XI'AN, China, Nov. 9,
2012 /PRNewswire/ -- China Natural Gas, Inc. ("China
Natural Gas" or the "Company") (PINK: CHNG), a leading provider of
compressed natural gas (CNG) for vehicular fuel and pipeline
natural gas for industrial, commercial and residential use in
Xi'an, China, today announced its financial results
for the third quarter ended September 30,
2012.
Shuwen Kang, CEO of China Natural
Gas, Inc. commented: "We are pleased to share the results of our
third quarter. The company has successfully commenced commercial
production of its Jingbian liquefied natural gas ("LNG") plant on
July 16, 2011, which represents a key
milestone in its corporate history.
Our network of compressed natural gas, or CNG, fueling stations
currently contains 32 stations, a significant presence in the
markets we operate in. Our outlook for the forthcoming quarter of
the year is promising as we continue to grow our business, and we
look forward to sharing any future developments as they
materialize."
Third Quarter 2012 Financial and Operating Results
Revenues in the third quarter of 2012 decreased by 15.8% to
$31.06 million from $36.90 million in the third quarter of 2011,the
decrease was primarily attributable to the sales volume
decrease.Natural gas sales decreased 13.4% year-over-year to
$27.90 million, compared to
$32.23 million in the third quarter
of 2011. Gasoline revenues in the third quarter of 2012 decreased
to $0.65 million, down by 57.1% from
$1.51 million in the same period of
the prior year, which was mainly attributable to the closure of two
gasoline fueling stations during the fourth quarter of 2011.
Installation and services revenue decreased by 20.6% year-over-year
to $2.51 million, compared to
$3.16 million in the comparable
period of 2011. In the third quarter of 2012, sales of natural gas,
gasoline, and installation and other services contributed 89.8%,
2.1%, and 8.1% of the total revenues, respectively.
Gross profit in the third quarter of 2012 decreased 26.1% to
$10.48 million, compared to
$14.18 million in the same period of
the prior year. Gross margin in the third quarter of 2012 was
33.7%, compared to 38.4% a year ago. Gross margin decreased
primarily due to the current lower gross margin level of our LNG
business, as compared to the gross margins of those business lines
making greatest contribution to revenue.
Operating income in the third quarter of 2012 was $2.72 million, a decrease of 61.1% year-over-year
from $7.00 million in the third
quarter of 2011, primarily attributable to the decrease in gross
profit of natural gas and increase in selling expenses.
Income tax expense was $0.09
million, as compared to $1.53
million in the third quarter of 2011.
Net loss in the third quarter of 2012 was $1.50 million, or $0.07 per diluted share, compared to net income
of $4.55 million, or $0.21 per diluted share, in the third quarter of
2011, primarily attributable to the increase in non-operating
expense related to the loss of $4.02
million on disposal of five fueling stations during the
third quarter of 2012.
As of September 30, 2012, the
Company had $8.60 million in cash and
cash equivalents, compared to $9.62
million in cash and cash equivalents at December 31, 2011. The decrease was primarily
attributable to the construction of the LNG plant and other
projects, and the repayment of the loans from SPDB and of the
principal of the Abax Senior Notes.
Net cash provided by operating activities was $21.08 million for the nine months ended
September 30, 2012, compared to net
cash provided by operations of $15.75
million for the nine months ended September 30, 2011. The increase was primarily
due to the decrease in prepaid expense and other current assets,
increase in unearned revenue and decrease in accounts
receivable.
About China Natural Gas, Inc.
China Natural Gas (http://www.naturalgaschina.com) transports
and sells natural gas to vehicular fueling terminals, as well as
commercial, industrial and residential customers through its
distribution networks in China's
Shaanxi, Henan and Hubei Provinces. The Company owns
approximately 120 km of high-pressure pipelines and operates 21 CNG
fueling stations in Shaanxi
Province 10 CNG fueling stations in Henan Province and 1 CNG fueling station in
Hubei Province. China Natural Gas'
five primary business lines include: (1) the distribution and sale
of CNG through Company-owned CNG fueling stations for hybrid
(natural gas/gasoline) powered vehicles; (2) the installation,
distribution and sale of piped natural gas to residential,
commercial and industrial customers through Company-owned
pipelines; (3) production and sales of LNG through our LNG
production facility in Jingbian County, Shaanxi Province; (4) the distribution and
sale of gasoline through Company-owned CNG fueling stations for
hybrid (natural gas/gasoline) powered vehicles; and (5) the
conversion of gasoline-fueled vehicles to hybrid (natural
gas/gasoline) powered vehicles through its auto conversion
division.
SAFE HARBOR: FORWARD-LOOKING STATEMENTS
This press release includes statements that may constitute
forward-looking statements made pursuant to the safe harbor
provision of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by terminology
such as "will," "expects," "anticipates," "future," "intends,"
"plans," "believes," "estimates" and similar statements. For
example, statements about the future plans and goals of the JV with
CNPC and its prospects are forward looking and subject to risks.
China Natural Gas, Inc. may also make written or oral
forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission on forms 10-K, 10-Q and 8-K, in
its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to fourth parties. Statements that are not
historical facts, including statements about the Company's beliefs
and expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties that could
cause actual results to differ materially from the forward-looking
statements. A number of important factors could cause actual
results to differ materially from those contained in any
forward-looking statement. Potential risks and uncertainties
include, but are not limited to, risks outlined in the Company's
filings with the U.S. Securities and Exchange Commission, including
its registration statements on Forms S-1 and S-3, in each case as
amended. The Company does not undertake any obligation to update
any forward-looking statement, except as required under applicable
law.
This release is not an offer of securities for sale in
the United States. Securities may
not be offered or sold in the United
States absent registration or an exemption from
registration. Any public offering of securities to be made in
the United States will be made by
means of a prospectus that may be obtained from the issuer or
selling security holder and that will contain detailed information
about the company and management, as well as financial
statements.
|
China
Natural Gas, Inc.
|
|
Consolidated Balance Sheets
|
|
As of
September 30, 2012 and December 31, 2011
|
|
(Stated
in US Dollars)
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
$
|
8,604,906
|
|
|
$
|
9,622,883
|
|
|
Restricted
cash
|
|
|
739,150
|
|
|
|
-
|
|
|
Accounts
receivable, net
|
|
|
2,064,413
|
|
|
|
2,997,845
|
|
|
Other
receivables, net
|
|
|
93,453
|
|
|
|
540,646
|
|
|
Employee
advances
|
|
|
812,524
|
|
|
|
285,270
|
|
|
Inventories
|
|
|
3,685,266
|
|
|
|
1,938,754
|
|
|
Advances
to suppliers
|
|
|
6,467,436
|
|
|
|
4,540,139
|
|
|
Prepaid
expense and other current assets
|
|
|
4,367,024
|
|
|
|
4,470,687
|
|
|
Total
current assets
|
|
|
26,834,172
|
|
|
|
24,396,224
|
|
|
|
|
|
|
|
|
|
|
|
Investment
in unconsolidated joint ventures
|
|
|
1,583,000
|
|
|
|
1,574,000
|
|
|
Property
and equipment, net
|
|
|
179,374,098
|
|
|
|
174,097,754
|
|
|
Construction in progress
|
|
|
51,567,976
|
|
|
|
45,882,320
|
|
|
Deferred
financing cost, net
|
|
|
-
|
|
|
|
517,334
|
|
|
Goodwill
|
|
|
1,741,678
|
|
|
|
629,729
|
|
|
Other
intangible assets
|
|
|
20,366,045
|
|
|
|
18,910,244
|
|
|
Prepaid
expenses and other assets
|
|
|
6,415,166
|
|
|
|
10,976,203
|
|
|
TOTAL
ASSETS
|
|
$
|
287,882,135
|
|
|
$
|
276,983,808
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
Senior
notes- current maturities
|
|
$
|
38,255,832
|
|
|
$
|
9,671,682
|
|
|
Current
portion of bank loan payable
|
|
|
5,540,500
|
|
|
|
4,722,000
|
|
|
Redeemable
liabilities - warrants
|
|
|
17,500,000
|
|
|
|
-
|
|
|
Accounts
payable and accrued liabilities
|
|
|
8,203,277
|
|
|
|
7,694,423
|
|
|
Other
payable - related party
|
|
|
1,612,355
|
|
|
|
787,000
|
|
|
Short-term
borrowing - related party
|
|
|
2,679,945
|
|
|
|
1,359,945
|
|
|
Unearned
revenue
|
|
|
5,479,768
|
|
|
|
4,280,594
|
|
|
Accrued
interest
|
|
|
1,470,269
|
|
|
|
1,029,431
|
|
|
Taxes
payable
|
|
|
1,210,929
|
|
|
|
2,626,271
|
|
|
Total
current liabilities
|
|
|
81,952,875
|
|
|
|
32,171,346
|
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES:
|
|
|
|
|
|
|
|
|
|
Senior
notes, net of current portion
|
|
|
-
|
|
|
|
25,791,151
|
|
|
Bank loan
payable, net of current portion
|
|
|
7,915,000
|
|
|
|
9,444,000
|
|
|
Borrowings
- related party
|
|
|
-
|
|
|
|
1,320,000
|
|
|
Warrants
liability
|
|
|
-
|
|
|
|
17,500,000
|
|
|
Total
long-term liabilities
|
|
|
7,915,000
|
|
|
|
54,055,151
|
|
|
Total
liabilities
|
|
$
|
89,867,875
|
|
|
$
|
86,226,497
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
|
|
Preferred
stock, par value $0.0001 per share, 5,000,000 authorized, none
issued and outstanding
|
|
$
|
-
|
|
|
$
|
-
|
|
|
Common
stock, par value $0.0001 per share, 45,000,000 authorized,
21,458,654 issued and outstanding at September 30, 2012 and
December 31, 2011
|
|
|
2,145
|
|
|
|
2,145
|
|
|
Additional
paid-in capital
|
|
|
83,353,599
|
|
|
|
82,909,485
|
|
|
Accumulated other comprehensive income
|
|
|
20,713,885
|
|
|
|
19,817,493
|
|
|
Statutory
reserves
|
|
|
11,051,811
|
|
|
|
10,124,710
|
|
|
Retained
earnings
|
|
|
82,674,291
|
|
|
|
77,903,478
|
|
|
Noncontrolling interests
|
|
|
218,529
|
|
|
|
-
|
|
|
Total
stockholders' equity
|
|
|
198,014,260
|
|
|
|
190,757,311
|
|
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$
|
287,882,135
|
|
|
$
|
276,983,808
|
|
|
China
Natural Gas, Inc.
|
|
Consolidated Statements of Income and
Comprehensive Income
|
|
For the
three months and nine months periods ended September 30, 2012 and
2011
|
|
(Stated
in US Dollars)
|
|
|
|
Three
Months Ended
|
|
|
Nine
Months Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural
gas
|
|
$
|
27,903,522
|
|
|
$
|
32,225,481
|
|
|
$
|
92,231,013
|
|
|
$
|
74,859,041
|
|
|
Gasoline
|
|
|
647,061
|
|
|
|
1,508,657
|
|
|
|
2,174,124
|
|
|
|
4,790,207
|
|
|
Installation and others
|
|
|
2,511,199
|
|
|
|
3,163,237
|
|
|
|
6,835,658
|
|
|
|
8,669,404
|
|
|
|
|
31,061,782
|
|
|
|
36,897,375
|
|
|
|
101,240,795
|
|
|
|
88,318,652
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural
gas
|
|
|
18,950,048
|
|
|
|
19,893,643
|
|
|
|
60,687,423
|
|
|
|
44,863,543
|
|
|
Gasoline
|
|
|
616,290
|
|
|
|
1,461,302
|
|
|
|
2,060,048
|
|
|
|
4,588,735
|
|
|
Installation and others
|
|
|
1,013,647
|
|
|
|
1,363,506
|
|
|
|
2,821,175
|
|
|
|
3,736,054
|
|
|
|
|
20,579,985
|
|
|
|
22,718,451
|
|
|
|
65,568,646
|
|
|
|
53,188,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
10,481,797
|
|
|
|
14,178,924
|
|
|
|
35,672,149
|
|
|
|
35,130,320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
|
|
|
6,503,728
|
|
|
|
4,667,132
|
|
|
|
17,074,392
|
|
|
|
12,288,465
|
|
|
General
and administrative
|
|
|
1,255,336
|
|
|
|
2,513,296
|
|
|
|
5,603,011
|
|
|
|
7,276,052
|
|
|
|
|
7,759,064
|
|
|
|
7,180,428
|
|
|
|
22,677,403
|
|
|
|
19,564,517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from operations
|
|
|
2,722,733
|
|
|
|
6,998,496
|
|
|
|
12,994,746
|
|
|
|
15,565,803
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
22,084
|
|
|
|
12,403
|
|
|
|
42,683
|
|
|
|
28,323
|
|
|
Interest
expense
|
|
|
(277,347)
|
|
|
|
(465,236)
|
|
|
|
(985,027)
|
|
|
|
(469,902)
|
|
|
Loss on
disposal of fixed assets
|
|
|
(4,017,726)
|
|
|
|
-
|
|
|
|
(4,017,726)
|
|
|
|
-
|
|
|
Other
income (expense), net
|
|
|
133,625
|
|
|
|
(62,059)
|
|
|
|
119,295
|
|
|
|
25,806
|
|
|
Change in
fair value of warrants
|
|
|
1,233
|
|
|
|
11,971
|
|
|
|
4
|
|
|
|
251,781
|
|
|
Foreign
currency exchange loss
|
|
|
2,634
|
|
|
|
(421,031)
|
|
|
|
(501,812)
|
|
|
|
(428,079)
|
|
|
|
|
(4,135,497)
|
|
|
|
(923,952)
|
|
|
|
(5,342,583)
|
|
|
|
(592,071)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income tax
|
|
|
(1,412,764)
|
|
|
|
6,074,544
|
|
|
|
7,652,163
|
|
|
|
14,973,732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income tax
|
|
|
87,239
|
|
|
|
1,529,451
|
|
|
|
2,129,838
|
|
|
|
3,549,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss)
|
|
|
(1,500,003)
|
|
|
|
4,545,093
|
|
|
|
5,522,325
|
|
|
|
11,424,610
|
|
|
Less:
Income (loss) attributable to noncontrolling interests
|
|
|
23,594
|
|
|
|
-
|
|
|
|
(175,589)
|
|
|
|
-
|
|
|
Net income
(loss) attributable to China Natural Gas, Inc.
|
|
|
(1,523,597)
|
|
|
|
4,545,093
|
|
|
|
5,697,914
|
|
|
|
11,424,610
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency translation gain
|
|
|
(844,824)
|
|
|
|
2,696,721
|
|
|
|
896,392
|
|
|
|
7,139,013
|
|
|
Comprehensive income (loss)
|
|
$
|
(2,368,421)
|
|
|
$
|
7,241,814
|
|
|
$
|
6,594,306
|
|
|
$
|
18,563,623
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
21,458,654
|
|
|
|
21,458,654
|
|
|
|
21,458,654
|
|
|
|
21,403,052
|
|
|
Diluted
|
|
|
21,458,654
|
|
|
|
21,458,654
|
|
|
|
21,458,654
|
|
|
|
21,403,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.07)
|
|
|
$
|
0.21
|
|
|
$
|
0.27
|
|
|
$
|
0.53
|
|
|
Diluted
|
|
$
|
(0.07)
|
|
|
$
|
0.21
|
|
|
$
|
0.27
|
|
|
$
|
0.53
|
|
|
China
Natural gas, Inc.
|
|
Consolidated Statements of Stockholders'
Equity
|
|
As of
September 30, 2012 and December 31, 2011
|
|
(Stated
in US Dollars)
|
|
|
|
Common Stock
|
|
|
Additional
|
|
|
Accumulative
Other
|
|
|
|
|
|
Retained Earnings
|
|
|
Total
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Paid-in
Capital
|
|
|
Comprehensive
Income
|
|
|
Minority
Interest
|
|
|
Statutory
Reserve
|
|
|
Unrestricted
|
|
|
Stockholders'
Equity
|
|
|
Balance
at 1/1/2011
|
|
|
21,321,904
|
|
|
$
|
2,132
|
|
|
$
|
81,611,763
|
|
|
$
|
15,667,145
|
|
|
$
|
-
|
|
|
$
|
7,918,634
|
|
|
$
|
64,847,622
|
|
|
$
|
170,047,296
|
|
|
Exercise
of stock options
|
|
|
136,750
|
|
|
|
13
|
|
|
|
670,062
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
670,075
|
|
|
Stock
based compensation
|
|
|
-
|
|
|
|
-
|
|
|
|
627,660
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
627,660
|
|
|
Cumulative
translation adjustment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,150,348
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,150,348
|
|
|
Net
income
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
15,261,932
|
|
|
|
15,261,932
|
|
|
Appropriation of retain earnings
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,206,076
|
|
|
|
(2,206,076)
|
|
|
|
-
|
|
|
Balance
at 12/31/2011
|
|
|
21,458,654
|
|
|
$
|
2,145
|
|
|
$
|
82,909,485
|
|
|
$
|
19,817,493
|
|
|
$
|
-
|
|
|
$
|
10,124,710
|
|
|
$
|
77,903,478
|
|
|
$
|
190,757,311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at 1/1/2012
|
|
|
21,458,654
|
|
|
$
|
2,145
|
|
|
$
|
82,909,485
|
|
|
$
|
19,817,493
|
|
|
$
|
-
|
|
|
$
|
10,124,710
|
|
|
$
|
77,903,478
|
|
|
$
|
190,757,311
|
|
|
Stock
based compensation
|
|
|
-
|
|
|
|
-
|
|
|
|
444,114
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
444,114
|
|
|
Purchases
of a Noncontrolling interest equity
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
394,118
|
|
|
|
-
|
|
|
|
-
|
|
|
|
394,118
|
|
|
Cumulative
translation adjustment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
896,392
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
896,392
|
|
|
Net
income
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(175,589)
|
|
|
|
-
|
|
|
|
5,697,914
|
|
|
|
5,522,325
|
|
|
Appropriation of retain earnings
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
927,101
|
|
|
|
(927,101)
|
|
|
|
-
|
|
|
Balance
at 9/30/2012
|
|
|
21,458,654
|
|
|
$
|
2,145
|
|
|
$
|
83,353,599
|
|
|
$
|
20,713,885
|
|
|
$
|
218,529
|
|
|
$
|
11,051,811
|
|
|
$
|
82,674,291
|
|
|
$
|
198,014,260
|
|
|
China
Natural gas, Inc.
|
|
Consolidated Statements of Cash
Flows
|
|
For the
nine months periods ended September 30, 2012 and
2011
|
|
(Stated
in US Dollars)
|
|
|
|
For the
Nine Months Ended September 30,
|
|
|
|
2012
|
|
|
2011
|
|
|
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Net income
attributable to China Natural Gas, Inc.
|
|
$
|
5,697,914
|
|
|
$
|
11,424,610
|
|
|
Add: Loss
attributable to noncontrolling interests
|
|
|
(175,589)
|
|
|
|
-
|
|
|
Net
income
|
|
|
5,522,325
|
|
|
|
11,424,610
|
|
|
Adjustments to reconcile net income to net cash
provided by operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
10,443,635
|
|
|
|
6,271,846
|
|
|
Provision
for doubtful accounts
|
|
|
200,984
|
|
|
|
6,759
|
|
|
Loss
(Gain) on disposal of fixed assets
|
|
|
4,017,726
|
|
|
|
(3,366)
|
|
|
Stock-based compensation
|
|
|
444,114
|
|
|
|
479,622
|
|
|
Change in
fair value of warrants
|
|
|
(4)
|
|
|
|
(251,781)
|
|
|
Change in
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
1,067,790
|
|
|
|
(148,404)
|
|
|
Other
receivables
|
|
|
170,241
|
|
|
|
(339,992)
|
|
|
Employee
advances
|
|
|
(526,366)
|
|
|
|
24,019
|
|
|
Inventories
|
|
|
(1,365,120)
|
|
|
|
(1,011,663)
|
|
|
Advances
to suppliers
|
|
|
(2,458,489)
|
|
|
|
(5,863,429)
|
|
|
Prepaid
expense and other current assets
|
|
|
3,049,626
|
|
|
|
(313,404)
|
|
|
Accounts
payable and accrued liabilities
|
|
|
325,648
|
|
|
|
1,953,199
|
|
|
Unearned
revenue
|
|
|
1,176,182
|
|
|
|
3,171,096
|
|
|
Accrued
interest
|
|
|
440,838
|
|
|
|
(114,033)
|
|
|
Taxes
payable
|
|
|
(1,432,165)
|
|
|
|
461,903
|
|
|
Net
cash provided by operating activities
|
|
|
21,076,965
|
|
|
|
15,746,982
|
|
|
|
|
|
|
|
|
|
|
|
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Payment
for acquisition of property and equipment
|
|
|
(4,129,677)
|
|
|
|
(6,568,845)
|
|
|
Proceeds
from sales of property and equipment
|
|
|
2,850,914
|
|
|
|
16,896
|
|
|
Additions
to construction in progress
|
|
|
(13,107,944)
|
|
|
|
(7,884,773)
|
|
|
Prepayment
on long-term assets
|
|
|
(418,295)
|
|
|
|
(805,522)
|
|
|
Payment
for acquisition of business
|
|
|
(656,179)
|
|
|
|
-
|
|
|
Payment
for intangible assets
|
|
|
(1,768,049)
|
|
|
|
(189,327)
|
|
|
Net cash
used in investing activities
|
|
|
(17,229,230)
|
|
|
|
(15,431,571)
|
|
|
|
|
|
|
|
|
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Proceeds
from exercise of stock options
|
|
|
-
|
|
|
|
670,075
|
|
|
Proceeds
from short-term debt and other payable, related parties
|
|
|
-
|
|
|
|
3,090,647
|
|
|
Repayment
of long-term debt
|
|
|
(792,500)
|
|
|
|
-
|
|
|
Repayment
of senior notes
|
|
|
(3,333,334)
|
|
|
|
(3,333,334)
|
|
|
Increase
in restricted cash
|
|
|
(740,084)
|
|
|
|
-
|
|
|
Net cash
(used in) provided by financing activities
|
|
|
(4,865,918)
|
|
|
|
427,388
|
|
|
|
|
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash and cash equivalents
|
|
|
206
|
|
|
|
424,188
|
|
|
|
|
|
|
|
|
|
|
|
NET
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
|
|
|
(1,017,977)
|
|
|
|
1,166,987
|
|
|
|
|
|
|
|
|
|
|
|
CASH
AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
|
9,622,883
|
|
|
|
10,046,249
|
|
|
|
|
|
|
|
|
|
|
|
CASH
AND CASH EQUIVALENTS, END OF PERIOD
|
|
$
|
8,604,906
|
|
|
$
|
11,213,236
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
|
|
|
|
|
|
|
|
|
|
Interest
paid, net of capitalized interest
|
|
$
|
718,541
|
|
|
$
|
293,941
|
|
|
Income
taxes paid
|
|
$
|
3,330,382
|
|
|
$
|
3,142,069
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash transactions for investing and financing
activities:
|
|
|
|
|
|
|
|
|
|
Construction materials transferred to construction in
progress
|
|
$
|
67,058
|
|
|
$
|
6,210,629
|
|
|
Construction in progress transferred to property and
equipment
|
|
$
|
19,380,905
|
|
|
$
|
93,297,528
|
|
|
Construction in progress transferred to intangible
assets
|
|
$
|
-
|
|
|
$
|
11,611,672
|
|
|
Advances
to suppliers transferred to construction in progress
|
|
$
|
-
|
|
|
$
|
7,609,906
|
|
|
Other
assets transferred to construction in progress
|
|
$
|
2,577,107
|
|
|
$
|
2,342,356
|
|
|
Capitalized interest - amortization of discount of
notes payable and issuance cost
|
|
$
|
6,107,601
|
|
|
$
|
3,142,357
|
|
|
For more
information, please contact:
|
|
China
Natural Gas, Inc.
|
|
|
Zhaoyang
Qiao, CFO
|
|
|
Phone:
+86-29-8832-7391
Cell:
+86-158 2969-1287
|
|
|
Email:
qiaochaoyang@naturalgaschina.com
|
|
|
|
|
Jackie
Shi
|
|
|
Investor
Relations Director
|
|
|
Phone:
+86-29-8832-3325 x922
|
|
|
Cell:
+86-139-9287-9998
|
|
|
Email:
yjshi@naturalgaschina.com
|
|
|
SOURCE China Natural Gas, Inc.
