/S/ Ye Dong
Chairman and CEO
|
Subsidiaries
|
Gansu Tiaoshan Agricultural Industrial Commercial Group Co., Ltd
|
Gansu Hongtai Agricultural Technology Co., Ltd.
|
Gansu Xiaheqing Industrial Co., Ltd.
|
Gansu Jinta Hengsheng Agricultural Development Co., Ltd.
|
Gansu Jinta Xingsheng Industrial Co., Ltd.
|
Gansu Jinta Yongsheng Agricultural Development Company.
|
Gansu Jinta Yuantai Commercial Trading Co., Ltd.
|
Year Ended December 31,
|
||||||||||||
2014
|
2013
$
|
2012
|
||||||||||
ASSETS
|
||||||||||||
Current assets:
|
||||||||||||
Cash and cash equivalents
|
11,907,242 | 11,337,958 | 10,980,384 | |||||||||
Accounts receivable, net
|
112,094,824 | 103,061,683 | 91,880,065 | |||||||||
Inventories
|
341,756,253 | 318,980,143 | 227,294,252 |
Prepaid and other current assets
|
4,070,937 | 4,400,112 | 3,962,855 | |||||||||
Total current assets
|
469,829,255 | 437,779,896 | 334,117,556 | |||||||||
Equity and other investments
|
209,941 | 210,702 | 204,380 | |||||||||
Property, plant and equipment, net
|
905,268,722 | 848,678,908 | 785,135,358 | |||||||||
Construction in progress
|
6,960,289 | 7,083,472 | 7,488,107 | |||||||||
Intangible assets, net
|
1,097,762,161 | 1,057,082,947 | 1,033,037,846 | |||||||||
Total assets
|
2,480,030,368 | 2,350,835,926 | 2,159,983,247 |
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||
Current liabilities:
|
||||||||||||
Accounts payable and accrued expenses
|
27,402,889 | 31,495,004 | 25,058,592 | |||||||||
Short term loans
|
4,902,762 | 6,560,711 | 9,545,780 | |||||||||
VAT Tax payable
|
701,760 | 789,243 | 828,517 | |||||||||
Current portion of long term debt
|
3,560,394 | 4,431,287 | 4,930,826 | |||||||||
Other current liabilities
|
607,853 | 685,982 | 726,773 | |||||||||
Total current liabilities
|
37,175,659 | 43,962,227 | 41,090,488 | |||||||||
Long term debt
|
- | - | - | |||||||||
Long term payable
|
21,073,928 | 24,573,824 | 28,124,436 | |||||||||
Total liabilities
|
58,249,587 | 68,536,050 | 69,214,924 | |||||||||
Stockholders' equity:
|
||||||||||||
Common stock, US$1.00 par value
|
||||||||||||
800,000,000 shares authorized
|
||||||||||||
155,097,355 shares issued and outstanding
|
155,097,355 | 155,097,355 | 155,097,355 | |||||||||
Accumulated other comprehensive income
|
443,988,809 | 443,442,989 | 388,404,930 | |||||||||
Retained earnings
|
1,822,694,617 | 1,683,759,531 | 1,547,266,038 | |||||||||
Total stockholders' equity
|
2,421,780,781 | 2,282,299,875 | 2,090,768,323 | |||||||||
Total liabilities & stockholders' equity
|
2,480,030,368 | 2,350,835,926 | 2,159,983,247 |
Year Ended December 31,
|
||||||||||||
2014
|
2013
$
|
2012
|
||||||||||
Net sales
|
1,012,135,672 | 1,011,323,630 | 993,102,745 | |||||||||
Cost of goods sold
|
868,280,442 | 867,845,745 | 859,918,076 | |||||||||
Gross profit
|
143,855,230 | 143,477,886 | 133,184,669 | |||||||||
Operating expenses:
|
||||||||||||
Sales and marketing
|
1,792,470 | 2,009,990 | 1,944,354 | |||||||||
General and administrative
|
4,147,497 | 4,725,345 | 4,598,557 | |||||||||
Total operating expenses
|
5,939,968 | 6,735,335 | 6,542,911 | |||||||||
Operating profit
|
137,915,263 | 136,742,550 | 126,641,758 | |||||||||
Interest expense
|
666,613 | 937,163 | 1,110,340 | |||||||||
Other income (expense) )
|
1,686,436 | 688,106 | 885,804 | |||||||||
Income before income tax expense
|
138,935,086 | 136,493,493 | 126,417,222 | |||||||||
Income tax expense
|
||||||||||||
Net income
|
138,935,086 | 136,493,493 | 126,417,222 | |||||||||
Basic earnings per share
|
0.90 | 0.88 | 0.82 | |||||||||
Weighted average number of shares
|
155,097,355 | 155,097,355 | 155,097,355 |
Balance sheet
|
|||
$
|
|||
December 31,2014
|
December 31,2013
|
December 31,2012
|
|
Current assets
|
|||
Cash and cash equivalent
|
1,482,866.49
|
1,627,458.65
|
1,695,472.15
|
Accounts receivable
|
911,732.31
|
793,337.21
|
789,059.46
|
Inventories
|
1,327,592.45
|
1,398,435.26
|
1,472,710.25
|
Prepayments
|
3,002,941.66
|
2,349,882.73
|
2,495,425.98
|
Deferred income tax assets
|
|||
other
|
|||
Total Current Assets
|
6,725,132.91
|
6,169,113.85
|
6,452,667.84
|
Non-current assets
|
|||
Long-term investments
|
|||
Property, plant, and equipment
|
10,849,479.63
|
9,634,761.91
|
7,942,054.39
|
Construction in progress
|
30,993,174.95
|
25,232,914.03
|
17,981,355.34
|
Intangible assets
|
2,405,809,200.85
|
2,335,606,045.70
|
2,197,557,811.15
|
Deferred income tax assets
|
|||
Total Assets
|
2,454,376,988.34
|
2,376,642,835.48
|
2,229,933,888.72
|
Current Liabilities
|
|||
Accounts payable
|
18,415.46
|
-
|
-
|
Accrued employee compensation and benefits
|
63,072.13
|
45,707.16
|
42,626.82
|
Current maturities of long-term debt
|
|||
Other current liabilities
|
23,940.10
|
12,687.10
|
14,434.01
|
Long-term Liabilities
|
|||
long-term debt
|
|||
Obligations under capital leases
|
|||
Deferred income tax liabilities
|
|||
Other non-current liabilities
|
|||
Total Liabilities
|
105,427.68
|
58,394.27
|
57,060.84
|
Stockholder’s equity
|
|||
Paid in on capital stock Common
|
2,758,620.69
|
2,768,620.12
|
2,685,546.10
|
Additional paid-in capital
|
263,135,806.50
|
264,089,619.31
|
256,165,460.19
|
Other comprehensive income
|
|||
Retained earnings
|
2,188,377,133.46
|
2,109,726,201.78
|
1,971,025,821.60
|
Total Equity & Liabilities
|
2,454,376,988.34
|
2,376,642,835.48
|
2,229,933,888.72
|
Statements of Income
|
|||
|
|||
2014
|
2013
|
2012
|
|
$
|
|||
Sales revenue
|
190,536,897.98
|
179,885,898.08
|
173,021,275.25
|
Cost of goods sold
|
41,432,360.78
|
35,276,635.02
|
34,623,710.61
|
Gross profit
|
149,104,537.21
|
144,609,263.06
|
138,397,564.64
|
General and administrative expense
|
9,282,831.93
|
9,295,490.70
|
9,103,371.56
|
Income from operations
|
139,821,705.27
|
135,313,772.36
|
129,294,193.08
|
Interest revenue
|
254,110.75
|
184,198.02
|
116,882.62
|
Other income (loss), net
|
84,916,192.13
|
76,520,518.96
|
66,522,575.21
|
Income from continuing operations before income tax
|
224,992,008.16
|
212,018,489.34
|
195,933,650.90
|
Income tax
|
|||
Income from continuing operations
|
224,992,008.16
|
212,018,489.34
|
195,933,650.90
|
Discontinued operations
|
|||
Net income
|
224,992,008.16
|
212,018,489.34
|
195,933,650.90
|
Our Existing Balance Sheet
|
Our Pro-Forma Balance Sheet
|
|
Total Equity & Liabilities
|
$2,480,030,368 |
$2,454,376,988
|
Our Existing Statement of Operations
|
Our Pro-Forma Statement of Operation
|
|
Net Income
|
$138,935,086 |
$224,992,008
|
Our Existing Net Income Per Share
|
$0.90 |
$1.45
|
Appraised Value of Lease Management Rights
Being Swapped In
|
Appraised Value of Lease Management Rights
Being Swapped Out
|
RMB 14,721,146,500
|
RMB 14,429,859,500
|
USD$ 2,308,149,500
|
USD$ 2,262,478,200
|
Crops being swapped in from Gansu YaSheng Agro-Industrial and Commerce Co., Ltd.
|
Crops being swapped out from
YaSheng Group
|
Broccoli
|
Wheat
|
Moso bamboo
|
Dried corn
|
Bamboo shoot
|
Onion
|
Tangerine
|
Fruits
|
Waxberry
|
Pear
|
Apricot
|
|
Liquorice
|
|
Barley
|
|
Melon seed
|
|
Cotton
|
|
Hop
|
|
Malt
|
|
Potato
|
|
Medicago
|
|
Cumin
|
|
Wolfberry
|
|
Beet
|
|
Pea
|
|
Soybean
|
|
Flaxseed
|
|
Hybrid corn
|
|
Egg
|
Plantation/crop
|
Expiration Date of Management Lease
|
Amount of up-front lease payments made by GY to the lessors
|
1. Tangerine Plantation (9,200 MU)
|
Dec. 31, 2039
|
RMB 184,000,000; USD $29,629,629
|
2. Tangerine Plantation (16,000 MU)
|
Dec. 31, 2039
|
RMB 320,000,000; USD $51,297,790
|
3. Broccoli Plantation (24,000 MU)
|
Dec. 31, 2039
|
RMB 240,000,000; USD $58,647,342
|
4. Moso Bamboo Plantation (13,000 MU)
|
Dec. 31, 2039
|
RMB 10,200,000; USD $1,643,512
|
5. Waxberry Plantation (9057 MU)
|
Dec. 31, 2039
|
RMB 180,000,000; USD $28,985,507
|
Plantation Crop
|
Party From Whom We Are Receiving Lease Management Rights
|
Expiration of Term of Lease Management Rights
|
1. Tangerine Plantation (9,200 MU)
|
Linhai City Tengfei Fruit & Vegetable Professional Cooperative
|
12/31/2039
|
2. Tangerine Plantation (16,000 MU)
|
Linhai City Sitian Fruit & Vegetable Professional Cooperative
|
12/31/2039
|
3. Broccoli Plantation (24,000 MU)
|
Linhai City Sitian Fruit & Vegetable Professional Cooperative
|
12/31/2039
|
4. Moso Bamboo Plantation (18,000 MU)
|
Taizhou City Huang Yan Hou Ao Asparagus and Bamboo Professional Cooperative
|
12/31/2039
|
5. Waxberry Plantation (9,057 MU)
|
Xianju County Xiajing Golden Plum Farming and Breeding Professional Cooperative
|
12/31/2039
|
|
·
|
We are entitled to the profits from managing the property and from the crops grown on the property.
|
|
·
|
We may build production and living facilities on the land for purposes of producing the crops and housing any necessary farmhands on the property.
|
|
·
|
We may not use the land for non-agricultural purposes.
|
|
·
|
We may not re-lease the land to a third party or transfer the management rights to a third party.
|
|
·
|
At expiration of the lease management term, we are required to clean up all ground facilities and installations on the land.
|
Common Stock Beneficially Owned
|
||||||||||||||||
Name and Address of Beneficial Owner
|
Total Outstanding
|
Shares Underlying Convertible Securities (1)
|
Total
|
Percent (2)
|
||||||||||||
Directors and Named Executive Officers(3)
|
||||||||||||||||
Ye Dong
(2)
|
130,842,733
|
0
|
130,842,733
|
83.25
|
%
|
|||||||||||
Mei Ping Wu (4)
|
10,870,888
|
0
|
10,870,888
|
6.92
|
%
|
|||||||||||
Fu Wang Deng
|
n/a
|
0
|
n/a
|
n/a
|
%
|
|||||||||||
Hai Yun Zhuang
|
n/a
|
0
|
n/a
|
n/a
|
%
|
|||||||||||
Wang Xitian
|
n/a
|
0
|
n/a
|
n/a
|
%
|
|||||||||||
Wei Lefu
|
n/a
|
0
|
n/a
|
n/a
|
%
|
|||||||||||
He Shurong
|
n/a
|
0
|
n/a
|
n/a
|
%
|
|||||||||||
Yang Shengniu
|
n/a
|
0
|
n/a
|
n/a
|
%
|
|||||||||||
Directors and executive officers as a group persons
|
141,713,621
|
0
|
141,713,621
|
83.25
|
%
|
|||||||||||
5% or more Beneficial Owners
|
||||||||||||||||
Gansu Yasheng Salt Chemical Industrial Group, Ltd (3)
|
130,842,733
|
0
|
130,842,733
|
83.25
|
%
|
(1)
|
Based on
157,165,783
shares of our common stock outstanding as of Oct. 2, 2015.
|
(2)
|
Unless otherwise indicated, the business address of each of our directors and executive offices is Yasheng Mansion, 105 Qin’an Road, Lanzhou, Gansu, China.
|
(3)
|
Represents 130,842,733 shares owned by Gansu Yasheng Salt Chemical Industrial Group for which Mr. Dong serves as legal representative and has voting control.
|
(4)
|
The address for this beneficial owner is 805 Veterans Blvd., Suite 228, Redwood City, California 94063.
|
-
|
The Company's Annual Report on Form 10-K for the year ended December 31, 2014
|
-
|
The Company's Quarterly Report on Form 10-Q for the three months ended June 30, 2015
|
/S/ Ye Dong
Ye Dong
Chairman and CEO
|
Swap Agreement, consisting of Agreement of Assets Replacement Attachment to be signed and dated 21 days after mailing of this Information Statement and Attachment #1, Agreement of Assets Withdrawal, and Attachment #2, Agreement on the Transfer of Management Rights.
|
Agreement for the Circulation of Land Contracted Management Right between our wholly-owned subsidiary, Gansu Asia-America Trade Co., Ltd. and:
|
|
·
|
Linhai City Tengfei Fruit & Vegetable Professional Cooperative Tangerine Plantation (9,200 MU)
|
|
·
|
Linhai City Sitian Fruit & Vegetable Professional Cooperative Tangerine Plantation (16,000 MU)
|
|
·
|
Linhai City Sitian Fruit & Vegetable Professional Cooperative Broccoli Plantation (24,000 MU)
|
|
·
|
Taizhou City Huang Yan Hou Ao Asparagus and Bamboo Professional Cooperative Moso Bamboo Plantation (18,000 MU)
|
|
·
|
Xianju County Xiajing Golden Plum Farming and Breeding Professional Cooperative Waxberry Plantation (9,057 MU)
|
Financial Statements of Gansu Yasheng Agro-Industrial and Commerce Co., Ltd. for years ended December 31, 2014, 2013 and 2012.
|
Report by Beijing Northern Yashi Asset Appraisal Co., Ltd., Sept. 18, 2015 (Incoming Assets); and Appraisal Report by Shou Ming Wang, dated Sept 18, 2015 (Outgoing Assets)
|
California Corporate Law Sections 310, 603, 1001
|
Party C:
|
1. Gansu Tiaoshan Farm-Industry-Commerce (Group) CO., Ltd.
2. Gansu Xiaheqing Industrial Co., Ltd.
3. Gansu Hongtai Agro-Tech Development Co., Ltd.
4. Gansu Jinta Yuan Tai Commerce and Trading Co., Ltd.
5. Gansu Jinta County Heng Sheng Agricultural Development Co., Ltd.
6. Gansu Jinta County Yong Sheng Agricultural Development Company
7. Gansu Jinta Xing Sheng Industrial Company
|
Balance Sheet
|
|||
$
|
$
|
$
|
|
December 31, 2014
|
December 31, 2013
|
December 31, 2012
|
|
Current assets
|
|||
Cash and cash equivalent
|
1,482,866.49
|
1,627,458.65
|
1,695,472.15
|
Accounts receivable
|
911,732.31
|
793,337.21
|
789,059.46
|
Inventories
|
1,327,592.45
|
1,398,435.26
|
1,472,710.25
|
Prepayments
|
3,002,941.66
|
2,349,882.73
|
2,495,425.98
|
Deferred income tax assets other
|
|||
Total Current Assets
|
6,725,132.91
|
6,169,113.85
|
6,452,667.84
|
Non-current assets
|
|||
Long-term investments
|
|||
Property, plant, and equipment
|
10,849,479.63
|
9,634,761.91
|
7,942,054.39
|
Construction in progress
|
30,993,174.95
|
25,232,914.03
|
17,981,355.34
|
Intangible assets
|
2,405,809,200.85
|
2,335,606,045.70
|
2,197,557,811.15
|
Deferred income tax assets
|
|||
Total Assets
|
2,454,376,988.34
|
2,376,642,835.48
|
2,229,933,888.72
|
Current Liabilities
|
|||
Accounts payable
|
18,415.46
|
-
|
-
|
Accrued employee compensation and benefits
|
63,072.13
|
45,707.16
|
42,626.82
|
Current maturities of long-term debt
|
|||
Other current liabilities
|
23,940.10
|
12,687.10
|
14,434.01
|
Long-term Liabilities
|
|||
long-term debt
|
|||
Obligations under capital leases
|
|||
Deferred income tax liabilities
|
|||
Total Liabilities
|
105,427.68
|
58,394.27
|
57,060.84
|
Stockholder’s equity
|
|||
Paid in on capital stock Common
|
2,758,620.69
|
2,768,620.12
|
2,685,546.10
|
Additional paid-in capital
|
263,135,806.50
|
264,089,619.31
|
256,165,460.19
|
Other comprehensive income
|
|||
Retained earnings
|
2,188,377,133.46
|
2,109,726,201.78
|
1,971,025,821.60
|
Total stockholders’ equity
|
2,454,271,560.65
|
2,376,584,441.21
|
2,229,876,827.89
|
Total Equity & Liabilities
|
2,454,376,988.34
|
2,376,642,835.48
|
2,229,933,888.72
|
Statements of Income
|
|||
2014
|
2013
|
2012
|
|
Sales revenue
|
190,536,897.98
|
179,885,898.08
|
173,021,275.25
|
Cost of goods sold
|
41,432,360.78
|
35,276,635.02
|
34,623,710.61
|
Gross profit
|
149,104,537.21
|
144,609,263.06
|
138,397,564.64
|
General and administrative expense
|
9,282,831.93
|
9,295,490.70
|
9,103,371.56
|
Income from operations
|
139,821,705.27
|
135,313,772.36
|
129,294,193.08
|
Interest revenue
|
254,110.75
|
184,198.02
|
116,882.62
|
Other income (loss), net
|
84,916,192.13
|
76,520,518.96
|
66,522,575.21
|
Income from continuing operations before income tax
|
224,992,008.16
|
212,018,489.34
|
195,933,650.90
|
Income tax
|
|||
Income from continuing operations
|
224,992,008.16
|
212,018,489.34
|
195,933,650.90
|
Discontinued operations
|
|||
Net income
|
224,992,008.16
|
212,018,489.34
|
195,933,650.90
|
Statements of Cash Flow
|
||
$
|
||
2014
|
2013
|
|
Cash flows from operating activities:
|
||
Net income
|
224,992,008.16
|
212,018,489.34
|
Depreciation, amortization, and other
|
9,009,644.84
|
9,024,313.74
|
(Gains) losses on investments and other, net
|
-84,916,192.13
|
-76,520,518.96
|
Accounts receivable
|
-119,356.62
|
19,817.80
|
Inventories
|
64,759.15
|
117,968.15
|
Accounts payable
|
-247,294.52
|
526,060.45
|
Net cash provided by operating activities
|
148,783,568.87
|
145,186,130.52
|
Cash flows from investing activities:
|
||
Purchases of investments
|
||
Proceeds from sales of investments
|
||
Proceeds from maturities of investments
|
||
Purchase of property,plant and equipment
|
8,590,178.57
|
9,622,549.85
|
|
||
Proceeds from sales of property and equipment
|
||
Other
|
||
Net cash used in investing activities
|
-8,590,178.57
|
-9,622,549.85
|
Cash flows from financing activities:
|
||
Issuances of common stock
|
||
Issuances of debt
|
||
Repayments of debt
|
||
Dividends paid
|
139,821,705.27
|
135,313,772.36
|
Other
|
||
Net cash used in financing activities
|
-139,821,705.27
|
-135,313,772.36
|
Effect of exchange rate changes on cash
|
-516,277.20
|
-317,821.81
|
Net increase (decrease) in cash and cash equivalents
|
-144,592.16
|
-68,013.50
|
Cash and cash equivalents, beginning of period
|
1,627,458.65
|
1,695,472.15
|
Cash and cash equivalents, end of period
|
1,482,866.49
|
1,627,458.65
|
Statement of Stockholders’ Equity
|
||||
$
|
||||
Common Stock
|
Additional paid-in capital
|
Retained Earnings
|
Total
|
|
Balance as of December 31 2012
|
2,685,546.10
|
256,165,460.19
|
1,971,025,821.60
|
2,229,876,827.88
|
Net income
|
76,520,518.96
|
76,520,518.96
|
||
Foreign currency translation
|
83,074.02
|
7,924,159.13
|
62,179,861.23
|
70,187,094.38
|
Balance as of December 31 2013
|
2,768,620.12
|
264,089,619.31
|
2,109,726,201.78
|
2,376,584,441.21
|
Net income
|
84,916,192.13
|
84,916,192.13
|
||
Foreign currency translation
|
-9,999.43
|
-953,812.81
|
-6,265,260.45
|
-7,229,072.69
|
Balance as of December 31 2014
|
2,758,620.69
|
263,135,806.50
|
2,188,377,133.46
|
2,454,271,560.65
|
Types of PPE
|
Depreciation period
|
Residual rate(%)
|
Buildings and improvements
|
30
|
1
|
Machinery and equipment
|
5
|
3
|
Transportation
|
10
|
3
|
Office equipment and others
|
5
|
3
|
December 31st
|
Gross Balance at end of year($)
|
Allowance for doubtful accounts
|
Net Balance at end of year($)
|
2012
|
789,059.46
|
0
|
789,059.46
|
2013
|
793,337.21
|
0
|
793,337.21
|
2014
|
911,732.31
|
0
|
911,732.31
|
$ | |||
December 31,
2014
|
December 31,
2013
|
December 31,
2012
|
|
Chemical fertilizer
|
434,238.26
|
436,976.23
|
481,704.40
|
Agricultural Medicine
|
244,230.66
|
253,389.52
|
270,927.27
|
Biological drugs
|
236,171.58
|
218,602.70
|
261,987.26
|
Farm tools
|
270,661.62
|
346,308.78
|
300,247.37
|
Low value consumable
|
142,290.33
|
143,158.03
|
157,843.95
|
Total for the year
|
1,327,592.45
|
1,398,435.26
|
1,472,710.25
|
December 31,
2014
|
December 31,
2013
|
December 31,
2012
|
|
Buildings and improvements
|
6,902,663.98
|
6,927,684.71
|
4,991,239.08
|
Machinery and equipment
|
2,136,385.45
|
1,532,774.85
|
1,459,740.67
|
Transportation
|
2,580,528.71
|
1,508,276.61
|
1,411,555.24
|
Others
|
137,142.69
|
137,639.81
|
130,324.74
|
Total
|
11,756,720.83
|
10,106,375.98
|
7,992,859.72
|
Accumulated Depreciation
|
907,241.20
|
471,614.07
|
50,805.33
|
Total
|
10,849,479.63
|
9,634,761.91
|
7,942,054.39
|
2014
|
2013
|
|
Revenue
|
||
Bamboo
|
10,423,704.28
|
10,172,447.20
|
Orange
|
90,510,858.03
|
83,997,000.58
|
Red bayberry
|
45,591,139.85
|
42,701,530.71
|
Broccoli
|
44,011,195.82
|
43,014,919.59
|
Total
|
190,536,897.98
|
179,885,898.08
|
Cost
|
||
Bamboo
|
3,135,797.70
|
3,147,645.81
|
Orange
|
17,291,033.68
|
14,445,173.42
|
Red bayberry
|
9,423,635.76
|
6,484,435.82
|
Broccoli
|
11,581,893.64
|
11,199,379.97
|
Total
|
41,432,360.78
|
35,276,635.02
|
2014
|
2013
|
|
Salaries
|
752,800.85
|
750,752.54
|
Social insurance
|
94,736.42
|
92,688.69
|
Entertainment expense
|
172,554.85
|
172,935.04
|
Office expenses
|
28,166.63
|
26,917.20
|
Travel expenses
|
179,630.25
|
183,197.44
|
Communication fee
|
4,741.14
|
4,787.38
|
Depreciation
|
430,464.42
|
412,718.28
|
Amortization
|
7,512,144.90
|
7,540,528.32
|
Traffic expense
|
4,675.91
|
6,308.25
|
Others
|
102,916.56
|
104,657.56
|
Total
|
9,282,831.93
|
9,295,490.70
|
Name of Project
|
Appraised Value
|
Appraised Value
|
RMB 10,000
|
10 Thousands US
|
|
A. The land contracted management right of the moso bamboo plantation (18,000 mu) located at Yutou Village Huangyan District Taizhou City.
|
61,345.94
|
9,618.52
|
B. The land contracted management right of the waxberry plantation (9,057 mu) located at Guangdu Township Xianju County Taizhou City.
|
424,974.24
|
66,632.31
|
C. The land contracted management right of the orange plantation (16,000 mu) located at Chengwai Village Taozhu County Linhai City.
|
453,520.58
|
71,108.14
|
D. The land contracted management right of the broccoli plantation (24,000 mu) located at Taozhu County Linhai City.
|
281,906.77
|
44,200.56
|
E. The land contracted management right of the tangerine plantation (9,200 mu) located at Taozhu County Linhai City.
|
250,367.11
|
39,255.41
|
Total
|
1,472,114.65
|
230,814.95
|
Project
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
Total
|
Moso bamboo
|
3,600
|
4,050
|
4,050
|
4,500
|
4,500
|
4,950
|
4,950
|
5,400
|
5,400
|
Spring bamboo shoot
|
1,260
|
1,440
|
1,440
|
1,620
|
1,620
|
1,800
|
1,800
|
1,980
|
1,980
|
Winter bamboo shoot
|
1,620
|
1,710
|
1,800
|
1,890
|
1,980
|
2,070
|
2,160
|
2,250
|
2,340
|
Revenue
|
6,480
|
7,200
|
7,290
|
8,010
|
8,100
|
8,820
|
8,910
|
9,630
|
9,720
|
Project
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
Total
|
Soil prep fees
|
252.00
|
264.60
|
275.40
|
288.00
|
300.60
|
311.40
|
324.00
|
336.60
|
360.00
|
Bamboo removing fees
|
94.50
|
99.00
|
103.50
|
108.00
|
112.50
|
117.00
|
121.50
|
126.00
|
135.00
|
Bamboo transportation fees
|
189.00
|
198.00
|
207.00
|
216.00
|
225.00
|
234.00
|
243.00
|
252.00
|
270.00
|
Spring bamboo shoot collection costs
|
252.00
|
264.60
|
275.40
|
288.00
|
300.60
|
311.40
|
324.00
|
336.60
|
360.00
|
Winter bamboo shoot collection costs
|
1,260.00
|
1,319.40
|
1,380.60
|
1,440.00
|
1,499.40
|
1,560.60
|
1,620.00
|
1,679.40
|
1,800.00
|
Total costs
|
2,047.50
|
2,145.60
|
2,241.90
|
2,340.00
|
2,438.10
|
2,534.40
|
2,632.50
|
2,730.60
|
2,925.00
|
Project
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
Total
|
Management fees
|
369.77
|
369.95
|
370.13
|
370.31
|
370.49
|
370.67
|
370.85
|
371.03
|
371.63
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
Total
|
4062.73
|
4,684.45
|
4,677.97
|
5,299.69
|
5,291.41
|
5,914.93
|
5,906.65
|
6,528.37
|
6,423.37
|
Project
|
Projection
|
||||||||
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
Total
|
|
Net Cash Flow
|
4062.73
|
4684.45
|
4677.97
|
5299.69
|
5291.41
|
5914.93
|
5906.65
|
6528.37
|
6423.37
|
The number of years of discounting
|
1.00
|
2.00
|
3.00
|
4.00
|
5.00
|
6.00
|
7.00
|
8.00
|
|
Discount rate
|
0.9259
|
0.8573
|
0.7938
|
0.7350
|
0.6806
|
0.6302
|
0.5835
|
0.5403
|
4.9284
|
The Current Value of Net Cash Flow
|
4015.98
|
3713.37
|
3895.27
|
3601.33
|
3727.59
|
3446.53
|
3527.28
|
31656.92
|
4015.98
|
The Total Current Value of Net Cash Flow
|
61,345.94
|
Project
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
Total
|
3-6 years
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
7-10 years
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
11-15 years
|
10238.94
|
5860.8
|
4869.83
|
3510
|
1899.45
|
0
|
0
|
0
|
0
|
>15 years
|
20379.6
|
28832.76
|
33311.52
|
38174.76
|
43379.28
|
48907.8
|
52168.32
|
55428.84
|
57059
|
Revenue from the major business
|
30618.54
|
34693.56
|
38181.35
|
41684.76
|
45278.73
|
48907.8
|
52168.32
|
55428.84
|
57059
|
Project
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
Total
|
Management fees
|
1181.15
|
1195.51
|
1211.32
|
1228.7
|
1247.82
|
1268.85
|
1291.98
|
1317.43
|
1345.42
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
Total
|
23887.63
|
26841.63
|
30682.19
|
33086.12
|
37115.32
|
39531.13
|
43378.05
|
45393.14
|
46903.93
|
Project
|
Projection
|
||||||||
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
Total
|
|
Net Cash Flow
|
23887.63
|
26841.63
|
30682.19
|
33086.12
|
37115.32
|
39531.13
|
43378.05
|
45393.14
|
46903.93
|
The number of years of discounting
|
1.00
|
2.00
|
3.00
|
4.00
|
5.00
|
6.00
|
7.00
|
8.00
|
|
Discount rate
|
0.9259
|
0.8573
|
0.7938
|
0.7350
|
0.6806
|
0.6302
|
0.5835
|
0.5403
|
4.9284
|
The Current Value of Net Cash Flow
|
22117.55
|
23011.33
|
24355.52
|
24318.3
|
25260.69
|
24912.52
|
25311.09
|
24525.91
|
231161.34
|
The Total Current Value of Net Cash Flow
|
424,974.24
|
Project
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
Total
|
4 years
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
5 years
|
133.63
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
6 years
|
210.82
|
225.5
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
7 years
|
326.02
|
316.22
|
311.81
|
0
|
0
|
0
|
0
|
0
|
0
|
>8years
|
35115.26
|
40238.21
|
42384.38
|
46080
|
49152
|
50688
|
55296
|
55296
|
61440
|
Revenue from the major business
|
35785.73
|
40779.94
|
42696.19
|
46080
|
49152
|
50688
|
55296
|
55296
|
61440
|
Project
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
Total
|
Garden clean-up, fertilization and trimming
|
528
|
544
|
592
|
608
|
656
|
672
|
720
|
736
|
784
|
Pre-germination fertilization
|
704
|
736
|
800
|
832
|
896
|
928
|
992
|
1024
|
1088
|
Flower and fruit cultivation and protection fees
|
1008
|
1024
|
1072
|
1088
|
1136
|
1152
|
1200
|
1216
|
1264
|
Fruit strengthening fertilization and thinning
|
1408
|
1456
|
1584
|
1632
|
1760
|
1808
|
1936
|
1984
|
2112
|
Fruit picking
|
2624.29
|
3987.37
|
2927.74
|
4423.68
|
3194.88
|
4792.32
|
3440.64
|
5160.96
|
4608
|
Packaging
|
176
|
192
|
208
|
224
|
240
|
256
|
272
|
288
|
304
|
Total costs
|
6448.29
|
7939.37
|
7183.74
|
8807.68
|
7882.88
|
9608.32
|
8560.64
|
10408.96
|
10160
|
Project
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
Total
|
Management fees
|
1428.93
|
1433.49
|
1438.5
|
1444.02
|
1450.09
|
1456.76
|
1464.1
|
1472.18
|
1481.07
|
Project
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
Total
|
The net profit
|
27908.52
|
31407.08
|
34073.95
|
35828.3
|
39819.03
|
39622.92
|
45271.26
|
43414.86
|
49798.93
|
Project
|
Projection
|
||||||||
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
Total
|
|
Net Cash Flow
|
27908.52
|
31407.08
|
34073.95
|
35828.3
|
39819.03
|
39622.92
|
45271.26
|
43414.86
|
49798.93
|
The number of years of discounting
|
1.00
|
2.00
|
3.00
|
4.00
|
5.00
|
6.00
|
7.00
|
8.00
|
|
Discount rate
|
0.9259
|
0.8573
|
0.7938
|
0.7350
|
0.6806
|
0.6302
|
0.5835
|
0.5403
|
4.9284
|
The Current Value of Net Cash Flow
|
25840.49
|
26925.29
|
27047.9
|
26333.8
|
27100.83
|
24970.36
|
26415.78
|
23457.05
|
245429.07
|
The Total Current Value of Net Cash Flow
|
453,520.58
|
Project
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
Total
|
Revenue from the major business
|
30,240
|
31,680
|
33,120
|
34,560
|
36,000
|
37,440
|
38,880
|
40,320
|
41,760
|
Project
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
Total
|
Picking
|
2,520
|
2,640
|
2,760
|
2,880
|
3,000
|
3,120
|
3,240
|
3,360
|
3,600
|
Watering
|
504
|
528
|
552
|
576
|
600
|
624
|
648
|
672
|
720
|
Seeding cultivation and planting
|
2,520
|
2,640
|
2,760
|
2,880
|
3,000
|
3,120
|
3,240
|
3,360
|
3,600
|
Fertilization
|
2160
|
2280
|
2400
|
2520
|
2640
|
2760
|
2880
|
2880
|
3000
|
Total costs
|
7,704
|
8,088
|
8,472
|
8,856
|
9,240
|
9,624
|
10,008
|
10,272
|
10,920
|
Project
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
Total
|
Management fees
|
1,729.17
|
1,729.17
|
1,729.17
|
1,729.17
|
1,729.17
|
1,729.17
|
1,729.17
|
1,729.17
|
1,729.17
|
Project
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
Total
|
The net profit
|
20,806.83
|
21,862.83
|
22,918.83
|
23,974.83
|
25,030.83
|
26,086.83
|
27,142.83
|
28,318.83
|
29,110.83
|
Project
|
Projection
|
||||||||
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
Total
|
|
Net Cash Flow
|
20,806.83
|
21,862.83
|
22,918.83
|
23,974.83
|
25,030.83
|
26,086.83
|
27,142.83
|
28,318.83
|
29,110.83
|
The number of years of discounting
|
1.00
|
2.00
|
3.00
|
4.00
|
5.00
|
6.00
|
7.00
|
8.00
|
|
Discount rate
|
0.9259
|
0.8573
|
0.7938
|
0.7350
|
0.6806
|
0.6302
|
0.5835
|
0.5403
|
4.9284
|
The Current Value of Net Cash Flow
|
19265.05
|
18743.01
|
18192.97
|
17621.5
|
17035.99
|
16439.92
|
15837.84
|
15300.67
|
143469.83
|
The Total Current Value of Net Cash Flow
|
281,906.77
|
Project
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
Total
|
4 years
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
5 years
|
77.22
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
6 years
|
126.9
|
130.68
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
7 years
|
198.05
|
186.12
|
181.76
|
0
|
0
|
0
|
0
|
0
|
0
|
>8years
|
20902.14
|
23567.28
|
24510.8
|
26496
|
27793.2
|
28704
|
30718.8
|
30912
|
33037.2
|
Revenue from the major business
|
21304.31
|
23884.08
|
24692.57
|
26496
|
27793.2
|
28704
|
30718.8
|
30912
|
33037.2
|
Project
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
Total
|
Garden clean-up, fertilization and trimming
|
303.6
|
312.8
|
340.4
|
349.6
|
377.2
|
386.4
|
414
|
423.2
|
450.8
|
Pre-germination fertilization
|
404.8
|
423.2
|
460
|
478.4
|
515.2
|
533.6
|
570.4
|
588.8
|
625.6
|
Flower and fruit cultivation and protection fees
|
579.6
|
588.8
|
616.4
|
625.6
|
653.2
|
662.4
|
690
|
699.2
|
726.8
|
Fruit strengthening fertilization and thinning
|
809.6
|
837.2
|
910.8
|
938.4
|
1012
|
1039.6
|
1113.2
|
1140.8
|
1214.4
|
Fruit picking
|
1249.85
|
1910.73
|
1394.4
|
2119.68
|
1521.31
|
2296.32
|
1638.34
|
2472.96
|
2202.48
|
Packaging
|
101.2
|
110.4
|
119.6
|
128.8
|
138
|
147.2
|
156.4
|
165.6
|
174.8
|
Total costs
|
3448.65
|
4183.13
|
3841.6
|
4640.48
|
4216.91
|
5065.52
|
4582.34
|
5490.56
|
5394.88
|
Project
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
Total
|
Management fees
|
1078.45
|
1082.54
|
1087.05
|
1092
|
1097.45
|
1103.44
|
1110.04
|
1117.29
|
1125.27
|
Project
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
Total
|
The net profit
|
16777.21
|
18618.41
|
19763.92
|
20763.52
|
22478.84
|
22535.04
|
25026.42
|
24304.15
|
26517.05
|
Project
|
Projection
|
||||||||
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
Total
|
|
Net Cash Flow
|
16777.21
|
18618.41
|
19763.92
|
20763.52
|
22478.84
|
22535.04
|
25026.42
|
24304.15
|
26517.05
|
The number of years of discounting
|
1.00
|
2.00
|
3.00
|
4.00
|
5.00
|
6.00
|
7.00
|
8.00
|
|
Discount rate
|
0.9259
|
0.8573
|
0.7938
|
0.7350
|
0.6806
|
0.6302
|
0.5835
|
0.5403
|
4.9284
|
The Current Value of Net Cash Flow
|
15534.02
|
15961.57
|
15688.6
|
15261.19
|
15299.1
|
14201.58
|
14602.92
|
13131.53
|
130686.62
|
The Total Current Value of Net Cash Flow
|
250,367.11
|
Name of Project
|
Appraised Value
|
A. The land contracted management right of the moso bamboo plantation (18,000 mu) located at Yutou Village Huangyan District Taizhou City.
|
61,345.94
|
B. The land contracted management right of the waxberry plantation (9,057 mu) located at Guangdu Township Xianju County Taizhou City.
|
424,974.24
|
C. The land contracted management right of the orange plantation (16,000 mu) located at Chengwai Village Taozhu County Linhai City.
|
453,520.58
|
D. The land contracted management right of the broccoli plantation (24,000 mu) located at Taozhu County Linhai City.
|
281,906.77
|
E. The land contracted management right of the tangerine plantation (9,200 mu) located at Taozhu County Linhai City.
|
250,367.11
|
Total
|
1,472,114.6 5
|
COVER LETTER
|
Page 3
|
CERTIFICATE OF VALUES
|
Page 5
|
CERTIFICATION
|
Page 7
|
DEFINITION OF VALUES
|
Page 9
|
STATEMENT OF CONDITIONS
|
Page 12
|
APPROACHES TO VALUE/ DEPRECIATION
|
Page 14
|
APPRAISER QUALIFICATIONS
|
Page 16
|
APPRAISAL REPORT DETAILED LISTING
|
Page 17
|
Subject
|
Appraisal Value
|
Appraisal Value
|
|
10 Thousands RMB
|
10 Thousands US
|
||
Current Assets
|
1
|
288,428.24
|
45,223.07
|
Long Term Investments
|
2
|
130.56
|
20.47
|
Fixed Assets
|
3
|
141,335.94
|
22,160.26
|
Construction in Progress
|
4
|
4,328.62
|
678.69
|
Constructions
|
5
|
55,733.81
|
8,738.58
|
Equipment
|
6
|
81,273.57
|
12,743.00
|
Intangible Assets
|
7
|
729,614.96
|
114,397.37
|
Right to the use of land
|
8
|
729,614.96
|
114,397.37
|
Other Assets
|
9
|
319,701.59
|
50,126.47
|
Total Assets
|
10
|
1,479,211.29
|
231,927.64
|
Current Liabilities
|
11
|
34,402.45
|
5,394.01
|
Non- Current Liabilities
|
12
|
1,822.90
|
285.81
|
Total Liabilities
|
13
|
36,225.34
|
5,679.82
|
Net Assets
|
14
|
14,429,859,500
|
2,262,478,200
|
|
·
|
The history and character of the business.
|
|
·
|
The character, extent, condition and utility of the assets considering installation costs necessary to reflect the value consideration of the property in place fort he purpose of continued use.
|
|
·
|
The recognition of current economic conditions as of the appraisal date and the economic outlook for this business.
|
|
·
|
The influence of modern and changing technology and innovation applicable to this business.
|
|
·
|
Relevant interest rate, exchange rate, tax base, and tax rate, fees charged by policy have no significant change after effective date.
|
1994-1999
|
Asset Management Department
JinChuan Co.
|
1999-Present
|
Chief Appraiser
JinChang NieDu United Assets Appraisal Co.,
|
1990-1994
|
LanZhou University of Finance and Economics
B.S. Agriculture Engineering Technology
B.S. Agriculture Economics
|