Exhibit 99.1

 

Fuling Global Inc. Reports Third Quarter 2016 Financial Results

 

ALLENTOWN, Pa., November. 14, 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 nine months ended September 30, 2016.

 

Mr. Xinfu Hu, Chief Executive Officer of Fuling Global, commented, "We are very pleased to report strong results for the third quarter as volume and revenues grew by 46.2% and 24.5%, respectively, and revenues was record high since our inception. As we continue to add new customers and gain share at some existing customers, we expect to continue to run our production at nearly full capacity in the near term to meet the growing demand for our products. With further growth increasingly hinging on capacity expansion, we expect Phase I of the new Wenling factory to be completed by the first quarter of 2017, which will double our overall annual production capacity from 40,000 tons to 80,000 tons over the next three years, and set us up for strong growth in 2017 and beyond.”

 

Third Quarter of 2016 Financial Highlights

 

   For the Three Months Ended September 30, 
($ millions, except per share data)  2016   2015   % Change 
Revenues  $27.9   $22.4    24.5%
Gross profit  $6.9   $6.2    10.9%
Gross margin   24.8%   27.9%   -3.1 pp 
Operating income  $2.4   $2.7    -11.4%
Operating margin   8.6%   12.1%   -3.5 pp 
Net income attributable to Fuling Global  $2.1   $2.7    -24.2%
Diluted earnings per share  $0.13   $0.23    -43.8%

*Note: pp represents percentage points

 

Revenues increased by 24.5% to $27.9 million for the three months ended September 30, 2016 from $22.4 million, for the same period of last year, mainly due to increase in overall sales volume and partially offset by decrease in blended average sales price (“ASP”).

 

Gross profit increased by 10.9% to $6.9 million for the three months ended September 30, 2016 from $6.2 million for the same period of last year. Gross margin decreased by 3.1 percentage points to 24.8% from 27.9% for the same period of last year.

 

Net income attributable to Fuling Global decreased by 24.2% to $2.1 million, or $0.13 per basic and diluted share, for the three months ended September 30, 2016 from $2.7 million, or $0.23 per basic and diluted share, for the same period of last year. The decreases in net income and earnings per share were primarily due to the increase in general and administrative expenses that more than offset increase in revenues and gross profit.

 

Total sales volume increased by 46.2% to 11,453 tons for the three months ended September 30, 2016 from 7,835 tons for the same period of last year. The increase in sales volume was across the board in all product categories with the strongest growth in cups and plates.

 

 

 

 

Blended ASP decreased by 14.8% to $2.44 per kilogram for the three months ended September 30, 2016 from $2.86 per kilogram for the same period of last year. The decrease in blended ASP was in line with the decrease in crude oil prices.

 

Third Quarter 2016 Financial Results

 

Revenues

 

For the three months ended September 30, 2016, total revenues increased by $5.5 million, or 24.5%, to $27.9 million from $22.4 million for the same period of last year. Overall sales volume increased by 3,618 tons, or 46.2%, to 11,453 tons for the three months ended September 30, 2016 from 7,835 tons for the same period of last year. Blended ASP decreased by $0.42 per kilogram, or 14.8%, to $2.44 per kilogram for the three months ended September 30, 2016 from $2.86 per kilogram for the same period of last year.

 

Cutlery, straws, cups and plates, and other products accounted for 56.6%, 10.7%, 24.9%, and 7.8% of total revenues for the three months ended September 30, 2016, compared to 53.2%, 17.1%, 24.3%, and 5.4% for the same period of last year, respectively.

 

   For the Three Months Ended September 30, 
   2016   2015   Y/Y Change 
   Revenues
($'000)
   % of
Total
   Revenues
($'000)
   % of
Total
   Amount
($'000)
   % 
Cutlery  $15,793    56.6%  $11,920    53.2%  $3,873    32.5%
Straws   2,980    10.7%   3,839    17.1%   (859)   -22.4%
Cups and plates   6,946    24.9%   5,433    24.3%   1,513    27.9%
Others   2,181    7.8%   1,217    5.4%   964    79.2%
Total  $27,901    100.0%  $22,409    100.0%  $5,492    24.5%

 

On a geographical basis, sales in Fuling Global's largest market, the U.S., increased by $4.3 million, or 22.4%, to $23.6 million for the three months ended September 30, 2016 from $19.3 million for the same period of last year. Sales in Europe increased by $1.0 million, or 2,594.8%, to $1.1 million. Sales in China were $1.8 million for the three months ended September 30, 2016, compared to $0.13 million for the same period of last year. Sales in Canada were $0.7 million for the three months ended September 30, 2016, up 103.6% from the same period of last year.

 

    For the Three Months Ended September 30, 
    2016   2015   Y/Y Change 
    Revenues
($'000)
   % of
Total
   Revenues
($'000)
   % of
Total
   Amount
($'000)
   % 
U.S.   $23,567    84.5%  $19,258    85.9%  $4,309    22.4%
Europe    1,078    3.9%   40    0.2%   1,038    2,594.8%
Canada    663    2.4%   326    1.4%   337    103.6%
China    1,800    6.5%   128    0.6%   1,672    1,309.7%
Others    793    2.8%   2,657    11.9%   (1,864)   -70.2%
Total   $27,901    100.0%  $22,409    100.0%  $5,492    24.5%

 

 2 

 

 

Gross profit

 

Total cost of goods sold increased by $4.8 million, or 29.8%, to $21.0 million for the three months ended September 30, 2016 from $16.2 million for the same period of last year. Gross profit increased by $0.7 million, or 10.9%, to $6.9 million for the three months ended September 30, 2016 from $6.2 million for the same period of last year. Gross margin was 24.8% for the three months ended September 30, 2016, compared to 27.9% for the same period of last year.

 

Operating income

 

Selling expenses were relatively flat at $1.7 million for the three months ended September 30, 2016 compared with the same period of last year. General and administrative expenses increased by $1.0 million, or 91.3%, to $2.1 million for the three months ended September 30, 2016 from $1.1 million for the same period of last year. The increase in general and administrative expenses were due to professional fees related to being a public company as well as increase in administrative expenses at our new Allentown facility. Research and development expenses decreased slightly by 1.2% to $0.6 million for the three months ended September 30, 2016 from $0.7 million for the same period of last year. As a result, total operating expenses increased by $1.0 million, or 28.0%, to $4.5 million for the three months ended September 30, 2016 from $3.5 million for the same period of last year.

 

Operating income decreased by $0.3 million, or 11.4%, to $2.4 million for the three months ended September 30, 2016 from $2.7 million for the same period of last year. Operating margin was 8.6% for the three months ended September 30, 2016, compared to 12.1% 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 decreased by $0.8 million, or 25.4%, to $2.3 million for the three months ended September 30, 2016 from $3.1 million for the same period of last year. The decrease was primarily due to higher general and administrative expenses more than offsetting increases in revenues and gross profit.

 

Provision for income taxes was $0.3 million for the three months ended September 30, 2016, compared to $0.4 million for the same period of last year.

 

Net income

 

Net income decreased by $0.7 million, or 25.5%, to $2.0 million for the three months ended September 30, 2016 from $2.7 million for the same period of last year. After deduction of non-controlling interest, net income attributable to Fuling Global was $2.1 million, or $0.13 per basic and diluted share, for the three months ended September 30, 2016, compared to $2.7 million, or $0.23 per basic and diluted share, for the same period of last year.

 

Year-to-Date 2016 Financial Results

 

   For the Nine Months Ended September 30, 
($ millions, except per share data)  2016   2015   % Change 
Revenues  $73.1   $68.2    7.2%
Gross profit  $19.5   $18.3    6.3%
Gross margin   26.6%   26.9%   -0.3 pp 
Operating income  $7.2   $8.0    -10.2%
Operating margin   9.9%   11.8%   -1.9 pp 
Net income attributable to Fuling Global  $7.5   $7.0    7.7%
Diluted earnings per share  $0.48   $0.60    -20.2%

*Note: pp represents percentage points

 

 3 

 

 

Revenues

 

For the nine months ended September 30, 2016, total revenues increased by $4.9 million, or 7.2%, to $73.1 million from $68.2 million for the same period of last year. Overall sales volume increased by 6,029 tons, or 25.4%, to 29,791 tons for the nine months ended September 30, 2016 from 23,762 tons for the same period of last year. The increase in sales volume was across the board with cups and plates growing over 50%. Blended ASP decreased by $0.42 per kilogram, or 14.5%, to $2.45 per kilogram for the nine months ended September 30, 2016 from $2.87 per kilogram for the same period of last year. The decrease in ASP was across most of our product categories as a result of decline in crude oil prices.

 

Cutlery, straws, cups and plates, and other products accounted for 57.7%, 10.3%, 25.0%, and 7.0% of total revenues for the nine months ended September 30, 2016, compared to 57.7%, 13.6%, 24.3%, and 4.4% for the same period of last year, respectively.

 

   For the Nine Months Ended September 30, 
   2016   2015   Y/Y Change 
   Revenues
($'000)
   % of
Total
   Revenues
($'000)
   % of
Total
   Amount
($'000)
   % 
Cutlery  $42,184    57.7%  $39,355    57.7%  $2,829    7.2%
Straws   7,503    10.3%   9,280    13.6%   (1,777)   -19.1%
Cups and plates   18,261    25.0%   16,535    24.3%   1,727    10.4%
Others   5,125    7.0%   2,985    4.4%   2,140    71.7%
Total  $73,073    100.0%  $68,154    100.0%  $4,919    7.2%

 

On a geographical basis, sales in Fuling Global's largest market, the U.S., increased by $2.7 million, or 4.2%, to $65.6 million for the nine months ended September 30, 2016 from $62.9 million for the same period of last year. Sales in Europe increased by $1.6 million, or 161.6%, to $2.5 million. Sales in China were $2.6 million for the nine months ended September 30, 2016, compared to $0.4 million for the same period of last year. Sales in Canada were $1.2 million for the nine months ended September 30, 2016, up 45.5% from the same period of last year.

 

   For the Nine Months Ended September 30, 
   2016   2015   Y/Y Change 
   Revenues
($'000)
   % of
Total
   Revenues
($'000)
   % of
Total
   Amount
($'000)
   % 
U.S.  $65,571    89.7%  $62,916    92.3%  $2,655    4.2%
Europe   2,528    3.5%   966    1.4%   1,561    161.6%
Canada   1,156    1.6%   795    1.2%   362    45.5%
China   2,578    3.5%   442    0.6%   2,136    482.6%
Others   1,240    1.7%   3,035    4.5%   (1,795)   -59.2%
Total  $73,073    100.0%  $68,154    100.0%  $4,919    7.2%

 

 4 

 

 

Gross profit

 

Total cost of goods sold increased by $3.8 million, or 7.6%, to $53.6 million for the nine months ended September 30, 2016 from $49.8 million for the same period of last year. Gross profit increased by $1.2 million, or 6.3%, to $19.5 million for the nine months ended September 30, 2016 from $18.3 million for the same period of last year. Gross margin was 26.6% for the nine months ended September 30, 2016, compared to 26.9% for the same period of last year.

 

Operating income

 

Selling expenses decreased by $0.1 million, or 1.6%, to $4.8 million for the nine months ended September 30, 2016 from $4.9 million for the same period of last year. The decrease in selling expenses was primarily due to decrease in ocean freight costs partially offset by increase in commissions. General and administrative expenses increased by $1.9 million, or 49.8%, to $5.7 million for the nine months ended September 30, 2016 from $3.8 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 nine months of this year, we expect more moderate increases in general and administrative expenses with increasing productivity and operating efficiency for the rest of this year. Research and development expenses increased by $0.1 million, or 9.7%, to $1.7 million for the nine months ended September 30, 2016 from $1.6 million for the same period of last year.

 

As a result, total operating expenses increased by $2.0 million, or 19.2%, to $12.2 million for the nine months ended September 30, 2016 from $10.3 million for the same period of last year.

 

Operating income decreased by $0.8 million, or 10.2%, to $7.2 million for the nine months ended September 30, 2016 from $8.0 million for the same period of last year. Operating margin was 9.9% for the nine months ended September 30, 2016, compared to 11.8% 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 $0.6 million, or 7.9%, to $8.8 million for the nine months ended September 30, 2016 from $8.2 million for the same period of last year. The increase was primarily due to higher subsidy income received from local government in the second quarter of this year partially offset by slightly lower operating income.

 

Provision for income taxes was $1.24 million for the nine months ended September 30, 2016, compared to $1.16 million for the same period of last year.

 

Net income

 

Net income increased by $0.6 million, or 8.0%, to $7.6 million for the nine months ended September 30, 2016 from $7.0 million for the same period of last year. This increase was primarily due to: 1) $1.7 million increase in subsidiary income; 2) $1.2 million increase in gross profit; and 3) partially offset by $2.0 million increase in operating expenses.

 

 5 

 

 

After deduction of non-controlling interest, net income attributable to Fuling Global increased by $0.5 million, or 7.7%, to $7.5 million for the nine months ended September 30, 2016 from $7.0 million for the same period of last year.

 

Basic and diluted earnings per share were $0.48 for the nine months ended September 30, 2016, compared to $0.60 for the same period of last year.

 

Financial Condition

 

As of September 30, 2016, the Company had cash and cash equivalents, restricted cash, and certificates of deposits of $2.3 million, $2.6 million, and $0.1 million, respectively, compared to $15.6 million, $2.1 million, and $3.2 million, respectively, at the end of 2015. Short-term borrowing and bank notes payable were $15.8 million and $3.1 million, respectively, as of September 30, 2016, compared to $15.3 million and $2.8 million, respectively, at the end of 2015.

 

Net cash provided by operating activities was $1.5 million for the nine months ended September 30, 2016, compared to $3.0 million for the same period of last year.

 

Net cash used in investing activities was $16.1 million for the nine months ended September 30, 2016, compared to $3.3 million for the same period of last year.

 

Net cash provided by financing activities was $1.5 million for the nine months ended September 30, 2016, compared to $1.5 million for the same period of last year.

 

Recent Update

 

On November 5, 2016, the Company held its 2016 annual meeting of shareholders (the “Annual Meeting”) at the Company’s Allentown facility at 6690 Grant Way, Allentown, PA 18106. At the Annual Meeting, the Company’s shareholders 1) Elected five directors, Ms. Guilan Jiang, Ms. Sujuan Zhu, Mr. Jian Cao, Mr. Hong(Simon) He and Mr. Donald T. Cunningham, Jr., to serve on the Board of Directors of the Company until the 2017 annual meeting of stockholders; and 2) Ratified the appointment of Friedman LLP as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2016.

 

About Fuling Global Inc.

 

Fuling Global Inc. ("Fuling Global") is an environmentally-friendly specialized producer and distributor of plastic servicewares, 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/

 

 6 

 

 

FULING GLOBAL INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

    September 30,     December 31,  
    2016     2015  
             
ASSETS
Current Assets:            
Cash and cash equivalents   $ 2,254,051     $ 15,573,554  
Restricted cash     2,581,118       2,129,162  
Certificates of deposit     102,902       3,186,892  
Accounts receivable, net     16,875,831       14,725,030  
Advances to supplier, net     729,040       312,328  
Inventories, net     16,051,742       13,493,685  
Prepaid expenses and other current assets     3,065,000       425,477  
Total Current Assets     41,659,684       49,846,128  
                 
Property, plant and equipment, net     29,956,045       21,556,866  
Intangible assets, net     9,885,970       1,778,264  
Prepayments for construction and equipment purchase     3,451,507       2,003,400  
Other non-current assets     166,239       225,500  
Deferred tax assets     467,177       319,252  
Total Assets   $ 85,586,622     $ 75,729,410  
                 
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                 
Current Liabilities:                
Short term borrowings   $ 15,783,833     $ 15,264,827  
Bank notes payable     3,148,595       2,839,783  
Advances from customers     658,849       597,226  
Accounts payable     12,503,674       10,972,851  
Accrued and other liabilities     2,136,670       1,808,135  
Taxes payable     383,406       743,147  
Loan from third parties     -       184,851  
Total Current Liabilities     34,615,027       32,410,820  
                 
Long term borrowing     843,715       -  
Total  Liabilities     35,458,742       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 September 30, 2016 and December 31, 2015     15,733       15,733  
Additional paid in capital     29,825,878       29,722,127  
Statutory reserve     3,748,541       2,868,844  
Retained earnings     16,795,586       10,182,213  
Accumulated other comprehensive income (loss)     (460,764 )     392,450  
Total Fuling Global Inc.'s equity     49,924,974       43,181,367  
                 
Noncontrolling interest     202,906       137,223  
Total Shareholders' Equity     50,127,880       43,318,590  
                 
Total Liabilities and Shareholders' Equity   $ 85,586,622     $ 75,729,410  

 

 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 7 

 

 

FULING GLOBAL INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME

(UNAUDITED)

 

   For the Three Months Ended
September 30,
   For the Nine Months Ended
September 30,
 
   2016    2015   2016   2015 
                 
Revenues  $27,900,613   $22,408,759   $73,072,804   $68,154,114 
Cost of goods sold   20,976,558    16,164,344    53,611,804    49,843,677 
Gross Profit   6,924,055    6,244,415    19,461,000    18,310,437 
    24.8%   27.9%   26.6%   26.9%
Operating Expenses                    
Selling expenses   1,728,965    1,754,821    4,812,765    4,891,326 
General and administrative expenses   2,143,300    1,120,577    5,692,015    3,798,716 
Research and development expenses   642,606    650,570    1,736,919    1,583,449 
Total operating expenses   4,514,871    3,525,968    12,241,699    10,273,491 
                     
Income from Operations   2,409,184    2,718,447    7,219,301    8,036,946 
    8.63%   12.13%   9.9%   11.8%
Other Income (Expense):                    
Interest income   7,507    30,337    25,086    49,298 
Interest expense   (187,503)   (268,890)   (615,878)   (906,794)
Subsidy income   196,447    213,357    2,054,436    367,779 
Foreign currency transaction gain (loss)   (287,642)   459,360    134,885    754,923 
Other expense, net   171,055    (56,427)   (21,940)   (147,232)
Total other income (expense), net   (100,136)   377,737    1,576,589    117,974 
                     
Income Before Income Taxes   2,309,048    3,096,184    8,795,890    8,154,920 
                     
Provision for Income Taxes   308,594    410,456    1,237,137    1,155,524 
                     
Net Income  $2,000,454   $2,685,728   $7,558,753   $6,999,396 
                     
Less: net income (loss) attributable to noncontrolling interest   (70,153)   (44,826)   65,683    40,612 
                     
Net income attributable to Fuling Global Inc.   2,070,607    2,730,554    7,493,070    6,958,784 
                     
Other Comprehensive Income                    
Foreign currency translation loss   (271,722)   (782,876)   (853,214)   (782,078)
Comprehensive income attributable to Fuling Global Inc.  $1,798,885   $1,947,678   $6,639,856   $6,176,706 
                     
Earnings per share                    
Basic and diluted  $0.13   $0.23   $0.48   $0.60 
                     
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  $-   $-   $-   $- 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

  

 8 

 

 

FULING GLOBAL INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

   For the Nine Months Ended September 30, 
   2016   2015 
CASH FLOWS FROM OPERATING ACTIVITIES        
Net income  $7,558,753   $6,999,396 
Adjustments to reconcile net income to net cash provided by operating activities:          
Stock based compensation   103,752    - 
Deferred tax benefit   (147,925)   - 
Depreciation and amortization   2,025,892    1,650,944 
Bad debt provisions   93,672    57,193 
Inventory reserve   38,592    - 
Gain on disposal of fixed assets   (12,811)   - 
Changes in operating assets:          
Accounts receivable   (2,390,053)   778,619 
Advances to suppliers   (2,051,239)   (1,101,282)
Inventories   (2,755,941)   (714,486)
Other assets   (2,667,035)   543,807 
Changes in operating liabilities:          
Accounts payable   1,633,617    (4,967,288)
Advance from customers   76,931    (85,926)
Taxes payable   (345,894)   42,374 
Accrued and other liabilities   329,547    (250,549)
Net cash (used in) provided by operating activities   1,489,859    2,952,802 
           
CASH FLOWS FROM INVESTING ACTIVITIES          
Purchase of property and equipment   (3,115,264)   (2,002,241)
Payments of construction in progress   (6,113,768)   - 
Cash receipts from disposal property and equipment   19,483    - 
Cash receipts from certificates of deposit   3,039,711    - 
Prepayments for construction and equipment purchase   (1,518,656)   (1,049,349)
Purchase of intangible assets   (8,378,405)   (266,947)
Net cash used in investing activities   (16,066,898)   (3,318,537)
           
CASH FLOWS FROM FINANCING ACTIVITIES          
Proceeds from short-term borrowings   20,633,979    36,160,712 
Repayments of short-term borrowings   (19,695,027)   (35,409,841)
Proceeds from long-term borrowings   843,715    - 
Proceeds from bank notes payable   4,839,723    4,084,697 
Repayments of bank notes payable   (4,449,644)   (4,714,801)
Repayment of third party borrowing   (182,365)   - 
Repayments of loans from related parties   -    (38,102)
Change of restricted cash   (515,902)   1,393,471 
Net cash provided by financing activities   1,474,479    1,476,136 
           
EFFECT OF EXCHANGE RATES CHANGES ON CASH   (216,942)   (100,598)
           
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS   (13,319,503)   1,009,803 
           
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD   15,573,554    1,399,714 
           
CASH AND CASH EQUIVALENTS, ENDING OF THE PERIOD  $2,254,051   $2,409,517 
           
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:          
Cash paid during the period for:          
Interest paid  $579,693   $967,248 
Income tax paid  $1,693,233   $1,168,820 
Non-cash investing activities:          
Transfer from construction in progress to fixed assets  $876,753   $1,129,339 
Transfer from advance payments to fixed assets  $1,581,582   $918,858 

  

 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

9