LISHUI, China, Oct. 22, 2021 /PRNewswire/ -- Tantech Holdings
Ltd (NASDAQ: TANH) ("Tantech" or the "Company"), a clean energy
company in China, today reported
its unaudited financial results for the six months ended
June 30, 2021.
Mr. Wangfeng Yan, Chief Executive Officer of Tantech, said,
"While we continue to have a competitive edge in selling our
bamboo-based charcoal products, we have been working hard on the
strategic shift in our business from being solely engaged in
consumer product sales to expanding into the specialty vehicle
market. We have focused on product costs as we have increased
operating cash flow for our longer-term growth in the vehicle
market. Ongoing COVID-19 challenges, including supply chain and
logistics bottlenecks, have added cost and margin pressure in our
ongoing consumer business, but we hope to see some stabilization
into next year."
"As to our specialty vehicle and electric vehicle (EV) business,
we believe our feature-rich, environmentally friendly customizable
midibuses present an attractive option for corporate customer as
businesses return to normal operations. We have invested heavily in
technology advancements for specialty-use EVs rather than the more
competitive, domestic general consumer EV market for this reason.
We are fully committed to the EV segment, which we expect will be a
key long-term growth driver for us. Despite some recent delays in
government rebates related to EVs, longer term we expect our
specialty EV business will expand with customer demand for a
cleaner environment and for zero-emission vehicles. Importantly, we
had approximately $40.7 million cash
at June 30, 2021, which gives us the
ability to fund our growth initiatives and build value for
shareholders."
|
|
Financial
Results
For the Six Months
Ended
June 30,
|
|
($ millions,
except per share data and
percentages)
|
|
2021
|
|
|
2020
|
|
|
Change
|
|
Revenues
|
|
$
|
20.6
|
|
|
$
|
22.9
|
|
|
|
(9.9)
|
%
|
Gross
profit
|
|
$
|
4.0
|
|
|
$
|
3.1
|
|
|
|
29.3
|
%
|
Gross
margin
|
|
|
19.3
|
%
|
|
|
13.4
|
%
|
|
|
5.9
|
percentage
points
|
Operating
expenses
|
|
$
|
9.7
|
|
|
$
|
1.3
|
|
|
|
666.0
|
%
|
Net (loss) income
attributable to common
stockholders of Tantech Holdings Ltd
|
|
$
|
(6.6)
|
|
|
$
|
1.2
|
|
|
|
(636.8)
|
%
|
Basic/Diluted (loss)
earnings per share
|
|
$
|
(0.18)
|
|
|
$
|
0.04
|
|
|
$
|
(0.22)
|
|
|
- Total revenue
decreased by approximately $2.3 million, or 9.9%, to approximately
$20.6 million in the six months ended June 30, 2021 from
approximately $22.9 million in the same period of 2020. The
decrease was mainly attributable to the decrease of the sales
volume of the Company's consumer products.
|
|
- Our gross profit
increased by approximately $0.9 million, or 29.3% to approximately
$4.0 million in the six months ended June 30, 2021 from
approximately $3.1 million in the same period of 2020. The gross
profit margin was 19.3% in the six months ended June 30, 2021, as
compared to 13.4% in the same period of 2020. On a segment basis,
gross margins for consumer product and EV segments were 19.1% and
38.5%, respectively, for the six months ended June 30, 2021,
compared to 13.6% and 5.3%, respectively, for the six months ended
June 30, 2020. The increase in overall gross margin was primarily
attributable to the higher average selling price of our
charcoal-based products, offset by the decease of selling volume as
compared to the same period last year.
|
|
- Research and
development expenses increased by $6.0 million, or 1,996.4%, to
$6.4 million in the six months ended June 30, 2021 from $0.3
million in the same period of 2020. The increase was primarily due
to the R&D activities in connection with our EV segment. During
the six months ended June 30, 2021, we increased our investment
significantly for the smart electric sanitation vehicles designed
for closed industrial parks and residential communities. We have
manufactured two prototype model vehicles and expect to receive
orders from potential customers in the near future.
|
|
- Total operating
expenses increased by $8.4 million, or 666.0%, to $9.7 million in
the six months ended June 30, 2021 from $1.3 million in the same
period of 2020, which was mainly due to increased research
and development expenses of $6.0 million and increased share
based compensation of $1.8 million for the six months ended June
30, 2021 as compared to the same period of 2020.
|
|
- Our loss before
income tax was approximately $5.7 million for the six months ended
June 30, 2021, compared to an income before income tax of
approximately $1.7 million for the six months ended June 30,
2020.
|
|
- The Company had
approximately $40.7 million cash on hand, and maintained positive
working capital as of June 30, 2021.
|
About Tantech Holdings Ltd
For the past decade, Tantech has been a highly specialized
high-tech enterprise producing, researching and developing bamboo
charcoal-based products with an established domestic and
international sales and distribution network. Since 2017, when the
Company acquired 70% of Shangchi Automobile, a vehicle manufacturer
based in Zhangjiagang City, Jiangsu
Province, it has manufactured and sold vehicles. The Company
established two new subsidiaries, Lishui Smart New Energy
Automobile Co., Ltd. and Zhejiang Shangchi New Energy Automobile
Co., Ltd., in November 2020, to
produce and sell street sweepers and other electric vehicles. The
Company is fully ISO 90000 and ISO 14000 certified and has received
a number of national, provincial and local honors, awards and
certifications for its products and scientific research efforts.
For more information please visit: http://ir.tantech.cn.
Forward-Looking Statements
This news release contains forward-looking statements as defined
by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning the sales,
plans, objectives, goals, strategies, future events or performance,
and underlying assumptions and other statements that are other than
statements of historical facts. These statements are subject to
uncertainties and risks including, but not limited to, product and
service demand and acceptance, changes in technology, economic
conditions, the impact of competition and pricing, government
regulations, and other risks contained in reports filed by the
Company with the Securities and Exchange Commission. All such
forward-looking statements, whether written or oral, and whether
made by or on behalf of the Company, are expressly qualified by
this cautionary statement and any other cautionary statements which
may accompany the forward-looking statements. In addition, the
Company disclaims any obligation to update any forward-looking
statements to reflect events or circumstances after the date
hereof.
Tantech Holdings
Ltd and Subsidiaries
|
Consolidated
Balance Sheets
|
(Unaudited)
|
|
|
|
June
30,
2021
|
|
|
December
31,
2020
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents*
|
|
$
|
40,711,801
|
|
|
$
|
37,119,195
|
|
Restricted
cash*
|
|
|
-
|
|
|
|
220,109
|
|
Accounts receivable,
net*
|
|
|
36,369,508
|
|
|
|
34,410,597
|
|
Inventories,
net*
|
|
|
420,194
|
|
|
|
671,251
|
|
Advances to
suppliers, net *
|
|
|
7,054,987
|
|
|
|
6,854,461
|
|
Advances to suppliers
– related party
|
|
|
-
|
|
|
|
1,533,000
|
|
Prepaid
taxes*
|
|
|
1,177,989
|
|
|
|
1,046,667
|
|
Prepaid expenses and
other receivables, net*
|
|
|
463,974
|
|
|
|
45,467
|
|
Total Current
Assets*
|
|
|
86,198,453
|
|
|
|
81,900,747
|
|
|
|
|
|
|
|
|
|
|
Property, plant
and equipment, net*
|
|
|
2,273,629
|
|
|
|
2,477,912
|
|
|
|
|
|
|
|
|
|
|
Other
Assets
|
|
|
|
|
|
|
|
|
Manufacturing rebate
receivable*
|
|
|
5,815,305
|
|
|
|
5,755,237
|
|
Intangible assets,
net*
|
|
|
434,913
|
|
|
|
664,033
|
|
Long-term
Investment
|
|
|
25,763,433
|
|
|
|
25,497,316
|
|
Total Other
Assets*
|
|
|
32,013,651
|
|
|
|
31,916,586
|
|
Total
Assets*
|
|
$
|
120,485,733
|
|
|
$
|
116,295,245
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
|
Short-term bank
loans
|
|
$
|
5,313,070
|
|
|
$
|
5,564,790
|
|
Bank acceptance notes
payable*
|
|
|
-
|
|
|
|
1,753,109
|
|
Accounts
payable*
|
|
|
2,305,363
|
|
|
|
1,543,994
|
|
Due to related
parties*
|
|
|
2,194,460
|
|
|
|
2,019,087
|
|
Customer
deposits*
|
|
|
6,167,807
|
|
|
|
3,183,088
|
|
Taxes
payable*
|
|
|
1,050,811
|
|
|
|
571,354
|
|
Due to third
parties
|
|
|
-
|
|
|
|
306,600
|
|
Accrued liabilities
and other payables*
|
|
|
960,446
|
|
|
|
1,861,835
|
|
Total Current
Liabilities*
|
|
|
17,991,957
|
|
|
|
16,803,857
|
|
Total
Liabilities*
|
|
|
17,991,957
|
|
|
|
16,803,857
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
Common stock, $0.001
par value, 50,000,000 shares authorized,
42,874,097 and 35,894,097 shares issued and outstanding as of
June
30, 2021 and December 31, 2020, respectively
|
|
|
42,874
|
|
|
|
35,894
|
|
Additional paid-in
capital
|
|
|
57,164,201
|
|
|
|
48,392,181
|
|
Statutory
reserves
|
|
|
6,437,506
|
|
|
|
6,437,506
|
|
Retained
earnings
|
|
|
38,909,553
|
|
|
|
45,480,031
|
|
Accumulated other
comprehensive loss
|
|
|
(517,118)
|
|
|
|
(1,493,070)
|
|
Total
Stockholders' Equity attributable to the Company
|
|
|
102,037,016
|
|
|
|
98,852,542
|
|
Noncontrolling
interest
|
|
|
456,760
|
|
|
|
638,846
|
|
Total
Stockholders' Equity
|
|
|
102,493,776
|
|
|
|
99,491,388
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
120,485,733
|
|
|
$
|
116,295,245
|
|
|
* please see
"Note 3: Variable Interest Entities" in the notes accompanying the
unaudited financial
statements filed on the Company's Report of Foreign Private Issuer
on Form 6-K dated October 22, 2021.
|
Tantech Holdings
Ltd and Subsidiaries
|
Consolidated
Statements of Comprehensive Loss
|
(Unaudited)
|
|
|
|
For the Six Months
Ended
June
30,
|
|
|
|
2021
|
|
|
2020
|
|
Revenues
|
|
$
|
20,633,188
|
|
|
$
|
22,889,784
|
|
Cost of
revenues
|
|
|
16,660,387
|
|
|
|
19,817,263
|
|
Gross
Profit
|
|
|
3,972,801
|
|
|
|
3,072,521
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
122,045
|
|
|
|
201,217
|
|
General and
administrative expenses
|
|
|
1,399,295
|
|
|
|
763,945
|
|
Share-based
compensation
|
|
|
1,840,000
|
|
|
|
-
|
|
Research and
development expenses
|
|
|
6,351,853
|
|
|
|
302,553
|
|
Total operating
expenses
|
|
|
9,713,193
|
|
|
|
1,267,715
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income from operations
|
|
|
(5,740,392)
|
|
|
|
1,804,806
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
57,374
|
|
|
|
17,962
|
|
Interest
expense
|
|
|
(137,594)
|
|
|
|
(184,288)
|
|
Government subsidy
income
|
|
|
47,033
|
|
|
|
10,926
|
|
Rental income from a
related party
|
|
|
67,166
|
|
|
|
-
|
|
Other income,
net
|
|
|
1,796
|
|
|
|
6,593
|
|
Total other income
(expenses)
|
|
|
35,775
|
|
|
|
(148,807)
|
|
|
|
|
|
|
|
|
|
|
(Loss) income
before provision for income taxes
|
|
|
(5,704,617)
|
|
|
|
1,655,999
|
|
Provision for
income taxes
|
|
|
1,047,595
|
|
|
|
684,804
|
|
Net (loss)
income
|
|
|
(6,752,212)
|
|
|
|
971,195
|
|
Less: net loss
attributable to noncontrolling interest
|
|
|
(181,734)
|
|
|
|
(253,220)
|
|
Net (loss) income
attributable to common stockholders of Tantech
Holdings Ltd.
|
|
$
|
(6,570,478)
|
|
|
$
|
1,224,415
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
|
(6,752,212)
|
|
|
|
971,195
|
|
Other
comprehensive income (loss):
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
975,600
|
|
|
|
(1,394,434)
|
|
Comprehensive
loss
|
|
|
(5,776,612)
|
|
|
|
(423,239)
|
|
Less: Comprehensive
loss attributable to noncontrolling interest
|
|
|
(182,086)
|
|
|
|
(251,974)
|
|
Comprehensive loss
attributable to common stockholders of
Tantech Holdings Ltd.
|
|
$
|
(5,594,526)
|
|
|
$
|
(171,265)
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per
share - Basic and Diluted
|
|
$
|
(0.18)
|
|
|
$
|
0.04
|
|
Weighted Average
Shares Outstanding - Basic and Diluted
|
|
|
37,253,764
|
|
|
|
28,872,602
|
|
Tantech Holdings
Ltd and Subsidiaries
|
Consolidated
Statements of Cash Flows
|
(Unaudited)
|
|
|
|
For the Six Months
Ended June 30,
|
|
|
|
2021
|
|
|
2020
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(6,752,212)
|
|
|
$
|
971,195
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
|
234,756
|
|
|
|
227,049
|
|
Amortization of
intangible asset
|
|
|
235,593
|
|
|
|
216,781
|
|
Allowance for
doubtful accounts - accounts receivable
|
|
|
14,395
|
|
|
|
-
|
|
Loss from disposal of
property, plant and equipment
|
|
|
-
|
|
|
|
2,867
|
|
Issuance of common
stock for services
|
|
|
1,840,000
|
|
|
|
33,812
|
|
Inventory
markdown
|
|
|
296,702
|
|
|
|
-
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(1,611,062)
|
|
|
|
(4,653,105)
|
|
Advances to
suppliers
|
|
|
(128,735)
|
|
|
|
9,607,140
|
|
Advances to suppliers
- related party
|
|
|
1,546,000
|
|
|
|
(1,422,000)
|
|
Inventory
|
|
|
(39,140)
|
|
|
|
(1,317,697)
|
|
Prepaid expenses and
other receivables
|
|
|
(417,223)
|
|
|
|
8,280
|
|
Accounts
payable
|
|
|
743,811
|
|
|
|
1,032,112
|
|
Accrued liabilities
and other payables
|
|
|
(917,137)
|
|
|
|
232,756
|
|
Customer
deposits
|
|
|
2,945,780
|
|
|
|
(2,908,226)
|
|
Taxes payable, net of
prepaid taxes
|
|
|
352,443
|
|
|
|
409,442
|
|
Net cash (used in)
provided by operating activities
|
|
|
(1,656,029)
|
|
|
|
2,440,406
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Acquisition of
property, plant and equipment
|
|
|
(5,086)
|
|
|
|
(9,524)
|
|
Proceeds from
disposal of property, plant and equipment
|
|
|
-
|
|
|
|
21,450
|
|
Net cash (used in)
provided by investing activities
|
|
|
(5,086)
|
|
|
|
11,926
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Proceeds from equity
financing
|
|
|
6,939,000
|
|
|
|
-
|
|
Repayment of loans
from third party
|
|
|
(309,200)
|
|
|
|
-
|
|
Bank acceptance notes
payable, net of repayment
|
|
|
(1,767,975)
|
|
|
|
1,221,327
|
|
Proceeds from bank
loans
|
|
|
2,473,600
|
|
|
|
6,652,116
|
|
Repayment of bank
loans
|
|
|
(2,782,800)
|
|
|
|
(6,794,316)
|
|
Proceeds from
(repayment of) loans from related parties, net
|
|
|
161,589
|
|
|
|
(557,765)
|
|
Net cash provided
by financing activities
|
|
|
4,714,214
|
|
|
|
521,362
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash, restricted cash and cash
equivalents
|
|
|
319,398
|
|
|
|
(198,016)
|
|
|
|
|
|
|
|
|
|
|
Net increase in
cash, restricted cash and cash equivalents
|
|
|
3,372,497
|
|
|
|
2,775,678
|
|
|
|
|
|
|
|
|
|
|
Cash, restricted
cash and cash equivalents, beginning of
period
|
|
|
37,339,304
|
|
|
|
12,645,977
|
|
|
|
|
|
|
|
|
|
|
Cash, restricted
cash and cash equivalents, end of period
|
|
$
|
40,711,801
|
|
|
$
|
15,421,655
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure information:
|
|
|
|
|
|
|
|
|
Income taxes
paid
|
|
$
|
709,980
|
|
|
$
|
28,487
|
|
Interest
paid
|
|
$
|
137,594
|
|
|
$
|
168,560
|
|
View original
content:https://www.prnewswire.com/news-releases/tantech-reports-financial-results-for-the-first-six-months-of-2021-301406749.html
SOURCE Tantech Holdings Ltd.