PLANET GREEN HOLDINGS CORP. We are headquartered inFlushing, New York . After a series of acquisitions and dispositions during the past two years, our primary business, which is carried out by Shandong Yunchu, Jingshan Sanhe, Allinyson, Jilin Chuangyuan,Anhui Ansheng,Fast Approach Inc and Xianning Bozhuang, is:
? To sell black tea product cultivation, packaging, and sales;
? To sell high-grade synthetic fuel products
? To import beef products into
? 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
? To conduct the online game business and online advertising business
? Multimedia design, demand side platform and online advertising services;
Going Concern
The accompanying unaudited condensed 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$2,756,457 for the six months endedJune 30, 2022 . As ofJune 30, 2022 , the Company had an accumulated deficit of$96,787,007 , a working capital deficit of$7,998,551 ; its net cash used in operating activities for the six months endedJune 30, 2022 was$8,200,350 .
The Company plans to continue its expansion and investments, which will require continued improvements in revenue, net income, and cash flows.
Results of Operations
Three Months Ended
The following discussion should be read in conjunction with the company's
unaudited condensed consolidated financial statement for the three months ended
Three months ended Increase / Increase /
June 30, Decrease Decrease
(In Thousands of USD) 2022 2021 ($) (%)
Net revenues 15,544 4,876 10,668 219
Cost of revenues 14,802 4,586 10,216 223
Gross profit 742 290 452 156
Operating expenses:Selling and marketing expenses 484 296 188 63 General and administrative expenses 1,688 1,105 583 53 Research & Developing expenses 63 -
63 N/A
Operating income (loss) (1,493 ) (1,111 ) (382 ) 34
Interest income (expense) (161 ) (94 ) (67 ) 72
Other income (expense) 207 38 169 445
(Loss) income before tax (1,447 ) (1,167 ) (280 ) 24
Income tax income/(expense) (48 ) - (48 ) N/A
Net (loss) income (1,495 ) (1,167 ) (328 ) 28
2
Net Revenues. Our net revenues for the three months ended June 30, 2022 amounted
to $15.54 million , which represents an increase of approximately $10.67 million ,
or 219%, from $4.88 million for the three months ended June 30, 2021 . This
increase was attributable to the acquisition of certain subsidiaries and VIEs.
Cost of Revenues. During the three months ended June 30, 2022 , we experienced an
increase in cost of revenue of $10.22 million or 223%, in comparison to the
three months ended June 30, 2021 , from approximately $4.59 million to $14.8
million . This increase was mainly due to the acquisition of certain subsidiaries
and VIEs.
Gross Profit. Our gross profit increased by
Operating Expenses Selling and Marketing Expenses. Our selling and marketing expenses increased by$0.19 million , or 63%, to$0.48 million for the three months endedJune 30, 2022 from$0.30 million for the three months endedJune 30, 2021 . 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$0.58 million from$1.11 million for the three months endedJune 30, 2021 to approximately$1.69 million for the three months endedJune 30, 2022 . This cost increase was mainly due to the increase of professional service fees. Net Loss Our net loss decreased by$0.33 million , or 28%, to a net loss of$1.50 million for the three months endedJune 30, 2022 from$1.17 million in net loss for the three months endedJune 30, 2021 . This decrease was mainly due to our effort to expand our business.
Six Months EndedJune 30, 2022 Compared to Six months EndedJune 30, 2021 .
The following discussion should be read in conjunction with the company's
unaudited condensed consolidated financial statement for the six months ended
Six months ended Increase / Increase /
June 30, Decrease Decrease
(In Thousands of USD) 2022 2021 ($) (%)
Net revenues 27,524 7,113 20,411 287
Cost of revenues 25,619 6,617 19,002 287
Gross profit 1,905 495 1,410 285
Operating expenses:
Selling and marketing expenses 935 521 414 79
General and administrative expenses 3,491 2,646 845 32
Research & Developing expenses 71 22 49 N/A
Operating income (loss) (2,592 ) (2,693 ) 101 (4 )
Interest income (expense) (319 ) (203 ) (116 ) 57
Other income (expense) 292 237 55 23
(Loss) income before tax (2,619 ) (2,659 ) 40 (2 )
Income tax expense/(income) (137 ) - (137 ) N/A
Net (loss) income (2,756 ) (2,659 ) (97 ) 4
3
Net Revenues. Our net revenues for the six months ended June 30, 2022 amounted
to $27.52 million , which represents an increase of approximately $20.41 million ,
or 287%, from $7.11 million for the six months ended June 30, 2021 . This
increase was attributable to the acquisition of certain subsidiaries and VIEs.
Cost of Revenues. During the six months ended June 30, 2022 , we experienced an
increase in cost of revenue of $19.00 million or 287%, in comparison to the six
months ended June 30, 2021 , from approximately $6.62 million to $25.62 million .
This increase was mainly due to the acquisition of certain subsidiaries and
VIEs.
Gross Profit. Our gross profit increased by
Operating Expenses Selling and Marketing Expenses. Our selling and marketing expenses increased by$0.41 million , or 79%, to$0.94 million for the six months endedJune 30, 2022 from$0.52 million for the six months endedJune 30, 2021 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$0.85 million from$2.65 million for the six months endedJune 30, 2021 to approximately$3.49 million for the three months endedJune 30, 2022 . This cost increase was mainly due to the rise in intermediary service fees. Net Loss Our net loss decreased by$0.10 million , or 4%, to a net loss of$2.76 million for the six months endedJune 30, 2022 from$2.66 million in net loss for the six months endedJune 30, 2021 . 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 period ended
As ofJune 30, 2022 , we had cash and cash equivalents (including restricted cash) of$0.38 million compared to$1.13 million as ofDecember 31, 2021 . The debt to assets ratio was 37.28%and 40.41% as ofJune 30, 2022 andDecember 31, 2021 , respectively. We expect to continue to finance our operations and working capital needs in 2022 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. 4
The following table provides detailed information about our net cash flow for all financial statement periods presented in this report.
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