ZHENGZHOU, China, Nov. 15, 2011 /PRNewswire-Asia-FirstCall/ --
China Valves Technology, Inc. (NASDAQ: CVVT) ("China Valves" or the
"Company"), a leading Chinese metal valve manufacturer, today
announced its financial results for the three and nine months ended
September 30, 2011. The results are
unaudited and subject to change.
Highlights for the Three Months Ended September 30, 2011
- Net revenue reached $61.8
million, up 11.7% from $55.3
million for the same period last year
- Gross profit was $24.4 million,
compared to $25.1 million for the
same period last year
- Net income was $11.2 million, or
$0.31 per fully diluted share,
compared to $15.9 million, or
$0.45 per fully diluted share, for
the same period of 2010
"For the three months ended September 30,
2011, we continued to experience a slowdown in sales growth
due to a general slowdown of China's economy which delayed orders and
pushed back delivery schedules. The completion of large projects
during the quarter and our expanded sales to the petrochemical and
oil and gas sectors were partially offset by a decrease in sales to
the water supply sector, mainly due to unfavorable development of
investments in the sector because of the tight liquidity in
China during the period. Our gross
margin continued to narrow as increased raw material and labor
costs and higher operating expenses strained our operating
performance," said Mr. Jianbao Wang, Chief Executive Officer of
China Valves. "While we are pleased with the growing amount of
larger orders, of which the success of our 24-way rotary valves
warrants particular mention, the more complex projects have
lengthened collection times, increasing our account receivables
balance. In light of China's
tighter credit environment, we continue to monitor our bidding and
collection practices in order to maintain a healthy operating cash
flow."
Unaudited Results for the Three
Months Ended September 30, 2011
For the quarter ended September 30,
2011, the Company's total revenue was $61.8 million, up 11.7% from $55.3 million in the same quarter last year. The
increase was primarily attributed to strong demand for check valves
and gate valves from the power generation and petrochemical and oil
sectors. For the three months ended September 30, 2011, sales for the above mentioned
valve products increased 21.8% and 14.8%, respectively, compared to
the same period in 2010.
Gross profit for the quarter was $24.4
million, compared to $25.1
million for the same period of 2010. Gross margin was 39.5%
for the quarter compared to 45.4% for the same period in 2010 due
to significantly higher raw material costs, such as cost of casting
and forging steel, steel bars, shafts, bolts, nuts and other raw
materials, as a result of inflation in China. Labor cost for the three months ended
September 30, 2011 increased more
than 10% compared to the same period in 2010.
Selling expenses were $5.1 million
compared to $2.4 million in the same
quarter 2010, an increase of $2.7
million, or approximately 108.1%. As overall sales
increased, sales tax, sales commissions, marketing and promotion
expenses, and freight charges have increased as well. As a
percentage of sales, total selling expenses increased to 8.2% for
the three months ended September 30,
2011 from 4.4% for the same period in 2010.
General and administrative expenses were $5.2 million compared to $3.0 million in the same period of 2010. The
increase was mainly due to higher bad debt expenses and labor costs
in the period.
Income tax expense was $3.3
million, compared to $4.1
million for the same period of 2010. The decrease was in
line with decrease in income from operations.
Net income for the three months ended September 30, 2011 was $11.2 million, compared to $15.9 million for the corresponding quarter of
2010. Diluted earnings per share were $0.31, compared to diluted earnings per share of
$0.45 for the same period of
2010.
Unaudited Results for the Nine
Months Ended September 30,
2011
Revenue for the first nine months of 2011 was $161.4 million, up 22.9% from revenue of
$131.4 million for the first nine
months of 2010. The increase was mainly attributed to Shanghai
Pudong Hanwei Valve Co., Ltd. ("Hanwei Valve"), a subsidiary
acquired on April 8, 2010, operated
fully during the nine months ended September
30, 2011, compared to only 175 days of operation in the same
period of 2010. This results in 98 more days of operation in the
nine months ended September 30, 2011
and an increase in sales of $6.5
million. Meanwhile, China Valve Technology (Changsha) Valve Co., Ltd. ("Changsha Valve"),
acquired on February 3, 2010, also
operated fully during the nine months ended September 30, 2011, resulting in an increase of
sales of $2.7 million. The
acquisitions of Hanwei Valve and Changsha Valve attributed 5.7%, or
approximately 9.3 million in growth of sales for the nine months
ended September 30, 2011 compared to
the same period in 2010. Organic growth in sales for the nine
months ended September 30, 2011 was
15.8% from the same period in 2010. Strong demand for products in
the petrochemical and oil sector, and the power supply sector also
contributed to the growth in sales. Sales in both sectors increased
by 36.6 % and 25.8%, respectively, for the nine months ended
September 30, 2011 from the same
period in 2010. Sales of ball valves, gate valves and butterfly
valves, for the nine months ended September
30, 2011 increased by 39.7%, 33.6%, and 15.2%, respectively,
from the same period in 2010.
Gross profit was $65.6 million, up
5.9% from gross profit of $62.0
million for the nine months of 2010. Gross margin was 40.7%,
compared to 47.2% for the first nine months of 2010. The decrease
in gross margin was mainly because of Hanwei Valve, which
contributed a lower gross profit margin of 33.8% due to product
mix. In addition, higher raw material and labor costs and a higher
share of low-priced valves in its product mix during the quarter
contributed to the decrease in gross profit margin.
Net income was $29.6 million, or
$0.83 per diluted share, compared to
$36.8 million, or $1.06 per diluted share, for the same period a
year ago.
Financial Condition
As of September 30, 2011, China
Valves had $28.1 million in cash and
cash equivalents, $130.7 million in
working capital and a current ratio of 3.2:1. Current accounts
receivable were $124.5 million as of
September 30, 2011 compared to
$84.3 million as of December 31, 2010, while long term retainage was
$5.7 million as of September 30, 2011 compared to $4.8 million as of December 31, 2010. Days Sales Outstanding for the
nine months ended September 30, 2011
were 175 compared to 111 for the corresponding period last
year.
The Company had no long-term debt on its balance sheet as of
September 30, 2011. Shareholders'
equity stood at $234.7 million,
compared to $188.6 million as of
December 31, 2010.
Net cash used in operating activities was $5.3 million in the nine months ended
September 30, 2011, compared to net
cash provided by operating activities of $6.6 million in the same period in 2010. The
decrease was primarily attributable to the increase in accounts
receivable and inventory.
Net cash used in investing activities decreased to $3.3 million in the nine months ended
September 30, 2011, compared to
$32.9 million primarily for the
acquisitions of new subsidiaries in the corresponding period in
2010. The net cash used was for the purchase of equipment,
intangible assets and cash deposit due to notes payable and sales
covenant.
Net cash provided by financing activities was $10.1 million in the nine months ended
September 30, 2011, compared to net
cash provided by financing activities of $20.0 million in the same period in 2010 due to
lower net proceeds from the January
2011 registered direct offering compared to the January 2010 registered direct offering. As of
September 30, 2011, the Company had
$4.7 million short-term bank loans
outstanding under its credit facilities and lines of credit.
Subsequent Events
- China Valves has engaged BDO China Shu Lun Pan CPAs LLP ("BDO
China"), the Shanghai-based member
firm of the BDO International network, as its new independent
auditor, replacing Frazer Frost LLP. The change was effective as of
October 29, 2011. Frazer Frost LLP
will audit the financial statements for the nine-month transition
period ended September 30, 2011, and
BDO China will take over starting from the quarter ended
December 31, 2011.
- In October 2011, Hanwei Valve
successfully conducted system tests for and completed delivery of
the RV III-1200 24-way rotary valve for a purchase order from
Yangzi Petrochemical for the separation of Metaxylene, or MX, and
Paraxylene, or PX, the original ingredients for Purified
Terephthalic Acid, or PTA, commonly used in polyester
production.
Business Outlook
The Company focuses on improving profitability through the
consolidation of sales and raw material procurement functions
between its different subsidiaries and by emphasizing technological
expertise to win larger projects. While the Company expects the
power generation and petrochemical and oil sectors to remain the
largest contributors to sales, a slowdown of China's economy in combination with a tighter
credit policy may delay orders and lengthen the sales cycle.
"Looking forward to 2012, we expect to further strengthen the
cooperation between our operating subsidiaries to take advantage of
synergies in the sales network and improve production efficiency.
Improving our research and development capabilities are of
particular importance as we strive to develop our product
offerings, expand our project scopes and strengthen our competitive
advantages against both domestic and international valve players in
niche markets. We continue to monitor our high account receivables,
which we believe are a systemic issue in our industry given the
current market conditions, and work to further improve our
collection practices," said Mr. Wang. "Due to the current uncertain
macro-economic outlook and persistent inflation, we maintain a
conservative stance regarding our growth and margin development in
the current fiscal year. We expect to provide more detailed
guidance in terms of our fiscal year 2012 performance as we have
more visibility."
Conference Call
The Company will host a conference call at 8:30 a.m. Eastern Time on Tuesday November 15, 2011 to discuss its
financial results for the three and nine months ended September 30, 2011. To participate in this live
conference call, callers from United
States should call 186 6242 1388. Callers from China should call 400 698 8166. Callers from
other countries should call +61 2 8823 6760. The Conference Pass
Code is 27091374.
If you are unable to participate in the call at this time, a
replay will be available for seven days starting on Tuesday November 15, 2011 at 11:00 a.m. Eastern Time. To access the replay,
callers from United States should
call 186 6214 5335. Callers from China should call 400 692 0026. Callers from
other countries should call +61 2 8235 5000. The Conference Pass
Code is 27091374.
About China Valves Technology, Inc.
China Valves Technology, Inc. through its subsidiaries,
Zhengzhou City ZD Valve Co, Ltd., Henan Kaifeng High Pressure Valve
Co., Ltd., Taizhou Taide Valve Co., Ltd., Yangzhou Rock Valve Lock
Technology Co., Ltd., China Valve Technology (Changsha) Valve Co., Ltd. and Shanghai Pudong
Hanwei Valve Co., Ltd., is engaged in the development,
manufacturing and sale of high-quality metal valves for the
electricity, petroleum, chemical, water, gas and metallurgy
industries. The Company has one of the best known brand names in
China's valve industry, and its
history can be traced back to 1959 when it was formed as a
state-owned enterprise. The Company develops valve products through
extensive research and development and owns a number of patents. It
enjoys significant domestic market share and exports to
Asia and Europe. For more information, visit
http://www.cvalve.com
Safe Harbor Statements
Any statements set forth above that are not historical facts
are forward-looking statements that involve risks and uncertainties
that could cause actual results to differ materially from those in
the forward-looking statements. Such factors include, but are not
limited to, the Company's ability to develop and
market new products, the ability to access capital for expansion,
the ability to acquire other companies, changes from anticipated
levels of sales, changes in national or regional economic and
competitive conditions, changes in relationships with customers,
changes in principal product profits and other factors detailed
from time to time in the Company's filings with the
United States Securities and Exchange Commission and other
regulatory authorities. The Company undertakes no obligation to
update or revise to the public any forward-looking statements,
whether as a result of new information, future events or otherwise.
This press release was developed by China Valves, and is intended
solely for informational purposes and is not to be construed as an
offer or solicitation of an offer to buy or sell the
Company's stock. This press release is based upon
information available to the public, as well as other information
from sources which management believes to be reliable, but it is
not guaranteed by China Valves to be accurate, nor does China
Valves purport it to be complete. Opinions expressed herein are
those of management as of the date of publication and are subject
to change without notice.
China Valves Technology, Inc.
Gang Wei, CFO
Tel: +86-371-8601-8777
E-mail: ir@cvalve.com
http://www.cvalve.com
CCG Investor Relations
Linda Salo, Account Manager
Tel: +1 646-922-0894
E-mail: linda.salo@ccgir.com
Crocker Coulson, President
Tel: +1 646-213-1915
E-mail: crocker.coulson@ccgir.com
http://www.ccgirasia.com
Financial Tables to Follow:
CHINA VALVES
TECHNOLOGY INC. AND SUBSIDIARIES
|
|
UNAUDITED
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
|
|
|
|
|
September 30,
2011
|
|
September 30,
2010
|
|
|
|
|
|
|
|
|
SALES
|
$
|
161,296,932
|
$
|
131,366,951
|
|
SALES - RELATED
PARTIES
|
|
97,643
|
|
-
|
|
|
Total sales
|
|
161,394,575
|
|
131,366,951
|
|
|
|
|
|
|
|
|
COST OF GOODS SOLD
|
|
95,752,849
|
|
69,394,665
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
65,641,726
|
|
61,972,286
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
Selling
|
|
10,133,474
|
|
6,650,841
|
|
|
General and
administrative
|
|
17,518,864
|
|
9,085,894
|
|
|
Research and
development
|
|
286,204
|
|
181,861
|
|
|
Total operating
expenses
|
|
27,938,542
|
|
15,918,596
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
37,703,184
|
|
46,053,690
|
|
|
|
|
|
|
|
|
OTHER (INCOME)
EXPENSE:
|
|
|
|
|
|
|
Other income, net
|
|
(522,015)
|
|
(490,768)
|
|
|
Gain from acquisition
|
|
-
|
|
(1,016,198)
|
|
|
Interest and finance expense,
net
|
|
207,926
|
|
82,289
|
|
|
Change in fair value of warrant
liabilities
|
|
(990,031)
|
|
262,633
|
|
|
Total other income,
net
|
|
(1,304,120)
|
|
(1,162,044)
|
|
|
|
|
|
|
|
|
INCOME BEFORE PROVISION FOR
INCOME TAXES
|
|
39,007,304
|
|
47,215,734
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES
|
|
9,448,956
|
|
10,426,364
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
29,558,348
|
|
36,789,370
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
INCOME:
|
|
|
|
|
|
|
Foreign currency translation
gain
|
|
6,454,751
|
|
3,597,068
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME
|
$
|
36,013,099
|
$
|
40,386,438
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
SHARE:
|
|
|
|
|
|
|
Weighted average number of
shares
|
|
35,654,398
|
|
34,513,314
|
|
|
Earnings per share
|
$
|
0.83
|
$
|
1.07
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER
SHARE:
|
|
|
|
|
|
|
Weighted average number of
shares
|
|
35,677,873
|
|
34,727,623
|
|
|
Earnings per share
|
$
|
0.83
|
$
|
1.06
|
|
|
|
|
|
|
|
CHINA VALVES
TECHNOLOGY INC. AND SUBSIDIARIES
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
September 30,
2011
|
|
December 31,
2010
|
|
|
|
(Unaudited)
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
28,076,692
|
$
|
25,820,607
|
|
Restricted cash
|
|
2,344,276
|
|
1,164,598
|
|
Notes receivable
|
|
1,465,369
|
|
2,815,939
|
|
Accounts receivable, net of allowance for doubtful accounts of $4,052,398 and $998,739
|
|
|
|
|
|
as of September 30, 2011 and December 31, 2010, respectively
|
|
124,514,274
|
|
84,147,126
|
|
Accounts receivable - related party
|
|
-
|
|
200,185
|
|
Other receivables, net
|
|
5,106,572
|
|
3,176,648
|
|
Other receivables -related parties
|
|
-
|
|
152,179
|
|
Inventories, net of allowance of $2,394,319 and $1,148,663
|
|
|
|
|
|
as of September 30, 2011 and December 31, 2010, respectively.
|
|
23,868,885
|
|
16,251,938
|
|
Advances on inventory purchases
|
|
2,421,390
|
|
1,094,670
|
|
Advances on inventory purchases - related party
|
|
1,552,123
|
|
917,202
|
|
Prepaid expenses and other current assets
|
|
79,295
|
|
359,353
|
|
Total current assets
|
|
189,428,876
|
|
136,100,445
|
|
|
|
|
|
|
|
PLANT AND EQUIPMENT, net
|
|
40,192,636
|
|
40,773,562
|
|
|
|
|
|
|
|
OTHER ASSETS:
|
|
|
|
|
|
Accounts receivable - retainage, long term
|
|
5,724,024
|
|
4,751,605
|
|
Goodwill
|
|
33,976,186
|
|
32,955,163
|
|
Intangibles, net of accumulated amortization
|
|
22,914,008
|
|
23,027,880
|
|
Other investments, cost
|
|
815,066
|
|
790,572
|
|
Other non-current assets
|
|
395,514
|
|
108,435
|
|
Total other assets
|
|
63,824,798
|
|
61,633,655
|
|
|
|
|
|
|
|
Total assets
|
$
|
293,446,310
|
$
|
238,507,662
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Accounts payable - trade
|
$
|
24,575,461
|
$
|
19,530,341
|
|
Accounts payable - related parties
|
|
786,471
|
|
2,382,906
|
|
Short-term loans
|
|
6,513,810
|
|
5,648,794
|
|
Other payables
|
|
5,287,964
|
|
3,405,201
|
|
Other payables - related parties
|
|
94,226
|
|
1,899,627
|
|
Notes payable
|
|
469,200
|
|
-
|
|
Accrued liabilities
|
|
4,091,998
|
|
2,825,560
|
|
Customer deposits
|
|
11,139,936
|
|
6,499,833
|
|
Taxes payable
|
|
5,791,440
|
|
6,828,118
|
|
Warrant liabilities
|
|
-
|
|
880,565
|
|
Total current liabilities
|
|
58,750,506
|
|
49,900,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY:
|
|
|
|
|
|
Common stock, $0.001 par value; 300,000,000 shares authorized;
|
|
|
|
|
|
35,869,654 and 34,664,654 shares issued and outstanding
|
|
|
|
|
|
as of September 30, 2011 and December 31, 2010, respectively
|
|
35,869
|
|
34,664
|
|
Additional paid-in capital
|
|
106,508,099
|
|
96,433,316
|
|
Statutory reserves
|
|
11,224,490
|
|
10,046,713
|
|
Retained earnings
|
|
98,242,189
|
|
69,861,618
|
|
Accumulated other comprehensive income
|
|
18,685,157
|
|
12,230,406
|
|
Total shareholders' equity
|
|
234,695,804
|
|
188,606,717
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
$
|
293,446,310
|
$
|
238,507,662
|
|
|
|
|
|
|
CHINA VALVES
TECHNOLOGY INC. AND SUBSIDIARIES
|
|
UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
Nine months ended
|
|
|
|
|
|
|
|
September 30,
2011
|
|
September 30,
2010
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
Net income
|
$
|
29,558,348
|
$
|
36,789,370
|
|
|
Adjustments to reconcile net
income to cash (used in)
|
|
|
|
|
|
|
provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
4,236,618
|
|
3,107,769
|
|
|
|
|
Bad debt provision
(recovery)
|
|
2,974,399
|
|
187,768
|
|
|
|
|
Gain on acquisition
|
|
-
|
|
(1,016,198)
|
|
|
|
|
Gain (loss) on disposal of fixed
assets
|
|
173,286
|
|
(1,564)
|
|
|
|
|
Impairment of
equipments
|
|
110,096
|
|
-
|
|
|
|
|
Stock compensation
|
|
793,972
|
|
44,095
|
|
|
|
|
Change in fair value of warrant
liabilities
|
|
(990,031)
|
|
262,633
|
|
|
|
|
Inventory allowance
|
|
1,262,246
|
|
|
|
|
Change in operating assets and
liabilities:
|
|
|
|
|
|
|
|
Notes receivable
|
|
1,414,831
|
|
(224,086)
|
|
|
|
Accounts receivable-trade and
retainage, short term
|
|
(40,130,902)
|
|
(40,886,982)
|
|
|
|
Accounts receivable - related
parties
|
|
209,248
|
|
-
|
|
|
|
Other receivables and prepaid
expenses
|
|
(1,535,314)
|
|
(230,878)
|
|
|
|
Other receivables - related
parties
|
|
158,451
|
|
(147,100)
|
|
|
|
Inventories, net
|
|
(8,261,967)
|
|
(2,054,795)
|
|
|
|
Advance on inventory
purchases
|
|
(1,272,140)
|
|
(429,052)
|
|
|
|
Advances on inventory
purchases-related party
|
|
(610,203)
|
|
14,702
|
|
|
|
Long-term receivable
|
|
-
|
|
-
|
|
|
|
Accounts receivable - retainage,
long term
|
|
(812,013)
|
|
(4,092,665)
|
|
|
|
Accounts
payable-trade
|
|
4,399,697
|
|
6,057,959
|
|
|
|
Accounts payable-trade- related
parties
|
|
(1,177,131)
|
|
-
|
|
|
|
Other payables
|
|
1,755,247
|
|
756,683
|
|
|
|
Other payables - related
parties
|
|
(1,852,908)
|
|
(29,002)
|
|
|
|
Accrued liabilities
|
|
1,194,301
|
|
1,030,155
|
|
|
|
Customer deposits
|
|
4,367,772
|
|
3,795,995
|
|
|
|
Customer deposits - related
party
|
|
-
|
|
147,100
|
|
|
|
Taxes payable
|
|
(1,228,560)
|
|
3,497,989
|
|
|
|
|
|
Net cash (used in) provided by
operating activities
|
|
(5,262,657)
|
|
6,579,896
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
Restricted cash due to escrow
covenant
|
|
-
|
|
105,616
|
|
|
Restricted cash due to notes
payable
|
|
(461,700)
|
|
735,500
|
|
|
Restricted cash due to sales
covenant
|
|
(663,616)
|
|
(1,089,637)
|
|
|
Acquisition of intangible
assets
|
|
-
|
|
(220,650)
|
|
|
Advances on equipment
purchases
|
|
(321,574)
|
|
(617,694)
|
|
|
Purchases of equipment and
intangible assets
|
|
(1,860,092)
|
|
(29,407,280)
|
|
|
Cash paid for
acquisitions
|
|
-
|
|
(2,439,388)
|
|
|
Cash proceeds from sale of
equipment
|
|
17,368
|
|
-
|
|
|
Advance on lease
|
|
(17,100)
|
|
4,910
|
|
|
Investment deposit
|
|
-
|
|
-
|
|
|
|
|
|
Net cash (used in) investing
activities
|
|
(3,306,714)
|
|
(32,928,623)
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
Repayments of short-term notes
payable
|
|
-
|
|
(735,500)
|
|
|
Proceeds from short-term
loan
|
|
923,400
|
|
1,891,434
|
|
|
Repayments of short term
loan
|
|
(244,425)
|
|
(4,888,065)
|
|
|
Repayments of short term loans -
related parties
|
|
-
|
|
(99,971)
|
|
|
Proceeds from private placement
financing
|
|
9,391,482
|
|
23,881,858
|
|
|
|
|
|
Net cash provided by (used in)
financing activities
|
|
10,070,457
|
|
20,049,756
|
|
|
|
|
|
|
|
|
|
|
|
EFFECTS OF EXCHANGE RATE CHANGES
ON CASH
|
|
754,999
|
|
201,209
|
|
|
|
|
|
|
|
|
|
|
|
INCREASE (DECREASE) IN
CASH
|
|
2,256,085
|
|
(6,097,762)
|
|
|
|
|
|
|
|
|
|
|
|
CASH and CASH EQUIVALENTS,
beginning of period
|
|
25,820,607
|
|
14,485,408
|
|
|
|
|
|
|
|
|
|
|
|
CASH and CASH EQUIVALENTS,
ending of period
|
$
|
28,076,692
|
$
|
8,387,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF CASH
FLOW INFORMATION:
|
|
|
|
|
|
|
Cash paid for
interest
|
$
|
261,184
|
$
|
169,710
|
|
|
Cash paid for income
taxes
|
$
|
9,308,801
|
$
|
8,180,186
|
|
|
|
|
|
|
|
|
|
|
SOURCE China Valves Technology, Inc.