(Mark One) |
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
|
China
Agri-Business, Inc.
|
(Exact
name of registrant as specified in its charter)
|
Maryland
|
20-3912942
|
|
State
or other jurisdiction of incorporation or organization
|
(I.R.S.
Employer Identification No.)
|
In
the People’s Republic of China:
Building
2, Unit 1, 15th
Floor
Ling
Xian Xin Cheng, 86 Gaoxin Road
Hi-Tech
Industrial Development Zone
Xian,
Shaanxi, China 710065
|
In
the United States:
11
East 86th
Street
New
York, New York 10028
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
|
|
N/A
|
(Former
name, former address and former fiscal year, if changed since last
report)
|
Large
accelerated filer o
|
Accelerated
filer o
|
|
Non-accelerated
filero
(Do
not check if a smaller reporting company)
|
Smaller
reporting companyx
|
PART
I — FINANCIAL INFORMATION
|
||||
Item
1. Financial
Statements.
|
1 | |||
Condensed
Consolidated Balance Sheets
as
of June 30, 2010 (Unaudited) and December 31, 2009
|
1 | |||
Condensed
Consolidated Statements of Income and Comprehensive Income
for
the three and six months ended June 30, 2010 and 2009
(Unaudited)
|
2 | |||
Condensed
Consolidated Statements of Stockholders’ Equity
for
the six months ended June 30, 2010 (Unaudited) and
for
the year ended December 31, 2009
|
3 | |||
Condensed
Consolidated Statements of Cash Flows
for
the six months ended June 30, 2010 and 2009 (Unaudited)
|
4 | |||
Notes
to Condensed Consolidated Financial Statements (Unaudited)
|
5 | |||
Item
2. Management’s
Discussion and Analysis of Financial Condition and Results of
Operations.
|
20 | |||
Item
3. Quantitative
and Qualitative Disclosures about Market Risk.
|
28 | |||
Item
4. Controls and Procedures.
|
28 | |||
PART
II — OTHER INFORMATION
|
||||
Item
1. Legal
Proceedings.
|
29 | |||
Item
1A. Risk Factors.
|
29 | |||
Item
2. Unregistered
Sales of Equity Securities and Use of Proceeds.
|
29 | |||
Item
3. Defaults
upon Senior Securities.
|
29 | |||
Item
4. (Removed and
Reserved).
|
29 | |||
Item
5. Other
Information.
|
29 | |||
Item
6. Exhibits.
|
29 |
China
Agri-Business, Inc.
|
Condensed
Consolidated Balance Sheets
|
June
30,
|
December
31,
|
|||||||
2010
|
2009
|
|||||||
(Unaudited)
|
||||||||
Assets
|
||||||||
Current
Assets
|
||||||||
Cash
and cash equivalents
|
$ | 10,344,306 | $ | 9,625,657 | ||||
Accounts
receivable, net of allowance for doubtful accounts of $7,740
and $8,300, respectively
|
36,262 | 28,310 | ||||||
Inventory
|
282,624 | 138,253 | ||||||
Other
receivables
|
7,965 | 7,911 | ||||||
Prepaid
expenses
|
14,869 | 25,396 | ||||||
Total
Current Assets
|
10,686,026 | 9,825,527 | ||||||
Property,
plant and equipment, net of accumulated depreciation of $235,260 and
$202,921, respectively
|
610,763 | 337,995 | ||||||
Investment
in Tine Technology
|
885,000 | 879,000 | ||||||
Deferred
financing costs, net of accumulated amortization of $184,092 and $134,550,
respectively
|
23,190 | 72,732 | ||||||
Intangible
assets, net of accumulated amortization of $17,002 and $13,115,
respectively
|
117,951 | 3,724 | ||||||
Total
Assets
|
$ | 12,322,930 | $ | 11,118,978 | ||||
Liabilities
and Stockholders' Equity
|
||||||||
Current
Liabilities
|
||||||||
Current
portion of long-term debt
|
$ | 9,131 | $ | 8,779 | ||||
Current
portion of convertible notes, net of unamortized debt discounts of $23,715
and $72,499, respectively
|
476,285 | 427,501 | ||||||
Accounts
payable and accrued liabilities
|
284,248 | 286,128 | ||||||
Total
Current Liabilities
|
769,664 | 722,408 | ||||||
Long
Term Liabilities
|
||||||||
Long-term
debt
|
101,576 | 105,618 | ||||||
Total
Long Term Liabilities
|
101,576 | 105,618 | ||||||
Total
Liabilities
|
871,240 | 828,026 | ||||||
Stockholders'
Equity
|
||||||||
Undesignated
preferred stock, par value $.001 per share; authorized 4,900,000 shares;
none issued
|
- | - | ||||||
Common
stock, par value $.001 per share; authorized 100,000,000
shares, issued and outstanding 12,958,574 and 12,958,574,
respectively
|
12,959 | 12,959 | ||||||
Additional
paid-in capital
|
4,370,212 | 4,370,212 | ||||||
Retained
earnings
|
5,793,502 | 4,708,473 | ||||||
Accumulated
other comprehensive income
|
1,275,017 | 1,199,308 | ||||||
Total
stockholders' equity
|
11,451,690 | 10,290,952 | ||||||
Total
Liabilities and Stockholders' Equity
|
$ | 12,322,930 | $ | 11,118,978 |
The
accompanying notes are an integral part of these financial
statements.
|
China
Agri -Business, Inc.
|
Condensed
Consolidated Statements of Income and Comprehensive
Income
|
(Unaudited)
|
For
The
Three
Months Ended
June
30,
|
For
The
Six
Months Ended
June
30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Sales
of products
|
$ | 3,452,574 | $ | 703,875 | $ | 4,993,515 | $ | 1,173,447 | ||||||||
Cost
of goods sold
|
2,244,930 | 188,652 | 3,110,048 | 334,894 | ||||||||||||
Gross
profit
|
1,207,644 | 515,223 | 1,883,467 | 838,553 | ||||||||||||
Selling,
general and administrative expenses
|
405,833 | 218,794 | 701,092 | 383,145 | ||||||||||||
Income
from operations
|
801,811 | 296,429 | 1,182,375 | 455,408 | ||||||||||||
Interest
and other income
|
5,715 | 6,279 | 12,194 | 10,798 | ||||||||||||
Interest
expense
|
(54,305 | ) | (55,807 | ) | (109,540 | ) | (112,389 | ) | ||||||||
Income
before income taxes
|
753,221 | 246,901 | 1,085,029 | 353,817 | ||||||||||||
Income
taxes
|
- | - | - | - | ||||||||||||
Net
income
|
$ | 753,221 | $ | 246,901 | $ | 1,085,029 | $ | 353,817 | ||||||||
Earnings
per common share:
|
||||||||||||||||
Basic
|
$ | 0.06 | $ | 0.02 | $ | 0.08 | $ | 0.03 | ||||||||
Diluted
|
$ | 0.05 | $ | 0.02 | $ | 0.08 | $ | 0.03 | ||||||||
Weighted
average number of common shares used to compute earnings per common
share:
|
||||||||||||||||
Basic
|
12,958,574 | 12,958,574 | 12,958,574 | 12,958,574 | ||||||||||||
Diluted
|
13,958,574 | 13,958,574 | 13,958,574 | 13,958,574 | ||||||||||||
Comprehensive
Income:
|
||||||||||||||||
Net
income
|
$ | 753,221 | $ | 246,901 | $ | 1,085,029 | $ | 353,817 | ||||||||
Other
comprehensive income - foreign currency translation adjustment
|
76,365 | (11,032 | ) | 75,709 | (10,999 | ) | ||||||||||
Comprehensive
Income
|
$ | 829,586 | $ | 235,869 | $ | 1,160,738 | $ | 342,818 |
China
Agri -Business, Inc.
|
Condensed
Consolidated Statements of Stockholders' Equity
|
For
the Six Months Ended June 30, 2010 (Unaudited) and the Year Ended December
31, 2009
|
Common
Stock Shares
|
Common
Stock Amount
|
Additional
Paid-in Capital
|
Retained
Earnings
|
Accumulated
Other Comprehensive Income
|
Total
|
|||||||||||||||||||
Balance,
December 31, 2008
|
12,958,574 | $ | 12,959 | $ | 4,369,786 | $ | 3,654,212 | $ | 1,185,676 | $ | 9,222,633 | |||||||||||||
Fair
value of additional warrants issued to Placement Agent
|
- | - | 426 | - | - | 426 | ||||||||||||||||||
Net
income for the year ended December 31, 2009
|
- | - | - | 1,054,261 | - | 1,054,261 | ||||||||||||||||||
Foreign
currency translation adjustment
|
- | - | - | - | 13,632 | 13,632 | ||||||||||||||||||
Balance,
December 31, 2009
|
12,958,574 | 12,959 | 4,370,212 | 4,708,473 | 1,199,308 | 10,290,952 | ||||||||||||||||||
Net
income for the six months ended June 30, 2010 (Unaudited)
|
- | - | - | 1,085,029 | - | 1,085,029 | ||||||||||||||||||
Foreign
currency translation adjustment (Unaudited)
|
- | - | - | - | 75,709 | 75,709 | ||||||||||||||||||
Balance,
June 30, 2010 (Unaudited)
|
12,958,574 | $ | 12,959 | $ | 4,370,212 | $ | 5,793,502 | $ | 1,275,017 | $ | 11,451,690 |
China
Agri -Business, Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(Unaudited)
|
For
the Six Months Ended
June
30,
|
||||||||
2010
|
2009
|
|||||||
Operating
activities
|
||||||||
Net
income
|
$ | 1,085,029 | $ | 353,817 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
(Reduction
in) allowance for doubtful accounts
|
(612 | ) | (560 | ) | ||||
Depreciation
of property, plant and equipment
|
30,744 | 20,558 | ||||||
Amortization
of intangible assets and deferred financing costs
|
53,314 | 60,290 | ||||||
Amortization
of debt discount and fair value of warrants
|
48,784 | 50,695 | ||||||
Changes
in operating assets and liabilities:
|
||||||||
(Increase)
/ decrease in accounts receivable
|
(7,392 | ) | 8,545 | |||||
Increase
in other receivable
|
- | (3,901 | ) | |||||
Increase
in inventory
|
(144,371 | ) | (31,954 | ) | ||||
Decrease
in prepaid expenses
|
10,527 | 5,855 | ||||||
Decrease
in accounts payable and accrued liabilities
|
(1,880 | ) | (9,633 | ) | ||||
Net
cash provided by operating activities
|
1,074,143 | 453,712 | ||||||
Investing
activities
|
||||||||
Proceeds
from return of unused manufacturing equipment and production rights
to
respective vendors for cash equal to the assets' book
value
|
- | 131,760 | ||||||
Purchase
of equipment
|
(301,413 | ) | (608 | ) | ||||
Purchase
of products rights
|
(118,000 | ) | - | |||||
Net
cash (used in) / provided by investing activities
|
(419,413 | ) | 131,152 | |||||
Financing
activities
|
||||||||
Repayment
of long-term debt
|
(4,471 | ) | - | |||||
Net
cash (used in) financing activities
|
(4,471 | ) | - | |||||
Effect
of exchange rate changes on cash and cash equivalents
|
68,390 | (9,567 | ) | |||||
Increase
in cash and cash equivalents
|
718,649 | 575,297 | ||||||
Cash
and cash equivalents, beginning of period
|
9,625,657 | 8,312,636 | ||||||
Cash
and cash equivalents, end of period
|
$ | 10,344,306 | $ | 8,887,933 | ||||
Supplemental
Disclosures of Cash Flow Information:
|
||||||||
Interest
paid
|
$ | 3,714 | $ | - | ||||
Income
taxes paid
|
$ | - | $ | - |
The
accompanying notes are an integral part of these financial
statements.
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(Unaudited)
|
Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||
Net
income (used to compute basic EPS)
|
$ | 753,221 | $ | 246,901 | $ | 1,085,029 | $ | 353,817 | ||||||||
Add
back interest expense on convertible notes - see Note 9
|
3,750 | 3,750 | 7,500 | 7,500 | ||||||||||||
Net
income (used to compute diluted EPS)
|
$ | 756,971 | $ | 250,651 | $ | 1,092,529 | $ | 361,317 |
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||
|
||||||||||||||||
Weighted
average number of common shares outstanding (used to compute
basic EPS)
|
12,958,574 | 12,958,574 | 12,958,574 | 12,958,574 | ||||||||||||
Assumed
conversion of convertible notes - see Note 9
|
1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||||||
Weighted average
number of common shares outstanding and
dilutive common stock equivalents outstanding (used
to compute diluted EPS)
|
13,958,574 | 13,958,574 | 13,958,574 | 13,958,574 |
Inventory
consists of:
|
June
30,
|
December
31,
|
||||||
2010
|
2009
|
|||||||
(Unaudited)
|
||||||||
Raw
materials
|
$ | 122,217 | $ | 85,989 | ||||
Finished
goods
|
11,534 | 13,419 | ||||||
Purchased
fertilizers for resale in direct sale stores and branded
stores
|
161,294 | 40,852 | ||||||
Other
|
2,461 | 2,444 | ||||||
Allowance
for slow moving and obsolete items
|
(14,882 | ) | (4,451 | ) | ||||
Total
inventory
|
$ | 282,624 | $ | 138,253 |
June
30,
|
December
31,
|
|||||||
2010
|
2009
|
|||||||
(Unaudited)
|
||||||||
Building
|
$ | 265,527 | $ | 263,727 | ||||
Transportation
equipment
|
229,198 | 222,986 | ||||||
Machinery
and electronic equipment
|
347,768 | 50,697 | ||||||
Office
equipment
|
3,530 | 3,506 | ||||||
846,023 | 540,916 | |||||||
Less
accumulated depreciation
|
(235,260 | ) | (202,921 | ) | ||||
Property,
plant and equipment, net
|
$ | 610,763 | $ | 337,995 |
June
30,
|
December
31,
|
|||||||
2010
|
2009
|
|||||||
(Unaudited)
|
||||||||
Placement
Agent commissions
|
$ | 40,000 | $ | 40,000 | ||||
Placement
Agent expense allowance
|
25,000 | 25,000 | ||||||
Fair
value of Placement Agent warrants
|
19,920 | 19,920 | ||||||
Legal
and other fees
|
122,362 | 122,362 | ||||||
Total
|
207,282 | 207,282 | ||||||
Less:
accumulated amortization
|
(184,092 | ) | (134,550 | ) | ||||
Deferred
Financing Costs, end of period
|
$ | 23,190 | $ | 72,732 |
June
30,
|
December
31,
|
|||||||
2010
|
2009
|
|||||||
(Unaudited)
|
||||||||
Product
rights
|
$ | 118,000 | $ | - | ||||
Patent
|
14,750 | 14,650 | ||||||
Trademark
|
2,203 | 2,189 | ||||||
Total
|
134,953 | 16,839 | ||||||
Less
accumulated amortization
|
(17,002 | ) | (13,115 | ) | ||||
Intangible
assets, net
|
$ | 117,951 | $ | 3,724 |
Year ending June
30,
|
Amortization
|
|||
(Unaudited)
|
||||
2011
|
$ | 13,495 | ||
2012
|
12,674 | |||
2013
|
11,853 | |||
2014
|
11,853 | |||
2015
|
11,853 | |||
Thereafter
|
56,223 | |||
Total
|
$ | 117,951 |
June
30,
|
December
31,
|
|||||||
2010
|
2009
|
|||||||
(Unaudited)
|
||||||||
Convertible
notes - face amount
|
$ | 500,000 | $ | 500,000 | ||||
Less:
|
||||||||
Debt
discount attributable to the relative fair value of
warrants
|
(149,615 | ) | (149,615 | ) | ||||
Debt
discount attributable to the intrinsic value
of the beneficial conversion feature
|
(49,615 | ) | (49,615 | ) | ||||
Add
accumulated amortization of debt discounts
|
175,515 | 126,731 | ||||||
Convertible
notes payable, net
|
$ | 476,285 | $ | 427,501 |
Minimum
|
||||
Year
ending June 30,
|
Repayment
|
|||
(Unaudited)
|
||||
2011
|
$ | 9,131 | ||
2012
|
9,746 | |||
2013
|
10,402 | |||
2014
|
11,103 | |||
2015
|
11,850 | |||
Thereafter
|
58,475 | |||
Total
|
$ | 110,707 |
Six
Months Ended
|
Year
Ended
|
|||||||
June
30,
|
December
31,
|
|||||||
2010
|
2009
|
|||||||
(Unaudited)
|
||||||||
Outstanding
at beginning of period
|
1,378,580 | 1,387,580 | ||||||
Warrants
issued - see Note 9
|
- | 1,000 | ||||||
Warrants
exercised
|
- | - | ||||||
Warrants
expired
|
- | (10,000 | ) | |||||
Outstanding
at end of period
|
1,378,580 | 1,378,580 | ||||||
Exercisable
at end of period
|
1,378,580 | 1,378,580 |
Number
of
|
Weighted
Average Exercise
|
|||||||||
Date
Issued
|
Expiration
Date
|
Warrants
|
Price
|
|||||||
October
11, 2007
|
October
10, 2010
|
379,800 | $ | 1.50 | ||||||
October
11, 2007
|
October
10, 2010
|
379,800 | 2.00 | |||||||
October
11, 2007
|
October
10, 2012
|
37,980 | 1.00 | |||||||
September
29, 2008
|
September
29, 2011
|
80,000 | 1.00 | |||||||
September
29, 2008 (1)
|
September
29, 2011
|
500,000 | 1.50 | |||||||
October
9, 2009
|
October
9, 2012
|
1,000 | 1.00 | |||||||
Total
|
1,378,580 | $ | 1.59 |
(1)
|
Represents
Series C warrants.
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||
Expected
tax at 35%
|
$ | 263,627 | $ | 86,415 | $ | 379,760 | $ | 123,836 | ||||||||
Tax
effect of unutilized losses of China Agri and Meixin
|
47,701 | 38,722 | 83,921 | 78,229 | ||||||||||||
Effect
of PRC income tax exemption granted to Xinsheng
|
(222,377 | ) | (89,383 | ) | (331,201 | ) | (144,332 | ) | ||||||||
Permanent
difference relating to Xinsheng's earnings to be permanently invested in
operations outside the United States
|
(88,951 | ) | (35,754 | ) | (132,480 | ) | (57,733 | ) | ||||||||
Actual
provision for income taxes
|
$ | - | $ | - | $ | - | $ | - |
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||||||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||||||||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||||||||||||||||
Direct
sales stores
|
$ | 2,764,522 | 80.07 | % | $ | - | 0.00 | % | $ | 3,826,983 | 76.64 | % | $ | - | 0.00 | % | ||||||||||||||||
Super
chain branded stores
|
185,864 | 5.38 | % | 128,385 | 18.24 | % | 369,145 | 7.39 | % | 154,413 | 13.16 | % | ||||||||||||||||||||
Traditional
sales network
|
502,188 | 14.55 | % | 575,490 | 81.76 | % | 797,387 | 15.97 | % | 1,019,034 | 86.84 | % | ||||||||||||||||||||
Total
Sales
|
$ | 3,452,574 | 100.00 | % | $ | 703,875 | 100.00 | % | $ | 4,993,515 | 100.00 | % | $ | 1,173,447 | 100.00 | % |
Six
Months Ended
|
||||||||||||||||
June
30, 2010 (Unaudited)
|
||||||||||||||||
Total
|
Company
Made Products
|
Third
Party Products
|
%
of Third Party Products
|
|||||||||||||
Direct
sales stores
|
$ | 3,826,983 | $ | 604,632 | $ | 3,222,351 | 84.20 | % | ||||||||
Super
chain branded stores
|
369,145 | 369,145 | - | 0.00 | % | |||||||||||
Traditional
sales network
|
797,387 | 797,387 | - | 0.00 | % | |||||||||||
Total
Sales
|
$ | 4,993,515 | $ | 1,771,164 | $ | 3,222,351 | 64.53 | % |
Three
Months Ended
|
||||||||||||||||
June
30, 2010 (Unaudited)
|
||||||||||||||||
Total
|
Company
Made Products
|
Third
Party Products
|
%
of Third Party Products
|
|||||||||||||
Direct
sales stores
|
$ | 2,764,522 | $ | 412,925 | $ | 2,351,597 | 85.06 | % | ||||||||
Super
chain branded stores
|
185,864 | 185,864 | - | 0.00 | % | |||||||||||
Traditional
sales network
|
502,188 | 502,188 | - | 0.00 | % | |||||||||||
Total
Sales
|
$ | 3,452,574 | $ | 1,100,977 | $ | 2,351,597 | 68.11 | % |
Year Ending June
30,
|
Minimum
Rent
|
|||
(Unaudited)
|
||||
2011
|
$ | 6,638 | ||
2012
|
- | |||
Total
|
$ | 6,638 |
Three
Months Ended June 30,
|
||||||||||||||||
2010
|
2009
|
|||||||||||||||
Direct
sales stores
|
$ | 2,764,522 | 80.07 | % | $ | - | 0.00 | % | ||||||||
Super
chain branded stores
|
185,864 | 5.38 | % | 128,385 | 18.24 | % | ||||||||||
Traditional
sales network
|
502,188 | 14.55 | % | 575,490 | 81.76 | % | ||||||||||
Total
Sales
|
$ | 3,452,574 | 100.00 | % | $ | 703,875 | 100.00 | % |
Three
Months Ended
June
30,
|
||||||||
2010
|
2009
|
|||||||
Sales
|
$ | 3,452,574 | $ | 703,875 | ||||
Cost
of Goods Sold
|
2,244,930 | 188,652 | ||||||
Gross
Profit
|
$ | 1,207,644 | $ | 515,223 | ||||
Gross
Profit Margin
|
34.98 | % | 73.20 | % |
Three
Months Ended
June
30,
|
||||||||
2010
|
2009
|
|||||||
Gross
Profit
|
$ | 1,207,644 | $ | 515,223 | ||||
Selling
and marketing
|
244,440 | 94,524 | ||||||
Professional
fees
|
50,452 | 31,663 | ||||||
Depreciation
and amortization expenses
|
15,014 | 11,878 | ||||||
Other
general and administrative expenses
|
95,927 | 80,729 | ||||||
Total
selling, general and administrative expenses
|
405,833 | 218,794 | ||||||
Income
from operations
|
801,811 | 296,429 | ||||||
Interest
income
|
5,715 | 6,279 | ||||||
Interest
expense
|
(54,305 | ) | (55,807 | ) | ||||
Net
Income
|
$ | 753,221 | $ | 246,901 |
Six
Months Ended June 30,
|
||||||||||||||||
2010
|
2009
|
|||||||||||||||
Direct
sales stores
|
$ | 3,826,983 | 76.64 | % | $ | - | 0.00 | % | ||||||||
Super
chain branded stores
|
369,145 | 7.39 | % | 154,413 | 13.16 | % | ||||||||||
Traditional
sales network
|
797,387 | 15.97 | % | 1,019,034 | 86.84 | % | ||||||||||
Total
Sales
|
$ | 4,993,515 | 100.00 | % | $ | 1,173,447 | 100.00 | % |
Six
Months Ended
June
30,
|
||||||||
2010
|
2009
|
|||||||
Sales
|
$ | 4,993,515 | $ | 1,173,447 | ||||
Cost
of Goods Sold
|
3,110,048 | 334,894 | ||||||
Gross
Profit
|
$ | 1,883,467 | $ | 838,553 | ||||
Gross
Profit Margin
|
37.72 | % | 71.46 | % |
Six
Months Ended
June
30,
|
||||||||
2010
|
2009
|
|||||||
Gross
Profit
|
$ | 1,883,467 | $ | 838,553 | ||||
Selling
and marketing
|
397,559 | 150,924 | ||||||
Professional
fees
|
95,202 | 60,663 | ||||||
Depreciation
and amortization expenses
|
26,831 | 23,721 | ||||||
Other
general and administrative expenses
|
181,500 | 147,837 | ||||||
Total
selling, general and administrative expenses
|
701,092 | 383,145 | ||||||
Income
from operations
|
1,182,375 | 455,408 | ||||||
Interest
income
|
12,194 | 10,798 | ||||||
Interest
expense
|
(109,540 | ) | (112,389 | ) | ||||
Net
Income
|
$ | 1,085,029 | $ | 353,817 |
Exhibit
No.
|
Description
|
|
31.1 |
Certification
of Chief Executive Officer pursuant to Rule 13a-14(a) promulgated under
the Securities Exchange Act of 1934, as amended.
|
|
31.2 |
Certification
of Chief Financial Officer pursuant to Rule 13a-14(a) promulgated under
the Securities Exchange Act of 1934, as amended.
|
|
32.1 |
Certification
of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
|
32.2 |
Certification
of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
CHINA AGRI-BUSINESS, INC. | |||
|
By:
|
/s/ Liping Deng | |
Liping Deng | |||
President,
Chief Executive Officer, Director
|
|||
(Principal Executive Officer) |
|
By:
|
/s/ Xiaolong Zhou | |
Xiaolong Zhou | |||
Chief Financial Officer | |||
(Principal Financial Officer) |
Exhibit
No.
|
Description
|
|
31.1 |
Certification
of Chief Executive Officer pursuant to Rule 13a-14(a) promulgated under
the Securities Exchange Act of 1934, as amended.
|
|
31.2 |
Certification
of Chief Financial Officer pursuant to Rule 13a-14(a) promulgated under
the Securities Exchange Act of 1934, as amended.
|
|
32.1 |
Certification
of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
|
32.2 |
Certification
of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|