California
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33-0788293
|
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(State or Other Jurisdiction of Incorporation or Organization)
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(I.R.S. Employer Identification No.)
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805 Veterans Blvd., Suite 228, Redwood City, CA
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94063
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(Address of Principal Executive Offices)
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(Zip Code)
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Page
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|||
PART I
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FINANCIAL INFORMATION
|
||
Item 1
|
Condensed Consolidated Financial Statements (unaudited)
|
4
|
|
Auditor Review Report
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4
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||
Condensed Consolidated Balance Sheets
|
5
|
||
Condensed Consolidated Statements of Income
|
6
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||
Condensed Consolidated Statements of Cash Flows
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7
|
||
Notes to Condensed Consolidated Financial Statements
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8
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||
Item 2
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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15
|
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Item 3
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Quantitative and Qualitative Disclosures about Market Risk
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18
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Item 4
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Controls and Procedures
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19
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PART II
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OTHER INFORMATION
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||
Item 1
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Legal Proceedings
|
21
|
|
Item 1A
|
Risk Factors
|
21
|
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Item 2
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Unregistered Sales of Equity Securities and Use of Proceeds
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21
|
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Item 3
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Defaults Upon Senior Securities
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21
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Item 4
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Submission of Matters to a Vote of Security Holders
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21
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Item 5
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Other Information
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21
|
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Item 6
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Exhibits
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21
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|
Signatures
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22
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/S/ Gansu Hongxin Certified Public Accountants Co., Ltd.
|
|
Lanzou, China
|
1.
|
Basis of Presentation, Organization and Business
|
2.
|
Summary of Significant Accounting Policies
|
(a)
|
Accounting standards
|
(b)
|
Fiscal year
|
(c)
|
Consolidation
|
(d)
|
Use of estimates
|
2.
|
Summary of Significant Accounting Policies
- continued
|
(e)
|
Revenue recognition
|
(f)
|
Shipping and handling costs
|
(g)
|
Cash and cash equivalents
|
(h)
|
Inventories
|
(i)
|
Accounts receivable, net
|
(j)
|
Property, plant and equipment
|
Buildings and improvements
|
20 - 40 years
|
Farming facilities
|
10 years
|
Machinery and equipment
|
7 years
|
Transportation and other facilities
|
3 - 15 years
|
2.
|
Summary of Significant Accounting Policies
- continued
|
06/30/2014
|
12/31/2013
|
|||||||
Buildings and improvements
|
$
|
116,021,157
|
$
|
115,517,239
|
||||
Farming facilities
|
104,124,997
|
105,667,488
|
||||||
Machinery and equipment
|
14,123,370
|
13,900,573
|
||||||
Transportation
|
331,958,545
|
335,920,143
|
||||||
Windbreak and Sand-break Trees
|
410,546,673
|
381,277,766
|
||||||
Total
|
976,774,741
|
952,283,209
|
||||||
Less: Accumulated Depreciation and amortization
|
110,037,325
|
103,604,301
|
||||||
Net
|
$
|
866,737,416
|
$
|
848,678,908
|
(k)
|
Intangible assets
|
(l)
|
Impairment of long-lived assets
|
(m)
|
Investments
|
(n)
|
Foreign currency translation
|
(o)
|
Income taxes
|
(p)
|
Earnings per share
|
2.
|
Summary of Significant Accounting Policies
- continued
|
(q)
|
Economic and Political Risks
|
(r)
|
Advertising expense
|
(s)
|
Comprehensive income
|
(t)
|
Recently issued accounting standards
|
2.
|
Summary of Significant Accounting Policies
- continued
|
(u)
|
Value added tax (VAT)
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3.
|
Inventories
|
Inventory Breakdown
|
As of 06/30/2014
|
As of 12/31/2013
|
||||||||
Raw material
|
67,449,959
|
64,583,540
|
||||||||
Finished goods
|
183,397,353
|
167,437,526
|
||||||||
Low value consumable goods
|
46,755,243
|
43,296,466
|
||||||||
Packaging material
|
30,627,082
|
28,712,685
|
||||||||
Maintenance material
|
16,052,989
|
14,949,927
|
||||||||
Total
|
344,282,627
|
318,980,143
|
5.
|
Profit appropriation
|
6.
|
Concentration of risks
|
7.
|
Income taxes
|
8.
|
Debt
|
9.
|
Employee benefit plans
|
10.
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Operating leases
|
11.
|
Segments
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Net Sales
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Net Sales
|
Cost of Sales
|
Cost of Sales
|
Gross Profit
|
Gross Profit
|
|||||||||||||||||||
Subsidiaries
|
ended
|
ended
|
ended
|
ended
|
ended
|
ended
|
||||||||||||||||||
06/30/2014
|
06/30/2013
|
06/30/2014
|
06/30/2013
|
06/30/2014
|
06/30/2013
|
|||||||||||||||||||
Gansu Tiaoshan Agricultural-Industrial-Commercial Group Co., Ltd
|
$
|
209,944,044
|
$
|
191,783,642
|
$
|
188,764,467
|
$
|
172,449,925
|
$
|
21,179,578
|
$
|
19,333,717
|
||||||||||||
Gansu Hongtai Agricultural Technology Co., Ltd.
|
$
|
57,758,872
|
$
|
52,796,044
|
$
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52,434,699
|
$
|
47,929,341
|
$
|
5,324,172
|
$
|
4,866,702
|
||||||||||||
Gansu Xiaheqing Industrial Co., Ltd.
|
10,889,022
|
9,953,402
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8,747,906
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7,996,258
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2,141,116
|
1,957,144
|
||||||||||||||||||
Gansu Jinta Hengsheng Agricultural Development Co., Ltd.
|
51,409,672
|
46,992,388
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45,642,467
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41,720,719
|
5,767,206
|
5,271,669
|
||||||||||||||||||
Gansu Jinta Xingsheng Industrial Co., Ltd.
|
51,259,826
|
46,855,417
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44,382,389
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40,568,911
|
6,877,438
|
6,286,506
|
||||||||||||||||||
Gansu Jinta Yongsheng Agricultural Development Company.
|
53,542,076
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48,941,569
|
46,289,743
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42,312,379
|
7,252,334
|
6,629,190
|
||||||||||||||||||
Gansu Jinta Yuantai Commercial Trading Co., Ltd
|
632,085
|
577,774
|
459,632
|
420,139
|
172,453
|
157,635
|
||||||||||||||||||
|
|
|
||||||||||||||||||||||
Totals for six months
|
$
|
435,435,597
|
$
|
397,900,234
|
$
|
386,721,302
|
$
|
353,397,672
|
$
|
48,714,296
|
$
|
44,502,562
|
Sales
ended
|
Sales
ended
|
Cost of Sales
ended
|
Cost of Sales
ended
|
Gross Profit
ended
|
Gross Profit
ended
|
Gross Profit
%
ended
|
Gross Profit %
|
|||||||||||||||||||||||||
ended
|
||||||||||||||||||||||||||||||||
06/30/2014
|
06/30/2013
|
06/30/2014
|
06/30/2013
|
06/30/2014
|
06/30/2013
|
06/30/2014
|
06/30/2013
|
|||||||||||||||||||||||||
Agriculture
|
$
|
431,248,303
|
394,072,725
|
383,046,335
|
$
|
350,038,470
|
$
|
48,201,968
|
$
|
44,034,255
|
9.5
|
11.17
|
||||||||||||||||||||
Livestock
|
903,366
|
825,746
|
734,342
|
671,245
|
169,024
|
154,501
|
9.3
|
8.00
|
||||||||||||||||||||||||
Biotechnology
|
3,283,929
|
3,001,763
|
2,940,625
|
2,687,957
|
343,304
|
313,806
|
9.4
|
4.06
|
||||||||||||||||||||||||
Total for Quarter
|
$
|
435,435,958
|
$
|
397,900,234
|
$
|
386,721,302
|
$
|
353,397,672
|
$
|
48,714,296
|
$
|
44,502,562
|
9,4
|
11.11
|
Three Months Ended
June 30, 2014
|
Three Months Ended
June 30, 2013
|
|||||||||||||||
Dollars
(000's)
|
% of Sales
|
Dollars
(000's)
|
% of Sales
|
|||||||||||||
Net Sales
|
$
|
226,224
|
100
|
%
|
$
|
192,745
|
100
|
%
|
||||||||
Costs of Goods Sold
|
200,499
|
89
|
%
|
170,736
|
89
|
%
|
||||||||||
Gross profit
|
25,725
|
11
|
%
|
22,009
|
11
|
%
|
||||||||||
Sales and marketing expenses
|
360
|
0.2
|
%
|
355
|
0.2
|
%
|
||||||||||
General and administrative expenses
|
768
|
0.3
|
%
|
753
|
0.4
|
%
|
||||||||||
Interest expense
|
2
|
0.0
|
%
|
-20
|
0.0
|
%
|
||||||||||
Other income
|
233
|
0.1
|
%
|
407
|
0.2
|
%
|
||||||||||
Net income
|
$
|
24,827
|
11
|
%
|
$
|
21,328
|
11
|
%
|
1)
|
According to the monitoring data of the national agricultural and sideline products and agricultural materials price quotation system,which show that since the beginning of this year, fruit prices show more obvious rising trend. Compared with January 1, in June, the national prices of banana, pear, pear, orange, ponkan, Fuji apple are rising, the amount of increase is respectively 41.9
%,
35.9
%,
33.1
%,
32.3
%,
27.8
%
and 21.3
%
. At present, the monitoring national prices of fruits are significantly higher than last year, an increase of more than twenty percent. Compared with the second quarter in 2013, the prices of 21 kinds of monitoring vegetables in the second quarter of 2014 are averaging up 14.0%.Among them, the price-rise of prices of cowpea, green bean, bitter gourd and die Peperoli are in the lead, are respectively, 40.2%, 38.9%, 38.1%, 37.3%, the amount of increase of corn price in the first half year can be up to 20% maximum.
The general rise in prices of agricultural products in the second quarter, which has increased sales revenue of agricultural products.
|
2)
|
Depreciation of the dollar. Food, oil and other raw materials in the international market are priced in U.S. dollars. The average exchange rates for the periods presented were 6.1524 RMB to 1 USD for the six months ended June 30, 2014 and 6.2252 RMB to 1 USD for the six months ended June 30, 2013, currency proportion was down by 1.1%.
|
Six Months Ended
June 30th
|
||||||||
2014
|
2013
|
|||||||
Net cash provided by operating activities
|
28,489
|
8,712
|
||||||
Net cash used in investing activities
|
-24,935
|
-2,137
|
||||||
Net cash used in financing activities
|
-3,193
|
-6,876
|
||||||
Effect of foreign currency translation on cash and cash equivalents
|
-105
|
493
|
||||||
Cash and cash equivalents at beginning of the period
|
11,338
|
10,980
|
||||||
Cash and cash equivalents at end of period
|
11,594
|
11,173
|
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
- continued
|
Item 4.
|
Controls and Procedures.
|
Item 4.
|
Controls and Procedures -
continued
|
Exhibit No.
|
Description
|
YASHENG GROUP
|
|||
August 8, 2014
|
By:
|
/s/
Ye Dong
|
|
Ye Dong
|
|||
Chief Executive Officer
|
|||