Santana Mining, Inc. (fka SNTZ)

[doubledee]

Unaudited CJGH Financial Statements:

http://www.goldenhorsesteel.com

CHINA JIANGSU GOLDEN HORSE STEEL BALL, INC.
Financial Statements
As of August 31, 2007, December 31, 2006, and December 31, 2005
CERTIFICATION
I, Qiang Ma, Director and President of China Jiangsu Golden Horse Steel Ball, Inc.,
hereby certify and attest that the above financial statements present fairly, in all material
aspects, the financial position of China Jiangsu Golden Horse Steel Ball, Inc. and the
results of its operations and cash flows for the periods presented, in conformity with
generally accepted accounting principles, consistently applied.
/s/ Qiang Ma
Qiang Ma
Director and President
12/10/2007
China Jiangsu Golden Horse Steel Ball, Inc.
Balance Sheet as at August 31, 2007, December 31, 2006, and December 31, 2005
August 31, December 31, December 31,
2007 2006 2005
Assets
Cash 600,068 612,010 288,630
Accounts receivable 2,931,973 3,351,351 2,707,523
Inventory 3,213,458 2,682,926 2,610,793
Investments - - 6,211
Prepaid expenses 1,555,325 1,714,525 904,585
Other assets 3,288,965 4,346,394 248,953
Total current assets 11,589,790 12,707,205 6,766,696
Fixed assets (net) 3,426,121 1,641,827 1,411,515
Intangible assets 226,667 226,098 -
Construction in progress 2,417,002 763,680 109,069
Total long term assets 6,069,790 2,631,605 1,520,584
Total Assets 17,659,580 15,338,810 8,287,280
Liabilities
Accounts payable 1,080,702 1,131,905 437,019
Taxes payable 80,759 728,104 84,614
Short-term loan payable 3,173,333 2,590,440 1,911,086
Other payables 5,813,506 5,136,691 3,221,886
Total current liabilities 10,148,300 9,587,140 5,654,606
Shareholders' equity
Share capital 2,666,667 2,567,394 1,242,236
Contributed surplus 3,536,853 302,499 12,324
Retained earnings 1,307,760 2,881,776 1,378,115
Total shareholders' equity 7,511,280 5,751,669 2,632,675
Total Liabilities and Shareholders' Equity 17,659,580 15,338,810 8,287,280
China Jiangsu Golden Horse Steel Ball Inc.
Statement of Income (Loss) for the eight months ending August 31, 2007 and Year Ended December 31, 2006 and 20
For the Eight For the For the
Months Ended Year Ended Year Ended
August 31, December 31, December 31,
2007 2006 2005
Revenue
Net Sales 7,880,591 11,530,633 4,108,419
Less: Sales tax 10,861 69,646 22,980
Cost of sales 6,448,601 9,584,047 3,432,206
6,459,462 9,653,693 3,455,186
Gross Margin 1,421,129 1,876,940 653,233
Less: Selling expense 68,257 142,110 99,393
General and administration expense 324,406 326,947 239,460
Net interest expense 120,188 162,148 185,326
Exchange loss (less exchange gains) - - 41
512,852 631,206 524,219
Income from main operation 908,278 1,245,734 129,014
Add: Income from other operation - - 216,759
Operating income 908,278 1,245,734 345,772
Add: Investment income 55,125 27,603 -
Less: Non-operating expense 20,260 41,645 22,953
Add: Adjustment to prior year's income and expense - - 62,696
Income before tax 943,143 1,231,692 385,516
Less: Income tax 311,237 423,205 24,562
Net Income 631,906 808,487 360,953
China Jiangsu Golden Horse Steel Ball Inc.
Statement of Cash Flow for the eight months ending August 31, 2007 and Year Ended December 31, 2006 and 200
For the Eight For the For the
Months Ended Year Ended Year Ended
August 31, December 31, December 31,
2007 2006 2005
Cash flows from operating activities:
Net income for the period 631,906 808,487 360,953
Add non-cash items included in net income
Amortization of fixed assets 302,943 276,468 222,513
Non-cash adjustment to prior year income - - -62,696
934,849 1,084,955 520,770
Net change in non-cash working capital items
Accounts receivable 1,636,006 -5,551,208 -840,288
Accounts payable 561,160 3,932,535 1,045,304
2,197,166 -1,618,673 205,016
Cash provided by operating activities 3,132,014 -533,718 725,787
Investment activities
Acquisition of capital assets -3,243,230 -468,059 -654,786
Cash used in investing activities -3,243,230 -468,059 -654,786
Financing activities
Issuance of shares 99,273 1,325,158 31,582
Cash provided by financing activities 99,273 1,325,158 31,582
Increase in cash during the period -11,943 323,381 102,583
Cash, beginning of period 612,010 288,630 186,047
Cash, end of period 600,068 612,010 288,630
Financial Notes
NOTE 1 - FORMATION AND NATURE OF BUSINESS
China Jiangsu Golden Horse Steel Ball, Inc., a corporation incorporated in the State of
Nevada (collectively with its subsidiaries, the “Company”), is principally engaged in the
manufacturing, sale and distribution of ball bearings throughout China and worldwide
through its foreign subsidiaries and its controlled affiliates of Jiangsu Golden Horse
Steel Ball Co., Ltd. and Wuxi City Steel Ball Co., Ltd. in China. The Company is
headquartered in Jiangsu Province in the People’s Republic of China (“PRC” or “China”)
and has its corporate office in Wuxi City and two manufacturing plants in Wuxi City and
Xuyi.
NOTE 2 - BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared from the books
and records of China Jiangsu Golden Horse Steel Ball, Inc. and from other information
supplied by management. These financial statements have been prepared in
accordance with generally accepted accounting principles. There has been no audit or
review to verify the accuracy of the information provided. The Company believes that
the disclosures contained herein are adequate to make the information presented not
misleading.
The condensed financial statements have been prepared on a going concern basis,
which contemplated the realization of assets and satisfaction of liabilities in the normal
course of business.
The financial statements do not include adjustments relating to recoverability and
classification of recorded assets amounts, or the amounts and classification of liabilities.
The Company's ability to continue as a going concern is dependent upon its ability to
generate sufficient cash flow to meet its obligations on a timely basis and, ultimately, to
attain profitable operations.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR
PLAN OF OPERATION
Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained in this Section and elsewhere in this report regarding
matters that are not historical facts are forward-looking statements.
Because such forward-looking statements include risks and uncertainties, actual results
may differ materially from those expressed or implied by such forward-looking
statements. All statements, which address operating performance, events or
developments that management expects or anticipates to incur in the future, including
statements relating to revenues and earnings growth or statements expressing general
optimism about future operating results, are forward-looking statements. The forwardlooking
statements are based on management's current views and assumptions
regarding future events and operating performance. Many factors could cause actual
results to differ materially from estimates contained
The Company operates in the steel ball manufacturing industry and the Company
believes it has certain products, which could be well received in the market place and
hence could generate revenues and profits for the Company. The Company's products
and business are described in detail in the corporate web site
www.goldenhorsesteel.com and investors are urged to review the information contained
on the Company website.
The Company has prepared its financial statements according to generally accepted
accounting principals (GAAP) and management hereby certifies the same.
China Jiangsu Golden Horse Steel Ball Inc.
/s/ Qiang Ma
Qiang Ma
Director and President
12/10/2007