EX-99.2 3 tv516199_ex99-2.htm EXHIBIT 99.2

 

Exhibit 99.2

 

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

 

Unaudited Pro Forma Combined Balance Sheet

As of December 31, 2018

 

           Adjustment for        
   General Steel   Fresh Human   Business      Pro Forma 
   Holdings   Global   Combination   Note  Combined 
   Unaudited   Unaudited          Unaudited 
ASSETS                       
CURRENT ASSETS:                       
Cash  $504,945   $4,364,582   $       $4,869,527 
Accounts receivables   -    55,246            55,246 
Other receivables, net   2,500    -            2,500 
Prepaid expense   -    19,088            19,088 
TOTAL CURRENT ASSETS   507,445    4,438,916    -       4,946,361 
                        
RENT DEPOSIT - NON CURRENT   -    10,058            10,058 
EQUIPMENT, NET   217    -            217 
INVESTMENT IN UNCONSOLIDATED ENTITIES   16,166,360    -            16,166,360 
                        
TOTAL ASSETS  $16,674,022   $4,448,974   $-      $21,122,996 
                        
LIABILITIES AND EQUITY                       
CURRENT LIABILITIES:                       
Other payables and accrued liabilities  $447,525   $25,667   $        $473,192 
Other payables - related parties   8,954,509    233,373            9,187,882 
Taxes payable   -    277            277 
TOTAL CURRENT LIABILITIES   9,402,034    259,317    -       9,661,351 
                        
COMMITMENTS AND CONTINGENCIES                       
                        
EQUITY:                       
Series A - Preferred stock, $0.001 par value, 50,000,000 shares authorized, 3,092,899 shares issued and outstanding as of December 31, 2018 and December 31, 2017   3,093    -            3,093 
Series B - Preferred stock, $0.001 par value, 50,000,000 shares authorized, 0 shares issued and outstanding as of December 31, 2018 and December 31, 2017   -    -            - 
Common stock, $0.001 par value, 200,000,000  shares authorized, 46,508,421 and 20,694,670 shares issued, 23,962,226 and 20,200,208 shares outstanding as of December 31, 2018 and December 31, 2017, respectively   42,334    -    4,175   (a)   46,509 
Treasury stock, at cost, 494,462 shares as of December 31, 2018 and December 31, 2017   (839,686)   -            (839,686)
Ordinary Shares:  $1 par value, 50,000 shares authorized, 1 share issued and outstanding as of December 31, 2018 and December 31, 2017   -    1    (1)  (a)   - 
Additional paid-in-capital   1,257,683,756    4,777,810    (592,328)  (a)   1,261,869,238 
Statutory reserves   1,107,010    -            1,107,010 
Accumulated deficit   (1,253,804,487)   (409,065)   409,065   (a)   (1,253,804,487)
Accumulated other comprehensive income   3,079,968    (179,089)   179,089   (a)   3,079,968 
TOTAL EQUITY   7,271,988    4,189,657    -       11,461,645 
                        
TOTAL LIABILITIES AND EQUITY  $16,674,022   $4,448,974   $-      $21,122,996 

 

Note

 

(a) On December 31, 2018, the Company entered into a Share Exchange Agreement (the “Agreement”) with Fresh Human Global Ltd., a Cayman Islands corporation (“FH”) and Hummingbird Holdings Limited, the sole shareholder of FH (“Hummingbird”) holding one share of FH. Pursuant to the terms of the Agreement, Hummingbird exchanged its equity interest in FH for 4,175,095 shares of restricted stock (the “Shares”) of the Registrant (the “Exchange”). As a result of the Exchange, FH is now a wholly-owned subsidiary of the Registrant. FH was valued at approximately $4.2 million.

  

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GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

 

Unaudited Pro Forma Combined Statement of Operations and Comprehensive Income

For the year ended December 31, 2018

 

           Adjustment for        
   General Steel   Fresh Human   Business      Pro Forma 
   Holdings   Global   Combination   Note  Combined 
   Unaudited   Unaudited          Unaudited 
REVENUE  $-    60096            60,096 
SALES TAXES   -    (137)           (137)
TOTAL REVENUE   -    59,959            59,959 
                        
OPERATING EXPENSES  $-   $222,010            222,010 
GENERAL AND ADMINISTRATIVE EXPENSES   104,228    -            104,228 
                        
LOSS FROM OPERATIONS   (104,228)   (162,051)           (266,279)
                        
OTHER INCOME (EXPENSE)                       
Income from equity investment   2,344,306    -            2,344,306 
Finance/interest expense   (151)   (121)           (272)
Other income, net   -    79            79 
Other income(expense), net   2,344,155    (42)           2,344,113 
                        
INCOME BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST   2,239,927    (162,093)           2,077,834 
                        
PROVISION FOR INCOME TAXES   -    -              
                        
NET INCOME(LOSS)  $2,239,927   $(162,093)           2,077,834 
                        
OTHER COMPREHENSIVE INCOME                       
Foreign currency translation adjustments   140,445    (166,314)           (25,869)
                        
COMPREHENSIVE INCOME (LOSS)  $2,380,372   $(328,407)           2,051,965 
                        
WEIGHTED AVERAGE NUMBER OF SHARES   23,962,226    1    11,438   (a)   23,973,664 
                        
INCOME(LOSS) PER SHARE - BASIC AND DILUTED                       
                        
Net income(loss) per share  $0.11   $(162,093.14)           0.09 

 

Note

 

(a) On December 31, 2018, the Company entered into a Share Exchange Agreement (the “Agreement”) with Fresh Human Global Ltd., a Cayman Islands corporation (“FH”) and Hummingbird Holdings Limited, the sole shareholder of FH (“Hummingbird”) holding one share of FH. Pursuant to the terms of the Agreement, Hummingbird exchanged its equity interest in FH for 4,175,095 shares of restricted stock (the “Shares”) of the Registrant (the “Exchange”). As a result of the Exchange, FH is now a wholly-owned subsidiary of the Registrant. FH was valued at approximately $4.5million.

  

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