Nevada
|
333-114564
|
98-0550699
|
(State or other jurisdiction of
incorporation)
|
(Commission file number)
|
(I.R.S. employer
identification no.)
|
c/o Xinghe Xingyong Carbon Co., Ltd.
787 Xicheng Wai
Chengguantown
Xinghe County
Inner Mongolia, China
(Address of Principal Executive Offices)
(Zip Code)
(+86) 474-7209723
(Registrant’s telephone number, including area code)
|
(d)
|
Exhibits.
|
99.1
|
China Carbon Graphite Group, Inc. Press Release, dated April 17, 2013.
|
CHINA CARBON GRAPHITE GROUP, INC.
|
|||
|
By:
|
/s/ Donghai Yu | |
Donghai Yu
|
|||
Chief Executive Officer, President and Director
|
|||
(Principal Executive Officer)
|
●
|
Sales decreased 37%, from $49.8 million in FY 2011 to $31.5 million in FY 2012.
|
●
|
Gross profit dropped by 41%, from $11.6 million in FY 2011 to $6.8 million in FY 2012.
|
●
|
Net income reduced by 220%, from a gain of $3.0 million in FY 2011 to a loss of $3.6 million in FY 2012.
|
December 31, 2012
|
December 31, 2011
|
|||||||
ASSETS
|
||||||||
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$
|
129,746
|
$
|
521,450
|
||||
Restricted cash
|
22,149,000
|
11,694,820
|
||||||
Accounts receivable, Net
|
11,239,002
|
12,541,321
|
||||||
Notes receivable
|
-
|
188,880
|
||||||
Advance to suppliers
|
1,177,462
|
5,921,970
|
||||||
Inventories
|
48,417,875
|
37,430,248
|
||||||
Prepaid expenses
|
280,779
|
452,730
|
||||||
Other receivables, net of allowance of $220,339 and $24,397, respectively
|
35,655
|
513,000
|
||||||
Total current assets
|
83,429,519
|
69,264,419
|
||||||
|
||||||||
Property And Equipment, Net
|
40,964,363
|
36,719,595
|
||||||
|
||||||||
Construction In Progress
|
7,324,379
|
6,414,847
|
||||||
|
||||||||
Land Use Rights, Net
|
9,657,419
|
10,699,059
|
||||||
Total Assets
|
$
|
141,375,680
|
$
|
123,097,920
|
||||
|
||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
|
||||||||
Current Liabilities
|
||||||||
Accounts payable and accrued expenses
|
$
|
2,250,745
|
$
|
1,340,498
|
||||
Advance from customers
|
1,368,525
|
1,360,989
|
||||||
Short term bank loans
|
38,680,500
|
45,488,600
|
||||||
Notes payable
|
40,606,500
|
16,763,100
|
||||||
Other payables
|
630,179
|
3,227,067
|
||||||
Loan from unrelated parties
|
338,002
|
-
|
||||||
Dividends payable
|
46,816
|
28,099
|
||||||
Total current liabilities
|
83,921,267
|
68,208,353
|
||||||
|
||||||||
Amount Due To A Related Party
|
4,795,593
|
5,542,855
|
||||||
|
||||||||
Long Term Bank Loan
|
4,782,900
|
-
|
||||||
|
||||||||
Warrant Liabilities
|
224,362
|
174,805
|
||||||
Total Liabilities
|
93,724,122
|
73,926,013
|
||||||
|
||||||||
Redeemable convertible series B preferred stock, $0.001 par value;
|
||||||||
3,000,000 shares authorized; 300,000 and 426,110 shares issued
|
||||||||
and outstanding at December 31, 2012 and 2011, respectively.
|
360,000
|
511,332
|
||||||
Stockholders' Equity
|
||||||||
Common stock, $0.001 par value; 100,000,000 shares authorized
|
||||||||
25,077,518 and 22,981,408 shares issued and outstanding at
|
||||||||
December 31, 2012 and 2011, respectively
|
25,077
|
22,981
|
||||||
Additional paid-in capital
|
18,223,781
|
17,054,045
|
||||||
Accumulated other comprehensive income
|
8,982,925
|
7,943,542
|
||||||
Retained earnings
|
20,059,775
|
23,640,007
|
||||||
Total stockholders' equity
|
47,291,558
|
48,660,575
|
||||||
Total Liabilities and Stockholders' Equity
|
$
|
141,375,680
|
$
|
123,097,920
|
Years ended December 31,
|
||||||||
2012
|
2011
|
|||||||
Sales
|
$
|
31,482,852
|
$
|
49,846,744
|
||||
Cost of Goods Sold
|
24,707,625
|
38,261,812
|
||||||
Gross Profit
|
6,775,227
|
11,584,932
|
||||||
Operating Expenses
|
||||||||
Selling expenses
|
253,604
|
597,802
|
||||||
General and administrative
|
6,785,273
|
5,420,157
|
||||||
Depreciation and amortization
|
237,082
|
224,074
|
||||||
Total operating expenses
|
7,275,959
|
6,242,033
|
||||||
Operating Income (Loss) Before Other Income (Expense)
|
(500,732
|
)
|
5,342,899
|
|||||
Other Income (Expense)
|
||||||||
Interest expense
|
(4,305,796
|
)
|
(3,451,034
|
)
|
||||
Other expense
|
(357,070
|
)
|
-
|
|||||
Other income, net
|
1,651,640
|
1,167,077
|
||||||
Change in fair value of warrants
|
(49,557
|
)
|
(86,691
|
)
|
||||
Total other expense
|
(3,060,783
|
)
|
(2,370,648
|
)
|
||||
Net Income (Loss)
|
(3,561,515
|
)
|
2,972,251
|
|||||
Preferred Stock Dividends
|
(18,717
|
)
|
(28,099
|
)
|
||||
Net Income (Loss) Available To Common Shareholders
|
(3,580,232
|
)
|
2,944,152
|
|||||
Other Comprehensive Income
|
||||||||
Foreign currency translation gain
|
1,039,383
|
1,599,128
|
||||||
Total Comprehensive Income
|
$
|
(2,522,132
|
)
|
$
|
4,571,379
|
|||
Share Data
|
||||||||
Basic earnings (loss) per share
|
$
|
(0.15
|
)
|
$
|
0.13
|
|||
Diluted earnings (loss) per share
|
$
|
(0.15
|
)
|
$
|
0.13
|
|||
Weighted average common shares outstanding,
|
||||||||
basic
|
24,018,450
|
22,418,101
|
||||||
Weighted average common shares outstanding,
|
||||||||
diluted
|
24,018,450
|
22,844,211
|
Years ended December 31,
|
||||||||
2012
|
2011
|
|||||||
Cash flows from operating activities
|
||||||||
Net Income (loss)
|
$
|
(3,561,515
|
)
|
$
|
2,972,251
|
|||
Adjustments to reconcile net cash provided by
|
||||||||
operating activities
|
||||||||
Depreciation and amortization
|
3,298,709
|
1,803,770
|
||||||
Stock compensation
|
258,500
|
1,891,600
|
||||||
Change in fair value of warrants
|
49,557
|
86,691
|
||||||
Bad debt expense
|
1,558,643
|
187,732
|
||||||
Change in operating assets and liabilities
|
||||||||
Accounts receivable
|
1,530,015
|
(6,180,362
|
)
|
|||||
Notes receivable
|
(443,800
|
)
|
284,881
|
|||||
Other receivable
|
481,374
|
(161,882
|
)
|
|||||
Advance to suppliers
|
3,241,924
|
4,588,784
|
||||||
Inventories
|
(10,122,706
|
)
|
(10,224,660
|
)
|
||||
Prepaid expenses
|
174,686
|
(219,098
|
)
|
|||||
Accounts payable and accrued liabilities
|
1,036,477
|
(4,423,066
|
)
|
|||||
Loan from unrelated parties
|
333,790
|
-
|
||||||
Advance from customers
|
(19,028
|
)
|
257,028
|
|||||
Taxes payable
|
(1,118,582
|
)
|
1,481,487
|
|||||
Other payables
|
(1,632,950
|
)
|
(601,585
|
)
|
||||
Net cash used in operating activities
|
(4,934,906
|
)
|
(8,256,429
|
)
|
||||
Cash flows from investing activities
|
||||||||
Acquisition of property and equipment
|
(65,945
|
)
|
(5,789,966
|
)
|
||||
Construction in progress
|
(5,597,285
|
)
|
(2,772,094
|
)
|
||||
Acquisition of land use right
|
(15,850
|
)
|
-
|
|||||
Net cash used in investing activities
|
(5,679,080
|
)
|
(8,562,060
|
)
|
||||
Cash flows from financing activities
|
||||||||
Proceeds from issuing common stock
|
762,000
|
160,000
|
||||||
Proceeds from warrants exercise
|
-
|
371,714
|
||||||
Dividends paid for series B preferred stock
|
-
|
(32,997
|
)
|
|||||
Proceeds from short-term bank loans
|
42,921,800
|
44,795,000
|
||||||
Payment to short-term bank loans
|
(50,529,800
|
)
|
(34,022,500
|
)
|
||||
Proceeds from long-term bank loans
|
4,723,300
|
-
|
||||||
Proceeds from loans from unrelated parties
|
11,413,937
|
-
|
||||||
Payment of loans from unrelated parties
|
(11,186,898
|
)
|
-
|
|||||
Payments to an related party
|
(1,673,126
|
)
|
-
|
|||||
Proceeds from an related party
|
827,370
|
610,492
|
||||||
Payment for common stock not issued
|
(160,000
|
)
|
-
|
|||||
Common stock shares to be issued
|
160,000
|
|||||||
Restricted cash
|
(10,096,450
|
)
|
(11,516,500
|
)
|
||||
Proceeds from notes payable
|
58,011,000
|
16,507,500
|
||||||
Repayment to notes payable
|
(34,790,750
|
)
|
-
|
|||||
Net cash provided by financing activities
|
10,222,383
|
17,032,709
|
||||||
Effect of exchange rate fluctuation
|
(101
|
)
|
10,918
|
|||||
Net increase (decrease) in cash
|
(391,704
|
)
|
225,138
|
|||||
Cash and cash equivalents at beginning of period
|
521,450
|
296,312
|
||||||
Cash and cash equivalents at end of period
|
$
|
129,746
|
$
|
521,450
|
||||
Supplemental disclosure of cash flow information
|
||||||||
Interest paid
|
$
|
4,199,529
|
$
|
3,451,037
|
||||
Income tax paid
|
$
|
-
|
$
|
-
|
||||
Non-cash activities:
|
||||||||
Preferred stock conversion to common stock
|
$
|
151
|
$
|
959
|
||||
Reclassification of warrant liability with equity
|
$
|
-
|
$
|
14,993
|
||||
Reclassification from construction in progress to property and equipment
|
$
|
5,457,854
|
$
|
7,332,116
|
||||
Reclassification from accounts payable to property and equipment
|
$
|
-
|
$
|
(15,500
|
)
|
|||
Reclassification from notes payable to construction in progress
|
$
|
634,000
|
$
|
-
|