Wuhan General Group (China), Inc. Announces Revised Second Quarter 2010 Results
WUHAN, China, Aug. 23 /PRNewswire-Asia-FirstCall/ -- Wuhan General Group (China), Inc. (Nasdaq: WUHN) ("Wuhan General" or the "Company"), a leading manufacturer of industrial blowers and turbines in China, operating through its subsidiaries, Wuhan Blower Co., Ltd. ("Wuhan Blower"), Wuhan Generating Equipment Co., Ltd. ("Wuhan Generating") and Wuhan Sungreen Environment Protection Equipment Co., Ltd. ("Wuhan Sungreen"), today reported revised financial results for the second quarter ended June 30, 2010.
Second quarter 2010 Highlights
-- Second quarter revenue was $22.7 million, an increase of 32.3% from
$17.2 million for the same period in 2009
-- Gross profit was $4.8 million, an increase of 18.4% from $4.1 million
for the same period in 2009
-- Operating income was $3.8 million, an increase of 83.0% from the
corresponding quarter last year
-- Net income was $0.7 million, compared with $18,316 for the same period
in 2009
-- Net income available to common shareholders was $0.5 million compared
with a loss of $0.2 million for the same period in 2009. Adjusting for
abnormal charges, adjusted net income available to common shareholders
was $2.4 million for the second quarter of 2010, compared to
$1.0 million for the same period of 2009
-- Earnings per diluted share were $0.02 compared with a loss of $0.01 for
the second quarter last year. Adjusting for abnormal charges, earnings
per diluted share were $0.08 for the second quarter of 2010 compared
with $0.04 for the same period in 2009
-- Won bids for two contracts totaling $4.7 million to supply blowers for
Qinghai Huanghe Hydropower Development Co., Ltd. and Handan Iron &
Steel Co., Ltd
-- Entered into a loan agreement with Hankou Bank Limited, Wuhan Branch
("Hankou Bank"), which provides for a loan facility totaling
RMB 320,000,000 (approximately $46.8 million) in secured debt financing
"We achieved healthy revenue growth as we increased turbine sales while still maintaining solid blower sales. We are particularly pleased with the performance of our hydropower segment, which accounted for more than 60% of all turbine sales. Moreover, tighter control over selling expenses helped improve our profitability year-over-year," said Mr. Ruilong Qi, the CEO of Wuhan General. "While we are pleased about our growing top line, gross margin declined due to faster growth of the lower margin turbine sales and increased competition in the industry. In the remainder of 2010, we will monitor profitability closely."
Second quarter 2010 Results
For the second quarter ended June 30, 2010, total revenue was $22.7 million, up 32.3% from $17.2 million for the same period last year. Wuhan Blower generated 56.5% of total revenues, compared to 58.9% for the same period last year. Wuhan Generating contributed 42.4% of total revenues, compared to 40.4% for the same period last year. The remaining 1.1% in revenues for the second quarter of 2010 was contributed by Wuhan Sungreen, compared to 0.7% for the same period last year. Sales were adjusted for $0.4 million in inter-group sales following the consolidation of financial information. The year-over-year increase in total revenue was mainly due to increased demand for water turbines from the hydropower industry, in addition to a recovery in demand for blowers from steel manufacturers.
Gross profit for the quarter was $4.8 million, up 18.4% from $4.1 million in the second quarter of 2009. Gross margin was 21.3%, down 2.5 percentage points from 23.8% for the same period in 2009. The decrease in gross margin was mainly due to the increased contribution of Wuhan Generating, which has a lower gross margin because of increased competition for bids that reduced the selling price of turbines.
Selling expenses were $0.3 million, or 1.1% of the total revenue for the second quarter of 2010, compared to $0.3 million, or 1.8% of the total revenue for the same period of 2009. The decrease in selling expenses as a percentage of sales was mainly due to lower commissions. General and administrative expenses decreased 62.2% from $1.6 million for the second quarter of 2009 to $0.6 million for the second quarter of 2010 as the Company reversed a significant amount of its accrued bad debt allowance in order to meet its stated allowance of 5% of gross accounts receivable. Warranty expense was $0.2 million for the quarter compared to $0.1 million for the same period of 2009. As a percentage of sales, warranty expense was 0.9% for the three months ended June 30, 2010 and 2009. As a result, operating income was $3.8 million for the second quarter of 2010, up 83.0% from $2.1 million a year ago.
The Company had other net expenses of $3.0 million for the second quarter of 2010, up 59.8% from $1.8 million for the second quarter of 2009, mainly due to interest expenses of $3.1 million for the second quarter of 2010. The increase in interest expenses was due to a one-time consultancy fee of $1.9 million in connection with the Company's loan facility arrangement with Standard Chartered Bank (China) Limited, Guangzhou Branch ("Standard Chartered Bank"), in addition to a significant increase in debt. The increase in other expenses was partially offset by a non-cash penalty charge of $1.2 million associated with the Company's capital market activities in the second quarter of 2009. The Company had no such charge in 2010.
Income taxes were $0.2 million for the second quarter of 2010, at level with $0.2 million for the same period of 2009.
Net income for the second quarter of 2010 was $0.7 million, compared with $18,316 for the same period last year. Excluding the abnormal one-time financing fee of $1.9 million in the second quarter of 2010 and the non-cash penalty charge of $1.2 million in the second quarter of 2009, adjusted net income was $2.6 million for the second quarter of 2010 and $1.2 million for the same period of 2009.
Net of preferred dividends declared, net income available to common stockholders was $0.5 million for the three months ended June 30, 2010, compared with a loss of $0.2 million for the same period last year. Excluding the aforementioned abnormal charges, adjusted net income available to common stockholders was $2.4 million for the second quarter of 2010 and $1.0 million for the same period of 2009.
Earnings per diluted share were $0.02 for the three months ended June 30, 2010 compared with a loss of $0.01 per diluted share for the same period of 2009. Adjusted for the aforementioned abnormal charges, earnings per diluted share were $0.08 for the second quarter of 2010 compared with $0.04 for the second quarter of 2009. For a complete reconciliation of adjusted financial information to GAAP financial information, please see the reconciliation table below.
Six Months 2010 Results
For the six months ended June 30, 2010, total revenue was $40.6 million, up 15.4% from $35.2 million in the same period of 2009. Wuhan Blower generated 61.2% of total revenues, compared to 57.8% for the same period last year. Wuhan Generating contributed 37.7% of total revenues, compared to 41.6% for the same period last year. The remaining 1.1% was contributed by Wuhan Sungreen. Sales were adjusted for $0.4 million in inter-group sales following the consolidation of financial information. Gross profit was $9.8 million for the six months ended June 30, 2010, up 24.1% from $7.9 million in the same period of 2009. Overall gross margin was 24.0% compared with 22.3% for the first half of 2009. Income from operations was $7.0 million for the first six months of 2010, up 79.5% from $3.9 million for the same period in 2009. Net income was $2.6 million, up 129.3% compared with $1.1 million in the first six months of 2009. Net income available to common shareholders was $2.2 million in the first half of 2010, up 190.2% from $0.8 million for the same period in 2009. Adjusting for the abnormal one-time financing fee of $1.9 million in the first half of 2010 and the non-cash penalty charge of $1.2 million in the first half of 2009, adjusted net income available to common shareholders was $4.1 million for the first six months of 2010 and $1.9 million for the same period of 2009.
Earnings per diluted share were $0.07 for the six months ended June 30, 2010 compared with $0.03 per diluted share for the corresponding period in 2009. After adjusting for the aforementioned abnormal charges, earnings per diluted share were $0.14 for the first six months of 2010 and $0.07 for the same period of 2009. For a complete reconciliation of adjusted financial information to GAAP financial information, please see the table below.
Financial Condition
As of June 30, 2010, Wuhan General had $24.6 million in cash and $54.2 million in accounts receivable compared to $0.4 million and $54.0 million respectively as of December 31, 2009. The Company had $40.8 million in working capital with a current ratio of 1.4:1 and stockholders' equity of $104.6 million as of June 30, 2010. Wuhan General's short term bank loans and notes were $72.8 million as of June 30, 2010.
On June 29, 2010, Wuhan Blower, Wuhan Generating and Wuhan Sungreen (collectively, the "Borrowers") entered into a Loan Agreement with Hankou Bank. The Loan Agreement provides for a loan facility totaling RMB 320,000,000 (approximately $46.8 million) in secured debt financing consisting of, short-term loan facility for up to RMB 260,000,000 (approximately $38.2 million), bank note facility for up to RMB 10,000,000 (approximately $1.47 million), trading loan facility for up to RMB 10,000,000 (approximately $1.47 million), and equipment purchase loan facility for up to RMB 40,000,000 (approximately $5.87 million).
As of June 30, 2010, the Company had received approximately $23.15 million under the term loan facility with Hankou Bank. To date, the Company has used this amount to repay the bank loans with Standard Chartered Bank. The Company is in the process of obtaining documentation from Standard Chartered Bank in connection with the release of the Company's assets that were pledged under the loan to Standard Chartered Bank. Once this documentation process is completed, the Company will be eligible for additional funding available under its Loan Agreement with Hankou Bank.
Net cash provided by operating activities for the six months ended June 30, 2010 was approximately $2.9 million, as compared to approximately $1.8 million for the same period in 2009. This change was primarily due to an increase in cash received from customers, partially offset by an increase in interest and taxes paid.
The Company sourced $3.6 million in cash flow from investing activities as it received cash from time deposits. The Company sourced $25.3 million from financing activities due to proceeds from bank loans, partially offset by a repayment of notes.
Recent Events
On August 2, 2010, Wuhan General announced that on July 26, 2010, its blowers passed the type inspection for subway systems. The inspection, provided by the National Center for Quality Supervision and Test of Fire Fighting Equipment, is an indispensable step for companies aspiring to qualify as suppliers for subway construction projects.
Business Outlook
The Company expects demand for both blowers and turbines to continue stabilizing in the remaining months of the year, supported by the replacement of capital equipment in steel mills and the expansion of the hydropower industry. For 2010, the Company still expects Wuhan Blower to contribute around 55% of revenue, while Wuhan Generating may contribute more than 40% because of a lower than previously expected revenue contribution of Wuhan Sungreen.
"We are pleased with the resuming growth of our business, as demonstrated by our current backlog of RMB 220 million (approximately $32.2 million) for Wuhan Blower and RMB 200 million (approximately $29.3 million) for Wuhan Generating. While the backlog is encouraging, the increased competition in the market for blowers and turbines, lower selling prices of turbines and smaller revenue contribution of Wuhan Sungreen has compelled us to re-evaluate our current guidance of 20% revenue growth for the year. Although this figure remains our internal target, we are preparing for slightly slower growth in 2010," said Mr. Qi. "We expect the contract wins of Wuhan Blower to support growth in the second half and the recent qualification to manufacture blowers for subway systems to provide opportunities to maintain our margin in the long term, despite a competitive market environment."
Use of Adjusted Financial Measures
To supplement the Company's condensed consolidated financial statements for the three and six months ended June 30, 2010 and 2009 presented on a GAAP basis, the Company provided adjusted financial information in this release that exclude the impact of a one-time financing fee in the current year and a stock penalty for late listing on NASDAQ in the prior year. The Company's management believes that these adjusted measures, adjusted net income and adjusted diluted earnings per share, provide investors with a better understanding of how the results relate to the Company's current and historical performance. The additional adjusted information is not meant to be considered in isolation or as a substitute for GAAP financials. The adjusted financial information that the Company provides also may differ from the adjusted information provided by other companies. Management believes that these adjusted financial measures are useful to investors because they exclude abnormal expenses that management excludes when it internally evaluates the performance of the Company's business and makes operating decisions, including internal budgeting, and performance measurement, because these measures provide a consistent method of comparison to historical periods. Moreover, management believes that these adjusted measures reflect the essential operating activities of the Company. In addition, the provision of these adjusted measures allows investors to evaluate the Company's performance using the same methodology and information as that used by the Company's management. Adjusted measures are subject to inherent limitations because they do not include all of the expenses included under GAAP and because they involve the exercise of judgment of which charges are excluded from the adjusted financial measure. However, the Company's management compensates for these limitations by providing the relevant disclosure of the items excluded. A reconciliation of each adjusted measures to the nearest GAAP measure is appears in the table below.
Reconciliation of Adjusted Financial Measures for the Three and Six Months Ended June 30, 2010 and 2009
EARNING PER SHARE (Non GAAP Disclosure)
Three Three Six Six
months months months months
ended ended ended ended
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
Basic Earnings Per
Share Numerator
Net Income 2,576,434 1,171,755 4,496,299 2,286,830
Less: Preferred
Dividend 177,300 181,285 354,600 360,087
Income Available to
Common Stockholders 2,399,134 990,470 4,141,699 1,926,743
Diluted Earnings Per
Share Numerator
Income Available to
Common Stockholders 2,399,134 990,470 4,141,699 1,926,743
Add: Preferred
Dividends 177,300 181,285 354,600 360,087
Income Available to
Common Stockholders
on Converted Basis 2,576,434 1,171,755 4,496,299 2,286,830
Original Shares 25,351,950 24,752,801 25,351,950 24,752,801
Additions from Actual
Events
-Issuance of Common
Stock
-from Issuance 17,115 11,030
-from Actual
Conversion 463,739 231,870
Basic Weighted Average
Shares Outstanding 25,351,950 25,233,655 25,351,950 24,995,701
Dilutive Shares:
Additions from
Potential Events
-Series A Preferred
Stock
-Series B Preferred
Stock 6,354,078 6,354,078 6,354,078 6,354,078
-Employee & Director
Stock Options 93,293 93,293
Diluted Weighted
Average Shares
Outstanding: 31,799,321 31,587,733 31,799,321 31,349,779
Earnings Per Share
- Basic 0.09 0.04 0.16 0.08
- Diluted 0.08 0.04 0.14 0.07
Weighted Average
Shares
Outstanding
- Basic 25,351,950 25,233,655 25,351,950 24,995,701
- Diluted 31,799,321 31,587,733 31,799,321 31,349,779
a) Add back abnormal
one-time financing
fee, which is included
in the interest
expenses 1,897,335 1,897,335
b) Add back stock penalty,
which was included in
other expenses 1,153,439 1,153,439
About Wuhan General Group (China), Inc.
Through its subsidiaries, Wuhan Blower, Wuhan Generating and Wuhan Sungreen, Wuhan General is a leading manufacturer of industrial blowers and turbines in China and the Company is based in Wuhan, Hubei Province, China. Wuhan Blower is a China-based manufacturer of industrial blowers that are principal components of steam-driven electrical power generation plants. Wuhan Generating is a China-based manufacturer of industrial steam and water turbines used for electricity generation in coal, oil, nuclear and hydroelectric power plants. Wuhan Sungreen manufactures silencers, connectors and other general parts for industrial blowers and electrical equipment and produces general machinery equipment. The Company's primary customers are from the iron and steel, power generation, petrochemical and other industries. Led by a strong management team, Wuhan General is well recognized for its technological sophistication and quality construction of blowers and turbines. For more information, please visit http://www.wuhangeneral.com .
Safe Harbor Statement
Certain statements in this press release, including statements regarding our profit margin, future revenue (including by segment), net income and sales, our liquidity position, growth strategy, future demand for our products, the fulfillment of our backlog orders, and our ability to draw additional funds under our loan facilities with Hankou Bank may be forward-looking in nature or "forward-looking statements," as defined by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to vulnerability of our business to general economic downturn, operating in the People's Republic of China (PRC) generally and the potential for changes in the laws of the PRC that affect our operations, our failure to meet or timely meet contractual performance standards and schedules, and other factors that may cause actual results to be materially different from those described in such forward-looking statements. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. These forward-looking statements are based on Wuhan General's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting Wuhan General will be those anticipated by the Company. Wuhan General undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
For further information, please contact:
Wuhan General Group (China), Inc.
Mr. Philip Lo, CFO
Phone: + 86-27-5970-0067 (China)
Email: [email protected]
Web: http://www.wuhangeneral.com
CCG Investor Relations Inc.
Mr. Crocker Coulson, President
Phone: +1-646-213-1915 (New York)
Email: [email protected]
Web: http://www.ccgirasia.com
-FINANCIAL TABLES FOLLOW-
Wuhan General Group (China), Inc.
Consolidated Balance Sheets
At June 30, 2010 and December 31, 2009
(Stated in US Dollars)
(Audited)
June 30, December 31,
2010 2009
Current Assets
Cash $24,575,431 $407,394
Restricted Cash 10,415,415 7,759,971
Notes Receivable 172,576 28,520
Accounts Receivable 54,190,316 53,962,201
Other Receivable 7,065,450 4,684,372
Inventory 16,672,654 15,630,470
Advances to Suppliers 31,732,837 24,616,120
Advances to Employees 944,804 342,829
Prepaid Expenses 146,808 928,629
Prepaid Taxes 556,118 546,050
Deferred Tax Asset 775,222 749,031
Total Current Assets 147,247,631 109,655,587
Non-Current Assets
Real Property Available for Sale 1,107,746 1,103,113
Property, Plant & Equipment, net 32,137,014 32,908,334
Land Use Rights, net 11,885,575 12,073,139
Construction in Progress 18,368,076 17,864,257
Intangible Assets, net 264,387 212,798
Total Assets $211,010,429 $173,817,228
LIABILITIES & STOCKHOLDERS' EQUITY
Liabilities
Current Liabilities
Bank Loans & Notes 72,768,770 46,758,253
Accounts Payable 13,478,970 8,049,057
Taxes Payable 3,195,704 3,169,948
Other Payable 5,567,402 4,228,042
Dividend Payable 354,600 727,129
Accrued Liabilities 3,489,953 3,524,388
Customer Deposits 7,600,210 4,696,719
Total Current Liabilities 106,455,609 71,153,536
Total Liabilities 106,455,609 71,153,536
Wuhan General Group (China), Inc.
Consolidated Balance Sheets
At June 30, 2010 and December 31, 2009
(Stated in US Dollars)
(Audited)
June 30, December 31,
Stockholders' Equity 2010 2009
Preferred Stock - $0.0001 Par
Value, 50,000,000 Shares
Authorized; 6,241,453 Shares of
Series A Convertible Preferred
Stock Issued & Outstanding at
June 30, 2010 and December 31,
2009 624 624
Additional Paid-in Capital -
Preferred Stock 8,170,415 8,170,415
Additional Paid-in Capital -
Warrants 3,484,011 3,484,011
Additional Paid-in Capital -
Beneficial Conversion Feature 6,371,547 6,371,547
Preferred Stock - $0.0001 Par
Value 50,000,000 Shares
Authorized; 6,354,078 Shares of
Series B Convertible Preferred
Stock Issued & Outstanding at
June 30, 2010 and December 31,
2009 635 635
Additional Paid in Capital -
Preferred Stock 12,637,158 12,637,158
Additional Paid in Capital -
Warrants 2,274,181 2,274,181
Additional Paid in Capital -
Beneficial Conversion Feature 4,023,692 4,023,692
Common Stock - $0.0001 Par Value
100,000,000 Shares Authorized;
25,351,950 Shares Issued &
Outstanding at June 30, 2010 and
December 31, 2009 2,536 2,536
Additional Paid-in Capital 29,810,569 29,793,996
Statutory Reserve 5,454,773 4,563,592
Retained Earnings 24,830,422 23,477,239
Accumulated Other Comprehensive
Income 7,494,257 7,864,066
Total Stockholders' Equity 104,554,820 102,663,692
Total Liabilities & Stockholders'
Equity $211,010,429 $173,817,228
Wuhan General Group (China), Inc.
Statements of Income
Three months ended Six months ended
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
Revenue
Sales $22,690,918 $17,153,287 $40,642,212 $35,229,339
Cost of Sales (17,859,022) (13,072,698) (30,871,520) (27,357,981)
Gross Profit 4,831,896 4,080,589 9,770,692 7,871,358
Operating Expenses
Selling Expenses (256,617) (306,828) (667,982) (719,990)
General &
Administrative
Expenses (586,307) (1,550,978) (1,695,862) (2,931,586)
Warranty Expense (195,721) (149,763) (376,550) (303,736)
Total Operating
Expense (1,038,645) (2,007,569) (2,740,394) (3,955,312)
Operating Income 3,793,251 2,073,020 7,030,298 3,916,046
Other Income
(Expenses)
Other Income
(Expense), net 146,226 (52,554) 145,058 (37,884)
Interest Income 7,513 21,065 26,067 205,396
Interest Expense (3,106,994) (663,440) (4,134,777) (1,296,915)
Stock Penalty for
late listing on
NASDAQ -- (1,153,439) -- (1,153,439)
Total Other Income
(Loss) & Expense (2,953,255) (1,848,368) (3,963,652) (2,282,842)
Earnings before Tax 839,996 224,652 3,066,646 1,633,204
Income Tax (160,897) (206,336) (467,682) (499,813)
Net Income $679,099 $18,316 $2,598,964 $1,133,391
Preferred Dividends
Declared (177,300) (181,285) (354,600) (360,087)
Income (Loss)
Available to Common
Shareholders $501,799 $(162,969) $2,244,364 $773,304
Earnings Per Share
Basic $0.02 $(0.01) $0.09 $0.03
Diluted $0.02 $(0.01) $0.07 $0.03
Weighted Average
Shares Outstanding
Basic 25,351,950 25,233,656 25,351,950 24,995,701
Diluted 31,799,321 25,233,656 31,799,321 31,349,779
Comprehensive Income
Net Income $679,099 $18,316 $2,598,964 $1,133,391
Other Comprehensive
Income
Foreign Currency
Translation
Adjustment (395,865) (884,971) (369,809) 44,868
Total Comprehensive
Income $283,234 $(866,655) $2,229,155 $1,178,259
Wuhan General Group (China), Inc.
Statements of Cash Flows
For the three and six months ended June 30, 2010 and 2009
(Stated in US Dollars)
Three months ended Six months ended
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
Cash Flow from
Operating Activities
Cash Received from
Customers $11,485,157 $17,890,754 $40,792,455 $34,259,337
Cash Paid to
Suppliers &
Employees (11,389,604) (14,797,136) (31,791,759) (30,808,513)
Interest Received 7,513 21,065 26,067 205,396
Interest Paid (2,064,703) (663,440) (4,134,777) (1,296,915)
Taxes Paid (1,816,411) (636,443) (2,123,196) (636,443)
Miscellaneous
Receipts 147,660 49,875 147,742 68,819
Cash Sourced/(Used)
in Operating
Activities (3,630,388) 1,864,675 2,916,532 1,791,681
Cash Flows from
Investing Activities
Cash Invested in
Restricted Time
Deposits (2,855,657) 304,848 (2,655,444) 6,850,014
Payments for
Construction of
Plant & Purchase of
Equipment (363,852) (203,141) (946,796) (653,393)
Cash Used/(Sourced)
in Investing
Activities (3,219,509) 101,707 (3,602,240) 6,196,621
Cash Flows from
Financing Activities
Proceeds
from/(Repayment of)
Bank Loans 33,026,008 2,923,216 68,483,012 821,563
(Repayment of Notes) (4,715,310) (2,932,740) (42,472,495) (9,432,960)
Dividends Paid (727,129) -- (727,129) (193,804)
Cash Sourced/(Used)
in Financing
Activities 27,583,569 (9,524) 25,283,388 (8,805,201)
Net
Increase/(Decrease)
in Cash & Cash
Equivalents for the
Period 20,733,672 1,956,858 24,597,680 (816,899)
Effect of Currency
Translation (453,407) (886,580) (429,645) 25,355
Cash & Cash
Equivalents at
Beginning of Period 4,295,166 955,681 407,394 2,817,503
Cash & Cash
Equivalents at End of
Period $24,575,431 $2,025,959 $24,575,431 $2,025,959
Wuhan General Group (China), Inc.
Reconciliation of Net Income to Cash Flow Sourced/(Used) in Operating
Activities
For the three and six months ended June 30, 2010 and 2009
(Stated in US Dollars)
Three months ended Six months ended
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
Net Income $679,099 $18,316 $2,598,966 $1,133,391
Adjustments to Reconcile
Net Income to
Net Cash Provided by
Cash Activities:
Reclassification of
assets related to
Huangli Project from
Construction in
Progress to Inventory -- -- -- 1,745,496
Stock Penalties -- 1,153,439 -- 1,153,439
Stock Option
Compensation 16,573 -- 16,573 --
Prepaid Interest in
Other Non Current
Assets 1,042,290 -- -- --
Amortization 85,899 119,972 191,176 141,973
Depreciation 637,453 495,337 1,214,297 1,062,449
Decrease/(Increase) in
Notes Receivable 66,985 65,734 (144,056) (14,610)
Decrease/(Increase) in
Accounts Receivable (7,142,021) (4,118,129) (228,115) (1,558,205)
Decrease/(Increase) in
Other Receivable (5,029,606) 5,703,276 (2,381,078) 1,058,555
Decrease/(Increase) in
Inventory (998,066) (1,031,578) (1,042,184) (13,544,144)
Decrease/(Increase) in
Advances to Suppliers (2,328,244) 634,570 (7,116,718) 7,567,463
Decrease/(Increase) in
Advances to Employees (261,558) 59,056 (601,975) 22,596
Decrease/(Increase) in
Prepaid Expenses 698,544 (55,545) 781,819 (88,584)
Decrease/(Increase) in
Prepaid Taxes (37,458) 12,546 (10,068) 210,878
Decrease/(Increase) in
Deferred Tax Asset (1,127) (430,107) (26,191) (488,331)
Increase/(Decrease) in
Accounts Payable 4,181,975 2,525,499 5,429,913 1,062,080
Increase/(Decrease) in
Taxes Payable (55,641) 695,081 25,756 510,645
Increase/(Decrease) in
Other Payable 3,730,594 (3,249,412) 1,397,862 1,902,926
Increase/(Decrease) in
Related Payable -- -- (58,503) --
Increase/(Decrease) in
Accrued Liabilities 185,036 176,637 (34,433) 366,009
Increase/(Decrease) in
Customer Deposits 898,885 (910,017) 2,903,491 (452,345)
Total of all
adjustments (4,309,486) 1,846,359 317,566 658,290
Net Cash Provided/(Used)
by Operating Activities $(3,630,388) $1,864,675 $2,916,532 $1,791,681
SOURCE Wuhan General Group (China), Inc.
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