|
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
|
6 Months Ended |
|
Jun. 30, 2013
|
Jun. 30, 2012
|
| Cash flows from operating activities |
|
|
|
| Net (loss) income |
$ (2,851,028) |
|
$ 4,515,585 |
| Adjustments to reconcile net (loss) income to net cash used in operating activities: |
|
|
|
| Depreciation and amortization |
546,300 |
|
424,579 |
| Provision for doubtful debts |
2,000,000 |
|
1,409,544 |
| Write-off of intangible assets |
251,651 |
|
0 |
| Deferred taxes |
(250,000) |
|
(176,193) |
| Changes in operating assets and liabilities: |
|
|
|
| Accounts receivable |
(1,319,007) |
|
(517,391) |
| Advance to suppliers |
1,624,332 |
|
(4,710,326) |
| Prepayments |
212,662 |
|
(2,064,673) |
| Other current assets |
2,303,031 |
|
(1,781,594) |
| Due from directors |
9,447 |
|
704,615 |
| Inventories |
(3,381,523) |
|
(3,695,227) |
| Long-term prepayment |
76,525 |
|
2,020,458 |
| Accounts payable |
34,769 |
|
(1,061,293) |
| Accrued expenses and other current liabilities |
351,908 |
|
245,133 |
| Amounts due to directors |
953,257 |
|
(3,022) |
| Taxes payable |
(1,272,584) |
|
(2,014,109) |
| Deferred revenue |
0 |
|
1,504,569 |
| Net cash flows used in operating activities |
(710,260) |
|
(5,199,345) |
| Cash flows from investing activities |
|
|
|
| Acquisition of property and equipment and intangible assets |
(474,231) |
|
(4,470,890) |
| Collection on loans to third parties |
1,201,211 |
|
0 |
| Payment on loans to third parties |
(3,395,423) |
|
(2,415,229) |
| Cash advance received from sale of property |
1,233,243 |
|
0 |
| Net cash flows used in investing activities |
(1,435,200) |
|
(6,886,119) |
| Cash flows from financing activities |
|
|
|
| Proceeds from bank loans |
8,240,332 |
|
7,715,760 |
| Repayment of bank loans |
(6,467,293) |
|
0 |
| Proceeds from loans from third parties |
1,953,970 |
|
0 |
| Repayment of loans from third parties |
(2,096,569) |
|
0 |
| Net cash flows provided by financing activities |
1,630,440 |
|
7,715,760 |
| Effect of exchange rate fluctuation on cash and cash equivalents |
(53,610) |
|
(7,933) |
| Net decrease in cash and cash equivalents |
(568,630) |
|
(4,377,637) |
| Cash and cash equivalents - beginning of the year |
783,074 |
[1] |
6,139,589 |
| Cash and cash equivalents - end of the period |
214,444 |
[1] |
1,761,952 |
| Supplemental disclosure of cash flow information |
|
|
|
| Cash paid for interest |
625,336 |
|
436,134 |
| Cash paid for income taxes |
$ 705,165 |
|
$ 1,718,131 |
|
|
|