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Tantech Announces Full Year 2022 Financial Results

TANH

LISHUI, China, May 1, 2023 /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, 2022.



For the year ended December 31,



2022



2021


Change

Revenues


$

53,490




55,264


-3.2 %

Gross profit



10,093




10,431


-3.2 %

Gross Margin



18.9 %




18.9 %


0.0 %

Operating expenses



5,520




18,946


-70.9 %

Net income (loss) attributable to common stockholders


$

3,021




(8,358)


-136.1 %

Earnings (loss) from continuing operations per share


$

3.03




(48.35)


N/A

  • Revenues decreased by approximately $1.8 million, or 3.2%, to approximately $53.5 million in fiscal 2022 from approximately $55.3 million in fiscal 2021. The decreased was mainly attributable to decrease of approximately $4.4 million in revenues from consumer products and decrease of approximately $1.3 million in revenues from EV segment, due to weak consumer market as the result of soft economy, partially offset by increase of approximately $4.0 million in revenues from biodegradable packaging business which we started in fiscal 2022.
  • Our gross profit decreased by approximately $0.3 million, or 3.2% to approximately $10.1 million in fiscal 2022 from approximately $10.4 million in fiscal 2021. The gross profit margin were 18.9% in both fiscal 2022 and 2021. On segment basis, gross margins for consumer product segment, EV segment, and biodegradable packaging business were 20.4%, (3.4)% and 2.7%, respectively, in fiscal 2022, compared to 18.7%, 24.2%, and nil, respectively, in fiscal 2021.
  • Research and development expenses decreased by approximately $7.8 million, or 97.2%, to approximately $0.2 million in fiscal 2022 from approximately $8.1 million in fiscal 2021. The decrease was primarily due to less R&D activities in connection with our EV segment in fiscal 2022.
  • Total operating expenses decreased by approximately $13.4 million, or 70.9%, to approximately $5.5 million in fiscal 2022 from approximately $18.9 million in fiscal 2021, which was mainly due to decrease of approximately $7.8 million in research and development expenses, decrease of approximately $3.8 million in general and administrative expense and decrease of approximately $1.8 million in share-based compensation in fiscal 2022 compared to fiscal 2021.
  • Our income before income tax was approximately $5.7 million in fiscal 2022, an increase of approximately $14.0 million compared to loss of approximately $8.3 million in fiscal 2021. The increase was primarily attributable to a decrease of approximately $13.4 million in operating expenses compared to fiscal 2021.
  • As of December 31, 2022, we had cash and restricted cash of approximately $19.0 million. Our current assets were approximately $106.8 million and our current liabilities were approximately $13.5 million, which resulted in a current ratio of 7.9:1. Total shareholders' equity as of December 31, 2022 was approximately $115.9 million.

Mr. Wangfeng Yan, Chief Executive Officer of Tantech, said, "Our revenue is stable at $53.5 million for the full year 2022, and net income attributable to common shareholders is positive at $3 million after losses in the proceeding 3 years. We are very glad to achieve this result given the COVID-19 pandemic and closures in China in 2022."

"In the meantime, we expanded our business into several sectors and transformed our business to focus more on the specialty electric vehicles (EVs) market. We are building our presence methodically, with our R&D investments and technology advancements more in specialty-use EVs which we believe will be a key long-term growth driver for us, rather than general consumer EV market." Mr. Wangfeng Yan continued, "in 2022 we also started biodegradable packaging business. This market has been growing rapidly in recent years, driven by increased awareness of environmental issues and the desire to reduce plastic waste. Biodegradable packaging can break down naturally in the environment without leaving behind harmful pollutants or waste."

Mr. Wangfeng Yan concluded, "In 2022 we had $106.8 million current assets balance with just $13.5 million in current liabilities. There are many opportunities for us to explore and add value for shareholders. With continuing leadership in bamboo charcoal-based products and our unique knowledge in specialty EV segment, we have full confidence in the future development of the Company."

About Tantech Holdings Ltd

For the last two decades, Tantech has been a leading high-tech enterprise pioneering and specializing in producing, researching and developing products based on bamboo charcoals with a well-established domestic and international sales and distribution network. Tantech expanded into the clean vehicle industry in 2017 through acquiring 70% shares of Shangchi Automobile. In November 2020, Tantech established two additional subsidiaries, Lishui Smart New Energy Automobile Co., Ltd. and Zhejiang Shangchi New Energy Automobile Co., Ltd., to produce and market electric vehicles, including automatic high-speed street sweepers and others. The Company's subsidiary, First International Commercial Factoring (Shenzhen) Co., LTD, is engaged in commercial factoring for businesses in and related to its supply chain. Tantech has recently expanded its operation into international markets. In May and July 2022, the Company established wholly-owned subsidiaries, EPakia Inc. and EPakia Canada Inc., in the United States and Canada to develop biodegradable packaging business in the North American and other international markets. The Company is fully ISO 90000 and ISO 14000 certified and has received numerous national, provincial and local honors, awards and certifications for its products and scientific research efforts. For more information, please visit: http://ir.tantech.cn.

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 laws.

Tantech Holdings Ltd and Subsidiaries

Consolidated Balance Sheets




December 31,



December 31,




2022



2021









Assets







Current Assets







Cash and cash equivalents


$

18,976,684



$

43,144,049


Restricted cash



4,827




422,832


Accounts receivable, net



40,174,332




44,962,926


Financing receivable



43,864,192





Inventories, net



898,686




1,069,698


Due a from related party






10,354,051


Advances to suppliers, net



1,291,998




3,420,628


Prepaid taxes



494,467




1,609,466


Prepaid expenses and other receivables, net



1,051,631




824,239


Total Current Assets



106,756,817




105,807,889











Other Assets









Property, plant and equipment, net



1,656,442




2,103,947


Intangible assets, net



184,822




205,971


Right of use assets



1,417,088




313,172


Long-term investment



24,116,835




26,096,079


Total Non-current Assets



27,375,187




28,719,169


Total Assets


$

134,132,004



$

134,527,058











Liabilities and Stockholders' Equity









Current Liabilities









Short-term bank loans


$

3,636,591



$

4,719,552


Accounts payable



2,118,705




1,563,787


Due to related parties



1,047,512




1,847,421


Customer deposits



1,826,996




3,580,622


Taxes payable



1,251,975




823,701


Loan payable to third parties






7,002,385


Lease liabilities-current



161,480




115,330


Accrued liabilities and other payables



3,497,532




2,114,258


Total Current Liabilities



13,540,791




21,767,056


Due to third parties-long term



3,395,861





Lease liabilities-non-current



1,259,958




223,291


Total Liabilities



18,196,610




21,990,347











Stockholders' Equity









Common stock, $0.24 par value, 6,000,000 shares authorized, 1,217,906
and 266,640 shares issued and outstanding as of December 31, 2022 and
2021, respectively*



292,299




63,995


Additional paid-in capital



79,454,309




69,566,786


Statutory reserves



7,490,398




6,874,614


Retained earnings



39,090,079




36,684,794


Accumulated other comprehensive (loss) income



(8,242,727)




1,071,149


Total Stockholders' Equity attributable to the Company



118,084,358




114,261,338


Noncontrolling interest



(2,148,964)




(1,724,627)


Total Stockholders' Equity



115,935,394




112,536,711


Total Liabilities and Stockholders' Equity


$

134,132,004



$

134,527,058


*Retroactively restated for one-for-twenty-four reverse split with effective date of November 9, 2022.

Tantech Holdings Ltd and Subsidiaries

Consolidated Statements of Income (Loss) and Comprehensive Loss




Ended December 31,





2022



2021





Revenues


$

53,490,294



$

55,263,673





Cost of revenues



43,397,756




44,832,347





Gross Profit



10,092,538




10,431,326

















Operating expenses












Selling expenses



278,013




221,364





General and administrative expenses



5,013,933




8,831,407





Share based compensation






1,840,000





Impairment of goodwill and intangible asset











Research and development expenses



227,829




8,053,400





Total operating expenses



5,519,775




18,946,171

















Income (loss) from operations



4,572,763




(8,514,845)

















Other income (expenses)












Interest income



208,142




117,735





Interest expense



(602,037)




(740,400)





Financing interest income



1,400,227








Rental income from related party



89,039




117,958





Gain from sale property to a related party






545,874





Other income (loss), net



60,031




210,176





Total other (expenses) income



1,155,402




251,343

















Income (loss) before income tax



5,728,165




(8,263,502)





Income tax provision (benefit)



3,141,969




2,429,480





Net income (loss)



2,586,196




(10,692,982)





Less: net loss attributable to noncontrolling interest



(434,873)




(2,334,853)





Net income (loss) attributable to common stockholders of
Tantech Holdings Ltd


$

3,021,069



$

(8,358,129)

















Net income (loss)



2,586,196




(10,692,982)





Other comprehensive income (loss):












Foreign currency translation adjustment



(9,303,340)




2,535,599





Comprehensive loss



(6,717,144)




(8,157,383)





Less: Comprehensive loss attributable to noncontrolling interest



(424,337)




(2,363,473)





Comprehensive loss attributable to common stockholders
of Tantech Holdings Ltd


$

(6,292,807)



$

(5,793,910)

















Earnings (loss) per share - Basic and Diluted*












Basic


$

3.03



$

(48.35)





Diluted


$

3.00



$

(48.35)

















Weighted Average Shares Outstanding












Basic



996,934




172,864





Diluted



1,006,169




172,864



















*Retroactively restated for one-for-twenty-four reverse split with effective date of November 9, 2022.

Tantech Holdings Ltd and Subsidiaries

Consolidated Statements of Cash Flows




Ended December 31,




2022



2021




Cash flows from operating activities









Net income (loss)


$

2,586,196



$

(10,692,982

)



Adjustments to reconcile net income (loss) to net cash

provided by operating activities:











Allowance (reversal of) for doubtful accounts - accounts
receivable



738,922




(52,789

)



Allowance for (reversal of) doubtful accounts - advance to
suppliers



49,038




(142,799

)



Write off manufacturing rebate receivable






5,819,059




Reversal of for doubtful accounts – other receivables









Share based compensation






1,840,000




Inventory reserve



51,676




359,501




Impairment of goodwill and intangible asset









Decrease in deferred tax liability









Depreciation expense



344,852




444,462




Amortization of intangible asset



8,356




472,140




Amortization of right of use assets



347,127




44,964




(Gain) Loss from disposal of property, plant and equipment



(6,291

)



(545,844

)



Issuance of common stock for service









Contingent liability






535,389




Changes in operating assets and liabilities:











Accounts receivable - non-related party



673,738




(9,573,463

)



Advances to suppliers



1,885,042




3,694,066




Advances to suppliers - related party






1,550,000




Inventory



43,811




(737,552

)



Prepaid expenses and other receivables



(296,077

)



(768,288

)



Manufacturing rebate receivable









Accounts payable



671,669




(16,266

)



Accrued liabilities and other payables



1,560,046




(323,441

)



Customer deposits



(1,518,851

)



318,875




Lease liabilities



(366,772

)



(19,824

)



Taxes payable



1,520,519




(295,666

)



Net cash provided by (used in) operating activities



8,293,001




(8,090,458

)














Cash flows from investing activities











Acquisition of property, plant and equipment



(79,273

)



(220,308

)



Proceeds from disposal of property, plant and equipment



35,792




748,612




Additions to intangible assets



(2,692

)



(4,220

)



Financing receivable



(44,953,234

)






Net cash (used in) provided by investing activities



(44,999,407

)



524,084















Cash flows from financing activities











(Repayment of) proceeds from (repayment of) loans from
third parties






6,917,589




Repayment of loans from third parties



(3,151,786

)



(310,000

)



Bank acceptance notes payable, net of repayment






(1,772,550

)



Cancellation of common stock due to reverse split



(4,573

)






Proceeds from bank loans



3,875,478




7,774,800




Repayment of bank loans



(4,618,488

)



(8,738,900

)



Proceeds from (repayment of) loans from related parties,
net



9,071,272




(10,428,196

)



Proceeds from issuance of common stock and warrants



10,120,400




19,362,706




Net cash provided by financing activities



15,292,303




12,805,449















Effect of exchange rate changes on cash, restricted cash and cash
equivalents



(3,171,267

)



988,502















Net (decrease) increase in cash, restricted cash and cash
equivalents



(24,585,370

)



6,227,577















Cash, restricted cash and cash equivalents, beginning of year



43,566,881




37,339,304















Cash, restricted cash and cash equivalents, end of year


$

18,981,511



$

43,566,881















Supplemental disclosure information:











Income taxes paid


$

2,590,282



$

2,278,134




Interest paid


$

474,579



$

265,248
















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

For more information, please contact:

Golden Communication International, LLC
William Tu, William.tu@goldenir.com
Tel: +1 202-656-3688

Cision View original content:https://www.prnewswire.com/news-releases/tantech-announces-full-year-2022-financial-results-301812040.html

SOURCE Tantech Holdings Ltd.