California
|
33-0788293
|
|
(State or Other Jurisdiction of Incorporation or Organization)
|
(I.R.S. Employer Identification No.)
|
805 Veterans Blvd., Suite 228, Redwood City, CA
|
94063
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
o
|
Accelerated filer
|
o
|
||
Non-accelerated filer
|
o
|
(Do not check if smaller reporting company)
|
Smaller reporting company
|
x
|
Page
|
|||
PART I
|
FINANCIAL INFORMATION
|
||
Item 1
|
Condensed Consolidated Financial Statements (unaudited)
|
4
|
|
Auditor Review Report
|
4
|
||
Condensed Consolidated Balance Sheets
|
5
|
||
Condensed Consolidated Statements of Operations
|
6-7
|
||
Condensed Consolidated Statements of Cash Flows
|
8
|
||
Notes to Condensed Consolidated Financial Statements
|
9
|
||
Item 2
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
16
|
|
Item 3
|
Quantitative and Qualitative Disclosures about Market Risk
|
18
|
|
Item 4
|
Controls and Procedures
|
19
|
|
PART II
|
OTHER INFORMATION
|
||
Item 1
|
Legal Proceedings
|
21
|
|
Item 1A
|
Risk Factors
|
21
|
|
Item 2
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
21
|
|
Item 3
|
Defaults Upon Senior Securities
|
21
|
|
Item 4
|
Mine Safety Disclosures
|
21
|
|
Item 5
|
Other Information
|
21
|
|
Item 6
|
Exhibits
|
21
|
|
Signatures
|
22
|
/S/ Gansu Hongxin Certified Public Accountants Co., Ltd.
|
|
Lanzhou, China
|
As of | ||||||||
September 30,
|
December 31,
|
|||||||
2015
|
2014
|
|||||||
(unaudited)
|
(audited)
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
11,472,807 | 11,907,242 | ||||||
Accounts receivable, net
|
123,900,636 | 112,094,824 | ||||||
Inventories
|
384,150,524 | 341,756,253 | ||||||
Prepaid and other current assets
|
3,787,425 | 4,070,937 | ||||||
Total current assets
|
523,311,392 | 469,829,256 | ||||||
Equity and other investments
|
201,945 | 209,941 | ||||||
Property, plant and equipment, net
|
913,205,753 | 905,268,722 | ||||||
Construction in progress
|
7,093,278 | 6,960,289 | ||||||
Intangible assets, net
|
1,118,736,935 | 1,097,762,161 | ||||||
Total assets
|
2,562,549,303 | 2,480,030,369 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable and accrued expenses
|
25,091,757 | 27,402,889 | ||||||
Short term loans
|
4,402,762 | 4,902,762 | ||||||
VAT Tax payable
|
653,570 | 701,760 | ||||||
Current portion of long term debt
|
3,039,246 | 3,560,394 | ||||||
Other current liabilities
|
561,835 | 607,853 | ||||||
Total current liabilities
|
33,749,170 | 37,175,659 | ||||||
Long term payable
|
19,370,734 | 21,073,928 | ||||||
Total liabilities
|
53,119,904 | 58,249,586 | ||||||
Stockholders’ equity:
|
||||||||
Common stock, US$1.00 par value
|
||||||||
800,000,000 shares authorized
|
||||||||
157,165,783 and 155,097,355 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively
|
157,165,783 | 155,097,355 | ||||||
Accumulated other comprehensive income
|
439,877,118 | 443,988,811 | ||||||
Retained earnings
|
1,912,386,498 | 1,822,694,617 | ||||||
Total stockholders’ equity
|
2,509,429,399 | 2,421,780,783 | ||||||
Total liabilities & stockholders' equity
|
2,562,549,303 | 2,480,030,369 |
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
|
09/30/2015
|
12/31/2014
|
|||||||
Buildings and improvements
|
$ | 123,742,066 | $ | 123,603,446 | ||||
Farming facilities
|
113,191,013 | 113,064,212 | ||||||
Machinery and equipment
|
14,890,294 | 14,873,613 | ||||||
Transportation
|
365,984,467 | 359,434,553 | ||||||
Windbreak and Sand-break Trees
|
410,122,674 | 404,432,178 | ||||||
Total
|
1,027,930,514 | 1,015,408,002 | ||||||
Less: Accumulated Depreciation and amortization
|
122,540,849 | 110,139,280 | ||||||
Net
|
$ | 905,389,666 | $ | 905,268,722 |
(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)
|
3.
|
Inventories
|
Inventory Breakdown
|
As of 09/30/2015
|
As of 12/31/2014
|
Raw material
|
68,136,236
|
69,104,388
|
Finished goods
|
186,103,717
|
179,605,652
|
Low value consumable goods
|
47,230,961
|
46,327,219
|
Packaging material
|
30,938,701
|
30,722,573
|
Maintenance material
|
16,216,321
|
15,996,442
|
Total
|
348,625,936
|
341,756,253
|
4.
|
China contribution plan
|
5.
|
Profit appropriation
|
6.
|
Concentration of risks
|
7.
|
Income taxes
|
8.
|
Debt
|
9.
|
Employee benefit plans
|
10.
|
Operating leases
|
11.
|
Segments
|
Subsidiaries
|
Net sales ended 09/30/2015
|
Net sales ended 09/30/2014
|
Cost of sales ended 09/30/2015
|
Cost of sales ended 09/30/2014
|
Gross profit ended 09/30/2015
|
Gross profit ended 09/30/2014
|
||||||||||||||||||
Gansu Tiaoshan Agricultural-Industrial-Commercial Group Co., Ltd
|
343,391,851 | 342,879,997 | 301,229,743 | 301,652,769 | 42,162,108 | 41,227,,228 | ||||||||||||||||||
Gansu Hongtai Agricultural Technology Co., Ltd.
|
91,450,850 | 91,314,535 | 80,311,387 | 80,424,171 | 11,139,463 | 10,890,364 | ||||||||||||||||||
Gansu Xiaheqing Industrial Co., Ltd.
|
16,292,708 | 16,268,423 | 12,966,222 | 12,984,431 | 3,326,486 | 3,283,992 | ||||||||||||||||||
Gansu Jinta Hengsheng Agricultural Development Co., Ltd.
|
81,622,311 | 81,500,646 | 71,073,403 | 71,173,214 | 10,548,908 | 10,327,432 | ||||||||||||||||||
Gansu Jinta Xingsheng Industrial Co., Ltd.
|
90,741,344 | 90,606,086 | 78,654,499 | 78,764,956 | 12,086,845 | 11,841,130 | ||||||||||||||||||
Gansu Jinta Yongsheng Agricultural Development Company.
|
85,196,960 | 85,069,967 | 70,493,639 | 70,592,636 | 14,703,321 | 14,477,331 | ||||||||||||||||||
Gansu Jinta Yuantai Commercial Trading Co., Ltd.
|
940,941 | 939,538 | 763,711 | 764,784 | 177,230 | 174,794 | ||||||||||||||||||
Totals
|
709,636,965 | 708,579,192 | 615,492,604 | 616,356,961 | 94,144,361 | 92,222,231 |
Net sales ended 09/30/2015
|
Net sales ended 09/30/2014
|
Cost of sales ended 09/30/2015
|
Cost of sales ended 09/30/2014
|
Gross profit ended 09/30/2015
|
Gross profit ended 09/30/2014
|
Gross profit % ended 09/30/2015
|
Gross profit % ended 09/30/2014
|
|||||||||||||||||||||||||
Agriculture
|
703,527,332 | 702,478,666 | 609,617,729 | 610,473,835 | 93,909,603 | 92,004,831 | 13.35 | 13.10 | ||||||||||||||||||||||||
Livestock
|
1,348,624 | 1,346,614 | 1,245,425 | 1,247,174 | 103,199 | 99,440 | 7.65 | 7.38 | ||||||||||||||||||||||||
Biotechnology
|
4,761,009 | 4,753,912 | 4,629,450 | 4,635,952 | 131,559 | 117,960 | 2.76 | 2.48 | ||||||||||||||||||||||||
Total
|
709,636,965 | 708,579,192 | 615,492,604 | 616,356,961 | 94,144,361 | 92,222,231 | 13.27 | 13.02 |
Nine Months Ended
September 30, 2015
|
Nine Months Ended
September 30, 2014
|
|||||||||||||||
Dollars
(000's)
|
% of Sales
|
Dollars
(000's)
|
% of Sales
|
|||||||||||||
Net Sales
|
$
|
709,637
|
100
|
%
|
$
|
708,579
|
100
|
%
|
||||||||
Costs of Goods Sold
|
615,493
|
86.7
|
%
|
616,357
|
87.0
|
%
|
||||||||||
Gross profit
|
94,144
|
13.3
|
%
|
92,222
|
13.0
|
%
|
||||||||||
Sales and marketing expenses
|
1,282
|
0.2
|
%
|
1,295
|
0.2
|
%
|
||||||||||
General and administrative expenses
|
3,049
|
0.4
|
%
|
3,085
|
0.4
|
%
|
||||||||||
Interest expense
|
589
|
0.1
|
%
|
150
|
0.0
|
%
|
||||||||||
Other income
|
467
|
0.1
|
%
|
1,818
|
0.3
|
%
|
||||||||||
Net income
|
$
|
89,692
|
12.6
|
%
|
$
|
89,510
|
12.6
|
%
|
Nine months Ended
September 30th
|
||||||||
2015
|
2014
|
|||||||
Net cash provided by operating activities
|
42,730
|
43,251
|
||||||
Net cash used in investing activities
|
-38,405
|
-36,905
|
||||||
Net cash used in financing activities
|
-2,724
|
-4,078
|
||||||
Effect of foreign currency translation on cash and cash equivalents
|
-2,035
|
-102
|
||||||
Cash and cash equivalents at beginning of the period
|
11,907
|
11,338
|
||||||
Cash and cash equivalents at end of period
|
11,473
|
13,502
|
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
|
|||
November 23, 2015
|
By:
|
/s/
Ye Dong
|
|
Ye Dong
|
|||
Chief Executive Officer
|
|||