INNER MONGOLIA, China,
Dec. 2, 2013 /PRNewswire/ -- China
Carbon Graphite Group, Inc. (CHGI) ("China
Carbon" or the "Company"), the largest wholesale supplier of
fine-grain and high-purity graphite in China and one of
the nation's top manufacturers of carbon and graphite
products, today announced its financial results for the third
quarter ended September 30, 2013.
Mr. Donghai Yu, Chief Executive Officer of China
Carbon, commented, "Plagued by the stubborn crisis of
China's steel industry from which our major profits are generated,
we experienced continuous challenges in the third quarter resulting
in a 58% decrease in our revenues over the same period of last
year. To tackle these challenges, our management has been making
necessary initiatives including adjusting our product portfolio and
positioning strategies. We hope these efforts can help us better
mitigate the risks and the negative impacts from the downturn of
overall economy."
Third Quarter 2013 Financial Results
|
Three Months Ended
September 30
|
|
2013
|
|
2012
|
|
Sales
|
|
% of
Total
|
|
Sales
|
|
% of
Total
|
|
Graphite
Electrodes
|
$361,069
|
|
13.3%
|
|
$788,769
|
|
12.1%
|
|
Fine Grain
Graphite
|
935,145
|
|
34.4%
|
|
2,666,957
|
|
41.1%
|
|
High Purity
Graphite
|
1,188,145
|
|
43.6%
|
|
2,763,836
|
|
42.6%
|
|
Others
|
237,364
|
|
8.7%
|
|
271,571
|
|
4.2%
|
|
Total
|
$2,721,723
|
|
100.0%
|
|
$6,491,133
|
|
100.0%
|
Sales: For the three months ended 30, 2013, sales
decreased by $3.77 million, or 58.1%,
to $2.72 million from $6.49 million for the third quarter of 2012. The
decrease in sales was mainly due to industry-wide demand weakness
for our products as a result of continued struggles of steel
manufacturers. In particular, demand for our fine grain graphite
and high purity graphite products remained extremely low during the
third quarter with sales decreasing 64.9% and 57.0% to $0.94 million and $1.19
million, respectively. Sales of graphite electrodes
decreased 54.2% to $0.36 million
while sales of semi-processed and other types of products declined
12.6% to $0.24 million.
Gross Income (Loss): Gross profit for the third quarter
of 2013 was $0.45 million, compared
to $1.77 million for the same period
of last year. Gross margin decreased to 16.6% for the third quarter
of 2013 from 27.3% for the same period of last year. The decrease
in gross margin was mainly due to increased percentage of low
margin product sales, increased depreciation allocated to the cost
of goods sold due to the transfer of construction in progress to
property and equipment since the end of 2012, and increased fixed
cost allocation as a result of decreased production volume.
Operating Income (Loss):
Selling, General and Administrative Expenses:
Selling expenses decreased by 87.2% to $0.01 million for the third quarter of 2013 from
$0.06 million for the same period of
last year. The decrease was mainly due to decreased sales
commission and lower shipping and handling expenses during the
three months ended September 30, 2013
as compared to the three months ended September 30, 2012.
General and administrative expenses increased by $1.66 million, or 157.1%, to $2.72 million for the third quarter of 2013 from
$1.06 million for the same period of
last year. The increase in general and administrative expenses was
mainly attributable o increase in bad debt expenses and partially
offset by decrease in stock-based compensation expenses for
consulting services.
Depreciation and Amortization Expenses:
Depreciation and amortization expenses increased $0.13 million, or 234.2%, to $0.19 million for the third quarter of 2013 from
$0.06 million for the same period of
last year. The increase in depreciation and amortization expenses
was due to additional fixed assets placed in service.
Impairment of Property and Equipment:
The Company also recorded impairment of property and equipment
of $3.54 million for the third
quarter of 2013.
Overall, operating expenses totaled $6.45
million for the third quarter of 2013, compared to
$1.18 million for the same period of
2012, an increase of $5.28 million,
or 448.4%. As a result of the factors described above, operating
loss was ($6.00) million for the
third quarter of 2013, compared to operating income of $0.59 million for the same period of last year.
Operating loss margin was (220.5%) for the third quarter of 3013,
compared to operating profit margin of 9.1% for the same period of
last year.
Net Income (Loss): Net loss available to common
stockholders was ($6.89) million, or
($0.26) per diluted share, for the
third quarter of 2013, compared to ($0.80)
million, or ($0.03) per
diluted share, for same period of last year.
Nine Months Ended September 30,
2013 Financial Results
|
Nine Months Ended
September 30
|
|
2013
|
|
2012
|
|
Sales
|
|
% of
Total
|
|
Sales
|
|
% of
Total
|
|
Graphite
Electrodes
|
$2,021,971
|
|
23.8%
|
|
$3,434,285
|
|
12.1%
|
|
Fine Grain
Graphite
|
3,247,054
|
|
38.2%
|
|
12,443,155
|
|
43.8%
|
|
High Purity
Graphite
|
2,693,240
|
|
31.7%
|
|
12,024,784
|
|
42.3%
|
|
Others
|
534,628
|
|
6.3%
|
|
527,662
|
|
1.8%
|
|
Total
|
$8,496,893
|
|
100.0%
|
|
$28,429,886
|
|
100.0%
|
Sales: For the nine months ended September 30, 2013, sales decreased by
$19.93 million, or 70.1%, to
$8.50 million from $28.43 million for same period of last year. The
decrease in sales was mainly due to industry-wide demand weakness
for our products as a result of continued struggles of steel
manufacturers. Demand for our fine grain graphite and high purity
graphite products was particularly weak for the nine months ended
September 30, 2013 with sales
decreasing 73.9% and 77.6% to $3.25
million and $2.69 million,
respectively. Sales of graphite electrodes also decreased by 41.1%
to $2.02 million. Sales of
semi-processed and other types of products grew 1.3% to
$0.53 million.
Gross Income (Loss): Gross loss for the nine months ended
September 30, 2013 was ($4.71) million, compared to gross profit of
$7.58 million for the same period of
last year. Gross loss margin was (55.4%) for the nine months ended
September 30, 2013, compared to 26.7%
for the same period of last year. The decrease in gross margin was
mainly due to inventory impairment cost of $3.27 million for the third quarter of 2013,
increased percentage of low margin product sales, increased
depreciation allocated to the cost of goods sold due to the
transfer of construction in progress to property and equipment
since the end of 2012, and increased fixed cost allocation as a
result of decreased production volume.
Operating Income (Loss):
Selling, General and Administrative Expenses:
Selling expenses decreased by $0.09
million, or 67.2%, to $0.05
million for the nine months ended September 30, 2013 from $0.14 million for the same period of last year.
The decrease was mainly due to decreased sales commission and lower
shipping and handling expenses during the nine months ended
September 30, 2013 as compared to the
same period of last year.
General and administrative expenses increased by $3.56 million, or 115.6%, to $6.64 million for the nine months ended
September 30, 2013 from $3.08 million for the same period of last year.
The increase in general and administrative expenses was mainly due
to increased bad debt expenses of $2.19
million, increased stock based compensation expense for
directors and officers of $0.27
million, and increased accrued expenses for potential
lawsuit loss of $0.32 million for the
nine months ended September 30, 2013
compared to the same period of last year.
Depreciation and Amortization Expenses:
Depreciation and amortization expenses increased by $0.15 million, or 92.2%, to $0.31 million for the nine months ended
September 30, 2013 from $0.16 million for the same period of last year.
The increase in depreciation and amortization expenses was due to
additional fixed assets placed in service.
Impairment of Property and Equipment:
The Company also recorded impairment of property and equipment
of $3.54 million for the nine months
ended September 30, 2013.
Operating expenses totaled $10.53
million for the nine months ended September 30, 2013, compared to $3.38 million for the same period of last year,
an increase of $7.16 million, or
221.8%. As a result of the factors described above, operating loss
totaled ($15.24) million for the nine
months ended September 30, 2013,
compared to operating income of $4.20
million for the same period of last year. Operating loss
margin was (179.4%) for the nine months ended September 30, 2013 versus operating profit margin
of 14.8% for the same period of last year.
Net Income (Loss): Net loss available to common
stockholders was ($17.84) million, or
($0.69) per diluted share, for the
nine months ended September 30, 2013,
compared to net income available to common stockholders of
$0.31 million, or $0.01 per diluted share, for the nine months
ended September 30, 2012.
Financial Position
As of September 30, 2013, the
Company had cash and cash equivalents of $0.20 million, restricted cash of $30.72 million, and short-term bank loans
of $45.92 million. The Company
had working capital deficit of ($15.57)
million as of September 30,
2013, compared to a deficit of ($0.49) million at the end of 2012.
Net cash used in operating activities was ($11.57) million for the nine months ended
September 30, 2013, compared to net
cash provided by operating activities of $0.54 million for the same period of last
year.
About China Carbon Graphite Group, Inc.
China Carbon Graphite Group, through its affiliate, Xingyong
Carbon Co., Ltd., manufactures graphite and carbon based products
in China. The company is the largest wholesale supplier of
fine-grain and high-purity graphite in China and one of the nation's top overall
producers of carbon and graphite products. Fine grain graphite is
widely used in smelting for colored metals and rare earth metal
smelting as well as the manufacture of molds. High purity graphite
is used in metallurgy, mechanical industry, aviation, electronic,
atomic energy, chemical industry, food industry and a variety of
other fields. In September 2007, the Company was approved
and designated by the Ministry of Science & Technology as a
"National Hi-tech Enterprise," a distinction that the Company still
holds. Of the more than 400 carbon graphite producers in
China, China Carbon Group Inc. is the only
non-state-owned company to receive this honor. For more
information, please visit http://www.chinacarboninc.com.
Safe Harbor Statement
This release contains certain "forward-looking statements"
relating to the business of the Company and its subsidiary
companies. These forward-looking statements are often identified by
the use of forward-looking terminology such as "believes,"
"expects" or similar expressions. Such forward-looking statements
involve known and unknown risks and uncertainties that may cause
actual results to be materially different from those described
herein as anticipated, believed, estimated or expected. Investors
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 set forth in the
Company's annual report on Form 10-K and quarterly reports on Form
10-Q.
Company Contact:
Donghai
Yu, CEO
China Carbon Graphite Group Inc.
Email: ir@chinacarboninc.com
Website: http://www.chinacarboninc.com
Investor Relations Contact:
Tina Xiao
Weitian Group LLC
Tel: +1-917-609-0333
Email: tina.xiao@weitian-ir.com
Website: http://www.weitian-ir.com
|
China Carbon
Graphite Group, Inc. and subsidiaries
|
|
Consolidated
Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2013
|
|
December 31,
2012
|
|
|
|
|
(Unaudited)
|
|
(Audited)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
$
197,636
|
|
$
129,746
|
|
Restricted
cash
|
30,718,954
|
|
22,149,000
|
|
Accounts receivable,
Net
|
6,232,675
|
|
11,239,002
|
|
Advance to
suppliers
|
11,912,484
|
|
1,177,462
|
|
Inventories
|
45,645,068
|
|
48,417,875
|
|
Prepaid
expenses
|
721,491
|
|
280,779
|
|
Other receivables,
net of allowance of $224,319 and $220,339,
respectively
|
452,695
|
|
35,655
|
|
Total current assets
|
95,881,003
|
|
83,429,519
|
|
|
|
|
|
|
|
|
Property And
Equipment, Net
|
36,334,180
|
|
40,964,363
|
|
|
|
|
|
|
|
|
Construction In
Progress
|
27,543,023
|
|
7,324,379
|
|
|
|
|
|
|
|
|
Land Use Rights,
Net
|
9,654,207
|
|
9,657,419
|
|
Total
Assets
|
$
169,412,413
|
|
$
141,375,680
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts payable and
accrued expenses
|
$
3,492,996
|
|
$
2,250,745
|
|
Advance from
customers
|
1,697,436
|
|
1,368,525
|
|
Short term bank
loans
|
45,915,033
|
|
38,680,500
|
|
Notes
payable
|
57,679,739
|
|
40,606,500
|
|
Other
payables
|
2,345,935
|
|
630,179
|
|
Loan from unrelated
parties
|
265,826
|
|
338,002
|
|
Dividends
payable
|
55,015
|
|
46,816
|
|
Total current
liabilities
|
111,451,980
|
|
83,921,267
|
|
|
|
|
|
|
|
|
Amount due to related
parties
|
4,761,875
|
|
4,795,593
|
|
Long Term Bank
Loan
|
22,352,941
|
|
4,782,900
|
|
Accounts Payable -
Long Term
|
-
|
|
|
|
Warrant
Liabilities
|
25,657
|
|
224,362
|
|
Total
Liabilities
|
138,592,453
|
|
93,724,122
|
|
|
|
|
|
|
|
|
Redeemable
convertible series B preferred stock, $0.001 par value;
|
|
|
|
|
3,000,000 shares
authorized; 300,000 and 300,000 shares issued
|
|
|
|
|
and outstanding at
September 30, 2013 and December 31, 2012, respectively.
|
310,000
|
|
360,000
|
|
Stockholders'
Equity
|
|
|
|
|
Common stock, $0.001
par value;100,000,000 shares authorized
|
|
|
|
|
26,342,518 and
25,077,518 shares issued and outstanding at
|
|
|
|
|
September 30, 2013
and December 31, 2012, respectively
|
26,342
|
|
25,077
|
|
Additional paid-in
capital
|
18,551,966
|
|
18,223,781
|
|
Accumulated other
comprehensive income
|
9,714,447
|
|
8,982,925
|
|
Retained
earnings
|
2,217,206
|
|
20,059,775
|
|
Total stockholders'
equity
|
30,509,960
|
|
47,291,558
|
|
Total Liabilities
and Stockholders' Equity
|
$
169,412,413
|
|
$
141,375,680
|
|
|
|
|
|
|
|
|
China Carbon
Graphite Group, Inc and subsidiaries
|
|
|
|
|
|
Consolidated
Statements of Operations and Comprehensive
Income
|
|
|
|
|
|
For the Three and
Nine Months Ended September 30, 2013 and 2012
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
Six months ended
June 30,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$
2,721,723
|
|
$
6,491,133
|
|
$
8,496,893
|
|
$
28,429,886
|
|
$
5,775,170
|
|
$
21,938,753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold
|
|
2,269,493
|
|
4,722,151
|
|
13,202,146
|
|
20,850,882
|
|
10,932,653
|
|
16,128,731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
(Loss)
|
|
452,230
|
|
1,768,982
|
|
(4,705,253)
|
|
7,579,004
|
|
(5,157,483)
|
|
5,810,022
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling expenses
|
|
8,252
|
|
64,487
|
|
46,088
|
|
140,437
|
|
37,836
|
|
75,950
|
|
General and administrative
|
|
2,688,323
|
|
1,056,283
|
|
6,610,689
|
|
3,078,144
|
|
3,922,367
|
|
2,021,861
|
|
Impairment of property and equipment
|
|
3,569,646
|
|
-
|
|
3,569,646
|
|
-
|
|
|
|
|
|
Depreciation and amortization
|
|
187,803
|
|
56,198
|
|
307,505
|
|
160,028
|
|
119,702
|
|
103,830
|
|
Total operating expenses
|
|
6,454,023
|
|
1,176,968
|
|
10,533,928
|
|
3,378,609
|
|
4,079,905
|
|
2,201,641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (Loss)
Income Before Other Income (Expense)
|
(6,001,793)
|
|
592,014
|
|
(15,239,181)
|
|
4,200,395
|
|
(9,237,388)
|
|
3,608,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(1,501,867)
|
|
(1,208,970)
|
|
(3,418,517)
|
|
(3,658,888)
|
|
(1,916,650)
|
|
(2,449,918)
|
|
Interest
income
|
|
562,916
|
|
-
|
|
624,722
|
|
44
|
|
61,806
|
|
43
|
|
Other expense
|
|
-
|
|
272
|
|
-
|
|
(215,196)
|
|
-
|
|
(215,468)
|
|
Other
income (expense), net
|
|
(352)
|
|
6,080
|
|
(99)
|
|
221,270
|
|
253
|
|
215,190
|
|
Change in fair value of warrants
|
|
52,997
|
|
(188,046)
|
|
198,705
|
|
(221,846)
|
|
145,708
|
|
(33,800)
|
|
Total other expense (income),
net
|
|
886,306
|
|
(1,390,664)
|
|
2,595,189
|
|
(3,874,616)
|
|
1,708,883
|
|
(2,483,953)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income
Before Income Tax Expense
|
|
(6,888,099)
|
|
(798,650)
|
|
(17,834,370)
|
|
325,779
|
|
(10,946,271)
|
|
1,124,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax
Expense
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss)
|
|
(6,888,099)
|
|
(798,650)
|
|
(17,834,370)
|
|
325,779
|
|
(10,946,271)
|
|
1,124,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock
Dividends
|
|
826
|
|
(4,537)
|
|
(8,199)
|
|
(14,180)
|
|
(9,025)
|
|
(9,643)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
Available To Common Shareholders
|
|
(6,887,273)
|
|
(803,187)
|
|
(17,842,569)
|
|
311,599
|
|
(10,955,296)
|
|
1,114,785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation gain
|
|
92,843
|
|
528,509
|
|
731,522
|
|
518,452
|
|
638,679
|
|
(10,057)
|
|
Total
Comprehensive Income (Loss)
|
|
$
(6,795,256)
|
|
$
(270,141)
|
|
$
(17,102,848)
|
|
$
844,231
|
|
$
(10,307,592)
|
|
$
1,114,371
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share
|
|
$
(0.26)
|
|
$
(0.03)
|
|
$
(0.69)
|
|
$
0.01
|
|
$
(0.43)
|
|
$
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings (loss) per share
|
|
$
(0.26)
|
|
$
(0.03)
|
|
$
(0.69)
|
|
$
0.01
|
|
$
(0.43)
|
|
$
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
basic
|
|
26,336,648
|
|
24,260,834
|
|
25,754,899
|
|
23,843,306
|
|
25,459,203
|
|
23,632,248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
diluted
|
|
26,336,648
|
|
24,560,834
|
|
25,754,899
|
|
24,143,306
|
|
25,459,203
|
|
23,938,058
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China Carbon
Graphite Group, Inc and subsidiaries
|
|
Consolidated
Statements of Cash Flows
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30,
|
|
|
|
|
2013
|
|
2012
|
|
Cash Flows from
Operating Activities
|
|
|
|
|
Net income
(loss)
|
$
(17,834,370)
|
|
$
325,779
|
|
Adjustments to reconcile
net cash provided by (used in)
|
|
-
|
|
operating
activities
|
|
|
-
|
|
Depreciation and Amortization
|
2,144,180
|
|
1,925,159
|
|
Related party interest expenses contribution
|
-
|
|
344,401
|
|
Stock compensation
|
262,650
|
|
512,158
|
|
Change in fair value of warrants
|
(198,705)
|
|
221,846
|
|
Bad debt expenses
|
2,187,134
|
|
-
|
|
Impairment of property and equipment
|
3,542,153
|
|
-
|
|
Inventory
impairment
|
3,266,648
|
|
-
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
Accounts receivable
|
2,982,054
|
|
858,426
|
|
Notes receivable
|
-
|
|
156,266
|
|
Other receivables
|
(413,189)
|
|
(46,790)
|
|
Advance to suppliers
|
(10,631,243)
|
|
3,405,974
|
|
Inventory
|
352,515
|
|
(9,963,519)
|
|
Prepaid expenses
|
(416,248)
|
|
1,906
|
|
Accounts payable and accrued liabilities
|
1,193,573
|
|
3,460,160
|
|
Advance from customers
|
301,852
|
|
(44,443)
|
|
Taxes payable
|
289,304
|
|
(760,615)
|
|
Other payables
|
1,400,248
|
|
141,370
|
|
Net cash (used in)
provided by operating activities
|
(11,571,444)
|
|
538,078
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
Acquisition of property, plant and equipment
|
(64,803)
|
|
(65,156)
|
|
Increase of land use rights
|
(116,611)
|
|
-
|
|
Addition
of construction in progress
|
(19,931,665)
|
|
(1,479,435)
|
|
Net cash used in
investing activities
|
(20,113,079)
|
|
(1,544,591)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
Proceeds from issuing common stock
|
-
|
|
472,000
|
|
Proceeds from short term loans
|
39,886,502
|
|
37,256,400
|
|
Repayments for short term loans
|
(33,400,892)
|
|
(50,370,400)
|
|
Proceeds from long term loans
|
17,835,428
|
|
4,708,400
|
|
Repayments
of long term loans
|
(486,421)
|
|
-
|
|
Proceeds from loan from unrelated parties
|
11,090,543
|
|
11,351,261
|
|
Repayment of loans to unrelated parties
|
(11,168,221)
|
|
(9,151,360)
|
|
Proceeds from loan from related parties
|
122,254
|
|
821,600
|
|
Repayments to related parties
|
(236,625)
|
|
(158,000)
|
|
Proceeds from stock not yet issued
|
-
|
|
(137,000)
|
|
Restrict cash
|
(8,107,013)
|
|
(1,532,600)
|
|
Proceeds from notes payable
|
57,235,509
|
|
35,234,000
|
|
Repayments to notes payable
|
(41,021,484)
|
|
(27,887,000)
|
|
Net cash provided
by financing activities
|
31,749,580
|
|
607,301
|
|
|
|
|
|
|
|
|
Effect of exchange
rate fluctuation
|
2,833
|
|
(2,353)
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash
|
67,890
|
|
(401,565)
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
129,746
|
|
521,450
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at ending of period
|
$
197,636
|
|
$
119,885
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information
|
|
|
|
|
|
|
|
|
|
|
|
Interest
paid
|
$
3,866,767
|
|
$
3,358,169
|
|
Income taxes
paid
|
$
-
|
|
$
-
|
|
|
|
|
|
|
|
|
Non-cash
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
conversion to common stock
|
$
-
|
|
$
151
|
|
|
|
|
|
|
|
|
Issuance of common
stock for compensation
|
$
262,650
|
|
$
135,350
|
|
|
|
|
|
|
|
SOURCE China Carbon Graphite Group Inc.
