PLANET GREEN HOLDINGS CORP. We are headquartered inFlushing, New York . After a series of acquisitions and dispositions in 2021 and 2020, our primary business, which is carried out by Shandong Yunchu, Jingshan Sanhe, Jilin Chuangyuan, Anhui Ansheng,Fast Approach Inc and Xianning Bozhuang, includes:
? Tea product cultivation, packaging, and sales;
? To sell high-grade synthetic fuel products;
? To import beef products and sell such products in
? To sell formaldehyde, urea-formaldehyde glue, methylal, and clean fuel oil;
? To sell the barrier and explosion-proof skid-mounted refueling devices, SF
double-layer buried oil storage tank;
? Online advertising services;
Going Concern The accompanying audited consolidated financial statements have been prepared assuming that the Company will continue as a going concern. However, the Company has incurred a net loss of$9,740,486 attributable to common shareholders for the year endedDecember 31, 2021 . As ofDecember 31, 2021 , the Company had an accumulated deficit of$94,072,383 , a working capital deficit of$7,075,320 , and its net cash used in operating activities for the year endedDecember 31, 2021 was$519,396
The Company plans to continue its expansion and investments, which will require continued improvements in revenue, net income and cash flows.
Results of Operations
The following discussion should be read in conjunction with the company's
audited consolidated financial statement for the years ended
Twelve months ended Increase / Increase /
December 31, Decrease Decrease
(In Thousands of USD) 2021 2020 ($) (%)
Net revenues 37,768 3,639 34,129 938
Cost of revenues 33,922 2,370 31,552 1,331
Gross profit 3,846 1,269 2,577 203
Operating expenses:Selling and marketing expenses 2,053 160 1,893 1,183 General and administrative expenses 7,221 3,896 3,325 85 Research & Developing expenses 808 -
808 N/A
Operating income (loss) (6,236 ) (2,787 ) (3,449 ) 124
Interest income (expense) (645 ) (23 ) (622 ) 2,656
Other income (expense) 210 27 183 670
Impairment of goodwill (3,263 ) (2,340 ) (923 ) 39
Write off receivables from disposal of
former subsidiaries - (6,079 ) 6,079 (100 )
(Loss) income before tax (9,934 ) (11,202 ) 1,268 (11 )
Loss on disposal - 151 (151 ) (100 )
Income tax expense/(income) (56 ) - (56 ) N/A
Income (loss) from continuing operations - (11,202 ) 11,202 (100 )
Net income(loss)from discontinuing
operations - 151 (151 ) N/A
Net (loss) income (9,990 ) (11,051 ) 1,061 (10 )
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Net Revenues. Our net revenues for the twelve months ended December 31, 2021
amounted to $37.77 million , which represents an increase of approximately $34.13
million , or 938%, from $3.64 million for the twelve months ended December 31,
2020 . This increase was attributable to the acquisition of certain subsidiaries
and VIEs.
Cost of Revenues. During the twelve months ended
Gross Profit. Our gross profit increased by$2.58 million , or 203% to$3.85 million for the twelve months endedDecember 31, 2021 from$1.27 million for the twelve months endedDecember 31, 2020 . This increase was mainly attributable to the acquisition of certain subsidiaries and VIEs. Operating Expenses Selling and Marketing Expenses. Our selling and marketing expenses increased by$1.89 million , or 1183%, to$2.05 million for the twelve months endedDecember 31, 2021 from$0.16 million for the twelve months endedDecember 31, 2020 . This increase was mainly due to our effort to expand our business. General and Administrative Expenses. We experienced an increase in general and administrative expense of$3.33 million from$3.90 million to approximately$7.22 million for the twelve months endedDecember 31, 2021 , compared to the twelve months endedDecember 31, 2020 . This cost increase was mainly due to the increase of the professional service fees and expenses incurred by the newly acquired business operation. Net Loss Our net loss decreased by$1.06 million , or 10%, to a net loss of$9.99 million for the twelve months endedDecember 31, 2021 from$11.05 million in net loss for the twelve months endedDecember 31, 2020 . This decrease was mainly due to our effort to expand our business.
Liquidity and Capital Resources
In assessing our liquidity, we monitor and analyze our cash-on-hand and operating and capital expenditure commitments. Our liquidity needs meet our working capital requirements, operating expenses, and capital expenditure obligations. In the reporting period in the fiscal year 2021, our primary sources of financing have been cash generated from operations and private placements.
As ofDecember 31, 2021 , we had cash and cash equivalents (including restricted cash) of$1.13 million compared to$3.42 million as ofDecember 31, 2020 . The debt to assets ratio was 40.41% and 16.65% as ofDecember 31, 2021 andDecember 31, 2020 , respectively. We expect to continue to finance our operations and working capital needs in 2021 from cash generated from operations and, if needed, private financings. Suppose available liquidity is insufficient to meet our operating and loan obligations as they come due. In that case, our plans include pursuing alternative financing arrangements or reducing expenditures as necessary to meet our cash requirements. However, there is no assurance that we will raise additional capital or reduce discretionary spending to provide liquidity if needed. We cannot be sure of the availability or terms of any alternative financing arrangements.
The following table provides detailed information about our net cash flow for all financial statement periods presented in this report.
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Cash Flows Data:
For the twelve months ended
December 31 (In thousands ofU.S. dollars) 2021
2020
Net cash flows used in operating activities (519 ) (3,499 ) Net cash flows used in investing activities (11,814 ) (853 ) Net cash flows provided by financing activities 8,932
238
Operating Activities
For the year endedDecember 31, 2021 , net cash used in operating activities was$0.52 million , which consisted primarily of net loss of$9.99 million , and was adjusted by depreciation and amortization of$2.45 million , impairment of goodwill of$3.23 million and share based compensation expense of$1.16 million . The Company had an increase of$4.81 million in other receivables from related parties, an increase of$1.33 million in inventories and an increase of$4.31 million in payables and other current liabilities. For the year endedDecember 31, 2020 , net cash used in operating activities was$3.50 million , which consisted primarily of net loss of$11.10 million , and was adjusted by depreciation and amortization of$0.45 million , write off receivables of$6.08 million , impairment of goodwill of$2.34 million and exchange loss of$1.83 million .
The Company had an increase of
Investing Activities
Net cash used in investing activities for the twelve months endedDecember 31, 2021 was$11.81 million , representing an increase of$10.96 million in net cash used in investing activities from$0.85 million for the same period of 2020. This is mainly due to the recent acquisition activities. Financing Activities Net cash provided by financing activities for the twelve months endedDecember 31, 2021 , was$8.93 million , representing an increase of$8.69 million in net cash provided by financing activities from$0.24 million for the same period of 2020. This is mainly due to the proceeds from the private placement transactions. Critical Accounting Policies The preparation of financial statements in conformity withthe United States generally accepted accounting principles requires our management to make assumptions, estimates, and judgments that affect the amounts reported in the financial statements, including the notes to that, and related disclosures of commitments contingencies, if any.
We consider our critical accounting policies to require the more significant judgments and estimates in preparing financial statements, including those outlined in Note 2 to the financial statements included herein.
The Company has evaluated the timing and the impact of the guidance above on the financial statements.
As of
Off-Balance Sheet Arrangements
We do not have any off-balance arrangements.
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