China Gerui Advanced Materials Group Ltd

CIK:0001449801|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME (USD $)	3 Months Ended				12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME (USD $)	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Statement [Abstract]
Revenue	$ 46,211,805	$ 30,927,996	$ 43,078,588	$ 45,610,707	$ 165,829,096	$ 265,486,082	$ 341,778,295
Cost of revenue	(51,624,916)	(30,178,989)	(39,557,743)	(40,404,115)	(161,765,763)	(208,541,058)	(240,199,678)
Gross Profit	(5,413,111)	749,007	3,520,845	5,206,592	4,063,333	56,945,024	101,578,617
Operating expenses:
General and administrative expenses	(3,757,658)	(2,618,166)	(2,532,275)	(2,403,101)	(11,311,200)	(13,168,132)	(10,707,418)
Selling and marketing expenses	(427,942)	(446,488)	(73,666)	(734,347)	(1,682,443)	(1,446,383)	(1,634,232)
Warrant compensation expenses							(5,700,000)
Total operating expenses	(4,185,600)	(3,064,654)	(2,605,941)	(3,137,448)	(12,993,643)	(14,614,515)	(18,041,650)
Operating (loss)/income	(9,548,711)	(2,315,647)	914,904	2,069,144	(8,930,310)	42,330,509	83,536,967
Other income and (expense):
Interest income	1,168,191	1,369,269	845,618	1,236,539	4,619,617	3,576,741	1,913,091
Interest expenses	(1,187,391)	(3,490,793)	(2,580,151)	(3,359,531)	(10,617,866)	(8,228,472)	(6,470,126)
Sundry income	794,168	36,500	3,423	98,598	932,689	351,483	602,247
(Loss)/Income before income taxes	(8,823,443)	(4,400,671)	(816,206)	44,750	(13,995,870)	38,030,261	79,582,179
Income tax expense	(469)	28,312	(29,566)	(139,824)	(141,547)	(11,897,173)	(21,961,627)
Net (loss)/income	$ (8,824,212)	$ (4,372,359)	$ (845,772)	$ (95,074)	$ (14,137,417)	$ 26,133,088	$ 57,620,552
(Net loss)/Earnings per share
- Basic	$ (0.15)	$ (0.07)	$ (0.01)		$ (0.24)	$ 0.45	$ 1.02
- Diluted	$ (0.15)	$ (0.07)	$ (0.01)		$ (0.24)	$ 0.45	$ 1.02
Weighted average common shares outstanding
- Basic	59,522,910	59,522,910	59,556,396	59,561,899	59,540,872	58,543,076
- Diluted	59,522,910	59,522,910	59,556,396	59,561,899	59,540,872	58,543,076

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Cash flows from operating activities:
Net (loss)/income	$ (14,137,417)	$ 26,133,088	$ 57,620,552
Adjustments to reconcile net (loss)/income to net cash from operating activities:
Depreciation of property, plant and equipment	11,524,981	10,899,049	7,994,638
Impairment of fixed asset	2,713,537
(Gain)/Loss on disposal of property, plant and equipment		(56,107)	12,726
Amortization of land use right	741,816	330,244	322,638
Stock-based compensation	32,891	3,705,109
Warrant compensation expense			5,700,000
Bad debts	695,244		88,447
Written down of inventories	1,416,661	476,266
Changes in assets and liabilities:
Accounts receivable	(573,816)	4,126,206	(2,135,266)
Notes receivable, net		139,228	(554,789)
Inventories	4,428,013	1,453,507	(16,712,453)
Prepaid expenses	(1,056,729)	6,435	621,611
Prepaid purchases	25,351,739	(29,666,016)	(16,284,440)
Other receivable	778,709	(142,305)	(697,676)
Accounts payable	6,038,617	(5,813,580)	5,168,689
Income tax payable	(4,741,140)	(369,983)	1,078,582
Customers deposit	2,401,273	(11,856,194)	12,911,217
Accrued liabilities and other payables	1,921,977	(1,466,919)	1,113,651
Net cash provided by/(used in) operating activities	37,536,356	(2,101,972)	56,248,127
Cash flows from investing activities:
Cash paid for property, plant and equipment	(10,064,992)	(30,561,916)	(29,816,858)
Proceeds from disposal of property, plant and equipment		59,517	9,655
Payment of acquisition of future land use right	(19,214,984)	(11,112,875)	(19,286,545)
Cash deposit - potential business initiative program - related party			(5,000,000)
Cash deposit refunded - related party			5,000,000
Advance to unrelated third parties	(2,521,616)	(4,017,304)	(3,415,724)
Repayment of advance to unrelated third parties	777,028	5,252,326
Repayment of advance to related parties	311,546
Investment in certificates of deposit, net	(3,989,448)	(16,193,047)	(3,101,978)
Net cash used in investing activities	(34,705,466)	(56,573,299)	(55,611,450)
Cash flows from financing activities:
Repayment of term loans	(63,179,835)	(50,484,204)	(45,831,718)
Proceeds from term loans	54,468,182	63,184,632	43,815,432
Repayment of capital lease financing obligations, sale-leaseback	(1,612,843)
Proceeds from sale-leaseback financing	17,993,226
Repayments of notes payable	(578,986,192)	(429,512,621)	(233,584,126)
Proceeds from notes payable	538,277,535	481,505,001	345,317,356
Proceeds received from exercise of warrants			66,473,875
Warrant compensation expense			(5,700,000)
Purchase of treasury stock	(84,736)	(1,554,674)	(4,516,744)
Changes in restricted cash, net	34,350,716	(25,788,547)	(47,212,098)
Repayment of advance from unrelated third parties	(1,673,696)
Advance from unrelated third party		1,587,554
Net cash provided by financing activities	(447,643)	38,937,141	118,761,977
Net increase/(decrease) in cash	2,386,247	(19,738,130)	119,398,654
Effect on change of exchange rates	5,813,166	1,998,222	7,724,965
Cash as of January 1	228,861,009	246,600,917	119,477,298
Cash as of December 31	237,060,422	228,861,009	246,600,917
Cash paid during the year for:
Interest paid	10,617,869	8,322,263	6,254,304
Income tax paid	5,024,234	12,267,157	20,883,046
Net cash payment during the year for:
Prepaid deposit of land use right as part of the dividend paid to acquire land use right from related company	$ 6,971,373

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2013	Dec. 31, 2012
Current assets
Cash	$ 237,060,422	$ 228,861,009
Certificates of deposit	24,200,075	16,372,128
Restricted cash	114,803,746	145,413,726
Accounts receivable, net	2,693,510	2,276,153
Notes receivable	446,008	433,379
Inventories	17,496,675	22,762,545
Prepaid purchases	52,772,830	76,268,597
Prepaid expenses	1,465,287	382,569
Other receivables, net	3,123,914	2,270,073
Total current assets	454,062,467	495,040,179
Non-current assets
Property, plant and equipment, net	132,976,737	134,110,657
Land use right, net	30,997,489	13,625,738
Deposit on acquisition of future land use right		24,076,660
Deposit on acquisition of property, plant and equipment	2,184,217	266,312
Other receivable	6,339,434	3,039,835
Certificates of deposit		3,210,221
Total non-current assets	172,495,877	178,329,423
Total assets	626,558,344	673,369,602
Current Liabilities
Accounts payable	8,471,560	2,279,246
Notes payable	225,812,313	259,546,395
Term loans	50,299,816	57,462,962
Financing obligation, sale-leaseback, current portion	6,813,055
Land use right payable	1,460,671	1,419,314
Income tax payable	336,829	5,140,306
Customers deposits	14,411,044	11,635,999
Accrued liabilities and other payables	6,799,128	5,818,060
Total current liabilities	314,404,416	343,302,282
Non-current liabilities
Financing obligation, sale-leaseback, net of current portion	13,025,260
Total non-current liabilities	13,025,260
Total liabilities	327,429,676	343,302,282
Commitments and contingencies (note 20)
Stockholders' equity
Common stock, 100,000,000 shares authorized with no par value; 59,823,730 shares issued, 59,522,910 and 59,561,899 shares outstanding as of December 31, 2013 and December 31, 2012, respectively	140,418,118	140,418,118
Additional paid-in capital		4,978,698
Treasury stock, at cost, 300,820 and 261,831 shares, as of December 31, 2013 and December 31, 2012, respectively	(498,799)	(414,063)
Retained earnings	127,963,861	163,276,046
Accumulated comprehensive income	31,245,488	21,808,521
Total stockholders' equity	299,128,668	330,067,320
Total liabilities and stockholders' equity	$ 626,558,344	$ 673,369,602