x
|
QUARTERLY REPORT PURSUANT TO
SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934.
|
o
|
TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934.
|
Nevada
|
36-3526027
|
(State
or other jurisdiction of
|
(IRS
Employer
|
incorporation
or organization)
|
Identification
No.)
|
3
rd
Floor, Borough A, Block A, No. 181,
|
||
South
Taibai Road, Xi’an, Shaanxi Province,
|
||
People’s Republic of
China 710065
|
||
(Address
of principal executive offices) (Zip Code)
|
||
+86-29-88266368
|
||
(Issuer's
telephone number, including area code)
|
Large
accelerated filer o
|
Accelerated
filer x
|
Non-accelerated
filer o
|
Smaller
reporting company o
|
(
Do not check if a smaller reporting company )
|
Page
|
||||
PART
I
|
FINANCIAL
INFORMATION
|
|
||
Item
1.
|
Financial
Statements.
|
3
|
||
Consolidated
Balance Sheets
|
4
|
|||
As
of December 31, 2010 and June 30, 2010 (Unaudited)
|
||||
Consolidated
Statements of Income and Comprehensive Income
|
5
|
|||
For
the Three and Six Months Ended December 31, 2010 and 2009
(Unaudited)
|
||||
Consolidated
Statements of Cash Flows
|
6
|
|||
For
the Six Months Ended December 31, 2010 and 2009
(Unaudited)
|
||||
Notes
to Consolidated Financial Statements
|
7
|
|||
As
of December 31, 2010 (Unaudited)
|
||||
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
29
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||
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
41
|
||
Item
4.
|
Controls
and Procedures
|
42
|
||
PART
II
|
OTHER
INFORMATION
|
|||
Item
1.
|
Legal
Proceedings
|
43
|
||
Item
1A.
|
Risk
Factors
|
44
|
||
Item
6.
|
Exhibits
|
44
|
||
Signatures
|
45
|
|||
Exhibits/Certifications
|
46
|
December 31, 2010
|
June 30, 2010
|
|||||||
ASSETS
|
||||||||
Current
Assets
|
||||||||
Cash
and cash equivalents
|
$ | 56,686,587 | $ | 62,335,437 | ||||
Accounts
receivable, net
|
14,585,377 | 15,571,888 | ||||||
Inventories
|
30,151,381 | 11,262,647 | ||||||
Other
assets
|
326,937 | 86,824 | ||||||
Related
party receivables
|
185,268 | - | ||||||
Advances
to suppliers
|
15,779,347 | 221,280 | ||||||
Total
Current Assets
|
117,714,897 | 89,478,076 | ||||||
Plant,
Property and Equipment, Net
|
47,327,181 | 29,368,515 | ||||||
Construction
In Progress
|
2,929,923 | 257,077 | ||||||
Other
Assets - Non Current
|
6,302,902 | 1,098,704 | ||||||
Intangible
Assets, Net
|
27,517,452 | 11,585,570 | ||||||
Goodwill
|
1,419,836 | - | ||||||
Total
Assets
|
$ | 203,212,191 | $ | 131,787,942 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Current
Liabilities
|
||||||||
Accounts
payable
|
$ | 3,045,089 | $ | 328,124 | ||||
Unearned
revenue
|
19,507,197 | 41,645 | ||||||
Accrued
expenses and other payables
|
5,540,615 | 507,705 | ||||||
Amount
due to related parties
|
69,349 | 68,164 | ||||||
Taxes
payable
|
5,464,640 | 2,304,382 | ||||||
Short
term loans
|
6,295,550 | - | ||||||
Other
short-term liability
|
3,859,977 | - | ||||||
Total
Current Liabilities
|
43,782,417 | 3,250,020 | ||||||
Stockholders’
Equity
|
||||||||
Preferred
Stock, $.001 par value, 20,000,000 shares authorized, Zero shares issued
and outstanding
|
||||||||
Common
stock, $.001 par value, 115,197,165 shares authorized, 26,848,260 and
24,572,328 shares issued, and 25,937,887 and 24,572,328 shares
outstanding, as of December 31, 2010 and June 30, 2010,
respectively)
|
25,938 | 24,573 | ||||||
Additional
paid-in capital
|
88,876,585 | 75,755,682 | ||||||
Statutory
reserve
|
7,257,675 | 5,864,648 | ||||||
Retained
earnings
|
56,160,658 | 43,536,408 | ||||||
Accumulated
other comprehensive income
|
7,108,918 | 3,356,611 | ||||||
Total
Stockholders’ Equity
|
159,429,774 | 128,537,922 | ||||||
Total
Liabilities and Stockholders’ Equity
|
$ | 203,212,191 | $ | 131,787,942 |
For
the Three Months Ended December 31,
|
For
the Six Months Ended December 31,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Sales
|
||||||||||||||||
Jinong
|
$ | 14,251,229 | $ | 9,110,797 | $ | 30,822,522 | $ | 19,289,446 | ||||||||
Gufeng
|
18,875,897 | - | 40,676,931 | - | ||||||||||||
Jintai
|
2,184,612 | 2,061,319 | 3,295,206 | 3,159,490 | ||||||||||||
Net
sales
|
35,311,738 | $ | 11,172,116 | 74,794,659 | 22,448,936 | |||||||||||
Cost
of goods sold
|
||||||||||||||||
Jinong
|
6,791,183 | 3,267,122 | 13,644,970 | 7,002,486 | ||||||||||||
Gufeng
|
14,998,764 | - | 33,899,277 | - | ||||||||||||
Jintai
|
1,188,965 | 1,135,221 | 1,778,259 | 1,717,718 | ||||||||||||
Cost
of goods sold
|
22,978,912 | 4,402,343 | 49,322,506 | 8,720,204 | ||||||||||||
Gross
profit
|
12,332,826 | 6,769,773 | 25,472,153 | 13,728,732 | ||||||||||||
Operating
expenses
|
||||||||||||||||
Selling
expenses
|
1,589,006 | 520,096 | 3,004,991 | 735,767 | ||||||||||||
General
and administrative expenses
|
2,871,064 | 814,551 | 4,969,251 | 1,348,730 | ||||||||||||
Total
operating expenses
|
4,460,070 | 1,334,647 | 7,974,242 | 2,084,497 | ||||||||||||
Income
from operations
|
7,872,756 | 5,435,126 | 17,497,911 | 11,644,235 | ||||||||||||
Other
income (expense)
|
||||||||||||||||
Other
income (expense)
|
2,084 | (413 | ) | (9,859 | ) | 553 | ||||||||||
Interest
income
|
87,925 | 52,656 | 152,916 | 81,922 | ||||||||||||
Interest
expense
|
(117,852 | ) | (44,335 | ) | (294,527 | ) | (105,644 | ) | ||||||||
Total
other income (expense)
|
(27,843 | ) | 7,908 | (151,470 | ) | (23,169 | ) | |||||||||
Income
before income taxes
|
7,844,913 | 5,443,034 | 17,346,441 | 11,621,066 | ||||||||||||
Provision
for income taxes
|
1,615,421 | 722,041 | 3,329,164 | 1,652,798 | ||||||||||||
Net
income
|
6,229,492 | 4,720,993 | 14,017,277 | 9,968,268 | ||||||||||||
Other
comprehensive income
|
||||||||||||||||
Foreign
currency translation gain/(loss)
|
2,458,260
|
31,284 |
3,752,307
|
6,354 | ||||||||||||
Comprehensive
income
|
$ |
8,687,752
|
$ | 4,752,277 | $ |
17,769,584
|
$ | 9,974,622 | ||||||||
Basic
weighted average shares outstanding
|
25,937,866 | 23,266,097 | 25,930,424 | 22,450,562 | ||||||||||||
Basic
net earnings per share
|
$ | 0.24 | $ | 0.20 | $ | 0.54 | $ | 0.44 | ||||||||
Diluted
weighted average shares outstanding
|
26,393,072 | 23,286,653 | 26,383,123 | 22,471,118 | ||||||||||||
Diluted
net earnings per share
|
0.24 | 0.20 | 0.53 | 0.44 |
2010
|
2009
|
|||||||
Cash
flows from operating activities
|
||||||||
Net
income
|
$ | 14,017,277 | $ | 9,968,268 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities
|
||||||||
Issuance
of equity for compensation
|
1,542,337 | - | ||||||
Depreciation
|
1,715,800 | 986,663 | ||||||
Amortization
|
480,953 | 150,318 | ||||||
Decrease
/ (Increase) in current assets, net of effects from
acquisitions:
|
||||||||
Accounts
receivable
|
1,721,402 | (2,797,999 | ) | |||||
Other
receivables
|
(662,984 | ) | (321 | ) | ||||
Inventories
|
(85,162 | ) | (2,719,957 | ) | ||||
Advances
to suppliers
|
(19,956,392 | ) | (142,513 | ) | ||||
Other
assets
|
45,480 | (35,952 | ) | |||||
(Decrease)
/ Increase in current liabilities, net of effects from
acquisitions:
|
||||||||
Accounts
payable
|
(3,263,212 | ) | (395,573 | ) | ||||
Unearned
revenue
|
(244,631 | ) | 141,422 | |||||
Tax
payables
|
3,029,953 | 391,854 | ||||||
Other
payables and accrued expenses
|
2,862,260 | 436,338 | ||||||
Net
cash provided by operating activities
|
1,203,081 | 5,982,548 | ||||||
Cash
flows from investing activities
|
||||||||
Purchase
of plant, property, and equipment
|
(1,990,803 | ) | (2,440,748 | ) | ||||
Purchase
of intangible assets
|
- | (10,703,302 | ) | |||||
Acquisition
of Gufeng, net of cash acquired
|
(6,720,539 | ) | - | |||||
Amounts
increase in construction in progress
|
(1,847,306 | ) | (4,730 | ) | ||||
Net
cash used in investing activities
|
(10,558,648 | ) | (13,148,780 | ) | ||||
Cash
flows from financing activities
|
||||||||
Repayment
of loan
|
- | (979,876 | ) | |||||
Borrows
of loan
|
2,238,000 | - | ||||||
Proceeds
from issuance of shares
|
- | 51,373,234 | ||||||
Restricted
cash
|
- | 46,683 | ||||||
Net
cash provided by financing activities
|
2,238,000 | 50,440,041 | ||||||
Effect
of exchange rate change on cash and cash equivalents
|
1,468,717 | 114,236 | ||||||
Net
increase (decrease) in cash and cash equivalents
|
(5,648,850 | ) | 43,388,045 | |||||
Cash
and cash equivalents, beginning balance
|
62,335,437 | 17,795,447 | ||||||
Cash
and cash equivalents, ending balance
|
$ | 56,686,587 | $ | 61,183,492 | ||||
Supplement
disclosure of cash flow information
|
||||||||
Interest
expense paid
|
$ | 116,105 | $ | (88,936 | ) | |||
Income
taxes paid
|
$ | 316,320 | $ | - |
Estimated Useful Life
|
|
Building
|
10-25
years
|
Agricultural
assets
|
8
years
|
Machinery
and equipment
|
5-15
years
|
Vehicles
|
3-5
years
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
Net
Income for Basic Earnings Per Share
|
$ | 6,229,492 | $ | 4,720,993 | $ | 14,017,277 | $ | 9,968,268 | ||||||||
Basic
Weighted Average Number of Shares
|
25,937,866 | 23,266,097 | 25,930,424 | 22,450,562 | ||||||||||||
Net
Income per Share – Basic
|
0.24 | 0.20 | 0.54 | 0.44 | ||||||||||||
Net
Income for Diluted Earnings Per Share
|
6,229,492 | 4,720,993 | 14,017,277 | 9,968,268 | ||||||||||||
Diluted
Weighted Average Number of Shares
|
26,393,072 | 23,286,653 | 26,383,123 | 22,471,118 | ||||||||||||
Net
Income per Share – Diluted
|
$ | 0.24 | $ | 0.20 | $ | 0.53 | $ | 0.44 |
($ in millions)
|
||||
Purchase
Price
|
$ | 24.3 | ||
Fair
Value of Assets Acquired:
|
||||
Current
assets
|
25.1 | |||
Fixed
assets
|
17.3 | |||
Intangible
assets
|
15.8 | |||
Other
assets
|
- | |||
Total
Assets Acquired
|
$ | 58.2 | ||
Fair
Value of Liabilities Assumed:
|
||||
Current
liabilities
|
$ | 15.9 | ||
Deferred
revenue
|
19.4 | |||
Deferred
tax liabilities, net
|
- | |||
Total
Liabilities Assumed
|
$ | 35.3 | ||
Goodwill
(1)
|
$ | 1.4 |
Gufeng at July 2, 2010
|
||||||||
($ in millions)
|
Fair Value
|
Estimated useful life
(in years)
|
||||||
Amortizable
intangible assets:
|
||||||||
Customer
relationships
|
$ | 8.4 | 10 | |||||
Indefinite-lived
intangibles:
|
||||||||
Trademarks
|
$ | 7.4 | ||||||
Total
intangible assets acquired
|
$ | 15.8 |
For the Three
|
||||||||
Months Ended
|
For the Six
|
|||||||
($ in millions, except per share data)
|
December 31,
2010
|
Months Ended
December 31, 2010
|
||||||
Net
Sales
|
$ | 19.7 | $ | 48.5 | ||||
Net
Income
|
$ | 5.3 | $ | 12.1 | ||||
Basic
earnings per share
|
$ | 0.23 | $ | 0.54 | ||||
Diluted
earnings per share
|
$ | 0.23 | $ | 0.54 |
December 31,
|
June 30,
|
|||||||
2010
|
2010
|
|||||||
Raw
materials
|
$ | 4,754,015 | $ | 314,267 | ||||
Supplies
and packing materials
|
856,257 | 113,146 | ||||||
Work
in progress
|
91,026 | 10,686,325 | ||||||
Finished
goods
|
24,450,083 | 148,909 | ||||||
Total
|
$ | 30,151,381 | $ | 11,262,647 |
December 31,
|
June 30,
|
|||||||
2010
|
2010
|
|||||||
Advancement
|
$ | 208,125 | $ | 41,875 | ||||
Promotional
material
|
72,145 | 44,949 | ||||||
Prepaid
insurance
|
46,667 | - | ||||||
Total
|
$ | 326,937 | $ | 86,824 |
December 31,
|
June 30,
|
|||||||
2010
|
2010
|
|||||||
Building
and improvements
|
$ | 37,406,782 | $ | 11,719,363 | ||||
Auto
|
1,353,601 | 117,295 | ||||||
Machinery
and equipment
|
18,470,958 | 21,628,525 | ||||||
Agriculture
assets
|
1,387,896 | 1,528,898 | ||||||
Total
property, plant and equipment
|
58,619,237 | 34,994,081 | ||||||
Less:
accumulated depreciation
|
(11,292,056 | ) | (5,625,566 | ) | ||||
Total
|
$ | 47,327,181 | $ | 29,368,515 |
December 31,
|
June 30,
|
|||||||
2010
|
2010
|
|||||||
Land
use rights, net
|
$ | 11,920,948 | $ | 11,495,058 | ||||
Technology
patent, net
|
51,990 | 90,512 | ||||||
Customer
relationships, net
|
8,069,428 | - | ||||||
Trademarks
|
7,475,086 | - | ||||||
Total
|
$ | 27,517,452 | $ | 11,585,570 |
December 31,
|
June 30,
|
|||||||
2010
|
2010
|
|||||||
Land
use rights
|
$ | 12,365,969 | $ | 11,866,105 | ||||
Less:
accumulated amortization
|
(445,021 | ) | (371,047 | ) | ||||
Total
land use rights, net
|
$ | 11,920,948 | $ | 11,495,058 |
December 31,
|
June 30,
|
|||||||
2010
|
2010
|
|||||||
Technology
know-how
|
$ | 891,248 | $ | 866,338 | ||||
Less:
accumulated amortization
|
(839,258 | ) | (775,826 | ) | ||||
Total
technology know-how, net
|
$ | 51,990 | $ | 90,512 |
December 31,
|
June 30,
|
|||||||
2010
|
2010
|
|||||||
Customer
relationships
|
$ | 8,494,135 | $ | - | ||||
Less:
accumulated amortization
|
(424,707 | ) | - | |||||
Total
customer relationships, net
|
$ | 8,069,428 | $ | - |
December
31, 2011
|
$ | 1,077,909 | ||
December
31, 2012
|
984,768 | |||
December
31, 2013
|
984,768 | |||
December
31, 2014
|
984,768 | |||
December
31, 2015
|
984,768 |
December 31,
|
June 30,
|
|||||||
2010
|
2010
|
|||||||
Payroll
payable
|
$ | 164,483 | $ | 8,848 | ||||
Welfare
payable
|
321,340 | 164,051 | ||||||
Accrued
expenses
|
881,417 | 334,806 | ||||||
Other
payables
|
3,558,606 | - | ||||||
Other
levy payable
|
149,346 | - | ||||||
Accrued
legal
|
465,423 | - | ||||||
Total
|
$ | 5,540,615 | $ | 507,705 |
December 31,
|
June 30,
|
|||||||
2010
|
2010
|
|||||||
VAT
provision (credit)
|
$ | 3,996 | $ | (24,655 | ) | |||
Income
tax payable
|
5,144,042 | 2,020,253 | ||||||
Other
levies
|
316,602 | 308,784 | ||||||
Total
|
$ | 5,464,640 | $ | 2,304,382 |
December 31,
|
December 31,
|
|||||||
|
2010
|
2009
|
||||||
Current
Tax
|
$ | 3,329,164 | $ | 1,652,798 | ||||
Deferred
Tax
|
- | - | ||||||
Total
|
$ | 3,329,164 | $ | 1,652,798 |
December 31, 2010 | ||||||||||||||||||||
China
|
United States
|
|||||||||||||||||||
15%
- 25%
|
34%
|
`Total
|
||||||||||||||||||
Pretax
income (loss)
|
20,365,391 | (3,018,950 | ) | 17,346,441 | ||||||||||||||||
Expected
income tax expense (benefit)
|
5,091,348 | 25.0 | % | (1,026,443 | ) | 34.0 | % | 4,064,905 | ||||||||||||
High-tech
income benefits on Jinong
|
(1,475,026 | ) | (7.2 | )% | (1,475,026 | ) | ||||||||||||||
Income
tax benefit of nontaxable income on Jintai
|
(351,565 | ) | (1.7 | )% | (351,565 | ) | ||||||||||||||
Other
|
64,407 | 0.3 | % | 64,407 | ||||||||||||||||
Change
in valuation allowance on deferred tax asset from US tax
benefit
|
1,026,443 | (34.0 | )% | 1,026,443 | ||||||||||||||||
Actual
tax expense
|
3,329,164 | 16.3 | % | - | - | % | 19.2 | % |
December 31, 2009 | ||||||||||||||||||||
China
|
United States
|
|||||||||||||||||||
15%
- 25%
|
34%
|
Total
|
||||||||||||||||||
Pretax
income (loss)
|
12,222,996 | (601,930 | ) | 11,621,066 | ||||||||||||||||
Expected
income tax expense (benefit)
|
3,055,749 | 25.0 | % | (204,656 | ) | 34.0 | % | 2,851,093 | ||||||||||||
High-tech
income benefits on Jinong
|
(1,101,866 | ) | (9.0 | )% | (1,101,866 | ) | ||||||||||||||
Income
tax benefit of nontaxable income on Jintai
|
(319,315 | ) | (2.6 | )% | (319,315 | ) | ||||||||||||||
Other
|
18,230 | 0.1 | % | 18,230 | ||||||||||||||||
Change
in valuation allowance on deferred tax asset from US tax
benefit
|
204,656 | (34.0 | )% | |||||||||||||||||
Actual
tax expense
|
1,652,798 | 13.5 | % | - | - | % | 14.2 | % |
Weighted
|
||||||||||||
Average
|
||||||||||||
Number
|
Exercise
|
Aggregate
|
||||||||||
of Shares
|
Price
|
Intrinsic Value
|
||||||||||
Outstanding,
June 30, 2009
|
121,500 | $ | 4.49 | |||||||||
Granted
|
205,291 | $ | 14.67 | |||||||||
Forfeited/Canceled
|
(22,000 | ) | $ | 9.95 | ||||||||
Exercised
|
(109,500 | ) | $ | 4.32 | ||||||||
Outstanding,
June 30, 2010
|
195,291 | $ | 14.67 | |||||||||
Granted
|
- | - | ||||||||||
Forfeited/Canceled
|
- | - | ||||||||||
Exercised
|
- | |||||||||||
Outstanding,
December 31, 2010
|
195,291 | $ | 14.67 | $ | - | |||||||
Exercisable.
December 31, 2010
|
115,099 | $ | 14.67 | $ | - |
Options outstanding
|
||||||||||||
Weighted
|
||||||||||||
Weighted
|
Average
|
|||||||||||
Number
|
Average
|
Remaining
|
||||||||||
Range of
|
Outstanding as of
|
Exercise
|
Contractual Life
|
|||||||||
Exercise Price
|
December 31, 2010
|
Price
|
(Years)
|
|||||||||
14.02-14.70
|
195,291 | 14.67 | 1.31 |
Options Exercisable
|
||||||||||||
Weighted
|
||||||||||||
Weighted
|
Average
|
|||||||||||
Number
|
Average
|
Remaining
|
||||||||||
Range of
|
Outstanding as of
|
Exercise
|
Contractual Life
|
|||||||||
Exercise Price
|
December 31, 2010
|
Price
|
(Years)
|
|||||||||
14.02-14.70
|
115,099 | 14.67 | 1.31 |
For the three months ended
|
||||||||
December 31,
|
||||||||
|
2010
|
2009
|
||||||
Revenues
from unaffiliated customers:
|
||||||||
Jinong
|
$ | 14,251,229 | $ | 9,110,797 | ||||
Gufeng
|
18,875,897 | - | ||||||
Jintai
|
2,184,612 | 2,061,319 | ||||||
Yuxing
|
- | - | ||||||
Consolidated
|
$ | 35,311,738 | $ | 11,172,116 | ||||
Operating
income :
|
||||||||
Jinong
|
$ | 6,099,792 | $ | 4,925,511 | ||||
Gufeng
|
2,710,717 | - | ||||||
Jintai
|
968,805 | 839,233 | ||||||
Yuxing
|
(85,750 | ) | (55,077 | ) | ||||
Reconciling
item (1)
|
- | - | ||||||
Reconciling
item (2)
|
(922,546 | ) | (274,541 | ) | ||||
Reconciling
item (2)—stock compensation
|
(898,262 | ) | - | |||||
Consolidated
|
$ | 7,872,756 | $ | 5,435,126 | ||||
Net
income:
|
||||||||
Jinong
|
$ | 5,242,398 | $ | 4,213,250 | ||||
Gufeng
|
1,923,078 | - | ||||||
Jintai
|
968,787 | 839,304 | ||||||
Yuxing
|
(84,801 | ) | (55,071 | ) | ||||
Reconciling
item (1)
|
840 | 5,323 | ||||||
Reconciling
item (2)
|
(1,820,810 | ) | (274,541 | ) | ||||
Consolidated
|
$ | 6,229,492 | $ | 4,728,265 | ||||
Depreciation
and Amortization:
|
||||||||
Jinong
|
$ | 783,301 | $ | 564,709 | ||||
Gufeng
|
362,628 | - | ||||||
Jintai
|
42,355 | 31,355 | ||||||
Yuxing
|
74,363 | 53,517 | ||||||
Consolidated
|
$ | 1,262,647 | $ | 649,581 | ||||
Interest
expense:
|
||||||||
Jinong
|
$ | - | $ | 44,335 | ||||
Gufeng
|
117,852 | - | ||||||
Consolidated
|
$ | 117,852 | $ | 44,335 | ||||
Capital
Expenditure:
|
||||||||
Jinong
|
$ | 865,887 | $ | 3,010 | ||||
Gufeng
|
327,396 | - | ||||||
Jintai
|
- | - | ||||||
Yuxing
|
20,851 | 4,730 | ||||||
Consolidated
|
$ | 1,214,134 | $ | 7,740 |
For the six months ended
|
||||||||
December 31,
|
||||||||
|
2010
|
2009
|
||||||
Revenues
from unaffiliated customers:
|
||||||||
Jinong
|
$ | 30,822,522 | $ | 19,289,446 | ||||
Gufeng
|
40,676,931 | - | ||||||
Jintai
|
3,295,206 | 3,159,490 | ||||||
Yuxing
|
- | - | ||||||
Consolidated
|
$ | 74,794,659 | $ | 22,448,936 | ||||
Operating
income :
|
||||||||
Jinong
|
$ | 14,619,350 | $ | 11,049,785 | ||||
Gufeng
|
4,633,698 | - | ||||||
Jintai
|
1,406,251 | 1,277,140 | ||||||
Yuxing
|
(139,812 | ) | (72,924 | ) | ||||
Reconciling
item (1)
|
- | - | ||||||
Reconciling
item (2)
|
(1,479,239 | ) | (609,766 | ) | ||||
Reconciling
item (2)—stock compensation
|
(1,542,337 | ) | - | |||||
Consolidated
|
$ | 17,497,911 | $ | 11,644,235 | ||||
Net
income:
|
||||||||
Jinong
|
$ | 12,537,716 | $ | 9,373,129 | ||||
Gufeng
|
3,230,784 | - | ||||||
Jintai
|
1,406,260 | 1,277,260 | ||||||
Yuxing
|
(138,532 | ) | (72,918 | ) | ||||
Reconciling
item (1)
|
2,627 | 7,835 | ||||||
Reconciling
item (2)
|
(3,021,578 | ) | (617,038 | ) | ||||
Consolidated
|
$ | 14,017,277 | $ | 9,968,268 | ||||
Depreciation
and Amortization:
|
||||||||
Jinong
|
$ | 1,362,336 | $ | 1,008,924 | ||||
Gufeng
|
631,241 | - | ||||||
Jintai
|
73,729 | 56,701 | ||||||
Yuxing
|
129,447 | 71,356 | ||||||
Consolidated
|
$ | 2,196,753 | $ | 1,136,981 | ||||
Interest
expense:
|
||||||||
Jinong
|
$ | - | $ | 105,644 | ||||
Gufeng
|
294,527 | - | ||||||
Consolidated
|
$ | 294,527 | $ | 105,644 | ||||
Capital
Expenditure:
|
||||||||
Jinong
|
$ | 1,419,786 | $ | 2,440,748 | ||||
Gufeng
|
536,828 | - | ||||||
Jintai
|
- | - | ||||||
Yuxing
|
34,189 | 10,708,032 | ||||||
Consolidated
|
$ | 1,990,803 | $ | 13,148,780 | ||||
Identifiable
assets:
|
||||||||
Jinong
|
$ | 101,717,304 | $ | 88,658,686 | ||||
Gufeng
|
65,284,782 | - | ||||||
Jintai
|
14,632,624 | 10,161,564 | ||||||
Yuxing
|
19,264,101 | 10,724,673 | ||||||
Reconciling
item (1)
|
2,269,121 | 13,026,892 | ||||||
Reconciling
item (2)
|
44,259 | 32,991 | ||||||
Consolidated
|
$ | 203,212,191 | $ | 122,604,806 |
December
31, 2011
|
$ | 33,943 | ||
December
31, 2012
|
24,275 | |||
December
31, 2013
|
14,607 | |||
December
31, 2014
|
14,607 | |||
December
31, 2015
|
14,607 |
Three
months ended December 31,
|
||||||||||||||||
2010
|
2009
|
Change
|
%
change
|
|||||||||||||
Net
Sales
|
$ | 35,311,738 | $ | 11,172,116 | 24,139,622 | 216.1 | % | |||||||||
Jinong
|
14,251,229 | 9,110,797 | 5,140,432 | 56.4 | % | |||||||||||
Gufeng
|
18,875,897 | n/a | 18,875,897 | 100.0 | % | |||||||||||
Jintai
|
2,184,612 | 2,061,319 | 123,293 | 6.0 | % | |||||||||||
Cost
of Goods Sold
|
22,978,912 | 4,402,343 | 18,576,569 | 422.0 | % | |||||||||||
Jinong
|
6,791,183 | 3,267,122 | 3,524,061 | 107.9 | % | |||||||||||
Gufeng
|
14,998,764 | n/a | 14,998,764 | 100.0 | % | |||||||||||
Jintai
|
1,188,965 | 1,135,221 | 53,744 | 4.7 | % | |||||||||||
Gross
Profit
|
12,332,826 | 6,769,773 | 5,563,053 | 82.2 | % | |||||||||||
Selling
Expenses
|
1,589,006 | 520,096 | 1,068,910 | 205.5 | % | |||||||||||
General
and Administrative Expenses
|
2,871,064 | 814,551 | 2,056,513 | 252.5 | % | |||||||||||
Income
from Operations
|
7,872,756 | 5,435,126 | 2,437,630 | 44.8 | % | |||||||||||
Total
Other Income (expense)
|
(27,843 | ) | 7,908 | -35,751 | -452.1 | % | ||||||||||
Income
Before Income Taxes
|
7,844,913 | 5,443,034 | 2,401,879 | 44.1 | % | |||||||||||
Provision
for Income Taxes
|
1,615,421 | 722,041 | 893,380 | 123.7 | % | |||||||||||
Net
Income
|
6,229,492 | 4,720,993 | 1,508,499 | 32.0 | % | |||||||||||
Net
Income Per Share (Basic and Fully Diluted)
|
0.24 | 0.20 | 0.04 | 18.4 | % | |||||||||||
Basic
Weighted Average Shares Outstanding
|
25,937,866 | 23,266,097 | 2,671,769 | 11.5 | % | |||||||||||
Diluted
Weighted Average Shares Outstanding
|
26,393,072 | 23,286,653 | 3,106,419 | 13.3 | % |
Six
months ended December 31,
|
||||||||||||||||
2010
|
2009
|
Change
|
%
change
|
|||||||||||||
Net
Sales
|
$ | 74,794,659 | $ | 22,448,936 | 52,345,723 | 233.2 | % | |||||||||
Jinong
|
30,822,522 | 19,289,446 | 11,533,076 | 59.8 | % | |||||||||||
Gufeng
|
40,676,931 | n/a | 40,676,931 | 100.0 | % | |||||||||||
Jintai
|
3,295,206 | 3,159,490 | 135,716 | 4.3 | % | |||||||||||
Cost
of Goods Sold
|
49,322,506 | 8,720,204 | 40,602,302 | 465.6 | % | |||||||||||
Jinong
|
13,644,970 | 7,002,486 | 6,642,484 | 94.9 | % | |||||||||||
Gufeng
|
33,899,277 | n/a | 33,899,277 | 100.0 | % | |||||||||||
Jintai
|
1,778,259 | 1,717,718 | 60,541 | 3.5 | % | |||||||||||
Gross
Profit
|
25,472,153 | 13,728,732 | 11,743,421 | 85.5 | % | |||||||||||
Selling
Expenses
|
3,004,991 | 735,767 | 2,269,224 | 308.4 | % | |||||||||||
General
and Administrative Expenses
|
4,969,251 | 1,348,730 | 3,620,521 | 268.4 | % | |||||||||||
Income
from Operations
|
17,497,911 | 11,644,235 | 5,853,676 | 50.3 | % | |||||||||||
Total
Other Income (expense)
|
(151,470 | ) | (23,169 | ) | -128,301 | 553.8 | % | |||||||||
Income
Before Income Taxes
|
17,346,441 | 11,621,066 | 5,725,375 | 49.3 | % | |||||||||||
Provision
for Income Taxes
|
3,329,164 | 1,652,798 | 1,676,366 | 101.4 | % | |||||||||||
Net
Income
|
14,017,277 | 9,968,268 | 4,049,009 | 40.6 | % | |||||||||||
Net
Income Per Share (Basic)
|
0.54 | 0.44 | 0.10 | 21.7 | % | |||||||||||
Net
Income Per Share (Fully Diluted)
|
0.53 | 0.44 | 0.09 | 19.8 | % | |||||||||||
Basic
Weighted Average Shares Outstanding
|
25,930,424 | 22,450,562 | 3,479,862 | 15.5 | % | |||||||||||
Diluted
Weighted Average Shares Outstanding
|
26,383,123 | 22,471,118 | 3,912,005 | 17.4 | % |
Six Months Ended
|
||||||||
December 31,
|
||||||||
2010
|
2009
|
|||||||
Net
cash provided by operating activities
|
$ | 1,203,081 | $ | 5,982,548 | ||||
Net
cash used in investing activities
|
(10,588,648 | ) | (13,148,780 | ) | ||||
Net
cash provided by financing activities
|
2,238,000 | 50,440,041 | ||||||
Effect
of exchange rate change on cash and cash equivalents
|
1,468,717 | 114,236 | ||||||
Net
increase / (decrease) in cash and cash equivalents
|
(5,648,850 | ) | 43,388,045 | |||||
Cash
and cash equivalents, beginning balance
|
62,335,437, | 17,795,447 | ||||||
Cash
and cash equivalents, ending balance
|
$ | 56,686,587 | $ | 61,183,492 |
December 31, 2010
|
June 30, 2010
|
|||||||
Short
term loans payable:
|
$ | 6,295,550 | $ | - | ||||
Total
|
$ | 6,295,550 | $ | - |
Item
4.
|
Controls
and Procedures
|
(a)
|
Evaluation of disclosure
controls and procedures.
|
(b)
|
Changes in internal
controls.
|
Item
1.
|
Legal
Proceedings
|
Item
6.
|
Exhibits
|
CHINA
GREEN AGRICULTURE, INC.
|
||
Date: February
9, 2011
|
By: /s/ Tao Li
|
|
Name:
Tao Li
|
||
Title:
President and Chief Executive Officer
|
||
(principal
executive officer)
|
||
Date: February
9, 2011
|
By: /s/ Ken Ren
|
|
Name:
Ken Ren
|
||
Title:
Chief Financial Officer
|
||
(principal
financial officer and principal accounting
officer)
|
No.
|
Description
|
|
31.1
|
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
|
|
31.2
|
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
|
|
32.1
|
Certification
of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002.
|
|
32.2
|
|
Certification
of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002.
|