Tantech Holdings (TANH) Reports Six Month Revenue of $16M

Tantech Holdings Ltd. (NASDAQ: TANH) , a clean energy company in China, today announced its unaudited interim financial results for the six months ended June 30, 2018.

Six-Month 2018 Financial Highlights

• Total revenues increased by 28% from $12.4 million to $16 million. The increase in our total revenue was because of increased sales volume and increased number of customers and distributors.
• Gross profit increased by 31% from $2 million to approximately $2.6 million because of increased revenue. Gross margin remained consistent around 16%.
• Selling expenses increased by 65% from $0.23 million to approximately $0.38 million. The increase was mainly because of more sales events during the first six months in fiscal 2018 compared to the same period last year.
• General and administration expenses decreased by 16% from $1.8 million to approximately $1.5 million. The decrease was mainly because of lower consulting and professional fees during the first six months in fiscal 2018 compared to the same period last year.
• Research and development expenses increased by 61% from $0.08 million to approximately $0.12 million. The increase was because of more research activities during the first six months in fiscal 2018 compared to the same period last year.
• Other expenses increased by 29% from $0.07 million to approximately $0.09 million. The increase was mainly because of higher interest expense resulting from higher borrowings balance during the first six months in fiscal 2018 compared to the same period last year.
• Net income from continuing operation attributable to shareholders was $0.13 million, compared to a net loss of $0.6 million in the same period of last year. The increase was mainly because of the increased sales and gross profits.
• Net income from discontinued operation increased by 59% from $0.9 million to $1.46 million. The increase was mainly because of the lower costs of sales for energy products.
• Net income increased by 412% from $0.3 million to $1.59 million. The increase was mainly the results of increased sales and gross profits.

"In the first half of 2018, despite challenges in a dynamic and complex environment, we grew our revenues and net income while continuing our business transformation to raise the Company's competitiveness," said Mr. Zhengyu Wang, Chairman and Chief Executive Officer of Tantech. During the reporting period, the Company reported $16 million in revenue and $1.59 million in net income, up 28% and 412% respectively compared with the same period last year.

"During the reporting period, the Company acquired an 18% ownership interest in Libo Haokun Stone Co., which owns a small marble quarry in the southwestern province of Guizhou, for RMB 120 million (or $18.1 million). Since its establishment, Tantech has accumulated rich customer resources and 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 popular choice for commercial construction and home decoration because of its endurance and elegant appearance. The investment was aimed at diversifying risks and creating more value for our shareholders."

"China's electric motor vehicle market has maintained rapid growth. According to data from government-backed China Association of Automobile Manufacturers, China produced 879,000 electric motor vehicles and sold 860,000 vehicles of such kinds in the first ten months of 2018, up 70% and 75.6% respectively from the year-earlier period. The Company has delivered orders for its electric logistics cars in the second half of the year and expects to record revenues for its electric vehicle business in the full year earnings report for fiscal 2018."

Mr. Wang finally commented, "In November, Suzhou E Motors Co., Ltd., a subsidiary of Tantech, received approval from the Ministry of Industry and Information Technology to sell a newly-developed electric van in China. The pure electric van, which has a range of 300 kilometers on a full battery charge, will go on sale soon. In the future, the Company will continue to accelerate research on new models and expand manufacturing capacity to satisfy customers' needs and realize our goal of becoming a leader in China's special purpose vehicle market."

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