WEB NEWS Comments & Business Outlook
Second Quarter 2019 Financial Results
Total revenues increased by 40.3% from $14.93 million to $20.95 million. The increase in our total revenue was because of increased sales volume and increased number of customers and distributors.
Net loss from discontinued operation increased by 50.7% from a net loss of $0.50 million to a net loss of $0.76 million.
Mr. Zhengyu Wang, Chairman of Board of Directors and former Chief Executive Officer of Tantech, said, "We are pleased with the acceleration in our revenue growth, which was up 40.3% for the first six months of 2019 as compared to the same period in 2018. In the past, our primary sales channel for charcoal products was directly through supermarkets. We found that given required credit terms, the payback period was too long for the working capital required. As a result, we changed our distribution to leverage the wholesale channel, while driving sales and a significant improvement in our collection process. Our actions along with increased Chinese consumer environmental awareness, helped positively improve our overall sales and cash flow generation. Our net income, on a per share basis, was adversely impacted by the loss per share of $0.03 from discontinued operations which are no longer strategic to our Company. These headwinds are not operational issues and should therefore not impact our results moving forward. Adding to our confidence is our healthy balance sheet, with a cash and cash equivalents balance of $14.8 million at June 30, 2019, compared to $7.7 million at December 31, 2018."
"While our Company's core business remains charcoal consumer products, we continue our business transformation over the longer term into a leading developer of electric motor vehicles. We are taking a cautious approach and funding our transformation primarily through the operating cash flow of our core charcoal product sales as we maintain our competitive advantages in that business. We view the long-term opportunities for electric motor vehicles as highly compelling in China and worldwide. Over the short term, however, growth is likely to fluctuate as government incentives, subsidy policies and financing availability evolves. Our goal is to develop a business that can thrive even without government subsidies, knowing that future success will require that. We must achieve a great driver experience in a low-cost model, able to withstand typical developing market growth rate fluctuations. While we expect the transformation process to remain challenging, we are confident we can be successful as we maintain our core business and seek new, diversified business opportunities in the electric motor vehicle market. This strategic approach will allow us to also continue protecting the Company's long-term mine investments and to maintain appropriate working capital levels."
Comments & Business Outlook
LISHUI, China, May 11, 2018 /PRNewswire / -- Tantech Holdings Ltd. (TANH), ("Tantech" or the "Company"), an alternative energy company with diversified operations, including the manufacturing of bamboo-based charcoal products and Electric Vehicles (EVs), today announced its financial results for its fiscal year ended December 31, 2017.
Financial Highlights (All Figures Approximated)
Total revenues increased by 6.3%, or approximately $2.6 million, to $43.1 million
Despite the decline in gross profit, the Company was still able to achieve net income attributable to common stockholders of $3.8 million, or $0.15 per share for fiscal year 2017
In FY 2017, the Company acquired a 70% ownership interest in Suzhou E Motors Co., Ltd. ("Suzhou E-Motors"), a Chinese manufacturer of special purpose electric vehicles and power batteries. After the acquisition, Suzhou E-Motors became a majority-owned subsidiary of the Company. During the reporting period, Suzhou E-Motors generated $1.9 million in revenue."
Mr. Wang continued, "In a bid to improve efficiencies, the Company agreed to dispose of its Electric Double-Layer Capacitor ("EDLC") carbon business during the reporting period. Compared to lithium-ion batteries, EDLC carbon, the key material to make super capacitors, is more environmentally friendly and requires less time to recharge. However, as China's policies prefer lithium-ion batteries over other battery technologies in the electric automobile industry, demand for EDLC and super capacitors has shrunk sharply. Recognizing the challenges, the Company in December sold the EDLC carbon business to a Chinese start-up company controlled by Dr. Zaihua Chen, the Company's former Chief Technology Officer.
"In early 2018, the Company also acquired an 18% equity interest in Libo Haokun Stone Co., which owns a small marble quarry in the southwestern province of Guizhou, for $18.2 million. Since its establishment, the Company has accumulated rich customer resources and has built a strong brand image in home decoration and indoor air purification. With China's growing economy and rising household income, marble has become a favored choice for commercial construction and home decoration because of its endurance and environmentally friendly fabrication process. The investment in Libo Haokun was aimed at diversifying risk and creating more value for our shareholders.," continued Mr. Wang.
"Looking ahead to fiscal 2018, as China makes adjustments to government policies for alternative energy automobiles, the Company will accelerate the research and development for and launch of new models, expand production capacity and improve product competitiveness to satisfy various demands and will work toward realizing its goal of becoming the leading manufacturer of special purpose electric automobiles in China." Mr. Wang concluded.
Comments & Business Outlook
LISHUI, China, Nov. 14, 2017 /PRNewswire / -- Tantech Holdings Ltd. (TANH) ("Tantech" or the "Company"), a leading clean energy company in China, announced today that the Company has appointed Dr. Yonghua Zhu as its Chief Scientist, in a bid to develop its electric vehicle (EV) business. In this capacity, Dr. Zhu will oversee the Company's automotive projects and lead the research and development of autonomous driving technology for smart special-purpose electric vehicles (EVs).
Dr. Zhu has been engaged in wireless transmission technology research and development for over years, and has a proven track record in applying bioengineering and artificial intelligence technology to the automotive sector. His accomplishments include, but not limited to, taking part in formulating the Federal Motor Vehicle Safety Standard (FMVSS) 214 and obtaining three U.S. patents including one used for testing human reactions to crashes. Dr. Zhu has also been awarded three top prizes for his superior academic work in the automotive field. Since 2015, Dr. Zhu has been participating in developing electric vehicles for Hong Kong, a Special Administrative Region of China. He is currently involved in the development of 19-seat, right-hand-drive electric vans. He is also teaming up with a Taiwan-based company to develop the battery management system for electric vehicles, which will be mainly used in the Hong Kong market.
In his role as Tantech's Chief Scientist, Dr. Zhu will be responsible for building the technology platform for autonomous driving, addressing technical and quality issues, as well as providing guidance for key projects and tasks in all aspects.
Dr. Zhu said that capitalizing on the Company's research resources and R&D strength, Tantech will focus on developing autonomous driving technology in the near future for electric road sweepers and related EVs produced by Suzhou E-Motors, a subsidiary of Tantech. The move will not only help Suzhou E-Motors upgrade products but also build a professional platform to drive innovation for the future.
Mr. Zhengyu Wang, Tantech's Chief Executive Officer, said: "We are delighted to welcome Dr. Zhu to our team. The appointment is in line with the Company's strategy of developing expertise in products and services used for the electric vehicle sector to build a supply chain covering China's entire automotive industry." Mr. Wang added that with the professional team led by Dr. Zhu, the Company can further drive innovation and develop leading products to realize sustainable growth, which is in the best interests of the Company as well as all of its shareholders.
We shall remind investors that the appointment is part of the Company's efforts to build up technical reserves for long-term development, and it is not expected to have a material impact on the Company's financial performance in the short term.
Dr. Zhu, a Hong Kong resident, was born in 1951. His major research and work experience include:
From September 1986 to September 1988: conducted postdoctoral research at the Department of Automotive Engineering at the Mechanics Institute at Tsinghua University in Beijing, China;
From November 1988 to November 1990: conducted postdoctoral research at the Center for Bioengineering at Wayne State University of the U.S.A.;
From November 1990 to November 1993: appointed as an associate research fellow and associate professor at Wayne State University;
From November 1993 to January 2011: served as the general manager for Asia Pacific at First Technology Safety System Inc. in the U.S.A.;
From March 2012 to December 2016: served as the principal scientist and chief technology officer at Suzhou Automotive Research Institute, Tsinghua University in Suzhou, China;
From January 2017 to August 2017: was the founder and president for First Technology Energy Corporation in Hong Kong.
Contract Awards
LISHUI, China, Sept. 21, 2017 /PRNewswire / -- Tantech Holdings Ltd. (TANH) (the "Company" or "Tantech"), a leading clean energy company in China, announced today that its 70% owned subsidiary, Suzhou E Motors Buses Co., Ltd., has signed sales contracts worth approximately $20 million (RMB128.8 million) for its electric vans and buses.
According to two separate contracts dated September 21, 2017 with Zhenjiang Baichuan New Energy Automobile Co., Ltd. (the "Buyer"), the Buyer will purchase 450 all-electric vans (ZQK6810EV6) and 10 all-electric buses (ZQK6810EV8) from Tantech, with a projected unit sales price of RMB 280,000 (or US$43,077). The unit sales price excludes Chinese government subsidies for electric car sales that Tantech may be eligible to receive. The Buyer has made an earnest money deposit to lock in price and must pay approximately 30% of the total purchase amount by November 1, 2017 to move forward with the purchase, and the buyer will pay the balance at delivery. The Company is targeting to deliver the order the end of 2017.
As previously announced In July, Tantech's all-electric van (ZQK6810EV6) and all-electric bus (ZQK6810EV8) were both approved for sale by China's Ministry of Industry and Information Technology ("MIIT"). The van, specially designed for airports and tourist attractions, can carry as many as 34 passengers. The bus, developed to satisfy demand for urban public transportation, can carry 46 passengers. Both vehicles are expected to deliver a driving range of 250 km, or 155 miles per charge.
"China today is already the world's largest market for new energy vehicles (NEVs), and Tantech is committed to contributing to further development of electric vehicles in the country." commented by Mr. Zhengyu Wang, Chairman and Chief Executive Officer of Tantech, "We have been devoting our corporate efforts to building a more environmentally friendly world. In addition to manufacturing a series of bamboo charcoal products, Tantech has entered the electric vehicle industry through the recent acquisition of Suzhou E Motor. This new sales contract, along with the recent MIIT approval of two of our EV models, laid a solid foundation for us to gain market share in the fast growing Chinese EV segment."
China is the world's largest market for automobiles, with over 28 million vehicles sold in 2016, a number that is expected to top 40 million per year by mid-2020. The rapid development of China's car market has brought serious environment problems, with about a quarter of PM2.5 or fine particles of dust smaller than 2.5 micrometers in diameter that are hazardous to human health, in Chinese big cities coming from internal combustion engines.
To combat this growth in pollution, China has worked to develop its electric vehicle market through incentives as it works to cut its carbon emissions. Last year China sold about 500,000 alternative energy vehicles, accounting for almost half of the global sales of such vehicles.
Speaking at an auto forum earlier this month, Mr. Guobin Xin, China's Vice Minister of Industry and Information Technology said that Chinese regulators are working to come up with a timeline for phasing out the sales and production of fossil fuel cars.
Mr. Wang is optimistic about the impact of such trends on China's green carmakers and noted that Tantech is in talks with other clients over electric vehicle sales and hopes to enter more purchase agreements in the near future. Over the long run, Tantech will continue to accelerate research and development efforts to enhance the Company's competitiveness in China's promising electric vehicle market.
Comments & Business Outlook
LISHUI, China, July 17, 2017 /PRNewswire / -- Tantech Holdings Ltd. (TANH), ("Tantech" or the "Company"), a leading alternative energy company through the use of bamboo-based charcoal products today announced it completed the acquisition of 70% equity interest in Suzhou E Motors Co., Ltd. ("Suzhou E Motors"), a specialty electric vehicles and power batteries manufacturer based in Zhangjiagang City, Jiangsu Province.
Merger Highlights
Acquiring 70% equity interest in Suzhou E Motors from Mr. Henglong Chen
Mr. Wang continued, "As discussed in our letter to shareholders on February 2017, improving the environment is the Company's core mission. The acquisition brings economic synergies, new advanced technologies and accelerates our research and development efforts – resulting in what we believe will be tremendous value for the Company and its shareholders."
Terms of Merger
Pursuant to the Purchase Agreement executed on May 2, 2016, Supplemental Agreement I signed on December 22, 2016 and Supplemental Agreement II signed on July 12, 2017, the Company shall acquire 70% equity interest of Suzhou E Motors directly from Mr. Henglong Chen with total cash consideration of RMB 103,200,000 (approximately $14.7 million) and a share consideration of 2,500,000 restricted shares of the Company's common stock.
The Company had originally negotiated to acquire 100% of Suzhou E Motors'; however, following Suzhou E Motors' minority shareholder, Zhangjiagang Jinke Venture Capital Co., Ltd. (Jinke Venture Capital), a local government-led VC fund, opted to retain its 30% interest as it believes the synergy between Tantech Holdings and Suzhou E Motors to be extremely promising.
The Company exercised such terms with the belief that it is in the best interests of its shareholders.
Suzhou E Motors – a leader in specialized electric vehicles
Since its inception in 2011, Suzhou E Motors has produced consecutive annual revenue growth of greater than 350%, reaching revenues of $12 million in 2015 compared to $2.7 million in 2014 and $0.85 million in 2013. Suzhou E Motors designs, assembles and distributes three types of electric vehicles:
Urban sanitary vehicles: Suzhou's urban sanitary vehicles work at high efficiencies with low operating expenses. Cleaning surfaces at speeds up to 15 miles per hour, the vehicles are equipped with professional sanitary vehicle chassis, front axle drives and steering, which improve operational ease and reliability. The vehicle is made of strengthened steel plates and pipes, making it more durable and corrosion resistant.
The combination of both companies will bring strong revenue synergies. Access to Suzhou Motors technology will offer new, incremental revenue streams in addition to cross-selling opportunities to Suzhou's large diversified customer base.
Growth and diversification through acquisition and new product development
"This is the first of many attractive eco-friendly assets that we intend to acquire as a way of strengthening our position as a leader in environmentally-friendly technology and further diversifying our revenue base," notes Tantech's CEO, Zhengyu Wang.
"As Tantech Holdings becomes a larger player in the EV market, we are looking at investing in related businesses, such as vehicle financing, both to build a competitive edge in China's rapidly growing demand for automobiles as well as a way of further diversifying Tantech Holdings' revenue and profit streams," commented CEO Wang. According to Bank of China, the car financing market was between US$116 -131 billion in 2015. Within this market, the auto financial leasing sector is estimated to exhibit the strongest growth, at compounded annual growth rate of at least 60% during the next five years.
Continuing the journey to support the environment
Tantech has a track record and capabilities in the past in contributing to a more environmental responsible world. After providing a series of products that proved fully replaceable to traditional coal, Tantech moved on to the provision of cleaner energy sources by entering the electric vehicle industry with this new acquisition.
The addition of Suzhou E Motors will further reduce Tantech's reliance on the consumer market. Along with expansion into new businesses, Tantech's revenue and profits are increasingly insulated by rising demand for household hygiene products. As disposable income rises, so does interest in environmental protection and cleanliness. Rising disposable leads to higher demand for household hygiene items such as antibacterial products and disinfectants.
With solid technologies and R&D foundation, along with previous successes, Tantech plans to continue expanding and diversifying their products by developing and acquiring more eco-friendly assets in the future.
Comments & Business Outlook
LISHUI, China, Feb. 23, 2017 /PRNewswire / -- Tantech Holdings Limited (TANH) ("Tantech" or "the Company"), a leading manufacturer of bamboo-based charcoal products, today announced that its Chairman and Chief Executive Officer, Mr. Wang Zhengyu, has issued the following Special Letter to Shareholders:
"Dear Fellow Shareholders:
I am writing today to share the exciting progress at Tantech Holdings Limited (TANH) and our plans for the upcoming year.
Tantech is successfully executing on its mission of contributing to a greener world through the development of cleaner energy sources. Our technology truly reaches across the spectrum by being able to do almost anything from replacing coal charcoals, which are used in heaters and cookstoves, with a cleaner energy approach that would consist of bamboo charcoal that is more sustainable to produce and burns significantly cleaner than traditional coal.
In addition, we also produce carbon related products with absorption function for the usage of indoor and automobile interior. All of these can reduce indoor air pollution.
As you may recall, Tantech made its debut on the Nasdaq under the symbol "TANH" in March 2015. At that time, over 80% of our sales were generated by a price insensitive and highly competitive global consumer base. However, due to management's efforts to improve the merchandise mix, consumer sales accounted for less than 74% of our total revenues in the ensuing years Now we are preparing to reap the benefits of our work over the next several years.
Our key achievements include:
Growth and Diversification: On January 27, 2016, we entered into a framework agreement to acquire Suzhou E Motors Co., Ltd., a specialty electric vehicles and power batteries manufacturer. This potential acquisition is the first of many attractive eco-friendly assets that we will be acquiring. We are currently looking into the purchase of a number of eco-friendly brands that are well established in 2nd and 3rd tier cities within China, where pollution is more severe and where more opportunities lie.
Our goal for 2017 is to grow our client base and capture additional market share. Our business development efforts are focused on the following three primary areas: Barbecue charcoal, bamboo charcoal products, new energy vehicles.
Over the next few years, the Company expects to grow revenues on an annual basis. While as we gain economies of scale, our expenses will grow more modestly going forward. Operating profits are expected to grow substantially faster as the company expands its profitability.
Addressing Share Price Volatility
As an emerging growth enterprise, Tantech's share price is often affected by macroeconomic forces that have little to no impact on our fundamental business. For example, the shares of many companies doing business in China have come under pressure as economic growth slows from the low-double digit range earlier in this decade to a range of 6-7%. Industrial and infrastructure companies, in particular, have been hard hit by these changes; however, Tantech's industrial business revenues grew 27% from 2014 to 2015 and revenue slowed in 2016. A more recent development is investor concern over the intermediate term prospects for clean and alternative energy companies as low oil prices make alternative fuel sources less economically attractive and as the Trump administration seeks to cut support and regulation supporting the development of clean alternative energy in the US.
Telling the Story to the Investor Community
Finally, a few words about our investor outreach efforts. As noted, the past two years have been about establishing and positioning the business for sustainable growth. We understand the importance of building and maintaining trust with the investment community and purposefully waited until the pieces were in place to bring our story to the markets. We believe we have reached that juncture in the next stage of our business plan and, accordingly, will be significantly increasing our shareholder communications efforts this year to ensure our progress and key achievements are effectively communicated to both existing as well as new potential investors. I personally believe the latest series of developments will make our growth prospects more clear and should make the investing public stand up and take notice of Tantech Holdings and its investment merits.
Kind Regards,
/s/
Wang Zhengyu
Comments & Business Outlook
LISHUI, China, Jan. 9, 2017 /PRNewswire / -- Recently, Tantech Holdings Ltd. (NASDAQ:TANH) ("Tantech" or the "Company"), a leading manufacturer of bamboo-based charcoal products, announced the research program led by its R&D center that focused on techniques converting agricultural residues into charcoal fuels has been included by the Science and Technology Department of Zhejiang Province into its key agricultural projects for the period from 2016 to 2018, and obtained 1.4 million yuan worth of subsidies from the provincial department. The recognition marks another breakthrough the company has achieved in agricultural technology research development, especially bamboo charcoal-related researches.
The program was initiated by Zhejiang Tantech Energy Technology Co., Ltd, a wholly-owned subsidiary of Tantech, and has received technical assistance from Zhejiang Forestry Academy and Zhejiang University of Technology. In the program, researchers converted agricultural residues, such as straw, beanpole, rice husk, fruit shell and bamboo sawdust, into high-value-added, low-flash-point charcoal fuels, through a series of independently developed technologies, such as physical property analysis, spontaneous combustion carbonization technology and solidification forming process. Once the program is been put into operation, it can utilize 15,000 tons of agricultural wastes a year, creating an annual output of 22.5 million yuan, raising efficiency by 20% to 30% and reducing labor costs by at least a third.
Due to the extensively casual disposal of agricultural residues for years, we have long been low efficient in recycling resources, while inappropriate waste incineration has been a source of smog-forming air pollution. Tantech and its experts have spent years to address the problem.
According to the leader of the program, with the policy support from the government, the research will continue to be focused on solutions for spontaneous combustion in agricultural waste and exhaust emission disposal. The program aims to make breakthroughs in three key areas, including smoke-free charcoal production techniques, high efficient solidification forming techniques and environmentally friendly compound ignition agent techniques. Inorganic chemicals, which usually act as ignition agents in low-flash-point charcoal fuels, have the defects such as potential safety hazards, low automation and low production efficiency. Tantech's researchers are endeavoring to address these problems and work out solutions for the fuel industry's sustained and healthy development.
Comments & Business Outlook
LISHUI, China, Dec. 22, 2016 /PRNewswire/ -- Tantech Holdings Ltd. (TANH), ("Tantech" or the "Company"), a leading manufacturer of bamboo-based charcoal products, today announced its financial results for the six months ended June 30, 2016.
Six-Month 2016 Financial Highlights
Total revenues decreased by 25% to $22.8 million with impact on strong dollar appreciation against Chinese yuan (20% total revenue decline in terms of RMB) and significant decline for trading and energy segments, partially by decrease in sale for trading charcoal related products
Revenues for energy segment decreased by 36.7% to $3.8 million, or 16.7% of total revenues, on weak EDLC carbon demand.
Gross profit decreased by 38.8% to $6.0 million and gross margin decreased by 18.7 percentage points to 26.3%.
Net income attributable to stockholders decreased by 69.4% to $1.5 million, or $0.07 per share, compared to $4.9 million, or $0.23 per share for the same period of last year.
"Although the overall revenue declined, our traditional core businesses, in particular the sales of household products, still recorded strong growth. The Company maintained stable operations in the first half of this year. During the reporting period we reached an agreement to acquire Suzhou E-Motors Co. Ltd. Currently we are in the midst of transformation, and have taken a series of measures to lay a solid ground for future development," said Mr. Wang Zhengyu, Chairman and Chief Executive Officer of Tantech.
"First, we have gradually increased the share of wholesalers in our distribution network while reducing the share of supermarkets to improve our bargaining power. Before, the company mainly sold its products through supermarkets, and the high reliance on supermarkets undermined our bargaining power. Second, China has shut down a large number of small manufacturers of charcoal kilns in recent years amid its fight against air pollution. The massive closure has had a negative impact on our upstream suppliers. To fend off the impact, the company has been exploring a variety of ways to ensure the supply of raw materials. Finally, the company is working closely with Suzhou E �Motors towards completion of the transaction. However, the delay in ownership transfer has slowed our acquisition of Suzhou E-Motors. "
Looking ahead, Mr. Wang said: "In the future, the company will continue to reduce the share of supermarkets in our distribution network and increase the share of wholesalers. In particular, we will ramp up marketing efforts in third- and fourth-tier small Chinese cities. Meanwhile, we will quicken the buildup of E-commerce platform to improve the company's brand image. Just weeks ago the company released upgraded bamboo charcoal bedding articles, which have stronger absorption capacities compared to the predecessors. In the future we will keep spending on research to develop more high-value added products. In addition, we will seek opportunities to cooperate with other consumer product manufacturers, and may acquire some of them to expand our business."
Mr. Jing Jin, Chief Financial Officer of Tantech, added: "In the first half of this year, intensifying competition between traditional supermarkets and E-commerce platforms like Taobao.com and 360buy.com drove down the company's gross margin and slowed cash inflow. However, in the second half, a traditional high season for consumer products, we expect our cash inflow and financial performance to improve by the end of 2016."
Comments & Business Outlook
LISHUI, China, Dec. 8, 2016 /PRNewswire / -- Tantech Holdings Ltd. (TANH) (Nasdaq: TANH) ("Tantech" or the "Company") announced today that it has successfully developed the new generation of infrared bamboo charcoal bedding articles, which feature excellent absorption, infrared and self-warming properties. These capabilities have been verified by the China National Supervision and Test Center for Eco-Product Quality, China National Supervision and Test Center for Infrared Product Quality, and Shanghai Research Institute of Chemical Industry Testing Center.
The new generation of infrared bamboo charcoal bedding articles includes bamboo charcoal fiber bedclothes, health-care mattress and pillows. According to TANH engineers, the bamboo charcoal is made out of carefully-selected high quality natural Moso bamboo, or tortoise-shell bamboo, and carbonized at a temperate of 1,100 degrees centigrade. Compared to the predecessors, the new products have a more extensive micro porous structure and a higher specific surface area. By releasing abundant highly active anion, they can effectively absorb the smell of human body and eliminate sweat odor, helping revitalize and moisture skin. Meanwhile, the far infrared rays emitted by the bamboo charcoal can store energy and warm up human body to make sleep more comfortable.
TANH Chairman Zhengyu Wang said the company has got rewarded for its vigorous research and development efforts. In addition to the upgraded bamboo charcoal products, the company has recently had three of its new energy vehicle models approved by the Ministry of Industry and Information for future launches. With the established postdoctoral workstation and researcher center, in the future the company will ramp up research and development on carbon materials, super electronic double layer capacitor carbon, batteries and new energy vehicles. The recent achievements will help the company lift sales, improve revenue and expand market share.
As a leading bamboo charcoal manufacturer, TANH's products have long been welcomed by consumers. The company's "Dr. Charcoal" series, has launched more than 100 bamboo charcoal products that have capabilities of eliminating odor and purifying air. The "Dr. Charcoal" series, which enjoys wide recognition in China, has reached consumers in overseas markets including the United States, Japan, Korea and Europe.
Comments & Business Outlook
LISHUI, China, Nov. 10, 2016 /PRNewswire / -- Tantech Holdings Ltd (TANH) (the "Company" or "TANH") announced today that the Ministry of Industry and Information Technology of the People's Republic of China (MIIT) has included its three electric vehicle models in the "Announcement of Road Motor Vehicle Manufacturing Enterprises and Products" (No.284 and No. 285 New Product Catalog Announcement). The three vehicles are produced by the company's subsidiary Suzhou E Motors Buses Co., Ltd.
So far, together with previous approvals from the MIIT (No.264, No. 269, No. 274, No. 275 New Product Catalog Announcement), the company has got approval for a total of 13 electric vehicle models. The MIIT's green light is key for alternative-energy vehicle manufacturers to drive sales and gain market recognition. The company has obtained over 1000 orders for its medium-sized electric buses.
The new electric bus ZQK6810EV, one of the three latest models approved by the MIIT, is driven by a lithium iron phosphate battery. With a range of more than 250km (155 miles), the 8.1-meter-long bus can travel as fast as 100 km/h (62mph) and carry as many as 34 passengers. The bus is particularly suited for use as shuttle buses at tourist attractions and airports, or commuter buses run by companies.
The ZQK5040X, another model approved by the MIIT, is an electric van for logistics transportation. The van, 5.8-meter long and powered by ternary lithium battery, is equipped with the electric motor made by Hunan CRRC Times. With a maximum gradeablilty of 20%, it can travel as fast as 100 km/h to a range of 350 km range on a single charge, which is sufficient enough to satisfy transport demand for big or small logistics companies, such as ZTO, SF Express, DHL, UPS, FedEx, TNT, EMS and Cainiao between cities and logistics hubs. The van has been put into trial operation by some logistics companies in the Chinese city of Hangzhou and was well received by clients in terms of gradeability, cruising range, maneuverability and overall performance.
"To seize the opportunity brought by China's strategic policy of promoting new energy vehicles, we are utilizing our advantages, consolidating all the high-quality resources and increasing investment in research and development," said Zhengyu Wang, chief executive of TANH. "We aim to launch ten new energy vehicles this year and will continue to improve in the NEV segment. Most customers are satisfied with our products and we are in talks to obtain more orders."
Comments & Business Outlook
LISHUI, China, Oct. 3, 2016 /PRNewswire / -- Tantech Holdings Ltd. (TANH) ("Tantech" or the "Company"), a leading manufacturer of bamboo-based charcoal products, announced today that it participated in the 2016 Chinese New Energy Vehicles Power Battery Industrial Technology Development Summit Forum (the "Forum") held in Suzhou City, Jiangsu Province on September 23, 2016. On the Forum, there were six brand new electric buses traveling through various venues being used as conference reception vehicles. Those electric buses gained unanimous favorable comments from all representatives, because the buses delivered environmentally friendly zero emission and provided a comfortable ride as well.
The newly developed electric bus is none other than the flagship product of Suzhou E Motors Co., Ltd. ("Suzhou E Motors"), a specialty electric vehicles and power batteries manufacturer based in Zhangjiagang City, Jiangsu Province, and whose 100% acquisition by Tantech will soon be completed. The bus is particularly suitable for tourist transport, corporate commute uses and airport VIP receptions, and it has just been included in the "Auto Bulletin Directory" of Ministry of Industry and Information Technology of China.
In early September, a high-speed brushless sweeper, "Tornado," developed by Suzhou E Motors was used to serve the outside area of Hangzhou International Expo Center, which is the main venue of the G20 Summit, and the sweeper successfully captured public attention.
In terms of future development, as the national policy on new energy vehicles becomes increasingly clear, Tantech is also accelerating the pace of its transformation and upgrading. In May 2016, Tantech has entered into a definite purchase agreement to acquire Suzhou E Motors. This acquisition undoubtedly provides a new impetus as well as a new platform for the Company to develop in a more rapid pace.
At present, Suzhou E Motors has gradually developed and produced 16 different models of vehicles and obtained more than 10 patents, and half of which are related to new energy vehicles. Especially in this year, electric cars and electric vans have been successively included in the "Auto Bulletin Directory" of Ministry of Industry and Information Technology of China. And the two major conferences mentioned above, the G20 Summit and the Forum, also provided great opportunities for the company to fully display its products.
In addition, as a listed company in NASDAQ, Tantech participated in three non-deal road shows targeting retail Chinese-American investors in New York, Los Angeles and Vancouver. The road shows were held by Chineseinvestors.com, Inc., and the trading volume of TANH increased sharply.
Mr. Jing Jin, Chief Financial Officer of Tantech commented, "We are in the process of our business transformation. Recent volatile stock movements do not reflect our current business situation, and our confidence in business remains high and our factory is operating as busy as usual. In the future, Tantech will continue to focus on business strategies and operations, which will ultimately provide fine value for the Company and our investors."
Acquisition Activity
LISHUI, China, June 24, 2016 /PRNewswire / -- Tantech Holdings Ltd. (TANH) ("Tantech" or the "Company"), a leading manufacturer of bamboo-based charcoal products, announced today that it, through its wholly-owned subsidiary in China, Lishui Tantech Energy Tech Co., Ltd. ("Lishui Tantech"), has entered into an equity purchase agreement (the "Agreement") with the holders of the remaining 5% interest of Zhejiang Tantech Bamboo Technology Co., Ltd., ("Bamboo Tech") , a China subsidiary of Lishui Tantech, to purchase the 5% interest of Bamboo Tech for 1,018,935 shares of the Company's common stock (the "Shares").
Pursuant to the Agreement executed on June 24, 2016 by and between Lishui Tantech and the five individual shareholders, who each owned 1% interest in Bamboo Tech, the Company shall issue and deliver 203,787 of the Shares to each of the five individual shareholders. All Shares to be issued pursuant to the Agreement are restricted shares.
As a result of the Agreement, Bamboo Tech became a wholly-owned subsidiary of Lishui Tantech, which is a 100% owned China subsidiary of the Company, allowing the Company to eliminate the "net income attributable to non-controlling interest" and to automatically increase "net income attributable to stockholders" by 5% on its Income Statement going forward. In 2015, the Company reported net income attributable to non-controlling interest of $487,928 and non-controlling interest in equity of $3,444,342.
Comments & Business Outlook
LISHUI, China , May 2, 2016 /PRNewswire / -- Tantech Holdings Ltd. (NASDAQ: TANH) ("Tantech" or the "Company"), a leading manufacturer of bamboo-based charcoal products, announced today that it entered into a definite purchase agreement (the "Purchase Agreement") to acquire Suzhou E Motors Co., Ltd. ("Suzhou E Motors"), a specialty electric vehicles and power batteries manufacturer based in Zhangjiazhang City, Jiangsu Province . Today's announcement follows the execution of a framework agreement dated January 27, 2016 by and between the Company and the shareholders of Suzhou E Motors as previous announced.
Pursuant to the Purchase Agreement executed on May 2, 2016, the Company plans to acquire 100% equity interest in Suzhou E Motors with a total cash consideration of RMB 159,000,000 (approximately $25.2 million) and a share consideration of 3,250,000 restricted shares of the Company's common stock. The transaction is expected to be consummated in two closings. The first closing calls for cash payment of RMB 129,000,000, of which RMB 50,000,000 has been paid by the Company as advance payment, and share payment of 2,500,000 restricted shares in exchange for the transfer of 70% equity interest in Suzhou E Motors to the Company. The second closing calls for cash payment of RMB 30,000,000 and share payment of 750,000 restricted shares in exchange for the transfer of the remaining 30% equity interest in Suzhou E Motors. All shares are subject to a 24-month restriction with 1/3 eligible for resale on the date of 12 months, 18 months, and 24 months, respectively, after each closing. The remaining RMB 6,500,000 will be withheld until Suzhou E Motors has satisfied its obligations as guarantor for a debt currently in default.
Subject to customary closing conditions, the Company expects the transaction to be consummated by the end of 2016.
Mr. Zhengyu Wang , Chairman and Chief Executive Officer of Tantech, commented, "Following months of due diligence and negotiations following the signing of a framework agreement on January 27, 2016, we are extremely pleased to reach this definite Purchase Agreement with the shareholders of Suzhou E Motors today, which will allow us to eventually gain 100% control of Suzhou E Motors through a two-step closing process and inch us closer to transforming Tantech from a bamboo-based charcoal products producer to a vertically integrated company along the EDLC Carbon - battery � specialty new energy vehicle value chain."
Mr. Wang continued, "Suzhou E Motors offers a unique opportunity for us to tap into the quickly evolving specialty new energy vehicles market which grew explosively last year. According to data compiled by China Association of Automobile Manufacturers, new energy vehicles sales in China increased by 342% to 331,092 units in 2015 from 74,763 units in 2014. With continuing governmental support and incentive programs, the strong momentum is poised to extend, benefitting us as we expand our footprint along the new energy vehicle value chain."
Notable Share Transactions
LISHUI, China, March 7, 2016 /PRNewswire / -- Tantech Holdings Ltd. (NASDAQ: TANH) ("Tantech" or the "Company"), a leading manufacturer of bamboo-based charcoal products, announced today that it has completed a $7,957,100 private placement of its common stock (the "Private Placement") to various purchasers (each, a "Purchaser" and collectively the "Purchasers").
Pursuant to a securities purchase agreement (the "Securities Purchase Agreement") executed on March 1, 2016, the Company issued and sold 1,693,000 shares of its common stock (the "Shares") to the Purchasers at $4.70 per share for an aggregate consideration of $7,957,100 (approximately RMB 52.1 million). The offering price represents an approximately 11% discount over the closing price of $5.30 on February 29, 2016. The Private Placement closed on March 1, 2016. Upon completion of the Private Placement, the Company had 23,293,000 shares of common stock outstanding.
The Shares are being sold in transactions exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"), in reliance on Regulation S thereunder. Each of the Purchaser understands that the Shares have not been registered under the Securities Act. Such Purchaser will not sell or otherwise dispose of the Shares without registration under the Securities Act, and under applicable state securities or "Blue Sky" laws, or pursuant to an exemption therefrom. A copy of the Securities Purchase Agreement was filed with the Security and Exchange Commission as Exhibits 10.1 to a Form 6-K on March 4, 2016
Acquisition Activity
LISHUI, China , Jan. 27, 2016 /PRNewswire / -- Tantech Holdings Ltd. (NASDAQ: TANH) ("Tantech" or the "Company"), a leading manufacturer of bamboo-based charcoal products, announced today that it entered into a framework agreement (the "Framework Agreement") to acquire Suzhou E Motors Co., Ltd. ("Suzhou E Motors"), a specialty electric vehicles ("EVs") manufacturer based in Zhangjiagang City, Jiangsu Province . Suzhou City Deputy Mayor Meijian Xu and Zhangjiagang City Mayor Lifan Zhu , attended a signing ceremony held at Suzhou E Motors' Zhangjiagang facility on January 27, 2016.
Pursuant to the Framework Agreement executed on January 27, 2016, the Company plans to acquire 100% equity interest in Suzhou E Motors with a combination of cash and restricted shares of the Company's common stock (the "Transaction"). The closing of the Transaction shall be subject to the terms and conditions set forth in a definitive agreement to be negotiated between the Company and the shareholders of Suzhou E Motors, including Dr. Henglong Chen and Zhangjiagang Light Commercial Vehicles Co., Ltd. who collectively own 100% of the equity interest in Suzhou E Motors. Dr. Henglong Chen is also the controlling shareholder of Zhangjiagang Light Commercial Vehicles Co., Ltd.
Subject to board and regulatory approvals, and other customary closing conditions, the Company expects to close the Transaction in the first quarter of 2016.
"We are thrilled to have the opportunity to join forces with Tantech as both companies see tremendous growth opportunities and possess complementary capabilities in capturing such opportunities in the rapidly evolving Chinese electric vehicle and power battery markets," said Dr. Henglong Chen, Chairman and Chief Executive Officer of Suzhou E Motors.
"We are excited about the prospect of working with Dr. Henglong Chen, a well-respected EV industry veteran, and his team," commented Mr. Zhengyu Wang , Chairman and Chief Executive Officer of Tantech, "With annual production capacity of approximately 5,000 electric buses and other special purpose EVs, Suzhou E Motors is one of the leaders in commercial and special purpose EVs inJiangsu Province with proprietary technologies in electric motor, electrical control systems, battery, and assembly."
Mr. Wang continued, "The proposed acquisition of Suzhou E Motors aligns with our vision and commitment to transforming the Company from a bamboo-based charcoal products producer to a diversified company along the EDLC Carbon - battery - electric vehicle value chain. We believe tremendous value can be created for our shareholders with the addition of Suzhou E Motors."
