Nevada
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001-34407
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20-5526104
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(State or other Jurisdiction of Incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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Area 2, 1/F, Building M-6,
Central High-Tech Industrial Park, Nanshan,
Shenzhen, China
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518057
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(Address of Principal Executive Offices)
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(Zip Code)
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit
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Description
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99.99
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DEER CONSUMER PRODUCTS, INC.
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(Registrant)
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Date:
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March 10, 2011
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By:
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/s/ Ying He
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Name:
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Ying He
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Title:
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Chief Executive Officer
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·
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2010 revenue of $175.8 million, an increase of 116% from 2009
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·
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2010 net income of $30.3 million, an increase of 145% from 2009. Basic earnings per share of $0.91, fully diluted EPS of $0.90, an EPS increase of 68% from 2009
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·
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Strong Q1/2011 sales growth, anticipates favorable Chinese domestic and global market environment for continued earnings growth in 2011
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·
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Declares quarterly cash dividend of $0.05 per share
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·
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Management and insiders share lock up through 2013
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·
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Revenue of $175.8 million, an increase of 116% from 2009, from record sales in China and emerging markets
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·
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Net income of $30.3 million, an increase of 145% from 2009. Basic earnings per share of $0.91, fully diluted EPS of $0.90, an increase of 68% from 2009
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·
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Strong balance sheet without any long-term debts: total assets of $189 million, shareholders’ equity of $144 million, $34 million in cash
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·
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Expanded gross profit margin to 29%, compared to 25% in 2009
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·
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Expanded net income margin to 17%, compared to 15% in 2009
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·
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Sees positive impact to earnings from China's currency appreciation, increasing demand from China's rising middle class and positive growth momentum from the global economic environment
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Corporate Contact:
Ms. Helen Wang, President
Deer Consumer Products, Inc.
Tel: 011-86-755-86028300 / 011-86-13688806146
Email: investors@deerinc.com
____________________________________
Source: Deer Consumer Products, Inc.
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2010
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2009
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|||||||
ASSETS
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||||||||
CURRENT ASSETS
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||||||||
Cash & equivalents
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$ | 33,956,591 | $ | 79,333,729 | ||||
Restricted cash
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1,347,385 | 35,701 | ||||||
Accounts receivable
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52,686,494 | 17,070,781 | ||||||
Advances to suppliers
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3,018,531 | 3,299,107 | ||||||
Other receivables
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125,580 | 213,487 | ||||||
VAT receivable
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2,839,718 | 2,516,618 | ||||||
Prepaid expense
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159,583 | 12,500 | ||||||
Inventories
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23,015,850 | 18,061,282 | ||||||
Total current assets
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117,149,732 | 120,543,205 | ||||||
NON-CURRENT ASSETS
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||||||||
Property and equipment, net
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20,453,404 | 11,325,999 | ||||||
Prepayment for land use rights
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3,812,947 | |||||||
Intangible assets, net
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38,308,468 | 394,684 | ||||||
Construction in progress
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8,913,181 | 3,724,337 | ||||||
Other assets
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4,570 | 20,073 | ||||||
Total noncurrent assets
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71,492,570 | 15,465,093 | ||||||
TOTAL ASSETS
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$ | 188,642,302 | $ | 136,008,298 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
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||||||||
CURRENT LIABILITIES
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||||||||
Accounts payable
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$ | 26,247,453 | $ | 13,055,110 | ||||
Unearned revenue
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1,759,792 | 1,719,761 | ||||||
Taxes payable
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5,536,646 | 3,371,986 | ||||||
Other payables and accrued expenses
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3,001,716 | 2,217,087 | ||||||
Notes payable
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8,361,698 | 6,212,911 | ||||||
Total current liabilities
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44,907,305 | 26,576,855 | ||||||
COMMITMENT AND CONTINGENCY
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||||||||
STOCKHOLDERS' EQUITY
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||||||||
Common Stock, $0.001 par value; 75,000,000 shares
authorized; 33,592,562 and 32,631,748 shares issued and
outstanding as of December 31, 2010 and 2009, respectively
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33,593 | 32,632 | ||||||
Paid-in capital
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91,084,958 | 91,111,661 | ||||||
Statutory reserve
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6,127,639 | 2,371,718 | ||||||
Development fund
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3,063,819 | 1,185,859 | ||||||
Accumulated other comprehensive income
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6,315,475 | 2,335,216 | ||||||
Retained earnings
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37,109,513 | 12,394,357 | ||||||
Total Company stockholders' equity
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143,734,997 | 109,431,443 | ||||||
TOTAL LIABILITIES AND EQUITY
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$ | 188,642,302 | $ | 136,008,298 |
2010
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2009
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2008
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||||||||||
Revenue
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$ | 175,846,887 | $ | 81,342,680 | $ | 43,784,935 | ||||||
Cost of revenue
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125,274,479 | 61,176,610 | 34,125,019 | |||||||||
Gross profit
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50,572,408 | 20,166,070 | 9,659,916 | |||||||||
Operating expenses
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||||||||||||
Selling
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9,161,068 | 3,555,547 | 2,854,946 | |||||||||
General and administrative
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4,563,188 | 2,380,861 | 2,566,634 | |||||||||
Total operating expenses
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13,724,256 | 5,936,408 | 5,421,580 | |||||||||
Income from operations
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36,848,152 | 14,229,662 | 4,238,336 | |||||||||
Non-operating income (expenses)
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||||||||||||
Interest income
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484,527 | 94,986 | 13,870 | |||||||||
Interest expense
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- | (122,299 | ) | (310,762 | ) | |||||||
Financial expense
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(148,772 | ) | (223,607 | ) | (247,901 | ) | ||||||
Exchange gain (loss)
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(1,253,707 | ) | 138,284 | 959,943 | ||||||||
Other income (expense), net
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69,030 | 38,084 | (17,444 | ) | ||||||||
Subsidy income
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54,134 | 326,334 | 57,660 | |||||||||
Realized loss on trading securities
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- | - | (34,873 | ) | ||||||||
Other expenses
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(55,901 | ) | - | - | ||||||||
Total non-operating income (expenses), net
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(850,689 | ) | 251,782 | 420,493 | ||||||||
Income before income tax
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35,997,463 | 14,481,444 | 4,658,829 | |||||||||
Income tax expense
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5,648,426 | 2,112,382 | 1,302,045 | |||||||||
Net income
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30,349,037 | 12,369,062 | 3,356,784 | |||||||||
Other comprehensive item
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||||||||||||
Foreign currency translation
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3,980,259 | (10,482 | ) | 1,041,966 | ||||||||
Comprehensive Income
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$ | 34,329,296 | $ | 12,358,580 | $ | 4,398,750 | ||||||
Basic weighted average shares outstanding
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33,210,969 | 22,782,200 | 16,985,460 | |||||||||
Diluted weighted average shares outstanding
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33,651,767 | 23,190,286 | 16,985,460 | |||||||||
Basic earnings per share
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$ | 0.91 | $ | 0.54 | $ | 0.20 | ||||||
Diluted earnings per share
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$ | 0.90 | $ | 0.53 | $ | 0.20 |
2010
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2009
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2008
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||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
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Net income
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$ | 30,349,037 | $ | 12,369,062 | $ | 3,356,784 | ||||||
Adjustments to reconcile net income
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||||||||||||
to net cash provided by operating activities:
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Depreciation and amortization
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1,640,882 | 1,449,186 | 1,218,301 | |||||||||
Realized loss on short-term investments
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- | - | 34,873 | |||||||||
Loss on disposal of fixed assets
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- | - | 351,257 | |||||||||
Stock-based compensation
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275,698 | 333,387 | - | |||||||||
(Increase) decrease in current assets:
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||||||||||||
Accounts receivable
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(34,354,325 | ) | (8,512,633 | ) | (7,821,066 | ) | ||||||
Advances to suppliers
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887,765 | - | (1,965,833 | ) | ||||||||
Other receivables, prepayments, and deposits
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(491,041 | ) | (5,019 | ) | 210,696 | |||||||
Due from stockholder
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- | 331,064 | 1,454,375 | |||||||||
Due from related party
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- | 1,715,320 | (325,509 | ) | ||||||||
Tax rebate receivable
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- | 283,706 | 158,989 | |||||||||
Inventories
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(4,329,707 | ) | (10,374,062 | ) | (3,180,080 | ) | ||||||
Increase (decrease) in current liabilities:
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||||||||||||
Accounts payable
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12,532,257 | 4,084,515 | 6,205,438 | |||||||||
Unearned revenue
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(10,106 | ) | (1,585,231 | ) | 3,175,324 | |||||||
Taxes payable
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1,777,120 | (670,218 | ) | 581,530 | ||||||||
Notes payable
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1,924,203 | - | - | |||||||||
Due to related party
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- | (274,636 | ) | (795,427 | ) | |||||||
Other payables and accrued expenses
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858,495 | 1,221,679 | 162,679 | |||||||||
Increase in noncurrent asset:
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15,741 | 18,100 | 215,234 | |||||||||
Net cash provided by operating activities
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11,076,019 | 384,221 | 3,037,566 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
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||||||||||||
Change in restricted cash
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(1,282,217 | ) | 164,297 | 276,966 | ||||||||
Acquisition of property & equipment
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(10,095,861 | ) | (1,474,527 | ) | (3,627,873 | ) | ||||||
Acquisition of intangible asset
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(37,230,325 | ) | - | (8,319 | ) | |||||||
Prepayment for land use rights
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(3,812,947 | ) | ||||||||||
Sale of short-term investments
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- | 29,322 | 79,984 | |||||||||
Construction in progress
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(4,969,627 | ) | (2,829,702 | ) | (559,651 | ) | ||||||
Net cash used in investing activities
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(57,390,977 | ) | (4,110,610 | ) | (3,838,893 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
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||||||||||||
Proceeds from issuance of short-term loans
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- | - | 4,176,723 | |||||||||
Proceeds from issuance of long-term loans
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- | - | 720,750 | |||||||||
Proceeds from issuance of notes payable
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- | 3,055,687 | 2,969,781 | |||||||||
Proceeds from sale of common stock
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- | 93,578,000 | - | |||||||||
Change in advance to shareholder, net
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- | - | (535,367 | ) | ||||||||
Change in advance to related party, net
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- | - | 270,028 | |||||||||
Offering costs paid
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(320,000 | ) | (12,407,007 | ) | - | |||||||
Proceeds from exercise of warrants
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6,964,510 | 290,890 | - | |||||||||
Purchase of treasure shares
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(6,945,950 | ) | - | - | ||||||||
Payment on short-term loans
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- | (3,550,661 | ) | (5,656,331 | ) | |||||||
Payment on long-term loans
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- | (733,050 | ) | - | ||||||||
Net cash provided by (used in) financing activities
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(301,440 | ) | 80,233,859 | 1,945,584 | ||||||||
EFFECT OF EXCHANGE RATE CHANGE ON CASH & EQUIVALENTS
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1,239,260 | 44,233 | 126,224 | |||||||||
NET INCREASE (DECREASE) IN CASH & EQUIVALENTS
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(45,377,138 | ) | 76,551,703 | 1,270,481 | ||||||||
CASH & EQUIVALENTS, BEGINNING OF YEAR
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79,333,729 | 2,782,026 | 1,511,545 | |||||||||
CASH & EQUIVALENTS, END OF YEAR
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$ | 33,956,591 | $ | 79,333,729 | $ | 2,782,026 | ||||||
Supplemental Cash flow data:
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Income tax paid
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$ | 3,620,873 | $ | 567,226 | $ | 725,125 | ||||||
Interest paid
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$ | - | $ | 119,996 | $ | 310,762 | ||||||
Settlement of receivable as a deemed dividend
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$ | - | $ | - | $ | 3,134,979 |