CGA(US:CGA)2019-02-14 22:01Revenue and Sales Performance - For the six months ended December 31, 2018, the fertilizer business generated approximately $1,169 million in revenue from Jinong and $348 million from Gufeng, totaling $1,517 million[130]. - Jinong sold approximately 35,994 metric tons of fertilizer products for the six months ended December 31, 2018, an increase of 30.0% compared to 27,690 metric tons for the same period in 2017[133]. - Gufeng sold approximately 114,597 metric tons of fertilizer products for the six months ended December 31, 2018, a decrease of 11.4% compared to 129,404 metric tons for the same period in 2017[133]. - The sales VIEs contributed 23.5% of total revenues for the six months ended December 31, 2018, compared to 21.6% for the same period in 2017[128]. - Approximately 65.0% of fertilizer revenue for the three months ended December 31, 2018, came from five provinces in China, with Hebei contributing 27.8%[135]. - Total net sales for the three months ended December 31, 2018 were $52,254,463, a decrease of $11,344,862 or 17.8% from $63,599,325 for the same period in 2017[155]. - Total net sales for the six months ended December 31, 2018 were $110,209,269, a decrease of $15,518,707, or 12.3%, from $125,727,976 for the same period in 2017[177]. Cost of Goods Sold - Total cost of goods sold for the three months ended December 31, 2018 was $40,010,238, a decrease of $5,086,875, or 11.3% from $45,097,113 for the same period in 2017[158]. - Jinong's cost of goods sold was $8,994,882, a decrease of $4,270,945, or 32.2% from $13,265,827 for the three months ended December 31, 2017, attributed to the decrease in net sales[159]. - Gufeng's cost of goods sold was $19,764,817, a decrease of $1,395,207, or 6.6% from $21,160,024 for the same period in 2017, linked to the decrease in net sales[160]. - Total cost of goods sold for the six months ended December 31, 2018 was $81,495,404, a decrease of $6,787,076, or 7.7%[181]. - Jinong's cost of goods sold for the six months ended December 31, 2018, was $20,198,504, a decrease of 23.4% from $26,378,583 in the same period of 2017[182]. - Gufeng's cost of goods sold decreased by 5.6% to $35,069,680 for the six months ended December 31, 2018, compared to $37,146,453 for the same period in 2017[183]. - Yuxing's cost of goods sold increased by 43.9% to $4,213,729 for the six months ended December 31, 2018, from $2,928,791 in the same period of 2017[184]. Profit and Income - Income from operations for the three months ended December 31, 2018 was $4,274,754, a decrease of $5,656,107 or 57.0% from $9,930,861 for the same period in 2017[154]. - Net income from continuing operations was $2,505,735 for the three months ended December 31, 2018, a decrease of $5,322,047 or 68.0% from $7,827,782 for the same period in 2017[154]. - Total gross profit for the three months ended December 31, 2018 decreased by $6,257,987, or 33.8%, to $12,244,225 compared to $18,502,212 for the same period in 2017[162]. - Jinong's gross profit decreased by $4,952,975, or 38.3%, to $7,992,478 for the three months ended December 31, 2018, with a gross profit margin of approximately 47.0%[163]. - Gufeng's gross profit was $2,590,873, a decrease of $696,824, or 21.2%, with a gross profit margin of approximately 11.6%[164]. - Yuxing's gross profit increased by $39,417, or 9.4%, to $456,927, with a gross profit margin of approximately 17.4%[165]. - Net income for the three months ended December 31, 2018 was $2,505,735, a decrease of $5,322,047, or 68.0%, compared to $7,827,782 for the same period in 2017[174]. - Total gross profit for the six months ended December 31, 2018, decreased by $8,731,631 to $28,713,865, with a gross profit margin of 26.1% compared to 29.8% in 2017[185]. - Net income for the six months ended December 31, 2018, was $11,517,540, a decrease of 10.6% from $12,880,540 in the same period of 2017[194]. Cash Flow and Financial Position - Cash and cash equivalents as of December 31, 2018, were $117,546,683, a decrease of 22.1% from $150,805,639 as of June 30, 2018[201]. - Net cash used in operating activities was $27,443,062 for the six months ended December 31, 2018, a decrease of 227.3% from cash provided by operating activities of $21,559,636 in the same period of 2017[203]. - General and administrative expenses were $2,209,728, or 2.0% of net sales for the six months ended December 31, 2018, a significant decrease of 71.7% from $7,817,685 in the same period of 2017[191]. - Net cash provided by financing activities was $219,722 for the six months ended December 31, 2018, compared to a net cash used of $1,330,290 in the same period of 2017[206]. - As of December 31, 2018, accounts receivable decreased by $53,955,093 or 30.9% to $120,505,844 compared to June 30, 2018, primarily due to Gufeng's accounts receivable decline of 34.0%[207]. - The allowance for doubtful accounts in accounts receivable was $17,699,871 as of December 31, 2018, down from $24,551,796 as of June 30, 2018, representing 12.8% of accounts receivable[208]. - Inventories increased by $61,228,777 or 113.8% to $115,013,591 as of December 31, 2018, with Gufeng's inventory rising by 174.2%[210]. - Advances to suppliers rose by $15,583,431 or 61.9% to $40,777,894 as of December 31, 2018, indicating fluctuations in inventory levels[211]. - Accounts payable decreased by $13,816,287 or 50.9% to $13,312,634 as of December 31, 2018, mainly due to a reduction in accounts payable for VIEs[213]. - Customer deposits decreased by $389,753 or 5.4% to $6,862,214 as of December 31, 2018, attributed to seasonal fluctuations[214]. - The company had no deferred assets as of December 31, 2018, fully amortized during the six months[209]. - The accumulated other comprehensive loss was $20.1 million as of December 31, 2018, due to foreign currency fluctuations[226]. - Short-term debt outstanding was $4.4 million as of December 31, 2018, down from $4.7 million as of June 30, 2018[227]. - The company has not experienced significant credit risk, as most customers are long-term with superior payment records[229].