Exhibit 99.1

 

 

pingtan marine enterprise Reports FINANCIAL RESULTS

 

for the fourth quarter and year ended december 31, 2021

 

Company to Hold Conference Call on

 

Wednesday, May 18, 2022, at 8:30 AM ET

 

FUZHOU, China, May 17, 2022 – Pingtan Marine Enterprise Ltd. (Nasdaq: PME) (“Pingtan” or the “Company”), a fishing company based in the People’s Republic of China (PRC), today announced financial results for its fourth quarter and fiscal year ended December 31, 2021.

 

Fourth Quarter 2021 Financial Highlights (Year over Year Comparison)

 

Revenue was $62.8 million, representing a 102.5% year-over-year increase.

 

Gross loss was $7.4 million, compared to gross loss of $12.0 million, and gross loss margin was 11.8%, compared to gross loss margin of 38.7%.

 

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 $79.7 million, or $(1.00) per basic and diluted share.

 

2021 Financial Highlights (Year over Year Comparison)

 

Revenue was $164.1 million, representing an 88.1% year-over-year increase.

 

Gross loss was $12.6 million, compared to gross loss of $2.4 million, and gross loss margin was 7.7%, compared to gross loss margin of 2.8%.

 

Net loss attributable to owners of the Company was $2.5 million, or $(0.03) per basic and diluted share, compared to net loss attributable to owners of the Company of $72.9 million, or $(0.92) per basic and diluted share.

 

Management Comments

 

Mr. Xinrong Zhuo, Chairman and CEO of the Company, commented, “In 2021, various businesses were challenged by the COVID-19 as it resurged from time to time in many localities across China throughout the year. Despite the overall difficulties, we were able to deliver an 88.1% increase in revenue and a 54.4% increase in sales volumes for 2021. However, due to the market downturn, the company recorded a decreased gross margin for the 2021 fiscal year, albeit a slightly increased gross profit margin in the second half of the year.

 

As such, the management believes that it is necessary to continue to strengthen the Company’s production capacity and all aspects of product sales in the new year. Meanwhile, the management has decided to make certain strategic adjustments, including suspending the construction of the Antarctic krill vessel to recover funds, as well as expediting the modification and rebuilding progress of a new batch of fishing vessels to further increase harvest capacity and volume. The Company has also intensified its efforts to connect with large-scale distributors to improve the delivery speed through online-offline linkage, reduce frozen storage costs and selling expenses, and improve corporate efficiency.”

 

 

 

 

Pingtan Marine Enterprise, Ltd.   Page 2
May 16, 2022    

 

Factors Affecting Pingtan’s Results of Operations

COVID-19 pandemic

 

The COVID-19 pandemic has adversely affected the global economy, our markets in the PRC and our business.

 

In reaction to the pandemic, many provinces and municipalities in the PRC, where our business is currently conducted, activated the highest response to the emergency public health incident. Emergency quarantine measures and travel restrictions have had a significant impact on many sectors across China, which has also adversely affected the Company’s operations. To reduce the impact on its production and operations, the Company has implemented a series of safety measures, and has resumed normal operations since March 2020. Management is focused on mitigating the impact of COVID-19 on its business operations while protecting the employees’ health and safety. The Company will continue to actively monitor the situation and may take further actions that alter its business operations as may be required by local authorities or that the Company determines are in the best interests of its employees, customers, partners, suppliers and other stakeholders.

 

Some of the Company’s customers are fish processing plants that export processed fish products to foreign countries. These customers reduced or postponed their purchases from us and adjusted their business strategies in relation to exportation or domestic sale in light of the development of the pandemic. These changes may cause a decrease in our unit selling price, an increase in inventory and delayed settlement of our accounts receivable. If the economic effects caused by the pandemic continue or increase in the PRC, overall customer demand may continue to decrease, which could have an adverse effect on our business, results of operations and financial condition.

 

The Company anticipates that its results of operations will continue to be affected by this pandemic in fiscal year 2022, as the COVID-19 pandemic has continued to caused disruptions to domestic and global businesses and markets. However, the extent of the impact on the Company’s financial condition and results of operations is still highly uncertain and will depend on future developments, such as the ultimate duration and scope of the pandemic, its continuing impact on our customers, how quickly normal economic conditions, operations, and the demand for the Company’s products can fully resume and whether the pandemic leads to recessionary conditions in the PRC, the United States or globally. As such, the Company may not reasonably estimate the extent of the impact on its full-year results of operations, its liquidity or its overall financial position.

 

The Company’s Fishing Fleet

 

As of December 31, 2021, of the Company’s 142 vessels, 100 were located in international waters, 12 were located in the Bay of Bengal in India, 13 were located in the PRC, and the remaining 17 were located in the Arafura Sea in Indonesia and not in operation.

 

 

 

 

Pingtan Marine Enterprise, Ltd.   Page 3
May 16, 2022    

 

Pingtan’s Revenue Break-down By PRC Provincial Division

   Year Ended December 31, 
   2021   2020   2019 
Fujian province   50%   68%   66%
Shandong province   29%   24%   28%
Zhejiang province   9%   7%   4%
Guangdong province   4%   0%   1%
Liaoning province   3%   0%   0%
Other areas   5%   1%   1%
Total   100%   100%   100%

 

2021 Selected Financial Highlights

 

  

Three Months ended

December 31,

   Years Ended
December 31,
 
($ in millions, except share and per share data)  2021   2020   2021   2020   2019 
Revenue  $62.8   $31.0   $164.1   $87.2   $89.6 
Cost of Revenue  $70.2   $43.0   $176.7   $89.7   $64.4 
Gross (Loss) Profit  $(7.4)  $(12.0)  $(12.6)  $(2.4)  $25.2 
Gross (Loss) Profit Margin   (11.8)%   (38.7)%   (7.7)%   (2.8)%   28.1%
Net (Loss) Income  $7.3   $(85.2)  $(2.4)  $(77.6)  $6.4 
Basic and Diluted Weighted Average Shares Outstanding   85.9    79.3    84.9    79.1    79.1 
EPS (in $)  $0.08   $(1.00)  $(0.04)  $(0.92)  $0.07 

 

Balance Sheet Highlights

 

   As of December 31, 
($ in millions, except for book value per share)  2021   2020 
         
Cash and Cash Equivalents  $5.8   $0.7 
Total Current Assets  $240.4   $114.2 
Total Assets  $576.2   $463.5 
Total Current Liabilities  $243.4   $133.4 
Total Long-term bank loans-non-current  $240.7   $245.1 
Total Liabilities  $484.1   $378.5 
Shareholders’ Equity  $92.1   $85.0 
Total Liabilities and Shareholders’ Equity  $576.2   $463.5 
Book Value Per Share (in $)  $1.08   $1.07 

 

 

 

 

Pingtan Marine Enterprise, Ltd.   Page 4
May 16, 2022    

 

Consolidated Financial and Operating Review

 

Revenue

 

The Company’s revenue for the three months ended December 31, 2021 was $62.8 million, as compared to $31.0 million for the same period of 2020.

 

The Company’s revenue was $164.1 million in 2021, representing an increase of 88.1% from $87.2 million in 2020.

 

In 2021, the Company’s sales volumes increased by 54.4% to 129,993,532 kg from 84,185,002 kg in 2020. The average unit selling price increased by 21.2% from 2020 to 2021. The increase in revenue was mainly attributable to the different sales mix, an increase in the average unit selling price, and the increased sales volume as a result of more vessels were put into operations. 

 

Gross Margin

 

The Company’s gross loss margin was 11.8 % for the three months ended December 31, 2021, as compared to gross loss margin of 38.7% for the same period of 2020.

 

The Company’s gross loss margin was 7.7% in 2021, as compared to gross loss margin of 2.8% in 2020.

 

Selling Expense

 

For the three months ended December 31, 2021, total selling expense was $2.5 million, as compared to $1.6 million for the same period of 2020.

 

In 2021, total selling expense was $7.6 million, as compared to $4.9 million in 2020, representing an increase of 57.4%. The increase was primarily due to the increases in insurance fees, storage fees, customs clearance charges, shipping and handling fees, and miscellaneous selling expense.  

 

General & Administrative Expense

 

For the three months ended December 31, 2021, general and administrative expense was $0.7 million, as compared to $2.0 million for the same period of 2020.

 

In 2021, total general and administrative expense was $6.8 million, as compared to $7.2 million in 2020, representing a decrease of 6.0%, primarily due to a decrease in depreciation expense, partially offset by an increase in professional fees due to the increases in accounting fees and legal fees.

 

Net Income/(Loss)

 

Net income for the three months ended December 31, 2021 was $7.3 million, as compared to net loss of $85.2 million for the same period of 2020.

 

In 2021, net loss was $2.4 million, as compared to net loss of $77.6 million in 2020.

 

Net Income/(Loss) Attributable to Ordinary Shareholders of the Company

 

Net income attributable to ordinary shareholders of the Company for the three months ended December 31, 2021 was $6.7 million, or $0.08 per basic and diluted share, as compared to net loss attributable to ordinary shareholders of the Company of $79.7 million, or $(1.00) per basic and diluted share, for the same period of 2020.

 

Net loss attributable to ordinary shareholders of the Company in 2021 was $2.5 million, or $(0.03) per basic and diluted share, as compared to net loss attributable to ordinary shareholders of the Company of $72.9 million, or $(0.92) per basic and diluted share, in 2020.

 

 

 

 

Pingtan Marine Enterprise, Ltd.   Page 5
May 16, 2022    

 

Conference Call Details

 

Pingtan also announced that it will discuss financial results in a conference call on Wednesday, May 18, 2022 – 8:30 a.m. ET (May 18, 2022, at 8:30 p.m. Beijing Time).

 

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: https://event.choruscall.com/mediaframe/webcast.html?webcastid=XgNdUfYE.html.This webcast will be archived and accessible through the Company’s website for approximately 30 days following the call.

 

About Pingtan

 

Pingtan is a fishing company that engages 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 contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding Pingtan’s business development, financial outlook, beliefs and expectations. Forward-looking statements include statements containing words such as “expect,” “anticipate,” “believe,” “project,” “will” and similar expressions intended to identify forward-looking statements. 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; delays in deploying vessels; conducting fishing operations and locating or re-locating vessels, in foreign waters and related license requirements; actions taken by government regulators, such as the Indonesian moratorium, or reports or allegations of illegal activity by us, related parties or those with which we conduct business; our ability to successfully manage relationships with customers, distributors and other important relationships; technological changes; competition; demand for our products and services; operational, mechanical, climatic or other unanticipated issues; the deterioration of general economic conditions, whether internationally, nationally or in the local markets in which we operate; the impact of the coronavirus (COVID-19) on the Company’s financial condition, business operations and liquidity; the impact of COVID-19 on our customers and distributors global or national health concerns, including the outbreak of pandemic or contagious diseases such as the COVID-19 pandemic; legislative or regulatory changes that may adversely affect our business; 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 and 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, except as required by law.

 

CONTACT:

 

LiMing Yung (Michael)

Chief Financial Officer

Pingtan Marine Enterprise Ltd.

Tel: +86 591 87271753

michaelyung@ptmarine.net

 

Maggie Li
Investor Relations Manager
Pingtan Marine Enterprise Ltd.
Tel: +86 591 8727 1753
mli@ptmarine.net

 

INVESTOR RELATIONS

 

PureRock Communications Limited

PTmarine@pure-rock.com

 

 

 

 

Pingtan Marine Enterprise, Ltd.   Page 6
May 16, 2022    

 

PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)

(IN U.S. DOLLARS)

 

   For the three Months Ended 
   December 31,
2021
   December 31,
2020
 
REVENUE  $62,807,077   $31,022,204 
COST OF REVENUE   70,194,063    43,019,999 
GROSS PROFIT   (7,386,986)   (11,997,795)
           
OPERATING EXPENSES:          
Selling   2,519,748    1,567,947 
General and administrative   987,971    1,216,266 
General and administrative-Depreciation   (310,673)   791,943 
Subsidy   (561,642)   (881,465)
Impairment loss   4,830,150    67,713,324 
Settlement of contract   (26,408,130)   - 
Total Operating Expenses   (18,942,576)   70,408,015 
INCOMEFROM OPERATIONS   11,555,590    (82,405,810)
           
OTHER INCOME (EXPENSE):          
Interest income   298,966    409,734 
Interest expenses   (5,650,377)   (3,560,970)
Foreign currency transaction gain   1,047,466    204,687 
Gain(Loss) from cost method investment   7,518    1,821 
Gain(Loss) on equity method investment   57,081    195,044 
Other expense   2,638    (477)
Total Other Expense, net   (4,236,708)   (2,750,161)
           
LOSSBEFORE INCOME TAXES   7,318,882    (85,155,971)
           
INCOME TAXES   1,749    - 
           
NET INCOME (LOSS)  $7,317,133   $(85,155,971)
           
LESS: NET INCOME (LOSS) ATTRIBUTABLE TO THE NON-CONTROLLING INTEREST   642,211    (5,499,859)
           
NET INCOME (LOSS) ATTRIBUTABLE TO OWNERS OF THE COMPANY  $6,674,922   $(79,656,112)
           
COMPREHENSIVE INCOME:          
NET INCOME/LOSS   7,317,133    (85,155,971)
OTHER COMPREHENSIVE INCOME (LOSS)          
Unrealized foreign currency translation gain (loss)   (187,190)   3,310,552 
TOTAL COMPREHENSIVE INCOME/LOSS  $7,129,943   $(81,845,419)
           
LESS: COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE NON-CONTROLLING INTEREST   625,298    (5,170,963)
           
COMPREHENSIVE INCOME (LOSS)ATTRIBUTABLE TO OWNERS OF THE COMPANY  $6,504,645   $(76,674,456)
           
NET INCOME (LOSS)PER ORDINARY SHARE ATTRIBUTABLE TO OWNERS OF THE COMPNAY          
Basic and diluted earnings per share  $0.08   $(1.00)
           
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING:          
Basic and diluted   85,940,965    79,302,428 

 

 

 

 

Pingtan Marine Enterprise, Ltd.   Page 7
May 16, 2022    

 

PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(IN U.S. DOLLARS)

 

   For the Years Ended December 31, 
   2021   2020   2019 
REVENUE  $164,083,044   $87,240,420   $89,622,156 
                
COST OF REVENUE   176,724,581    89,661,883    64,396,571 
                
GROSS (LOSS)/ PROFIT   (12,641,537)   (2,421,463)   25,225,585 
                
OPERATING EXPENSE (INCOME):               
Selling   7,632,730    4,850,044    2,715,599 
General and administrative   5,892,080    4,091,729    4,163,873 
General and administrative - depreciation   836,142    3,066,522    3,726,061 
Government subsidy   (20,449,471)   (13,660,284)   (6,440,299)
Impairment loss   6,301,373    67,713,324    7,951,635 
Settlement of contract   (26,408,130)   -    - 
(Gain) on fixed assets disposal   -    -    (59,432)
                
Total Operating (Income) Expense, Net   (26,195,276)   66,061,335    12,057,437 
                
INCOME (LOSS) FROM OPERATIONS   13,553,739    (68,482,798)   13,168,148 
                
OTHER INCOME (EXPENSE):               
Interest income   371,695    3,745,611    780,604 
Interest (expense)   (17,371,089)   (13,432,919)   (6,055,310)
Foreign currency transaction gain (loss)   1,231,614    607,674    (298,304)
Dividend income from cost method investment   612,734    135,338    312,727 
(Loss) on the interest sold   -    -    (86,603)
(Loss) on equity method investment   (708,020)   (156,085)   (486,803)
Other (expense)   (74,223)   (35,401)   (954,394)
                
Total Other Expense, net   (15,937,289)   (9,135,782)   (6,788,083)
                
(LOSS) INCOME BEFORE INCOME TAXES   (2,383,550)   (77,618,580)   6,380,065 
                
INCOME TAXES   1,749    -    - 
                
NET (LOSS) INCOME   (2,385,299)   (77,618,580)   6,380,065 
                
LESS: NET (LOSS) INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST   95,420    (4,740,332)   698,041 
                
NET (LOSS) INCOME ATTRIBUTABLE TO OWNERS OF THE COMPANY   (2,480,719)   (72,878,248)   5,682,024 
                
LESS: PREFERRED DIVIDENDS   (640,922)          
                
NET (LOSS) INCOME ATTRIBUTABLE TO ORDINARY SHAREHOLDERS OF THE COMPANY  $(3,121,641)  $(72,878,248)  $5,682,024 
                
COMPREHENSIVE (LOSS) INCOME:               
NET (LOSS) INCOME  $(2,385,299)  $(77,618,580)  $6,380,065 
OTHER COMPREHENSIVE (LOSS) INCOME               
Unrealized foreign currency translation gain (loss)   2,895,972    7,156,773    (2,861,319)
COMPREHENSIVE INCOME (LOSS)   510,673    (70,461,807)   3,518,746 
Less: comprehensive  income (loss) attributable to the non-controlling interest   342,401    (4,095,594)   469,583 
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO OWNERS OF THE COMPANY  $168,272   $(66,366,213)  $3,049,163 
                
NET (LOSS) INCOME PER ORDINARY SHARE;               
Basic and diluted  $(0.03)  $(0.92)  $0.07 
                
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING:               
Basic and diluted   84,906,368    79,121,471    79,055,053 

 

 

 

 

Pingtan Marine Enterprise, Ltd.   Page 8
May 16, 2022    

 

PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(IN U.S. DOLLARS)

 

   December 31, 
   2021   2020 
ASSETS        
CURRENT ASSETS:          
Cash  $5,789,508   $691,933 
Restricted cash   14,831,138    9,912,666 
Accounts receivable, net of allowance for doubtful accounts   26,861,827    31,946,561 
Accounts receivable-related parties   5,660,857    - 
Inventories, net of reserve   54,969,973    67,611,136 
Prepaid expenses   18,559,252    170,706 
Prepaid expenses-related party   -    2,015,357 
Other receivables   113,765,721    1,901,094 
           
Total Current Assets   240,438,276    114,249,453 
           
OTHER ASSETS:          
Cost method investment   3,293,756    3,218,440 
Equity method investment   29,674,764    29,689,813 
Prepayment for long-term assets   30,114,340    66,083,041 
Right-of-use asset   465,016    64,220 
Property, plant and equipment, net   272,249,346    250,155,011 
           
Total Other Assets   335,797,222    349,210,525 
           
Total Assets  $576,235,498   $463,459,978 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
           
CURRENT LIABILITIES:          
Accounts payable  $54,153,711   $18,792,983 
Accounts payable - related parties   4,960,300    9,966,708 
Short-term bank loans   72,305,786    52,414,596 
Long-term bank loans - current   76,856,590    39,987,577 
Accrued liabilities and other payables   27,531,333    12,151,633 
Lease liabilities- current   400,557    32,349 
Due to related parties   7,175,988    18,354 
           
Total Current Liabilities   243,384,265    133,364,200 
           
OTHER LIABILITIES:          
Lease liabilities   32,161    - 
Long-term bank loans - non-current   240,729,193    245,116,088 
           
Total Liabilities   484,145,619    378,480,288 
           
COMMITMENTS AND CONTINGENCIES          
           
SHAREHOLDERS’ EQUITY:          
Equity attributable to owners of the Company:          
Ordinary shares ($0.001 par value; 125,000,000 shares authorized; 85,940,965 and 79,302,428 shares issued and outstanding at December 31, 2021 and 2020, respectively.)   85,941    79,302 
Additional paid-in capital   89,279,792    82,045,993 
(Deficit)   (21,842,858)   (18,594,755)
Statutory reserve   15,878,174    15,751,712 
Accumulated other comprehensive (loss)   (6,919,882)   (9,568,873)
Total equity attributable to owners of the Company   76,481,167    69,713,379 
Non-controlling interest   15,608,712    15,266,311 
Total Shareholders’ Equity   92,089,879    84,979,690 
Total Liabilities and Shareholders’ Equity  $576,235,498   $463,459,978 

 

 

 

 

Pingtan Marine Enterprise, Ltd.   Page 9
May 16, 2022    

 

PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN U.S. DOLLARS)

 

   For the Years Ended December 31, 
   2021   2020   2019 
CASH FLOWS FROM OPERATING ACTIVITIES:               
Net (loss) income  $(2,385,299)  $(77,618,580)  $6,380,065 
Adjustments to reconcile net income from operations to net cash provided by (used in) operating activities:               
Depreciation   16,129,686    14,722,446    11,308,882 
Bad debt expense   178,244    380,866    8,050 
Inventory reserve (reversal)   9,366,467    14,984,980    (142,370)
Loss on equity method investment   708,020    156,085    486,803 
Stock issued for professional fees   -    209,793    - 
Loss on the interest sold   -    -    86,603 
(Gain) on disposal of fixed assets   -    -    (59,432)
Impairment loss   6,301,372    67,713,324    7,943,585 
Settlement of contract   (26,408,129)   -    - 
Changes in operating assets and liabilities:               
Accounts receivable   5,669,874    (21,222,129)   (3,110,730)
Inventories   4,820,618    (48,067,241)   (24,918,904)
Prepaid expenses   (18,341,059)   1,199,764    (727,857)
Prepaid expenses - related parties   2,057,259    (1,906,460)   - 
Due from related parties   (5,646,422)   -    - 
Other receivables   (8,091,258)   (1,177,998)   74,967 
Accounts payable   35,780,524    8,933,807    (22,443,999)
Accounts payable - related parties   (5,226,281)   7,701,504    (1,501,793)
Accrued liabilities and other payables   14,108,415    738,755    5,527,508 
Accrued liabilities and other payables - related party   -    -    (1,290)
Due to related parties   297,678    672,932    (9,483,868)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES   29,319,709    (32,578,152)   (30,573,780)
CASH FLOWS FROM INVESTING ACTIVITIES:               
Prepayment for long-term assets   (54,141,296)   (12,913,191)   (49,592,695)
Purchase of property, plant and equipment   (30,718,417)   (86,611,283)   (118,468,793)
Proceeds from disposal of property, plant and equipment   -    -    72,480 
Proceeds from government grants for fishing vessels construction   18,460,576    29,358,038    35,524,824 
NET CASH (USED IN) INVESTING ACTIVITIES   (66,399,137)   (70,166,436)   (132,464,184)
                
CASH FLOWS FROM FINANCING ACTIVITIES:               
Proceeds from short-term bank loans   72,121,401    93,075,852    10,147,133 
Repayment of short-term bank loans   (53,504,380)   (53,641,846)   (5,062,771)
Proceeds from long-term bank loans   98,315,781    108,821,094    208,023,483 
Repayment of long-term bank loans   (72,571,291)   (58,952,604)   (18,880,916)
Advances from (to) related parties   6,992,000    -    (22,664,328)
Proceeds from Due from related party   -    12,619,964    - 
Proceeds from Issue of Ordinary Shares   4,351,243    -    - 
Proceeds from Issue of Preferred Shares   3,698,273    -    - 
Repayment to related party   (11,913,633)   -    - 
Repurchase shares   (1,450,000)   -    - 
NET CASH PROVIDED BY FINANCING ACTIVITIES   46,039,394    101,922,460    171,562,601 
EFFECT OF EXCHANGE RATE ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH   1,056,081    1,334,522    (399,287)
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH   10,016,047    512,394    8,125,350 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - beginning of period   10,604,599    10,092,205    1,966,855 
CASH, CASH EQUIVALENTS AND RESTRICTED - end of period  $20,620,646   $10,604,599   $10,092,205 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:               
Cash paid for:               
Interest  $17,759,215   $20,549,990   $6,419,569 
Income taxes  $-   $-   $- 
                
RECONCILIATION TO AMOUNTS ON CONSOLIDATED BALANCE SHEETS:               
Cash and cash equivalents  $5,789,508   $691,933   $10,092,205 
Restricted cash   14,831,138    9,912,666    - 
TOTAL CASH, CASH EQUIVALENTS AND RESTRICTED CASH  $20,620,646   $10,604,599   $10,092,205 
NON-CASH INVESTING AND FINANCING ACTIVITIES:               
Acquisition of property and equipment by decreasing prepayment for long-term assets  $37,419,467   $-   $-