Tantech Reports Full Year 2021 Financial Results
Tantech Holdings Ltd (NASDAQ: TANH) reported a 30.7% increase in revenue for 2021, reaching $55.3 million, and a 133.0% increase in gross profit to $10.4 million. The gross margin expanded by 8.3 percentage points to 18.9%. Despite global supply chain challenges, the company showed strong growth in its EV segment, with a 382.4% revenue increase to $1.9 million. As of December 31, 2021, current assets stood at $105.8 million against $21.8 million in current liabilities, giving a robust current ratio of 4.9:1.
- 30.7% increase in revenue to $55.3 million.
- 133.0% increase in gross profit to $10.4 million.
- 382.4% revenue growth in EV segment to $1.9 million.
- Gross margin improved to 18.9%.
- Net loss increased to $8.4 million from $6.5 million.
- Research and development expenses surged 804.8% to $8.1 million.
Highlights (Full Year 2021 Compared to Full Year 2020)
30.7% Increase in Revenue to$55.3 Million 133.0% Increase in Gross Profit to$10.4 Million - 8.3 Percentage Point Expansion in Gross Margin
$105.8 Million Current Asset Balance with$21.8 Million in Current Liabilities at December 31, 2021, with a$7.2 Million Market Capitalization at July 12, 2022
LISHUI, China, July 18, 2022 /PRNewswire/ -- Tantech Holdings Ltd (NASDAQ: TANH) ("Tantech" or the "Company"), a clean energy company, today reported its audited financial results for the twelve months ended December 31, 2021.
Mr. Wangfeng Yan, Chief Executive Officer of Tantech, said, "We achieved a record
Mr. Wangfeng Yan, Chief Executive Officer of Tantech, continued, "Overall, we are pleased with our continued execution on multiple fronts as we drove growth in our core business, made major progress in the transformation of our EV and specialty vehicles business, and strengthened our balance sheet. We are excited about opportunities in the specialty EV market based on customer feedback and forecasts for specialty EVs, including electric driverless street sweepers, supported by the global zero-emission vehicle trend, as well as favorable government policies and support in terms of subsidies, grants and tax rebates. Domestically, China has become the largest new energy vehicle market in the world led by the government's endorsement and its focus on petroleum resource independence, environmental protection and the 'Made in China 2025' industrial upgrade. We are already collaborating with technology companies and consultants on developing specialty EVs, and plan to invest heavily in this area in 2022."
"Finally," concluded Mr. Wangfeng Yan, Chief Executive Officer of Tantech, "the fact that we ended 2021 with a
Financial Results For the Twelve Months Ended | ||||||||||||
($ millions, except per share data and percentages) | 2021 | 2020 | Change | |||||||||
Revenues | $ | 55.3 | $ | 42.3 | 30.7 | % | ||||||
Gross profit | $ | 10.4 | $ | 4.5 | 133.0 | % | ||||||
Gross margin | 18.9 | % | 10.6 | % | 8.3 | percentage points | ||||||
Operating expenses | $ | 18.9 | $ | 14.8 | 27.8 | % | ||||||
Net (loss) income attributable to common | $ | (8.4) | $ | (6.5) | 28.2 | % | ||||||
Basic/Diluted (loss) earnings per share | $ | (2.01) | $ | (2.21) | $ | (9.0) | % |
- Total revenue increased by approximately
$13.0 million , or30.7% , to approximately$55.3 million in fiscal 2021 from approximately$42.3 million in fiscal 2020. The increase was mainly attributable to the significant increase of our revenues from consumer products due to higher sales volume from existing and new customers. Revenue from Company's EV segment increased382.4% to approximately$1.9 million in fiscal 2021, as compared to approximately$0.4 million in fiscal 2020, with increased sales of smart electronic sanitation vehicles, income from the sale of electric specialty vehicles and power batteries and commission income for electric specialty vehicles sold on behalf of other manufacturers. - Our gross profit increased by approximately
$6.0 million , or133.0% to approximately$10.4 million in fiscal 2021 from approximately$4.5 million in fiscal 2020. The gross profit margin was18.9% in fiscal 2021, as compared to10.6% in fiscal 2020. On a segment basis, gross margins for consumer product and EV segments were18.7% and24.2% , respectively, for fiscal 2021, compared to10.7% and (3.0)%, respectively, for fiscal 2020. The increase in overall gross margin was primarily attributable to the higher selling price and lower unit cost related to consumer product segment and EV segment. - Research and development expenses increased by
$7.2 million , or804.8% , to$8.1 million in fiscal 2021 from$0.9 million in fiscal 2020. The increase was primarily due to the R&D activities in connection with our EV segment. During fiscal 2021, we increased our investment significantly for smart electric sanitation vehicles designed to be used in closed industrial parks and residential communities. We have successfully manufactured sanitation vehicles and generated revenue approximately$1.9 million from EV sales in fiscal year 2021. - Total operating expenses increased by
$4.1 million , or27.8% , to$18.9 million in fiscal 2021 from$14.8 million in fiscal 2020, which was mainly due to increases of approximately$7.9 million in general and administrative expense and$7.2 million in research and development expenses, offset by a decrease of approximately$12.0 million in impairment of intangible assets for fiscal 2021, as compared to of the fiscal 2020. - Loss before income tax was approximately
$8.3 million in fiscal 2021, a decrease of approximately$2.4 million compared to a loss of approximately$10.6 million in fiscal 2020. The decrease was primarily attributable to an increase of approximately$6.0 million in gross profit compared to fiscal 2020. - As of December 31, 2021, the Company had cash and restricted cash on hand of approximately
$43.6 million . Current assets were approximately$105.8 million and current liabilities were approximately$21.8 million , which resulted in a current ratio of 4.9:1. Total stockholders' equity as of December 31, 2021 was approximately$112.5 million .
About Tantech Holdings Ltd
For the past decade, Tantech has been a highly specialized high-tech enterprise producing, researching and developing bamboo charcoal-based products with an established domestic and international sales and distribution network. Since 2017, when the Company acquired
Forward-Looking Statements
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning the sales, plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulations, and other risks contained in reports filed by the Company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by this cautionary statement and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof, except as expressly required by applicable law.
Tantech Holdings Ltd and Subsidiaries | ||||||
Consolidated Balance Sheets | ||||||
(audited) | ||||||
For the Twelve Months Ended December 31, | ||||||
2021 | 2020 | |||||
Assets | ||||||
Current Assets | ||||||
Cash and cash equivalents | $ | 43,144,049 | $ | 37,119,195 | ||
Restricted cash | 422,832 | 220,109 | ||||
Accounts receivable, net | 44,962,926 | 34,410,597 | ||||
Inventories, net | 1,069,698 | 671,251 | ||||
Due from related party | 10,354,051 | - | ||||
Advances to suppliers, net | 3,420,628 | 6,854,461 | ||||
Advances to suppliers – related party | — | 1,533,000 | ||||
Prepaid taxes | 1,609,466 | 1,046,667 | ||||
Prepaid expenses and other receivables, net | 824,239 | 45,467 | ||||
Total Current Assets | 105,807,889 | 81,900,747 | ||||
Property, plant and equipment, net | 2,103,947 | 2,477,912 | ||||
Other Assets | ||||||
Manufacturing rebate receivable | — | 5,755,237 | ||||
Intangible assets, net | 205,971 | 664,033 | ||||
Right of use assets | 313,172 | — | ||||
Long-term Investment | 26,096,079 | 25,497,316 | ||||
Total Other Assets | 26,615,222 | 31,916,586 | ||||
Total Assets (Note 3 at VIE) | $ | 134,527,058 | $ | 116,295,245 | ||
Liabilities and Stockholders' Equity | ||||||
Current Liabilities | ||||||
Short-term bank loans | $ | 4,719,552 | $ | 5,564,790 | ||
Bank acceptance notes payable | — | 1,753,109 | ||||
Accounts payable | 1,563,787 | 1,543,994 | ||||
Due to related parties | 1,847,421 | 2,019,087 | ||||
Customer deposits | 3,580,622 | 3,183,088 | ||||
Taxes payable | 823,701 | 571,354 | ||||
Loan payable to third parties | 7,002,385 | 306,600 | ||||
Lease liabilities-current | 115,330 | — | ||||
Accrued liabilities and other payables | 2,114,258 | 1,861,835 | ||||
Total Current Liabilities | 21,767,056 | 16,803,857 | ||||
Lease liabilities non-current | 223,291 | — | ||||
Total Liabilities | 21,990,347 | 16,803,857 | ||||
Stockholders' Equity | ||||||
Common stock, | 63,995 | 35,894 | ||||
Additional paid-in capital | 69,566,786 | 48,392,181 | ||||
Statutory reserves | 6,874,614 | 6,437,506 | ||||
Retained earnings | 36,684,794 | 45,480,031 | ||||
Accumulated other comprehensive income (loss) | 1,071,149 | (1,493,070) | ||||
Total Stockholders' Equity attributable to the Company | 114,261,338 | 98,852,542 | ||||
Noncontrolling interest | (1,724,627) | 638,846 | ||||
Total Stockholders' Equity | 112,536,711 | 99,491,388 | ||||
Total Liabilities and Stockholders' Equity | $ | 134,527,058 | $ | 116,295,245 | ||
*Retroactively restated for one-for-ten reverse split with effective date of February 25, 2022. | ||||||
* please see "Note 3: Variable Interest Entities" in the notes accompanying the audited financial statements filed on the Company's |
Tantech Holdings Ltd and Subsidiaries | |||||||
Consolidated Statements of Comprehensive Loss | |||||||
(audited) | |||||||
For the Twelve Months Ended | |||||||
December 31, | |||||||
2021 | 2020 | ||||||
Revenues | $ | 55,263,673 | $ | 42,283,670 | |||
Cost of revenues | 44,832,347 | 37,807,297 | |||||
Gross Profit | 10,431,326 | 4,476,373 | |||||
Operating expenses | |||||||
Selling expenses | 221,364 | 977,201 | |||||
General and administrative expenses | 8,831,407 | 955,210 | |||||
Share based compensation | 1,840,000 | — | |||||
Impairment of goodwill and intangible asset | — | 11,998,606 | |||||
Research and development expenses | 8,053,400 | 890,316 | |||||
Total operating expenses | 18,946,171 | 14,821,333 | |||||
Loss from operations | (8,514,845) | (10,344,960) | |||||
Other income (expenses) | |||||||
Interest income | 117,735 | 50,732 | |||||
Interest expense | (740,400) | (300,125) | |||||
Rental income from related party | 117,958 | — | |||||
Gain from sale property to a related party | 545,874 | — | |||||
Other income (loss), net | 210,176 | (39,530) | |||||
Total other income (expenses) | 251,343 | (288,923) | |||||
Loss before income tax expense | (8,263,502) | (10,633,883) | |||||
Income tax expense (credit) | 2,429,480 | (611,655) | |||||
Net loss | (10,692,982) | (10,022,228) | |||||
Less: net loss attributable to noncontrolling interest | (2,334,853) | (3,501,808) | |||||
Net loss attributable to common stockholders of Tantech Holdings Ltd | $ | (8,358,129) | $ | (6,520,420) | |||
Net loss | (10,692,982) | (10,022,228) | |||||
Other comprehensive income (loss): | |||||||
Foreign currency translation adjustment | 2,535,599 | 5,892,311 | |||||
Comprehensive loss | (8,157,383) | (4,129,917) | |||||
Less: Comprehensive loss attributable to noncontrolling interest | (2,363,473) | (3,707,370) | |||||
Comprehensive loss attributable to common stockholders of | $ | (5,793,910) | $ | (422,547) | |||
Loss per share - Basic and Diluted* | $ | (2.01) | $ | (2.21) | |||
Weighted Average Shares Outstanding - Basic and Diluted Continuing | 4,148,737 | 2,956,624 | |||||
*Retroactively restated for one-for-ten reverse split with effective date of February 25, 2022. |
Tantech Holdings Ltd and Subsidiaries | |||||||
Consolidated Statements of Cash Flows | |||||||
(audited) | |||||||
For the Twelve Months Ended, | |||||||
December 31, | |||||||
2021 | 2020 | ||||||
Cash flows from operating activities | |||||||
Net loss | $ | (10,692,982) | $ | (10,022,228) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating | |||||||
Allowance (Reversal of) for doubtful accounts - accounts receivable | (52,789) | (845,416) | |||||
Reversal of allowance for doubtful accounts - advance to suppliers | (142,799) | (378,233) | |||||
Write off manufacturing rebate receivable | 5,819,059 | — | |||||
Reversal of allowance for doubtful accounts – other receivables | — | (84,573) | |||||
Share based compensation | 1,840,000 | — | |||||
Inventory reserve | 359,501 | 92,064 | |||||
Impairment of goodwill and intangible asset | — | 11,998,606 | |||||
Decrease in deferred tax liability | — | (1,799,791) | |||||
Depreciation expense | 444,462 | 436,427 | |||||
Amortization of intangible asset | 472,140 | 441,489 | |||||
Amortization of right of use assets | 44,964 | — | |||||
(Gain) Loss from disposal of property, plant and equipment | (545,844) | 68,614 | |||||
Issuance of common stock for service | — | 33,812 | |||||
Contingent liability | 535,389 | — | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable - non-related party | (9,573,463) | 8,024,036 | |||||
Advances to suppliers | 3,694,066 | 7,093,022 | |||||
Advances to suppliers - related party | 1,550,000 | (1,448,000) | |||||
Inventory | (737,552) | (125,492) | |||||
Prepaid expenses and other receivables | (768,288) | 133,768 | |||||
Manufacturing rebate receivable | 2,374,720 | ||||||
Accounts payable | (16,266) | (206,261) | |||||
Accrued liabilities and other payables | (323,441) | 313,552 | |||||
Customer deposits | 318,875 | (3,792,409) | |||||
Collection of receivables from discontinued operations | — | — | |||||
Lease liabilities | (19,824) | — | |||||
Taxes payable | (295,666) | 1,863,853 | |||||
Net cash (used in) provided by operating activities | (8,090,458) | 14,171,560 | |||||
Cash flows from investing activities | |||||||
Acquisition of property, plant and equipment | (220,308) | (144,806) | |||||
Proceeds from disposal of property, plant and equipment | 748,612 | 21,842 | |||||
Additions to intangible assets | (4,220) | — | |||||
Net cash provided by (used in) investing activities | 524,084 | (122,964) | |||||
Cash flows from financing activities | |||||||
Proceeds from loans from third parties | 6,917,589 | — | |||||
Repayment of loans from third parties | (310,000) | — | |||||
Bank acceptance notes payable, net of repayment | (1,772,550) | 1,448,667 | |||||
Proceeds from bank loans | 7,774,800 | 9,568,384 | |||||
Repayment of bank loans | (8,738,900) | (11,230,688) | |||||
Proceeds from (repayment of) loans from related parties, net | (10,428,196) | 98,474 | |||||
Proceeds from issuance of common stock and warrants | 19,362,706 | 9,055,232 | |||||
Net cash provided by) financing activities | 12,805,449 | 8,940,069 | |||||
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 988,502 | 1,704,662 | |||||
Net increase in cash, restricted cash and cash equivalents | 6,227,577 | 24,693,327 | |||||
Cash, restricted cash and cash equivalents, beginning of year | 37,339,304 | 12,645,977 | |||||
Cash, restricted cash and cash equivalents, end of year | $ | 43,566,881 | $ | 37,339,304 | |||
Supplemental disclosure information: | |||||||
Income taxes paid | $ | 2,278,134 | $ | 436,566 | |||
Interest paid | $ | 265,248 | $ | 308,690 | |||
Supplemental non-cash activities: | |||||||
Common shares issued for service | $ | 1,840,000 | $ | 33,812 |
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SOURCE Tantech Holdings Ltd.
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