Exhibit 99.1

 

Fuling Global Inc. Reports First Half-Year and Second Quarter 2016 Financial Results

 

Company to Host Earnings Conference Call on Tuesday, August 16, 8:00 am ET

 

ALLENTOWN, Pa., August 15, 2016 /PRNewswire/ -- Fuling Global Inc. (NASDAQ: FORK) ("Fuling Global" or the "Company"), an environmentally friendly specialized producer and distributor of plastic serviceware, with precision manufacturing facilities in both the U.S. and China, today announced its financial results for the three and six months ended June 30, 2016.

 

Mr. Xinfu Hu, Chief Executive Officer of Fuling Global, commented, "We continued to execute well with sales volume crossing the 10,000-ton mark for the first time in company history to 10,709 tons for the second quarter, highlighting strong demand for our products across all major product categories. Gross margin of 29.8% improved significantly from the prior quarter and was essentially unchanged from a year ago. Despite a slight dip in revenues driven by decrease in average selling price (“ASP”) in connection with drop in oil prices, net income attributable to our stockholders increased by 56.3% to $4.67 million for the second quarter, benefitting from $1.82 million in local government subsidy income.”

 

Ms. Guilan Jiang, Chairwoman of Fuling Global, added, "With all of our factories running near full capacity, we are facing increasing challenges to expand our production capacity promptly to meet the increasing demand for our products. Following the $10.24 million purchase of a 32.86-acre land parcel in April, we broke ground for the construction of a new factory in Wenling City in the second quarter. Phase I construction is expected to complete by the end of this year with commercial production to commence in the first quarter of 2017. Our Allentown factory continues to ramp, now with 12 straw machines up and running. With increasing orders from existing customers and orders from new customers, our Allentown factory is on track to reach $5.5 million annual revenue run rate in the third quarter this year.”

 

Second Quarter of 2016 Financial Highlights

 

   For the Three Months Ended June 30,
($ millions, except per share data)  2016  2015  % Change
Revenues  $24.59  $25.11  -2.0%
Gross profit  $7.33  $7.47  -1.9%
Gross margin  29.8%  29.8%  0.0%
Operating income  $3.72  $3.97  -6.4%
Operating margin  15.1%  15.8%  -0.7%
Net income attributable to Fuling Global  $4.67  $2.99  56.3%
Diluted earnings per share  $0.30  $0.26  15.9%

 

·Net income attributable to Fuling Global increased by 56.3% to $4.67 million, or $0.30 per basic and diluted share, for the three months ended June 30, 2016 from $2.99 million, or $0.26 per basic and diluted share, for the same period of last year. The increases in net income and earnings per share were primarily due to a $1.82 million  subsidy income received from local government which included a one-time government incentive of approximately $1.5 million for breaking ground on our new factory in Wenling City.
·Revenues decreased by 2.0% to $24.59 million for the three months ended June 30, 2016 with increase in sales volume offset by decrease in blended average selling price (“ASP”).
·Total sales volume increased by 21.2% to 10,709 tons for the three months ended June 30, 2016 from 8,834 tons for the same period of last year. The increase in total sales volume was across all product categories.
·Blended ASP decreased by 19.2% to $2.30 per kilogram for the three months ended June 30, 2016 from $2.84 per kilogram for the same period of last year. The decrease in ASP was across all product categories and in line with the decrease in crude oil prices.
·Gross profit decreased by 1.9% to $7.33 million for the three months ended June 30, 2016 from $7.47 million for the same period of last year. Gross margin was essentially unchanged at 29.8%.

 

Second Quarter 2016 Financial Results

 

Revenues

 

For the three months ended June 30, 2016, total revenues decreased by $0.51 million, or 2.0%, to $24.59 million from $25.11 million for the same period of last year. Overall sales volume increased by 1,875 tons, or 21.2%, to 10,709 tons for the three months ended June 30, 2016 from 8,834 tons for the same period of last year. The increase in overall sales volume was across all product categories. Blended ASP decreased by $0.54 per kilogram, or 19.2%, to $2.30 per kilogram for the three months ended June 30, 2016 from $2.84 per kilogram for the same period of last year. The decrease in ASP was across all product categories and in line with year-over-year change trend in crude oil prices.  Cutlery, straws, cups and plates, and other products accounted for 59.8%, 9.9%, 23.7%, and 6.7% of total revenues for the three months ended June 30, 2016, compared to 59.5%, 11.6%, 24.8%, and 4.1% for the same period of last year, respectively. 

 

On a geographical basis, sales in Fuling Global's largest market, the U.S., decreased by $1.43 million, or 6.0%, to $22.53 million for the three months ended June 30, 2016 from $23.96 million for the same period of last year. Sales in Europe increased by $0.49 million, or 92.2%, to $1.02 million. Sales in China increased by $0.36 million, or 516.9%, to $0.43 million for the three months ended June 30, 2016. Sales in Canada was $0.29 million for the three months ended June 30, 2016, down 2.7% from the same period of last year.

 

 

 

  

   For the Three Months Ended June 30,
   2016  2015  Y/Y Change
   Revenues ($'000)   % of Total  Revenues ($'000)   % of Total  Amount ($'000)   %
U.S.  $22,529   91.6%  $23,962   95.4%  $(1,433)  -6.0%
Europe   1,015   4.1%   528   2.1%   487   92.2%
Canada   289   1.2%   297   1.2%   (8)  -2.7%
China   433   1.8%   70   0.3%   363   516.9%
Others   328   1.3%   250   1.0%   78   31.0%
Total  $24,594   100.0%  $25,107   100.0%  $(514)  -2.0%

 

Gross profit

 

Total cost of goods sold decreased by $0.37million, or 2.1%, to $17.26million for the three months ended June 30, 2016 from $17.63 million for the same period of last year1. Gross profit decreased by $0.14 million, or 1.9%, to $7.33 million for the three months ended June 30, 2016 from $7.47 million for the same period of last year. Gross margin was 29.8% for the three months ended June 30, 2016, essentially unchanged from the same period of last year.

    

[1]Please note, certain expense items, primarily expenses associated with ocean freight, were previously reported as selling expenses and have been reclassified as cost of goods sold. As a result, cost of goods sold, gross profit, gross margin, selling expenses, and total operating expenses for 2015 have been adjusted retrospectively.

 

Operating income

 

Selling expenses decreased by $0.31 million, or 17.4%, to $1.45 million for the three months ended June 30, 2016 from $1.76 million for the same period of last year. The decrease in selling expenses was due to decrease in ocean freight cost. General and administrative expenses increased by $0.34 million, or 30.0%, to $1.48million for the three months ended June 30, 2016 from $1.14 million for the same period of last year. The increase in general and administrative expenses was due to professional fees related to being a public company as well as increase in administrative expenses at our Allentown facility. Research and development expenses increased by $0.08 million, or 12.5%, to $0.68 million for the three months ended June 30, 2016 from $0.60 million for the same period of last year. As a result, total operating expenses increased by $0.11 million, or 3.2%, to $3.61 million for the three months ended June 30, 2016 from $3.50 million for the same period of last year.

 

Operating income decreased by $0.25million, or 6.4%, to $3.72 million for the three months ended June 30, 2016 from $3.97 million for the same period of last year. Operating margin was 15.1% for the three months ended June 30, 2016, compared to 15.8% for the same period of last year.

 

Income before income taxes

 

After adjustment for interest income and expenses, subsidy income and other non-operating income and expenses, income before income taxes increased by $1.76 million, or 47.8%, to $5.45 million for the three months ended June 30, 2016 from $3.69 million for the same period of last year. The increase was primarily due to subsidy income of $1.82million received in the second quarter of this year from local government.

 

Provision for income taxes was $0.62 million for the  three months ended June 30, 2016, compared to $0.62 million for the same period of last year.    

 

Net income

 

Net income increased by $1.77 million, or 57.5%, to $4.84 million for the three months ended June 30, 2016 from $3.07 million for the same period of last year. After deduction of non-controlling interest, net income attributable to Fuling Global was $4.67 million, or $0.30 per basic and diluted share, for the three months ended June 30, 2016, compared to $2.99 million, or $0.26 per basic and diluted share, for the same period of last year.

 

Year-to-Date 2016 Financial Results

 

   For the Six Months Ended June 30,
($ millions, except per share data)  2016  2015  % Change
Revenues  $45.17  $45.75  -1.3%
Gross profit  $12.54  $12.07  3.9%
Gross margin  27.8%  26.4%  1.4%
Operating income  $4.81  $5.32  -9.6%
Operating margin  10.6%  11.6%  -1.0%
Net income attributable to Fuling Global  $5.42  $4.23  28.2%
Diluted earnings per share  $0.34  $0.36  -4.9%

  

 

 

 

Revenues

 

For the six months ended June 30, 2016, total revenues decreased by $0.57 million, or 1.3%, to $45.17 million from $45.75 million for the same period of last year. Overall sales volume increased by 2,411 tons, or 15.1%, to 18,338 tons for the six months ended June 30, 2016 from 15,927 tons for the same period of last year. The increase in overall sales volume was across all product categories. Blended ASP decreased by $0.41 per kilogram, or 14.2%, to $2.46 per kilogram for the six months ended June 30, 2016 from $2.87 per kilogram for the same period of last year. ASPs for cutlery, straws, and cups and plates all decreased while others increased slightly year-over-year.

 

Cutlery, straws, cups and plates, and other products accounted for 58.4%, 10.0%, 25.0%, and 6.5% of total revenues for the six months ended June 30, 2016, compared to 60.0%, 11.9%, 24.3%, and 3.9% for the same period of last year, respectively. 

On a geographical basis, sales in Fuling Global's largest market, the U.S., decreased by $1.65million, or 3.8%, to $42.00 million for the six months ended June 30, 2016 from $43.66million for the same period of last year. Sales in Europe increased by $0.52 million, or 56.5%, to $1.45 million. Sales in China increased by $0.71 million, or 1,008.9%, to $0.78 million for the six months ended June 30, 2016. Sales in Canada was $0.49 million for the six months ended June 30, 2016, up 5.1% from the same period of last year.

 

   For the Six Months Ended June 30,
   2016  2015  Y/Y Change
   Revenues ($'000)   % of Total  Revenues ($'000)   % of Total  Amount ($'000)   %
U.S.  $42,004   93.0%  $43,658   95.4%  $(1,654)  -3.8%
Europe   1,450   3.2%   926   2.0%   523   56.5%
Canada   493   1.1%   469   1.0%   24   5.1%
China   778   1.7%   70   0.2%   708   1008.9%
Others   447   1.0%   622   1.4%   (175)  -28.2%
Total  $45,172   100.0%  $45,745   100.0%  $(573)  -1.3%

 

Gross profit

 

Total cost of goods sold decreased by $1.04 million, or 3.1%, to $32.64 million for the six months ended June 30, 2016 from $33.68 million for the same period of last year. Gross profit increased by $0.47 million, or 3.9%, to $12.54 million for the six months ended June 30, 2016 from $12.07 million for the same period of last year. Gross margin was 27.8% for the six months ended June 30, 2016, compared to 26.4% for the same period of last year.

 

Operating income

 

Selling expenses decreased by $0.05million, or 1.7%, to $3.08 million for the six months ended June 30, 2016 from $3.14 million for the same period of last year. The decrease in selling expenses was due to decrease in ocean freight. General and administrative expenses increased by $0.87million, or 32.5%, to $3.55 million for the six months ended June 30, 2016 from $2.68 million for the same period of last year. The increase in general and administrative expenses was due to professional fees related to being a public company as well as increase in administrative expenses at our Allentown facility. As we spent significant efforts and resources training new staff, testing machines, and streamlining production lines in the first half of this year, we expect more moderate increases in general and administrative expenses with increasing productivity and operating efficiency in the latter half of this year. Research and development expenses increased by $0.16 million, or 17.3%, to $1.09 million for the six months ended June 30, 2016 from $0.93 million for the same period of last year.

 

As a result, total operating expenses increased by $0.98 million, or 14.5%, to $7.73 million for the six months ended June 30, 2016 from $6.75 million for the same period of last year.

 

Operating income decreased by $0.51 million, or 9.6%, to $4.81 million for the six months ended June 30, 2016 from $5.32 million for the same period of last year. Operating margin was 10.6% for the six months ended June 30, 2016, compared to 11.6% for the same period of last year.

 

Income before income taxes

 

After adjustment for interest income and expenses, subsidy income and other non-operating income and expenses, income before income taxes increased by $1.43 million, or 28.2%, to $6.49 million for the six months ended June 30, 2016 from $5.06 million for the same period of last year. The increase was primarily due to higher subsidy income received from local government this year.

 

Provision for income taxes was $0.93 million for the six months ended June 30, 2016, compared to $0.75 million for the same period of last year.  

 

Net income

 

Net income increased by $1.24 million, or 28.9%, to $5.56 million for the six months ended June 30, 2016 from $4.31 million for the same period of last year. This increase was primarily due to: 1) $1.70 million increase in subsidiary income; 2) $0.47 million increase in gross profit; and 3) partially offset by $0.98 million increase in operating expenses.

 

After deduction of non-controlling interest, net income attributable to Fuling Global increased by $1.19 million, or 28.2%, to $5.42 million for the six months ended June 30, 2016 from $4.23 million for the same period of last year.

Basic and diluted earnings per share were each$0.34 for the six months ended June 30, 2016, compared to $0.36 for the same period of last year.

 

 

 

 

Financial Condition

 

As of June 30, 2016, the Company had cash and cash equivalents, restricted cash, and certificates of deposits of $3.35 million, $2.57 million, and $1.91 million, respectively, compared to $15.57 million, $2.13 million, and $3.19 million, respectively, at the end of 2015. Short-term borrowing and bank notes payable were $16.34 million and $3.48 million, respectively, as of June 30, 2016, compared to $15.26 million and $2.84 million, respectively, at the end of 2015.

 

Net cash used in operating activities was $3.74million for the six months ended June 30, 2016, compared to $1.91 million for the same period of last year.

 

Net cash used in investing activities was $9.93 million for the six months ended June 30, 2016, compared to $2.42 million for the same period of last year. The Company spent $10.24 million in purchasing a 32.86-acre land parcel for its newest factory in Wenling, China this April and received one-time subsidy income of approximately $1.5million from the Wenling government in association with the purchase.

 

Net cash provided by financing activities was $1.47 million for the six months ended June 30, 2016, compared to $4.60 million for the same period of last year.

 

Recent Update

 

On April 12, 2016, the Company announced that it has purchased a 32.86-acre land parcel for its newest factory in Wenling, China for approximately $10.24 million. The Company anticipates that it will complete construction, equipment installation and testing and will ultimately commence commercial production in the new factory in the first quarter of 2017. 

 

Correction

 

In our press release dated May 16, 2016, we incorrectly reported sales volume growth of 4.6% to 7,418 tons for the three months ended March 31, 2016, which should be 7.6% growth to 7,629 tons. In addition, in our press release dated March 31, 2016, we incorrectly reported sales volume growth of 30% for the year 2015, which should be 15% increase.  

 

Earnings Conference Call

 

The Company will host its second quarter of 2016 financial results conference call at 8:00 am Eastern Time (5:00 am Pacific Time/8:00 pm Beijing Time) on Tuesday, August 16, 2016. To attend the call, please use the information below for either dial-in access or webcast access. When prompted on dial-in, ask for "Fuling Global Inc./ FORK".

 

Conference Call  
   
Date: Tuesday, August 16, 2016
   
Time: 8:00 am ET, U.S.
   
International Toll Free:

United States: +1 888-346-8982

Mainland China: +86 400-120-1203

Hong Kong: +852 800-905-945

International: +1 412-902-4272

   
Conference ID: Fuling Global Inc./FORK

 

Please dial in at least fifteen minutes before the call to ensure timely participation. For those unable to participate, an audio replay of the conference call will be available beginning approximately one hour after the end of the live call through August 23, 2016. The audio replay can be accessed by dialing +1-877-344-7529 within the United States or +1-412-317-0088 internationally, and entering access code No. 10091411.

 

About Fuling Global Inc.

 

Fuling Global Inc. ("Fuling Global") is an environmentally friendly specialized producer and distributor plastic serviceware, with precision manufacturing facilities in both the U.S. and China. The Company's plastic serviceware products include disposable cutlery, drinking straws, cups, plates and other plastic products and are used by more than one hundred customers primarily from the U.S. and Europe, including Subway, Wendy's, Burger King, KFC (China only), Walmart, McKesson, and Woolworths. More information about the Company can be found at: http://ir.fulingglobal.com/.

 

Forward-Looking Statements

 

This press release contains information about Fuling Global's view of its future expectations, plans and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its application of IPO proceeds, its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of software and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. Fuling Global encourages you to review other factors that may affect its future results in Fuling Global's registration statement and in its other filings with the Securities and Exchange Commission.

 

 

 

 

For more information, please contact:

 

Investor Relations:

 

Tina Xiao                            

Weitian Group LLC

Email: fork@weitian-ir.com

Phone: +1-917-609-0333

 

 

At the Company:

 

Gilbert Lee, CFO

Email: ir@fulingplasticusa.com

Phone: +1-610-366-8070x1835

Web: http://ir.fulingglobal.com/ 

 

 

 

 

FULING GLOBAL INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

  

   June 30,   December 31, 
   2016   2015 
         
ASSETS          
Current Assets:          
Cash and cash equivalents  $3,350,237   $15,573,554 
Restricted cash   2,574,805    2,129,162 
Certificates of deposit   1,905,417    3,186,892 
Accounts receivable, net   16,860,422    14,725,030 
Advances to supplier, net   486,110    312,328 
Inventories, net   13,869,273    13,493,685 
Prepaid expenses and other current assets   2,355,685    425,477 
Total Current Assets   41,401,949    49,846,128 
           
Property, plant and equipment, net   24,676,603    21,556,866 
Intangible assets, net   9,975,022    1,778,264 
Prepayments for construction and equipment purchase   4,265,740    2,003,400 
Other non-current assets   222,398    225,500 
Deferred tax assets   451,345    319,252 
                    Total Assets  $80,993,057   $75,729,410 
           
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
           
Current Liabilities:          
Short term borrowings  $16,336,248   $15,264,827 
Bank notes payable   3,477,981    2,839,783 
Advances from customers   771,884    597,226 
Accounts payable   9,700,116    10,972,851 
Accrued and other liabilities   1,729,667    1,808,135 
Taxes payable   612,502    743,147 
Loan from third parties   -    184,851 
Total Current Liabilities   32,628,398    32,410,820 
           
                    Total  Liabilities   32,628,398    32,410,820 
           
Commitments and contingencies          
           
Shareholders' Equity          
Common stock: $0.001 par value, 70,000,000 shares authorized,
15,732,795 shares issued and outstanding as of June 30, 2016 and December 31, 2015
   15,733    15,733 
Additional paid in capital   29,791,389    29,722,127 
Statutory reserve   3,529,168    2,868,844 
Retained earnings   14,944,352    10,182,213 
Accumulated other comprehensive income (loss)   (189,042)   392,450 
Total Fuling Global Inc.'s equity   48,091,600    43,181,367 
           
Noncontrolling interest   273,059    137,223 
                     Total Shareholders' Equity   48,364,659    43,318,590 
           
            Total Liabilities and Shareholders' Equity  $80,993,057   $75,729,410 
           

 

 

 

 

FULING GLOBAL INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME

(UNAUDITED)

 
   For the Three Months Ended June 30,   For the Six Months Ended June 30, 
   2016   2015   2016   2015 
                 
Revenues  $24,594,372   $25,106,839   $45,172,191   $45,745,355 
Cost of goods sold   17,262,250    17,633,736    32,635,246    33,679,333 
Gross Profit   7,332,122    7,473,103    12,536,945    12,066,022 
                     
Operating Expenses                    
Selling expenses   1,452,267    1,757,534    3,083,800    3,136,505 
General and administrative expenses   1,484,156    1,141,891    3,548,715    2,678,139 
Research and development expenses   675,957    600,740    1,094,313    932,879 
Total operating expenses   3,612,380    3,500,165    7,726,828    6,747,523 
                     
Income from Operations   3,719,742    3,972,938    4,810,117    5,318,499 
                     
Other Income (Expense):                    
Interest income   10,966    12,892    17,579    18,961 
Interest expense   (226,691)   (331,431)   (428,375)   (637,904)
Subsidy income   1,817,120    94,201    1,857,989    154,422 
Foreign currency transaction gain   362,738    68,552    422,527    295,563 
Other expense, net   (230,647)   (127,621)   (192,995)   (90,805)
Total other income (expense), net   1,733,486    (283,407)   1,676,725    (259,763)
                     
Income Before Income Taxes   5,453,228    3,689,531    6,486,842    5,058,736 
                     
Provision for Income Taxes   615,519    617,585    928,543    745,068 
                     
Net Income  $4,837,709   $3,071,946   $5,558,299   $4,313,668 
                     
Less: net income attributable to noncontrolling interest   164,945    81,699    135,836    85,438 
                     
Net income attributable to Fuling Global Inc.   4,672,764    2,990,247    5,422,463    4,228,230 
                     
Other Comprehensive Income                    
Foreign currency translation gain (loss)   (815,224)   (162,673)   (581,492)   798 
Comprehensive income attributable to Fuling Global Inc.  $3,857,540   $2,827,574   $4,840,971   $4,229,028 
                     
Earnings per share                    
Basic and diluted  $0.30   $0.26   $0.34   $0.36 
                     
Weighted average number of shares                    
Basic and diluted   15,732,795    11,666,667    15,732,795    11,666,667 
                     
Cash dividends per share                    
Basic and diluted  $-   $-   $-   $0.88 
                     
                     

 

 

 

 

FULING GLOBAL INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

 

   For the Six Months Ended June 30,  
   2016   2015 
CASH FLOWS FROM OPERATING ACTIVITIES          
Net income  $5,558,299   $4,313,668 
Adjustments to reconcile net income to net cash          
  provided by operating activities:          
Stock based compensation   69,262    - 
Deferred tax benefit   (132,093)   - 
Depreciation and amortization   1,306,613    1,087,103 
Bad debt provisions   108,750    143,640 
Gain on disposal of fixed assets   (12,896)   - 
Changes in operating assets:          
 Accounts receivable   (2,337,456)   (2,471,504)
Advances to suppliers   (3,992,991)   (1,848,517)
Inventories   (492,975)   314,621 
Other assets   (2,025,962)   285,213 
Changes in operating liabilities:          
Accounts payable   (1,809,818)   (3,762,267)
Advance from customers   189,737    (19,503)
Taxes payable   (116,650)   271,689 
Accrued and other liabilities   (56,140)   (228,284)
Net cash used in operating activities   (3,744,320)   (1,914,141)
           
CASH FLOWS FROM INVESTING ACTIVITIES          
Purchase of property and equipment   (399,389)   (1,302,879)
Cash receipts from disposal property and equipment   19,614    - 
Cash invested in certificates of deposit   1,228,224    - 
Prepayments for construction and equipment purchase   (2,342,419)   (844,033)
Purchase of intangible assets   (8,434,613)   (269,044)
Net cash used in investing activities   (9,928,583)   (2,415,956)
           
CASH FLOWS FROM FINANCING ACTIVITIES          
Proceeds from short-term borrowings   11,264,393    25,428,552 
Repayments of short-term borrowings   (9,818,828)   (19,982,971)
Proceeds from bank notes payable   3,600,629    2,398,646 
Repayments of bank notes payable   (2,885,578)   (3,255,244)
Repayment of third party borrowing   (183,588)   (195,906)
Repayments of loans from related parties   -    5,747 
Change of restricted cash   (502,722)   201,554 
Net cash provided by financing activities   1,474,306    4,600,378 
           
EFFECT OF EXCHANGE RATES CHANGES ON CASH   (24,720)   (21,306)
           
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   (12,223,317)   248,975 
           
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD   15,573,554    1,399,714 
           
CASH AND CASH EQUIVALENTS, ENDING OF THE PERIOD  $3,350,237   $1,648,689 
           
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:          
Cash paid during the period for:          
Interest paid  $400,152   $422,851 
Income tax paid  $1,161,623   $686,959 
Non-cash investing activities:          
Transfer from construction in progress to fixed assets  $634,190   $1,069,664 
Transfer from advance payments to fixed assets  $-   $270,580