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 Operations
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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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14
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Item 3
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Quantitative and Qualitative Disclosures about Market Risk
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16
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Item 4
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Controls and Procedures
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17
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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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19
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Item 1A
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Risk Factors
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19
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Item 2
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Unregistered Sales of Equity Securities and Use of Proceeds
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19
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Item 3
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Defaults Upon Senior Securities
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19
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Item 4
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Mine Safety Disclosures
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19
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Item 5
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Other Information
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19
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Item 6
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Exhibits
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19
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Signatures
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20
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/S/ Gansu Hongxin Certified Public Accountants Co., Ltd.
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Lanzhou, 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
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Transportation and other facilities
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3 - 15 years
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2.
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Summary of Significant Accounting Policies
- continued
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06/30/2015
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12/31/2014
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Buildings and improvements
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$
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124,138,734
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$
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123,603,446
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Farming facilities
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111,410,243
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113,064,212
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Machinery and equipment
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15,111,529
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14,873,613
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Transportation
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359,269,719
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359,434,553
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Windbreak and Sand-break trees
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436,813,245
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404,432,178
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||||||
Total
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1,046,743,470
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1,015,408,002
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||||||
Less: Accumulated Depreciation and amortization
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121,540,849
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110,139,280
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||||||
Net
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$
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925,202,621
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$
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905,268,722
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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.
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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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(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 06/30/2015
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As of 12/31/2014
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Raw material
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$69,888,646
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$69,104,388
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Finished goods
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190,028,177
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179,605,652
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Low value consumable goods
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48,445,702
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46,327,219
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Packaging material
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31,734,420
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30,722,573
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Maintenance material
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16,633,393
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15,996,422
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Total
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$356,730,338
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$ 341,756,253
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4.
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China contribution plan
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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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Subsidiaries
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Net sales
Ended
06/30/2015
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Net sales
ended
06/30/2014
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Cost of sales ended
06/30/2015
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Cost of sales
ended
06/30/2014
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Gross profit ended
06/30/2015
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Gross profit ended
06/30/2014
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||||||||||||||||||
Gansu Tiaoshan Agricultural-Industrial-Commercial Group Co., Ltd
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$ | 207,784,827 | $ | 209,944,044 | $ | 187,629,430 | $ | 188,764,467 | $ | 20,155,397 | $ | 21,179,577 | ||||||||||||
Gansu Hongtai Agricultural Technology Co., Ltd.
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58,753,405 | 57,758,872 | 50,758,291 | 52,434,699 | 7,995,114 | 5,324,173 | ||||||||||||||||||
Gansu Xiaheqing Industrial Co., Ltd.
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11,133,889 | 10,889,022 | 9,134,555 | 8,747,906 | 1,999,334 | 2,141,116 | ||||||||||||||||||
Gansu Jinta Hengsheng Agricultural Development Co., Ltd.
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52,844,510 | 51,409,672 | 46,442,290 | 45,642,467 | 6,402,220 | 5,767,206 | ||||||||||||||||||
Gansu Jinta Xingsheng Industrial Co., Ltd.
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52,705,055 | 51,259,826 | 45,270,561 | 44,382,389 | 7,434,494 | 6,877,437 | ||||||||||||||||||
Gansu Jinta Yongsheng Agricultural Development Company.
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55,829,036 | 53,542,076 | 49,044,183 | 46,289,743 | 6,784,853 | 7,252,334 | ||||||||||||||||||
Gansu Jinta Yuantai Commercial Trading Co., Ltd.
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788,251 | 632,085 | 527,405 | 459,632 | 260,846 | 172,453 | ||||||||||||||||||
Totals for Quarter
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$ | 439,838,973 | $ | 435,435,598 | $ | 388,806,715 | $ | 386,721,302 | $ | 51,032,258 | $ | 48,714,296 |
Net sales
ended
06/30/2015
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Net sales ended 06/30/2014
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Cost of sales
ended
06/30/2015
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Cost of sales ended 06/30/2014
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Gross profit ended 06/30/2015
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Gross profit ended 06/30/2014
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Gross profit % ended 06/30/2015
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Gross profit % ended 06/30/2014
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Agriculture
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$ | 435,942 ,062 | $ | 431,248,303 | $ | 385,389,415 | $ | 383,046,335 | $ | 50,552,648 | $ | 48,201,968 | 11.60 | 11.18 | ||||||||||||||||||
Livestock
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840,719 | 903,366 | 682,854 | 734,342 | 157,864 | 169,024 | 18.78 | 18.71 | ||||||||||||||||||||||||
Biotechnology
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3,056,192 | 3,283,929 | 2,734,446 | 2,940,625 | 321,746 | 343,304 | 10.53 | 10.45 | ||||||||||||||||||||||||
Total
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$ | 439,838,973 | $ | 435,435,598 | $ | 388,806,715 | $ | 386,721,302 | $ | 51,032,258 | $ | 48,714,296 | 11.66 | 11.19 |
Three Months Ended
June 30, 2015
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Three Months Ended
June 30, 2014
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Dollars
(000's)
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% of Sales
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Dollars
(000's)
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% of Sales
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|||||||||||||
Net Sales
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$ | 229,803 | 100 | % | $ | 226,224 | 100 | % | ||||||||
Costs of Goods Sold
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201,799 | 88 | % | 200,499 | 89 | % | ||||||||||
Gross profit
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28,002 | 12.1 | % | 25,725 | 11 | % | ||||||||||
Sales and marketing expenses
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359 | 0.2 | % | 360 | 0.2 | % | ||||||||||
General and administrative expenses
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762 | 0.3 | % | 768 | 0.3 | % | ||||||||||
Interest income
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- 29 | -0.01 | % | 2 | 0.0 | % | ||||||||||
Other income
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137 | 0.06 | % | 233 | 0.1 | % | ||||||||||
Net income
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$ | 27,048 | 11 | % | $ | 24,827 | 11 | % |
Six Months Ended
June 30th
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||||||||
2015
|
2014
|
|||||||
Net cash provided by operating activities
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29,726
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28,489
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Net cash used in investing activities
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-13,218
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-24,935
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Net cash used in financing activities
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-2,119
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-3,193
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Effect of foreign currency translation on cash and cash equivalents
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102
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-105
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||||||
Cash and cash equivalents at beginning of the period
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11,907
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11,338
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Cash and cash equivalents at end of period
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11,937
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11,594
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Item 3.
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Quantitative and Qualitative Disclosures about Market Risk
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Item 3.
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Quantitative and Qualitative Disclosures about Market Risk
- continued
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Item 4.
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Controls and Procedures.
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Exhibit No.
|
Description
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99.2 | Temporary Hardship Exemption |
101 |
Interactive
data files pursuant to Rule 405 of Regulation S
-T.
*
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YASHENG GROUP
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August 19, 2015
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By:
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/s/
Ye Dong
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Ye Dong
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Chief Executive Officer
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