UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR
15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the Month of May, 2011
Commission File Number: 000-52132
CHINA OUMEI REAL ESTATE
INC.
(Exact name of registrant as specified in its charter)
Floor 28, Block C
Longhai Mingzhu Building
No.182 Haier
Road, Qingdao 266000
Peoples Republic of China
(86) 532 8099
7969
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F [X] Form 40-F [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): Not Applicable
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): Not Applicable
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes [ ] No [X]
If Yes marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-______.
On May 6, 2011, China Oumei Real Estate Inc. (the Company) issued a press release announcing its financial results for the fiscal quarter and fiscal year ended December 25, 2010. A copy of the press release is furnished as Exhibit 99.1 hereto.
The press release furnished as Exhibit 99.1 hereto contain certain statements that may include 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. All statements, other than statements of historical fact, are forward-looking statements, including statements regarding the Companys business strategy, plans and objectives and statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as should, believes, expects, anticipates or similar expressions, and involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they 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 their respective dates. The Companys actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Companys periodic reports and registration statements that are filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Exhibits | |
Exhibit | Description |
99.1 | Press release regarding financial results, dated May 6, 2011 |
SIGNATURES
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, thereunto duly authorized.
CHINA OUMEI REAL ESTATE
INC.
By: /s/ Weiqing Zhang
Weiqing Zhang
Chief Executive
Officer
Date: May 6, 2011
EXHIBIT INDEX
Exhibit | Description |
99.1 | Press release regarding financial results, dated May 6, 2011 |
Exhibit 99.1
FOR IMMEDIATE RELEASE
China Oumei Real Estate Inc. Reports Fourth Quarter and Year 2010 Results
QINGDAO, China May 6, 2011 /PRNewswire-FirstCall/ China Oumei Real Estate Inc. (China Oumei, or the Company), a leading housing and real estate development company headquartered in Qingdao, Shandong province, China, today reported its financial results for the fiscal fourth quarter and fiscal year ended December 25, 2010.
Fiscal Fourth Quarter 2010 Highlights
Total sales decreased 58.1% to $21.7 million in the fiscal fourth quarter of 2010 from $51.8 million in the fiscal fourth quarter of 2009.
Gross profit decreased 71.8% to $6.2 million from $21.9 million in the fourth quarter of 2009.
Gross margin decreased to 28.4% from 42.2% in the fourth quarter of 2009.
Operating income decreased 74.2% to $4.9 million from $19.0 million in the fourth quarter of 2009.
Net income increased 50.2% to $20.9 million from $13.9 million in the fourth quarter of 2009.
Diluted net income per share increased to $0.62 from $0.46 per share in the fourth quarter of 2009.
Fiscal Year 2010 Highlights
Total sales increased 17.2% to $110.5 million from $94.3 million in FY 2009.
Gross profit decreased 7.5% to $33.3 million from $36.0 million in FY 2009
Gross margin decreased 8.1 basis points to 30.1% from 38.2% in FY 2009.
Operating income decreased 14.1% to $26.4 million from $30.8 million in FY 2009.
Net income increased 65.2% to $34.9 million from $21.2 million in FY 2009.
Fully diluted net income per share increased to $1.07 from $0.70 per share in FY 2009.
Mr. Weiqing Zhang, Chief Executive Officer of China Oumei, said, We are pleased to have achieved our FY 2010 revenue and earnings targets in a year influenced by an increasingly challenging macroeconomic environment in our industry. Our Dongli Garden and Longhai Mingzhu projects were the primary revenue contributors during 2010, accounting for 56% of the years sales. Our growth was driven by our focus on middle-income customers in second-tier and third-tier cities in one of the most rapidly growing coastal markets and economic regions in China. Those markets are characterized by the rapid emergence of a large middle-income population and accelerating urbanization. These growth drivers, combined with continued progress on our cost-improvement initiatives, make us feel confident of our outlook for FY 2011.
Fiscal Fourth Quarter 2010 Results
Total sales for the quarter ended December 25, 2010 were $21.7 million compared with $51.8 million for the same period of 2009, a decrease of 58.1% . The decrease was primarily attributable to two major projects, Longhai Mingzhu and Dongli Garden. For the Longhai Mingzhu project, a significantly higher number of contracts were signed in the fourth quarter of 2009 (as the project entered its peak selling phase at 80% completion) than in the same period of 2010. For Dongli Garden Phase I, the fourth quarter of 2009 was the peak season of the villagers (residents who were the prior holders of the land use rights) relocation process, which continued into 2010 and tapered off in the second half of 2010.
Gross profit for the fourth quarter of 2010 was $6.2 million compared with $21.9 million for the same period in 2009, a decrease of 71.8% . Gross margin was 28.4% compared with 42.2% for the same period last year. The decrease in the gross profit was due to the decrease in total sales as noted above and a compression in gross profit margin. In the fourth quarter 2010, for the Longhai Mingzhu projects, we recorded an additional $2.1 million in cost of sales to account for a portion of the difference between book value and the fair market value of the assets when we acquired the entity that owned the project, which significantly contributed to the decrease in the gross profit margin. Another contributing factor is the fact that in the fourth quarter of 2009 we sold a significantly higher number of accessory spaces (storage units and garages), to which no construction cost was allocated, leading to a higher gross profit margin in the fourth quarter of 2009 than in the fourth quarter 2010.
Total operating expenses for the fourth quarter of 2010 were $1.2 million, or 5.7% of sales, compared with $2.8 million, or 5.5% of sales, for the same period last year. Such decrease was mainly due to higher recovery of bad debts and lower general and administrative expenses. Compared with the fourth quarter of 2009, the Company put more effort in the fourth quarter of 2010 into collecting receivables, particularly focusing on projects that previously had high receivable amounts outstanding, such as Qilu Textile Centre, Fuxiang Huayuan, and Longhai Lidu. General and administrative expenses were lower, fourth quarter to fourth quarter, because the Company incurred more land appreciation tax in the fourth quarter of 2009 than in the same period of 2010. It also incurred expenses in the fourth quarter of 2009 in anticipation of the April 2010 reverse acquisition of Leewell Investment Group Limited and a concurrent private placement transaction, which were absent in the fourth quarter 2010.
Operating income for the quarter ended December 25, 2010 was $4.9 million, or 22.7% of sales, compared with $19.0 million, or 36.8% of sales, for the same period last year, a decrease of 14.1% . The decrease in operating income was primarily due to lower sales, which outpaced the decrease in operating expenses.
Other income (net of other expenses) for the fourth quarter 2010 was $23.7 million, compared with $0.1 million for the same period of last year. The increase was primarily due to a sale of land use rights in the fourth quarter of 2010. On December 16, 2010, the Company executed a buyout transaction with the government of Licang District, Qingdao, in which the government agreed to pay approximately $23.7 million in exchange for the pre-development land use right in connection with our planned Dongli Garden II project. We had previously planned to build residential units on the land, subject to the government’s re-zoning procedure. Prior to the transaction, the historical cost of the land use right was zero since it was categorized as “state allocated land,” which had no value until zoned by the government for commercial development. Therefore, no cost was incurred in connection with this transaction, and the income of approximately $23.7 million was included in other income.
Net income for the fourth quarter of 2010 was $20.9 million, or $0.62 per diluted share, an increase of 50.2% from $13.9 million, or $0.46 per diluted share, for the same period last year.
Full Year 2010 Results
Total sales for FY 2010 were $110.5 million compared with $94.3 million for FY 2009, an increase of 17.2% . The increase was primarily as a result of our sales of new units in our Weihai International Plaza and Xingfu Renjia projects in FY 2010. No revenue was recognized for these projects in FY 2009.
Our gross profit decreased 7.5% to $33.3 million in FY 2010 from $36.0 million in FY 2009. Gross profit margin (gross profit as a percent of sales) was 30.1% for FY 2010 and 38.2% for FY 2009. The decrease in gross profit margin was partly due to sales of new properties related to villager relocation efforts for our Dongli Garden project, which contributed approximately 26% of sales in FY 2010 compared with 12% in FY 2009. The project was a joint effort between China Oumei and local government agencies; Phase I of the project mainly involved relocating villagers previously residing on the parcel designated for Phase II. Therefore, as part of the government’s urban modernization initiatives, the government strictly regulated the selling prices of all Phase I units, which were on average considerably below would-be market prices and in turn resulted in a lower profit margin. Meanwhile, we are required by the government to offer pricing concessions to relocated former villagers based on the sizes of parcels they previously resided on. In addition, in FY 2010, for the Longhai Mingzhu project, we booked an additional $2.1 million in cost of sales to account for a portion of the difference between book value and the fair market value of the assets when we acquired the entity that owned the project, which significantly contributed to the decrease in the gross profit margin. Another contributing factor is the fact that in FY 2009 we sold a significantly higher amount of accessory spaces (storage units and garages), to which no construction cost was allocated, leading to a higher gross profit margin in FY 2009 than in FY 2010.
Total operating expenses for FY 2010 were $6.9 million, or 6.2% of sales, compared with $5.3 million, or 5.6% of sales, for FY 2009. The increase was mainly due to higher sales and commissions expenses, plus higher general and administrative expenses related to the Company’s public offering registration in FY 2010.
Operating income for FY 2010 was $26.4 million, or 23.9% of sales, compared with $30.8 million, or 32.6% of sales, for last year, a decrease of 6.9% . The decrease in operating income was primarily due to the decrease in gross profit and increase in operating expenses noted above.
Net income for FY 2010 was $34.9 million, or $1.07 per diluted share, an increase of 65.2% from $21.2 million, or $0.70 per diluted share, for FY 2009.
Financial Condition
As of December 25, 2010, the Company had cash and cash equivalents of $33.6 million, compared with $2.3 million as of December 25, 2009. Working capital at fiscal year end was $102.6 million compared with $44.2 million at the end of FY 2009. Shareholders’ equity was $144.6 million, compared with $94.4 million at the end of FY 2009.
Business Outlook
For FY 2011, the Company intends to focus on sales for projects that have recently been completed, or for which construction will be completed in 2011, including primarily the Weihai International Plaza, Qilu Textile Center (Residential), Longhai Mingzhu, and Xingfu Renjia 2 projects.
The Company also intends to continue its penetration into the high-end real estate market, which is expected to generate high returns within the next few years. Two projects in planning in this category are expected to start construction in the second half of FY2011, including a large community of resort homes on the beach in Weihai (the Weihai Beach Resort project) and a luxury beachfront resort hotel that will be located just across the street from the Stone Old Man beach in Qingdao (the Longhai Hotel project).
Mr. Zhang said, “We aim to continue our strong performance in 2011, since we are currently seeing continuing growth in demand in the real estate industry in China, particularly in Shandong province and localities in which we operate. The growing number of middle-income consumers in China and a continued urbanization process have provided attractive and sustainable growth opportunities in second-tier and third-tier cities. We intend to continue to capitalize on these by continuing to offer high-quality, mid-sized residential units featuring modern designs and convenient facilities at competitive prices. Moreover, we expect that the planned start of the Weihai Beach Resort and the Longhai Hotel projects will unlock tremendous value in our land reserves.”
China Oumei expects to file its annual report with the Securities and Exchange Commission on Form 20-F for the fiscal year ended December 25, 2010 on or before June 25, 2011.
About China Oumei Real Estate Inc.
China Oumei is one of the leading real estate development companies in Qingdao, Shandong province, China. The Company develops and sells residential and commercial properties, focused on middle and upper income customers in the coastal region of the Shandong peninsula in northeastern China, including the cities of Qingdao, Weihai, and Yanta and inland locations that include Weifang.
China Oumei has six projects currently under construction with a total gross floor area of 508,342 square meters. Since its operations began in 2001, China Oumei has completed 17 projects with a total gross floor area of 1,462,126 square meters, of which approximately 95% have been sold.
China Oumeis mission is to provide high-quality, comfortable, and convenient living and working space to middle and upper income customers, while also earning for its shareholders an internal rate of return that exceeds its cost of capital. For more information, please visit http://www.chinaoumeirealestate.com.
Safe Harbor Statement
Certain of the statements made in this news release are forward-looking statements within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties, and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership, or achievements of the Company to be materially different from future results, performance, or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as may, will, anticipate, assume, should, indicate, would, believe, contemplate, expect, estimate, continue, plan, point to, project, could, intend, target and other similar words and expressions of the future.
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. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this news 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 those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its 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 factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For more information, please contact:
China Oumei Real Estate Inc.
Mr. Yu Fei (Chinese and English)
Telephone +86 532 8099 7968
in Qingdao
Mobile +86 186 0532 0209 in Qingdao
Christensen
Mr. Yuanyuan Chen (Chinese and English)
Telephone +86 10
5971 2001 in Beijing
Mobile +86 139 2337 7882 in Beijing
ychen@christensenir.com
Mr. Tom Myers (English)
Mobile +86 139 1141 3520 in
Beijing
tmyers@christensenir.com
Ms. Kathy Li (Chinese and English)
Telephone +1 212 618 1978
in New York
kli@christensenir.com
Source: China Oumei Real Estate Inc.
www.ChinaOumeiRealEstate.com
Financial tables to follow.
CHINA OUMEI REAL ESTATE INC. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
U.S. dollars | DECEMBER 25, | |||||
2010 | 2009 | |||||
ASSETS | ||||||
CURRENT ASSETS | ||||||
Cash | $ | 33,590,417 | $ | 2,264,438 | ||
Restricted cash | 2,285,490 | 1,641,778 | ||||
Revenue in excess of billings, net | 19,458,718 | 4,045,979 | ||||
Contracts receivable, net | 38,615,085 | 12,552,315 | ||||
Related party receivable | 1,159,577 | 2,949,102 | ||||
Inventories | 70,410,310 | 106,452,702 | ||||
Other receivables, net | 25,867,452 | 1,634,987 | ||||
Prepaid expenses | 2,969,452 | 1,461,670 | ||||
Total Current Assets | 194,356,501 | 133,002,971 | ||||
PROPERTY, PLANT AND EQUIPMENT, NET | 4,283,108 | 3,461,317 | ||||
PROPERTY, PLANT AND EQUIPMENT, IDLE | 1,808,401 | 1,530,390 | ||||
GOODWILL | 3,716,859 | 3,620,670 | ||||
LAND USE RIGHTS, NET | 54,973,721 | 54,060,495 | ||||
DEFERRED TAX ASSETS | 981,669 | 657,000 | ||||
TOTAL ASSETS | $ | 260,120,259 | $ | 196,332,843 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
CURRENT LIABILITIES | ||||||
Current portion of long-term debt | $ | 35,414,500 | $ | 35,217,320 | ||
Short term loans | 1,417,264 | 2,719,432 | ||||
Notes payable | - | 146,800 | ||||
Accounts payable | 1,810,919 | 487,238 | ||||
Customer deposits | 21,149,526 | 19,780,472 | ||||
Other payables | 875,866 | 4,186,745 | ||||
Taxes payable | 30,971,901 | 26,049,956 | ||||
Other current liabilities | 135,442 | 207,936 | ||||
Total Current Liabilities | 91,775,418 | 88,795,899 | ||||
LONG TERM DEBT | - | 4,404,000 | ||||
LONG TERM DEFERRED TAX LIABILTIES | 23,703,855 | 8,781,998 | ||||
SHAREHOLDERS' EQUITY | ||||||
Preference stock, par value $0.002112 per share, 20,000,000 shares authorized, 2,774,700 shares issued and outstanding | 5,860 | - | ||||
Common stock, par value $0.002112 per share, 100,000,000 shares authorized, 31,020,062 shares issued and outstanding | 65,514 | 63,856 | ||||
Additional paid-in capital | 17,641,864 | 8,949,041 | ||||
Warrants outstanding | 3,177,032 | - | ||||
Appropriated retained earnings | 17,370,972 | 10,298,700 | ||||
Unappropriated retained earnings | 95,871,921 | 68,001,735 | ||||
Accumulated other comprehensive income | 10,507,823 | 7,037,614 | ||||
Total Shareholders' Equity | 144,640,986 | 94,350,946 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 260,120,259 | $ | 96,332,843 |
CHINA OUMEI REAL ESTATE INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
U.S. dollars except | For the Three Months Ended | For the Year Ended | ||||||||||
share amounts | (Unaudited) | |||||||||||
December 25, | December 25, | December 25, | December 25, | |||||||||
2010 | 2009 | 2010 | 2009 | |||||||||
SALES | $ | 21,676,288 | $ | 51,770,433 | $ | 110,518,421 | $ | 94,315,500 | ||||
COST OF SALES | (15,518,264 | ) | (29,898,570 | ) | (77,209,814 | ) | (58,296,408 | ) | ||||
GROSS PROFIT | 6,158,024 | 21,871,863 | 33,308,607 | 36,019,092 | ||||||||
ADVERTISING | (14,593 | ) | (40,096 | ) | (217,596 | ) | (268,222 | ) | ||||
COMMISSION | (26,224 | ) | - | (214,566 | ) | (84,982 | ) | |||||
SELLING EXPENSES | (5,891 | ) | (17,050 | ) | (61,967 | ) | (49,800 | ) | ||||
BAD DEBT RECOVERY | 554,919 | 124,157 | 987,374 | (207,523 | ) | |||||||
GENERAL AND ADMINISTRATIVE | ||||||||||||
EXPENSES | (1,751,502 | ) | (2,910,267 | ) | (7,390,963 | ) | (4,655,596 | ) | ||||
INCOME FROM OPERATIONS | 4,914,733 | 19,028,606 | 26,410,889 | 30,752,969 | ||||||||
OTHER INCOME (EXPENSES) | ||||||||||||
Miscellaneous income (expenses) | 23,673,475 | 149,718 | 23,899,865 | 327,294 | ||||||||
Interest expense | (27,338 | ) | (32,781 | ) | (325,969 | ) | (866,751 | ) | ||||
23,646,137 | 116,937 | 23,573,896 | (539,457 | ) | ||||||||
INCOME BEFORE INCOME TAXES | 28,560,870 | 19,145,543 | 49,984,785 | 30,213,512 | ||||||||
INCOME TAXES | ||||||||||||
Current | (299,177 | ) | (50,308 | ) | (932,016 | ) | (369,660 | ) | ||||
Deferred | (7,370,466 | ) | (5,185,847 | ) | (14,110,311 | ) | (8,688,566 | ) | ||||
(7,669,643 | ) | (5,236,155 | ) | (15,042,327 | ) | (9,058,226 | ) | |||||
NET INCOME | 20,891,227 | 13,909,388 | 34,942,458 | 21,155,286 | ||||||||
OTHER COMPREHENSIVE INCOME: | ||||||||||||
FOREIGN CURRENCY | ||||||||||||
TRANSLATION ADJUSTMENT | 1,374,612 | 73,015 | 3,470,209 | 474,414 | ||||||||
COMPREHENSIVE INCOME | $ | 22,265,839 | $ | 13,982,403 | $ | 38,412,667 | $ | 21,629,700 | ||||
EARNINGS PER COMMON SHARE BASIC | $ | 0.67 | $ | 0.46 | $ | 1.14 | $ | 0.70 | ||||
EARNINGS PER COMMON SHARE DILUTED | $ | 0.62 | $ | 0.46 | $ | 1.07 | $ | 0.70 | ||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING BASIC | 31,002,699 | 30,235,062 | 30,770,172 | 30,235,062 | ||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING DILUTED | 33,777,399 | 30,235,062 | 30,708,661 | 30,235,062 |
CHINA OUMEI REAL ESTATE INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
U.S. dollars | For the Year Ended | |||||
December 25, | December 25, | |||||
2010 | 2009 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net income | $ | 34,942,458 | $ | 21,155,286 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Bad debt recovery | (987,374 | ) | 207,523 | |||
Depreciation expense | 290,728 | 245,388 | ||||
Gain on disposal of assets | (50,836 | ) | - | |||
Common stock issued for services | 1,576,392 | - | ||||
Deferred tax expense | 14,110,311 | 8,688,566 | ||||
Decrease (increase) in operating assets: | ||||||
Restricted cash | (362,186 | ) | 192,911 | |||
Revenue in excess of billings | (15,026,379 | ) | (4,040,467 | ) | ||
Contracts receivable | (24,377,598 | ) | (6,696,979 | ) | ||
Related party receivable | 1,283,924 | 7,286,347 | ||||
Inventories | 37,618,320 | 24,608,287 | ||||
Other receivables | (23,142,569 | ) | 593,540 | |||
Prepaid expenses | (1,441,267 | ) | 2,343,368 | |||
Increase (decrease) in operating liabilities: | ||||||
Accounts payable | 1,286,035 | (9,335,626 | ) | |||
Related party payable | - | - | ||||
Advance from customers | 827,655 | (37,961,384 | ) | |||
Other payables | (3,254,856 | ) | 138,975 | |||
Taxes payable | 4,150,168 | 3,829,172 | ||||
Other current liabilities | (117,735 | ) | (4,087 | ) | ||
Net cash provided by operating activities | 27,325,191 | 11,250,820 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Purchase of fixed assets | (246,345 | ) | (199,025 | ) | ||
Cash received from sale of assets | 90,269 | - | ||||
Purchase of subsidiaries | - | - | ||||
Purchase of Dragon Acquisition Corporation, net of cash acquired | 19,920 | - | ||||
Cash received from acquisition of subsidiaries | - | 433,839 | ||||
Net cash provided (used) by investing activities | (136,156 | ) | 234,814 | |||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Net change in short-term borrowing | (1,348,513 | ) | (179,080 | ) | ||
Repayments of long-term debt | (6,638,914 | ) | (14,044,280 | ) | ||
Proceeds from long-term borrowing | 1,478,600 | 4,398,000 | ||||
Repayments of notes payable | (147,860 | ) | (41,048 | ) | ||
Cash receipts from financing through private placement | 10,323,040 | - | ||||
Restricted cash in holdback account | (230,954 | ) | - | |||
Net cash provided (used) by financing activities | 3,435,399 | (9,866,408 | ) | |||
Effect of exchange rate changes on cash | 701,545 | 6,573 | ||||
NET INCREASE IN CASH | 31,325,979 | 1,625,799 | ||||
CASH AT BEGINNING OF THE YEAR | 2,264,438 | 638,639 | ||||
CASH AT END OF THE YEAR | $ | 33,590,417 | $ | 2,264,438 |
SUPPLEMENTAL DISCLOSURES: | ||||||
Interest paid | $ | 2,544,506 | $ | 3,195,886 | ||
Income taxes paid | $ | 10,369,157 | $ | 260,255 | ||
Non-cash investing and financing activities: | ||||||
Common stock issued for compensation for services in connection with the private placement transactions | $ | 1,576,392 | $ | - | ||
Warrants issued for compensation from services in connection with the private placement transactions | $ | 235,850 | $ | - | ||
Land use rights transferred to inventory as project development cost | $ | 522,986 | $ | 11,036,630 | ||
Cash consideration paid by Longhai Group for subsidiaries acquisition, resulting in a decrease in related party receivables | $ | - | $ | 5,131,000 |