CHINA JIANGSU GOLDEN HORSE STEEL BALL, INC.
Financial Statements
As of December 31, 2007, and December 31, 2006
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
02/04/2008
China Jiangsu Golden Horse Steel Ball Inc.
Balance Sheet as at
December 31, December 31,
2007 2006
Assets
Cash $ 321,937 $ 612,010
Accounts receivable 3,554,036 3,351,351
Inventory 5,242,084 2,682,926
Investments - -
Prepaid expenses 1,705,076 1,714,525
Other assets 4,068,417 4,346,394
Total current assets 14,891,550 12,707,205
Fixed assets (net) 3,934,874 1,641,827
Intangible assets 239,115 226,098
Construction in progress 1,242,144 763,680
Total long term assets 5,416,133 2,631,605
Total Assets $ 20,307,683 $ 15,338,810
Liabilities
Accounts payable $ 1,716,490 $ 1,131,905
Taxes payable 108,028 728,104
Short-term loan payable 4,313,190 2,590,440
Other payables 7,314,937 5,136,691
Total current liabilities 13,452,645 9,587,140
Shareholders' equity
Share capital 2,758,621 2,567,394
Contributed surplus 110,858 302,499
Retained earnings 3,985,560 2,881,776
Total shareholders' equity 6,855,038 5,751,669
Total Liabilities and Shareholders' Equity $ 20,307,683 $ 15,338,810
China Jiangsu Golden Horse Steel Ball Inc.
Statement of Income (Loss)
For the For the
Year Ended Year Ended
December 31, December 31,
2007 2006
Revenue
Net Sales $ 12,912,792 $ 11,530,633
Less: Sales tax 31,148 69,646
Cost of sales 11,197,629 9,584,047
11,228,778 9,653,693
Gross Margin 1,684,014 1,876,940
Less: Selling expense 83,917 142,110
General and administration expense 536,697 326,947
Net interest expense 236,017 162,148
Exchange loss (less exchange gains) - -
856,631 631,206
Income from main operation 827,383 1,245,734
Add: Income from other operation - -
Operating income 827,383 1,245,734
Add: Investment income 143,079 27,603
Less: Non-operating expense 34,749 41,645
Add: Adjustment to prior year's income and expense 711,726 -
Income before tax 1,647,439 1,231,692
Less: Income tax 543,655 423,205
Net Income $ 1,103,784 $ 808,487
China Jiangsu Golden Horse Steel Ball Inc.
Statement of Cash Flows
For the For the
Year Ended Year Ended
December 31, December 31,
2007 2006
Cash flows from operating activities:
Net income for the period $ 1,103,784 $ 808,487
Add non-cash items included in net income
Amortization of fixed assets 234,516 276,467
Non-cash adjustment to prior year income (711,726) -
626,574 1,084,954
Net change in non-cash working capital items
Accounts receivable 84,741 (5,551,208)
Inventory (2,559,158) (72,133)
Accounts payable 3,865,505 3,932,535
1,391,087 (1,690,806)
Cash provided by operating activities 2,017,661 (605,852)
Investment activities
Acquisition of capital assets (2,307,734) (395,926)
Cash used in investing activities (2,307,734) (395,926)
Financing activities
Issuance of shares - 1,325,158
Cash provided by financing activities - 1,325,158
Increase in cash during the period (290,073) 323,380
Cash, beginning of period 612,010 288,630
Cash, end of period $ 321,937 $ 612,010
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
02/04/2008
AI
