Exhibit 99.1
Kandi Technologies Reports Second Quarter 2017 Financial Results
JINHUA, CHINA-- (August 9, 2017) -Kandi Technologies Group, Inc.(the “Company,” “we” or “Kandi”) (NASDAQ GS: KNDI), today announced its financial results for the second quarter of 2017.
Second Quarter Highlights
| ● | Total revenues were $27.3 million for the second quarter of 2017, a decrease of 50.5% from total revenues of $55.2 million for the same period in 2016. |
| ● | Electric Vehicle (“EV”) parts sales decreased by 51.3%, to $26.2 million for the second quarter of 2017, compared with EV parts sales of $53.8 million for the same period in 2016. |
| ● | Revenues from sales of off-road vehicles decreased by 19.5%, to $1.1 million for the second quarter of 2017, compared with revenues from sales of off-road vehicles of $1.4 million for the same period in 2016. |
| | | |
| | ● | GAAP net loss for the second quarter of 2017 was $11.6 million, or a loss of $0.24 per fully diluted share, compared with GAAP net income of $2.8 million, or income of $0.06 per fully diluted share for the same period in 2016. This decrease is largely due to JV Company losses and significantly increased research and development expenses of $5.1 million for this quarter |
| | | |
| | ● | Non-GAAP adjusted net loss1, which excludes stock award expenses, was $9.5 million in the second quarter of 2017, compared with non-GAAP net income of $10.5 million for the same period in 2016. Non-GAAP adjusted loss per share1 was approximately $0.20 per fully diluted share for the second quarter of 2017, compared with Non-GAAP adjusted earnings per share1of $0.22 per fully diluted share for the same period in 2016. |
| | | |
| | ● | Working capital surplus was $56.8 million as of June 30, 2017. Cash, cash equivalents and restricted cash totaled $30.1 million as of June 30, 2017. |
1Non-GAAP measures, including Non-GAAP net income and Non-GAAP EPS are defined as the financial measures excluding the change of fair value of financial derivatives and the effects of stock award expenses. We supply non-GAAP information because we believe it allows our investors to obtain a clearer understanding of our operations. Any non-GAAP measure should not be considered as a substitute for, and should only be read in conjunction with, measures of financial performance prepared in accordance with GAAP.
Mr. Hu Xiaoming, Chairman and Chief Executive Officer of Kandi, commented, “2017 has been a challenging year for Kandi. The confusion surrounding the subsidy heavily impacted the Company’s business last year and we have been trying to regain the momentum this year. The management team is working hard to explore better growth opportunities. Despite second-quarter losses, Kandi Vehicles’ estimated value has exceeded RMB four billion, the management team will actively seek strategic investors based upon the estimated value to increase its competitive advantages. The efforts the Company has made will lay a solid foundation to achieve strong business results.”
Net Revenues and Gross Profit
| | | 2Q17 | | | 2Q16 | | | Y-o-Y% | |
| Net Revenues (US$million) | | $ | 27.3 | | | $ | 55.2 | | | | -50.5 | % |
| Gross Profit (US$million) | | $ | 3.8 | | | $ | 8.5 | | | | -55.6 | % |
| Gross Margin | | | 13.7 | % | | | 15.3 | % | | | - | |
Net revenues for the second quarter of 2017 decreased by 50.5% compared to the same period last year. The decrease in net revenues was mainly due to a decrease in EV parts sales during this quarter. Selling prices of our products for the three months ended June 30, 2017, decreased on average from the same period last year. The decrease in revenues was primarily due to this decrease in sales volume.
Operating Income (Loss)
| | | 2Q17 | | | 2Q16 | | | Y-o-Y% | |
| Operating Expenses (US$million) | | $ | 7.1 | | | $ | 10.8 | | | | -34.5 | % |
| Operating Loss (US$million) | | $ | (3.3 | ) | | $ | (2.4 | ) | | | -39.7 | % |
| Operating Margin | | | -12.2 | % | | | -4.3 | % | | | - | |
| Operating (Loss) Income (US$million) (Non-GAAP) | | $ | (1.3 | ) | | $ | 5.9 | | | | -122.0 | % |
Total operating expenses in the second quarter of 2017 were $7.1 million, compared with $10.8 million in the same quarter of 2016. The decrease in total operating expenses was due to decreased SG&A expenses, which were $2.0 million in this quarter compared with $10.4 million in the same quarter last year.
GAAP Net (Loss) Income
| | | 2Q17 | | | 2Q16 | | | Y-o-Y% | |
| Net (Loss) Income (US$million) | | $ | (11.6 | ) | | $ | 2.8 | | | | -513.8 | % |
| (Loss) Earnings per Weighted Average Common Share | | $ | (0.24 | ) | | $ | 0.06 | | | | - | |
| (Loss) Earnings per Weighted Average Diluted Share | | $ | (0.24 | ) | | $ | 0.06 | | | | - | |
| Stock Award Expenses | | $ | 2.0 | | | $ | 8.3 | | | | -75.6 | % |
| Change in the Fair Value of Financial Derivatives | | | - | | | $ | (0.5 | ) | | | - | |
| Non-GAAP Net (Loss) Income from Continuing Operations | | $ | (9.5 | ) | | $ | 10.5 | | | | -190.6 | % |
Net loss was $11.6 million in the second quarter, compared with net income of $2.8 million in the same quarter of 2016. The negative change was primarily attributable to JV Company losses and significantly increased research and development expenses of approximately $5.1 million.
Non-GAAP net loss was $9.5 million in the second quarter of 2017, a 190.6% decrease compared to Non-GAAP net income of $10.5 million in the same quarter of 2016. The decrease was primarily attributable to the JV Company’s net losses, and significantly increased research and development expenses made in an effort to prepare the Company for future business growth.
Kandi Electric Vehicles Group Co., Ltd. (the “JV Company”) Financial Results
In the second quarter of 2017, the JV Company sold 365 units of EV products.
The condensed financial income statements of the JV Company in the first quarter are as set forth below:
| | | 2Q17 | | | 2Q16 | | | Y-o-Y% | |
| Net Revenues (US$million) | | $ | 18.7 | | | $ | 111.8 | | | | -83.3 | % |
| Gross (Loss) Income (US$million) | | $ | (1.5 | ) | | $ | 14.7 | | | | -110.2 | % |
| Gross Margin | | | - | | | | 13.1 | % | | | - | |
| Net (Loss) Income | | $ | (14.6 | ) | | $ | 8.6 | | | | -269.8 | % |
| % of Net revenue | | | - | | | | 7.7 | % | | | - | |
Revenue for the JV Company was $18.7 million in the second quarter of 2017, a decrease of 83.3% compared to the same quarter of 2016. Net loss was $14.6 million, a 269.8% decrease compared tonet income of $8.6 million in the same quarter of 2016.
Kandi’s investments in the JV Company are accounted for using the equity method of accounting because Kandi has a 50% ownership interest in the JV Company. As a result, Kandi recorded 50% of the JV Company’s losses of $7.3 million for this quarter. After eliminating intra-entity profits and losses, Kandi’s share of the after-tax loss of the JV Company was $8.7 million for the second quarter of 2017.
Second Quarter 2017 Conference Call Details
The Company has scheduled a conference call and live webcast to discuss its second quarter 2017 financial results at 8:00 A.M. Eastern Time (8:00 P.M. Beijing Time) on August 9, 2017. Mr. Hu Xiaoming, Chief Executive Officer of the Company, and Mr. Mei Bing, Chief Financial Officer of the Company, will deliver prepared remarks to be followed by a question and answer session.
Dial-in details for the conference call are as follows:
| ● | Toll-free dial-in number: +1-877-407-3982 |
| ● | International dial-in number: + 1-201-493-6780 |
| ● | Webcast and replay: http://public.viavid.com/index.php?id=125842 |
A live audio webcast of the call can also be accessed by visiting Kandi’s Investor Relations page on the Company’s website at http://www.kandivehicle.com. An archive of the webcast will be available on the Company’s website following the live call.
About Kandi Technologies Group, Inc.
Kandi Technologies Group, Inc. (KNDI), headquartered in Jinhua, Zhejiang Province, is engaged in the research and development, manufacturing and sales of various vehicle products. Kandi has established itself as one of China's leading manufacturers of pure electric vehicle ("EV") products (through its joint venture), EV parts and off-road vehicles.Kandi conducts its primary business operations through its wholly-owned subsidiary, Zhejiang Kandi Vehicles Co., Ltd. (“Kandi Vehicles”), and the partially and wholly-owned subsidiaries of Kandi Vehicles.More information can be viewed at the Company's corporate website at http://www.kandivehicle.com. The Company routinely posts important information on its website.
Safe Harbor Statement
This press release contains certain statements that may include “forward-looking statements.” All statements other than statements of historical fact included herein are “forward-looking statements.” These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions, involving known and unknown risks and uncertainties. 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. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press 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 the risk factors discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on the SEC’s 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 risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Follow us on Twitter: @ Kandi_Group
Company Contact:
Ms. Kewa Luo
Kandi Technologies Group, Inc.
Phone: 1-212-551-3610
Email:IR@kandigroup.com
- Tables Below -
KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
| | | June 30,
2017 | | | December 31,
2016 | |
| Current assets | | | | | | |
| Cash and cash equivalents | | $ | 7,407,032 | | | $ | 12,235,921 | |
| Restricted cash | | | 22,708,654 | | | | 12,957,377 | |
| Short term investment | | | - | | | | 4,463,097 | |
| Accounts receivable | | | 34,964,666 | | | | 32,394,613 | |
| Inventories (net of provision for slow moving inventory of $465,096 and $415,797 as of June 30, 2017 and December 31, 2016, respectively | | | 13,427,455 | | | | 11,914,110 | |
| Notes receivable from JV Company and related party | | | - | | | | 400,239 | |
| Other receivables | | | 1,185,804 | | | | 66,064 | |
| Prepayments and prepaid expense | | | 4,319,890 | | | | 4,317,855 | |
| Due from employees | | | 33,076 | | | | 4,863 | |
| Advances to suppliers | | | 15,009,973 | | | | 38,250,818 | |
| Amount due from JV Company, net | | | 138,908,557 | | | | 136,536,159 | |
| Amount due from related party | | | 10,742,243 | | | | 10,484,816 | |
| TOTAL CURRENT ASSETS | | | 248,707,350 | | | | 264,025,932 | |
| | | | | | | | | |
| LONG-TERM ASSETS | | | | | | | | |
| Property, Plant and equipment, net | | | 13,533,421 | | | | 15,194,442 | |
| Land use rights, net | | | 11,903,213 | | | | 11,775,720 | |
| Construction in progress | | | 43,655,614 | | | | 27,054,181 | |
| Deferred taxes assets | | | 4,394,192 | | | | - | |
| Long Term Investment | | | 1,401,304 | | | | 1,367,723 | |
| Investment in JV Company | | | 65,258,976 | | | | 77,453,014 | |
| Goodwill | | | 322,591 | | | | 322,591 | |
| Intangible assets | | | 372,163 | | | | 413,211 | |
| Advances to suppliers | | | 29,972,701 | | | | 33,819,419 | |
| Other long term assets | | | 7,880,223 | | | | 8,271,952 | |
| TOTAL Long-Term Assets | | | 178,694,398 | | | | 175,672,253 | |
| | | | | | | | | |
| TOTAL ASSETS | | $ | 427,401,748 | | | $ | 439,698,185 | |
| | | | | | | | | |
| CURRENT LIABILITIES | | | | | | | | |
| Accounts payables | | $ | 111,356,483 | | | $ | 115,870,051 | |
| Other payables and accrued expenses | | | 5,269,999 | | | | 4,835,952 | |
| Short-term loans | | | 32,008,732 | | | | 34,265,065 | |
| Customer deposits | | | 177,328 | | | | 41,671 | |
| Notes payable | | | 37,289,011 | | | | 14,797,325 | |
| Income tax payable | | | 1,435,646 | | | | 1,364,235 | |
| Due to employees | | | 26,156 | | | | 21,214 | |
| Deferred taxes liabilities | | | - | | | | 118,643 | |
| Deferred income | | | 1,371,213 | | | | 6,363,751 | |
| Loss contingency-litigation | | | 2,950,114 | | | | - | |
| Total Current Liabilities | | | 191,884,682 | | | | 177,677,907 | |
| | | | | | | | | |
| LONG-TERM LIABILITIES | | | | | | | | |
| Long term bank loans | | | 29,501,136 | | | | 28,794,172 | |
| Deferred taxes liabilities | | | - | | | | 878,639 | |
| Total Long-Term Liabilities | | | 29,501,136 | | | | 29,672,811 | |
| | | | | | | | | |
| TOTAL LIABILITIES | | | 221,385,818 | | | | 207,350,718 | |
| | | | | | | | | |
| STOCKHOLDER’S EQUITY | | | | | | | | |
| Common stock, $0.001 par value; 100,000,000 shares authorized; 48,021,538 and 47,699,638 shares issued and outstanding at June 30,2017 and December 31,2016, respectively | | | 48,022 | | | | 47,700 | |
| Additional paid-in capital | | | 232,380,792 | | | | 227,911,477 | |
| Retained earnings (the restricted portion is $4,217,753 and $4,219,808 at June 30,2017 and December 31, 2016, respectively) | | | (11,166,290 | ) | | | 24,545,163 | |
| Accumulated other comprehensive income (loss) | | | (15,246,594 | ) | | | (20,156,873 | ) |
| TOTAL STOCKHOLDERS’ EQUITY | | | 206,015,930 | | | | 232,347,467 | |
| | | | | | | | | |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 427,401,748 | | | $ | 439,698,185 | |
KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND
COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30,
2017 | | | June 30,
2016 | | | June 30,
2017 | | | June 30,
2016 | |
| | | | | | | | | | | | | |
| REVENUES FROM UNRELATED PARTY, NET | | $ | 1,153,555 | | | $ | 6,979,488 | | | $ | 4,116,486 | | | $ | 40,953,904 | |
| REVENUES FROM JV COMPANY AND RELATED PARTY, NET | | | 26,171,724 | | | | 48,237,880 | | | | 27,483,366 | | | | 64,921,357 | |
| | | | | | | | | | | | | | | | | |
| REVENUES, NET | | | 27,325,279 | | | | 55,217,368 | | | | 31,599,852 | | | | 105,875,261 | |
| | | | | | | | | | | | | | | | | |
| COST OF GOODS SOLD | | | 23,568,343 | | | | 46,762,331 | | | | 27,175,584 | | | | 90,702,126 | |
| | | | | | | | | | | | | | | | | |
| GROSS PROFIT | | | 3,756,936 | | | | 8,455,037 | | | | 4,424,268 | | | | 15,173,135 | |
| | | | | | | | | | | | | | | | | |
| OPERATING EXPENSES: | | | | | | | | | | | | | | | | |
| Research and development | | | 5,142,041 | | | | 494,193 | | | | 25,911,773 | | | | 700,161 | |
| Selling and marketing | | | 402,253 | | | | 730,443 | | | | 760,562 | | | | 776,778 | |
| General and administrative | | | 1,558,652 | | | | 9,625,194 | | | | 9,877,946 | | | | 17,658,076 | |
| Total Operating Expenses | | | 7,102,946 | | | | 10,849,830 | | | | 36,550,281 | | | | 19,135,015 | |
| | | | | | | | | | | | | | | | | |
| LOSS FROM OPERATIONS | | | (3,346,010 | ) | | | (2,394,793 | ) | | | (32,126,013 | ) | | | (3,961,880 | ) |
| | | | | | | | | | | | | | | | | |
| OTHER INCOME (EXPENSE): | | | | | | | | | | | | | | | | |
| Interest income | | | 559,425 | | | | 785,152 | | | | 1,090,067 | | | | 1,565,333 | |
| Interest expense | | | (548,810 | ) | | | (432,318 | ) | | | (1,163,263 | ) | | | (874,397 | ) |
| Change in fair value of financial instruments | | | 0 | | | | 526,558 | | | | 0 | | | | 3,812,898 | |
| Government grants | | | 262,137 | | | | 1,503,384 | | | | 5,329,611 | | | | 1,697,857 | |
| Share of (loss) profit after tax of JV | | | (8,738,254 | ) | | | 4,918,633 | | | | (13,899,967 | ) | | | 96,163 | |
| Other income, net | | | 121,556 | | | | 286,790 | | | | 150,177 | | | | 309,177 | |
| Total other (expense) income, net | | | (8,343,946 | ) | | | 7,588,199 | | | | (8,493,375 | ) | | | 6,607,031 | |
| | | | | | | | | | | | | | | | | |
| (LOSS) INCOME BEFORE INCOME TAXES | | | (11,689,956 | ) | | | 5,193,406 | | | | (40,619,388 | ) | | | 2,645,151 | |
| | | | | | | | | | | | | | | | | |
| INCOME TAX BENEFIT (EXPENSE) | | | 131,939 | | | | (2,400,226 | ) | | | 4,907,936 | | | | 236,449 | |
| | | | | | | | | | | | | | | | | |
| NET (LOSS) INCOME | | | (11,558,017 | ) | | | 2,793,180 | | | | (35,711,452 | ) | | | 2,881,600 | |
| | | | | | | | | | | | | | | | | |
| OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES | | | | | | | | | | | | | | | | |
| Foreign currency translation | | | 3,118,462 | | | | (7,152,903 | ) | | | 4,910,278 | | | | (5,628,264 | ) |
| | | | | | | | | | | | | | | | | |
| COMPREHENSIVE LOSS | | $ | (8,439,555 | ) | | $ | (4,359,723 | ) | | $ | (30,801,174 | ) | | $ | (2,746,664 | ) |
| | | | | | | | | | | | | | | | | |
| WEIGHTED AVERAGE SHARES OUTSTANDING BASIC | | | 47,974,974 | | �� | | 47,601,286 | | | | 47,854,351 | | | | 47,305,560 | |
| WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED | | | 47,974,974 | | | | 47,601,286 | | | | 47,854,351 | | | | 47,311,584 | |
| | | | | | | | | | | | | | | | | |
| NET (LOSS) INCOME PER SHARE, BASIC | | $ | (0.24 | ) | | $ | 0.06 | | | $ | (0.75 | ) | | $ | 0.06 | |
| NET (LOSS) INCOME PER SHARE, DILUTED | | $ | (0.24 | ) | | $ | 0.06 | | | $ | (0.75 | ) | | $ | 0.06 | |
KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| | | Six months Ended | |
| | | June 30,
2017 | | | June 30,
2016 | |
| | | | | | | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | |
| Net (loss) income | | $ | (35,711,452 | ) | | $ | 2,881,600 | |
| Adjustments to reconcile net income to net cash provided by operating activities | | | | | | | | |
| Depreciation and amortization | | | 2,334,776 | | | | 2,458,160 | |
| Assets Impairments | | | 38,548 | | | | - | |
| Deferred taxes | | | (5,415,959 | ) | | | (4,645,415 | ) |
| Change in fair value of financial instruments | | | - | | | | (3,812,898 | ) |
| Share of loss after tax of JV Company | | | 13,899,967 | | | | (96,163 | ) |
| Stock Compensation cost | | | 4,493,187 | | | | 15,134,658 | |
| | | | | | | | | |
| Changes in operating assets and liabilities, net of effects of acquisition: | | | | | | | | |
| (Increase) Decrease In: | | | | | | | | |
| Accounts receivable | | | (2,826,433 | ) | | | (45,728,877 | ) |
| Notes receivable | | | - | | | | 229,449 | |
| Notes receivable from JV Company and related party | | | 4,875,795 | | | | - | |
| Inventories | | | (1,242,422 | ) | | | 9,189,542 | |
| Other receivables and other assets | | | (498,376 | ) | | | (9,424,711 | ) |
| Due from employee | | | (23,344 | ) | | | (56,998 | ) |
| Advances to supplier and Prepayments and prepaid expenses | | | 23,946,781 | | | | (12,953,797 | ) |
| Advances to suppliers-Long term | | | (4,099,879 | ) | | | - | |
| Amount due from JV Company | | | (21,853,571 | ) | | | (84,064,780 | ) |
| Due from related party | | | - | | | | 29,188,707 | |
| | | | | | | | | |
| Increase (Decrease) In: | | | | | | | | |
| Accounts payable | | | 25,017,146 | | | | 92,266,667 | |
| Other payables and accrued liabilities | | | 127,252 | | | | 6,009,203 | |
| Notes payable | | | (2,731,692 | ) | | | (3,824,162 | ) |
| Customer deposits | | | 132,765 | | | | 154,168 | |
| Income Tax payable | | | (31,314 | ) | | | 3,363,489 | |
| Deferred income | | | (5,077,291 | ) | | | - | |
| Loss contingency-litigation | | | 2,909,151 | | | | - | |
| Net cash used in operating activities | | $ | (1,736,365 | ) | | $ | (3,732,158 | ) |
| | | | | | | | | |
| CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | |
| Purchases of plant and equipment, net | | | (128,509 | ) | | | (37,554 | ) |
| Disposal of land use rights and other intangible assets | | | - | | | | 13,775 | |
| Purchases of construction in progress | | | (1,029,516 | ) | | | (1,356,866 | ) |
| Repayment of notes receivable | | | - | | | | 4,953,787 | |
| Short Term Investment | | | 4,509,183 | | | | 1,602,698 | |
| Net cash provided by investing activities | | $ | 3,351,158 | | | $ | 5,175,840 | |
| | | | | | | | | |
| CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | |
| Restricted cash | | | (9,302,161 | ) | | | 1,300,215 | |
| Proceeds from short-term bank loans | | | 13,963,923 | | | | - | |
| Repayments of short-term bank loans | | | (17,018,531 | ) | | | - | |
| Proceeds from notes payable | | | 5,713,368 | | | | - | |
| Warrant exercise | | | - | | | | 434,666 | |
| Net cash (used in) provided by financing activities | | $ | (6,643,401 | ) | | $ | 1,734,881 | |
| | | | | | | | | |
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | | | (5,028,608 | ) | | | 3,178,563 | |
| Effect of exchange rate changes on cash | | | 199,530 | | | | (383,266 | ) |
| Cash and cash equivalents at beginning of year | | | 12,235,921 | | | | 16,738,559 | |
| | | | | | | | | |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | | | 7,406,843 | | | | 19,533,856 | |
| | | | | | | | | |
| SUPPLEMENTARY CASH FLOW INFORMATION | | | | | | | | |
| Income taxes paid | | | 1,001,501 | | | | 1,051,032 | |
| Interest paid | | | 742,958 | | | | 877,496 | |
| | | | | | | | | |
| SUPPLEMENTAL NON-CASH DISCLOSURES: | | | | | | | | |
| Prepayment transferred to Construction in progress | | | 8,712,000 | | | | - | |
| Acquisition of Construction in progress by Accounts Payable | | | 5,974,383 | | | | - | |
| Settlement of due from JV Company and related parties with notes receivable | | | 22,819,847 | | | | 34,866,384 | |
| Settlement of accounts receivables with notes receivable from unrelated parties | | | 1,076,386 | | | | 12,714,237 | |
| Assignment of notes receivable to supplier to settle accounts payable | | | 19,424,810 | | | | 49,046,178 | |
| Settlement of accounts payable with notes payables | | | 18,839,444 | | | | 4,796,570 | |
| Deferred tax change to other comprehensive income | | | 24,486 | | | | - | |
7
