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
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Item 1
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Condensed Consolidated Financial Statements (unaudited)
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4
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Auditor Review Report
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4
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||
Condensed Consolidated Balance Sheets
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5
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||
Condensed Consolidated Statements of Income
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6
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||
Condensed Consolidated Statements of Cash Flows
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7
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||
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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18
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PART II
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OTHER INFORMATION
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||
Item 1
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Legal Proceedings
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20
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Item 1A
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Risk Factors
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20
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Item 2
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Unregistered Sales of Equity Securities and Use of Proceeds
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20
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Item 3
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Defaults Upon Senior Securities
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20
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Item 4
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Submission of Matters to a Vote of Security Holders
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20
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Item 5
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Other Information
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20
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Item 6
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Exhibits
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20
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Signatures
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21
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/S/ Gansu Hongxin Certified Public Accountants Co., Ltd.
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Lanzou, China
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1.
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Basis of Presentation, Organization and Business
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2.
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Summary of Significant Accounting Policies
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(a)
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Accounting standards
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(b)
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Fiscal year
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(c)
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Consolidation
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(d)
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Use of estimates
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2.
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Summary of Significant Accounting Policies
- continued
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(e)
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Revenue recognition
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(f)
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Shipping and handling costs
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(g)
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Cash and cash equivalents
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(h)
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Inventories
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(i)
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Accounts receivable, net
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(j)
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Property, plant and equipment
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Buildings and improvements
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20 - 40 years
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Farming facilities
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10 years
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Machinery and equipment
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7 years
|
Transportation and other facilities
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3 - 15 years
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2.
|
Summary of Significant Accounting Policies
- continued
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03/31/2015
|
03/31/2014
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|||||||
Buildings and improvements
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$
|
122,270,094
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$
|
114,271,116
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||||
Farming facilities
|
109,733.203
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102,554,395
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||||||
Machinery and equipment
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14,884,058
|
13,910,335
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||||||
Transportation
|
353,861,690
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326,951,346
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||||||
Windbreak and Sand-break Trees
|
430,237,964
|
402,091,555
|
||||||
Total
|
1,030,987,009
|
959,778,748
|
||||||
Less: Accumulated Depreciation and amortization
|
118,299,457
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105,819,463
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||||||
Net
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$
|
912,687,552
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$
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853,959,285
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(k)
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Intangible assets
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(l)
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Impairment of long-lived assets
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(m)
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Investments
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(n)
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Foreign currency translation
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(o)
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Income taxes
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(p)
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Earnings per share
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2.
|
Summary of Significant Accounting Policies
- continued
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(q)
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Economic and Political Risks
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(r)
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Advertising expense
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(s)
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Comprehensive income
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(t)
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Recently issued accounting standards
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2.
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Summary of Significant Accounting Policies
- continued
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(u)
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Value added tax (VAT)
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3.
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Inventories
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Inventory Breakdown
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As of 3/31/2015
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As of 3/31/2014
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||||||
Raw material
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67,463,960 | 66,141,137 | ||||||
Finished goods
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180,593,123 | 175,502,312 | ||||||
Low value consumable goods
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45,953,618 | 45,052,567 | ||||||
Packaging material
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30,101,978 | 29,511,743 | ||||||
Maintenance material
|
15,777,758 | 15,468,390 | ||||||
Total
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339,890,437 | 331,676,149 |
4.
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China contribution plan
|
5.
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Profit appropriation
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6.
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Concentration of risks
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7.
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Income taxes
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8.
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Debt
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9.
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Employee benefit plans
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10.
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Operating leases
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11.
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Segments
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Net Sales
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Net Sales
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Cost of Sales
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Cost of Sales
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Gross Profit
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Gross Profit
|
|||||||||||||||||||
Subsidiaries
|
ended
|
ended
|
ended
|
ended
|
ended
|
ended
|
||||||||||||||||||
3/31/2015
|
3/31/2014
|
3/31/2015
|
3/31/2014
|
3/31/2015
|
3/31/2014
|
|||||||||||||||||||
Gansu Tiaoshan Agricultural-Industrial-Commercial Group Co., Ltd
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$
|
51,070,601
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$
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50,870,112
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$
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45,972,220
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$
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45,779,409
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$
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5,098,092
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$
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5,089,234
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||||||||||||
Gansu Tiaoshan Agricultural-Industrial-Commercial Group Co., Ltd
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$
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49,444,537
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$
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49,250,432
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$
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43,662,026
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$
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43,478,856
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$
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5,782,276
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$
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5,772,229
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||||||||||||
Gansu Hongtai Agricultural Technology Co., Ltd.
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28,865,148
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28,751,832
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27,102,040
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26,988,342
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1,762,981
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1,759,918
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||||||||||||||||||
Gansu Xiaheqing Industrial Co., Ltd.
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4,699,751
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4,681,301
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4,146,232
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4,128,838
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553,497
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552,535
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||||||||||||||||||
Gansu Jinta Hengsheng Agricultural Development Co., Ltd.
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25,886,476
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25,784,853
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23,108,405
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23,011,461
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2,777,949
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2,773,122
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||||||||||||||||||
Gansu Jinta Xingsheng Industrial Co., Ltd.
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25,307,674
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25,208,323
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21,796,408
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21,704,968
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3,511,143
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3,505,042
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||||||||||||||||||
Gansu Jinta Yongsheng Agricultural Development Company.
|
24,500,425
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24,404,243
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20,956,678
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20,868,761
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3,543,677
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3,537,520
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||||||||||||||||||
Gansu Jinta Yuantai Commercial Trading Co., Ltd.
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261,454
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260,428
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262,784
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261,682
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-344
|
-343
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||||||||||||||||||
Totals for Quarter
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$
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210,036,064
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$
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209,211,523
|
$
|
187,006,793
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$
|
186,222,266
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$
|
23,029,272
|
$
|
22,989,257
|
Sales
|
Sales
|
Cost of Sales
|
Cost of Sales
|
Gross Profit
|
Gross Profit
|
Gross Profit %
|
Gross Profit %
|
|||||||||||||||||||||||||
ended
|
ended
|
ended
|
ended
|
ended
|
ended
|
ended
|
ended
|
|||||||||||||||||||||||||
3/31/2015
|
3/31/2014
|
3/31/2015
|
3/31/2014
|
3/31/2015
|
3/31/2014
|
3/31/2015
|
3/31/2014
|
|||||||||||||||||||||||||
Agriculture
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$
|
208,308,014
|
207,490,256
|
185,370,473
|
$
|
184,592,811
|
$
|
23,442,903
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$
|
22,897,445
|
11.25
|
11.04
|
||||||||||||||||||||
Livestock
|
371,128
|
369,671
|
352,285
|
350,807
|
19,314
|
18,865
|
5.2
|
5.1
|
||||||||||||||||||||||||
Biotechnology
|
1,356,923
|
1,351,596
|
1,284,036
|
1,278,649
|
74,685
|
72,947
|
5.5
|
5.4
|
||||||||||||||||||||||||
Total for Quarter
|
$
|
210,036,064
|
$
|
209,211,523
|
$
|
187,006,793
|
$
|
186,222,266
|
$
|
23,029,272
|
$
|
22,493,438
|
10.96
|
10.99
|
Three Months Ended
March 31, 2015
|
Three Months Ended
March 31, 2014
|
|||||||||||||||
Dollars
(000's)
|
% of Sales
|
Dollars
(000's)
|
% of Sales
|
|||||||||||||
Net Sales
|
$
|
210,036
|
100
|
%
|
$
|
209,211
|
100
|
%
|
||||||||
Costs of Goods Sold
|
187,006
|
89
|
%
|
186,222
|
89
|
%
|
||||||||||
Gross profit
|
23,029
|
11
|
%
|
22,989
|
11
|
%
|
||||||||||
Sales and marketing expenses
|
395
|
0.2
|
%
|
390
|
0.2
|
%
|
||||||||||
General and administrative expenses
|
977
|
0.5
|
%
|
962
|
0.5
|
%
|
||||||||||
Interest expense
|
653
|
0.3
|
%
|
666
|
0.3
|
%
|
||||||||||
Other income
|
237
|
0.1
|
%
|
263
|
0.1
|
%
|
||||||||||
Net income
|
$
|
21,240
|
10.1
|
%
|
$
|
21,233
|
10.1
|
%
|
Three Months Ended
March 31st
|
||||||||
2015
|
2014
|
|||||||
Net cash provided by operating activities
|
14,365,109
|
16,428,629
|
||||||
Net cash used in investing activities
|
-12,430,907
|
-14,321,957
|
||||||
Net cash used in financing activities
|
-1,918,873
|
-2,288,235
|
||||||
Effect of foreign currency translation on cash and cash equivalents
|
-44,976
|
-283,292
|
||||||
Cash and cash equivalents at beginning of the period
|
11,907,242
|
11,337,958
|
||||||
Cash and cash equivalents at end of period
|
11,877,596
|
11,054,666
|
Item 3. Quantitative and Qualitative Disclosures about Market Risk |
Item 4. Controls and Procedures. |
Item 4. Controls and Procedures - continued |
Exhibit No.
|
Description
|
YASHENG GROUP
|
|||
May 8, 2015
|
By:
|
/s/
Ye Dong
|
|
Ye Dong
|
|||
Chief Executive Officer
|
|||