

As previously disclosed in our Forms 10-K and 10-Q filed during 2015 and 2016, in early December 2014 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 fight illegal fishing activities. As a result, all licensed fishing vessels operating in Indonesian waters were informed by the Indonesian government to operate within strict guidelines. To cooperate and comply with the Indonesian government’s fishing license check procedures, since February 2015, Pingtan has ceased operations of its vessels in Indonesian waters. Since the Company derives a majority of its revenue from this area, this 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.

 

Among the Company’s 135 fishing vessels, 13 are operating in Indo-Pacific waters; 12 are operating in the Bay of Bengal in India; 2 are operating in international waters of Southwest Atlantic and Southeast Pacific Oceans; 4 will be deployed to in international waters of Pacific Ocean in the first quarter of 2017, and the remaining vessels are licensed to operate in the Arafura Sea in Indonesia but temporarily not operating due to the Indonesia moratorium.

 

2016 Financial Highlights (all results are compared to prior year):

 

As a result of the above, revenue was $20.5 million, compared to $60.7 million.

 

Gross loss was $8.8 million, compared to $2.8 million, and gross margin was (42.8)% compared to (4.6)%, due to the moratorium described above.

 

Net loss attributable to owners of the Company was $15.5 million, or $(0.20) per basic and diluted share, compared to net income attributable to owners of the Company of $18.4 million, or $0.23 per basic and diluted share. The decrease was primarily due to the same reasons described above.

 

 

 

 

Pingtan Marine Enterprise, Ltd. Page 3
   
March 8, 2017  

 

Fourth Quarter 2016 Financial Highlights (all results are compared to prior year period)

 

As a result of the above, revenue was $13.2 million compared to $14.0 million.

 

Gross profit was $9.9 million compared to gross loss of $8.9 million.

 

Net income attributable to owners of the Company was $6.7 million, or $0.08 per basic and diluted share, compared to net loss attributable to owners of the Company of $9.1 million, or $(0.11) per basic and diluted share. The increase was primarily due to decrease in fuel cost, labor cost and maintenance fee as a result of the moratorium described above, as well as the increase of average unit sale price and the increase in sales volume.

 

Pingtan’s Revenue Break-down By PRC Territories:

 

   Year Ended December 31, 
   2016   2015   2014 
Guangdong province   48%   47%   34%
Fujian province   32%   36%   44%
Zhejiang province   13%   8%   5%
Shandong province   4%   3%   11%
Liaoning province   1%   2%   1%
Other areas   2%   4%   5%
Total   100%   100%   100%

 

2016 Selected Financial Highlights

 

($ in millions,  except share and per share) data )  Three Months ended
December 31,
   Year Ended
December 31,
 
   2016   2015   2016   2015   2014 
                     
Revenue  $13.2   $14.0   $20.5   $60.7   $233.4 
Cost of Revenue   3.3    22.9    29.3    63.5    155.8 
Gross Profit (Loss)   9.9    (8.9)   (8.8)   (2.8)   77.6 
Gross Margin   75.1%   (64.0)%   (42.8)%   (4.6)%   33.2%
Net Income (Loss)   7.3    (9.8)   (16.6)   19.6    85.8 
Basic and Diluted Weighted Average Shares   79.1    79.1    79.1    79.1    79.1 
EPS (in $)  $0.08   $(0.11)   (0.20)  $0.23   $1.08 

   

 

 

 

Pingtan Marine Enterprise, Ltd. Page 4
   
March 8, 2017  

 

Balance Sheet Highlights

 

($ in millions, except for book value per share)  12/31/2016   12/31/2015 
         
Cash and Cash Equivalents  $0.8   $11.4 
Total Current Assets   59.0    91.9 
Total Assets   224.7    231.9 
Total Current Liabilities   64.9    42.4 
Total Long-term Debt, net of current portion   21.9    22.6 
Total Liabilities   86.8    65.0 
Shareholders’ Equity   137.9    166.9 
Total Liabilities and Shareholders’ Equity   224.7    231.9 
Book Value Per Share (in $)  $1.74   $2.11 

 

Consolidated Financial and Operating Review

 

Revenues

 

Revenues for the three months ended December 31, 2016 was $13.2 million compared $14.0 million for the same period in 2015

 

For the year ended December 31, 2016, the Company’s revenues were $20.5 million compared to $60.7 million for the year ended December 31, 2015. 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 was 75.1% for the three months ended December 31, 2016, compared to (64.0)% in the prior year period. The increase was primarily due to significant decrease in cost of revenue, namely fuel cost, labor cost and maintenance fee, as a result of the moratorium described above.

 

The Company’s gross margin was (42.8)% in the fiscal year ended December 31, 2016 compared to (4.6)% in the same period of 2015, the decrease was primarily due to the reduced scale of operations resulting from the moratorium described above.

 

Selling Expenses

 

For the three months ended December 31, 2016, selling expense was $0.7 million compared to $0.5 million, in the prior year period.

 

For the year ended December 31, 2016, total selling expense was $1.2 million compared to $1.9 million in the same period of 2015. The decrease was primarily due to the same reasons described above which resulted in less shipping and handling fees, storage fees, customs service charge and advertising expenses, partially offset by the increase in insurance cost.

 

 

 

 

Pingtan Marine Enterprise, Ltd. Page 5
   
March 8, 2017  

 

General & Administrative Expenses

 

For the three months ended December 31, 2016, general and administrative expense was $0.9 million, compared to $0.4 million in the prior year period.

 

For the fiscal year ended December 31, 2016, total general and administrative expense was $4.0 million compared to $2.9 million in the same period of 2015. The increase was primarily due to increase in depreciation expense, increase in travel for investor conferences, as well as bad debt recovery based on our periodic review of accounts receivable balances and management’s evaluation of the collectability of receivable balances, and increase in other miscellaneous items, partially offset by decrease in professional fees.

 

Net Income (Loss)

 

Net income attributable to owners of the Company for the three months ended December 31, 2016 was $6.7 million, or $0,08 per basic and diluted share, compared to net loss attributable to owners of the Company of $(9.1) million, or $(0.11) per basic and diluted share, in the same period of 2015. The increase was primarily due to significant decrease in cost of revenue, namely fuel cost, labor cost and maintenance fee, as a result of the moratorium described above, as well as the increase of average unit sale price and the increase in sales volume.

 

Net loss attributable to owners of the Company for the year ended December 31, 2016 was $(15.5) million, or $(0.20) per basic and diluted share, compared to net income attributable to owners of the Company of $18.4 million, or $0.23 per basic and diluted share, in the same period of 2015. The decrease was primarily due to the moratorium described above.

 

EPS Guidance for First Quarter 2017

 

Based on the current status of its deployed fleet of fishing vessels and production capacity, the Company reiterates its previously provided 2017 first quarter EPS guidance of between $0.08 and $0.10. 

 

Conference Call Details

 

Pingtan also announced that it will discuss financial results in a conference call Thursday, March 9, 2017 – 8:30 a.m. ET.

 

The dial-in numbers are:

 

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

 

To listen to the live webcast, please go to http://www.ptmarine.com and click on the conference call link at the top of the page, or go to: http://ptmarine.equisolvewebcast.com/q4-2016. This webcast will be archived and accessible through the Company’s website for approximately 30 days following the call.

 

 

 

 

Pingtan Marine Enterprise, Ltd. Page 6
   
March 8, 2017  

 

About Pingtan

 

Pingtan is a global fishing company engaging in ocean fishing through its subsidiary, Fujian Provincial Pingtan County Ocean Fishing Group Co., Ltd., or Pingtan Fishing.

 

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. Such forward looking statements include, but are not limited to, expectations to continue paying quarterly cash dividends and recognizing sales and commencing fishing activities in the first quarter of 2017. Although forward-looking statements reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by us. Consequently, forward-looking statements are inherently subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements. Risks include anticipated growth and growth strategies; need for additional capital and the availability of financing; our ability to successfully manage relationships with customers, distributors and other important relationships; technological changes; competition; demand for our products and services; the deterioration of general economic conditions, whether internationally, nationally or in the local markets in which we operate; legislative or regulatory changes that may adversely affect our business; operational, mechanical, climatic or other unanticipated issues that adversely affect the production capacity of the Company's fishing vessels and their ability to generate expected annual revenue and net income; and other 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. 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 COUNSEL:

 

The Equity Group Inc.

Katherine Yao, Senior Associate

Tel: +86 10 6587 6435

kyao@equityny.com

 

 

 

 

Pingtan Marine Enterprise, Ltd. Page 7
   
March 8, 2017  

 

PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (UNAUDITED)

 

(IN U.S. DOLLARS)

 

   For the three Months Ended 
   December 31,
2016
   December 31,
2015
 
         
REVENUE  $13,152,374   $13,972,382 
           
COST OF REVENUE   3,274,073    22,913,976 
           
GROSS PROFIT(LOSS)   9,878,301    (8,941,594)
           
OPERATING EXPENSES:          
Selling   727,435    548,828 
General and administrative   930,481    386,363 
Total Operating Expenses   1,657,916    935,191 
           
INCOME (LOSS) FROM OPERATIONS          8,220,385    (9,876,785)
           
OTHER INCOME (EXPENSE):          
(Loss) gain on equity method investment   (7,978)   17,845 
Loss from cost method investment   -    (3,820)
Loss on fixed assets disposal   -    (39,557)
Interest income   27,940    4,774 
Interest expenses   (315,595)   (773,684)
Grant income   404,937    1,461,532 
Other income   -    2 
Foreign currency transaction loss   (1,000,663)   (594,302)
           
INCOME (LOSS) BEFORE INCOME TAXES   7,329,026    (9,803,995)
           
INCOME TAXES   -    - 
           
NET INCOME (LOSS)  $7,329,026   $(9,803,995)
           
LESS: NET INCOME (LOSS) ATTRIBUTABLE TO THE NON-CONTROLLING INTEREST   638,807    (719,958)
           
NET INCOME (LOSS)  ATTRIBUTABLE TO OWNERS OF THE COMPANY  $6,690,219   $(9,084,037)
           
COMPREHENSIVE INCOME (LOSS):          
NET INCOME (LOSS)   7,329,026    (9,803,995)
OTHER COMPREHENSIVE LOSS          
Unrealized foreign currency translation loss   (5,379,076)   (2,779,885)
TOTAL COMPREHENSIVE INCOME (LOSS)  $1,949,950   $(12,583,880)
           
LESS: COMPREHENSIVE INCOME (LOSS)  ATTRIBUTABLE TO THE NON-CONTROLLING INTEREST    213,511    (942,077)
           
COMPREHENSIVE INCOME (LOSS)  ATTRIBUTABLE TO OWNERS OF THE COMPANY  $1,736,439   $(11,641,803)
           
NET INCOME  (LOSS)  PER ORDINARY SHARE ATTRIBUTABLE TO OWNERS OF THE COMPNAY          
Basic and diluted earnings per share  $0.08   $(0.11)
           
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING:          
Basic and diluted   79,055,053    79,055,053 

 

 

 

 

Pingtan Marine Enterprise, Ltd. Page 8
   
March 8, 2017  

 

PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME

 

(IN U.S. DOLLARS)

 

   For the Years Ended December 31, 
   2016   2015   2014 
             
REVENUE  $20,540,769   $60,700,190   $233,427,011 
                
COST OF REVENUE   29,328,776    63,476,627    155,840,823 
                
GROSS (LOSS) PROFIT   (8,788,007)   (2,776,437)   77,586,188 
                
OPERATING EXPENSES:               
Selling   1,235,497    1,858,687    2,673,213 
General and administrative   3,969,465    2,933,588    4,537,351 
Total Operating Expenses   5,204,962    4,792,275    7,210,564 
                
(LOSS) INCOME FROM OPERATIONS   (13,992,969)   (7,568,712)   70,375,624 
                
OTHER INCOME (EXPENSE):               
Interest income   31,991    103,668    16,772 
Interest expense   (1,972,267)   (3,630,200)   (4,815,670)
Foreign currency transaction loss   (1,543,357)   (1,308,922)   (258,248)
Grant income   558,451    33,152,698    20,094,039 
Gain from cost method investment   375,396    413,614    348,523 
Loss on equity method investment   (33,073)   (19,700)   - 
Loss on fixed assets disposal   -    (1,583,834)   - 
Other expense   (471)   (210)   (335)
Total Other (Expense) Income, net   (2,583,330)   27,127,114    15,385,081 
                
(LOSS) INCOME BEFORE INCOME TAXES   (16,576,299)   19,558,402    85,760,705 
                
INCOME TAXES   984    -    - 
NET (LOSS) INCOME  $(16,577,283)  $19,558,402   $85,760,705 
                
LESS: NET (LOSS) INCOME ATTRIBUTABLE TO THE NON-CONTROLLING INTEREST   (1,111,685)   1,205,485    - 
NET (LOSS) INCOME ATTRIBUTABLE TO OWNERS OF THE COMPANY  $(15,465,598)  $18,352,917   $85,760,705 
                
COMPREHENSIVE (LOSS) INCOME:               
NET (LOSS) INCOME   (16,577,283)   19,558,402    85,760,705 
OTHER COMPREHENSIVE LOSS               
 Unrealized foreign currency translation loss   (9,207,341)   (8,628,162)   (552,656)
COMPREHENSIVE (LOSS) INCOME  $(25,784,624)  $10,930,240   $85,208,049 
LESS: COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO THE NON-CONTROLLING INTEREST   (1,840,584)   658,092    - 
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO OWNERS OF THE COMPANY  $(23,944,040)  $10,272,148   $85,208,049 
                
NET (LOSS) INCOME PER ORDINARY SHARE ATTRIBUTABLE TO OWNERS OF THE COMPNAY               
Basic and diluted  $(0.20)  $0.23   $1.08 
                
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING:               
Basic and diluted   79,055,053    79,055,053    79,055,053 

 

 

 

 

Pingtan Marine Enterprise, Ltd. Page 9
   
March 8, 2017  

PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(IN U.S. DOLLARS) 

   December 31, 
   2016   2015 
ASSETS        
         
CURRENT ASSETS:        
Cash  $820,396   $11,448,684 
Restricted cash   2,911,922    1,577,642 
Accounts receivable, net of allowance for doubtful accounts   11,322,726    12,575,042 
Inventories, net of reserve for inventories   8,811,111    2,336,167 
Advances to suppliers   3,969,352    35,994,146 
Prepaid expenses   8,145    1,818 
Prepaid expenses - related parties   522,337    4,640,166 
Receivable from transferring equity method investment shares   -    15,406,659 
Other receivables   30,016,198    78,051 
Other receivables - related parties   639,917    7,887,527 
Total Current Assets   59,022,104    91,945,902 
           
OTHER ASSETS:          
Cost method investment   3,027,245    3,235,398 
Equity method investment   28,493,273    30,486,314 
Prepayment for long-term assets   11,913,912    11,654,645 
Property, plant and equipment, net   122,196,594    94,555,114 
Total Other Assets   165,631,024    139,931,471 
Total Assets  $224,653,128   $231,877,373 
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
           
CURRENT LIABILITIES:          
Accounts payable  $916,737   $978,353 
Accounts payable - related parties   2,560,760    408,631 
Short-term bank loans   21,554,636    21,971,438 
Long-term bank loans - current portion   17,298,544    12,679,680 
Accrued liabilities and other payables   4,399,536    5,044,049 
Accrued liabilities and other payables - related party   18,147,152    - 
Due to related parties   43,354    1,384,644 
Total Current Liabilities   64,920,719    42,466,795 
           
OTHER LIABILITIES:          
Long-term bank loans - non-current portion   21,839,412    22,570,755 
Total Liabilities   86,760,131    65,037,550 
           
COMMITMENTS AND CONTINGENCIES          
           
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, 2016 and 2015)   79,055    79,055 
Additional paid-in capital   111,008,085    111,008,085 
Retained earnings   15,690,240    34,318,040 
Statutory reserve   9,391,827    9,391,827 
Accumulated other comprehensive loss   (12,804,793)   (4,326,351)
Total equity attributable to owners of the company   123,364,414    150,470,656 
Non-controlling interest   14,528,583    16,369,167 
           
Total Shareholders' Equity   137,892,997    166,839,823 
Total Liabilities and Shareholders' Equity  $224,653,128   $231,877,373 

 

 

 

Pingtan Marine Enterprise, Ltd. Page 10
   
March 8, 2017  

 

PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(IN U.S. DOLLARS)

 

   For the Years Ended December 31, 
   2016   2015   2014 
             
CASH FLOWS FROM OPERATING ACTIVITIES:            
Net (loss) income  $(16,577,283)  $19,558,402   $85,760,705 
Adjustments to reconcile net (loss) income from operations to net cash (used in) provided by operating activities:               
Depreciation   6,613,720    6,353,055    6,017,886 
(Decrease) increase in allowance for doubtful accounts   (100,366)   (770,195)   1,173,223 
(Decrease) increase in reserve for inventories   (213,255)   227,826    - 
Loss on equity method investment   33,073    19,700    - 
Loss on disposal of fixed assets   -    1,583,834    - 
Changes in operating assets and liabilities:               
Accounts receivable   563,318    37,007,012    (42,134,612)
Inventories   (6,705,933)   9,302,719    (3,150,909)
Advances to suppliers   (145,293)   (37,575,746)   - 
Prepaid expenses   (6,729)   30,633    4,213,938 
Prepaid expenses - related parties   3,988,749    2,382,910    (7,314,375)
Deferred expenses - related parties   -    1,016,039    (1,028,327)
Other receivables   (94,155)   87,907    (156,606)
Accounts payable   1,387    (145,617)   (1,762,518)
Accounts payable - related parties   2,275,069    2,202,515    (8,604,461)
Advances from customers   -    (162,631)   (128,109)
Accrued liabilities and other payables   (334,820)   (266,105)   1,019,221 
Accrued liabilities and other payables - related party   5,732,472    -    - 
Due to related parties   20,000    1,292    23,352 
                
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES   (4,950,046)   40,853,550    33,928,408 
                
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   (1,465,144)   (56,222,226)   (890,897)
Proceeds from government grants for fishing vessels construction   -    -    3,451,914 
Prepayments made for long-term assets   (26,671,132)   -    - 
Payments for equity method investment   -    (40,209,087)   (15,952,598)
Proceeds from transferring equity method investment share   15,055,026    8,041,817    - 
                
NET CASH USED IN INVESTING ACTIVITIES   (13,081,250)   (66,187,228)   (35,862,379)

 

 

 

 

Pingtan Marine Enterprise, Ltd. Page 11
   
March 8, 2017  

 

PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

 

(IN U.S. DOLLARS)

 

   For the Years Ended December 31, 
   2016   2015   2014 
             
CASH FLOWS FROM FINANCING ACTIVITIES:            
Proceeds from short-term bank loans   23,275,729    23,958,292    67,175,414 
Repayments of short-term bank loans   (22,234,749)   (30,989,630)   (45,797,736)
Proceeds from long-term bank loans   18,818,783    -    3,743,977 
Repayments of long-term bank loans   (12,390,286)   (19,963,812)   (19,957,026)
Increase in restricted cash   (1,499,481)   (1,646,964)   - 
Advances from related parties   5,063,620    3,910,000    2,350,000 
Payments made for dividend   (3,162,202)   (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)   - 
                
NET CASH PROVIDED BY FINANCING ACTIVITIES   7,871,414    23,881,357    6,724,079 
                
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS   (468,406)   148,733    (194,435)
                
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS   (10,628,288)   (1,303,588)   4,595,673 
                
CASH AND CASH EQUIVALENTS - beginning of year   11,448,684    12,752,272    8,156,599 
                
CASH AND CASH EQUIVALENTS - end of year  $820,396   $11,448,684   $12,752,272 
                
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:               
Cash paid for:               
Interest  $2,921,417   $3,799,389   $5,648,796 
Income taxes  $984   $-   $- 
                
NON-CASH INVESTING AND FINANCING ACTIVITIES:               
Acquisition of property and equipment by decreasing prepayment for long-term assets  $38,332,421   $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  $6,424,910   $4,900,000   $- 
Increase in prepayment for long-term assets by increasing in accrued liabilities and other payables - related party  $13,219,818   $-   $- 
Reclassification of advances to suppliers to other receivables  $31,172,469   $-   $-