LISHUI, China, May 2, 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