Delaware
|
87-0430320
|
(State
or other jurisdiction of
Incorporation
or Organization)
|
(IRS
Employer ID No.)
|
Large accelerated filer o | Accelerated filer o | Non-accelerated filer x |
Class
of Securities
|
Shares
Outstanding
|
Common
Stock, $0.001 par value
|
24,923,178
|
Page
|
|||
Part
I - Financial Information
|
|||
Item
1
|
Financial
Statements
|
3
|
|
Item
2
|
Management's
Discussion and Analysis or Plan of Operation
|
18
|
|
Item
3
|
Controls
and Procedures
|
|
|
Part
II - Other Information
|
|||
Item
1
|
Legal
Proceedings
|
31
|
|
Item
2
|
Recent
Sales of Unregistered Securities and Use of Proceeds
|
47
|
|
Item
3
|
Defaults
Upon Senior Securities
|
48
|
|
Item
4
|
Submission
of Matters to a Vote of Security Holders
|
48
|
|
Item
5
|
Other
Information
|
48
|
|
Item
6
|
Exhibits
|
48
|
|
Signatures
|
49
|
AMERICAL
LORAIN CORPORATION
|
CONSOLIDATED
BALANCE SHEETS
|
AS
OF JUNE 30, 2007 AND DECEMBER 31, 2006
|
(Stated
in U.S. Dollars)
|
Notes
|
2007
|
2006
|
||||||||
ASSETS
|
||||||||||
Current
assets
|
||||||||||
Cash
and cash equivalents
|
$
|
2,526,427
|
$
|
2,316,425
|
||||||
Restricted
cash
|
3
|
6,536,540
|
2,549,321
|
|||||||
Short
term Investment
|
6,951
|
26,618
|
||||||||
Trade
accounts receivable
|
4
|
8,903,779
|
11,805,229
|
|||||||
Prepayments
for raw materials
|
3,353,642
|
2,406,161
|
||||||||
Income
tax prepayment
|
-
|
38,375
|
||||||||
Other
receivables
|
9,637,204
|
4,466,169
|
||||||||
Inventories
|
5
|
13,773,027
|
12,294,354
|
|||||||
Total
current assets
|
$
|
44,737,570
|
$
|
35,902,652
|
||||||
Other
Assets
|
||||||||||
Property,
plant and equipment, net
|
6
|
13,100,394
|
8,883,464
|
|||||||
Leasehold
land, net
|
7
|
2,852,723
|
2,777,476
|
|||||||
Total
Non Current Assets
|
$
|
15,953,117
|
$
|
11,660,940
|
||||||
TOTAL
ASSETS
|
$
|
60,690,687
|
$
|
47,563,592
|
||||||
LIABILITIES
AND
|
||||||||||
STOCKHOLDERS’
EQUITY
|
||||||||||
Current
liabilities
|
||||||||||
Short
term bank loans
|
$
|
16,062,061
|
$
|
21,858,467
|
||||||
Current
maturities of long term debts
|
-
|
5,117
|
||||||||
Accounts
and notes payable
|
3,615,618
|
5,262,549
|
||||||||
Customers’
deposits
|
727,216
|
843,089
|
||||||||
Accrued
expenses and other
|
5,938,551
|
10,228,267
|
||||||||
Income
tax payable
|
307,376
|
402,217
|
||||||||
Total
current liabilities
|
$
|
26,650,822
|
$
|
38,599,706
|
||||||
Long
term bank loans
|
1,416,921
|
1,384,741
|
||||||||
TOTAL
LIABILITIES
|
$
|
28,067,743
|
$
|
39,984,447
|
AMERICAL
LORAIN CORPORATION
|
CONSOLIDATED
BALANCE SHEETS (Continued)
|
AS
OF JUNE 30, 2007 AND DECEMBER 31, 2006
|
(Stated
in US Dollars)
|
Notes
|
2007
|
2006
|
||||||||
Minority
interests
|
$
|
3,629,879
|
$
|
3,474,042
|
||||||
STOCKHOLDERS’
EQUITY
|
||||||||||
Series
A voting convertible preferred stock
|
||||||||||
$0.001
par value, 100,000 shares
|
||||||||||
authorized;
100,000 shares issued but
|
||||||||||
immediately
converted to common stock
|
$
|
-
|
$
|
-
|
||||||
Series
B voting convertible preferred stock
|
||||||||||
$0.001
par value, 1,000,000 shares
|
||||||||||
authorized;
996,718.78 shares issued but
|
||||||||||
immediately
converted to common stock
|
-
|
-
|
||||||||
Common
stock, $0.001 par value,
|
||||||||||
200,000,000
shares authorized;
|
||||||||||
35,111,908
and 28,121,507 shares issued
|
||||||||||
and
outstanding at June 30, 2007 and
|
||||||||||
December
31, 2006
|
8
|
35,112
|
28,122
|
|||||||
Additional
Paid-in Capital
|
8
|
20,349,190
|
-
|
|||||||
Statutory
reserves
|
2,495,587
|
904,594
|
||||||||
Retained
earnings
|
4,589,115
|
3,141,804
|
||||||||
Accumulated
other comprehensive income
|
1,524,061
|
30,583
|
||||||||
Total
Stockholders’ Equity
|
$
|
28,993,065
|
$
|
4,105,103
|
||||||
TOTAL
LIABILITIES AND
|
||||||||||
STOCKHOLDERS’
EQUITY
|
$
|
60,690,687
|
$
|
47,563,592
|
||||||
AMERICAL
LORAIN CORPORATION
|
CONSOLIDATED
STATEMENTS OF INCOME
|
FOR
THE PERIODS ENDED JUNE 30, 2007 AND 2006
|
(Stated
in US Dollars)
|
Six
months ended June 30,
|
|
Three
months ended June 30,
|
||||||||||||||
Note
|
2007
|
2006
|
2007
|
2006
|
||||||||||||
Revenue
|
||||||||||||||||
Net
revenues
|
$
|
25,242,021
|
$
|
15,090,325
|
$
|
13,343,209
|
$
|
9,502,539
|
||||||||
Cost
of revenues
|
(19,341,479
|
)
|
(11,725,331
|
)
|
(10,388,680
|
)
|
(7,438,589
|
)
|
||||||||
Gross
profit
|
5,900,542
|
3,364,994
|
2,954,529
|
2,063,950
|
||||||||||||
Operating
expenses
|
||||||||||||||||
Selling
and marketing expenses
|
(422,750
|
)
|
(623,870
|
)
|
(296,917
|
)
|
(327,225
|
)
|
||||||||
General
and administrative expenses
|
(820,140
|
)
|
(673,868
|
)
|
(460,141
|
)
|
(311,905
|
)
|
||||||||
Income
from continuing operations
|
4,657,652
|
2,067,256
|
2,197,471
|
1,424,820
|
||||||||||||
Finance
costs, net
|
(1,303,281
|
)
|
(744,074
|
)
|
(764,201
|
)
|
(379,687
|
)
|
||||||||
Government
grant
|
-
|
-
|
-
|
(2,910
|
)
|
|||||||||||
Sundry
|
33,824
|
15,704
|
26,103
|
15,704
|
||||||||||||
Other
income
|
-
|
-
|
-
|
(58,751
|
)
|
|||||||||||
Other
expenses
|
9
|
(1,333,429
|
)
|
(34,148
|
)
|
(1,329,203
|
)
|
(3,901
|
)
|
|||||||
Income
before taxation
|
2,054,766
|
1,304,738
|
130,170
|
995,275
|
||||||||||||
Income
tax
|
10
|
(615,577
|
)
|
(270,129
|
)
|
(285,597
|
)
|
(190,878
|
)
|
|||||||
Net
income before minority interests
|
1,439,189
|
1,034,609
|
(155,427
|
)
|
804,397
|
|||||||||||
Minority
interests
|
(155,837
|
)
|
4,283
|
(54,442
|
)
|
484,652
|
||||||||||
Net
income
|
$
|
1,283,352
|
$
|
1,038,892
|
$
|
(209,869
|
)
|
$
|
1,289,049
|
|||||||
Net
income per share, basic and
|
||||||||||||||||
diluted
|
$
|
0.0366
|
$
|
0.0295
|
$
|
(0.00746
|
)
|
$
|
0.0458
|
|||||||
Weighted
average shares
|
||||||||||||||||
outstanding
of common stock
|
35,111,908
|
35,111,908
|
28,121,507
|
28,121,507
|
AMERICAL
LORAIN CORPORATION
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
FOR
THE SIX-MONTHS AND THREE-MONTHS ENDED JUNE 30, 2007 AND
2006
|
(Stated
in US Dollars)
|
Six
months ended June 30,
|
Three
months ended June 30,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Cash
Flows from Operating Activities
|
|||||||||||||
Net
income
|
$
|
1,283,352
|
$
|
1,038,892
|
$
|
(209,869
|
)
|
$
|
1,289,049
|
||||
Depreciation
|
345,003
|
378,516
|
185,240
|
233,844
|
|||||||||
Amortization
|
24,019
|
24,019
|
5,981
|
13,593
|
|||||||||
Minority
interest
|
155,837
|
(4,283
|
)
|
54,442
|
(484,652
|
)
|
|||||||
Increase
in accounts and other receivables
|
(3,178,691
|
)
|
(4,681,372
|
)
|
(6,173,644
|
)
|
(9,068,823
|
)
|
|||||
(Increase)/decrease
in inventories
|
(1,478,673
|
)
|
(8,189,298
|
)
|
(2,565,667
|
)
|
(4,785,675
|
)
|
|||||
Increase/(decrease)
in accounts and other payables
|
(6,147,360
|
)
|
16,012,172
|
(7,514,109
|
)
|
13,034,878
|
|||||||
|
|||||||||||||
Net
cash (used in)/provided by operating activities
|
$
|
(8,996,513
|
)
|
$
|
4,578,646
|
$
|
(16,217,626
|
)
|
$
|
232,214
|
|||
Cash
Flows from Investing Activities
|
|||||||||||||
Purchase
of Landscaping,
plant and tree
|
(1,031,299
|
)
|
(1,000,000
|
)
|
(1,031,299
|
)
|
(1,000,000
|
)
|
|||||
Purchase
of plant and equipment
|
-
|
(7,506,599
|
)
|
(887,995
|
)
|
(6,898,494
|
)
|
||||||
Purchase
of leasehold land
|
-
|
(1,530,817
|
)
|
(1,530,817
|
)
|
||||||||
(Increase)/Decrease
in restricted cash
|
(3,987,219
|
)
|
2,838,067
|
(6,209,092
|
)
|
246,183
|
|||||||
Payment
of cost of lease payment
|
-
|
-
|
1,081,811
|
105,259
|
|||||||||
Investment
in short term securities
|
19,667
|
16,474
|
19,930
|
20,908
|
|||||||||
Construction
in Progress
|
(777,177
|
)
|
(500,000
|
)
|
(777,177
|
)
|
(500,000
|
)
|
|||||
Cash
(Used)/Sourced in Investing Activities
|
$
|
(5,776,028
|
)
|
(7,682,875
|
)
|
$
|
(7,803,822
|
)
|
$
|
(9,556,961
|
)
|
||
Cash
Flows from Financing Activities
|
|||||||||||||
Bank
borrowings, net of payment
|
(5,769,343
|
)
|
(2,675,029
|
)
|
(2,618,282
|
)
|
(51,170
|
)
|
|||||
Issue
of common stock
|
103,679
|
-
|
103,679
|
-
|
|||||||||
Additional
Paid-in capital
|
20,260,623
|
-
|
20,260,623
|
-
|
|||||||||
|
|||||||||||||
Cash
(Used)/Sourced in Financing Activities
|
$
|
14,594,959
|
$
|
(2,675,029
|
)
|
$
|
17,746,020
|
$
|
(51,170
|
)
|
|||
Net
Increase in Cash & Cash Equivalents for the Period
|
$
|
(177,582
|
)
|
$
|
(5,779,258
|
)
|
$
|
(6,275,428
|
)
|
$
|
(9,375,917
|
)
|
|
Effect
of foreign currency translation on Cash & Cash
equivalents
|
387,585
|
(220,895
|
)
|
351,291
|
(750,574
|
)
|
|||||||
Cash
& Cash Equivalents at Beginning of Period
|
2,316,425
|
7,429,038
|
8,450,565
|
11,555,376
|
|||||||||
Cash
& Cash Equivalents at End of Period
|
$
|
2,526,428
|
1,428,885
|
$
|
2,526,428
|
$
|
1,428,885
|
(a) |
Organization
history of American Lorain Corporation (formerly known as Millennium
Quest, Inc.)
|
(b) |
Organization
History of International Lorain Holding Inc. and its
subsidiaries
|
(c) |
Reverse-Merger
|
(d) |
Business
Activities
|
(a) |
Method
of Accounting
|
(b) |
Principles
of Consolidation
|
Name
of Company
|
Place
of incorporation
|
Attributable
equity interest %
|
Registered
capital
|
||||||||||
Shandong
Green Foodstuff Co., Ltd
|
PRC
|
80.2
|
$
|
12,901,823
|
(RMB
100,860,000
|
)
|
|||||||
Luotian
Green Foodstuff Co., Ltd
|
PRC
|
100
|
$
|
1,279,181
|
(RMB
10,000,000
|
)
|
|||||||
Junan
Hongrun Foodstuff Co., Ltd
|
PRC
|
100
|
$
|
2,430,445
|
(RMB
19,000,000
|
)
|
|||||||
Beijing
Green Foodstuff Co., Ltd
|
PRC
|
100
|
$
|
1,279,181
|
(RMB
10,000,000
|
)
|
(c) |
Use
of Estimates
|
(d) |
Economic
and political risks
|
(e) |
Cash
and cash equivalents
|
(f) |
Trade
receivables
|
(g) |
Inventories
|
(h) |
Property,
plant and equipment
|
Buildings
|
40
years
|
Machinery
and equipment
|
10
years
|
Motor
vehicles
|
10
years
|
Office
equipment
|
5
years
|
(i) |
Construction
in progress
|
(j) |
Leasehold
Land
|
(k) |
Accounting
for the Impairment of Long-Lived
Assets
|
(l) |
Investment
securities
|
(m) |
Customer
deposits
|
(n) |
Statutory
reserves
|
(o) |
Comprehensive
income
|
(p) |
Revenue
recognition
|
(q) |
Advertising
|
(r) |
Shipping
and handling
|
(s) |
Research
and development
|
(t) |
Retirement
benefits
|
(u) |
Income
taxes
|
(v) |
Earnings
per share
|
(w) |
Foreign
currency translation
|
June
30, 2007
|
December
31, 2006
|
June
30, 2006
|
||||||||
Year
end RMB : US$ exchange rate
|
7.6248
|
7.8175
|
8.0065
|
|||||||
Average
yearly RMB : US$ exchange rate
|
7.72999
|
7.98189
|
8.03924
|
(x) |
Commitments
and contingencies
|
(y) |
Segment
reporting
|
(z) |
Recent
accounting pronouncements
|
2007
|
2006
|
||||||
Trade
accounts receivable
|
$
|
9,130,660
|
$
|
12,032,110
|
|||
Less:
Allowance for doubtful accounts
|
(221,881
|
)
|
(226,881
|
)
|
|||
$
|
8,903,779
|
$
|
11,805,229
|
||||
2007
|
2006
|
||||||
Balance
at beginning of year
|
$
|
226,881
|
$
|
-
|
|||
Arising
through acquisition
|
-
|
67,090
|
|||||
Addition
of bad debt expense, net
|
-
|
159,791
|
|||||
Balance
at end of year
|
$
|
226,881
|
$
|
226,881
|
|||
2007
|
2006
|
||||||
Raw
materials
|
$
|
6,560,319
|
$
|
7,785,927
|
|||
Finished
goods
|
7,212,708
|
4,508,427
|
|||||
$
|
13,773,027
|
$
|
12,294,354
|
||||
2007
|
2006
|
||||||
At
cost
|
|||||||
Buildings
|
$
|
8,395,048
|
$
|
5,706,515
|
|||
Machinery
and equipment
|
4,869,942
|
3,658,663
|
|||||
Office
equipment
|
227,060
|
163,100
|
|||||
Motor
vehicles
|
329,043
|
245,139
|
|||||
$
|
13,821,093
|
$
|
10,236,071
|
||||
Less:
accumulated depreciation
|
(2,529,175
|
)
|
(2,184,172
|
)
|
|||
Landscaping,
plant and tree
|
1,031,299
|
||||||
Construction
in progress
|
777,177
|
831,565
|
|||||
$
|
13,100,394
|
$
|
8,883,464
|
||||
2007
|
2006
|
||||||
Leasehold
Land, at cost
|
$
|
2,985,853
|
$
|
2,886,587
|
|||
Accumulated
amortization
|
(133,130
|
)
|
(109,111
|
)
|
|||
$
|
2,852,723
|
$
|
2,777,476
|
||||
Name
of Shareholder
|
Number
of Shares
|
Stock
Capital
|
Additional
Paid-in capital
|
|||||||
Shareholders
of International Lorain Holding Inc. (697,663 Series B preferred
shares
converted to common shares)
|
$
|
16,307,872
|
$
|
16,308
|
$
|
(16,148
|
)
|
|||
Halter
Financial Investments LP and Other (100,000 Series A preferred shares
converted to common shares)
|
1,304,992
|
1,305
|
(1,305
|
)
|
||||||
Original
Shareholders of Millennium Quest before reverse-merger
|
10,508,643
|
10,509
|
(10,509
|
)
|
||||||
Private
Investors (299,055.78 Series B preferred shares converted to common
shares)
|
6,990,401
|
6,990
|
19,318,943
|
|||||||
Less:
Cost of issue
|
-
|
-
|
(2,043,295
|
)
|
||||||
Original
Additional Paid-in capital from the 4 PRC subsidiaries
|
-
|
-
|
3,101,504
|
|||||||
$
|
35,111,908
|
$
|
35,112
|
$
|
20,349,190
|
2007
|
|
2006
|
|||||
Income
before tax
|
$
|
2,054,766
|
$
|
5,411,264
|
|||
Tax
at the income tax rate
|
678,072
|
1,785,717
|
|||||
Effect
of tax exemption granted
|
(62,495
|
)
|
(842,586
|
)
|
|||
Income
tax
|
$
|
615,577
|
$
|
943,131
|
|||
AMERICAL
LORAIN CORPORATION
|
CONSOLIDATED
STATEMENTS OF INCOME
|
FOR
THE PERIODS ENDED JUNE 30, 2007 AND 2006
|
(Stated
in US Dollars)
|
Three
months ended June 30,
|
Dollar
($)
|
Percentage(%)
|
||||||||||||||
Note
|
2007
|
2006
|
Increase
(Decrease)
|
Increase
(Decrease)
|
||||||||||||
Revenue
|
||||||||||||||||
Net
revenues
|
$
|
13,343,209
|
$
|
9,502,539
|
3,840,670
|
40.42
|
%
|
|||||||||
Cost
of revenues
|
(10,388,680
|
)
|
(7,438,589
|
)
|
2,950,091
|
39.66
|
%
|
|||||||||
|
||||||||||||||||
Gross
profit
|
2,954,529
|
2,063,950
|
890,579
|
43.15
|
%
|
|||||||||||
Operating
expenses
|
||||||||||||||||
Selling
and marketing expenses
|
(296,917
|
)
|
(327,225
|
)
|
(30,308
|
)
|
(9.26
|
%)
|
||||||||
General
and administrative expenses
|
(460,141
|
)
|
(311,905
|
)
|
148,236
|
47.52
|
%
|
|||||||||
Income
from continuing operations
|
2,197,471
|
1,424,820
|
772,651
|
54.23
|
%
|
|||||||||||
Finance
costs, net
|
(764,201
|
)
|
(379,687
|
)
|
384,514
|
101.27
|
%
|
|||||||||
Government
grant
|
-
|
(2,910
|
)
|
(2,910
|
)
|
(100
|
%)
|
|||||||||
Sundry
|
26,103
|
15,704
|
10,399
|
66.22
|
%
|
|||||||||||
Other
income
|
-
|
(58,751
|
)
|
(58,751
|
)
|
(100
|
%)
|
|||||||||
Other
expenses
|
9
|
(1,329,203
|
)
|
(3,901
|
)
|
1,325,302
|
33973.39
|
%
|
||||||||
Income
before taxation
|
130,170
|
995,275
|
(865,105
|
)
|
(86.92
|
%)
|
||||||||||
Income
tax
|
10
|
(285,597
|
)
|
(190,878
|
)
|
94,719
|
49.62
|
%
|
||||||||
Net
income before minority interests
|
(155,427
|
)
|
804,397
|
(959,824
|
)
|
(119.32
|
%)
|
|||||||||
Minority
interests
|
(54,442
|
)
|
484,652
|
(539,094
|
)
|
(111.23
|
%)
|
|||||||||
Net
income
|
$
|
(209,869
|
)
|
$
|
1,289,049
|
$
|
(1,498,918
|
)
|
(116.28
|
%)
|
Six
months ended June 30,
|
Dollar
($)
|
Percentage
(%)
|
|||||||||||
2007
|
2006
|
Increase
(Decrease)
|
Increase
(Decrease)
|
||||||||||
Revenue
|
|||||||||||||
Net
revenues
|
$
|
25,242,021
|
$
|
15,090,325
|
$
|
10,151,696
|
67.27
|
%
|
|||||
Cost
of revenues
|
(19,341,479
|
)
|
(11,725,331
|
)
|
7,616,148
|
64.95
|
%
|
||||||
Gross
profit
|
5,900,542
|
3,364,994
|
2,535,548
|
75.35
|
%
|
||||||||
Operating
expenses
|
|||||||||||||
Selling
and marketing expenses
|
(422,750
|
)
|
(623,870
|
)
|
(201,120
|
)
|
(32.23
|
%)
|
|||||
General
and administrative expenses
|
(820,140
|
)
|
(673,868
|
)
|
146,272
|
21.7
|
%
|
||||||
Income
from continuing operations
|
4,657,652
|
2,067,256
|
2,590,396
|
125.30
|
%
|
||||||||
Finance
costs, net
|
(1,303,281
|
)
|
(744,074
|
)
|
559,207
|
75.15
|
%
|
||||||
Government
grant
|
-
|
-
|
|||||||||||
Sundry
|
33,824
|
15,704
|
18,120
|
115.38
|
%
|
||||||||
Other
income
|
-
|
-
|
|||||||||||
Other
expenses
|
(1,333,429
|
)
|
(34,148
|
)
|
1,299,281
|
3804.85
|
%
|
||||||
Income
before taxation
|
2,054,766
|
1,304,738
|
750,028
|
57.48
|
%
|
||||||||
Income
tax
|
(615,577
|
)
|
(270,129
|
)
|
345,448
|
127.88
|
%
|
||||||
Net
income before minority interests
|
1,439,189
|
1,034,609
|
404,580
|
39.1
|
%
|
||||||||
Minority
interests
|
(155,837
|
)
|
4,283
|
160,120
|
3738.5
|
%
|
|||||||
Net
income
|
$
|
1,283,352
|
$
|
1,038,892
|
$
|
244,460
|
23.53
|
%
|
|||||
|
Cash
Flow (in thousands)
|
|
|||||
|
|
Six
Months Ended June 30,
|
|||||
|
2007
|
2006
|
|||||
Net
cash provided by (used in) operating activities
|
$
|
(8,996,513
|
)
|
$
|
4,578,646
|
||
Net
cash provided by (used in) investing activities
|
$
|
(5,776,028
|
)
|
$
|
(7,682,875
|
)
|
|
Net
cash provided by (used in) financing activities
|
$
|
14,594,959
|
$
|
(2,675,029
|
)
|
||
Net
cash flow (outflow)
|
$
|
(14,772,541
|
)
|
$
|
(10,357,904
|
)
|
Banks
|
Amounts
|
Beginning
|
Ending
|
Duration
|
|||||||||
Junan
County Agriculture Bank
|
28.84
|
10/10/2006
|
10/09/2007
|
12
months
|
|||||||||
Junan
County Agriculture Bank
|
590.00
|
10/31/2006
|
10/30/2007
|
12
months
|
|||||||||
Junan
County Agriculture Bank
|
262.23
|
11/03/2006
|
11/02/2007
|
12
months
|
|||||||||
Junan
County Agriculture Bank
|
668.67
|
11/16/2006
|
11/15/2007
|
12
months
|
|||||||||
Junan
County Agriculture Bank
|
472.00
|
12/06/2006
|
12/05/2007
|
12
months
|
|||||||||
Junan
County Agriculture Bank
|
498.23
|
12/06/2006
|
12/05/2007
|
12
months
|
|||||||||
Junan
County Agriculture Bank
|
118.00
|
06/14/2007
|
06/07/2008
|
12
months
|
|||||||||
Junan
County Agriculture Bank
|
39.33
|
06/14/2007
|
06/07/2008
|
12
months
|
|||||||||
Junan
County Agriculture Bank
|
524.45
|
06/30/2007
|
06/29/2008
|
12
months
|
|||||||||
Junan
County Agriculture Bank
|
104.89
|
06/30/2007
|
06/29/2008
|
12
months
|
|||||||||
Junan
County Construction Bank
|
393.33
|
08/31/2006
|
08/31/2007
|
12
months
|
|||||||||
Junan
County Construction Bank
|
329.09
|
09/08/2006
|
09/07/2007
|
12
months
|
|||||||||
Junan
County Industrial and Commercial Bank
|
222.89
|
12/14/2006
|
12/15/2007
|
12
months
|
|||||||||
Junan
County Industrial and Commercial Bank
|
621.47
|
12/11/2006
|
12/10/2007
|
12
months
|
|||||||||
Junan
County Industrial and Commercial Bank
|
725.05
|
12/11/2006
|
11/15/2007
|
12
months
|
|||||||||
Junan
County Industrial and Commercial Bank
|
524.45
|
01/12/2007
|
01/11/2008
|
12
months
|
|||||||||
Junan
County Industrial and Commercial Bank
|
131.11
|
01/11/2007
|
01/10/2008
|
12
months
|
|||||||||
Junan
County Industrial and Commercial Bank
|
524.45
|
06/08/2007
|
01/29/2008
|
8
months
|
Banks
|
Amounts
|
Beginning
|
Ending
|
Duration
|
|||||||||
Bank
of China, Junan Branch
|
12.29
|
09/19/2006
|
05/19/2009
|
8
months
|
|||||||||
International
Trust & Investment Co., Ltd.
|
1,311.12
|
06/14/2005
|
06/13/2008
|
36
months
|
|||||||||
Linyi
Commercial Bank
|
590.00
|
02/07/2007
|
02/06/2008
|
12
months
|
|||||||||
Linyi
Commercial Bank
|
616.22
|
02/10/2007
|
02/09/2008
|
12
months
|
|||||||||
Linyi
Commercial Bank
|
314.67
|
04/30/2006
|
10/20/2007
|
12
months
|
|||||||||
Linyi
Commercial Bank
|
196.67
|
11/30/2006
|
11/29/2007
|
12
months
|
|||||||||
Junan
Agricultural Development Bank
|
590.00
|
07/20/2006
|
07/19/2007
|
12
months
|
|||||||||
Junan
Agricultural Development Bank
|
721.11
|
09/05/2006
|
09/04/2007
|
12
months
|
|||||||||
Junan
County Industrial and Commercial Bank
|
28.84
|
02/05/2007
|
08/01/2007
|
6
months
|
|||||||||
Junan
County Industrial and Commercial Bank
|
340.89
|
04/26/2007
|
08/10/2007
|
3
months
|
|||||||||
Junan
County Construction Bank
|
340.89
|
06/06/2007
|
03/05/2008
|
9
months
|
|||||||||
Beijing
Miyun County Shilipu Rural Financial Institution
|
1,947.01
|
09/28/2006
|
09/27/2007
|
12
months
|
|||||||||
Beijing
Miyun County Shilipu Rural Financial Institution
|
655.56
|
09/25/2006
|
09/26/2007
|
12
months
|
|||||||||
China
Agricultural Bank, Miyun Branch
|
262.22
|
07/19/2006
|
07/18/2007
|
12
months
|
|||||||||
Agricultural
Development Department of Luotian Government
|
98.33
|
12/11/2006
|
12/11/2010
|
48
months
|
|||||||||
China
Agricultural Bank, Luotian Square Branch
|
380.22
|
09/05/2006
|
09/05/2007
|
12
months
|
|||||||||
Junan
County Industrial and Commercial Bank
|
458.89
|
01/31/2007
|
01/18/2008
|
12
months
|
|||||||||
Junan
County Industrial and Commercial Bank
|
524.45
|
01/31/2007
|
01/18/2008
|
12
months
|
|||||||||
Junan
County Industrial and Commercial Bank
|
1,311.12
|
03/06/2007
|
03/05/2008
|
12
months
|
|||||||||
Total
|
17478.98
|
· |
Method
of Accounting -- We
maintain our general ledger and journals with the accrual method
accounting for financial reporting purposes. The financial statements
and
notes are representations of management. Accounting policies adopted
by us
conform to generally accepted accounting principles in the United
States
of America and have been consistently applied in the presentation
of
financial statements, which are compiled on the accrual basis of
accounting.
|
· |
Use
of estimates -- The
preparation of the financial statements in conformity with generally
accepted accounting principles in the United States of America requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets
and
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting periods. Management
makes these estimates using the best information available at the
time the
estimates are made; however, actual results could differ materially
from
those estimates.
|
· |
Principles
of consolidation -- The
consolidated financial statements are presented in US Dollars and
include
the accounts of the Company and its commonly controlled entity. All
significant inter-company balances and transactions are eliminated
in
combination.
|
Name
of company
|
Place
of incorporation
|
|
Attributable
equity interest %
|
|
Registered
capital
|
|||||
Shandong
Green Foodstuff CO., LTD.
|
PRC
|
80.2
|
%
|
RMB
100,860,000
|
||||||
Luotian
Green Foodstuff CO., LTD
|
PRC
|
100
|
%
|
RMB
10,000,000
|
||||||
Junan
Hongrun Foodstuff CO., LTD.
|
PRC
|
100
|
%
|
RMB
19,000,000
|
||||||
Beijing
Green Foodstuff CO., LTD.
|
PRC
|
100
|
%
|
RMB
10,000,000
|
· |
Pertain
to the maintenance of records that in reasonable detail accurately
and
fairly reflect the transactions and dispositions of our
assets;
|
· |
Provide
reasonable assurance that transactions are recorded as necessary
to permit
preparation of financial statements in accordance with GAAP, and
that our
receipts and expenditures are being made only in accordance with
authorizations of our management and directors;
and
|
· |
Provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of our assets that could
have
a material effect on our consolidated financial
statements.
|
·
|
chestnut
products may not be widely recognized internationally, especially
in
western countries;
|
·
|
local
economic and political conditions, including disruptions in trading
markets;
|
·
|
restrictive
foreign governmental actions, including restrictions on transfers
of funds
and trade;
|
·
|
protection
measures, including export duties and quotas and customs duties and
tariffs;
|
·
|
currency
exchange rate fluctuations; and
|
·
|
earthquakes,
tsunamis, floods or other major disasters may limit the imported
food
products.
|
·
|
Level
of government involvement in the
economy;
|
·
|
Control
of foreign exchange;
|
·
|
Methods
of allocating resources;
|
·
|
Balance
of payments position;
|
·
|
International
trade restrictions; and
|
·
|
International
conflict.
|
31.1
|
Certification
of Principal Executive Officer filed pursuant to Section 302 of
the
Sarbanes-Oxley Act of 2002.
|
31.2
|
Certification
of Principal Financial Officer filed pursuant to Section 302 of
the
Sarbanes-Oxley Act of 2002.
|
32.
|
Certification
of Principal Executive Officer and Financial Officer furnished
pursuant to
18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
|
AMERICAN
LORAIN CORPORATION
|
|||
Date:
August 20, 2007
|
|||
By: /S/ Si Chen | |||
Si
Chen
Chief
Executive Officer
|
Exhibit
|
Description |
31.1
|
Certification
of Principal Executive Officer filed pursuant to Section 302 of
the
Sarbanes-Oxley Act of 2002.
|
31.2
|
Certification
of Principal Financial Officer filed pursuant to Section 302 of
the
Sarbanes-Oxley Act of 2002.
|
32.
|
Certification
of Principal Executive Officer and Financial Officer furnished
pursuant to
18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
|