China Marine Reports Record 2010 Revenues of $122.7 million and Adjusted Net Income of $23.5 million
FY 2010 Exceeds Guidance
Company Provides 2011 Guidance: $150.0+million in revenues and $27.3 million in adjusted net income
SHISHI, China, March 2, 2011 /PRNewswire-Asia-FirstCall/ -- China Marine Food Group Limited (NYSE Amex: CMFO) ("China Marine" or the "Company"), a manufacturer of Mingxiang® seafood-based snack foods, "Hi-Power" marine algae-based beverages and a distributor of frozen marine catch, today announced its financial results for its fourth quarter ended December 31, 2010.
Full Year 2010 Highlights
- Revenue was $122.7 million, up 76.3% and ahead of $100.0+ million projection
- Gross margins expanded 300 basis point year-over-year to 30.5%
- $26.0 million in "Hi-Power" sales exceeded prior guidance of $23.0-$25.0 million
- Expanded Mingxiang®-branded snack foods to approximately 3,200 retail locations
Financial Summary
Fourth Quarter 2010 Results |
||||
Q4 2010 |
Q4 2009 |
CHANGE |
||
Net Sales |
$52.8 million |
$24.9 million |
+112.2% |
|
Gross Profit |
$12.3 million |
$5.8 million |
+111.3% |
|
Net Income |
$6.2 million |
$4.4 million |
+42.9% |
|
Diluted EPS* |
$0.21 |
$0.18 |
+16.7% |
|
Adjusted Net Income** |
$6.8 million |
$4.4 million |
+56.7% |
|
Adjusted Diluted EPS** |
$0.24 |
$0.18 |
+33.3% |
|
* EPS calculated for the period is based on 29.1 million shares on December 31, 2010 versus 24.1 million shares reported on December 31, 2009.
** Adjusted Net Income and Diluted EPS in Q42010 are non-GAAP calculations and do not include $0.6 million of non-cash, amortization of intangible assets related to the Company's acquisition. For more information about the non-GAAP financial measures contained in this press release, please see "About Non-GAAP Financial Measures" below.
"2010 was a transformational year for China Marine for several reasons," began Mr. Pengfei Liu, Chairman and CEO of China Marine. "First, we entered a new growth business by acquiring 'Hi-Power' beverages in January of 2010. After incorporating improved labeling and packaging, 'Hi-Power' sales exceeded our expectations during its first year where we only penetrated the Fujian market. For the two years leading up to our 'Hi-Power' acquisition, we targeted a complementary marine-based business and this turned out to be the perfect fit. This high margin business will provide further growth in 2011 and remain an important component of our financial results for years to come. Second, our Mingxiang®-branded seafood snacks continued to gain shelf space and market share as we further invested in expanding our sales staff and strengthening our brand. Sales were especially robust in Zhejiang and Fujian, two provinces responsible for nearly 77.0% of total Mingxiang® sales. Third, our marine catch business has been a consistent contributor of revenues and provides us significant purchasing power when we are building raw material inventories. Lastly, we broke ground on our cold storage facility and have completed the foundation of a new business which we believe will generate a recurring $8.0 million in revenues and $4.0 million in earnings on an annual basis once the site is fully operational."
Fourth Quarter 2010 Results
Seafood Snack Foods
China Marine's sale of Mingxiang®-branded seafood snack foods produced $18.7 million in revenue, a 29.1% increase versus the fourth quarter of 2009, and accounted for 35.4% of total revenue in the fourth quarter of 2010. The Company added approximately 200 new retail locations which carry Mingxiang® snack foods and recorded increases in its core sales regions of Zhejiang and Fujian, while measurably growing sales in developing sales regions in Guangdong and Shandong. The Company has also hired six new sales staff during the fourth quarter increasing the total to 52. China Marine has maintained its product line of 29 varieties of seafood jerky snacks sold through 18 distributors who now service approximately 3,200 retail locations. Gross profit margins for the seafood snack foods segment were 34.5% and were in line with company guidance of 30-plus percent.
"Hi-Power" Beverages
In the fourth quarter, as a China Marine subsidiary, revenues from the "Hi-Power" algae-based beverages were $8.7 million and accounted for 16.5% of total revenues in the quarter. Sales were primarily driven by reorders in the Company's home province, Fujian. The total number of retail end-points for "Hi-Power" was approximately 13,000 on December 31, 2010, as compared to 11,000 points during the middle of 2010. "Hi-Power" beverages are sold in major international retailers such as Wal-Mart®, China-based supermarkets like Trust-Mart®, convenience stores, bars, restaurants, school canteens and local corner stores which feature "Hi-Power" beverages as a functional drink side by side with local and well-known international brands.
Gross margin was 41.2% in the fourth quarter and consistent with Company expectations. China Marine outsources production, bottling and distribution to two bottling facilities in Fujian province to minimize its working capital and capital expenditures. Management continues to invest in sales and marketing to drive trial and brand awareness for prospecting and new consumers. The Company spent approximately $2.4 million on advertising and promotions in the fourth quarter of 2010, which included taste testing and promotional product for retail customers, sponsorship of sporting events and continued a series of TV advertisements on stations in Fujian province. The sales and marketing staff has increased significantly from 23 members at the beginning of 2010 to 151at the end of 2010, including brand and sales managers recruited from international beverage brands.
Marine Catch
China Marine's frozen marine catch business segment generated $25.4 million sales during the fourth quarter of 2010 compared to $10.4 million in Q4 2009. Typically, in the third or fourth quarter of every year, the Company sells bulk orders of frozen marine catch to select domestic and export distributors. A significant amount of this catch represents similar types of squid species the Company uses in the production of its seafood snack foods and thus limits the Company's exposure to price fluctuations. Inventory accrued during the third quarter of the year for marine catch "trade" sales are shipped to customers in the fourth quarter on 60-day payment terms. Gross margin for the segment was 8.9% in Q4 2010 compared to 10.0% in the same period last year. Management continues to expect similar level of gross margin for its frozen marine catch business.
Total revenue in all segments including Mingxiang®-branded seafood snack foods, "Hi-Power" beverages and marine catch for the quarter ended December 31, 2010 was $52.8 million, up 112.2% from $24.9 million in the prior year's period.
Costs of goods sold totaled $40.5 million for the quarter, or 76.7% of revenues for the period ended December 31, 2010. Costs of goods consist of raw materials, packaging materials, direct labor and manufacturing overhead. In the seafood snack food segment, costs of raw materials account for the greatest percentage of costs and were 76.8% for the quarter, while packaging represented 12.8%. Conversely, in the beverage segment, costs of raw materials were 15.6% of the total costs of goods, with approximately 65.7% spent on packaging. China Marine produces seafood snack foods at its dedicated production facilities in Shi Shi while "Hi-Power" production is outsourced to blending and bottling facilities in Fujian province.
Gross profit in the fourth quarter of fiscal year 2010 was $12.3 million, an increase of 111.3% from $5.8 million in the prior year's corresponding period. Consolidated gross margins were 23.3% for the quarter, flat from 23.4% for the same period of the prior year. Gross margin for the processed seafood, "Hi-Power" and marine catch businesses were 34.5%, 41.2%, and 8.9%, respectively.
Selling, general and administrative ("SG&A") expenses in the quarter ended December 31, 2010 were $4.3 million compared to $1.0 million in the prior year period. Increases were mainly attributed to increased sales and advertising costs associated with "Hi Power" sales and the recruitment and training of new sales personnel in both Mingxiang® and "Hi-Power" sales teams.
Operating income in the fourth quarter of 2010 was $7.4 million, with operating margin of 14.0%, compared to $4.8 million and 19.4%, respectively in the prior year period. Excluding the $0.6 million non-cash amortization expense related to the "Hi-Power" acquisition, operating income was $8.0 million with adjusted operating profit margins of 15.0%.
GAAP net income for the quarter ended December 31, 2010 was $6.2 million, compared to $4.4 million in the prior year's corresponding period, a 42.9% increase year over year. Adjusted non-GAAP net income for the fourth quarter of 2010 excludes the non-cash amortization charges of $0.6 million was $6.8 million, a 56.7% increase year-over-year. Earnings per weighted average diluted shares were $0.21 based on 29.1 million fully diluted shares, while adjusted earnings were $0.24 per share. The Company's 15% preferential tax rate is secured through 2012.
Twelve Months Results
Full Year 2010 Results |
||||
FY 2010 |
FY 2009 |
CHANGE |
||
Net Sales |
$122.7 million |
$69.6 million |
+ 76.3% |
|
Gross Profit |
$37.5 million |
$19.1 million |
+ 95.8% |
|
Net Income |
$21.1 million |
$14.6 million |
+ 45.1% |
|
Diluted EPS* |
$0.73 |
$0.60 |
+ 21.7% |
|
Adjusted Net Income** |
$23.5 million |
$14.6 million |
+ 61.4% |
|
Adjusted Diluted EPS** |
$0.81 |
$0.60 |
+ 35.0% |
|
* EPS calculated for the period is based on 29.0 million shares on December 31, 2010 versus 24.4 million shares reported on December 31, 2009.
** Adjusted Net Income and Diluted EPS in 2010 are non-GAAP calculations and do not include $2.4 million of non-cash, amortization of intangible assets related to the Company's acquisition. For more information about the non-GAAP financial measures contained in this press release, please see "About Non-GAAP Financial Measures" below.
Revenue during the twelve months ended December 31, 2010 increased by 76.3% to $122.7 million compared last year. Sales of seafood snack foods increased by 35.4% to $70.5 million. Sales of "Hi-Power" algae-based beverages were $26.0 million during the twelve months ended December 31, 2010, compared to $7.6 million in the same year ago period under "Hi-Power"s previous owner. Marine catch sales grew by $8.7 million, or 49.4% for the twelve months period.
Gross profit was $37.5 million, an increase of 95.8% from $19.1 million in 2009. Consolidated gross margins were 30.5%, a 300 basis point improvement over the year ago period. Gross margins for the processed seafood line, "Hi-Power" beverages and marine catch businesses were 34.5%, 41.0%, and 9.4%, respectively.
SG&A expenses for the twelve months period were $9.6 million compared to $2.9 million in the prior year's period. Increases were a result of sales and advertising costs associated with the new beverage business and new staff hires. Operating income for the twelve months of 2010 was $25.3 million, with operating margin of 20.7%, a 56.8% year-over-year increase from $16.2 million a year ago.
Year-to-date 2010 GAAP net income was $21.1 million, compared to $14.6 million in the prior year's corresponding period, a 45.1% increase. Excluding the non-cash charge of $2.4 million associated to the amortization costs of the "Hi-Power" acquisition, adjusted net income for the full year was $23.5 million and exceeded management expectations of $21.5 million in adjusted net income. GAAP earnings per weighted average diluted shares were $0.73 based on 29.0 million fully diluted shares, while adjusted non-GAAP earnings per share were $0.81 for the twelve months period ended December 31, 2010.
Financial Condition
As of December 31, 2010, the Company had $15.6 million in cash compared to $7.1 million as of December 31, 2009. Cash flows from operations were a negative $6.3 million, with higher net income being offset by increased accounts receivable related to the marine catch sales in December of 2010. The Company offers 60 day terms select marine catch customers who make up the majority of its sales. As of February 28, 2011, cash balances on hand were approximately $47.2 million on a proforma basis due to collection of marine catch receivables.
Working capital was $64.8 million, up from $48.4 million as of December 31, 2009. The current ratio was 7.9to1 on December 31, 2010 compared to 7.0to1 on December 31, 2009. Accounts receivable were $48.5 million, compared to $18.8 million as of December 31, 2009.Of which $29.5 million of the receivables were related to fresh marine catch. Shareholder equity increased 91.1% to $114.4 million due primarily to a $28.5 million equity offering on January 25, 2010.
Business Updates:
2011 Guidance |
|||
Projections |
% Change |
||
Revenues: |
$150.0+ million |
+ 22.3% |
|
Adjusted Net Income: |
$27.3 million |
+ 16.1% |
|
Construction Update – Cold Storage Facility
The Company broke ground on its cold storage facility in April of 2010 and completed the foundation of the building in the beginning of 2011. China Marine anticipates completing this facility in the second half of 2011. The project is expected to contribute approximately $8.0 million in revenues and $4.0 million in net income yearly once fully operational. Capital expenditures year-to-date were $11.6 million, while management expects a total spend of approximately $20.0 million, including the land cost, to complete the build-out.
Fourth Quarter 2010 Conference Call
Mr. Pengfei Liu, Chairman and CEO, and Mr. Marco Ku, CFO, will host the conference call. To attend the call, please use the dial in information below. When prompted, ask for the "China Marine Food Group call" and/or be prepared to provide the conference ID.
Date: |
Thursday, March 3, 2011 |
|
Time: |
9:00 am Eastern Time US |
|
Conference Line Dial-In (U.S.): |
1-877-941-4776 |
|
International Dial-In: |
1-480-629-9762 |
|
Conference ID: |
4417209 "China Marine Conference Call" |
|
Webcast: |
||
Please dial in at least 10-minutes before the call to ensure timely participation.
A playback of the call will be available from 12:00 Noon Eastern Time on March 3until 11:59 pm Eastern Time on March 10, 2011. To listen, call 1-877-870-5176 within the United States or 1-858-384-5517 when calling internationally. Please use the replay pin number 4417209.
This call is being webcast by ViaVid Broadcasting and can be accessed by clicking on this link http://viavid.net/dce.aspx?sid=0000821C or at ViaVid's website at http://www.viavid.net, where the webcast can be accessed through March 3, 2012.
About China Marine
China Marine Food Group Ltd. is a food and beverage manufacturer of Mingxiang® seafood-based snack foods and "Hi-Power" marine algae-based health drinks, and a wholesaler of frozen marine catch in seven provinces in the PRC. Founded in 1994, China Marine has grown steadily and positioned its Mingxiang® brand as a category leader in 3,200 retail food sales points and 13,000 beverage sales points in China. The Company has received "The Famous Brand" and "Green Food" awards. Located in Fujian province, it is one of the largest coastal provinces in the PRC and a vital navigation hub between the East China Sea and the South China Sea. The Company is committed to the highest standard of quality control with the ISO9001, ISO14001, HACCP certification and EU export registration.
Forward Looking Statements
This release contains certain "forward-looking statements" relating to the business of China Marine Food Group Limited and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes, expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. China Marine Food Group Limited is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
About Adjusted Non-GAAP Financial Measures
To supplement the Company's consolidated financial statements, which statements are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: non-GAAP adjusted net income, and non-GAAP adjusted diluted EPS. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding the Company's performance and liquidity by excluding certain expenses and expenditures that may not be indicative of "recurring core business operating results", meaning operating performance excluding non-cash amortization charges for intangibles. China Marine believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing performance and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to historical performance and liquidity as well as comparisons to competitors' operating results. The Company believes these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of the business.
- Financial Statements Follow -
CHINA MARINE FOOD GROUP LIMITED CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2010 AND 2009 (Currency expressed in United States Dollars ("US$"), except for number of shares) |
|||||||
December 31, |
|||||||
2010 |
2009 |
||||||
ASSETS |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
15,556,772 |
$ |
7,143,232 |
|||
Accounts receivable, net |
48,530,539 |
18,834,062 |
|||||
Inventories |
9,992,870 |
3,876,950 |
|||||
Note receivable |
- |
26,399,696 |
|||||
Prepaid expenses and other current assets |
105,640 |
151,653 |
|||||
Total current assets |
74,185,821 |
56,405,593 |
|||||
Property, plant and equipment, net |
8,801,267 |
8,599,977 |
|||||
Land use rights, net |
2,991,459 |
615,355 |
|||||
Construction in progress |
13,409,068 |
- |
|||||
Prepayment for land use right |
- |
2,274,323 |
|||||
Intangible assets, net |
21,926,593 |
- |
|||||
Goodwill |
2,460,971 |
- |
|||||
TOTAL ASSETS |
$ |
123,775,179 |
$ |
67,895,248 |
|||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
Current liabilities: |
|||||||
Short-term borrowings |
$ |
- |
$ |
4,139,121 |
|||
Accounts payable, trade |
3,764,722 |
885,286 |
|||||
Amount due to a stockholder |
261,789 |
69,587 |
|||||
Income tax payable |
537,751 |
618,664 |
|||||
Accrued liabilities and other payables |
4,858,694 |
2,334,384 |
|||||
Total current liabilities |
9,422,956 |
8,047,042 |
|||||
Commitments and contingencies |
|||||||
Stockholders' equity: |
|||||||
Preferred stock, $0.001 par value; 1,000,000 shares authorized; 0 shares issued and outstanding as of December 31, 2010 and 2009 |
- |
- |
|||||
Common stock, $0.001 par value; 100,000,000 shares authorized; 28,977,976 and 23,413,639 shares issuedand outstanding as of December 31, 2010 and 2009 |
28,978 |
23,414 |
|||||
Additional paid-in capital |
47,377,872 |
16,888,532 |
|||||
Statutory reserve |
9,263,241 |
5,614,517 |
|||||
Accumulated other comprehensive income |
7,402,582 |
3,576,135 |
|||||
Retained earnings |
49,922,756 |
33,745,608 |
|||||
Total China Marine Food Group Limited stockholders' equity |
113,995,429 |
59,848,206 |
|||||
Non-controlling interests |
356,794 |
- |
|||||
Total stockholders' equity |
114,352,223 |
59,848,206 |
|||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
123,775,179 |
$ |
67,895,248 |
|||
CHINA MARINE FOOD GROUP LIMITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 (Currency expressed in United States Dollars ("US$"), except for number of shares) |
|||||||||||||
Year Ended December 31, |
|||||||||||||
2010 |
2009 |
||||||||||||
Revenue, net |
|||||||||||||
Processed seafood products |
$ |
70,466,645 |
$ |
52,049,023 |
|||||||||
Marine catch |
26,194,480 |
17,536,660 |
|||||||||||
Algae-based beverage products |
26,018,510 |
- |
|||||||||||
122,679,635 |
69,585,683 |
||||||||||||
Cost of revenue (inclusive of depreciation and amortization) |
|||||||||||||
Processed seafood products |
(46,140,571) |
(34,721,649) |
|||||||||||
Marine catch |
(23,730,303) |
(15,734,576) |
|||||||||||
Algae-based beverage products |
(15,348,486) |
- |
|||||||||||
(85,219,360) |
(50,456,225) |
||||||||||||
Gross profit |
37,460,275 |
19,129,458 |
|||||||||||
Operating expenses: |
|||||||||||||
Depreciation and amortization |
(2,522,058) |
(79,725) |
|||||||||||
Sales and marketing |
(6,359,641) |
(608,685) |
|||||||||||
General and administrative |
(3,230,177) |
(2,276,006) |
|||||||||||
Total operating expenses |
(12,111,876) |
(2,964,416) |
|||||||||||
Income from operations |
25,348,399 |
16,165,042 |
|||||||||||
Other income (expenses): |
|||||||||||||
Subsidy income |
82,168 |
309,901 |
|||||||||||
Rental income |
92,199 |
82,299 |
|||||||||||
Interest income |
111,955 |
288,687 |
|||||||||||
Interest expense |
(40,032) |
(230,433) |
|||||||||||
Income before income taxes |
25,594,689 |
16,615,496 |
|||||||||||
Income tax expense |
(4,455,167) |
(2,051,042) |
|||||||||||
NET INCOME |
21,139,522 |
14,564,454 |
|||||||||||
Less: net income attributable to non-controlling interests |
(570) |
- |
|||||||||||
Net income attributable to China Marine Food Group Limited |
$ |
21,138,952 |
$ |
14,564,454 |
|||||||||
Other comprehensive income: |
|||||||||||||
- Foreign currency translation gain |
3,826,447 |
127,699 |
|||||||||||
COMPREHENSIVE INCOME |
$ |
24,965,399 |
$ |
14,692,153 |
|||||||||
Net income per share attributable to China Marine Food Group Limited |
|||||||||||||
- Basic |
$ |
0.75 |
$ |
0.63 |
|||||||||
- Diluted |
$ |
0.73 |
$ |
0.60 |
|||||||||
Weighted average shares outstanding - Basic |
28,301,949 |
23,062,839 |
|||||||||||
- Diluted |
28,971,080 |
24,391,942 |
|||||||||||
CHINA MARINE FOOD GROUP LIMITED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 (Currency expressed in United States Dollars ("US$")) |
||||||||
Year Ended December 31, |
||||||||
2010 |
2009 |
|||||||
Cash flows from operating activities: |
||||||||
Net income |
$ |
21,139,522 |
$ |
14,564,454 |
||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: |
||||||||
Depreciation and amortization |
2,793,954 |
330,419 |
||||||
Loss on disposal of property, plant and equipment |
- |
1,386 |
||||||
Stock issued to an executive |
143,100 |
66,975 |
||||||
Stock issued for service |
109,725 |
69,000 |
||||||
Allowance for doubtful accounts |
149,229 |
70,425 |
||||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
(29,845,706) |
(14,085,053) |
||||||
Inventories |
(6,115,920) |
2,802,538 |
||||||
Prepaid expenses and other current assets |
46,013 |
175,324 |
||||||
Accounts payable, trade |
2,879,436 |
468,823 |
||||||
Income tax payable |
(80,913) |
256,338 |
||||||
Accrued liabilities and other payables |
2,524,310 |
946,957 |
||||||
Net cash (used in) provided byoperating activities |
(6,257,250) |
5,667,586 |
||||||
Cash flows from investing activities: |
||||||||
Purchase of property, plant and equipment |
(233,121) |
(353,177) |
||||||
Cash paid to construction in progress |
(13,409,068) |
(995,235) |
||||||
Cash paid to prepayment for land use right |
- |
(2,274,323) |
||||||
Addition to land use right |
(69,778) |
- |
||||||
Net cash received from acquisition of a subsidiary |
952,170 |
- |
||||||
Advances to note receivable |
- |
(26,399,696) |
||||||
Net cash used in investing activities |
(12,759,797) |
(30,022,431) |
||||||
Cash flows from financing activities: |
||||||||
Advance from(Repayment of) amount due to a stockholder |
192,202 |
(100,504) |
||||||
Advance to a non-controlling stockholder of a subsidiary |
(145,999) |
- |
||||||
Proceeds from the registered direct offering, net of expenses |
28,328,466 |
- |
||||||
Proceeds from exercise of warrants |
1,913,613 |
- |
||||||
Proceeds from short-term borrowings |
- |
4,139,121 |
||||||
Repayment on short-term borrowings |
(4,139,121) |
(4,289,341) |
||||||
Dividends paid |
(1,313,080) |
- |
||||||
Net cash provided by (used in) financing activities |
24,836,081 |
(250,724) |
||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS |
5,819,034 |
(24,605,569) |
||||||
Effect of exchange rate changes in cash and cash equivalents |
2,594,506 |
108,494 |
||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR |
7,143,232 |
31,640,307 |
||||||
CASH AND CASH EQUIVALENTS, END OF YEAR |
$ |
15,556,772 |
$ |
7,143,232 |
||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |
||||||||
Cash paid for income taxes |
$ |
4,536,080 |
$ |
1,794,704 |
||||
Cash paid for interest |
$ |
40,032 |
$ |
230,433 |
||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING TRANSACTIONS |
|||||||
Transfer from prepayment to land use rights |
$ |
2,274,323 |
$ |
- |
|||
Transfer from construction in progress to property, plant and equipment |
$ |
- |
$ |
2,600,090 |
|||
ACQUISITION OF XIANGHE |
|||||||
Transfer from note receivable to paid for acquisition of Xianghe |
$ |
26,399,696 |
$ |
- |
|||
Consideration paid by Xianghe on behalf of Mingxiang |
$ |
1,400,304 |
$ |
- |
|||
For more information, please contact: |
|
COMPANY |
|
Marco Hon Wai Ku, CFO |
|
Suite 815, 8th Floor |
|
Ocean Centre, Harbour City |
|
Kowloon, HONG KONG |
|
Tel: +852-2111-8768 |
|
Email: [email protected] |
|
Web: www.china-marine.cn |
|
INVESTOR RELATIONS |
|
John Mattio, SVP |
|
HC International, New York |
|
Tel: +1-203-616-5144 (U.S.) |
|
Email: [email protected] |
|
SOURCE China Marine Food Group Limited
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