CHINA GENGSHENG MINERALS, INC.

CIK:0001338578|SEC Filings

Consolidated Statements of Operations and Comprehensive Loss (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Net sales	$ 60,881,377	$ 73,534,827
Cost of goods sold	52,814,862	60,885,990
Gross margin	8,066,515	12,648,837
Operating expenses
Bad debt expense	6,946,970	1,730,835
Selling expenses	4,803,553	9,629,997
Research and development	1,394,331	923,403
General and administrative expenses	6,957,202	7,318,775
Impairment of fixed assets	0	287,247
Total operating expenses	20,102,056	19,890,257
Loss from operations	(12,035,541)	(7,241,420)
Other (income) expense
Interest income	(1,181,389)	(813,049)
Interest expense and banker's acceptance notes discount	7,743,649	7,300,886
Government grant	(1,162,913)	(558,665)
CHGS share of net loss of a non-consolidated entity	100,868	59,143
Guarantee income	(338,285)	(562,847)
Loan guarantee expense	256,785	461,578
Other (income) expense	496,875	(25,845)
Other (income) expense, net	5,915,590	5,861,201
Loss before income tax provision	(17,951,131)	(13,102,621)
Income tax provision	291,340	492,289
Net loss before non-controlling interest	(18,242,471)	(13,594,910)
Net loss attributable to non-controlling interest	(61,378)	(55,456)
Net loss attributable to CHGS stockholders	(18,181,093)	(13,539,454)
FX translation loss before non-controlling interest	727,659	292,439
FX translation loss attributable to non-controlling interest	11,809	11,422
Other comprehensive loss attributable to CHGS stockholders	715,850	281,017
Comprehensive loss before non-controlling interest	(17,514,812)	(13,302,471)
Comprehensive loss attributable to non-controlling interest	(49,569)	(44,034)
Comprehensive loss attributable to CHGS stockholders	$ (17,465,243)	$ (13,258,437)
Net loss per common share - basic and diluted	$ (0.65)	$ (0.49)
Weighted Average Common Shares Outstanding - basic and diluted	26,803,044	26,803,044

Consolidated Statements of Cash Flows (USD $)	12 Months Ended
Consolidated Statements of Cash Flows (USD $)	Dec. 31, 2013	Dec. 31, 2012
Net income before non-controlling interest	$ (18,242,471)	$ (13,594,910)
Adjustments to reconcile net loss before non-controlling interest to net cash provided by (used in) operating activities
Depreciation	3,175,595	3,041,657
Amortization - land use rights	86,935	229,498
Impairment of property, plant and equipment	0	287,247
Deferred income taxes	81,207	189,696
Earned government grant	0	(316,800)
(Gain) loss from disposal of property, plant and equipment	0	318,826
Allowance for doubtful accounts	4,758,484	1,730,835
Provision for inventory obsolencence	1,149,587	123,422
Provision for warranty	(26,547)	(85,446)
Guarantee expenses	256,785	461,578
Guarantee income	(338,285)	(562,847)
CHGS share of net loss of a non-consolidated entity	100,868	59,143
Exchange gain	(283,145)	(60,073)
Changes in operating assets and liabilities:
Accounts receivable	9,846,452	(7,452,975)
Bank acceptance notes receivable	4,618,717	(3,451,040)
Prepayments and other current assets	9,152,467	(2,185,817)
Inventories	272,375	3,978,007
Accounts payable	(214,976)	4,721,613
Banker's acceptance notes payable	(4,698,530)	(2,586,867)
Accrued expenses and other current liabilities	(541,154)	(1,901,343)
Corporate income tax payable	(1,832)	(157,566)
Travel advances to officers	9,175	315,157
Net cash flows provided by (used in) operating activities	9,161,707	(16,899,005)
Cash flows from investing activities
Acquisition of property, plant and equipment	(2,239,927)	(1,276,883)
Proceeds from disposal of property, plant and equipment	0	9,477
Net cash flows used in investing activities	(2,239,927)	(1,267,406)
Cash flows from financing activities
Pledged deposits	(8,176,947)	(5,834,418)
Receipt (reserve) of government grant	(158,545)	357,984
Proceeds from loans payable - banks, secured	114,948,626	75,040,860
Repayments of loans payable - banks, secured	(121,879,690)	(56,151,216)
Proceeds from loans payable - non-interes bearing from third parties	15,899,437	4,222,128
Repayments of loans payable - non-interes bearing from third parties	(14,766,595)	(996,432)
Proceeds from advances from Chairman and CEO	0	158,400
Repayment of advances from Chairman and CEO	(143,728)	0
Proceeds from loans payable - third parties	11,918,700	11,088,000
Repayments of loans payable - third parties	(8,882,500)	(7,920,000)
Net Cash flows provided by (used in) financing activities	(11,241,242)	19,965,306
Effect of foreign exchange rate changes on cash	80,524	15,053
Net changes in cash	(4,238,938)	1,813,948
Cash, beginning of reporting period	5,408,309	3,594,361
Cash, end of reporting period	1,169,371	5,408,309
Supplementary disclosures for cash flow information:
Interest paid	7,743,649	7,055,208
Income tax paid	618,103	346,723
Non-cash investing and financing activities:
Consideration from disposal of property, plant and equipment used to offset accounts payable	0	82,338
Deposit used as part of the consideration for acquisition of a non-consolidated entity	0	1,098,979
Acquisition of property, plant and equipment through the offset of accounts receivable	$ 0	$ 1,496,356

Consolidated Balance Sheets (USD $)	Dec. 31, 2013	Dec. 31, 2012
Current assets
Cash	$ 1,169,371	$ 5,408,309
Pledged deposits	29,061,661	27,079,527
Banker's acceptance notes receivable	6,325,532	9,913,668
Accounts receivable, net	45,291,341	55,811,468
Inventories, net	13,044,545	12,971,168
Prepayments and other current assets	5,077,041	9,509,182
Deferred tax assets	2,502	210,544
Total current assets	99,971,993	120,903,866
Investment	972,386	1,040,492
Accumulated earnings and losses	0	0
Investment in a non-consolidated entity, net	972,386	1,040,492
Property, plant and equipment	51,383,596	47,273,179
Accumulated depreciation	(14,422,743)	(10,848,175)
Property, plant and equipment, net	36,960,853	36,425,004
Land use rights	4,536,072	4,427,495
Accumulated amortization	(492,512)	(391,547)
Land use rights, net	4,043,560	4,035,948
Total Assets	141,948,792	162,405,310
Current liabilities
Loans payable	76,267,390	75,127,348
Banker's acceptance notes payable	10,460,430	13,995,550
Accounts payable	24,372,133	23,808,926
Accrued warranty	76,961	100,570
Corporate tax payable	170,333	166,719
Value added tax and other taxes payable	2,670,647	2,979,261
Accrued expenses and other current liabilities	4,468,946	4,581,885
Deferred tax liabilities	396,629	513,524
Unearned government grants	98,220	649,612
Total current liabilities	118,981,689	121,923,395
Total liabilities	118,981,689	121,923,395
Commitments and contingencies	0	0
CHGS stockholders' equity
Preferred stock par value $0.001: 50,000,000 shares authorized; none issued or outstanding	0	0
Common stock par value $0.001: 100,000,000 shares authorized, 26,803,044 shares issued and outstanding	26,803	26,803
Additional paid-in capital	28,197,310	28,197,310
Statutory and other reserves	8,241,559	8,110,972
Retained earnings (accumulated deficits)	(22,309,574)	(3,997,894)
Foreign currency translation gain (loss)	8,710,208	7,994,358
Total CHGS stockholders' equity	22,866,306	40,331,549
Non-controlling interest	100,797	150,366
Total equity	22,967,103	40,481,915
Total Liabilities and Equity	$ 141,948,792	$ 162,405,310