China Ginseng Holdings, Inc. (fka CSNG)

[DaReal]

And here the Revenue stream...

Revenue

Our total revenue decreased from $2,484,432 to $146,972 for the three months ended December 31, 2014 and 2013, and from $2,546,825 to $152,214 for the six months ended December 31, 2014 and 2013; a decrease of 2,337,460 and 2,394,611, or 94% and 94%, respectively. The primary reason for the decrease was that we did not have any sales generated from ginseng and ginseng juice during the three months and six months ended December 31, 2014. During the three and six months ended December 31, 2014, we did not have sufficient capital to produce ginseng juice or harvest ginseng, and we did not take ginseng order from the market.

We only generated revenue of $146,972 and $152,214 from sales by Hong Kong Huaxia, a wholly subsidiary of us in the three months and six months ended December 31, 2014, respectively. Hong Kong Huaxia sells health and specialized local products based on customer orders which vary from time to time.

We believe that we will be able to improve our sales through our online sales platform once we have enough capital to establish it. In order to improve our capital, we plan to raise funds through equity or debt, whichever is available to us. Meanwhile, we plan to search for appropriate business candidates for merger or acquisition to increase overall revenues of the Company through a diversification of products.

Cost of Goods Sold

Our total cost of goods sold decreased from $2,070,925 for the three months ended December 31, 2013 to $112,917 for the three months ended December 31, 2014, a decrease of 1,958,008 or 95%.

Our total cost of goods sold decreased from $2,077,579 for the six months ended December 31, 2013 to $115,818 for the six months ended December 31, 2014, a decrease of $1,961,761 or 94%.

The primary reason for the decrease was that we did not incur cost of goods sold in ginseng sales, including self-production, purchased ginseng for resale and ginseng beverage during the three months and six months ended December 31, 2014.

Our cost of goods sold is comprised of costs of different products purchased through HongKong Huaxia for resale, which were $112,917 and $115,818 for the three months and six months ended December 31, 2014.

Gross Profit

Gross profit was approximately $34,055 for the three months ended December 31, 2014 compared to $413,507 for the three months ended December 31, 2013, a decrease of $379,452 or 92%.

Gross profit was approximately $36,396 for the six months ended December 31, 2014, compared to $469,246 for the six months ended December 31, 2013, a decrease of $432,850 or 92%.

The decrease was primarily due to a decrease in the sales.

Selling, General and Administration Expenses

Selling, general expenses and administrative expenses decreased from $581,182 for the three months ended December 31, 2013 to $499,522 for the three months ended December 31, 2014, a decrease of $81,660, or 14%.

Selling, general expenses and administrative expenses decreased from $841,517 for the six months ended December 31, 2013 to $817,027 for the six months ended December 31, 2014, a decrease of $24,490 or 3%.

The decrease is mainly due to the decrease in our operation expense from Huaxing, such as salary for the workers who harvested ginseng and expense from Ganzhi, such as labor of production, etc.

Interest Expense

Our Interest expense decreased by $24,701, from $332,213 for the three months ended December 31, 2013 to $307,512 for the three months ended December 31, 2014, a decrease of 7%.

Our interest expense increased by $140,999 from $392,233 for the six months ended December 31, 2013 to $533,232 for the six months ended December 31, 2014, representing a 36% increase. This increase was due to an increase in loan balances from the corresponding period in 2013.



Depreciation and amortization

Depreciation and amortization decreased by $15,065 from $30,690 for the three months ended December 31, 2013 to $15,625 for the three months ended December 31, 2014, a decrease of 49%.

Depreciation and amortization decreased by $15,232, from $61,166 for the six months ended December 31, 2013 to $45,934 for the six months ended December 31, 2014, a decrease of 25%.

This decrease is due to the depreciation on the $6,164,805 in new equipment purchased during the three and six months ended December 31, 2013.

Bad Debt Expense (Recovered)

Bad debt expense (recovered) increased by $26,112 from $16,138 for the three months ended December 31, 2013 to $42,250 for the three months ended December 31, 2014, an increase of 162%. The main reason is that our uncollected debt from Huaxing and Ganzhi increased during the three months ended December 31, 2104.

Bad debt expense (recovered) decreased by $13,098 from $55,348 for the six months ended December 31, 2013 to $42,250 for the six months ended December 31, 2014, a decrease of 24%. The main reason is that our uncollected debt from Huaxing and Ganzhi decreased during the six months ended December 31, 2104.

Net Loss

The Net Loss for the three months ended December 31, 2014 was $746,354; an increase of $231,914 or 45%, compared to a net loss of $514,440 for the three months ended December 31, 2013. The increase is primarily due to the decrease in revenues.

We had a net loss of $1,317,547 for the six months ended December 31, 2014 and a net loss of $770,322 for the six months ended December 31, 2013, an increase of $547,225, or 71 %. The increase is primarily due to the decrease in revenues combined with an increase in interest expense in 2014.

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Looks like a real Winner... lol