x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Nevada
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333-144228
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20-5548974
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(State or other jurisdiction of
incorporation or organization)
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(Commission File No.)
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(IRS Employee Identification No.)
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Large accelerated filer
¨
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Accelerated filer
¨
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Non-accelerated filer
¨
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Smaller reporting company
Q
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PART I— FINANCIAL INFORMATION
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Item 1.
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Financial Statements
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3 |
Item 2.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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4 |
Item 3.
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Quantitative and Qualitative Disclosures About Market Risk
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6 |
Item 4.
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Control and Procedures
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6 |
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PART II— OTHER INFORMATION
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Item 1
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Legal Proceedings
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10 |
Item 2.
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Unregistered Sales of Equity Securities and Use of Proceeds
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10 |
Item 3.
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Defaults Upon Senior Securities
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10 |
Item 4.
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(Removed and Reserved)
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10 |
Item 5.
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Other Information
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10 |
Item 6.
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Exhibits
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10 |
SIGNATURES
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11 |
FINANCIAL STATEMENTS
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Page #
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Condensed Consolidated Balance Sheets as of September 30, 2011 (Unaudited) and December 31, 2010
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F-1
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Condensed Consolidated Statements of Operations for the nine months ended September 30, 2011 and 2010 (Unaudited)
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F-2
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Consolidated Statements of Stockholders’ Equity as of for the nine months ended
September 30, 2011
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F-4
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Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2011 and 2010 (Unaudited)
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F-5
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Notes to the Financial Statements (Unaudited)
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F-6 – F-16
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September 30,
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December 31,
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|||||||
2011
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2010
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Assets
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Current Assets
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Cash and cash equivalents
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23,528 | 655,640 | ||||||
Accounts receivable, net
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8,880,116 | 198,239 | ||||||
Prepaid construction costs
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19,128,977 | 18,718,399 | ||||||
Notes receivable for stock subscription
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510,000 | 510,000 | ||||||
Due from a shareholder
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939,772 | - | ||||||
Due from related parties
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391,186 | - | ||||||
Other current assets
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142,900 | 38,165 | ||||||
30,016,479 | 20,120,443 | |||||||
Property, plant and equipment
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4,952,690 | 4,857,036 | ||||||
Deposits for acquisition of a land use right
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1,701,733 | 1,668,740 | ||||||
Total Assets
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36,670,902 | 26,646,219 | ||||||
Liabilities and Stockholders' Equity
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Current Liabilities
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Accounts payable
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15,733,875 | 10,458,783 | ||||||
Accounts payable- related parties
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- | 792,457 | ||||||
Accrued expenses
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1,655,521 | 382,751 | ||||||
Income tax payable
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1,359,308 | 3,757,791 | ||||||
Due to related parties
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180,994 | 178,055 | ||||||
Due to a shareholder
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- | 107,922 | ||||||
Total liabilities
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18,929,698 | 15,677,759 | ||||||
Stockholders' Equity
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Common stock, $0.001 par value, 394,500,000 shares authorized,
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33,760,148 and 32,010,148 fully-paid shares issued and
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outstanding as of September 30, 2011 and December 31, 2010
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respectively
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33,760 | 32,010 | ||||||
0 and 1,100,000 unpaid shares issued and outstanding as of
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September 30, 2011 and December 31, 2010 respectively
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- | 1,100 | ||||||
Preferred stock, $0.001 par value, 5,500,000 shares
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authorized, 0 shares issued and outstanding
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- | - | ||||||
Additional paid-in capital
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1,030,240 | 926,890 | ||||||
Accumulated other comprehensive income
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493,616 | 261,489 | ||||||
Retained earnings
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16,183,588 | 9,746,971 | ||||||
Total stockholders' equity
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17,741,204 | 10,968,460 | ||||||
Total Liabilities and Stockholders' Equity
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36,670,902 | 26,646,219 |
For the Nine Months Ended
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Sep 30, 2011
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Sep 30, 2010
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Sales
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$ | 55,191,711 | $ | 57,340,164 | ||||
Cost of sales
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(45,943,489 | ) | (49,556,124 | ) | ||||
Gross profit
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9,248,222 | 7,784,040 | ||||||
Operating expenses:
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Selling, general and administrative
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(542,905 | ) | (203,083 | ) | ||||
Income from operations
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8,705,317 | 7,580,957 | ||||||
Provision for income taxes
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(2,268,700 | ) | (1,914,681 | ) | ||||
Net Income
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6,436,617 | 5,666,276 | ||||||
Other comprehensive income
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Foreign currency translation adjustment
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232,127 | 117,658 | ||||||
Comprehensive income
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$ | 6,668,744 | $ | 5,783,934 | ||||
Net Income Per Share-
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Basic and Diluted
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$ | 0.19 | $ | 0.18 | ||||
Weighted Average Shares Outstanding:
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Basic and Diluted
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33,326,876 | 31,100,770 |
For the Three Months Ended
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Sep 30, 2011
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Sep 30, 2010
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Sales
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$ | 21,550,395 | $ | 24,812,027 | ||||
Cost of sales
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(17,813,221 | ) | (21,488,984 | ) | ||||
Gross profit
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3,737,174 | 3,323,043 | ||||||
Operating expenses:
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Selling, general and administrative
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(309,626 | ) | (38,765 | ) | ||||
Income from operations
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3,427,548 | 3,284,278 | ||||||
Provision for income taxes
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(910,051 | ) | (822,050 | ) | ||||
Net Income
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2,517,497 | 2,462,228 | ||||||
Other comprehensive income
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Foreign currency translation adjustment
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(92,602 | ) | 82,261 | |||||
Comprehensive income
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$ | 2,424,895 | $ | 2,544,489 | ||||
Net Income Per Share-
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Basic and Diluted
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$ | 0.07 | $ | 0.08 | ||||
Weighted Average Shares Outstanding:
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Basic and Diluted
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33,757,950 | 31,100,770 |
Additional
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Other
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Common Stock
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Paid-in
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Comprehensive
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Retained
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Share
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Amount
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Capital
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Income
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Earnings
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Total
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Balance, December 31, 2010
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33,110,148 | $ | 33,110 | $ | 926,890 | $ | 261,489 | $ | 9,746,971 | $ | 10,968,460 | |||||||||||||
Issuance of common stock for service
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50,000 | 50 | 13,950 | - | - | 14,000 | ||||||||||||||||||
Issuance of common stock
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600,000 | 600 | 89,400 | - | - | 90,000 | ||||||||||||||||||
Net income for the period ended
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September 30, 2011
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- | - | - | - | 6,436,617 | 6,436,617 | ||||||||||||||||||
Foreign currency translation adjustments
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- | - | - | 232,127 | - | 232,127 | ||||||||||||||||||
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Balance, September 30, 2011
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33,760,148 | $ | 33,760 | $ | 1,030,240 | $ | 493,616 | $ | 16,183,588 | $ | 17,741,204 |
For the Nine Months Ended
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September 30,
2011
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September 30,
2010
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Cash flows from operating activities
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Net income
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$ | 6,436,617 | $ | 5,666,276 | ||||
Adjustments to reconcile net income to net cash
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used in operating activities:
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Depreciation expense
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382 | 9,677 | ||||||
Changes in assets and liabilities:
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Accounts receivable
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(8,616,035 | ) | (7,668,693 | ) | ||||
Prepayment
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(39,763 | ) | ||||||
Other current assets
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(101,944 | ) | (59,061 | ) | ||||
Other deposits
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- | (13,695 | ) | |||||
Accounts payable
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4,082,262 | 1,811,105 | ||||||
Accrued expenses
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1,242,243 | 149,217 | ||||||
Decrease in other current liabilities
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- | |||||||
Income tax payable
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(2,469,811 | ) | 2,208,123 | |||||
Net cash provided by (used in)operating activities
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533,951 | 2,102,949 | ||||||
Cash flows from investing activities
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Purchases of property, plant and equipment
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- | (2,697,687 | ) | |||||
Net cash used in investing activities
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- | (2,697,687 | ) | |||||
Cash flows from financing activities
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Advances from/(to) related parties
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(387,229 | ) | (2,254,038 | ) | ||||
Amounts due from/(to) shareholders
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(1,039,438 | ) | 2,795,494 | |||||
Issuance of common stock
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104,000 | - | ||||||
Net cash generated from (used in) financing activities
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(1,322,667 | ) | 541,456 | |||||
Net increase (decrease) in cash and cash equivalents
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(788,716 | ) | (53,282 | ) | ||||
Effect of exchange rate changes on cash and cash equivalent
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156,604 | (2,323 | ) | |||||
Cash and cash equivalents
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Beginning
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655,640 | 80,366 | ||||||
Ending
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$ | 23,528 | $ | 24,761 | ||||
Supplemental disclosure of cash flows
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Cash paid during the period for:
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Interest paid
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- | - | ||||||
Income tax
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$ | 2,268,700 | $ | 1,096,983 |
Name of Company
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Place of
incorporation
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Attributable
interest
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Jianye Greentech Holding Ltd.
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British Virgin Islands
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100 | % | |||
Hong Kong Jianye Greentech Holding Limited
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Hong Kong
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100 | % | |||
Heilongjian Jianye New Clean Fuel Marketing Co. Ltd.
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PRC
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100 | % |
September 30,
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2011
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Six months end RMB : USD exchange rate
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6.4018 | |||
Average Nine months RMB : USD exchange rate
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6.5060 | |||
Average Three months RMB : USD exchange rate
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6.4231 |
Equipment
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3 to 5 years
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·
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Customers:
The Company distributes ethanol and methanol as alternative fuel for automobile use in China. The Company performs ongoing credit evaluations of its customers’ financial condition and generally, requires no collateral. For the nine months ended September 30, 2011, four customers accounted for 98.53% of the Company’s total revenues. Four customers represented 98.60% of accounts receivable in aggregate at September 30, 2011:
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Customer
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Sales for the Nine-Month Period
Ended September 30, 2011
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A
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$ | 19,752,671 | 33.59 | % | ||||
B
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$ | 13,665,794 | 23.24 | % | ||||
C
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$ | 12,697,714 | 21.59 | % | ||||
D
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$ | 11,828,098 | 20.11 | % | ||||
$ | 57,944,277 | 98.53 | % |
Customer
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Accounts Receivable at
September 30, 2011
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Accounts Receivable at
December 31, 2010
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A
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$ | 3,272,642 | 36.69 | % | $ | 119,053 | 76.99 | % | ||||||||
B
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$ | 2,010,372 | 22.54 | % | $ | 26,275 | 16.99 | % | ||||||||
C
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$ | 1,563,217 | 17.52 | % | $ | - | - | |||||||||
D
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$ | 1,949,452 | 21.85 | % | $ | - | - | |||||||||
$ | 8,795,683 | 98.60 | % | $ | 145,328 | 93.98 | % |
Supplier
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Accounts Payable at
September 30, 2011
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Accounts Payable at
December 31, 2010
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A
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$ | 12,810,288 | 81.42 | % | $ | 10,341,098 | 91.91 | % | ||||||||
B
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- | - | 792,457 | 7.04 | % | |||||||||||
C
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1,955,734 | 12.43 | % | 75,184 | 0.67 | % | ||||||||||
D
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21,869 | 0.14 | % | 42,501 | 0.38 | % | ||||||||||
E
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506,108 | 3.22 | % | - | - | |||||||||||
F
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439,876 | 2.79 | % | - | - | |||||||||||
$ | 15,733,875 | 100.00 | % | $ | 11,251,240 | 100.00 | % |
September 30, 2011
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December 31, 2010
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Equipment
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$ | 1,632 | $ | 1,585 | ||||
1,632 | 1,585 | |||||||
Less: Accumulated depreciation
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(720 | ) | (323 | ) | ||||
912 | 1,262 | |||||||
Construction in progress
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4,951,778 | 4,855,774 | ||||||
$ | 4,952,690 | $ | 4,857,036 |
Names of related companies:
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Note:
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September 30, 2011
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December 31, 2010
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Heilongjiang Jianye Real Estates Co., Ltd
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(i)
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$ | 362,850 | $ | - | |||||
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Heilongjiang Jianye Building Mgt Co., Ltd
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(ii)
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28,336 | - | |||||||
$ | 391,186 | $ | - |
(i)
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Heilongjiang Jianye Real Estates Co., Ltd
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(ii)
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Heilongjiang Jianye Building Mgt Co., Ltd
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Nine months Ended ,September 30,
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2011
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2010
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Net income
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$ | 6,436,617 | $ | 5,666,276 | ||||
Weighted-average shares of common stock outstanding
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Basic
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33,326,876 | 31,100,770 | ||||||
Dilutive shares:
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- | - | ||||||
Diluted
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33,326,876 | 31,100,770 | ||||||
Basic and dilutive earnings per share
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$ | 0.19 | $ | 0.18 |
Exhibit
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Description of Exhibit
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31.1
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Chief Executive Officer Certification of Periodic Financial Report Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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31.2
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Chief Financial Officer Certification of Periodic Financial Report Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
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32.1
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Chief Executive Officer Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002
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32.2
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Chief Financial Officer Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002
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101
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The following materials from American Jianye Greentech Holdings, Ltd.’s Quarterly Report on Form 10-Q for the period ended September 30, 2011 are formatted in eXtensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Balance Sheet; (ii) the Condensed Consolidated Statement of Operations;, (iii) the Condensed Consolidated Statements of Cash Flows, and (iv) Notes to Condensed Consolidated Financial Statements. This Exhibit 101 is deemed not filed for purposes of Sections 11 or 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections
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AMERICAN JIANYE GREENTECH HOLDINGS, LTD.
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By:
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/s/
Haipeng Wang
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Name: Haipeng Wang
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Title: President
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Date: November 21, 2011
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(Principal Executive Officer)
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By:
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/s/
Yulin Yang
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Name: Yulin Yang
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Title: Chief Financial Officer
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Date: November 21, 2011
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(Principal Accounting Officer)
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Date: November 21, 2011
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/s/
Haipeng Wang
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Name: Haipeng Wang
Title: President
(Principal Executive Officer)
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Date: November 21, 2011
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/s/
Yulin Yang
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Name: Yulin Yang
Title: Chief Financial Officer
(Principal Accounting Officer)
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Date: November 21, 2011
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/s/
Haipeng Wang
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Name: Haipeng Wang
Title: President
(Principal Executive Officer)
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Date: November 21, 2011
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/s/
Yulin Yang
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Name: Yulin Yang
Name: Chief Financial Officer
(Principal Financial Officer)
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