PLANET GREEN HOLDINGS CORP. We are headquartered inFlushing, New York , NY. 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 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 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$5,052,488 for the nine months endedSeptember 30, 2022 . As ofSeptember 30, 2022 , the Company had an accumulated deficit of$98,943,143 , a working capital deficit of$9,727,924 ; its net cash used in operating activities for the nine months endedSeptember 30, 2022 was$10,208,033 .
The Company plans to continue its expansion and investments, which will require continued improvements in revenue, net income, and cash flows.
Results of Operations
Three Months Ended
The following discussion should be read in conjunction with the company's
unaudited condensed consolidated financial statement for the three months ended
Three months ended Increase / Increase /
September 30, Decrease Decrease(In Thousands of USD) 2022 2021 ($) (%) Net revenues 10,264 8,484 1,780 21 Cost of revenues 9,566 7,133 2,433 34 Gross profit 698 1,351 (653 ) (48 ) Operating expenses: Selling and marketing expenses 562 454 108 24 General and administrative expenses 2,166 3,237 (1,071 ) (33 ) Research & Developing expenses 79 -
79 N/A
Operating income (loss) (2,109 ) (2,340 ) 231 (10 )
Interest income (expense) (161 ) (139 ) (22 ) 15
Other income (expense) 11 79 (68 ) (86 )
(Loss) income before tax (2,258 ) (2,400 ) 142 (6 )
Income tax expense/(income) (38 ) - (38 ) N/A
Net (loss) income (2,296 ) (2,400 ) 104 (4 )
2
Net Revenues. Our net revenues for the three months ended September 30, 2022
amounted to $10.26 million , which represents an increase of approximately $1.78
million , or 21%, from $8.5 million for the three months ended September 30,
2021 . This increase was attributable to the acquisition of certain subsidiaries
and VIEs.
Cost of Revenues. During the three months ended
Gross Profit. Our gross profit decreased by$0.65 million , or 48% to$0.70 million for the three months endedSeptember 30, 2022 from$1.35 million for the three months endedSeptember 30, 2021 . This decrease was mainly due to the aforementioned reasons, attributable to the acquisition of certain subsidiaries and VIEs. Operating Expenses Selling and Marketing Expenses. Our selling and marketing expenses increased by$0.11 million , or 24%, to$0.56 million for the three months endedSeptember 30, 2022 from$0.45 million for the three months endedSeptember 30, 2021 This increase was mainly due to our effort to expand our business. General and Administrative Expenses. We experienced a decrease in general and administrative expense of$1.07 million from$3.24 million for the three months endedSeptember 30, 2021 to approximately$2.17 million for the three months endedSeptember 30, 2022 . This cost decrease was mainly due to the decline
in third party service fees. Net Loss Our net loss decreased by$0.1 million , or 4%, to a net loss of$2.30 million for the three months endedSeptember 30, 2022 from$2.40 million in net loss for the three months endedSeptember 30, 2021 . This decrease was mainly due to our effort to expand our business.
Nine Months Ended
The following discussion should be read in conjunction with the company's
unaudited condensed consolidated financial statement for the nine months ended
Nine months ended Increase / Increase /
September 30, Decrease Decrease(In Thousands of USD) 2022 2021 ($) (%) Net revenues 37,788 15,597 22,191 142 Cost of revenues 35,185 13,750 21,435 156 Gross profit 2,603 1,847 756 41 Operating expenses: Selling and marketing expenses 1,497 974 523 54 General and administrative expenses 5,657 5,905 (248 ) (4 ) Research & Developing expenses 151 -
151 N/A
Operating income (loss) (4,702 ) (5,032 ) 330 (7 )
Interest income (expense) (479 ) (343 ) (136 ) 40
Other income (expense) 304 316 (12 ) (4 )
(Loss) income before tax (4,877 ) (5,059 ) 182 (4 )
Income tax expense/(income) (175 ) - (175 ) N/A
Net (loss) income (5,052 ) (5,059 ) 7 -
Net Revenues. Our net revenues for the nine months endedSeptember 30, 2022 amounted to$37.79 million , which represents an increase of approximately$22.19 million , or 142%, from$15.60 million for the nine months endedSeptember 30, 2021 . This increase was attributable to the acquisition of certain subsidiaries and VIEs. 3
Cost of Revenues. During the nine months ended
Gross Profit. Our gross profit increased by$0.76 million , or 41% to$2.60 million for the nine months endedSeptember 30, 2022 from$1.85 million for the nine months endedSeptember 30, 2021 . This increase was mainly due to the aforementioned reasons, attributable to the acquisition of certain subsidiaries and VIEs. Operating Expenses Selling and Marketing Expenses. Our selling and marketing expenses increased by$0.52 million , or 54%, to$1.50 million for the nine months endedSeptember 30, 2022 from$0.97 million for the nine months endedSeptember 30, 2021 This increase was mainly due to our effort to expand our business. General and Administrative Expenses. We experienced a decrease in general and administrative expense of$0.25 million from$5.91 million for the nine months endedSeptember 30, 2021 to approximately$5.66 million for the nine months endedSeptember 30, 2022 . This cost decrease was mainly due to the decline
in third party service fees. Net Loss
Our net loss decreased by$7,000 , or 0.13%, to a net loss of$5.05 million for the nine months endedSeptember 30, 2022 from$5.06 million in net loss for the nine months endedSeptember 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 endedSeptember 30, 2022 , our primary sources of financing have been cash generated from operations and private placements. As ofSeptember 30, 2022 , we had cash and cash equivalents (including restricted cash) of$0.31 million compared to$1.13 million as ofDecember 31, 2021 . The debt to assets ratio was 35.94% and 40.41% as ofSeptember 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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