Hongli Clean Energy Technologies Corp. (NASDAQ:CETC) (“Hongli” or
the “Company”) (formerly known as SinoCoking Coal and Coke Chemical
Industries, Inc.), a vertically integrated producer of clean energy
products located in Henan Province, today reported its financial
results for the fiscal year 2015, which ended June 30, 2015.
4QFY2015 Financial
Highlights:
- Revenue decreased by 1.0% to $8.5 million for the three months
ended June 30, 2015 (4QFY2015), with syngas sales offsetting
decreases in sales volume and the average selling prices of coke
and coal products.
- Revenue of syngas was $5.2 million for 4QFY2015 with sales
volume of 51.6 million cubic meters and average selling price per
cubic meter of $0.10, which revenue accounted for 61.0% of total
revenue, highlighting the Company’s successful transformation from
a coke and coal producer to clean energy producer.
- Gross profit increased by $2.3 million, or 163.0%, to $3.7
million and gross margin improved by 26.8 points to 43.0% for
4QFY2015, the highest level in recent years, thanks to the
contribution from the higher margin syngas sales.
- Net loss for 4QFY2015 was ($7.9) million, or ($0.33) per
diluted share, compared to net loss of ($0.8) million, or ($0.04)
per diluted share, for the same period of last fiscal year. The
decrease in net income was mainly related to one-time charges of
$8.4 million for bad debt and $2.3 million for asset
impairment.
FY2015 Financial Highlights:
- Revenue decreased by 9.3% to $45.6 million for FY2015, mainly
due to decreased sales volume and decreases in the average selling
prices of coke and coal products and partially offset by the
contribution of syngas sales which started in October 2014.
- Revenue of syngas was $12.4 million for FY2015 with sales
volume of 124.1 million cubic meters and average selling price per
cubic meter of $0.10, which revenue accounted for 27.3% of total
revenue.
- Gross profit increased by $3.6 million, or 40.6%, to $12.6
million for FY2015. Gross margin improved by 9.8 percentage points
to the highest in four years to 27.7%. The increase in gross profit
and gross margin were mainly related to high-margin syngas sales in
FY2015.
- Net loss for FY2015 was ($3.5) million, or ($0.15) per diluted
share, compared to net income of $1.0 million, or $0.05 per diluted
share, for FY2014. The decrease in net income was mainly related to
increases at one-time charges of $9.9 million for bad debt and $2.3
million for asset impairment.
Mr. Jianhua Lv, Chairman and CEO of Hongli commented, "Fiscal
year 2015 was a transitional year for Hongli as our first coke
gasification facility (the “Stage I Facility”) started to generate
meaningful revenue following the completion of its construction in
September 2014, paving the way for Hongli’s transformation from a
producer of coal and coke products to a vertically-integrated
producer of clean energy products, including washed coal, “medium”
or mid-coal and coal slurries, coke, coke powder, coal tar and
crude benzol, syngas and electricity. This is particularly
significant for Hongli given the unpredictable nature of our coal
business due to the ongoing mining moratorium and the weak outlook
for our coke business in wake of China’s ‘new normal’ of slower
growth and Chinese steelmakers’ continuing battle of overcapacity,
inventory glut, and weak prices.”
Mr. Lv continued, “We ended the fiscal year on a
strong note with the new syngas business contributing 27.3% of
total revenue and gross margin reaching the highest level in recent
years, which we believe indicates that our new strategy is starting
to bear fruit. Looking ahead, as we continue to ramp up our coke
gasification facility and push forward our underground coal
gasification (“UCG”) initiative, Hongli is well positioned for
success in years to come, in our view.”
Three Months Ended June 30, 2015 Financial
Results
|
|
For the Three Months Ended June
30, |
|
($ millions, expect per
share data) |
|
2015 |
|
|
2014 |
|
|
% Change |
|
Revenue |
|
$ |
8.50 |
|
|
$ |
8.59 |
|
|
|
-1.0 |
% |
Coke products |
|
$ |
3.03 |
|
|
$ |
8.16 |
|
|
|
-62.9 |
% |
Coal products |
|
$ |
0.29 |
|
|
$ |
0.43 |
|
|
|
-33.0 |
% |
Syngas |
|
$ |
5.19 |
|
|
$ |
0.00 |
|
|
|
NM |
|
Gross margin |
|
|
43.0 |
% |
|
|
16.2 |
% |
|
|
26.8 |
% |
Operating (loss)
margin |
|
|
-94.9 |
% |
|
|
7.6 |
% |
|
|
NM |
|
Net loss |
|
($ |
7.88 |
) |
|
($ |
0.84 |
) |
|
|
NM |
|
Diluted loss per
share |
|
($ |
0.33 |
) |
|
($ |
0.04 |
) |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
For the three months ended June 30, 2015, total
revenue decreased by approximately $0.1 million, or 1.0%, to $8.5
million from $8.6 million for the same period of last fiscal year
as a result of decreases in sales of coke and coal products which
was partially offset by sales of syngas which have started to
generate revenue from the second quarter of fiscal year 2015.
Revenue of coke products, including finished
coke, coke powder, coal tar, and crude benzol, decreased by $5.1
million, or 62.9%, to $3.0 million for the three months ended June
30, 2015, compared to $8.2 million for the same period of last
fiscal year. The Company sold 18,362 metric tons of coke products
during the three months ended June 30, 2015, a decrease of 22,536
metric tons, or 55.1%, from 40,898 metric tons for the same period
of last fiscal year. Average selling price per metric ton for coke
products was $165 for the three months ended June 30, 2015,
compared to $199 for the same period of last fiscal year. The
decrease in sales of coke products was mainly due to continued
weakness in coke market demand as well as the Company’s use of coke
to produce syngas.
Revenue of coal products, including unprocessed
metallurgical coal, processed or washed coal, mid-coal and coal
slurries, decreased by $0.1 million, or 33.0%, to $0.3 million for
the three months ended June 30, 2015, compared to $0.4 million for
the same period of last fiscal year. The Company sold 9,176 metric
tons of coal products during the three months ended June 30, 2015,
a decrease of 1,320 metric tons, or 12.6%, from 10,496 metric tons
for the same period of last fiscal year. Average selling price per
metric ton for coal products was $31 for the three months ended
June 30, 2015, compared to $41 for the same period of last fiscal
year. The decrease in sales of coal products was mainly related to
unstable and unpredictable raw coal supply from our coal mines
affected by the ongoing mining moratorium. We are unable to
anticipate when the moratorium or policy will change to allow us to
reopen our mining activities.
Revenue of syngas from our coke gasification
facility, which was completed and commenced production in October
2014, was $5.2 million, or 61.0% of total revenue, with sales
volume of 51.6 million cubic meters and average selling price per
cubic meter of $0.10. The Company had long-term syngas supply
agreements with customers to provide syngas at a fixed rate of
$0.10 per cubic meter.
|
|
|
For the Three Months Ended June
30, |
|
2015 |
2014 |
|
Revenue |
|
Volume |
|
ASP |
|
Revenue |
|
Volume |
|
ASP |
|
($'000) |
|
('000 MT) |
|
($/MT) |
|
($'000) |
|
('000 MT) |
|
($/MT) |
Coke products |
3,028 |
|
18 |
|
165 |
|
8,158 |
|
41 |
|
199 |
Coal products |
289 |
|
9 |
|
31 |
|
431 |
|
10 |
|
41 |
Coke and Coal
Combined |
3,316 |
|
28 |
|
120 |
|
8,590 |
|
51 |
|
167 |
|
|
|
Revenue |
|
Volume |
|
ASP |
|
Revenue |
|
Volume |
|
ASP |
|
($'000) |
|
(million
M3) |
|
($/M3) |
|
($'000) |
|
(million
M3) |
|
($/M3) |
Syngas |
5,185 |
|
52 |
|
0.10 |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit and gross margin
Cost of revenue decreased by $2.4 million, or
32.7%, to $4.8 million for the three months ended June 30, 2015
from $7.2 million for the same period of last fiscal year. The
decrease in cost of revenue was mainly as a result of lower sales
volume for our coke and coal products. Gross profit increased by
$2.3 million, or 163.0%, to $3.7 million for the three months ended
June 30, 2015 from $1.4 million for the same period of last fiscal
year. Gross margin was 43.0% for the three months ended June 30,
2015, compared to 16.2% for the same period of last fiscal year as
a result of increased contribution from the higher margin syngas
sales.
Operating income (loss) and operating (loss)
margin
Operating expenses, including selling, general
and administrative expenses, increased by $11.0 million to $11.7
million for the three months ended June 30, 2015 from $0.7 million
for the same period of last fiscal year. The increase in operating
expenses was mainly due to increases in bad debt expense of $8.4
million and asset impairment charges of $2.3 million. As a result,
operating loss was $8.1 million for the three months ended June 30,
2015, compared to operating income of $0.7 million for the same
period of last fiscal year. Operating loss margin was 94.9% for the
three months ended June 30, 2015, compared to operating margin of
7.6% for the same period of last fiscal year.
Net income (loss) and EPS
Total other income was $0.5 million for the
three months ended June 30, 2015, compared to total other expenses
of ($1.2) million for the same period of last fiscal year. The
change in total other income was mainly related to favorable impact
of change in fair value of warrants of $1.8 million.
As a result of the foregoing, net loss for the
three months ended June 30, 2015 was ($7.9) million, or ($0.33) per
diluted share, compared to net loss of ($0.8) million, or ($0.04)
per diluted share, for the same period of last fiscal year.
Twelve Months Ended June 30, 2015
Financial Results
|
|
For the Twelve Months Ended June
30, |
|
($ millions, expect per
share data) |
|
2015 |
|
|
2014 |
|
|
% Change |
|
Revenue |
|
$ |
45.61 |
|
|
$ |
50.27 |
|
|
|
-9.3 |
% |
Coke products |
|
$ |
28.80 |
|
|
$ |
43.86 |
|
|
|
-34.3 |
% |
Coal products |
|
$ |
4.37 |
|
|
$ |
6.41 |
|
|
|
-31.8 |
% |
Syngas |
|
$ |
12.44 |
|
|
$ |
0.00 |
|
|
|
NM |
|
Gross margin |
|
|
27.7 |
% |
|
|
17.9 |
% |
|
|
9.8 |
% |
Operating (loss)
margin |
|
|
-6.8 |
% |
|
|
13.4 |
% |
|
|
NM |
|
Net income (loss) |
|
($ |
3.46 |
) |
|
$ |
0.99 |
|
|
|
NM |
|
Diluted earnings (loss)
per share |
|
($ |
0.15 |
) |
|
$ |
0.05 |
|
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
For the twelve months ended June 30, 2015, total
revenue decreased by $4.7 million, or 9.3%, to $45.6 million from
$50.3 million for the same period of last fiscal year as a result
of decreases in sales of coke and coal products and partially
offset by sales of syngas which started to generate revenue from
the second quarter of fiscal year 2015.
Revenue of coke products, including finished
coke, coke powder, coal tar, and crude benzol, decreased by $15.1
million, or 34.3%, to $28.8 million for the twelve months ended
June 30, 2015, compared to $43.9 million for the same period of
last fiscal year. The Company sold 160,786 metric tons of coke
products for fiscal year 2015, a decrease of 48,288 metric tons, or
23.1%, from 209,074 metric tons for the same period of last fiscal
year. Average selling price per metric ton for coke products was
$179 for fiscal year 2015, compared to $210 for the same period of
last fiscal year. The decrease in sales of coke products was mainly
due to continued weakness in coke market demand as well as the
Company’s use of coke to produce syngas.
Revenue of coal products, including unprocessed
metallurgical coal, processed or washed coal, mid-coal and coal
slurries, decreased by $2.0 million, or 31.8%, to $4.4 million for
the twelve months ended June 30, 2015, compared to $6.4 million for
the same period of last fiscal year. The Company sold 59,525 metric
tons of coal products for fiscal year 2015, a decrease of 15,134
metric tons, or 20.3%, from 74,659 metric tons for the same period
of last fiscal year. Average selling price per metric ton for coal
products was $73 for fiscal year 2015, compared to $86 for the same
period of last fiscal year. The decrease in sales of coal products
was mainly related to unstable and unpredictable raw coal supply
from our coal mines affected by the ongoing mining moratorium. We
are unable to anticipate when the moratorium or policy will change
to allow us to reopen our mining activities.
Revenue of syngas from our coke gasification
facility, which was completed and commenced production in October
2014, was $12.4 million, or 27.3% of total revenue, with sales
volume of 124.1 million cubic meters and average selling price per
cubic meter of $0.10. The Company had long-term syngas supply
agreements with customers to provide syngas at a fixed rate of
$0.10 per cubic meter.
|
|
|
For the Twelve Months Ended June
30, |
|
2015 |
2014 |
|
Revenue |
|
Volume |
|
ASP |
|
Revenue |
|
Volume |
|
ASP |
|
($'000) |
|
('000 MT) |
|
($/MT) |
|
($'000) |
|
('000 MT) |
|
($/MT) |
Coke products |
28,799 |
|
161 |
|
179 |
|
43,857 |
|
209 |
|
210 |
Coal products |
4,371 |
|
60 |
|
73 |
|
6,410 |
|
75 |
|
86 |
Coke and Coal
Combined |
33,170 |
|
220 |
|
151 |
|
50,268 |
|
284 |
|
177 |
|
|
|
Revenue |
|
Volume |
|
ASP |
|
Revenue |
|
Volume |
|
ASP |
|
($'000) |
|
(million
M3) |
|
($/M3) |
|
($'000) |
|
(million
M3) |
|
($/M3) |
Syngas |
12,444 |
|
124 |
|
0.10 |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit and gross margin
Cost of revenue decreased by $8.3 million, or
20.1%, to $33.0 million for the twelve months ended June 30, 2015
from $41.3 million for the same period of last fiscal year. The
decrease in cost of revenue was mainly as a result of lower sales
volume for our coke and coal products. Gross profit increased by
$3.6 million, or 40.6%, to $12.6 million for the twelve months
ended June 30, 2015 from $9.0 million for the same period of last
fiscal year. Gross margin was 27.7% for the twelve months ended
June 30, 2015, compared to 17.9% for the same period of last fiscal
year as a result of increased contribution from the higher margin
syngas sales.
Operating income (loss) and operating (loss)
margin
Operating expenses, including selling, general
and administrative expenses, increased by $13.5 million to $15.7
million for the twelve months ended June 30, 2015 from $2.3 million
for the same period of last fiscal year. The increase in operating
expenses was mainly due to: 1) increase in bad debt expense of $9.9
million, 2) increase in depreciation expense of $0.5 million, and
3) increase in asset impairment charges of $2.3 million. As a
result, operating loss was ($3.1) million for the twelve months
ended June 30, 2015, compared to operating income of $6.7 million
for the same period of last fiscal year. Operating loss margin was
(6.8%) for the twelve months ended June 30, 2015, compared to
operating margin of 13.4% for the same period of last fiscal
year.
Net income (loss) and EPS
Total other income was $1.7 million for the
twelve months ended June 30, 2015, compared to total other expenses
of ($3.9) million for the same period of last fiscal year. The
change in total other income was mainly due to favorable impact of
change in fair value of warrants of $7.1 million and partially
offset by an increase in interest expenses of $1.1 million.
As a result of the foregoing, net loss for the
twelve months ended June 30, 2015 was ($3.5) million, or ($0.15)
per diluted share, compared to net income of $1.0 million, or $0.05
per diluted share, for the same period of last fiscal year.
Financial Condition
As of June 30, 2015, the Company had cash of
approximately $0.1 million, short-term loans and current portion of
long-term loans of $44.5 million, and long-term loans of $0,
compared to $0.2 million, $20.8 million, and $29.2 million,
respectively, at June 30, 2014. Working capital as of June 30, 2015
was ($25.4) million, as compared to $6.8 million at June 30, 2014.
The increase in working capital deficit was due to: 1) the $29.2
million loans reclassified in current portion, 2) $4.2 million
increase in short-term loans, 3) $10.1 million in short-term loans
being repaid, 4) $16.2 million investment in the constructions of
coke gasification and underground coal gasification facilities, and
5) $1.4 million accrued for construction and asset purchases
payable. Working capital deficit was offset by: 1) $8.2 million
loan receivable collected, and 2) $13.2 million of funds raised in
a private placement during the fiscal year ended June 30, 2015.
Net cash provided by operating activities was
$0.5 million for the twelve months ended June 30, 2015, compared to
net cash used in operating activities of $0.6 million for the same
period of last fiscal year. Net cash used in investing activities
was $8.2 million for the twelve months ended June 30, 2015,
compared to $0 for the same period of last fiscal year. The Company
collected $8.0 million from the loans receivable from Capital
Paradise Limited, and invested $13.6 million in coke gasification
facilities and $2.6 million in the construction of underground coal
gasification. Net cash provided by financing activities was $7.5
million for the twelve months ended June 30, 2015, compared to $0.1
million for the same period of last fiscal year. During fiscal year
2015, we received $13.2 million through a registered sale of
2,818,845 shares of our common stock, obtained a $0.2 million loan
from Mr. Jianhua Lv, our Chairman and Chief Executive Officer,
repaid $8.1 million outstanding loans to Bairui Trust, repaid $2.0
million outstanding loans to Capital Paradise Limited, and received
$4.2 million loans from Capital Paradise Limited.
Recent Development
On October 8, 2015, the Company entered into a supplemental
agreement with Bairui Trust Co., Ltd. to extend the maturity date
of a RMB 180 million (approximately $29.3 million) from the Lender
from October 2, 2015, to April 2, 2016. The annual interest rate of
the Loan remained unchanged at 11.88%. Due to a national holiday in
China, the agreement was executed on October 8, 2015.
On September 29, 2015, the Company received a letter from The
NASDAQ Stock Exchange regarding the Registrant’s failure to comply
with NASDAQ Continued Listing Rule (the “Rule”) 5550(a)(2). NASDAQ
requires that listed securities maintain a minimum bid price of $1
per share. The Company has been provided with a period of 180
calendar days, or until March 28, 2016, to regain compliance with
the NASDAQ’s rule. The Company intends to evaluate available
options to resolve the deficiency and regain compliance.
On August 12, 2015, the Company announced that it had agreed in
principle to lease a facility for syngas production for 10 years
for an annual payment of RMB 10.1 million (approximately US$1.6
million) from Zhengzhou Coal Industry (Group) Co., Ltd. ("ZMJT"), a
large-scale state-owned coal and electric energy company.
On July 2, 2015, the Company announced that, at its Annual
Meeting of Shareholders held on June 30, 2015, a majority of the
shares of common stock present at the meeting in person or by proxy
voted in favor of changing its name from “SinoCoking Coal and Coke
Chemical Industries, Inc.” to “Hongli Clean Energy Technologies
Corp.” and its trading symbol on NASDAQ from "SCOK” to “CETC”. The
changes went into effect on July 28, 2015 on NASDAQ.
On May 4, 2015, the Company announced: 1) it had
shipped 51 million cubic meters of syngas to its three syngas
customers and generated RMB 31 million in sales (all from the Stage
I Facility which we completed at the end of September 2014 and
commenced production in October 2014) during the 3QFY15
quarter.
About Hongli Clean Energy Technologies
Corp.
Previously known as SinoCoking Coal and Coke
Chemical Industries, Inc., Hongli Clean Energy Technologies Corp.
(“Hongli” or the “Company”) is a Florida corporation and an
emerging producer of clean energy products located in Pingdingshan
City, Henan Province, China. The Company has historically been a
vertically-integrated coal and coke processor of basic and
value-added coal products for steel manufacturers, power
generators, and various industrial users. The Company has been
producing metallurgical coke since 2002, and acts as a key supplier
to regional steel producers in central China. The Company also
produces and supplies thermal coal to its customers in central
China. The Company currently owns its assets and conducts its
operations through its subsidiaries, Top Favour Limited and
Pingdingshan Hongyuan Energy Science and Technology Development
Co., Ltd., and its affiliated companies, Henan Province
Pingdingshan Hongli Coal & Coke Co., Ltd., Baofeng Coking
Factory, Baofeng Hongchang Coal Co., Ltd., Baofeng Hongguang
Environment Protection Electricity Generating Co., Ltd., Zhonghong
Energy Investment Company, Henan Hongyuan Coal Seam Gas Engineering
Technology Co., Ltd., Baofeng Shuangri Coal Mining Co., Ltd., and
Baofeng Xingsheng Coal Mining Co., Ltd.
For additional information on the Company,
please go to http://www.cetcchina.net/ or refer to the
company's periodic reports filed with the Securities and Exchange
Commission (http://www.cetcchina.net/sec-filings.html). Investors
wishing to receive the Company's corporate communications as they
become available may go to the company's Investor Relations site
(http://www.cetcchina.net/corporate-overview.html) and register
under Email Alerts.
Also, investors may submit questions directly to
Mr. Lv and his staff to receive non-confidential information about
the company's operations and products at the company's "Ask
Management" blog
(http://www.cetcchina.net/ask-management.html).
Forward-Looking Statements
This press release contains forward-looking
statements, particularly as related to, among other things, the
business plans of the Company, statements relating to goals, plans
and projections regarding the Company's financial position and
business strategy. The words or phrases "plans," "would be," "will
allow," "intends to," "may result," "are expected to," "will
continue," "anticipates," "expects," "estimate," "project,"
"indicate," "could," "potentially," "should," "believe," "think,"
"considers" or similar expressions are intended to identify
"forward-looking statements." These forward-looking statements fall
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Act of 1934 and are subject to the
safe harbor created by these sections. Actual results could differ
materially from those projected in the forward-looking statements
as a result of a number of risks and uncertainties. Such
forward-looking statements are based on current expectations,
involve known and unknown risks, a reliance on third parties for
information, transactions or orders that may be cancelled, and
other factors that may cause our actual results, performance or
achievements, or developments in our industry, to differ materially
from the anticipated results, performance or achievements expressed
or implied by such forward-looking statements. Factors that could
cause actual results to differ materially from anticipated results
include risks and uncertainties related to the fluctuation of
local, regional, and global economic conditions, the performance of
management and our employees, our ability to obtain financing,
competition, general economic conditions and other factors that are
detailed in our periodic reports and on documents we file from time
to time with the Securities and Exchange Commission. Statements
made herein are as of the date of this press release and should not
be relied upon as of any subsequent date, and the Company
specifically disclaims any obligation, to update any
forward-looking statements to reflect occurrences, developments,
unanticipated events or circumstances after the date of such
statement.
|
|
|
|
HONGLI CLEAN ENERGY TECHNOLOGIES CORP. AND
SUBSIDIARIES |
|
|
|
CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
June 30, |
|
|
|
2015 |
|
|
2014 |
|
ASSETS |
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
|
Cash |
|
$ |
81,605 |
|
|
$ |
191,992 |
|
Accounts receivable, net |
|
|
13,970,451 |
|
|
|
8,946,435 |
|
Other receivables and deposits |
|
|
4,928,967 |
|
|
|
5,787,232 |
|
Loans receivable |
|
|
- |
|
|
|
8,032,037 |
|
Inventories |
|
|
3,191,605 |
|
|
|
7,419,821 |
|
Advances to suppliers |
|
|
8,216,127 |
|
|
|
8,700,022 |
|
Prepaid expenses |
|
|
16,670 |
|
|
|
- |
|
Total current
assets |
|
|
30,405,425 |
|
|
|
39,077,539 |
|
|
|
|
|
|
|
|
|
|
PLANT AND EQUIPMENT,
net |
|
|
18,750,242 |
|
|
|
14,426,319 |
|
|
|
|
|
|
|
|
|
|
CONSTRUCTION IN
PROGRESS |
|
|
65,420,768 |
|
|
|
40,389,961 |
|
|
|
|
|
|
|
|
|
|
OTHER ASSETS |
|
|
|
|
|
|
|
|
Security deposit |
|
|
- |
|
|
|
4,873,928 |
|
Prepayments |
|
|
19,674,034 |
|
|
|
61,815,632 |
|
Intangible assets, net |
|
|
56,355,185 |
|
|
|
32,305,697 |
|
Long-term investments |
|
|
2,920,247 |
|
|
|
2,898,233 |
|
Other assets |
|
|
114,589 |
|
|
|
113,725 |
|
Total other assets |
|
|
79,064,055 |
|
|
|
102,007,215 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
193,640,490 |
|
|
$ |
195,901,034 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES |
|
|
|
|
|
|
|
|
Current maturity of long-term
loans |
|
$ |
44,471,220 |
|
|
$ |
20,795,425 |
|
Accounts payable, trade |
|
|
70,164 |
|
|
|
2,978,326 |
|
Other payables and accrued
liabilities |
|
|
4,503,689 |
|
|
|
2,460,113 |
|
Other payables - related party |
|
|
736,596 |
|
|
|
526,699 |
|
Acquisition payable |
|
|
4,747,250 |
|
|
|
4,711,463 |
|
Customer deposits |
|
|
80,306 |
|
|
|
79,701 |
|
Taxes payable |
|
|
907,472 |
|
|
|
765,421 |
|
Current portion of
warrants liability |
|
|
289,481 |
|
|
|
- |
|
Total current
liabilities |
|
|
55,806,178 |
|
|
|
32,317,148 |
|
|
|
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES |
|
|
|
|
|
|
|
|
Long-term loans |
|
|
- |
|
|
|
29,243,566 |
|
Warrants liability |
|
|
2,626,168 |
|
|
|
16 |
|
Total long-term
liabilities |
|
|
2,626,168 |
|
|
|
29,243,582 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
58,432,346 |
|
|
|
61,560,730 |
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
|
Common stock, $0.001 par value, 100,000,000 shares authorized,
23,960,217 shares and 21,121,372 shares issued and outstanding as
of June 30, 2015 and 2014, respectively |
|
|
23,960 |
|
|
|
21,121 |
|
Additional paid-in capital |
|
|
6,846,397 |
|
|
|
3,592,053 |
|
Statutory reserves |
|
|
3,689,941 |
|
|
|
3,689,941 |
|
Retained earnings |
|
|
108,831,633 |
|
|
|
112,295,407 |
|
Accumulated other
comprehensive income |
|
|
11,484,613 |
|
|
|
10,410,182 |
|
Total SinoCoking Coal
and Coke Chemicals Industries, Inc's equity |
|
|
130,876,544 |
|
|
|
130,008,704 |
|
|
|
|
|
|
|
|
|
|
NONCONTROLLING
INTERESTS |
|
|
4,331,600 |
|
|
|
4,331,600 |
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
135,208,144 |
|
|
|
134,340,304 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and
equity |
|
$ |
193,640,490 |
|
|
$ |
195,901,034 |
|
|
|
|
|
HONGLI CLEAN ENERGY TECHNOLOGIES CORP. AND
SUBSIDIARIES |
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME |
|
|
|
|
|
|
|
For the Year Ended June 30, |
|
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
|
|
REVENUE |
|
$ |
45,613,084 |
|
|
$ |
50,267,693 |
|
|
|
|
|
|
|
|
|
|
COST OF REVENUE |
|
|
32,973,492 |
|
|
|
41,275,791 |
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
|
12,639,592 |
|
|
|
8,991,902 |
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
Selling |
|
|
137,858 |
|
|
|
154,716 |
|
General and
administrative |
|
|
15,601,184 |
|
|
|
2,121,849 |
|
Total operating
expenses |
|
|
15,739,042 |
|
|
|
2,276,565 |
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM
OPERATIONS |
|
|
(3,099,450 |
) |
|
|
6,715,337 |
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE) |
|
|
|
|
|
|
|
|
Interest income |
|
|
165,367 |
|
|
|
566,541 |
|
Interest expense |
|
|
(5,552,467 |
) |
|
|
(4,477,049 |
) |
Other finance expense |
|
|
(63,083 |
) |
|
|
(71,870 |
) |
Other income, net |
|
|
- |
|
|
|
109,100 |
|
Change in fair value of
warrants |
|
|
7,131,724 |
|
|
|
5 |
|
Total other income
(expense), net |
|
|
1,681,541 |
|
|
|
(3,873,273 |
) |
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE
INCOME TAXES |
|
|
(1,417,909 |
) |
|
|
2,842,064 |
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES |
|
|
2,045,865 |
|
|
|
1,851,482 |
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
|
|
(3,463,774 |
) |
|
|
990,582 |
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
INCOME (LOSS) |
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment |
|
|
1,074,431 |
|
|
|
506,959 |
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME
(LOSS) |
|
$ |
(2,389,343 |
) |
|
$ |
1,497,541 |
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES |
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
23,291,832 |
|
|
|
21,121,372 |
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSSES) PER
SHARE |
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(0.15 |
) |
|
$ |
0.05 |
|
|
|
|
|
HONGLI CLEAN ENERGY TECHNOLOGIES CORP. AND
SUBSIDIARIES |
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
|
|
|
|
|
|
For the Year Ended June 30, |
|
|
|
2015 |
|
|
2014 |
|
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(3,463,774 |
) |
|
$ |
990,582 |
|
Adjustments to reconcile net income
(loss) to cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
Depreciation |
|
|
1,376,901 |
|
|
|
908,232 |
|
Amortization and depletion |
|
|
70,953 |
|
|
|
70,913 |
|
Write-off other receivables and
advances to suppliers |
|
|
- |
|
|
|
89,298 |
|
Change in fair value of
warrants |
|
|
(7,131,724 |
) |
|
|
(5 |
) |
Bad debt expense |
|
|
10,113,269 |
|
|
|
169,936 |
|
Loss from inventory LCM |
|
|
44,388 |
|
|
|
169,957 |
|
Gain on waived liabilities |
|
|
- |
|
|
|
(96,472 |
) |
Impairment loss of long-lived
assets |
|
|
2,431,718 |
|
|
|
- |
|
Amortization of prepaid
expenses |
|
|
83,330 |
|
|
|
- |
|
Change in operating assets and
liabilities |
|
|
|
|
|
|
|
|
Accounts receivable, trade |
|
|
(5,009,210 |
) |
|
|
427,486 |
|
Other receivables |
|
|
895,390 |
|
|
|
(1,558,667 |
) |
Inventories |
|
|
4,220,150 |
|
|
|
(4,568,625 |
) |
Advances to suppliers |
|
|
(958,306 |
) |
|
|
128,205 |
|
Accounts payable, trade |
|
|
(2,917,080 |
) |
|
|
2,800,529 |
|
Other payables and accrued
liabilities |
|
|
638,907 |
|
|
|
323,870 |
|
Customer deposits |
|
|
- |
|
|
|
(130,272 |
) |
Taxes payable |
|
|
135,602 |
|
|
|
(373,545 |
) |
Net cash provided by
(used in) operating activities |
|
|
530,514 |
|
|
|
(648,578 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Collection of loans receivable |
|
|
8,232,037 |
|
|
|
- |
|
Loan receivable to CPL |
|
|
(200,000 |
) |
|
|
- |
|
Payments of gasification
equipment |
|
|
(13,575,250 |
) |
|
|
- |
|
Prepayments of
construction of underground coal gasification |
|
|
(2,606,926 |
) |
|
|
- |
|
Net cash used in
investing activities |
|
|
(8,150,139 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Change in restricted cash |
|
|
- |
|
|
|
9,770,396 |
|
Payments of note payable |
|
|
- |
|
|
|
(9,770,396 |
) |
Repayment of short-term loans -
Bairui Trust |
|
|
(8,146,640 |
) |
|
|
- |
|
Proceeds from short-term loans -
CPL |
|
|
4,227,765 |
|
|
|
- |
|
Repayment of short-term loans -
CPL |
|
|
(1,990,699 |
) |
|
|
|
|
Proceeds from short-term loans -
others |
|
|
- |
|
|
|
163,700 |
|
Payment of short-term loans -
others |
|
|
- |
|
|
|
(489,380 |
) |
Proceeds from issuance of common
stock |
|
|
13,204,539 |
|
|
|
- |
|
Proceeds from (payment
to) related parties |
|
|
215,920 |
|
|
|
385,000 |
|
Net cash provided by
financing activities |
|
|
7,510,885 |
|
|
|
59,320 |
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE RATE
ON CASH |
|
|
(1,647 |
) |
|
|
(768 |
) |
|
|
|
|
|
|
|
|
|
DECREASE IN CASH |
|
|
(110,387 |
) |
|
|
(590,026 |
) |
|
|
|
|
|
|
|
|
|
CASH, beginning of
period |
|
|
191,992 |
|
|
|
782,018 |
|
|
|
|
|
|
|
|
|
|
CASH, end of
period |
|
$ |
81,605 |
|
|
$ |
191,992 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW
INFORMATION: |
|
|
|
|
|
|
|
|
Cash paid for income
tax |
|
$ |
2,053,280 |
|
|
$ |
1,738,133 |
|
Cash paid for interest
expense, net of capitalized interest |
|
$ |
4,901,566 |
|
|
$ |
3,376,213 |
|
|
|
|
|
|
|
|
|
|
NON-CASH TRANSACTIONS
OF INVESTING AND FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Reclassification of
short-term loans to long-term loans |
|
$ |
- |
|
|
$ |
29,243,566 |
|
Reclassification
long-term loans to short-term loans |
|
$ |
29,327,902 |
|
|
$ |
- |
|
Common stock issued for
a service fee |
|
$ |
100,000 |
|
|
$ |
- |
|
Issuance of warrants
related to the sale of common stock |
|
$ |
10,047,356 |
|
|
$ |
- |
|
Transfer of
construction in progress into plant and equipment |
|
$ |
7,052,383 |
|
|
$ |
- |
|
Reclassification of
prepayments to construction in progress |
|
$ |
29,947,047 |
|
|
$ |
- |
|
Reclassification of
prepayments to land use right |
|
$ |
11,902,241 |
|
|
$ |
- |
|
Reclassification of
construction in progress to land use rights |
|
$ |
11,861,507 |
|
|
$ |
- |
|
Other payable accrued
for land use right registration |
|
$ |
473,743 |
|
|
$ |
- |
|
|
|
HONGLI CLEAN ENERGY TECHNOLOGIES CORP. AND
SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional |
|
|
Retained earnings |
|
|
other |
|
|
|
|
|
|
|
|
|
Common Stock |
|
|
paid-in |
|
|
Statutory |
|
|
|
|
|
comprehensive |
|
|
Noncontrolling |
|
|
|
|
|
|
Shares |
|
|
Par Value |
|
|
capital |
|
|
reserves |
|
|
Unrestricted |
|
|
income |
|
|
interest |
|
|
Total |
|
BALANCE, July 1,
2013 |
|
|
21,121,372 |
|
|
$ |
21,121 |
|
|
$ |
3,592,053 |
|
|
$ |
3,689,941 |
|
|
$ |
111,304,825 |
|
|
$ |
9,903,223 |
|
|
$ |
4,331,600 |
|
|
$ |
132,842,763 |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
990,582 |
|
|
|
|
|
|
|
|
|
|
|
990,582 |
|
Foreign currency translation
adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
506,959 |
|
|
|
|
|
|
|
506,959 |
|
BALANCE, June 30,
2014 |
|
|
21,121,372 |
|
|
|
21,121 |
|
|
|
3,592,053 |
|
|
|
3,689,941 |
|
|
|
112,295,407 |
|
|
|
10,410,182 |
|
|
|
4,331,600 |
|
|
|
134,340,304 |
|
Issuance of common shares |
|
|
2,838,845 |
|
|
|
2,839 |
|
|
|
3,254,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,257,183 |
|
Net loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,463,774 |
) |
|
|
|
|
|
|
|
|
|
|
(3,463,774 |
) |
Foreign currency translation
adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,074,431 |
|
|
|
|
|
|
|
1,074,431 |
|
BALANCE, June 30,
2015 |
|
|
23,960,217 |
|
|
$ |
23,960 |
|
|
$ |
6,846,397 |
|
|
$ |
3,689,941 |
|
|
$ |
108,831,633 |
|
|
$ |
11,484,613 |
|
|
$ |
4,331,600 |
|
|
$ |
135,208,144 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company Contact:
Song Lv, CFO
Phone: + 86-375-2882-999
Email: lvsong@sinocoking.net
Website: http://www.cetcchina.net/
Investor Relations Contact:
Tina Xiao
Weitian Group LLC
Phone: +1-917-609-0333
Email: tina.xiao@weitian-ir.com
Hongli Clean Energy (NASDAQ:CETC)
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