XI'AN, China, Nov. 20, 2017 /PRNewswire/ -- Future FinTech
Fruit Group Inc. (NASDAQ: FTFT) ("Future FinTech" or "the
Company"), a financial technology company and integrated producer
of fruit-related products today announced its financial results for
the third quarter ended September 30,
2017.
"We experienced continued challenging market conditions in the
third quarter of 2017 in our fruit processing business that
resulted in a decline in customer demand attributable to a scarcity
of raw materials, intense market competition and a contraction in
our pricing power," said Mr. Hongke Xue, Chief Executive Officer of
Future FinTech. "In order to transition away from some of these
structural issues, we have begun to execute upon our strategic plan
to transition from a heavy asset agricultural company into a
lighter asset fintech company."
"We announced a corporate name change earlier this year to
reflect our commitment to fintech that we believe will drive
fintech solutions through the entire agricultural value chain as
well as offer opportunities for us in other sectors. Consistent
with this plan, we have made substantial investments in commodities
trading online platforms, developed strategic partnership with
online marketing entities and entered into a potentially lucrative
distribution agreement to market a men's healthcare product,"
continued Mr. Xue.
"We have also entered into a joint venture to form an asset
management company to purchase non-performing assets of financial
and non-financial institutions and entered into a series of
agreements to acquire financial assets. In relatively short order,
we are transforming our company into a leaner enterprise to
capitalize upon opportunities in the fintech sector that we believe
offer potentially strong returns on invested capital. Our goal is
to develop a world-class enterprise with a diversified revenue
stream that maximizes returns to our corporate shareholders," Mr.
Hongke Xue concluded.
Third Quarter 2017 Financial Results
Revenue. Revenue for the three months ended
September 30, 2017 was $4.4 million, a decrease of 58% as compared to
$10.6 million for the same period in
2016.
|
Third Quarter 2017
and 2016 Revenue by Segment
|
|
(In
$000's)
|
|
Three Months Ended
September 30,
|
|
2017
|
|
2016
|
|
% of
change
|
Concentrated apple
juice and apple aroma
|
562
|
|
348
|
|
61.5%
|
Concentrated
kiwifruit juice and kiwi puree
|
184
|
|
107
|
|
72.0%
|
Concentrated pear
juice
|
13
|
|
4,897
|
|
(99.7%)
|
Fruit juice
beverages
|
3,670
|
|
4,624
|
|
(20.6%)
|
Other
|
14
|
|
615
|
|
(97.7%)
|
Total
|
4,443
|
|
10,591
|
|
(58.0%)
|
Revenue by Segment.
Sales from apple-related products were $0.6
million for the three months ended September 30, 2017, as
compared to sales of $0.3 million for the same period of
2016. During the third quarter of 2017, the Company sold
approximately 738 tons of concentrated apple juice and apple aroma
as compared to 472 tons in the same period of 2016. Most of the
Company's concentrated apple juice was sold directly or indirectly
to the international market. Over the past three years, the
purchase price of fresh apples has increased but the sales price of
concentrated apple related products has remained low. Because of
the negative trends in the international market and lower operating
margins, our YingKou and Huludao Wonder factories did not operate
their apple juice production facilities in 2016 and for the nine
months ended September 30, 2017. This resulted in a
lower inventory of concentrated apple juice and required the
Company to purchase supply from third-party manufacturers to meet
demand.
Sales from concentrated kiwifruit juice and kiwifruit puree
were $0.2 million for the third quarter of 2017, as
compared to sales of $0.1 million for the same period of
2016. The increase was due to higher demand and an increase in
products sold in the current quarter as compared to the same period
of 2016.
Sales of concentrated pear juice were $0.01
million for the third quarter of 2017, as compared to sales
of $4.9 million for the same period of 2016. The decline
was due to a decrease in sales volume due to lower demand. The
Company sold 16 and 5,967 tons of concentrated pear juice during
the third quarters of 2017 and 2016, respectively.
Sales from our fruit juice beverages segment were $3.7
million for the third quarter of 2017, as compared to sales
of $4.6 million for the same period of 2016. The decline
was primarily due to a decrease in sales volume as a result of
heavy competition in the China market.
Sales from our others products segment were $0.01
million for the third quarter of 2017, as compared to sales
of $0.6 million for the same period of 2016. The Company
does not expect continued sales from the other products segment as
customers' orders related to this segment are currently small and
unpredictable.
Gross Loss. Consolidated gross loss was $0.08
million for the third quarter of 2017, as compared
to gross profit of $3.1
million for the same period of 2016. The consolidated gross
loss margin was 2% for the third quarter of 2017 as compared to a
gross profit margin 29% for the same period of 2016. The gross loss
margin of the concentrated apple juice segment for the third
quarter of 2017 was 5% as compared to a gross profit margin of 3%
for the same period of 2016. The decrease in gross profit margin
was mainly due to a decrease in the sales price of concentrated
apple juice in the international market. The gross profit margin of
the concentrated kiwifruit juice and kiwifruit puree segment for
the third quarters of 2017 and 2016 were 24% and 4%, respectively,
with the period-to-period increase primarily due to an increase in
the sales price of concentrated kiwifruit juice and kiwifruit puree
in the current quarter. The gross profit margin of the concentrated
pear juice segment for the third quarters of 2017 and 2016 were 8%
and 28%, respectively, with the period-to-period decrease primarily
due to the higher costs of raw materials. The gross loss margin of
the fruit juice beverages segment for the third quarter of 2017 was
3% as compared to a gross profit margin of 29% for the same period
of 2016. The decrease in profit margin was primarily due to lower
production during the third quarter of 2017, which resulted in a
higher ratio of fixed expenses to the unit cost of our products. In
addition, the unit selling prices of our products decreased in the
third quarter of 2017 as compared to the same period of 2016 as a
result of heavy market competition. The gross profit margin of
the other products segment for the third quarters of 2017 and 2016
was 50% and 53%, respectively.
|
Third Quarter 2017
and 2016 Gross Profit by Segment
|
|
(In
$000's)
|
|
Three Months Ended
September 30,
|
|
2017
|
|
2016
|
|
Gross
profit/loss
|
|
Gross
margin
|
|
Gross
profit/loss
|
|
Gross
margin
|
Concentrated apple
juice and apple aroma
|
(30)
|
|
(5%)
|
|
10
|
|
3%
|
Concentrated
kiwifruit juice and kiwi puree
|
45
|
|
24%
|
|
4
|
|
4%
|
Concentrated pear
juice
|
1
|
|
8%
|
|
1,367
|
|
28%
|
Fruit juice
beverages
|
(99)
|
|
(3%)
|
|
1,360
|
|
29%
|
Other
|
7
|
|
50%
|
|
324
|
|
53%
|
Total
|
(76)
|
|
(2%)
|
|
3,065
|
|
29%
|
Operating Expenses. Operating expenses for the three
months ended September 30, 2017 were $8.9 million as
compared to $2.1 million for the same period of 2016.
General and administrative (G&A) expenses increased
to $8.7 million for the third quarter of 2017 as compared
to $1.0 million for the same period of 2016, primarily
attributable to expenses of $6.0
million recorded in the third quarter of 2017 that are a
result of legal proceedings with China Cinda Asset Management Co.,
Ltd. Shaanxi Branch ("Cinda
Shaanxi Branch") associated with loan guarantees that the Company
entered into for two of its fruit suppliers. As the Company is in
the process of settlement discussions as to this matter, the
Company withdrew its non-enforcement request with the Xi'an
Intermediate People's Court without prejudice, although it can
refile the non-enforcement request at any time. Since the Company
may still be liable for what it deems to be loans from Cinda
Shaanxi Branch, it recorded expenses of $6.0
million as part of G&A expenses resulting from the
judicial enforcement proceedings in the third quarter of 2017. The
current quarter's G&A expenses also increased due to the
amortization of leasing expenses associated with the kiwi orchard
that the Company leased in Mei County and Yidu City. The Company
has amortized $0.7 million as leasing expenses for the
three months ended September 30, 2017.
Selling expenses decreased to $0.2 million for the
third quarter of 2017, as compared to $1.1 million for
the same period of in 2016, mainly due to a decrease in shipping
and handling expenses due to the decrease in sales volume in the
current quarter.
Net Loss and Loss per Share. Net loss attributable to
Future FinTech shareholders for the third quarter of 2017
was $9.3 million, as compared to a net loss of $0.4
million for the same period of 2016. Diluted loss per share
from continued operations was $1.86 for the third quarter
of 2017 as compared to diluted loss per share from continued
operations of $0.28 for the same period of 2016.
Financial Condition
As of September 30, 2017, the
Company had $4.5 million in cash and
cash equivalents, up from $1.1
million as of fiscal year end 2016. The Company's working
capital was $15.2 million. As of
September 30, 2017, the Company had
total liabilities of $100.7 million
which included $30.8 million in
short-term bank loans and $17.3
million in capital lease obligations. As of September 30, 2017, stockholders' equity
attributable to Future FinTech was $129.6 million as of September 30, 2017 compared to $135.0 million as of December 31, 2016.
During the nine months ended September 30, 2017, net cash
provided by the Company's operating activities was $1.5
million, as compared to net cash provided by operating activities
of $34.1 million for the same period of 2016. During the
nine months ended September 30, 2017 and September
30, 2016, the Company's investing activities used net cash
of $0.2 million and $92.9 million, respectively.
During the nine months ended September 30,
2107, we made a refundable deposit of about $30 million pursuant to a letter of intent to
purchase the kiwifruits orchard, $37.4
million for the lease of kiwifruits orchard in Mei County
and $24 million for the lease of an
orange orchard in Yidu City. During the nine months
ended September 30, 2017 and September 30, 2016, the
Company's financing activities generated net cash inflows
of $6.4 million and $24.0
million, respectively. The decrease in cash inflow from
financing activities was mainly due to a decrease in capital
contributions of $11.5 million.
Project Updates
The Company is developing an orange processing and distribution
center pursuant to its investment/service agreement with the Yidu
Municipal People's Government in Hubei Province, China.
Pursuant to the agreement, the Company will be responsible for an
investment amount of approximately $48 million which will
be mainly used to establish the distribution center and the orange
processing facility on project land of approximately 280 mu
(approximately 46 acres). Also, the Company and the Yidu Municipal
People's Government has agreed to discuss the investment amount and
location associated with establishing an R&D center and an
orange plantation. On November 23, 2015, the Company started
the construction of the Yidu project. As the Chinese government
recently tightened environmental regulations, the Company is in the
process of adapting to the new standards and the project has been
delayed. Although the schedule for completion could change, the
Company currently plans to finish the construction of
infrastructure to include an office building, R&D center, fruit
juice production facility, cold storage facility and other
construction work in the second quarter of 2018. Although the
schedule for completion could change, the distribution center is
currently planned to be completed by the second quarter of 2018,
and the orange plantation is currently planned to be operational in
the second quarter of 2018.
The Company is developing a kiwi processing and trading center
pursuant to its investment agreement with the Managing Committee of
Mei County National Kiwi Fruit Wholesale Trading Center, which has
been authorized by the People's Government of Mei
County, China. Pursuant to the agreement, the Company will be
responsible for construction and financing with an investment
amount of approximately $72 million for buildings and
equipment on a total planned area of 286 mu (approximately 47
acres). As of the date of this report, the Company is in
the process of building fruit juice production lines, a vegetable
and fruit flash freeze facility, an R&D center and an office
building. Although the schedule for completion could change, the
Company currently plans to complete the construction of these
facilities in the fourth quarter of 2017.
As of the date of this release, the Mei County National Kiwi
Fruit Wholesale Trading Center has started normal operations. There
are a number of enterprises operating in the trading center
including 12 express delivery companies, four logistic companies,
four on-line sales companies, two packing companies and three
agriculture companies. In addition, all government departments that
are relevant to the operations of the Mei County National Kiwi
Fruit Wholesale Trading Center have moved into the trading center.
Currently Mei County National Kiwi Fruit Wholesale Trading is
building a data platform for agricultural products in the western
part of China, an agricultural business incubator, and
online-to-offline agricultural products trading center. To meet
this requirement, the Company is upgrading its software and the
project has been delayed. The Company is expected to have completed
its investment in the trading center in the fourth quarter of 2017,
and believes that it will generate income from the trading center
through various means, such as rental income from cold storage and
shops, and income from logistic services.
As part of the Mei County National Kiwi Fruit Wholesale Trading
Center project, on April 19, 2013, the Company established
Shaanxi Guoweimei Kiwi Deep Processing Co., Ltd. to engage in the
business of producing kiwi fruit juice, kiwi puree, cider
beverages, and related products. The total estimated investment
is RMB 294 million (or approximately $47.6 million).
As the Chinese government recently tightened environment
regulations, the Company is in the process of adapting to the new
standards and the project has been delayed. The Company is building
fruit juice production lines, a vegetable and fruit flash freeze
facility, an R&D center and an office building. Although the
schedule for completion could change, the Company currently plans
to complete construction in the second quarter of 2018.
The Company entered into a Letter of Intent with the People's
Government of Suizhong County fruit to establish a fruit and
vegetable industry chain and processing zone in Suizhong
County, Liaoning Province, China. The Company has made
partial payment to acquire the land use right from the local
government, purchase equipment and build facilities. As of the date
of this release, the Company has finished construction of an office
building, a dormitory, a refrigeration storage facility and a
warehouse. However, due to heavy competition in the concentrated
apple juice business in China, the Company's Huludao Wonder
and Yingkou facilities in Liaoning
have had no production over the past two years, and construction
work on this project is currently suspended.
Recent Events
On November 6, 2017, the Company announced that on
November 2, 2017, one of its wholly
owned subsidiaries, Hedetang Foods (China) Co., Ltd. ("Hedetang"), entered into a
series of agreements to acquire financial assets (collectively, the
"Acquisition Agreements"). The financial assets have been assessed
by an appraisal firm, and three of four of the financial assets are
either guaranteed by a third-party company or secured by
land use rights. After the consummation of the purchases, the
Company has the option to hold, collect or resell these assets at
any time. The aggregate capital cost of the four separate transfer
agreements total RMB 181,006,980 (or
approximately $27,344,096), of which RMB 108,604,188 (or
approximately $16,437,248) will be paid in cash and RMB
72,402,792 (or approximately $10,937,638) will be paid in
shares of common stock of the Company (the "Share Payment") of the
Company.
In connection with the Acquisition Agreements and to provide
funding for their consummation, on November
3, 2017, Future FinTech entered into a Share Purchase
Agreement (the "Share Purchase Agreement") with Zeyao Xue pursuant
to which Future FinTech agreed to sell 11,362,159 shares of its
common stock to Zeyao Xue for an aggregate purchase price of
$16,437,248.50. Zeyao Xue currently
beneficially owns 2,337,155 shares, or 45.2% of Future FinTech's
issued and outstanding common stock and Yongke Xue, a member of the Board of Directors
of Future FinTech, is Zeyao Xue's father. Additional details of the
Share Purchase Agreement can be accessed via Form 8-K as filed with
the Securities and Exchange Commission ("SEC") on its website
(www.sec.gov) on November 6,
2017.
The Share Payment associated with the Acquisition Agreements is
contingent on Future FinTech receiving shareholder approval at a
Special Shareholders Meeting to increase its authorized common
stock to 60,000,000 shares and to approve the Share Payment
issuance under the Acquisition Agreements. Additional details of
the Acquisition Agreements can be accessed via Form 8-K as filed
with the SEC on its website on November
6, 2017.
On November 6, 2017, the Company
filed a Schedule 14A to solicit shareholders' proxies for a special
meeting of the Company's shareholders for the consideration of a
corporate restructuring as disclosed in a preliminary proxy
statement that would entail a spin-off the Company's wholly-owned
subsidiaries, SkyPeople Foods Holdings Limited (BVI) ("SkyPeople
BVI") and FullMart Holdings Limited (BVI) ("FullMart"), through a
pro rata distribution of the ordinary shares of each of SkyPeople
BVI and FullMart to holders of the Company's common stock at the
close of business on December 11,
2017, the record date. The Special Shareholders Meeting is
expected to be held on January 30,
2018. This information can be accessed via the SEC website
as well.
About Future FinTech Group Inc.
Future FinTech Group Inc. ("Future FinTech" or the "Company"),
is an agricultural products company that utilizes financial
technology solutions to operate and grow its businesses. The
Company is engaged in the production and sales of fruit juice
concentrates, fruit beverages, and other fruit related products
in China and certain overseas markets. The Company's
fruit juice concentrates are sold to domestic customers and
exported directly or via distributors. Its fruit juice products,
"Hedetang" and "SkyPeople," are healthy and nutritious beverages
and sold primarily in China. The Company intends to vertically
integrate its operations through its long-term lease and pending
acquisition of agricultural orchards that are located in highly
productive growing areas in China. The Company leverages
e-commerce and new technology platforms and is building a regional
agricultural products commodities market with the goal to become a
leader in agricultural finance technology. For more information,
please visit http://www.ftft.top/.
Safe Harbor Statement
Certain of the statements made in this press release are
"forward-looking statements" within the meaning and protections of
Section 27A of the Securities Act of 1933, as amended and Section
21E of the Securities Exchange Act of 1934, as amended, or the
Exchange Act. Forward-looking statements include statements with
respect to our beliefs, plans, objectives, goals, expectations,
anticipations, assumptions, estimates, intentions, and future
performance, and involve known and unknown risks, uncertainties and
other factors, which may be beyond our control, and which may cause
the actual results, performance, capital, ownership or achievements
of the Company to be materially different from future results,
performance or achievements expressed or implied by such
forward-looking statements. All statements other than statements of
historical fact are statements that could be forward-looking
statements. You can identify these forward-looking statements
through our use of words such as "may," "will," "anticipate,"
"assume," "should," "indicate," "would," "believe," "contemplate,"
"expect," "estimate," "continue," "plan," "point to," "project,"
"could," "intend," "target" and other similar words and expressions
of the future.
All written or oral forward-looking statements attributable
to us are expressly qualified in their entirety by this cautionary
notice, including, without limitation, those risks and
uncertainties described in our annual report on Form 10-K for the
year ended December 31,
2016 and otherwise in our SEC reports and
filings, including the final prospectus for our offering. Such
reports are available upon request from the Company, or from the
Securities and Exchange Commission, including through the SEC's
Internet website at http://www.sec.gov. We have
no obligation and do not undertake to update, revise or correct any
of the forward-looking statements after the date hereof, or after
the respective dates on which any such statements otherwise are
made.
-Financial Tables Follow-
FUTURE FINTECH
GROUP INC.
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Audited)
|
CURRENT
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
|
4,545,501
|
|
$
|
1,143,585
|
Accounts receivable,
net of allowance of $111,942 as of September 30, 2017 and December
31, 2016, respectively
|
|
506,149
|
|
|
7,325,773
|
Other
receivables
|
|
31,493,950
|
|
|
28,417,194
|
Inventories
|
|
4,236,014
|
|
|
3,041,300
|
Deferred tax
assets
|
|
3,566,442
|
|
|
3,566,442
|
Advances to suppliers
and other current assets
|
|
54,230,726
|
|
|
58,132,189
|
TOTAL CURRENT
ASSETS
|
|
98,578,782
|
|
|
101,626,483
|
|
|
|
|
|
|
PROPERTY, PLANT AND
EQUIPMENT, NET
|
|
85,356,432
|
|
|
81,523,569
|
LAND USE RIGHT,
NET
|
|
32,912,504
|
|
|
31,854,360
|
LONG TERM
ASSETS
|
|
2,915,518
|
|
|
2,789,390
|
DEPOSITS
|
|
44,969,613
|
|
|
43,867,228
|
TOTAL
ASSETS
|
$
|
264,732,849
|
|
$
|
261,661,030
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
Accounts
payable
|
$
|
22,108,242
|
|
$
|
16,569,988
|
Accrued
expenses
|
|
29,985,762
|
|
|
27,449,664
|
Income tax
payable
|
|
-
|
|
|
3,590,084
|
Advances from
customers
|
|
470,230
|
|
|
696
|
Short-term bank
loans
|
|
30,836,535
|
|
|
29,364,279
|
TOTAL CURRENT
LIABILITIES
|
|
83,400,769
|
|
|
76,974,711
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES
|
|
|
|
|
|
Obligations under
capital leases
|
|
17,301,683
|
|
|
14,494,003
|
TOTAL NON-CURRENT
LIABILITIES
|
|
17,301,683
|
|
|
14,494,003
|
TOTAL
LIABILITIES
|
|
100,702,452
|
|
|
91,468,714
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Future Fintech Group
Inc., Stockholders' equity
|
|
|
|
|
|
Series B Preferred
stock, $0.001 par value; 10,000,000 shares authorized; None issued
and outstanding as of September 30, 2017 and December 31, 2016,
respectively
|
|
-
|
|
|
-
|
Common stock, $0.001
par value; 8,333,333 shares authorized; 5,173,187 and 4,061,090
shares issued and outstanding as of September 30, 2017 and December
31, 2016, respectively
|
|
5,173
|
|
|
4,061
|
Additional paid-in
capital
|
|
108,020,656
|
|
|
105,366,887
|
Retained
earnings
|
|
85,776,599
|
|
|
100,237,011
|
Accumulated other
comprehensive loss
|
|
(64,240,263)
|
|
|
(70,579,747)
|
Total Future FinTech
Group Inc. stockholders' equity
|
|
129,562,165
|
|
|
135,028,212
|
Non-controlling
interests
|
|
34,468,232
|
|
|
35,164,104
|
TOTAL
EQUITY
|
|
170,925,778
|
|
|
170,192,316
|
TOTAL LIABILITIES AND
EQUITY
|
$
|
264,732,849
|
|
$
|
261,661,030
|
|
The accompanying
notes in the third quarter 10-Q as filed with the SEC are an
integral part of these condensed consolidated financial
statements.
|
FUTURE FINTECH
GROUP INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
(Unaudited)
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenue
|
$
|
4,443,710
|
|
$
|
10,590,973
|
|
$
|
10,179,416
|
|
$
|
26,256,579
|
Cost of goods
sold
|
|
4,519,587
|
|
|
7,525,561
|
|
|
8,427,936
|
|
|
19,937,371
|
Gross
profit
|
|
(75,877)
|
|
|
3,065,412
|
|
|
1,751,480
|
|
|
6,319,208
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
8,660,710
|
|
|
1,009,520
|
|
|
14,593,052
|
|
|
2,696,577
|
Selling
expenses
|
|
221,684
|
|
|
1,107,677
|
|
|
727,641
|
|
|
2,719,507
|
Total operating
expenses
|
|
8,882,394
|
|
|
2,117,197
|
|
|
15,320,693
|
|
|
5,416,084
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
(8,958,271)
|
|
|
948,215
|
|
|
(13,569,213)
|
|
|
903,124
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
-
|
|
|
13,747
|
|
|
2,032
|
|
|
160,370
|
Subsidy
income
|
|
573,040
|
|
|
(8,916)
|
|
|
915,164
|
|
|
541,230
|
Interest
expenses
|
|
(112,743)
|
|
|
(688,904)
|
|
|
(738,705)
|
|
|
(1,688,263)
|
Other income
(expenses)
|
|
2,238,382
|
|
|
(69,557)
|
|
|
2,098,173
|
|
|
(6,780)
|
Total other income
(expenses)
|
|
2,698,679
|
|
|
(753,630)
|
|
|
2,276,664
|
|
|
(993,443)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income tax
|
|
(6,259,592)
|
|
|
194,585
|
|
|
(11,292,549)
|
|
|
(90,319)
|
Income tax
provision
|
|
(1,825)
|
|
|
250,453
|
|
|
258,260
|
|
|
884,282
|
Net loss
|
|
(6,257,767)
|
|
|
(55,868)
|
|
|
(11,550,809)
|
|
|
(974,601)
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net loss
attributable to non-controlling interests
|
|
(2,971,298)
|
|
|
(364,742)
|
|
|
(2,767,477)
|
|
|
(127,278)
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS ATTRIBUTABLE
TO FUTURE FINTECH GROUP, INC.
|
|
(9,229,065)
|
|
|
(420,610)
|
|
|
(14,318,286)
|
|
|
(1,101,879)
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
Operations (Note 11)
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
discontinued operations
|
|
(45,418)
|
|
|
-
|
|
|
(142,126)
|
|
|
-
|
NET LOSS
ATTRIBUTABLE TO FUTURE FINTECH GROUP, INC.
|
|
(9,274,483)
|
|
|
(420,610)
|
|
|
(14,460,412)
|
|
|
(1,101,879)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
9,435,919
|
|
|
228,830
|
|
|
11,674,155
|
|
|
1,215,660
|
Comprehensive income
(loss)
|
|
3,132,734
|
|
|
172,962
|
|
|
(18,780)
|
|
|
241,059
|
Comprehensive income
(loss) attributable to non-controlling interests
|
|
1,195,760
|
|
|
(24,844)
|
|
|
452,317
|
|
|
8,613,955
|
COMPREHENSIVE INCOME
(LOSS) ATTRIBUTABLE TO FUTURE FINTECH GROUP, INC.
|
$
|
4,328,494
|
|
$
|
148,119
|
|
$
|
433,537
|
|
$
|
8,855,014
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per share
from continued operations
|
|
(1.89)
|
|
|
(0.28)
|
|
|
(3.01)
|
|
|
(0.28)
|
Basic
loss per share from discontinued operations
|
|
(0.01)
|
|
|
-
|
|
|
(0.03)
|
|
|
-
|
Basic loss per share
from net income
|
|
(1.90)
|
|
|
(0.28)
|
|
|
(3.04)
|
|
|
(0.28)
|
Diluted loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per
share from continued operations
|
|
(1.86)
|
|
|
(0.28)
|
|
|
(2.97)
|
|
|
(0.28)
|
Diluted loss per
share from discontinued operations
|
|
(0.01)
|
|
|
-
|
|
|
(0.03)
|
|
|
-
|
Diluted loss per
share from net income
|
|
(1.87)
|
|
|
(0.28)
|
|
|
(3.00)
|
|
|
(0.28)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
4,751,552
|
|
|
3,887,435
|
|
|
4,751,552
|
|
|
3,887,435
|
Diluted
|
|
4,814,052
|
|
|
3,887,435
|
|
|
4,814,052
|
|
|
3,887,435
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes in the third quarter 10-Q as filed with the SEC are an
integral part of these condensed consolidated financial
statements.
|
FUTURE FINTECH
GROUP INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
For the nine months ended
September 30,
|
|
2017
|
|
|
2016
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
Net income
(loss)
|
$
|
(14,460,412)
|
|
|
$
|
(1,101,879)
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
|
|
|
Minority
interest
|
|
2,767,477
|
|
|
|
127,278
|
Depreciation and
amortization
|
|
2,341,178
|
|
|
|
3,739,607
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
Accounts
receivable
|
|
6,908,544
|
|
|
|
42,466,850
|
Notes
receivable
|
|
-
|
|
|
|
(986,502)
|
Other
receivable
|
|
(1,248,917)
|
|
|
|
(2,643,904)
|
Advances to suppliers
and other current assets
|
|
5,384,278
|
|
|
|
(15,639,125)
|
Inventories
|
|
(1,021,369)
|
|
|
|
(1,398,802)
|
Accounts
payable
|
|
(115,060)
|
|
|
|
10,522,211
|
Accrued
expenses
|
|
1,250,827
|
|
|
|
347,377
|
Income tax
payable
|
|
(796,119))
|
|
|
|
(1,134,706)
|
Advances from
customers
|
|
453,592
|
|
|
|
(187,952)
|
Net cash
provided by (used in) operating activities
|
|
1,464,019
|
|
|
|
34,110,453
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
|
(1,042,191)
|
|
|
|
(28,386)
|
Proceeds from
disposal of plant, property and equipment
|
|
-
|
|
|
|
334,236
|
Prepayment for other
assets
|
|
851,294
|
|
|
|
(91,914,922)
|
Purchase of
intangible assets
|
|
-
|
|
|
|
(1,321,964)
|
Net cash used in
investing activities
|
|
(190,897)
|
|
|
|
(92,931,036)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Issue of common
stock
|
|
4,880,921
|
|
|
|
16,377,868
|
Decrease in
restricted cash
|
|
-
|
|
|
|
3,030,579
|
Proceeds from
short-term notes
|
|
139,599
|
|
|
|
136,376
|
Repayment of
short-term bank loans
|
|
(690,739)
|
|
|
|
(2,103,222)
|
Repayment of long
term debt
|
|
-
|
|
|
|
(1,216,791)
|
(Repayment) proceeds
from related party loan
|
|
2,079,369
|
|
|
|
(239,928)
|
Payment for capital
lease
|
|
-
|
|
|
|
7,982,400
|
Net cash provided by
financing activities
|
|
6,409,150
|
|
|
|
23,967,282
|
|
|
|
|
|
|
|
Effect of change in
exchange rate
|
|
(4,280,356)
|
|
|
|
(12,621,060)
|
|
|
|
|
|
|
|
NET INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
3,401,916
|
|
|
|
(47,474,361)
|
Cash and cash
equivalents, beginning of period
|
|
1,143,585
|
|
|
|
50,006,914
|
Cash and cash
equivalents, end of period
|
$
|
4,545,501
|
|
|
$
|
2,532,553
|
|
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURES OF CASH FLOW INFORMATION
|
|
|
|
|
|
|
Cash paid for
interest
|
$
|
737,651
|
|
|
$
|
1,176,401
|
Cash paid for income
taxes
|
$
|
258,260
|
|
|
$
|
884,282
|
|
|
|
|
|
|
|
SUPPLEMENTARY
DISCLOSURE OF SIGNIFICANT NON-CASH TRANSACTION
|
|
|
|
|
|
|
Transferred from
other assets to property, plant and equipment and construction
in process
|
$
|
851,294
|
|
|
$
|
91,914,922
|
|
|
|
|
|
|
|
The accompanying
notes in the third quarter 10-Q as filed with the SEC are an
integral part of these condensed consolidated financial
statements.
|
For more information, please contact:
COMPANY
Cindy Liu, Investor Relations
Manager
Future FinTech Group Inc.
Tel: China + 86 -
29-8187-8277
Email: SkyPeople_annie@163.com
Web: http://www.ftft.top
View original
content:http://www.prnewswire.com/news-releases/future-fintech-reports-third-quarter-2017-financial-results-300559742.html
SOURCE Future FinTech Group Inc.