SEC Filings

FORM 8-K Dated March 28,2018
Author:Aoxin Tianli Date:Dec/03/2018

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


FORM 8-K

 


 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES AND EXCHANGE ACT OF 1934

 

Date of report (date of earliest event reported): March 27, 2018

 

RENMIN TIANLI GROUP, INC.

(Exact name of registrant as specified in its charter)

 


British Virgin Islands   001-34799   N/A

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)  

 

Suite K, 12th Floor, Building A, Jiangjing Mansion

228 Yanjiang Ave., Jiangan District, Wuhan City

Hubei Province, China 430010

(Address of principal executive offices)

 

Registrant’s telephone number, including area code: (+86) 27 8274 0726

 

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:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-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 27, 2018, we issued a press release announcing our financial results for the fourth quarter and year ended December 31, 2017, a copy of which is attached hereto as Exhibit 99.1.

 

The information in this Form 8-K, including Exhibit 99.1 attached hereto, shall not be deemed as “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liability of such Section, nor shall it be deemed incorporated by reference in any filing by us under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

 

99.1    Press release announcing the financial results of Renmin Tianli Group, Inc. for the fourth quarter and year ended December 31, 2017.

 

 

 

 

 

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

       
  RENMIN TIANLI GROUP, INC.
     
  By:   /s/ Luchang Zhou
      Luchang Zhou
      Chief Executive Officer

 

Dated: March 27, 2018

 

 

 

 

Renmin Tianli Group, Inc. Reports Fourth Quarter and Full Year 2017 Financial Results

 

WUHAN CITY, China, Mar. 27, 2018 /PRNewswire/ -- Renmin Tianli Group, Inc. (NASDAQ:ABAC) ("Renmin Tianli" or the "Company"), a producer of breeder hogs, market hogs and black hogs, as well as specialty processed black hog pork products sold through retail outlets and the internet, with headquarters in Wuhan City, Hubei Province, China, today announced its financial results for the three and twelve months ended December 31, 2017.

 

Mr. Luchang Zhou, Chief Executive Officer of Renmin Tianli, commented, “We saw a moderate increase of 1.7% in total revenues for the fourth quarter of 2017 as a result of 31.7% growth in the number of hogs sold from our hog farming business, which was partially offset by a decrease in the blended average selling price per hog as well as a decrease in retail sales volume. Gross and operating margins and net income all improved significantly in the fourth quarter of 2017, as we continued to improve our inventory turnover rate and reduce our employee payroll. Looking ahead, we expect the hog farming industry to continue to face significant uncertainty in market demand and high volatilities in both hog pricing and feed costs.”

 

Fourth Quarter 2017 Financial Results

 

 

    For the Three Months Ended December 31,
($ thousands, except per share data)   2017   2016   % Change
Revenues   $ 7,310     $ 7,186       1.7 %
Hog farming     6,687       6,253       6.9 %
Retail     623       934       -33.2 %
Gross margin     18.3 %     17.7 %     0.7 pp  
Operating margin     8.4 %     4.7 %     3.7 pp  
Net Income (loss)     626       365       71.7 %
Net income from continuing operations     626       371       68.8 %
Gain (loss) from operations of discontinued component           (6 )     NM  
Net income (loss) for common shareholders     626       (382 )     263.9 %

 

Revenues for the fourth quarter of 2017 increased by $0.12 million, or 1.7%, to $7.31 million from $7.19 million for the same period of last year. The increase in overall revenues was due to an increase in revenues from regular hog sales partially offset by a decrease in revenues from our black hog program.

 

Revenues from hog farming, which includes sales of regular breeder hogs, regular market hogs, and black hogs, increased by $0.43 million, or 6.9%, to $6.69 million for the fourth quarter of 2017 from $6.25 million for the same period of last year. The Company sold a total of 36,751 regular breeder hogs, regular market hogs and black hogs with a blended average selling price of $182 per hog during the fourth quarter of 2017, compared to 27,914 hogs sold and a blended average selling price of $224 per hog for the same period of last year.

 

 

    For the Three Months Ended December 31,
    2017   2016
    No. of Hogs Sold  

Average

Price/Hog ($)

 

Sales

($ thousands)

  No. of Hogs Sold  

Average

Price/Hog ($)

 

Sales

($ thousands)

Breeder hogs- regular hogs     4,658     $ 252     $ 1,174       3,861     $ 240     $ 925  
Market hogs- regular hogs     21,524       152       3,274       14,689       200       2,936  
Market hogs- black hogs     10,569       212       2,239       9,364       255       2,392  
Total Hog Farming     36,751       182       6,687       27,914       224       6,253  
                                                 
      Kilogram      

Average

Price/kg ($)

     

Sales

($ thousands)

      Kilogram      

Average

Price/kg ($)

     

Sales

($ thousands)

 
Retail- specialty black hog pork products     127,637     $ 5     $ 623       186,357     $ 5     $ 934  

 

Revenues for the fourth quarter of 2017 from regular breeder hog sales increased by 26.9% to $1.17 million with the number of regular breeder hogs sold increasing by 20.6% to 4,658 hogs and the average selling price of regular breeder hogs increasing by 5.2% to $252 per hog. Revenues for the fourth quarter of 2017 from regular market hog sales increased by 11.5% to $3.27 million as the number of regular market hogs sold increased by 46.5% to 21,524 hogs while the average selling price of regular market hogs decreased by 23.9% to $152 per hog. Revenues for the fourth quarter of 2017 from black market hogs decreased by 6.4% to $2.24 million with the number of black hogs sold increasing by 12.9% to 10,569 hogs and the average selling price of black hogs decreasing by 17.1% to $212 per hog.

 

 

 

 

 

We sold 127,637 kilograms of specialty black hog pork products through retail at approximately $5 per kilogram, generating revenues of $0.62 million for the fourth quarter of 2017. This compared to186,357 kilograms sold at approximately $5 per kilogram and revenues of $0.93 million for the same period of last year. These revenues, combined with the sales of black market hogs, led to $2.86 million in revenues from our black hog program for the fourth quarter of 2017, compared to $3.33 million for the same period of last year.

 

Gross profit

 

Cost of goods sold increased by $0.05 million, or 0.9%, to $5.97 million for the fourth quarter of 2017 from $5.92 million for the same period of last year. Cost of goods sold for hog farming increased by $0.29 million, or 5.4%, to $5.53 million for the fourth quarter of 2017 from $5.25 million for the same period of last year. Cost of goods sold for retail decreased by $0.23 million, or 34.7%, to $0.44 million for the fourth quarter of 2017 from $0.67 million for the same period of last year.

 

Overall gross profit increased by $0.07 million, or 5.6%, to $1.34 million for the fourth quarter of 2017 from $1.27 million for the same period of last year. This increase in our gross profit was primarily related to an increase in gross profit of $0.15 million, or 15.0%, for our hog farming segment and partially offset by a decrease in gross profit of $0.08 million, or 29.5%, for retail. Gross profit for hog farming and retail were $1.15 million and $0.19 million, respectively, for the fourth quarter of 2017, compared to $1.00 million and $0.27 million, respectively, for the same period of last year.

 

Overall gross margin was 18.3%, with gross margins for hog farming and retail of 17.2% and 30.3%, respectively, for the fourth quarter of 2017. This compared to overall gross margin of 17.7%, and gross margins for hog farming and retail of 16.0% and 28.7%, respectively, for the same period of last year.

 

Operating income

 

Total operating expenses, including general and administrative expenses and selling and marketing expenses, decreased by $0.21 million, or 22.1%, to $0.73 million for the fourth quarter of 2017 from $0.93 million for the same period of last year. The decrease was primarily the result of cost control over employee payrolls. Operating income for the fourth quarter of 2017 was $0.61 million, compared to an operating loss of $0.34 million for the same period of last year. Operating margin for the fourth quarter of 2017 was 8.4%, compared to 4.7% for the same period of last year.

 

Net income

 

Net income increased by $0.26 million, or 71.7%, to $0.63 million for the fourth quarter of 2017, compared to $0.36 million for the same period of last year. Our net income from continuing operations, including both hog farming and retail, was $0.63 million for the fourth quarter of 2017, compared to $0.37 million for the same period of last year. Net income for the fourth quarter of 2016 was adversely impacted by the net loss from our discontinued operation, Hang-ao, which was $6,215 for the fourth quarter of 2016. Hang-ao was sold on December 23, 2016.

 

After the deduction for non-controlling interests, net income attributable to common shareholders for the fourth quarter of 2017 was $0.63 million, compared to net loss of $0.38 million for the same period of last year.

 

Twelve Months Ended December 31, 2017 Financial Results

 

    For the Twelve Months Ended December 31,
($ thousands, except per share data)   2017   2016   % Change
Revenues   $ 27,004     $ 33,698       -19.9 %
Hog farming     24,429       31,449       -22.3 %
Retail     2,575       2,248       14.5 %
Gross margin     15.7 %     19.0 %     -3.3 pp  
Operating margin     3.9 %     7.3 %     -3.3 pp  
Net income (Loss)     1,109       (2,138 )     151.9 %
Net income from continuing operations     1,109       941       17.8 %
Gain (loss) from operations and disposal of discontinued component           (3,079 )     NM  
Net income (loss) for common shareholders     1,109       (1,760 )     163.0 %

 

 

 

 

 

Revenues for 2017 decreased by $6.69 million, or 19.9%, to $27.00 million from $33.70 million for 2016. The reduction in revenues reflected the impact from the ongoing weak demand for regular breeder hogs, which also reduced prices for regular hogs and black hogs, and the reduction in the number of black hogs available for sale after the 2016 flood damage.

 

Revenues from hog farming, which includes sales of regular breeder hogs, regular market hogs, and black hogs, decreased by $7.02 million, or 22.3%, to $24.43 million for 2017 from $31.45 million for 2016. The Company sold a total of 134,161 regular breeder hogs, regular market hogs and black hogs with a blended average selling price of $182 per hog during 2017, compared to 127,360 hogs sold and a blended average selling price of $247 per hog for 2016.

 

 

    For the Twelve Months Ended December 31,
    2017   2016
    No. of Hogs Sold  

Average

Price/Hog ($)

  Sales 
($ thousands)
  No. of Hogs Sold  

Average

Price/Hog ($)

  Sales 
($ thousands)
Breeder hogs- regular hogs     14,801     $ 249     $ 3,693       15,957     $ 249     $ 3,967  
Market hogs- regular hogs     76,218       154       11,716       60,808       220       13,394  
Market hogs- black hogs     43,142       209       9,021       50,595       278       14,089  
Total Hog Farming     134,161       182       24,429       127,360       247       31,449  
                                                 
      Kilogram      

Average 

Price/kg ($)

     

Sales

($ thousands)

      Kilograms      

Average

Price/kg ($)

     

Sales

($ thousands)

 
Retail- specialty black hog pork products     523,472     $ 5     $ 2,575       462,499     $ 5     $ 2,248  

 

Revenues for 2017 from regular breeder hog sales decreased by 6.9% to $3.69 million with the number of regular breeder hogs sold decreasing by 7.2% to 14,801 hogs and the average selling price of regular breeder hogs increasing by 0.4% to $249 per hog. Revenues for 2017 from regular market hog sales decreased by 12.5% to $11.72 million as the number of regular market hogs sold increased by 25.3% to 76,218 hogs while the average selling price of regular market hogs decreased by 30.2% to $154 per hog. Revenues for 2017 from black market hogs decreased by 36.0% to $9.02 million with the number of black hogs sold decreasing by 14.7% to 43,142 hogs and the average selling price of black hogs decreasing by 24.9% to $209 per hog.

 

We sold 523,472 kilograms of specialty black hog pork products through retail at approximately $5 per kilogram, generating revenues of $2.58 million for 2017. This compares to 462,499 kilograms sold at approximately $5 per kilogram and revenues of $2.25 million for 2016. These revenues, combined with the sales of black market hogs, led to $11.60 million in revenues from our black hog program for 2017, compared to $16.34 million for 2016.

 

Gross profit

 

Cost of goods sold decreased by $4.54 million, or 16.6%, to $22.76 million for 2017 from $27.29 million for 2016. Cost of goods sold for hog farming decreased by $4.61 million, or 18.0%, to $21.02 million for 2017 from $25.63 million for 2016. The decrease in cost of goods sold for hog farming was primarily due to the lower sales volume of black market hogs in 2017. Meanwhile, to control our production costs during the downtrend cycle, we sold our regular market hogs at younger ages which improved our inventory turnover rate and reduced relevant inventory maintenance cost. Cost of goods sold for retail increased by $0.08 million, or 4.8%, to $1.74 million for 2017 from $1.66 million for 2016. The increase in cost of goods sold for retail was primarily due to increased sales volume.

 

Overall gross profit decreased by $2.16 million, or 33.7%, to $4.25 million for 2017 from $6.41 million for 2016. This decrease in our gross profit reflected a decrease in gross profit for our hog farming segment partially offset by improvement in gross profit for retail. Gross profits for hog farming and retail were $3.41 million and $0.84 million, respectively, for 2017, compared to $5.82 million and $0.59 million, respectively, for 2016.

 

Overall gross margin was 15.7%, with gross margins for hog farming and retail of 14.0% and 32.5%, respectively, for 2017. This compared to overall gross margin of 19.0%, and gross margins for hog farming and retail of 18.5% and 26.2%, respectively, for 2016. The reduction in our gross margin from our hog farming segment was due to the reduced selling prices for regular market hogs and black market hogs during 2017. During 2017, we sold more large regular market hogs to pork dealers than in 2016. However, the reduced sales prices of regular market hogs and increased feed costs for maintaining large market hogs caused our gross margin to decrease. The improvement in gross profit and gross margin from the retail segment was primarily the result of higher sale prices charged to our new customer and an increase in sales volume.

 

 

 

 

 

Operating income

 

Total operating expenses, including general and administrative expenses, and selling and marketing expenses, decreased by $0.77 million, or 19.5%, to $3.19 million for 2017 from $3.96 million for 2016. The decrease was primarily the result of cost control over employee payrolls. Operating income for 2017 was $1.06 million, compared to $2.45 million for 2016. Operating margin for 2017 was 3.9%, compared to 7.3% for 2016.

 

Net income (loss)

 

Net income was $1.11 million for 2017, compared to net loss of $2.14 million for 2016. Our net income from continuing operations, including both hog farming and retail, was $1.1 million for 2017, compared to $0.94 million for 2016. Net income for 2016 was adversely impacted by the net loss from our discontinued operation, Hang-ao, which was $3.08 million for 2016. Hang-ao was sold on December 23, 2016.

 

After the deduction for non-controlling interests, net income attributable to common shareholders for 2017 was $1.11 million, compared to net loss of $1.76 million for 2016.

 

Financial Condition

 

As of December 31, 2017, the Company had cash and cash equivalents of $62.64 million, compared to $54.46 million at the end of 2016. Working capital as of December 31, 2017 was $65.12 million as compared to $57.50 million at December 31, 2016. Net cash provided by operating activities was $5.21 million for 2017, compared to $10.05 million for 2016. Net cash used in investing activities was $0.10 million for 2017, compared to $1.24 million for 2016. Net cash used in financing activities was $0.59 million for 2017, compared to $0.30 million for 2016.

 

About Renmin Tianli Group, Inc.

 

Renmin Tianli Group, Inc. (the "Company"), previously known as Aoxin Tianli Group, Inc., is in the business of breeding, raising and selling breeder and market hogs in China. The Company also sells specialty processed black hog pork products through supermarkets and other retail outlets, as well as the internet.

 

Forward-Looking Statements

 

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulations, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by this cautionary statement and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

 

For more information, please contact:

 

Tony Tian, CFA 
Weitian Group LLC 
Phone: +1-732-910-9692 
Email: tony.tian@weitian-ir.com

 

 

 

 

 

 

RENMIN TIANLI GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 

 

    December 31,   December 31,
    2017   2016
         
ASSETS                
Current Assets:                
Cash and cash equivalents   $ 62,636,484     $ 54,458,026  
Accounts receivable, net     52,276       60,283  
Inventories, net     5,633,005       5,506,085  
Advances to suppliers, net           1,129,477  
Prepaid expenses     3,038       112,676  
Other receivables, net     308,454       293,377  
Total Current Assets     68,633,257       61,559,924  
                 
Long-term prepaid expenses, net     1,246,726       1,196,989  
Plant and equipment, net     20,033,880       21,113,840  
Biological assets, net     1,821,780       1,901,744  
Intangible assets, net     2,324,787       2,403,637  
                 
Total Assets   $ 94,060,430     $ 88,176,134  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
Current Liabilities:                
Short-term loans   $ 2,142,573     $ 2,591,793  
Accounts payable and accrued payables     3,956       5,327  
Other payables     1,370,305       1,465,164  
Total Current Liabilities     3,516,834       4,062,284  
                 
Commitments and contingent liabilities                
                 
Stockholders' Equity:                
Common stock ($0.004 par value, 25,000,000 shares authorized, 9,983,745 shares issued and 7,983,745 shares outstanding as of December 31, 2017 and and 7,988,245 shares issued and outstanding as of December 31, 2016)     31,934       31,952  
Additional paid in capital     61,395,579       61,395,561  
Statutory surplus reserves     2,416,647       2,416,647  
Retained earnings     27,944,383       26,835,585  
Accumulated other comprehensive income     (1,244,947 )     (6,565,895 )
Total Stockholders' Equity     90,543,596       84,113,850  
Total Liabilities and Stockholders' Equity   $ 94,060,430     $ 88,176,134  

 

See accompanying notes to consolidated financial statements

 

 

F- 2

 

 

 

RENMIN TIANLI GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

 

    For the Years Ended December 31,
    2017   2016
         
         
R evenues   $ 27,003,803     $ 33,697,680  
Cost of goods sold     22,755,339       27,290,471  
Gross profit     4,248,464       6,407,209  
                 
Operating expenses:                
General and administrative expenses     2,870,157       3,549,546  
Selling expenses     315,647       409,614  
Total operating expenses     3,185,804       3,959,160  
                 
Income from operations     1,062,660       2,448,049  
                 
Other income (expense):                
Interest income, net     41,843       139,066  
Subsidy income           22,524  
Flood damange           (1,670,820 )
Other income, net     4,295       2,258  
Total other income (expense)     46,138       (1,506,972 )
                 
Income before income taxes     1,108,798       941,077  
                 
Income taxes            
Net income from continuing operations     1,108,798       941,077  
                 
Discontinued operations:                
Gain (loss) from operations of discontinued component, net of taxes           (3,149,566 )
Gain from disposal of discontinued component, net of taxes           70,820  
                 
Net income (Loss)     1,108,798       (2,137,669 )
Net loss attributable to noncontrolling interest           377,948  
Net income (loss) attributable to Renmin Tianli Group Inc. common stockholders     1,108,798       (1,759,721 )
                 
Other comprehensive income (loss):                
Unrealized foreign currency translation adjustment     5,320,948       (6,352,105 )
                 
Comprehensive income (loss)   $ 6,429,746     $ (8,111,826 )
                 
Earnings (losses) per share attributable to Aoxin Tianli Group Inc. common stockholders - basic and diluted:                 
Weighted-average shares outstanding, basic and diluted     7,984,682       8,061,349  
                 
Continuing operations - Basic & diluted   $ 0.14     $ 0.12  
Discontinued operations - Basic & diluted   $     $ (0.38 )

 

See accompanying notes to consolidated financial statements

 

 

F- 3

 

 

 

RENMIN TIANLI GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS

 

    For the Years Ended December 31,
    2017   2016
         
         
CASH FLOWS FROM OPERATING ACTIVITIES                
Net income from continuing operations   $ 1,108,798     $ 941,077  
Adjustments to reconcile net income to net cash                
 provided by operating activities:                
Depreciation and amortization     2,965,564       2,898,610  
Amortization of prepaid expenses     134,396       242,304  
Amortization of long-term prepaid expenses     105,097       106,818  
Stock-based compensation     6,023       313,438  
Fire damage           22,108  
Flood damange           1,670,820  
Destructed inventories from floods           662,792  
Destructed biological assets from floods           163,280  
Loss from disposal of biological assets     70,714       473,681  
Changes in operating assets and liabilities:                
A ccounts receivable     11,416       222,995  
Inventories     824,442       3,972,673  
Prepaid expenses     (29,043 )     (217,380 )
Other receivables     3,258       (1,663 )
Long-term prepaid expenses     (80,403 )     (718 )
Accounts payable and accrued payables           (24,958 )
O ther payables     92,213       (1,398,591 )
Total adjustments     4,103,677       9,106,209  
Net cash provided by operating activities from continuing operations     5,212,475       10,047,286  
Net cash provided by (used in) operating activities from discontinued operations            
Net cash provided by operating activities         5,212,475       10,047,286  
                 
CASH FLOWS FROM INVESTING ACTIVITIES                
Purchase of biological assets     (103,676 )     (105,374 )
Purchase of plant and equipment           (2,960,399 )
Net cash used in investing activities from continuing operations     (103,676 )     (3,065,773 )
Net cash provided by investing activities from discontinued operations           1,823,515  
Net cash provided by (used in) investing activities     (103,676 )     (1,242,258 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES                
Restricted cash received from (deposited to) banks           9,032,064  
Proceeds from short-term loans     2,073,521       2,709,619  
Repayment of short-term loans     (2,665,956 )     (12,042,752 )
Net cash used in financing activities from continuing operations         (592,435 )     (301,069 )
Net cash provided by financing activities  from discontinued operations            
Net cash used in financing activities           (592,435 )     (301,069 )
                 
EFFECT OF EXCHANGE RATE CHANGES ON CASH     3,662,094       (3,702,830 )
                 
NET INCREASE IN CASH     8,178,458       4,801,129  
                 
CASH, BEGINNING OF PERIOD     54,458,026       49,656,897  
                 
CASH, END OF PERIOD   $ 62,636,484     $ 54,458,026  
                 
SUPPLEMENTAL DISCLOSURES:                
Cash paid during the period for:                
Interest paid   $ 134,079     $ 82,313  
Income tax paid   $     $  
                 
NON-CASH TRANSACTIONS OF INVESTING AND FINANCING ACTIVITIES                
Shares issued to employees   $     $ (2,230,110 )
Inventories received from prior year prepayments   $ 1,161,796     $ 6,464,135  
Inventories transferred to biological assets   $ 549,532     $ 1,577,504  
Cancelation of shares related to Hang-ao acquisition   $     $ (2,229,063 )
Cancelation of shares related to employees' compensation   $ 18     $ 361,080  
                 

 

See accompanying notes to consolidated financial statements

 

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