Hongli Clean Energy Technologies Corp. Reports Fiscal Year 2016 Q1 Financial Results
13 Noviembre 2015 - 4:05PM
Hongli Clean Energy Technologies Corp. (NASDAQ:CETC) (“Hongli” or
the “Company”), a vertically integrated producer of clean energy
products located in Henan Province, today reported its financial
results for the first quarter of fiscal year 2016, which ended
September 30, 2015.
First Quarter Financial Highlights:
- Revenue of syngas was $3.5 million for the quarter ended
September 30, 2015 with sales volume of 35.8 million cubic meters
and an average selling price per cubic meter of $0.10, which
revenue accounted for 55.0% of the Company’s total revenue,
highlighting the Company’s successful transformation from a coke
and coal producer to clean energy producer.
- Net income for the quarter ended September 30, 2015 was $1.7
million, or $0.07 per diluted share, compared to net loss of ($2.6)
million, or ($0.12) per diluted share, for the same period of last
fiscal year. The swing from loss to earnings per share represents a
positive 158% change.
- Gross profit for the quarter ended September 30, 2015 decreased
by $0.2 million, or 7.73%, to $2.1 million, but gross margin
improved by 15.9 percent to 32.7% for the quarter ended September
30, 2015. The decrease in gross profit (7.73%) was mainly due to
the decline in the sales of coal and coke despite the higher gross
profit contributed from the sales of syngas and the increase in
margin was due to increasing sales of syngas.
- Cost of revenues for the quarter ended September 30, 2015
decreased by 61.6%, from $11.3 million to $4.3 million compared to
the same period last year. The decrease was mainly driven by lower
sale volumes for coal and coke products and the low cost of revenue
from syngas.
- Revenue decreased by $7.1 million or 52.54% to $6.4 million for
the three months ended September 30, 2015. Such decrease resulted
from decreased sales of coal and coke products to steel
plants, offset by increased sales of the Company’s new product,
syngas.
Average price of syngas was approximately $0.10
or RMB 0.62 per cubic meter. The Company has long-term syngas
supply agreements with customers to provide syngas at a fixed
vending price of $0.10 or RMB 0.62 per cubic meter. Due to
restrictions on coal consumption by the Chinese government, the use
of syngas is encouraged and its price is currently lower than
natural gas. The vending price of syngas is stable and we expect
the price to increase.
On October 8, 2015, the Company and Bairui Trust entered into a
supplemental agreement to extend the due date of one of its
outstanding loans. The loan of $29.3 million or RMB 180 million was
originally due on October 2, 2015. In accordance with the
supplemental agreement, the due date was extended to April 2, 2016.
Interest expense, which mainly resulted from interest accrued for
the loans from Bairui Trust and Capital Paradise Limited, was $1.3
million, a decrease of $0.2 million or 14.71%, from $1.5 million as
compared to the same period a year ago. The decrease in
interest expense mainly resulted from the decrease of the principal
of the loan from Bairui Trust. Hongli’s CEO Mr. Jianhua Lv
commented, “We view ourselves as one of the most innovative energy
companies in China, and we are committed to bringing highly
efficient clean fuel or 'syngas' to our customers. We’re proud to
announce that as of the end of September 2015, a majority of our
revenue is derived from syngas and we believe we have successfully
transformed from a traditional coal and coke producer into a syngas
producer and innovative clean energy company. Such
transformation not only helped us successfully weather adverse
market conditions due to stricter environmental requirements
imposed by the Chinese government, but the transformation also
positively contributed to our future business development.” Mr. Lv
added, “With the improvement of our operating technology and
expansion of our production capacity of clean-burning gas, we
expect that syngas will contribute a higher proportion of our
future revenues. In the third quarter of this fiscal year, we
expect to utilize a technology called ‘Separation Pressure Swing
Adsorption’ to generate hydrogen (where purity level is above
99.96%) and use ‘Deep Cryogenic technology’ to produce liquefied
natural gas (where purity level is above 99.99%). Our technological
innovations will bring our customers a bigger selection of clean
energy.”
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
PingdingshanHongyuan Energy Science and Technology Development Co.,
Ltd., and its affiliated companies, Henan Province
PingdingshanHongli Coal & Coke Co., Ltd., Baofeng Coking
Factory, BaofengHongchang Coal Co., Ltd., BaofengHongguang
Environment Protection Electricity Generating Co., Ltd., Zhonghong
Energy Investment Company, Henan Hongyuan Coal Seam Gas Engineering
Technology Co., Ltd., BaofengShuangri Coal Mining Co., Ltd., and
BaofengXingsheng 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 |
|
|
|
September 30, |
|
|
June 30, |
|
|
|
2015 |
|
|
2015 |
|
|
|
(Unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
|
Cash |
|
$ |
139,233 |
|
|
$ |
81,605 |
|
Accounts receivable, net |
|
|
15,953,238 |
|
|
|
13,970,451 |
|
Other receivables and deposits |
|
|
8,473 |
|
|
|
4,928,967 |
|
Inventories |
|
|
5,947,825 |
|
|
|
3,191,605 |
|
Advances to suppliers |
|
|
4,088,692 |
|
|
|
8,216,127 |
|
Prepaid expenses |
|
|
- |
|
|
|
16,670 |
|
Total current assets |
|
|
26,137,461 |
|
|
|
30,405,425 |
|
|
|
|
|
|
|
|
|
|
PLANT AND EQUIPMENT,
net |
|
|
24,025,967 |
|
|
|
18,750,242 |
|
|
|
|
|
|
|
|
|
|
CONSTRUCTION IN
PROGRESS |
|
|
56,597,357 |
|
|
|
65,420,768 |
|
|
|
|
|
|
|
|
|
|
OTHER ASSETS |
|
|
|
|
|
|
|
|
Security deposit |
|
|
- |
|
|
|
- |
|
Prepayments |
|
|
18,915,410 |
|
|
|
19,674,034 |
|
Intangible assets, net |
|
|
54,021,548 |
|
|
|
56,355,185 |
|
Long-term investments |
|
|
2,807,643 |
|
|
|
2,920,247 |
|
Other assets |
|
|
110,170 |
|
|
|
114,589 |
|
Total other assets |
|
|
75,854,771 |
|
|
|
79,064,055 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
182,615,556 |
|
|
$ |
193,640,490 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES |
|
|
|
|
|
|
|
|
Current maturity of long term
loans |
|
$ |
43,159,496 |
|
|
$ |
44,471,220 |
|
Accounts payable, trade |
|
|
275,501 |
|
|
|
70,164 |
|
Other payables and accrued
liabilities |
|
|
5,735,039 |
|
|
|
4,503,689 |
|
Other payables - related party |
|
|
506,464 |
|
|
|
736,596 |
|
Acquisition payable |
|
|
- |
|
|
|
4,747,250 |
|
Customer deposits |
|
|
77,210 |
|
|
|
80,306 |
|
Taxes payable |
|
|
977,399 |
|
|
|
907,472 |
|
Current portion of warrants
liability |
|
|
- |
|
|
|
289,481 |
|
Total current liabilities |
|
|
50,731,109 |
|
|
|
55,806,178 |
|
|
|
|
|
|
|
|
|
|
LONG TERM
LIABILITIES |
|
|
|
|
|
|
|
|
Long term loans |
|
|
- |
|
|
|
- |
|
Warrants liability |
|
|
380,237 |
|
|
|
2,626,168 |
|
Total long term liabilities |
|
|
380,237 |
|
|
|
2,626,168 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
51,111,346 |
|
|
|
58,432,346 |
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
|
Common stock, $0.001 par value,
100,000,000 shares authorized, 23,960,217 shares issued and
outstanding as of September 20, 2015 and June 30, 2015,
respectively |
|
|
23,960 |
|
|
|
23,960 |
|
Additional paid-in
capital |
|
|
6,846,397 |
|
|
|
6,846,397 |
|
Statutory reserves |
|
|
3,689,941 |
|
|
|
3,689,941 |
|
Retained earnings |
|
|
110,539,595 |
|
|
|
108,831,633 |
|
Accumulated other
comprehensive income |
|
|
6,072,717 |
|
|
|
11,484,613 |
|
Total SinoCoking Coal and Coke
Chemicals Industries, Inc's equity |
|
|
127,172,610 |
|
|
|
130,876,544 |
|
|
|
|
|
|
|
|
|
|
NONCONTROLLING
INTERESTS |
|
|
4,331,600 |
|
|
|
4,331,600 |
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
131,504,210 |
|
|
|
135,208,144 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
182,615,556 |
|
|
$ |
193,640,490 |
|
HONGLI CLEAN ENERGY TECHNOLOGIES CORP. AND
SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME |
(UNAUDITED) |
|
|
|
For the Three Months Ended September 30, |
|
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
|
|
REVENUE |
|
$ |
6,442,238 |
|
|
$ |
13,573,836 |
|
|
|
|
|
|
|
|
|
|
COST OF REVENUE |
|
|
4,337,321 |
|
|
|
11,292,494 |
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
|
2,104,917 |
|
|
|
2,281,342 |
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
Selling |
|
|
25,666 |
|
|
|
34,164 |
|
General and administrative |
|
|
1,160,299 |
|
|
|
887,795 |
|
Total operating expenses |
|
|
1,185,965 |
|
|
|
921,959 |
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM
OPERATIONS |
|
|
918,952 |
|
|
|
1,359,383 |
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE) |
|
|
|
|
|
|
|
|
Interest income |
|
|
32 |
|
|
|
102,251 |
|
Interest expense |
|
|
(1,276,981 |
) |
|
|
(1,497,213 |
) |
Other finance expense |
|
|
(4,945 |
) |
|
|
(663 |
) |
Other income, net |
|
|
- |
|
|
|
- |
|
Change in fair value of
warrants |
|
|
2,535,412 |
|
|
|
(2,027,162 |
) |
Total other income (expense),
net |
|
|
1,253,518 |
|
|
|
(3,422,787 |
) |
|
|
|
|
|
|
|
|
|
INCOME (LOSSES) BEFORE
INCOME TAXES |
|
|
2,172,470 |
|
|
|
(2,063,404 |
) |
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES |
|
|
464,508 |
|
|
|
489,853 |
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
|
|
1,707,962 |
|
|
|
(2,553,257 |
) |
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
INCOME (LOSS) |
|
|
|
|
|
|
|
|
Foreign currency translation
adjustment |
|
|
(5,411,896 |
) |
|
|
(5,034 |
) |
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME
(LOSS) |
|
$ |
(3,703,934 |
) |
|
$ |
(2,558,291 |
) |
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES |
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
23,960,217 |
|
|
|
21,310,527 |
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSSES) PER
SHARE |
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
0.07 |
|
|
$ |
(0.12 |
) |
HONGLI CLEAN ENERGY TECHNOLOGIES CORP. AND
SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(UNAUDITED) |
|
|
|
For the Three Months Ended September 30, |
|
|
|
2015 |
|
|
2014 |
|
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
1,707,962 |
|
|
$ |
(2,553,257 |
) |
Adjustments to reconcile net income
(loss) to cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
Depreciation |
|
|
381,353 |
|
|
|
279,032 |
|
Amortization and depletion |
|
|
163,144 |
|
|
|
17,674 |
|
Write-off other receivables and
advances to suppliers |
|
|
- |
|
|
|
- |
|
Change in fair value of
warrants |
|
|
(2,535,412 |
) |
|
|
2,027,162 |
|
Bad debt expense |
|
|
278,759 |
|
|
|
116,359 |
|
Amortization of prepaid
expenses |
|
|
16,670 |
|
|
|
8,333 |
|
Change in operating assets and
liabilities |
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
(2,984,556 |
) |
|
|
(2,641,476 |
) |
Other receivables |
|
|
4,805,308 |
|
|
|
(72,829 |
) |
Inventories |
|
|
(2,924,859 |
) |
|
|
3,224,546 |
|
Advances to suppliers |
|
|
4,015,343 |
|
|
|
263,038 |
|
Prepaid expenses |
|
|
- |
|
|
|
- |
|
Accounts payable, trade |
|
|
211,335 |
|
|
|
(2,303,148 |
) |
Other payables and accrued
liabilities |
|
|
1,014,930 |
|
|
|
(675,686 |
) |
Customer deposits |
|
|
- |
|
|
|
- |
|
Taxes payable |
|
|
106,579 |
|
|
|
925,584 |
|
Net cash provided by (used in)
operating activities |
|
|
4,256,556 |
|
|
|
(1,384,668 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Collection of loans receivable |
|
|
- |
|
|
|
4,500,000 |
|
Payments of gasification
equipment |
|
|
- |
|
|
|
(7,026,661 |
) |
Payments of coal mine
acquisition |
|
|
(4,636,439 |
) |
|
|
- |
|
Net cash provided by (used in)
investing activities |
|
|
(4,636,439 |
) |
|
|
(2,526,661 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Preceeds from short-term loans -
CPL |
|
|
1,362,700 |
|
|
|
- |
|
Repayment of short-term loans -
CPL |
|
|
(1,045,892 |
) |
|
|
- |
|
Proceeds from issuance of common
stock |
|
|
- |
|
|
|
13,204,538 |
|
Proceeds from (payment to) related
parties |
|
|
(206,883 |
) |
|
|
2,016,383 |
|
Net cash provided by (used in)
financing activities |
|
|
109,925 |
|
|
|
15,220,921 |
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE RATE
ON CASH |
|
|
327,586 |
|
|
|
78,629 |
|
|
|
|
|
|
|
|
|
|
INCREASE (DECREASE) IN
CASH |
|
|
57,628 |
|
|
|
11,388,221 |
|
|
|
|
|
|
|
|
|
|
CASH, beginning of
period |
|
|
81,605 |
|
|
|
191,992 |
|
|
|
|
|
|
|
|
|
|
CASH, end of
period |
|
$ |
139,233 |
|
|
$ |
11,580,213 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW
INFORMATION: |
|
|
|
|
|
|
|
|
Cash paid for income tax |
|
$ |
316,152 |
|
|
$ |
336,180 |
|
Cash paid for interest expense, net
of capitalized interest |
|
$ |
- |
|
|
$ |
2,123,933 |
|
|
|
|
|
|
|
|
|
|
NON-CASH TRANSACTIONS
OF INVESTING AND FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Common stock issued for a service
fee |
|
$ |
- |
|
|
$ |
100,000 |
|
Issuance of warrants related to the
sale of common stock |
|
$ |
- |
|
|
$ |
10,048,116 |
|
Transfer of construction in
progress into plant and equipment |
|
$ |
6,400,540 |
|
|
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Company Contact:
Song Lv, CFO
Phone: + 86-375-2882-999
Email: lvsong@sinocoking.net
Website: http://www.cetcchina.net/
Hongli Clean Energy (NASDAQ:CETC)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Hongli Clean Energy (NASDAQ:CETC)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024