Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Cash flows from operating activities      
Net income $ 99,046,456 [1] $ 108,774,696 $ 100,697,586
Discontinued operations, net of tax (51,910,662) [1] (84,494,428) [1] (90,257,249) [1]
Income from continuing operations 47,135,794 24,280,268 10,440,337
Adjustments to reconcile net income to net cash provided by operating activities      
Depreciation of property, plant and equipment 2,394,692 2,677,418 1,917,747
Available-for-sales financial instrument fair value adjustment 0 0 705
Short term investment income 0 (15,860) 0
Changes in operating assets and liabilities      
Accounts receivable - third parties 2,788,320 (10,562,176) 1,627,853
Accounts receivable - related parties 0 4,584,509 (3,426,607)
Notes receivable (banker's acceptances) 3,745,196 0 0
Other receivables 19,201 6,797,156 (323,246)
Prepaid expenses (1,925,477) (218,759) (157,077)
Inventories (8,766,511) 2,397,340 (1,848,587)
Accounts payable - third parties 2,081,172 (43,377) (73,055)
Accounts payable - related parties 13,944,394 3,060,668 (1,423,494)
Receipt in advance 292,802 (1,160,618) 771,142
Accrued liabilities and other payables 3,583,989 777,587 204,254
Net cash provided by operating activities from continuing operations 52,266,802 45,249,230 7,709,972
Cash flows from investing activities      
Payment for long term investment 0 (2,661,766) (649,752)
Proceeds from disposition of / (payment for) short-term investment 0 808,052 (774,220)
Proceeds from deferred income 8,320,882 0 0
Payment for fixed asset deposits (1,901,220) 0 0
Purchase of property, plant and equipment (257,701,854) (33,992,757) (7,086,080)
Advance to related parties (312,569) (41,505,027) (21,574,926)
Decrease in cash related to sale of subsidiary (84,917,899) 0 0
Net cash used in investing activities from continuing operations (336,512,660) (77,351,498) (30,084,978)
Cash flows from financing activities      
Proceeds from short-term loans 43,713,708 51,384,055 21,337,156
Repayment of short-term loans (64,358,336) (48,079,121) (10,055,693)
Proceeds from long-term loans 55,811,568 26,617,656 0
Repayment of long-term loans (7,584,023) (1,845,808) 0
Cash acquired in recapitalization 3,565,355 0  
Advance from related parties, net of reception in form of note receivable (777) 9,075,004 12,361,389
Net cash provided by financing activities from continuing operations 31,147,495 37,151,786 23,642,852
Cash flow from discontinued operations      
Net cash provided by operating activities from discontinued operations 79,605,841 92,587,488 67,151,092
Net cash provided by/(used in) investing activities from discontinued operations 7,099,979 (42,204,987) (47,811,882)
Net cash (used in)/provided by financing activities from discontinued operations (407,030) 560,216 12,408
Net cash provided by discontinued operations 86,298,790 50,942,717 19,351,618
Effect of exchange rate 3,032,812 1,726,785 4,565,872
Net (decrease)/increase in cash (163,766,761) 57,719,020 25,185,336
Cash at the beginning of year 171,923,360 [2],[3] 114,204,340 [2],[3] 89,019,004 [2]
Cash at the end of year 8,156,599 [3] 171,923,360 [2],[3] 114,204,340 [2],[3]
Supplemental disclosure of non-cash transaction eliminated in above:      
Purchase of property and equipment pursuant to capital lease 26,435,403 0 0
Purchase of property, plant and equipment by setting off advances to related parties 55,064,953 0 0
Deposit on setting up Joint Venture netted of accounts payable - related party 6,090,302 0 0
Discontinued Operations [Member]
     
Supplemental disclosure of cash flow information:      
Income tax paid 17,278,643 29,324,336 26,956,670
Continuing Operations [Member]
     
Supplemental disclosure of cash flow information:      
Interest paid 4,060,069 3,428,193 952,200
Related Party [Member]
     
Changes in operating assets and liabilities      
Receipt in advance $ (13,026,770) $ 12,675,074 $ 0
[1] Total net income and net income from discontinued operations, net of tax included accretion of discount on Class A Preferred Shares in amount of $6,135,012.
[2] Includes cash and cash equivalents of discontinued operations of $165,062,575, $112,409,544 and $88,532,472 at the beginning of the year in 2013, 2012 and 2011, respectively.
[3] Includes cash and cash equivalents of discontinued operations of $nil, $165,062,575 and $112,409,544 as of December 31, 2013, 2012 and 2011, respectively.