UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 15, 2019
KANDI TECHNOLOGIES
GROUP, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 001-33997 | 90-0363723 | ||
| (State of Incorporation) | (Commission File Number) | (IRS Employer Identification) |
Jinhua City Industrial Zone
Jinhua, Zhejiang Province
People’s Republic of China
Post Code 321016
(Address of principal executive offices)
(86-579) 8223-9700
Registrant’s telephone number, including area code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 1 4a- 12 under the Exchange Act (17 CFR 240.1 4a- 12)
☐ Pre-commencement communications pursuant to Rule 1 4d-2(b) under the Exchange Act (17 CFR 240.1 4d-2(b))
☐ Pre-commencement communications pursuant to Rule 1 3e-4(c) under the Exchange Act (17 CFR 240.1 3e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| ITEM 2.02. | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
On March 15, 2019, Kandi Technologies Group, Inc. (the “Company”) issued a press release announcing certain financial results for the fiscal year ended December 31, 2018. A copy of the press release is attached hereto as Exhibit 99.1.
The information contained in this Item 2.02 is not “filed” for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is not deemed incorporated by reference by any general statements incorporating by reference this report or future filings into any filings under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent the Company specifically incorporates the information by reference.
|
ITEM 9.01. |
FINANCIAL STATEMENTS AND EXHIBITS. |
(d) Exhibits.
|
Exhibit No. |
Description | |
| 99.1 | Press release dated March 15, 2019 |
| 1 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| KANDI TECHNOLOGIES GROUP, INC. | ||
| Date: March 15, 2019 | By: | /s/ Hu Xiaoming |
| Name: | Hu Xiaoming | |
| Title: | Chief Executive Officer | |
| 2 |
Exhibit 99.1
Kandi Technologies Reports Full Year 2018 Financial Results
JINHUA, CHINA-- (March 15, 2019) - Kandi Technologies Group, Inc. (the “Company,” “we” or “Kandi”) (NASDAQ GS: KNDI), announced its financial results for the full year ended December 31, 2018 today.
Full Year 2018 Highlights
| ● | Total revenues were $112.4 million in 2018, an increase of 9.4% from total revenues of $102.8 million in 2017. |
| ● | EV parts sales increased by 1.8% to $99.1 million in 2018, compared with EV parts sales of $97.4 million in 2017. |
| ● | Off-road vehicles sales increased by 144.8% to $13.3 million in 2018, compared with off-road vehicles sales of $5.4 million in 2017. |
| ● | Gross margin for the year ended December 31, 2018 was 18.0%, compared to 14.0% for the year ended December 31, 2017. |
| ● | Kandi Electric Vehicles Group Co., Ltd. (the “JV Company”) sold 10,259 EV products in 2018, compared to 11,437 EV products sold in 2017, a decrease of 10.3%. |
| ● | Income before income taxes in 2018 was $2.08 million, compared with loss before income taxes of $31.61 million in 2017. |
| ● | GAAP net loss in 2018 was $5.7 million, or $0.11 loss per fully diluted share, compared with GAAP net loss of $28.3 million, or $0.59 loss per fully diluted share in 2017. |
| ● | Non-GAAP adjusted net loss[1] which excludes stock award expenses and gain of changes in the fair value of contingent consideration, was $8.8 million in 2018, compared with non-GAAP adjusted net loss of $23.2 million in 2017. Non-GAAP adjusted loss per share1 was approximately $0.17 per fully diluted share for the full year of 2018, compared with non-GAAP adjusted loss per share of $0.48 per fully diluted share for the full year of 2017. |
| ● | Working capital surplus was $2.5 million as of December 31, 2018. Cash, cash equivalents and restricted cash totaled $22.4 million as of December 31, 2018. |
1 Non-GAAP measures, including Non-GAAP net income and Non-GAAP EPS are defined as the financial measures excluding the change of fair value of contingent consideration and the effects of stock award expenses. We supply non-GAAP information because we believe it allows our investors to obtain a clearer understanding of our operations. Any non-GAAP measure should not be considered as a substitute for, and should only be read in conjunction with, measures of financial performance prepared in accordance with GAAP.
Mr. Hu Xiaoming, Chairman and Chief Executive Officer of Kandi, comments, “Kandi has experienced challenges over the past few years due to the confusion surrounding the reusable battery exchange model. However, Kandi has been working diligently to overcome the downturn and obstacles to resolve these issues. Early on in 2018, we prepared a three-year plan for 2018 through 2020 based on our company’s and the industry’s situation. 2018 was to be the year of survival, 2019 of revival, and 2020 will be the year of prosperity. Through our hard work in 2018, we rebuilt and refined our practices, and as a result, we are very pleased with our financial performance. In 2018, our total revenue was up 9.4% to $112 million; while pre-tax income was $2.1 million compared to a loss of $31.6 million in 2017. In 2019, we plan to continue this upwards momentum, and further refine our business model and execution plan to forge new opportunities moving forward in the following ways.”
“First, the management team hopes the JV Company to achieve its projected goals of producing and selling 20,000 EVs in 2019. Second, the Company is expecting to obtain the approval of its application for a manufacturing license from the Ministry of Industry and Information Technology to become an official EV manufacturing enterprise with “dual production licenses”. Third, following the U.S. National Highway Traffic Safety Administration’s (NHTSA) approval of certain Kandi EV models for importation and registration in the U.S., Kandi EV models are now eligible for up to $7,500 in federal tax credits in 2019 and 2020. To capitalize on the opportunity presented by the NHTSA’s approval, we are in the process of preparing a strategic sales plan for the debut of Kandi EV models in the American market later this year. Fourth, the car share program (or Micro Public Transportation) has been upgraded to an online ride-hailing business model in China, which is expected to open up a broader market for Kandi electric vehicles. Finally, the Company is evaluating for the optimal time to restructure the JV Company’s equity in order to unlock the shareholder value of the JV Company. We are dedicated in taking full advantage of the milestones we have reached thus far, achieving stronger business results in 2019, as well as maximizing our long-term shareholders’ investments.” Mr. Hu concluded.
Full Year 2018 Financial Results
Net Revenues and Gross Profit
| 2018 | 2017 | Y-o-Y% | ||||||||||
| Net Revenues (US$mln) | $ | 112.4 | $ | 102.8 | 9.4 | % | ||||||
| Gross Profit (US$mln) | $ | 20.2 | $ | 14.3 | 41.2 | % | ||||||
| Gross Margin | 18.0 | % | 14.0 | % | - | |||||||
Net revenues for the full year 2018 increased 9.4% from 2017. The increase in net revenues was mainly due to an increase in sales of off-road vehicles in 2018. Gross margin for the full year 2018 increased to 18.0%, compared with 14.0% in 2017. The increase in the gross margin was mainly due to the higher gross margin from off-road vehicle sales of SC Autosports, a result of its effective procurement of inventories at discounted prices, as well as increased gross margin from sales of battery packs.
2
Operating Income (Loss)
| 2018 | 2017 | Y-o-Y% | ||||||||||
| Operating Expenses (US$mln) | $ | 21.9 | $ | 40.4 | -45.9 | % | ||||||
| Operating Loss (US$mln) | $ | (1.6 | ) | $ | (26.1 | ) | -93.7 | % | ||||
| Operating Margin | -1.5 | % | -25.4 | % | - | |||||||
Total operating expenses in 2018 were $21.9 million, compared with $40.4 million in 2017. The decrease in total operating expenses was due to largely decreased research and development expenses in 2018.
GAAP Net Loss
| 2018 | 2017 | Y-o-Y% | ||||||||||
| GAAP Net Loss (US$mln) | $ | (5.7 | ) | $ | (28.3 | ) | -79.9 | % | ||||
| Loss per Weighted Average Common Share | $ | (0.11 | ) | $ | (0.59 | ) | - | |||||
| Loss per Weighted Average Diluted Share | $ | (0.11 | ) | $ | (0.59 | ) | - | |||||
Non-GAAP Financial Measures
We make reference to certain non-GAAP financial measures, i.e., adjusted net income. Management believes that such adjusted financial results are useful for investors in evaluating our operating performance because they present a meaningful measure of corporate performance. See the non-GAAP reconciliation table below. Any non-GAAP measures should not be considered as a substitute for, and should only be read in conjunction with, measures of financial performance prepared in accordance with the GAAP.
| Non-GAAP financial measure | 2018 | 2017 | Y-o-Y% | |||||||||
| GAAP Net Loss (US$mln) | $ | (5.7 | ) | $ | (28.3 | ) | -79.9 | % | ||||
| Stock award expenses (US$mln) | $ | 0.29 | $ | 5.2 | -94.4 | % | ||||||
| Change of the fair value of contingent consideration | $ | (3.4 | ) | - | - | |||||||
| Non-GAAP net Loss (US$mln) | $ | (8.8 | ) | ($ | 23.2 | ) | -61.9 | % | ||||
3
Net loss in 2018 was $5.7 million, compared with net loss of $28.3 million in 2017. The decrease in net loss was primarily attributable to the increased gross profits, the decreased in R&D expenses and the increased government grand the Company received this year.
JV Company Financial Results
In the full year 2018, the JV Company sold 10,259 units of EV products in China.
The condensed financial income statement of the JV Company for the full year 2018 is as set forth below:
| 2018 | 2017 | Y-o-Y% | ||||||||||
| Net Revenues (US$mln) | $ | 122.5 | $ | 192.7 | -36.5 | % | ||||||
| Gross (Loss) Profit (US$mln) | $ | (17.7 | ) | $ | 3.6 | -593.1 | % | |||||
| Gross Margin | -14.5 | % | 1.9 | % | - | |||||||
| Net Loss (US$mln) | $ | (36.3 | ) | $ | (22.7 | ) | 60.1 | % | ||||
| % of Net revenues | -29.7 | % | -11.8 | % | - | |||||||
Kandi’s investments in the JV Company are accounted for under the equity method of accounting, as Kandi has a 50% ownership interest in the JV Company. As a result, Kandi recorded 50% of the JV Company’s loss for $18.2 million for the full year 2018. After eliminating intra-entity profits and losses, Kandi’s share of the after tax loss of the JV Company was $17.9 million for the full year 2018.
Full Year 2018 Conference Call Details
The Company has scheduled a conference call and live webcast to discuss the financial results at 8:00 AM (U.S. Eastern Time) on March 15, 2019 (8:00 PM Beijing Time on March 15, 2019). Mr. Hu Xiaoming, the Company’s Chief Executive Officer and Ms. Emily Zhu, the Company’s Interim Chief Financial Officer, will deliver prepared remarks, followed by a question and answer session.
The dial-in details for the conference call are as follows:
| · | Toll-free dial-in number: +1-888-394-8218 |
| · | International dial-in number: + 1-323-701-0225 |
| · | Webcast and replay: http://public.viavid.com/index.php?id=133596 |
4
A live audio webcast of the call may also be accessed by visiting Kandi’s Investor Relations website at http://ir.kandivehicle.com. An archive of the webcast will be available on the Company’s website following the live call.
About Kandi Technologies Group, Inc.
Kandi Technologies Group, Inc. (KNDI), headquartered in Jinhua Economic Development Zone, Zhejiang Province, is engaged in the research, development, manufacturing, and sales of various vehicular products. Kandi conducts its primary business operations through its wholly-owned subsidiary, Zhejiang Kandi Vehicles Co., Ltd. (“Kandi Vehicles”), SC Autosports, LLC, the wholly-owned subsidiary of Kandi Vehicles, and Kandi Electric Vehicles Group Co., Ltd. (the “JV Company”). Kandi Vehicles has established itself as one of China’s leading manufacturers of pure electric vehicle parts and off-road vehicles.
In 2013, Kandi Vehicles and Geely Group, China’s leading automaker, jointly invested in the establishment of the JV Company in order to develop, manufacture and sell pure electric vehicle (“EV”) products. As of 2018, each party has invested RMB 1.045 billion in the JV Company, for a total investment of RMB 2.09 billion with each party (including Geely Group’s affiliate) holding a 50% stake in the JV Company. The JV Company has established itself as one of the driving forces in the development and the manufacturing of pure EV products in China.
More information about KNDI is available on the Company’s corporate website at http://www.kandivehicle.com. The Company routinely posts important information on its website.
Safe Harbor Statement
This press release contains certain statements that may include “forward-looking statements.” All statements other than statements of historical fact included herein are “forward-looking statements.” These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on the SEC’s website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the applicable securities laws, the Company does not assume a duty to update these forward-looking statements.
Follow us on Twitter: @ Kandi_Group
Company Contact:
Ms. Kewa Luo
Kandi Technologies Group, Inc.
Phone: 1-212-551-3610
Email: IR@kandigroup.com
- Tables Below -
5
KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| December 31, 2018 | December 31, 2017 | |||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 15,662,201 | $ | 4,891,808 | ||||
| Restricted cash | 6,690,870 | 11,218,688 | ||||||
| Accounts receivable (net of allowance for doubtful accounts of $120,010 and $133,930 as of December 31, 2018 and December 31, 2017, respectively) | 34,274,728 | 34,397,858 | ||||||
| Inventories (net of provision for slow moving inventory of $840,701 and $620,919 as of December 31, 2018 and December 31, 2017, respectively) | 21,997,868 | 15,979,794 | ||||||
| Notes receivable | 72,712 | - | ||||||
| Notes receivable from JV Company and related party | 3,861,032 | 1,137,289 | ||||||
| Other receivables | 1,264,323 | 2,650,668 | ||||||
| Prepayments and prepaid expense | 11,136,408 | 6,536,839 | ||||||
| Due from employees | 1,001 | 7,070 | ||||||
| Advances to suppliers | 4,705,183 | 14,908,385 | ||||||
| Amount due from JV Company, net | 67,683,462 | 146,422,440 | ||||||
| Amount due from related party | - | 162,048 | ||||||
| TOTAL CURRENT ASSETS | 167,349,788 | 238,312,887 | ||||||
| LONG-TERM ASSETS | ||||||||
| Property, plant and equipment, net | 82,045,923 | 12,000,971 | ||||||
| Land use rights, net | 11,749,728 | 12,666,047 | ||||||
| Construction in progress | - | 53,083,925 | ||||||
| Deferred taxes assets | 8,204 | 4,383,425 | ||||||
| Long term investment | - | 1,460,034 | ||||||
| Investment in JV Company | 128,929,893 | 70,681,013 | ||||||
| Goodwill | 28,552,215 | 322,591 | ||||||
| Intangible assets | 4,328,127 | 331,116 | ||||||
| Advances to suppliers | - | 21,592,918 | ||||||
| Other long term assets | 5,865,386 | 7,590,734 | ||||||
| Amount due from JV Company, net | - | 15,907,183 | ||||||
| TOTAL Long-Term Assets | 261,479,476 | 200,019,957 | ||||||
| TOTAL ASSETS | $ | 428,829,264 | $ | 438,332,844 | ||||
| CURRENT LIABILITIES | ||||||||
| Accounts payables | $ | 112,309,683 | $ | 111,595,540 | ||||
| Other payables and accrued expenses | 4,251,487 | 6,556,209 | ||||||
| Short-term loans | 30,539,236 | 33,042,864 | ||||||
| Customer deposits | 94,408 | 205,544 | ||||||
| Notes payable | 12,787,619 | 28,075,945 | ||||||
| Income tax payable | 3,471,366 | 2,902,699 | ||||||
| Due to employees | 28,473 | 35,041 | ||||||
| Deferred income | 1,340,605 | 2,191,143 | ||||||
| Total Current Liabilities | 164,822,877 | 184,604,985 | ||||||
| LONG-TERM LIABILITIES | ||||||||
| Long term bank loans | 28,794,136 | 30,737,547 | ||||||
| Deferred taxes liabilities | 1,711,343 | - | ||||||
| Contingent liability | 7,256,000 | - | ||||||
| Other long-term liability | 622,034 | - | ||||||
| Total Long-Term Liabilities | 38,383,513 | 30,737,547 | ||||||
| TOTAL LIABILITIES | 203,206,390 | 215,342,532 | ||||||
| STOCKHOLDER’S EQUITY | ||||||||
| Common stock, $0.001 par value; 100,000,000 shares authorized; 55,992,002 and 48,036,538 shares issued and 51,484,444 and 48,036,538 outstanding at December 31, 2018 and December 31,2017, respectively | 51,484 | 48,037 | ||||||
| Additional paid-in capital | 254,989,657 | 233,055,348 | ||||||
| Retained earnings (the restricted portion is $4,422,033 and $4,422,033 at December 31, 2018 and December 31, 2017, respectively) | (9,497,009 | ) | (3,802,310 | ) | ||||
| Accumulated other comprehensive loss | (19,921,258 | ) | (6,310,763 | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | 225,622,874 | 222,990,312 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 428,829,264 | $ | 438,332,844 | ||||
6
KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
FOR THE YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
| Year Ended | ||||||||||||
| December 31, 2018 | December 31, 2017 | December 31, 2016 | ||||||||||
| REVENUES FROM UNRELATED PARTY, NET | $ | 63,707,518 | $ | 9,853,410 | $ | 47,870,589 | ||||||
| REVENUES FROM JV COMPANY AND RELATED PARTY, NET | 48,731,310 | 92,952,211 | 81,621,424 | |||||||||
| REVENUES, NET | 112,438,828 | 102,805,621 | 129,492,013 | |||||||||
| COST OF GOODS SOLD | (92,191,383 | ) | (88,461,432 | ) | (111,770,197 | ) | ||||||
| GROSS PROFIT | 20,247,445 | 14,344,189 | 17,721,816 | |||||||||
| OPERATING EXPENSES: | ||||||||||||
| Research and development | (10,084,378 | ) | (27,628,085 | ) | (26,504,650 | ) | ||||||
| Selling and marketing | (3,189,022 | ) | (1,465,007 | ) | (1,567,707 | ) | ||||||
| General and administrative | (8,612,393 | ) | (11,333,336 | ) | (20,665,709 | ) | ||||||
| Total Operating Expenses | (21,885,793 | ) | (40,426,428 | ) | (48,738,066 | ) | ||||||
| LOSS FROM OPERATIONS | (1,638,348 | ) | (26,082,239 | ) | (31,016,250 | ) | ||||||
| OTHER INCOME (EXPENSE): | ||||||||||||
| Interest income | 1,324,812 | 2,269,844 | 2,961,153 | |||||||||
| Interest expense | (1,871,851 | ) | (2,280,286 | ) | (1,831,667 | ) | ||||||
| Change in fair value of financial instruments | - | - | 3,823,590 | |||||||||
| Change in fair value of contingent consideration | 3,405,864 | - | - | |||||||||
| Government grants | 17,787,445 | 5,913,554 | 25,913,540 | |||||||||
| Share of loss after tax of JV | (17,888,706 | ) | (11,555,302 | ) | (7,307,510 | ) | ||||||
| Other income, net | 956,839 | 123,925 | 1,627,933 | |||||||||
| Total other income (expense), net | 3,714,403 | (5,528,265 | ) | 25,187,039 | ||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | 2,076,055 | (31,610,504 | ) | (5,829,211 | ) | |||||||
| INCOME TAX (EXPENSE) BENEFIT | (7,770,754 | ) | 3,263,030 | (681,546 | ) | |||||||
| NET LOSS | (5,694,699 | ) | (28,347,474 | ) | (6,510,757 | ) | ||||||
| OTHER COMPREHENSIVE (LOSS) INCOME | ||||||||||||
| Foreign currency translation | (13,610,495 | ) | 13,846,110 | (15,415,223 | ) | |||||||
| COMPREHENSIVE LOSS | $ | (19,305,194 | ) | $ | (14,501,364 | ) | $ | (21,925,980 | ) | |||
| WEIGHTED AVERAGE SHARES OUTSTANDING BASIC | 51,188,647 | 47,943,830 | 47,447,665 | |||||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED | 51,188,647 | 47,943,830 | 47,447,665 | |||||||||
| NET LOSS PER SHARE, BASIC | $ | (0.11 | ) | $ | (0.59 | ) | $ | (0.14 | ) | |||
| NET LOSS PER SHARE, DILUTED | $ | (0.11 | ) | $ | (0.59 | ) | $ | (0.14 | ) | |||
7
KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
| Year Ended | ||||||||||||
| December 31, 2018 |
December 31, 2017 |
December 31, 2016 |
||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
| Net loss | $ | (5,694,699 | ) | $ | (28,347,474 | ) | $ | (6,510,757 | ) | |||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||
| Depreciation and amortization | 4,326,296 | 4,777,992 | 4,863,277 | |||||||||
| Assets impairments | 263,185 | 170,506 | (40,142 | ) | ||||||||
| Allowance for doubtful accounts | (213,809 | ) | 128,972 | - | ||||||||
| Deferred taxes | 4,815,774 | (5,448,015 | ) | 3,651,362 | ||||||||
| Change in fair value of financial instruments | - | - | (3,823,590 | ) | ||||||||
| Share of loss after tax of JV Company | 17,888,706 | 11,555,302 | 7,307,510 | |||||||||
| Reserve for fixed assets | (52,744 | ) | 451,503 | - | ||||||||
| Change in fair value of contingent consideration | (3,405,864 | ) | - | - | ||||||||
| Stock compensation cost | 285,609 | 5,191,307 | 14,913,212 | |||||||||
| Changes in operating assets and liabilities, net of effects of acquisition: | ||||||||||||
| (Increase) Decrease In: | ||||||||||||
| Accounts receivable | (57,503,289 | ) | (5,821,522 | ) | (40,962,889 | ) | ||||||
| Deferred taxes assets | 375 | - | - | |||||||||
| Notes receivable | 483,778 | - | 1,383,605.00 | |||||||||
| Notes receivable from JV Company and related party | 6,231,669 | 8,068,968 | - | |||||||||
| Inventories | (5,243,388 | ) | (3,311,357 | ) | 4,952,792 | |||||||
| Other receivables and other assets | (31,373,831 | ) | (1,243,552 | ) | (43,650,395 | ) | ||||||
| Due from employee | 1,045 | 10,127 | 41,529 | |||||||||
| Advances to supplier and prepayments and prepaid expenses | (5,386,448 | ) | 23,107,334 | (9,209,955 | ) | |||||||
| Advances to suppliers-long term | - | (5,941,692 | ) | - | ||||||||
| Amount due from JV Company | (95,442,739 | ) | (53,622,842 | ) | (111,996,250 | ) | ||||||
| Amount due from JV Company-Longterm | 15,907,183 | (15,907,183 | ) | - | ||||||||
| Due from related party | 159,405 | 10,622,123 | 28,715,113 | |||||||||
| Increase (Decrease) In: | ||||||||||||
| Accounts payable | 137,390,139 | 66,784,385 | 112,150,789 | |||||||||
| Other payables and accrued liabilities | 60,736,669 | 1,914,293 | (3,790,859 | ) | ||||||||
| Notes payable | (30,542,040 | ) | (13,297,993 | ) | (8,480,858 | ) | ||||||
| Customer deposits | (104,047 | ) | 155,100 | (48,312 | ) | |||||||
| Income tax payable | 822,422 | 1,221,012 | 1,008,274 | |||||||||
| Deferred income | (761,736 | ) | (4,431,765 | ) | - | |||||||
| Net cash provided by (used in) operating activities | $ | 13,587,621 | $ | (3,214,471 | ) | (49,526,543 | ) | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
| Purchases of property, plant and equipment, net | (582,872 | ) | (760,253 | ) | (275,801 | ) | ||||||
| Purchases of land use rights and other intangible assets | (103,871 | ) | (416,361 | ) | (3,388 | ) | ||||||
| Acquisition of Jinhua An Kao (net of cash received) | (3,555,766 | ) | - | - | ||||||||
| Acquisition of SC Autosports | 486,954 | - | - | |||||||||
| Purchases of construction in progress | (418,755 | ) | (702,719 | ) | (6,001,664 | ) | ||||||
| Reimbursement of capitalize interests for construction in progress | 1,790,652 | - | - | |||||||||
| Repayment of notes receivable | - | - | 10,335,807 | |||||||||
| Long Term Investment | 1,436,217 | - | - | |||||||||
| Short term investment | - | 4,587,971 | (3,088,327 | ) | ||||||||
| Net cash (used in) provided by investing activities | $ | (947,441 | ) | $ | 2,708,638 | 966,627 | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
| Proceeds from short-term bank loans | 32,503,855 | 32,263,794 | 65,912,237 | |||||||||
| Repayments of short-term bank loans | (33,259,759 | ) | (35,667,772 | ) | (35,815,325 | ) | ||||||
| Repayments of long-term bank loans | (302,361 | ) | - | - | ||||||||
| Proceeds from notes payable | 54,348,577 | 22,270,028 | 12,038,765 | |||||||||
| Repayment of notes payable | (58,588,036 | ) | (28,680,591 | ) | - | |||||||
| Warrant exercise | - | - | 434,666 | |||||||||
| Net cash (used in) provided by financing activities | $ | (5,297,724 | ) | $ | (9,814,541 | ) | 42,570,343 | |||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 7,342,456 | (10,320,374 | ) | (5,989,573 | ) | |||||||
| Effect of exchange rate changes on cash | (1,099,881 | ) | 1,237,572 | (1,727,697 | ) | |||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 16,110,496 | 25,193,298 | 32,910,568 | |||||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 22,353,071 | 16,110,496 | 25,193,298 | |||||||||
| SUPPLEMENTARY CASH FLOW INFORMATION | ||||||||||||
| Income taxes paid | 2,056,670 | 1,448,523 | 2,598,846 | |||||||||
| Interest paid | 1,708,766 | 1,625,240 | 1,671,372 | |||||||||
| SUPPLEMENTAL NON-CASH DISCLOSURES: | ||||||||||||
| Construction in progress transferred to Property, Plant and equipment | 74,118,229 | - | - | |||||||||
| Long term and short term Advances to suppliers transferred to Construction in progress | 31,301,325 | 18,848,586 | - | |||||||||
| Purchase of construction in progress by accounts payable | - | 3,756,605 | 4,191,246 | |||||||||
| Advances to suppliers-long term adjusted for other payable | - | 1,065,100 | - | |||||||||
| Settlement of due from JV Company and related parties with notes receivable from related parties | 86,461,386 | 53,565,297 | 43,707,157 | |||||||||
| Settlement of accounts receivables with notes receivable from unrelated parties | 60,543,404 | 5,868,902 | 15,052,339 | |||||||||
| Settlement of other receivables with notes receivable from related parties | 34,015,662 | - | - | |||||||||
| Assignment of notes receivable from unrelated parties to supplier to settle accounts payable | 31,347,383 | 5,868,902 | 14,509,390 | |||||||||
| Assignment of notes receivable from JV Company and related parties to supplier to settle accounts payable | 77,107,835 | 44,812,574 | 44,846,561 | |||||||||
| Assignment of notes receivable from unrelated parties to supplier to settle other payable | 28,636,652 | - | - | |||||||||
| Assignment of notes receivable from JV Company and related parties to supplier to settle other payable | 34,242,433 | - | - | |||||||||
| Settlement of accounts payable with notes payables | 31,039,932 | 31,533,939 | 8,146,783 | |||||||||
| Acquisition of Jinhua An Kao by stock | 20,718,859 | - | - | |||||||||
| Acquisition of SC Autosports by stock | 756,664 | - | - | |||||||||
| Replacement of notes payables with accounts payable | 10,582,651 | - | - | |||||||||
| Amount due from JV Company converted to investment in JV Company | 82,393,493 | - | - | |||||||||
| Reversal of construction in progress and accounts payable | 8,029,198 | - | - | |||||||||
| Construction in progress transferred back to prepayments | - | - | 35,035,762 | |||||||||
| Reclassification of overpaid accounts payable to advances to suppliers | 16,826 | - | - | |||||||||
| Deferred tax changed to other comprehensive income | - | 78,967 | - | |||||||||
8