Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Cash flows from operating activities    
Net income $ 7,074,742 $ 1,396,984
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 2,429,982 2,486,196
Allowance for doubtful accounts 17,994 4,837
Loss on disposal of property, plant and equipment 25,218 95,368
Deferred income tax 263,673 (64,671)
Equity in earnings of investee (105,325) 0
Gain on dilution in equity method investee (491,325) 0
Share based compensation 44,815 205,969
Changes in fair value of warrant liability (259) (126,546)
Changes in operating assets and liabilities:    
Accounts receivable 4,390,991 3,216,097
Notes receivable (1,057,366) 1,051,486
Prepayments and other receivables (3,799,960) (770,029)
Amount due from Yipeng 5,178,499 (2,187,784)
Amount due to Yipeng (1,480,335) 774,545
Inventories (9,595,161) (1,735,486)
Accounts payable (494,812) (2,843,233)
Deferred income 109,892 (75,912)
Other payables and accrued liabilities (2,145,295) 349,026
Income taxes payable (227,668) (499,161)
Net cash flows provided by operating activities 138,300 1,277,686
Cash flows from investing activities    
Acquisitions of plant and equipment (5,199,130) (4,415,690)
Proceeds from investment 0 (764,409)
Net cash flows used in investing activities (5,199,130) (5,180,099)
Cash flows from financing activities    
Proceeds from short-term loans 2,916,017 1,452,377
Repayment of short-term loans (2,841,696) 0
Repayment of long-term loans 0 (917,291)
Proceeds from non-financial institution borrowings 10,200,959 4,586,455
Repayment of non-financial institution borrowings (2,331,648) 0
Proceeds from notes payable 40,861,835 29,485,540
Repayment of notes payable (31,049,819) (30,313,965)
Proceeds from exercise of employee options 623,806 0
Change in restricted cash (4,364,417) 1,531,837
Net cash flows provided by financing activities 14,015,037 5,824,953
Effect of foreign currency translation on cash 1,047,057 (973,532)
Net increase in cash 10,001,264 949,008
Cash - beginning of period 9,324,393 5,849,967
Cash - end of period 19,325,657 6,798,975
Cash paid for:    
Income taxes 1,147,467 773,650
Interest expenses 948,831 710,394
Non-cash transactions    
Offset of deferred income related to government grant and property, plant and equipment $ 85,571 $ 26,988