TAI'AN, China, April 29,
2019 /PRNewswire/ -- China Customer Relations Centers, Inc.
(NASDAQ: CCRC) ("CCRC" or the "Company"), a leading call center
business process outsourcing ("BPO") service provider in
China, today announced its
financial results for the six and twelve months ended December 31, 2018.
Second Half of 2018 Highlights (all comparisons to prior year
unless noted)
- Revenues increased by 39.0% to a Company record of $75.4 million driven by a continued expansion of
business.
- Gross profit increased by 38.3% to $18.6
million. Gross margin decreased by 0.1 percentage points to
24.7%.
- Operating income decreased by 8.7% to $5.1 million. Operating margin decreased by 3.5
percentage points to 6.8%.
- Net income attributable to common shareholders increased by
7.5% to $5.1 million.
- EPS attributable to common shareholders was $0.28, compared to $0.26 for the same period of the prior year.
Full Year 2018 Highlights
- Revenues increased by 59.0% to $141.4
million driven by continued expansion of business.
- Gross profit increased by 66.0% to $38.9
million. Gross margin increased by 1.2 percentage points to
27.5%
- Operating income increased by 102.9% to $17.5 million. Operating margin increased by 2.7
percentage points to 12.4%.
- Net income attributable to common shareholders increased by
83.4% to $16.1 million.
- EPS attributable to common shareholders was $0.88, compared to $0.48 for 2017.
- As of December 31, 2018, the
Company had service capacity of 18,384 seats, compared to 13,992
seats as of December 31, 2017.
Mr. Gary Wang, Chairman and Chief
Executive Officer of CCRC, commented, "We continue to see strong
momentum in our business, highlighted by growth in revenues and net
income attributable to common shareholders of 39.0% and 7.5%,
respectively, in the second half of 2018, as we continue to add new
BPO clients while increasing sales volume at some of our key
existing clients. For the full year 2018, Revenues grew by 59.0% to
$141.4 million while EPS increased by
83.4% to $0.88. This capped a
four-year run of both top- and bottom- line growths where revenues
and net income attributable to common shareholders grew at CAGRs of
34.9% and 73.3%, respectively, an accomplishment that we are proud
of".
Six Months Ended December 31,
2018 Financial Results
(Unaudited)
|
|
For the Six Months
Ended December 31,
|
($ millions,
except per share data)
|
|
2018
|
|
2017
|
|
%
Change
|
Revenues
|
|
$75.4
|
|
$54.2
|
|
39.0%
|
Gross
profit
|
|
$18.6
|
|
$13.5
|
|
38.3%
|
Gross
margin
|
|
24.7%
|
|
24.8%
|
|
-0.1 pp
|
Operating
income
|
|
$5.1
|
|
$5.6
|
|
-8.7%
|
Operating
margin
|
|
6.8%
|
|
10.3%
|
|
-3.5 pp
|
Net income
attributable to CCRC
|
|
$5.1
|
|
$4.7
|
|
7.5%
|
EPS - basic and
diluted
|
|
$0.28
|
|
$0.26
|
|
7.5%
|
Revenues
For the six months ended December 31,
2018, revenues increased by $21.2
million, or 39%, to a company record high of $75.4 million from $54.2
million for the same period of the prior year. We continued
to see strong demand for our business from existing BPO clients as
well as new clients during the six months ended December 31, 2018. As of December 31, 2018, The Company's service is
delivered from call centers located in Provinces of Shandong, Jiangsu, Henan, Guangdong, Yunnan, Hubei, Jiangxi, Hebei, Anhui,
Sichuan, the Xinjiang Uygur
Autonomous Region, the Guangxi Zhuang Autonomous Region, and
Chongqing City, with a total
capacity approximately of 18,384 seats which increased by 31.4%
from 13,992 seats at the end of 2017.
Cost of revenues
Cost of revenues consists primarily of salaries, payroll taxes
and employee benefits costs of our customer service associates and
other operations personnel. Cost of revenues also includes direct
communications costs, rent expense, information technology costs,
and facilities support. Cost of revenues increased by $16.0 million, or 39.3%, to $56.8 million for the six months ended
December 31, 2018 from $40.8 million for the same period of the prior
year. As a percentage of revenues, cost of revenues was 75.3% for
the six months ended December 31,
2018, compared to 75.2% for the same period of the prior
year.
Gross profit and gross margin
Gross profit increased by $5.2
million, or 38.3%, to $18.6
million for the six months ended December 31, 2018 from $13.5 million for the same period of the prior
year. Gross margin was 24.7% for the six months ended December 31, 2018, with no change for the same
period of the prior year.
Selling, general and administrative expense
Selling, general and administrative expenses increased by
$5.6 million, or 71.5%, to
$13.5 million for the six months
ended December 31, 2018 from
$7.9 million for the same period of
the prior year. The increase in selling, general and administrative
expenses was a result of higher payroll and bonus expenses paid to
the administrative and research personnel and the management team.
As a percentage of revenues, SG&A increased from 14.6% for the
six months ended December 31, 2017 to
18.0% for the six months ended December 31,
2018. The increase in SG&A percentage was mainly due to
improvement in revenue contribution per seat. We anticipate that
our administrative expenses, particularly those related to support
personnel costs, professional fees, as well as Sarbanes-Oxley
compliance, will continue to increase in 2019 due to the continuing
expansion of our business.
Operating income and operating margin
Income from operations decreased by $0.5
million, or 8.7%, to $5.1
million for the six months ended December 31, 2018 from $5.6 million for the same period of the prior
year. The decrease in operating income was mainly due to a
significant increase in selling, general and administrative
expenses. Operating margin was 6.8% for the six months ended
December 31, 2018, compared to 10.3%
for the same period of the prior year.
Other income
We received government grants, which are discretionary and
unpredictable in nature, of $1.1
million during the six months ended December 31, 2018, compared to $0.6 million during the same period of the prior
year. Government grants as a percentage of net income were 21.9%
for the six months ended December 31,
2018, compared to 11.8% for the same period of the prior
year. Total other income, net of other expenses, increased by
$0.9 million, or 295.8%, to
$1.2 million for the six months ended
December 31, 2018 from $0.3 million for the same period of the prior
year.
Income before provision for income taxes
Income before provision for income taxes increased by
$0.4 million, or 7.1%, to
$6.3 million for the six months ended
December 31, 2018 from $5.9 million for the same period of the prior
year. The increase in income before provision for income taxes was
mainly due to the increase in other income and partially offset by
a slight decrease in income from operations.
Income taxes
Provision for income taxes was $1.1
million for the six months ended December 31, 2018, compared to $1.0 million for the same period of the prior
year.
Net income and earnings per share
Net income increased by $0.3
million, or 6.3%, to $5.2
million for the six months ended December 31, 2018 from $4.9 million for the same period of the prior
year. After deducting net income attributable to noncontrolling
interest, net income attributable to common shareholders was
$5.1 million, or $0.28 per basic and diluted share, for the six
months ended December 31, 2018,
compared to $4.7 million, or
$0.26 per basic and diluted share,
for the same period of the prior year.
Fiscal Year 2018 Financial Results
|
|
For the Twelve
Months Ended December 31,
|
($ millions,
except per share data)
|
|
2018
|
|
2017
|
|
%
Change
|
Revenues
|
|
$141.4
|
|
$89.0
|
|
59.0%
|
Gross
profit
|
|
$38.9
|
|
$23.4
|
|
66.0%
|
Gross
margin
|
|
27.5%
|
|
26.3%
|
|
1.2 pp
|
Operating
income
|
|
$17.5
|
|
$8.6
|
|
102.9%
|
Operating
margin
|
|
12.4%
|
|
9.7%
|
|
2.7 pp
|
Net income
attributable to CCRC
|
|
$16.1
|
|
$8.8
|
|
83.4%
|
EPS - basic and
diluted
|
|
$0.88
|
|
$0.48
|
|
83.3%
|
Revenues
For the year of 2018, revenues increased by $52.5 million, or 59.0%, to $141.4 million from $89
million for 2017. We continued to see strong demand for our
business from existing BPO clients as well as new clients during
the twelve months ended December 31,
2018.
Our Top 5 customers: China Mobile and its provincial
subsidiaries; DiDi Chuxing; Taobao; China Merchants Bank Credit
Card Center; and, Chongqing
subsidiary of China Telecom, accounted for 58% of revenues in 2018,
compared to 57% of revenues generated by our top 5 customers in
2017.
Cost of revenues
Cost of revenues increased by $37.0
million, or 56.4%, to $102.6
million for 2018 from $65.6
million for 2017. As a percentage of revenues, cost of
revenues was 72.5% for 2018, compared to 73.7% for 2017.
Gross profit and gross margin
Gross profit increased by $15.5
million, or 66.0%, to $38.9
million for 2018 from $23.4
million for 2017. Gross margin increased by 1.2 percentage
points to 27.5% for 2018 from 26.3% for 2017.
Selling, general and administrative expense
Selling, general and administrative expenses increased by
$6.6 million, or 44.4%, to
$21.3 million for 2018 from
$14.8 million for 2017. The increase
in selling, general and administrative expenses was a result of
higher payroll and bonus expenses paid to the administrative and
research personnel and the management team. We anticipate that our
administrative expenses, particularly those related to support
personnel costs, professional fees, as well as Sarbanes-Oxley
compliance, will continue to increase in 2019 due to the continuing
expansion of our business.
Operating income and operating margin
Income from operations increased by $8.9
million, or 102.9%, to $17.5
million for 2018 from $8.6
million for 2017. The increase in operating income was
mainly driven by an increase in gross profit and partially offset
by increases in selling, general and administrative expenses.
Operating margin was 12.4% for 2018, compared to 9.7% for 2017.
Other income (expenses)
We received government grants, which are discretionary and
unpredictable in nature, of $1.8
million during 2018, compared to $1.9
million during 2017. Government grants as a percentage of
net income were 10.5% for 2018, compared to 20.7% for 2017. Total
other income, net of other expenses was $1.7
million for 2018, essentially unchanged from 2017.
Income before provision for income taxes
Income before provision for income taxes increased by
$8.9 million, or 85.8%, to
$19.3 million for 2018 from
$10.4 million for 2017. The increase
in income before provision for income taxes was mainly due to the
increase in income from operations in 2018.
Income taxes
Provision for income taxes was $3.0
million for 2018, compared to $1.3
million for 2017.
Net income and earnings per share
Net income increased by $7.2
million, or 78.8%, to $16.3
million for 2018 from $9.1
million for 2017. After deducting net income attributable to
noncontrolling interest, net income attributable to common
shareholders was $16.1 million, or
$0.88 per basic and diluted share,
for 2018, compared to $8.8 million,
or $0.48 per basic and diluted share,
for 2017.
Financial Conditions
As of December 31, 2018, the
Company had cash of $24.4 million,
compared to $18.6 million at
December 31, 2017. Total working
capital was $41.1 million as of
December 31, 2018, compared to
$30.0 million at the end of 2017.
Net cash provided by operating activities was $12.1 million for the twelve months ended
December 31, 2018, compared to
$3.0 million for 2017. Net cash used
in investing activities was $4.7
million for the twelve months ended December 31, 2018, compared to $5.4 million for 2017. Net cash used in financing
activities was $0.1 million for the
twelve months ended December 31,
2018, compared to net cash provided by financing activities
of $3.7 million for 2017.
Recent Development
On November 29, 2018, the Company
announced that the independent committee of the Company's board of
directors (the "Board") has retained Duff & Phelps (Duff
& Phelps, LLC and Duff & Phelps Securities, LLC) as its
financial advisor, Sidley Austin LLP as its international legal
counsel, and Maples and Calder (Hong
Kong) LLP as its British Virgin
Islands legal counsel in connection with its review and
evaluation of the preliminary non-binding proposal letter dated
November 10, 2018 from Mr.
Zhili Wang, the Company's founder,
chairman of the Board and chief executive officer and Guangzhou
Cornerstone Asset Management Co., Ltd. (together with Mr. Wang, the
"Buyer Group"), to acquire all of the outstanding shares of the
Company not already owned by the Buyer Group in a going private
transaction.
On August 11, 2018, The Company
held its 2018 Annual Meeting of Stockholders at its headquarters in
Tai'An City, Shandong Province. The Company's shareholders:
1) reelected Weixin Wang and Owens
Meng as Class II Directors; 2) ratified the appointment of
MaloneBailey, LLP as its independent registered public accounting
firm for the fiscal year of 2018; and 3) approved the 2018 Share
Incentive Plan.
Notice
Rounding amounts and percentages: Certain amounts and
percentages included in this press release have been rounded for
ease of presentation. Percentage figures included in this press
release have not in all cases been calculated on the basis of such
rounded figures, but on the basis of such amounts prior to
rounding. For this reason, certain percentage amounts in this press
release may vary from those obtained by performing the same
calculations using the figures in the financial statements. In
addition, certain other amounts that appear in this press release
may not sum due to rounding.
About China Customer Relations Centers, Inc.
The Company is a leading BPO service provider in China focusing on the complex, voice-based and
online-based segments of customer care services, including:
- customer relationship management;
- technical support;
- sales;
- customer retention;
- marketing surveys; and
- research.
The Company's service is currently delivered from call centers
located in Provinces of Shandong,
Jiangsu, Henan, Guangdong, Yunnan, Hubei, Jiangxi, Hebei, Anhui,
Sichuan, the Xinjiang Uygur
Autonomous Region, the Guangxi Zhuang Autonomous Region, and
Chongqing City, with a capacity of
approximately 18,384 seats. More information about the Company can
be found at: www.ccrc.com.
Forward-Looking Statement
This press release contains forward-looking statements as
defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. When the Company uses words such as
"may," "will," "intend," "should," "believe," "expect,"
"anticipate," "project," "estimate" or similar expressions that do
not relate solely to historical matters, it is making
forward-looking statements. Specifically, the Company's
statements regarding its: 1) anticipated increase in administrative
costs; and 2) continued growth and business outlook, are
forward-looking statements. Forward-looking statements are not
guarantee of future performance and involve risks and uncertainties
that may cause the actual results to differ materially from the
Company's expectations discussed in the forward-looking statements.
These statements are subject to uncertainties and risks including,
but not limited to, the following: the Company's goals and
strategies; the Company's future business development; product and
service demand and acceptance; changes in technology; economic
conditions; the growth of the call center business process
outsourcing market in China;
reputation and brand; the impact of competition and pricing;
government regulations; fluctuations in general economic and
business conditions in China and
assumptions underlying or related to any of the foregoing and other
risks contained in reports filed by the Company with the Securities
and Exchange Commission. For these reasons, among others,
investors are cautioned not to place undue reliance upon any
forward-looking statements in this press release. Additional
factors are discussed in the Company's filings with the U.S.
Securities and Exchange Commission, which are available for review
at www.sec.gov. The Company undertakes no obligation to publicly
revise these forward-looking statements to reflect events or
circumstances that arise after the date hereof.
For more information, please contact:
Tony Tian,
CFA
Weitian Group LLC
Email: ttian@weitianco.com
Phone: +1-732-910-9692
CHINA CUSTOMER
RELATIONS CENTERS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
24,419,912
|
|
$
|
18,628,365
|
Accounts receivable,
net
|
|
30,050,506
|
|
|
23,689,583
|
Notes receivable -
related party
|
|
-
|
|
|
968,277
|
Prepayments
|
|
1,689,835
|
|
|
1,277,149
|
Prepayment, related
party
|
|
91,618
|
|
|
-
|
Due from related
parties, net
|
|
199,994
|
|
|
219,051
|
Income taxes
recoverable
|
|
527,995
|
|
|
-
|
Other current
assets
|
|
1,959,923
|
|
|
1,084,929
|
Total current
assets
|
|
58,939,783
|
|
|
45,867,354
|
Equity
investments
|
|
3,491,653
|
|
|
3,688,676
|
Property and
equipment, net
|
|
8,290,460
|
|
|
6,067,338
|
Deferred tax
assets
|
|
486,009
|
|
|
313,463
|
Total non-current
assets
|
|
12,268,122
|
|
|
10,069,477
|
Total
assets
|
$
|
71,207,905
|
|
$
|
55,936,831
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY
|
|
|
|
|
|
Accounts
payable
|
$
|
610,724
|
|
$
|
495,177
|
Accounts payable -
related parties
|
|
162,112
|
|
|
46,661
|
Accrued liabilities
and other payables
|
|
5,673,159
|
|
|
4,724,823
|
Deferred
revenue
|
|
361,636
|
|
|
607,660
|
Wages
payable
|
|
7,082,138
|
|
|
5,565,078
|
Income taxes
payable
|
|
364,157
|
|
|
541,321
|
Short term
loans
|
|
3,635,623
|
|
|
3,842,371
|
Total current
liabilities
|
|
17,889,549
|
|
|
15,823,091
|
Total
liabilities
|
|
17,889,549
|
|
|
15,823,091
|
Equity
|
|
|
|
|
|
Common shares, $0.001
par value, 100,000,000 shares authorized, 18,329,600 shares
issued and outstanding as of December 31,
2018 and December 31, 2017
|
|
18,330
|
|
|
18,330
|
Additional paid-in
capital
|
|
11,202,396
|
|
|
11,202,396
|
Retained
earnings
|
|
40,065,822
|
|
|
25,292,402
|
Statutory
reserves
|
|
3,916,149
|
|
|
2,597,031
|
Accumulated other
comprehensive income (loss)
|
|
(2,592,289)
|
|
|
80,868
|
Total China Customer
Relations Centers, Inc. shareholders' equity
|
|
52,610,408
|
|
|
39,191,027
|
Noncontrolling
interest
|
|
707,948
|
|
|
922,713
|
Total
equity
|
|
53,318,356
|
|
|
40,113,740
|
Total liabilities and
equity
|
$
|
71,207,905
|
|
$
|
55,936,831
|
CHINA CUSTOMER
RELATIONS CENTERS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
|
|
For The Years
Ended December 31,
|
|
2018
|
|
2017
|
|
2016
|
|
|
|
|
|
|
Revenues,
net
|
$
|
141,433,641
|
|
$
|
88,971,787
|
|
$
|
72,731,706
|
Cost of
revenues
|
|
102,567,896
|
|
|
65,562,563
|
|
|
53,098,552
|
Gross
profit
|
|
38,865,745
|
|
|
23,409,224
|
|
|
19,633,154
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling, general
& administrative expenses
|
|
21,329,908
|
|
|
14,766,524
|
|
|
11,082,106
|
Total operating
expenses
|
|
21,329,908
|
|
|
14,766,524
|
|
|
11,082,106
|
Income from
operations
|
|
17,535,837
|
|
|
8,642,700
|
|
|
8,551,048
|
Interest
expense
|
|
(404,958)
|
|
|
(1,609)
|
|
|
(50,383)
|
Government
grants
|
|
1,709,297
|
|
|
1,885,340
|
|
|
801,125
|
Other
income
|
|
552,205
|
|
|
175,995
|
|
|
479,387
|
Other
expense
|
|
(124,370)
|
|
|
(331,641)
|
|
|
(55,003)
|
Total other
income
|
|
1,732,174
|
|
|
1,728,085
|
|
|
1,175,126
|
Income before
provision for income taxes
|
|
19,268,011
|
|
|
10,370,785
|
|
|
9,726,174
|
Income tax
provision
|
|
2,966,880
|
|
|
1,255,654
|
|
|
1,448,923
|
Net
income
|
|
16,301,131
|
|
|
9,115,131
|
|
|
8,277,251
|
Less: net income
attributable to noncontrolling interest
|
|
208,593
|
|
|
341,672
|
|
|
-
|
Net income
attributable to China Customer Relations Centers,
Inc.
|
$
|
16,092,538
|
|
$
|
8,773,459
|
|
$
|
8,277,251
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
|
|
|
|
|
|
|
Net income
|
$
|
16,301,131
|
|
$
|
9,115,131
|
|
$
|
8,277,251
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
(2,741,283)
|
|
|
2,141,796
|
|
|
(1,537,534)
|
Total
Comprehensive income
|
|
13,559,848
|
|
|
11,256,927
|
|
|
6,739,717
|
Less: Comprehensive
income attributable to noncontrolling interest
|
|
140,467
|
|
|
401,324
|
|
|
-
|
Comprehensive
income attributable to China Customer Relations
Centers, Inc.
|
$
|
13,419,381
|
|
$
|
10,855,603
|
|
$
|
6,739,717
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to China Customer Relations
Centers, Inc.
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.88
|
|
$
|
0.48
|
|
$
|
0.45
|
Diluted
|
$
|
0.88
|
|
$
|
0.48
|
|
$
|
0.45
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
18,329,600
|
|
|
18,329,600
|
|
|
18,329,600
|
Diluted
|
|
18,329,600
|
|
|
18,329,600
|
|
|
18,329,600
|
CHINA CUSTOMER
RELATIONS CENTERS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
For The Years
Ended December 31,
|
|
2018
|
|
2017
|
|
2016
|
Cash flows from
operating activities
|
|
|
|
|
|
Net income
|
$
|
16,301,131
|
|
$
|
9,115,131
|
|
$
|
8,277,251
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
2,635,242
|
|
|
1,852,152
|
|
|
1,542,352
|
Allowance for
doubtful accounts
|
|
952,439
|
|
|
429,803
|
|
|
805,870
|
Loss on disposal of
property and equipment
|
|
34,166
|
|
|
2,416
|
|
|
-
|
Deferred income
taxes
|
|
(196,909)
|
|
|
(230,043)
|
|
|
(84,067)
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
(7,937,804)
|
|
|
(9,269,755)
|
|
|
(5,561,722)
|
Prepayments
|
|
(887,778)
|
|
|
(1,313,830)
|
|
|
(767,516)
|
Prepayment, related
party
|
|
(95,244)
|
|
|
-
|
|
|
-
|
Other current
assets
|
|
(970,199)
|
|
|
25,925
|
|
|
(63,669)
|
Accounts
payable
|
|
147,818
|
|
|
(505,372)
|
|
|
193,639
|
Accounts payable -
related parties
|
|
122,630
|
|
|
(88,136)
|
|
|
25,276
|
Wages
payable
|
|
1,884,440
|
|
|
2,393,214
|
|
|
277,335
|
Income taxes
recoverable
|
|
(548,893)
|
|
|
-
|
|
|
-
|
Income taxes
payable
|
|
(153,896)
|
|
|
(386,825)
|
|
|
(67,681)
|
Deferred
revenue
|
|
(221,771)
|
|
|
(38,813)
|
|
|
634,644
|
Accrued liabilities
and other payables
|
|
1,077,098
|
|
|
1,016,373
|
|
|
454,572
|
Net cash provided
by operating activities
|
|
12,142,470
|
|
|
3,002,240
|
|
|
5,666,284
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
(4,768,139)
|
|
|
(2,082,719)
|
|
|
(478,775)
|
Proceed from disposal
of property and equipment
|
|
9,197
|
|
|
108
|
|
|
-
|
Repayment from third
parties
|
|
-
|
|
|
233,596
|
|
|
-
|
Loans on third
parties
|
|
-
|
|
|
-
|
|
|
(563,896)
|
Repayments
from related parties
|
|
117,802
|
|
|
-
|
|
|
40,011
|
Advance to related
parties
|
|
(105,827)
|
|
|
(7,400)
|
|
|
(18,210)
|
Payments for equity
investments
|
|
(1,461)
|
|
|
(3,509,404)
|
|
|
-
|
Net cash used in
investing activities
|
|
(4,748,428)
|
|
|
(5,365,819)
|
|
|
(1,020,870)
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Contribution
from noncontrolling investor in subsidiary
|
|
-
|
|
|
353,581
|
|
|
-
|
Dividend distributed
to noncontrolling investor in subsidiary
|
|
(355,232)
|
|
|
-
|
|
|
-
|
Repayment to related
parties
|
|
-
|
|
|
(473,914)
|
|
|
-
|
Borrowings of short
term loans
|
|
3,891,596
|
|
|
3,780,490
|
|
|
-
|
Repayment of short
term loans
|
|
(3,625,448)
|
|
|
-
|
|
|
(1,510,962)
|
Net cash provided
by (used in) financing activities
|
|
(89,084)
|
|
|
3,660,157
|
|
|
(1,510,962)
|
Effect of exchange
rate changes on cash, cash equivalents and
restricted cash
|
|
(1,513,411)
|
|
|
884,519
|
|
|
(811,033)
|
Net change in
cash, cash equivalents and restricted cash
|
|
5,791,547
|
|
|
2,181,097
|
|
|
2,323,419
|
Cash, cash
equivalents and restricted cash, beginning of the
year
|
|
18,628,365
|
|
|
16,447,268
|
|
|
14,123,849
|
Cash, cash
equivalents and restricted cash, end of the
year
|
$
|
24,419,912
|
|
$
|
18,628,365
|
|
$
|
16,447,268
|
Supplemental cash
flow information
|
|
|
|
|
|
|
|
|
Interest
paid
|
$
|
404,958
|
|
$
|
1,609
|
|
$
|
50,383
|
Income taxes
paid
|
$
|
3,929,237
|
|
$
|
1,767,983
|
|
$
|
1,558,290
|
Non-cash investing
and financing activities
|
|
|
|
|
|
|
|
|
Transfer from
prepayments to property and equipment
|
$
|
392,637
|
|
$
|
866,940
|
|
$
|
932,192
|
Liabilities assumed
in connection with purchase of PPE
|
$
|
88,112
|
|
$
|
252,317
|
|
$
|
672,715
|
Property and
equipment paid by related party
|
$
|
-
|
|
$
|
15,539
|
|
$
|
-
|
Short term debt
reclassified to due to related party
|
$
|
-
|
|
$
|
-
|
|
$
|
203,048
|
Advance to related
party settled through service provided
|
$
|
-
|
|
$
|
52,215
|
|
$
|
-
|
Settlement of notes
receivable from a third party
|
$
|
-
|
|
$
|
328,783
|
|
$
|
-
|
Operating expenses
paid by related party
|
$
|
-
|
|
$
|
-
|
|
$
|
107,634
|
|
|
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents and restricted cash to the
consolidated balance sheets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
24,419,912
|
|
$
|
18,628,365
|
|
$
|
15,947,268
|
Restricted
cash
|
|
-
|
|
|
-
|
|
|
500,000
|
Total cash, cash
equivalents and restricted cash
|
$
|
24,419,912
|
|
$
|
18,628,365
|
|
$
|
16,447,268
|
View original
content:http://www.prnewswire.com/news-releases/china-customer-relations-centers-inc-announces-second-half-and-full-year-2018-financial-results-300839603.html
SOURCE China Customer Relations Centers, Inc.