Attached files
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| 8-K - 8-K - GENERAL STEEL HOLDINGS INC | v354063_8k.htm |
| EX-99.2 - EXHIBIT 99.2 - GENERAL STEEL HOLDINGS INC | v354063_ex99-2.htm |
Exhibit 99.1
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General Steel Reports Second Quarter 2013 Financial Results
Company to Restart Share Repurchase Program
BEIJING – August 30, 2013 – General Steel Holdings, Inc. (“General Steel” or the “Company”) (NYSE: GSI), a leading non-state-owned steel producer in China, today announced financial results for the second quarter ended June 30, 2013. The Company will file its Form 10-Q for the quarter ended June 30, 2013 with the Securities and Exchange Commission after market closes on Friday, August 30, 2013.
“During the second quarter, the average selling price of rebar decreased over 5% sequentially to near the year’s lowest level, and as a result, despite a higher shipping volume, our total sales and profit margins declined, causing widened net losses,” said Henry Yu, Chairman and Chief Executive Officer of General Steel. “However, this August, we were encouraged to witness an improvement in the pricing trend of steel in China, and since we have significantly improved our efficiency and cost structure, we feel very positive about our ability to enhance profitability in the second half of 2013.”
“In addition, the filing of our quarterly results for the second quarter of 2013 marks the final milestone in our persistent efforts to regaining full compliance with the SEC’s reporting requirements. Given our regained filing status, we are once again able to restart our share repurchase program. Personally, and on behalf of the Company, we are confident about our long-term prospects, and are committed to enhance shareholders’ value and wealth.”
Second Quarter 2013 Financial Information
| · | Sales decreased by 16.3% year-over-year to $653.7 million, from $780.7 million in the second quarter of 2012. |
| · | Sales volume increased by 3.4% year-over-year to approximately 1.4 million metric tons, compared with 1.3 million metric tons in the second quarter of 2012. |
| · | Gross loss was $(35.5) million, or negative (5.4%) of revenue, compared with a gross profit of $28.0 million, or 3.6% of revenue in the second quarter of 2012. |
| · | Operating loss was $(42.2) million, compared with an operating income of $7.9 million in the second quarter of 2012. |
| · | Net loss attributable to the Company was $(39.8) million, or $(0.72) per diluted share, compared with a net loss of $(26.4) million, or $(0.48) per diluted share in the second quarter of 2012. |
| · | Operating cash net outflow was $(65.3) million, compared with a net inflow of $67.4 million in the second quarter of 2012. |
| · | As of June 30, 2013, the Company had cash and restricted cash of $448.5 million. |
| General Steel Holdings, Inc. |
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First Six Months 2013 Financial Information
| · | Sales decreased by 8.7% year-over-year to $1.3 billion, from $1.4 billion in the first six months of 2012. |
| · | Sales volume increased by 7.0% year-over-year to approximately 2.7 million metric tons, compared with 2.5 million metric tons in the first six months of 2012. |
| · | Gross loss was $(31.5) million, or negative (2.4%) of revenue, compared with a gross profit of $33.7 million, or 2.4% of revenue in the first six months of 2012. |
| · | Operating loss was $(5.2) million, compared with an operating loss of $(5.1) million in the first six months of 2012. |
| · | Net loss attributable to the Company was $(36.7) million, or $(0.67) per diluted share, compared with a net loss of $(61.2) million, or $(1.11) per diluted share in the first six months of 2012. |
| · | Operating cash net outflow was $(61.4) million, compared with a net outflow of $(99.6) million in the first six months of 2012. |
John Chen, Chief Financial Officer of General Steel, commented, “Although the steeper drop in average selling price of rebar caused a decline in sales and gross losses, we continued to strongly execute on our internal objectives. We achieved continued improvements in inventory efficiency, and outstanding savings in finance expense by over $28 million compared with the same period of last year. As our new continuous rolling rebar lines enter full production, we are poised to achieve greater profitability improvement and positive gross margins in the second half of 2013.”
Second Quarter 2013 Financial and Operating Results
Total Sales
Total sales for the second quarter of 2013 decreased by 16.3% year-over-year to $653.7 million, compared with $780.7 million in the second quarter of 2012. The year-over-year revenue decreases were due to a decrease in the average selling price of the products despite an increased sales volume.
| · | Total sales volume in the second quarter of 2013 was 1.4 million metric tons, an increase of 3.4% compared with 1.3 million metric tons in the second quarter of 2012. |
| · | The average selling price of rebar decreased 19.0% to approximately $482.7 in the second quarter of 2013 from approximately $596.2 in the same period of 2012. |
Gross Profit and Gross Margin
Gross loss for the quarter was $(35.5) million, compared with a gross profit of $28.0 million in the second quarter of 2012. The decrease in gross profit was mainly attributable to a steeper decrease in average selling price of rebar, with the gross margin decreased to negative (5.4%) of total sales in the second quarter of 2013, compared with 3.6% of total sales in the same period a year ago.
Operating Expenses and Operating Income
Selling, general and administrative expenses for the second quarter of 2013 increased 3.6% to $20.8 million, compared to $20.1 million in the second quarter of 2012. General and administrative expenses increased to $11.6 million, compared with $9.8 million in the same period of 2012, due to increased expense in human resources and a $1.2 million write-off of prepared special fund. Selling expenses decreased by 9.9% to $9.3 million, compared to $10.3 million in the same period of 2012. The decrease in selling expense was primary attributable to a savings in a special fund related to the sales of our products, which was no long imposed by the PRC tax authorities in 2013, while $1.6 million of the special fund was imposed in the second quarter of 2012.
| General Steel Holdings, Inc. |
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The Company recognized other operating income of $14.2 million due to change in the fair value of profit sharing liability during the second quarter of 2013, compared with $0 in the same period of last year. On April 29, 2011, the Company’s subsidiary, Longmen Joint Venture entered into a capital lease agreement with Shaanxi Steel and Shaanxi Coal for the use of new equipment. The profit sharing liability is recognized initially at its estimated fair value at the lease commencement date, and the value of the profit sharing liability is reassessed each reporting period with any change in fair value accounted for on a prospective basis. As such, and in consideration of the recent changes in China economic situation, the fair value of the Company’s profit sharing liability has been reduced as compared to its previous estimates, and the Company recognized a gain of $14.2 million during the second quarter of 2013 accordingly.
Correspondingly, loss from operations for the second quarter of 2013 was $(42.2) million, compared with an income from operations of $7.9 million in the second quarter of 2012.
Finance Expense
Finance and interest expense in the second quarter of 2013 decreased by $28.1 million to $25.9 million, of which, $9.8 million was the non-cash interest expense on capital lease as compared with $10.8 million in the same period of 2012, and $16.1 million was the interest expense on bank loans and discounted note receivables as compared with $43.2 million in the second quarter of 2012. The decrease in interest expense on bank loans and discounted note receivables was primarily attributable to a reduction in the amount of bank notes receivable redeemed early, and less interest-bearing loans from banks and third parties, benefiting from additional financing support from suppliers and vendors during the second quarter of 2013.
Net Income and Net Income per Share
Net loss attributable to General Steel for the second quarter of 2013 was $(39.8) million, or $(0.72) per diluted share, based on 55.0 million weighted average shares outstanding. This compares to a net loss of $(26.4) million, or $(0.48) per diluted share, based on 54.9 million weighted average shares outstanding in the second quarter of 2012.
First Six Months 2013 Financial Results and Operating Results
Total Sales
Total sales for the first six months of 2013 decreased by 8.7% year-over-year to $1.3 billion, compared with $1.4 billion in the first six months of 2012. The year-over-year revenue decreases were due to a decrease in the average selling price of the products despite an increased sales volume.
| · | Total sales volume in the first six months of 2013 was 2.7 million metric tons, an increase of 7.0% compared with 2.5 million metric tons in the first six months of 2012. |
| · | The average selling price of rebar decreased 15.9% to approximately $498.4 in the first six months of 2013 from approximately $592.8 in the same period of 2012. |
| General Steel Holdings, Inc. |
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Gross Profit and Gross Margin
Due to the steeper decrease in average selling price, gross loss for the first six months of 2013 was $(31.5) million, or (2.4%) of total sales, compared with a gross profit of $33.7 million, or 2.4% of total sale in the first six months of 2012.
Operating Expenses and Operating Income
Selling, general and administrative expenses for the first six months of 2013 increased 2.7% to $39.8 million, compared to $38.8 million in the first six months of 2012. General and administrative expenses increased to $22.5 million, compared with $19.6 million in the same period of 2012. Selling expenses decreased by 9.7% to $17.3 million, compared to $19.2 million in the same period of 2012. There was a $2.9 million special fund imposed in the first six months of 2012.
The Company recognized other operating income of $66.1 million due to change in the fair value of profit sharing liability during the first six months of 2013, compared with $0 in the same period of last year.
Correspondingly, loss from operations for the first six months of 2013 was $(5.2) million, compared with $(5.1) million in the first six months of 2012.
Finance Expense
Finance and interest expense in the first six months of 2013 was $55.9 million, of which, $20.0 million was the non-cash interest expense on capital lease as compared with $21.6 million in the same period of 2012, and $35.9 million was the interest expense on bank loans and discounted note receivables as compared with $80.7 million in the first six months of 2012.
Net Income and Net Income per Share
Net loss attributable to General Steel for the first six months of 2013 was $(36.7) million, or $(0.67) per diluted share, based on 54.9 million weighted average shares outstanding. This compares to a net loss of $(61.2) million, or $(1.11) per diluted share, based on 55.2 million weighted average shares outstanding in the first six months of 2012.
Balance Sheet
As of June 30, 2013, the Company had cash and restricted cash of approximately $448.5 million, compared to $369.9 million as of December 31, 2012. The Company had an inventory balance of approximately $160.2 million as of June 30, 2013, compared to $212.7 million as of December 31, 2012. As of June 30, 2013, the Company had total liabilities of approximately $3.0 billion.
| General Steel Holdings, Inc. |
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Share Repurchase Program
On March 27, 2012, the Company launched a follow-on share repurchase program to repurchase up to an aggregate of 2,000,000 shares of its common stock (the “Share Repurchase Program”), which, together with the previous share repurchase program launched in December 2010, had brought the total authorized shares of the Company’s common stock available for purchase to 4,000,000 shares. As of August 29, 2013, the Company has authorized shares of the Company’s common stock available for repurchase under the Share Repurchase Program of approximately 1.5 million.
Conference Call and Webcast:
General Steel will hold a corresponding conference call and live webcast at 8:00 a.m. EDT on Friday, August 30, 2013 (which corresponds to 8:00 p.m. Beijing/Hong Kong Time on Friday, August 30, 2013) to discuss the results and answer questions from investors. Listeners may access the call by dialing 1-800-860-2442 in the U.S., and 1-412-858-4600 internationally.
The call will also be available as a live, listen-only webcast under the “Events and Presentations” page on the “Investor Relations” section of the Company's website at http://www.mzcan.com/us/GSI/irwebsite/index.php?mod=event. Following the live webcast, an online archive will be available for 90 days.
About General Steel Holdings, Inc.
General Steel Holdings, Inc., headquartered in Beijing, China, produces a variety of steel products including rebar, high-speed wire and spiral-weld pipe. The Company has operations in China’s Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality with seven million metric tons of crude steel production capacity under management. For more information, please visit www.gshi-steel.com.
To be added to the General Steel email list to receive Company news, or to request a hard copy of the Company’s Annual Report on Form 10-K, please send your request to generalsteel@asiabridgegroup.com.
Forward-Looking Statements
This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs about future events and financial, political and social trends and assumptions it has made based on information currently available to it. The Company cannot assure that any expectations, forecasts or assumptions made by management in preparing these forward-looking statements will prove accurate, or that any projections will be realized. Actual results could differ materially from those projected in the forward-looking statements as a result of inaccurate assumptions or a number of risks and uncertainties. These risks and uncertainties are set forth in the Company's filings under the Securities Act of 1933 and the Securities Exchange Act of 1934 under “Risk Factors” and elsewhere, and include: (a) those risks and uncertainties related to general economic conditions in China, including regulatory factors that may affect such economic conditions; (b) whether the Company is able to manage its planned growth efficiently and operate profitable operations, including whether its management will be able to identify, hire, train, retain, motivate and manage required personnel or that management will be able to successfully manage and exploit existing and potential market opportunities; (c) whether the Company is able to generate sufficient revenues or obtain financing to sustain and grow its operations; (d) whether the Company is able to successfully fulfill our primary requirements for cash; and (e) other risks, including those disclosed in the Company’s Form 10-K, filed with the SEC. Forward-looking statements contained herein speak only as of the date of this release. The Company does not undertake any obligation to update or revise publicly any forward-looking statements, whether to reflect new information, future events or otherwise.
| General Steel Holdings, Inc. |
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Contact Us
General Steel Holdings, Inc.
In China:
Jenny Wang
Tel: +86-10-5775-7691
Email: jenny.wang@gshi-steel.com
In the US:
Joyce Sung
Tel: +1-347-534-1435
Email: joyce.sung@gshi-steel.com
Asia Bridge Capital Limited
Carene Toh
Tel: +1-888-957-3362
Email: generalsteel@asiabridgegroup.com
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GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2013 AND DECEMBER 31, 2012
(UNAUDITED)
(In thousands)
| June 30, | December 31, | |||||||
| ASSETS | 2013 | 2012 | ||||||
| CURRENT ASSETS: | ||||||||
| Cash | $ | 67,871 | $ | 46,467 | ||||
| Restricted cash | 380,670 | 323,420 | ||||||
| Notes receivable | 213,644 | 145,502 | ||||||
| Restricted notes receivable | 117,774 | 357,900 | ||||||
| Loans receivable - related parties | 6,000 | 69,319 | ||||||
| Accounts receivable, net | 42,273 | 6,695 | ||||||
| Accounts receivable - related parties | 6,212 | 14,966 | ||||||
| Other receivables, net | 53,525 | 8,407 | ||||||
| Other receivables - related parties | 63,223 | 68,382 | ||||||
| Inventories | 160,155 | 212,671 | ||||||
| Advances on inventory purchase | 57,909 | 79,715 | ||||||
| Advances on inventory purchase - related parties | 2,391 | 46,416 | ||||||
| Prepaid expense and other | 1,585 | 450 | ||||||
| Prepaid taxes | 21,846 | 24,116 | ||||||
| Short-term investment | 2,592 | 2,619 | ||||||
| TOTAL CURRENT ASSETS | 1,197,670 | 1,407,045 | ||||||
| PLANT AND EQUIPMENT, net | 1,214,558 | 1,167,836 | ||||||
| OTHER ASSETS: | ||||||||
| Advances on equipment purchase | 16,458 | 6,499 | ||||||
| Long-term other receivable | - | 43,008 | ||||||
| Investment in unconsolidated entities | 1,106 | 1,166 | ||||||
| Long-term deferred expense | 764 | 1,062 | ||||||
| Intangible assets, net of accumulated amortization | 24,058 | 24,066 | ||||||
| TOTAL OTHER ASSETS | 42,386 | 75,801 | ||||||
| TOTAL ASSETS | $ | 2,454,614 | $ | 2,650,682 | ||||
| LIABILITIES AND DEFICIENCY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Short term notes payable | $ | 813,521 | $ | 983,813 | ||||
| Accounts payable | 407,683 | 352,052 | ||||||
| Accounts payable - related parties | 172,306 | 177,432 | ||||||
| Short term loans - bank | 208,731 | 147,124 | ||||||
| Short term loans - others | 151,245 | 147,323 | ||||||
| Short term loans - related parties | 81,975 | 79,557 | ||||||
| Current maturities of long-term loans - related party | 48,014 | 54,885 | ||||||
| Other payables and accrued liabilities | 60,775 | 54,589 | ||||||
| Other payable - related parties | 101,268 | 73,025 | ||||||
| Customer deposits | 122,339 | 125,890 | ||||||
| Customer deposits - related parties | 7,798 | 21,998 | ||||||
| Deposit due to sales representatives | 30,800 | 33,870 | ||||||
| Deposit due to sales representatives - related parties | 1,798 | 1,238 | ||||||
| Taxes payable | 10,310 | 16,674 | ||||||
| Deferred lease income, current | 2,164 | 2,120 | ||||||
| TOTAL CURRENT LIABILITIES | 2,220,727 | 2,271,590 | ||||||
| NON-CURRENT LIABILITIES: | ||||||||
| Long-term loans - related party | 29,160 | 38,088 | ||||||
| Long-term other payable - related party | - | 43,008 | ||||||
| Deferred lease income, noncurrent | 75,558 | 75,079 | ||||||
| Capital lease obligations | 347,290 | 330,099 | ||||||
| Profit sharing liability | 278,788 | 328,827 | ||||||
| Other noncurrent liabilities | 1,393 | - | ||||||
| TOTAL NON-CURRENT LIABILITIES | 732,189 | 815,101 | ||||||
| TOTAL LIABILITIES | 2,952,916 | 3,086,691 | ||||||
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| COMMITMENTS AND CONTINGENCIES | ||||||||
| DEFICIENCY: | ||||||||
| Preferred stock, $0.001 par value, 50,000,000 shares authorized, 3,092,899 shares issued and outstanding as of June 30, 2013 and December 31, 2012 | 3 | 3 | ||||||
| Common stock, $0.001 par value, 200,000,000 shares authorized, 57,607,888 and 57,269,838 shares issued, 55,135,582 and 54,797,532 shares outstanding as of June 30, 2013 and December 31, 2012, respectively | 58 | 57 | ||||||
| Treasury stock, at cost, 2,472,306 shares as of June 30, 2013 and December 31, 2012 | (4,199 | ) | (4,199 | ) | ||||
| Paid-in-capital | 106,194 | 105,714 | ||||||
| Statutory reserves | 6,204 | 6,076 | ||||||
| Accumulated deficits | (418,497 | ) | (381,782 | ) | ||||
| Accumulated other comprehensive income | 4,201 | 10,185 | ||||||
| TOTAL GENERAL STEEL HOLDINGS, INC. DEFICIENCY | (306,036 | ) | (263,946 | ) | ||||
| NONCONTROLLING INTERESTS | (192,266 | ) | (172,063 | ) | ||||
| TOTAL DEFICIENCY | (498,302 | ) | (436,009 | ) | ||||
| TOTAL LIABILITIES AND DEFICIENCY | $ | 2,454,614 | $ | 2,650,682 |
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GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2013 AND 2012
(UNAUDITED)
(In thousands, except per share data)
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| SALES | $ | 517,350 | $ | 538,986 | $ | 1,019,781 | $ | 922,783 | ||||||||
| SALES - RELATED PARTIES | 136,301 | 241,697 | 285,161 | 505,941 | ||||||||||||
| TOTAL SALES | 653,651 | 780,683 | 1,304,942 | 1,428,724 | ||||||||||||
| COST OF GOODS SOLD | 540,271 | 516,277 | 1,038,897 | 898,033 | ||||||||||||
| COST OF GOODS SOLD - RELATED PARTIES | 148,916 | 236,362 | 297,514 | 497,047 | ||||||||||||
| TOTAL COST OF GOODS SOLD | 689,187 | 752,639 | 1,336,411 | 1,395,050 | ||||||||||||
| GROSS PROFIT (LOSS) | (35,536 | ) | 28,044 | (31,469 | ) | 33,674 | ||||||||||
| SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | (20,848 | ) | (20,132 | ) | (39,803 | ) | (38,761 | ) | ||||||||
| CHANGE IN FAIR VALUE OF PROFIT SHARING LIABILITY | 14,160 | - | 66,052 | - | ||||||||||||
| INCOME (LOSS) FROM OPERATIONS | (42,224 | ) | 7,912 | (5,220 | ) | (5,087 | ) | |||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||||
| Interest income | 3,383 | 3,146 | 5,882 | 8,702 | ||||||||||||
| Finance/interest expense | (25,882 | ) | (53,948 | ) | (55,852 | ) | (102,314 | ) | ||||||||
| Change in fair value of derivative liabilities | - | 20 | 1 | 7 | ||||||||||||
| Gain (loss) on disposal of equipment | (235 | ) | 3 | 96 | (116 | ) | ||||||||||
| Income from equity investments | 132 | 79 | 90 | 36 | ||||||||||||
| Foreign currency transaction gain (loss) | 98 | (973 | ) | 126 | (588 | ) | ||||||||||
| Lease income | 539 | 530 | 1,071 | 1,060 | ||||||||||||
| Other non-operating income (expense), net | 521 | 1,145 | 789 | 1,002 | ||||||||||||
| Other expense, net | (21,444 | ) | (49,998 | ) | (47,857 | ) | (92,211 | ) | ||||||||
| LOSS BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST | (63,668 | ) | (42,086 | ) | (53,077 | ) | (97,298 | ) | ||||||||
| PROVISION FOR INCOME TAXES | ||||||||||||||||
| Current | 105 | 43 | 176 | 410 | ||||||||||||
| Deferred | - | - | - | 169 | ||||||||||||
| Provision for income taxes | 105 | 43 | 176 | 579 | ||||||||||||
| NET LOSS | (63,773 | ) | (42,129 | ) | (53,253 | ) | (97,877 | ) | ||||||||
| Less: Net loss attributable to noncontrolling interest | (23,955 | ) | (15,752 | ) | (16,538 | ) | (36,716 | ) | ||||||||
| NET LOSS ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC. | $ | (39,818 | ) | $ | (26,377 | ) | $ | (36,715 | ) | $ | (61,161 | ) | ||||
| NET LOSS | $ | (63,773 | ) | $ | (42,129 | ) | $ | (53,253 | ) | $ | (97,877 | ) | ||||
| OTHER COMPREHENSIVE LOSS | ||||||||||||||||
| Foreign currency translation adjustments | (7,210 | ) | 1,590 | (9,736 | ) | 121 | ||||||||||
| COMPREHENSIVE LOSS | (70,983 | ) | (40,539 | ) | (62,989 | ) | (97,756 | ) | ||||||||
| Less: Comprehensive loss attributable to noncontrolling interest | (26,745 | ) | (15,393 | ) | (20,290 | ) | (36,833 | ) | ||||||||
| COMPREHENSIVE LOSS ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC. | $ | (44,238 | ) | $ | (25,146 | ) | $ | (42,699 | ) | $ | (60,923 | ) | ||||
| WEIGHTED AVERAGE NUMBER OF SHARES | ||||||||||||||||
| Basic and Diluted | 54,980 | 54,857 | 54,893 | 55,188 | ||||||||||||
| LOSS PER SHARE | ||||||||||||||||
| Basic and Diluted | $ | (0.72 | ) | $ | (0.48 | ) | $ | (0.67 | ) | $ | (1.11 | ) | ||||
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GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2013 AND 2012 (UNAUDITED)
(In thousands)
| Six months ended June 30, | ||||||||
| 2013 | 2012 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (53,253 | ) | $ | (97,877 | ) | ||
| Adjustments to reconcile net loss to cash provided by (used in) operating activities: | ||||||||
| Depreciation, amortization and depletion | 43,067 | 41,329 | ||||||
| Change in fair value of derivative liabilities | (1 | ) | (7 | ) | ||||
| (Gain) loss on disposal of equipment | (96 | ) | 74 | |||||
| Provision for doubtful accounts | (169 | ) | 5 | |||||
| Reservation of mine maintenance fee | 215 | 50 | ||||||
| Stock issued for services and compensation | 480 | 394 | ||||||
| Amortization of deferred financing cost on capital lease | 19,996 | 21,627 | ||||||
| Income from equity investments | (90 | ) | (36 | ) | ||||
| Foreign currency transaction gain | (126 | ) | 588 | |||||
| Deferred tax assets | - | 169 | ||||||
| Deferred lease income | (1,071 | ) | (1,060 | ) | ||||
| Changes in fair value of profit sharing liability | (66,052 | ) | - | |||||
| Changes in operating assets and liabilities | ||||||||
| Notes receivable | (64,424 | ) | 11,728 | |||||
| Accounts receivable | (33,951 | ) | 3,789 | |||||
| Accounts receivable - related parties | 8,969 | (66,664 | ) | |||||
| Other receivables | (857 | ) | 2,403 | |||||
| Other receivables - related parties | 10,275 | 15,729 | ||||||
| Inventories | 38,014 | (24,713 | ) | |||||
| Advances on inventory purchases | 23,215 | (36,985 | ) | |||||
| Advances on inventory purchases - related parties | (48,019 | ) | (54,790 | ) | ||||
| Prepaid expense and other | (1,115 | ) | (181 | ) | ||||
| Long-term deferred expense | 317 | 131 | ||||||
| Prepaid taxes | 2,742 | 1,760 | ||||||
| Accounts payable | 43,122 | (49,095 | ) | |||||
| Accounts payable - related parties | 55,227 | 54,720 | ||||||
| Other payables and accrued liabilities | 5,002 | 4,254 | ||||||
| Other payables - related parties | (16,987 | ) | 110,061 | |||||
| Customer deposits | (6,103 | ) | (2,418 | ) | ||||
| Customer deposits - related parties | (14,502 | ) | (29,781 | ) | ||||
| Taxes payable | (6,639 | ) | (4,785 | ) | ||||
| Other noncurrent liabilities | 1,378 | - | ||||||
| Net cash used in operating activities | (61,436 | ) | (99,581 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Restricted cash | (49,988 | ) | (5,671 | ) | ||||
| Loans to related parties | - | (69,303 | ) | |||||
| Cash proceeds from (made to) short term investment | 80 | 79 | ||||||
| Cash proceeds from sales of equipment | 16 | 4 | ||||||
| Equipment purchase and intangible assets | (52,350 | ) | (20,550 | ) | ||||
| Effect on cash due to deconsolidating of a subsidiary | - | (2,975 | ) | |||||
| Net cash used in investing activities | (102,242 | ) | (98,416 | ) | ||||
| General Steel Holdings, Inc. |
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| CASH FLOWS FINANCING ACTIVITIES: | ||||||||
| Payments made for treasury stock acquired | - | (1,404 | ) | |||||
| Notes receivable – restricted | 244,940 | 364,325 | ||||||
| Borrowings on short term notes payable | 812,577 | 921,101 | ||||||
| Payments on short term notes payable | (1,001,301 | ) | (1,134,080 | ) | ||||
| Borrowings on short term loans - bank | 141,484 | 184,477 | ||||||
| Payments on short term loans - bank | (83,433 | ) | (241,919 | ) | ||||
| Borrowings on short term loan - others | 47,903 | 155,936 | ||||||
| Payments on short term loans - others | (47,055 | )) | (162,212 | ) | ||||
| Borrowings on short term loan - related parties | 213,576 | 178,454 | ||||||
| Payments on short term loans - related parties | (124,059 | ) | (138,320 | ) | ||||
| Deposits due to sales representatives | (3,734 | ) | 7,515 | |||||
| Deposit due to sales representatives - related parties | 529 | 286 | ||||||
| Payments on long-term loans – related party | (17,544 | ) | - | |||||
| Net cash provided by financing activities | 183,883 | 134,159 | ||||||
| EFFECTS OF EXCHANGE RATE CHANGE IN CASH | 1,199 | 2,226 | ||||||
| INCREASE (DECREASE) IN CASH | 21,404 | (61,612 | ) | |||||
| CASH, beginning of period | 46,467 | 120,016 | ||||||
| CASH, end of period | $ | 67,871 | $ | 58,404 |