Consolidated statements of cash flow

For the years ended December 31, 2015, 2014, and 2013
(Stated in US dollars)

Year ended December 31,
2015 2014 2013
OPERATING ACTIVITIES
Profit for the year 1,243,670 6,876,982 25,419,366
Adjustments for:
Finance cost - 23,630 116,421
Change in fair value of warrant liabilities (11,978 ) (3,417,053 ) 45,442
Interest income (92,747 ) (136,911 ) (142,239 )
Depreciation of property, plant and equipment 2,015,437 2,340,082 1,875,812
Amortization of prepaid lease payments and trademark 17,061 17,326 15,585
Amortization of subsidies prepaid to distributors 1,093,036 1,163,913 1,397,789
Amortization of prepayments and premiums under operating leases 728,996 659,442 1,892,254
Provision/ (Reversal) of inventory obsolescence 342 (1,848 ) 1,994
Bad debt provision of trade receivables 1,028,439 1,973,459 -
Gain/(loss) on disposal of property, plant and equipment 11,412 - (10,132 )
Provision of impairment loss in prepayments 2,565,334 - -
Operating cash flows before movements in working capital 8,599,002 9,499,022 30,612,292
Increase in trade and other receivables (345,348 ) (11,007,437 ) (16,252,778 )
Decrease in related parties receivables - - 414,052
(Increase)/ Decrease in inventories (2,893,284 ) (126,523 ) 1,170,209
Increase in trade and other payables 101,240 1,071,032 200,208
Increase in related parties payables
(excluding waiver of payables to ex-shareholder) 330,099 221,847 421,165
Increase/ (Decrease) in income tax payable (775,117 ) (918,759 ) 105,336
Increase in deferred tax assets (908,889 ) (495,444 ) -
Prepayments and premiums paid under operating leases (449,935 ) (515,038 ) (725,943 )
Withdraw the prepayments and premiums paid under operating leases - - 1,246,270
Subsidies prepaid to distributors (1,093,036 ) (1,065,227 ) (1,253,461 )
NET CASH USED IN / FROM OPERATING ACTIVITIES 2,564,732 (3,336,527 ) 15,937,350
INVESTING ACTIVITIES
Interest received 92,747 136,911 142,239
Prepayment for construction of new plant - (15,755,201 ) -
Purchase of property, plant and equipment (1,020,623 ) (1,919,723 ) (11,288,129 )
NET CASH USED IN INVESTING ACTIVITIES (927,876 ) (17,538,013 ) (11,145,890 )



Year ended December 31,
2015 2014 2013
FINANCING ACTIVITIES
Interest paid - (23,630 ) (116,421 )
New bank loans raised - - 1,968,213
Repayment of borrowings - (1,968,213 ) (807,809 )
Repayment of loan payable-related party - - (35,650 )
Advance from related party - - 50,650
Payment of offering costs - - (72,105 )
NET CASH USED IN / PROVIDED BY FINANCING ACTIVITIES - (1,991,843 ) 986,878
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 1,636,856 (22,866,383 ) 5,778,338
Effects of currency translation (1,027,358 ) (229,122 ) 1,591,835
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 20,604,582 43,700,087 36,329,914
CASH AND CASH EQUIVALENTS AT END OF YEAR -
represented by cash and bank balances
21,214,080 20,604,582 43,700,087