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Good Morning from Germany, and GLTA
close at .0053
i think this is a long time invest, and i think the Q2 are much better then the Q1
next week, one pr and there rocks
i mean the make a contract to clean the sand from the oil
imo
$$$$$$$$$$$$$$$
let´s party begin
tomorrow is closed
the other dont sleep, look at grbg
what is going today
hope for news
go upppppppppp soon
i think hype coming soon....
this is great
i think so too
millenia is a rocket after NEWS
i think yes, but in the moment is no action in the chart
GLTY
something happened here again ..... grrrrrrrrrrrr
guys is the hearing over....
Hello Germany, Germany 12$ points Hahahahahahahah
i am from germany too
grüß dich
upppps joker is in the house
what is possible today ???
GO GO GO
nice webcast and nice report
the way to 0,04 is free
Morning, whats going on today
i think uppppppp
no nothing r/s
Here ist the Report
Great News, UPPPPPPPPPPPPPPPPPP
15-Apr-2010
Annual Report
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward-Looking Statements:
Some statements contained in "Management's Discussion and Analysis of Financial Condition and Results of Operations" constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include the words "may," "estimate," "intend," "continue," "believe," "expect," or "anticipate" and other similar words. These forward-looking statements generally relate to plans and objectives for future operations and are based upon management's reasonable estimates of future results or trends. Although we believe that the plans and objectives reflected in or suggested by such forward-looking statements are reasonable, such plans or objectives may not be achieved. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties, including: (a) lack of demand for our products and services; (b) competitive products and pricing; (c) limited amount of resources devoted to advertising; (d) lack of demand for our products and services being purchased via the Internet; and (e) other factors that may negatively affect our operating results. Statements made herein are as of the date of the filing of this Form 10-K with the Securities and Exchange Commission and should not be relied upon as of any subsequent date. We expressly disclaim any obligation to update any information or forward-looking statements contained in this Form 10-K, except as may otherwise be required by applicable law.
Overview
We sell information technology products and services and provide systems integration services in mainland China through our wholly-owned foreign entity, Clipper Technology, Ltd. The majority of our sales are concentrated in and around the cities of Shanghai, Ningbo and Hangzhou in China. In the fourth quarter of 2009, we acquired new subsidiary companies in Dalian and Shenzhen, China.
In June 2008, we changed the Company name from NewMarket China, Inc. to China Crescent Enterprises, Inc. In July 2008, Paul K. Danner was appointed President and Chief Executive Officer of the Company. In February 2010, Dr. James Jiang was appointed President and Chief Executive Officer of the Company.
In April 2009, we issued 750 shares of Series B Convertible Preferred Stock, $.001 par value, to The Huali Group in connection with the acquisition by CLPTEC of an additional 25% interest in Clipper-Huali, bringing our total ownership in Clipper-Huali to 76%. In the fourth quarter of 2009, all 750 shares of Series B Convertible Preferred Stock were converted into a total of 81,027,024 shares of the common stock of the Company.
In December 2009, we acquired 100% of Shenzhen Newbao Technology Co., Ltd. ("Newbao"), an Original Design Manufacturer of wireless products, from China Radio Technology Co., Ltd. in exchange for a $300,000 note. Additionally, in December 2009 we acquired 100% of Dalian Aoyuan Electronic Technology Services Co., Ltd. ("DAETS"), a systems integration company, from Aoyuan Electronic Company, Ltd., in exchange for a $200,000 note.
2009 Compared to 2008
Revenue increased 9% from $41,877,584 for the year ended December 31, 2008 to $45,628,397 for the year ended December 31, 2009. This was due to fourth quarter sales in the Dalian and Shenzhen regions. Year over year systems integration sales in the Ningbo and Shanghai regions were essentially even. Cost of sales increased 5% from $39,538,508 for the year ended December 31, 2008 to $41,578,414 for the year ended December 31, 2009. This increase was primarily due to the corresponding increase in sales volume. Cost of sales as a percentage of sales was approximately 91% and 94% for the years ended December 31, 2009 and 2008, respectively. We plan to continue to pursue strategies to reduce the overall cost of sales as a percentage of sales as the Company grows, such as entering into higher margin outsourcing agreements.
General and administrative expenses for the year ended December 31, 2009 were $1,138,739 compared to $1,064,491 for the year ended December 31, 2008, an increase of 7%. The increase is primarily attributable to start-up costs associated with our new Dalian and Shenzhen subsidiaries in the fourth quarter of 2009.
For the year ended December 31, 2009, we recognized net income of $2,182,620 after accounting for the non-controlling interest in a consolidated subsidiary, compared to net income of $638,319 for the year ended December 31, 2008, a 242% increase. The increase in net income is attributable to (i) an increase in overall sales; and (ii) an increase in gross margin. Comprehensive income for the year ended December 31, 2009 was $2,101,432 compared to comprehensive income of $1,131,931 for the year ended December 31, 2007, a 86% increase. Comprehensive income includes foreign currency translation adjustments and gains or losses on investment securities held.
2008 Compared to 2007
Revenue increased 5% from $40,007,006 for the year ended December 31, 2007 to $41,877,584 for the year ended December 31, 2008. This was due to increased sales of computer hardware in the Hangzhou region. Year over year sales in the Ningbo and Shanghai regions were essentially even. Cost of sales increased 3% from $38,211,067 for the year ended December 31, 2007 to $39,538,508 for the year ended December 31, 2008. This increase was primarily due to the corresponding increase in sales volume. Cost of sales as a percentage of sales was approximately 94% and 96% for the years ended December 31, 2008 and 2007, respectively. We plan to continue to pursue strategies to reduce the overall cost of sales as a percentage of sales as the Company grows. Management intends to leverage the increased purchasing volume to improve purchasing contracts and reduce overall cost of sales.
General and administrative expenses for the year ended December 31, 2008 were $1,064,491 compared to $1,085,982 for the year ended December 31, 2007, a decrease of 2%. The decrease is primarily attributable to decreased administrative headcount in the Shanghai region.
For the year ended December 31, 2008, we recognized net income of $638,319 after accounting for the non-controlling in a consolidated subsidiary, compared to net income of $437,824 for the year ended December 31, 2007, a 46% increase. The increase in net income is attributable to (i) an increase in overall sales; (ii) a decrease in general and administrative expenses for the year; and (iii) a decrease in cost of sales as a percentage of sales. Comprehensive income for the year ended December 31, 2008 was $1,131,931 compared to comprehensive income of $909,771 for the year ended December 31, 2007, a 24% increase. Comprehensive income includes foreign currency translation adjustments and gains or losses on investment securities held.
Liquidity and Capital Resources
Cash Flow Activities
Our cash balance at December 31, 2009 increased $1,376,884, from $2,600,498 as of December 31, 2008, to $3,977,382. The increase was the result of cash provided by investing activities of $233,036, cash provided by financing activities of $1,000,000 and the effect of exchange rates on cash of $1,570,970, offset by cash used in operating activities of $1,427,122. Operating activities for the year ended December 31, 2009, exclusive of changes in operating assets and liabilities provided $2,741,254, as well as an increase in accrued expenses of $119,330, offset by an increase in inventory of $792,898, an increase in accounts receivable of $2,054,206 and a decrease in accounts payable of $375,770.
Financing Activities
In recent years, we have funded our working capital requirements principally through borrowings under bank lines of credit, term loans, and issuances of common stock in exchange for debt. To the extent our operations are not sufficient to fund our capital requirements, we may enter into additional revolving loan agreements with a financial institution, or attempt to raise additional capital through the sale of additional common or preferred stock or through the issuance of additional debt. To the extent that we raise additional capital or settle existing liabilities through the sale or issuance of equity or convertible debt securities, the ownership interest of our existing stockholders will be diluted, and the terms may include liquidation or other preferences that adversely affect the rights of our stockholders. Debt financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring debt, making capital expenditures or declaring dividends. The current financing environment in the United States is exceptionally challenging and we can provide no assurances that we could raise capital either for operations or to finance an acquisition.
Critical Accounting Policies and Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires our management to make assumptions, estimates and judgments that affect the amounts reported in the financial statements, including the notes thereto, and related disclosures of commitments and contingencies, if any. We consider our critical accounting policies to be those that require the more significant judgments and estimates in the preparation of financial statements, including the following:
Principles of Consolidation
The consolidated financial statements include the accounts of the Company, our wholly-owned subsidiaries CLPTEC, Newbao and DAETS and our majority-owned subsidiary Clipper Huali. All material intercompany accounts, transactions and profits have been eliminated in consolidation.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Fair Value of Financial Instruments
The Company's financial instruments consist of cash and cash equivalents, trade receivables, prepaid expenses, payables and accrued expenses, Fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. We consider the carrying values of our financial instruments in the consolidated financial statements to approximate fair value, due to their short-term nature.
Accounts Receivable
Receivables were carried at their estimated collectible amounts. Accounts were periodically evaluated for collectability based on past credit history with customers and their current financial condition and were written off when deemed to be uncollectible. An allowance for doubtful accounts was recorded when management determined the collection was unlikely.
Property and Equipment
Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is provided for using straight-line methods over the estimated useful lives of the respective assets, usually three to seven years.
Stock-Based Compensation
We recognize the cost of stock-based compensation plans and awards in operations on a straight-line basis over the vesting period (if any) of the awards. We measure and recognize compensation expense for all stock-based payment awards made to employees and directors. The compensation expense for our stock-based payments is based on an estimated fair value at the time of the grant. We estimate the fair value of stock based payment awards on the date of the grant using an option pricing model. These option pricing models involve a number of assumptions, including the expected lives of stock options, the volatility of the market price of our common stock and interest rates. We are using the Black-Scholes option pricing model. Stock based compensation expense recognized during the period is based on the value of the portion of stock-based payment awards that are ultimately expected to vest. Changes in our assumptions can materially affect the estimate of the fair value of stock-based payments and the related amount recognized in our consolidated financial statements.
Valuation of Long-Lived Assets
We periodically evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If the estimated future cash flows (undiscounted and without interest charges) from the use of an asset were less than the carrying value, a write-down would be recorded to reduce the related asset to its estimated fair value. We do not believe that there has been any impairment to long-lived assets as of December 31, 2009.
Statement of Cash Flows
In accordance with Accounting Standards Codification ("ASC") 230-10, Statement of Cash Flows, cash flows from our operations are based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet.
Translation Adjustment
The Chinese Renminbi ("RMB"), the national currency of the China, is the primary currency of the economic environment in which our operations are conducted. We use the United States dollar ("U.S. dollars") for financial reporting purposes.
In accordance with ASC 830-10, Foreign Currency Matters, our results of operations and cash flows are translated at the average exchange rates during the period, assets and liabilities are translated at the exchange rates at the balance sheet dates, and equity is translated at the historical exchange rates. As a result, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets.
Comprehensive Income
Comprehensive income includes accumulated foreign currency translation gains and losses and any accumulated gains or losses attributable to securities held for investment purposes. We have reported the components of comprehensive income on our statements of stockholders' equity.
Effects of Inflation
Inflation and changing prices have not had a material effect on our business and we do not expect that inflation or changing prices will materially affect our business in the foreseeable future. However, our management will closely monitor the price change and continually maintain effective cost control in operations
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements as defined in Regulation S-K Item 303(a)(4).
Recent Accounting Pronouncements
(See "Recently Issued Accounting Pronouncements" in Note 2 of Notes to the Consolidated Financial Statements.)
i think so too
is there anybody
do you think the news comes tomorrow, or they wait ????
and the course change in pink sheet
I think that was it, or what you mean.
it goes up again??
do you realy think 0,30 -0,50
guys hold strong, the mm´s play with us
and no sl limit,
OK then, let us all hold on until we are at 0.05, or more
I wish you all good luck
where is the user who said on Friday his large family would buy as many shares
the exploding price of
HOLD STRONG, SELL NO SHARES