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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99.9
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DEER CONSUMER PRODUCTS, INC.
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(Registrant)
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Date:
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March 29, 2012
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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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2011 revenue of $226.7 million, an increase of 28.9% from 2010
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·
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2011 net income of $39.8 million, an increase of 31% from 2010
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·
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Fully diluted earnings per share of $1.18, an EPS increase of 31% from 2010
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·
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Anticipates favorable Chinese domestic consumer market environment for continued growth in 2012
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2011
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2010
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|||||||
ASSETS
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||||||||
CURRENT ASSETS
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||||||||
Cash & equivalents
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$ | 13,961,434 | $ | 33,956,591 | ||||
Restricted cash
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127,235 | 1,347,385 | ||||||
Accounts receivable
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20,553,235 | 52,686,494 | ||||||
Deposits
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1,153,019 | - | ||||||
Advances to suppliers
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2,920,746 | 3,018,531 | ||||||
Other receivables
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287,824 | 125,580 | ||||||
VAT receivable
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8,562,076 | 2,839,718 | ||||||
Prepaid expense
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952,902 | 159,583 | ||||||
Inventories
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61,017,231 | 23,015,850 | ||||||
Total current assets
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109,535,702 | 117,149,732 | ||||||
NON-CURRENT ASSETS
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||||||||
Advance for equipment purchase
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844,964 | - | ||||||
Deposit for land use right
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847,646 | 4,619,405 | ||||||
Property and equipment, net
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36,137,609 | 20,453,404 | ||||||
Construction in progress
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21,141,715 | 8,913,181 | ||||||
Intangible assets, net
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35,895,528 | 37,502,010 | ||||||
Other assets
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- | 4,570 | ||||||
Total noncurrent assets
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94,867,462 | 71,492,570 | ||||||
TOTAL ASSETS
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$ | 204,403,164 | $ | 188,642,302 | ||||
LIABILITIES AND EQUITY
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||||||||
CURRENT LIABILITIES
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||||||||
Accounts payable
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$ | 7,977,167 | $ | 26,247,453 | ||||
Advance from customers
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1,056,442 | 1,759,792 | ||||||
Income tax payable
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4,864,267 | 5,536,646 | ||||||
Other payables and accrued expenses
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2,753,617 | 3,001,716 | ||||||
Dividend payable
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1,679,628 | - | ||||||
Notes payable
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692,821 | 8,361,698 | ||||||
Total current liabilities
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19,023,942 | 44,907,305 | ||||||
COMMITMENTS AND CONTINGENCIES
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||||||||
STOCKHOLDERS' EQUITY
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||||||||
Common Stock, $0.001 par value; 75,000,000 shares
authorized; 33,592,562 shares issued and
outstanding as of December 31, 2011 and 2010,
respectively
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33,593 | 33,593 | ||||||
Paid-in capital
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91,187,584 | 91,084,958 | ||||||
Statutory reserve
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9,157,606 | 6,127,639 | ||||||
Development fund
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4,578,803 | 3,063,819 | ||||||
Accumulated other comprehensive income
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14,769,957 | 6,315,475 | ||||||
Retained earnings
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65,651,679 | 37,109,513 | ||||||
Total stockholders' equity
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185,379,222 | 143,734,997 | ||||||
TOTAL LIABILITIES AND EQUITY
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$ | 204,403,164 | $ | 188,642,302 |
2011
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2010
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2009
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||||||||||
Revenue
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$ | 226,748,885 | $ | 175,846,887 | $ | 81,342,680 | ||||||
Cost of revenue
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157,538,033 | 125,274,479 | 61,176,610 | |||||||||
Gross profit
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69,210,852 | 50,572,408 | 20,166,070 | |||||||||
Operating expenses
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||||||||||||
Selling
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16,281,137 | 9,161,068 | 3,555,547 | |||||||||
General and administrative
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4,701,235 | 4,563,188 | 2,380,861 | |||||||||
Total operating expenses
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20,982,372 | 13,724,256 | 5,936,408 | |||||||||
Income from operations
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48,228,480 | 36,848,152 | 14,229,662 | |||||||||
Non-operating income (expenses)
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||||||||||||
Interest income
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243,876 | 484,527 | 94,986 | |||||||||
Interest expense
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- | - | (122,299 | ) | ||||||||
Financial expense
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(103,017 | ) | (148,772 | ) | (223,607 | ) | ||||||
Exchange gain (loss)
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(518,843 | ) | (1,253,707 | ) | 138,284 | |||||||
Other income, net
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20,825 | 69,030 | 38,084 | |||||||||
Subsidy income
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1,080,448 | 54,134 | 326,334 | |||||||||
Other expenses
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(32,704 | ) | (55,901 | ) | - | |||||||
Total non-operating income (expenses), net
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690,585 | (850,689 | ) | 251,782 | ||||||||
Income before income tax
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48,919,065 | 35,997,463 | 14,481,444 | |||||||||
Income tax expense
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9,113,436 | 5,648,426 | 2,112,382 | |||||||||
Net income
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39,805,629 | 30,349,037 | 12,369,062 | |||||||||
Other comprehensive item
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||||||||||||
Foreign currency translation
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8,454,482 | 3,980,259 | (10,482 | ) | ||||||||
Comprehensive Income
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$ | 48,260,111 | $ | 34,329,296 | $ | 12,358,580 | ||||||
Basic weighted average shares outstanding
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33,592,562 | 33,210,969 | 22,782,200 | |||||||||
Diluted weighted average shares outstanding
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33,592,562 | 33,651,767 | 23,190,286 | |||||||||
Basic earnings per share
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$ | 1.18 | $ | 0.91 | $ | 0.54 | ||||||
Diluted earnings per share
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$ | 1.18 | $ | 0.90 | $ | 0.53 |
2011
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2010
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2009
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||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
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||||||||||||
Net income
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$ | 39,805,629 | $ | 30,349,037 | $ | 12,369,062 | ||||||
Adjustments to reconcile net income
to net cash provided by operating activities:
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||||||||||||
Depreciation and amortization
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2,965,616 | 1,640,882 | 1,449,186 | |||||||||
Provision for inventory losses
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154,257 | - | - | |||||||||
Stock-based compensation
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102,626 | 275,698 | 333,387 | |||||||||
(Increase) decrease in current assets:
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||||||||||||
Accounts receivable
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35,182,509 | (34,354,325 | ) | (8,512,633 | ) | |||||||
Advances to suppliers
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1,072,711 | 887,765 | - | |||||||||
Other receivables, prepayments, and deposits
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(566,181 | ) | (491,041 | ) | (5,019 | ) | ||||||
Due from stockholder
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- | - | 331,064 | |||||||||
Due from related party
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- | - | 1,715,320 | |||||||||
Tax rebate receivable
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- | - | 283,706 | |||||||||
Inventories
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(36,079,878 | ) | (4,329,707 | ) | (10,374,062 | ) | ||||||
Increase (decrease) in current liabilities:
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||||||||||||
Accounts payable
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(19,131,367 | ) | 12,532,257 | 4,084,515 | ||||||||
Advance from customers
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(773,834 | ) | (10,106 | ) | (1,585,231 | ) | ||||||
Taxes payable
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(8,220,308 | ) | 1,777,120 | (670,218 | ) | |||||||
Notes payable
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(7,898,004 | ) | 1,924,203 | - | ||||||||
Due to related party
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- | - | (274,636 | ) | ||||||||
Other payables and accrued expenses
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(649,823 | ) | 858,495 | 1,221,679 | ||||||||
Increase in noncurrent assets:
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4,687 | 15,741 | 18,100 | |||||||||
Net cash provided by operating activities
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5,968,640 | 11,076,019 | 384,221 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
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||||||||||||
Change in restricted cash
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1,257,452 | (1,282,217 | ) | 164,297 | ||||||||
Acquisition of property & equipment
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(10,444,879 | ) | (10,095,861 | ) | (1,474,527 | ) | ||||||
Acquisition of intangible asset
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(4,325,011 | ) | (36,441,355 | ) | - | |||||||
Refund of deposit on land use right
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10,513,006 | - | - | |||||||||
Deposit for land use right
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(826,923 | ) | (4,601,917 | ) | - | |||||||
Advance for equipment purchase
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(824,307 | ) | - | - | ||||||||
Sale of short-term investments
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- | - | 29,322 | |||||||||
Construction in progress
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(17,587,593 | ) | (4,969,627 | ) | (2,829,702 | ) | ||||||
Net cash used in investing activities
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(22,238,255 | ) | (57,390,977 | ) | (4,110,610 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
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||||||||||||
Proceeds from issuance of notes payable
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- | - | 3,055,687 | |||||||||
Proceeds from sale of common stock
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- | - | 93,578,000 | |||||||||
Dividends paid
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(5,038,884 | ) | - | - | ||||||||
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 treasury stock
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- | (6,945,950 | ) | - | ||||||||
Payment on short-term loans
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- | - | (3,550,661 | ) | ||||||||
Payment on long-term loans
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- | - | (733,050 | ) | ||||||||
Net cash provided by (used in) financing activities
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(5,038,884 | ) | (301,440 | ) | 80,233,859 | |||||||
EFFECT OF EXCHANGE RATE CHANGE ON CASH & EQUIVALENTS
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1,313,342 | 1,239,260 | 44,233 | |||||||||
NET INCREASE (DECREASE) IN CASH & EQUIVALENTS
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(19,995,157 | ) | (45,377,138 | ) | 76,551,703 | |||||||
CASH & EQUIVALENTS, BEGINNING OF YEAR
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33,956,591 | 79,333,729 | 2,782,026 | |||||||||
CASH & EQUIVALENTS, END OF YEAR
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$ | 13,961,434 | $ | 33,956,591 | $ | 79,333,729 | ||||||
Supplemental Cash flow data:
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||||||||||||
Income tax paid
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$ | 10,846,615 | $ | 3,620,873 | $ | 567,226 | ||||||
Interest paid
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$ | - | $ | - | $ | 119,996 | ||||||
Supplemental Disclosure of Non-Cash Financing Activities:
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Transfer from construction in progress to fixed assets
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$ | 6,102,099 | $ | - | $ | - |