China Auto Logistics Inc

CIK:0001355042|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statements of Income [Abstract]
Net revenue	$ 125,231,888	$ 96,293,622	$ 374,524,571	$ 327,177,025
Cost of revenue	124,704,662	95,671,721	373,011,864	324,958,268
Gross profit	527,226	621,901	1,512,707	2,218,757
Operating expenses:
Selling and marketing	212,440	180,371	589,823	532,676
General and administrative	564,931	460,664	1,674,355	1,443,153
Reserve (recovery) from reserve for uncollectible receivable related to financing services	519,334		228,981	(68,813)
Total operating expenses	1,296,705	641,035	2,493,159	1,907,016
(Loss) income from continuing operations	(769,479)	(19,134)	(980,452)	311,741
Other income (expenses)
Interest income	23,240	18,811	53,198	233,274
Interest expense	(200,151)	(202,803)	(630,056)	(1,331,835)
Gain on sale of property and equipment	1,910		1,910	2,707
Miscellaneous	4,900	3,091	8,206	6,546
Total other expenses	(170,101)	(180,901)	(566,742)	(1,089,308)
Loss from continuing operations before income taxes	(939,580)	(200,035)	(1,547,194)	(777,567)
Income tax (benefit) expense			(130,118)	87,737
Net loss from continuing operations	(939,580)	(200,035)	(1,417,076)	(865,304)
Discontinued operations:
Income from operations of discontinued Airport Automall Automotive Services (including gain on disposal of $6,701,350 for the nine months ended September 30, 2016)				4,543,918
Income tax benefit				(246,791)
Net income from discontinued operations				4,790,709
Net (loss) income	(939,580)	(200,035)	(1,417,076)	3,925,405
Less: Net (loss) income attributable to noncontrolling interests	(137)	(35)	(278)	93
Net (loss) income attributable to shareholders of China Auto Logistics Inc.	(939,443)	(200,000)	(1,416,798)	3,925,312
Net (loss) income attributable to shareholders of China Auto Logistics Inc.
- continuing operations	(939,443)	(200,000)	(1,416,798)	(865,397)
- discontinued operations				4,790,709
Net (loss) income attributable to shareholders of China Auto Logistics Inc.	$ (939,443)	$ (200,000)	$ (1,416,798)	$ 3,925,312
(Loss) income per share attributable to shareholders of China Auto Logistics Inc. from
- continuing operations - basic and diluted	$ (0.23)	$ (0.05)	$ (0.35)	$ (0.21)
- discontinued operations - basic and diluted				1.19
Total (loss) earnings per share attributable to shareholders of China Auto Logistics Inc.	$ (0.23)	$ (0.05)	$ (0.35)	$ 0.98
Weighted average number of common shares Outstanding
- basic and diluted	4,095,720	4,034,494	4,055,061	4,034,494

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net (loss) income	$ (1,417,076)	$ 3,925,405
Add: loss from discontinued operations		1,910,641
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities
Reserve (recovery) on reserve for uncollectible receivable related to financing services	228,981	(68,813)
Depreciation on property, plant and equipment	67,124	58,532
Gain on disposal of property and equipment	(1,910)	(5,702)
Change in reserve for advances to suppliers		(76,554)
Gain on sale of Zhonghe		(6,701,350)
Changes in operating assets and liabilities:
Restricted cash	14,010,712	(35,507,788)
Accounts receivable	5,827
Receivables related to financing services	(3,624,954)	31,710,041
Inventories	563,361	(7,938,670)
Advances to suppliers	5,065,968	(54,723,792)
Prepaid expenses, other current assets and other assets	346,620	(14,304)
Value added tax receivable	301,220	(1,390,994)
Other assets		(32,244)
Accounts payable	2,226,743	1,952,284
Line of credit related to financing services	393,687	(24,103,238)
Notes payable to suppliers	(14,704,314)	36,344,159
Accrued expenses	23,302	318,354
Accrued interest		897,826
Customer deposits	(5,263,243)	2,161,062
Deferred revenue	1,899	(47,981)
Income tax payable	(130,118)	(62,549)
Cash used in operating activities from continuing operations	(1,906,171)	(51,395,675)
Cash used in operating activities from discontinued operations		(1,299,109)
Net cash used in operating activities	(1,906,171)	(52,694,784)
Cash flows from investing activities
Cash proceeds from sale of Zhonghe, net of cash at Zhonghe of $175,767 and amount owed to Zhonghe of $4,092,476		21,750,802
Proceeds from disposal of property and equipment	5,247	8,563
Purchase of property and equipment	(13,281)	(342,435)
Cash (used in) provided by investing activities from continuing operations	(8,034)	21,416,930
Cash provided by investing activities from discontinued operations	0	0
Net cash (used in) provided by investing activities	(8,034)	21,416,930
Cash flows from financing activities
Bank overdraft		(2,117,974)
Proceeds from short-term borrowings	19,726,363	84,846,873
Repayments of short-term borrowings	(17,539,977)	(57,538,686)
Proceeds from director	2,551,427	484,919
Payment to non controlling shareholders for Ganghu's book value at de-registration	(175,406)
Cash provided by financing activities from continuing operations	4,562,407	25,675,132
Cash provided by financing activities from discontinued operations	0	0
Net cash provided by financing activities	4,562,407	25,675,132
Effect of exchange rate change on cash	89,854	(126,192)
Net increase (decrease) in cash and cash equivalents	2,738,056	(5,728,914)
Cash and cash equivalents at the beginning of period	3,004,932	7,119,686
Cash and cash equivalents at the end of period	5,742,988	1,390,772
Supplemental disclosure of cash flow information
Interest paid	1,272,773	3,958,670
Income taxes paid		150,355
Non-cash activities:
Assumption of outstanding payable to former owner of Zhonghe by Huitong to offset the sale price of Zhonghe		$ 36,755,594
Issuance of 806,000 shares of common stock to settle debt owed to shareholder	$ 1,700,660

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 5,742,988	$ 3,004,932
Restricted cash	9,390,254	22,703,835
Receivable related to financing services, net	54,270,503	48,549,972
Inventories	13,007,389	13,049,065
Advances to suppliers, net	69,854,476	71,921,388
Prepaid expenses	35,324	376,581
Value added tax receivable	328,778	615,555
Total current assets	152,629,712	160,221,328
Property, plant, and equipment, net	272,681	317,282
Other assets	31,647	30,329
Total assets	152,934,040	160,568,939
Current liabilities:
Lines of credit related to financing services	49,671,882	47,081,763
Short term borrowings	15,778,796	12,961,389
Accounts payable	2,770,789	365,120
Notes payable to suppliers	12,021,940	25,922,779
Accrued expenses	159,173	131,128
Customer deposits	42,430,668	46,047,515
Deferred revenue	52,438	48,171
Due to former shareholder	2,041,659	1,956,625
Due to shareholder	2,248,026
Due to director	69,950	1,550,745
Income tax payable	470,727	580,058
Total current liabilities	127,716,048	136,645,293
China Auto Logistics Inc. shareholders' equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized, none issued and outstanding
Common stock, $0.001 par value, 95,000,000 shares authorized, with 4,840,394 shares issued and outstanding as of September 30, 2017 and 4,034,394 shares issued and outstanding as of December 31, 2016	4,840	4,034
Additional paid-in capital	24,679,588	22,979,734
Accumulated other comprehensive income	5,121,205	3,939,898
Accumulated deficit	(4,780,364)	(3,363,566)
Total China Auto Logistics Inc. shareholders' equity	25,025,269	23,560,100
Noncontrolling interests	192,723	363,546
Total equity	25,217,992	23,923,646
Total liabilities and shareholders' equity	$ 152,934,040	$ 160,568,939