Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Form 10-Q for CHINA INFRASTRUCTURE CONSTRUCTION CORP
--------------------------------------------------------------------------------
15-Oct-2010
Quarterly Report
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
SPECIAL NOTE OF CAUTION REGARDING FORWARD-LOOKING STATEMENTS
CERTAIN STATEMENTS IN THIS REPORT, INCLUDING STATEMENTS IN THE FOLLOWING DISCUSSION, ARE WHAT ARE KNOWN AS "FORWARD-LOOKING STATEMENTS", WHICH ARE BASICALLY STATEMENTS ABOUT THE FUTURE. FOR THAT REASON, THESE STATEMENTS INVOLVE RISK AND UNCERTAINTY SINCE NO ONE CAN ACCURATELY PREDICT THE FUTURE. WORDS SUCH AS "PLANS", "INTENDS", "WILL", "HOPES", "SEEKS", "ANTICIPATES", "EXPECTS "AND THE LIKE OFTEN IDENTIFY SUCH FORWARD-LOOKING STATEMENTS, BUT ARE NOT THE ONLY INDICATION THAT A STATEMENT IS A FORWARD-LOOKING STATEMENT. SUCH FORWARD-LOOKING STATEMENTS INCLUDE STATEMENTS CONCERNING OUR PLANS AND OBJECTIVES WITH RESPECT TO THE PRESENT AND FUTURE OPERATIONS OF THE COMPANY, AND STATEMENTS WHICH EXPRESS OR IMPLY THAT SUCH PRESENT AND FUTURE OPERATIONS WILL OR MAY PRODUCE REVENUES, INCOME OR PROFITS. NUMEROUS FACTORS AND FUTURE EVENTS COULD CAUSE THE COMPANY TO CHANGE SUCH PLANS AND OBJECTIVES OR FAIL TO SUCCESSFULLY IMPLEMENT SUCH PLANS OR ACHIEVE SUCH OBJECTIVES, OR CAUSE SUCH PRESENT AND FUTURE OPERATIONS TO FAIL TO PRODUCE REVENUES, INCOME OR PROFITS. THEREFORE, THE READER IS ADVISED THAT THE FOLLOWING DISCUSSION SHOULD BE CONSIDERED IN LIGHT OF THE DISCUSSION OF RISKS AND OTHER FACTORS CONTAINED IN THIS REPORT ON FORM 10-K AND IN THE COMPANY'S OTHER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. NO STATEMENTS CONTAINED IN THE FOLLOWING DISCUSSION SHOULD BE CONSTRUED AS A GUARANTEE OR ASSURANCE OF FUTURE PERFORMANCE OR FUTURE RESULTS.
Unless the context otherwise requires, The "Company", "we," "us," and "our," refer to (i) China Infrastructure Construction Corporation; (ii) Beijing Chengzhi Qianmao Concrete Co., Ltd. ("Beijing Concrete"), (iii) Beijing Fortune Capital Management, Ltd. ("BFCM"), (iv) Shaanxi Hongruida Concrete Ltd. ("Hongruida") and (v) Northern Construction Holdings, Ltd. ("NCH").
Overview
China Infrastructure Construction Corporation (the "Company", "China Infrastructure", "CHNC", "We", "Our") was organized in Colorado on February 28, 2003. The Company through its subsidiaries in Hong Kong and the People's Republic of China ("PRC" or "China"), engages in production of ready-mixed concrete for developers and the construction industry in the PRC.
Beijing Concrete currently has four production facilities. One facility is located in the Nanhaizi area, on the west side of the Yizhuang economic development zone in Beijing, one is in Shidu, a suburban area of Beijing, one is in Xi'an West New High-tech Zone, and another one is located at the Tangshan harbor, about two hundred kilometers from Beijing. The plant located in Xi'an was put into operation at the end of March 2010.
--------------------------------------------------------------------------------
Results of Operations
Three months ended August 31, 2010 Compared to Three months ended August 31, 2009
Net Revenue
Net Revenue for the three months ended August 31, 2010 were $21,187,530 as compared to $12,255,728 for the same period last year, an increase of $8,931,802, or approximately 72.88%. The increase in net revenue is mainly attributable to our geographic expansion. We had set up new factories in Xi'an and Shidu in 2010. The sales volume of concrete products increased approximately 125.09% for the three months ended August 31, 2010 as compared to the same period last year. The increase in net revenue is also attributable to technical services we provided to a Tianjin concrete producer from late March 2010. These services generated approximately $1.22 million in net revenue for the three months ended August 31, 2010.
Costs of Goods Sold
Cost of goods sold for the three months ended August 31, 2010 was $15,054,017 as compared to $9,849,045 for the same period last year, an increase of $5,204,972, or approximately 52.85%. The increase in cost of goods sold is mainly because of the increase of the net revenue.
Gross Profit
Gross profit for the three months ended August 31, 2010 was $6,133,513, an increase of $3,726,830 or approximately 154.85%, as compared to $2,406,683 for the same period last year. The increase in gross profit is attributable to the increase of sales due to geographic development of our business, our business expansion into technical service, and vertical integration with one sand and stone vendor.
Gross Profit Margin
Gross profit margin for the three months ended August 31, 2010 was 28.95%, compared to 19.64% for the same period last year. The increase of the gross profit margin is mainly because technical service provided a higher margin and the integration with one sand and stone company lowered the cost of goods sold.
General and administrative Expenses
General and administrative expenses for the three months ended August 31, 2010 were $1,442,310, as compared to $388,940 for the same period last year, an increase of $1,053,370, or approximately 270.83%. The increase of the general and administrative expenses was primarily due to expansion of business and due to increased professional expenses as a public company.
--------------------------------------------------------------------------------
Operating Income
Our operating income for the three months ended August 31, 2010 was $4,691,203, an increase of $2,673,460 or approximately 132.50%, as compared to $2,017,743 for the same period last year. The increased income was due to the increased sales revenue from our business expansion geographically and toward higher margin business.
Income Taxes
The following table reconciles the U.S. statutory rates to the Company's
effective tax rate for the three months ended August 31, 2010 and 2009:
2010 2009
U.S. Statutory rates 34.0 % 34.0 %
Foreign income not recognized in USA (34.0 ) (34.0 )
China income taxes 25.0 0
China income tax exemption 16.2 0
Total provision for income taxes 8.8 % 0 %
USA
The Company and its subsidiaries are subject to income taxes on an entity basis on income arising in, or derived from, the tax jurisdiction in which they operate. As the Group has no income generated in the United States, there was no tax expense or tax liability due to the Internal Revenue Service of the United States as of August 31, 2010 and May 31, 2010.
Hong Kong
As the Group has no income generated in Hong Kong, there was no tax expense or tax liability due to the tax rule of Hong Kong as of August 31, 2010 and May 31, 2010.
People's Republic of China (PRC)
Under the Income Tax Laws of the PRC, the Company's subsidiaries are generally subject to an Enterprise Income Tax (EIT) at a standard rate of 25% on income reported in the statutory financial statements after appropriate tax adjustments.
--------------------------------------------------------------------------------
Beijing Concrete is subject to a special tax exemption approved by the PRC tax department. The exemption of income tax to the Company will last until December 31, 2010, and from year 2011, the Company will be subject to an income tax at a standard rate of 25%.
BFCM has an accumulated operating loss, thus there is no income tax expense for BFCM. The Company has not recorded deferred taxes, as valuation allowances were provided because all significant differences in tax basis and financial statement amounts are permanent differences.
For the three months ended August 31,
2010 2009
Income tax expenses
Current tax $ - $ -
Change in deferred tax assets 39,949 -
Change in valuation allowance (39,949 ) -
Total $ - $ -
Hongruida is subject to a 25% income tax rate. According to Chinese tax law, the income tax will be calculated at the year end. As of August 31, 2010, the Company has accrued tax payable of $406,203 for income tax expenses for Hongruida.
The estimated tax savings due to the tax exemption for the three months ended August 31, 2010 and 2009 amounted to approximately $1,229,473 and $506,516, respectively. The net effect on earnings per share if the income tax had been applied would decrease the basic and diluted earnings per share for the three months ended August 31, 2010 by $0.10 and $0.10, respectively. The net effect on earnings per share if the income tax had been applied would decrease the basic and diluted earnings per share for the three months ended August 31, 2009 by $0.33 and $0.33, respectively.
Net Income Attributable To China Infrastructure Construction Corporation
Net income was $3,976,449 for the three months ended August 31, 2010, an increase of $2,069,646 or approximately 108.54%, as compared to $1,906,803 for the same period last year. The increase was primarily due to the increased sales from our business expansion geographically and toward higher margin business.
Liquidity and Capital Resources
As of August 31, 2010, we had cash and cash equivalents of $903,715. We have historically funded our working capital needs from operations, advance payments from customers, bank borrowings, and capital from shareholders. Our working capital requirements are influenced by the level of our operations, the numerical and dollar volume of our project contracts, the progress of our contract execution, and the timing of accounts receivable collections.
The following table sets forth a summary of our cash flows for the periods indicated:
--------------------------------------------------------------------------------
Three Months Ended
August 31
2010 2009
Unaudited Unaudited
Net cash provided by (used in) operating activities $ 333,664 $ (878,009)
Net cash provided by (used in) investing activities (197,832 ) 557,158
Net cash used in financing activities (339,217 ) (564,419)
Effect of exchange rate change on cash and cash equivalents 4,221 84
Decrease in cash and cash equivalents (199,164) (885,186)
Cash and cash equivalents, beginning balance 1,102,879 921,841
Cash and cash equivalents, ending balance 903,715 36,655
Operating Activities
Net cash provided by operating activities was $333,664 for the three months ended August 31, 2010, an increase of $1,211,673, or 138.00%, as compared to $878,009 net cash used in operating activities for the same period last year. The increase of net cash used in operating activities was due to the increase of trade accounts payable. Accounts receivable increased as well. The trade accounts receivable increased because of the growing sales. We typically had long-term annual and multi-year contracts with our major customers. We entered into varying payment terms with our customers ranging from payment before delivery, payment on delivery or up to 1 year after the project completion. As of August 31, 2010, trade accounts receivable with aging over twelve months old amounted to $1,851,085, only 2.97% of total trade accounts receivable.
Investing Activities
Net cash used in investing activities was $197,832 for the three months ended August 31, 2010, a decrease of $754,990 or approximately 135.51%, as compared to $557,158 net cash provided by investing activities for the same period last year. The decrease of net cash provided by investing activities was primarily due to the increased investments of property, plant, and equipment and less proceeds from related party receivable.
Financing Activities
Net cash used in financing activities was $339,217 for the three months ended August 31, 2010, a decrease of $225,202, or 39.90%, compared to $564,419 for the same period last year. The decrease was primarily due to less payment to related party payable.
Critical Accounting Policies and Estimates
Management's discussion and analysis of its financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. Our financial statements reflect the selection and application of accounting policies which require management to make significant estimates and judgments. See note 3 to our consolidated financial statements, "Summary of Significant Accounting Policies." Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. We believe that the following reflect the more critical accounting policies that currently affect our financial condition and results of operations.
--------------------------------------------------------------------------------
Revenue recognition
The Company receives revenue from sales of concrete products and from provision of concrete pumping service and consulting service. The Company's revenue recognition policies are in compliance with ASC 605 (previously Staff Accounting Bulletin 104). Sales revenue is recognized at the date of shipment to customers or services have been rendered when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist and collectability is reasonably assured. Our sales are non-returnable. Therefore, we do not estimate deductions or allowance for sales returns. Sales are presented net of any discounts, reward, or incentive given to customers. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as unearned revenue.
Our products delivered to customers would be checked on site by customers and, once the products are accepted by customers, they will sign the acceptance notice. There is no warranty issue after the delivery.
Reward or incentive given to our customers is an adjustment of the selling prices of our products, therefore, the consideration is characterized as a reduction of revenue when recognized in our income statement.
The Company recognizes its revenues net of value-added taxes ("VAT"). The Company is subject to VAT which is levied at the rate of 6% on the invoiced value of sales. However, the Company enjoys a free VAT policy according to the national policy, which encourages the development of the cement industry if the manufacturer satisfies the environmental protection requirements. The Company has enjoyed the free VAT policy from January 1, 2006 and has been reviewed every year by the local tax bureau.
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 amounts reported in the combined financial statements and accompanying notes. Management believes that the estimates utilized in preparing its financial statements are reasonable and prudent. Actual results could differ from these estimates.
Inventories
Inventories are stated at the lower of cost, determined on a weighted average basis, and net realizable value. Net realizable value is the estimated selling price, in the ordinary course of business, less estimated costs to complete and dispose.
--------------------------------------------------------------------------------
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements.
Add CHNC.OB to Portfolio Set Alert Email to a Friend
Get SEC Filings for Another Symbol: Symbol Lookup
Quotes & Info for CHNC.OB - All Recent SEC Filings
Sign Up for a Free Trial to the NEW EDGAR Online Pro
Detailed SEC, Financial, Ownership and Offering Data on over 12,000 U.S. Public Companies.
Actionable and easy-to-use with searching, alerting, downloading and more.
Request a Trial????? Sign Up Now
--------------------------------------------------------------------------------
Copyright © 2010 Yahoo! Inc. All rights reserved. Privacy Policy - About Our Ads - Terms of Service - Copyright/IP Policy - Send Feedback - Yahoo! News Network
SEC Filing data and information provided by EDGAR Online, Inc. (1-800-416-6651). All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.
I think Dalian Fushi is the bimetallics,
ENHD is Dalian Chuming( pork,etc).
Confusing, isn't it.
GLTA.
This buyback is gonna cost a bunch, as is the "re-branding".
The filings ain't cheap, either. They either have, or expect to
have, bunches of $$ coming, or this is all smoke and mirrors.
GLTA.
As I'm sure you're already aware, all that stuff
is on hold until they monetize the patents.
90 days for a 10K, 45days for a 10Q(EOM).
10K due 9/30...last year it was published
on 10/23
http://www.otcmarkets.com/stock/SIVC/financials
The next filing(10K) as of 6/30 is due end Sept.
That'll be your update.
Personally, I don't want/need any more propaganda or pep talks.
I wanna see the 10K, plus some closings.
GLTA.
Thx for posting that, very interesting!(EOM).
I believe SIVC still holds shares of ENHD......
=============================================================
Form 10-Q for ENERGROUP HOLDINGS CORP
--------------------------------------------------------------------------------
16-Aug-2010
Quarterly Report
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
Note Regarding Forward-Looking Statements
This quarterly report on Form 10-Q and other reports filed by the Company from time to time with the Securities and Exchange Commission (collectively the "Filings") contain or may contain forward-looking statements and information that are based upon beliefs of, and information currently available to, The Company's management as well as estimates and assumptions made by the Company's management. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. When used in the filings, the words "anticipate", "believe", "estimate", "expect", "future", "intend", "plan", or the negative of these terms and similar expressions as they relate to the Company or the Company 's management identify forward-looking statements. Such statements reflect the current view of the Company with respect to future events and are subject to risks, uncertainties, assumptions, and other factors (including the risks contained in the section of this report entitled "Risk Factors") relating to the Company's industry, the Company's operations and results of operations, and any businesses that the Company may acquire. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned.
Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, levels of activity, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results. Readers are urged to carefully review and consider the various disclosures made throughout the entirety of this quarterly report, which attempt to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations, and prospects.
In this Form 10-Q, references to "we", "our", "us", "our company", "Energroup" or the "Company" refer to Energroup Holdings Corporation, a Nevada corporation.
OVERVIEW
Headquartered in the City of Dalian, Liaoning Province of the People's Republic of China (the "PRC" or "China"), we are a meat processing company primarily involved in the slaughtering, processing, packaging and distribution of pork and pork products. We also process and sell seafood, such as minced fillet products, which accounted for approximately 5.7% of our revenue in the first six months of 2010.
We are the first pork producer in China to receive "Green Food" certification from China's Ministry of Agriculture. Green Food is an innovative certification program unique to China that is awarded to food processors who produce using environmentally sustainable methods and meet certain high technical standards of quality control, safety, and product quality and generate low levels of pollution. The Green Food certification is based on standards defined by the Codex Alimentarius Commission ("CAC"), a joint body of the United Nations Food and Agriculture Organization and the World Health Organization. We also received ISO 9001:2000 certification that covers our production, research and development and sales activities.
Currently we have a wholesale and retail distribution network and sell either directly or indirectly across northeast China, including supermarkets and hypermarkets.
--------------------------------------------------------------------------------
As of June 30, 2010, we had 754 employees, of whom 392 were operating personnel, 271 were sales personnel, 37 were research and development personnel and 54 were administrative personnel.
Dalian Precious Sheen Investments Consulting Co., Ltd., or Chuming WFOE, is our holding company established in China for our three PRC operating subsidiaries, collectively referred to elsewhere in this report as the "Chuming Operating Subsidiaries":
1. Dalian Chuming Slaughter and Packaging Pork Company Ltd. ( "Meat Company"), whose primary business activity is acquiring, slaughtering and packaging of pork and cattle;
2. Dalian Chuming Processed Foods Company Ltd. ( "Food Company"), whose primary business activity is the processing of raw and cooked meat products; and
3. Dalian Chuming Sales Company Ltd. ("Sales Company"), which is responsible for our sales, marketing and distribution operations.
The Chuming Operating Subsidiaries are spin-off constituents of a former parent company, Dalian Chuming Group Co., Ltd., or the "Group" Chuming WFOE was incorporated in China as a wholly foreign owned enterprise in December 2007. Chuming WFOE is 100% owned by Precious Sheen Investments Limited ("PSI"), a holding company established in the British Virgin Islands in May 2007.
Pork is widely regarded as China's most important source of meat and is consumed at a much higher rate than other categories of meat. We believe that increasing levels of consumption of pork products in China is linked to the rapid development of the Chinese economy, urbanization and strong income growth.
Aside from increasing aggregate consumption, based on management's research, pork consumption patterns in recent years have shown two main characteristics. The first is that per capita pork is consumed at higher rates in the urban areas of China as opposed to rural areas, although the rate of growth in these urban consumption rates is relatively slight. The second is that consumers' consumption preferences appear to have shifted from frozen meat to fresh meat, and from fat meat to lean meat, with a tendency toward high quality cuts. Management believes these trends continue to be very favorable to our business which is based on mechanized meat processing and sales to urban consumers.
Our total sales volume was 35,356 metric tons in the second quarter of 2010 and 27,697 metric tons in the second quarter of 2009.
Retail pork prices are an important component of China's Consumer Price Index (CPI), a key inflation indicator. In order to moderate increases in the CPI and maintain the living standard of its lower-income population, the Chinese government has implemented a number of policies to encourage pork production. Due to a shortage in supply, live hog prices rose significantly in 2008. However, during the first half of 2009, the average pork price declined as compared to the average price during the same periods in 2008. The decline in pork prices was due to a decline in demand which was the result of wide public perception that the swine flu epidemic in late April and early May affected the health and quality of pork produced during such time. In June 2009, in response to the decline in pork prices and demand, the Chinese government purchased and placed into storage large quantities of pork products. This was done to help reduce public fear that the pork supplies were contaminated due to the swine flu epidemic in an effort to cause the pork price to rebound to a reasonable level. This action by the PRC government helped to regain consumer confidence to increase the purchase of pork products, and as the demand began to rise, the prices of pork began to rise again in July 2009, and by the end of the year ultimately rose to a level higher than the prices seen during the first half of 2009. In the first six months of 2010, pork prices trended lower to levels similar to the second quarter of 2009, but since the end of the second quarter, prices have begun to trend higher, we expect this upward trend to continue through the end of the year.
In China, the pork processing industry remains fragmented, and we believe, inefficient. As smaller players experience pressure from margin compression and stricter government regulations, we believe scaled pork processors, like ourselves, will be positioned to make acquisitions on favorable terms in order to capture market share, gain scale, secure raw material, and access more customers. We expect that the combined factors of stricter hygiene regulations, increasing competition from well-financed players, and struggling meat suppliers, will induce industry consolidation in the coming years. We believe we are in a strong position to continue to take advantage of the Chinese government's support for leading pork producers, these market consolidation trends, and the emerging hog supply situation. Management believes that this is a long-term trend.
--------------------------------------------------------------------------------
Given the current competitive market conditions, we constantly strive to impose strict quality control in our products and utilize state-of-art slaughtering and cutting lines (which are imported from Stork Co. of the Netherlands), to ensure our product quality, increase awareness of our brand and develop customer loyalty. Our research suggests that consumers in China are increasingly conscious of food safety and nutrition, and they using their purchasing power to demand safer and higher quality food products for their families.
We place a very high priority on food safety and integrity. For the feeds which are used for our hogs, we control and monitor our feed sources by acquiring feeds only from qualified suppliers who are licensed in the nation or the province, and then carry out comprehensive tests to ensure quality. All of our production lines have also passed the Hazard Analysis and Critical Control Point (HACCP) test, which is certified by Moody International Certification Ltd. Management anticipates that companies such as ours, with quality meat processing and modern logistics systems, will benefit as they capture market share and build consumer brand loyalty.
Management believes that we need to broaden our geographic sales network and diversify our customer base. Currently our distribution network is principally located in Liaoning Province, especially Dalian city. We have however expanded our sales network for fresh and processed food products to almost all large and medium cities in the three most northeast provinces of China. In the near future we need to further extend this network and penetrate all the northeast provinces of China with all our products. A broader customer base can not only mitigate our reliance on certain big customers, but also bring us more opportunities. We believe a broader market for our products can increase demand for our products, reduce our vulnerability to market changes, and provide additional areas of growth in the future.
Our top five customers accounted for 42.16% for our total sales for the quarter ended June 30, 2010. We plan to position our business to diversify our customer base, which is expected to lower this percentage gradually in the future.
Management presently anticipates continued growth in volume of sales. Nevertheless, our ability to meet increased customer demand and maintain profitability will however continue to depend on factors such as our production capacity, availability of working capital, input costs, as well as the other factors described throughout this report.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Our management's discussion and analysis of our financial condition and results of operations are based on our consolidated financial statements.
While our significant accounting policies are more fully described in Note 2 to our combined financial statements included in this report, we believe that the following accounting policies are the most critical to aid you in fully understanding and evaluating this management discussion and analysis:
Method of Accounting
We maintain our general ledger and journals with the accrual method accounting for financial reporting purposes. The financial statements and notes are representations of management. Accounting policies adopted by us conform to generally accepted accounting principles in the United States of America and have been consistently applied in the presentation of financial statements, which are compiled on the accrual basis of accounting.
--------------------------------------------------------------------------------
Principles of Consolidation
The consolidated financial statements, which include the Company and its subsidiaries, are compiled in accordance with generally accepted accounting principles in the United States of America. All significant inter-company accounts and transactions have been eliminated. The consolidated financial statements include 100% of assets, liabilities, and net income or loss of those wholly-owned subsidiaries.
The Company has owned the three operating subsidiaries since December 31, 2007 as a result of a reverse merger consummated via share exchange. Control of our operating subsidiaries (through the Company, its subsidiaries, predecessors or other entities) was consistently held prior to and after the reverse merger. We also own two intermediary holding companies. As of June 30, 2010, the detailed identities of the consolidating subsidiaries are as follows:
Attributable
Place of Equity Registered
Name of Company Incorporation Interest Capital
Precious Sheen Investments Limited BVI 100 % USD 10,000
Dalian Chuming Precious Sheen Investment RMB
Consulting Co., Ltd. PRC 100 % 91,009,955
Dalian Chuming Slaughtering & Pork Packaging Co. RMB
Ltd. PRC 100 % 10,000,000
RMB
Dalian Chuming Processed Foods Co. Ltd. PRC 100 % 5,000,000
RMB
Dalian Chuming Sales Co. Ltd. PRC 100 % 5,000,000
The consolidation of these operating subsidiaries into a newly formed holding company i.e. the "Company" is permitted by United States GAAP: ARB51 paragraph 22 and 23.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles in the United States 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. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from these estimates.
Accounts Receivable
We extend unsecured, non-interest bearing credit to our customers; accordingly, we carry an allowance for doubtful accounts, which is an estimate, made by management. Management makes its estimate based on prior experience rates and assessment of specific outstanding customer balances. Management may extend credit to new customers who have met the criteria of our revised credit policy.
--------------------------------------------------------------------------------
Inventory Carrying Value
Inventory, consisting of raw materials in the form of livestock, work in progress, and finished products, is stated at the lower of cost or market value. Finished products are comprised of direct materials, direct labor and an appropriate proportion of overhead. Periodic evaluation is made by management to identify if inventory needs to be written down because of damage or spoilage. Cost is computed using the weighted average method.
Property, Plant, and Equipment
Property, Plant, and Equipment are stated at cost. Repairs and maintenance to these assets are charged to expense as incurred; major improvements enhancing the function and/or useful life are capitalized. When items are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gains or losses arising from such transactions are recognized.
Property and equipment are depreciated using the straight-line method over their estimated useful life with a 5% salvage value. Their useful lives are as follows:
Fixed Asset Classification Useful Life
Land Improvements 10 years
Buildings 20 years
Building Improvements 10 years
Manufacturing Machinery & Equipment 10 years
Office Equipment 5 years
Furniture & Fixtures 5 years
Vehicles 5 years
Land Use Rights
Land Use Rights are stated at cost less accumulated amortization. Amortization is provided over its useful life, using the straight-line method. The useful life of the land use right is 50 years.
Customer Deposits
Customer Deposits represents money we have received in advance for purchases of pork and pork products. We consider customer deposits as a liability until products have been shipped and revenue is earned. We collect a damage deposit (as a deterrent) recorded on other payable from showcase store operators as a means of enforcing the proper use of our trademark. We carry the amount of these deposits as a current liability because we will return the deposit to the operator when we cease to conduct business with the operator.
Statutory Reserve
Statutory reserve refers to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and, are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit, must appropriate, on an annual basis, from its earnings, an amount to the statutory reserve to be used for future company development. Such an appropriation is made until the reserve reaches a maximum equaling 50% of the enterprise's registered capital.
Earnings Per Share
We compute earnings per share ("EPS") in accordance with Statement of Financial Accounting Standards No. 128, "Earnings per share" ("FASB ASC 260"), and SEC Staff Accounting Bulletin No. 98 ("SAB 98"). FASB ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., contingent shares, convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.
--------------------------------------------------------------------------------
Recent Accounting Pronouncements
See Note 2(Z) to the consolidated financial statements included in Item 1 of this Quarterly Report of Form 10-Q for discussions on recently issued accounting announcements. We are currently evaluating the potential impact, if any, of the adoption of the above recent accounting pronouncements on our consolidated results of operations and financial condition.
Related Party Receivable and Payable
In the normal course of business which includes the purchase of hogs and other raw materials, and the sale of pork and pork products, the Company conducts transactions with certain related parties that are not consolidated into the Company. The Company and these related parties share common beneficial ownership. All transactions with related parties are generally performed at arm's length. In the event that we have both receivables from, and payables to these related parties, we will set off the balances in order to arrive at a single balance that is either due from, or due to these related parties.
RESULTS OF OPERATIONS
Comparison of Three Months Ended June 30, 2010 and June 30, 2009.
The following table sets forth the results of our operations for the periods
indicated as a percentage of net sales:
Three Three Months
Months ended ended
June 30, June 30,
2010 % of Sales 2009 % of Sales
Sales $ 54,284,455 100 % $ 48,279,491 100.00 %
Cost of Sales (45,821,654 ) 84.41 % (41,200,068 ) 85.34 %
Gross Profit 8,462,801 15.58 % 7,079,423 14.66 %
Selling Expenses (293,294 ) 0.54 % (507,404 ) 1.05 %
General & Administrative Expenses (819,634 ) 1.51 % (711,732 ) 1.47 %
Total Operating Expense (1,112,928 ) 2.05 % (1,219,136 ) 2.53 %
Operating Income / (Loss) 7,349,873 13.54 % 5,860,287 12.14 %
Other Income (Expense) (324,662 ) 0.6 % (4,830,464 ) 10.01 %
Earnings Before Tax 7,025,211 12.94 % 1,029,823 2.13 %
(Income Tax Expense) / Deferred Tax Benefit (428,769 ) 0.79 % (474,978 ) 0.98 %
Net Income $ 6,596,442 12.15 % $ 554,845 1.15 %
Earnings Per Share
Basic $ 0.31 $ 0.03
Diluted 0.31 0.03
Weighted Average Shares Outstanding
Basic 21,136,392 17,272,756
Diluted 21,136,392 21,136,392
--------------------------------------------------------------------------------
Sales. Our sales include revenues from sales of our fresh pork, frozen pork, and processed food products. During the quarter ended June 30, 2010, we had sales of $54,284,455, as compared to the sales of $48,279,491 for the quarter ended June 30, 2009, an increase of approximately 12.44%. Our sales for our various product categories in the second quarter of 2010 are summarized as follows:
% increase
Sales by product category, in Second Quarter % of Total Second Quarter % of from
dollars: 2010 (amount) Sales 2009 (amount) Total Sales 2009 to 2010
Fresh Pork $ 43,700,238 80.50 % $ 36,402,736 75.40 % 20.05 %
Frozen Pork 3,407,836 6.28 % 4,499,649 9.32 % (24.26) %
Processed Food Products 7,176,381 13.22 % 7,377,106 15.28 % (2.72) %
Total Sales $ 54,284,455 100 % $ 48,279,491 100 % 12.44 %
Second Second
Quarter Quarter
Sales by product category, by 2010 2009 % change
weight of product (metric (Weight in % of (Weight in % of from
tons): tons) Total Sales tons) Total Sales 2009 to 2010
Fresh Pork 29,851 84.43 % 21,904 79.08 % 36.28 %
Frozen Pork 2,581 7.30 % 2,986 10.78 % (13.56) %
Processed Food Products 2,924 8.27 % 2,807 10.13 % 4.17 %
Total Sales 35,356 100 % 27,697 100 % 27.65 %
We believe that the increases in sales revenue and sales volume in fresh pork and processed pork products arises from our increase in our overall number of sales agents, and our expansion of the geographic coverage of our sales agent network. We have also stimulated sales through our sales agents by extending sales discounts to them. Furthermore, there has been continuing strength in consumer demand for fresh pork products in the periods presented. For frozen pork, our sales revenue decreased by 24.26% in the first quarter of 2010 and our sales volume for this product category decreased 13.56% as compared to the same period in 2009. We attribute this decrease in the sale of frozen pork products to our increased use of agents (who mainly sell fresh pork), and see it also as reflective of a trend among end-users for fresh pork products, given the improvements in logistics and distribution in the supply chain and health and nutritional concerns.
In the second quarter of 2010, we decreased our average per-kilogram sales price for all our product categories. These changes were in-line with changes in the market price for these products. In the second quarter of 2010, our sales volume by weight of fresh pork increased as compared to the second quarter of 2009 by 36.28%. Our revenue for fresh pork, however, increased by a lower 20.05%, given lower average per kilogram product prices. Similarly, for processed food products, our sales by weight increased by 4.17%, but because of lower average per-kilogram prices to customers, our sales revenue for this product category decreased by 2.72%.
--------------------------------------------------------------------------------
The following table shows the change in the average price per kilogram for our product to consumers in the quarter ending June 30, 2010, as compared to the same quarter last year:
Average Per-Kilogram Price to Customers (in US$)
Second Second
quarter of quarter of Change in
2010 2009 % change Price
Fresh Pork $ 1.46 $ 1.66 (12.04) % $ (0.20)
Frozen Pork $ 1.32 $ 1.50 (12.00) % $ (0.18)
Processed Food Products $ 2.45 $ 2.62 (6.49) % $ (0.17)
. . .
Add ENHD.OB to Portfolio Set Alert Email to a Friend
Get SEC Filings for Another Symbol: Symbol Lookup
Quotes & Info for ENHD.OB - All Recent SEC Filings
Sign Up for a Free Trial to the NEW EDGAR Online Pro
Detailed SEC, Financial, Ownership and Offering Data on over 12,000 U.S. Public Companies.
Actionable and easy-to-use with searching, alerting, downloading and more.
Request a Trial????? Sign Up Now
--------------------------------------------------------------------------------
Copyright © 2010 Yahoo! Inc. All rights reserved. Privacy Policy - About Our Ads - Terms of Service - Copyright/IP Policy - Send Feedback - Yahoo! News Network
SEC Filing data and information provided by EDGAR Online, Inc. (1-800-416-6651). All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.
But the mourners and pallbearers keep hanging around, must
be expecting a resurrection..HHMMMMM
LOL.
"the official opening of a new market for Redwood Capital"
=============================================================
The RC deals are soooooo far behind with no real outlook for completion that one has to doubt they'll ever happen, BUT...
should the above quoted statement mean that medical product
distribution will soon begin, that would be most welcome.
GLTA.
"abandoning his family and all other interests to devote his life to the sale of OVOE.PK worthless patents"
That's really a stretch, even for you.
A little desparation setting in, perhaps.
Your continued pathetic attempts to kill a supposedly dead issue(per you) are very enlightening as well as laughable.
Related topic..........
======================================================
...ABAX Misses by a Penny, Revs Up
Abaxis Inc. (ABAX) reported an EPS of 16 cents in the first quarter fiscal
2011, missing both the Zacks Consensus Estimate and the year-ago quarter’s
earnings by a penny.
Net sales for the quarter increased 18% year over year to $35.0 million,
beating marginally the Zacks Consensus Estimate of $34 million. The sales
growth reflected the company’s strong investment in sales and marketing strategy
to support the improvement of existing products and introduction of new
products on a constant basis.
Geographically, Abaxis’ North America revenue increased 15% year over year
to $27.8 million, while international revenue increased 30% to $7.2
million.
Within the customer group, revenue for the quarter increased 12.2% and 23%
year over year in the Medical Market ($6.4 million) and Veterinary Market
($26.8 million), respectively, while Other customer groups saw a ($1.7
million) decreased of 15% year over year.
Within each of the Medical Market and Veterinary segment, Abaxis derives
revenue from the sale of instruments and consumables. During the reported
quarter, Instruments (including chemistry analyzers, hematology
instruments, coagulation analyzers and i-STAT analyzers) and Consumables
(including reagent discs, hematology reagent kits, coagulation cartridges,
i-STAT cartridges and heartworm rapid tests) sales increased 17% and 21%
year over year.
On the basis of units, the total medical and veterinary instrument sales
were 1,025 units, up 23% over the year-ago quarter. With regard to
Consumables, total medical and veterinary reagent disc sales (1.6 million
units) increased 10% year over year.
Gross margins were up 70 basis points sequentially but were down 131 bps
year over year to 56.1%, due to an increase of 21.6% in the costs. The
increase in costs were associated with the shifting of disc moulds, lower
royalty revenue and higher sales of OEM (original equipment manufacturing)
products.
Research and development expenses increased 19.2% year over year to $3.1
million and as a percentage of sales increased to 15.8% from 8.8% in the
year-ago quarter. The company is focused on the development of hemoglobin
on the disc for both the Veterinary and Medical Markets. Its main priority
is the expansion of the rapid test menu. Most of the product development
and submissions to the regulatory authorities is likely to be completed by
the end of fiscal 2010.
Sales and marketing expenses increased 34.4% year over year to $8.7
million and as a percentage of sales increased to 24.6% from 22.6% in the
year-ago quarter. Administration charges were $2.1 million, or 6.15% of
sales, down from 8.4% of sales in the year-ago quarter and 8.3% of sales
in the fourth quarter 2009.
Abaxis ended the first quarter 2011 with Cash, cash equivalents of $36.3
million as compared with $27.8 million at the end of March 2010.
The company operates in a niche market of portable medical and veterinary blood
analysis systems. Low worldwide penetration provides for substantial
growth within the industry. Furthermore, the company derives strong
recurring revenue from its razor/razor blade business model that hedges it
from any meaningful sales shortfall in the testing times.
Zacks Investment Research
ADVERTISEMENT
Zacks Investment Research
FREE: 4 Stock Picks Every Day
This system triples the S&P 500
Get Picks Now!
Related Headlines
•Abaxis Inc. F1Q11 (Qtr End 06/30/10) Earnings Call Transcript - at Seeking Alpha
•ABAXIS INC Files SEC form 8-K, Results of Operations and Financial Condition, Financial Statements and Exhibits - EDGAR Online
•Abaxis Reports Record Revenues for the First Quarter of Fiscal 2011 - PR Newswire
•Abaxis to Report First Quarter Fiscal 2011 Financial Results Thursday, July 29, 2010 - PR Newswire
•Q1 2011 Abaxis, Inc. Earnings Release - Time Not Supplied - CCBN
Related Blog Headlines
•ABAX Misses by a Penny, Revs Up - Zacks
Top Stories
•Recovery Loses Speed as Consumers Turn Cautious - AP
•Stocks wobble after GDP data, consumer sentiment - Reuters
•Bullard flip-flops on quantitative easing - Barron's.com
•Investor sentiment gets hotter in July - MarketWatch
Related Message Boards
•Abaxis Inc.
There are no comments yetPost a Comment
Comment Guidelines
Please Enter a Comment 4000 characters remaining
Also share this as an update to: Manage Updates
Everyone Connections
Add Facebook Post Comment
Clear
Sponsored Links
Free Investment Report Stock Picks
Investment Experts FREE Email Penny Stock Alerts for Smart Investing.
www.KillerPennyStocks.com
How to Finance Investment Properties
Details Here on How Steve Refinanced 22 Investment Properties at 5.5%
www.GetaPortfolioLoan.com10 Funds to Buy Today
Do your Portfolio a Favor Today. Earn Supercharged Returns in 2009.
www.InvestingNewsWeekly.com
Stock Market Trades
Start Stock Trading Today Search Around You Now.
AroundMe.com.More From Provider
Read the analyst report on ABAX Zacks.comADVERTISEMENT
Tech Ticker Recent Posts
Walk Away From Your Underwater Home, And Get An iPad! - Joe Weisenthal
The Great Debate: What Should Be Done About the Bush Tax Cuts? - Peter Gorenstein
Foreclosures Up in 1H But So Is Housing Affordability: "Let's Not Throw In the Towel" - Aaron Task
View More
Subscribe to Topics
Top Stories
Add Alert
abax Headlines
Add Alert
See all RSS links
ADVERTISEMENT
© 2010 Zacks.com. All rights reserved.
.Yahoo! Finance
•Banking & Budgeting
•Calculators
•Currency
•ETFs
•Experts
•Investing
•Insurance
•Market Stats
•Message Boards
•Mobile
•Personal Finance
•What's New
Also on Yahoo!
•Autos
•Finance
•Flickr
•Games
•Groups
•Health
•Hot Jobs
•Mail
•Maps
•Movies
•Music
•My Yahoo!
•News
•Shopping
•Sports
•Travel
•TV
•Video
» All Y! Services
Things To Do
•Read Our Blog
•Finance on Your Phone
•Check Home Values
•Find a New Car
•Search Jobs Across the Web
.Yahoo! Finance Worldwide
ArgentinaAustraliaBrazilCanadaChinaChineseFranceFrench CanadaGermany.Hong KongIndiaItalyJapanKoreaMexicoNew ZealandSingaporeSpainSpanishTaiwanUK & IrelandUSA.Copyright © 2010 Yahoo! All rights reserved. Privacy Policy - About Our Ads - Terms of Service - Copyright Policy - Report Problems - Yahoo! News Network
Quotes delayed, except where indicated otherwise. Delay times are 15 mins for NASDAQ, NYSE and Amex. See also delay times for other exchanges. Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page.Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quotes are delayed at least 15 minutes. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.
Fundamental company data provided by Capital IQ. Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI). International historical chart data, daily updates, fundAnalyst estimates data provided by Thomson Financial Network. All data povided by Thomson Financial Network is based solely upon research information provided by third party analysts. Yahoo! has not reviewed, and in no way endorses the validity of such data. Yahoo! and ThomsonFN shall not be liable for any actions taken in reliance thereon.
2142203399
At fiscal YE, 90 days allowed for 10K,
(end Sept). Of course as a pinkie, filing not required,
one thing that keeps me going here is that they have
continued to file like a real company.
You got it totally wrong. I'm not cheering anything, I'm asking
1. how do you know the patents aren't viable?
2. If ONEV is toast, why waste your time here?
Maybe you're trying to kill it, but you're still here cuz you know it's NOT dead.
Bulls, if ONEV is toast, why are you here?
SIVC holds shares of BOY.TO
===========================================
June 29 (Reuters) - Boyuan Construction Group Inc BOY.TO said on Tuesday it has started construction of a retail project valued at $6.2 million in China's Zhejiang province.
The 42,000 square meter building to be developed in Haining city will be used as a supermarket, Boyuan said.
The company -- which is a builder of commercial, residential and municipal infrastructure projects -- said it expects the project to be completed in the third quarter of calendar 2011.
The Zhejiang province, which forms part of the Yangtze River Delta, is one of Boyuan's key markets along with Hainan Island and Shandong province.
"Ongoing growth in the Yangtze River Delta is fueling demand for the construction of new buildings that complement our traditional residential and commercial projects," Boyuan Chairman Cai Liang Shou said in a statement.
Jiaxing City, China-based Boyuan's clients include Cargill [CARG.UL] and the Dalian Shide Group. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Roshni Menon)
Ads by GoogleWhat's This?Hartford Daily Deals
90% Off Your Favorite Restaurants, Spas & More. Get It While It Lasts!
www.Groupon.com/Hartford
Hartford 1-Day Coupons
Up to 90% off the best stuff to do Restaurants, spas, events and more
www.LivingSocial.com
Free Oil Stock Report
Find Out The Hottest Oil Companies Read our Free Oil Stock Report
www.BeaconEquity.com/Oil-Sector
More from Reuters Russia says U.S. spy accusations baseless and improper
MOSCOW (Reuters) - Russia on Tuesday said U.S. allegations that it had broken up a major Russian spy ring just days after President Dmitry Medvedev met Barack Obama in Washington were baseless and improper. | Video
Delay looms as Wall St bill seen "too big to fail" | Video
Google tweaks rerouting in fight for China business
Hurricane Alex to hamper BP's oil spill containment | Video
Vatican says not liable in U.S. sexual abuse case
Strikes hit Greece and Spain as ECB deadline looms
» More Top NewsGoldman foe gets some revenge
After raking Goldman executives over the coals during Senate hearings, Carl Levin introduced a provision in the financial reform bill that aims to curb Wall St. conflicts of interest. Full Article
Delay looms as bill seen "too big to fail"
Breakingviews: Financial reform no longer a done deal
Volcker welcomes trading restraints
RegulationGoogle to end China redirect
Google will stop redirecting Chinese users to its Hong Kong page in a bid to keep operating in China, where the search giant is embroiled in a censorship row. Full Article
Baidu to hire U.S. engineers in China
Apple boasts 1.7 million iPhone 4 sales
Technology© Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United StatesReuters
Contact Us
Advertise With Us
Help
Journalism Handbook
Archive
Site Index
Video Index
Reader Feedback
Analyst Research
Mobile
Newsletters
RSS
Podcasts
Widgets
Your View
Labs
Thomson Reuters
Copyright
Disclaimer
Privacy
Professional Products
Professional Products Support
Financial Products
About Thomson Reuters
Careers
Online Products
Acquisitions Monthly
Buyouts
Venture Capital Journal
International Financing Review
Project Finance International
PEhub.com
PE Week
FindLaw
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.
SIVC holds shares of BOY.V
=================================================================
Press Release Source: Standard & Poor's Canadian Index Operations On Friday June 11, 2010, 5:17 pm EDT
TORONTO, June 11 /CNW/ - Standard & Poor's will make the following changes in the S&P/TSX Venture Composite Index after the close of trading on Friday, June 11, 2010:
- Boyuan Construction Group Inc. (TSXVN:BOY) will be removed from the index. The company will graduate to TSX where it will trade under the same ticker symbol.
- Triton Energy Corp. (TSXVN:TEZ) will trade under the new name Waldron Energy Corporation. The new ticker symbol will be "WDN" and the new CUSIP number will be 931344 10 5. The shares will be consolidated on a 1-for-10 basis.
Company additions to and deletions from an S&P equity index do not in any
way reflect an opinion on the investment merits of the company.
About Standard & Poor's Index Services
Standard & Poor's Index Services, the world's leading index provider, maintains a wide variety of investable and benchmark indices to meet an array of investor needs. Over $1 trillion is directly indexed to Standard & Poor's family of indices, which includes the S&P 500, the world's most followed stock market index, the S&P Global 1200, a composite index comprised of seven regional and country headline indices, the S&P Global BMI, an index with approximately 11,000 constituents and the S&P GSCI, the industry's most closely-watched commodities index. For more information, please visit www.standardandpoors.com/indices.
About Standard & Poor's
Standard & Poor's, a subsidiary of The McGraw-Hill Companies (NYSE: MHP - News), is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research and data. With offices in 23 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for nearly 150 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit: http://www.standardandpoors.com/.
For further information
Tony North, (416) 507-3204, sp_index@standardandpoors.com
Dave Guarino, 1 212 438 1471, Dave_guarino@standardandpoors.com
Buzz up! 0 SendSharePrintShare this pageDeliciousTwitterMyspaceDiggStumbleUponFacebook.Related Headlines
•Standard & Poor's Announces Changes in the S&P/TSX Venture Composite Index - CNW Group
•Boyuan announces graduation to the TSX - CNW Group
•Boyuan reports FY 2010 third quarter financial results - CNW Group
•Triton Energy Corp. Announces First Quarter 2010 Financial and Operational Results - Marketwire
•Boyuan begins new construction projects on Hainan Island valued at US $14.6 million - CNW Group
Related Message Boards
•BOYUAN CONSTRUCTION GROUP INC.
•TRITON ENERGY CORP.
Sponsored Links
7,500% Profit From Penny Stocks?
Returns of up to 7,500% Free & Profitable Alerts. Try Now
www.KillerPennyStocks.com
$87 Million stock quotes Winner
California Option Trader Makes $87 Million in Stock Market in 1 Year.
www.virtualinvestingclub.comFree Weekly Stock Market Report
Sign Up For Our Free Stock Market Reports Sent Each Week And Profit
www.FreeHotPennyStocks.com
finance investing stock market
Trade stocks, options, futures and Bonds online with optionsXpress.
optionsXpress.com.Top Stories
Spirit Airlines talks extended 2 hours - AP
Ban peanuts on planes? It's not nutty to allergics - AP
Dow posts first weekly gain in nearly a month - AP
Motorola and Research In Motion settle dispute - AP
AdChoices
Tech Ticker Recent Posts
15 States Facing A Terrible Demographic Crisis - Gus Lubin
Levy: We Need Deficit Spending to Keep Economy Afloat - Chris Nichols
Bernanke Is Wrong! Double-Dip Recession Looming, Forecaster David Levy Says - Keegan Bales
View More
Subscribe to Topics
Top Stories
Add Alert
boy.v Headlines
Add Alert
tez.v Headlines
Add Alert
See all RSS links
ADVERTISEMENT
Copyright © 2010 CNW Group. All rights reserved. All the news releases provided by CNW Group are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.
.Yahoo! Finance
•Banking & Budgeting
•Calculators
•Currency
•ETFs
•Experts
•Investing
•Insurance
•Market Stats
•Message Boards
•Mobile
•Personal Finance
•What's New
Also on Yahoo!
•Autos
•Finance
•Flickr
•Games
•Groups
•Health
•Hot Jobs
•Mail
•Maps
•Movies
•Music
•My Yahoo!
•News
•Shopping
•Sports
•Travel
•TV
•Video
» All Y! Services
Things To Do
•Read Our Blog
•Finance on Your Phone
•Check Home Values
•Find a New Car
•Search Jobs Across the Web
.Yahoo! Finance Worldwide
ArgentinaAustralia & NZBrazilCanadaChinaChineseFranceFrench CanadaGermany.Hong KongIndiaItalyJapanKoreaMexicoSingaporeSpainSpanishTaiwanUK & IrelandUSA.Copyright © 2010 Yahoo! All rights reserved. Privacy Policy - About Our Ads - Terms of Service - Copyright Policy - Report Problems
Quotes delayed, except where indicated otherwise. Delay times are 15 mins for NASDAQ, NYSE and Amex. See also delay times for other exchanges. Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page.Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quotes are delayed at least 15 minutes. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.
Fundamental company data provided by Capital IQ. Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI). International historical chart data, daily updates, fundAnalyst estimates data provided by Thomson Financial Network. All data povided by Thomson Financial Network is based solely upon research information provided by third party analysts. Yahoo! has not reviewed, and in no way endorses the validity of such data. Yahoo! and ThomsonFN shall not be liable for any actions taken in reliance thereon.
2142204591
Great news is right, good find, gotta love it!
:)
SIVC holds shares of BOYUAN ------------
--------------------------------------------
Press Release Source: Boyuan Construction Group, Inc. On Friday May 28, 2010, 7:00 am
TORONTO, May 28 /CNW/ - Boyuan Construction Group, Inc., (TSX-V: BOY & BOY.DB) a fast-growing construction company in China of commercial, residential and municipal infrastructure projects, reported today its financial results for the three and nine-month periods ended March 31, 2010. All figures are in U.S. dollars unless otherwise stated.
Selected Third Quarter Financial Highlights ------------------------------------------------------------------------- In thousands except share and % data Q3 2010 Q3 2009 Change ------------------------------------------------------------------------- Revenue $ 31,048 $ 15,939 +94.8% ------------------------------------------------------------------------- Gross profit $ 5,159 $ 2,319 +122.4% ------------------------------------------------------------------------- Gross profit margin 16.6% 14.6% ------------------------------------------------------------------------- Net income $ 2,156 $ 1,160 +86% ------------------------------------------------------------------------- Earnings per share - diluted $ 0.09 $ 0.05 +80% -------------------------------------------------------------------------
"We realized significant gains across each of our primary financial
targets even though the third quarter is generally our weakest due to seasonal
factors and work stoppages relating to the Chinese New Year holiday period,"
said Mr. Cai Liang Shou, Chairman of Boyuan Construction Group. "In
particular, we increased our gross margins above historical norms to 16.6%,
grew our after-tax net income by more than 85% to $2.2 million and signed new
agreements worth $76.6 million, our largest total to date for a quarter and
further validating our decision to expand into neighbouring markets in
Shandong."
Q3 Business and Operational Highlights - Awarded a 16-storey commercial construction project in Shandong valued at $19 million. - Signed a $17.5 million agreement to construct a 20-storey, five-star hotel on Hainan Island. - Awarded a 200,000 square meter commercial building project in Shandong province valued at $22 million. - Signed an $18.1 million agreement to construct a 32-storey residential project in Shandong province. - Year-to-date revenue totalled $103.7 million, surpassing the 12-month total of $101.7 million for FY2009. Highlights Subsequent to Quarter End - Awarded a 50,000 square meter residential project in Zhejiang province valued at $6.9 million. - Signed a $23.3 million agreement to construct a 35-storey commercial project, Boyuan's tallest to date, in Shandong province. - Initiated construction of two, separate mixed development projects on Hainan Island valued at $14.6 million - Received conditional approval to graduate to the Toronto Stock Exchange (TSX). Selected 9-Month Financial Highlights ------------------------------------------------------------------------- In thousands except share and % data 9-Month 9-Month 2010 2009 Change ------------------------------------------------------------------------- Revenue $103,663 $ 60,598 +71.1% ------------------------------------------------------------------------- Gross profit $ 17,550 $ 8,533 +105.7% ------------------------------------------------------------------------- Gross profit margin 16.9% 14.1% ------------------------------------------------------------------------- Net income $ 5,463 $ 5,578 -2.1% ------------------------------------------------------------------------- Adjusted net income(1) $ 8,706 $ 5,578 +56% ------------------------------------------------------------------------- Earnings per share - diluted $ 0.24 $ 0.22 +9% ------------------------------------------------------------------------- Adjusted Earnings per share - diluted(2) $ 0.35 $ 0.22 +59% ------------------------------------------------------------------------- --------------------------------- (1) Adjusted net income is not a recognized measure under Canadian GAAP. It excludes a stock-based compensation charge of $3.2 million related to the fair value transfer of shares under the "make-good provision" of a financing agreement signed in July, 2009. The Company believes that adjusted net income is more representative of its performance as the make good charge is a non-cash accounting charge and not related to its business activities. (2) Adjusted earnings per share is not a recognized measure under Canadian GAAP. It is calculated by dividing the Company's adjusted net income by the number of outstanding shares (diluted).
Review of Financial Results
Revenue for the third quarter ended March 31, 2009 was $31 million, up 94.8% from $15.9 million for Q3 of FY2009. Revenue for the first nine months of FY2010 was $103.7 million, compared to $60.6 million for the same period in FY2009.
Boyuan recognizes revenue on the percentage-of-completion method, measured by the ratio of costs incurred up to a given date to estimated total costs for each contract. The significant year-over-year growth in revenue was primarily attributable to an increase in the number of successful project bids with higher contract value by the Company as well as to an increase in demand for construction and engineering services in the Yangtze River Delta region and Hainan Island, Boyuan's core markets. Growth was also due to the Company's decision to expand into Shandong province.
Higher demand for construction and engineering services is due to ongoing urban migration and an expansion of China's middle class, which drive the need for new housing, commercial and public infrastructure projects.
Cost of construction for the third quarter of FY2010 was $25.9 million compared to $13.6 million for Q3 of FY2009. Cost of construction for the first nine months of FY 2010 was $86.1 million, up from $52.1 million for the comparable period in FY2009. The increase was primarily as a result of higher expenses associated with greater project volume and an expanded work force. Cost of sales includes all direct material, labor, subcontract and other related costs, such as equipment repairs.
Gross profit for the third quarter of FY2010 was $5.2 million, or 16.6% of revenue, compared to $2.3 million, or 14.6% of revenue, for the same period of FY2009. Gross profit for the first nine months of FY2010 was $17.5 million, or 16.9% of revenue, compared to $8.5 million, or 14.1% of revenue, for the same period of FY2009. The year-over-year improvement in gross profit margins in Q3 by 200 basis points was due to a higher percentage of revenue contributed from higher margin projects, particularly in Hainan Island, where the Company experiences strong demand for its services but faces limited competition, and a slightly lower than average gross margin in Q3 FY2009. Historically, the norm for the Company's gross margins is 15%.
After-tax net income for the third quarter of FY2010 was $2.2 million, or $0.09 per fully diluted share, compared to net income of $1.2 million, or $0.05 per fully diluted share, for Q3 of FY2009.
After-tax net income for the nine-month period was $5.5 million, down 2.1% from $5.6 million for the same period of FY2009. The decline is attributable to a non-cash stock-based compensation charge of $3.2 million that the Company incurred in the first quarter of FY2010. As previously reported, the charge related to the fair value transfer of shares under the make good provision of a financing agreement signed in July 2009. The charge is in full compliance with Canadian generally accepted accounting principles.
Excluding the make-good provision charge, adjusted net income for the nine-month period ended March 31, 2010 was $8.7 million, or $0.35 per share diluted, which compares to $5.6 million, or $0.22 per share diluted, for the same period in FY2009. The Company believes that adjusted net income is more representative of its profitability and performance since the make good charge is a non-cash accounting charge and not related to its business activities.
The Company had working capital of $38.2 million, including cash, restricted cash and cash equivalents of $6.1 million for the period ended March 31, 2010. This compares to $22.4 million and $5.5 million, respectively, at June 30, 2009.
Outlook
"We are very encouraged by our short-term prospects and believe that we are well on track to realize our after-tax net income target of $12.4 million for FY 2010 given our backlog and the number of projects currently under way," added Mr. Shou. "Over the longer term horizon, we believe that our focus on Hainan Island and our recent decision to expand into Shandong provides tremendous opportunities for sustained growth, particularly as demand for quality construction and engineering services in these markets remains high and the competitive landscape continues to be fragmented."
Boyuan's consolidated statements for the three and nine-month periods ended March 31, 2010 and related management's discussion and analysis (MD&A) will be filed with securities regulatory authorities within applicable timelines and will be available via SEDAR at http://www.sedar.com/.
About Boyuan Construction Group, Inc.
Based in Jiaxing City, China, Boyuan Construction Group, Inc. is in the business of residential and commercial building construction, municipal infrastructure and engineering projects. In its last four fiscal years ending June 30, 2009, Boyuan completed more than 125 projects for a number of private and public sector clients including Cargill and the Dalian Shide Group, a billion dollar conglomerate whose partners include DuPont, Mitsubishi and GE. Boyuan's current backlog includes residential, industrial and mixed-use developments, including a five-star hotel and a project at the Qingshan Nuclear Plant, China's first and largest nuclear facility. From its operating bases in Zhejiang Province and on Hainan Island, Boyuan focuses on construction projects in China's fast-growing regions of the Yangtze River Delta, the city of Sanya and Shandong Province. For more information visit http://www.boyuangroup.com/ or follow us on Twitter at www.twitter.com/boyuangroup
Caution Regarding Forward-Looking Information:
Certain information contained in this press release constitutes forward-looking information, which is information relating to future events or the Company's future performance and which is inherently uncertain. All information other than statements of historical fact may be forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook. Forward-looking information contained in this press release includes, but is not limited to, the Company's outlook on higher demand for construction and engineering services in China, China's ongoing urban migration and expansion of middle class, need for new housing, commercial and public projects in China, strong economic indicators in China, optimism on Chinese construction industry over the short term, and impact of economic trends (such as rising property value) on tier-two Chinese cities. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Company believes the expectations reflected in the forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and readers are cautioned not to place undue reliance on forward-looking information contained in this press release. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking information contained in this press release include, but are not limited to: risk of macro-economy cycle, risk from competition, risk from insufficient marketing to secure new projects, risk in obtaining additional financing, risk involving permits and licences, reliance on key management member, risk from supply of raw materials, risk of financial leverage, risk of bad debts in accounts receivables, risk involved in real estate development, foreign exchange fluctuations, political and economic conditions in China and other risks included in the Company's AIF for the fiscal year ended June 30, 2009 and in the Company's public disclosure documents filed with certain Canadian securities regulatory authorities and available at www.sedar.com. The forward-looking information contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as otherwise required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Boyuan Construction Group, Inc. Consolidated Balance Sheets (Expressed in US Dollars) (Unaudited) (Audited) March 31, June 30, 2010 2009 $ $ Current Assets Cash and cash equivalents 4,290,223 2,365,738 Restricted cash 1,805,123 3,101,189 Accounts receivable 1,512,641 4,447,059 Unbilled revenue 47,284,891 35,528,915 Other receivables 8,715,421 2,216,873 Inventory 1,967 658,150 Advances to suppliers and prepaid expenses 14,705,932 2,971,020 ------------------------------------------------------------------------- 78,316,198 51,288,944 Deferred transaction costs 209,763 55,222 Due from related parties - 113,010 Property and equipment 6,947,936 5,946,748 Land use rights 117,746 112,243 ------------------------------------------------------------------------- 85,591,643 57,516,167 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Current Liabilities Bank loans 19,119,088 12,926,776 Accounts payable and accrued liabilities 15,218,596 12,842,823 Income taxes payable 4,993,128 1,318,874 Deferred revenue 135,370 1,454,145 Automobile loans 82,823 118,292 Due to related parties 386,843 22,839 Future income tax 148,569 202,000 ------------------------------------------------------------------------- 40,084,417 28,885,749 Future income tax 719,214 573,000 Convertible debentures 6,213,251 1,880,200 ------------------------------------------------------------------------- 47,016,882 31,338,949 ------------------------------------------------------------------------- Shareholders' Equity Share capital 7,372,376 6,139,860 Contributed surplus 7,345,221 1,890,711 Reserve 2,760,648 1,928,732 Equity component of convertible debentures 372,533 137,295 ------------------------------------------------------------------------- 17,850,778 10,096,598 ------------------------------------------------------------------------- Retained earnings 18,958,365 14,326,995 Accumulated other comprehensive income 1,765,618 1,753,625 ------------------------------------------------------------------------- 20,723,983 16,080,620 ------------------------------------------------------------------------- 38,574,761 26,177,218 ------------------------------------------------------------------------- 85,591,643 57,516,167 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Boyuan Construction Group, Inc. Consolidated Statements of Income and Comprehensive Income (Expressed in US Dollars) (Unaudited) Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, 2010 2009 2010 2009 $ $ $ $ Construction revenue 31,047,790 15,938,724 103,663,405 60,598,237 Cost of construction 25,888,544 13,619,467 86,113,559 52,065,027 ------------------------------------------------------------------------- Gross profit 5,159,246 2,319,257 17,549,846 8,533,210 ------------------------------------------------------------------------- Expenses Amortization of property and equipment 149,460 2,179 438,690 205,777 General and administrative expenses 1,135,091 516,636 2,910,749 555,745 ------------------------------------------------------------------------- 1,284,551 518,815 3,349,439 761,522 ------------------------------------------------------------------------- Income from operations 3,874,695 1,800,442 14,200,407 7,771,688 ------------------------------------------------------------------------- Other Income (expense) Interest and other income 28,264 1,248 215,042 (14,892) Foreign exchange loss (21,071) - (88,569) - Interest expense (547,253) (169,068) (1,684,514) (247,466) Stock-based compensation (101,028) (101,028) Make good provision - - (3,243,192) - ------------------------------------------------------------------------- (641,088) (167,820) (4,902,261) (262,358) ------------------------------------------------------------------------- Net income before income taxes 3,233,607 1,632,622 9,298,146 7,509,330 Income taxes (1,077,153) (472,978) (3,834,860) (1,931,315) ------------------------------------------------------------------------- Net income for the period 2,156,454 1,159,644 5,463,286 5,578,015 Other Comprehensive Income Unrealized gain on foreign exchange translation 15,950 28,921 11,993 72,837 ------------------------------------------------------------------------- Comprehensive income for the period 2,172,404 1,188,565 5,475,279 5,650,852 ------------------------------------------------------------------------- -------------------------------------------------------------------------
For further information
Boyuan Construction Group, Inc., Mr. Paul Law, CFO, +(852) 9329 5088, paullaw@zjboyuan.com.cn
The Equicom Group Inc., Joe Racanelli, (416) 815 0700 ext. 243, jracanelli@equicomgroup.com
Buzz up! 0 SendShare this pageDeliciousTwitterMyspaceDiggStumbleUponFacebook.Related Headlines
•Boyuan reports FY 2010 third quarter financial results - CNW Group
•Boyuan begins new construction projects on Hainan Island valued at US $14.6 million - CNW Group
•Boyuan awarded contract valued at US $23.3 million - CNW Group
•Boyuan receives conditional approval to graduate to the TSX - CNW Group
•Boyuan begins new construction project valued at US $6.9 million - CNW Group
Related Message Boards
•BOYUAN CONSTRUCTION GROUP INC.
Sponsored Links
Top Penny Stocks of The Day
Get the daily list of active penny stocks set to move big.
www.pennyinvest.com
OTC Market Movers: Up to 3,000% Gains
Investment Experts recommend FREE Email Alerts for Over 3000% gains.
www.FreeInvestmentReport.comMortgage Rates Hit 3.54% APR
Obama's Making Home Affordable Program Can Help You Take Advantage
www.SeeRefinanceRates.com
finance investing stock market
Trade stocks, options, futures and Bonds online with optionsXpress.
optionsXpress.com.Top Stories
Stock futures rise slightly, point to higher open - AP
Toys "R" Us to go public again through $800M IPO - AP
Company: Restart of Alaska pipeline likely Friday - AP
Apple strikes again: Lines form for the new iPad - AP
ADVERTISEMENT
Tech Ticker Recent Posts
Stocks Post MASSIVE Comeback: Dow Jumps 285 - Joe Weisenthal
Short-Term Bottom In, But Rally Won't Be "Satisfying or Long-lasting," Roque Says - Peter Gorenstein
Stocks Jump ... So Why Are You Still So Worried? - Aaron Task
View More
Subscribe to Topics
Top Stories
Add Alert
boy.v Headlines
Add Alert
See all RSS links
Copyright © 2010 CNW Group. All rights reserved. All the news releases provided by CNW Group are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.
.Yahoo! Finance
•Banking & Budgeting
•Calculators
•Currency
•ETFs
•Experts
•Investing
•Insurance
•Market Stats
•Message Boards
•Mobile
•Personal Finance
•What's New
Also on Yahoo!
•Autos
•Finance
•Flickr
•Games
•Groups
•Health
•Hot Jobs
•Mail
•Maps
•Movies
•Music
•My Yahoo!
•News
•Shopping
•Sports
•Travel
•TV
•Video
» All Y! Services
Things To Do
•Read Our Blog
•Finance on Your Phone
•Check Home Values
•Find a New Car
•Search Jobs Across the Web
.Yahoo! Finance Worldwide
ArgentinaAustralia & NZBrazilCanadaChinaChineseFranceFrench CanadaGermany.Hong KongIndiaItalyJapanKoreaMexicoSingaporeSpainSpanishTaiwanUK & IrelandUSA.Copyright © 2010 Yahoo! All rights reserved. Privacy Policy - About Our Ads - Terms of Service - Copyright Policy - Report Problems
Quotes delayed, except where indicated otherwise. Delay times are 15 mins for NASDAQ, NYSE and Amex. See also delay times for other exchanges. Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page.Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quotes are delayed at least 15 minutes. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.
Fundamental company data provided by Capital IQ. Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI). International historical chart data, daily updates, fundAnalyst estimates data provided by Thomson Financial Network. All data povided by Thomson Financial Network is based solely upon research information provided by third party analysts. Yahoo! has not reviewed, and in no way endorses the validity of such data. Yahoo! and ThomsonFN shall not be liable for any actions taken in reliance thereon.
2142204591
SIVC holds shares of ENHD.......
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
Form 10-Q for ENERGROUP HOLDINGS CORP
--------------------------------------------------------------------------------
17-May-2010
Quarterly Report
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Note Regarding Forward-Looking Statements
This quarterly report on Form 10-Q and other reports filed by Registrant from time to time with the Securities and Exchange Commission (collectively the "Filings") contain or may contain forward-looking statements and information that are based upon beliefs of, and information currently available to, Registrant's management as well as estimates and assumptions made by Registrant's management. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. When used in the filings, the words "anticipate", "believe", "estimate", "expect", "future", "intend", "plan", or the negative of these terms and similar expressions as they relate to Registrant or Registrant's management identify forward-looking statements. Such statements reflect the current view of Registrant with respect to future events and are subject to risks, uncertainties, assumptions, and other factors (including the risks contained in the section of this report entitled "Risk Factors") relating to Registrant's industry, Registrant's operations and results of operations, and any businesses that Registrant may acquire. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned.
Although Registrant believes that the expectations reflected in the forward-looking statements are reasonable, Registrant cannot guarantee future results, levels of activity, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, the Registrant does not intend to update any of the forward-looking statements to conform these statements to actual results. Readers are urged to carefully review and consider the various disclosures made throughout the entirety of this quarterly report, which attempt to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations, and prospects.
In this Form 10-Q, references to "we", "our", "us", "our company", "Energroup" or the "Registrant" refer to Energroup Holdings Corporation, a Nevada corporation.
OVERVIEW
Headquartered in the City of Dalian, Liaoning Province of the People's Republic of China (the "PRC" or "China"), we are a meat processing company primarily involved in the slaughtering, processing, packaging and distribution of pork and pork products. We also process and sell seafood, such as minced fillet products, which accounted for a small portion of our revenue (approximately 5.5%) in the first quarter of 2010.
We are the first pork producer in China to receive "Green Food" certification from China's Ministry of Agriculture. Green Food is an innovative certification program unique to China that is awarded to food processors who produce using environmentally sustainable methods and meet certain high technical standards of quality control, safety, and product quality, and generate low levels of pollution. The Green Food certification is based on standards defined by the Codex Alimentarius Commission ("CAC"), a joint body of the United Nations Food and Agriculture Organization and the World Health Organization. We also received ISO 9001:2000 certification that covers our production, research and development and sales activities.
--------------------------------------------------------------------------------
Currently we have a wholesale and retail distribution network and sell either directly or indirectly across northeast China, including supermarkets and hypermarkets.
As of March 31, 2010, we had 735 employees, of whom 388 were operating personnel, 258 were sales personnel, 37 were research and development personnel and 52 were administrative personnel.
Dalian Precious Sheen Investments Consulting Co., Ltd., or Chuming WFOE, is our holding company established in China for our three PRC operating subsidiaries, collectively referred to elsewhere in this report as the "Chuming Operating Subsidiaries":
1. Dalian Chuming Slaughter and Packaging Pork Company Ltd. ( "Meat Company"), whose primary business activity is acquiring, slaughtering and packaging of pork and cattle;
2. Dalian Chuming Processed Foods Company Ltd. ( "Food Company"), whose primary business activity is the processing of raw and cooked meat products; and
3. Dalian Chuming Sales Company Ltd. ("Sales Company"), which is responsible for our sales, marketing and distribution operations.
The Chuming Operating Subsidiaries are spin-off constituents of a former parent company, Dalian Chuming Group Co., Ltd., or the "Group." Our primary business activities are the production and packing of fresh pork and production of processed meat products for distribution and sale to clients throughout the PRC. Chuming WFOE was incorporated in China as wholly foreign owned enterprise on in December 2007. Chuming WFOE is 100% owned by Precious Sheen Investments Limited ("PSI"), a holding company established in the British Virgin Islands in May 2007.
Pork is widely regarded as China's most important source of meat and is consumed at a much higher rate than other categories of meat. We believe that increasing levels of consumption of pork products in China is linked to the rapid development of the Chinese economy, urbanization and strong income growth.
Aside from increasing aggregate consumption, based on management's research, pork consumption patterns in recent years have shown two main characteristics. The first is that per capita pork is consumed at higher rates in the urban areas of China as opposed to rural areas, although the rate of growth in these urban consumption rates is relatively slight. The second is that consumers' consumption preferences appear to have shifted from frozen meat to fresh meat, and from fat meat to lean meat, with a tendency toward high quality cuts. Management believes these trends continue to be very favorable to our business which is based on mechanized meat processing and sales to urban consumers.
Our total sales volume was 25,713 metric tons in the first quarter of 2010, as compared to 18,512 metric tons in the first quarter of 2009.
Retail pork prices are an important component of China's Consumer Price Index (CPI), a key inflation indicator. In order to moderate increases in the CPI and maintain the living standard of its lower-income population, the Chinese government (as it pertains to the pork industry) has implemented a number of policies to encourage pork production. Due to a shortage in supply, live hog prices rose significantly in 2008. However, during the first half of 2009, the average pork price declined as compared to the average price during the same periods in December 2008. The decline in pork prices was due to a decline in demand which was the result of wide public perception that the swine flu epidemic in late April and early May affected the health and quality of pork produced during such time. In June 2009, in response to the decline in pork prices and demand, the Chinese government purchased and placed into storage large quantities of pork products. This was done to help reduce public fear that the pork supplies were contaminated due to the swine flu epidemic in an effort to cause the pork price to rebound to a reasonable level. This action by the PRC government helped to regain consumer confidence to increase the purchase of pork products, and as the demand began to rise, the prices of pork began to rise again in July 2009, and by the end of the year ultimately rose to a level higher than the prices seen during the first half of 2009.
--------------------------------------------------------------------------------
In China, the pork processing industry remains fragmented, and we believe, inefficient. As smaller players experience pressure from margin compression and stricter government regulations, we believe scaled pork processors, like ourselves, will be positioned to make acquisitions on favorable terms in order to capture market share, gain scale, secure raw material, and access more customers. We expect that the combined factors of stricter hygiene regulations, increasing competition from well-financed players, and struggling meat suppliers, will induce industry consolidation in the coming years. We believe we are in a strong position to continue to take advantage of the Chinese government's support for leading pork producers, these market consolidation trends, and the emerging hog supply situation. Management believes that this is a long-term trend.
Given the current competitive market conditions, we constantly strive to impose strict quality control in our products and utilize state-of-art slaughtering and cutting lines (which are imported from Stork Co. of the Netherlands), to ensure our product quality, increase awareness of our brand and develop customer loyalty. Our research suggests that consumers in China are increasingly conscious of food safety and nutrition, and they are using their purchasing power to demand safer and higher quality food products for their families.
We place a very high priority on food safety and integrity. For the feeds which are used for our hogs, we control and monitor our feed sources by acquiring feeds only from qualified suppliers who are licensed in the nation or the province, and then carry out comprehensive tests to ensure quality. All of our production lines have also passed the Hazard Analysis and Critical Control Point (HACCP) test, which is certified by Moody International Certification Ltd. Management anticipates that companies such as ours, with quality meat processing and modern logistics systems, will benefit as they capture market share and build consumer brand loyalty.
Management believes that we need to broaden our geographic sales network and diversify our customer base. Currently our distribution network is principally located in Liaoning Province, especially Dalian city. We have however expanded our sales network for processed food products to almost all large and medium cities in northeast China. In the near future we need to further extend this network and penetrate all the northeast provinces of China with all our products. A broader customer base can not only mitigate our reliance on certain big customers, but also bring us more opportunities. We believe a broader market for our products can increase demand for our products, reduce our vulnerability to market changes, and provide additional areas of growth in the future.
Our top five customers accounted for 40.23% of our total sales for the first quarter of 2010. We plan to position our business to diversify our customer base, which is expected to lower this percentage gradually in the future.
Management presently anticipates continued growth in volume of sales. Nevertheless, our ability to meet increased customer demand and maintain profitability will however continue to depend on factors such as our production capacity, availability of working capital, input costs, as well as the other factors described throughout this report.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Our management's discussion and analysis of our financial condition and results of operations are based on our combined financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported net sales and expenses during the reporting periods. On an ongoing basis, we evaluate our estimates and assumptions. We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
--------------------------------------------------------------------------------
While our significant accounting policies are more fully described in Note 2 to our combined financial statements included in this report, we believe that the following accounting policies are the most critical to aid you in fully understanding and evaluating this management discussion and analysis:
Method of Accounting
We maintain our general ledger and journals with the accrual method accounting for financial reporting purposes. The financial statements and notes are representations of management. Accounting policies adopted by us conform to generally accepted accounting principles in the United States of America and have been consistently applied in the presentation of financial statements, which are compiled on the accrual basis of accounting. Principles of Consolidation
The consolidated financial statements, which include the Company and its subsidiaries, are compiled in accordance with generally accepted accounting principles in the United States of America. All significant inter-company accounts and transactions have been eliminated. The consolidated financial statements include 100% of assets, liabilities, and net income or loss of those wholly-owned subsidiaries.
Our founders have directly or indirectly owned the three operating subsidiaries since their inception. We also own two intermediary holding companies. As of March 31, 2010, the detailed identities of the consolidating subsidiaries are as follows:
Attributable
Place of Equity
Name of Company Incorporation Interest Registered Capital
Precious Sheen Investments Limited BVI 100 % USD 10,000
Dalian Chuming Precious Sheen Investment
Consulting Co., Ltd. PRC 100 % RMB 91,009,955
Dalian Chuming Slaughtering & Pork Packaging
Co. Ltd. PRC 100 % RMB 10,000,000
Dalian Chuming Processed Foods Co. Ltd. PRC 100 % RMB 5,000,000
Dalian Chuming Sales Co. Ltd. PRC 100 % RMB 5,000,000
The consolidation of these operating subsidiaries into a newly formed holding company i.e. "the Company" is permitted by United States GAAP: ARB51 paragraph 22 and 23.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles in the United States 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. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from these estimates.
--------------------------------------------------------------------------------
Accounts Receivable
We extend unsecured, non-interest bearing credit to our customers; accordingly, we carry an allowance for doubtful accounts, which is an estimate, made by management. Management makes its estimate based on prior experience rates and assessment of specific outstanding customer balances. Management may extend credit to new customers who have met the criteria of our revised credit policy.
Inventory Carrying Value
Inventory, consisting of raw materials in the form of livestock, work in progress, and finished products, is stated at the lower of cost or market value. Finished products are comprised of direct materials, direct labor and an appropriate proportion of overhead. Periodic evaluation is made by management to identify if inventory needs to be written down because of damage, or spoilage. Cost is computed using the weighted average method.
Property, Plant, and Equipment
Property, Plant, and Equipment are stated at cost. Repairs and maintenance to these assets are charged to expense as incurred; major improvements enhancing the function and/or useful life are capitalized. When items are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gains or losses arising from such transactions are recognized.
Property and equipment are depreciated using the straight-line method over their estimated useful life with a 5% salvage value. Their useful lives are as follows:
Fixed Asset Classification Useful Life
Land Improvements 10 years
Buildings 20 years
Building Improvements 10 years
Manufacturing Machinery & Equipment 10 years
Office Equipment 5 years
Furniture & Fixtures 5 years
Vehicles 5 years
Land Use Rights
Land Use Rights are stated at cost less accumulated amortization. Amortization is provided over its useful life, using the straight-line method. The useful life of the land use right is 50 years.
Customer Deposits
Customer Deposits represents money we have received in advance for purchases of pork and pork products. We consider customer deposits as a liability until products have been shipped and revenue is earned. We collect a damage deposit (as a deterrent) recorded on other payable from showcase store operators as a means of enforcing the proper use of our trademark. We carry the amount of these deposits as a current liability because we will return the deposit to the operator when we cease to conduct business with the operator.
--------------------------------------------------------------------------------
Statutory Reserve
Statutory reserve refers to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and, are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit, must appropriate, on an annual basis, from its earnings, an amount to the statutory reserve to be used for future company development. Such an appropriation is made until the reserve reaches a maximum equaling 50% of the enterprise's registered capital.
Earnings Per Share
We compute earnings per share ("EPS") in accordance with Statement of Financial Accounting Standards No. 128, "Earnings per share" ("FASB ASC 260"), and SEC Staff Accounting Bulletin No. 98 ("SAB 98"). FASB ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., contingent shares, convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later.
For the three months ended March 31, 2010, the Company has increased both its basic and diluted weighted average shares outstanding by 3,863,636 shares. For EPS purposes, these shares which are owned by the Chairman and Chief Executive Officer were previously reported in the Company's 2009 and 2008 financial statements as contingent shares because they were held in an escrow account in accordance to the Company's financing agreement in 2007, which was subsequently modified on December 30, 2009. These shares have been released out of escrow, and as such are accounted for as outstanding in calculating both basic and diluted EPS. Other than the aforementioned shares, no other stock has been issued by the Company during the three months ended March 31, 2010. Additionally, the weighted average price for the Company's common stock during the three month period was lower than the exercise price for the outstanding warrants issued to the placement agent from the 2007 financing transaction, the effect of the warrants have been excluded from the calculation of diluted EPS, because their potential exercise would have been anti-dilutive in nature.
Recent Accounting Pronouncements
See Note 2(Z) to the consolidated financial statements included in Item 1 of this Quarterly Report of Form 10-Q for discussions on recently issued accounting announcements. We are currently evaluating the potential impact, if any, of the adoption of the above recent accounting pronouncements on our consolidated results of operations and financial condition.
RESULTS OF OPERATIONS
Comparison of Three Months Ended March 31, 2010 and March 31, 2009.
The following table sets forth the results of our operations for the periods
indicated as a percentage of net sales:
March 31, % of March 31, % of
2010 Sales 2009 Sales
Sales $ 55,510,121 100 % $ 40,893,923 100.00 %
Cost of Sales (47,212,872 ) 85.05 % (35,169,469 ) 86.00 %
Gross Profit 8,297,249 14.95 % 5,724,454 14.00 %
Selling Expenses 341,016 0.61 % 864,959 2.12 %
General & Administrative Expenses 576,370 1.04 % 559,113 1.37 %
Total Operating Expense 917,386 1.65 % 1,424,072 3.48 %
Operating Income / (Loss) 7,379,863 13.29 % 4,300,382 10.52 %
Other Income (Expense) (414,510 ) 0.75 % (3,608,153 ) 8.82 %
Earnings Before Tax 6,965,353 12.55 % 692,229 1.69 %
(Income Tax Expense) / Deferred Tax Benefit (451,747 ) 0.81 % (280,208 ) 0.69 %
Net Income $ 6,513,606 11.73 % $ 412,021 1.00 %
Earnings Per Share
Basic $ 0.31 $ 0.03
Diluted 0.31 0.02
Weighted Average Shares Outstanding
Basic 21,136,392 17,272,756
Diluted 21,136,392 21,182,756
--------------------------------------------------------------------------------
Sales. Our sales include revenues from sales of our fresh pork, frozen pork, and processed food products. During the quarter ended March 31, 2010, we had sales of $55,510,121 as compared to sales of $40,893,923 for the quarter ended March 31, 2009, an increase of approximately 35.7%. Our sales for our various product categories in the first quarter of 2010 are summarized as follows:
% of increase
Sales by product category, in First Quarter 2010 % of Total First Quarter % of Total from 2009 to
dollars: (amount) Sales 2009 (amount) Sales 2010
Fresh Pork $ 44,711,975 80.55 % $ 31,550,154 77.15 % 41.72 %
Frozen Pork $ 3,279,742 5.91 % 3,956,106 9.67 % -17.10 %
Processed Food Products $ 7,518,404 13.54 % 5,387,663 13.17 % 39.55 %
Total Sales $ 55,510,121 100 % 40,893,293 100 % 35.74 %
First First
Quarter Quarter
2010 2009 % of change
(Weight in % of (Weight in % of from
tons) Total Sales tons) Total Sales 2009 to 2010
Fresh Pork 21,010 81.71 % 14,245 76.95 % 47.49 %
Frozen Pork 2,362 9.19 % 2,581 13.94 % -8.49 %
Processed Food Products 2,341 9.10 % 1,686 9.11 % 38.85 %
Total Sales 25,713 100 % 18,512 100 % 38.90 %
We believe that the increases in sales revenue and sales volume in fresh pork and processed food products arises from our increase in our overall number of sales agents, and our expansion of the geographic coverage of our sales agent network. We have also stimulated sales through our sales agents have by extending sales discounts to them. Furthermore, there has been continuing strength in consumer demand for these products in the periods presented. For frozen pork, our sales volume decreased by 8.49% in the first quarter of 2010 and our sales revenue for this product category decreased 17.10% as compared to the same period in 2009. We attribute this decrease in the sale of frozen pork products to our increased use of agents (who mainly sell fresh pork), and see it also as reflective of a trend among end-users for fresh pork products, given the improvements in logistics and distribution in the supply chain and health and nutritional concerns..
--------------------------------------------------------------------------------
In the first quarter of 2010, we slightly raised our average per-kilogram sale price for processed food products and decreased our average per-kilogram sale prices for fresh pork and frozen pork to our customers. These changes were inline with changes in the market price for these products. In the first quarter of 2010, our sales volume by weight of fresh pork increased as compared to the first quarter of 2009. For processed food products, our sales by weight increased by 38.85%, but because of slightly higher average per-kilogram prices to customers, our sales revenue for this product category increased by 39.55%.
The following table shows the change in the average price per kilogram for our product to consumers in the quarter ending March 31, 2010, as compared to the same quarter last year:
Average Per-Kilogram Price to Customers (in $US)
First Quarter First Quarter
. . .
Add ENHD.OB to Portfolio Set Alert Email to a Friend
Get SEC Filings for Another Symbol: Symbol Lookup
Quotes & Info for ENHD.OB - All Recent SEC Filings
Sign Up for a Free Trial to the NEW EDGAR Online Pro
Detailed SEC, Financial, Ownership and Offering Data on over 12,000 U.S. Public Companies.
Actionable and easy-to-use with searching, alerting, downloading and more.
Request a Trial????? Sign Up Now
--------------------------------------------------------------------------------
Copyright © 2010 Yahoo! Inc. All rights reserved. Privacy Policy - About Our Ads - Terms of Service - Copyright/IP Policy - Send Feedback
SEC Filing data and information provided by EDGAR Online, Inc. (1-800-416-6651). All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.
Since the 15th falls on the weekend, they probably have until
Monday...
I expect they'll file tomorrow... after the bell.
Relax already!
:)
Bulls, if the company was a bust,
you wouldn't be here.
You are here trying to bust the company.
It must be frustrating for you, SBB, et al that the company
keeps going and going.
re: dilution.................hopefully the
next Q will give us some info.
:)
I think you're in P and D mode.
JMO.
sivc holds shares of CHNC and others.....see below.....
===============================================================
An excerpt:
As of S3's last filed financial report, for the period ended September 30, 2009, the majority of Redwood Capital's holdings were in the form of the common stock of three recent client companies, Energroup Holdings Corporation, , listed on the Over-the-Counter Bulletin Board under the symbol ENHD;
Boyuan Construction Group, listed on Canada's TSX Venture Exchange under the symbol BOY; and China Infrastructure Construction Corporation, listed on the Over-the-Counter Bulletin Board under the symbol CHNC
The ENHD position of 327,278 shares has a current value of $1,112,745.20 based on the closing price of $3.40 on Friday, January 22, 2010
The BOY position of 691,203 shares has a current value of $2,267,145.84 based on the closing price of $3.28 on Friday, January 22, 2010
The CHNC position of 92,468 shares has a current value of 559,431.40 based on the closing price of $6.05 on Friday, January 22, 2010. CHNC recently traded as high as $7.50, which would put the value of the position at almost $700,000
Taken together, the total value of these stock positions was approximately $4 million, as of the close of trading on Friday, January 22, 2010
SIVC holds shares of Boyuan..............................
==========================================================
Press Release Source: Boyuan Construction Group, Inc. On Thursday April 15, 2010, 7:00 am
TORONTO, April 15 /CNW/ - Boyuan Construction Group, Inc., (TSX-V: BOY & BOY.DB) a fast-growing construction company in China of commercial, residential and municipal infrastructure projects, announced today that it has received conditional approval to graduate from the TSX Venture and list its common shares and debentures on the Toronto Stock Exchange (TSX). Final approval is subject to Boyuan meeting certain conditions and requirements.
Boyuan expects to satisfy all requirements and that its common shares and debentures will begin trading on the TSX in the coming weeks. In the interim, Boyuan's common shares and debentures will continue to trade on the TSX Venture Exchange under the symbols BOY and BOY.DB, respectively.
About Boyuan Construction Group, Inc.
Based in Jiaxing City, China, Boyuan Construction Group, Inc. is in the business of residential and commercial building construction, municipal infrastructure and engineering projects. In its last four fiscal years ending June 30, 2009, Boyuan completed more than 125 projects for a number of private and public sector clients including Cargill and the Dalian Shide Group, a billion dollar conglomerate whose partners include DuPont, Mitsubishi and GE. Boyuan's current backlog includes residential, industrial and mixed-use developments, including a five-star hotel and a project at the Qingshan Nuclear Plant, China's first and largest nuclear facility. From its operating bases in Zhejiang Province and on Hainan Island, Boyuan focuses on construction projects in China's fast-growing regions of the Yangtze River Delta, the city of Sanya and Shandong Province. For more information visit http://www.boyuangroup.com/ or follow us on Twitter at www.twitter.com/boyuangroup
Caution Regarding Forward-Looking Information:
Certain information contained in this press release constitutes forward-looking information, which is information relating to future events or the Company's future performance and which is inherently uncertain. All information other than statements of historical fact may be forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook. Forward-looking information contained in this press release includes, but is not limited to, the Company's expectations regarding the Company satisfying all requirements of the TSX conditional listing approval and graduating the Company's listing to the TSX. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Company believes the expectations reflected in the forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and readers are cautioned not to place undue reliance on forward-looking information contained in this press release. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking information contained in this press release include, but are not limited to: risk of macro-economy cycle, risk from competition, risk from insufficient marketing to secure new projects, risk in obtaining additional financing, risk involving permits and licences, reliance on key management member, risk from supply of raw materials, risk of financial leverage, risk of bad debts in accounts receivables, risk involved in real estate development, foreign exchange fluctuations, political and economic conditions in China and other risks included in the Company's Annual Information Form for the fiscal year ended June 30, 2009 and in the Company's public disclosure documents filed with certain Canadian securities regulatory authorities and available at http://www.sedar.com/. The forward-looking information contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as otherwise required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information
Boyuan Construction Group, Inc., Mr. Paul Law, CFO, + (852) 9329 5088, paullaw@zjboyuan.com.cn
The Equicom Group Inc., Joe Racanelli, (416) 815-0700 ext. 243, jracanelli@equicomgroup.com
Buzz up! 0 SendSharePrintShare this pageDeliciousTwitterMyspaceDiggStumbleUponFacebookRelated Headlines
•Boyuan receives conditional approval to graduate to the TSX - CNW Group
•Boyuan begins new construction project valued at US $6.9 million - CNW Group
•Boyuan reports FY 2010 second quarter financial results - CNW Group
•Boyuan awarded contract valued at US $18.1 million - CNW Group
•Boyuan signs new construction project contract in China's Shandong Province valued at US $22 million - CNW Group
Related Message Boards
•BOYUAN CONSTR
Sponsored Links
Terminix® Exterminators
Save $50 On A Pest Control Plan & Receive A Free Bottle Of SafeShield
www.Terminix.com
Finance News - Making $40/Hr From Home
Read Our Special Report About Online Jobs…
Consumer-Weekly.com/FinanceInvoice Price Price
Receive 4 Competing Price Quotes & Find the Exact Car You Want Today!
CompetingCarPrices.com/Invoice
boyes working (Hiring)
Positions Available in Boyes Now Accepting Applications.
Boyes.searchworklistings.net.Top Stories
Iceland's volcanic ash halts flights across Europe - AP
European stocks gain on China economic growth - AP
Foreclosure rates surge, biggest jump in 5 years - AP
EU sees deflation risk if no reforms - AP
ADVERTISEMENT
Tech Ticker Recent Posts
Not Too Late to Buy Into Global Market Rally, Says Tom Lydon - Peter Gorenstein
Commodities Rally "Just the Tip of the Iceberg," Tom Lydon Says - Aaron Task
Americans Won't "Sit on Their Rear Ends": Why Dan Gross Is Optimistic About Jobs - Heesun Wee
America's Back! Let's Just Hope Newsweek Doesn't Jinx the Recovery - Peter Gorenstein
Apple Says Its Sold So Many iPads in U.S. That It Can't Start Selling Them Abroad Yet - Jay Yarow
View More
Subscribe to Topics
Top Stories
Add Alert
boy.v Headlines
Add Alert
See all RSS links
ADVERTISEMENT
Copyright © 2010 CNW Group. All rights reserved. All the news releases provided by CNW Group are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.
.YAHOO! FINANCE
•Banking & Budgeting
•Calculators
•Currency
•ETFs
•Experts
•Investing
•Insurance
•Market Stats
•Message Boards
•Mutual Funds
•Personal Finance
•What's New
ALSO ON YAHOO!
•360
•Autos
•Finance
•Games
•Groups
•Health
•Hot Jobs
•Mail
•Maps
•Movies
•Music
•My Yahoo!
•News
•Shopping
•Sports
•Tech
•Travel
•TV
•All Y! Services
THINGS TO DO
•Read Our Blog
•Send Feedback
•Check Stock Quotes
•Search Homes for Sale
•Check Home Values
•Find a New Car
•Search Jobs Across the Web
.YAHOO! FINANCE WORLDWIDE
ArgentinaAustraliaNew ZealandBrazilCanadaChinaChineseFranceFrench CanadaGermany.Hong KongIndiaItalyJapanKoreaMexicoSingaporeSpainSpanishTaiwanUK & Ireland.Copyright © 2010 Yahoo! All rights reserved. Privacy Policy - About Our Ads - Terms of Service - Copyright Policy - Report Problems
Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page. Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quote data delayed 15 minutes for Nasdaq, NYSE and Amex. Real-Time continuous streaming quotes are available through our premium service. You may turn streaming quotes on or off. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Yahoo! is not an investment adviser and does not provide, endorse or review any information or data contained herein.
2142204591
SIVC hols shares of CHNC.......
Scroll down to CHNC....
http://seekingalpha.com/article/197602-top-50-companies-of-2010-part-3?source=yahoo
why?? we don't need signings right now,
WE NEED CLOSINGS!
JMO.
:)
SIVC holds shares of BOY.V............
===============================================
TORONTO, April 6 /CNW/ - Boyuan Construction Group, Inc., (TSX-V: BOY & BOY.DB) a fast-growing construction company in China of commercial, residential and municipal infrastructure projects, announced today that it has initiated the building of a residential project valued at US $6.9 million. The 50,000 square meter residential project will be developed in Pinghu, an emerging city located in China's Zhejiang province.
"While our decision to expand into neighboring regions, such as Shandong, has resulted in a number of recent contract wins, Boyuan's core markets in Zhejiang and the surrounding Yangtze River Delta still offer numerous opportunities where we can leverage our construction skills and expertise," said Mr. Cai Liang Shou, Chairman of Boyuan Construction Group. "The success we have enjoyed in our core markets is due to our reputation of building quality projects on time and on budget."
The residential project is expected to be completed in the fourth quarter of calendar 2011.
About Boyuan Construction Group, Inc.
Based in Jiaxing City, China, Boyuan Construction Group, Inc. is in the business of residential and commercial building construction, municipal infrastructure and engineering projects. In its last four fiscal years ending June 30, 2009, Boyuan completed more than 125 projects for a number of private and public sector clients including Cargill and the Dalian Shide Group, a billion dollar conglomerate whose partners include DuPont, Mitsubishi and GE. Boyuan's current backlog includes residential, industrial and mixed-use developments, including a five-star hotel and a project at the Qingshan Nuclear Plant, China's first and largest nuclear facility. From its operating bases in Zhejiang Province and on Hainan Island, Boyuan focuses on construction projects in China's fast-growing regions of the Yangtze River Delta, Hainan and Shandong Province. For more information visit http://www.boyuangroup.com/ or follow us on Twitter at www.twitter.com/boyuangroup
Caution Regarding Forward-Looking Information:
Certain information contained in this press release constitutes forward-looking information, which is information relating to future events or the Company's future performance and which is inherently uncertain. All information other than statements of historical fact may be forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook. Forward-looking information contained in this press release includes, but is not limited to, the fast growth of the Company, the contract opportunities in our core markets and the expected completion date of the project. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Company believes the expectations reflected in the forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and readers are cautioned not to place undue reliance on forward-looking information contained in this press release. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking information contained in this press release include, but are not limited to: risk of macro-economy cycle, risk from competition, risk from insufficient marketing to secure new projects, risk in obtaining additional financing, risk involving permits and licences, reliance on key management member, risk from supply of raw materials, risk of financial leverage, risk of bad debts in accounts receivables, risk involved in real estate development, foreign exchange fluctuations, political and economic conditions in China and other risks included in the Company's annual information form for the fiscal year ended June 30, 2009 and in the Company's public disclosure documents filed with certain Canadian securities regulatory authorities and available at http://www.sedar.com/. The forward-looking information contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as otherwise required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information
Boyuan Construction Group, Inc., Mr. Paul Law, CFO, +(852) 9329 5088, paullaw@zjboyuan.com.cn
The Equicom Group Inc., Joe Racanelli, (416) 815-0700 ext. 243, jracanelli@equicomgroup.com
Buzz up! 0 SendSharePrintShare this pageDeliciousTwitterMyspaceDiggStumbleUponFacebookRelated Headlines
•Boyuan begins new construction project valued at US $6.9 million - CNW Group
•Boyuan reports FY 2010 second quarter financial results - CNW Group
•Boyuan awarded contract valued at US $18.1 million - CNW Group
•Boyuan signs new construction project contract in China's Shandong Province valued at US $22 million - CNW Group
•Boyuan signs new construction project contract valued US $17.5 million - CNW Group
Related Message Boards
•BOYUAN CONSTRUCTION GROUP INC (
Sponsored Links
Boys Bedding
Looking For Boys Bedding? Find Boys Bedding Here.
WebSuperSite.net
Baby Boy First
Looking For Baby Boy First? Resources For Baby Boy First.
ResourcesFor.netBoys Suits
Find Boys Suits. Boys Suits Available.
FunTimeDeals.com
Water Cooler Boy
Water Cooler Boy offers countertop Water filters for home or business applications. Our KDF filtration systems provide safe and cost-effective Water filtering solutions.
watercoolerboy.com.Top Stories
Oil hovers above $86 after 2-month, 24 pct rally - AP
UK lawmakers attack US firm Kraft after merger - AP
Stock futures slip, point to lower open - AP
AT&T to spend $1 billion to broaden network - AP
ADVERTISEMENT
Tech Ticker Recent Posts
Apple's iPad Is a "Game Changer," Najarian Says; But What About the Stock? - Heesun Wee
Rising Rates a Potential "Shock to the System" -- But Don't Sweat 4%, Jon Najarian Says - Aaron Task
Stop Worrying About Inflation, Says Schwab's Liz Ann Sonders - Henry Blodget
Bear Market in Bonds Could Trigger "Melt-Up" in Stocks, Sonders Says - Peter Gorenstein
Yes, It's a V-Shaped Recovery: Risk of Double-Dip "Relatively Low", Liz Ann Sonders Says - Aaron Task
View More
Subscribe to Topics
Top Stories
Add Alert
boy.v Headlines
Add Alert
See all RSS links
Copyright © 2010 CNW Group. All rights reserved. All the news releases provided by CNW Group are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.
.YAHOO! FINANCE
•Banking & Budgeting
•Calculators
•Currency
•ETFs
•Experts
•Investing
•Insurance
•Market Stats
•Message Boards
•Mutual Funds
•Personal Finance
•What's New
ALSO ON YAHOO!
•360
•Autos
•Finance
•Games
•Groups
•Health
•Hot Jobs
•Mail
•Maps
•Movies
•Music
•My Yahoo!
•News
•Shopping
•Sports
•Tech
•Travel
•TV
•All Y! Services
THINGS TO DO
•Read Our Blog
•Send Feedback
•Check Stock Quotes
•Search Homes for Sale
•Check Home Values
•Find a New Car
•Search Jobs Across the Web
.YAHOO! FINANCE WORLDWIDE
ArgentinaAustraliaNew ZealandBrazilCanadaChinaChineseFranceFrench CanadaGermany.Hong KongIndiaItalyJapanKoreaMexicoSingaporeSpainSpanishTaiwanUK & Ireland.Copyright © 2010 Yahoo! All rights reserved. Privacy Policy - About Our Ads - Terms of Service - Copyright Policy - Report Problems
Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page. Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quote data delayed 15 minutes for Nasdaq, NYSE and Amex. Real-Time continuous streaming quotes are available through our premium service. You may turn streaming quotes on or off. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Yahoo! is not an investment adviser and does not provide, endorse or review any information or data contained herein.
2142204591
Apparently you're not so sure of your statements about OneVoice
being a scam. You seem to be rather impatiently awaiting these
filings, hoping desparately to get some kind of backup for your
speculations.
:)
....if alive..................................
Barely!
:)
SIVC holds shares of CHNC............................
Form 8-K for CHINA INFRASTRUCTURE CONSTRUCTION CORP
--------------------------------------------------------------------------------
12-Mar-2010
Entry into a Material Definitive Agreement, Unregistered S
Item 1.01 Entry into a Material Definitive Agreement
Subscription Agreement
On March 11, 2010 (the "Closing Date"), China Infrastructure Construction Corporation (the "Company") consummated a private placement pursuant to a Subscription Agreement dated March 5, 2010 (the "Subscription Agreement") with a number of investors (the "Investors"), providing for the sale to the Investors of an aggregate of approximately 1,282,091 shares (the "Shares") of the Company's common stock, no par value (the "Common Stock") for an aggregate purchase price of approximately $5,000,000 (or $3.90 per Share) (the "Private Placement").
The Subscription Agreement contains representations and warranties of the Company and the Investors which are customary for transactions of this type. It also obligates the Company to indemnify the Investors for any losses arising out of any breach of the agreement or failure by the Company to perform with respect to the representations, warranties or covenants contained in the agreement. The Company also entered into several covenants in the Subscription Agreement including listing on a National Securities Exchange within eight months of the Closing Date.
Under the Subscription Agreement, the Company agreed to file a registration statement within 15 days after the Closing Date.
In connection with the Private Placement, the Company issued to the placement agent a warrant to purchase 46,154 shares of Common Stock exercisable for a period of five years at an exercise price of $3.9 per share and paid a transaction fee of $240,000. Additionally, the Company issued to a finder a warrant to purchase 23,077 shares of Common Stock exercisable for a period of five years at an exercise price of $3.9 per share and paid a transaction fee of $120,000.
Amendment to 2009 Subscription Agreement
On March 5, 2010, the Company and investors (the "2009 Investors") named in that certain Subscription Agreement dated October 16, 2009 (the "2009 Subscription Agreement") entered into an Amendment (the "Amendment") to the 2009 Subscription Agreement. The Amendment modified certain covenants to which the Company had previously agreed pursuant to the 2009 Subscription Agreement, including exemption of the above described Private Placement from certain restrictions on subsequent offerings contained in the 2009 Subscription Agreement.
Under the Amendment, the Company will have to file a registration statement covering the securities issued in connection with the 2009 Subscription Agreement (the "Registrable Shares"), if at anytime after December 31, 2010 not all of the Registrable Shares may be sold without registration pursuant to Rule 144 under the 1933 Act. Such registration statement shall be filed within 45 days after receipt of a written demand from the 2009 Investors representing not less than 50% of the then outstanding Registrable Shares. The 2009 Investors also have piggy-back registration rights exercisable after December 31, 2010 with respect to the Registrable Shares that may not be sold without registration pursuant to Rule 144.
In consideration of the Amendment, the Company agreed to issue to the 2009 Investors warrants to purchase in the aggregate approximately 1,281,083 shares of Common Stock at an exercise price of $6.00 per share. The Company also agreed to (i) a minimum per share price of $5.20 in case it undertakes a follow-on public offering, and (ii) net income target for fiscal year 2011 be increased to $19.8 million from $18.0 million if such public offering does not take place.
The foregoing descriptions of the Amendment and Subscription Agreement are qualified in their entirety by the text of the Amendment and Subscription Agreement which are annexed hereto.
--------------------------------------------------------------------------------
Item 3.02 Unregistered Sales of Equity Securities
Reference is made to Item 1.01. The issuances of the Company's securities described herein were effectuated pursuant to the exemption from the registration requirements of the Securities Act of 1933 (the "Act"), as amended, provided by Section 4(2) of the Act and/or Regulation D, and Regulation S promulgated thereunder.
Item 3.03 Material Modification to Rights of Security Holders
Reference is made to Item 1.01 for information relating to the modification of rights of holders of our Common Stock.
Item 8.01 Other Events
On March 5, 2010, the Company has adopted a Code of Conduct that applies to all of our employees and officers, and the members of our Board of Directors. A copy of the Code of Conduct is included as Exhibit 14.1 herewith.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Number Description
10.1 Form of Subscription Agreement dated March 5, 2010, by and among the
Company and the parties named therein.
10.2 Form of Amendment dated March 5, 2010 to Subscription Agreement dated
October 16, 2009 by and among the Company and the parties named therein.
10.3 Form of Warrant issued to the Company's placement agent and certain
finder.
10.4 Form of Warrant issued to the 2009 Investors.
14.1 Code of Conduct of the Company
--------------------------------------------------------------------------------
Add CHNC.OB to Portfolio Set Alert Email to a Friend
Get SEC Filings for Another Symbol: Symbol Lookup
Quotes & Info for CHNC.OB - All Recent SEC Filings
Sign Up for a Free Trial to the NEW EDGAR Online Pro
Detailed SEC, Financial, Ownership and Offering Data on over 12,000 U.S. Public Companies.
Actionable and easy-to-use with searching, alerting, downloading and more.
Request a Trial????? Sign Up Now
--------------------------------------------------------------------------------
Copyright © 2010 Yahoo! Inc. All rights reserved. Privacy Policy - About Our Ads - Terms of Service - Copyright/IP Policy - Send Feedback
SEC Filing data and information provided by EDGAR Online, Inc. (1-800-416-6651). All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.
thx(EOM)
"looks like"????
Where's the DD on that?
Got a link??
GLTAEB.
Form 8-K for CHINA INFRASTRUCTURE CONSTRUCTION CORP
--------------------------------------------------------------------------------
19-Feb-2010
Change in Directors or Principal Officers, Financial State
Item 5.02 Departure of Directors or Certain Officers; Election of
Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Adoption of 2010 Stock Incentive Plan
On February 12, 2010, the Board of Directors (the "Board of Directors") of China Infrastructure Construction Corporation (the "Company") adopted the China Infrastructure Construction Corporation 2010 Stock Incentive Plan (the "2010 Plan"), a copy of which is attached as Exhibit 10.1. The Board of Directors adopted the 2010 Plan to enhance the profitability and value of the Company for the benefit of its stockholders by enabling the Company to offer eligible employees, consultants and non-employee directors cash and stock-based incentives and to attract, retain and reward such individuals.
Pursuant to the Company's Bylaws, the 2010 Plan does not require the approval of the Company's shareholders. The 2010 Plan is currently administered by the Board of Directors of the Company. All officers and key employees, and directors of, and consultants to the Company and its subsidiaries and affiliates, who are responsible for or contribute to the management, growth and/or profitability of the business of the Company and/or its subsidiaries and affiliates are eligible for participation in the 2010 Plan. One Million One Hundred Fifty Thousand (1,150,000) shares of the Company's common stock, with no par value (the "Common Stock") have been authorized and reserved for the 2010 Plan, subject to an increase of up to 10% of the Company's issued and outstanding Common Stock, and any shares that may become available for issuance under awards under the 2010 Plan as a result of expiration or forfeiture. The Company may issue stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance awards and other stock-based awards under the 2010 Plan.
Appointment of Independent Directors
On February 12, 2010, Messrs. Francis Nyon Seng Leong, Zhenhai Niu, and Pat Lee Spector were appointed as directors of the Board of the Company.
Under the Subscription Agreement dated October 16, 2009 (the "Subscription Agreement"), the Company is contractually obligated to have a board with the number of independent directors required by the Nasdaq Corporate Governance standards. None of Messrs. Francis Nyon Seng Leong, Zhenhai Niu, and Pat Lee Spector has had any relationship with the Company (either as a partner or employee) in the past three years and each qualifies as an "independent" director as defined by rules of the Nasdaq Stock Market. Therefore, upon such appointment, the Board of Directors currently consists of five members, four of whom are independent.
Each of Messrs Leong, Niu and Spector entered into an Independent Director Agreement with the Company, a form of which is filed herewith as Exhibit 10.2. The directors were appointed until the earlier of the next annual shareholder's meeting, director's removal or resignation. A summary of the compensation for the directorship of each of Messrs. Leong, Niu and Spector is set forth as follows:
1. An annual salary of $15,000, or $1,250 payable at the end of each month;
2. For the service as a chairman of a committee, such director shall receive an additional fee of $5,000 per annum, payable in equal installments at the end of each month. For the service as a member of a committee, such director shall receive an additional fee of $2,000 per annum, payable in equal installments at the end of each month.
3. Options to purchase 10,000 shares of the Common Stock subject to the 2010 Plan, exercisable at $3.90 per share, to vest one year after the grant date. Such options will expire 36 months from the date of the grant. If the directorship is terminated, the vested option will expire 365 calendar days after the grant.
4. Reimbursement of traveling expenses for such director's attendance of meetings of the Board or any committee of the Company.
--------------------------------------------------------------------------------
Set forth below is a brief biography of Mr. Francis Nyon Seng Leong:
Mr. Leong, age 66, is a principal of Sungai River Inc., an international financial consulting company. During March through June of 2004, he was CFO and Secretary of Blue Diamond Mining Corporation, an NEX board listed company in the oil and gas industry. Prior to that, Mr. Leong was appointed the Treasurer for the City of Calgary, Canada from October 1999 through August 2003. Currently, Mr. Leong is serving on the boards and the committees of various public companies, including Enmax Corporation, a Municipal Electric Utility Company in Calgary, Boyuan Construction Group, a construction company listed on TSX Venture Exchange, Andatee China Marine Fuel Services Corporation, a Nasdaq traded company in the marine fuel industry and China Industrial Waste Management, Inc., an industrial waste management company listed on the OTC Bulletin Board.
Mr. Leong received his Master's degree in Public Administration from Marriott School of Management of Brigham Young University in year 1975. In 1968, he graduated from National Chengchi University in Taiwan with a Bachelor's degree in commerce.
Set forth below is a brief biography of Mr. Zhenhai Niu:
Mr. Niu, age 48, is currently the general manager of Beijing Ritan Hotel since February 2008. Prior to that, he was the manager of China Hainan Huandao Taide Hotel since year 1999.
Mr. Niu received a bachelor's degree in Management from Beijing University and Capital University of Economics and Business in year 1987 and 1985, respectively.
Set forth below is a brief biography of Mr. Pat Lee Spector:
Mr. Spector, age 66, is currently Executive Advisor of AECOM Technology, Inc., a technical and management service provider that is currently listed on New York Stock Exchange ("NYSE"). From January 1999 through May 2007, he served as Vice President of Jacobs Engineering Group Inc., an NYSE listed company that is engaged in the business of technical services and support.
Mr. Spector received from Washington University a Master's degree in Architecture in year 1970 and a Bachelor degree in Physics in year 1966.
CEO Employment Agreement
On February 12, 2010, the Company and Mr. Rong Yang entered into an amended and restated employment agreement (the "Employment Agreement") for his service as the Company's Chief Executive Officer for a term of five years. The Employment Agreement is automatically renewable for an additional year unless either party notifies the other at least 30 days prior to the end of the term of an intention to terminate. A copy of the Employment Agreement is filed herewith as Exhibit 10.3.
Under the Employment Agreement, Mr. Yang will be compensated with an annual salary of RMB 1,500,000, payable monthly in equal installments in arrear. Pursuant to the 2010 Plan, he will also receive options to purchase 400,000 shares of the Common Stock, exercisable at $3.90 per share. The details of such options shall be subject to the terms of the Non-Qualified Stock Option Agreement, a copy of which is filed herewith as Exhibit 10.4.
In the event that Mr. Yang's service as the Company's CEO is terminated, whether involuntarily or voluntarily, under certain circumstances, or following the occurrence of a Change of Control, as defined under the Employment Agreement (the "Separation from Service"), Mr. Yang shall receive: (i) a lump sum payment of fifteen times of Mr. Yang's annual salary; (ii) Common Stock equal to 3% of then outstanding Common Stock; and (iii) continuing health insurance benefits for two years after the occurrence of Change of Control. Additionally, all unvested options, restricted stock, performance shares and stock appreciation rights previously granted to Mr. Yang under the Company's incentive plan will immediately be fully vested upon his Separation from Service.
--------------------------------------------------------------------------------
In the event that the above payments and benefits to Mr. Yang upon his Separation from Service following a Change of Control (the "Separation Parachute Payments") would (i) constitute a parachute payment within the meaning of
Section 280G of the Internal Revenue Code of 1986 (the "Code") or any similar or successor provision to 280G; and (ii) be subject to the excise tax imposed by
Section 4999 of the Code or any similar or successor provision to Section 4999 (the "Excise Tax"), then such Severance Parachute Payments shall be reduced to the largest amount which would result in no portion of the Severance Parachute Payments being subject to the Excise Tax, at the discretion of Mr. Yang.
The foregoing descriptions of the 2010 Plan, Non-Qualified Stock Option Agreement and Employment Agreement are qualified, in their entirety, by the text of those documents which are annexed hereto.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
The following are filed as exhibits to this report:
Exhibit No. Description
Exhibit 10.1 The China Infrastructure Construction Corporation 2010 Stock
Incentive Plan, dated February 12, 2010.
Exhibit 10.2 Form of Independent Director Agreement.
Exhibit 10.3 Amended and Restated Employment Agreement with Rong Yang, dated
February 12, 2010.
Exhibit 10.4 Non-Qualified Stock Option Agreement with Rong yang, dated February
12, 2010
--------------------------------------------------------------------------------
Add CHNC.OB to Portfolio Set Alert Email to a Friend
Get SEC Filings for Another Symbol: Symbol Lookup
Quotes & Info for CHNC.OB - All Recent SEC Filings
Sign Up for a Free Trial to the NEW EDGAR Online Pro
Detailed SEC, Financial, Ownership and Offering Data on over 12,000 U.S. Public Companies.
Actionable and easy-to-use with searching, alerting, downloading and more.
Request a Trial Sign Up Now
--------------------------------------------------------------------------------
Copyright © 2010 Yahoo! Inc. All rights reserved. Privacy Policy - About Our Ads - Terms of Service - Copyright/IP Policy - Send Feedback
SEC Filing data and information provided by EDGAR Online, Inc. (1-800-416-6651). All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.
sivc holds shares of CHNC.............
Form 8-K for CHINA INFRASTRUCTURE CONSTRUCTION CORP
9-Feb-2010
Change in Directors or Principal Officers, Financial State
Item 5.02 Departure of Directors or Certain Officers; Election of
Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Adoption of 2010 Stock Incentive Plan
On February 12, 2010, the Board of Directors (the "Board of Directors") of China Infrastructure Construction Corporation (the "Company") adopted the China Infrastructure Construction Corporation 2010 Stock Incentive Plan (the "2010 Plan"), a copy of which is attached as Exhibit 10.1. The Board of Directors adopted the 2010 Plan to enhance the profitability and value of the Company for the benefit of its stockholders by enabling the Company to offer eligible employees, consultants and non-employee directors cash and stock-based incentives and to attract, retain and reward such individuals.
Pursuant to the Company's Bylaws, the 2010 Plan does not require the approval of the Company's shareholders. The 2010 Plan is currently administered by the Board of Directors of the Company. All officers and key employees, and directors of, and consultants to the Company and its subsidiaries and affiliates, who are responsible for or contribute to the management, growth and/or profitability of the business of the Company and/or its subsidiaries and affiliates are eligible for participation in the 2010 Plan. One Million One Hundred Fifty Thousand (1,150,000) shares of the Company's common stock, with no par value (the "Common Stock") have been authorized and reserved for the 2010 Plan, subject to an increase of up to 10% of the Company's issued and outstanding Common Stock, and any shares that may become available for issuance under awards under the 2010 Plan as a result of expiration or forfeiture. The Company may issue stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance awards and other stock-based awards under the 2010 Plan.
Appointment of Independent Directors
On February 12, 2010, Messrs. Francis Nyon Seng Leong, Zhenhai Niu, and Pat Lee Spector were appointed as directors of the Board of the Company.
Under the Subscription Agreement dated October 16, 2009 (the "Subscription Agreement"), the Company is contractually obligated to have a board with the number of independent directors required by the Nasdaq Corporate Governance standards. None of Messrs. Francis Nyon Seng Leong, Zhenhai Niu, and Pat Lee Spector has had any relationship with the Company (either as a partner or employee) in the past three years and each qualifies as an "independent" director as defined by rules of the Nasdaq Stock Market. Therefore, upon such appointment, the Board of Directors currently consists of five members, four of whom are independent.
Each of Messrs Leong, Niu and Spector entered into an Independent Director Agreement with the Company, a form of which is filed herewith as Exhibit 10.2. The directors were appointed until the earlier of the next annual shareholder's meeting, director's removal or resignation. A summary of the compensation for the directorship of each of Messrs. Leong, Niu and Spector is set forth as follows:
1. An annual salary of $15,000, or $1,250 payable at the end of each month;
2. For the service as a chairman of a committee, such director shall receive an additional fee of $5,000 per annum, payable in equal installments at the end of each month. For the service as a member of a committee, such director shall receive an additional fee of $2,000 per annum, payable in equal installments at the end of each month.
3. Options to purchase 10,000 shares of the Common Stock subject to the 2010 Plan, exercisable at $3.90 per share, to vest one year after the grant date. Such options will expire 36 months from the date of the grant. If the directorship is terminated, the vested option will expire 365 calendar days after the grant.
4. Reimbursement of traveling expenses for such director's attendance of meetings of the Board or any committee of the Company.
--------------------------------------------------------------------------------
Set forth below is a brief biography of Mr. Francis Nyon Seng Leong:
Mr. Leong, age 66, is a principal of Sungai River Inc., an international financial consulting company. During March through June of 2004, he was CFO and Secretary of Blue Diamond Mining Corporation, an NEX board listed company in the oil and gas industry. Prior to that, Mr. Leong was appointed the Treasurer for the City of Calgary, Canada from October 1999 through August 2003. Currently, Mr. Leong is serving on the boards and the committees of various public companies, including Enmax Corporation, a Municipal Electric Utility Company in Calgary, Boyuan Construction Group, a construction company listed on TSX Venture Exchange, Andatee China Marine Fuel Services Corporation, a Nasdaq traded company in the marine fuel industry and China Industrial Waste Management, Inc., an industrial waste management company listed on the OTC Bulletin Board.
Mr. Leong received his Master's degree in Public Administration from Marriott School of Management of Brigham Young University in year 1975. In 1968, he graduated from National Chengchi University in Taiwan with a Bachelor's degree in commerce.
Set forth below is a brief biography of Mr. Zhenhai Niu:
Mr. Niu, age 48, is currently the general manager of Beijing Ritan Hotel since February 2008. Prior to that, he was the manager of China Hainan Huandao Taide Hotel since year 1999.
Mr. Niu received a bachelor's degree in Management from Beijing University and Capital University of Economics and Business in year 1987 and 1985, respectively.
Set forth below is a brief biography of Mr. Pat Lee Spector:
Mr. Spector, age 66, is currently Executive Advisor of AECOM Technology, Inc., a technical and management service provider that is currently listed on New York Stock Exchange ("NYSE"). From January 1999 through May 2007, he served as Vice President of Jacobs Engineering Group Inc., an NYSE listed company that is engaged in the business of technical services and support.
Mr. Spector received from Washington University a Master's degree in Architecture in year 1970 and a Bachelor degree in Physics in year 1966.
CEO Employment Agreement
On February 12, 2010, the Company and Mr. Rong Yang entered into an amended and restated employment agreement (the "Employment Agreement") for his service as the Company's Chief Executive Officer for a term of five years. The Employment Agreement is automatically renewable for an additional year unless either party notifies the other at least 30 days prior to the end of the term of an intention to terminate. A copy of the Employment Agreement is filed herewith as Exhibit 10.3.
Under the Employment Agreement, Mr. Yang will be compensated with an annual salary of RMB 1,500,000, payable monthly in equal installments in arrear. Pursuant to the 2010 Plan, he will also receive options to purchase 400,000 shares of the Common Stock, exercisable at $3.90 per share. The details of such options shall be subject to the terms of the Non-Qualified Stock Option Agreement, a copy of which is filed herewith as Exhibit 10.4.
In the event that Mr. Yang's service as the Company's CEO is terminated, whether involuntarily or voluntarily, under certain circumstances, or following the occurrence of a Change of Control, as defined under the Employment Agreement (the "Separation from Service"), Mr. Yang shall receive: (i) a lump sum payment of fifteen times of Mr. Yang's annual salary; (ii) Common Stock equal to 3% of then outstanding Common Stock; and (iii) continuing health insurance benefits for two years after the occurrence of Change of Control. Additionally, all unvested options, restricted stock, performance shares and stock appreciation rights previously granted to Mr. Yang under the Company's incentive plan will immediately be fully vested upon his Separation from Service.
--------------------------------------------------------------------------------
In the event that the above payments and benefits to Mr. Yang upon his Separation from Service following a Change of Control (the "Separation Parachute Payments") would (i) constitute a parachute payment within the meaning of
Section 280G of the Internal Revenue Code of 1986 (the "Code") or any similar or successor provision to 280G; and (ii) be subject to the excise tax imposed by
Section 4999 of the Code or any similar or successor provision to Section 4999 (the "Excise Tax"), then such Severance Parachute Payments shall be reduced to the largest amount which would result in no portion of the Severance Parachute Payments being subject to the Excise Tax, at the discretion of Mr. Yang.
The foregoing descriptions of the 2010 Plan, Non-Qualified Stock Option Agreement and Employment Agreement are qualified, in their entirety, by the text of those documents which are annexed hereto.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
The following are filed as exhibits to this report:
Exhibit No. Description
Exhibit 10.1 The China Infrastructure Construction Corporation 2010 Stock
Incentive Plan, dated February 12, 2010.
Exhibit 10.2 Form of Independent Director Agreement.
Exhibit 10.3 Amended and Restated Employment Agreement with Rong Yang, dated
February 12, 2010.
Exhibit 10.4 Non-Qualified Stock Option Agreement with Rong yang, dated February
12, 2010
--------------------------------------------------------------------------------
Add CHNC.OB to Portfolio Set Alert Email to a Friend
Get SEC Filings for Another Symbol: Symbol Lookup
Quotes & Info for CHNC.OB - All Recent SEC Filings
Sign Up for a Free Trial to the NEW EDGAR Online Pro
Detailed SEC, Financial, Ownership and Offering Data on over 12,000 U.S. Public Companies.
Actionable and easy-to-use with searching, alerting, downloading and more.
Request a Trial Sign Up Now
--------------------------------------------------------------------------------
Copyright © 2010 Yahoo! Inc. All rights reserved. Privacy Policy - About Our Ads - Terms of Service - Copyright/IP Policy - Send Feedback
SEC Filing data and information provided by EDGAR Online, Inc. (1-800-416-6651). All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.
Press Release Source: China Infrastructure Construction Corporation On Wednesday February 17, 2010, 9:30 pm EST
BEIJING, Feb. 17 /PRNewswire-Asia-FirstCall/ -- China Infrastructure Construction Corporation (OTC Bulletin Board:CHNC.ob - News), one of the major U.S.-listed providers of ready-mix concrete in Beijing, today announced that Bank of America/Merrill Lynch Research has called the site of the Company's most recent expansion, Xi'an, "one of the most important cities in Western China." Under an agreement with CHNC and China Railway Construction Group Co., Ltd, the two parties will join to produce and sell concrete in north central China's Xi'an region, and CHNC has already built a new manufacturing facility there.
"Investment projects in Xi'an and its vicinity include a new airport terminal, a new railway station, widening of existing highways, a network of high-speed railways and subways," said the Bank of America/Merrill Lynch "China Economics" report. CHNC announced last month that a branch mixing station with an annual production capacity of 3,600,000 m3 has been set up in the city of Xi'an, in part to serve the requirements of the infrastructure build out that the China Economics report describes.
Mr. Yang Rong, Chairman and Chief Executive Officer of CHNC said, "We and leading investors have identified some very favourable trends in Xi'an that will accelerate the expansion of the CHNC business throughout northwest China."
About China Infrastructure Construction Corporation
CHNC was founded in 2002 in Beijing, China. Since then it has developed into one of the top ready mix concrete producers in Beijing. Its products are environment-friendly and among the few providers in China of "green" concrete. Both the Company's revenue and net profit have shown rapid growth in the last few years. Currently, the Company has five prime production facilities with two located in Beijing's Nanhaizi area and Shidu, two are located in the Tangshan, about two hundred kilometers east of Beijing, and one located in Xian. CHNC has a combined annual operating capacity from these locations of 4.0 million cubic meters.
In addition to its production and profit prowess, CHNC is a leader in China's "Green Concrete" movement referring to increased use of the environmentally-friendly content in ready-mix concrete, by reducing the energy and raw material consumption in its production, and by mixing and recycling various industrial wastes to create a more sustainable product.
All of CHNC's products have passed the ISO9001-2005 Certification Quality System and Integrated Certification System including Quality Management System Certification, Environmental Management System Certification and Occupational Health and Safety Management System Certification issued by Beijing Zhong Jian Xie Certification Centre.
Its major projects include the Beijing World Trade Central Business District project, and the Beijing Wanjing International Mansion.
Forward-looking Statements
Certain statements made in this news release, may contain forward-looking statements concerning the Company's business, prospects and products. These statements include, without limitation, statements regarding our ability to prepare the Company for growth, the Company's planned capacity expansion and predictions and guidance relating to the Company's future financial performance. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs, but they involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These factors may include, but are not limited to, such factors as unanticipated changes in product demand especially in the infrastructure construction industry, pricing and demand trends for the Company's products, changes to government regulations, risk associated with operation of the Company's new facilities, risk associated with large-scale implementation of the Company's business plan, the ability to attract new customers, ability to increase its products' applications, cost of raw materials, downturns in the Chinese economy, and other information detailed from time to time in the Company's filings and future filings with the United States Securities and Exchange Commission. Investors are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.
Buzz up! 0
SendSharePrintShare this pageDeliciousTwitterMyspaceDiggStumbleUponFacebookSponsored Links
Visit China on a Cruise to Asia
Save up to 75% on Asia cruises that visit China. Best price guarantee.
VacationsToGo.com
Top 3 Penny Stocks
Get the daily list of the top penny stocks that are ready to double.
www.hototc.comBest OTC Stock Picks
Sign up for our Newsletter Today! Exclusive OTCBB Stock Notifications
www.PowerPennyStocks.com
Looking for Hot OTC Stocks?
Free Blockbuster Alerts on the Top OTC stocks. Join Today & Profit.
www.explicitpicks.com.Top Stories
AP source: US govt to investigate Toyota Corolla - AP
Asian markets slightly lower after big rally - AP
Study: States must fill $1 trillion pension gap - AP
Oil falls below $77 as US distillate supplies rise - AP
ADVERTISEMENT
Tech Ticker Recent Posts
We're "Absolutely" Headed for Another Crisis Without Reform, Economist Stiglitz Says - Heesun Wee
We Need a Second Stimulus Now, Says Nobel Laureate Stiglitz, or Americans Will Be Unemployed for Years - Henry Blodget
Tech Giants Riding "Tsunami" of Opportunity, Says Fund Manager - Peter Gorenstein
View More
Subscribe to Topics
Top Stories
Add Alert
See all RSS links
ADVERTISEMENT
Copyright © 2010 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
.YAHOO! FINANCE
•Banking & Budgeting
•Calculators
•Currency
•ETFs
•Experts
•Investing
•Insurance
•Market Stats
•Message Boards
•Mutual Funds
•Personal Finance
•What's New
ALSO ON YAHOO!
•360
•Autos
•Finance
•Games
•Groups
•Health
•Hot Jobs
•Mail
•Maps
•Movies
•Music
•My Yahoo!
•News
•Shopping
•Sports
•Tech
•Travel
•TV
•All Y! Services
THINGS TO DO
•Read Our Blog
•Send Feedback
•Check Stock Quotes
•Search Homes for Sale
•Check Home Values
•Find a New Car
•Search Jobs Across the Web
.YAHOO! FINANCE WORLDWIDE
ArgentinaAustraliaNew ZealandBrazilCanadaChinaChineseFranceFrench CanadaGermany.Hong KongIndiaItalyJapanKoreaMexicoSingaporeSpainSpanishTaiwanUK & Ireland.Copyright © 2010 Yahoo! All rights reserved. Privacy Policy - About Our Ads - Terms of Service - Copyright Policy - Report Problems
Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page. Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quote data delayed 15 minutes for Nasdaq, NYSE and Amex. Real-Time continuous streaming quotes are available through our premium service. You may turn streaming quotes on or off. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Yahoo! is not an investment adviser and does not provide, endorse or review any information or data contained herein.
SIVC holds shares of CHNC........
Press Release Source: China Infrastructure Construction Corporation On Wednesday February 17, 2010, 9:30 pm EST
BEIJING, Feb. 17 /PRNewswire-Asia-FirstCall/ -- China Infrastructure Construction Corporation (OTC Bulletin Board:CHNC.ob - News), one of the major U.S.-listed providers of ready-mix concrete in Beijing, today announced that Bank of America/Merrill Lynch Research has called the site of the Company's most recent expansion, Xi'an, "one of the most important cities in Western China." Under an agreement with CHNC and China Railway Construction Group Co., Ltd, the two parties will join to produce and sell concrete in north central China's Xi'an region, and CHNC has already built a new manufacturing facility there.
"Investment projects in Xi'an and its vicinity include a new airport terminal, a new railway station, widening of existing highways, a network of high-speed railways and subways," said the Bank of America/Merrill Lynch "China Economics" report. CHNC announced last month that a branch mixing station with an annual production capacity of 3,600,000 m3 has been set up in the city of Xi'an, in part to serve the requirements of the infrastructure build out that the China Economics report describes.
Mr. Yang Rong, Chairman and Chief Executive Officer of CHNC said, "We and leading investors have identified some very favourable trends in Xi'an that will accelerate the expansion of the CHNC business throughout northwest China."
About China Infrastructure Construction Corporation
CHNC was founded in 2002 in Beijing, China. Since then it has developed into one of the top ready mix concrete producers in Beijing. Its products are environment-friendly and among the few providers in China of "green" concrete. Both the Company's revenue and net profit have shown rapid growth in the last few years. Currently, the Company has five prime production facilities with two located in Beijing's Nanhaizi area and Shidu, two are located in the Tangshan, about two hundred kilometers east of Beijing, and one located in Xian. CHNC has a combined annual operating capacity from these locations of 4.0 million cubic meters.
In addition to its production and profit prowess, CHNC is a leader in China's "Green Concrete" movement referring to increased use of the environmentally-friendly content in ready-mix concrete, by reducing the energy and raw material consumption in its production, and by mixing and recycling various industrial wastes to create a more sustainable product.
All of CHNC's products have passed the ISO9001-2005 Certification Quality System and Integrated Certification System including Quality Management System Certification, Environmental Management System Certification and Occupational Health and Safety Management System Certification issued by Beijing Zhong Jian Xie Certification Centre.
Its major projects include the Beijing World Trade Central Business District project, and the Beijing Wanjing International Mansion.
Forward-looking Statements
Certain statements made in this news release, may contain forward-looking statements concerning the Company's business, prospects and products. These statements include, without limitation, statements regarding our ability to prepare the Company for growth, the Company's planned capacity expansion and predictions and guidance relating to the Company's future financial performance. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs, but they involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These factors may include, but are not limited to, such factors as unanticipated changes in product demand especially in the infrastructure construction industry, pricing and demand trends for the Company's products, changes to government regulations, risk associated with operation of the Company's new facilities, risk associated with large-scale implementation of the Company's business plan, the ability to attract new customers, ability to increase its products' applications, cost of raw materials, downturns in the Chinese economy, and other information detailed from time to time in the Company's filings and future filings with the United States Securities and Exchange Commission. Investors are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.
Buzz up! 0
SendSharePrintShare this pageDeliciousTwitterMyspaceDiggStumbleUponFacebookSponsored Links
Visit China on a Cruise to Asia
Save up to 75% on Asia cruises that visit China. Best price guarantee.
VacationsToGo.com
Top 3 Penny Stocks
Get the daily list of the top penny stocks that are ready to double.
www.hototc.comBest OTC Stock Picks
Sign up for our Newsletter Today! Exclusive OTCBB Stock Notifications
www.PowerPennyStocks.com
Looking for Hot OTC Stocks?
Free Blockbuster Alerts on the Top OTC stocks. Join Today & Profit.
www.explicitpicks.com.Top Stories
AP source: US govt to investigate Toyota Corolla - AP
Asian markets slightly lower after big rally - AP
Study: States must fill $1 trillion pension gap - AP
Oil falls below $77 as US distillate supplies rise - AP
ADVERTISEMENT
Tech Ticker Recent Posts
We're "Absolutely" Headed for Another Crisis Without Reform, Economist Stiglitz Says - Heesun Wee
We Need a Second Stimulus Now, Says Nobel Laureate Stiglitz, or Americans Will Be Unemployed for Years - Henry Blodget
Tech Giants Riding "Tsunami" of Opportunity, Says Fund Manager - Peter Gorenstein
View More
Subscribe to Topics
Top Stories
Add Alert
See all RSS links
ADVERTISEMENT
Copyright © 2010 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
.YAHOO! FINANCE
•Banking & Budgeting
•Calculators
•Currency
•ETFs
•Experts
•Investing
•Insurance
•Market Stats
•Message Boards
•Mutual Funds
•Personal Finance
•What's New
ALSO ON YAHOO!
•360
•Autos
•Finance
•Games
•Groups
•Health
•Hot Jobs
•Mail
•Maps
•Movies
•Music
•My Yahoo!
•News
•Shopping
•Sports
•Tech
•Travel
•TV
•All Y! Services
THINGS TO DO
•Read Our Blog
•Send Feedback
•Check Stock Quotes
•Search Homes for Sale
•Check Home Values
•Find a New Car
•Search Jobs Across the Web
.YAHOO! FINANCE WORLDWIDE
ArgentinaAustraliaNew ZealandBrazilCanadaChinaChineseFranceFrench CanadaGermany.Hong KongIndiaItalyJapanKoreaMexicoSingaporeSpainSpanishTaiwanUK & Ireland.Copyright © 2010 Yahoo! All rights reserved. Privacy Policy - About Our Ads - Terms of Service - Copyright Policy - Report Problems
Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page. Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quote data delayed 15 minutes for Nasdaq, NYSE and Amex. Real-Time continuous streaming quotes are available through our premium service. You may turn streaming quotes on or off. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Yahoo! is not an investment adviser and does not provide, endorse or review any information or data contained herein.