BEIJING, May 17, 2018 /PRNewswire/ -- Shineco, Inc.
("Shineco" or the "Company"; NASDAQ: TYHT), a producer and
distributor of Chinese herbal medicines, organic agricultural
produce, specialized textiles, and other health and well-being
focused plant-based products in China, announced today its financial results
for the third quarter ended March 31,
2018.
Mr. Yuying Zhang, Chairman and
Chief Executive Officer of Shineco, Inc., commented, "We are
delighted that our increased capital spending in 2017 has
translated into increased profitability in 2018. Our business in
Xinjiang factory has turned a profit, and our sales in Shandong have remained stable. This is
reflected in our financial results. Shineco's gross profit had increased by 102%
to $5.26 million, our operating
margin had increased by 8.4 percentage points to 29.4%, and our
gross margin had increased by 6.7 percentage points to 39.4%
compared to the same period of last year."
Mr. Zhang concluded, "The market's response to our Luobuma
product line has been immensely positive, as reflected by an
impressive sales increase of 388.6% to $5.48
million from $1.12 million
from the same period of last year. We are pleased with the
recognition from our clients, as we continue to innovate and expand
in the future."
Third Quarter of 2018 Financial Highlights
|
For the Three
Months Ended March
31
|
($ millions,
except per share data)
|
2018
|
|
2017
|
|
%
Change
|
Revenue
|
13.34
|
|
7.94
|
|
68.0%
|
Luobuma
products
|
5.48
|
|
1.12
|
|
388.6%
|
Chinese medicinal
herbal products
|
3.30
|
|
3.05
|
|
8.3%
|
Other agricultural
products
|
4.56
|
|
3.77
|
|
20.9%
|
Gross
profit
|
5.26
|
|
2.60
|
|
102.2%
|
Gross
margin
|
39.4%
|
|
32.8%
|
|
6.7%
|
Operating
income
|
3.92
|
|
1.67
|
|
135.0%
|
Operating
margin
|
29.4%
|
|
21.0%
|
|
8.4%
|
Net income
attributable to Shineco
|
4.55
|
|
1.92
|
|
136.8%
|
EPS
|
0.21
|
|
0.09
|
|
135.2%
|
- Revenues increased by 68.0% to $13.34
million for the three months ended March 31, 2018 from $7.94
million for the same period last year.
- Gross profit increased by 102.2% to $5.26 million for the three months ended
March 31, 2018 from $2.60 million for the same period last year.
Gross margin increased by 6.7 percentage points to 39.4% from 32.8%
for the same period of last year.
- Net income attributable to Shineco increased by 136.8% to
$4.55 million, or $0.21 per basic and diluted share, for the three
months ended March 31, 2018 from
$1.92 million, or $0.09 per basic and diluted share, for the same
period last year. The increases in net income and earnings per
share were primarily due to an increase in gross profit, partially
offset by an increase in general and administrative expenses.
Third Quarter of 2018 Financial Results
Revenues
Revenues for the three months ended March
31, 2018 increased by $5.40
million, or 68.0%, to $13.34
million from $7.94 million for
the same period of last year, mainly due to increased sales of all
products.
|
|
For the Three
Months Ended March
31
|
|
|
2018
|
|
2017
|
($
millions)
|
|
Revenues
|
|
COGS
|
|
Gross
Margin
|
|
Revenues
|
|
COGS
|
|
Gross
Margin
|
Luobuma
products
|
|
5.48
|
|
2.36
|
|
56.9%
|
|
1.12
|
|
0.57
|
|
49.2%
|
Chinese medicinal
herbal products
|
|
3.30
|
|
2.56
|
|
22.0%
|
|
3.05
|
|
2.28
|
|
24.7%
|
Other agricultural
products
|
|
4.56
|
|
3.15
|
|
31.0%
|
|
3.77
|
|
2.47
|
|
34.4%
|
Business and sales
related taxes
|
|
-
|
|
0.01
|
|
-
|
|
-
|
|
0.02
|
|
-
|
Total
|
|
13.34
|
|
8.08
|
|
39.4%
|
|
7.94
|
|
5.34
|
|
32.8%
|
Revenues from Luobuma products increased by $4.36 million, or 388.6%, to $5.48 million for the three months ended
March 31, 2018 from $1.12 million for the same period of last year,
mainly due to establishment of new subsidiary, Xinjiang Taihe,
which generated revenue of $5,210,768.
Revenues from Chinese medicinal herbal products increased by
$0.25 million, or 8.3%, to
$3.30 million for the three months
ended March 31, 2018 from
$3.05 million for the same period of
last year. The increase was primarily due to more fulfilled sales
orders from customers for the three months ended March 31, 2018 than the same period in 2017.
Revenues from other agricultural products increased by
$0.79 million, or 20.9%, to
$4.56 million for the three months
ended March 31, 2018 from
$3.77 million for the same period of
last year. The sales of other agricultural products were mainly
derived from sales of yew trees and our storage services. The
increase was mainly due to the increase in sales volume of yew
trees since the public realized the air purification function of
the yew trees.
Gross profit and Gross Margin
Total cost of goods sold increased by $2.74 million, or 51.3%, to $8.08 million for the three months ended
March 31, 2018 from $5.34 million for the same period of last year.
Gross profit increased by $2.66
million, or 102.2%, to $5.26
million for the three months ended March 31, 2018 from $2.60
million for the same period of last year. Overall gross
margin increased by 6.7 percentage points to 39.4% for the three
months ended March 31, 2018, compared
to 32.8% for the same period of last year.
Gross margins for Luobuma products, Chinese medicinal herbal
products, and other agricultural products were 56.9%, 22.0%, and
31.0%, respectively, for the three months ended March 31, 2018. This compared to gross margins
for Luobuma products, Chinese medicinal herbal products, and other
agricultural products of 49.2%, 24.7%, and 34.4%, respectively, for
the same period of last year.
Operating income
Selling expenses increased by $0.08
million, or 27.4%, to $0.39
million for the three months ended March 31, 2018 from $0.30
million for the same period of last year, primarily due to
the acquisition of a new subsidiary, Tianjin Tajite, in
October 2017. The increase in selling
and distribution expenses was also a result of increased promotion
expenses as the Company enhanced its online sales promotions,
partially offset by decreased rent expense of warehouse and salary
expenses due to more effective cost control during the three months
ended March 31, 2018 compared to the
same period of 2017. General and administrative expenses increased
by $0.33 million, or 51.5%, to
$0.96 million for the three months
ended March 31, 2018 from
$0.63 million for the same period of
last year. The increase in general and administrative expenses was
primarily due to the incorporation and acquisition of new
subsidiaries, Tiankunrunze in last quarter of fiscal year 2017, and
Xinjiang Taihe and Tianjin Tajite in fiscal year 2018. As a result,
total operating expenses increased by $0.41
million, or 43.6%, to $1.34
million for the three months ended March 31, 2018 from $0.94
million for the same period of last year.
Operating income increased by $2.25
million, or 135.0%, to $3.92
million for the three months ended March 31, 2018 from $1.67
million for the same period of last year. Operating margin
was 29.4% for the three months ended March
31, 2018, compared to 21.0% for the same period of last
year.
Net income
Net income increased by $2.55
million, or 130.4%, to $4.51
million for the three months ended March 31, 2018 from $1.96
million for the same period of last year. After the
deduction of non-controlling interests, net income attributable to
common shareholders for the three months ended March 31, 2018 was $4.55
million, or $0.21 per basic
and diluted share. This compared to net income attributable to
common shareholders of $1.92 million,
$0.09 per basic and diluted share,
for the same period of last year.
Nine Months Ended March 31,
2018 Financial Results
|
|
For the Nine
Months Ended March 31
|
($ millions,
except per share data)
|
|
2018
|
|
2017
|
|
%
Change
|
Revenue
|
|
35.28
|
|
25.53
|
|
38.2%
|
Luobuma
products
|
|
10.41
|
|
2.77
|
|
276.0%
|
Chinese medicinal
herbal products
|
|
10.23
|
|
9.73
|
|
5.2%
|
Other agricultural
products
|
|
14.64
|
|
13.04
|
|
12.3%
|
Gross
profit
|
|
12.17
|
|
8.47
|
|
43.6%
|
Gross
margin
|
|
34.5%
|
|
33.2%
|
|
1.3%
|
Operating
income
|
|
8.11
|
|
5.25
|
|
54.4%
|
Operating
margin
|
|
23.0%
|
|
20.6%
|
|
2.4%
|
Net income
attributable to Shineco
|
|
9.41
|
|
6.12
|
|
53.7%
|
EPS
|
|
0.45
|
|
0.30
|
|
49.3%
|
Revenues
Revenues for the nine months ended March
31, 2018 increased by $9.75
million, or 38.2%, to $35.28
million from $25.53 million
for the same period of last year, mainly due to increased sales of
all products.
|
|
For the Nine Months Ended
March 31
|
|
|
2018
|
|
2017
|
($
millions)
|
|
Revenues
|
|
COGS
|
|
Gross
Margin
|
|
Revenues
|
|
COGS
|
|
Gross
Margin
|
Luobuma
products
|
|
10.41
|
|
4.81
|
|
53.7%
|
|
2.77
|
|
1.37
|
|
50.0%
|
Chinese medicinal
herbal products
|
|
10.23
|
|
7.89
|
|
22.5%
|
|
9.73
|
|
7.20
|
|
25.6%
|
Other agricultural
products
|
|
14.64
|
|
10.36
|
|
29.2%
|
|
13.04
|
|
8.44
|
|
35.3%
|
Business and sales
related taxes
|
|
-
|
|
0.06
|
|
-
|
|
-
|
|
0.05
|
|
-
|
Total
|
|
35.28
|
|
23.11
|
|
34.5%
|
|
25.53
|
|
17.06
|
|
33.2%
|
Revenues from Luobuma products increased by $7.64 million, or 276.0%, to $10.41 million for the nine months ended
March 31, 2018 from $2.77 million for the same period of last year,
mainly due to revenue generated by a new subsidiary, Xinjiang
Taihe, of US$ 8,145,196. Moreover,
the increase of revenue from this segment was due to increased
sales volume of our health awareness related products. The Company
also enhanced online sales promotions during the nine months ended
March 31, 2018, which contributed to
more sales revenue overall.
Revenues from Chinese medicinal herbal products increased by
$0.51 million, or 5.2%, to
$10.23 million for the nine months
ended March 31, 2018 from
$9.73 million for the same period of
last year. The increase was primarily due to more fulfilled sales
orders from customers for the nine months ended March 31, 2018 than the same period in 2017.
Revenues from other agricultural products increased by
$1.60 million, or 12.3%, to
$14.64 million for the nine months
ended March 31, 2018 from
$13.04 million for the same period of
last year. The increase was mainly attributable to the increase in
sales volume of yew trees since the public realized the air
purification function of the yew trees.
Gross profit and Gross Margin
Total cost of goods sold increased by $6.06 million, or 35.5%, to $23.11 million for the nine months ended
March 31, 2018 from $17.06 million for the same period of last year.
Gross profit increased by $3.70
million, or 43.6%, to $12.17
million for the nine months ended March 31, 2018 from $8.47
million for the same period of last year. Overall gross
margin increased by 1.3 percentage points to 34.5% for the nine
months ended March 31, 2018, compared
to 33.2% for the same period of last year.
Gross margins for Luobuma products, Chinese medicinal herbal
products, and other agricultural products were 53.7%, 22.5%, and
29.2%, respectively, for the nine months ended March 31, 2018. This compared to gross margins
for Luobuma products, Chinese medicinal herbal products, and other
agricultural products of 50.0%, 25.6%, and 35.3%, respectively, for
the same period of last year.
Operating income
Selling expenses increased by $0.05
million, or 3.9%, to $1.23
million for the nine months ended March 31, 2018 from $1.19
million for the same period of last year, primarily due to
the acquisition of a new subsidiary, Tianjin Tajite, in
October 2017. The increase in selling
and distribution expenses was also a result of increased promotion
expenses as the Company enhanced its online sales promotions,
partially offset by decreased rent expense of warehouse and salary
expenses due to more effective cost control during the nine months
ended March 31, 2018 compared to the
same period of 2017. General and administrative expenses increased
by $0.79 million, or 39.0%, to
$2.82 million for the nine months
ended March 31, 2018 from
$2.03 million for the same period of
last year. The increase in general and administrative expenses was
primarily attributable to the incorporation and acquisition of new
subsidiaries, Tiankunrunze in second quarter of fiscal year 2017,
and Xinjiang Taihe and Tianjin Tajite in fiscal year 2018.
The increase in general and administrative expenses was also
a result of increased professional service fees, such as attorney's
fees, consulting fees and auditing fees. As a result, total
operating expenses increased by $0.84
million, or 26.0%, to $4.05
million for the nine months ended March 31, 2018 from $3.22
million for the same period of last year.
Operating income increased by $2.86
million, or 54.4%, to $8.11
million for the nine months ended March 31, 2018 from $5.25
million for the same period of last year. Operating margin
was 23.0% for the nine months ended March
31, 2018, compared to 20.6% for the same period of last
year.
Net income
Net income increased by $3.12
million, or 50.0%, to $9.35
million for the nine months ended March 31, 2018 from $6.23
million for the same period of last year. After the
deduction of non-controlling interests, net income attributable to
common shareholders for the nine months ended March 31, 2018 was $9.41
million, or $0.45 per basic
and diluted share. This compared to net income attributable to
common shareholders of $6.12 million,
$0.30 per basic and diluted share,
for the same period of last year.
Financial Condition
As of March 31, 2018, the Company
had cash and cash equivalents of $28.43
million, compared to $23.15
million as of June 30, 2017.
Net cash used in operating activities was $5.34 million for the nine months ended
March 31, 2018, compared to net cash
used in operating activities of $1.38
million for the same period of last year. Net cash used in
investing activities was $0.90
million for the nine months ended March 31, 2018, compared to $1.69 million for the same period of last year.
Net cash used in financing activities was $0.45 million for the nine months ended
March 31, 2018, compared to net cash
provided by financing activities of $5.60
million for the same period of last year.
About Shineco, Inc.
Incorporated in August 1997 and
headquartered in Beijing, China,
Shineco, Inc. ("Shineco" or the "Company") is a Delaware holding company that uses its
subsidiaries' and variable interest entities' vertically- and
horizontally-integrated production, distribution and sales channels
to provide health and well-being focused plant-based products in
China. Utilizing modern
engineering technologies and biotechnologies, Shineco produces,
among other products, Chinese herbal medicines, organic
agricultural produce and specialized textiles. For more information
about the Company, please visit www.shinecobiotech.com.
Forward-Looking Statements
This press release contains information about Shineco's view
of its future expectations, plans and prospects that constitute
forward-looking statements. Actual results may differ
materially from historical results or those indicated by these
forward-looking statements as a result of a variety of factors
including, but not limited to, risks and uncertainties associated
with its ability to raise additional funding, its ability to
maintain and grow its business, variability of operating results,
its ability to maintain and enhance its brand, its development and
introduction of new products and services, the successful
integration of acquired companies, technologies and assets into its
portfolio of products and services, marketing and other business
development initiatives, competition in the industry, general
government regulation, economic conditions, dependence on key
personnel, the ability to attract, hire and retain personnel who
possess the technical skills and experience necessary to meet the
requirements of its clients, and its ability to protect its
intellectual property. Shineco encourages you to review other
factors that may affect its future results in Shineco's
registration statement and in its other filings with the Securities
and Exchange Commission.
For more information, please contact:
Tina Xiao
Ascent Investor Relations LLC
Phone: +1-917-609-0333
Email: tina.xiao@ascent-ir.com
SHINECO,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
March 31,
|
|
June 30,
|
|
2018
|
|
2017
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash
|
$
|
28,432,209
|
|
$
|
23,154,551
|
Accounts receivable,
net
|
|
24,864,469
|
|
|
14,480,004
|
Due from related
parties
|
|
409,193
|
|
|
448,833
|
Inventories
|
|
2,765,143
|
|
|
2,346,273
|
Advances to
suppliers, net
|
|
3,582,001
|
|
|
2,396,123
|
Deferred issuance
cost
|
|
434,000
|
|
|
-
|
Other current
assets
|
|
818,934
|
|
|
1,900,143
|
TOTAL CURRENT
ASSETS
|
|
61,305,949
|
|
|
44,725,927
|
|
|
|
|
|
|
Property and
equipment, net
|
|
12,463,088
|
|
|
10,320,396
|
Land use right, net
of accumulated amortization
|
|
1,426,571
|
|
|
1,346,631
|
Investments
|
|
6,703,975
|
|
|
5,695,080
|
Deposit for business
acquisition
|
|
128,967
|
|
|
2,065,686
|
Distribution
rights
|
|
1,175,033
|
|
|
-
|
Long-term deposit and
other noncurrent assets
|
|
121,494
|
|
|
112,883
|
Prepaid
leases
|
|
3,706,730
|
|
|
3,784,533
|
Deferred tax
assets
|
|
-
|
|
|
233,834
|
Goodwill
|
|
2,230,683
|
|
|
-
|
TOTAL ASSETS
|
$
|
89,262,490
|
|
$
|
68,284,970
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Short-term
loans
|
$
|
2,481,156
|
|
$
|
2,663,628
|
Accounts
payable
|
|
3,242,373
|
|
|
158,068
|
Advances from
customers
|
|
6,811
|
|
|
5,439
|
Due to related
parties
|
|
206,885
|
|
|
257,880
|
Other payables and
accrued expenses
|
|
2,181,904
|
|
|
337,107
|
Taxes
payable
|
|
2,385,329
|
|
|
1,608,926
|
TOTAL CURRENT
LIABILITIES
|
|
10,504,458
|
|
|
5,031,048
|
|
|
|
|
|
|
Deferred tax
liability
|
|
4,229
|
|
|
-
|
TOTAL
LIABILITIES
|
|
10,508,687
|
|
|
5,031,048
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
-
|
|
|
-
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
|
Common stock; par
value $0.001, 100,000,000 shares authorized; 21,234,072 and
21,034,072 shares issued and outstanding at March 31, 2018
and June 30, 2017
|
|
21,234
|
|
|
21,034
|
Additional paid-in
capital
|
|
23,171,102
|
|
|
22,737,302
|
Statutory
reserve
|
|
4,074,570
|
|
|
3,484,449
|
Retained
earnings
|
|
47,880,159
|
|
|
39,064,743
|
Accumulated other
comprehensive loss
|
|
2,489,677
|
|
|
(3,140,982)
|
Total Stockholders'
equity of Shineco, Inc.
|
|
77,202,742
|
|
|
62,166,546
|
Non-controlling
interest
|
|
1,117,061
|
|
|
1,087,376
|
TOTAL
EQUITY
|
|
78,319,803
|
|
|
63,253,922
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
$
|
89,262,490
|
|
$
|
68,284,970
|
|
SHINECO,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
INCOME
(UNAUDITED)
|
|
For the Nine
Months
Ended March 31,
|
|
For the Three
Months
Ended March 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
REVENUE
|
$
|
35,282,977
|
|
$
|
25,531,313
|
|
$
|
13,341,281
|
|
$
|
7,941,583
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product and
services
|
|
23,059,329
|
|
|
17,007,048
|
|
|
8,065,117
|
|
|
5,319,742
|
Business and sales
related tax
|
|
55,624
|
|
|
53,228
|
|
|
14,287
|
|
|
19,264
|
Total cost of
revenue
|
|
23,114,953
|
|
|
17,060,276
|
|
|
8,079,404
|
|
|
5,339,006
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
12,168,024
|
|
|
8,471,037
|
|
|
5,261,877
|
|
|
2,602,577
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
2,820,689
|
|
|
2,029,981
|
|
|
956,765
|
|
|
631,640
|
Selling
expenses
|
|
1,232,713
|
|
|
1,186,536
|
|
|
387,494
|
|
|
304,182
|
Total operating
expenses
|
|
4,053,402
|
|
|
3,216,517
|
|
|
1,344,259
|
|
|
935,822
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
8,114,622
|
|
|
5,254,520
|
|
|
3,917,618
|
|
|
1,666,755
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Income from equity
method investments
|
|
703,453
|
|
|
699,380
|
|
|
352,801
|
|
|
297,612
|
Purchase rebate
income
|
|
1,191,011
|
|
|
846,297
|
|
|
411,076
|
|
|
253,669
|
Other
income
|
|
220,270
|
|
|
253,196
|
|
|
80,295
|
|
|
93,888
|
Interest income
(expense), net
|
|
(41,684)
|
|
|
15,124
|
|
|
(10,360)
|
|
|
(25,414)
|
Total other
income
|
|
2,073,050
|
|
|
1,813,997
|
|
|
833,812
|
|
|
619,755
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE
PROVISION FOR INCOME TAXES
|
|
10,187,672
|
|
|
7,068,517
|
|
|
4,751,430
|
|
|
2,286,510
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR
INCOME TAXES
|
|
834,647
|
|
|
833,661
|
|
|
239,612
|
|
|
328,274
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
9,353,025
|
|
|
6,234,856
|
|
|
4,511,818
|
|
|
1,958,236
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: net income
(loss) attributable to non-controlling interest
|
|
(52,512)
|
|
|
116,006
|
|
|
(40,084)
|
|
|
35,829
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
ATTRIBUTABLE TO SHINECO, INC.
|
$
|
9,405,537
|
|
$
|
6,118,850
|
|
$
|
4,551,902
|
|
$
|
1,922,407
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
9,353,025
|
|
$
|
6,234,856
|
|
$
|
4,511,818
|
|
$
|
1,958,236
|
Other comprehensive
income (loss): foreign currency translation gain (loss)
|
|
5,714,317
|
|
|
(1,985,492)
|
|
|
2,683,536
|
|
|
528,683
|
Total comprehensive
income
|
|
15,067,342
|
|
|
4,249,364
|
|
|
7,195,354
|
|
|
2,486,919
|
Less: comprehensive
income attributable to non-controlling interest
|
|
31,146
|
|
|
80,161
|
|
|
(1,249)
|
|
|
43,720
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
INCOME ATTRIBUTABLE TO SHINECO, INC.
|
$
|
15,036,196
|
|
$
|
4,169,203
|
|
$
|
7,196,603
|
|
$
|
2,443,199
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares basic and diluted
|
|
21,080,787
|
|
|
20,477,598
|
|
|
21,176,294
|
|
|
21,034,072
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per common share
|
$
|
0.45
|
|
$
|
0.30
|
|
$
|
0.21
|
|
$
|
0.09
|
SHINECO,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
For the Nine Months Ended
March 31,
|
|
2018
|
|
2017
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net income
|
$
|
9,353,025
|
|
$
|
6,234,856
|
Adjustments to
reconcile net income to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
489,835
|
|
|
445,037
|
Loss from disposal of
property and equipment
|
|
5,520
|
|
|
-
|
Bad debt
expense
|
|
47,497
|
|
|
147,770
|
Increase in inventory
reserve
|
|
153,029
|
|
|
45,419
|
Deferred tax
(benefit) provision
|
|
(35,677)
|
|
|
9,790
|
Income from equity
method investments
|
|
(703,452)
|
|
|
(699,380)
|
Interest income from
loans to related parties
|
|
-
|
|
|
(86,585)
|
|
|
|
|
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
(8,876,896)
|
|
|
(7,744,632)
|
Advances to
suppliers
|
|
(939,882)
|
|
|
(929,907)
|
Inventories
|
|
(315,834)
|
|
|
2,613,094
|
Other
receivables
|
|
259,946
|
|
|
(864,944)
|
Prepaid expense and
other assets
|
|
233,107
|
|
|
(192,464)
|
Due from related
parties
|
|
125,501
|
|
|
361,287
|
Prepaid
leases
|
|
361,665
|
|
|
351,480
|
Accounts
payable
|
|
2,945,920
|
|
|
185,693
|
Advances from
customers
|
|
(81,157)
|
|
|
26,247
|
Other
payables
|
|
1,716,955
|
|
|
(1,519,339)
|
Taxes
payable
|
|
604,558
|
|
|
232,390
|
NET CASH PROVIDED BY
(USED IN) OPERATING ACTIVITIES
|
|
5,343,660
|
|
|
(1,384,188)
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
Acquisitions of
property and equipment
|
|
(1,721,647)
|
|
|
(41,016)
|
Proceeds from
disposal of property and equipment
|
|
603
|
|
|
-
|
Payment for
construction in progress
|
|
(5,843)
|
|
|
-
|
Repayments (advances
to) of loans from third parties
|
|
831,453
|
|
|
(506,452)
|
Loan advances to
related party
|
|
(53,443)
|
|
|
-
|
Repayments of loans
from related parties
|
|
-
|
|
|
567,246
|
Income received from
investments in unconsolidated entities
|
|
152,694
|
|
|
551,933
|
Deposit for business
acquisition
|
|
(123,682)
|
|
|
(2,060,548)
|
Deposit for potential
investment
|
|
-
|
|
|
(200,000)
|
Cash of subsidiary
acquired
|
|
23,153
|
|
|
-
|
NET CASH (USED IN)
INVESTING ACTIVITIES
|
|
(896,712)
|
|
|
(1,688,837)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
Proceeds from
short-term loans
|
|
2,443,100
|
|
|
2,680,184
|
Repayment of
short-term loans
|
|
(2,820,126)
|
|
|
(2,406,426)
|
Stock issuance cost
payable
|
|
-
|
|
|
843,844
|
Proceeds from initial
public offering, net of offering costs
|
|
-
|
|
|
4,550,705
|
Repayments of
advances from related parties
|
|
(68,465)
|
|
|
(68,984)
|
NET CASH (USED IN)
PROVIDED BY FINANCING ACTIVITIES
|
|
(445,491)
|
|
|
5,599,323
|
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATE CHANGE ON CASH
|
|
1,276,201
|
|
|
(861,050)
|
|
|
|
|
|
|
NET INCREASE IN
CASH
|
|
5,277,658
|
|
|
1,665,248
|
|
|
|
|
|
|
CASH - Beginning
of the Period
|
|
23,154,551
|
|
|
22,009,374
|
|
|
|
|
|
|
CASH - End of the
Period
|
$
|
28,432,209
|
|
$
|
23,674,622
|
|
|
|
|
|
|
SUPPLEMENTAL CASH
FLOW DISCLOSURES:
|
|
|
|
|
|
Cash paid for income
taxes
|
$
|
702,064
|
|
$
|
579,566
|
Cash paid for
interest
|
$
|
98,017
|
|
$
|
109,208
|
|
|
|
|
|
|
SUPPLEMENTAL NON-CASH
INVESTING ACTIVITY:
|
|
|
|
|
|
Issued 200,000 shares
of deferred issuance cost
|
$
|
434,000
|
|
$
|
-
|
View original
content:http://www.prnewswire.com/news-releases/shineco-inc-reports-third-quarter-of-2018-financial-results-300650566.html
SOURCE Shineco, Inc